Press Release

PUC Seeks Comments on New Requirements for Supplier Disclosure Statements

Published on 3/19/2014

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today requested comments on proposed regulation changes that will provide electric shopping customers with greater, uniform detail in electric supplier disclosure statements and more timely information on “contract renewal” and “change in terms” notices.

“The intent of the revisions is to make disclosure statements more understandable and useful to consumers, especially in the context of variable-priced products,” the Commission said in a Secretarial Letter seeking comments on the proposed changes. “The intent... is to make the notices more prominent and to provide electric generation supplier (EGS) customers with important and timely information about their options upon the expiration or change in terms of their EGS contracts.”

The comments will be considered as part of an expedited rulemaking proceeding where the Commission will require EGSs to display key contractual terms and conditions more prominently, especially for customers on variable-priced products, provide historical pricing data on their products, and mark conspicuously customer notices on contract renewals and changes in terms.

The Commission believes these changes will provide additional information and greater protections for residential and small business customers choosing a competitive supplier for their electric generation.

As of March 14, 2014, more than 12,283 consumers have contacted the Commission with concerns about electric supply prices, many of whom have expressed frustration with not understanding the terms and conditions of their supplier contracts. Of those, more than 4,800 consumers have filed informal complaints with the PUC’s Bureau of Consumer Services.

The Secretarial Letter contains a draft of the proposed regulations and a summary to the proposals, which include the following:

• More contractual information on conditions of price variability, including whether or not there are limits on variability;

• A clear statement of the price per kilowatt hour for the first billing cycle of electric generation;

• Customer access to historical pricing information;

• Separate mailings for either fixed-term contracts that are expiring, or any changes to terms of service;

• A separate EGS contract summary along with the full disclosure statement to ensure EGSs highlight key terms and conditions in a uniform, consistent manner;

• New requirements for contract “renewal notices” and customer “options notices” prior to the expiration of a contract;

• A renewed emphasis on highlighting changes in pricing or any terms and conditions - including a fixed rate becoming a month-to-month, variable product if the customer does not respond to the notice(s); and

• Prominent marking on front of the “options notice” envelope clearly stating that it contains important information regarding the expiration or changes in terms of the customer’s electric supply contract.

Interested parties will have five days to submit comments. The Secretarial Letter contains specific instructions on how to file comments. Consumers can email or write the PUC with comments.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

# # #

 Docket No. L-2014-2409385

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov