PA 15-90—sSB 573

Energy and Technology Committee


SUMMARY: Starting October 1, 2015, this act prohibits retail electric suppliers from (1) entering into variable rate contracts for residential electric generation services or (2) automatically renewing or causing automatic renewal of such contracts. The act specifies that a “residential customer” is one who contracts with a supplier for generation services at residential premises for domestic purposes only. The definition also applies to provisions under existing law that, among other things, (1) require suppliers serving such customers to meet certain notice requirements and (2) limit the early cancellation fees that suppliers may charge to such customers.

The act requires the Public Utilities Regulatory Authority (PURA), by October 1, 2015, to begin a proceeding to develop recommendations and guidance on (1) the type of rate structure best suited for residential customers who allow a fixed contract with a supplier to expire and begin paying a month-to-month rate and (2) what rate increase is just and reasonable under these circumstances. (PA 15-5, June Special Session, 108, requires PURA's recommendations and guidance to be about what changes customers in these circumstances may experience regarding their rates and the terms and conditions of their service, instead of what rate increase is just and reasonable. ) PURA must report its findings to the Energy and Technology Committee by January 1, 2016.

The law, unchanged by the act, allows suppliers to charge residential customers a month-to-month variable rate after their contract expires if they meet certain notice requirements and other conditions.

EFFECTIVE DATE: Upon passage

OLR Tracking: LRH: MK: VR: bs