Connecticut

Restructuring Overview  |  Public Benefits  |  Restructuring Resources  |  Consumer Protection

Legislation Passed
Electric Y Gas N

1998, HB 5005; Public Act 98-28; Initial Restructuring Bill

Electric
Overview

• 1998-2003: Connecticut's 1998 restructuring legislation mandated competition for all of the state by mid-2000, along with a total rate decrease of 10% by January 1, 2000. All of the state's electricity customers could choose an energy provider as of July 1, 2000.
• The rate cut is to remain in effect through the transition to competition (2000-2003). Customers who do not choose an electric supplier continue to receive electricity from their utility under "standard offer" service until they make a choice. Standard offer service is available until December 31, 2003. Standard offer customers can move in and out of this service, but their utility can require a 12-month stay if a customer returns from the competitive market to standard offer service. However, utilities may not impose a switching fee or a higher rate on returning customers.
• 2002: In anticipation of the end of legislatively mandated reduced-price electric service, the Connecticut Department of Public Utility Control (DPUC) issued a January 2002 report on the state of competition in the electric market and has outlined several options for consideration by the state legislature. The options range from an extension of transitional standard offer rate measures to adoption of a pure free market approach where the customer must choose or be assigned a supplier. . The DPUC reported that while retail competition had failed to materialize on schedule, a competitive wholesale market was well established and would continue to evolve.
• 2003: SB 733 Allows rates to increase no more than 10 percent until January 2007
• July 2003: The General Assembly passes a bill that extends a cap on rates, but raises prices 10 percent with the hope of attracting competitive suppliers; the bill sets the standard offer at the 1996 price and holds it there until 2007.

Choice Status

• As of October 2002, 17,600 of Connecticut's residential electricity consumers had switched to competitive suppliers.

Natural Gas
Overview

• No retail unbundling program is being actively considered at this time by either the Connecticut Department of Public Utility Control (DPUC) or the state legislature. Industrial and commercial customers have been able to receive unbundled service from local distribution companies (LDCs) since April 1996.

Choice education
Electric Choice
http://www.dpuc-electric-choice.com/
This state website outlines the history of electric supplier choice in Connecticut, explains how it works, and lists the suppliers offering service to residential consumers, along with the different supplier rates.

Suppliers
www.dpuc-electric-choice.com/hotnews/new_list.html

Public Benefits

Connecticut’s electric restructuring law continued the state's consumer protection measures, which have long been among the strongest in the country, including a strict disconnect moratorium. The law imposed a systems benefits charge that can include funding for "electric service bill payment programs, funding and technical support for energy assistance, fuel bank and weatherization programs and weatherization services." It also provides a mechanism to cover some of the utilities’ expenses in operating low-income programs and complying with the state’s consumer protection statutes. Another charge funds conservation and load management programs and a renewable investment fund. The state's average annual funding from system benefits charges is $117 million. Of that, $87 million is used for energy efficiency programs, $22 million for renewable energy programs, and $8.7 million for low-income programs, mostly energy efficiency. (Click here for details on the state’s low-income energy and general residential energy programs.)

Aggregation

• Electricity suppliers and aggregators must obtain a license from the Department of Public Utility Control.
• A municipality that aggregates, or municipalities that join together to aggregate, do not need to obtain a license from the DPUC as long as they are serving customers located within their boundaries. They are required to register annually with the DPUC.
• The Office of Policy and Management must provide technical assistance to municipalities that want to aggregate electric generation services.

State Restructuring Resources

Utility Regulatory Commission
Connecticut Department of Public Utility Control
1-888-922-3782
http://www.state.ct.us/DPUC

Consumer advocate
Connecticut Office of Consumer Counsel
860-827-2900
http://www.occ.state.ct.us/

Infoline
www.infoline.org/
Dial 2-1-1

Consumer Protection

Disconnection policy

• Between November 1 and April 15, utilities cannot disconnect natural gas or electric service to residential customers who qualify for "hardship" status by meeting any of the following criteria: 1) receive state or federal assistance or have incomes at or below 125 percent of the federal poverty guideline; 2) are unemployed with a household income at or below 300 percent of the federal poverty guideline; 3) are seriously ill or disabled; or 4) will potentially be deprived of food or other life necessities if required to pay the delinquent bill.
• Utilities must delay disconnection up to 15 days when a physician has certified that such an action would result in a decline in the health of the customer or a permanent household resident; medical certificates may be renewed every 15 days for as long the medical condition persists.
• Service to residential customers cannot be shut off on a Friday, Saturday, Sunday, legal holiday, the day before a legal holiday, or less than an hour before the company's offices close for the day.
• Before disconnecting service for nonpayment, utilities must offer residential customers an opportunity to enter into a deferred payment arrangement; if the customer adheres to such an arrangement, the utility cannot disconnect service.
• Utility companies may shut off service if customers do not pay bills, fail to keep a payment plan, or tamper with their meter. State law requires that customers be given 13 days' notice before shut off can occur. The notice must be in writing and include the date that service will be shut off and what customers must do to get service turned back on.

• CL&P has a budget billing plan and the NU Start payment incentive program to help eligible low-income customers pay their bills. A year-round payment plan is set up. Customers eligible for NU Start who pay their current bills every month may have their past due balance "forgiven" over time.

• Customers have the right to utility service if they are competent to enter into a contract with the utility, don't currently owe the company for service previously used, and can provide satisfactory identification. They are entitled to be offered at least one amortization agreement in a year.
• All other consumer protections continue, such as the winter moratorium, hardship protection, right to reasonable payment arrangements, termination rights and the right to dispute a utility bill.

• Customers cannot be asked to pay unreasonably high deposits as a condition of service, or to make unreasonable payments on past due bills.

• Before signing on a customer, each supplier must give written notice describing customers' right to cancel service. Customers may change their electric supplier, free of charge, once every 12 months. If they change more often, they may have to pay a standard fee.

• Bills must be provided in a standard format that enables comparison of prices and charges. There are some limitations on customer liability for inaccurate billings.
• Customers are entitled to be offered at least one amortization agreement in a year

• Electric suppliers must submit a filing fee of $1,000, documentation that they maintain a security of $250,000, and documentation demonstrating their technical, managerial and financial capability to provide electric generation service. The DUPC may restrict the scope of provision of service to a geographic area, a particular type of customer, a method of operation or services in general, depending on the department's assessment of the applicant's technical, managerial and financial capabilities.

• An electric supplier must have customer permission to switch his/her service, in writing or electronically, or the switch must be verified by an independent third party.

• Customers may ask a telemarketer to take their name and phone number off its list. They may also remove their names from phone lists by writing to the Direct Marketing Association, Telephone Preference Service, PO Box 9014, Farmingdale, NY 11735

• Customers have the right to have any complaint against a utility handled promptly by that utility. If they are not satisfied with the utility company's response, they should call or write to the DPUC's CAI Unit. Customer utility service may not be terminated for non-payment of disputed charges during CA&I's investigation, provided that customers continue to pay their current bills.

• Electric suppliers may not discriminate or refuse service because of age, race, creed, color, national origin, ancestry, sex, marital status, sexual orientation, lawful source of income, disability, familial status or geographic location in an economically distressed area. Companies cannot refuse to provide utility service to a residential customer based on financial inability to pay a security deposit.

• Before it can begin supplying energy to a customer, an electric supplier must give written information on the price of electricity, terms and conditions of service, fuel source mix and air emissions, and notice describing customers' right to cancel service.

• By law, an electric supplier is prohibited from advertising or disclosing the price for electricity in a way that leads the customer to believe that the generation service portion of the bill will be the total charge for electricity. Advertising must disclose the company's average current charges, including the competitive transition assessment and the systems benefits charge.

• An electric supplier cannot give the appearance of representing its generation affiliate. Generation entities -- the companies that produce power -- cannot give any appearance of speaking on behalf of any electric supplier.

• Each electric distribution company is required to provide customer name, address, telephone number and rate class information to all electric suppliers. The distribution company must exclude customers that have returned a form, sent by the company to all customers, requesting that this information not be released. Customer information other than name, address, telephone number and rate class cannot be given to suppliers unless a customer signs a release form.
• An electric supplier must receive written customer consent before releasing any customer information. If an electric supplier releases customer-specific information to its generation entity or affiliate, it must make similar customer specific information available to other electric suppliers.