LePage signs into law new restrictions on retail electricity sales

Courtesy / Matthew Gagnon, Wikimedia Commons Gov. Paul LePage has signed into law a bill by state Sen. Nate Libby, D-Lewiston, that brings increased transparency and consumer protections to the competitive electricity supply market.

Write a Comment

By Staff

Gov. Paul LePage has signed into law a bill by state Sen. Nate Libby, D-Lewiston, that brings increased transparency and consumer protections to the competitive electricity supply market.

As amended, LD 803, "An Act To Improve Transparency in the Electricity Supply Market," requires the competitive electricity provider to disclose to the consumer where the consumer can obtain information to compare the service provided by the provider with standard-offer service.

The amended bill also:

Prohibits the competitive electricity provider from renewing a contract for generation service if it fails to provide that consumer with a notice of renewal in advance by mail.
Requires that, if a competitive electricity provider renews a contract for generation service at a fixed rate that is 20% or more above the contract rate in the expiring contract without express consent, the consumer must be transferred to standard-offer service.
Requires that, if a competitive electricity provider renews a contract for generation service for a term that is longer than the term of the expiring contract or 12 months, whichever is shorter, without express consent, the consumer must be transferred to standard-offer service.
Prohibits a competitive electricity provider from imposing an early termination fee for a contract that was renewed without express consent.
Requires that the monthly utility bill for a residential consumer that elects to receive generation service from a competitive electricity provider contain the following: 1) A website address or other resource where a consumer can obtain information, as determined by the Public Utilities Commission, that provides independent information that allows residential consumers to compare terms, conditions and rates of electricity supply; 2) A statement that directs the consumer to the competitive electricity provider for more information on the consumer's contract and that provides the telephone number of the competitive electricity provider.

Finally, the law requires the PUC to consult with the Public Advocate to determine the difference in price, if any, residential consumers paid for generation service by purchasing from a competitive electricity provider instead of receiving standard-offer service between 2014 and 2016. After that review, the PUC, where possible, is to state if and how the product purchased by the consumer differed from the standard-offer service, and submit its findings to the Joint Standing Committee on Energy, Utilities and Technology by Feb. 15, 2018.

"These utilities promised lower costs but delivered bloated electric bills and contracts that were impossible for the average person to navigate,” Libby, the assistant Senate Democratic leader, said in a news release. “This new law includes common-sense protections that will keep Mainers from getting ripped off by unscrupulous companies.”

At a recent public hearing on the bill, Maine Public Advocate Tim Schneider said, “these rules will put Maine on the leading edge of the country for protecting consumers and preventing abusive practices in the consumer electricity market.”

Editor's note: This article has been updated to reflect the amendments made to the original bill, which are now part of the law signed by Gov. Paul LePage.