(a)  No contract for electric generation services by a nonregulated power producer shall require a residential customer to pay any fee for termination or early cancellation of a contract in excess of fifty dollars ($50.00), or twice the estimated bill for energy services for an average month, whichever is less; provided that when a nonregulated power producer offers a contract, it provides the residential customer an estimate of the customer’s average, monthly bill; and provided further, it shall not be considered a termination or early cancellation of a contract if a residential customer moves from one dwelling within the state and remains with the same nonregulated power producer. If a residential customer does not have a contract for electric generation services with a nonregulated power producer and is receiving a month-to-month variable rate from the supplier, there shall be no fee for termination or early cancellation.

Terms Used In Rhode Island General Laws 39-26.7-6

  • Continuance: Putting off of a hearing ot trial until a later time.
  • Contract: A legal written agreement that becomes binding when signed.
  • Customer: means a company taking service from an electric distribution company at a single point of delivery or meter location. See Rhode Island General Laws 39-1-2
  • Division: means the division of public utilities and carriers. See Rhode Island General Laws 39-26.7-3
  • Docket: A log containing brief entries of court proceedings.
  • Nonregulated power producer: means a company engaging in the business of producing, manufacturing, generating, buying, aggregating, marketing, or brokering electricity for sale at wholesale or for retail sale to the public; provided however, that companies that negotiate the purchase of electric generation services on behalf of customers and do not engage in the purchase and resale of electric generation services shall be excluded from this definition. See Rhode Island General Laws 39-1-2
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.

(b)  Each nonregulated power producer shall file annually with the division a list of any aggregators or agents working on behalf of the supplier.

(c)  Each nonregulated power producer shall develop and implement standards and qualifications for employees and third-party agents who are engaged in the sale or solicitation of electric generation services by the supplier.

(d)  Each nonregulated power producer, aggregator, or agent of a nonregulated power producer or aggregator shall comply with the provisions of the telemarketing regulations adopted pursuant to 15 U.S.C. § 6102.

(e)  Any violation or failure to comply with any provision of this chapter or rules promulgated by the division shall be subject to civil penalties by the division including, a penalty of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000), and in the case of a continuing violation of any of the provisions of this chapter, every day’s continuance shall be deemed to be a separate and distinct offense, an order of refund, and/or the suspension or revocation of a nonregulated power producer’s certificate, or a prohibition on accepting new customers following a hearing.

(f)  On or before July 1, 2017, the division shall initiate a rulemaking proceeding to develop and implement, or cause to be implemented, standards relating to abusive switching practices; solicitations and renewals by nonregulated power producers; the hiring and training of sales representatives; door-to-door sales; and telemarketing practices by nonregulated power producers, in accordance with the goal of ensuring customers have sufficient information to make an informed decision. The division shall issue final rules on such docket not later than six (6) months after its initiation.

(g)  The division may initiate a docket to review the feasibility, costs, and benefits of placing on standard-offer service all customers of all nonregulated power producers who are hardship cases.

History of Section.
P.L. 2016, ch. 453, § 1; P.L. 2016, ch. 454, § 1.