D.P.U. 19-07 - Competitive Supply Stakeholder Working Group

On January 18, 2019, the Department opened its Investigation into Initiatives to Promote and Protect Consumer Interests in the Retail Electric Competitive Supply Market, D.P.U. 19-07 (2019). The Department sought to build on initiatives established in previous proceedings1 to further improve the protections provided to residential customers related to the marketing and delivery of competitive suppliers’ product offerings. D.P.U. 19-07, at 4. The Department identified initiatives that were intended to: (1) increase consumer awareness of the electric competitive supply market and the value these markets can provide thus allowing consumers to make well-informed decisions; (2) facilitate the Department’s adoption of a more pro-active approach toward our oversight of competitive supplier performance rather than reacting to third-party complaints or reports about alleged violations of statute/regulation; and (3) improve the operational efficiency of the competitive market to optimize the value that the market can provide to consumers. D.P.U. 19-07, at 4-5, 10.

On May 22, 2020, the Department set forth rules associated with the following initiatives: (1) the Department’s review of license applications; (2) door-to-door marketing notification; (3) identification of third-party marketing vendors; (4) disclosure of product information; (5) marketing scripts; (6) recording of marketing interactions; (7) review of marketing materials; (8) automatic renewal notifications and reports; (9) enrollment reports; and (10) the display of municipal aggregation products on the Energy Switch website (“Tier One Initiatives”).2 D.P.U. 19-07-A at 92-97. The Department developed these rules through a stakeholder process. The Department stated that it would continue to engage with stakeholders to ensure the effective, efficient, and timely implementation of the initiatives. D.P.U. 19-07-A at 6-7.

On August 6, 2020, the Department convened a Zoom meeting with stakeholders to discuss the Tier One Initiatives (see D.P.U. 19-07 Hearing Officer Memorandum, July 17, 2020). Following the meeting, Department staff set forth proposed modifications to the Tier One Initiatives (see D.P.U. 19-07 Hearing Officer Memorandum, November 19, 2020).3 Stakeholders submitted comments on staff’s proposals on December 18, 2020, and January 15, 2021.

On January 7, 2021, the Department convened a Zoom meeting to discuss Tier Two initiatives (see D.P.U. 19-07 Hearing Officer Memorandum, November 19, 2020). Thereafter, Department staff drafted straw proposals to address some Tier Two initiatives, and competitive supplier representatives drafted straw proposals regarding other Tier Two initiatives (see D.P.U. 19-07 Hearing Officer Memorandum, March 17, 2021). On May 21, 2021, stakeholders received these straw proposals.

For two reasons, the Department took no further action in D.P.U. 19-07 on either the proposed modifications to the Tier One Initiatives or the proposed Tier Two Initiatives. First, the Department determined more time was necessary to evaluate whether the Tier One Initiatives adequately protected residential customers related to the marketing and delivery of competitive suppliers’ product offerings. Second, the Department chose to conserve its limited resources given the likelihood of significant legislative action to reform the retail competitive market. With the passage of time, and in the absence of legislative action, the Department concludes that it is appropriate to re-convene the D.P.U. 19-07 Stakeholder Working Group to discuss actions the Department could take to ensure sufficient customer protections. Accordingly, the Department will hold an in-person meeting of the D.P.U. 19-07 Stakeholder Working Group on Thursday, March 6, 2025. The meeting will be held at the Department’s office, One South Station, Boston, Massachusetts starting at 10:00 a.m. The Department will provide additional information to stakeholders prior to the meeting.