Bipartisan group of legislators push for landmark consumer protections
WASHINGTON, D.C. – May 21, 2015 – (RealEstateRama) — Connecticut moved one step closer to becoming the first state in the nation to ban potentially deceptive and unpredictable variable-rate electricity contracts when senators added Senate Bill 573 to the chamber’s consent calendar for a unanimous vote later this evening.
Senate President Martin M. Looney (D-New Haven) was joined earlier in the day at a news conference by Senate Majority Leader Bob Duff (D-Norwalk), a bipartisan group of legislators including the co-chairs of the General Assembly’s Energy and Technology Committee and representatives from AARP Connecticut to push for the bill’s passage.
“Senior citizens are especially susceptible to deceivingly cheap teaser rates only to have them skyrocket once the introductory rate ends,” said Sen. Looney. “Electric customers deserve stable, predictable electric rates, whether obtained through standard offer service or from a multitude of highly competitive offers in the private supplier marketplace.”
Once enacted, the bill will ban variable rates charged to residential electric customers for electric generation service.
“Electricity is an essential service, and by banning variable-rate contracts we are restoring transparency and fairness to that service,” said Sen. Duff. “Consumers, many of them seniors living on a fixed income, have reported that they were enticed into signing a variable-rate contract with a low “teaser” rate, only to see their bills increase without warning by nearly 200 percent. This bill ensures that consumers enter into fixed-rate contracts that provide them with the stability and security they deserve.”
“I am proud that this bi-partisan bill will ban companies from offering consumers variable-rate contracts that frequently begin at low entry level rates that lead to large increases after a few months,” said Sen. Paul Doyle (D-Wethersfield), Senate Chair of the Energy and Technology Committee. “Electricity is essential service for all consumers, not a luxury. By banning these contracts we are protecting consumers from unpredictable and excessive expenses brought on by the unstable nature of a variable-rate contract.”
“This is not only a pro-consumer bill, it’s a pro-business bill,” said House Chair of the Energy and Technology Committee Lonnie Reed (D-Branford). “The bad actors that exploit consumers with outrageous variable rates are giving a black eye to the industry. By protecting consumers, we’re enabling the responsible companies to win customers back.”
“I’m proud to be a part of this joint effort to better protect consumers across Connecticut. “The Energy and Technology Committee has worked collaboratively to put together legislation that will properly safeguard customers and ensure that people know exactly how much they are paying for their electricity,” said Sen. Paul Formica (R-East Lyme), ranking member of the Energy and Technology Committee.
“During negotiations, it was clear that we all wanted to protect our residents, specifically seniors, from this predatory practice,” said Rep. Tim Ackert (R-Coventry), ranking member of the Energy and Technology Committee. “Constituents from all over the state have called their legislators and sent testimony to our committee, and we listened. I am proud of our proposed solution and urge other legislators to support it.”
“Deceptive practices only ruin the credibility of trustworthy energy suppliers,” said Sen. Gary Winfield (D-New Haven). “Presenting consumers with a variable rate, knowing that this rate will increase resulting in high profits is heinous. The approved bill eliminates the variable electric rate option for residential consumers, thereby saving them from high energy costs.”
Last year, the General Assembly passed Public Act 14-75, which enacted several reforms for the protection of electric consumers. Perhaps the most significant of these measures was a new requirement that, beginning this July, every residential electric customer’s monthly bill must display their rate for the coming month.
