Business

Legislators urge change in utility regulation

SENATOR DON HUMASON

DON HUMASON

BOSTON- Sen. Donald F. Humason Jr. (R-2nd Hampden and Hampshire District) and Representative William “Smitty” Pignatelli (D-4th Berkshire District) along with colleagues in both the House and the Senate are voicing support of a Department of Public Utilities (D.P.U.) docket seeking to rescind an order from 2000 that is costing western Massachusetts residents hundreds of dollars.
D.P.U. currently has an open docket (D.P.U. 14-140) which aims to rescind the previous 2000 order (D.P.U. 99- 60). The 2000 order requires that energy suppliers charge consumers retroactively should they switch to a competitive supplier within a set 6 month pricing term. For western Massachusetts residents, the pricing term is from January 1-June 31, 2014, and July 1-December 31, 2014. Once a consumer signs a new contract with the competitive supplier they no longer will be charged at a fixed rate and instead at a variable rate. The distributor, upon termination of their providing electricity to the consumer, is then required to re-calculate the bills retroactively to the date of signing at the variable rate. This re-calculation has cost many consumers in western Massachusetts hundreds of dollars. Should D.P.U. 14-140 be approved, this bill re-calculation would no longer take place when consumers switch providers.

WILLIAM "SMITTY" PIGNATELLI

WILLIAM “SMITTY” PIGNATELLI

Senators Humason, Welch (D-West Springfield), and Lesser (D-Longmeadow), are joined by Representatives Scibak (D-South Hadley), Pignatelli (D-Lenox), Petrolati (D-Ludlow), Boldyga (R-Southwick), Velis (D-Westfield), and Tosado (D-Springfield), in urging the Chairman and Commissioners of the D.P.U. to approve the measure that would repeal the 2000 regulation.
“With western Massachusetts residents facing increased electric rates during this particularly challenging winter,” Humason said. “it is vitally important that we support efforts to allow constituents to shop in the open marketplace for competitive electric suppliers without facing unexpected charges. This is the next step of many that we must take to ensure that utilities in the Commonwealth are fair and affordable.”
“All of us in the Berkshires and across the state have felt the crunch of increased electricity rates this winter,” Pignatelli said. “It’s upsetting that folks who have tried to switch to a more affordable supplier have been hit with unexpected fees due to an outdated regulation. That’s why I have signed onto this letter supporting the regulatory change. In the meantime, I encourage residents to be aware of this rule and, if they choose to change electricity suppliers, strategically time the switch for the end of the six month pricing term.”
Following conversations with legislators and under the guidance of the Secretary of Energy and Environmental Affairs, Matthew Beaton, the D.P.U. has issued a letter to both Licensed Competitive Suppliers and Distributors in the Commonwealth. The letter requests that competitive suppliers “…clearly inform potential customers about bill recalculation at the time the customer is seeking to enroll.”
The Representatives and Senators from western Massachusetts continue to urge the Department to approve D.P.U. 14-140 to secure a solution in addition to this request in hopes of saving consumers unexpected charges when seeking alternative, more affordable energy.

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