Bipartisan group of legislators push for landmark consumer protections

Bipartisan group of legislators push for landmark consumer protections

Senator Paul Formica (R-East Lyme) Ranking member of the Energy and Technology Committee speaking at a Capitol Press Conference on Wednesday, May 20, 2015 in Hartford.

HARTFORD, CT – Connecticut will move one step closer to becoming the first state in the nation to ban potentially deceptive and unpredictable variable-rate electricity contracts when legislators bring Senate Bill 573 to the floor for a debate and vote.

Senate President Martin M. Looney (D-New Haven) made the announcement today at a news conference alongside 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.

“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 would 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%. 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.”

“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.

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.