A series of bills, HB 6507, HB 6510 and HB 6512, were recently introduced that would severely limit the competitive electric market in the State. HB 6507 provides in relevant part, "on and after January 1, 2010, customers with a maximum demand of less than five hundred kilowatts shall receive and pay for electric generation services, designated as basic service, from the electric distribution company in which service territory such customer takes electric service; provided nothing in this section shall be interpreted as abrogating a customer's contract with an electric supplier that was executed and effective on or before January 1, 2010. No customers who have a maximum demand of less than five hundred kilowatts may enter into supplier contracts on or after January 1, 2010, and no such supplier contract shall be renewed except as expressly provided for in a contract entered into before January 1, 2010."

HB 6510 would establish a state power authority to function as the state's electric planning agency. "The authority may own and operate electric power plants and may provide financial assistance, including low-interest loans to encourage the development of necessary electric generation facilities by the electric distribution companies or private entities, provided electricity generated at such facilities shall be sold for use by Connecticut consumers at cost of service with a reasonable rate of return. The authority may enter into contracts with electricity generators, suppliers and consumers and such other persons as necessary to carry out the purposes of this section."

HB 6512 would require the electric utilities to use a portfolio management approach to electric procurement by January 1, 2012. The electric utilities must, "develop a portfolio in a manner that mitigates the variation of the price of the service offered to the electric distribution company's customers by blending short and mid-term market purchases at prevailing market prices with long-term purchases at prices aligned with the cost of electricity production."

The full texts of HB 6507, HB 6510 and HB 6512 are available on the NEM Website.

One of the measures approved by the Commission to assist consumers in managing potential price increases at the expiration of utility rate caps was the implementation of voluntary pre-payment (VPP) plans. MetEd and Penelec's rate caps expire December 31, 2010. Under the Commission-approved MetEd/Penelec plan customers on an opt-in basis can elect to pay a VPP charge on a monthly basis from March 2009 through December 2010. Customers would then receive a VPP credit on their bills from January 2011 through 2012 of the amounts collected plus 7.5% interest. Residential and certain small commercial customers may participate in the plan.

The Commission adopted revised rules pertaining to marketer disclosures to residential and small commercial customers. The rules modify the requirements for the electricity facts label (EFL) and terms of service documents and are intended to clarify advertising and marketing responsibilities. The Commission adopted definitions of a fixed rate product, indexed product and variable price product and disclosures attendant with the sale of such products. "The commission determines that specific EFL disclosures are required for the indexed and variable price products to alert the customer that the price can change. The commission requires price history for residential variable price products. The commission requires residential variable price products to be only month-to-month and prohibits termination fees on month-to-month contracts. The commission requires the bill to provide residential customers with instructions for how to obtain information about the price that will apply on the next bill for variable price products."

New contracts must conform to the new rules within five months. As to existing contracts, "REPs [have] up to five months to conform contracts and product documents with the requirements adopted in this rule." The full text of the Order is available from NEM headquarters.