Trumbull State Reps Appaud Bill to Protect Electric Consumers

Trumbull State Reps. David Rutigliano and Laura Devlin said they support a bipartisan proposal that would protect electricity consumers from variable electric-rate contrcts.

Retailers will only be able to sell fixed-rate contract, which should cut down on consumer confusion.

A law passed last year combated third-party electric retailers who would entice consumers with a low starting rate, but would then bump it up to the same rate as Eversource or United Illuminating.

More from the representatives:

The ban would apply only to residential customers. Many businesses, especially large companies that are major consumers of electricity, have sophisticated staffs that can monitor the variable market.

Rep. Rutigliano said, “We’re doing our best to protect residents and consumers from these dishonest business practices. These companies are praying on seniors who are looking to save money, our current economic climate makes it easier for people to fall victim to these variable rates. Every cent counts, and this bill will save people money in the long run. I’m happy to support this piece of legislation.”

“There is bi-partisan agreement that electric variable rates for residential customers unfairly target the ratepayers especially the seniors in Connecticut. We need to make sure every effort is made to educate and protect these consumers,” said Rep. Devlin. “Ratepayers are drawn in with “teaser rates” and over time, these rates can be tremendous on a bill cycle by suppliers can increase rates without notice and place a penalty on the consumer if canceled.

Electricity is bought and sold as a commodity, and third-party retailers compete with Eversource and United Illuminated, sometimes acquiring and re-selling power at cheaper rates based on their success in procuring power on the open market.

The bill would ban new variable contracts as of Oct. 1, but not completely extinguish variable rates. At the conclusion of contract, a consumer still could be assigned a variable rate if they do not sign a new contract or switch to the standard offer.

In addition to banning variable rate contracts, this bill requires PURA to study what should happen when a customer’s contract with a retailer expires and the consumer fails to sign a new contract. Current laws allows the retailer to change the consumer’s generation price month to month until the consumer signs a new contract or changes providers.

The bill passed the House of Representatives overwhelmingly, with both Rutigliano and Devlin supporting the legislation. The bill now heads to Governor Malloy’s desk for his signature.