Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protection topic
No spam. Unsubscribe anytime.
Committee advances bill to curb predatory third-party energy supplier practices
Summary
The committee released HB 393, sponsored by Chair Deb Heffernan, to add licensing and oversight for third-party energy suppliers after members and public commenters described consumers receiving unexpectedly high bills and unclear enrollment practices; the Division of the Public Advocate said it can help customers unenroll.
Chair Deb Heffernan, the prime sponsor, presented House Bill 393 to the House Natural Resources and Energy Committee as a measure to protect public utility consumers from predatory practices by third-party energy suppliers. Heffernan told members the bill is modeled on a Maryland statute and would add regulatory oversight and licensing requirements to curb tactics that confuse or trap customers.
Heffernan summarized the problem as suppliers marketing to customers and then imposing higher rates after initial low promotional pricing. Representative Rich Collins recounted constituent cases and his own experience, saying that a typical regulated rate might be ‘‘about 15¢ a kilowatt,’’ while some third-party suppliers charged ‘‘19.8¢’’ or "20 almost 27¢ a kilowatt hour," leading to hundreds of dollars in unexpected charges for customers who believed bills came from Delmarva Power. Collins urged clearer bill formatting so consumers can distinguish third-party statements from utility bills.
Samantha Hajek of the Division of the Public Advocate told the committee that DPA and the Public Service Commission can assist customers seeking to unenroll from third-party suppliers and that the DPA had proposed changes that were incorporated into the bill. Anne Farley of First State Strategies, speaking for Delmarva Power, supported the legislation’s guardrails and said some third-party suppliers misrepresent themselves as Delmarva, creating confusion for customers.
After discussion about scope — whether the bill should cover gas, water or other utilities — committee members moved and seconded a motion to release HB 393. Staff reported no virtual public commenters, the committee conducted a roll-call vote, and the chair announced HB 393 had received the required votes to be released from committee and would be circulated for signatures.
What happens next: HB 393 will be circulated for signatures and proceed to the House calendar for further consideration; constituent assistance is available through the Division of the Public Advocate and the PSC.
