Current through Register 1531, September 27, 2024
(1)
Purpose and Scope.
(a)
Purpose. The
purpose of 220 CMR 11.06 is to ensure that Customers are presented with
consistent information by which to evaluate services offered by Competitive
Suppliers and Distribution Companies.
(b) Scope. 220 CMR 11.06 applies to all
Competitive Suppliers and to Distribution Companies as specified in 220 CMR
11.06.
(2)
Information Disclosure Label.
(a) Each Competitive Supplier and each
Distribution Company providing Standard Offer Generation Service or
Default/Basic Generation Service shall prepare information on a label, or
labels, for Retail Customers in a consistent format, as determined by the
Department. Such label, or labels, shall be a condition of licensure for
Competitive Suppliers pursuant to
220 CMR
11.05(2)(e). The label, or
labels, shall present information in accordance with 220 CMR 11.06(2)(b)
through 11.06(2)(e), and shall conform to all applicable rules and regulations
of the Attorney General (
940 CMR 19.00: Retail
Marketing and Sale of Electricity). The label, or labels, shall be distributed
in accordance with 220 CMR 11.06(4) beginning on September 1, 1998.
(b)
Price to be Charged and Price
Variability. A label shall present the price of Generation
Service, Standard Offer Generation Service or Default/Basic Generation Service,
as an average unit price in cents per kilowatthour as measured at the customer
meter over the course of an annualized period, regardless of actual price
structure. This unit price shall not include charges associated with
Distribution Service, other Department regulated services, or other
non-generation products or services except as provided in 220 CMR 11.06(2). The
label shall contain the following information on average price and price
variability.
1.
Average Price
Information.
a. Average prices
shall be shown for four levels of use. The average price for each usage level
shall be the total charge for Generation Service, Standard Offer Generation
Service or Default/Basic Generation Service for the specified usage level,
divided by the kilowatthours for the particular usage level. Average prices
shall be rounded to the nearest 1/10 of a cent per kilowatthour.
i.
Residential.
Average prices for residential consumers shall be shown for usage levels of
250, 500, 1000 and 2000 kilowatthours per month.
ii.
Commercial.
Average prices for commercial consumers shall be shown for 1,000, 10,000,
20,000 and 40,000 kilowatthours per month.
b. Average prices for time-of-use and
seasonal price structures shall be based on New England-wide load
profiles.
c. Average prices for
service tied to spot or other variable prices shall be shown based on the
average prices that would have been charged in the last month of the prior
quarter.
d.
Bundled
Generation Service. Competitive Suppliers that offer Generation
Service where electricity is bundled with any other product or service may
display the charge for Generation Service as one of the following:
i. The average price for which the Retail
Customer can purchase unbundled Generation Service from the Competitive
Supplier, or
ii. An average price,
assuming the entire price of the bundled service is attributable to
electricity. If this option is selected the label may include a statement, in
the same font size as subheadings, that identifies what is included in the
average price, or
iii. For any
generation offering that includes Energy Efficiency measures, and that includes
an explicit guarantee of annual Bill savings to result from such measures, an
average unit price that reflects the guaranteed reduction of customer Bills and
all costs to be charged to customers for provision or installation of such
measures over the contract term.
e. Inducements. Average prices shall not
reflect any adjustment for cash or non-cash sales inducements except as
provided elsewhere in
220 CMR 11.00.
2.
Price Variability
Information. If average prices vary by time of use or by volume, a
subheading shall be printed below the average prices stating one or both of the
following:
a. If average prices vary by time
of use, including seasonal prices, the statement 410 shall read "Your average
electricity price will vary according to when and how much electricity you use.
See your most recent bill for your monthly use and the Terms of Service or your
bill for actual prices."
b. If
average prices vary only by volume of sales, including prices that have a fixed
charge and a flat energy charge, the statement shall read "Your average
generation price will vary according to how much electricity you use. See your
most recent bill for your monthly use and the Terms of Service or your bill for
actual prices."
(c)
Customer Service
Information. The label shall contain a toll-free number for
customer service and complaints.
(d)
Fuel, Emissions, and Labor
Characteristics. The label shall contain information on the fuel
mix, emissions, and labor characteristics associated with the Competitive
Supplier's company resource portfolio, a product or segment of the Competitive
Supplier's company resource portfolio, or the company resource portfolio used
in the provision of Standard Offer Generation Service or Default/Basic
Generation Service, as provided in 220 CMR 11.06.
1.
Determining the Company
Resource Portfolio.
a.
Company Resource Portfolio. The company resource
portfolio shall derive from quarterly determinations of the resources used by a
Competitive Supplier to meet its load obligations in New England over the label
reporting period. Such generating resources shall reflect resources as
discussed in 220 CMR 11.06(2)(d)1.b. through f. The company resource portfolio
shall be determined using market settlement data or equivalent data provided by
the Independent System Operator. Company resource portfolio information shall
be updated on a quarterly basis.
b.
Label Reporting
Period. The label reporting period shall be the most recent
one-year period prior to the quarter for which resource portfolio information
has been updated with the following exceptions:
i. If a Competitive Supplier has operated for
less than a full year, but more than three months, the Competitive Supplier
shall rely on the historic information that is available for the portion of the
year that the Competitive Supplier has operated.
ii. If a Competitive Supplier has operated
for less than three months, the Competitive Supplier shall rely on a reasonable
estimate of its company resource portfolio based on, the Competitive Supplier's
unit entitlements or contracts that specify the associated generation units and
the average regional system mix.
c.
Known Resources.
Where the company resource portfolio includes kilowatthours that are associated
with specific generating units in which the Competitive Supplier holds, or is
assigned, unit entitlements or contracts that specify the associated generation
units, such kilowatthours shall be deemed to derive from known resources. Where
a Competitive Supplier holds, or is assigned, and can verify a contract for the
output from a facility of one megawatt or less, which is not reflected in
market settlement data from the Independent System Operator, the Competitive
Supplier may include such resource in its company resource portfolio. For the
purpose of determining fuel mix, emissions, and labor characteristics required
by 220 CMR 11.06(2)(d)4. through 6., kilowatthours from known resources shall
be ascribed the characteristics of the associated generating units.
d.
System Power.
Where the company resource portfolio includes kilowatthours that are not
associated with known resources determined in accordance with 220 CMR
11.06(2)(d) l.c., such kilowatthours shall be deemed to derive from system
power. For the purpose of determining fuel mix and emissions in accordance with
220 CMR 11.06(2)(d)4. and 5., kilowatthours from system power shall be ascribed
the characteristics of the residual system mix. The residual system mix shall
be the mix of generating resources in New England net of known resources. Until
such time as data are available on the residual system mix, system power shall
be ascribed the characteristics of the average regional system mix.
e. Imports. Where the company resource
portfolio includes kilowatthours that are associated with imports to New
England, such kilowatthours shall be called "imports" for the purposes of
disclosing fuel mix. For the purpose of disclosing emissions, imports shall be
ascribed representative emissions rates as determined in consultation with the
Massachusetts Department of Environmental Protection. Until such time as said
representative emissions rates are determined, kilowatthours associated with
such imports shall be ascribed the same characteristics as system
power.
f. Energy Storage
Facilities. Where the resource portfolio includes kilowatthours that are
associated with energy storage facilities, such kilowatthours shall be deemed
system power and shall be ascribed the same characteristics as system power.
The characteristics disclosed shall include any losses incurred as a result of
storage.
2.
Determining Products or Segments of a Competitive Supplier's
Company Resource Portfolio. For the purpose of developing
information disclosure labels for distribution to Retail Customers pursuant to
220 CMR 11.06(4), a Competitive Supplier may disaggregate its company resource
portfolio, as determined in accordance with 220 CMR 11.06(2)(d)1., into
segments, or products, under the following conditions:
a. Disaggregation of the Competitive
Supplier's company resource portfolio into segments is verified by the
Independent System Operator, or, prior to March 1, 1999, by an independent
auditor; and
b. The Competitive
Supplier provides an annual statement from an independent auditor certifying
that, over the label reporting period, the kilowatthours from resources
associated with each product or segment of the company resource portfolio are
not less than the total kilowatthours of load obligation associated with Retail
Customers that are assigned said products or segments.
3.
Annual Report. A
Competitive Supplier shall present an annual report to the Department
documenting the following:
a. Determination
of the company resource portfolio, including market settlement data or
equivalent data provided by the Independent System Operator;
b. Disaggregation of the company resource
portfolio into segments or products;
c. Matching over the label reporting period
of kilowatthours from product resources to load obligations associated with
Retail Customers assigned such products; and
d. Statements of verification by the
Independent System Operator, or an independent auditor, as required pursuant to
220 CMR 11.06(2)(d)2.
4.
Fuel Source Characteristics.
a. Each Competitive Supplier and each
Distribution Company providing Standard Offer Generation Service or
Default/Basic Generation Service shall determine its company resource portfolio
in accordance with 220 CMR 11.06(2)(d)1. and shall report on information
disclosure labels the fuel mix of said company resource portfolio or of an
allocated segment of said company resource portfolio, as determined in
accordance with 220 CMR 11.06(2)(d)2..
b. At least the following fuel sources shall
be separately identified on the label and listed in alphabetical order:
biomass; coal; hydro-large; hydro-small; imports; cells utilizing renewable
fuel sources, landfill gas, and ocean thermal); solar; and wind. Fuel mix
percentages shall be rounded to the nearest full percentage point. For the
purpose of 220 CMR 11.06, hydro resources of greater than 30 megawatts shall be
deemed large hydro; all other hydro resources shall be deemed small
hydro.
5.
Emissions Characteristics.
a. Each Competitive Supplier or Distribution
Company providing Standard Offer Generation Service or Default/Basic Generation
Service shall identify its company resource portfolio in accordance with 220
CMR 11.06(2)(d)1. and shall report on information disclosure labels the
emission characteristics of said company resource portfolio or of an allocated
segment of said company resource portfolio, as determined in 220 CMR
11.06(2)(d)2..
b. For the purpose
of emission characteristics disclosure, at least the following pollutants shall
be separately identified on the label: carbon dioxide (CO[2]), nitrogen oxides
(NO[x]), sulfur dioxide (SO[2]), and, when the Massachusetts Department of
Environmental Protection determines that reliable and accurate information
becomes available, heavy metals. The Department will determine, in consultation
with the Massachusetts Department of Environmental Protection, whether
additional pollutants should be disclosed.
c. Emissions for each emission category shall
be computed as an annual emission rate in pounds per kilowatthour. For each
emission category, the emission rate of the company resource portfolio, or
segment thereof, shall be presented as a percentage of the New England regional
average emission rate and shall be compared to emissions from a new unit as
determined in consultation with the Massachusetts Department of Environmental
Protection.
d. Emission
characteristics of the company resource portfolio, or segment thereof, shall be
calculated using annual emission rates for each Generating Facility as
determined in consultation with the Massachusetts Department of Environmental
Protection and the United States Environmental Protection Agency. Until such
annual emission rates are identified, the annual emission rates for a
generating unit shall be calculated based on one of the following:
i. Continuous emissions monitoring data for
the most recent reporting year divided by net electric generation for the same
period; or
ii. If continuous
emissions monitoring data are not available, emission factors currently
approved or provided by state environmental protection agencies or the United
States Environmental Protection Agency; or
iii. If continuous emissions monitoring data
are not available, and state environmental protection agencies or the United
States Environmental Protection Agency have not determined emissions factors
associated with the generating unit, for NO[x] and SO[2], permitted emissions
levels and for CO[2], the carbon content of the fuel.
e. The following types of generating units
shall be assigned emissions characteristics as provided in this section:
i. Cogeneration facilities may make a
reasonable allocation of emissions between electricity production and other
useful output based on measured heat balances. Said allocation shall be
reviewed in consultation with the Massachusetts Department of Environmental
Protection.
ii. The use of offsets
associated with facilities that emit CO[2] shall be as determined by the
Massachusetts Department of Environmental Protection.
6.
Labor
Characteristics.
a. Each
Competitive Supplier or Distribution Company offering Standard Offer Generation
Service or Default/Basic Generation Service shall determine its company
resource portfolio in accordance with 220 CMR 11.06(2)(d)1. and shall report on
information disclosure labels the labor characteristics of said company
resource portfolio, or of a segment of said company resource portfolio, as
determined in 220 CMR 11.06(2)(d)2..
b. Competitive Suppliers with known resources
in their company resource portfolio shall be required to determine whether a
majority of employees operating at each known generation plant are employed
under collective bargaining agreements and, if such plants experienced a labor
dispute in the most recent calendar year, whether any replacement workers were
hired. For system power, the information used on the label pertaining to
collective bargaining agreements and the use of replacement labor during labor
disputes shall be based on the New England Region system average in the most
recent calendar year available. The labor data on the label shall be based on a
kilowatthour weighted average for all known resources and system
power.
(e)
Format of Information Disclosure Label. Information
disclosure labels shall be presented in formats as determined by the
Department.
(3)
Terms of Service Requirement. Each Competitive
Supplier shall prepare a statement entitled "Terms of Service" as described in
220 CMR 11.06. The Terms of Service shall be distributed in accordance with 220
CMR 11.06(4), and shall conform to all applicable rules and regulations of the
Attorney General (
940 CMR 19.00: Retail
Marketing and Sale of Electricity. The Terms of Service shall present the
following information:
(a) Actual pricing
structure according to which the Retail Customer will be billed, including an
explanation of price variability and price level adjustments that can cause the
price to vary;
(b) Length and kind
of contract;
(c) Due date of Bills
and consequences of late payment;
(d) Conditions under which a credit agency is
contacted;
(e) Deposit requirements
and interest on deposits;
(f)
Limits on warranty and damages;
(g)
Any and all charges, fees, and penalties;
(h) Information on consumer rights pertaining
to estimated Bills, third-party billing, deferred payments, and rescission of
supplier switch within three days of receipt of confirmation;
(i) A toll-free number for service
complaints;
(j) Low-income rate
eligibility;
(k) Provisions for
Default/Basic Generation Service;
(l) Applicable provisions of M.G.L. c. 164,
§ 1F; and
(m) Method whereby
the Retail Customer will be notified of changes to items in the Terms of
Service.
(4)
Distribution of Disclosure Label and Terms of Service.
The label and the Terms of Service shall be distributed as follows:
(a)
Prior to Initiation of
Service by a Competitive Supplier. Following a Retail Customer's
affirmative choice of a Competitive Supplier, the Competitive Supplier shall
provide the Retail Customer with a disclosure label prepared pursuant to 220
CMR 11.06(2), based on the company resource portfolio identified pursuant to
220 CMR 11.06(2)(d)1., and with the Terms of Service prepared pursuant to 220
CMR 11.06(3). A Competitive Supplier may also provide the Retail Customer with
a disclosure label reflecting a product or a segment of the company resource
portfolio identified pursuant to 220 CMR 11.06(2)(d)2. Said documents shall
accompany written confirmation by the Competitive Supplier of the Retail
Customer's agreement to take Generation Service; and the Retail Customer's
receipt of said documents shall trigger the three-day rescission period
required in
220 CMR
11.05(4)(d).
(b)
Default/Basic Generation
Service. With the first bill rendered to a Retail Customer
following the initiation of Default/Basic Generation Service, the Distribution
Company shall provide the Retail Customer with a disclosure label prepared
pursuant to 220 CMR 11.06(2) and notify the Retail Customer that the tariff for
such service and the Distribution Company's terms and conditions for
Distribution Service are on file with the Department and are available upon
request.
(c)
Quarterly
Notification. Competitive Suppliers and Distribution Companies
providing information disclosure label to their Retail Customers quarterly. A
Competitive Supplier may provide a label reflecting a segment of 'its company
resource portfolio pursuant to 220 CMR 11.06(2)(d)2., provided that once a year
the Competitive Supplier shall provide a disclosure label based on the company
resource portfolio identified pursuant to 220 CMR 11.06(2)(d)1.. Until such
time as the conditions specified in 220 CMR 11.06(2)(d)(2) are met, quarterly
information disclosure labels shall be based on the company resource portfolio
identified pursuant to 220 CMR 11.06(2)(d)1..
(d)
Upon Request. An
information disclosure label based on the company resource portfolio identified
pursuant to 220 CMR 11.06(2)(d)1., and the Terms of Service, or terms and
conditions, for any available generation offerings shall be available to any
person upon request.
(5)
Annual Booklet. Any Competitive Supplier licensed by
the Department to do business in the Commonwealth pursuant to
220 CMR
11.05 shall prepare an information booklet
describing a Retail Customer's rights under the provisions of M.G.L. c. 164.
The annual booklet must provide information about a customer's right to
mediation pursuant to M.G.L. c. 164, § 1F(2) and
220 CMR
11.07(4). Competitive
Suppliers shall annually mail this booklet to their Retail Customers.
(6)
Information Disclosure in
Advertising.
(a) All
advertisements shall comply with state and federal regulations governing
advertising, including the Attorney General's regulations (940 CMR), and shall
be consistent with the Federal Trade. Commission's guidelines for the use of
environmental marketing claims. The Department does not represent that labels
prepared pursuant to
220 CMR 11.00 constitute
compliance with state and federal regulations governing advertising.
(b) Any advertising or marketing of
electricity rates shall indicate the rate to be charged in bold print, in the
case of printed and Internet materials, or through clear and deliberate speech
in the case of television or radio advertisements.
(c) A Competitive Supplier' shall print in a
prominent position in all written marketing materials describing Generation
Service, including newspaper, magazine, and other written advertisements;
direct mail materials; and electronically-published advertising including
Internet materials, that a Retail Customer may obtain an information disclosure
label upon request. Where Generation Service is marketed in non-print media,
the marketing materials shall indicate that the Retail Customer may obtain an
information disclosure label upon request.
(d) A Competitive Supplier shall be allowed
to advertise the percentage of its resource portfolio that is generated by
employers, that operate under collective bargaining agreements or that operate
with employees hired as replacements during the course of a labor dispute when
said percentage is derived from known resources as determined in accordance
with 220 CMR 11.06(2)(d)1..
(e) A
Competitive Supplier shall be allowed to advertise the percentage of its
resource portfolio that connotes or signifies to the ratepayer the relative
environmentally beneficial effects of the power or energy sold by said
Competitive Supplier under the following circumstance:
1. The percentage is derived from known
resources as determined in accordance with 220 CMR 11.06(2)(d)1.; and
2. The percentage exceeds percentages
mandated under any rules promulgated by the Department of Energy Resources
pertaining to a renewable portfolio standard; and
3. The percentage exceeds levels required for
compliance with any other regulatory requirements such as a generation
performance standard.
(7) Enforcement. Dissemination of inaccurate
information, or failure to comply with the Department's regulations on
information disclosure, may result in suspension, revocation, or non-renewal of
a Competitive Supplier's license pursuant to
220 CMR
11.05(2)(e).