Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 14.00 - The Unbundling of Services Related to the Provision of Natural Gas
Section 14.04 - Supplier and Retail Agent Requirements

Universal Citation: 220 MA Code of Regs 220.14

Current through Register 1531, September 27, 2024

(1) Purpose and Scope. The purpose of 220 CMR 14.04 is to establish the requirements applicable to all Suppliers and Retail Agents.

(2) Certification Requirements.

(a) Scope. 220 CMR 14.04 governs application for initial certification and for renewal of certification.

(b) Information Filing Requirements. Before initiating service to Retail Customers, each Applicant shall apply for certification and shall file for review and approval with the Department's Secretary, in such form as is prescribed by the Secretary, a notarized document, signed by two officers of the Applicant, that includes the information identified in 220 CMR14.04(2)(b), except that a Retail Agent shall not be required to provide the information described in 220 CMR 14.04(2)(b) 10. and 13., and further provided that, to the extent that an Applicant is licensed by the Department pursuant to 220 CMR 11.05, such Applicant may incorporate by reference those portions of such application that do not differ from the application to be certified as a Supplier under 220 CMR 14.04:
1. Legal name;

2. Business address;

3. A description of the company's form of ownership. If a corporation, association, or partnership:
a. the name of the state where organized,

b. the date of organization,

c. a copy of the Articles of Organization or Incorporation (filed with the Secretary of State under M.G.L. c. 156B or, if incorporated in another state, by the cognizant approving authority established by law) or association, partnership agreement, or other similar document regarding legal organization,

d. by-laws, and

e. the name, address and title of each officer and director, partners, or other similar officers;

4. A statement (with appropriate citation to corporate articles or by-laws or other operative documents) that acting as a Supplier is not an ultra vires purpose (beyond the scope) of the entity;

5. A summary of any history of bankruptcy, dissolution, merger or acquisition of the entity in the two calendar years immediately preceding application;

6. Name, title, and an 800 or toll-free telephone number of customer service department or contact person available to customers;

7. Name, title, and telephone number of regulatory contact person;

8. Name and address of Resident Agent for Service of Process in Massachusetts for purposes of M.G.L. c. 223A, § 3;

9. Brief description of the nature of business being conducted, including types of customers to be served and geographic area in which services are to be provided;

10. A statement that the Applicant will comply with 220 CMR 14.05;

11. Documentation of technical ability to procure and deliver natural gas (such as previous gas resource experience in Massachusetts or as a shipper on interstate pipelines delivering to Massachusetts);

12. Documentation of financial capability (such as the level of capitalization or corporate parent backing) to provide proposed services;

13. Documentation that the Supplier is an approved shipper on the upstream pipelines and underground storage facilities used to serve Retail Customers in Massachusetts;

14. Evidence or documentation of attendance at a Supplier training session to be sponsored by the Massachusetts Local Distribution Companies, as set forth in the Gas Industry EBT Report, on file with the Department;

15. One sample Bill demonstrating the Applicant's familiarity with 220 CMR 14.04 from each Applicant that plans to bill Retail Customers in accordance with the passthrough billing option, as set forth in 220 CMR 14.03(6)(c)1.;

16. A statement whether any director, officer, or other similar official has in the five years immediately preceding application been convicted of a felony as defined by M.G.L. c. 274, § 1, or the equivalent law of any other jurisdiction, involving business fraud, or held liable for any antitrust violation pursuant to M.G.L. c. 93, c. 93A or the equivalent law of any other jurisdiction and whether the applicant business entity has itself been held liable for business fraud or antitrust violation (including the date and place of conviction or verdict, and nature of offense found); and

17. Declaration under penalties of perjury pursuant to M.G.L. c. 268, § 6, that all statements made in the application are true and complete. The declaration shall include evidence that the declarants are authorized as agents of the Applicant to apply for certification on its behalf.

Applicants are required to file an original application by paper copy, along with an electronic copy. Within 30 days of any material or organic (M.G.L. c. 156B) change in the information required, the Applicant shall file updated information with the Department. The Applicant also shall file an updated application annually. If there has been no material or organic change to the relevant information, an Applicant may submit an updated application indicating that there has been no change since the previous application. Any Applicant who knowingly submits misleading, incomplete, or inaccurate information may be penalized in accordance with statute and with the regulations promulgated by the Department.

(c) Fees. Each Applicant shall pay an annual filing fee of $100 to the Department.

(d) Department Review. The Department will review the information described in 220 CMR 14.04(2)(b). The Department will inform the Applicant within 20 business days of submission of a complete application whether the certification application has been approved or rejected. Approved certification applications will be valid for one year from the date of approval.

(e) Information Disclosure. As a condition of maintaining or renewing a certificate, each Supplier shall comply with the requirements of 220 CMR 14.05. Failure to comply with 220 CMR 14.05 may result in suspension, revocation, or non-renewal of the Applicant's certificate following a hearing before the Department in conformance with M.G.L. c. 30A.

(3) Billing and Termination of Supplier Service Requirements. Each Supplier shall comply with 220 CMR 25.00: Billing and Termination Procedures of the Department of Public Utilities, 27.00: Elimination of the Practice of Gas and Electric Companies of Requiring a Deposit from Residential Customers as a Condition to Furnishing Utility Service, 28.00: Billing Regulations for Condominiums, and 29.00: Billing Procedures for Residential Rental Property Owners Cited for Violation of the State Sanitary Code 105 CMR 410.354 or 105 CMR 410.254 as provided in 220 CMR 14.04(3).

(a) Each Bill for Supplier Service shall, at a minimum, separately identify
1. Gas consumption, and indicate whether the consumption was based on actual recorded usage or estimated usage;

2. The pricing structure by which the Retail Customer will be billed, as shown on the Retail Customer's Terms of Service, as described in 220 CMR 14.05(2); and

3. The total charge for Supplier Service.

(b) A Supplier that bills a Retail Customer in accordance with the passthrough billing option described in 220 CMR 14.03(6)(c)1., may issue a Bill less frequently than the billing period defined in a Local Distribution Company's terms and conditions for Distribution Service provided that the Bill includes gas consumption information for each billing period and indicates whether the consumption for each billing period was based on actual recorded usage or estimated usage.

(c) A Bill for Supplier Service provided to a Residential Customer shall not be considered "due" under 220 CMR 14.00 in less than 45 days from receipt, as defined in 220 CMR 25.01: Applicability and Definitions. In those instances when a Supplier issues a Bill less frequently than the billing period defined in a Local Distribution Company's terms and conditions for Distribution Service, pursuant to 220 CMR 14.04(3)(b), the Bill shall not be considered "due" in less time than has elapsed between receipt of the current Bill and receipt of the previous Bill from the Supplier. No disputed portion of the Bill shall be considered "due" if the Retail Customer has filed a complaint that is pending with the Department, in accordance with 220 CMR 25.00: Billing and Termination Procedures of the Department of Public Utilities and 220 CMR 14.06.

(d) A Supplier may terminate Supplier Service to a Residential Customer during the term of service only if a Bill is not paid within 48 days from receipt, or such longer time as may be permitted by 220 CMR 14.04(3)(c). Prior to termination of Supplier Service, the Supplier shall render a second request for payment not earlier than 27 days after the rendering of the Bill (i.e., the first request for payment). The second request for payment shall state the Supplier's intention to terminate Supplier Service on a date not earlier than 48 days after the Residential Customer's receipt of the Bill. The Supplier shall render a final notice of termination not earlier than 45 days after the Residential Customer's receipt of the Bill. Such notice shall be rendered at least 72 hours, but in no event more than 14 days, prior to termination of Supplier Service. The Supplier may terminate Supplier Service if the Bill remains unpaid on the indicated termination date, except that a Supplier may not terminate Supplier Service to a Residential Customer if the unpaid Bill is the subject of a dispute resolution, in accordance with 220 CMR 25.00: Billing and Termination Procedures of the Department of Public Utilities and 220 CMR 14.06.

(e) A Supplier must notify a Customer of termination of Supplier Service at least ten days before termination, when such termination is due to reasons other than non-payment. Such notice must be in writing, addressed to the Retail Customer's billing address, and mailed first-class.

(4) Customer Authorization Requirements.

(a) Release of Customer Usage Information. Each Supplier or Retail Agent must obtain verification that a Retail Customer has affirmatively chosen to allow the release of the Retail Customer's historic usage information to the Supplier or Retail Agent, in accordance with 220 CMR 14.04(4)(c).

(b) Initiation of Service by a Supplier or Retail Agent. Each Supplier and Retail Agent must obtain verification that each Retail Customer choosing a Supplier has affirmatively chosen such entity, in accordance with 220 CMR 14.04(4)(c). No Supplier or Retail Agent may initiate Supplier Service to a Retail Customer without first obtaining said affirmative choice from the Customer.

(c) Affirmative Choice. For the purposes of 220 CMR 14.04(4)(c), the term "affirmative choice" may be evidenced by a Letter of Authorization signed by the Retail Customer, Third-Party Verification, or the completion of a toll-free call made by the Retail Customer to an independent third party operating in a location physically separate from the telemarketing representative who has obtained the Retail Customer's initial oral authorization to change to a new Supplier, or any other alternative means as established by the Department.
1. Letter of Authorization. For the purposes of 220 CMR 14.04(4)(c)1., the term "Letter of Authorization" means an easily separable document whose sole purpose is to authorize a Supplier to initiate Supplier Service for a Retail Customer. The Letter of Authorization must be signed and dated by the Retail Customer. The Letter of Authorization shall not be combined with inducements of any kind on the same document, except that a perforated "tear-off" section shall be construed as a separate document. At a minimum, the Letter of Authorization must be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language that confirms:
a. The Retail Customer's billing name and address;

b. The decision to change to the prospective Supplier;

c. That the Retail Customer understands that no more than one Supplier may be designated to provide Supplier Service to a meter or group of meters at a specific location; and

d. If applicable, that the Retail Customer understands that any Supplier selection the Retail Customer chooses may involve a charge to the Retail Customer for changing the Retail Customer's Supplier.

The Letter of Authorization shall not suggest or require that a Retail Customer take some action in order to retain the Retail Customer's current Supplier. If any portion of the Letter of Authorization is translated into another language, then all portions of the Letter of Authorization must be translated into that language.

2. Third-party Verification. For the purposes of 220 CMR 14.04(4)(c)2., the term "Third-party Verification" means an appropriately qualified and independent third party operating in a location physically separate from the telemarketing representative who has obtained the Retail Customer's oral authorization to change to a new Supplier, such authorization to include appropriate verification data, such as the Retail Customer's date of birth and social security number or other voluntarily submitted information; provided, however, any such information or data in the possession of the third party verifier or the marketing company shall not be used, in any instance, for commercial or other marketing purposes, and shall not be sold, delivered, or shared with any other party for such purposes.

(d) Rescission Period. A Supplier may not initiate Supplier Service to a Residential Retail Customer, or to a Non-residential Retail Customer with an annual load of less than or equal to 7,000 therms, choosing the Supplier prior to midnight on the third day following the Retail Customer's receipt of a written confirmation of an agreement to purchase natural gas and a statement entitled "Terms of Service," as described in 220 CMR 14.05(2), during which period the Retail Customer shall have the right to rescind, without charge or penalty, the affirmative choice of Supplier.

(5) Security Deposits and Late Payment Charges. A Supplier shall be precluded from requiring security deposits or assessing late payment charges from Retail Customers except as specifically provided for in 220 CMR 26.00.

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