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CT AG Settles Public Power for $3M Over Rate Disclosure Violations

Public PowerJuly 6, 2022Connecticut Attorney General

Penalty Amount

$3,000,000

Summary

Connecticut Attorney General and Consumer Counsel announced a $3 million settlement with electric supplier Public Power for failing to publish required 'next cycle rate' information, which denied consumers the opportunity to switch suppliers to avoid rate increases. As part of the settlement, Public Power and its sister companies must permanently exit the Connecticut market, and the funds will be used to pay down unpaid electric bills for hardship customers.

Remedy

Public Power must pay a $3 million monetary penalty, permanently cease operations in Connecticut (a market ban), and the settlement funds will be used to provide debt relief for customers with unpaid electric bills.

Monetary PenaltyBanConsumer Refunds

Contract Impact

In-house legal teams should review all electric supply agreements (both customer-facing supplier contracts and any intermediary/utility partnership agreements) for clauses governing rate disclosure, notice requirements for rate changes, and customer switching rights. Specific attention is needed on whether contracts mandate compliance with the Connecticut Public Utilities Regulatory Authority's (PURA) 'next cycle rate' publication rules. Teams should assess if existing clauses provide adequate remedies (e.g., termination rights, penalties) for failures to disclose required rate information. Agreements may need amendments to explicitly incorporate PURA's transparency requirements, establish clear audit rights, and include provisions addressing forced market exit and customer hardship fund contributions as seen in this settlement.

Contract Search Terms

next cycle rate disclosurerate change notification periodelectric supplier switching rightsPURA compliance clauseconsumer rate transparency requirementssupply agreement termination for non-compliancehardship customer debt relief fundmarket exit and wind-down provisions

Violation Types

Entity Details

Entity

Public Power

Industry

Other

Official Sources

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