26 Del. Admin. Code § 3001-6.0

Current through Register Vol. 28, No. 4, October 1, 2024

Section 3001-6.0 - Electric Supplier Contracts and Contract Summaries

6.1 An electric supplier shall provide a contract and contract summary in the same language used by the electric supplier or its agent to market, sell, or describe the contract terms to prospective residential customer and small commercial customers.

6.2 Contract Requirements.

6.2.1 Only a licensed electric supplier may execute a contract for electricity supply service with a customer.

6.2.2 A contract for residential customer and small commercial customers shall be written in clear and plain language and contain all material terms and conditions, including:

6.2.2.1 A list and description of the contract services;

6.2.2.2 The contract duration, expressed in months or years, or the disclosure that the contract is month-to-month;

6.2.2.3 A description of the price of each service, including:

6.2.2.3.1 The price and the duration of the introductory price, if applicable. If the price to be charged upon the expiration of the introductory price is a fixed price, the fixed price that will be charged upon the expiration of the introductory price;

6.2.2.3.2 For variable price contracts:

6.2.2.3.2.1 The price to be charged, per kilowatt-hour, for the first billing cycle of the contract;

6.2.2.3.2.2 An explanation of the basis on which the price will vary and any limits on price variability;

6.2.2.3.2.2.1 If there is a limit on price variability, such as a specific price cap, a maximum percentage increase in price between billing cycles or minimum/maximum charges per kilowatt-hour for electricity during the term of the contract, the electric supplier shall clearly explain applicable limits;

6.2.2.3.2.2.2 If there is not a limit on price variability, the electric supplier shall clearly and conspicuously state that there is not a limit on how much the price may change from one billing cycle to the next;

6.2.2.3.2.3 A telephone number and Internet address at which a residential customer or small commercial customer may obtain the previous 24 months' average monthly billed prices for that customer's rate class and EDC service territory. If an electric supplier has not been providing service in a rate class and EDC service territory for 24 months, the electric supplier shall provide the average monthly billed prices for the months available to date;

6.2.2.3.2.4 In plain language, a statement that historical pricing is not indicative of present or future pricing; and

6.2.2.3.2.5 A statement describing how the residential customer or small commercial customer may access future pricing information in accordance with Section 7.0 of this regulation;

6.2.2.4 A description of any other fees or charges, including but not limited to early termination penalties, late fees, fees to access the electric supplier's services, minimum monthly charges, enrollment fees, and interest charges; a description of the specific condition under which such fees or charges can be imposed; and the amount of such fees or charges;

6.2.2.5 A description of any other non-commodity products or services provided to the residential customer or small commercial customer as part of the contract;

6.2.2.6 If the electric supplier claims that residential customer or small commercial customers will save money by entering into the contract as opposed to staying with SOS, the electric supplier shall include in the contract a description of any inducement, if applicable, on which it relies to make this claim;

6.2.2.7 A statement that:

6.2.2.7.1 The residential customer or small commercial customer may rescind the contract within 3 business days from the start of the rescission period; and

6.2.2.7.2 The rescission period begins on one of the following dates, as applicable;

6.2.2.7.2.1 When the residential customer or small commercial customer signs the contract;

6.2.2.7.2.2 When the residential customer or small commercial customer transmits the electronic acceptance of the contract electronically; or

6.2.2.7.2.3 When the residential customer or small commercial customer receives the contract and contract summary, if received by mail. There shall be a rebuttable presumption that a contract and contract summary correctly addressed to a residential customer or small commercial customer with sufficient first class postage attached shall be received 3 days after it has been properly deposited in the United States mail;

6.2.2.8 A statement of the electric supplier's termination rights, which shall explain the specific conditions under which the electric supplier may terminate service. At a minimum, the electric supplier shall provide the residential customer or small commercial customer with at least 30 days' written notice of termination of the contract and procedures to maintain ongoing service;

6.2.2.9 The electric supplier's local or toll-free telephone number to obtain information and handle complaints; mailing address and website address; the Commission's address, website address, Delaware toll-free telephone number; and the DPA's address, website address, and telephone number:

6.2.2.10 A statement informing the residential customer or small commercial customer that, because of relocation outside of their current EDC's service territory, the customer may terminate the contract with no termination fee;

6.2.2.11 A statement that the electric supplier may terminate the contract prior to the stated term of the contract, including:

6.2.2.11.1 The circumstances under which early cancellation by the electric supplier may occur;

6.2.2.11.2 The manner in which the electric supplier shall notify the residential customer or small commercial customer of the early cancellation of the contract;

6.2.2.11.3 The duration of the notice period before early cancellation by the electric supplier; and

6.2.2.11.4 The remedies available to the residential customer or small commercial customer if early cancellation occurs;

6.2.2.12 A statement that the residential customer or small commercial customer may terminate the contract prior to the stated term of the contract, including:

6.2.2.12.1 The manner in which the residential customer or small commercial customer shall notify the electric supplier of the early cancellation of the contract;

6.2.2.12.2 The duration of the notice period before early cancellation;

6.2.2.12.3 The remedies available to the electric supplier if early cancellation occurs; and

6.2.2.12.4 The amount of any early cancellation fee, except that an electric supplier shall not charge an early cancellation for the commodity portion of a variable price contract;

6.2.2.13 A statement describing contract renewal procedures, if any, including the timing of the notices that the residential customer or small commercial customer will receive prior to the renewal date;

6.2.2.14 A dispute procedure, including that the electric supplier must adhere to the provision in 26 DE Admin. Code 3002, subsection 3.2.2 regarding good faith disputes; and

6.2.2.15 All disclosures required by applicable laws and regulations that govern marketing, consumer protection, and door-to-door sales, including the Delaware Home Solicitation Sales Act, 6 Del.C. § 4401et seq.

6.3 Contract Summary Requirements.

6.3.1 At the time of completion of the contracting process, an electric supplier shall provide residential customer and small commercial customers with a copy of the executed contract and completed contract summary.

6.3.2 If the contract is completed through a telephone solicitation, the electric supplier shall send the contract summary with the C contract to the residential customer or small commercial customer.

6.3.3 If the contract is completed through the internet, the contract summary shall be:

6.3.3.1 Made available for download by the residential customer or small commercial customer at the time of contracting; and

6.3.3.2 Transmitted to the residential customer or small commercial customer by the electric supplier by mail or by email if the customer consents to receipt of email disclosures.

6.3.4 If the contract is completed in person, the contract and contract summary shall be reviewed with and provided to the residential customer or small commercial customer by the electrical supplier in hard copy or electronically, and the executed contract and contract summary provided to the residential customer or small commercial customer at the time of contracting in hard copy or electronically if the customer consents to electronic disclosures.

6.3.5 An electric supplier offering a variable price contract to residential customer or small commercial customers shall include in its contract summary:

6.3.5.1 The disclosures required by subsection 6.2.2.3.2.2;

6.3.5.2 A toll free telephone number or website link where the R residential customer or small commercial customer may access historical pricing information as described in subsection 6.2.2.3.2.3, along with the disclaimer in subsection 6.2.2.3.2.4; and

6.3.5.3 The disclosures required by subsection 7.1.3.

26 Del. Admin. Code § 3001-6.0

25 DE Reg. 963 (4/1/2022)
27 DE Reg. 983 (6/1/2024) (Final)