Section 407-313-4 - CONSUMER PROTECTIONSA.Applicability. A project sponsor, or a representative or agent of the project sponsor and any entity that markets a shared financial interest to residential or small commercial customers must comply with provisions of this section. Project sponsors are responsible for violations of the provisions of this section by representatives or agents acting on their behalf.B.Trade Practices. Individuals or entities subject to this section must comply with the provisions of the Maine Unfair Trade Practices Act, Title 5, chapter 10 and related consumer protection statutes. Any finding by an entity of competent jurisdiction that an individual or entity violated either the Maine or Federal Unfair Trade Practices Act is deemed to be a violation of this section.C.Registration. Individuals or entities subject to this section must register with the Commission. The Commission will adopt standard registration forms and specific filing requirements and delegates this task to the Director of Electric and Gas Industries.D.Financial Security. The Commission may establish a financial security requirement for individuals or entities subject to this section. Any such financial security must be held by the transmission and distribution in whose service territory the eligible facility is located. Upon a finding that an individual or entity has violated provisions of this section, the Commission may direct that amounts from the financial security be distributed to (1) customers for a refund of security deposits or advanced payments; (2) to customers for restitution of amounts paid in error or charges assessed in violation of this Chapter; and (3) to the Commission for payment of administrative penalties or any other sanction pursuant to this Chapter or applicable statutes. Prior to establishing financial security requirements pursuant to this provision, the Commission will provide an opportunity for interested persons to comment on whether a financial security requirement should be established, the amount of any such financial security requirement, and the type of security that should be allowed.E.Standard Disclosures. Prior to the sale, resale or lease of a financial interest in the output of an eligible facility, individuals or entities subject to this section must provide a disclosure that, at a minimum, contains the following: 1. A good faith estimate of the annual kilowatt-hours to be received by the shared eligible generation resource based on the size of the subscriber's shared financial interest;2. A plain language explanation of the terms under which the kilowatt-hour or bill credit will be calculated;3. A plain language explanation of requirements relating to the disposition or transfer of a shared financial interest;4. A plain language explanation of the costs and benefits to the potential shared financial interest customer, based on the customer's current usage for the term of the term of the shared financial interest; and5. A plain language explanation of renewable attributes represented by renewable energy credits and the effect of selling the renewable attributes. The Commission will adopt by order standard disclosure forms to be used by individuals or entities subject to this section when marketing a shared financial interest in an eligible facility to customers. The Commission may approve modifications to the standard disclosure forms. The Commission delegates to the Director of Electric and Gas Industries the authority to adopt standard disclosure forms and modifications to the standard disclosure forms.
F.Affirmative Authorization. Individuals or entities subject to this section must obtain affirmative authorization from a potential customer prior to the sale or transfer of a financial interest in the output of an eligible facility that would result in a commitment by the customer in the enrollment or participation of the customer. For the purposes of this subsection, the customer's affirmative choice may be evidenced by a customer-signed letter of authorization, third-party verification, or through electronic authorization. Individuals or entities subject to this section must maintain a record of the affirmative authorization for a twelve-month period and provide such records to the Commission upon request.1.Letter of authorization. For the purposes of this provision, the term "letter of authorization" means an easily separable document whose sole purpose is to authorize individuals or entities subject to this section to initiate the sale or transfer of a financial interest in the output of an eligible facility. The letter of authorization must be signed and dated by the customer and must not be combined with a check, prize or other document which intends to confer any benefit on the customer as a result of the customer's sale or transfer of a financial interest in the output of an eligible facility. The document may be transmitted electronically by the customer to the provider if the provider maintains a security system sufficient to identify the customer and prevent fraudulent use of the letter of authorization by any person.2.Third-party verification. For the purposes of this provision, the term "third-party verification" means an appropriately qualified and independent third party operating in a location physically separate from the marketing representative who has obtained the customer's oral authorization for the sale or transfer of a financial interest in the output of an eligible facility. The authorization must include appropriate verification data, such as the customer's date of birth or other voluntarily submitted information; provided, however, any such information or data in the possession of the third party verifier or the marketing company may not be used, in any instance, for commercial or other marketing purposes, and may not be sold, delivered, or shared with any other party for such purposes.3.Electronic authorization. For purposes of this provision, the term "electronic authorization" refers to a verification of agreement through electronic means. Individuals or entities subject to this section must acknowledge receipt and confirmation of the sale or transfer of a financial interest in the output of an eligible facility within one business day. The confirmation may be provided to the customer by e-mail.G.Rescission. Individuals or entities subject to this section must allow a customer to rescind its authorization in the event such recission is requested orally or in writing within five days of the customer's receipt of its first bill or invoice. The first bill or invoice must contain a notice that the customer may rescind its authorization and information stating how to proceed to rescind its authorization. The customer is responsible for payment in full of the first bill or invoice. The customer may not be charged any fees if the customer rescinds it authorization pursuant to this provision.H.Collections. Individuals or entities subject to this section may not collect or seek to collect unreasonable costs from a customer who is in default of its financial interest contract or arrangement. For purposes of this provision, unreasonable costs are those in excess of actual out-of-pocket expenses incurred by the project sponsor, including reasonable attorney fees and actual court costs.I.Marketing. In any marketing or promotional activities, individuals or entities subject to this section may not in any manner state, suggest or imply that the product that is being marketed is provided or endorsed by a transmission and distribution utility.J.Sanctions. Individuals or entities that violate the provisions of this section are subject to sanctions. Sanctions may be imposed following a hearing before the Commission in conformance Title 5 M.R.S., Chapter 375, subchapter IV (Maine Administrative Procedure Act) and Chapter 110 of the Commission's rules.1.Participation in Net Energy Billing. The Commission may prohibit individuals or entities subject to this section from participating in net energy billing under this Chapter.2.Cease and Desist Orders. The Commission may issue a cease and desist order, if the Commission finds that any individuals or entity subject to this section has engaged or is engaging in any act or practice in violation of any law or rule administered or enforced by the Commission or any lawful order issued by the Commission. A cease and desist order is effective when issued unless the order specifies a later effective date or is stayed pursuant to Title 5, section 11004.3.Restitution. The Commission may order restitution for any party injured by a violation for which a penalty may be assessed pursuant to this subsection.4.Other. The Commission may impose any other sanction authorized by law that it determines appropriate taking into account the facts and circumstances that resulted in the violation.5.Administrative Penalties. The Commission may impose administrative penalties pursuant to Title 35-A, Chapter 15 that it determines appropriate taking into account the facts and circumstances that resulted in the violation.6.Waiver. The Commission may waive the imposition of sanctions upon a showing that the violation was immaterial, unintentional, or that the individual or entity acted in good faith to comply with all applicable statutory and regulatory requirements.65-407 C.M.R. ch. 313, § 4