Bill Bans Variable Rate

May 27, 2015

State Representative Lonnie Reed (D-Branford) led House passage of SB 573, a ban on deceptive and unpredictable variable rate electricity contracts for residential electric generation service.

Often times, cheap "teaser" electric rates have lured customers into short term contract rates that balloon shortly thereafter. According to Rep. Reed, these "teaser" rates are used to fleece customers. Senior citizens living on a fixed income are often the targets of these scams.

"This is a pro-business bill," said Rep. Reed, the House Chair of the Energy and Technology Committee. "By banning the bait and switch tactics of a few bad actors, we are not only protecting customers, we are protecting the industry's reputation and ability to do business."

Last year, the General Assembly passed Public Act 14-75, which enacted several reforms for the protection of electric consumers. One of the measures was a requirement that beginning in July, every residential electric customer's monthly bill must display their rate for the coming month.

Since then, there has been a reduction in complaints as customers better understand their bills and options.

The bill now heads to the Governor for his consideration and if signed would go into effect October 1, 2015.