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April 6, 2018

Mass. Legislature to investigate competitive electric suppliers

Photo | State House News Service Attorney General Maura Healey

Following Attorney General Maura Healey's call for an end to the competitive electric supply market, House and Senate lawmakers are gearing up to hold an oversight hearing to question companies cited by Healey about what she described as deceptive business practices.

The Joint Committee on Telecommunications, Utilities and Energy, co-chaired by Rep. Thomas Golden of Lowell and Sen. Michael Barrett of Lexington, is planning the hearing, according to the committee, to "consider immediate protective measures and the implications of those actions," learn about best practices in other states and explore issues related to the market that Healey said were beyond the scope of her review.

Nearly 500,000 Massachusetts residents get their electricity from a competitive supplier, an option created under a 1997 law that deregulated the state's electricity generation industry. Healey said her office received more than 700 complaints about competitive electric suppliers in the last three years.

Electric customers in Massachusetts who switched to a competitive electric supplier paid $176.8 million more than they would have had they stayed with their utility company from July 2015 to June 2017, according to Healey.

The date for the hearing has not yet been scheduled. However, Rep. Frank Moran, the vice-chair of the committee, has been tapped to lead the proceedings. 

Moran represents Lawrence, which was identified by Healey as one of the communities hit hardest by aggressive and deceptive sales practices by competitive electric suppliers. Customers in Lawrence paid $153,228 above basic service in June 2017, according to Healey's report, including $76,935 paid by low-income subscribers above basic service rates.

A senior executive of Direct Energy has called Healey's demand for the end of the competitive electric supply market is a "serious mistake," and said Healey never sought to discuss her concerns with suppliers before reaching a conclusion based on a "profoundly misguided premise."

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