What Recent ICC Rule Changes Mean for Aggregation Programs.
Though not specifically directed at municipalities, recently rules issued by the ICC may complicate aggregation program management, increase costs and dampen participation. The rules, adopted late in 2013, place specific requirements on Alternative Retail Electricity Suppliers (ARES) that service aggregation programs.
The ICC rules will require municipal managers to adopt new operating standards in aggregation programs in order to prevent putting their ARES suppliers’ licenses at risk for non-compliance. Some aspects of the new rules include:
- Requiring ARES to report details of all municipal reimbursements for eventual posting on the ICC website
- Certain requirements if the ARES sends enrollment letters
- Specific wording to be printed on the outside envelopes
- Minimum 21-day opt-out period regardless of the Plan of Governance
- Prohibitions against comparisons with the Price to Compare
- Mandatory use of pre-paid postcards for opt-out purposes
- Detailed explanations concerning enrollment into default service and Hourly Energy Pricing programs
Best Practices for Aggregation Programs
- Update Plan of Governance to reflect how to address new requirements
- Update solicitations and contract documents to reflect new requirements
- Support joint efforts to protect programs from additional regulations
Start by Consulting an Expert
Your community and leaders can benefit by expert advice in this changing environment. Whatever level of assistance is needed, ICCAN is there to help by:
- Representing the communities in the negotiations with suppliers
- Reviewing your process, Plan of Governance, and contracts to make sure nothing was missed and the consumers are protected.