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Summary of Chapter 164: The New Massachusetts Law that Deregulates the Electric Utility Industry
Not only does Chapter 164 help low-income people directly with, for example, weatherization services, it also provides for a series of general protections for all customers including a prohibition against "slamming" and a fair default price for energy.
Here is a summary of Chapter 164 which took effect on March 1, 1998.
Highlights
Low Income Discount: Low-income customers receiving any means-tested program and low-income customers who are verified as eligible for fuel assistance are eligible for the discount. This provision also requires substantial outreach which may include computer matching. These discounts will not end or sunset and will hover between 25-35% of the total bill, the current levels that the DPU mandates the utilities to provide.
Energy Efficiency Services: A portion of the energy efficiency and education resources (.25 mills per kilowatt hour) will be distributed by the weatherization/fuel assistance network.
Rate Decrease for All Customers: A 10% decrease which will rise to 15% after utilities restructure their assets.
Aggregation: The conference report allows for the creation of buying groups such as groups of low-income people.
Other Provisions
Slamming: "Slamming" or unauthorized switching of a customer to a supplier is prohibited.
Standard Offer: Low-income customers who move within a service territory may keep the standard offer.
Service Quality: service quality standards must be set to assure that restructuring does not degrade service or reliability.
Default Price: If customers do not choose a supplier, but stay with one or get one by "default," the price they would pay for energy would be based on the average market price, not the spot market price.
Universal Compliance: All suppliers must honor the consumer protections that already exist.
Issued by MASSCAP, March 1998
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