Code of Massachusetts Regulations › 220 CMR - DEPARTMENT OF PUBLIC UTILITIES › Title 220 CMR 11.00 - Rules Governing the Restructuring of the Electric Industry › Section 11.05 - Competitive Supplier and Electricity Broker Requirements

Current through Register 1525, July 5, 2024
(1)
Purpose and
		Scope
. The purpose of 220 CMR 11.05 is to establish the
		requirements applicable to all Competitive Suppliers and Electricity
		Brokers.
(2)
Licensing
		Requirements
.
(a)
Scope
. 220 CMR 11.05(2) governs application for
		initial license and for renewal of license.
(b)
Information Filing
		Requirements
. Before initiating service to Retail Customers, each
		Applicant shall apply for a license and shall file for review and approval with
		the Department's Secretary, in such form as is prescribed by the Secretary, a
		notarized document, signed by two officers of the Applicant, that includes the
		information identified in 220 CMR 11.05(2)(b)1. through 19., except that an
		Electricity Broker shall not be required to provide the information described
		in 220 CMR 11.05(2)(b)10. and 14.:
1. Legal
		name;
2. Business
		address;
3. A description of the
		company's form of ownership. If a corporation, association, or partnership:
a. the name of the state where
		organized:
b. the date of
		organization;
c. a copy of the
		Articles of Organization or Incorporation (filed with the Secretary of State
		under M.G.L. c. 156B or, if incorporated in another state, by the cognizant
		approving authority established by law) or Association, partnership agreement,
		or other similar document regarding legal organization;
d. by-laws; and
e. the name, address and title of each
		officer and director, partners, or other similar officers;
4. A statement (with appropriate citation to
		corporate articles or by-laws or other operative documents) that acting as a
		Competitive Supplier or Electricity Broker is not an
ultra vires
purpose (beyond the scope) of the entity;
5. A summary of any history of bankruptcy,
		dissolution, merger or acquisition of the entity in the two calendar years
		immediately preceding application;
6. Name, title, and an 800 or toll-free
		telephone number of customer service department or contact person available to
		customers;
7. Name, title, and
		telephone number of regulatory contact person;
8. Name and address of Resident Agent for
		Service of Process in Massachusetts for purposes of M.G.L. c. 223A, §
		3;
9. Brief description of the
		nature of business being conducted, including types of customers to be served
		and geographic area in which services are to be provided;
10. A statement that the Applicant will
		comply with
		220 CMR
		11.06;
11. Documentation regarding any valid
		purchased power contract between the Applicant, its Affiliates, its parent or
		subsidiary, and any electric company formed pursuant to the provisions of
		M.G.L. c. 164 including documentation that contracts approved by the Department
		on or before December 31, 1995, except contracts with facilities that burn
		trash to generate electricity, that are above-market are currently subject to
		renegotiation pursuant to the provisions of M.G.L. c. 164, §
		1(G)(d)(2);
12. Documentation of
		technical ability to generate or otherwise obtain and deliver electricity, or
		provide other proposed services;
13. Documentation of financial capability
		(such as the level of capitalization or corporate parent backing) to provide
		proposed services;
14.
		Documentation that the Competitive Supplier is a NEPOOL participant or will
		meet its transaction requirements through a contractual arrangement with a
		NEPOOL participant. Such documentation may satisfy the requirements set forth
		in 220 CMR 11.05(2)(b)12. and 13.;
15. Evidence or documentation of attendance
		at a Competitive Supplier training session to be sponsored by the Massachusetts
		Distribution Companies, as set forth in the Electronic Business Transaction
		Standards Working Group Report, on file with the Department;
16. One sample Bill demonstrating the
		Applicant's familiarity with 220 CMR 11.05 from each Competitive Supplier that
		plans to bill Retail Customers in accordance with the passthrough billing
		option, as set forth in
		220 CMR
		11.04(10)(c);
17. A statement whether any director,
		officer, or other similar official has in the five years immediately preceding
		application been convicted of a felony as defined by M.G.L. c. 274, § 1,
		or the equivalent law of any other jurisdiction, involving business fraud, or
		held liable for any antitrust violation pursuant to M.G.L. c. 93, c. 93A or the
		equivalent law of any other jurisdiction and whether the applicant business
		entity has itself been held liable for business fraud or antitrust violation
		(including the date and place of conviction or verdict, and nature of offense
		found);
18. Declaration under
		penalties of perjury pursuant to M.G.L. c. 268, § 6, that all statements
		made in the application are true and complete. The declaration shall include
		evidence that the declarants are authorized as agents of the Applicant to apply
		for license on its behalf; and
19.
		A statement demonstrating the Applicant's familiarity with
		220 CMR
		11.07(4)  and the sample
		statement that will be provided to the customer in writing at the time service
		is initiated to notify customers of the availability of mediation for disputes
		greater than $100 as required by M.G.L. c. 164, § 1F(2).
Applicants are required to file an original application by
		  paper copy, along with an electronic copy. Within 30 days of any material or
		  organic (M.G.L. c. 156B) change in the information required, the Applicant
		  shall file updated information with the Department. The Applicant also shall
		  file an updated application annually. If there has been no material or organic
		  change to the relevant information, an Applicant may submit an updated
		  application indicating that there has been no change since the previous
		  application. Any Applicant who knowingly submits misleading, incomplete, or
		  inaccurate information may be penalized in accordance with M.G.L. c. 164,
		  § 1F(7) and 220 CMR 11.05(2).
(c)
Fees
. Each
		Applicant shall pay an annual filing fee of $100 to the Department.
(d)
Department
		Review
. The Department will review the information described in
		220 CMR 11.05(2). The Department will inform the Applicant within 20 business
		days of submission of a complete application whether the licensing application
		has been approved or rejected. Approved license applications will be valid for
		one year from the date of approval.
(e)
Information
		Disclosure
. As a condition of maintaining or renewing a license,
		each Competitive Supplier shall comply with the requirements of M.G.L. c. 164
		and
		220 CMR
		11.06. Failure to comply with M.G.L. c. 164
		and
		220 CMR 11.00 may result in
		suspension, revocation, or non-renewal of the Applicant's license following a
		hearing before the Department in conformance with M.G.L. c. 30A.