Section 11.05 - Competitive Supplier and Electricity Broker Requirements(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.: 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;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; and19. 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. (3)Billing and Termination of Generation Service Requirements. Each Competitive Supplier shall comply with the Department's regulations set forth in 220 CMR 25.00: Billing and Termination Procedures of the Department of Public Utilities, 27.00: Elimination of the Practice of Gas and Electric Companies of Requiring a Deposit from Residential Customers as a Condition to Furnishing Utility Service, 28.00: Billing Regulations for Condominiums, and 29.00: Billing Procedures for Residential Rental Property Owners Cited for Violation of the State Sanitary Code 105 CMR 410.354 or 105 CMR 410.254 as follows: (a) Each Bill for Generation Service shall, at a minimum, separately identify: 1. Electricity consumption, and indicate whether the consumption was based on actual recorded usage or estimated usage;2. The pricing structure by which the Customer will be billed, as shown on the Customer's Terms of Service, as described in 220 CMR 11.06(3);3. The total charge for Generation Service;4. The total charge for Transmission Service, when applicable.(b) A Competitive Supplier that bills a Retail Customer in accordance with the passthrough billing option described in 220 CMR 11.04(10)(c), may issue a Bill less frequently than the billing period defined in a Distribution Company's terms and conditions for Distribution Service provided that the Bill includes electricity consumption information for each billing period and indicates whether the consumption for each billing period was based on actual recorded usage or estimated usage.Adopted by Mass Register Issue 1315, eff. 6/17/2016.