Section 11.07 - Complaint and Damage Claim Resolution; Penalties(1)Purpose and Scope.(a) Purpose. The purpose of 220 CMR 11.07 is to establish the complaint and dispute resolution procedures and associated penalties applicable to Customer complaints or damage claims between Customers and Distribution Companies, Competitive Suppliers, or Electricity Brokers.(b) Scope. 220 CMR 11.07 applies to all Distribution Companies, Competitive Suppliers, and Electricity Brokers doing business in the Commonwealth.(2)Liability Claims. A Customer may file a complaint with the Department alleging property damage under $ 100. The Department will refer any such complaints for mediation and/or arbitration. Any claims for damages will be resolved within 60 days from the date the claim was filed with the Department.(3)Unauthorized Initiation of Generation Service Complaints. (a)Complaint Procedure.1. A Customer may file a complaint with the Department stating that a Competitive Supplier has initiated Generation Service to the Customer, or an Electricity Broker has selected a Competitive Supplier on behalf of the Customer, without first obtaining evidence of the Customer's affirmative choice as defined in 220 CMR 11.05(4)(c). The complaint must be filed within 30 days after the statement date of a Bill or notice from the Distribution Company indicating that Generation Service has been initiated by the Competitive Supplier.2. Within ten business days of filing the complaint, the Customer will receive from the Department a request asking for the following: a copy of the Customer's Bill or notice that included the information regarding the initiation of Generation Service; the name of the original Competitive Supplier or Electricity Broker, if applicable; and any other information the Department deems relevant.3. The Customer shall, within 15 business days of the Department's notifying the Customer, respond to the Department's request for information.4. Within 15 business days of receiving the requested information from the Customer, the Department will send the following: a. A letter to the Customer acknowledging receipt of the information;b. A letter to the Distribution Company or original Competitive Supplier informing it of the pending complaint and requesting that information relevant to the initiation of Generation Service be furnished; andc. A letter informing the new Competitive Supplier or Electricity Broker, if applicable, of the pending complaint, requesting evidence of the Customer's affirmative choice as defined in 220 CMR 11.05(4)(c) to initiate Generation Service, and requesting any additional information the Department deems relevant.5. The Distribution Company or original Competitive Supplier and the new Competitive Supplier or Electricity Broker, if applicable, shall respond to the Department's request within five business days from the issuance of said requests.6. Within 25 business days after receiving evidence of the Customer's affirmative choice Information as required herein, the Department will determine if the Customer authorized the new Competitive Supplier to initiate Generation Service.(b)Refunds. If the Department determines that the new Competitive Supplier or Electricity Broker, if applicable, does not possess the required evidence of the Customer's affirmative choice as defined in 220 CMR 11.05(4)(c), the Department will require the new Competitive Supplier or Electricity Broker to refund the following: 1. To the Customer, the difference between what the Customer would have paid to the Distribution Company or previous Competitive Supplier and actual charges paid to the new Competitive Supplier;2. To the Customer, any reasonable expense the Customer incurred in switching back to the Distribution Company or original Competitive Supplier; and3. To the Distribution Company or original Competitive Supplier, the gross revenue the Distribution Company or original Competitive Supplier would have received from the Customer during the time the Customer received Generation Service from the new Competitive Supplier.(c)Civil Penalties. Pursuant to M.G.L. c. 164, § 1F(8)(d), any Competitive Supplier who initiated Generation Service to a Customer or Electricity Broker who selected a Competitive Supplier on behalf of a Customer without first obtaining evidence of the Customer's affirmative choice as defined in 220 CMR 11.05(4)(c) one or more times in a 12-month period shall be subject to a civil penalty not to exceed $ 1,000 for the first offense and not less than $ 2,000 nor more than $ 3,000 for any subsequent offense per Customer. In determining the amount of the civil penalty, the Department will consider the nature, circumstances, and gravity of the violation, the degree of the Competitive Supplier or Electricity Broker's culpability, and the Competitive Supplier or Electricity Broker's history of prior offenses. Pursuant to M.G.L. c. 164, § 1F(8)(e), any Competitive Supplier who initiated Generation Service to a Customer or Electricity Broker who selected a Competitive Supplier on behalf of a Customer without first obtaining evidence of the Customer's affirmative choice as defined in 220 CMR 11.05(4)(c) more than 20 times in a 12-month period may, after a full hearing and determination by the Department that such Competitive Supplier or Electricity Broker intentionally, maliciously or fraudulently switched the service of more than 20 customers in a 12-month period, be prohibited from selling electricity in the Commonwealth for a period of up to one year. In determining the length of suspension, the Department will consider the nature, circumstances and gravity of each violation and the degree of culpability of the Competitive Supplier or Electricity Broker.
(4)Other Customer Complaints.(a) All other complaints brought by a Customer against a Distribution Company, Competitive Supplier or Electricity Broker shall follow the procedures set forth in 220 CMR 25.02(4), except as provided in 220 CMR 11.07(4)(b).(b)Alternative Dispute Resolution.1. Pursuant to M.G.L. e. 164, § 1F(2), each Distribution Company, Competitive Supplier, and Electricity Broker shall make available to Customers alternative dispute resolution procedures, including mediation, arbitration, facilitation or other dispute resolution procedures.2. Allegation of Unfair or Deceptive Trade Practice. Pursuant to M.G.L. c. 164, § 102C, each Distribution Company, Competitive Supplier, and Electricity Broker shall submit to arbitration, upon the request of a Customer alleging that an unfair or deceptive trade practice has occurred. The Department also will make a voluntary mediation process available to consenting parties.3. Alternative dispute resolution pursuant to 220 CMR 11.07(4)(b)1. and 2. may only be requested after the Customer and Distribution Company, Competitive Supplier or Electricity Broker have attempted to resolve the dispute pursuant to 220 CMR 25.04(a).(c)Penalties. Each Distribution Company, Competitive Supplier, and Electricity Broker doing business in Massachusetts shall be subject to a range of sanctions for violations of the Department's regulations. Such sanctions may only be imposed following a hearing before the Department in conformance with M.G.L. c. 30A and 220 CMR 25.00. 1.Licensure Action. In the case of egregious misconduct or a pattern of misconduct, the Department may take licensure action against a Competitive Supplier or Electricity Broker. Such action may result in the Competitive Supplier or Electricity Broker being: a. Required to notify existing and prospective Customers of probationary status;b. Prohibited from signing up new Customers for a specified period of time; and/orc. Subject to suspension, revocation or non-renewal of its license.2.Civil Penalties. Each Distribution Company, Competitive Supplier, or Electricity Broker who violates any regulation promulgated by the Department pursuant to M.G.L. c. 164, §§ 1A through 1F, shall be subject to a civil penalty not to exceed $ 25,000 for each violation for each day that the violation persists; provided however, that the maximum civil penalty shall not exceed $ 1,000,000 for any related series of violations. In determining the amount of the penalty, the Department shall consider the following: the appropriateness of the penalty to the size of the business of the person, firm, or corporation charged; the gravity of the violation; and die good faith of the person, firm, or corporation charged in attempting to achieve compliance after notification of a violation, consistent with M.G.L. c. 164, § 1F(7).