Section 11.06 - Information Disclosure Requirements(1)Purpose and Scope.(a)Purpose. The purpose of 220 CMR 11.06 is to ensure that Customers are presented with consistent information by which to evaluate services offered by Competitive Suppliers and Distribution Companies.(b) Scope. 220 CMR 11.06 applies to all Competitive Suppliers and to Distribution Companies as specified in 220 CMR 11.06.(2)Information Disclosure Label.(a) Each Competitive Supplier and each Distribution Company providing Standard Offer Generation Service or Default/Basic Generation Service shall prepare information on a label, or labels, for Retail Customers in a consistent format, as determined by the Department. Such label, or labels, shall be a condition of licensure for Competitive Suppliers pursuant to 220 CMR 11.05(2)(e). The label, or labels, shall present information in accordance with 220 CMR 11.06(2)(b) through 11.06(2)(e), and shall conform to all applicable rules and regulations of the Attorney General ( 940 CMR 19.00: Retail Marketing and Sale of Electricity). The label, or labels, shall be distributed in accordance with 220 CMR 11.06(4) beginning on September 1, 1998.(b)Price to be Charged and Price Variability. A label shall present the price of Generation Service, Standard Offer Generation Service or Default/Basic Generation Service, as an average unit price in cents per kilowatthour as measured at the customer meter over the course of an annualized period, regardless of actual price structure. This unit price shall not include charges associated with Distribution Service, other Department regulated services, or other non-generation products or services except as provided in 220 CMR 11.06(2). The label shall contain the following information on average price and price variability. 1.Average Price Information.a. Average prices shall be shown for four levels of use. The average price for each usage level shall be the total charge for Generation Service, Standard Offer Generation Service or Default/Basic Generation Service for the specified usage level, divided by the kilowatthours for the particular usage level. Average prices shall be rounded to the nearest 1/10 of a cent per kilowatthour. i.Residential. Average prices for residential consumers shall be shown for usage levels of 250, 500, 1000 and 2000 kilowatthours per month.ii.Commercial. Average prices for commercial consumers shall be shown for 1,000, 10,000, 20,000 and 40,000 kilowatthours per month.b. Average prices for time-of-use and seasonal price structures shall be based on New England-wide load profiles.c. Average prices for service tied to spot or other variable prices shall be shown based on the average prices that would have been charged in the last month of the prior quarter.d.Bundled Generation Service. Competitive Suppliers that offer Generation Service where electricity is bundled with any other product or service may display the charge for Generation Service as one of the following: i. The average price for which the Retail Customer can purchase unbundled Generation Service from the Competitive Supplier, or ii. An average price, assuming the entire price of the bundled service is attributable to electricity. If this option is selected the label may include a statement, in the same font size as subheadings, that identifies what is included in the average price, or iii. For any generation offering that includes Energy Efficiency measures, and that includes an explicit guarantee of annual Bill savings to result from such measures, an average unit price that reflects the guaranteed reduction of customer Bills and all costs to be charged to customers for provision or installation of such measures over the contract term.e. Inducements. Average prices shall not reflect any adjustment for cash or non-cash sales inducements except as provided elsewhere in 220 CMR 11.00.2.Price Variability Information. If average prices vary by time of use or by volume, a subheading shall be printed below the average prices stating one or both of the following: a. If average prices vary by time of use, including seasonal prices, the statement 410 shall read "Your average electricity price will vary according to when and how much electricity you use. See your most recent bill for your monthly use and the Terms of Service or your bill for actual prices."b. If average prices vary only by volume of sales, including prices that have a fixed charge and a flat energy charge, the statement shall read "Your average generation price will vary according to how much electricity you use. See your most recent bill for your monthly use and the Terms of Service or your bill for actual prices."(c)Customer Service Information. The label shall contain a toll-free number for customer service and complaints.(d)Fuel, Emissions, and Labor Characteristics. The label shall contain information on the fuel mix, emissions, and labor characteristics associated with the Competitive Supplier's company resource portfolio, a product or segment of the Competitive Supplier's company resource portfolio, or the company resource portfolio used in the provision of Standard Offer Generation Service or Default/Basic Generation Service, as provided in 220 CMR 11.06. 1.Determining the Company Resource Portfolio.a.Company Resource Portfolio. The company resource portfolio shall derive from quarterly determinations of the resources used by a Competitive Supplier to meet its load obligations in New England over the label reporting period. Such generating resources shall reflect resources as discussed in 220 CMR 11.06(2)(d)1.b. through f. The company resource portfolio shall be determined using market settlement data or equivalent data provided by the Independent System Operator. Company resource portfolio information shall be updated on a quarterly basis. b.Label Reporting Period. The label reporting period shall be the most recent one-year period prior to the quarter for which resource portfolio information has been updated with the following exceptions: i. If a Competitive Supplier has operated for less than a full year, but more than three months, the Competitive Supplier shall rely on the historic information that is available for the portion of the year that the Competitive Supplier has operated.ii. If a Competitive Supplier has operated for less than three months, the Competitive Supplier shall rely on a reasonable estimate of its company resource portfolio based on, the Competitive Supplier's unit entitlements or contracts that specify the associated generation units and the average regional system mix.c.Known Resources. Where the company resource portfolio includes kilowatthours that are associated with specific generating units in which the Competitive Supplier holds, or is assigned, unit entitlements or contracts that specify the associated generation units, such kilowatthours shall be deemed to derive from known resources. Where a Competitive Supplier holds, or is assigned, and can verify a contract for the output from a facility of one megawatt or less, which is not reflected in market settlement data from the Independent System Operator, the Competitive Supplier may include such resource in its company resource portfolio. For the purpose of determining fuel mix, emissions, and labor characteristics required by 220 CMR 11.06(2)(d)4. through 6., kilowatthours from known resources shall be ascribed the characteristics of the associated generating units.d.System Power. Where the company resource portfolio includes kilowatthours that are not associated with known resources determined in accordance with 220 CMR 11.06(2)(d) l.c., such kilowatthours shall be deemed to derive from system power. For the purpose of determining fuel mix and emissions in accordance with 220 CMR 11.06(2)(d)4. and 5., kilowatthours from system power shall be ascribed the characteristics of the residual system mix. The residual system mix shall be the mix of generating resources in New England net of known resources. Until such time as data are available on the residual system mix, system power shall be ascribed the characteristics of the average regional system mix.e. Imports. Where the company resource portfolio includes kilowatthours that are associated with imports to New England, such kilowatthours shall be called "imports" for the purposes of disclosing fuel mix. For the purpose of disclosing emissions, imports shall be ascribed representative emissions rates as determined in consultation with the Massachusetts Department of Environmental Protection. Until such time as said representative emissions rates are determined, kilowatthours associated with such imports shall be ascribed the same characteristics as system power.f. Energy Storage Facilities. Where the resource portfolio includes kilowatthours that are associated with energy storage facilities, such kilowatthours shall be deemed system power and shall be ascribed the same characteristics as system power. The characteristics disclosed shall include any losses incurred as a result of storage.2.Determining Products or Segments of a Competitive Supplier's Company Resource Portfolio. For the purpose of developing information disclosure labels for distribution to Retail Customers pursuant to 220 CMR 11.06(4), a Competitive Supplier may disaggregate its company resource portfolio, as determined in accordance with 220 CMR 11.06(2)(d)1., into segments, or products, under the following conditions: a. Disaggregation of the Competitive Supplier's company resource portfolio into segments is verified by the Independent System Operator, or, prior to March 1, 1999, by an independent auditor; andb. The Competitive Supplier provides an annual statement from an independent auditor certifying that, over the label reporting period, the kilowatthours from resources associated with each product or segment of the company resource portfolio are not less than the total kilowatthours of load obligation associated with Retail Customers that are assigned said products or segments.3.Annual Report. A Competitive Supplier shall present an annual report to the Department documenting the following: a. Determination of the company resource portfolio, including market settlement data or equivalent data provided by the Independent System Operator;b. Disaggregation of the company resource portfolio into segments or products;c. Matching over the label reporting period of kilowatthours from product resources to load obligations associated with Retail Customers assigned such products; andd. Statements of verification by the Independent System Operator, or an independent auditor, as required pursuant to 220 CMR 11.06(2)(d)2.4.Fuel Source Characteristics.a. Each Competitive Supplier and each Distribution Company providing Standard Offer Generation Service or Default/Basic Generation Service shall determine its company resource portfolio in accordance with 220 CMR 11.06(2)(d)1. and shall report on information disclosure labels the fuel mix of said company resource portfolio or of an allocated segment of said company resource portfolio, as determined in accordance with 220 CMR 11.06(2)(d)2..b. At least the following fuel sources shall be separately identified on the label and listed in alphabetical order: biomass; coal; hydro-large; hydro-small; imports; cells utilizing renewable fuel sources, landfill gas, and ocean thermal); solar; and wind. Fuel mix percentages shall be rounded to the nearest full percentage point. For the purpose of 220 CMR 11.06, hydro resources of greater than 30 megawatts shall be deemed large hydro; all other hydro resources shall be deemed small hydro.5.Emissions Characteristics.a. Each Competitive Supplier or Distribution Company providing Standard Offer Generation Service or Default/Basic Generation Service shall identify its company resource portfolio in accordance with 220 CMR 11.06(2)(d)1. and shall report on information disclosure labels the emission characteristics of said company resource portfolio or of an allocated segment of said company resource portfolio, as determined in 220 CMR 11.06(2)(d)2..b. For the purpose of emission characteristics disclosure, at least the following pollutants shall be separately identified on the label: carbon dioxide (CO[2]), nitrogen oxides (NO[x]), sulfur dioxide (SO[2]), and, when the Massachusetts Department of Environmental Protection determines that reliable and accurate information becomes available, heavy metals. The Department will determine, in consultation with the Massachusetts Department of Environmental Protection, whether additional pollutants should be disclosed.c. Emissions for each emission category shall be computed as an annual emission rate in pounds per kilowatthour. For each emission category, the emission rate of the company resource portfolio, or segment thereof, shall be presented as a percentage of the New England regional average emission rate and shall be compared to emissions from a new unit as determined in consultation with the Massachusetts Department of Environmental Protection.d. Emission characteristics of the company resource portfolio, or segment thereof, shall be calculated using annual emission rates for each Generating Facility as determined in consultation with the Massachusetts Department of Environmental Protection and the United States Environmental Protection Agency. Until such annual emission rates are identified, the annual emission rates for a generating unit shall be calculated based on one of the following: i. Continuous emissions monitoring data for the most recent reporting year divided by net electric generation for the same period; orii. If continuous emissions monitoring data are not available, emission factors currently approved or provided by state environmental protection agencies or the United States Environmental Protection Agency; or iii. If continuous emissions monitoring data are not available, and state environmental protection agencies or the United States Environmental Protection Agency have not determined emissions factors associated with the generating unit, for NO[x] and SO[2], permitted emissions levels and for CO[2], the carbon content of the fuel.e. The following types of generating units shall be assigned emissions characteristics as provided in this section: i. Cogeneration facilities may make a reasonable allocation of emissions between electricity production and other useful output based on measured heat balances. Said allocation shall be reviewed in consultation with the Massachusetts Department of Environmental Protection.ii. The use of offsets associated with facilities that emit CO[2] shall be as determined by the Massachusetts Department of Environmental Protection.6.Labor Characteristics. a. Each Competitive Supplier or Distribution Company offering Standard Offer Generation Service or Default/Basic Generation Service shall determine its company resource portfolio in accordance with 220 CMR 11.06(2)(d)1. and shall report on information disclosure labels the labor characteristics of said company resource portfolio, or of a segment of said company resource portfolio, as determined in 220 CMR 11.06(2)(d)2..b. Competitive Suppliers with known resources in their company resource portfolio shall be required to determine whether a majority of employees operating at each known generation plant are employed under collective bargaining agreements and, if such plants experienced a labor dispute in the most recent calendar year, whether any replacement workers were hired. For system power, the information used on the label pertaining to collective bargaining agreements and the use of replacement labor during labor disputes shall be based on the New England Region system average in the most recent calendar year available. The labor data on the label shall be based on a kilowatthour weighted average for all known resources and system power.(e)Format of Information Disclosure Label. Information disclosure labels shall be presented in formats as determined by the Department.(3)Terms of Service Requirement. Each Competitive Supplier shall prepare a statement entitled "Terms of Service" as described in 220 CMR 11.06. The Terms of Service shall be distributed in accordance with 220 CMR 11.06(4), and shall conform to all applicable rules and regulations of the Attorney General ( 940 CMR 19.00: Retail Marketing and Sale of Electricity. The Terms of Service shall present the following information: (a) Actual pricing structure according to which the Retail Customer will be billed, including an explanation of price variability and price level adjustments that can cause the price to vary;(b) Length and kind of contract;(c) Due date of Bills and consequences of late payment;(d) Conditions under which a credit agency is contacted;(e) Deposit requirements and interest on deposits;(f) Limits on warranty and damages;(g) Any and all charges, fees, and penalties;(h) Information on consumer rights pertaining to estimated Bills, third-party billing, deferred payments, and rescission of supplier switch within three days of receipt of confirmation; (i) A toll-free number for service complaints; (j) Low-income rate eligibility; (k) Provisions for Default/Basic Generation Service; (l) Applicable provisions of M.G.L. c. 164, § 1F; and(m) Method whereby the Retail Customer will be notified of changes to items in the Terms of Service.(4)Distribution of Disclosure Label and Terms of Service. The label and the Terms of Service shall be distributed as follows: (a)Prior to Initiation of Service by a Competitive Supplier. Following a Retail Customer's affirmative choice of a Competitive Supplier, the Competitive Supplier shall provide the Retail Customer with a disclosure label prepared pursuant to 220 CMR 11.06(2), based on the company resource portfolio identified pursuant to 220 CMR 11.06(2)(d)1., and with the Terms of Service prepared pursuant to 220 CMR 11.06(3). A Competitive Supplier may also provide the Retail Customer with a disclosure label reflecting a product or a segment of the company resource portfolio identified pursuant to 220 CMR 11.06(2)(d)2. Said documents shall accompany written confirmation by the Competitive Supplier of the Retail Customer's agreement to take Generation Service; and the Retail Customer's receipt of said documents shall trigger the three-day rescission period required in 220 CMR 11.05(4)(d).(b)Default/Basic Generation Service. With the first bill rendered to a Retail Customer following the initiation of Default/Basic Generation Service, the Distribution Company shall provide the Retail Customer with a disclosure label prepared pursuant to 220 CMR 11.06(2) and notify the Retail Customer that the tariff for such service and the Distribution Company's terms and conditions for Distribution Service are on file with the Department and are available upon request.(c)Quarterly Notification. Competitive Suppliers and Distribution Companies providing information disclosure label to their Retail Customers quarterly. A Competitive Supplier may provide a label reflecting a segment of 'its company resource portfolio pursuant to 220 CMR 11.06(2)(d)2., provided that once a year the Competitive Supplier shall provide a disclosure label based on the company resource portfolio identified pursuant to 220 CMR 11.06(2)(d)1.. Until such time as the conditions specified in 220 CMR 11.06(2)(d)(2) are met, quarterly information disclosure labels shall be based on the company resource portfolio identified pursuant to 220 CMR 11.06(2)(d)1..(d)Upon Request. An information disclosure label based on the company resource portfolio identified pursuant to 220 CMR 11.06(2)(d)1., and the Terms of Service, or terms and conditions, for any available generation offerings shall be available to any person upon request.(5)Annual Booklet. Any Competitive Supplier licensed by the Department to do business in the Commonwealth pursuant to 220 CMR 11.05 shall prepare an information booklet describing a Retail Customer's rights under the provisions of M.G.L. c. 164. The annual booklet must provide information about a customer's right to mediation pursuant to M.G.L. c. 164, § 1F(2) and 220 CMR 11.07(4). Competitive Suppliers shall annually mail this booklet to their Retail Customers.(6)Information Disclosure in Advertising. (a) All advertisements shall comply with state and federal regulations governing advertising, including the Attorney General's regulations (940 CMR), and shall be consistent with the Federal Trade. Commission's guidelines for the use of environmental marketing claims. The Department does not represent that labels prepared pursuant to 220 CMR 11.00 constitute compliance with state and federal regulations governing advertising.(b) Any advertising or marketing of electricity rates shall indicate the rate to be charged in bold print, in the case of printed and Internet materials, or through clear and deliberate speech in the case of television or radio advertisements.(c) A Competitive Supplier' shall print in a prominent position in all written marketing materials describing Generation Service, including newspaper, magazine, and other written advertisements; direct mail materials; and electronically-published advertising including Internet materials, that a Retail Customer may obtain an information disclosure label upon request. Where Generation Service is marketed in non-print media, the marketing materials shall indicate that the Retail Customer may obtain an information disclosure label upon request.(d) A Competitive Supplier shall be allowed to advertise the percentage of its resource portfolio that is generated by employers, that operate under collective bargaining agreements or that operate with employees hired as replacements during the course of a labor dispute when said percentage is derived from known resources as determined in accordance with 220 CMR 11.06(2)(d)1..(e) A Competitive Supplier shall be allowed to advertise the percentage of its resource portfolio that connotes or signifies to the ratepayer the relative environmentally beneficial effects of the power or energy sold by said Competitive Supplier under the following circumstance: 1. The percentage is derived from known resources as determined in accordance with 220 CMR 11.06(2)(d)1.; and2. The percentage exceeds percentages mandated under any rules promulgated by the Department of Energy Resources pertaining to a renewable portfolio standard; and3. The percentage exceeds levels required for compliance with any other regulatory requirements such as a generation performance standard.(7) Enforcement. Dissemination of inaccurate information, or failure to comply with the Department's regulations on information disclosure, may result in suspension, revocation, or non-renewal of a Competitive Supplier's license pursuant to 220 CMR 11.05(2)(e).