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Enron Mail |
Richard:
This is a long memo - don't worry about reading it all. However, at the en= d you will find the Maine Disclosure Label. I need to pick your brain on w= ho would be the best person to track down the "per kWh" information that is= on this and the Mass label. Thanks. Heather ---------------------- Forwarded by Heather Mathis/HOU/EES on 08/09/2001 03= :36 PM --------------------------- "SANDY COFER" <SCOFER@LLGM.COM< on 08/08/2001 06:13:28 PM To:=09SARah.dietrich@enron.com cc:=09hmathis@enron.com, MARIANNE.castano@enron.com, "JOHN KLAUBERG" <JKLAU= BER@LLGM.COM<, "JOHN MAAS" <JMAAS@LLGM.COM<=20 Subject:=09ME Direct Mini Form Sarah -- Attached for your review are (i) a clean version of ME direct mini form; (i= i) a redline of the ME direct mini form, marked to show changes against the= TX form provided in your 7.26.01 email; (iii) a terms of service document;= (iii) a disclosure label; and (iv) a customer authorization statement. The following is a brief explanation of changes and a few provisions of the= Maine Rules we wanted to draw to your attention: Direct Mini Form * As discussed, we've updated the term under Section 2.1 (and under "Durati= on and Kind of Contract" in the terms of service summary) to reflect the cu= stomer's option of a 24-month, 36-month, 48-month or 60-month term. * In Maine, certain consumer protection provisions (such as customer rescis= sion rights and provision of the disclosure label and terms of service summ= ary) apply to residential and small commercial customers (less than 20 kW o= f demand) only. As it is our understanding that the direct marketing campa= ign will target small commercial customers, we have drafted the direct mini= form, terms of service, and disclosure label with that customer class in m= ind. * We've left the requirement of concurrent execution of the customer author= ization form in Section 2.1(i) and Section 3 unchanged although the Rules o= nly require that this document be obtained prior to initiating service . Se= e WCMR 65-407-305(4)(D)(2)(a). As the goal of the direct marketing campaig= n is to simultaneously obtain an executed agreement and customer authorizat= ion form, we believe this is a clean way to manage the administration of do= cuments and avoid confusion. * On a similar note, and as discussed in connection with the MA direct mini= form, we've drafted the five day customer rescission period in Section 3 t= o run from the execution of the agreement, with a notation that the terms o= f service and disclosure label are provided concurrently with the agreement= . The Rules, however, provide that the rescission period runs five busines= s days from the customer's receipt of the terms and service summary which m= ust be received by the customer 30 days following execution of the agreemen= t. (i.e. the MPUC envisions (i) the execution of the contract, (ii) a time= passage of up to 30 days; (iii) the delivery of the terms of service summa= ry and disclosure label to the customer, followed by (iv) a five business d= ay right of rescission running from that date of the customer's receipt of = the terms of service and disclosure label) See WCMR 65-407-305(4)(C). As d= iscussed in connection with the TX direct mini form, we believe many commis= sions, including the PUCT and MPUC, envision the terms of service document = to behave and function more in the manner of how we would typically conside= r a contract to behave and function. Our thought process in drafting the r= escission period in the ME form to run from the execution of the agreement = is provide a clean way for EESI to manage the administration of the documen= ts due to the unique mechanics of the transaction (the simultaneous deliver= y of the agreement, terms of service, disclosure label and customer authori= zation statement by the sales rep to the customer followed by the immediate= execution of the agreement and customer authorization statement). We want= ed to point out that as drafted, however, this provision is technically inc= onsistent with the Rules. * To provide uniformity across forms, we have not changed the language und= er 2.6 Security which provides that EESI may request security " as provided= in the Rules" We wanted to point out, however, that the ME Rules do not = restrict the amount of deposits required by competitive electricity provide= rs (CEPs). * We've revised Section 3 "Your Signature and Notices" and the Representati= ons and Warranties section under the GT&Cs to model the ME Rules by deletin= g references to "Your Rights as a Customer Statement" (a document unique to= Texas) and changed references to "electricity facts label" to "disclosure = label" (ME's description of the label, as opposed to TX's). * The ME Rules require a 30 day notice to the customer in the event of term= ination due to the customer's default. See WCMR 65-407-305(4)(G)(1). We'v= e updated the "Default and Early Termination" section of the GT&Cs to refle= ct this requirement. * By obtaining a license as a CEP in ME, EESI thereby agrees to (i) submit = to jurisdiction in the courts of the state of Maine; (ii) that all legal pr= oceedings relating to disputes will be maintained in ME courts or before ME= administrative agencies; and (iii) that all contracts for generation servi= ce in ME with a demand of 100 kW or less will be interpreted according to M= E law. See WCMR 65-407-305(2)(B)(8) We've updated the governing law provi= sion to reflect Maine jurisdiction. Terms of Service As discussed, the Maine Rules were modeled after the Massachusetts Rules an= d many items, such as the terms of service summary and disclosure label, ar= e practically identical in format and content. As such, we've modeled the = ME terms of service summary and disclosure label after the documents provid= ed in MA, with a few notable exceptions: * The ME Rules require a listing in the terms of service summary of "condit= ions under which a credit reporting agency is contacted for an applicant's = credit history or under which the Competitive Supplier reports the customer= 's payment history to a credit reporting agency". See WCMR 65-407-306(2)(D= )(2)(d). Under "Credit Information", we've provided general information th= at the agreement will not be effective unless and until the credit standard= s established by EESI are met, that it is EESI's practice to perform credit= checks on all applicants whereby EESI may contact a credit reporting agenc= y to obtain the customer's credit history, and that in the event of nonpaym= ent under the Agreement, it is possible that EESI would report such nonpaym= ent to a credit reporting agency. * The Rules do not restrict the amounts of deposits nor is the CEP required= to pay any interest on deposit in ME. The terms of service, however, requ= ires the CEP to notify the customer as to deposit requirements and interest= on deposits (most likely as a measure for the customer to compare services= offered by competing CEPs). See WCMR 65-407-306(2)(D)(2)(e). As currently= drafted, the terms of service provides that security deposits may be requi= red and interest will not be paid to the customer if such a deposit is obta= ined. * The Rules require that the terms of service, if applicable, notify the cu= stomer of the CEPs ability to assign the agreement to another CEP without t= he customer's consent. See WCMR 65-407-306(2)(D)(2)(m). We've provided und= er "Assignment" that EESI will notify the customer in the event of an assig= nment which in any way affects the customer's rights and obligations under = the agreement. * The Rules require the terms of service document to conspicuously disclose= the customer's right of rescission and how it may be exercised. See WCMR 6= 5-407-306(2)(D)(2)(i). We've drafted the "Information on Rescission Rights= " section with a box around it to satisfy the requirement that the disclosu= re be conspicuous. * Please note that the Rules require the terms of service to list, and we h= ave left brackets around, the toll free number and hours that a customer ca= n contact the CEP for customer questions and complaints. See WCMR 65-407-30= 6(2)(D)(2)(j) Disclosure Label * As the ME label is almost identical to the MA disclosure label, we've mad= e similar changes to convert the label to a fixed price rather than variabl= e price product.. Heather Mathis is coordinating with the commercial team t= o verify the accuracy of the data (esp. the avg price per kWh of 5.08 cents= ). As discussed with Heather, please note that EESI must file all new prod= uct labels with the MPUC. See WCMR 65-407-306(3)(D). The Rules are silent = as to the timing of this filing and it is unclear whether the filing must b= e made prior to or concurrently with the distribution of the new label to c= ustomers. Please let me know if you would like us to seek clarification on= this point. Customer Authorization Statement The Rules regarding the content of the customer authorization statement are= identical to the MA Rules and, as such, we have modeled the ME form after = MA. The only change is the correction of the rule referenced in the openin= g sentence of the letter. Although, as we may have discussed, the referenc= e to such rule is not a requirement and is therefore probably not essential= in either the MA or ME forms, we've left the reference in for uniformity's= sake. If you have any questions about the attached or would like to discuss furth= er, please give me a call. SC Sandy Cofer LeBoeuf, Lamb, Greene & MacRae, LLP 1000 Louisiana, Suite 1400 Houston, Texas 77002 direct dial: 713.287.2002 fax: 713.287.2100 cell: 713.416.7486 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D This e-mail, including attachments, contains information that is confidenti= al and may be protected by the attorney/client or other privileges. This e= -mail, including attachments, constitutes non-public information intended t= o be conveyed only to the designated recipient(s). If you are not an inten= ded recipient, please delete this e-mail, including attachments, and notify= me. The unauthorized use, dissemination, distribution or reproduction of = this e-mail, including attachments, is prohibited and may be unlawful. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D - CLEAN ME DIRECT MINI FORM.doc=20 - RED ME DIRECT MINI FORM.doc=20 - ME terms of service.doc=20 - ME disclosure label.doc=20 - ME customer authorization statement.doc=20
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