November 20, 2015, Volume 4, Issue 137

11/20/2015

Update: As part of its investigation into the marketing practices of CRES providers, the Commission issued its “fixed-means-fixed” guidelines. Under these guidelines, CRES providers may not include a pass-through clause in a contract labeled as “fixed rate.” While pass-through provisions are still permitted, they must be labeled as variable or introductory. Regulatory-out clauses are also permitted, but they must be marked in “plain language.” Finally, the Commission stated that “CRES providers shall have until January 1, 2016 to bring products being marketed into compliance with the” guidelines.

Top