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State Senate OKs consumer protection measures on home insurance, used cars, electric power
State Senate OKs consumer protection measures on home insurance, used cars, electric power
State Senate OKs consumer protection measures on home insurance, used cars, electric power

Published on: 04/28/2024

Description

BOSTON — Massachusetts lawmakers worked separately and together Thursday as both branches convened in formal sessions, passing money bills that included funding for the now-controversial emergency assistance program and a bond bill supporting municipal infrastructure projects.

Separately, the Senate passed three bills designed to protect Massachusetts consumers. These will now be sent to the House of Representatives for consideration. If both branches pass the measures, they would be placed on the governor’s desk for her signature.

One measure mandates home insurance companies cover the cost of cleanup from unintentional home heating oil spills, both inside the affected structure and on property that surrounds it.

The measure, originally filed by former Sen. Anne Gobi, D-Spencer and then championed by Sens. Michael Moore, D-Millbury, and Becca Rausch, D-Needham, would mandate insurance companies offer protections for unintentional releases of heating oil.

Of the 650,000 dwellings using oil to heat their homes, only 15% of homeowners have coverage, said Sen. Paul Feeney, D-Foxborough. Cleanup costs can range in the hundreds of thousands of dollars. Senators dubbed the bill as both a consumer and environmental protection measure.

A second bill passed by the Senate closes loopholes in the state’s Lemon Aid laws pertaining to the purchase of new and used cars. The measure would extend protections currently in force for purchases of new cars to cover purchases of preowned vehicles.

The revisions would give buyers of used cars seven days from the date of delivery to have their vehicle inspected and demand a refund if it fails. Currently, the law sets the time a buyer can demand a refund seven days from the date of sale. Buyers financing a used car have to be notified if they are in arrears and of any pending repossession moves.

The revisions also extents the vehicle warranty to 150,000 miles, a 25,000-mile increase.

A third measure would shut down the third-party residential electrical supply market. The measure would ban third-party electricity suppliers — suppliers that are not National Grid or Eversource — from directly soliciting residents to sign on for electricity with them on an individual basis.

Massachusetts residents are currently connected to the default supplier in their region or can opt to join a municipal aggregation program and purchase their electricity directly from their municipal government.

The bill would not interfere with the municipal aggregation programs — just those suppliers that solicit consumers on an individual basis.

The suppliers were described as “predatory,” working in economic justice neighborhoods, targeting senior citizens, low-income residents and immigrants who lacked a command of English, by the state Attorney General’s office. The state contends the suppliers target and sign up vulnerable residents, promise them huge savings and surprise them with huge bills.

“There will be no new independent customers,” said Benny Meshoulam, a senior adviser for climate and energy at the Massachusetts Attorney General's Office. Suppliers, Meshoulam said, tout their measures to fight climate change yet redirect funds into their pockets that consumers could use to install real climate-change mitigating measures such as solar panels, weatherization of their homes, heat pumps and electric vehicle charges.

In a prepared statement, Attorney General Andrea Campbell said, “My office has reported that Massachusetts residents have lost over $577 million in competitive electric supply contracts in the last eight years. And despite its claims, this industry has come up short in delivering meaningful contributions in Massachusetts's fight against climate change.

“I am thrilled that the Senate today passed (the bill), which would ban the competitive electric supply industry from signing up new residential customers,” Campbell said.

In Massachusetts, more than 400,000 households have opted to sign on with an independent supplier and another million have joined municipal aggregate programs, according to an industry release. Suppliers purchase energy on the open market with no restrictions on its origins and then resell it to individual consumers.

Customers, according to industry documents, can lock in rates for longer contract periods, can opt for clean energy only and even sign on to off-peak pricing programs that lower costs when demand for energy is lowest, at night and on weekends.

Christopher Ercoli, president and CEO of the Retail Energy Advancement League, decried the measure to ban consumers from shopping for independent providers and leaving them “stuck paying higher rates to their utilities. Customers that shopped last year saved significantly on their electric bills.”

Ercoli suggested that the state look to strengthen regulation, oversight and consumer protections rather than ban them from seeking better rates.

“This bill unjustly strips these residents of their ability to find better rates, 100% renewable energy offerings or other electric products that align with their economic and environmental goals," Ercoli said, adding that Rep. Tackey Chan, D-Quincy, has filed a measure in the House designed to reform and regulate the market.

Reforms include a new office for oversight of the market, allowing customers the ability to switch in mid-billing cycle, generating notices for automatic renewals that give residents time to consider their choices, and enhancing transparency and enforcement measures.

Massachusetts consumers have been able to shop for the supply portion of their electric bill. The commonwealth-managed website www.EnergySwitchMA.gov lists available offers so customers can compare and find a supplier that aligns with their economic and environmental goals.

News Source : https://www.telegram.com/story/news/state/2024/04/26/massachusetts-senate-oks-consumer-protection-measures/73456367007/

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