First Regular Session
Sixty-first General Assembly
LLS NO. 970482.01 DHG
HOUSE BILL 971216
STATE OF COLORADO
BY REPRESENTATIVE McPherson
BUSINESS AFFAIRS & LABOR
A BILL FOR AN ACT
CONCERNING A PROHIBITION ON ANTICOMPETITIVE PROVISIONS
IN CONTRACTS FOR RESIDENTIAL ELECTRIC SERVICE.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Makes it unlawful for suppliers of residential electric service to require, as a condition of initiating or continuing the provision of such service to a customer, that the customer agree not to purchase electricity from another supplier or to pay any penalty or premium upon purchasing electricity from another supplier. Declares such contract provisions void as contrary to public policy.
Applies both prospectively and, to the extent legally
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Article 3 of title 40, Colorado Revised Statutes, 1993 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:
403107.5. Exclusion of other companies from territory anticompetitive clauses void. (1) NO SUPPLIER OF ELECTRIC SERVICE, IN A CONTRACT FOR THE PROVISION OF ELECTRIC SERVICE TO A RESIDENTIAL CUSTOMER, SHALL ATTEMPT TO NULLIFY OR LIMIT SUCH CUSTOMER'S RIGHT TO CHOOSE A DIFFERENT SUPPLIER IN THE FUTURE, WHETHER BY IMPOSITION OF A MONETARY PENALTY OR OTHERWISE AND REGARDLESS OF WHETHER THE CONTRACT IS FOR THE INITIAL PROVISION OF SERVICE OR FOR THE RENEWAL OF SERVICE UNDER A CONTRACT THAT IS DUE TO EXPIRE.
(2) ANY CONTRACT PROVISION THAT VIOLATES SUBSECTION (1) OF THIS SECTION IS HEREBY DECLARED CONTRARY TO PUBLIC POLICY AND IS VOID AND UNENFORCEABLE.
(3) (a) THIS SECTION SHALL APPLY TO CONTRACTS EXECUTED ON OR AFTER JULY 1, 1997.
(b) THIS SECTION SHALL APPLY TO CONTRACTS EXECUTED BEFORE JULY 1, 1997.
(4) Severability. IF ANY PROVISION OF THIS SECTION OR THE APPLICATION OF ANY SUCH PROVISION TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID, SUCH INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS SECTION THAT CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION, AND TO THIS END THE PROVISIONS OF THIS SECTION ARE DECLARED TO BE SEVERABLE.
SECTION 2. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.