1Amending Titles 53 (Municipalities Generally) and 66 (Public
2Utilities) of the Pennsylvania Consolidated Statutes,
3providing for municipal aggregation of electric generation
4supply.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Part V of Title 53 of the Pennsylvania
8Consolidated Statutes is amended by adding a chapter to read:

9CHAPTER 63

10MUNICIPAL AGGREGATION OF

11ELECTRIC GENERATION SUPPLY

12Sec.

136301. Legislative purpose.

146302. Definitions.

156303. Grant of authority.

166304. Intergovernmental cooperation.

176305. Limitations.

18§ 6301. Legislative purpose.

19The purpose of this chapter is to grant legislative authority

1for any municipality to act as a municipal aggregator of
2electricity under 66 Pa.C.S. Ch. 28 (relating to restructuring
3of electric utility industry) and to provide municipal
4aggregation of electric generation supply to consumers of
5electricity within its municipal boundaries.

6§ 6302. Definitions.

7The following words and phrases when used in this chapter
8shall have the meanings given to them in this section unless the
9context clearly indicates otherwise:

10"Commission." The Pennsylvania Public Utility Commission.

11"Consumer." As defined in 66 Pa.C.S. § 2803 (relating to
12definitions).

13"Default service plan." As defined in 66 Pa.C.S. § 2803
14(relating to definitions).

15"Electric generation supplier." As defined in 66 Pa.C.S.
16§ 2803 (relating to definitions).

17"Municipal aggregation program." As defined in 66 Pa.C.S.
18§ 2803 (relating to definitions).

19"Municipal aggregator of electricity." As defined in 66
20Pa.C.S. § 2803 (relating to definitions).

21"Municipality." As defined in 66 Pa.C.S. § 2803 (relating to
22definitions).

23"Price-to-compare." As defined in 66 Pa.C.S. § 2803
24(relating to definitions).

25"Small commercial customer." As defined in 66 Pa.C.S. § 2803
26(relating to definitions).

27§ 6303. Grant of authority.

28(a) Authority.--Except as provided under subsection (b) and
29notwithstanding any law, a municipality is authorized to:

30(1) Be a municipal aggregator of electricity and provide

1opt-in or opt-out municipal aggregation of electric
2generation supply.

3(2) Be licensed by the commission as an electric
4generation supplier.

5(b) Exception.--A municipality may only act as a municipal
6aggregator of electricity on behalf of consumers within its
7geographic boundaries.

8§ 6304. Intergovernmental cooperation.

9Any two or more municipalities may cooperate and exercise the
10authority to jointly act as a municipal aggregator of electric
11generation supply in accordance with Subpart D of Part III
12(relating to area government and intergovernmental cooperation).

13§ 6305. Limitations.

14The authority granted to municipalities under this chapter
15shall be limited by 66 Pa.C.S. § 2806.3 (relating to municipal
16aggregation of electric generation supply) and any regulations
17promulgated under 66 Pa.C.S. § 2806.3 by the commission.

18Section 2. Section 2803 of Title 66 is amended to read:

19§ 2803. Definitions.

20The following words and phrases when used in this chapter
21shall have the meanings given to them in this section unless the
22context clearly indicates otherwise:

23"Aggregator" or "market aggregator." An entity, licensed by
24the commission, that purchases electric energy and takes title
25to electric energy as an intermediary for sale to retail
26customers. The term shall not include a municipal aggregator of 
27electricity.

28"Bilateral contract." An agreement, as approved by the
29commission, reached by two parties, each acting in its own
30independent self-interest, as a result of negotiations free of

1undue influence, duress or favoritism, in which the electric
2energy supplier agrees to sell and the electric distribution
3company agrees to buy a quantity of electric energy at a
4specified price for a specified period of time under terms
5agreed to by both parties, and which follows a standard industry
6template widely accepted in the industry or variations thereto
7accepted by the parties. Standard industry templates may include
8the EEI Master Agreement for physical energy purchases and sales
9and the ISDA Master Agreement for financial energy purchases and
10sales.

11"Broker" or "marketer." An entity, licensed by the
12commission, that acts as an agent or intermediary in the sale
13and purchase of electric energy but that does not take title to
14electric energy. The term shall include a municipal aggregator 
15of electricity.

16"Competitive transition charge." A nonbypassable charge
17applied to the bill of every customer accessing the transmission
18or distribution network which (charge) is designed to recover an
19electric utility's transition or stranded costs as determined by
20the commission under sections 2804 (relating to standards for
21restructuring of electric industry) and 2808 (relating to
22competitive transition charge).

23"Consumer." A retail electric customer.

24"Customer." A retail electric customer.

25"Default service plan." A plan for competitive procurement
26of default service supply approved by the commission under
27section 2807(e)(3.6) (relating to duties of electric
28distribution companies).

29"Default service provider." An electric distribution company
30within its certified service territory or an alternative

1supplier approved by the commission that provides generation
2service to retail electric customers who:

3(1) contract for electric power, including energy and
4capacity, and the chosen electric generation supplier does
5not supply the service; or

6(2) do not choose an alternative electric generation
7supplier.

8"Direct access." The right of electric generation suppliers
9and end-use customers to utilize and interconnect with the
10electric transmission and distribution system on a
11nondiscriminatory basis at rates, terms and conditions of
12service comparable to the transmission and distribution
13companies' own use of the system to transport electricity from
14any generator of electricity to any end-use customer.

15"Electric distribution company." The public utility
16providing facilities for the jurisdictional transmission and
17distribution of electricity to retail customers, except building
18or facility owners/operators that manage the internal
19distribution system serving such building or facility and that
20supply electric power and other related electric power services
21to occupants of the building or facility.

22"Electric generation supplier" or "electricity supplier." A
23person or corporation, including municipal corporations which
24choose to provide service outside their municipal limits except
25to the extent provided prior to the effective date of this
26chapter, brokers and marketers, aggregators, municipal 
27aggregators of electricity implementing municipal aggregation 
28programs or any other entities, that sells to end-use customers
29electricity or related services utilizing the jurisdictional
30transmission or distribution facilities of an electric

1distribution company or that purchases, brokers, arranges or
2markets electricity or related services for sale to end-use
3customers utilizing the jurisdictional transmission and
4distribution facilities of an electric distribution company. The
5term excludes building or facility owner/operators that manage
6the internal distribution system serving such building or
7facility and that supply electric power and other related power
8services to occupants of the building or facility. The term
9excludes electric cooperative corporations except as provided in
1015 Pa.C.S. Ch. 74 (relating to generation choice for customers
11of electric cooperatives).

12"End-use customer." A retail electric customer.

13"Municipal aggregation contract." A written agreement
14between a municipal aggregator of electricity and an electric
15generation supplier that includes:

16(1) Beginning and ending dates of the contract period.

17(2) Electric generation rate for the contract period.

18(3) Opt-out and opt-in contract procedures.

19(4) Customer complaint processes.

20(5) Contact information for inquiries related to
21municipal aggregation.

22"Municipal aggregation program." A program providing for a
23municipality acting as a broker or marketer on behalf of the
24eligible consumers within the municipality's geographic
25boundaries not excluded by section 2806.3 (relating to municipal
26aggregation of electric generation supply). A program may be
27either:

28(1) an opt-out program, which shall include every
29eligible consumer who does not choose to be excluded from the
30program; or

1(2) an opt-in program, which shall include only those
2eligible consumers who choose to participate in the program.

3"Municipal aggregator of electricity." A municipality,
4licensed by the commission, that acts as a broker or marketer on
5behalf of the eligible consumers within the municipality's
6geographic boundaries under municipal aggregation.

7"Municipality." A county, city, township, town or borough.
8The term shall include a municipality subject to the former act
9of April 13, 1972 (P.L.184, No.62), known as the Home Rule
10Charter and Optional Plans Law.

11"Price-to-compare." A line item that appears on a retail 
12customer's monthly bill for default service. The price-to-
13compare is equal to the sum of all unbundled generation-related 
14and transmission-related charges to a default service customer 
15for that month of service. The price-to-compare is a customer-
16specific price for a given month of service reflecting all cost 
17components that the customer avoids when choosing to take 
18electric generation service from an electric generation 
19supplier.

20"Reliability." Includes adequacy and security. As used in
21this definition, "adequacy" means the provision of sufficient
22generation, transmission and distribution capacity so as to
23supply the aggregate electric power and energy requirements of
24consumers, taking into account scheduled and unscheduled outages
25of system facilities; and "security" means designing,
26maintaining and operating a system so that it can handle
27emergencies safely while continuing to operate.

28"Renewable resource." Includes technologies such as solar
29photovoltaic energy, solar thermal energy, wind power, low-head
30hydropower, geothermal energy, landfill and mine-based methane

1gas, energy from waste and sustainable biomass energy.

2"Retail customer." A retail electric customer.

3"Retail electric customer." A direct purchaser of electric
4power. The term excludes an occupant of a building or facility
5where the owners/operators manage the internal distribution
6system serving such building or facility and supply electric
7power and other related power services to occupants of the
8building or facility; where such owners/operators are direct
9purchasers of electric power; and where the occupants are not
10direct purchasers.

11"Small commercial customer." A retail electric customer that 
12receives electric service under a small commercial, small 
13industrial or small business rate classification and whose 
14maximum registered peak load was less than 50 kW within the last 
1512 months.

16"Transition or stranded costs." An electric utility's known
17and measurable net electric generation-related costs, determined
18on a net present value basis over the life of the asset or
19liability as part of its restructuring plan, which traditionally
20would be recoverable under a regulated environment but which may
21not be recoverable in a competitive electric generation market
22and which the commission determines will remain following
23mitigation by the electric utility. This term includes:

24(1) Regulatory assets and other deferred charges
25typically recoverable under current regulatory practice, the
26unfunded portion of the utility's projected nuclear
27generating plant decommissioning costs and cost obligations
28under contracts with nonutility generating projects which
29have received a commission order, the recoverability of which
30shall be determined under section 2808(c)(1) (relating to

1competitive transition charge).

2(2) Prudently incurred costs related to cancellation,
3buyout, buydown or renegotiation of nonutility generating
4projects consistent with section 527 (relating to
5cogeneration rules and regulations), the recoverability of
6which shall be determined pursuant to section 2808(c)(2).

7(3) The following costs, the recoverability of which
8shall be determined pursuant to section 2808(c)(3):

9(i) Net plant investments and costs attributable to
10the utility's existing generation plants and facilities.

11(ii) The utility's disposal of spent nuclear fuel.

12(iii) The utility's long-term purchase power
13commitments other than the costs defined in paragraphs
14(1) and (2).

15(iv) Retirement costs attributable to the utility's
16existing generating plants other than the costs defined
17in paragraph (1).

18(v) Other transition costs of the utility, including
19costs of employee severance, retraining, early
20retirement, outplacement and related expenses, at
21reasonable levels, for employees who are affected by
22changes that occur as a result of the restructuring of
23the electric industry occasioned by this chapter.

24The term includes any costs attributable to physical plants no
25longer used and useful because of the transition to retail
26competition. The term excludes any amounts previously disallowed
27by the commission as imprudently incurred. To the extent that
28the recoverability of amounts that are sought to be included as
29transition or stranded costs are subject to appellate review as
30of the time of the commission determination, any determination

1to include such costs shall be reversed to the extent required
2by the results of that appellate review.

3"Transmission and distribution costs." All costs directly or
4indirectly incurred to provide transmission and distribution
5services to retail electric customers. This includes the return
6of and return on facilities and other capital investments
7necessary to provide transmission and distribution services and
8associated operating expenses, including applicable taxes.

9"Universal service and energy conservation." Policies,
10protections and services that help low-income customers to
11maintain electric service. The term includes customer assistance
12programs, termination of service protection and policies and
13services that help low-income customers to reduce or manage
14energy consumption in a cost-effective manner, such as the low-
15income usage reduction programs, application of renewable
16resources and consumer education.

17Section 3. Title 66 is amended by adding a section to read:

18§ 2806.3. Municipal aggregation of electric generation supply.

19(a) Licensing.--The commission, in accordance with its
20regulations, within 30 days following receipt of an application,
21may issue a license to a municipality as an electric generation
22supplier to act as a municipal aggregator of electric generation
23supply service for eligible consumers within the municipality's
24geographic boundaries. A municipal aggregator of electricity
25under this section shall not be considered a public utility or a
26utility engaging in the wholesale purchase and resale of
27electricity, and the provision of municipal aggregation shall
28not be considered a wholesale utility transaction.

29(b) Ordinance required.--Prior to applying for an electric
30generation supplier license with the commission, the governing

1body of the municipality shall adopt an ordinance authorizing
2the municipality to apply for an electric generation supplier
3license to serve as a municipal aggregator of electricity,
4indicate whether the municipal aggregation shall be an opt-in or
5opt-out program and shall identify municipal officials by either
6title of office or name, or their duly appointed designees,
7authorized to execute documents with the commission on behalf of
8the municipality. A municipal aggregator of electricity shall
9provide reasonable public notice of municipal consideration of
10any ordinance authorizing a municipal aggregation program, which
11shall include newspaper publication on a monthly basis beginning
12at least 90 days prior to the adoption of an ordinance
13authorizing an opt-out program.

14(c) Municipal aggregation contracts.--

15(1) A municipal aggregator of electricity may negotiate 
16and enter into a contract for electric generation supply 
17services with an electric generation supplier. A municipal 
18aggregator of electricity shall use a competitive procurement 
19or request-for proposal process to select the electric 
20generation supplier from the lowest responsible qualified 
21bidder, regardless of the generation fuel type, location, 
22technology or new or existing status of the generation that 
23the electric generation supplier will use to supply the 
24municipal aggregation. An executed municipal aggregation 
25contract shall not go into effect prior to filing with the 
26commission, and a copy of the filed contract shall be 
27provided to the electric distribution company whose service 
28territory includes the municipal aggregator. Each contract 
29shall include:

30(i) provisions for the timing of the distribution of

1customer lists by the electric distribution company and
2customer notices consistent with this section;

3(ii) a consumer education plan with appropriate
4consumer education materials to inform consumers about
5the existence of the municipal aggregation and the
6highlights of the program, which shall be deployed
7concurrently with the distribution of opt-in or opt-out
8notices, as applicable; and

9(iii) a copy of the sample opt-in or opt-out notice
10to be sent to consumers, which shall provide the
11identification of the selected electric generation
12supplier.

13(2) Any contract between a municipality and an electric 
14generation supplier executed under this section shall clearly 
15indicate whether it is for an opt-in or opt-out municipal 
16aggregation and the price that the contracted electric 
17generation supplier will charge customers for electric 
18generation supply, as well as the time period of the 
19contract. A contract executed under this section may not 
20exceed three years. If the price is a fixed rate, the price 
21shall be expressed in cents per kilowatt hour. If the 
22contract provides for a percentage off of the default service 
23rate or any other type of pricing arrangement, an 
24understandable description of the amount of the percentage 
25discount or other pricing arrangement and how the rate may 
26change shall be provided. If the electric generation supplier 
27will charge different rates to different rate classes within 
28the municipality, the applicable rate to consumers within 
29each rate class shall be described.

30(d) Opt-out programs; notice and opt-out procedures.--

1(1) No consumer may be bound by a contract between a 
2municipal aggregator of electricity and an electric 
3generation supplier in opt-out municipal aggregation. 
4Customers receiving electric generation service under an opt-
5out municipal aggregation program may switch to an electric 
6generation supplier other than the supplier to the municipal 
7aggregation program at any time without penalty, cancellation 
8fees or other restrictions, provided that the switch shall 
9take place pursuant to commission-approved switching 
10procedures.

11(2) Any contract between a municipality and an electric
12generation supplier executed under this section shall contain
13procedures for addressing consumer disputes and complaints
14related to supply services received pursuant to a municipal
15aggregation program. The procedures shall be made available
16to consumers, at least annually, in a clear and easily
17understandable format. After a municipality executes a
18contract for electric generation services, but prior to
19including a consumer's electric account or accounts in an
20opt-out municipal aggregation, a municipal aggregator of
21electricity shall provide each eligible consumer with written
22notice that the consumer's account will be automatically
23included in the municipal aggregation unless the customer
24affirmatively opts out of the municipal aggregation. The
25notice, written in plain language, shall include all of the
26following:

27(i) A description of the ordinance adopted by the 
28municipality authorizing it to apply for a license from 
29the commission, the competitive procurement process under 
30which offers for electric generation supply were 

1solicited and a location where, during regular business 
2hours, consumers may view the ordinance and executed 
3contract free of charge or obtain a copy for a reasonable 
4fee.

5(ii) Disclosure of the price that the contracted 
6electric generation supplier will charge customers for 
7electric generation service. If the price is a fixed 
8rate, the municipal aggregator of electricity shall 
9express the price in cents per kilowatt hour and list the 
10most recent applicable price-to-compare of the default 
11service provider in whose service territory the 
12municipality is located. If the contract provides for a 
13percentage off of the default service rate or any other 
14type of pricing arrangement, an understandable 
15description of the amount of the percentage discount or 
16other pricing arrangement and how the rate may change 
17shall be provided. If the electric generation supplier 
18charges different rates to different rate classes within 
19the municipality, the municipal aggregator of electricity 
20shall describe the applicable rate to consumers within 
21each rate class and the associated price-to-compare.

22(iii) An itemized list and explanation of all fees 
23and charges that are not incorporated into the rates 
24charged for electric generation service that the electric 
25generation supplier will charge to the consumer for 
26participating in the municipal aggregation, including any 
27surcharges that may be assessed.

28(iv) Disclosure of the estimated service 
29commencement date and notice that the consumer may opt 
30out of the municipal aggregation program at any time.

1(v) A statement informing consumers that if they 
2choose to opt out of the municipal aggregation they will 
3be served by the default service offer established under 
4section 2807(e) (relating to duties of electric 
5distribution companies) until the consumer chooses an 
6alternative electric generation supplier or chooses to 
7participate in a subsequent municipal aggregation.

8(vi) A statement informing consumers that if they 
9switch back to the default service provider they may not 
10be served under the same rates, terms and conditions that 
11apply to other customers within the municipal 
12aggregation.

13(vii) Disclosure of any credit, collection and 
14deposit policies and requirements.

15(viii) Disclosure of any limitations or conditions 
16on customer acceptance into the municipal aggregation.

17(ix) A description of the process for consumers to 
18opt out of the municipal aggregation. The process shall 
19include provisions for consumers to return a postcard or 
20similar notice to the municipal aggregator of electricity 
21or its agent. The process may include other opt-out 
22methods, such as telephonic or Internet notice, if these 
23alternative methods allow for verification of a 
24consumer's election to opt out of the municipal 
25aggregation.

26(x) A local or toll-free telephone number, with the 
27available calling hours, that consumers may call with 
28questions regarding the formation or operation of the 
29municipal aggregation.

30(e) Opt-in programs; notice and opt-in procedures.--

1(1) No consumer may be bound by a contract between a 
2municipal aggregator and an electric generation supplier in 
3opt-in municipal aggregation until the consumer has been 
4provided an opt-in notice required under this subsection and 
5the expiration of any waiting period for a consumer to cancel 
6the pending change to the electric generation supplier 
7following written confirmation by the electric distribution 
8company as prescribed by regulation. Customers receiving 
9electric generation service under an opt-in municipal 
10aggregation program may switch to an electric generation 
11supplier other than the supplier to the municipal aggregation 
12program at any time without penalty, cancellation fees or 
13other restrictions, provided that the switch shall take place 
14pursuant to commission-approved switching procedures.

15(2) After a municipality executes a contract for 
16electric generation services, but prior to including a 
17consumer's electric account or accounts in an opt-in 
18municipal aggregation, a municipal aggregator of electricity 
19shall provide each eligible consumer with written notice that 
20the customer may participate in the municipal aggregation. 
21The notice, written in plain language, shall include all of 
22the information required under subsection (d)(2)(i), (ii), 
23(iii), (v), (vi), (vii), (ix) and (x) and the following 
24information:

25(i) A statement informing consumers that if they do
26not choose to opt in to the municipal aggregation they
27will be served by the default service offer established
28under section 2807(e) until the consumer chooses an
29alternative electric generation supplier or chooses to
30participate in a subsequent municipal aggregation.

1(ii) A description of the process for consumers to 
2opt in to the municipal aggregation. The process shall 
3include provisions for consumers to return a postcard or 
4similar notice to the municipal aggregator of electricity 
5or its agent. The process may include other opt-in 
6methods, such as telephonic or Internet notice, if these 
7alternative methods allow for verification of a 
8consumer's election to opt in to the municipal 
9aggregation. The time period for a customer to choose to 
10opt in to the municipal aggregation shall be at least 30 
11days from the date of the mailing of the written notice. 
12If a consumer's return postcard or notice is postmarked 
13before the opt-in deadline has elapsed, the consumer 
14shall be deemed to have opted in to the municipal 
15aggregation.

16(f) Additional requirements; provision of customer
17information.--

18(1) The following consumers shall be excluded from
19enrollment in a municipal aggregation:

20(i) For opt-out municipal aggregation only, a
21consumer that has opted out of the municipal aggregation
22under subsection (d) or that has a special contract or
23agreement with an electric distribution company or a
24consumer under an existing contract with a licensed
25electric generation supplier other than a consumer under
26a municipal aggregation contract with the current
27electric generation supplier of the municipal
28aggregation.

29(ii) A consumer that is not located within the
30geographic boundaries of the municipal aggregator of

1electricity.

2(iii) A consumer other than a residential or small
3commercial customer.

4(iv) A consumer that is enrolled in an electric
5distribution company's customer assistance program that
6does not include any electric generation supplier charges
7in the calculation of the customer assistance program
8benefit.

9(v) End-use consumers served or authorized to be
10served by an electric cooperative or loads served by a
11municipality that owns and operates its own electric
12distribution system.

13(2) No earlier than three months and no later than 30
14days prior to the end of the term of a municipal aggregation
15contract and commencement of a new municipal aggregation
16contract or contract renewal term, a municipal aggregator of
17electricity or the electric generation supplier to the
18municipal aggregation shall provide notice to all consumers
19served by the municipal aggregation or who opted out of the
20municipal aggregation of their right to opt out of the
21subsequent municipal aggregation and take service pursuant to
22the default service provider's default service offer or with
23another electric generation supplier without fee or penalty.
24The notice shall also explicitly inform customers who may
25have opted out of any previous municipal aggregation
26contracts that they may be eligible to participate in the
27upcoming municipal aggregation contract, pursuant to the
28eligibility requirements defined in this subsection. The
29notice shall follow the procedures established for the
30initial opt-out or opt-in notice set forth in subsection (d)

1or (e), as applicable, and shall prominently disclose to
2customers all changes to the terms and conditions associated
3with the municipal aggregation. The municipal aggregator of
4electricity may not send an opt-out notice to the same
5customer account for the period covered by the municipal
6aggregation contract where the customer account has
7previously opted out.

8(3) No municipal aggregator of electricity or electric
9generation supplier serving a municipal aggregation may
10impose any term, condition, fee or charge on a consumer
11served by a municipal aggregation that is materially
12different from the particular term, condition, fee or charge
13which was included within the contract between the municipal
14aggregator of electricity and the electric generation
15supplier or the notices provided under subsection (d) or (e).

16(4) The following shall apply to provisions for the list
17of eligible municipal aggregation consumers:

18(i) After the issuance of a license to a municipal
19aggregator of electricity and upon request of the
20municipal aggregator of electricity or an electric
21generation supplier designated by the municipal
22aggregator, an electric distribution company shall use
23reasonable efforts to provide the following information
24to the extent it is maintained by the electric
25distribution company for all consumers residing within
26the municipal aggregator of electricity's geographic
27boundaries to the municipal aggregator of electricity or
28the electric generation supplier within 30 calendar days
29of the request:

30(A) An updated list of names, addresses, account

1numbers, rate codes, indication of whether a consumer
2is enrolled in a customer assistance program or
3budget billing, load data and other related consumer
4information, consistent with the information that is
5provided to other electric generation suppliers.

6(B) An identification of consumers who are
7currently under contract with an electric generation
8supplier or in a special arrangement with the
9electric distribution company.

10(ii) The municipal aggregator of electricity or the
11electric generation supplier to the municipal aggregation
12may only use the consumer information from the list of
13eligible municipal aggregation consumers for the purpose
14of forming and operating its municipal aggregation and
15may not disclose the consumer information unless the
16release is pursuant to a court order or a commission
17regulation or order.

18(iii) Upon completion of the mailing of opt-out
19notices and expiration of any associated waiting period
20under subsection (d)(1), a municipal aggregator of
21electricity or the electric generation supplier to a
22municipal aggregation may request updated consumer
23information required under this subsection, and the
24electric distribution company shall use reasonable
25efforts to provide such information within ten days of
26the request.

27(5) The following shall apply to the notice of municipal
28aggregation and opt-out notice:

29(i) Each municipal aggregator of electricity shall
30ensure that only eligible consumers are included in its

1municipal aggregation.

2(ii) If accounts of ineligible consumers or
3consumers who have not opted in or who have opted out of
4the municipal aggregation, as applicable, are switched to
5the electric generation supplier to the municipal
6aggregation, the municipal aggregator of electricity
7shall promptly inform the consumer and take all necessary
8actions to have the consumer switched back to the
9consumer's original electric generation supplier or
10default service provider at no cost to the consumer and
11shall reimburse the consumer for any amount paid under
12the municipal aggregation that is greater than the amount
13otherwise due for its original generation service. The
14original electric generation supplier or default service
15provider shall not be liable for any costs, fees,
16penalties or damages, including any imposed by the
17regional transmission organization in which the municipal
18aggregator of electricity is located, arising from the
19improper transfer. Consistent with due process, the
20commission may require the electric generation supplier
21to the municipal aggregator of electricity to pay any
22such amounts incurred by the original electric generation
23supplier or default service provider, plus any amounts
24the original electric generation supplier would have
25received from the consumer for electric generation
26service from the time of the improper transfer until the
27consumer is returned to electric generation service
28provided by the original electric generation supplier.

29(g) Coordination with default service.--

30(1) The implementation of a municipal aggregation

1program shall be coordinated with the default service supply
2procurement plans of the electric distribution company whose
3service territory encompasses the boundaries of the
4municipality participating in the program.

5(2) Unless otherwise authorized by the commission, no
6municipal aggregator may enter into a contract for electric
7generation services during the term of the default service
8supply procurement plan, approved by the commission on the
9effective date of this section, of the electric distribution
10company whose service territory encompasses the boundaries of
11the municipal aggregator.

12(3) If a municipal aggregator of electricity ceases to
13provide municipal aggregation services during the current
14term of the municipal aggregation contract filed with the
15commission and the customers of the municipal aggregator of
16electricity are returned to default service, the default
17service rate for such customers shall be the market price for
18generation service, including all charges for spot market
19purchases of energy, capacity, transmission, ancillary
20services, compliance with the act of November 30, 2004
21(P.L.1672, No.213), known as the Alternative Energy Portfolio
22Standards Act, and all other costs incurred by the default
23service provider in the provision of generation service to
24such customers, for the remainder of the default service
25provider's current default service plan.

26(h) Duties of electric distribution companies and cost
27recovery.--

28(1) Each electric distribution company shall provide
29reasonable cooperation with municipal aggregators of
30electricity or the electric generation supplier to the

1municipal aggregation to facilitate the proper formation and
2functioning of opt-out or opt-in municipal aggregation, as
3applicable, including coordinating with municipal aggregators
4of electricity and electric generation suppliers to promote
5nondiscriminatory access to electric services and to process
6enrollment requests from municipal aggregators of electricity
7or their designated electric generation supplier in
8accordance with the same processes applicable to other
9licensed electric generation suppliers providing service to
10retail electric customers.

11(2) An electric distribution company shall recover on a
12full and current basis all costs incurred to support and that
13are related to municipal aggregation through a nonbypassable
14reconcilable automatic adjustment charge under section 1307
15(relating to sliding scale of rates; adjustments) from all
16residential and small commercial consumers accessing the
17electric distribution company's transmission and distribution
18system.

19(i) Duties of commission.--The commission shall:

20(1) Promulgate regulations necessary to implement the 
21provisions of this section, including, but not limited to, 
22developing opt-in and opt-out notices for use by municipal 
23aggregators of electricity in this Commonwealth.

24(2) Promulgate regulations and take any other action
25necessary to coordinate the implementation of municipal
26aggregation programs with commission approval of electric
27distribution company default supply procurement plans.

28Section 4. Sections 2807(d)(1) and 2809(a) of Title 66 are
29amended to read:

30§ 2807. Duties of electric distribution companies.

1* * *

2(d) Consumer protections and customer service.--The electric
3distribution company shall continue to provide customer service
4functions consistent with the regulations of the commission,
5including meter reading, complaint resolution and collections.
6Customer services shall, at a minimum, be maintained at the same
7level of quality under retail competition.

8(1) [The] Except as provided under section 2806.3 
9(relating to municipal aggregation of electric generation 
10supply), the commission shall establish regulations to ensure
11that an electric distribution company does not change a
12customer's electricity supplier without direct oral
13confirmation from the customer of record or written evidence
14of the customer's consent to a change of supplier.

15* * *

16§ 2809. Requirements for electric generation suppliers.

17(a) License requirement.--No person or corporation,
18including municipal corporations which choose to provide service
19outside their municipal limits except to the extent provided
20prior to the effective date of this chapter, brokers and
21marketers, aggregators, municipal aggregators of electricity 
22implementing municipal aggregation programs and other entities,
23shall engage in the business of an electric generation supplier
24in this Commonwealth unless the person or corporation holds a
25license issued by the commission. The commission may waive 
26certain licensing requirements in its regulations for municipal 
27aggregators of electricity implementing municipal aggregation 
28programs. Consistent with 15 Pa.C.S. Ch. 74 (relating to
29generation choice for customers of electric cooperatives),
30electric cooperative corporations must possess a certificate for

1service to supply generation services beyond their territorial
2limits.

3* * *

4Section 5. This act shall take effect in 60 days.