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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted:	January 12, 2017 01:26 PM
From:	Representative Robert W. Godshall
To:	All House members
Subject:	Variable Rate Electric Contracts

In the near future, I will be re-introducing legislation to regulate the contracts offered to residential and small business customers by competitive electric generation suppliers. This legislation was previously introduced as HB 844 (2015-16) HB 2104 (2013-14) 2012's polar vortex wreaked havoc on the electric generation bills of consumers who either signed up for a variable rate product with an electric generation supplier or had their fixed rate product “roll over” into a variable rate when the initial contract expired. The lessons learned from last winter taught us that the provision of electric generation service needs to be regulated to ensure that consumers are informed about the type of electric generation contract they are signing onto, the prices associated with the contract, contract term and the fees, including early termination fees that apply to their contract. My bill will address these concerns by requiring that specific information be contained in all supplier contracts and that this information is provided in an easily readable and understandable manner. The bill also places a 30% cap on the amount by which a rate may change under a variable rate contract, prohibits cancelation and early termination fees for variable rate contracts, requires the posting of current and historic rates on the PA Power Switch website and reduces the amount of time it takes to switch electric generation suppliers.

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