1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, providing for electric generation
3supplier.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Title 66 of the Pennsylvania Consolidated
7Statutes is amended by adding a chapter to read:

8CHAPTER 28A

9ELECTRIC GENERATION SUPPLIER

10Sec.

1128A01. Definitions.

1228A02. Customer authorization and receipt of contract.

1328A03. Variable rate.

14§ 28A01. Definitions.

15The following words and phrases when used in this chapter
16shall have the meanings given to them in this section unless the
17context clearly indicates otherwise:

1"Contract." The terms and conditions of service provided by
2an electric generation supplier.

3"Electric generation supplier." As defined in section 2803
4(relating to definitions). The term shall not include an
5electric distribution company providing default service.

6"Residential customer." A customer, as defined in section
71403 (relating to definitions), who enters into a contract to
8receive electric generation service from an electric generation
9supplier.

10"Small commercial customer." A nonresidential customer that
11has a peak demand of less than 50 kilowatts during any 12-month
12period and enters into a contract to receive electric generation
13service from an electric generation supplier.

14"Variable rate product." A retail generation product for
15which the rate may vary based upon fluctuations in wholesale
16market prices.

17§ 28A02. Customer authorization and receipt of contract.

18(a) Authorization.--An electric generation supplier may not
19provide electric generation service to a residential or small
20commercial customer without a customer's written authorization.
21Authorization may be memorialized by the customer's written
22signature on a contract or authorization form. Authorization
23shall be required to:

24(1) Initiate service.

25(2) Switch electric generation suppliers.

26(3) Renew a contract.

27(b) Contract.--A contract under this subsection must meet
28the requirements of the act of June 23, 1993 (P.L.128, No.29),
29known as the Plain Language Consumer Contract Act.

30§ 28A03. Variable rate.

1(a) Frequency.--The kilowatt hour rate charged to a
2residential or small commercial customer under a contract for a
3variable rate product may not be increased more frequently than
4once per billing cycle.

5(b) Limit.--The kilowatt hour rate charged to a residential
6or small commercial customer under a contract for a variable
7rate product may not be increased by more than 20% of the rate
8charged during the immediately prior billing cycle.

9Section 2. This act shall take effect in 60 days.