PRINTER'S NO.  4012

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2619

Session of

2010

  

  

INTRODUCED BY PRESTON, BROOKS, CALTAGIRONE, ELLIS, GIBBONS, HALUSKA, HESS, HUTCHINSON, JOSEPHS, KOTIK, LONGIETTI, MARSHALL, MATZIE, PASHINSKI, RAPP, REICHLEY, SAINATO, SAYLOR, SIPTROTH AND STEVENSON, JUNE 29, 2010

  

  

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 29, 2010  

  

  

  

AN ACT

  

1

Amending Titles 53 (Municipalities Generally) and 66 (Public

2

Utilities) of the Pennsylvania Consolidated Statutes,

3

providing for municipal aggregation of electric generation

4

supply.

5

The General Assembly of the Commonwealth of Pennsylvania

6

hereby enacts as follows:

7

Section 1.  Part V of Title 53 of the Pennsylvania

8

Consolidated Statutes is amended by adding a chapter to read:

9

CHAPTER 61

10

MUNICIPAL AGGREGATION OF

11

ELECTRIC GENERATION SUPPLY

12

Sec.

13

6101.  Legislative purpose.

14

6102.  Definitions.

15

6103.  Grant of authority.

16

6104.  Intergovernmental cooperation.

17

6105.  Limitations.

18

§ 6101.  Legislative purpose.

 


1

The purpose of this chapter is to grant legislative authority

2

for any municipality to act as a municipal aggregator of

3

electricity under 66 Pa.C.S. Ch. 28 (relating to restructuring

4

of electric utility industry) and to provide municipal

5

aggregation of electric generation supply to consumers of

6

electricity within its municipal boundaries.

7

§ 6102.  Definitions.

8

The following words and phrases when used in this chapter

9

shall have the meanings given to them in this section unless the

10

context clearly indicates otherwise:

11

"Consumer."  As defined in 66 Pa.C.S. § 2803 (relating to

12

definitions).

13

"Commission."  The Pennsylvania Public Utility Commission.

14

"Default service plan."  As defined in 66 Pa.C.S. § 2803

15

(relating to definitions).

16

"Electric generation supplier."  As defined in 66 Pa.C.S.

17

§ 2803 (relating to definitions).

18

"Municipal aggregation program."  As defined in 66 Pa.C.S.

19

§ 2803 (relating to definitions).

20

"Municipal aggregator of electricity."  As defined in 66

21

Pa.C.S. § 2803 (relating to definitions).

22

"Municipality."  As defined in 66 Pa.C.S. § 2803 (relating to

23

definitions).

24

"Price-to-compare."  As defined in 66 Pa.C.S. § 2803

25

(relating to definitions).

26

"Small commercial customer."  As defined in 66 Pa.C.S. § 2803

27

(relating to definitions).

28

§ 6103.  Grant of authority.

29

(a)  Authority.--Except as provided under subsection (b) and

30

notwithstanding any law, a municipality is authorized to:

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1

(1)  Be a municipal aggregator of electricity and provide

2

opt-in or opt-out municipal aggregation of electric

3

generation supply.

4

(2)  Be licensed by the commission as an electric

5

generation supplier.

6

(b)  Exception.--A municipality may only act as a municipal

7

aggregator of electricity on behalf of consumers within its

8

geographic boundaries.

9

§ 6104.  Intergovernmental cooperation.

10

Any two or more municipalities may cooperate and exercise the

11

authority to jointly act as a municipal aggregator of electric

12

generation supply in accordance with Subpart D of Part III

13

(relating to area government and intergovernmental cooperation).

14

§ 6105.  Limitations.

15

The authority granted to municipalities under this chapter

16

shall be limited by 66 Pa.C.S. § 2806.3 (relating to municipal

17

aggregation of electric generation supply) and any regulations

18

promulgated under 66 Pa.C.S. § 2806.3 by the commission.

19

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

20

§ 2803.  Definitions.

21

The following words and phrases when used in this chapter

22

shall have the meanings given to them in this section unless the

23

context clearly indicates otherwise:

24

"Aggregator" or "market aggregator."  An entity, licensed by

25

the commission, that purchases electric energy and takes title

26

to electric energy as an intermediary for sale to retail

27

customers. The term shall not include a municipal aggregator of

28

electricity.

29

"Bilateral contract."  An agreement, as approved by the

30

commission, reached by two parties, each acting in its own

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1

independent self-interest, as a result of negotiations free of

2

undue influence, duress or favoritism, in which the electric

3

energy supplier agrees to sell and the electric distribution

4

company agrees to buy a quantity of electric energy at a

5

specified price for a specified period of time under terms

6

agreed to by both parties, and which follows a standard industry

7

template widely accepted in the industry or variations thereto

8

accepted by the parties. Standard industry templates may include

9

the EEI Master Agreement for physical energy purchases and sales

10

and the ISDA Master Agreement for financial energy purchases and

11

sales.

12

"Broker" or "marketer."  An entity, licensed by the

13

commission, that acts as an agent or intermediary in the sale

14

and purchase of electric energy but that does not take title to

15

electric energy. The term shall include a municipal aggregator

16

of electricity.

17

"Competitive transition charge."  A nonbypassable charge

18

applied to the bill of every customer accessing the transmission

19

or distribution network which (charge) is designed to recover an

20

electric utility's transition or stranded costs as determined by

21

the commission under sections 2804 (relating to standards for

22

restructuring of electric industry) and 2808 (relating to

23

competitive transition charge).

24

"Consumer."  A retail electric customer.

25

"Customer."  A retail electric customer.

26

"Default service plan."  A plan for competitive procurement

27

of default service supply approved by the commission under 66

28

Pa.C.S. § 2807(e)(3.6) (relating to duties of electric

29

distribution companies).

30

"Default service provider."  An electric distribution company

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1

within its certified service territory or an alternative

2

supplier approved by the commission that provides generation

3

service to retail electric customers who:

4

(1)  contract for electric power, including energy and

5

capacity, and the chosen electric generation supplier does

6

not supply the service; or

7

(2)  do not choose an alternative electric generation

8

supplier.

9

"Direct access."  The right of electric generation suppliers

10

and end-use customers to utilize and interconnect with the

11

electric transmission and distribution system on a

12

nondiscriminatory basis at rates, terms and conditions of

13

service comparable to the transmission and distribution

14

companies' own use of the system to transport electricity from

15

any generator of electricity to any end-use customer.

16

"Electric distribution company."  The public utility

17

providing facilities for the jurisdictional transmission and

18

distribution of electricity to retail customers, except building

19

or facility owners/operators that manage the internal

20

distribution system serving such building or facility and that

21

supply electric power and other related electric power services

22

to occupants of the building or facility.

23

"Electric generation supplier" or "electricity supplier." A

24

person or corporation, including municipal corporations which

25

choose to provide service outside their municipal limits except

26

to the extent provided prior to the effective date of this

27

chapter, brokers and marketers, aggregators, municipal

28

aggregators of electricity implementing municipal aggregation

29

programs or any other entities, that sells to end-use customers

30

electricity or related services utilizing the jurisdictional

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1

transmission or distribution facilities of an electric

2

distribution company or that purchases, brokers, arranges or

3

markets electricity or related services for sale to end-use

4

customers utilizing the jurisdictional transmission and

5

distribution facilities of an electric distribution company. The

6

term excludes building or facility owner/operators that manage

7

the internal distribution system serving such building or

8

facility and that supply electric power and other related power

9

services to occupants of the building or facility. The term

10

excludes electric cooperative corporations except as provided in

11

15 Pa.C.S. Ch. 74 (relating to generation choice for customers

12

of electric cooperatives).

13

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

14

"Municipal aggregation contract."  A written agreement

15

between a municipal aggregator of electricity and an electric

16

generation supplier that includes:

17

(1)  Beginning and end dates of the contract period.

18

(2)  Electric generation rate for the contract period.

19

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

20

(4)  Customer complaint processes.

21

(5)  Contact information for inquiries related to

22

municipal aggregation.

23

"Municipal aggregation program."  A program providing for a

24

municipality acting as a broker or marketer on behalf of the

25

eligible consumers within the municipality's geographic

26

boundaries not excluded by section 2806.3 (relating to municipal

27

aggregation of electric generation supply). A program may be

28

either:

29

(1)  an opt-out program, which shall include every

30

eligible consumer who does not choose to be excluded from the

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1

program; or

2

(2)  an opt-in program, which shall include only those

3

eligible consumers who choose to participate in the program.

4

"Municipal aggregator of electricity."  A municipality,

5

licensed by the commission, that acts as a broker or marketer on

6

behalf of the eligible consumers within the municipality's

7

geographic boundaries under municipal aggregation.

8

"Municipality."  A county, city, township, town or borough.

9

The term shall include a municipality subject to the former act

10

of April 13, 1972 (P.L.184, No.62), known as the Home Rule

11

Charter and Optional Plans Law.

12

"Price-to-compare."  A line item that appears on a retail

13

customer's monthly bill for default service. The price-to-

14

compare is equal to the sum of all unbundled generation and

15

transmission related charges to a default service customer for

16

that month of service.

17

"Reliability."  Includes adequacy and security. As used in

18

this definition, "adequacy" means the provision of sufficient

19

generation, transmission and distribution capacity so as to

20

supply the aggregate electric power and energy requirements of

21

consumers, taking into account scheduled and unscheduled outages

22

of system facilities; and "security" means designing,

23

maintaining and operating a system so that it can handle

24

emergencies safely while continuing to operate.

25

"Renewable resource."  Includes technologies such as solar

26

photovoltaic energy, solar thermal energy, wind power, low-head

27

hydropower, geothermal energy, landfill and mine-based methane

28

gas, energy from waste and sustainable biomass energy.

29

"Retail customer."  A retail electric customer.

30

"Retail electric customer."  A direct purchaser of electric

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1

power. The term excludes an occupant of a building or facility

2

where the owners/operators manage the internal distribution

3

system serving such building or facility and supply electric

4

power and other related power services to occupants of the

5

building or facility; where such owners/operators are direct

6

purchasers of electric power; and where the occupants are not

7

direct purchasers.

8

"Small commercial customer."  A retail electric customer that

9

receives electric service under a small commercial, small

10

industrial or small business rate classification, and whose

11

maximum registered peak load was less than 25 kW within the last

12

12 months.

13

"Transition or stranded costs."  An electric utility's known

14

and measurable net electric generation-related costs, determined

15

on a net present value basis over the life of the asset or

16

liability as part of its restructuring plan, which traditionally

17

would be recoverable under a regulated environment but which may

18

not be recoverable in a competitive electric generation market

19

and which the commission determines will remain following

20

mitigation by the electric utility. This term includes:

21

(1)  Regulatory assets and other deferred charges

22

typically recoverable under current regulatory practice, the

23

unfunded portion of the utility's projected nuclear

24

generating plant decommissioning costs and cost obligations

25

under contracts with nonutility generating projects which

26

have received a commission order, the recoverability of which

27

shall be determined under section 2808(c)(1) (relating to

28

competitive transition charge).

29

(2)  Prudently incurred costs related to cancellation,

30

buyout, buydown or renegotiation of nonutility generating

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1

projects consistent with section 527 (relating to

2

cogeneration rules and regulations), the recoverability of

3

which shall be determined pursuant to section 2808(c)(2).

4

(3)  The following costs, the recoverability of which

5

shall be determined pursuant to section 2808(c)(3):

6

(i)  Net plant investments and costs attributable to

7

the utility's existing generation plants and facilities.

8

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

9

(iii)  The utility's long-term purchase power

10

commitments other than the costs defined in paragraphs

11

(1) and (2).

12

(iv)  Retirement costs attributable to the utility's

13

existing generating plants other than the costs defined

14

in paragraph (1).

15

(v)  Other transition costs of the utility, including

16

costs of employee severance, retraining, early

17

retirement, outplacement and related expenses, at

18

reasonable levels, for employees who are affected by

19

changes that occur as a result of the restructuring of

20

the electric industry occasioned by this chapter.

21

The term includes any costs attributable to physical plants no

22

longer used and useful because of the transition to retail

23

competition. The term excludes any amounts previously disallowed

24

by the commission as imprudently incurred. To the extent that

25

the recoverability of amounts that are sought to be included as

26

transition or stranded costs are subject to appellate review as

27

of the time of the commission determination, any determination

28

to include such costs shall be reversed to the extent required

29

by the results of that appellate review.

30

"Transmission and distribution costs."  All costs directly or

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1

indirectly incurred to provide transmission and distribution

2

services to retail electric customers. This includes the return

3

of and return on facilities and other capital investments

4

necessary to provide transmission and distribution services and

5

associated operating expenses, including applicable taxes.

6

"Universal service and energy conservation."  Policies,

7

protections and services that help low-income customers to

8

maintain electric service. The term includes customer assistance

9

programs, termination of service protection and policies and

10

services that help low-income customers to reduce or manage

11

energy consumption in a cost-effective manner, such as the low-

12

income usage reduction programs, application of renewable

13

resources and consumer education.

14

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

15

§ 2806.3.  Municipal aggregation of electric generation supply.

16

(a)  Licensing.--The commission, in accordance with its

17

regulations, within 30 days following receipt of an application,

18

may issue a license to a municipality as an electric generation

19

supplier to act as a municipal aggregator of electric generation

20

supply service for eligible consumers within the municipality's

21

geographic boundaries. A municipal aggregator of electricity

22

under this section shall not be considered a public utility or a

23

utility engaging in the wholesale purchase and resale of

24

electricity, and the provision of municipal aggregation shall

25

not be considered a wholesale utility transaction.

26

(b)  Ordinance required.--Prior to applying for an electric

27

generation supplier license with the commission, the governing

28

body of the municipality shall adopt an ordinance authorizing

29

the municipality to apply for an electric generation supplier

30

license to serve as a municipal aggregator of electricity,

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1

indicate whether the municipal aggregation shall be an opt-in or

2

opt-out program and shall identify municipal officials by either

3

title of office or name, or their duly appointed designees,

4

authorized to execute documents with the commission on behalf of

5

the municipality. A municipal aggregator of electricity shall

6

provide reasonable public notice of municipal consideration of

7

any ordinance authorizing a municipal aggregation program, which

8

shall include newspaper publication on a monthly basis beginning

9

at least 90 days prior to the adoption of an ordinance

10

authorizing an opt-out program.

11

(c)  Municipal aggregation contracts.--

12

(1)  A municipal aggregator of electricity may negotiate

13

and enter into a contract for electric generation supply

14

services with an electric generation supplier. A municipal

15

aggregator of electricity shall use a competitive procurement

16

or request-for proposal process to select the electric

17

generation supplier, regardless of the generation fuel type,

18

location, technology or new or existing status of the

19

generation that the electric generation supplier will use to

20

supply the municipal aggregation. An executed municipal

21

aggregation contract shall not go into effect prior to filing

22

with the commission, and a copy of the filed contract shall

23

be provided to the electric distribution company whose

24

service territory includes the municipal aggregator. Each

25

contract shall include:

26

(i)  provisions for the timing of the distribution of

27

customer lists by the electric distribution company and

28

customer notices consistent with this section;

29

(ii)  a consumer education plan with appropriate

30

consumer education materials to inform consumers about

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1

the existence of the municipal aggregation and the

2

highlights of the program, which shall be deployed

3

concurrently with the distribution of opt-in or opt-out

4

notices, as applicable; and

5

(iii)  a copy of the sample opt-in or opt-out notice

6

to be sent to consumers, which shall provide the

7

identification of the selected electric generation

8

supplier.

9

(2)  Any contract between a municipality and an electric

10

generation supplier executed under this section shall clearly

11

indicate whether it is for an opt-in or opt-out municipal

12

aggregation and the price that the contracted electric

13

generation supplier will charge customers for electric

14

generation supply, as well as the time period of the

15

contract. If the price is a fixed rate, the price shall be

16

expressed in cents per kilowatt hour. If the contract

17

provides for a percentage off of the default service rate or

18

any other type of pricing arrangement, an understandable

19

description of the amount of the percentage discount or other

20

pricing arrangement and how the rate may change shall be

21

provided. If the electric generation supplier will charge

22

different rates to different rate classes within the

23

municipality, the applicable rate to consumers within each

24

rate class shall be described.

25

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

26

(1)  No consumer may be bound by a contract between a

27

municipal aggregator of electricity and an electric

28

generation supplier in opt-out municipal aggregation until

29

not less than 30 days following the mailing of the opt-out

30

notices required under this subsection and the expiration of

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1

any waiting period for a consumer to cancel the pending

2

change to the electric generation supplier following written

3

confirmation by the electric distribution company as

4

prescribed by regulation.

5

(2)  Any contract between a municipality and an electric

6

generation supplier executed under this section shall contain

7

procedures for addressing consumer disputes and complaints

8

related to supply services received pursuant to a municipal

9

aggregation program. The procedures shall be made available

10

to consumers, at least annually, in a clear and easily

11

understandable format. After a municipality executes a

12

contract for electric generation services, but prior to

13

including a consumer's electric account or accounts in an

14

opt-out municipal aggregation, a municipal aggregator of

15

electricity shall provide each eligible consumer with written

16

notice that the consumer's account will be automatically

17

included in the municipal aggregation unless the customer

18

affirmatively opts out of the municipal aggregation. The

19

notice, written in plain language, shall include all of the

20

following:

21

(i)  The date by which the customer must

22

affirmatively opt out of the program. The date shall not

23

be less than 30 days following the mailing of the opt-out

24

notice.

25

(ii)  A description of the ordinance adopted by the

26

municipality authorizing it to apply for a license from

27

the commission, the competitive procurement process under

28

which offers for electric generation supply were

29

solicited, and a location where, during regular business

30

hours, consumers may view the ordinance and executed

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1

contract free of charge or obtain a copy for a reasonable

2

fee.

3

(iii)  Disclosure of the price that the contracted

4

electric generation supplier will charge customers for

5

electric generation service. If the price is a fixed

6

rate, the municipal aggregator of electricity shall

7

express the price in cents per kilowatt hour and list the

8

most recent applicable price-to-compare of the default

9

service provider in whose service territory the

10

municipality is located. If the contract provides for a

11

percentage off of the default service rate or any other

12

type of pricing arrangement, an understandable

13

description of the amount of the percentage discount or

14

other pricing arrangement and how the rate may change

15

shall be provided. If the electric generation supplier

16

charges different rates to different rate classes within

17

the municipality, the municipal aggregator of electricity

18

shall describe the applicable rate to consumers within

19

each rate class and the associated price-to-compare.

20

(iv)  An itemized list and explanation of all fees

21

and charges that are not incorporated into the rates

22

charged for electric generation service that the electric

23

generation supplier will charge to the consumer for

24

participating in the municipal aggregation, including any

25

early termination penalties and any surcharges that may

26

be assessed. Early termination penalties shall not apply

27

to a consumer that moves outside the municipal aggregator

28

of electricity's geographic boundaries or that becomes

29

eligible for and remains in an electric distribution

30

company customer assistance program at the time of

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1

termination.

2

(v)  Disclosure of the estimated service commencement

3

date and notice that the consumer may opt out of the

4

municipal aggregation program at the end of the term of

5

the municipal aggregation contract and prior to the

6

commencement of any subsequent municipal aggregation

7

contract.

8

(vi)  A statement informing consumers that if they

9

choose to opt out of the municipal aggregation they will

10

be served by the default service offer established under

11

section 2807(e) (relating to duties of electric

12

distribution companies) until the consumer chooses an

13

alternative electric generation supplier or chooses to

14

participate in a subsequent municipal aggregation.

15

(vii)  A statement informing consumers that if they

16

switch back to the default service provider they may not

17

be served under the same rates, terms and conditions that

18

apply to other customers within the municipal

19

aggregation.

20

(viii)  Disclosure of any credit, collection and

21

deposit policies and requirements.

22

(ix)  Disclosure of any limitations or conditions on

23

customer acceptance into the municipal aggregation.

24

(x)  A description of the process and associated time

25

period for consumers to opt out of the municipal

26

aggregation. The process shall include provisions for

27

consumers to return a postcard or similar notice to the

28

municipal aggregator of electricity or its agent. The

29

process may include other opt-out methods, such as

30

telephonic or Internet notice, if these alternative

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1

methods allow for verification of a consumer's election

2

to opt out of the municipal aggregation. The time period

3

for a customer to choose to opt out of the municipal

4

aggregation shall be not less than 30 days from the date

5

of the mailing of the written notice. If a consumer's

6

return postcard or notice is postmarked before the opt-

7

out deadline has elapsed, the consumer shall be deemed to

8

have opted out of the municipal aggregation.

9

(xi)  A local or toll-free telephone number, with the

10

available calling hours, that consumers may call with

11

questions regarding the formation or operation of the

12

municipal aggregation.

13

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

14

(1)  No consumer may be bound by a contract between a

15

municipal aggregator and an electric generation supplier in

16

opt‑in municipal aggregation until the consumer has been

17

provided an opt-in notice required under this subsection and

18

the expiration of any waiting period for a consumer to cancel

19

the pending change to the electric generation supplier

20

following written confirmation by the electric distribution

21

company as prescribed by regulation.

22

(2)  After a municipality executes a contract for

23

electric generation services, but prior to including a

24

consumer's electric account or accounts in an opt-in

25

municipal aggregation, a municipal aggregator of electricity

26

shall provide each eligible consumer with written notice that

27

the customer may participate in the municipal aggregation.

28

The notice, written in plain language, shall include all of

29

the information required under subsection (d)(2)(ii), (iii),

30

(iv), (vi), (vii), (viii), (x) and (xi) and the following

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1

information:

2

(i)  A statement informing consumers that if they do

3

not choose to opt in to the municipal aggregation they

4

will be served by the default service offer established

5

under section 2807(e) until the consumer chooses an

6

alternative electric generation supplier or chooses to

7

participate in a subsequent municipal aggregation.

8

(ii)  A description of the process and associated

9

time period for consumers to opt in to the municipal

10

aggregation. The process shall include provisions for

11

consumers to return a postcard or similar notice to the

12

municipal aggregator of electricity or its agent. The

13

process may include other opt-in methods, such as

14

telephonic or Internet notice, if these alternative

15

methods allow for verification of a consumer's election

16

to opt in to the municipal aggregation. The time period

17

for a customer to choose to opt in to the municipal

18

aggregation shall be at least 30 days from the date of

19

the mailing of the written notice. If a consumer's return

20

postcard or notice is postmarked before the opt-in

21

deadline has elapsed, the consumer shall be deemed to

22

have opted in to the municipal aggregation.

23

(f)  Additional requirements; provision of customer

24

information.--

25

(1)  The following consumers shall be excluded from

26

enrollment in a municipal aggregation:

27

(i)  For opt-out municipal aggregation only, a

28

consumer that has opted out of the municipal aggregation

29

under subsection (d) or that has a special contract or

30

agreement with an electric distribution company or a

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1

consumer under an existing contract with a licensed

2

electric generation supplier other than a consumer under

3

a municipal aggregation contract with the current

4

electric generation supplier of the municipal

5

aggregation.

6

(ii)  A consumer that is not located within the

7

geographic boundaries of the municipal aggregator of

8

electricity.

9

(iii)  A consumer other than a residential or small

10

commercial customer.

11

(iv)  A consumer that is enrolled in an electric

12

distribution company's customer assistance program that

13

does not include any electric generation supplier charges

14

in the calculation of the customer assistance program

15

benefit.

16

(v)  End-use consumers served or authorized to be

17

served by an electric cooperative or loads served by a

18

municipality that owns and operates its own electric

19

distribution system.

20

(2)  No earlier than three months and no later than 30

21

days prior to the end of the term of a municipal aggregation

22

contract and commencement of a new municipal aggregation

23

contract or contract renewal term, a municipal aggregator of

24

electricity or the electric generation supplier to the

25

municipal aggregation shall provide notice to all consumers

26

served by the municipal aggregation or who opted out of the

27

municipal aggregation of their right to opt out of the

28

subsequent municipal aggregation and take service pursuant to

29

the default service provider's default service offer or with

30

another electric generation supplier without fee or penalty.

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1

The notice shall also explicitly inform customers who may

2

have opted out of any previous municipal aggregation

3

contracts that they may be eligible to participate in the

4

upcoming municipal aggregation contract, pursuant to the

5

eligibility requirements defined in this subsection. The

6

notice shall follow the procedures established for the

7

initial opt-out or opt-in notice set forth in subsection (d)

8

or (e), as applicable, and shall prominently disclose to

9

customers all changes to the terms and conditions associated

10

with the municipal aggregation. The municipal aggregator of

11

electricity may not send an opt-out notice to the same

12

customer account for the period covered by the municipal

13

aggregation contract where the customer account has

14

previously opted out.

15

(3)  No municipal aggregator of electricity or electric

16

generation supplier serving a municipal aggregation may

17

impose any term, condition, fee or charge on a consumer

18

served by a municipal aggregation that is materially

19

different from the particular term, condition, fee or charge

20

which was included within the contract between the municipal

21

aggregator of electricity and the electric generation

22

supplier or the notices provided under subsection (d) or (e).

23

(4)  The following shall apply to provisions for the list

24

of eligible municipal aggregation consumers:

25

(i)  After the issuance of a license to a municipal

26

aggregator of electricity and upon request of the

27

municipal aggregator of electricity or an electric

28

generation supplier designated by the municipal

29

aggregator, an electric distribution company shall use

30

reasonable efforts to provide the following information

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1

to the extent it is maintained by the electric

2

distribution company for all consumers residing within

3

the municipal aggregator of electricity's geographic

4

boundaries to the municipal aggregator of electricity or

5

the electric generation supplier within 30 calendar days

6

of the request:

7

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

8

numbers, rate codes, indication of whether a consumer

9

is enrolled in a customer assistance program or

10

budget billing, load data and other related consumer

11

information, consistent with the information that is

12

provided to other electric generation suppliers.

13

(B)  An identification of consumers who are

14

currently under contract with an electric generation

15

supplier or in a special arrangement with the

16

electric distribution company.

17

(ii)  The municipal aggregator of electricity or the

18

electric generation supplier to the municipal aggregation

19

may only use the consumer information from the list of

20

eligible municipal aggregation consumers for the purpose

21

of forming and operating its municipal aggregation and

22

may not disclose the consumer information unless the

23

release is pursuant to a court order or a commission

24

regulation or order.

25

(iii)  Upon completion of the mailing of opt-out

26

notices and expiration of any associated waiting period

27

under subsection (d)(1), a municipal aggregator of

28

electricity or the electric generation supplier to a

29

municipal aggregation may request updated consumer

30

information required under this subsection, and the

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1

electric distribution company shall use reasonable

2

efforts to provide such information within ten days of

3

the request.

4

(5)  The following shall apply to the notice of municipal

5

aggregation and opt-out notice:

6

(i)  Each municipal aggregator of electricity shall

7

ensure that only eligible consumers are included in its

8

municipal aggregation.

9

(ii)  If accounts of ineligible consumers or

10

consumers who have not opted in or who have opted out of

11

the municipal aggregation, as applicable, are switched to

12

the electric generation supplier to the municipal

13

aggregation, the municipal aggregator of electricity

14

shall promptly inform the consumer and take all necessary

15

actions to have the consumer switched back to the

16

consumer's original electric generation supplier or

17

default service provider at no cost to the consumer and

18

reimburse the consumer for any amount paid under the

19

municipal aggregation that is greater than the amount

20

otherwise due for its original generation service. The

21

original electric generation supplier or default service

22

provider shall not be liable for any costs, fees,

23

penalties or damages, including any imposed by the

24

regional transmission organization in which the municipal

25

aggregator of electricity is located, arising from the

26

improper transfer. Consistent with due process, the

27

commission may require the electric generation supplier

28

to the municipal aggregator of electricity to pay any

29

such amounts incurred by the original electric generation

30

supplier or default service provider, plus any amounts

- 21 -

 


1

the original electric generation supplier would have

2

received from the consumer for electric generation

3

service from the time of the improper transfer until the

4

consumer is returned to electric generation service

5

provided by the original electric generation supplier.

6

(g)  Return to default service.--In the event that a

7

municipal aggregator of electricity ceases to provide municipal

8

aggregation services during the current term of the municipal

9

aggregation contract filed with the commission and the customers

10

of the municipal aggregator of electricity are returned to

11

default service, the default service rate for such customers

12

shall be the market price for generation service, including all

13

charges for spot market purchases of energy, capacity,

14

transmission, ancillary services, compliance with the act of

15

November 30, 2004 (P.L.1672, No.213), known as the Alternative

16

Energy Portfolio Standards Act, and all other costs incurred by

17

the default service provider in the provision of generation

18

service to such customers, for the remainder of the default

19

service provider's current default service plan.

20

(h)  Duties of electric distribution companies and cost

21

recovery.--

22

(1)  Each electric distribution company shall provide

23

reasonable cooperation with municipal aggregators of

24

electricity or the electric generation supplier to the

25

municipal aggregation to facilitate the proper formation and

26

functioning of opt-out or opt-in municipal aggregation, as

27

applicable, including coordinating with municipal aggregators

28

of electricity and electric generation suppliers to promote

29

nondiscriminatory access to electric services and to process

30

enrollment requests from municipal aggregators of electricity

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1

or their designated electric generation supplier in

2

accordance with the same processes applicable to other

3

licensed electric generation suppliers providing service to

4

retail electric customers.

5

(2)  An electric distribution company shall recover on a

6

full and current basis all costs incurred to support and that

7

are related to municipal aggregation through a nonbypassable

8

reconcilable automatic adjustment charge under section 1307

9

(relating to sliding scale of rates; adjustments) from all

10

residential and small commercial consumers accessing the

11

electric distribution company's transmission and distribution

12

system.

13

(i)  Duties of commission.--The commission shall promulgate

14

regulations necessary to implement the provisions of this

15

section, including, but not limited to, developing opt-out

16

notices for use by municipal aggregators of electricity in this

17

Commonwealth.

18

Section 4. Sections 2807(d)(1) and 2809(a) of Title 66 are

19

amended to read:

20

§ 2807.  Duties of electric distribution companies.

21

* * *

22

(d)  Consumer protections and customer service.--The electric

23

distribution company shall continue to provide customer service

24

functions consistent with the regulations of the commission,

25

including meter reading, complaint resolution and collections.

26

Customer services shall, at a minimum, be maintained at the same

27

level of quality under retail competition.

28

(1)  [The] Except as provided under section 2806.3

29

(relating to municipal aggregation of electric generation

30

supply), the commission shall establish regulations to ensure

- 23 -

 


1

that an electric distribution company does not change a

2

customer's electricity supplier without direct oral

3

confirmation from the customer of record or written evidence

4

of the customer's consent to a change of supplier.

5

* * *

6

§ 2809.  Requirements for electric generation suppliers.

7

(a)  License requirement.--No person or corporation,

8

including municipal corporations which choose to provide service

9

outside their municipal limits except to the extent provided

10

prior to the effective date of this chapter, brokers and

11

marketers, aggregators, municipal aggregators of electricity

12

implementing municipal aggregation programs and other entities,

13

shall engage in the business of an electric generation supplier

14

in this Commonwealth unless the person or corporation holds a

15

license issued by the commission. The commission may waive

16

certain licensing requirements in its regulations for municipal

17

aggregators of electricity implementing municipal aggregation

18

programs. Consistent with 15 Pa.C.S. Ch. 74 (relating to

19

generation choice for customers of electric cooperatives),

20

electric cooperative corporations must possess a certificate for

21

service to supply generation services beyond their territorial

22

limits.

23

* * *

24

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

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