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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| 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 |
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| REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 29, 2010 |
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| AN ACT |
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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. |
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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 |
|
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 |
|
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 |
|
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 |
|
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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