1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, <-in administration, further providing 
3for assessment for regulatory expenses upon public utilities;
4in responsible utility customer protection<-: further, further 
5providing for definitions, for cash deposits and household 
6information requirements, for payment agreements, for 
7termination of utility service, for reconnection of service, 
8for late payment charge waiver and for complaints filed with 
9commission;, providing for public utility duties<-; and, 
10further providing for automatic meter readings, for reporting 
11to General Assembly and Governor, for nonapplicability and 
12for construction<-. and providing for expiration; in natural 
13gas competition, further providing for requirements for 
14natural gas suppliers; and, in restructuring of electric 
15utility industry, further providing for requirements for 
16electric generation suppliers.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

<-19Section 1. The definitions of "applicant," "customer,"
20"payment agreement" and "public utility," in section 1403 of
21Title 66 of the Pennsylvania Consolidated Statutes are amended
22and the section is amended by adding definitions to read:

<-23Section 1. The General Assembly finds and declares as
24follows:

1(1) Responsible utility customer protection is a
2fundamental goal of Title 66 of the Pennsylvania Consolidated
3Statutes for public utilities and licensed entities.

4(2) Amendments to 66 Pa.C.S. Ch. 14 in this act are
5necessary to achieve the goal under paragraph (1).

6(3) In order to implement paragraph (2), funding changes
7are necessary in:

8(i) assessment for regulatory expenses under 66
9Pa.C.S. § 510(a); and

10(ii) fees for oversight of electric generation
11suppliers and natural gas suppliers.

12Section 1.1. Section 510(a) of Title 66 is amended to read:

13§ 510. Assessment for regulatory expenses upon public
14utilities.

15(a) Determination of assessment.--Before November 1 of each
16year, the commission shall estimate its total expenditures in
17the administration of this part for the fiscal year beginning
18July of the following year, which estimate shall not exceed
19three-tenths of 1% of the total gross intrastate operating
20revenues of the public utilities and licensed entities under its
21jurisdiction for the preceding calendar year[.], except that the 
22estimate may exceed this amount to reflect Federal funds 
23received by the commission and funds received from other sources 
24to perform functions that are unrelated to the regulation of 
25public utilities and licensed entities. Such estimate shall be
26submitted to the Governor in accordance with section 610 of the 
27act of April 9, 1929 (P.L.177, No.175), known as ["]The 
28Administrative Code of 1929.["] At the same time the commission 
29submits its estimate to the Governor, the commission shall also 
30submit that estimate to the General Assembly. The commission or

1its designated representatives shall be afforded an opportunity
2to appear before the Governor and the Senate and House
3Appropriations Committees regarding their estimates. The
4commission shall subtract from the final estimate:

5(1) The estimated fees to be collected pursuant to
6section 317 (relating to fees for services rendered by
7commission) during such fiscal year.

8(2) The estimated balance of the appropriation,
9specified in section 511 (relating to disposition,
10appropriation and disbursement of assessments and fees), to
11be carried over into such fiscal year from the preceding one.

12The remainder so determined, herein called the total assessment,
13shall be allocated to, and paid by, such public utilities in the
14manner prescribed. If the General Assembly fails to approve the
15commission's budget for the purposes of this part, by March 30,
16the commission shall assess public utilities on the basis of the
17last approved operating budget. At such time as the General
18Assembly approves the proposed budget the commission shall have
19the authority to make an adjustment in the assessments to
20reflect the approved budget. If, subsequent to the approval of
21the budget, the commission determines that a supplemental budget
22may be needed, the commission shall submit its request for that
23supplemental budget simultaneously to the Governor and the
24chairmen of the House and Senate Appropriations Committees.

25* * *

26Section 1.2. The definitions of "applicant," "customer,"
27"payment agreement" and "public utility" in section 1403 of
28Title 66 are amended and the section is amended by adding
29definitions to read:

30§ 1403. Definitions.

1The following words and phrases when used in this chapter
2shall have the meanings given to them in this section unless the
3context clearly indicates otherwise:

4"Applicant." A natural person not currently receiving
5service who applies for residential service provided by a public
6utility or any adult occupant whose name appears on the
7mortgage, deed or lease of the property for which the
8residential utility service is requested. The term does not 
9include a person who, within 30 days after service termination 
10or discontinuance of service, seeks to have service reconnected 
11at the same location or transferred to another location within 
12the service territory of the public utility.

13* * *

14"Creditworthiness." An assessment of an applicant's or
15customer's ability to meet bill payment obligations for utility
16service.

17"Customer." A natural person in whose name a residential
18service account is listed and who is primarily responsible for
19payment of bills rendered for the service or any adult occupant
20whose name appears on the mortgage, deed or lease of the
21property for which the residential utility service is requested.
22The term includes a person who, within 30 days after service 
23termination or discontinuance of service, seeks to have service 
24reconnected at the same location or transferred to another 
25location within the service territory of the public utility.

26* * *

27"Medical Certificate." A written document, in a form
28approved by the commission:

29(1) certifying that a customer or member of the
30customer's household is seriously ill or <-afflicted with a

1medical condition which will be aggravated by cessation of
2service <-has been diagnosed with a medical condition which
3requires the continuation of service to treat the medical
4condition; and

5(2) signed by a licensed physician, nurse practitioner 
6or physician's assistant.

7* * *

8"Payment [agreement] arrangement." An agreement whereby a
9customer who admits liability for billed service is permitted to
10amortize or pay the unpaid balance of the account in one or more
11payments.

12"Public utility." Any electric distribution utility, natural
13gas distribution utility, small natural gas distribution 
14utility, steam heat utility, wastewater utility or water
15distribution utility in this Commonwealth that is within the
16jurisdiction of the Pennsylvania Public Utility Commission.

17* * *

18"Small natural gas distribution utility." A public utility
19providing natural gas distribution services subject to the
20jurisdiction of the commission that:

21(1) has annual gas operating revenues of less than
22$6,000,000 per year; or

23(2) is not connected to an interstate gas pipeline by
24means of a direct connection or any indirect connection
25through the distribution system of another natural gas public
26utility or through a natural gas gathering system.

27"Steam heat utility." An entity producing, generating,
28distributing or furnishing steam for the production of heat or
29to or for the public for compensation.

30"Wastewater utility." An entity owning or operating

1equipment or facilities for the collection, treatment or
2disposal of sewage to or for the public for compensation. The
3term includes separate companies that individually provide water
4or wastewater service so long as the separate companies are
5wholly owned by a common parent company.

6* * *

7Section 2. <-Sections Section 1404(a) introductory paragraph,
8(1)(v), (2) and (3), (c)(1) and (6), (e) and (h)<-, 1405 heading, 
9(a), (b) introductory paragraph and (2), (c), (d), (e) and (f)
10of Title 66 are amended <-and the section is amended by adding a 
11subsection to read:

12§ 1404. Cash deposits and household information requirements.

13(a) General rule.--In addition to the right to collect a
14deposit under any commission regulation or order, the commission
15shall not prohibit a public utility, [prior to or as a condition
16of providing utility service,] from requiring a cash deposit, 
17payable during a 90-day period in accordance with commission 
18regulations, in an amount that is equal to one-sixth of the
19applicant's estimated annual bill, at the time the public
20utility determines a deposit is required, from the following:

21(1) An applicant who previously received utility
22distribution services and was a customer of the public
23utility and whose service was terminated for any of the
24following reasons:

25* * *

26(v) Failure to comply with the material terms of a
27settlement or payment [agreement] arrangement.

28* * *

29(2) Any applicant or customer who is unable to establish
30creditworthiness to the satisfaction of the public utility

1through the use of a generally accepted credit scoring
2methodology, as provided in a commission approved tariff, and
3which employs standards for using the methodology that fall
4within the range of general industry practice.

5(3) A customer who fails to comply with a material term
6or condition of a settlement or payment [agreement]
7arrangement.

<-8(a.1) Cash deposit prohibition.--Notwithstanding subsection
9(a) no public utility may require a customer or applicant that
10is confirmed to be eligible for a customer assistance program to
11provide a cash deposit.

12* * *

13(c) Deposit hold period.--

14(1) A public utility may hold a deposit until a timely
15payment history is established [or for a maximum period of 24
16months].

17* * *

18(6) The public utility shall accrue interest on the
19deposit until it is returned or credited [the legal rate of
20interest pursuant to section 202 of the act of January 30, 
211974 (P.L.13, No.6), referred to as the Loan Interest and 
22Protection Law, and return such interest with the deposit].

23(i) Interest shall be computed at the simple annual
24interest rate determined by the Secretary of Revenue for
25interest on the underpayment of tax under section 806 of
26the act of April 9, 1929 (P.L.343, No.176), known as The
27Fiscal Code.

28(ii) The interest rate in effect when deposit is
29required to be paid shall remain in effect until the
30later of:

1(A) the date the deposit is refunded or
2credited; or

3(B) December 31.

4(iii) On January 1 of each year, the new interest 
5rate for that year will apply to the deposit. 

6* * *

7(e) Failure to pay full amount of cash deposit.--A public
8utility shall not be required to provide service if the
9applicant or customer fails to pay the full amount of the cash
10deposit within the time period under subsection (a).

11* * *

12(h) Time for paying deposits upon reconnection.--Applicants 
13and customers required to pay a deposit upon reconnection under 
14subsection (a)(1) shall have up to 90 days to pay the deposit in 
15accordance with commission regulations.

<-16Section 2.1. Section 1405 heading, (a), (b) introductory
17paragraph and (2), (c), (d), (e) and (f) of Title 66 are amended
18to read:

19§ 1405. Payment [agreements] arrangements.

20(a) General rule.--The commission is authorized to
21investigate complaints regarding payment disputes between a
22public utility, applicants and customers. The commission is
23authorized to establish payment [agreements] arrangements
24between a public utility, customers and applicants within the
25limits established by this chapter.

26(b) Length of payment [agreements] arrangements.--The length
27of time for a customer to resolve an unpaid balance on an
28account that is subject to a payment [agreement] arrangement
29that is investigated by the commission and is entered into by a
30public utility and a customer shall not extend beyond:

1* * *

2(2) [Two] Three years for customers with a gross monthly
3household income level exceeding 150% and not more than 250%
4of the Federal poverty level.

5* * *

6(c) Customer assistance programs.--Customer assistance
7program rates shall be timely paid and shall not be the subject
8of payment [agreements] arrangements negotiated or approved by
9the commission.

10(d) Number of payment [agreements] arrangements.--Absent a
11change in income, the commission shall not establish or order a
12public utility to establish a second or subsequent payment
13[agreement] arrangement if a customer has defaulted on a
14previous payment [agreement] arrangement established by a 
15commission order or decision. A public utility may, at its
16discretion, enter into a second or subsequent payment
17[agreement] arrangement with a customer.

18(e) Extension of payment [agreements] arrangements.--If the
19customer defaults on a payment [agreement] arrangements
20established under subsections (a) and (b) as a result of a
21significant change in circumstance, the commission may reinstate
22the payment [agreement] arrangement and extend the remaining
23term for an initial period of six months. The initial extension
24period may be extended for an additional six months for good
25cause shown.

26(f) Failure to comply with payment [agreement] 
27arrangement.--Failure of a customer to comply with the terms of 
28a payment [agreement] arrangement shall be grounds for a public 
29utility to terminate the customer's service. Pending the outcome 
30of a complaint filed with the commission, a customer shall be
 

1obligated to pay that portion of the bill which is not in 
2dispute and subsequent bills which are not in dispute.

3Section 3. Section 1406(a)(2), (b)(1)(ii), (d), (f), (g) and
4(h)(1) of Title 66 are amended and subsection (c)(1) is amended
5by adding a subparagraph to read:

6§ 1406. Termination of utility service.

7(a) Authorized termination.--A public utility may notify a
8customer and terminate service provided to a customer after
9notice as provided in subsection (b) for any of the following
10actions by the customer:

11* * *

12(2) Failure to comply with the material terms of a
13payment [agreement] arrangement.

14* * *

15(b) Notice of termination of service.--

16(1) Prior to terminating service under subsection (a), a
17public utility:

18* * *

19(ii) Shall attempt to contact the customer or
20occupant[, either in person or by telephone, to provide
21notice of the proposed termination at least three days
22prior to the scheduled termination.] to provide notice of 
23the proposed termination at least three days prior to the 
24scheduled termination using one or more of the following 
25methods:

26(A) in person;

27(B) by telephone. Phone contact shall be deemed
28complete upon attempted calls on two separate days to
29the residence between the hours of [7] 8 a.m. and 9
30p.m. if the calls were made at various times each

1day[.]; or

2(C) by email, text message or other electronic
3messaging format<-, if the customer consented to be
4contacted using the method. <-consistent with the
5commission's privacy guidelines and approved by
6commission order.

7(D) In the case of electronic notification only,
8the customer must affirmatively consent to be
9contacted using a specific electronic messaging
10format, for purpose of termination.

11* * *

12(c) Grounds for immediate termination.--

13(1) A public utility may immediately terminate service
14for any of the following actions by the customer:

15* * *

16(v) Tendering payment for reconnection of service
17that is subsequently dishonored, revoked, canceled or
18otherwise not authorized under subsection (h)<-. and which
19has not been cured or otherwise made full payment within
20three business days of the utility's notice to the
21customer, made in accordance with the notice provisions
22of subsection (b)(1)(ii), of the dishonored payment.

23* * *

24(d) Timing of termination.--

<-25(1) Notwithstanding the provisions of section 1503
26(relating to discontinuance of service), a public utility may
27terminate service for the reasons set forth in subsection (a)
28from Monday through [Friday] Thursday as long as the public
29utility can accept payment to restore service on the
30following day and can restore service consistent with section

11407 (relating to reconnection of service).

<-2(2) A public utility may terminate service on a Friday
3as long as the public utility is able to:

4(i) accept payment to restore service until 12 p.m.
5on a Saturday; and

6(ii) restore service by 6 p.m. on that day.

7* * *

8(f) Medical certification.--A public utility shall not
9terminate service to a premises when [a licensed physician or
10nurse practitioner has certified that the customer or a member
11of the customer's household is seriously ill or afflicted with a
12medical condition that will be aggravated by cessation of
13service] a customer has submitted a medical certificate to the 
14public utility. The customer shall obtain a [letter from a
15licensed physician] medical certificate verifying the condition
16and shall promptly forward it to the public utility. The medical
17certification procedure shall be implemented in accordance with
18commission regulations.

19(g) Qualification for LIHEAP.--A notice of termination to a
20customer of a public utility shall be sufficient proof of a
21crisis for a customer with the requisite income level to receive
22a LIHEAP Crisis Grant from the Department of Public Welfare or
23its designee as soon as practicable after the date of the 
24notice. Termination of service is not necessary to demonstrate 
25sufficient proof of crisis.

26(h) Dishonorable tender of payment after receiving
27termination notice.--

28(1) After a public utility has provided a written
29termination notice under subsection (b)(1)(i) and attempted
30telephone contact as provided in subsection (b)(1)(ii),

1termination of service may proceed without additional notice
2if:

3(i) a customer tenders payment which is subsequently 
4dishonored under 13 Pa.C.S. § 3502 (relating to 
5dishonor); [or]

6(ii) a customer tenders payment with an access 
7device, as defined in 18 Pa.C.S. § 4106(d) (relating to 
8access device fraud), which is unauthorized, revoked or 
9canceled[.]; or

10(iii) a customer tenders payment electronically that
11is subsequently dishonored, revoked, canceled or is
12otherwise not authorized<-. and which has not been cured or
13otherwise made full payment within three business days of
14the utility's notice to the customer, made in accordance
15with the notice provisions of subsection (b)(1)(ii), of
16the dishonored payment.

17Section 4. Section 1407(c)(2)(i) <-introductory paragraph of 
18Title 66 is amended and subsections (b) and (c) are amended by 
19adding paragraphs <-of Title 66 is amended and subsection (c) is 
20amended by adding a paragraph to read:

21§ 1407. Reconnection of service.

22* * *

<-23(b) Timing.--When service to a dwelling has been terminated
24and provided the applicant has met all applicable conditions,
25the public utility shall reconnect service as follows:

26* * *

27(6) By 6 p.m. on a Saturday for a Friday termination
28under section 1406(d)(2) (relating to termination of utility
29service).

30(c) Payment to restore service.--

1* * *

2(2) A public utility may require:

3(i) Full payment of any outstanding balance incurred
4together with any reconnection fees by the customer or
5applicant prior to reconnection of service if the
6customer or applicant has an income exceeding 300% of the
7Federal poverty level or has defaulted on two or more
8payment [agreements] arrangements. If a customer or
9applicant with household income exceeding 300% of the
10Federal poverty level experiences a life event, the
11customer shall be permitted a period of not more than
12three months to pay the outstanding balance required for
13reconnection. For purposes of this subparagraph, a life
14event is:

15* * *

16(3) Payment tendered by a customer to reconnect service
17that is subsequently dishonored, revoked, canceled or is
18otherwise not authorized under section 1406(h)(1) <-and which 
19has not been cured or otherwise made full payment within 
20three business days of the utility's notice to the customer, 
21made in accordance with the notice provisions of section 
221406(b)(1)(ii), of the dishonored payment is grounds for
23immediate termination under section 1406(c). A public utility
24may require a customer or applicant to cure a dishonored
25payment, as provided for in section 1406(h) as a condition of
26entering into a payment agreement with the customer or
27applicant for a remaining account balance.

28* * *

29Section 5. Sections 1409 and 1410 of Title 66 are amended to
30read:

1§ 1409. Late payment charge waiver.

2A public utility [may<-] shall waive late payment charges on
3any customer accounts if the charges were improperly assessed.
4The commission may [only] order a waiver of any late payment
5charges levied by a public utility as a result of a delinquent
6account for customers with a gross monthly household income not
7exceeding 150% of the Federal poverty level.

8§ 1410. Complaints filed with commission.

9The following apply:

10(1) The commission shall accept formal and informal 
11complaints only from customers or applicants who affirm that
12they have first contacted the public utility for the purpose
13of resolving the problem about which the customer wishes to
14file a complaint. If the customer has not contacted the
15public utility, the commission shall direct the customer to
16the public utility.

17(2) Pending the outcome of a formal or informal 
18complaint filed with the commission, the customer shall be
19obligated to pay that portion of the bill which is not in
20dispute and subsequent bills which are not in dispute.

21(3) For a formal complaint filing to be valid, the 
22customer [needs to] or applicant must provide a statement 
23attesting to the truth as to the facts alleged in the 
24complaint. All testimony in formal complaint proceedings must 
25be under oath.

26Section 6. Title 66 is amended by adding a section to read:

27§ 1410.1. Public utility duties.

28When a customer or applicant contacts a public utility to
29make a payment agreement as required by section 1410 (relating
30to complaints filed with commission), the public utility shall:

1(1) provide information about the public utility's
2universal service programs, including a customer assistance
3program; and

4(2) refer the customer or applicant to the universal
5service program administrator of the public utility to
6determine eligibility for a program and to apply for
7enrollment in a program.

<-8(3) The public utility shall have an affirmative
9responsibility to attempt to collect payment on an overdue
10account. The utility shall report to the commission annually
11residential customer accounts which have accumulated $10,000
12or more in arrearages and shall demonstrate what efforts are
13being taken to collect the arrearages. Failure to make
14reasonable attempts to collect payments on overdue accounts
15with arrearages in excess of $10,000 may result in civil
16fines or other appropriate sanctions by the commission.

17(4) The public utility shall report to the commission on
18an annual basis the number of medical certificates and
19renewals submitted and accepted in the service territory.

20Section 7. Sections 1411, 1415 introductory paragraph, 1417
21and 1418 of Title 66 are amended to read:

22§ 1411. Automatic meter readings.

23All readings by an automatic meter reader device shall be
24deemed actual readings for the purposes of this title. Upon a 
25customer request, the public utility shall secure an in-person 
26meter reading to confirm the accuracy of an automatic meter 
27reading device when a customer disconnects service or a new 
28service request is received. A public utility may charge a fee, 
29as provided in a commission-approved tariff.

30§ 1415. Reporting to General Assembly and Governor.

1No later than [two] five years following the effective date
2of this chapter and every [two] five years thereafter, the
3commission shall submit a report to the Governor, the Chief
4Clerk of the House of Representatives and the Secretary of the
5Senate reviewing the implementation of the provisions of this
6chapter. The report shall include, but not be limited to:

7* * *

8§ 1417. Nonapplicability.

9This chapter shall not apply to victims under a protection
10from abuse order as provided by 23 Pa.C.S. Ch. 61 (relating to 
11protection from abuse) <-or legally equivalent order issued by a 
12court of competent jurisdiction in this Commonwealth. <-or a court 
13order issued by a court of competent jurisdiction in this 
14Commonwealth, which provides clear evidence of domestic violence 
15against the applicant or customer.

16§ 1418. Construction.

17Nothing in this chapter shall affect any rights or procedure 
18under the act of November 26, 1978 (P.L.1255, No.299), known as 
19the Utility Service Tenants Rights Act or the provisions of 
20Subchapter B of Chapter 15 (relating to discontinuance of 
21service to leased premises).

<-22Section 8. Title 66 is amended by adding a section to read:

23§ 1419. Expiration.

24This chapter shall expire December 31, 2024.

25Section 9. Sections 2208 and 2809 of Title 66 are amended by
26adding subsections to read:

27§ 2208. Requirements for natural gas suppliers.

28* * *

29(h) Annual fees.--The commission may establish, by order or
30rule, on a reasonable cost basis, fees to be charged for annual

1activities related to the oversight of natural gas suppliers.

2§ 2809. Requirements for electric generation suppliers.

3* * *

4(g) Annual fees.--The commission may establish, by order or
5rule, on a reasonable cost basis, fees to be charged for annual
6activities related to the oversight of electric generation
7suppliers.

8Section <-8 10. This act shall take effect in 60 days.