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

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

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

8CHAPTER 28-A

9RETAIL ELECTRIC CONSUMER PROTECTION

10Sec.

112801-A. Scope of chapter.

122802-A. Definitions.

132803-A. Variable rate product contract terms.

142804-A. Fixed rate product contract terms.

152805-A. Contract provisions.

162806-A. Variable rate changes.

12807-A. Variable rate and fixed product rates.

22808-A. Contract formation.

32809-A. Duties of electric generation suppliers and electric
4distribution companies.

52810-A. Consumer education information.

6§ 2801-A. Scope of chapter.

7This chapter relates to retail electric consumer protection.

8§ 2802-A.  Definitions.

9The following words and phrases when used in this chapter
10shall have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Cancellation fee or early termination fee." An amount
13specified in a contract that permits an electric generation
14supplier to assess and collect a fee or other similar charge
15from a residential or small commercial customer who terminates a
16contract before the end of the contract term, regardless of:

17(1) how the fee or other similar charge is identified in
18the contract; or

19(2) whether or not the fee or other similar charge is
20fixed or subject to calculation based on market factors.

21"Contract." The terms and conditions of service provided by
22an electric generation supplier.

23"Default service provider."  An electric distribution company
24within its certified service territory or an alternative
25supplier approved by the commission that provides generation
26service to retail electric customers who:

27(1)  contract for electric power, including energy and
28capacity, and the chosen electric generation supplier does
29not supply the service; or

30(2)  do not choose an alternative electric generation

1supplier.

2"Electric distribution company." A public utility that
3provides facilities for the jurisdictional transmission and
4distribution of electricity to retail customers, except building
5or facility owners or operators that manage the internal
6distribution system serving a building or facility and that
7supply electric power and other related electric power services
8to occupants of the building or facility.

9"Electric generation supplier." A person or corporation,
10including a municipal corporation that chooses to provide
11service outside the municipal corporation's municipal limits,
12except to the extent provided before January 1, 1997, brokers
13and marketers, aggregators or any other entity, that sells to
14end-use customers electricity or related services utilizing the
15jurisdictional transmission or distribution facilities of an
16electric distribution company or that purchases, brokers,
17arranges or markets electricity or related services for sale to
18end-use customers utilizing the jurisdictional transmission and
19distribution facilities of an electric distribution company. The
20term does not include an electric distribution company or any of
21the following:

22(1) A building or facility owner or operator that
23manages the internal distribution system serving the building
24or facility and that supplies electric power and other
25related power services to occupants of the building or
26facility.

27(2) An electric cooperative corporation, except as
28provided in 15 Pa.C.S. Ch. 74 (relating to generation choice
29for customers of electric cooperatives).

30(3) A default service provider.

1"Fixed rate product." A retail electric generation product
2when the rate charged per kilowatt hour for each billing period
3of the contract term is the same.

4"Residential customer."  Any of the following:

5(1) An individual:

6(i) who enters into a contract to receive service
7from an electric generation supplier;

8(ii) whose name is listed on a residential service
9account; and

10(iii) who is primarily responsible for payment of
11bills rendered for the service.

12(2) An occupant of a residence receiving service who is
1318 years of age or older and whose name appears on the
14mortgage, deed or lease of the residence.

15"Small commercial customer." A nonresidential customer who
16enters into a contract to receive electric generation service
17from an electric generation supplier and has a peak demand of
18less than 50 kilowatts during any 12-month period.

19"Switch." The transfer of a residential or small commercial
20customer from any of the following:

21(1) An electric generation supplier's service to another
22electric generation supplier's service.

23(2) A default service provider's service to an electric
24generation supplier's service.

25(3) An electric generation supplier's service to a
26default service provider's service.

27"Variable rate product." A retail electric generation
28product for which the rate may vary based upon fluctuations in
29wholesale electric market prices.

30§ 2803-A. Variable rate product contract terms.

1(a) Contract duration.--A contract for a variable rate
2product offered by an electric generation supplier to a
3residential or small commercial customer may be for a term of no
4less than six months.

5(b) Fees prohibited.--A contract under subsection (a) may
6not contain a cancellation fee or an early termination fee.

7§ 2804-A. Fixed rate product contract terms.

8(a) Contract duration.--A contract for a fixed rate product
9offered by an electric generation supplier to a residential or
10small commercial customer may not be for a term of less than 12
11months.

12(b) Fees prohibited.--A contract for a fixed rate product
13for a term of less than 24 months offered by an electric
14generation supplier to a residential or small commercial
15customer may not contain a cancellation fee or an early
16termination fee.

17(c) Contract expiration.--

18(1) Upon the expiration of a contract for a fixed rate
19product, an electric generation supplier may not switch a
20residential or small commercial customer to a contract for a
21variable rate product.

22(2) The electric generation supplier shall provide
23service to a residential or small commercial customer whose
24contract for a fixed rate product has expired at the fixed
25rate posted on the PA Power Switch Internet website on the
26date when the contract expired.

27(3) The electric generation supplier shall charge the
28rate under paragraph (2) until the earliest of the following:

29(i) the customer enters into a new contract;

30(ii) the customer switches to another electric

1generation supplier; or

2(iii) the customer returns to a default service
3provider's service.

4§ 2805-A. Contract provisions.

5(a) General rule.--An electric generation supplier shall
6include the following provisions in no less than 12-point font
7in a contract for a variable rate product or fixed rate product:

8(1) The name, address, toll-free telephone number,
9mailing address, e-mail address, Internet website and
10commission certification number of the electric generation
11supplier.

12(2) The rate applicable to the contract term.

13(3) The expiration date of the contract.

14(4) A statement in all capital letters that authorizes
15the customer to rescind the contract within three business
16days of receipt of the contract without incurring a
17cancellation fee or an early termination fee.

18(b) Mailbox rule.--A contract provided to a customer via
19first class mail shall be deemed received by the customer within
20three business days of being placed in the mail.

21(c) Variable rate product contracts.--An electric generation
22supplier shall include the following provisions in no less than
2312-point font in a contract for a variable rate product:

24(1) An explanation of the method or formula used to
25calculate rates for a variable rate product.

26(2) A statement specifying that variable rates are
27subject to change.

28(3) An Internet website or toll-free telephone number
29that a customer may call for current variable rate product
30pricing information.

1(d) Fee provisions.--An electric generation supplier shall
2include the amount and terms of a cancellation or early
3termination fee in no less than 12-point font in a contract for
4a fixed rate product with a term of more than 24 months.

5§ 2806-A. Variable rate changes.

6(a) Limitations on rate changes.--The kilowatt hour rate
7charged to a residential or small commercial customer under a
8contract for a variable rate product may not be increased:

9(1) More than once every six months.

10(2) More than 100% of the rate charged during the
11preceding six-month period.

12(b) Basis of changes.--An adjustment in the rate must be
13based upon fluctuations in wholesale electric prices and the
14actual costs incurred by an electric generation supplier to
15provide service.

16§ 2807-A. Variable and fixed product rates.

17(a) Rate notice.--

18(1) No less than once every 30 days, an electric
19generation supplier offering service to residential or small
20commercial customers shall post the current rate for each
21variable rate and fixed rate product on the PA Power Switch
22Internet website and shall provide the rate information via a
23toll-free telephone number.

24(2) Upon request by a residential or small commercial
25customer, the electric generation supplier shall provide the
26current rate for each variable rate and fixed rate product in
27writing to the customer. The rate shall be contained in the
28electric generation supplier's marketing and sales materials,
29including telephone solicitations.

30(b) Charge prohibition.--A rate posted under subsection (a)

1may not be an introductory or promotional rate. An electric
2generation supplier may not charge a new residential and small
3commercial customer more than the rate posted under subsection
4(a) at the time the contract is formed.

5(c) Rate history.--

6(1) No later than January 30 of each year, an electric
7generation supplier offering service to residential or small
8commercial customers shall post a one-year price history for
9each variable rate and fixed rate product for the preceding
10year, or a history of each product offered for less than one
11year, on the PA Power Switch Internet website and the
12electric generation supplier's Internet website.

13(2) Upon request by a residential or small commercial
14customer, the electric generation supplier shall provide the
15price history as required under paragraph (1) in writing to
16the customer.

17§ 2808-A. Contract formation.

18An electric generation supplier may not provide service to a
19residential or small commercial customer without the customer's
20written signature on a contract, authorization form or other
21form of verification as permitted by the commission to initiate
22service, renew service or switch service.

23§ 2809-A. Duties of electric generation suppliers and electric
24distribution companies.

25(a) Electric generation supplier.--An electric generation
26supplier shall have the following duties:

27(1) No later than one business day after a contract to
28initiate service, renew service or switch service is
29authorized to be formed under section 2808-A (relating to
30contract formation), send a copy of the contract to the

1customer. At the option of the customer, the electronic
2generation supplier shall provide the copy to the customer
3in-person, by first class mail or electronically.

4(2) No later than one business day after expiration of
5the three-day rescission period under section 2805-A 
6(relating to contract provisions), notify the electric
7distribution company of a switch request by the customer.

8(b) Electric distribution company.--No later than 14
9business days after receiving notice under subsection (a)(2),
10the electric distribution company shall process the switch
11request. The electric distribution company may recover the
12reasonable costs associated with processing the switching
13request.

14§ 2810-A. Consumer education information.

15(a) Information compilation.--The commission shall compile
16the following information:

17(1) A list of each electric generation supplier licensed
18by the commission.

19(2) The types of services offered by each electric
20generation supplier and the advantages and disadvantages of
21the services.

22(3) The number of customer complaints filed against each
23electric generation supplier and the disposition of the
24complaints.

25(4) Any information the commission determines will
26assist customers in making informed decisions when choosing
27an electric generation supplier.

28(b) Publication of information.--The commission shall post
29the information on the PA Power Switch Internet website and,
30upon request of a customer, make the information available in

1writing to the customer. The commission shall provide the
2information in a standard format that is easily understandable
3by a layperson.

4Section 2. This act shall take effect in 60 days.