PRINTER'S NO. 2095

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1365

Session of

2020

INTRODUCED BY PHILLIPS-HILL, J. WARD AND BLAKE, OCTOBER 19, 2020

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

OCTOBER 19, 2020

in restructuring of electric utility industry, further

providing for standards for restructuring of electric

industry, for duties of electric distribution companies and

for requirements for electric generation suppliers.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2203 of Title 66 of the Pennsylvania

Consolidated Statutes is amended by adding a paragraph to read:

§ 2203. Standards for restructuring of natural gas utility

regulation to be issued within 210 days of the effective date

of this paragraph, that each natural gas distribution company

unbundle all costs associated with providing supplier of last

resort service from distribution rates and ensure that the

appropriate level of the costs are recovered in supplier of

last resort rates. The specific costs to be unbundled shall

include, but not be limited to: commodity costs, capacity

costs, hedging costs whether financial or physical,

procurement costs, billing system and billing costs, customer

require an appropriate proportion of those indirect costs be

allocated to supplier of last resort. The intent of this

requirement is to ensure that the actual costs of providing

distribution and supplier of last resort service are

accurately reflected in the rates charged for those services.

The unbundling and reallocation shall be accomplished in the

utility's next rate case. If a natural gas distribution

company does not file a rate case within three years

following the effective date of this paragraph, the

commission may order the filing of information to effectuate

case. If the commission finds it necessary to do so, the

commission may establish a mandatory schedule for the filing

information and the unbundling proceedings required by this

paragraph.

* * *

(b) Change of suppliers.--

establish procedures to ensure that a natural gas

distribution company does not change a retail gas customer's

natural gas supplier without direct oral confirmation from

the customer of record or written evidence of the customer's

consent to a change of supplier.

that a natural gas distribution company processes a change in

alternative form of identification as determined by the

commission.

* * *

Section 3. Section 2208 of Title 66 is amended by adding a

subsection to read:

§ 2208. Requirements for natural gas suppliers.

* * *

(i) Training and education program requirements for natural

gas suppliers.--

educational program for any entity or individual that is

licensed by the commission under this section as a natural

gas supplier.

consultation with interested stakeholders, including natural

gas suppliers.

representative of each licensed natural gas supplier

score, certify that the designated representative of the

licensed natural gas supplier has successfully completed the

training.

frequency by which a designated representative of a licensed

natural gas supplier must complete the training and

certification. The commission may not issue a license to a

new natural gas supplier until a designated representative of

the new natural gas supplier completes the training and

certification.

in accordance with this part for the initial development of

the training and educational program. The commission may

establish reasonable fees, as authorized under paragraph (h),

to fund the training and educational program.

paragraph to read:

§ 2804. Standards for restructuring of electric industry.

The following interdependent standards shall govern the

of this paragraph, that each electric distribution company

unbundle all costs associated with providing default service

from distribution rates and ensure that the appropriate level

of the costs are recovered in default service or standard

offer service rates. The specific costs to be unbundled shall

include, but not be limited to: commodity costs, capacity

costs, hedging costs whether financial or physical,

procurement costs, billing system and billing costs, customer

service and account management costs, working capital,

overheads, including building and information technology

extent any of these costs are indirect costs to pay for

to default service. The intent of this requirement is to

ensure that the actual costs of providing distribution and

default service are accurately reflected in the rates charged

for those services. The unbundling and reallocation shall be

accomplished in the utility's next rate case. If an electric

distribution company does not file a rate case within three

years following the effective date of this paragraph, the

commission may order the filing of information in order to

effectuate unbundling and may, after the filing, commence a

proceeding where the unbundling is accomplished. After the

initial allocation, changes shall be permitted only in a

Section 5. Sections 2807 and 2809 of Title 66 are amended by

adding subsections to read:

§ 2807. Duties of electric distribution companies.

* * *

(f.1) Processing changes in suppliers.--The commission shall

establish regulations to ensure that an electric distribution

company processes a change in electric generation supplier by

using either the customer account number or other personally

identifiable information. A customer who consents to a change of

electric distribution company account number or other

* * *

§ 2809. Requirements for electric generation suppliers.

* * *

(h) Training and education program requirements for electric

generation suppliers.--

educational program for any entity or individual that is

licensed by the commission under this section as an electric

generation supplier.

consultation with interested stakeholders, including electric

online training program.

shall conduct an online examination and, on a satisfactory

score, certify that the designated representative of the

licensed electric generation supplier has successfully

completed the training.

frequency by which a designated representative of a licensed

electric generation supplier must complete the training and

certification. The commission may not issue a license to a

appropriate penalties or sanctions for failure to comply with

this subsection.

in accordance with this part for the initial development of

the training and educational program. The commission may

establish reasonable fees, as authorized under paragraph (g),

to fund the training and educational program.

Section 6. This act shall take effect in 60 days.