PRINTER'S NO. 2029
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1789
Session of
2021
INTRODUCED BY SANKEY, RYAN, JOZWIAK, ROWE, STRUZZI, MOUL,
B. MILLER, ORTITAY AND SAYLOR, AUGUST 12, 2021
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, AUGUST 12, 2021
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in natural gas competition, further
providing for standards for restructuring of natural gas
utility industry, for consumer protections and customer
service and for requirements for natural gas suppliers; and,
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
industry.
The following interdependent standards shall govern the
commission's actions in adopting rules, orders or policies and
in reviewing, assessing and approving each natural gas
distribution company's restructuring filings and overseeing the
transition process and regulation of the restructured natural
gas utility industry:
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* * *
(3.1) The commission shall require, by order or
regulation to be issued within 210 days of the effective date
of this paragraph, that each natural gas distribution company
account for all costs associated with providing supplier of
last resort service that are currently included in
distribution rates and ensure that the appropriate level of
the costs are assigned or allocated to and 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 service and account management costs, working
capital, overheads, including executive salaries and
benefits, office building, rent and information technology
costs, legal and financial costs and labor costs. To the
extent any of these costs are indirect costs to pay for
services that support both distribution customers and
supplier of last resort customers, the commission shall
require an appropriate proportion of those indirect costs be
allocated to supplier of last resort. For the purpose of this
paragraph, the provision of supplier of last resort service
shall be treated as an affiliate of the natural gas
distribution company. 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 commission shall
adopt rate mechanisms to ensure that the natural gas
distribution companies recover fully their allowed
distribution costs. The unbundling and reallocation shall be
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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 unbundling and, after the filing, may commence a
proceeding where the unbundling is accomplished. After the
initial allocation, changes shall be permitted only in a
general rate 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.
* * *
Section 2. Section 2206(b) of Title 66 is amended to read:
§ 2206. Consumer protections and customer service.
* * *
(b) Change of suppliers.--
(1) The commission shall, by order or regulation,
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.
(2) The commission shall promulgate regulations to
ensure that a natural gas distribution company processes a
change in natural gas supplier by using either the customer
account number or other personally identifiable information.
When promulgating the regulations, the commission shall
consider whether a customer has multiple accounts. A customer
who consents to a change of natural gas supplier shall not be
required to provide a natural gas distribution company
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account number or other identification number if the customer
provides a valid government-issued identification or
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.--
(1) The commission shall develop a training and
educational program for any entity or individual that is
licensed by the commission under this section as a natural
gas supplier.
(2) The commission shall develop the program in
consultation with interested stakeholders, including natural
gas suppliers.
(3) The program shall require that a designated
representative of each licensed natural gas supplier
demonstrate a thorough understanding of the commission's
regulations regarding sales, consumer protection and any
other matter the commission deems appropriate through an
online training program.
(4) At the conclusion of the training, the commission
shall conduct an online examination and, on a satisfactory
score, certify that the designated representative of the
licensed natural gas supplier has successfully completed the
training.
(5) The commission shall determine the schedule and
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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.
(6) The commission may adopt regulations that include
appropriate penalties or sanctions for failure to comply with
this subsection.
(7) The commission shall use the assessments collected
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.
Section 4. Section 2804 of Title 66 is amended by adding a
paragraph to read:
§ 2804. Standards for restructuring of electric industry.
The following interdependent standards shall govern the
commission's assessment and approval of each public utility's
restructuring plan, oversight of the transition process and
regulation of the restructured electric utility industry:
* * *
(3.1) The commission shall require, by order or
regulation to be issued within 210 days of the effective date
of this paragraph, that each electric distribution company
account for all costs associated with providing supplier of
last resort service that are currently included in
distribution rates and ensure that the appropriate level of
the costs are assigned or allocated to and recovered in
supplier of last resort rates. The specific costs to be
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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 executive salaries and
benefits, office building, rent and information technology
costs, legal and financial costs and labor costs. To the
extent any of these costs are indirect costs to pay for
services that support both distribution customers and
supplier of last resort customers, the commission shall
require an appropriate proportion of those indirect costs be
allocated to supplier of last resort. For the purpose of this
paragraph, the provision of supplier of last resort service
shall be treated as an affiliate of the electric distribution
company . 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 commission shall adopt rate
mechanisms to ensure that the electric distribution companies
recover fully their allowed distribution costs. 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 to effectuate unbundling and, after
the filing, may commence a proceeding where the unbundling is
accomplished. After the initial allocation, changes shall be
permitted only in a general rate case. If the commission
finds it necessary to do so, the commission may establish a
mandatory schedule for the filing information and the
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unbundling proceedings required by this paragraph.
* * *
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
promulgate 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. When promulgating the regulations, the
commission shall consider whether a customer has multiple
accounts. A customer who consents to a change of electric
generation supplier shall not be required to provide an electric
distribution company account number or other identification
number if the customer provides a valid government-issued or
alternative form of identification as determined by the
commission.
* * *
§ 2809. Requirements for electric generation suppliers.
* * *
(h) Training and education program requirements for electric
generation suppliers.--
(1) The commission shall develop a training and
educational program for any entity or individual that is
licensed by the commission under this section as an electric
generation supplier.
(2) The commission shall develop the program in
consultation with interested stakeholders, including electric
generation suppliers.
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(3) The program shall require that a designated
representative of each licensed electric generation supplier
demonstrate a thorough understanding of the commission's
regulations regarding sales, consumer protection and any
other matter the commission deems appropriate through an
online training program.
(4) At the conclusion of the training, the commission
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.
(5) The commission shall determine the schedule and
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
new electric generation supplier until a designated
representative of the new electric generation supplier
completes the training and certification.
(6) The commission may adopt regulations that include
appropriate penalties or sanctions for failure to comply with
this subsection.
(7) The commission shall use the assessments collected
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.
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