PRINTER'S NO. 1853
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1578
Session of
2023
INTRODUCED BY MULLINS, MADDEN, GALLAGHER, FREEMAN, MALAGARI,
SANCHEZ, STURLA, MADSEN, KIM AND GREEN, JULY 18, 2023
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
UTILITIES, JULY 18, 2023
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in natural gas competition, further
providing for requirements for natural gas suppliers; and, in
restructuring of electric utility industry, further providing
for requirements for electric generation suppliers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 2208(c)(1)(i) and 2809(c)(1) of Title 66
of the Pennsylvania Consolidated Statutes are amended and the
sections are amended by adding subsections to read:
§ 2208. Requirements for natural gas suppliers.
* * *
(c) Financial fitness.--
(1) In order to ensure the safety and reliability of the
natural gas supply service in this Commonwealth, no natural
gas supplier license shall be issued or remain in force
unless the applicant or holder, as the case may be, complies
with all of the following:
(i) Furnishes a bond or other security in a form and
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amount to ensure the financial responsibility of the
natural gas supplier. The criteria each natural gas
distribution company shall use to determine the amount
and form of such bond or other security shall be set
forth in the natural gas distribution company's
restructuring filing. In approving the criteria,
commission considerations shall include, but not be
limited to, the financial impact on the natural gas
distribution company or an alternative supplier of last
resort of a default or subsequent bankruptcy of a natural
gas supplier. The commission shall periodically review
the criteria upon petition by any party. The amount and
form of the bond or other security may be mutually agreed
to between the natural gas distribution company or the
alternate supplier of last resort and the natural gas
supplier or, failing that, shall be determined by
criteria approved by the commission. A natural gas
supplier engaging in person-to-person sales of natural
gas at a residence of a retail residential class gas
customer shall furnish a bond or other security with the
commission in the amount of $1,000,000. The bond or
security required for a natural gas supplier engaging in
person-to-person sales of natural gas at a residence of a
retail gas customer shall be in addition to the bond or
security required by the commission and conform with any
other bonding and security requirements for a company
licensed in this Commonwealth to write surety types of
insurance. For the purpose of this subparagraph, a
person-to-person sale at a residence shall not include a
transaction at a residence in which there was a
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prearranged meeting between a retail gas customer and
natural gas supplier.
* * *
(i) Training and education program requirements.--
(1) The commission shall develop a training and
education program for an entity licensed by the commission to
engage in the business of 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 a 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 online training.
(4) At the conclusion of the training under paragraph
(3), the commission shall conduct an online examination for a
designated representative of a natural gas supplier and, upon
achieving a score satisfactory to the commission, certify
that the designated representative has successfully completed
the training.
(5) The commission shall determine the schedule and
frequency by which a designated representative of a natural
gas supplier shall complete the program. The commission may
not issue a new natural gas supplier license to an applicant
until a designated representative of the natural gas supplier
completes the program.
(6) The commission may adopt regulations as necessary to
implement this subsection, including appropriate penalties or
sanctions for failure to comply with this subsection.
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(7) The commission shall use the assessments and fees
received, collected or recovered under this part for the
initial development of the program. The commission may
establish, by order or rule, on a reasonable cost basis, fees
to fund the program as authorized under subsection (h).
§ 2809. Requirements for electric generation suppliers.
* * *
(c) Financial responsibility.--
(1) In order to ensure the safety and reliability of the
generation of electricity in this Commonwealth, no energy
supplier license shall be issued or remain in force unless
the holder complies with all of the following:
(i) Furnishes a bond or other security approved by
the commission in form and amount to ensure the financial
responsibility of the electric generation supplier and
the supply of electricity at retail in accordance with
contracts, agreements or arrangements. An electric
generation supplier engaging in person-to-person sales of
electricity at a residence of a retail residential class
customer shall furnish a bond or other security with the
commission in the amount of $1,000,000. The bond or
security required for an electric generation supplier
engaging in person-to-person sales of electricity at a
residence of a retail customer shall be in addition to
the bond or security required by the commission and
conform with any other bonding and security requirements
for a company licensed in this Commonwealth to write
surety types of insurance. For the purpose of this
subparagraph, a person-to-person sale at a residence
shall not include a transaction at a residence in which
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there was a prearranged meeting between a retail customer
and an electric generation supplier.
(ii) Certifies to the commission that it will pay
and in subsequent years has paid the full amount of taxes
imposed by Articles II and XI of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, and
any tax imposed by this chapter.
(iii) Provides the commission with the address of
the participant's principal office in this Commonwealth
or the address of the participant's registered agent in
this Commonwealth, the latter being the address at which
the participant may be served process.
(iv) Agrees that it shall be subject to all taxes
imposed by the Tax Reform Code of 1971 and any tax
imposed by this chapter.
Failure of an electricity supplier to pay a tax or post a
bond or other security referred to in this paragraph or to
otherwise comply with the provisions of this paragraph shall
be cause for the commission to revoke the license of the
electricity supplier.
* * *
(h) Training and education program requirements.--
(1) The commission shall develop a training and
education program for an entity licensed by the commission to
engage in the business of an electric generation supplier.
(2) The commission shall develop the program in
consultation with interested stakeholders, including electric
generation suppliers.
(3) The program shall require that a designated
representative of an electric generation supplier demonstrate
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a thorough understanding of the commission's regulations
regarding sales, consumer protection and any other matter the
commission deems appropriate through online training.
(4) At the conclusion of the training under paragraph
(3), the commission shall conduct an online examination for a
designated representative of an electric generation supplier
and, upon achieving a score satisfactory to the commission,
certify that the designated representative has successfully
completed the training.
(5) The commission shall determine the schedule and
frequency by which a designated representative of an electric
generation supplier shall complete the program. The
commission may not issue a new electric generation supplier
license to an applicant until a designated representative of
the electric generation supplier completes the program.
(6) The commission may adopt regulations as necessary to
implement this subsection, including appropriate penalties or
sanctions for failure to comply with this subsection.
(7) The commission shall use the assessments and fees
received, collected or recovered under this part for the
initial development of the program. The commission may
establish, by order or rule, on a reasonable cost basis, fees
to fund the program as authorized under subsection (g).
Section 2. This act shall take effect as follows:
(1) The addition of 66 Pa.C.S. §§ 2208(i) and 2809(h)
shall take effect in 180 days.
(2) The remainder of this act shall take effect
immediately.
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