PRIOR PRINTER'S NOS. 1853, 3678
PRINTER'S NO. 3790
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
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 22, 2024
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, the
subsections are amended by adding paragraphs and the sections
are amended by adding subsections to read:
ยง 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:
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(i) Furnishes a bond or other security in a form and
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 TO RESIDENTIAL CUSTOMERS 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 TO
RESIDENTIAL CUSTOMERS 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
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person-to-person sale at a residence shall not include a
transaction at a residence in which there was a
prearranged meeting between a retail gas customer and
natural gas supplier.
* * *
(3) In addition to any other remedy specified under the
laws of this Commonwealth, the commission may direct the
payment of a refund, including interest, to a retail gas
RESIDENTIAL customer for violation by a natural gas supplier
of the provisions of this chapter PARAGRAPH (1)(I) . As a
condition for the issuance or renewal of a license of a
natural gas supplier, an applicant for a license or a holder
of a license shall consent to the commission's jurisdiction
to direct the payment of refunds under this paragraph.
* * *
(i) Training and education program requirements.--
(1) The commission shall develop a web-based, online
training and education program for an entity licensed by the
commission to engage in the business of a natural gas
supplier and which engages in person-to-person sales of
natural gas at a residence of a retail residential class gas
customer TO RESIDENTIAL CUSTOMERS .
(2) The commission shall develop the program in
consultation with interested stakeholders, including natural
gas suppliers. The commission may contract with a third-party
vendor to develop the program.
(3) The program shall require that an employee,
representative or contractor of a natural gas supplier
engaging in person-to-person sales of natural gas at a
residence of a retail residential class gas customer TO
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RESIDENTIAL CUSTOMERS 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
an employee, representative or contractor of a natural gas
supplier engaging in person-to- person sales of natural gas at
a residence of a retail residential class gas customer TO
RESIDENTIAL CUSTOMERS and, upon achieving a score
satisfactory to the commission, certify that the employee,
representative or contractor has successfully completed the
training. A CERTIFICATION OF COMPLETION OF THE PROGRAM ISSUED
BY THE COMMISSION SHALL BE TRANSFERABLE WHEN A CERTIFIED
EMPLOYEE, REPRESENTATIVE OR CONTRACTOR OF A NATURAL GAS
SUPPLIER TRANSITIONS TO A DIFFERENT NATURAL GAS SUPPLIER,
SUBJECT TO ANY ORDERS, RULES OR REGULATIONS ADOPTED BY THE
COMMISSION.
(5) The commission shall determine the schedule and
frequency by which an employee, representative or contractor
of a natural gas supplier engaging in person-to-person sales
of natural gas at a residence of a retail residential class
gas customer TO RESIDENTIAL CUSTOMERS shall complete the
program. The commission may not issue a new natural gas
supplier license to an applicant until an employee,
representative or contractor of the natural gas supplier
completes the program. A natural gas supplier engaging in
person-to-person sales of natural gas at a residence of a
retail residential class gas customer TO RESIDENTIAL
CUSTOMERS that holds a natural gas supplier license before or
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on the effective date of this paragraph shall ensure that an
employee, representative or contractor of the natural gas
supplier successfully completes the program no later than 180
days after the commission develops 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. IN
ADDITION TO ANY OTHER REMEDY SPECIFIED UNDER THE LAWS OF THIS
COMMONWEALTH, THE COMMISSION MAY DIRECT THE PAYMENT OF A
REFUND, INCLUDING INTEREST, TO A RESIDENTIAL CUSTOMER FOR THE
FAILURE OF A NATURAL GAS SUPPLIER OR AN EMPLOYEE,
REPRESENTATIVE OR CONTRACTOR OF THE NATURAL GAS SUPPLIER
ENGAGING IN PERSON-TO-PERSON SALES TO COMPLY WITH THIS
SUBSECTION. AS A CONDITION FOR THE ISSUANCE OR RENEWAL OF A
LICENSE OF A NATURAL GAS SUPPLIER, AN APPLICANT FOR A LICENSE
OR A HOLDER OF A LICENSE SHALL CONSENT TO THE COMMISSION'S
JURISDICTION TO DIRECT THE PAYMENT OF REFUNDS UNDER THIS
PARAGRAPH.
(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).
(8) Nothing in this subsection shall be construed to
provide criminal or civil immunity to a natural gas suppler
or an employee, representative or contractor of the natural
gas supplier due to the successful completion of the program.
A natural gas supplier or an employee, representative or
contractor of the natural gas supplier may not use a
certification of completion of the program or training
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materials distributed under the program as a defense in a
legal proceeding.
(9) For the purpose of this subsection, a person-to-
person sale at a residence shall not include a transaction at
a residence in which there was a prearranged meeting between
a retail gas customer and natural gas supplier.
(J) DEFINITION.--AS USED IN THIS SECTION, THE TERM "PERSON-
TO-PERSON SALES OF NATURAL GAS TO RESIDENTIAL CUSTOMERS" MEANS
AN INTERACTION WHEN A PERSON, INCLUDING AN EMPLOYEE,
REPRESENTATIVE OR CONTRACTOR OF A NATURAL GAS SUPPLIER , DIRECTLY
ENGAGES WITH RESIDENTIAL CUSTOMERS IN PERSON, BY TELEPHONE OR
THROUGH A DIGITAL PLATFORM TO MARKET, SELL OR PROMOTE THE
NATURAL GAS SUPPLIER.
ยง 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 TO RESIDENTIAL CUSTOMERS 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
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generation supplier engaging in person-to-person sales of
electricity at a residence of a retail customer TO
RESIDENTIAL CUSTOMERS 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
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.
* * *
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(3) In addition to any other remedy specified under the
laws of this Commonwealth, the commission may direct the
payment of a refund, including interest, to a retail electric
RESIDENTIAL customer for violation by an electric generation
supplier of the provisions of this chapter PARAGRAPH (1)(I) .
As a condition for the issuance or renewal of a license of an
electric generation supplier, an applicant for a license or a
holder of a license shall consent to the commission's
jurisdiction to direct the payment of refunds under this
paragraph.
* * *
(h) Training and education program requirements.--
(1) The commission shall develop a web-based, online
training and education program for an entity licensed by the
commission to engage in the business of an electric
generation supplier and which engages in person-to-person
sales of electricity at a residence of a retail residential
class customer TO RESIDENTIAL CUSTOMERS .
(2) The commission shall develop the program in
consultation with interested stakeholders, including electric
generation suppliers. The commission may contract with a
third-party vendor to develop the program.
(3) The program shall require that an employee,
representative or contractor of an electric generation
supplier engaging in person-to-person sales of electricity at
a residence of a retail residential class customer TO
RESIDENTIAL CUSTOMERS demonstrate a thorough understanding of
the commission's regulations regarding sales, consumer
protection and any other matter the commission deems
appropriate through online training.
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(4) At the conclusion of the training under paragraph
(3), the commission shall conduct an online examination for
an employee, representative or contractor of an electric
generation supplier engaging in person-to-person sales of
electricity at a residence of a retail residential class
customer TO RESIDENTIAL CUSTOMERS and, upon achieving a score
satisfactory to the commission, certify that the employee,
representative or contractor has successfully completed the
training. A CERTIFICATION OF COMPLETION OF THE PROGRAM ISSUED
BY THE COMMISSION SHALL BE TRANSFERABLE WHEN A CERTIFIED
EMPLOYEE, REPRESENTATIVE OR CONTRACTOR OF AN ELECTRIC
GENERATION SUPPLIER TRANSITIONS TO A DIFFERENT ELECTRIC
GENERATION SUPPLIER, SUBJECT TO ANY ORDERS, RULES OR
REGULATIONS ADOPTED BY THE COMMISSION.
(5) The commission shall determine the schedule and
frequency by which an employee, representative or contractor
of an electric generation supplier engaging in person-to-
person sales of electricity at a residence of a retail
residential class customer TO RESIDENTIAL CUSTOMERS shall
complete the program. The commission may not issue a new
electric generation supplier license to an applicant until an
employee, representative or contractor of the electric
generation supplier completes the program. An electric
generation supplier engaging in person- to-person sales of
electricity at a residence of a retail residential class
customer TO RESIDENTIAL CUSTOMERS that holds an electric
generation supplier license before or on the effective date
of this paragraph shall ensure that an employee,
representative or contractor of the electric generation
supplier successfully c ompletes the program no later than 180
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days after the commission develops 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. IN
ADDITION TO ANY OTHER REMEDY SPECIFIED UNDER THE LAWS OF THIS
COMMONWEALTH, THE COMMISSION MAY DIRECT THE PAYMENT OF A
REFUND, INCLUDING INTEREST, TO A RESIDENTIAL CUSTOMER FOR THE
FAILURE OF AN ELECTRIC GENERATION SUPPLIER OR AN EMPLOYEE,
REPRESENTATIVE OR CONTRACTOR OF THE ELECTRIC GENERATION
SUPPLIER ENGAGING IN PERSON-TO-PERSON SALES TO COMPLY WITH
THIS SUBSECTION. AS A CONDITION FOR THE ISSUANCE OR RENEWAL
OF A LICENSE OF AN ELECTRIC GENERATION SUPPLIER, AN APPLICANT
FOR A LICENSE OR A HOLDER OF A LICENSE SHALL CONSENT TO THE
COMMISSION'S JURISDICTION TO DIRECT THE PAYMENT OF REFUNDS
UNDER THIS PARAGRAPH.
(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).
(8) Nothing in this subsection shall be construed to
provide criminal or civil immunity to an electric generation
supplier or an employee, representative or contractor of the
electric generation supplier due to the successful completion
of the program. An electric generation supplier or an
employee, representative or contractor of the electric
generation supplier may not use a certification of completion
of the program or training materials distributed under the
program as a defense in a legal proceeding.
(9) For the purpose of this subsection, a person-to-
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person sale at a residence shall not include a transaction at
a residence in which there was a prearranged meeting between
a retail customer and an electric generation supplier.
(I) DEFINITION.--AS USED IN THIS SECTION, THE TERM "PERSON-
TO-PERSON SALES OF ELECTRICITY" MEANS AN INTERACTION WHEN A
PERSON, INCLUDING AN EMPLOYEE, REPRESENTATIVE OR CONTRACTOR OF
AN ELECTRIC GENERATION SUPPLIER, DIRECTLY ENGAGES WITH
RESIDENTIAL CUSTOMERS IN PERSON, BY TELEPHONE OR THROUGH A
DIGITAL PLATFORM TO MARKET, SELL OR PROMOTE THE ELECTRIC
GENERATION SUPPLIER.
Section 2. This act shall take effect as follows:
(1) The addition of 66 Pa.C.S. ยงยง 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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