PRINTER'S NO. 40
No. 35 Special Session No. 1 of 2007-2008
INTRODUCED BY SWANGER, BARRAR, BEAR, BELFANTI, BEYER, BIANCUCCI,
CREIGHTON, DALEY, EVERETT, FAIRCHILD, FRANKEL, GEORGE,
GINGRICH, HARHART, HERSHEY, HORNAMAN, LEACH, MURT, MYERS,
O'NEILL, READSHAW, ROSS, SIPTROTH, SONNEY, WANSACZ AND
YOUNGBLOOD, OCTOBER 25, 2007
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, OCTOBER 25, 2007
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, establishing a consumer energy
3 educational program; requiring certain utilities to implement
4 consumer education plans; and providing for commission review
5 and evaluation of consumer education plans.
6 The General Assembly finds and declares as follows:
7 (1) It is essential that consumers have a good
8 understanding of energy use and costs because energy is so
9 prevelant in daily life.
10 (2) Energy education is essential if consumers are to
11 make informed choices about how to conserve energy and reduce
12 the amount that energy costs play in the family budget.
13 (3) Energy education programs need to be designed to
14 provide information to help Pennsylvanians evaluate their
15 best energy options.
16 (4) A well-designed Statewide energy conservation
17 education campaign is in the best interests of all
18 Pennsylvanians if the price of energy is to be affordable.
1 The General Assembly of the Commonwealth of Pennsylvania
2 hereby enacts as follows:
3 Section 1. Chapter 15 of Title 66 of the Pennsylvania
4 Consolidated Statutes is amended by adding a subchapter to read:
5 SUBCHAPTER C
6 CONSUMER EDUCATION PLANS
7 Sec.
8 1541. Definitions.
9 1542. Consumer education.
10 1543. Commission review of plans.
11 1544. Statewide education campaign.
12 1545. Consumer education plan evaluation.
13 1546. Reporting.
14 § 1541. Definitions.
15 The following words and phrases when used in this subchapter
16 shall have the meanings given to them in this section unless the
17 context clearly indicates otherwise:
18 "Consumer education plan." A plan designed to educate retail
19 customers and to increase ratepayer knowledge about a variety of
20 energy issues.
21 "Electric distribution company." The term shall have the
22 same meaning given to it in Chapter 28 (relating to
23 restructuring of electric utility industry).
24 § 1542. Consumer education.
25 (a) General rule.--The commission shall require each
26 electric distribution company to file an initial consumer
27 education plan for its service territory for approval by
28 December 31, 2007. Each plan shall be designed to increase
29 ratepayer knowledge about a variety of energy issues and
30 structured to provide consumers practical advice about preparing
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1 for the eventual elimination of electric utility rate caps and
2 options for reducing their electricity costs.
3 (b) Contents.--The electric distribution company's plan at a
4 minimum shall include the following elements:
5 (1) An explanation that the generation component of
6 retail electric rates charged to customers by electric
7 utilities has been capped since 1996 and when the cap for
8 that customer's service territory will expire.
9 (2) A statement that the rate charged for generation
10 service will change after the rate cap expires and that this
11 may result in an increase in consumer electricity costs.
12 (3) An explanation that consumers can take certain steps
13 before and at the time rate caps expire that can be used to
14 help control electric costs such as energy efficiency,
15 conservation and demand-side response opportunities. The
16 explanation shall also include information about cost-
17 effective technologies and information about these
18 technologies and how to take advantage of them.
19 (4) Information that competitive choice options are
20 communicated to retail customers.
21 (5) Information about the availability of programs for
22 those with limited incomes is included.
23 (c) Implementation.--Once final approval is attained, the
24 electric distribution company shall implement consumer education
25 plans tailored to their service territories that will help
26 retail customers mitigate the effect of wholesale energy price
27 increases.
28 § 1543. Commission review of plans.
29 (a) General rule.--The commission shall review and approve,
30 disapprove or modify the consumer education plan submitted by
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1 the electric distribution company and in performing that duty
2 the commission shall:
3 (1) Ensure that consumer education plans and the
4 Statewide education campaign are complementary in achieving
5 these standards. The commission shall allow, as needed,
6 consumer education plans to be tailored to the particular
7 circumstances of an electric distribution company service
8 territory.
9 (2) Encourage electric distribution companies to
10 consider long-term education strategies and to propose
11 consumer education plans that will be in effect for at least
12 five years.
13 (3) Permit each electric distribution company to propose
14 a budget that will adequately address the consumer education
15 plan development and implementation and shall allow a
16 specific cost-recovery mechanism to be proposed as an element
17 of each plan filing.
18 (b) Rate cap expiration in service territories.--The
19 commission shall work with electric distribution companies to
20 modify consumer education plan requirements where customers pay
21 market based rates. The commission shall assist these companies
22 to focus their consumer education plans on practical steps
23 customers can take to reduce the size of their electric bills
24 through energy conservation and retail choice.
25 § 1544. Statewide education campaign.
26 (a) General rule.--The commission shall implement a
27 Statewide education campaign to supplement the individual
28 consumer education plans of electric distribution companies and
29 shall seek to address the same types of energy information
30 identified for the consumer education plans.
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1 (b) Nature of campaign.--The Statewide campaign shall be
2 designed to provide opportunities to use various types of media
3 and to ensure that there is an emphasis on providing information
4 to low-income residents of this Commonwealth.
5 § 1545. Consumer education plan evaluation.
6 (a) Standards for annual reporting.--The commission shall
7 establish standards by which each electric distribution company
8 submits to the commission an annual report that provides
9 information relating to the actions and results associated with
10 the implementation of their approved consumer education plans.
11 The reports shall include, but not be limited to:
12 (1) Documentation of program expenditures.
13 (2) Measurement and success of programs.
14 (3) Evaluation of the cost-effectiveness of
15 expenditures.
16 (4) Any other information the commission may require
17 pursuant to its rulemaking authority.
18 (b) Modification of plans.--The commission may direct an
19 electric distribution company to modify or terminate particular
20 portions of its consumer education plan if, after an adequate
21 period for implementation of the program, the commission
22 determines the program is not sufficiently meeting its goals and
23 purposes.
24 (c) Termination.--
25 (1) Termination of any portion of a consumer education
26 plan shall be accomplished in a manner that allows the
27 utility to fully recover its reasonable and prudent program
28 costs.
29 (2) In the event any portion of an approved consumer
30 education plan is terminated by the commission, the electric
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1 distribution company shall submit a revised consumer
2 education plan to the commission describing the actions the
3 electric distribution company will undertake to either offer
4 a substitute program or to increase the availability of
5 existing programs to make up for the effect of the terminated
6 program on its overall program goals.
7 § 1546. Reporting.
8 The commission shall submit an annual report to the General
9 Assembly describing the results of consumer education plans
10 implemented by each of the electric distribution companies and
11 the Statewide campaign, including, but not limited to:
12 (1) The costs and benefits.
13 (2) Use of the information by customer class within this
14 Commonwealth.
15 (3) Any potential energy savings resulting from the
16 information provided to retail customers.
17 (4) Information regarding the need to modify or alter
18 any aspects of either the electric distribution companies
19 energy education plans or the Statewide education campaign.
20 Section 2. This act shall take effect immediately.
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