THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PRESTON, BROOKS, CALTAGIRONE, ELLIS, GIBBONS, HALUSKA, HESS, HUTCHINSON, JOSEPHS, KOTIK, LONGIETTI, MARSHALL, MATZIE, PASHINSKI, RAPP, REICHLEY, SAINATO, SAYLOR, SIPTROTH, STEVENSON AND BARBIN, JUNE 29, 2010

AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 14, 2010   

AN ACT

Amending Titles 53 (Municipalities Generally) and 66 (Public

Utilities) of the Pennsylvania Consolidated Statutes,

providing for municipal aggregation of electric generation

supply.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Part V of Title 53 of the Pennsylvania

Consolidated Statutes is amended by adding a chapter to read:

CHAPTER 61

MUNICIPAL AGGREGATION OF

ELECTRIC GENERATION SUPPLY

Sec.

6101.  Legislative purpose.

6102.  Definitions.

6103.  Grant of authority.

6104.  Intergovernmental cooperation.

6105.  Limitations.

§ 6101.  Legislative purpose.

The purpose of this chapter is to grant legislative authority

for any municipality to act as a municipal aggregator of

electricity under 66 Pa.C.S. Ch. 28 (relating to restructuring

of electric utility industry) and to provide municipal

aggregation of electric generation supply to consumers of

electricity within its municipal boundaries.

§ 6102.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Consumer."  As defined in 66 Pa.C.S. § 2803 (relating to

definitions).

"Commission."  The Pennsylvania Public Utility Commission.

"Default service plan."  As defined in 66 Pa.C.S. § 2803

(relating to definitions).

"Electric generation supplier."  As defined in 66 Pa.C.S.

§ 2803 (relating to definitions).

"Municipal aggregation program."  As defined in 66 Pa.C.S.

§ 2803 (relating to definitions).

"Municipal aggregator of electricity."  As defined in 66

Pa.C.S. § 2803 (relating to definitions).

"Municipality."  As defined in 66 Pa.C.S. § 2803 (relating to

definitions).

"Price-to-compare."  As defined in 66 Pa.C.S. § 2803

(relating to definitions).

"Small commercial customer."  As defined in 66 Pa.C.S. § 2803

(relating to definitions).

§ 6103.  Grant of authority.

(a)  Authority.--Except as provided under subsection (b) and

notwithstanding any law, a municipality is authorized to:

(1)  Be a municipal aggregator of electricity and provide

opt-in or opt-out municipal aggregation of electric

generation supply.

(2)  Be licensed by the commission as an electric

generation supplier.

(b)  Exception.--A municipality may only act as a municipal

aggregator of electricity on behalf of consumers within its

geographic boundaries.

§ 6104.  Intergovernmental cooperation.

Any two or more municipalities may cooperate and exercise the

authority to jointly act as a municipal aggregator of electric

generation supply in accordance with Subpart D of Part III

(relating to area government and intergovernmental cooperation).

§ 6105.  Limitations.

The authority granted to municipalities under this chapter

shall be limited by 66 Pa.C.S. § 2806.3 (relating to municipal

aggregation of electric generation supply) and any regulations

promulgated under 66 Pa.C.S. § 2806.3 by the commission.

Section 2.  Section 2803 of Title 66 is amended to read:

§ 2803.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Aggregator" or "market aggregator."  An entity, licensed by

the commission, that purchases electric energy and takes title

to electric energy as an intermediary for sale to retail

customers. The term shall not include a municipal aggregator of

electricity.

"Bilateral contract."  An agreement, as approved by the

commission, reached by two parties, each acting in its own

independent self-interest, as a result of negotiations free of

undue influence, duress or favoritism, in which the electric

energy supplier agrees to sell and the electric distribution

company agrees to buy a quantity of electric energy at a

specified price for a specified period of time under terms

agreed to by both parties, and which follows a standard industry

template widely accepted in the industry or variations thereto

accepted by the parties. Standard industry templates may include

the EEI Master Agreement for physical energy purchases and sales

and the ISDA Master Agreement for financial energy purchases and

sales.

"Broker" or "marketer."  An entity, licensed by the

commission, that acts as an agent or intermediary in the sale

and purchase of electric energy but that does not take title to

electric energy. The term shall include a municipal aggregator

of electricity.

"Competitive transition charge."  A nonbypassable charge

applied to the bill of every customer accessing the transmission

or distribution network which (charge) is designed to recover an

electric utility's transition or stranded costs as determined by

the commission under sections 2804 (relating to standards for

restructuring of electric industry) and 2808 (relating to

competitive transition charge).

"Consumer."  A retail electric customer.

"Customer."  A retail electric customer.

"Default service plan."  A plan for competitive procurement

of default service supply approved by the commission under 66

Pa.C.S. § 2807(e)(3.6) (relating to duties of electric

distribution companies).

"Default service provider."  An electric distribution company

within its certified service territory or an alternative

supplier approved by the commission that provides generation

service to retail electric customers who:

(1)  contract for electric power, including energy and

capacity, and the chosen electric generation supplier does

not supply the service; or

(2)  do not choose an alternative electric generation

supplier.

"Direct access."  The right of electric generation suppliers

and end-use customers to utilize and interconnect with the

electric transmission and distribution system on a

nondiscriminatory basis at rates, terms and conditions of

service comparable to the transmission and distribution

companies' own use of the system to transport electricity from

any generator of electricity to any end-use customer.

"Electric distribution company."  The public utility

providing facilities for the jurisdictional transmission and

distribution of electricity to retail customers, except building

or facility owners/operators that manage the internal

distribution system serving such building or facility and that

supply electric power and other related electric power services

to occupants of the building or facility.

"Electric generation supplier" or "electricity supplier." A

person or corporation, including municipal corporations which

choose to provide service outside their municipal limits except

to the extent provided prior to the effective date of this

chapter, brokers and marketers, aggregators, municipal

aggregators of electricity implementing municipal aggregation

programs or any other entities, that sells to end-use customers

electricity or related services utilizing the jurisdictional

transmission or distribution facilities of an electric

distribution company or that purchases, brokers, arranges or

markets electricity or related services for sale to end-use

customers utilizing the jurisdictional transmission and

distribution facilities of an electric distribution company. The

term excludes building or facility owner/operators that manage

the internal distribution system serving such building or

facility and that supply electric power and other related power

services to occupants of the building or facility. The term

excludes electric cooperative corporations except as provided in

15 Pa.C.S. Ch. 74 (relating to generation choice for customers

of electric cooperatives).

"End-use customer."  A retail electric customer.

"Municipal aggregation contract."  A written agreement

between a municipal aggregator of electricity and an electric

generation supplier that includes:

(1)  Beginning and end dates of the contract period.

(2)  Electric generation rate for the contract period.

(3)  Opt-out and opt-in contract procedures.

(4)  Customer complaint processes.

(5)  Contact information for inquiries related to

municipal aggregation.

"Municipal aggregation program."  A program providing for a

municipality acting as a broker or marketer on behalf of the

eligible consumers within the municipality's geographic

boundaries not excluded by section 2806.3 (relating to municipal

aggregation of electric generation supply). A program may be

either:

(1)  an opt-out program, which shall include every

eligible consumer who does not choose to be excluded from the

program; or

(2)  an opt-in program, which shall include only those

eligible consumers who choose to participate in the program.

"Municipal aggregator of electricity."  A municipality,

licensed by the commission, that acts as a broker or marketer on

behalf of the eligible consumers within the municipality's

geographic boundaries under municipal aggregation.

"Municipality."  A county, city, township, town or borough.

The term shall include a municipality subject to the former act

of April 13, 1972 (P.L.184, No.62), known as the Home Rule

Charter and Optional Plans Law.

"Price-to-compare."  A line item that appears on a retail

customer's monthly bill for default service. The price-to-

compare is equal to the sum of all unbundled generation and

transmission related charges to a default service customer for

that month of service. The price-to-compare is a customer-

<--

specific price for a given month of service reflecting all cost

components that the customer avoids when choosing to take

electric generation service from an electric generation

supplier.

"Reliability."  Includes adequacy and security. As used in

this definition, "adequacy" means the provision of sufficient

generation, transmission and distribution capacity so as to

supply the aggregate electric power and energy requirements of

consumers, taking into account scheduled and unscheduled outages

of system facilities; and "security" means designing,

maintaining and operating a system so that it can handle

emergencies safely while continuing to operate.

"Renewable resource."  Includes technologies such as solar

photovoltaic energy, solar thermal energy, wind power, low-head

hydropower, geothermal energy, landfill and mine-based methane

gas, energy from waste and sustainable biomass energy.

"Retail customer."  A retail electric customer.

"Retail electric customer."  A direct purchaser of electric

power. The term excludes an occupant of a building or facility

where the owners/operators manage the internal distribution

system serving such building or facility and supply electric

power and other related power services to occupants of the

building or facility; where such owners/operators are direct

purchasers of electric power; and where the occupants are not

direct purchasers.

"Small commercial customer."  A retail electric customer that

receives electric service under a small commercial, small

industrial or small business rate classification, and whose

maximum registered peak load was less than 25 50 kW within the

<--

last 12 months.

"Transition or stranded costs."  An electric utility's known

and measurable net electric generation-related costs, determined

on a net present value basis over the life of the asset or

liability as part of its restructuring plan, which traditionally

would be recoverable under a regulated environment but which may

not be recoverable in a competitive electric generation market

and which the commission determines will remain following

mitigation by the electric utility. This term includes:

(1)  Regulatory assets and other deferred charges

typically recoverable under current regulatory practice, the

unfunded portion of the utility's projected nuclear

generating plant decommissioning costs and cost obligations

under contracts with nonutility generating projects which

have received a commission order, the recoverability of which

shall be determined under section 2808(c)(1) (relating to

competitive transition charge).

(2)  Prudently incurred costs related to cancellation,

buyout, buydown or renegotiation of nonutility generating

projects consistent with section 527 (relating to

cogeneration rules and regulations), the recoverability of

which shall be determined pursuant to section 2808(c)(2).

(3)  The following costs, the recoverability of which

shall be determined pursuant to section 2808(c)(3):

(i)  Net plant investments and costs attributable to

the utility's existing generation plants and facilities.

(ii)  The utility's disposal of spent nuclear fuel.

(iii)  The utility's long-term purchase power

commitments other than the costs defined in paragraphs

(1) and (2).

(iv)  Retirement costs attributable to the utility's

existing generating plants other than the costs defined

in paragraph (1).

(v)  Other transition costs of the utility, including

costs of employee severance, retraining, early

retirement, outplacement and related expenses, at

reasonable levels, for employees who are affected by

changes that occur as a result of the restructuring of

the electric industry occasioned by this chapter.

The term includes any costs attributable to physical plants no

longer used and useful because of the transition to retail

competition. The term excludes any amounts previously disallowed

by the commission as imprudently incurred. To the extent that

the recoverability of amounts that are sought to be included as

transition or stranded costs are subject to appellate review as

of the time of the commission determination, any determination

to include such costs shall be reversed to the extent required

by the results of that appellate review.

"Transmission and distribution costs."  All costs directly or

indirectly incurred to provide transmission and distribution

services to retail electric customers. This includes the return

of and return on facilities and other capital investments

necessary to provide transmission and distribution services and

associated operating expenses, including applicable taxes.

"Universal service and energy conservation."  Policies,

protections and services that help low-income customers to

maintain electric service. The term includes customer assistance

programs, termination of service protection and policies and

services that help low-income customers to reduce or manage

energy consumption in a cost-effective manner, such as the low-

income usage reduction programs, application of renewable

resources and consumer education.

Section 3.  Title 66 is amended by adding a section to read:

§ 2806.3.  Municipal aggregation of electric generation supply.

(a)  Licensing.--The commission, in accordance with its

regulations, within 30 days following receipt of an application,

may issue a license to a municipality as an electric generation

supplier to act as a municipal aggregator of electric generation

supply service for eligible consumers within the municipality's

geographic boundaries. A municipal aggregator of electricity

under this section shall not be considered a public utility or a

utility engaging in the wholesale purchase and resale of

electricity, and the provision of municipal aggregation shall

not be considered a wholesale utility transaction.

(b)  Ordinance required.--Prior to applying for an electric

generation supplier license with the commission, the governing

body of the municipality shall adopt an ordinance authorizing

the municipality to apply for an electric generation supplier

license to serve as a municipal aggregator of electricity,

indicate whether the municipal aggregation shall be an opt-in or

opt-out program and shall identify municipal officials by either

title of office or name, or their duly appointed designees,

authorized to execute documents with the commission on behalf of

the municipality. A municipal aggregator of electricity shall

provide reasonable public notice of municipal consideration of

any ordinance authorizing a municipal aggregation program, which

shall include newspaper publication on a monthly basis beginning

at least 90 days prior to the adoption of an ordinance

authorizing an opt-out program.

(c)  Municipal aggregation contracts.--

(1)  A municipal aggregator of electricity may negotiate

and enter into a contract for electric generation supply

services with an electric generation supplier. A municipal

aggregator of electricity shall use a competitive procurement

or request-for proposal process to select the electric

generation supplier, regardless of the generation fuel type,

location, technology or new or existing status of the

generation that the electric generation supplier will use to

supply the municipal aggregation. An executed municipal

aggregation contract shall not go into effect prior to filing

with the commission, and a copy of the filed contract shall

be provided to the electric distribution company whose

service territory includes the municipal aggregator. Each

contract shall include:

(i)  provisions for the timing of the distribution of

customer lists by the electric distribution company and

customer notices consistent with this section;

(ii)  a consumer education plan with appropriate

consumer education materials to inform consumers about

the existence of the municipal aggregation and the

highlights of the program, which shall be deployed

concurrently with the distribution of opt-in or opt-out

notices, as applicable; and

(iii)  a copy of the sample opt-in or opt-out notice

to be sent to consumers, which shall provide the

identification of the selected electric generation

supplier.

(2)  Any contract between a municipality and an electric

generation supplier executed under this section shall clearly

indicate whether it is for an opt-in or opt-out municipal

aggregation and the price that the contracted electric

generation supplier will charge customers for electric

generation supply, as well as the time period of the

contract. A contract executed under this section may not

<--

exceed three years. If the price is a fixed rate, the price

shall be expressed in cents per kilowatt hour. If the

contract provides for a percentage off of the default service

rate or any other type of pricing arrangement, an

understandable description of the amount of the percentage

discount or other pricing arrangement and how the rate may

change shall be provided. If the electric generation supplier

will charge different rates to different rate classes within

the municipality, the applicable rate to consumers within

each rate class shall be described.

(d)  Opt-out programs; notice and opt-out procedures.--

(1)  No consumer may be bound by a contract between a

municipal aggregator of electricity and an electric

generation supplier in opt-out municipal aggregation until

<--

not less than 30 days following the mailing of the opt-out

notices required under this subsection and the expiration of

any waiting period for a consumer to cancel the pending

change to the electric generation supplier following written

confirmation by the electric distribution company as

prescribed by regulation.. Customers receiving electric

<--

generation service under an opt-out municipal aggregation

program may switch to an electric generation supplier other

than the supplier to the municipal aggregation program at any

time without penalty, cancellation fees or other

restrictions, provided that the switch shall take place

pursuant to commission-approved switching procedures.

(2)  Any contract between a municipality and an electric

generation supplier executed under this section shall contain

procedures for addressing consumer disputes and complaints

related to supply services received pursuant to a municipal

aggregation program. The procedures shall be made available

to consumers, at least annually, in a clear and easily

understandable format. After a municipality executes a

contract for electric generation services, but prior to

including a consumer's electric account or accounts in an

opt-out municipal aggregation, a municipal aggregator of

electricity shall provide each eligible consumer with written

notice that the consumer's account will be automatically

included in the municipal aggregation unless the customer

affirmatively opts out of the municipal aggregation. The

notice, written in plain language, shall include all of the

following:

(i)  The date by which the customer must

<--

affirmatively opt out of the program. The date shall not

be less than 30 days following the mailing of the opt-out

notice.

(ii) (i)  A description of the ordinance adopted by

<--

the municipality authorizing it to apply for a license

from the commission, the competitive procurement process

under which offers for electric generation supply were

solicited, and a location where, during regular business

hours, consumers may view the ordinance and executed

contract free of charge or obtain a copy for a reasonable

fee.

(iii) (ii)  Disclosure of the price that the

<--

contracted electric generation supplier will charge

customers for electric generation service. If the price

is a fixed rate, the municipal aggregator of electricity

shall express the price in cents per kilowatt hour and

list the most recent applicable price-to-compare of the

default service provider in whose service territory the

municipality is located. If the contract provides for a

percentage off of the default service rate or any other

type of pricing arrangement, an understandable

description of the amount of the percentage discount or

other pricing arrangement and how the rate may change

shall be provided. If the electric generation supplier

charges different rates to different rate classes within

the municipality, the municipal aggregator of electricity

shall describe the applicable rate to consumers within

each rate class and the associated price-to-compare.

(iv) (iii)  An itemized list and explanation of all

<--

fees and charges that are not incorporated into the rates

charged for electric generation service that the electric

generation supplier will charge to the consumer for

participating in the municipal aggregation, including any

early termination penalties and any surcharges that may

<--

be assessed. Early termination penalties shall not apply

<--

to a consumer that moves outside the municipal aggregator

of electricity's geographic boundaries or that becomes

eligible for and remains in an electric distribution

company customer assistance program at the time of

termination.

(v) (iv)  Disclosure of the estimated service

<--

commencement date and notice that the consumer may opt

out of the municipal aggregation program at the end of

<--

the term of the municipal aggregation contract and prior

to the commencement of any subsequent municipal

aggregation contract any time.

<--

(vi) (v)  A statement informing consumers that if

<--

they choose to opt out of the municipal aggregation they

will be served by the default service offer established

under section 2807(e) (relating to duties of electric

distribution companies) until the consumer chooses an

alternative electric generation supplier or chooses to

participate in a subsequent municipal aggregation.

(vii) (vi)  A statement informing consumers that if

<--

they switch back to the default service provider they may

not be served under the same rates, terms and conditions

that apply to other customers within the municipal

aggregation.

(viii) (vii)  Disclosure of any credit, collection

<--

and deposit policies and requirements.

(ix) (viii)  Disclosure of any limitations or

<--

conditions on customer acceptance into the municipal

aggregation.

(x) (ix)  A description of the process and associated

<--

time period for consumers to opt out of the municipal

aggregation. The process shall include provisions for

consumers to return a postcard or similar notice to the

municipal aggregator of electricity or its agent. The

process may include other opt-out methods, such as

telephonic or Internet notice, if these alternative

methods allow for verification of a consumer's election

to opt out of the municipal aggregation. The time period

<--

for a customer to choose to opt out of the municipal

aggregation shall be not less than 30 days from the date

of the mailing of the written notice. If a consumer's

return postcard or notice is postmarked before the opt-

out deadline has elapsed, the consumer shall be deemed to

have opted out of the municipal aggregation.

(xi) (x)  A local or toll-free telephone number, with

<--

the available calling hours, that consumers may call with

questions regarding the formation or operation of the

municipal aggregation.

(e)  Opt-in programs; notice and opt-in procedures.--

(1)  No consumer may be bound by a contract between a

municipal aggregator and an electric generation supplier in

opt-in municipal aggregation until the consumer has been

provided an opt-in notice required under this subsection and

the expiration of any waiting period for a consumer to cancel

the pending change to the electric generation supplier

following written confirmation by the electric distribution

company as prescribed by regulation. Customers receiving

<--

electric generation service under an opt-in municipal

aggregation program may switch to an electric generation

supplier other than the supplier to the municipal aggregation

program at any time without penalty, cancellation fees or

other restrictions, provided that the switch shall take place

pursuant to commission-approved switching procedures.

(2)  After a municipality executes a contract for

electric generation services, but prior to including a

consumer's electric account or accounts in an opt-in

municipal aggregation, a municipal aggregator of electricity

shall provide each eligible consumer with written notice that

the customer may participate in the municipal aggregation.

The notice, written in plain language, shall include all of

the information required under subsection (d)(2)(ii), (iii),

<--

(iv), (vi), (vii), (viii), (x) and (xi) (d)(2)(i), (ii),

<--

(iii), (v), (vi), (vii), (ix) and (x) and the following

information:

(i)  A statement informing consumers that if they do

not choose to opt in to the municipal aggregation they

will be served by the default service offer established

under section 2807(e) until the consumer chooses an

alternative electric generation supplier or chooses to

participate in a subsequent municipal aggregation.

(ii)  A description of the process and associated

<--

time period for consumers to opt in to the municipal

aggregation. The process shall include provisions for

consumers to return a postcard or similar notice to the

municipal aggregator of electricity or its agent. The

process may include other opt-in methods, such as

telephonic or Internet notice, if these alternative

methods allow for verification of a consumer's election

to opt in to the municipal aggregation. The time period

for a customer to choose to opt in to the municipal

aggregation shall be at least 30 days from the date of

the mailing of the written notice. If a consumer's return

postcard or notice is postmarked before the opt-in

deadline has elapsed, the consumer shall be deemed to

have opted in to the municipal aggregation.

(f)  Additional requirements; provision of customer

information.--

(1)  The following consumers shall be excluded from

enrollment in a municipal aggregation:

(i)  For opt-out municipal aggregation only, a

consumer that has opted out of the municipal aggregation

under subsection (d) or that has a special contract or

agreement with an electric distribution company or a

consumer under an existing contract with a licensed

electric generation supplier other than a consumer under

a municipal aggregation contract with the current

electric generation supplier of the municipal

aggregation.

(ii)  A consumer that is not located within the

geographic boundaries of the municipal aggregator of

electricity.

(iii)  A consumer other than a residential or small

commercial customer.

(iv)  A consumer that is enrolled in an electric

distribution company's customer assistance program that

does not include any electric generation supplier charges

in the calculation of the customer assistance program

benefit.

(v)  End-use consumers served or authorized to be

served by an electric cooperative or loads served by a

municipality that owns and operates its own electric

distribution system.

(2)  No earlier than three months and no later than 30

days prior to the end of the term of a municipal aggregation

contract and commencement of a new municipal aggregation

contract or contract renewal term, a municipal aggregator of

electricity or the electric generation supplier to the

municipal aggregation shall provide notice to all consumers

served by the municipal aggregation or who opted out of the

municipal aggregation of their right to opt out of the

subsequent municipal aggregation and take service pursuant to

the default service provider's default service offer or with

another electric generation supplier without fee or penalty.

The notice shall also explicitly inform customers who may

have opted out of any previous municipal aggregation

contracts that they may be eligible to participate in the

upcoming municipal aggregation contract, pursuant to the

eligibility requirements defined in this subsection. The

notice shall follow the procedures established for the

initial opt-out or opt-in notice set forth in subsection (d)

or (e), as applicable, and shall prominently disclose to

customers all changes to the terms and conditions associated

with the municipal aggregation. The municipal aggregator of

electricity may not send an opt-out notice to the same

customer account for the period covered by the municipal

aggregation contract where the customer account has

previously opted out.

(3)  No municipal aggregator of electricity or electric

generation supplier serving a municipal aggregation may

impose any term, condition, fee or charge on a consumer

served by a municipal aggregation that is materially

different from the particular term, condition, fee or charge

which was included within the contract between the municipal

aggregator of electricity and the electric generation

supplier or the notices provided under subsection (d) or (e).

(4)  The following shall apply to provisions for the list

of eligible municipal aggregation consumers:

(i)  After the issuance of a license to a municipal

aggregator of electricity and upon request of the

municipal aggregator of electricity or an electric

generation supplier designated by the municipal

aggregator, an electric distribution company shall use

reasonable efforts to provide the following information

to the extent it is maintained by the electric

distribution company for all consumers residing within

the municipal aggregator of electricity's geographic

boundaries to the municipal aggregator of electricity or

the electric generation supplier within 30 calendar days

of the request:

(A)  An updated list of names, addresses, account

numbers, rate codes, indication of whether a consumer

is enrolled in a customer assistance program or

budget billing, load data and other related consumer

information, consistent with the information that is

provided to other electric generation suppliers.

(B)  An identification of consumers who are

currently under contract with an electric generation

supplier or in a special arrangement with the

electric distribution company.

(ii)  The municipal aggregator of electricity or the

electric generation supplier to the municipal aggregation

may only use the consumer information from the list of

eligible municipal aggregation consumers for the purpose

of forming and operating its municipal aggregation and

may not disclose the consumer information unless the

release is pursuant to a court order or a commission

regulation or order.

(iii)  Upon completion of the mailing of opt-out

notices and expiration of any associated waiting period

under subsection (d)(1), a municipal aggregator of

electricity or the electric generation supplier to a

municipal aggregation may request updated consumer

information required under this subsection, and the

electric distribution company shall use reasonable

efforts to provide such information within ten days of

the request.

(5)  The following shall apply to the notice of municipal

aggregation and opt-out notice:

(i)  Each municipal aggregator of electricity shall

ensure that only eligible consumers are included in its

municipal aggregation.

(ii)  If accounts of ineligible consumers or

consumers who have not opted in or who have opted out of

the municipal aggregation, as applicable, are switched to

the electric generation supplier to the municipal

aggregation, the municipal aggregator of electricity

shall promptly inform the consumer and take all necessary

actions to have the consumer switched back to the

consumer's original electric generation supplier or

default service provider at no cost to the consumer and

reimburse the consumer for any amount paid under the

municipal aggregation that is greater than the amount

otherwise due for its original generation service. The

original electric generation supplier or default service

provider shall not be liable for any costs, fees,

penalties or damages, including any imposed by the

regional transmission organization in which the municipal

aggregator of electricity is located, arising from the

improper transfer. Consistent with due process, the

commission may require the electric generation supplier

to the municipal aggregator of electricity to pay any

such amounts incurred by the original electric generation

supplier or default service provider, plus any amounts

the original electric generation supplier would have

received from the consumer for electric generation

service from the time of the improper transfer until the

consumer is returned to electric generation service

provided by the original electric generation supplier.

(g)  Return to default service.--In the event that a

<--

(g)  Coordination with default service.--

<--

(1)  The implementation of a municipal aggregation

program shall be coordinated with the default service supply

procurement plans of the electric distribution company whose

service territory encompasses the boundaries of the

municipality participating in the program.

(2)  Unless otherwise authorized by the commission, no

municipal aggregator may enter into a contract for electric

generation services during the term of the default service

supply procurement plan, approved by the commission on the

effective date of this section, of the electric distribution

company whose service territory encompasses the boundaries of

the municipal aggregator.

(3)  If a municipal aggregator of electricity ceases to

provide municipal aggregation services during the current

term of the municipal aggregation contract filed with the

commission and the customers of the municipal aggregator of

electricity are returned to default service, the default

service rate for such customers shall be the market price for

generation service, including all charges for spot market

purchases of energy, capacity, transmission, ancillary

services, compliance with the act of November 30, 2004

(P.L.1672, No.213), known as the Alternative Energy Portfolio

Standards Act, and all other costs incurred by the default

service provider in the provision of generation service to

such customers, for the remainder of the default service

provider's current default service plan.

(h)  Duties of electric distribution companies and cost

recovery.--

(1)  Each electric distribution company shall provide

reasonable cooperation with municipal aggregators of

electricity or the electric generation supplier to the

municipal aggregation to facilitate the proper formation and

functioning of opt-out or opt-in municipal aggregation, as

applicable, including coordinating with municipal aggregators

of electricity and electric generation suppliers to promote

nondiscriminatory access to electric services and to process

enrollment requests from municipal aggregators of electricity

or their designated electric generation supplier in

accordance with the same processes applicable to other

licensed electric generation suppliers providing service to

retail electric customers.

(2)  An electric distribution company shall recover on a

full and current basis all costs incurred to support and that

are related to municipal aggregation through a nonbypassable

reconcilable automatic adjustment charge under section 1307

(relating to sliding scale of rates; adjustments) from all

residential and small commercial consumers accessing the

electric distribution company's transmission and distribution

system.

(i)  Duties of commission.--The commission shall promulgate  

<--

shall:

<--

(1)  Promulgate regulations necessary to implement the

provisions of this section, including, but not limited to,

developing opt-in and opt-out notices for use by municipal

<--

aggregators of electricity in this Commonwealth.

(2)  Promulgate regulations and take any other action

<--

necessary to coordinate the implementation of municipal

aggregation programs with commission approval of electric

distribution company default supply procurement plans.

Section 4.  Sections 2807(d)(1) and 2809(a) of Title 66 are

amended to read:

§ 2807.  Duties of electric distribution companies.

* * *

(d)  Consumer protections and customer service.--The electric

distribution company shall continue to provide customer service

functions consistent with the regulations of the commission,

including meter reading, complaint resolution and collections.

Customer services shall, at a minimum, be maintained at the same

level of quality under retail competition.

(1)  [The] Except as provided under section 2806.3

(relating to municipal aggregation of electric generation

supply), the commission shall establish regulations to ensure

that an electric distribution company does not change a

customer's electricity supplier without direct oral

confirmation from the customer of record or written evidence

of the customer's consent to a change of supplier.

* * *

§ 2809.  Requirements for electric generation suppliers.

(a)  License requirement.--No person or corporation,

including municipal corporations which choose to provide service

outside their municipal limits except to the extent provided

prior to the effective date of this chapter, brokers and

marketers, aggregators, municipal aggregators of electricity

implementing municipal aggregation programs and other entities,

shall engage in the business of an electric generation supplier

in this Commonwealth unless the person or corporation holds a

license issued by the commission. The commission may waive

certain licensing requirements in its regulations for municipal

aggregators of electricity implementing municipal aggregation

programs. Consistent with 15 Pa.C.S. Ch. 74 (relating to

generation choice for customers of electric cooperatives),

electric cooperative corporations must possess a certificate for

service to supply generation services beyond their territorial

limits.

* * *

Section 5.  This act shall take effect in 60 days.