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| PRIOR PRINTER'S NOS. 4012, 4221 | PRINTER'S NO. 4406 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| 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 |
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| AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 29, 2010 |
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| AN ACT |
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1 | Amending Titles 53 (Municipalities Generally) and 66 (Public |
2 | Utilities) of the Pennsylvania Consolidated Statutes, |
3 | providing for municipal aggregation of electric generation |
4 | supply. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Part V of Title 53 of the Pennsylvania |
8 | Consolidated Statutes is amended by adding a chapter to read: |
9 | CHAPTER 61 |
10 | MUNICIPAL AGGREGATION OF |
11 | ELECTRIC GENERATION SUPPLY |
12 | Sec. |
13 | 6101. Legislative purpose. |
14 | 6102. Definitions. |
15 | 6103. Grant of authority. |
16 | 6104. Intergovernmental cooperation. |
17 | 6105. Limitations. |
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1 | § 6101. Legislative purpose. |
2 | The purpose of this chapter is to grant legislative authority |
3 | for any municipality to act as a municipal aggregator of |
4 | electricity under 66 Pa.C.S. Ch. 28 (relating to restructuring |
5 | of electric utility industry) and to provide municipal |
6 | aggregation of electric generation supply to consumers of |
7 | electricity within its municipal boundaries. |
8 | § 6102. Definitions. |
9 | The following words and phrases when used in this chapter |
10 | shall have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Consumer." As defined in 66 Pa.C.S. § 2803 (relating to |
13 | definitions). |
14 | "Commission." The Pennsylvania Public Utility Commission. |
15 | "Default service plan." As defined in 66 Pa.C.S. § 2803 |
16 | (relating to definitions). |
17 | "Electric generation supplier." As defined in 66 Pa.C.S. |
18 | § 2803 (relating to definitions). |
19 | "Municipal aggregation program." As defined in 66 Pa.C.S. |
20 | § 2803 (relating to definitions). |
21 | "Municipal aggregator of electricity." As defined in 66 |
22 | Pa.C.S. § 2803 (relating to definitions). |
23 | "Municipality." As defined in 66 Pa.C.S. § 2803 (relating to |
24 | definitions). |
25 | "Price-to-compare." As defined in 66 Pa.C.S. § 2803 |
26 | (relating to definitions). |
27 | "Small commercial customer." As defined in 66 Pa.C.S. § 2803 |
28 | (relating to definitions). |
29 | § 6103. Grant of authority. |
30 | (a) Authority.--Except as provided under subsection (b) and |
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1 | notwithstanding any law, a municipality is authorized to: |
2 | (1) Be a municipal aggregator of electricity and provide |
3 | opt-in or opt-out municipal aggregation of electric |
4 | generation supply. |
5 | (2) Be licensed by the commission as an electric |
6 | generation supplier. |
7 | (b) Exception.--A municipality may only act as a municipal |
8 | aggregator of electricity on behalf of consumers within its |
9 | geographic boundaries. |
10 | § 6104. Intergovernmental cooperation. |
11 | Any two or more municipalities may cooperate and exercise the |
12 | authority to jointly act as a municipal aggregator of electric |
13 | generation supply in accordance with Subpart D of Part III |
14 | (relating to area government and intergovernmental cooperation). |
15 | § 6105. Limitations. |
16 | The authority granted to municipalities under this chapter |
17 | shall be limited by 66 Pa.C.S. § 2806.3 (relating to municipal |
18 | aggregation of electric generation supply) and any regulations |
19 | promulgated under 66 Pa.C.S. § 2806.3 by the commission. |
20 | Section 2. Section 2803 of Title 66 is amended to read: |
21 | § 2803. Definitions. |
22 | The following words and phrases when used in this chapter |
23 | shall have the meanings given to them in this section unless the |
24 | context clearly indicates otherwise: |
25 | "Aggregator" or "market aggregator." An entity, licensed by |
26 | the commission, that purchases electric energy and takes title |
27 | to electric energy as an intermediary for sale to retail |
28 | customers. The term shall not include a municipal aggregator of |
29 | electricity. |
30 | "Bilateral contract." An agreement, as approved by the |
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1 | commission, reached by two parties, each acting in its own |
2 | independent self-interest, as a result of negotiations free of |
3 | undue influence, duress or favoritism, in which the electric |
4 | energy supplier agrees to sell and the electric distribution |
5 | company agrees to buy a quantity of electric energy at a |
6 | specified price for a specified period of time under terms |
7 | agreed to by both parties, and which follows a standard industry |
8 | template widely accepted in the industry or variations thereto |
9 | accepted by the parties. Standard industry templates may include |
10 | the EEI Master Agreement for physical energy purchases and sales |
11 | and the ISDA Master Agreement for financial energy purchases and |
12 | sales. |
13 | "Broker" or "marketer." An entity, licensed by the |
14 | commission, that acts as an agent or intermediary in the sale |
15 | and purchase of electric energy but that does not take title to |
16 | electric energy. The term shall include a municipal aggregator |
17 | of electricity. |
18 | "Competitive transition charge." A nonbypassable charge |
19 | applied to the bill of every customer accessing the transmission |
20 | or distribution network which (charge) is designed to recover an |
21 | electric utility's transition or stranded costs as determined by |
22 | the commission under sections 2804 (relating to standards for |
23 | restructuring of electric industry) and 2808 (relating to |
24 | competitive transition charge). |
25 | "Consumer." A retail electric customer. |
26 | "Customer." A retail electric customer. |
27 | "Default service plan." A plan for competitive procurement |
28 | of default service supply approved by the commission under 66 |
29 | Pa.C.S. § 2807(e)(3.6) (relating to duties of electric |
30 | distribution companies). |
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1 | "Default service provider." An electric distribution company |
2 | within its certified service territory or an alternative |
3 | supplier approved by the commission that provides generation |
4 | service to retail electric customers who: |
5 | (1) contract for electric power, including energy and |
6 | capacity, and the chosen electric generation supplier does |
7 | not supply the service; or |
8 | (2) do not choose an alternative electric generation |
9 | supplier. |
10 | "Direct access." The right of electric generation suppliers |
11 | and end-use customers to utilize and interconnect with the |
12 | electric transmission and distribution system on a |
13 | nondiscriminatory basis at rates, terms and conditions of |
14 | service comparable to the transmission and distribution |
15 | companies' own use of the system to transport electricity from |
16 | any generator of electricity to any end-use customer. |
17 | "Electric distribution company." The public utility |
18 | providing facilities for the jurisdictional transmission and |
19 | distribution of electricity to retail customers, except building |
20 | or facility owners/operators that manage the internal |
21 | distribution system serving such building or facility and that |
22 | supply electric power and other related electric power services |
23 | to occupants of the building or facility. |
24 | "Electric generation supplier" or "electricity supplier." A |
25 | person or corporation, including municipal corporations which |
26 | choose to provide service outside their municipal limits except |
27 | to the extent provided prior to the effective date of this |
28 | chapter, brokers and marketers, aggregators, municipal |
29 | aggregators of electricity implementing municipal aggregation |
30 | programs or any other entities, that sells to end-use customers |
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1 | electricity or related services utilizing the jurisdictional |
2 | transmission or distribution facilities of an electric |
3 | distribution company or that purchases, brokers, arranges or |
4 | markets electricity or related services for sale to end-use |
5 | customers utilizing the jurisdictional transmission and |
6 | distribution facilities of an electric distribution company. The |
7 | term excludes building or facility owner/operators that manage |
8 | the internal distribution system serving such building or |
9 | facility and that supply electric power and other related power |
10 | services to occupants of the building or facility. The term |
11 | excludes electric cooperative corporations except as provided in |
12 | 15 Pa.C.S. Ch. 74 (relating to generation choice for customers |
13 | of electric cooperatives). |
14 | "End-use customer." A retail electric customer. |
15 | "Municipal aggregation contract." A written agreement |
16 | between a municipal aggregator of electricity and an electric |
17 | generation supplier that includes: |
18 | (1) Beginning and end dates of the contract period. |
19 | (2) Electric generation rate for the contract period. |
20 | (3) Opt-out and opt-in contract procedures. |
21 | (4) Customer complaint processes. |
22 | (5) Contact information for inquiries related to |
23 | municipal aggregation. |
24 | "Municipal aggregation program." A program providing for a |
25 | municipality acting as a broker or marketer on behalf of the |
26 | eligible consumers within the municipality's geographic |
27 | boundaries not excluded by section 2806.3 (relating to municipal |
28 | aggregation of electric generation supply). A program may be |
29 | either: |
30 | (1) an opt-out program, which shall include every |
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1 | eligible consumer who does not choose to be excluded from the |
2 | program; or |
3 | (2) an opt-in program, which shall include only those |
4 | eligible consumers who choose to participate in the program. |
5 | "Municipal aggregator of electricity." A municipality, |
6 | licensed by the commission, that acts as a broker or marketer on |
7 | behalf of the eligible consumers within the municipality's |
8 | geographic boundaries under municipal aggregation. |
9 | "Municipality." A county, city, township, town or borough. |
10 | The term shall include a municipality subject to the former act |
11 | of April 13, 1972 (P.L.184, No.62), known as the Home Rule |
12 | Charter and Optional Plans Law. |
13 | "Price-to-compare." A line item that appears on a retail |
14 | customer's monthly bill for default service. The price-to- |
15 | compare is equal to the sum of all unbundled generation and |
16 | transmission related charges to a default service customer for |
17 | that month of service. The price-to-compare is a customer- | <-- |
18 | specific an average customer class price for a given month of | <-- |
19 | service reflecting all cost components that the customer avoids |
20 | when choosing to take electric generation service from an |
21 | electric generation supplier. |
22 | "Reliability." Includes adequacy and security. As used in |
23 | this definition, "adequacy" means the provision of sufficient |
24 | generation, transmission and distribution capacity so as to |
25 | supply the aggregate electric power and energy requirements of |
26 | consumers, taking into account scheduled and unscheduled outages |
27 | of system facilities; and "security" means designing, |
28 | maintaining and operating a system so that it can handle |
29 | emergencies safely while continuing to operate. |
30 | "Renewable resource." Includes technologies such as solar |
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1 | photovoltaic energy, solar thermal energy, wind power, low-head |
2 | hydropower, geothermal energy, landfill and mine-based methane |
3 | gas, energy from waste and sustainable biomass energy. |
4 | "Retail customer." A retail electric customer. |
5 | "Retail electric customer." A direct purchaser of electric |
6 | power. The term excludes an occupant of a building or facility |
7 | where the owners/operators manage the internal distribution |
8 | system serving such building or facility and supply electric |
9 | power and other related power services to occupants of the |
10 | building or facility; where such owners/operators are direct |
11 | purchasers of electric power; and where the occupants are not |
12 | direct purchasers. |
13 | "Small commercial customer." A retail electric customer that |
14 | receives electric service under a small commercial, small |
15 | industrial or small business rate classification, and whose |
16 | maximum registered peak load was less than 50 kW within the last |
17 | 12 months. |
18 | "Transition or stranded costs." An electric utility's known |
19 | and measurable net electric generation-related costs, determined |
20 | on a net present value basis over the life of the asset or |
21 | liability as part of its restructuring plan, which traditionally |
22 | would be recoverable under a regulated environment but which may |
23 | not be recoverable in a competitive electric generation market |
24 | and which the commission determines will remain following |
25 | mitigation by the electric utility. This term includes: |
26 | (1) Regulatory assets and other deferred charges |
27 | typically recoverable under current regulatory practice, the |
28 | unfunded portion of the utility's projected nuclear |
29 | generating plant decommissioning costs and cost obligations |
30 | under contracts with nonutility generating projects which |
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1 | have received a commission order, the recoverability of which |
2 | shall be determined under section 2808(c)(1) (relating to |
3 | competitive transition charge). |
4 | (2) Prudently incurred costs related to cancellation, |
5 | buyout, buydown or renegotiation of nonutility generating |
6 | projects consistent with section 527 (relating to |
7 | cogeneration rules and regulations), the recoverability of |
8 | which shall be determined pursuant to section 2808(c)(2). |
9 | (3) The following costs, the recoverability of which |
10 | shall be determined pursuant to section 2808(c)(3): |
11 | (i) Net plant investments and costs attributable to |
12 | the utility's existing generation plants and facilities. |
13 | (ii) The utility's disposal of spent nuclear fuel. |
14 | (iii) The utility's long-term purchase power |
15 | commitments other than the costs defined in paragraphs |
16 | (1) and (2). |
17 | (iv) Retirement costs attributable to the utility's |
18 | existing generating plants other than the costs defined |
19 | in paragraph (1). |
20 | (v) Other transition costs of the utility, including |
21 | costs of employee severance, retraining, early |
22 | retirement, outplacement and related expenses, at |
23 | reasonable levels, for employees who are affected by |
24 | changes that occur as a result of the restructuring of |
25 | the electric industry occasioned by this chapter. |
26 | The term includes any costs attributable to physical plants no |
27 | longer used and useful because of the transition to retail |
28 | competition. The term excludes any amounts previously disallowed |
29 | by the commission as imprudently incurred. To the extent that |
30 | the recoverability of amounts that are sought to be included as |
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1 | transition or stranded costs are subject to appellate review as |
2 | of the time of the commission determination, any determination |
3 | to include such costs shall be reversed to the extent required |
4 | by the results of that appellate review. |
5 | "Transmission and distribution costs." All costs directly or |
6 | indirectly incurred to provide transmission and distribution |
7 | services to retail electric customers. This includes the return |
8 | of and return on facilities and other capital investments |
9 | necessary to provide transmission and distribution services and |
10 | associated operating expenses, including applicable taxes. |
11 | "Universal service and energy conservation." Policies, |
12 | protections and services that help low-income customers to |
13 | maintain electric service. The term includes customer assistance |
14 | programs, termination of service protection and policies and |
15 | services that help low-income customers to reduce or manage |
16 | energy consumption in a cost-effective manner, such as the low- |
17 | income usage reduction programs, application of renewable |
18 | resources and consumer education. |
19 | Section 3. Title 66 is amended by adding a section to read: |
20 | § 2806.3. Municipal aggregation of electric generation supply. |
21 | (a) Licensing.--The commission, in accordance with its |
22 | regulations, within 30 days following receipt of an application, |
23 | may issue a license to a municipality as an electric generation |
24 | supplier to act as a municipal aggregator of electric generation |
25 | supply service for eligible consumers within the municipality's |
26 | geographic boundaries. A municipal aggregator of electricity |
27 | under this section shall not be considered a public utility or a |
28 | utility engaging in the wholesale purchase and resale of |
29 | electricity, and the provision of municipal aggregation shall |
30 | not be considered a wholesale utility transaction. |
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1 | (b) Ordinance required.--Prior to applying for an electric |
2 | generation supplier license with the commission, the governing |
3 | body of the municipality shall adopt an ordinance authorizing |
4 | the municipality to apply for an electric generation supplier |
5 | license to serve as a municipal aggregator of electricity, |
6 | indicate whether the municipal aggregation shall be an opt-in or |
7 | opt-out program and shall identify municipal officials by either |
8 | title of office or name, or their duly appointed designees, |
9 | authorized to execute documents with the commission on behalf of |
10 | the municipality. A municipal aggregator of electricity shall |
11 | provide reasonable public notice of municipal consideration of |
12 | any ordinance authorizing a municipal aggregation program, which |
13 | shall include newspaper publication on a monthly basis beginning |
14 | at least 90 days prior to the adoption of an ordinance |
15 | authorizing an opt-out program. |
16 | (c) Municipal aggregation contracts.-- |
17 | (1) A municipal aggregator of electricity may negotiate |
18 | and enter into a contract for electric generation supply |
19 | services with an electric generation supplier. A municipal |
20 | aggregator of electricity shall use a competitive procurement |
21 | or request-for proposal process to select the electric |
22 | generation supplier from the lowest responsible qualified | <-- |
23 | bidder, regardless of the generation fuel type, location, |
24 | technology or new or existing status of the generation that |
25 | the electric generation supplier will use to supply the |
26 | municipal aggregation. An executed municipal aggregation |
27 | contract shall not go into effect prior to filing with the |
28 | commission, and a copy of the filed contract shall be |
29 | provided to the electric distribution company whose service |
30 | territory includes the municipal aggregator. Each contract |
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1 | shall include: |
2 | (i) provisions for the timing of the distribution of |
3 | customer lists by the electric distribution company and |
4 | customer notices consistent with this section; |
5 | (ii) a consumer education plan with appropriate |
6 | consumer education materials to inform consumers about |
7 | the existence of the municipal aggregation and the |
8 | highlights of the program, which shall be deployed |
9 | concurrently with the distribution of opt-in or opt-out |
10 | notices, as applicable; and |
11 | (iii) a copy of the sample opt-in or opt-out notice |
12 | to be sent to consumers, which shall provide the |
13 | identification of the selected electric generation |
14 | supplier. |
15 | (2) Any contract between a municipality and an electric |
16 | generation supplier executed under this section shall clearly |
17 | indicate whether it is for an opt-in or opt-out municipal |
18 | aggregation and the price that the contracted electric |
19 | generation supplier will charge customers for electric |
20 | generation supply, as well as the time period of the |
21 | contract. A contract executed under this section may not |
22 | exceed three years. If the price is a fixed rate, the price |
23 | shall be expressed in cents per kilowatt hour. If the |
24 | contract provides for a percentage off of the default service |
25 | rate or any other type of pricing arrangement, an |
26 | understandable description of the amount of the percentage |
27 | discount or other pricing arrangement and how the rate may |
28 | change shall be provided. If the electric generation supplier |
29 | will charge different rates to different rate classes within |
30 | the municipality, the applicable rate to consumers within |
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1 | each rate class shall be described. |
2 | (d) Opt-out programs; notice and opt-out procedures.-- |
3 | (1) No consumer may be bound by a contract between a |
4 | municipal aggregator of electricity and an electric |
5 | generation supplier in opt-out municipal aggregation. |
6 | Customers receiving electric generation service under an opt- |
7 | out municipal aggregation program may switch to an electric |
8 | generation supplier other than the supplier to the municipal |
9 | aggregation program at any time without penalty, cancellation |
10 | fees or other restrictions, provided that the switch shall |
11 | take place pursuant to commission-approved switching |
12 | procedures. |
13 | (2) Any contract between a municipality and an electric |
14 | generation supplier executed under this section shall contain |
15 | procedures for addressing consumer disputes and complaints |
16 | related to supply services received pursuant to a municipal |
17 | aggregation program. The procedures shall be made available |
18 | to consumers, at least annually, in a clear and easily |
19 | understandable format. After a municipality executes a |
20 | contract for electric generation services, but prior to |
21 | including a consumer's electric account or accounts in an |
22 | opt-out municipal aggregation, a municipal aggregator of |
23 | electricity shall provide each eligible consumer with written |
24 | notice that the consumer's account will be automatically |
25 | included in the municipal aggregation unless the customer |
26 | affirmatively opts out of the municipal aggregation. The |
27 | notice, written in plain language, shall include all of the |
28 | following: |
29 | (i) A description of the ordinance adopted by the |
30 | municipality authorizing it to apply for a license from |
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1 | the commission, the competitive procurement process under |
2 | which offers for electric generation supply were |
3 | solicited, and a location where, during regular business |
4 | hours, consumers may view the ordinance and executed |
5 | contract free of charge or obtain a copy for a reasonable |
6 | fee. |
7 | (ii) Disclosure of the price that the contracted |
8 | electric generation supplier will charge customers for |
9 | electric generation service. If the price is a fixed |
10 | rate, the municipal aggregator of electricity shall |
11 | express the price in cents per kilowatt hour and list the |
12 | most recent applicable price-to-compare of the default |
13 | service provider in whose service territory the |
14 | municipality is located. If the contract provides for a |
15 | percentage off of the default service rate or any other |
16 | type of pricing arrangement, an understandable |
17 | description of the amount of the percentage discount or |
18 | other pricing arrangement and how the rate may change |
19 | shall be provided. If the electric generation supplier |
20 | charges different rates to different rate classes within |
21 | the municipality, the municipal aggregator of electricity |
22 | shall describe the applicable rate to consumers within |
23 | each rate class and the associated price-to-compare. |
24 | (iii) An itemized list and explanation of all fees |
25 | and charges that are not incorporated into the rates |
26 | charged for electric generation service that the electric |
27 | generation supplier will charge to the consumer for |
28 | participating in the municipal aggregation, including any |
29 | surcharges that may be assessed. |
30 | (iv) Disclosure of the estimated service |
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1 | commencement date and notice that the consumer may opt |
2 | out of the municipal aggregation program at any time. |
3 | (v) A statement informing consumers that if they |
4 | choose to opt out of the municipal aggregation they will |
5 | be served by the default service offer established under |
6 | section 2807(e) (relating to duties of electric |
7 | distribution companies) until the consumer chooses an |
8 | alternative electric generation supplier or chooses to |
9 | participate in a subsequent municipal aggregation. |
10 | (vi) A statement informing consumers that if they |
11 | switch back to the default service provider they may not |
12 | be served under the same rates, terms and conditions that |
13 | apply to other customers within the municipal |
14 | aggregation. |
15 | (vii) Disclosure of any credit, collection and |
16 | deposit policies and requirements. |
17 | (viii) Disclosure of any limitations or conditions |
18 | on customer acceptance into the municipal aggregation. |
19 | (ix) A description of the process for consumers to |
20 | opt out of the municipal aggregation. The process shall |
21 | include provisions for consumers to return a postcard or |
22 | similar notice to the municipal aggregator of electricity |
23 | or its agent. The process may include other opt-out |
24 | methods, such as telephonic or Internet notice, if these |
25 | alternative methods allow for verification of a |
26 | consumer's election to opt out of the municipal |
27 | aggregation. |
28 | (x) A local or toll-free telephone number, with the |
29 | available calling hours, that consumers may call with |
30 | questions regarding the formation or operation of the |
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1 | municipal aggregation. |
2 | (e) Opt-in programs; notice and opt-in procedures.-- |
3 | (1) No consumer may be bound by a contract between a |
4 | municipal aggregator and an electric generation supplier in |
5 | opt-in municipal aggregation until the consumer has been |
6 | provided an opt-in notice required under this subsection and |
7 | the expiration of any waiting period for a consumer to cancel |
8 | the pending change to the electric generation supplier |
9 | following written confirmation by the electric distribution |
10 | company as prescribed by regulation. Customers receiving |
11 | electric generation service under an opt-in municipal |
12 | aggregation program may switch to an electric generation |
13 | supplier other than the supplier to the municipal aggregation |
14 | program at any time without penalty, cancellation fees or |
15 | other restrictions, provided that the switch shall take place |
16 | pursuant to commission-approved switching procedures. |
17 | (2) After a municipality executes a contract for |
18 | electric generation services, but prior to including a |
19 | consumer's electric account or accounts in an opt-in |
20 | municipal aggregation, a municipal aggregator of electricity |
21 | shall provide each eligible consumer with written notice that |
22 | the customer may participate in the municipal aggregation. |
23 | The notice, written in plain language, shall include all of |
24 | the information required under subsection (d)(2)(i), (ii), |
25 | (iii), (v), (vi), (vii), (ix) and (x) and the following |
26 | information: |
27 | (i) A statement informing consumers that if they do |
28 | not choose to opt in to the municipal aggregation they |
29 | will be served by the default service offer established |
30 | under section 2807(e) until the consumer chooses an |
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1 | alternative electric generation supplier or chooses to |
2 | participate in a subsequent municipal aggregation. |
3 | (ii) A description of the process for consumers to |
4 | opt in to the municipal aggregation. The process shall |
5 | include provisions for consumers to return a postcard or |
6 | similar notice to the municipal aggregator of electricity |
7 | or its agent. The process may include other opt-in |
8 | methods, such as telephonic or Internet notice, if these |
9 | alternative methods allow for verification of a |
10 | consumer's election to opt in to the municipal |
11 | aggregation. The time period for a customer to choose to |
12 | opt in to the municipal aggregation shall be at least 30 |
13 | days from the date of the mailing of the written notice. |
14 | If a consumer's return postcard or notice is postmarked |
15 | before the opt-in deadline has elapsed, the consumer |
16 | shall be deemed to have opted in to the municipal |
17 | aggregation. |
18 | (f) Additional requirements; provision of customer |
19 | information.-- |
20 | (1) The following consumers shall be excluded from |
21 | enrollment in a municipal aggregation: |
22 | (i) For opt-out municipal aggregation only, a |
23 | consumer that has opted out of the municipal aggregation |
24 | under subsection (d) or that has a special contract or |
25 | agreement with an electric distribution company or a |
26 | consumer under an existing contract with a licensed |
27 | electric generation supplier other than a consumer under |
28 | a municipal aggregation contract with the current |
29 | electric generation supplier of the municipal |
30 | aggregation. |
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1 | (ii) A consumer that is not located within the |
2 | geographic boundaries of the municipal aggregator of |
3 | electricity. |
4 | (iii) A consumer other than a residential or small |
5 | commercial customer. |
6 | (iv) A consumer that is enrolled in an electric |
7 | distribution company's customer assistance program that |
8 | does not include any electric generation supplier charges |
9 | in the calculation of the customer assistance program |
10 | benefit. |
11 | (v) End-use consumers served or authorized to be |
12 | served by an electric cooperative or loads served by a |
13 | municipality that owns and operates its own electric |
14 | distribution system. |
15 | (2) No earlier than three months and no later than 30 |
16 | days prior to the end of the term of a municipal aggregation |
17 | contract and commencement of a new municipal aggregation |
18 | contract or contract renewal term, a municipal aggregator of |
19 | electricity or the electric generation supplier to the |
20 | municipal aggregation shall provide notice to all consumers |
21 | served by the municipal aggregation or who opted out of the |
22 | municipal aggregation of their right to opt out of the |
23 | subsequent municipal aggregation and take service pursuant to |
24 | the default service provider's default service offer or with |
25 | another electric generation supplier without fee or penalty. |
26 | The notice shall also explicitly inform customers who may |
27 | have opted out of any previous municipal aggregation |
28 | contracts that they may be eligible to participate in the |
29 | upcoming municipal aggregation contract, pursuant to the |
30 | eligibility requirements defined in this subsection. The |
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1 | notice shall follow the procedures established for the |
2 | initial opt-out or opt-in notice set forth in subsection (d) |
3 | or (e), as applicable, and shall prominently disclose to |
4 | customers all changes to the terms and conditions associated |
5 | with the municipal aggregation. The municipal aggregator of |
6 | electricity may not send an opt-out notice to the same |
7 | customer account for the period covered by the municipal |
8 | aggregation contract where the customer account has |
9 | previously opted out. |
10 | (3) No municipal aggregator of electricity or electric |
11 | generation supplier serving a municipal aggregation may |
12 | impose any term, condition, fee or charge on a consumer |
13 | served by a municipal aggregation that is materially |
14 | different from the particular term, condition, fee or charge |
15 | which was included within the contract between the municipal |
16 | aggregator of electricity and the electric generation |
17 | supplier or the notices provided under subsection (d) or (e). |
18 | (4) The following shall apply to provisions for the list |
19 | of eligible municipal aggregation consumers: |
20 | (i) After the issuance of a license to a municipal |
21 | aggregator of electricity and upon request of the |
22 | municipal aggregator of electricity or an electric |
23 | generation supplier designated by the municipal |
24 | aggregator, an electric distribution company shall use |
25 | reasonable efforts to provide the following information |
26 | to the extent it is maintained by the electric |
27 | distribution company for all consumers residing within |
28 | the municipal aggregator of electricity's geographic |
29 | boundaries to the municipal aggregator of electricity or |
30 | the electric generation supplier within 30 calendar days |
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1 | of the request: |
2 | (A) An updated list of names, addresses, account |
3 | numbers, rate codes, indication of whether a consumer |
4 | is enrolled in a customer assistance program or |
5 | budget billing, load data and other related consumer |
6 | information, consistent with the information that is |
7 | provided to other electric generation suppliers. |
8 | (B) An identification of consumers who are |
9 | currently under contract with an electric generation |
10 | supplier or in a special arrangement with the |
11 | electric distribution company. |
12 | (ii) The municipal aggregator of electricity or the |
13 | electric generation supplier to the municipal aggregation |
14 | may only use the consumer information from the list of |
15 | eligible municipal aggregation consumers for the purpose |
16 | of forming and operating its municipal aggregation and |
17 | may not disclose the consumer information unless the |
18 | release is pursuant to a court order or a commission |
19 | regulation or order. |
20 | (iii) Upon completion of the mailing of opt-out |
21 | notices and expiration of any associated waiting period |
22 | under subsection (d)(1), a municipal aggregator of |
23 | electricity or the electric generation supplier to a |
24 | municipal aggregation may request updated consumer |
25 | information required under this subsection, and the |
26 | electric distribution company shall use reasonable |
27 | efforts to provide such information within ten days of |
28 | the request. |
29 | (5) The following shall apply to the notice of municipal |
30 | aggregation and opt-out notice: |
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1 | (i) Each municipal aggregator of electricity shall |
2 | ensure that only eligible consumers are included in its |
3 | municipal aggregation. |
4 | (ii) If accounts of ineligible consumers or |
5 | consumers who have not opted in or who have opted out of |
6 | the municipal aggregation, as applicable, are switched to |
7 | the electric generation supplier to the municipal |
8 | aggregation, the municipal aggregator of electricity |
9 | shall promptly inform the consumer and take all necessary |
10 | actions to have the consumer switched back to the |
11 | consumer's original electric generation supplier or |
12 | default service provider at no cost to the consumer and |
13 | reimburse the consumer for any amount paid under the |
14 | municipal aggregation that is greater than the amount |
15 | otherwise due for its original generation service. The |
16 | original electric generation supplier or default service |
17 | provider shall not be liable for any costs, fees, |
18 | penalties or damages, including any imposed by the |
19 | regional transmission organization in which the municipal |
20 | aggregator of electricity is located, arising from the |
21 | improper transfer. Consistent with due process, the |
22 | commission may require the electric generation supplier |
23 | to the municipal aggregator of electricity to pay any |
24 | such amounts incurred by the original electric generation |
25 | supplier or default service provider, plus any amounts |
26 | the original electric generation supplier would have |
27 | received from the consumer for electric generation |
28 | service from the time of the improper transfer until the |
29 | consumer is returned to electric generation service |
30 | provided by the original electric generation supplier. |
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1 | (g) Coordination with default service.-- |
2 | (1) The implementation of a municipal aggregation |
3 | program shall be coordinated with the default service supply |
4 | procurement plans of the electric distribution company whose |
5 | service territory encompasses the boundaries of the |
6 | municipality participating in the program. |
7 | (2) Unless otherwise authorized by the commission, no |
8 | municipal aggregator may enter into a contract for electric |
9 | generation services during the term of the default service |
10 | supply procurement plan, approved by the commission on the |
11 | effective date of this section, of the electric distribution |
12 | company whose service territory encompasses the boundaries of |
13 | the municipal aggregator. |
14 | (3) If a municipal aggregator of electricity ceases to |
15 | provide municipal aggregation services during the current |
16 | term of the municipal aggregation contract filed with the |
17 | commission and the customers of the municipal aggregator of |
18 | electricity are returned to default service, the default |
19 | service rate for such customers shall be the market price for |
20 | generation service, including all charges for spot market |
21 | purchases of energy, capacity, transmission, ancillary |
22 | services, compliance with the act of November 30, 2004 |
23 | (P.L.1672, No.213), known as the Alternative Energy Portfolio |
24 | Standards Act, and all other costs incurred by the default |
25 | service provider in the provision of generation service to |
26 | such customers, for the remainder of the default service |
27 | provider's current default service plan. |
28 | (h) Duties of electric distribution companies and cost |
29 | recovery.-- |
30 | (1) Each electric distribution company shall provide |
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1 | reasonable cooperation with municipal aggregators of |
2 | electricity or the electric generation supplier to the |
3 | municipal aggregation to facilitate the proper formation and |
4 | functioning of opt-out or opt-in municipal aggregation, as |
5 | applicable, including coordinating with municipal aggregators |
6 | of electricity and electric generation suppliers to promote |
7 | nondiscriminatory access to electric services and to process |
8 | enrollment requests from municipal aggregators of electricity |
9 | or their designated electric generation supplier in |
10 | accordance with the same processes applicable to other |
11 | licensed electric generation suppliers providing service to |
12 | retail electric customers. |
13 | (2) An electric distribution company shall recover on a |
14 | full and current basis all costs incurred to support and that |
15 | are related to municipal aggregation through a nonbypassable |
16 | reconcilable automatic adjustment charge under section 1307 |
17 | (relating to sliding scale of rates; adjustments) from all |
18 | residential and small commercial consumers accessing the |
19 | electric distribution company's transmission and distribution |
20 | system. |
21 | (i) Duties of commission.--The commission shall: |
22 | (1) Promulgate regulations necessary to implement the |
23 | provisions of this section, including, but not limited to, |
24 | developing opt-in and opt-out notices for use by municipal |
25 | aggregators of electricity in this Commonwealth. |
26 | (2) Promulgate regulations and take any other action |
27 | necessary to coordinate the implementation of municipal |
28 | aggregation programs with commission approval of electric |
29 | distribution company default supply procurement plans. |
30 | Section 4. Sections 2807(d)(1) and 2809(a) of Title 66 are |
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1 | amended to read: |
2 | § 2807. Duties of electric distribution companies. |
3 | * * * |
4 | (d) Consumer protections and customer service.--The electric |
5 | distribution company shall continue to provide customer service |
6 | functions consistent with the regulations of the commission, |
7 | including meter reading, complaint resolution and collections. |
8 | Customer services shall, at a minimum, be maintained at the same |
9 | level of quality under retail competition. |
10 | (1) [The] Except as provided under section 2806.3 |
11 | (relating to municipal aggregation of electric generation |
12 | supply), the commission shall establish regulations to ensure |
13 | that an electric distribution company does not change a |
14 | customer's electricity supplier without direct oral |
15 | confirmation from the customer of record or written evidence |
16 | of the customer's consent to a change of supplier. |
17 | * * * |
18 | § 2809. Requirements for electric generation suppliers. |
19 | (a) License requirement.--No person or corporation, |
20 | including municipal corporations which choose to provide service |
21 | outside their municipal limits except to the extent provided |
22 | prior to the effective date of this chapter, brokers and |
23 | marketers, aggregators, municipal aggregators of electricity |
24 | implementing municipal aggregation programs and other entities, |
25 | shall engage in the business of an electric generation supplier |
26 | in this Commonwealth unless the person or corporation holds a |
27 | license issued by the commission. The commission may waive |
28 | certain licensing requirements in its regulations for municipal |
29 | aggregators of electricity implementing municipal aggregation |
30 | programs. Consistent with 15 Pa.C.S. Ch. 74 (relating to |
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1 | generation choice for customers of electric cooperatives), |
2 | electric cooperative corporations must possess a certificate for |
3 | service to supply generation services beyond their territorial |
4 | limits. |
5 | * * * |
6 | Section 5. This act shall take effect in 60 days. |
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