Bill Text: PA HB411 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for municipal aggregation of electric generation supply.

Sponsorship: Strong Partisan Bill (Democrat 12-1)

Status: (Introduced - Dead) 2011-02-03 - Referred to CONSUMER AFFAIRS [HB411 Detail]

Download: Pennsylvania-2011-HB411-Introduced.html

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PRINTER'S NO. 378
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 411 Session of2011
INTRODUCED BY PRESTON, CALTAGIRONE, D. COSTA, FABRIZIO, FREEMAN, HORNAMAN, LONGIETTI, PASHINSKI, REICHLEY, SAINATO, WAGNER AND YOUNGBLOOD, FEBRUARY 3, 2011
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 3, 2011
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 63
MUNICIPAL AGGREGATION OF
ELECTRIC GENERATION SUPPLY
Sec.
6301. Legislative purpose.
6302. Definitions.
6303. Grant of authority.
6304. Intergovernmental cooperation.
6305. Limitations.
§ 6301. 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.
§ 6302. 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:
"Commission." The Pennsylvania Public Utility Commission.
"Consumer." As defined in 66 Pa.C.S. § 2803 (relating to
definitions).
"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).
§ 6303. Grant of authority.
(a) Authority.--Except as provided under subsection (b) and
notwithstanding any law, a municipality is authorized to:
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(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.
§ 6304. 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).
§ 6305. 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
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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
section 2807(e)(3.6) (relating to duties of electric
distribution companies).
"Default service provider." An electric distribution company
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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
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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 ending 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
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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-related
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
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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 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
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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
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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
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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 from the lowest responsible qualified
bidder, 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:
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(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.
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(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.
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) A description of the ordinance adopted by the
municipality authorizing it to apply for a license from
the commission, the competitive procurement process under
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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.
(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.
(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
surcharges that may be assessed.
(iv) Disclosure of the estimated service
commencement date and notice that the consumer may opt
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out of the municipal aggregation program at any time.
(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.
(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.
(vii) Disclosure of any credit, collection and
deposit policies and requirements.
(viii) Disclosure of any limitations or conditions
on customer acceptance into the municipal aggregation.
(ix) A description of the process 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.
(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.
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(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)(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
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participate in a subsequent municipal aggregation.
(ii) A description of the process 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
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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
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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:
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(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
20110HB0411PN0378 - 20 -
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
shall 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) Coordination with default service.--
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(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
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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:
(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:
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§ 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),
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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.
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