THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY TOMLINSON AND BOSCOLA, JUNE 18, 2009

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JUNE 18, 2009  

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, providing for rate change mitigation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 66 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 2806.3.  Rate change mitigation.

(a)  Deferral program.--An electric distribution company

whose total retail rate including generation, transmission and

distribution service components and any applicable surcharge for

a customer class is anticipated to rise by more than 12% upon

the expiration of a generation rate cap established in an

electric utility restructuring proceeding specified in section

2804(4) (relating to standards for restructuring of electric

industry) or a restructuring plan shall submit a rate mitigation

plan to the commission for approval no later than one year prior

to the date of the expiration of the generation rate cap. The

rate mitigation plan shall provide the following:

(1)  A rate mitigation phase-in program, which shall be

authorized for residential or small business customers, using

25kW or less in maximum registered peak load. The rate

mitigation program shall limit the anticipated total retail

rate increase for the initial default service generation rate

increase for a period of up to five years in accordance with

the following:

(i)  The plan shall provide for residential and small

business customers using 25kW or less to be permitted to

make payments in accordance with the following schedule:

(A)  Year one following the expiration of the

generation rate caps - no more than a 9% increase

over the rate on the effective date of this section

or as certified by the commission.

(B)  Year two following the expiration of the

generation rate caps - no more than an 18% increase

over the rate on the effective date of this section

or as certified by the commission.

(C)  Year three following the expiration of the

generation rate caps - no more than a 27% increase

over the rate on the effective date of this section

or as certified by the commission.

(D)  Year four following the expiration of the

generation rate caps - no more than a 36% increase

over the rate on the effective date of this section

or as certified by the commission.

(E)  Year five following the expiration of the

generation rate caps - no more than a 45% increase

over the rate on the effective date of this section

or as certified by the commission.

(ii)  A customer may elect, but shall not be

required, to participate in the rate mitigation phase-in

program under this paragraph. The electric distribution

company shall provide notice of the ability to elect to

participate in the rate mitigation program in at least

four billing statements prior to the expiration of the

generation rate cap. Notice shall also be posted on the

electric distribution company's Internet website. The

notice shall include:

(A)  A form to elect participation in the

program.

(B)  A toll-free telephone number to allow a

customer to elect participation in the program by

telephone or to receive additional information.

(iii)  In order to participate in the rate mitigation

phase-in program, the customer shall file a written or

electronic election to participate.

(2)  A competitively neutral rate mitigation option

approved by the commission before being implemented. A

customer taking generation service from either the default

service provider or an alternative electric generation

supplier may select the option.

(3)  In addition to the mitigation strategy under this

subsection, an electric distribution company may propose

other reasonable rate mitigation strategies.

(b)  Commission duties.--The commission shall review the plan

and certify the rate as of the effective date of this section as

it pertains to residential and small business customers using

25kW or less in maximum registered peak load prior to the start

date of the program.

Section 2.  This act shall take effect in 60 days.