PRINTER'S NO. 959
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
833
Session of
2023
INTRODUCED BY AUMENT, YAW, PHILLIPS-HILL, REGAN AND CULVER,
JUNE 23, 2023
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JUNE 23, 2023
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, providing for consumer choice billing;
imposing penalties; and making repeals.
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 chapter to read:
CHAPTER 22A
CONSUMER CHOICE BILLING
Sec.
22A01. Scope of chapter.
22A02. Declaration of policy.
22A03. Definitions.
22A04. Authorization of consumer choice billing.
22A05. Implementation plans.
22A06. Report.
22A07. Penalties.
§ 22A01. Scope of chapter.
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This chapter provides for enhanced retail electric and
natural gas competition through the adoption of electric and
natural gas consumer choice billing and enhanced consumer
protection regulations to be promulgated and enforced by the
commission.
§ 22A02. Declaration of policy.
The General Assembly finds and declares as follows:
(1) Reasonably priced reliable sources of electricity
and natural gas generated and supplied in this Commonwealth
are vital to the health, safety and welfare of this
Commonwealth's residents, businesses and economy.
(2) Numerous states, including this Commonwealth, have
transitioned to a restructured energy market that has lowered
the cost of electricity and natural gas and spurred
technological and product innovations by authorizing
competitive retail electric and natural gas supplier
shopping.
(3) The former provisions of 15 Pa.C.S. Ch. 74 (relating
to generation choice for customers of electric cooperatives)
and Chapters 22 (relating to natural gas competition) and 28
(relating to restructuring of electric utility industry)
allow retail competition among electric and natural gas
generation companies in order to lower consumer costs while
maintaining regulation and supervision of electric and
natural gas transmission and distribution services.
(4) The year 2021 marked the 25th anniversary of the
enactment of the former provisions of 15 Pa.C.S. Ch. 74 , the
22nd anniversary of the enactment of the Natural Gas Choice
and Competition Act and the 25th anniversary of the enactment
of the Electricity Generation Customer Choice and Competition
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Act , yet a ccording to utility shopping statistics released in
January 2022 by the Office of Consumer Advocate, only 18.9%
of residential electric consumers and 11.9% of residential
natural gas consumers are served by an alternative service
supplier, which is an indication that there is tremendous
growth potential in this Commonwealth's residential electric
and natural gas consumer market.
(5) In markets where suppliers do not have access to
smart meter data or the ability to render consolidated bills,
consumers are restricted to one-size-fits-all rates, which
provide limited benefits.
(6) These basic rates may meet the needs of some
consumers, but consolidated billing enables the development
of pricing plans and offers that meet the unique needs of all
consumers, including time-varying rates, demand response and
renewable energy plans.
(7) While this Commonwealth's consumers have invested
billions of dollars into the deployment of more than
5,000,000 smart meters across this Commonwealth, regulated
electric and natural gas distribution utilities have not
capitalized on this consumer usage data to offer cost-
effective and affordable time-of-use products to consumers.
(8) Maintaining the status quo of retail electric and
natural gas policies is not sound public policy given the
turbulence in residential electric and natural gas rates and
the historic public and private financial investments in this
Commonwealth's ever-changing energy marketplace.
(9) By allowing a direct relationship between retail
electric and natural gas suppliers and consumers who choose
to shop, consumer choice billing will enable suppliers to
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clarify their role with consumers, who may believe that they
are only consumers of the utility regardless of their retail
supplier, and solidify that role by providing the products
and services the consumers desire.
(10) The commission's mission is to balance the needs of
consumers and utilities, ensure safe and reliable utility
service, educate consumers on making independent and informed
utility choices and to foster new technologies and
competitive markets in an environmentally sound manner.
(11) To achieve a fully functioning competitive electric
and natural gas market in this Commonwealth, the commission
has the legal and regulatory authority to promote and further
incentivize the development of dynamic electric and natural
gas supplier product offerings to consumers and improve
utility consumer service through the adoption and regulation
of consumer choice billing.
§ 22A03. 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:
"Applicant." An entity pursuing a new or amended electric
generation supplier or natural gas supplier license issued by
the commission.
"Consumer." A residential, commercial or industrial retail
electric or natural gas customer.
"Consumer choice billing." The consolidated billing of
retail electric and natural gas services, as chosen by an
electric generation supplier or natural gas supplier for all
electric or natural gas charges, including electric or natural
gas distribution and transmission charges.
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"Electric distribution company." As defined in section 2803
(relating to definitions).
"Electric generation supplier." As defined in section 2803.
"Natural gas distribution company." As defined in section
2202 (relating to definitions).
"Natural gas supplier." As defined in section 2202.
§ 22A04. Authorization of consumer choice billing.
(a) Duty.--T he commission shall promulgate temporary
regulations to authorize consumer choice billing, including all
of the following:
(1) Enhancing consumer protections for consumers who
select an alternative electric generation supplier or natural
gas supplier and elect to be billed by the alternative
electric generation supplier or natural gas supplier.
(2) Increasing competition in this Commonwealth's
electric generation supplier and natural gas supplier
marketplaces and fostering the development of direct and
transparent relationships between suppliers and their
consumers.
(b) Implementation.--For the purpose of implementing this
section, the temporary regulations promulgated by the commission
under subsection (a) shall include all of the following:
(1) An additional application requirement for the new
licensure of an electric generation suppler or natural gas
supplier, or the amendment of an existing electric generation
suppler or natural gas supplier license to provide for
consumer choice billing if the applicant maintains a current
and valid license issued by the commission and submits a
statement confirming that the applicant will not offer or
provide consumer choice billing absent the commission's
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authorization for the provisioning of consumer choice
billing.
(2) A requirement that an applicant seeking to provide
consumer choice billing meets the following technical and
financial qualifications:
(i) Maintains bonding or financial guarantees with
the commission for sales of electricity in the amount of
$250,000 or 10% of the annual gross receipts, whichever
is greater. The security under this subparagraph shall be
in addition to the security required under 52 Pa. Code §
54.40 (relating to bonds or other security).
(ii) Maintains bonding or financial guarantees with
each n atural gas distribution company in the service
territory where the applicant provides service. The
security under this subparagraph shall be in addition to
the security required under 52 Pa. Code § 62.11 1
(relating to bonds or other security).
(iii) Maintains bonding or financial guarantees with
each utility where the applicant plans to offer consumer
choice billing in an amount equal to the sum of the two
highest months of utility receivables in the previous 12
months in addition to the security required under 52 Pa.
Code § § 54.40 and 62.11 1.
(iv) Certifies that the applicant has not had its
license revoked in this Commonwealth in the previous five
years.
(v) Certifies that the applicant will comply with 52
Pa. Code Ch. 56 (relating to standards and billing
practices for residential public utility service) for
bills that contain regulated e lectric distribution
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company or n atural gas distribution company charges and
retail energy charges.
(vi) Demonstrates that the applicant can meet the
rigorous demands of increased consumer service and
dispute resolution functions, including the operation of
call centers, support of complex billing requirements,
responsible execut ion of collections functions and the
quality assurance and recordkeeping necessary to handle
e lectric distribution company or n atural gas distribution
company charges that contribute to potential electric or
natural gas service disconnections.
(vii) Attests to the applicant's ability to comply
with applicable regulations related to payment plans or
to assist customers with other payment assistance options
by employing new or existing consumer assistance programs
prior to the initiation of the termination process for a
reason specified under Chapter 14 (relating to
responsible utility customer protection).
(viii) Agrees to purchase the receivables for
regulated charges of an e lectric distribution company or
n atural gas distribution company.
(ix) Agrees to timely inform the commission of any
material change or the cancellation of the bonding or
collateral required under this paragraph.
( x) Agrees to comply with all of the following:
(A) 52 Pa. Code § 54.43(f) (relating to
standards of conduct and disclosure for licensees)
for an electric generation supplier.
(B) 52 Pa. Code § 62.114(e) (relating to
standards of conduct and disclosure for licensees)
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for a natural gas supplier.
(C) 52 Pa. Code Ch. 111 (relating to marketing
and sales practices for the retail residential energy
market).
(3) A process for an applicant to petition the
commission for authorization to provide consumer choice
billing through a third party if the applicant does not have
five years of experience or if the applicant otherwise meets
the qualifications under paragraph (2).
(4) A mechanism to create a bypassable billing service
charge that is wholly based on the fully unbundled direct and
indirect costs of an e lectric distribution company's billing
system or a n atural gas distribution company's billing system
after a commission-imposed prudency review that guarantees
the recovery of all prudent investments in billing
infrastructure prior to the implementation of consumer choice
billing.
(5) A requirement that an e lectric distribution company
or n atural gas distribution company timely furnish an
electric generation supplier or natural gas supplier
participating in consumer choice billing with the necessary
billing data.
(6) A standardized form of consumer notice to be used
when an electric generation supplier or natural gas supplier
ceases providing a particular type of service.
(7) A consumer choice billing working group for
stakeholders to draft tariff provisions, collect data, design
business processes, configure electronic transactions, review
similar programs in other states, define a comprehensive
consumer choice billing education program to support consumer
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choice billing launches and consider any other relevant
matters, including the process for disconnection or
termination of utility service outside of the scope of this
chapter.
(8) An electronic data exchange working group to develop
proposed electronic transactions for an electric distribution
company, natural gas distribution company, electric
generation supplier or natural gas supplier to exchange
necessary consumption, billing, payment and related data.
(9) A prohibition on an electric distribution company or
natural gas distribution company from requiring an electric
generation supplier or natural gas supplier to purchase a
consumer's arrears from the electric distribution company,
natural gas distribution company or another entity.
(10) A prohibition on an electric distribution company
or natural gas distribution company from utilizing consumer
information to:
(i) market standard offer service;
(ii) research or market other electric distribution
company or natural gas distribution company services; or
(iii) share information the electric distribution
company or natural gas distribution company acquires
through electronic transactions that facilitate consumer
choice billing with the unregulated affiliates of the
electric distribution company or natural gas distribution
company or any other nongovernmental entity.
(11) The circumstances, terms and conditions for an
electric generation supplier or natural gas supplier to
change a consumer's billing method to or from consumer choice
billing and the corresponding content and timing of consumer
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notification.
(12) The terms and conditions for a consumer on budget
billing with an electric distribution company or natural gas
distribution company at the time of the switch.
(13) The terms and conditions for the purchase of
receivables, including prioritization of partial payments and
dispute resolution processes.
(14) The terms and conditions for nonpayment by a
consumer receiving consumer choice billing, including the
content of collection notices, purchase of arrears and
limitations and unpaid charges.
(15) The terms and conditions for the participation of
consumers receiving energy assistance through a utility's
customer assistance program in consumer choice billing.
(c) Temporary regulations.--
(1) In order to facilitate the prompt implementation of
this chapter, regulations promulgated under subsection (a)
shall be deemed temporary regulations that shall expire no
later than two years following the publication of the
temporary regulations. The temporary regulations shall not be
subject to:
(i) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of
1929.
(ii) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(iii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
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(iv) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(2) The commission's authority to promulgate temporary
regulations shall expire upon the promulgation of final-form
regulations, or two years after the effective date of this
paragraph, whichever is later.
§ 22A05. Implementation plans.
(a) Submission.--No later than 45 days after the effective
date of this section, the commission shall issue an order
requiring an electric distribution company or natural gas
distribution company to submit an implementation plan to the
commission within 180 days. The implementation plan shall:
(1) demonstrate how the electric distribution company or
natural gas distribution company will meet the requirements
under this chapter;
(2) be subject to commission approval on an expedited
basis, if necessary; and
(3) include all tariffs, agreements, processes, proposed
cost recovery mechanisms and other components required for
approval by the commission in accordance with the
commission's order under this subsection.
(b) Records of recoverable costs.--An electric distribution
company or natural gas distribution company shall maintain a
record of recoverable costs as regulatory assets, which shall be
recovered in the immediately subsequent rate case and adjusted
in future base rate cases in accordance with section 1308
(relating to voluntary changes in rates) or through an
alternative rate mechanism under section 1330 (relating to
alternative ratemaking for utilities).
§ 22A06. Report.
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(a) Submission.--No later than 360 days after the
promulgation of final-form regulations implementing consumer
choice billing, the commission shall submit a report to the
chair and minority chair of the Consumer Protection and
Professional Licensure Committee of the Senate and the chair and
minority chair of the Consumer Protection, Technology and
Utilities Committee of the House of Representatives.
(b) Details.--The report under subsection (a) shall detail
the status of consumer choice billing, including all of the
following information about consumers who elected to participate
in consumer choice billing:
(1) Retail electric and natural gas shopping statistics.
(2) Consumer complaints.
(3) Billing disputes.
(4) Service terminations.
(5) Any other information to determine whether
modifications are necessary to consumer choice billing
qualifications and regulations for the purpose of enhancing
retail electric and natural gas service shopping.
§ 22A07. Penalties.
(a) Violations by suppliers.--For a violation of this
chapter, including a violation of the commission's orders or
regulations, by an electric generation supplier or natural gas
supplier, c onsistent with the requirements of due process, the
commission may impose any of the following:
(1) A suspension or revocation of the electric
generation supplier or natural gas supplier's participation
in consumer choice billing.
(2) A suspension or revocation of the license of an
electric generation supplier or natural gas supplier for a
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violation of this chapter.
(3) For a fraudulent, deceptive or other unlawful
marketing act, a fine on the electric generation supplier or
natural gas supplier.
(b) Violations by agents.--In accordance with 52 Pa. Code §
54.43(f) (relating to standards of conduct and disclosure for
licensees) for an electric generation supplier and 52 Pa. Code §
62.114(e) (relating to standards of conduct and disclosure for
licensees) for a natural gas supplier, an electric generation
supplier or natural gas supplier shall be responsible for
fraudulent, deceptive or other unlawful marketing act performed
by an agent of the electric generation supplier or natural gas
supplier . For a violation of this chapter, including a violation
of the commission's orders or regulations, by an agent of an
electric generation supplier or natural gas supplier, consistent
with due process, the commission may impose any of the
following:
(1) A suspension or revocation of the electric
generation supplier's or natural gas supplier's participation
in consumer choice billing.
(2) A suspension or revocation of the license of an
electric generation supplier or natural gas supplier for a
violation of this chapter.
(3) For a fraudulent, deceptive or other unlawful
marketing act, a fine on the electric generation supplier or
natural gas supplier.
Section 2. Repeals are as follows:
(1) The General Assembly declares that repeals under
paragraph (2) are necessary to effectuate the addition of 66
Pa.C.S. Ch. 22A.
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(2) The provisions of 66 Pa.C.S. §§ 2205(c) and 2807(c)
are repealed insofar as they are inconsistent with the
addition of 66 Pa.C.S. Ch. 22A.
Section 3. This act shall take effect in 120 days.
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