NOTICES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
Chapter 28 Electricity Generation Customer Choice and Competition Act Licensing Requirements for Electric Generation Suppliers; Doc. No. M-00960890 F. 0004 Commissioners Present: John M. Quain, Chairperson, Statement follows; Lisa Crutchfield, Vice Chairperson; John Hanger, Statement follows; David W. Rolka; Robert K. Bloom
[27 Pa.B. 1116] Public meeting held
February 13, 1997
Final Order By the Commission:
On January 16, 1996, the Commission issued a Tentative Order which proposed interim procedures for the licensing of electric generation suppliers. A draft application and a Code of Conduct for electric generation suppliers were attached to the order. The Tentative Order established a comment period ending January 31, 1997 during which public comment could be submitted. The order was served on well over 200 persons including the Office of Consumer Advocate, the Office of Small Business Advocate, Pennsylvania jurisdictional electric utilities and members of the Electric Stakeholders Group. The Commission order was also posted on the Commission's electronic bulletin board. Comments were received from numerous parties. A list of these commentators is following this order as Appendix A.
We have considered all of the comments which were submitted. We appreciate and thank all the commentators who provided worthwhile suggestions to improve the proposed interim procedures, the draft application and the proposed Code of Conduct. We have identified issues which were common to a majority of the comments, and will address them in this order. For the convenience/ease of use, we have Appendices B, C, and D following this order, respectively, the interim licensing procedures, the application, and the Code of Conduct revised in accordance with the discussion in the body of this order.
Licensing in General
Numerous commentators indicated confusion as to whether licenses were needed by certain entities, or for certain arrangements and/or transactions undertaken. Recognizing that we cannot possibly anticipate all the circumstances under which electric generation will be supplied or purchased for use by end use customers, we can provide only general guidance.
Section 2809 provides in pertinent part that:
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 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.66 Pa.C.S. § 2809.
An electric generation supplier is defined as:
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 or any other entities, that sells to end-use customers utilizing the jurisdictional transmission and distribution facilities of an electric distribution company, or that purchases, brokers, arranges or markets electricity or related services to end-use customers utilizing the jurisdictional transmission and distribution facilities of an electric distribution company.66 Pa.C.S. § 2803.
Examining the express language of the above-quoted sections, it seems clear that a self-generator who transports electric generation over transmission or distribution lines to serve itself or its subsidiaries would not need a license. A self-generator who plans to sell excess electric generation to the grid also probably does not need a license as it appears to be a wholesale sale. Other situations are not quite as clear. If a party is uncertain as to whether a license is required in his or her particular situation, a letter should be submitted to the Commission's Chief Counsel requesting a legal opinion.
We anticipate that a variety of forms of aggregation such as urban cooperatives, buyers clubs, community-based organizations and fraternal organizations may want to enter into agreements with licensed electric suppliers on behalf of, or to provide service to their members. Licenses for such arrangements may or may not be required and an opinion of counsel may be requested regarding such arrangements. In addition, bonding or financial security for such an aggregator can be adjusted commensurate with the service offered by the aggregator. See discussion on ''Security Bonding,'' infra.
Our reading of the law as it applies to existing electric public utilities is that a license is not required for it or its electric generation division to provide electric generation within its certified territory. However, as such service will be provided under the utility's certificate of public convenience, it must be provided at the tariffed rate. Any deviation from the tariffed rate must be approved by the Commission. A license is required for a utility or utility division that wishes to provide electric generation service outside its certified territory, and for an affiliated electric generation supplier. Note that an electric utility affiliate operating under a license is subject to the same requirements as other electric generation suppliers.
Commentators have suggested that interim licenses be grandfathered into permanent licenses under licensing regulations which will be promulgated. Although the suggestion may have merit, we believe that it is premature to consider such a proposition at this time and will defer the matter to a future rulemaking proceeding.
Section 2809(f), 66 Pa.C.S. § 2809(f), requires that prior to approving the licensure of any broker and marketer or aggregator, the Commission must set forth standards to ensure that all retail customer classes may choose to purchase electricity through a broker and marketer or aggregator. The standards and procedures adopted under this order are meant to reflect those section 2809(f) standards.
Applicability of Chapter 56
Commentators raised questions regarding the applicability of certain provisions of Chapter 561 to the operation of the electric generation suppliers, specifically in regard to termination of service. We agree that an electric generation supplier cannot physically disconnect a customer from the electricity grid, and that the service termination provisions are not applicable. In its comments, Office of Consumer Advocate (OCA) provided a reasonable protocol for allowing an electric generation supplier to cease its provision of service to a non-paying customer:
One way to address this issue would be to allow the generation supplier to seek to terminate its generation service through an appropriate written notice to the customer and the distribution company. The customer could then attempt to repair their relationship with the supplier, seek a new supplier, or default to utility service at capped rates in accordance with the utility's obligations under section 2807(e). 66 Pa.C.S. § 2807(e). The customer would only be disconnected from the electricity grid pursuant to Chapter 56 if the customer failed to meet their obligations to the utility or the provider of last resort.OCA, pp. 9-10.
We believe that the procedure proposed by OCA is acceptable as an interim solution and will adopt it as such.
Universal Service, Consumer Education, Energy
Conservation and Environmental ConcernsComments were raised regarding universal service, consumer education, energy conservation and environmental concerns. While the Commission recognizes that the commentators have concerns in these areas, we do not believe that it is necessary to discuss these issues in the context of licensing requirements. We will address these issues as they are appropriate in future Commission proceedings.
Market Power
With respect to market power issues, we would note that several commentators raised the issue of market power in the context of the licensing process. While section 2811 of the Public Utility Code, 66 Pa.C.S. § 2811, provides the Commission with the requisite authority to address this issue by its own motion or through a complaint procedure, we believe that it is important to state, at this time, that the granting of a license by the Commission should not be construed as an adjudication or resolution of current or future market power challenges or issues.
Voluntary Cessation of Operation
Comments were received questioning Commission authority to approve abandonment of an electric generation supplier's license. The Commission recognizes the dynamics of a competitive market and that players can quickly change in the marketplace. However, to ensure the reliability of the system and continuation of high quality electric service to the public, the Commission needs to know which electric generation suppliers are continuing to provide service. Moreover, the Commission has specific authority to approve transfers of licenses under section 2809(d), and it therefore follows that the Commission must be able to verify that a license was not improperly transferred rather than abandoned. Accordingly, the Commission will require that an electric supplier that intends to cease operations must notify the Commission, the electric distribution company, and its customers 30 days prior to their ceasing operations.
Compliance and Penalties, Including Revocation
Comments were received regarding the authority of the Commission to fine electric generation suppliers and ultimately to revoke their license. Section 2809(e) allows the Commission in regulating electric generation suppliers to impose requirements that are necessary to ensure that the present quality of service provided by electric utilities does not deteriorate and assuring that Chapter 56 standards and billing practices for residential service are maintained. To carry out these duties, the Commission must have the necessary authority to restrain violations of its regulations, rules, directions and orders. Accordingly, under section 3301, 66 Pa.C.S. § 3301, the Commission has the ability to fine those electric generation suppliers who violate the law, and increase the fine for continuing violations.
Notwithstanding the fact that the Commission has been given the authority to revoke electric generation supplier licenses under specific circumstances, for example, for the failure to pay the gross receipts tax, section 2809(c)(1)(iv), the Commission believes that it may revoke the license of any electric generation supplier that exhibits a continuing pattern of violation to the extent that continuation of its operation is found to be contrary to the public interest.
Newspaper Notice
Many comments were received urging that newspaper notice would be burdensome. In our proposed interim procedures, we specifically indicated that notice was to be published in newspapers of general circulation covering each county in which the licensee intends to provide service. If assistance is needed to identify newspapers that are circulated in the specific area in which service is proposed to be provided, the applicant is directed to contact the Commission's Press Secretary.
Service of Application
Penn Power comments that we should require that the application be served on the electric distribution utility in the territory that the licensee would like to serve. As notice of the filing of the license application will be posted on the Bulletin Board, and appear in newspapers, we find additional service requirements to be unnecessary.
Protest Period
Some commentators questioned the need for filing a protest or establishing a protest period. Some argue that allowing protests will slow the licensing process as many will be competitive protests.
Commission regulations at 52 Pa. Code §§ 5.51--5.54 specifically provide an opportunity for protests to be filed to an application. We see no reason to waive these regulations as to licensing applications, and see no benefit to eliminating an opportunity for this Commission to receive information which may impact on our decision on a particular license application. Recognizing that there are some that may protest competitors' applications solely for purposes of delay, we have limited the protests to verified protests directed to the applicant's technical and/or financial fitness. This limitation should eliminate unnecessary litigation over a license application.
Documentation of Technical and Financial Fitness
Commentators generally believed that the information requested in the proposed application to support an applicant's financial and technical fitness is burdensome. We have examined the information requested and have lessened this burden considerably.
In regard to financial fitness, we will require that Applicant provide self-documentation to establish its financial fitness commensurate with the anticipated scope of the business to be conducted within this Commonwealth. In the application, we have included a listing of documents and information which may be submitted as supporting evidence. We recognize that newly formed entities seeking to be licensed may not yet have established their credit-worthiness or financial strength. Therefore, we may accept evidence of the financial strength of the parent as proof of the financial fitness of the Applicant if it is clear that those resources will be made readily available to support the Applicant financially.
Similarly, in regard to technical fitness, we have left to the discretion of the Applicant the documentation which it believes will support the technical fitness requirement. Such documentation must show that the Applicant is technically fit to provide the service(s) for which the license is requested. We again have listed on the application certain types of information and documentation which may be submitted in support of the application.
Many commentators have expressed an unwillingness to provide information requested on the application or in support of the application because of its proprietary and confidential nature. The Commission recognizes that guarding certain information from those who would use it to their own advantage is important in a competitive market. However, the Commission has to fulfill its duty to license only those Applicants who can establish their technical and financial fitness to provide the service proposed to be provided in a safe and reliable manner. To balance these two competing needs, we have established a procedure whereby an Applicant may request that information provided to the Commission for licensing purposes be kept confidential.
If any of the answers on the application requires the disclosure of privileged or confidential information not otherwise available to the public, the Applicant should designate at each point in the application that such information is privileged and confidential. One copy of this confidential or privileged information conspicuously marked at the top as ''CONFIDENTIAL'' should then be submitted separately under seal to the Office of the Prothonotary with the application. Applicants must provide reasons for protecting this information. The request will be treated as a petition for a protective order and will be ruled upon by the Commission in conjunction with the license application. Pending disposition, the information will be used solely for the purpose of evaluating the license application, and the confidentiality of this information will be maintained consistent with the Commission's rules and regulations pertaining to confidentiality.
Affiliate Information
Comments were received that it would be burdensome to provide information requested in the applications regarding all affiliates and predecessors. Suggestions were made that such information be limited to those entities within Pennsylvania. We believe that this suggestion is reasonable and we have revised the application accordingly.
Assessments
In our tentative order, we indicated that a licensee will be required to pay assessments which will be used to defray regulatory costs, and that assessments will be based upon the costs incurred by the Commission related to generation suppliers. 66 Pa.C.S. § 510.
A number of commentators have disputed the authority of this Commission to assess electric generation suppliers. After review of the law, and the legal arguments presented in the comments, this Commission does not agree with the subject analysis; we have included language on the application form to reflect this. However, as no electric generation supplier has been assessed for regulatory costs, we believe that this matter is not yet ripe for disposition. We will defer discussion of this matter to a more appropriate time.
Quarterly Reports
Many commentators saw the frequency and the extent of information requested for inclusion in such reports to be onerous. In response, we have significantly reduced the amount of information which must be reported and eliminated quarterly reports, except for gross receipts tax information, in favor of an annual report. Accordingly at this time, we will require annual reports only for the percentage of total electricity supplied by each fuel source. We will require a licensee to meet periodic reporting requirements as may be issued by the Commission to fulfill the Commission's duty under Chapter 28 pertaining to the maintenance of system reliability, and to inform the Governor and Legislature of the progress of the transition to a fully competitive electric generation market.
Security Bonding
We received numerous comments regarding bonding. Commentators saw the bonding requirement, as proposed, to present a formidable barrier to market entry. Comments ranged from recommending a reduction in the initial level of bonding from $500,000, an increase in the level of bonding to $5 million to the elimination of the bonding requirement all together. Some commentators indicated that the expense of requesting such a modification of bonding level may be prohibitive for some small electric generation suppliers, such as aggregators, which also must be licensed under the law.
To meet these concerns, we have lowered the level of bonding for the first year to $250,000, and will allow modification of the initial amount based on the anticipated scope of the activities to be undertaken by the electric generation supplier in the Commonwealth. To reduce the expense of obtaining such a modification, the request with accompanying supporting documentation, may be made at the time that the license application is filed. After the first year that the license is in effect, the initial level of bonding will be adjusted semi-annually based on the gross receipts of the electric supplier. We reiterate that payments under the bonds do not limit exposure of a supplier's liability for any violation of law, including the Public Utility Code, and the Commission's regulations and orders.
Code of Conduct
In regard to the first standard in the Code, comments were filed that questioned the value of requiring that all licensees provide information to customers about resource mix and environmental characteristics of the electric generation that they are provided. We have rewritten the first standard as two in order to separate out the concepts presented. The new first standard reflects the duty of the electric generation supplier to provide accurate information about its service in a clear understandable manner, using plain language and common terms, and defining new terms where they are used. We have then inserted a new second standard directly thereafter which addresses the provision of environmental information. This standard requires that upon the request of a customer, the electric generation supplier must provide information regarding resource mix and environmental characteristics of their electricity purchases. We believe that this revision is responsive to all interests. Consumers who are interested in information regarding the ''greenness'' of an electric supplier's power may obtain such information upon request, and the electric supplier's obligation to provide such information will be limited to those customers who make such a request.
In response to comments received involving consumer protection, we have added to the standard which prohibits discrimination in service language to enumerate the classes which are to be protected under Federal law. We also added a new standard which requires licensees to inform consumers about the applicability of state consumer protection law related to cancellation or rescission of contracts to their electricity supply transactions.
Many commentators found the final proposed standard relating to ''equal and non-discriminatory access to necessary customer information'' to be confusing and redundant to the proposed standard on confidentiality of customer information. We agree and have eliminated this standard.
One specific comment should be addressed. PEA has specifically suggested that public utilities be able to charge for providing information regarding its customers. We remind our jurisdictional utilities that during this interim period they are required to follow a Code of Conduct, an example of which was provided in our final order on pilot program guidelines that was entered January 16, 1996 at Docket M-00960890F0002.2 Standard 2 of the model Code specifically requires the utility, as an electric distribution company, to supply all services and apply tariffs to non-affiliate electric generation suppliers in the same manner as it does so for itself or its affiliates. Therefore, if the utility intends to charge non-affiliates for such information, it must charge itself and its affiliates the same amount.
In order to provide notice of and establish a permanent record of these interim procedures, we have instructed that this order and Appendices B and D be published in the Pennsylvania Bulletin. Copies of the Application (Appendix C) may be obtained from the Commission's Office of the Prothonotary; therefore,
It Is Ordered That:
1. The interim licensing procedures and instructions, licensing application and the Code of Conduct for electric generation suppliers as set forth in Appendices B, C, and D of this order are adopted.
2. All electric generation suppliers or electricity suppliers as defined in 66 Pa.C.S. § 2803 wishing to supply, market or broker electric generation, or aggregate residential, commercial and/or industrial electric load in this Commonwealth shall first apply for a license from this Commission under the interim licensing instructions and procedures established herein.
3. A copy of this final order and Appendices B and D be submitted to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
4. A copy of this final order, any accompanying statements of the Commissioners and the appendices be served upon all jurisdictional electric companies, the Office of Consumer Advocate, the Office of Small Business Advocate, parties who filed comments at this docket, other parties who participated in the Commission's electric competition investigation at Docket No. I-00940032, and the Electric Competition Stakeholders.
JOHN G. ALFORD,
Secretary
Appendix B
Interim Licensing Instructions and Procedures Application Process
Under these interim procedures, an application for an interim license must be made on the form provided by the Commission. An application for an interim license must be accompanied by the $350 application fee as established in 52 Pa. Code § 1.43.
No electricity or generation supplier may sell electricity at retail in Pennsylvania until it is granted an interim license by the Commission. All electric supplier interim licensees may be required to reapply pursuant to the final licensing regulations. Note that interim licenses may not be transferred without prior Commission approval. 66 Pa.C.S. § 2809(d). Electric generation suppliers abandoning service granted pursuant to its license must notify the Commission, its customers and the affected distribution utility 30 days prior to cessation of its operation.
Application Verification
An application for an electric generation supplier license must be made in writing, and be verified by an oath or affirmation. 66 Pa.C.S. § 2809(b). See 52 Pa. Code § 1.36 (relating to verification). An original and eight copies of the completed application and supporting attachments must be filed. 52 Pa. Code § 1.37 (relating to number of copies).
Application Content
License applications must be made using the form provided. A copy of the application is attached. The application must be completed in its entirety. Uncompleted applications and those without supporting attachments, where requested, may be rejected without prejudice.
The application form solicits information which will be used in the evaluation of the financial fitness of the license applicant to render the proposed service. On the application, Applicants are directed, inter alia, to designate their business structure, identify Pennsylvania affiliates, and provide pertinent financial information regarding credit ratings and history, and insurance pertinent to the conduct of its business consistent with its obligations as a licensee.
Additionally, information is requested which will allow the Commission to determine the technical fitness of the Applicant to render and maintain the quality of service proposed to be provided. An applicant should generally identify the geographic area it proposes to serve, the type of service(s) it proposes to furnish, and the customers to which it proposes to provide such services. Applicants must also supply evidence of their knowledge, experience and expertise to provide the service as proposed. Membership in ECAR, MAAC or other regional reliability councils, if properly documented, will serve as evidence of technical fitness.
Service of License Applications and Publication of Notice of Filing
Copies of the completed application with supporting documentation must be served on the following offices: the Office of Consumer Advocate, the Office of Small Business Advocate, and the Office of the Attorney General.
Notice of filing of an application must be published in newspapers of general circulation covering each county in which the licensee intends to provide service. 52 Pa.C.S. § 5.14(a)(2). Applicants may contact the Commission's Press Secretary John M. Frazier at (717) 787-5722 to confirm the identity of the papers in which notice must be published.
The notice should be written in plain language and include the name, address and telephone number of the applicant, a description of the proposed service or services to be provided and the geographic area to be served.
The notice must reference the application's docket number and include the statement that protests directed to the technical or financial fitness of the applicant may be filed within 15 days of the publication date of the notice with the Office of the Prothonotary, Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265.
Proof of publication of the notice must be filed with the Commission. An application will not be considered to be complete for Commission review until the proof of publication is filed with the Commission's Office of Prothonotary. A diskette containing the notice in ASCII or Word Perfect 5.1 format must be submitted to the Office of the Prothonotary for posting on the Commission's electronic bulletin board.
Protests to Applications
Consistent with 52 Pa. Code § 5.14(b), a 15-day protest period will be established commencing on the date the application is filed and served. Any interested party may file a protest to an application. However, protests or interventions may only be filed if the protesting party is contesting the fitness of the applicant. Competitive protests or protests opposing other aspects of the applicant's provision of service may not be filed and, if submitted, will be rejected by the Commission. Protests shall fully comply with 52 Pa. Code § 5.52(a) and shall set out clearly and concisely the facts upon which the alleged challenge to the fitness of the applicant is based. An applicant may file an answer to the protest within 10 days of filing. Protests which do not fully comply with section 5.52(a) will be rejected without prejudice. The Commission may consider the imposition of sanctions for parties who are found to intentionally attempt to misuse the protest process.
Following the filing of a protest, the application shall be assigned to the appropriate bureau. Staff shall review the protest and determine if the protest raises legitimate concerns as to the fitness of the new entrant. If legitimate concerns as to the fitness are not present, the staff will prepare a recommendation for Commission consideration dismissing the protest and granting the application. If legitimate concerns are raised, the application shall be transferred to the Office of Administrative Law Judge for hearings or mediation as deemed appropriate.
Application Approval
A license will be issued, authorizing the whole or any part of service requested, if the Commission finds that:
1. the applicant is fit, willing and able to properly perform the service proposed in conformance with applicable provisions of the Public Utility Code and the lawful Commission orders and regulations, specifically including 52 Pa. Code Ch. 56 (relating to Standards and Billing Practices for Residential Utility Service); and
2. the proposed service to the extent authorized by the license, will be consistent with the public interest and the policy declared in the Electricity Generation Customer Choice and Competition Act.
66 Pa.C.S. § 2809(b).
Properly completed applications, if unprotested, will be processed within 45 days after acceptance by the Commission. If such an application is not processed within the time period, the application will be deemed approved. The review period on any application may be extended for a reasonable period of time by Commission order.
Assessments
The licensee will be required to pay assessments which will be used to defray regulatory costs. 66 Pa.C.S. § 510. Assessments will be based upon the costs incurred by the Commission related to generation suppliers. These costs include, but are not necessarily limited to: processing license applications pursuant to section 2809, maintaining records related to licensees, administering other provisions of the Public Utility Code related to licensee compliance with applicable requirements including maintenance of adequate reserve margin, compliance with residential billing and collections regulations, and fulfilling consumer information and education obligations.
As a condition of maintaining a license to supply electricity or electric generation, yearly assessments must be paid by the licensee within 30 days of receipt of notice of the amount lawfully charged against it. 66 Pa.C.S. § 510(c). Consistent with due process considerations, failure to pay the assessment may result in the revocation of the license.
Reporting Requirements
A licensee must report its level of gross receipts to the Commission on a quarterly basis. Gross receipt information must be filed with the Commission no later than 30 days following the end of the first full quarter, and of each subsequent quarter that the license is in effect.
Electricity suppliers must also provide annual reports which include information regarding the percentage of total electricity supplied by each fuel source.
An applicant will be required to meet periodic reporting requirements as may be issued by the Commission to fulfill the Commission's duty under Chapter 28 pertaining to reliability and to inform the Governor and Legislature of the progress of the transition to a fully competitive electric market.
All information requested above will be made available for public review upon request to the Commission subject to any rulings on confidentiality made by the Commission.
Security Bonds
Because the amount of the initial security bond that will be required from each applicant cannot be accurately estimated, the level of bonding required in the first year of the interim license will be identical for all applicants. This amount will be $250,000. Modifications of this amount commensurate with the amount of business anticipated to be conducted in this state will be granted where substantial evidence is submitted in support of the modification. A request for modification of this initial bonding amount may be made in conjunction with the filing of the application. The Commission will issue the interim license contingent on the submission of proof that the applicant has obtained a bond, or other approved security in the amount directed by the Commission.
To ensure continued financial responsibility of the licensed supplier, after the first year that the license is in effect, the security bonding level for each licensed electricity or electric generation supplier will be reviewed semi-annually and modified based on the supplier's reported quarterly gross receipts information. The level of bonding will be determined based on a percentage of the supplier's reported gross receipts, and will be in such amount to ensure the supply of electricity at retail. 66 Pa.C.S. § 2809(c)(1)(i). Maintenance of an electric supplier's license will be contingent on the supplier providing proof to the Commission that a bond or other approved security in the amount directed by the Commission has been obtained.
Payments under security bonds may result from the applicant's failure to pay the full amount of taxes or assessments due, or failure to supply electricity or other services in accordance with contracts, agreements, or arrangements.
Licensee liability for unreasonable service or for violations of the Public Utility Code and Commission orders and regulations is not limited in any way by the bonding requirement.
Prohibition Against Slamming
The unauthorized transfer by an electric distribution company, or its affiliate, of a customer's electric generation supplier without the consumer's express consent may result in the revocation of the license of that electric distribution company's affiliated electric generation supplier. 66 Pa.C.S. § 2807(d)(1). Concomitantly, the unauthorized transfer by an electric generation company, or its affiliate, of a customer's electric supplier without the consumer's express consent may result in the revocation of the license of that electric generation supplier.
Change in Applicants Status
Any significant change in the organizational structure or operation of a licensed electricity or electric generation supplier which would impact its operation in Pennsylvania must be reported to the Commission. Specifically, an electricity supplier must notify the Commission of any change in facilities ownership or affiliation upon which the Commission relied in approving the electricity supplier's license application, including but not limited to:
1) Change in ownership of generation or transmission facilities or other inputs to electric power production.
2) Change in affiliation with any entity which owns generation or transmission facilities or other inputs to electric power production.
3) Change in affiliation with any entity that has a franchised service area.
Additionally, if any other information provided in the application changes significantly during the pendency of the application or while applicant is operating within the Commonwealth of Pennsylvania, applicant is under a duty to inform the Commission of the specifics of the change. Applicant is also required to request authority from the Commission prior to transferring its license. 66 Pa.C.S. § 2809(d). Licensees must notify the Commission at least 30 days prior to ceasing business pursuant to its license.
Uniform Standards of Conduct and Disclosure
In order to foster a fully competitive retail electric market, it is essential to establish a Uniform Code of Conduct and Disclosure (Code of Conduct) applicable to all electricity suppliers and electric generation suppliers licensed to provide electric service in this Commonwealth. A copy of the Code of Conduct is attached.
Appendix D
Interim Uniform Standards of Conduct and Disclosure for Parties Licensed to Supply Electricity or Electric Generation Services to the Public * Licensees shall provide accurate information about their electric generation services using plain language and common terms. Where new terms are used, such terms must be defined again using plain language. Information should be provided in a format which will allow for comparison of the various electric generation services offered and the prices charged for each type of service.
* Licensees shall provide, upon the request of a customer, information regarding resource mix and environmental characteristics of their electric generation purchases.
* Licensees shall provide notification of change in conditions of service, intent to cease operation as an electric generation supplier, explanation of denial of service, proper handling of deposits and proper handling of complaints in accordance with Commission regulations.
* Licensees shall maintain the confidentiality of consumers' historic payment information and right of access to their own load and billing information.
* Licensees shall not discriminate in the provision of electricity as to availability and terms of service based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, and exercise of rights under the Consumer Credit Protection Act, 15 U.S.C. §§ 1691--1691f; Regulation B, 12 CFR 202--202.14.
* Licensees will be responsible for any fraudulent deceptive or other unlawful marketing or billing acts performed by their agents or representatives. Licensee shall inform consumers of state consumer protection laws that govern the cancellation or rescission of electric generation supply contracts. 73 P. S. § 201-7.
Statement of Chairperson John M. Quain
Today the Commission votes to establish interim procedures for licensing electric generation suppliers. Such procedures are critical to the overall success of a reasoned transition to electric competition.
Additionally, I would like to express my view of the spectrum of licensees which I anticipate will seek approval by this Commission to provide electric generation services to our citizens and businesses. I fully expect that among the potential providers will be urban cooperatives, governmental entities, neighborhood associations, and other innovative buyer groups. Thus, it is important to state at the outset that these filing requirements should not be viewed as a barrier for participation by such groups. Indeed, the guidelines are designed to be flexible in order to maximize the number of qualified participants in the provision of electric generation service.
Therefore, as the market emerges, innovative buyer groups, such as those discussed above, are encouraged to seek guidance from this Commission regarding the need and applicability of the provisions approved today. This Commission stands ready to assist such applicants in reviewing not only the scope of application requirements, but interpretation of the licensing procedures. In short, while we will not compromise the current high level of reliability of electric service which exists in this Commonwealth, we do stand ready to assist new entrants wishing to conduct business in Pennsylvania.
Lastly, inasmuch as the procedures we have approved today are interim in nature, I trust that the Commission will gain valuable experience which will guide our preparation of permanent regulations to be utilized in a fully competitive environment.
Statement of Commissioner John Hanger
These Interim Licensing Requirements will be in effect during the commencement of retail electric competition in Pennsylvania. For this reason, they are exceedingly important. It is important to note, however, that they will be replaced by permanent licensing procedures and rules pursuant to a more time-consuming process than can be concluded in time to comply with the schedule established under Chapter 28.
Every attempt has been made to consider all of the excellent comments which have been submitted to the Commission. Many comments that are not reflected in these Interim Licensing Requirements nevertheless have substantial merit and will be included in other orders, rules or regulations adopted by the Commission.
As the Commission considered these Interim Licensing Requirements, the goal has been to strike the correct balance between obtaining the information necessary for the Commission to assess the technical and financial fitness of the Applicant and to administer Chapter 28 without creating barriers to market entry. For example, upon consideration of the diversity of potential applicants, the Commission will provide substantial flexibility in the manner in which Applicants may demonstrate technical and financial fitness. However, Applicants must still provide sufficient support, commensurate with the scope of the license sought, that they are technically and financially able to meet their commitments.
I seek a robust competitive market with many players offering a variety of products and services. However, I will not grant licenses that are not adequately supported and the Commission will not tolerate non-performance. I intend sternly to enforce compliance with all applicable requirements and to consider license revocation as necessary.
[Pa.B. Doc. No. 97-332. Filed for public inspection February 28, 1997, 9:00 a.m.] _______
1 As further guidance to electric generation providers we note that Chapter 56 is applicable only to residential accounts.
2 It is noted that an enduring Code of Conduct for Electric Generation Suppliers and a Code of Conduct for Electric Distribution Utilities will be established in rulemakings which will be initiated in the near future.
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