RULES AND REGULATIONS
Title 52--PUBLIC UTILITIES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA. CODE CHS. 3 AND 54]
[28 Pa.B. 3760] [L-970129]
Licensing Requirements for Electric Generation Suppliers The Pennsylvania Public Utility Commission (Commission) on April 23, 1998, adopted a final rulemaking to implement and codify provisions of the Electricity Generation Customer Choice and Competition Act regarding the licensing of entities defined as electric generation suppliers. The contact persons are Patricia Krise Burket, Law Bureau, (717) 787-3464 and Robert Bennett, Bureau of Fixed Utilities Services, (717) 787-5553.
Executive Summary
Sections 2806(g)(3) and 2809 of 66 Pa.C.S. (relating to implementation, pilot program and performance-based rates; and requirements for electric generation suppliers) require the licensing of electric generation suppliers including brokers, aggregators and marketers. On November 24, 1997, the Commission adopted a proposed regulation for licensing of electric generation suppliers. The proposed regulations were published in the Pennsylvania Bulletin on January 31, 1998 at 28 Pa.B. 508 for a 30-day comment period. The Commission adopted final regulations on April 23, 1998.
The purpose of these regulations is to institute a process for licensing electric generation suppliers, and to establish reporting and bonding requirements for the maintenance of a license.
Regulatory Review
Under section 3(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Commission submitted a copy of the final rulemaking, which was published as proposed at 28 Pa.B. 508, and served on January 16, 1998, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure for review and comment. In compliance with section 5(b.1) of the Regulatory Review Act, the Commission also provided IRRC and the Committees with copies of all comments received, as well as other documentation.
In preparing this final-form regulation, the Commission has considered all comments received from IRRC, the Committees and the public.
This final-form regulation was deemed approved by the House Committee on Consumer Affairs on June 8, 1998, approved by the Senate Committee on Consumer Protection and Professional Licensure, June 8, 1998, and was approved by IRRC on June 18, 1998, in accordance with section 5(c) of the Regulatory Review Act.
Public Meeting held
April 23, 1998Commissioners Present: John M. Quain, Chairperson; Robert K. Bloom, Vice Chairperson, Concurring and Dissenting in part--Statement follows; John Hanger; David W. Rolka; Nora Mead Brownell, Statement follows
Final Rulemaking Order One of the first steps taken by the Commission pursuant to the Electric Generation Customer Choice and Competition Act, 66 Pa.C.S. §§ 101, et seq. (act), was implementation of retail access pilot programs for the six major electric utilities--PECO Energy Company (PECO), Pennsylvania Power & Light Company (PP&L), Pennsylvania Electric Company (Penelec), Metropolitan Edison Company (Met Ed), Duquesne Light Company (Duquesne), Allegheny Power Systems d/b/a West Penn Power Company (West Penn), UGI Utilities, Inc.--Electric Division (UGI) and Pennsylvania Power Company (Penn Power).1 The pilot programs permitted customers representing 5% of each utility's peak load for each customer class to choose their own electric generation supplier. Section 2806(g)(3) limited pilot participation of electric generation suppliers to those who were licensed or certified by the Commission.
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 electricity or related ser-vices utilizing the jurisdictional transmission and 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.66 Pa.C.S. § 2803.
Moreover, an ''aggregator'' or ''market aggregator'' is defined as ''[a]n entity, licensed by the commission, that purchases electric energy and takes title to electric energy as an intermediary for sale to retail customers.'' 66 Pa.C.S. § 2803. A ''broker'' or ''marketer'' is defined as ''[a]n 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.'' 66 Pa.C.S. § 2803.
On January 16, 1997, the Commission issued a Tentative Order and draft licensing application for interim licensing of electric generation suppliers pending the promulgation of regulations. Licensing Requirements for Electricity Generation Suppliers, Docket No. M-00960890 F0004. The Tentative Order established a comment period ending January 31, 1997, and 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. On February 13, 1997, the Commission issued a Final Order which adopted interim licensing procedures and a license application. Over 60 electric generation suppliers presently hold interim licenses that were issued pursuant to these interim licensing guidelines.
In its February 13, 1997 Order, the Commission recognized that the interim licensing guidelines were to be temporary in nature, and that they would be replaced by regulations. As the first step in promulgating these regulations, the Commission revised its interim licensing procedures and redrafted them as proposed regulations. On November 24, 1997, the Commission adopted a Proposed Rulemaking Order that set forth the proposed regulations for comment. The proposed regulations were published in the Pennsylvania Bulletin at 28 Pa.B. 508 on January 31, 1998. A 30-day comment period was established from the date of Pennsylvania Bulletin publication.
Comments were filed by the Pennsylvania Electric Association (PEA) on behalf of its members, PECO, UGI, PP&L, West Penn, Mid-Atlantic Power Supply Association (MAPSA), Green Mountain Energy Resources, LLC (GMER), Office of Consumer Advocate (OCA), NORAM Energy Management and Electric Clearinghouse (Indicated Parties), Environmentalists, Environmental Defense Fund (EDF) and Lawrence G. Spielvogel. Comments were also submitted by IRRC, and Representative Frank Tulli, Senator Alan Kukovich and Representative William Lloyd.
We thank the commentators for their input and will address the comments in relation to the applicable regulation.
§ 54.31. Definitions.
Section 54.31 defines terms that are used in the licensing regulations.
The commentators in this section recommended additional terms that needed to be defined in the regulation. The OCA recommended that the statutory definition of ''electric generation supplier'' be repeated in the regulations and the addition of the statutory definitions for the terms ''aggregator'' and ''broker or marketer.'' 66 Pa.C.S. § 2803.
OCA criticizes the definition of ''marketing'' as being too broad and would cover any communication about a supplier's serviced whether or not there was an intent to provide service on behalf of a supplier. OCA recommends that the definition be narrowed by including the restriction that marketing must include ''an offer to provide electric generation service.'' OCA states that this will exclude image or name brand marketing. IRRC recommends that the final-form regulation contain the statutory definitions of ''aggregator,'' ''broker,'' ''electric generation supplier'' and ''marketer.''
The Commission agrees to incorporate the statutory definitions of ''electric generation supplier,'' ''broker'' or ''marketer'' and ''aggregator'' at 66 Pa.C.S. § 2803 into the regulation, but notes that the only place in the licensing regulations where the terms ''marketer,'' ''broker,'' ''market aggregator'' or ''aggregator'' are used is in the definition of statutory definition of ''electric generation supplier,'' that is also to be added. The Commission is skeptical as to the need for repeating statutory definitions in a regulation, but as their inclusion will make the regulation complete and more user friendly, we will incorporate these terms as suggested.
As to the OCA's comment to include language that limits the term ''marketing'' to situations involving an offer to provide service to customers, we find that this restriction narrows the definition too much. Image or name brand advertising is used for one thing--to develop a market niche for a product or service before such offers are extended to individual customers. Webster's Ninth New Collegiate Dictionary, (1984), p. 728, defines the verb ''market'' as ''to expose for sale in a market,'' and marketing as ''the act or process of selling or purchasing in a market.'' ''Advertise'' has a similar definition: ''to call public attention to esp. by emphasizing desirable qualities so as to arouse a desire to buy or patronize'' Webster's Ninth New Collegiate Dictionary, (1984), p. 59. As it is clear that this type of marketing is designed to positively impact the supplier's market share, there is no reason to allow a supplier to engage in this activity before it is licensed.
Under section 2811, it is the Commission's duty to monitor the competitive market. To be effective in carrying out this duty, the Commission must be aware of all of the players in the market. Accordingly, we decline to incorporate OCA's suggested language into this definition.
Both OCA and MAPSA state that the term ''default supplier'' does not appear in the statute and recommend that this term should be changed to ''provider of last resort.'' The Commission agrees to this change and has incorporated this change throughout the regulations. The OCA also avers that the ''default supplier'' definition is too narrow and that the Commission should list the circumstances under which a customer would have need of a default supplier. We will adopt this suggestion and have incorporated into definition of provider of last resort.
PEA states that the definition of ''interim license'' should reference the Commission February 13, 1997Order on Final Order on Licensing Requirements for Electricity Generation Suppliers, Docket No. M-00960890 F0004. IRRC supports PEA's recommendation. We agree that this addition will further clarify this definition and have incorporated it into the regulations.
§ 54.32. Application Process.
Section 54.32 sets out the process for applying for an electric generation supplier's license.
IRRC and PEA recommend that the Commission should require service of the license applications on the electric distribution companies in whose service territory the applicant proposes to provide services. The PEA states that this may improve the administrative efficiency between the EDCs and EGSs. IRRC notes that the EDCs must coordinate customer service with the EGSs. We believe that adoption of this proposal could result in a quicker start-up for the EGS, as PEA noted the parties could begin discussions on such matters as energy supply scheduling and billing procedures. We will adopt the PEA recommendation.
Senator Kukovich and the Environmentalists propose that the Commission should determine if an application is complete and acknowledge within 10 days the receipt of the application. The Commission has endeavored to eliminate paper flow bottle necks and will continue to expedite the processing and the review of license applications. However, some applications may not be processed quickly for several reasons. Additionally, the proposed 120 day filing period for the holders of interim licenses could make the adoption of a 10-day standard very difficult to maintain.
GMER and MAPSA express concern about the confidentiality protections offered by the proposed regulations. GMER requested that the Commission reiterate its statement on the protective procedures as was contained on page 11 of the Commission's February 13, 1997 Order at Docket No. M-00960890 F0004 regarding licensing. GMER also notes that an applicant should be permitted to withdraw its proprietary information in the event that its protection is denied.
During the development of our interim licensing requirements, many parties expressed concerns that their responses on the license application may require them to divulge privileged or confidential information. We continue to believe that many of these concerns may be valid and therefore we will adopt the GMER and MAPSA recommendation.
IRRC, OCA and UGI believe that the Commission should clarify whether all interim licenses must reapply or not. OCA and UGI recommend that to prevent confusion, all interim licensees be required to reapply within the proposed 120-day period.
MAPSA states that companies which have already been granted interim licenses should not be required to reapply for a permanent license. MAPSA believes that these interim license holders should be grandfathered or be allowed to update their interim licenses to comply with any new requirements. MAPSA and PP&L state that, if the Commission requires re-licensing, the existing interim license holders may continue to operate until the Commission issues a permanent license. PP&L further recommends that the Commission not require the publication of the notice of an amended application.
From the outset of the establishment of these licensing regulations, we have attempted to diminish the administrative burdens placed on the applicants while requiring the provision of information necessary to demonstrate the financial and technical fitness of the applicant. While we can appreciate the basis for the OCA's recommendation to require all interim licensees to reapply, this may result in unnecessary duplication of efforts for many parties. We agree with MAPSA that interim licenses should be updated to comply with new requirements concerning the licensee's financial and technical fitness. Any valid interim license shall remain in effect during the pendancy of the Commission's review of an updated application. We agree with UGI that any updated applications filed by an interim licensee will be subject to sections 54.33--54.36 which address application form, changes in organizational structure or operational status, publication of notice of filing and protests to the application. In addition, the updated application will also be subject to section 54.32 Application Process.
PEA and IRRC assert that EDCs designated as default suppliers should not be required to obtain an EGS license. As the PEA noted, in our February 13, 1997 Order at Docket No. M-00960890 F0004, we stated, ''. . . a license is not required. . .'' for an existing public utility or its generating division to provide electric generation within its certified territory. We agree with the PEA and IRRC and we will adopt the PEA's proposed new subsection to be added to section 54.32.
§ 54.33. Application Form.
Section 54.33 lists the information that is requested on the application form, and the types of documentation that may be submitted to the Commission to support the applicant's technical and financial fitness for licensing.
MAPSA claims that section 54.33(a)(2), that requests that an applicant identify the type of service that the supplier proposes to furnish, such as aggregator, marketer, broker, has proven to be particularly useless in the interim licensing requirements and requests that it be eliminated. The Commission disagrees. While section 54.33(a)(2) may have served a marginal purpose in the interim licensing requirements, it is undeniably necessary for the Commission to know the type of service that is being offered to customers so that it not only can monitor the developing market but also can provide pertinent information and education service to consumers about the choices that are available to them.
PEA states that with respect to Rule 54.33(g), the proposed 120-day grace period for an interim license holder to apply for a license is excessive. A 30-day grace period should be adopted.
The Commission believes that the 120-day grace period is reasonable from an administrative perspective. The Commission may process over 60 applications from interim license holders. Shortening the grace period to 30 days will insure that the Commission is inundated by applications in this short period of time, that will make paper management unnecessarily difficult. Accordingly, the Commission will not make this revision.
PEA states that license applicants should be required to provide evidence of membership in (National American Electric Reliability Council) NERC. GMER opines that rather than actual membership in a regional reliability council, it should be sufficient that a supplier have a relationship with a wholesale supplier which is a member and which will act as the supplier's scheduling agent. The Indicated Parties propose that section 54.33(a)(7) be amended to allow the supplier or the supplier's identified agent to be a member of regional reliability councils, and argued that if the supplier's agent is a member of the applicable councils, then the Commission's objective is met.
The Commission believes that some clarification as the application form and the information requested thereon is necessary. The licensing application is generic and is to be used by all license applicants. The application solicits specific information such as names of officers and affiliates, but it also requests non-specific information intended to demonstrate an applicant's technical and financial fitness to be licensed. This non-specific information to be submitted is of the applicant's choosing and its content depends on the type of service that the applicant requests to be licensed to provide.
While the Commission would expect that suppliers who generate the power that they sell to the end-user will be members of NERC regional councils, it does not expect that aggregators of customer load would need to be members to demonstrate fitness to competently accomplish aggregation. Thus, membership in a NERC regional counsel is not a licensing requirement for all suppliers. However, membership in a NERC regional council does demonstrate technical fitness for a supplier who will be scheduling the transmission of power over the transmission system in coordination with the system owners. We have revised this subsection to indicate that the provision of evidence of NERC membership is required only if it is applicable to the nature and scope of the applicant's proposed services.
MAPSA also states that section 54.33(a)(8) should include the term ''applicable rules,'' as the Commission has already determined that some of the Chapter 56 rules, for example on termination of service, are inapplicable. We agree and have added this word to the regulations.
The Indicated Parties object to section 54.33(a)(4) because it seeks information which is not relevant to a supplier's license request. At most, it is argued that applicants should only be required to identify Pennsylvania utility affiliates. The Commission disagrees. The majority of the suppliers to which we have granted interim licenses are affiliates of out of state public utilities. The energy market that will be developed will not end at the borders of the state; it will be a regional market making it necessary for the Commission to understand such relationships so that it can better carry out its statutory duty to monitor the market for anti-competitive and discriminatory conduct. We will not revise this section.
PP&L, PEA and MAPSA express concern about the Commission's protection of the Social Security Numbers (SSNs) of owners, general partners or corporate officers which are requested on the Commission's application form. PP&L comments that EGSs need to know that the information will not be generally circulated to the public or available to staff persons within the Commission. The Department of Revenue routinely requires that information and has in place a number of controls to keep such SSN information confidential. For this reason, the PUC should modify this requirement to either require only a certification that such SSN information has been filed with the Department of Revenue (and not actually filed with the Commission) or provide a process to keep such information confidential if filed with the Commission.
IRRC also recommends that the Commission delete the requirement for SSNs in section 54.33(b)(4). IRRC states that:
The federal Privacy Act of 1974 (Privacy Act) is designed to safeguard the right of personal privacy against invasion by agencies which collect and use personal data. Section 7 of the Privacy Act establishes that it is unlawful for any federal, state, or local government agency to deny any individual any right, benefit or privilege provided by law because the individual refuses to disclose his SSN. Any federal, state, or local government agency that requests any individual to disclose his SSN shall inform the individual whether the disclosure is mandatory or voluntary, by what statutory authority or other authority such number is solicited, and what uses will be made of the SSN. Clearly, Congress enacted the Privacy Act with the intent to limit the availability of SSNs. Tribune-Review v. Allegheny Cty. Housing, 662 A. 2d 677 (Pa. Cmwlth. 1995).We question the PUC's authority to require applicants to divulge the SSNs of their owners, general partners, or corporate officers. The Act simply requires suppliers to certify to the PUC that they will pay, and have paid in prior years, the full amount of taxes imposed by the Tax Reform Code of 1971 and by Chapter 28 of the Act. We also question why the PUC needs SSNs to process applications. We recommend that the PUC delete the requirement for SSNs in Section 54.33(b)(4).IRRC, p. 3.
The Commission agrees that it will not require that SSNs be supplied on the application form. We will delete this requirement.
IRRC states that the Commission should clarify what type of evidence is required by sections 54.33(a)(7) and 54.33(a)(8). We accept this comment. In subsection (a)(7), we have indicated that an applicant shall submit information to demonstrate technical fitness applicable to the type and nature of service that the applicant proposes to provide. The information may include descriptions of the applicant's prior experience, proposed staffing and employe training commitments, business plans, and agreements, arrangements and contracts for generation, transmission and related services. In subsection (a)(8), we have indicated that an applicant shall submit information to demonstrate current and potential ability to comply with Commission's applicable requirements concerning customer billing, customer education, billing and terms of service, and customer information. The information may include prior regulatory experience, prior business experience in energy or other service-oriented industries, staffing and staff training commitments, agreements, arrangements and contracts for customer education and information services, customer satisfaction survey results, government agency reports and complaint statistics compiled by Better Business Bureau or similar business organizations.
In its comments, IRRC also recommends that we move section 54.35(c) that specifies that an application will not be complete for purposes of processing until after proof of newspaper publication of the notice of filing has been received by the Commission to section 54.33 (Application Form). This provision has now been incorporated into section 54.33(a).
§ 54.34. Change in Organizational Structure or Operational Status.
Section 54.34 addresses the circumstances under which the Commission must be notified as to a change in the supplier's organizational structure or operational status.
MAPSA, GMER, and the Indicated Parties propose that the Commission limit the reporting requirements in this section to ''material'' changes. IRRC expresses agreement with this proposal and notes that it may not be necessary for the Commission to be notified of every organizational or operational change.
The Indicated Parties also suggest that the EGSs be allowed 60 days in which to notify the Commission, in lieu of the proposed 30 days.
We will adopt these commentators' suggestion to modify section 54.34(a) and (b) to reflect the requirement to provide the Commission information concerning material changes. We will not adopt the proposal to extend the required reporting period from 30 days to 60 days because only material changes in information will be required. The Commission should be made aware of such changes as soon as possible. Furthermore, we will continue to require the EGSs to provide the Commission information concerning the ownership of generation or transmission facilities and affiliations as proposed in section 54.34(b)(1), (2), and (3).
PP&L has proposed that the Commission should clarify this requirement by amending the regulation to note that upon the notification of such a change, unless the Commission directs otherwise, the EGS does not need to file an amended application. IRRC believes that this would add clarity to the proposed regulation. We will adopt this suggestion. Our intention was to obtain this information to evaluate the fitness of the applicants and to monitor the competitive conditions in the marketplace. An amended application may not be necessary.
§ 54.35. Publication of Notice of Filing.
Section 54.35 requires newspaper publication of a notice of an application's filing and sets out requirements for the content of the notice.
Senator Kukovich, IRRC, PP&L, the Environmentalists and West Penn support the use of newspaper notices. Senator Kukovich points out that not everyone has access to the Commission's web site. IRRC and the Environmentalists believe that newspapers provide an effective means of informing the public. West Penn expresses concern that it may not be possible to provide newspaper notice in each county because some counties do not have newspapers of general circulation. West Penn recommends that the Commission's press liaison designate several newspapers that should be used for all notices.
The OCA, Horizon, GMER and Lawrence Spielvogel recommend that the Commission should require notices of the applications be published in the Pennsylvania Bulletin. Horizon suggests that this notice would be the most cost effective.
The OCA, PEA, UGI and IRRC recommend that the applications be listed on the Commission's web site.
The Indicated Parties propose that the Commission eliminate this requirement and require the applicant to serve a copy of the application and supporting data on the OSA, the Small Business Advocate and the Pennsylvania Attorney General. The applicant would also serve notice to the parties on the various electric restructuring proceedings service lists and also include a copy of the application on disk for the Commission's web site.
West Penn and MAPSA state that all current license holders should not be required to provide a new round of newspaper notification.
We agree with IRRC, Senator Kukovich, PP&L and the Environmentalists that newspaper notification should continue to be employed. From our experience in reviewing interim license applications, the greatest source of delay in processing applications involves the submission of a proof of publication from each newspaper which carried the notice. To expedite the review process we will permit applicants to certify that they have provided newspaper notification in accordance with section 54.35.
We will not require the applicants to provide notice through the Pennsylvania Bulletin. The notice may add additional costs and delays to the application process without greatly increasing the level of notice provided over our proposed requirements. There is a distinction between the notice requirement for a certificate of public convenience and EGS license.
We will adopt the suggestions of IRRC, OCA, PEA and UGI to post the notice of the application on the Commission's web site as opposed to the electronic bulletin board. We had initially posted information on all the license applicants on our Internet web site but this led to considerable levels of customer confusion about the status of the applicant. We will clearly note that the applicants have not yet received a license, and we will direct the consumer to the list of licensed EGSs.
We will not adopt the recommendation of the Indicated Parties. While we will direct the applicant to serve copies of the application and supporting information to certain parties, it would be unreasonable to require service to the hundreds of parties engaged in the various electric restructuring proceedings.
As noted earlier in our comments on section 54.32, we will require interim license holders who may be required to update their prior applications and supporting information to provide new newspaper notice. We believe that re-notification should be required in these instances because material issues of financial and technical fitness may be involved in the updated applications.
Finally, IRRC states that section 54.35(c) pertaining to the proofs of publication may be more appropriately placed in section 54.33(a) which lists the information required with the submission of an application.
We will adopt IRRC's recommendation to relocate this regulation.
§ 54.36. Protests to Applications.
Section 54.36 addresses Commission procedures related to protests filed to an application.
The rule proposes that when a protest is filed with the Commission that the Commission staff will determine if the protest complies with applicable rules and whether it is sufficiently documented.
MAPSA comments that the regulation should be amended to allow the applicant to file a motion to dismiss the protest filing of a motion to dismiss. MAPSA also states that if the protest is transferred to an administrative law judge (ALJ), the ALJ should have the ability to dispense with the protest on the basis of a motion for judgment on the pleadings, summary judgment or the like and not be required to ''have hearings.''
Section 54.36(a) permits an applicant to file an answer within 10 days of the protest's filing date. The applicant is free to request that the protest be dismissed in that pleading. As to including specific language which permits the ALJ to dispense with the pleadings, it is unnecessary to burden the regulation with ''process and procedure'' which is already available to the applicant in the Commission rules of practice and procedures at 52 Pa. Code Ch. 1, 3, and 5. Therefore, we believe it is unnecessary to change the regulation.
GMER states that the 15-day protest period is a hindrance to competitive efforts by suppliers, and that the period should be shortened to require the filing of protests on or before the Friday following publication in the Pennsylvania Bulletin.
Due process requires that reasonable notice and opportunity to be heard be given. We believe that a 15-day notice period is reasonable and will reject GMER suggested revision.
Section 54.36(b) addresses the filing of competitive protests and sanctions for misuse of the protest process. In its comments, IRRC states that the second sentence of the section is duplicative of the first and should be deleted. IRRC also states that the third sentence of section 54.36(b) makes a vague threat of sanctions in the event of misuse of the process, and recommends that the sentence be deleted unless the Commission can specify what constitutes misuse of the process and the types of sanctions will be imposed.
The Commission believes that misuse of the protest process is the repeated filing of baseless protests for no other purpose except to slow the approval process for the applications of potential competitors. The protests would fail to substantiate any infirmity regarding the applicant's technical or financial fitness.
Sanctions that may be imposed against a supplier who is involved in misuse of the protest process include directing that the supplier not sign up any new customers for a specific period of time, or if the misuse has been particularly egregious the suspension of the supplier's license. The sanctions would be imposed only after affording a supplier its due process rights.
Misuse of the protest process by incumbent suppliers constitutes a barrier to entry of new suppliers. As the goal of electric restructuring is the creation of a robust electric generation market, the Commission believes that it is essential to remove this barrier to new applicants and curb anti-competitive activity at its inception. Accordingly, we have revised the subsection related to sanctions for misuse of protest process consistent with this discussion.
§ 54.37. Approval.
Section 54.37 sets out the circumstances under which a license application will be granted.
MAPSA contends that the requirement that the licensing of the supplier should be consistent with the public interest should be deleted because it is vague and unnecessary. MAPSA contends that the Commission should determine whether the applicant meets the requirements of a supplier under the Commission's rule.
We will not adopt this suggested revision. This section reiterates the Commission's duties and puts the applicants on notice that simply completing an application does not automatically result in the issuance of a license.
MAPSA and UGI do not support the ''deemed approved'' language proposed by the Commission. UGI notes that the Commission should conduct a thorough review of each licensee application. MAPSA requests that only the holders of interim licenses should be ''deemed approved.''
Senator Kukovich, IRRC and Horizon support the 45-day limit for consideration of an application. IRRC believes the 45-day time limit is reasonable and note that the review period may be extended if necessary. Horizon states that all license applications should be evaluated on the same time table to prevent unnecessary discrimination and competitive disadvantage between EGSs.
PP&L supports the ''deemed approved'' language but expressed concerns that the Commission will insist on its licensing regulations being followed.
We will retain the 45-day time limit which may be extended by Secretarial Letter and the ''deemed approved'' provisions of the proposed regulations. The Commission has endeavored to issue licenses as soon as possible, especially prior to the initiation of the Pilot Programs. It has proven to be difficult to process each application in the same time frame because frequently the applicants are required to supply additional information to complete the review process. The Commission will continue to review the applications expeditiously.
§ 54.38. Regulatory Assessments.
Section 54.38 relates to the assessments that licensees will need to pay to the Commission to defray administrative costs incurred by the Commission related to the regulation of electric generation suppliers.
In its comments MAPSA seeks clarification of the nature of the expected assessed costs. MAPSA states that the ''generation supplier costs'' assessed to licensed generation suppliers should be attributable exclusively to Commission activities related to Electric Generation Supplier regulation, and that the costs assessed to licensed generation suppliers should be incremental to those Commission costs which are recoverable in general assessments upon electric distribution companies.
The Commission does not believe that this suggested clarification is necessary in the regulations. Moreover, the Commission cannot speculate as to the amount that suppliers will be assessed in comparison to the amount that the EDCs will be assessed, but can state that the assessments will be made in accordance with the procedures set out at 66 Pa.C.S. § 510(b).
MAPSA also proposes that the Commission order the ''unbundling'' of its cost assessments to the extent that an EDC may seek to recover assessed ''generation supplier costs'' from its ratepayers. These costs MAPSA insists should only be recoverable by EDCs by means of the generation component of their rates and not through its transmission and distribution components. MAPSA insists that this unbundling of assessed costs will better ensure a level playing field for all generation suppliers required to pay the assessments.
The Commission finds this proposal not only to be premature, and but also not appropriate to this rulemaking. Whether an EDC is seeking to pass along costs that are rightfully assessed against its generation component to its transmission and distribution customers is an issue that should be raised, addressed and resolved in a distribution and transmission rate case. Moreover, many utilities formed and licensed their own supplier affiliates or divisions who will be assessed as part of the supplier group. Accordingly, there is no reason to revise the regulation to recognize this MAPSA comment.
MAPSA also comments that the costs will be assessed to all licensed generation suppliers, including ''non-traditional marketers.'' As we have not addressed non-traditional marketers in this rulemaking, see Discussion, infra., at p. 38-39, we will not address this issue at this time.
§ 54.39. Reporting Requirements.
Section 54.39 sets out reporting requirements with which suppliers must comply for maintenance of their licenses.
West Penn and GMER contend that several of the proposed regulations should be deleted because they require the release of confidential material. West Penn states that the requirement of public reporting of confidential, business sensitive matters for generation suppliers is contrary to the act.
We believe that we have adequately responded to the concerns expressed by several commentators on the need to provide for the confidentiality of certain information required to be supplied to the Commission. We would note that under proposed section 54.39(d), we have put the licensees on notice that they may seek a ruling on confidentiality. Further, we have noted in the proposed regulations the need for the licensees to provide the information under the act. See 66 Pa.C.S. § 2810(c)(6).
EDF states that the proposed regulations should be expanded to include reporting of atmospheric emissions and other significant environmental impacts of the supplier's energy sources mix as well as any relevant actions a supplier has undertaken to mitigate these environmental impacts.
Senator Kukovich states that the applicants must be required to disclose the fuel mix and the emissions from the plant that generate their electricity. Representative Tulli notes that if EGSs claim that they are selling ''green'' electricity, the consumers need a way to verify that the electricity is cleaner than that provided by other EGSs. MAPSA, the Indicated Parties, and UGI contend that the provision of the energy source information required is unduly burdensome and may be impracticable because the suppliers may not know the sources of their energy. MAPSA states that these reporting requirements should only apply to licensees offering to sell environmentally-friendly power.
IRRC agrees with parties who questioned the need for this information and cites the difficulty to determine the generation sources. IRRC suggests that the Commission delete this requirement or explain the compelling public interest which justifies retaining this reporting requirement.
While we recognize that there will be difficulties for some EGSs to provide complete data, we will expect they will extend their best efforts to obtain the data or representative data to meet this requirement. There are several reasons why we believe this information should be required. We agree with Representative Tulli that consumers should have some information about their energy choices. We believe that the Commission needs this information to monitor the development of a competitive energy marketplace. This information will assist in our commitments to maintain the existing level of reliability. We will be in a better position to make decisions and offer comment on public policy issues which affect generation. We will have information which will be necessary to assess the impacts of possible national or state legislation and regulations on the Commonwealth's economy. The provision of this information will act as a check on the marketing activities of EGSs who may claim all or a portion of their energy supplies have certain characteristics. The requirement of this information may provide EGSs incentives to maintain and improve the impacts of their generation resources. Therefore, we will not adopt the suggestions proposed by the commentators.
§ 54.40. Bonds or Other Security.
Section 54.40 addresses the statutory requirement of a licensee providing a bond or other acceptable security to obtain and to maintain an electric generation license.
The Environmentalists state that nontraditional marketers should be exempt from the bonding requirements because these entities play a supportive role for another licensee and do not receive compensation from consumers or handle consumer payments. The Environmentalists argue that no bond is necessary. EDF suggests that unconventional entities should be exempted from the $250,000 bond.
MAPSA and EDF believe that claims by consumers should be processed according to the applicable contract, not through the bond. MAPSA states that the language concerning the amount of a bond is ambiguous and appeared to include the possibility that another party could ask that the bond for a particular supplier be increased.
We recognize that a nontraditional marketer may conduct their transactions through other licensees and provide to consumers their services without compensation. However, the act requires that each licensee furnishes a bond or other security approved, in both the form and the amount, by the Commission. The act does not allow the Commission to exempt any licensee. In view of this, the Commission proposes that these regulations allow the license applicants to request modification of the security level. See Discussion, infra., at pp. 38-39.
GMER notes that the bond is not meant to be used for collection of unpaid taxes. GMER argues that if the Legislature had intended the bond to be used for payment of unpaid taxes, it could have stated as much.
We agree with GMER to the extent that we will amend section 54.40(b) to delete the references to ''other taxes'' and section 54.40(e) to delete references to ''assessments due,'' as triggering events for the payments pursuant to bonds or other financial securities. However, we will retain the reference to the payment of gross receipts tax. We believe that it is appropriate to identify this as one of the purposes of the security requirements. There are circumstances, under the act, in which consumers who have paid these taxes to an EGS may subsequently be charged these same taxes by an EDC. We wish to protect these consumers from the costs of an EGS's failure to remit the gross receipts taxes to the Commonwealth.
Senator Kukovich states that bonding requirements for small, entrepreneurial companies that expect to sell less than $5 million per year of electricity should be 5% of their expected revenues rather than $250,000. Senator Kukovich suggests that companies which expect to sell more than $5 million of electricity should post a $250,000 bond.
The Environmentalists also suggest that the initial level of the bond be at 5% of the expected sales and applicants who expect to sell over $5 million of electric be required to provide a $250,000 bond.
While we have noted that an applicant may request modification of the initial $250,000 financial security level, we are reluctant to adopt levels which vary widely upon the expected level of the applicant's sales. We believe that, if the applicant can provide specific reasons for modification of the financial security level, we will modify the $250,000 level accordingly. We believe that by stating clearly that the initial financial security level is a specific amount we have diminished uncertainty and facilitated expeditious licensing. We believe that the process of determining the appropriate expected level of sales would add to a delay in reviewing license applications to the detriment of a competitive marketplace. It may also expose consumers to financial risks, especially from new start-up enterprises in the new competitive market.
Horizon, GMER, MAPSA and West Penn contend that the bonding requirement set at 10% of gross receipts is burdensome, may be excessive and could be a disincentive to competition.
In its comments, IRRC recommends that the Commission explain why it is appropriate and reasonable to set the bonding requirement at 10% of a licensee's quarterly receipts. The Commission understands IRRC's confusion. Under section 54.39(a), a supplier's information about gross receipts is reported quarterly to the Commission so that the Commission can better monitor the development of the competitive market. The bonding level is based on the supplier's annual receipts for the previous year. Reviewing this section, the Commission understands how the confusion arose and has adjusted the language to clarify this provision.
Section 2809(c) allows the Commission to determine the form and the amount of security to ensure the financial responsibility of the supplier and the supply of electricity at retail in accordance with contracts, agreements or arrangements. We are very concerned that we avoid adopting regulatory requirements which limit the inception of a competitive market. At the same time, we recognize our responsibilities to consumers and to the Commonwealth. Consumers may believe that the new competitive marketplace poses too many risks and they may choose not to participate. With these conflicting elements in mind, the Commission wished to clearly state a proposed level of financial security which was adequate but not overly burdensome.
The level proposed is 10% of a supplier's reported annual gross receipts. First, the security level should insure the payment of the GRT and be a reasonable base amount of the security for the Commission to accept. The current GRT rate is 4.4% of annual gross receipts. The Commission does not believe that the bond should be used to secure the payment of any taxes except the GRT as the GRT is the only tax that, if not paid by the supplier, can be collected from ratepayers.
The second major purpose of the bond is to insure ''the flow of electricity at retail.'' The Commission believes that it is reasonable to also base the amount of security necessary to ''insure the flow of electricity at retail'' on the supplier's annual gross receipts as this is the measure of the amount of business that a supplier conducts in the Commonwealth. Thus, the bonding level is progressive for suppliers, with lower annual sales required to provide a lower bonding amount than suppliers with greater annual sales. Considering that the current year's bonding level is based on the previous year's sales, the prior year's gross revenues may be an inadequate estimate of the upcoming year's revenues if the licensee's sales were increasing or the market price of energy increased. To account for this possibility, the Commission believes it is reasonable to require an additional amount of financial security, over the 4.4% GRT level, resulting in the total 10% level proposed.
IRRC comments that the Commission should provide specific guidance on how the bond or other security must be structured to gain approval of a license application. IRRC also notes that the Commission would approve the use of other security instruments on an ad hoc basis. IRRC recommends that the Commission provide further guidance on the information necessary to use a security other than a bond.
Because of the variety of possible financial security instruments which might be proposed by the applicants and in view of the compressed time-frame available before the initiation of the Pilot Programs, we were reluctant to prescribe a specific form of a bond or other financial security. The Commission staff responded to numerous requests for information and provided applicants with examples of financial security instruments which had been accepted by the Commission. We continue to be concerned that the prescription of a specific form of bond may be an unintended barrier to competition.
We have informed license applicants that the Commission required that the bond or other security name the Commission as the obligee or beneficiary of the bond. Naming the Commission as the sole beneficiary insures that the Commission has notice when a party or parties file a claim for reimbursement against the security so that the Commission can direct its legal staff to intervene as is appropriate to protect the public interest. The bonds and other securities that have proved to be acceptable to the Commission for interim licenses include the following language:
This bond (or other security) is written in accordance with Section 2809(c)(1)(i) of the Public Utility Code, 66 Pa.C.S. § 2809(c)(1)(i), to assure compliance with applicable provisions of the Public Utility Code, 66 Pa.C.S. §§ 101, et seq., and the rules and regulation of the Pennsylvania Public Utility Commission by the Principle as a licensed electric generation supplier; to ensure the payment of Gross Receipts Tax as required by Section 2810 of the Public Utility Code, 66 Pa.C.S. § 2810; and to ensure the supply of electricity at retail in accordance with contracts, agreements or arrangements. Payments made pursuant to this bond (security) shall enure first to the benefit of the Commonwealth, and second, to any and all retail electric retail electric generation customers to whom the Principle may be held legally liable for failure to supply electric generation pursuant to contract, agreements or arrangements. Any claims made by the Commonwealth shall have priority over claims made by private individuals. Proceeds of the bond (security) may not be used to pay any fines or penalties levied against the Principle for violations of the law, or for payment of any other tax obligations owed to the Commonwealth.As seen from the above language, the security must list the purposes for which it is given and the parties who may file claims pursuant to it. The Commission believed that prioritizing the Commonwealth's tax claims above private individual's non-tax claims better protected the suppliers' customers who would ultimately pay the GRT in the event that a supplier's failed to pay the tax. See 66 Pa.C.S. § 2809(c)(2).
In the securities used for the interim licenses, the Commission also required that the securities be interpreted under Pennsylvania law or in the alternative, contain no ''choice of law'' clause at all.
The Commission has added this additional information to section 54.40(f).
PEA believes that the Commission should expressly establish intermediate priority of EDC's claims between those of the Commonwealth and private persons. UGI states that section 54.40(e) recognizes the claims of the Commonwealth over those of the private person but neglects the priority rights of the EDCs. UGI continues that in accordance with section 2809(c)(2), the EDC is responsible for an EGS's unpaid Gross Receipts tax and permits the EDC to seek reimbursement of the tax from the EGS. Recovery of this expense by the EDC should take priority over claims of the ''private person'' as specified in § 54.40(e) of these proposed regulations. Therefore, UGI requests that the EDC's claim be given priority in accordance with this responsibility, and that language which prioritizes the EDC's claims below that of the Commonwealth but exceeding that of all other claimants should be added to these regulations. IRRC states that it is reasonable to assign the EDC second priority in claims for payment, after the Commonwealth.
The Commission agrees that the EDCs should have second priority over private persons for the purpose of being reimbursed for claims under provisions of 66 Pa.C.S. §§ 2806(g)(3)(iii), 2809(c)(2) and 2810(m). However, the reason for our agreement is different. An EDC may collect any GRT that it pays to the Commonwealth on behalf of an abdicating supplier from the supplier's former customers. See 66 Pa.C.S. § 2809(c)(2). It is the customers who are at risk of having to pay the GRT twice--once to the supplier who did not turn over the tax collected to the Commonwealth and the same GRT again to the EDC after the EDC pays the tax. We believe that it is in the public interest to permit an EDC to claim against the bond for reimbursement of GRT left unpaid by the supplier. We see this action as preferable to seeking collection of the tax from the EDC transmission and distribution customers through rate increases.
IRRC recommends that the Commission include in the regulation information that would be required to permit the use of an instrument other than a bond as security. The Commission agrees and will revise subsection (f) accordingly. The Commission notes that it prefers a bond to other securities, but will accept a different form of security that can be shown to offer the same degree of safety as a bond and in case of a breach, the same relative ease of collection as a bond.
§ 54.41. Transfer or abandonment of license.
Section 54.41 requires a licensee to obtain Commission permission before transferring a license, and further that a licensee notify the Commission, its customers, the default supplier, now the provider of last resort, and the affected EDC. The notice is to be given at ''intervals of 3, 2, 1 billing cycles'' preceding the abandonment.
West Penn states that the transfer due to a name change or organizational change of an affiliated company should be permitted subject to pending Commission approval, as opposed to prior Commission approval. West Penn is concerned that there may be an interruption in service by a supplier.
PEA and UGI support the proposed requirement of advanced notice by an EGS of its intent to abandon service.
Representative Lloyd requests that the Commission clarify the customer notice requirements of the ''3, 2, 1 billing cycles.''
We will not adopt West Penn's suggestion. It has been our experience that after the fact submissions are unsatisfactory. We recognize the need to maintain continuity of service to consumers but we also recognize our responsibility to issue licenses to applicants who meet the requirements of the act. Furthermore, we will amend section 54.34 to note that, upon notification of a material change in organizational structure, unless the Commission otherwise directs, an EGS does not need to file an amended application. This amendment to section 54.34 should address some of West Penn's concerns over transfers due to a name change or organizational change of an affiliate. However, we are concerned that allowing after the fact submissions of license transfers may be detrimental to consumers and the marketplace.
We will adopt Representative Lloyd's suggestion to amend the requirements for notice of the abandonment of service by an EGS. A licensee who wishes to abandon service shall be required to provide 90 days prior notice to the Commission, the affected distribution utilities and default suppliers before the effective date of the abandonment. The EGS shall also provide individual notice to each of its customers with each billing, in each of the three billing cycles preceding the effective date of the abandonment.
§ 54.42. License Suspension; License Revocation.
Section 54.42 sets out the circumstances that would result in license suspension or revocation. These penalties would be imposed consistent with due process considerations.
MAPSA states that the proposed regulation appears to reflect a ''strict liability'' standard and that an inadvertent and unintentional transfer of a customer could lead to a suspension or revocation. MAPSA suggests that the Commission qualify the regulation to reflect that the violation must be ''material'' and substantially affect the technical and financial fitness of the supplier. MAPSA also notes that several provisions appear to be redundant and inconsistent with rules established or proposed to be established.
The OCA suggests that a separate basis for revocation for the violation of any other Pennsylvania law that protects consumers should be added to the items listed in the proposed rule.
PEA, UGI and PP&L propose substantial changes to section 54.42(b) and (c) relating to the unauthorized transfer of customers. These parties argue that these provisions are neither necessary nor appropriate for inclusion in these regulations. These parties note that these matters are being addressed in several proceedings before the Commission. PP&L notes that an illegal act on the part of an EDC affiliated with an EGS should not automatically and necessarily result in the suspension or revocation of the EGS license.
IRRC agrees with the EDC commentators that subsections (b) and (c) were superfluous and a possible source of administrative confusion. IRRC recommends replacing these subsections with a new paragraph which states:
Receiving and accepting the transfer of a customer, without documentation of the customer's consent as required by Section 2807(d)(1) of the Code.IRRC also suggests an alternative paragraph which referred to another pertinent Commission rulemaking.
We will not adopt MAPSA's suggestion to add the term ''material'' to qualify the violations in these provisions. We note that we have clearly stated that our actions under these provisions will be ''[c]onsistent with due process, . . .'' and arguments involving the nature of the alleged violation may be raised by a licensee in its defense. See Section 54.42 (a).
We believe that the OCA's proposal to place applicants on notice that they may be penalized by this Commission for violating Pennsylvania consumer protection laws is appropriate. We have become aware of allegations of abusive practice in other jurisdictions. We are concerned about the impact the abuses may have on the full development of a competitive marketplace. If consumers are reluctant to participate in a competitive market because of the possibility of becoming the victim of fraud or other consumer abuses, the benefits of a fully competitive marketplace will be reduced.
Finally, we will also adopt IRRC's proposal to delete subsections (b) and (c) and replace them with the proposed language which references section 2807(d)(1) of the act. The Commission still retains the authority to examine and penalize the EDCs for acts which violate the Code, the Commission's regulations and the Commission's orders.
§ 54.43. Standards of Conduct and Disclosure for Licensees.
Section 54.43 sets out standards of disclosure and conduct for licensees for the protection of Pennsylvania's consumers.
In its comments, the OCA states that the Commission should directly reference in this regulation the future rules involving customer information and disclosure, change of supplier and other consumer protection rules and the specific provisions of these rules that will overlap with, or substitute for, these general policies at the time of their adoption. The OCA has concerns that the licensees may argue that they have not violated these provisions even though their actions reveal a violation of one or more of the specific rules. In the same vein, GMER states that this section should be coordinated with proposed customer information regulation at section 54.5(e) (relating to terms of service--residential and small customers) which provides for written disclosure of energy sources.
The Commission does not agree that it should reference future rules or their specific provisions in section 54.43 as these rules have not yet been finalized, and specific provisions in these rules as proposed may be changed prior to their approval. When these rulemakings are finalized, the Commission may revisit section 54.43 as necessary.
The majority of the comments were received on Subsection b. Section 54.43(b) provides that upon the request of a customer, a utility shall provide environmental information about its energy sources. PEA states that the provision should apply only to EGSs actually making references to fuel sources, renewable resources and environmental impact characteristics in their marketing communications. UGI states that this subsection is unduly burdensome and should only apply to those companies that are specifically marketing or claim to be providing renewable or ''green'' energy sources. IRRC recommends that the Commission consider making EGSs who make marketing claims regarding environmental characteristics of their energy substantiate their claims and recommends that subsection (b) should only apply to these marketers.
The Commission does not believe that this requirement is burdensome as the information will be provided only to a customer that requests such information. Moreover, the Commission regards this provision as a necessary consumer protection requirement. The consumer who is interested in purchasing ''environmental friendly'' generation needs information about other energy sources to be able to assess whether what he is really being offered by a so-called ''green'' marketer is more environmental friendly than other generation. Therefore, the Commission believes the requirement should apply to all suppliers. The Commission will take IRRC's suggestion regarding making ''green'' marketers substantiate their claims under advisement.
GMER comments that in the phrase ''and environmental characteristics of its electric generation purchases'' in subsection (b) is sufficiently over broad as to lead to unreasonable demands on suppliers for generation-specific studies, assessments, projections and the like. EDF states that subsection (b) should require licensees to provide information regarding the environmental characteristics of all power it sells into the Pennsylvania market, not just for the power it purchases. IRRC recommends that the Commission clarify the term ''environmental characteristics'' that it describes as vague and subject to broad interpretation.
Consistent with these comments, the Commission has revised the provision by removing ''environmental characteristics'' and substituting ''plant emissions.'' Furthermore, we agree with the commentators that the proposed rule should not apply to the licensee's generation ''purchases'' but to all generation supplies.
Section 54.43(f) addresses the liability of a licensee for fraudulent, deceptive or other unlawful marketing or billing acts. PEA states that although the subsection (f) holds the licensee liable for misdeeds of its agents or representatives, it fails to hold the licensee liable for its own misdeeds. IRRC supports this recommendation.
The Commission agrees that this omission should be corrected and has revised the regulation accordingly.
§ 3.551. Official Forms.
The OCA believes that the license application and accompanying affidavits should be included in the final version of the rule. Because publication considerations, the Commission has eliminated a number of forms from its regulation, and designated a Forms Officer in our Secretary's Office from whom a copy of a form may be obtained. Because inclusion of a form in the regulations unduly complicates the task of making routine revisions to the form, the Commission declines to make this change. However, the Commission will make the application form available on its Internet home page.
Non-Traditional Marketers
The definition of ''electric generation supplier'' at 66 Pa.C.S. § 2803 is very broad, and our interpretation of this definition is that every entity that engages in an activity listed as that undertaken by an electric generation supplier must be licensed. In our proposed order, we sought comment on the proposed licensing procedure and the bonding, reporting and other licensing requirements as applied to community-based organizations, civic, fraternal or business associations, common interest groups and other entities that work with a licensed supplier to ''market'' aggregated services to their members or constituents. We also asked for comments on whether the Commission should adopt specific guidelines for non-traditional marketers, or whether such matters should be addressed through less formal interaction between the applicant and the staff. We thank all commentators who responded to our requests.
In its comments IRRC raises due process concerns about finalizing regulations for non-traditional marketers in this rulemaking. We agree and will not adopt final regulations regarding these marketers in this rulemaking. Instead, we will continue to encourage non-traditional marketers to interact with the Commission staff concerning the preparation of the license applications. The Commission staff will be available to advise any potential applicant on the licensing process.
Also, the Commission advises that non-traditional marketers may petition the Commission for waiver of certain provisions of the licensing regulations. The waivers will be granted for good cause shown.
As we stated in our November 24, 1997 order: inherent in the proposed licensing regulations is the concept that the licensing requirements, that is the nature and quantity of financial and technical fitness documentation required to be submitted in applying for a license, and the reporting, bonding and other administrative requirements for maintaining a license, are directly related to the scope of activities proposed to be licensed. The Commission believes that through application of this concept the licensing regulations will not impose unreasonable burdens on ''non-traditional marketers'' in applying or maintaining a license. Proposed Rulemaking Order, p. 4.
The Commission believes that it is important that non-traditional marketing groups participate in the electric generation market as the entry of such marketers will lessen the likelihood of domination of the market by a few large entities. The Commission encourages the participation of such entities and consistent with the law, will be flexible in applying the licensing regulations.
In promulgating these licensing regulations the Commission has attempted to balance the maintenance of consumer protection and service quality with the development of a robust electric generation market. The regulations require that license applicants provide the Commission with adequate information so that only technically and financially fit entities are licensed as suppliers. Once licensed, the supplier is required to notify the Commission and others if there is a major change in the supplier's operation or service offerings. The requirements for maintaining a license including bonding, regulatory assessment payments and information report filing are not overly burdensome and should not act as barriers for market entry of new suppliers into Pennsylvania's market.
Accordingly, under section 501 of the Public Utility Code, 66 Pa.C.S. § 501, the Electricity Generation Customer Choice and Competition Act, 66 Pa.C.S. §§ 2801, et seq., and the Commonwealth Documents Law (45 P. S. §§ 1201, et seq.) and regulations promulgated thereunder at 1 Pa. Code §§ 7.1--7.4, we amend our regulations by adding §§ 54.31--54.42 , and amending § 3.551 as noted above and as set forth in Annex A; Therefore,
It Is Ordered That:
1. The regulations of the Commission, Chapters 3 and 54, are amended by adding §§ 54.31-- 54.42 and amending § 3.551 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
2. The Secretary shall submit this order and Annex A to the Office of the Attorney General for review as to form and legality.
3. The Secretary shall submit a copy of this order, together with Annex A, to the Governor's Budget office for review of fiscal impact.
4. The Secretary shall submit this order and Annex A for formal review by the designated standing committees of both Houses of the General Assembly, and for formal review and approval by IRRC.
5. The Secretary shall duly certify this order and Annex A and deposit them with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
6. A copy of this order be served upon the Office of Consumer Advocate, the Office of Small Business Advocate, the Pennsylvania Department of Revenue, the Pennsylvania Department of State, all licensed electric generation suppliers and all persons who submitted comments in the rulemaking proceeding.
7. The regulations adopted in this order are effective upon publication in the Pennsylvania Bulletin.
8. Alternate formats of this document are available to persons with disabilities and may be obtained by contacting Shirley M. Leming, Regulatory Coordinator, Law Bureau at (717) 772-4597.
JAMES J. MCNULTY,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 3338 (July 11, 1998).)
Statement of Vice Chairperson Robert K. Bloom Before the Commission for consideration is the final rulemaking order implementing Licensing Requirements for Electric Generation Suppliers (EGS). The purpose of this rulemaking is to establish uniform procedures for the Commission review, analysis and approval of EGS license applications pursuant to the Electricity Generation Customer Choice and Competition Act (Act). Comments from sixteen interested parties addressing the various proposals within the proposed rulemaking were received and considered in finalizing these regulations.
Overall, I support the final regulations as revised with one exception concerning the security bonds license applicants must furnish to ensure their financial responsibility. The final regulations, similar to the Commission's interim requirements, continue to allow licensees to utilize securities other than a bond to meet this financial responsibility. The regulations initiate a petition process whereby applicants may request special permission to use alternative security instruments. I disagree with this principle. I believe that the Commission should be consistent and fair and hold all EGS applicants to the same bonding standard. The process included within the regulations will result in unequal treatment of potential competitors in the electric generation market and will result in a burdensome process for Commission staff members to administrate. For these reasons, I must dissent on this portion of the final regulations.
Statement of Commissioner Nora Mead Brownell I support adoption of the licensing regulations before us, including the provision that licensees may request an alternative form of security. This provision is consistent with section 2809(c) of the Public Utility Code, 66 Pa.C.S. § 2809(c). However, any such request must be substantially justified from the perspectives of equivalent financial protection as well as the nature of the entity's business. Accordingly, although I support the regulations presented to us, I am sympathetic to the concerns of the Vice Chairperson and will review any requests for alternative treatment accordingly.
Fiscal Note: Fiscal Note 57-191 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 52. PUBLIC UTILITIES
PART 1. PUBLIC UTILITY COMMISSION
CHAPTER 3. SPECIAL PROVISIONS
Subchapter H. FORMS § 3.551. Official forms.
The following is a list of forms which may be obtained from the Office of the Secretary of the Commission.
* * * * * (15) Application for electricity or electric generation supplier license.
* * * * *
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 54. ELECTRICITY GENERATION CUSTOMER CHOICE AND COMPETITION
Subchapter B. ELECTRICITY GENERATION SUPPLIER LICENSING Sec.
54.31. Definitions. 54.32. Application process. 54.33. Application form. 54.34. Change in organized structure or operational status. 54.35. Publication of notice of filing. 54.36. Protests to applications. 54.37. Approval. 54.38. Regulatory assessments. 54.39. Reporting requirements. 54.40. Bonds or other security. 54.41. Transfer or abandonment of license. 54.42. License suspension; license revocation. 54.43. Standards of conduct and disclosure for Licensees. § 54.31. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicate otherwise:
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. See section 2803 of the code (relating to definitions).
Applicant--A person or entity seeking to obtain a license to supply retail electricity or electric generation service.
Broker--An entity, licensed by the Commission, that acts as an intermediary in the sale and purchase of electric energy but does not take title to electric energy. See section 2803 of the code.
Code--The Public Utility Code, 66 Pa.C.S. §§ 101--3316.
Department--The Department of Revenue of the Commonwealth.
EDC--Electric distribution company.
Electric generation 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 (Editor's Note: The reference to ''this chapter'' refers to the code.) brokers and marketers, aggregators or any other entities, that sells to end-use customers electricity or related services utilizing the jurisdictional transmission and 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 the 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). See section 2803 of the code.
Interim license--A temporary license granted to an electric generation supplier under interim standards adopted in the Commission's Final Order on Licensing Requirements for Electricity Generation Suppliers, entered February 13, 1997 at Dkt. No. M-00960890 F0004.
License--A license granted to an electric generation supplier under this subchapter.
Licensee--A person or entity which has obtained a license to provide retail electricity or electric generation service.
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. See section 2803 of the code.
Marketer--An entity, licensed by the Commission, that acts as an intermediary in the sale and purchase of electric energy but does not take title to electric energy. See section 2803 of the code.
Marketing--The publication, dissemination or distribution of informational and advertising materials regarding the electric generation supplier's services and products to the public by print, broadcast, electronic media, direct mail or by telecommunication.
Offer to provide service--The extension of an offer to provide services or products communicated orally, or in writing to a customer.
Provider of last resort--A supplier approved by the Commission under section 2807(e)(3) of the code (relating to duties of electric distribution companies) to provide generation service to customers who contracted for electricity that was not delivered, or who did not select an alternative electric generation supplier, or who are not eligible to obtain competitive energy supply, or who return to the provider of last resort after having obtained competitive energy supply.
Renewable resource--As defined in section 2803 of the code.
§ 54.32. Application process.
(a) An electric generation supplier may not engage in marketing, or may not offer to provide, or provide retail electricity or electric generation service until it is granted a license by the Commission.
(b) An application for a license shall be made on the form provided by the Commission. A copy of the application may be obtained from the Commission's Secretary. The application form will also be made available on the Commission's Internet web site. An application shall be verified by an oath or affirmation as required in § 1.36 (relating to verification). See section 2809(b) of the code (relating to requirements for electric generation suppliers).
(c) An original and eight copies of the completed application and supporting attachments shall be filed. An application for a license shall be accompanied by the application fee as established in § 1.43 (relating to schedule of fees payable to the Commission).
(d) Copies of the completed application with supporting documentation shall be served on the following: the Office of Consumer Advocate, the Office of Small Business Advocate, the Department and the Office of the Attorney General, and the EDCs through whose transmission and distribution facilities the applicant intends to supply customers.
(e) Incomplete applications and those without supporting attachments, when needed, will be rejected without prejudice. The license application, with supporting attachments, shall be completed in its entirety.
(f) When an answer on the application requires the disclosure of privileged or confidential information not otherwise available to the public, the applicant may designate at each point in the application where information is disclosed that is confidential and privileged.
(1) One copy of this confidential or privileged information conspicuously marked at the top as ''CONFIDENTIAL'' may be submitted to the Office of the Secretary with the application. An applicant must provide reasons for protecting this information.
(2) The request for confidentiality will be treated as a petition for protective order and will be ruled on by the Commission in conjunction with the license application.
(3) 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 regulations in this title pertaining to confidentiality.
(g) An electric generation supplier who has been granted an interim license shall apply for a license under this subchapter by updating its prior license application to include additional and updated information required by § 54.33 (relating to application form). An updated application shall be submitted by December 7, 1998.
(h) An EDC acting within its certified service territory as a provider of last resort is not required to obtain a license.
§ 54.33. Application form.
(a) The application form includes information that will be used in the evaluation of the financial fitness and technical fitness to render service. This information includes the following:
(1) An identification of the geographic area that the applicant proposes to serve.
(2) An identification of the type of service that the applicant proposes to furnish.
(3) An identification of the class of customers to which the applicant proposes to provide these services.
(4) An identification of the applicant's utility affiliates.
(5) A description of the applicant's business structure.
(6) Financial information sufficient to demonstrate financial fitness. This information may include credit ratings and history, audited financial statements, and insurance pertinent to the conduct of the applicant's business as an electric generation supplier.
(7) Evidence of competency and experience in providing the scope and nature of the applicant's proposed services. This evidence may include descriptions of the applicant's prior experience, proposed staffing and employe training commitments, business plans, and agreements, arrangements and contracts for generation, transmission and related services. Documentation of the applicant's membership in the East Central Area Reliability Coordination Agreement (ECAR), the Mid Atlantic Area Council (MAAC) or other National American Electric Reliability Council (NERC) regional reliability councils shall be submitted if applicable to the scope and nature of the applicant's proposed services.
(8) Evidence of information demonstrating the applicant's ability to comply with Commission's applicable requirements concerning customer billing, customer education, billing and terms of service, and customer information. This evidence may include prior regulatory experience of the applicant, prior business experience in energy or other service-oriented industries, staffing and staff training commitments, agreements, arrangements and contracts for customer education and information service, customer satisfaction survey results, government agency reports and complaint statistics compiled by the Better Business Bureau or similar business organizations.
(9) Certification that notice of the application was published in accordance with § 54.35 (relating to publication of notice of filing) shall be filed with the Commission's Secretary. The certification shall be notarized and include a photostatic copy of the notices as published. An application will not be considered complete for Commission review without this certification.
(b) The application also directs, under sections 2806 (g)(3)(i), 2809(c)(1) and 2810 (c)(6) of the code (relating to implementation, pilot programs and performance-based rates; requirements for electric generation suppliers; and revenue-neutral reconciliation), that the applicant provide tax information. This tax information includes:
(1) The name, address, telephone number, electronic numbers and addresses used to transmit tax and related information of the persons responsible for preparing and filing the applicant's Pennsylvania tax returns.
(2) Trade names or fictitious names used by the applicant.
(3) The type of business association (for example, sole proprietor, partnership and corporation).
(4) The names of the owners, general partners or corporate officers.
(5) The number of the applicant's current and anticipated employes working in this Commonwealth.
(6) An identification of the applicant's assets in this Commonwealth.
(7) The principal office in this Commonwealth or of its registered agent.
(8) An applicant's Department tax identification numbers including Sales Tax license number, employer identification number and corporate box number. If tax numbers have not yet been obtained, an applicant shall provide the filing date of its application for these numbers.
(c) Tax information provided under subsection (b) shall be filed with the Secretary of the Department at the time that application is made with the Commission.
§ 54.34. Change in organizational structure or operational status.
(a) The applicant is under a duty to inform the Commission of a material change in the information provided in the application during the pendency of the application, or while the licensee is operating in this Commonwealth.
(b) A material change in the organizational structure or operation that affects an applicant's or a licensee's operation in this Commonwealth shall be reported to the Commission within 30 days of the date of the change. Specifically, notification shall be given to the Commission of a change in the following:
(1) The ownership of generation or transmission facilities or other inputs to electric power production.
(2) An affiliation with an EDC, or an entity which owns generation or transmission facilities or other inputs to electric power production.
(3) An affiliation with an entity that has a franchised service area.
(c) Unless directed otherwise by the Commission, the licensee does not need to file an amended application with the Commission.
§ 54.35. Publication of notice of filing.
(a) Notice of filing an application shall be published in newspapers of general circulation covering each county in which the applicant intends to provide service as required by § 5.14(a)(2) (relating to applications requiring notice). Applicants may contact the Commission's Press Secretary to confirm the identity of the newspapers of general circulation in which notice shall be published.
(b) The notice shall be written in plain language and include the name, address and telephone number of the applicant, a description of the proposed services to be provided and the geographic area to be served. The notice shall include the application docket number and a statement that protests related to the technical or financial fitness of the applicant shall be filed within 15 days of the publication date of the notice with the Commission's Secretary, Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265. The notice in an acceptable electronic format shall be submitted to the Commission's Secretary for posting on the Commission's Internet web site and, if appropriate, on the Commission's electronic bulletin board.
§ 54.36. Protests to applications.
(a) Consistent with § 5.14(b) (relating to applications requiring notice), a 15-day protest period commences on the date notice of the application filing is published in newspapers. An interested party may file a protest to an application in compliance with § 5.52(a) (relating to content of a protest to an application) and shall set out clearly and concisely the facts upon which challenge to the fitness of the applicant is based. An applicant may file an answer to the protest within 10 days of when the protest is filed. Protests which do not fully comply with § 5.52(a) will be rejected.
(b) Protests may challenge only the applicant's financial and technical fitness to provide the service for which a license is requested. Consistent with the requirements of due process, sanctions, such as revocation or suspension of a supplier's license or the imposition of a fine, may be imposed on parties who intentionally misuse the protest process by repeated filing of competitive protests.
(c) A protest to the applicant's technical or financial fitness to provide service will be assigned to Commission staff for review. Staff will determine if the protest fully complies with § 5.52(a) and sets out clearly and concisely the facts upon which the challenge to the fitness of the applicant is based. Staff will determine if the protest is sufficiently documented. If a protest is not sufficiently documented, Commission staff will prepare a recommendation for Commission consideration dismissing the protest and granting the application. If a protest is sufficiently documented, the application will be transferred to the Office of Administrative Law Judge for hearings or mediation as deemed appropriate.
§ 54.37. Approval.
(a) 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 code and the lawful Commission orders and regulations, specifically including Chapter 56 (relating to Standards and Billing Practices for Residential Utility Service).
(2) The proposed service is consistent with the public interest and the policy declared in Chapter 28 of the code (relating to the Electricity Generation Customer Choice and Competition Act. See section 2809(b) of the code (relating to requirements for electric generation suppliers).
(b) Completed applications, with all supporting documentation, including any documentation or clarifying information requested by Commission staff, if unprotested, will be processed within 45 days after acceptance by the Commission. If the application is not processed within the time period, the application will be deemed approved. The review period may be extended for a reasonable period of time by Secretarial Letter.
§ 54.38. Regulatory assessments.
(a) A licensee shall be required to pay assessments to be used to defray regulatory costs. See section 510 of the code (relating to assessment for regulatory expenses upon public utilities). Assessments will be based upon the administrative costs incurred by the Commission related to generation suppliers. These costs include:
(1) Maintaining records related to licensees and administering other provisions of the code related to maintenance of adequate reserve margins.
(2) Compliance with Chapter 56 (relating to standards and billing practices for residential utility service).
(3) Fulfilling consumer information and education obligations.
(b) Yearly assessments shall be paid by the licensee within 30 days of receipt of notice of the amount lawfully charged against it as a condition of maintaining a license to supply electricity or electric generation. See section 510(c) of the code.
§ 54.39. Reporting requirements.
(a) A licensee shall report its level of gross receipts to the Commission on a quarterly basis. Gross receipt information shall be filed with the Commission within the 30 days following the end of the first full quarter, and of each subsequent quarter that the license is in effect.
(b) A licensee shall file an annual report on or before April 30 of each year, for the previous calendar year. The annual report shall contain the following information (See section 2810(c)(6) of the code (relating to revenue-neutral reconciliation):
(1) Updates to the tax information requested in the application in § 54.33(b) (relating to application form).
(2) The total amount of gross receipts from the sales of electricity for the preceding calendar year.
(3) The total amount of electricity sold, stated in kilowatt hours, during the preceding calendar year.
(4) The percentage of total electricity supplied by each energy source, including a detailed breakdown of renewable resources as defined in section 2803 of the code (relating to definitions).
(c) A licensee shall be required to meet periodic reporting requirements as may be issued by the Commission to fulfill the Commission's duty under Chapter 28 of the code (relating to Electricity Generation Customer Choice and Competition Act) pertaining to reliability and to inform the Governor and Legislature of the progress of the transition to a fully competitive electric market.
(d) The information requested in this section will be made available for public review upon request to the Commission subject to any rulings on confidentiality made by the Commission.
§ 54.40. Bonds or other security.
(a) A license will not be issued or remain in force until the licensee furnishes a bond or other security approved by the Commission. See section 2809(c) of the code (relating to requirements for electric generation suppliers).
(b) The purpose of the security requirement is to ensure the licensee's financial responsibility, the payment of gross receipts tax as required by section 2810 of the code (relating to revenue-neutral reconciliation), and the supply of electricity at retail in accordance with contracts, agreements or arrangement. See section 2809(c) of the code.
(c) The initial security level required from each applicant is $250,000. Modifications of this amount commensurate with the nature and scope of business anticipated to be conducted in this Commonwealth may be granted where substantial evidence is submitted in support of the modification. A request for modification of this initial security level may be made in conjunction with the filing of the application. The license will be issued contingent on the submission of proof that the applicant has obtained a bond, or other approved security in the amount directed by the Commission.
(d) After the first year that the license is in effect, the security level for each licensee will be reviewed annually and modified primarily based on the licensee's reported annual gross receipts information. The security level will be 10% of the licensee's reported gross receipts. See section 2809 (c)(1)(i) of the code. Maintenance of a license will be contingent on the licensee providing proof to the Commission that a bond or other approved security in the amount directed by the Commission has been obtained. A licensee may seek approval from the Commission of an alternative level of bonding commensurate with the nature and scope of its operations.
(e) Payments pursuant to the security may result from the licensee's failure to pay the full amount of Gross Receipt Taxes, or failure to supply electricity or other services in accordance with contracts, agreements or arrangements.
(f) The bond or security shall include the following:
(1) The Pennsylvania Public Utility Commission, Commonwealth as the sole beneficiary.
(2) The purpose of the bond as follows:
This bond (or other security) is written in accordance with Section 2809(c)(1)(i) of the Public Utility Code, 66 Pa.C.S. § 2809(c)(1)(i), to assure compliance with applicable provisions of the Public Utility Code, 66 Pa.C.S. §§ 101, et seq., and the rules and regulation of the Pennsylvania Public Utility Commission by the Principle as a licensed electric generation supplier; to ensure the payment of Gross Receipts Tax as required by Section 2810 of the Public Utility Code, 66 Pa.C.S. § 2810; and to ensure the supply of electricity at retail in accordance with contracts, agreements or arrangements.(3) A listing of the prioritization of claims for payment under the security from highest priority to lowest priority as follows:
(i) The Commonwealth.
(ii) EDCs for the reimbursement of Gross Receipts Tax.
(c) Private individuals.
(4) A statement that the security shall be interpreted under law of the Commonwealth, or in the alternative, no choice of law is specified.
(g) The applicant may request the use of a security other than a bond. See section 2809 (c)(1)(i) of the code. The application shall include specific information about the licensee's need to use a security other than a bond; and shall provide the name, business address, the nature of the business of the entity issuing the security, and if available, the financial rating of the entity. The applicant shall demonstrate that the financial protection afforded by the security is equivalent to that of a bond.
(h) Licensee liability for unreasonable service, or for violations of the code and Commission orders and regulations is not limited by these security requirements.
§ 54.41. Transfer or abandonment of license.
(a) A license may not be transferred without prior Commission approval. See section 2809(d) of the code (relating to requirements for electric generation suppliers). Approval for transfer shall be obtained by petition to the Commission. The granting of such a petition does not eliminate the need for the transferee to complete and file with the Commission an application that demonstrates the transferee's financial and technical fitness to render service under the transferred license.
(b) A licensee may not abandon service without providing 90 days prior written notice to the Commission, the licensee's customers, the affected distribution utilities and providers of last resort prior to the abandonment of service. The licensee shall provide individual notice to its customers with each billing, in each of the three billing cycles preceding the effective date of the abandonment.
§ 54.42. License suspension; license revocation.
(a) A licensee shall comply with the applicable requirements of the code and Commission regulations and orders. Consistent with due process, a license may be suspended or revoked, and fines may be imposed against the licensee for:
(1) The failure to pay the yearly assessment.
(2) The failure to furnish and maintain a bond or other security approved by the Commission in the amount directed by the Commission.
(3) The nonpayment of taxes under Article II of the Tax Reform Code of 1971 (72 P. S. §§ 7201--7281.2) and Article XI of the Tax Reform Code of 1971 (72 P. S. §§ 8101--8104) and any taxes imposed by Chapter 28 of the code (relating to Electricity Generation Customer Choice and Competition Act). See sections 2806(g)(3) and 2809(c)(1) of the code (relating to implementation, pilot program and performance based rates; and requirements for electric generation suppliers).
(4) The failure to waive confidentiality with respect to tax information in the possession of the Department. See section 2810(c)(6)(iv) of the code (relating to revenue-neutral reconciliation).
(5) The failure to provide the address of its principal office in this Commonwealth or of its registered agent.
(6) The failure to follow the principles in § 54.43 (relating to standards of conduct and disclosure for licensees).
(7) A violation of applicable provisions of the code, this title and lawful Commission orders. See section 2809(b) of the code.
(8) A violation of Pennsylvania consumer protection law.
(9) The transfer of a customer without the customer's consent. See section 2807(d)(1) of the code (relating to duties of electric distribution companies).
§ 54.43. Standards of conduct and disclosure for licensees.
To protect consumers of this Commonwealth, licensees shall adhere to the following principles in the provision of electric generation service:
(1) A licensee shall provide accurate information about their electric generation services using plain language and common terms in communications with consumers. When new terms are used, the terms shall be defined again using plain language. Information shall be provided in a format that enables customers to compare the various electric generation services offered and the prices charged for each type of service.
(b) A licensee shall respond to reasonable consumer requests for information regarding energy sources by percentage, and plant emissions of its electric generation supply.
(c) A licensee 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 this title.
(d) A licensee shall maintain the confidentiality of a consumer's personal information including the name, address and telephone number, and historic payment information, and provide the right of access by the consumer to his own load and billing information.
(e) A licensee may 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 Subchapter IV of the Consumer Credit Protection Act (15 U.S.C.A. §§ 1691--1691f), relating to Equal Credit Opportunity. See 12 CFR 202-1--202.14 (relating to equal credit opportunity Regulation B).
(f) A licensee is responsible for any fraudulent deceptive or other unlawful marketing or billing acts performed by the licensee, its employes, agents or representatives. Licensee shall inform consumers of state consumer protection laws that govern the cancellation or rescission of electric generation supply contracts. See section 7 of the Unfair Trade Practices and Consumer Protection Law (73 P. S. § 201-7).
(g) A licensee shall comply with relevant Commission regulations, orders and directives that may be adopted.
[Pa.B. Doc. No. 98-1270. Filed for public inspection August 7, 1998, 9:00 a.m.] _______
1 Pilot Program filings are docketed as follows: Metropolitan-Edison Company, Dkt. No. P-00971168, Pennsylvania Electric Company, Dkt. No. P-0097169, Pennsylvania Power Company, Dkt. No. P-00971173, PECO Energy Company, Dkt. No. P-00971170, Allegheny Power Company, Dkt. No. P-00971172, Duquesne Light Company, Dkt. No. P-00971175, Pennsylvania Power & Light Company, Dkt. No. P-000971183, and UGI Utilities, Inc., Dkt. No. P-00971171.
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