RULES AND REGULATIONS
[52 PA. CODE CH. 54]
[28 Pa.B. 3780] [L-970126]
Customer Information Disclosure for Electricity Providers The Pennsylvania Public Utility Commission (Commission) on April 30, 1998, adopted a final rulemaking to provide adequate customer information concerning purchase of all electric services in a competitive generation market. The contact persons are Terrence Buda, Law Bureau, (717) 787-5755 and Annunciata Marino, Bureau of Fixed Utilities Service, (717) 772-2151.
Executive Summary
On December 3, 1996, Governor Tom Ridge signed into law 66 Pa.C.S. §§ 2801--2812 (relating to Electricity Generation Customer Choice and Competition Act) (act). The act revised Chapter 28 (relating to restructuring of the electric utility industry). The purpose of the act is to permit customers their choice of electricity generation suppliers while maintaining reliable and safe electric service.
Section 2807(d)(2) of the act requires the establishment of regulations ensuring that each electric distribution company, electricity supplier, marketer, aggregator and broker provide adequate and accurate customer information to enable customers to make informed choices regarding the purchase of all electricity services offered by that provider. The purpose of the regulation is to implement and codify this provision of the act.
Regulatory Review
Under section 5(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. 501 (January 31, 1998), and served on January 16, 1998, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Committee 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 these final-form regulations, the Commission has considered all comments received from IRRC, the Committees and the public.
These final-form regulations were deemed approved by the House Committee on Consumer Affairs and by the Senate Committee on Consumer Protection and Professional Licensure on June 8, 1998. IRRC met on June 18, 1998, and approved in accordance with section 5.1(e) of the Regulatory Review Act (71 P. S. § 745.5a(e)).
Public Meeting held
April 30, 1998Commissioners Present: John M. Quain, Chairperson, Concurring and Dissenting in part; Robert K. Bloom, Vice Chairperson, Concurring and Dissenting in part; John Hanger; David W. Rolka; Nora Mead Brownell
Final Rulemaking Order By the Commission:
On November 6, 1997, we adopted a proposed rulemaking order establishing customer information disclosure requirements for electricity providers. The order was entered on November 7, 1997, at Docket No. L-00970126. The regulations, which are required under 66 Pa.C.S. § 2807(d)(2), were undertaken as part of the implementation duties performed by the Commission under the Electricity Generation Customer Choice and Competition Act (act). Signed into law on December 3, 1996, by Governor Tom Ridge, the act revised the Public Utility Code, 66 Pa.C.S. §§ 101, et seq., by adding Chapter 28, relating to restructuring of the electric utility industry.
By this final rulemaking order, we adopt regulations which require each electricity provider to furnish adequate and accurate information that enables consumers to make informed choices regarding the purchase of all electricity services offered by that provider. In general, our regulations mandate that all information shall be provided to customers in an understandable format that allows them to compare prices and services on a uniform basis. Additionally, by this final rulemaking order, we direct that all electricity providers strictly adhere to our Policy Statement at 52 Pa. Code § 69.251 regarding the use of plain language in all written communications with consumers.
In order to facilitate the establishment of interim requirements prior to the promulgation of regulations, the Commission staff prepared a Discussion Document on Customer Information that was distributed to Electric Competition Stakeholders on February 3, 1997. On February 14, 1997, a public forum was held and a Working Group for Customer Information Disclosure was formally established. On March 7, 1997, written comments to the discussion document were received. By order entered April 1, 1997, at Docket No. M-00960890F.0008, we initiated a Request for Comments Concerning Proposed Interim Customer Information Requirements for Electric Distribution Companies and Electricity Suppliers. On July 11, 1997, the Commission entered an order establishing Customer Information Interim Guidelines.
The proposed regulations at Docket No. L-00970126 were published for comment at 28 Pa.B. 501 on January 31, 1998, with a 30-day comment period set. Written comments were provided by the following parties:
* Office of Consumer Advocate (OCA)
* Office of Attorney General (OAG)
* Allegheny Power (AP)
* Conectiv Energy (Conectiv)
* Duquesne Light Company (Duquesne)
* Enron Energy Services, Inc. (Enron)
* Environmental Defense Fund (EDF)
* The Environmentalists (consisting of the Clean Air Council, the Sierra Club, Citizen Power, the Group Against Smog and Pollution, the Energy Coordinating Agency, and the Nonprofits Energy Savings Investment Program)
* GPU Energy (GPU)
* Green Mountain Energy Resources L.L.C. (Green Mountain)
* Horizon Energy Company (Horizon)
* Lebanon Methane Recovery, Inc. (LMR)
* Mid-Atlantic Power Supply Association (MAPSA)
* NorAm Energy Management, Inc. and Electric Clearinghouse Inc. (NEMEC)
* PECO Energy (PECO)
* PP&L, Inc. (PP&L)
* Pennsylvania Coal Association (PCA) on behalf of its members
* The Pennsylvania Electric Association (PEA) on behalf of its member companies
* Renewable Energy Alliance (REA)
* Lawrence G. Spielvogel, Inc. (Spielvogel)
* UGI Utilities, Inc.--Electric Division (UGI)
* Constellation Energy Source (Constellation)
* State Representative William R. Lloyd, Jr. (Representative Lloyd)
* State Representative Frank Tulli, Jr. (Representative Tulli)
* State Senator Allen G. Kukovich (Senator Kukovich)
* Independent Regulatory Review Commission (IRRC)
Discussions about the proposed rulemaking also occurred during meetings with IRRC and in briefings before the House Consumer Affairs Committee and the Senate Committee on Consumer Protection and Professional Licensure.
Following review and consideration of the comments and discussions noted above, the Commission has developed final-form regulations. The overall objective of these regulations, of assuring that consumers have accurate and adequate information to meaningfully participate in a competitive generation market, has not changed. However, in response to the persuasive comments of several interested parties, we have extensively revised certain language and have reorganized the material in an effort to clarify many of the requirements. Each change is discussed in more detail.
Through these regulations, we have attempted to achieve a balance between the need for customer information and the development of competition in the retail electric industry. In doing so, we recognize that the varied forms of customer communications, such as billing, disclosure statements, customer choice of supplier, products and prices, customer relations, licensing requirements and distribution services, are interrelated and are important aspects of customer information disclosure requirements.
At the outset, Enron asserts that these regulations will adversely affect a restructured electric industry by inhibiting the full development of competition, thereby reducing potential consumer savings. Although Enron raises a legitimate concern about the potential effect of costly disclosure requirements on a competitive generation market, we believe that these regulations impose only the disclosure burdens that are necessary to ensure that adequate and accurate information is conveyed to customers in an understandable format, as required by § 2807(d)(2) of the act.
Enron also challenges the Commission's legal authority to promulgate these regulations. In particular, Enron claims that many of the specific details set forth by our regulations go beyond what is contemplated by the act. Horizon raises similar concerns, particularly challenging the Commission's statutory basis for the scope of the regulations and suggesting that the Commission take measures to ensure that customers are not inundated with information.
Section 2807(d)(2) of the act clearly and explicitly directs the Commission to establish regulations requiring electricity providers to furnish adequate and accurate information in a format that is understandable to consumers. That provision also specifically requires that customers be provided with information that allows them to compare prices and services on a uniform basis. Through our adoption of this final rulemaking order, we simply seek to fulfill the statutory objectives of ensuring that consumers receive accurate and adequate information and are sufficiently equipped to make informed decisions about alternative generation sources.
In determining the proper scope of these final regulations, the Commission is primarily guided by use of the term ''adequate'' in § 2807(d)(2). While it is equally important for the Commission to ensure that accurate information is furnished, the statutory requirement for the Commission to warrant the provision of adequate information necessarily entails the development of detailed regulations. In order to fulfill that legislative mandate, the Commission has determined what is adequate and has prescribed the necessary bill format and bill content, disclosure statement requirements and pricing practices for electricity providers to follow to assure the adequacy of the information that is conveyed to consumers.
The scope of these regulations is further defined by the statutory language requiring that information must ''enable customers to make informed choices'' and be ''in an understandable format that enables consumers to compare prices and services on a uniform basis.'' See 66 Pa.C.S. § 2807(d)(2). We believe that in order to satisfy our responsibility under the act, it is necessary to prescribe standard procedures governing the distribution of providing information to consumers. Through requiring all electricity providers to adhere to certain uniform rules applicable to communications with consumers, our final regulations seek to enable customers to meaningfully compare prices and services offered by a diverse group of electricity providers.
The following is a section by section summary of comments and regulatory analysis in support of the adoption of customer information disclosure requirements in this final rulemaking order.
Section 54.1. Purpose.
GPU seeks to clarify that these regulations apply only to residential and small business customers. In fact, however, §§ 54.1--54.3 apply to all customers, including large commercial and industrial customers, while the remaining regulation apply only to residential and small business customers. The purpose statement has been clarified to indicate this distinction.
Section 54.2. Definitions.
IRRC recommends that we adopt, verbatim, the statutory definitions at § 2803 of the act for the following terms: Aggregator, broker, CTC, customer, EDC, EGS, marketer, renewable resource, and transition or stranded costs. We have done so.
Basic Services--Enron suggests that the term be changed to Basic Service Charges. We have responded by slightly modifying the definition to substitute ''transition charges'' for ''transition services'' in an effort to eliminate any confusion regarding services and charges. Also, in view of Enron's concern about the distinction between basic and nonbasic services, we have changed the nonbasic services definition to indicate that they are optional services. The OCA recommends that we amend the definition to specify electric service and we have done so.
Customer Information--Several commentators, including the OCA and IRRC, suggest that the definition be broadened to include written information in addition to verbal and electronic communications, and we have done so. As to Enron's suggestion that this definition should refer only to information that is necessary to enable customers to make informed decisions, we disagree. While an important objective of section 2807(d)(2) and these regulations is to equip customers with the ability to make informed decisions, the overall purpose also includes the need to ensure that all information conveyed to customers is adequate and accurate. Therefore, we have not restricted the definition as requested by Enron.
Distribution Charges--As recommended by GPU and PEA, we have modified this definition to include the phrases ''over a distribution system'' and ''from the transmission system'' so as to more accurately describe these charges. Enron suggests that the reference to 52 Pa. Code § 56.15(4) be deleted. Upon review of this subsection, we conclude that the only inappropriate line item (on the bill) is ''energy or fuel adjustment charge.'' Appropriate items are State tax adjustment surcharge, State sales tax and State gross receipts tax. Therefore, we have amended the definition to reflect that the subsection applies, to the extent it is applicable. Additionally, since we currently view universal service as a component of distribution charges and note that this matter is the subject of a concurrent investigation, so we have also designated it ''as applicable.''
Electric Distribution Company (EDC)--Several commentators including IRRC, suggest that the acronym for electric distribution company be corrected from EDIC to EDC, and we have done so.
Electricity Providers--Several commentators note that section 2807(d)(2) is applicable to EDCs, electricity suppliers, marketers, aggregators and brokers. We agree that a level playing field should exist, and have also added third parties acting on behalf of these entities. Collectively, these parties are referred to as ''electricity providers,'' and we have added this term to this section to clarify the obligations of these entities as imposed by these regulations.
Electricity Supplier or Supplier--We adopt Enron's suggestion to change the defined term to Electricity Generation Supplier (EGS) or Supplier. Also, IRRC notes that the proposed definition contains an incorrect statutory cite, which we have now corrected.
Generation Charges--We agree with the comments of the OCA and IRRC indicating that this definition should not be linked to cost. Therefore, we have deleted the reference to cost.
Intangible Transition Charge (ITC)--GPU recommends that the definition of ITC match the definition of ITC in the act, and we have done so. We also agree with IRRC that the definition should note that the charges are authorized by the Commission, and we have made that change.
Non-Basic Services--We have added the word ''optional'' to describe these services. As discussed above, this change is necessary to clarify the distinction between Basic and Non-Basic Services.
Renewable Resource--The Environmentalists advocate a definition which is not consistent with the statutory definition. As proposed by the Environmentalists, hydro- power is defined as low ''impact'' rather than low ''head'' and relies on the American River's Criteria, and a generator size limit. Since we believe that this change would over-complicate the definition, we decline the suggestion. We have, however, adopted the Environmentalists' proposal to include biomass-based methane gas as a renewable resource. As suggested by IRRC, we have changed the text of the proposed definition to mirror the definition in the statute, except that we have added biomass-based methane gas to the list of technologies. Also, in an effort to be consistent with the statute, we have not deleted ''energy from waste'' as the Environmentalists suggest in their proposed definition.
Small Commercial--Most commentators, including IRRC, are strongly opposed to defining this term based upon the number of employes working for that customer, and suggest either replacing that criterion with an electric load limit or simply relying on the fact that a customer is served on a small commercial rate. NEMEC, GPU, PP&L and the PEA all indicate the reasonableness of this proposal, and we agree. Therefore, we have adopted the suggestion to use a maximum registered load limit of 25 kW within the last 12 months, in conjunction with a rate class reference, for this definition. Further, we have renamed this term ''small business customer'' in these final regulations to encompass both small commercial and small industrial consumers.
Terms of Service--In view of the OAG's suggestion that we consider Terms of Service as the equivalent of Consumer Contracts, we have deleted this definition and have incorporated this concept in the definition of ''Consumer Contract,'' as noted above.
Transition Charges--Although we have reviewed the recommendations of GPU and the PEA to include transition charges other than CTC and ITC in this definition, we have declined to make this revision. We have, however, accepted Enron's recommendation regarding use of the acronym ''EDC'' instead of ''electric utility.''
Section 54.3. Standards and pricing practices for retail electricity service.
We received numerous comments in response to this section, ranging from opposition to strong support for the proposals regarding the use and distribution of a Glossary and a Dictionary. In view of the mandate in § 2807(d)(2) that ''information shall be provided to consumers in a clear and understandable format that enables consumers to compare prices and services on a uniform basis,'' we conclude that all participants in the competitive industry need a common foundation in the terminology of the industry. Specifically, to provide consumers with a basis for accurate comparisons and clear communications, the industry should use consistent terminology and units of measure. Both the short Glossary of 16 terms called ''Common Electric Competition Terms'' and the more extensive ''Consumer's Dictionary for Electric Competition'' with 77 terms provide this consistent approach to customer information. Also, we note that we have revised many definitions of terms in the Glossary and Dictionary in accordance with the comments of PEA, the OCA and the Environmentalists.
The Glossary contains basic terms and definitions which will enable consumers to easily understand the new terminology that will be used when they are shopping for electric service. The more inclusive Dictionary is for use by those consumers who have an interest in a greater understanding of the electricity market. While we recognize that some flexibility is needed in a competitive market, we believe that the common use by all electricity providers of the terms and definitions in the Dictionary will enable consumers, EDCs and EGSs to communicate in a consistent manner.
In response to comments received from EDCs and IRRC, we have decided that it would be most cost effective for the EDCs to distribute the Glossary through their respective consumer education programs. Therefore, we have revised these regulations to eliminate the need for EDCs to include the Glossary as a bill insert.
IRRC recommends that § 54.3(2) be omitted and we agree. IRRC also suggests that § 54.3(3) be modified to delete the first sentence, which we have done. As to the second sentence in § 54.3(3), we have followed IRRC's recommendation to move it to another section, and we note that, with minor modifications, that material is now set forth in § 54.7.
Regarding § 54.3(4), IRRC suggests providing definitive standards with which electricity providers should comply in responding to customer inquiries and complaints. Since all electricity providers are responsible for complying with Chapter 56 regulations (See 66 Pa.C.S. § 2809(e)(f)), including the dispute procedures set forth in 52 Pa. Code §§ 56.2, 56.151 and 56.152, we have removed both § 54.3(4) and § 54.3(5) from the final regulations.
Section 54.4. Bill format--residential and small commercial customers.
To be consistent with our revision to the definitions section, we have changed the title of this section to ''Bill format for residential and small business customers.'' Also, we agree with IRRC that we should add a provision in this section requiring that prices billed must reflect marketed prices and the agreed upon prices in the disclosure statement. That requirement is now set forth in § 54.4(a).
IRRC also points out that the provider of last resort should be treated like an EGS in our billing requirements. We agree and have included that change in § 54.4(b). Generally, we note our intention to view a provider of last resort as an EGS for purposes of communicating with customers.
GPU asks that we amend this section to permit a customer to request and receive only a bill summary, while UGI cautions us about the costs to EDCs associated with requiring changes to bill formats. In establishing these regulations, we have tried to achieve the goal of providing adequate and accurate customer information without being overly prescriptive. The minimum requirements imposed by these regulations allow some degree of flexibility for billing entities while providing customers with essential information that should minimize customer confusion.
IRRC and Green Mountain comment that the requirement at § 54.4(b) might be interpreted as requiring an EGS to duplicate EDC charges on its bill. We agree with this concern and emphasize that an EGS is not required to duplicate EDC charges. We have added clarifying language to this section.
We received comments from IRRC, Representative Lloyd and several others about what specific charges should be required on the bills, as well as questioning the need to require that certain charges appear on the first page of the bill. In view of all of these comments, we believe that we must permit as much flexibility as possible. Therefore, we have revised the regulations so that they contain a list of the required billing items and billing sections without mandating that any certain information be included on the first page. Consistent with the comments of GPU and IRRC, we suggest that when issuing a single bill, EDCs should consider developing a summary page as the first page and then providing the required itemization of all charges later in the bill.
EDCs and EGSs have made it clear through comments, and we agree, that their charges should appear in separate sections of the bill. Therefore, we have revised this section to set forth that requirement.
Under a single bill option, basic charges will appear in both EDC and EGS sections of the bill. In view of both the termination process for nonpayment and the application of partial payments to the EDC and the EGS, we have required the distinction between basic and nonbasic charges in both the EDC and EGS portions of the customer bill where applicable.
Several comments were received regarding the standard pricing unit requirement at § 54.4(a). Most of the comments offer widespread support while others recommend changes or ask us for clarifications. We have clarified that the requirement for a standard pricing unit does not mean that all customers will be charged the same unit price. We do not intend to limit pricing options. We agree with the OCA, IRRC, PEA and PP&L that the requirement for a standard pricing unit for generation charges in the bill format section means that the price or pricing option will be presented in a standard pricing unit, such as in actual dollars or cents per kWh, in the customer bill.
We have required that Generation Charges be listed first among the basic charges in the appropriate EDC or EGS section of the bill with one notable exception. The Customer Charge may appear before Generation Charges.
The treatment of Transmission Charges was widely debated among the numerous commentators. We agree with the comments provided by the OAG, PEA, GPU, PP&L and UGI that section 2804(3) of the act clearly requires the unbundling of Transmission Charges. Therefore, we have required that Transmission Charges be unbundled on all customer bills, regardless of whether the customer is eligible for choice or not, and regardless of which billing option is applicable.
MAPSA states that the Commission should recognize that there is likely to be a substantial upgrading of metering technology which should be reflected in these rules if they are to remain robust. We have therefore required advanced metering charges to be itemized as a basic charge on the bill.
Conectiv urges the Commission not to restrict the messages that may be communicated on bills. We agree, and have not done so. We have required, however, that such messages are to be presented separately from the billing requirements. Also, we note that while we will not require the provider of a single bill to include messages for another entity outside the requisite billing requirements, such as information regarding the availability of an EGS's optional nonbasic services, we do expect the parties' cooperation in these matters. Further, we recognize the possibility that over time certain transitional issues might prompt the Commission to direct billing entities to include or change specific billing messages.
We accept the recommendation of the OCA and IRRC that monthly (rather than quarterly) disclosure of itemized nonbasic services is necessary to enable customers to be fully informed of the charges for the services they are receiving. Therefore, we have revised the regulations to incorporate this change.
PP&L is opposed to billing for EGS charges for nonbasic services for those customers who choose a single bill option. We do not expect EDCs to provide the itemized or unbundled listing of nonbasic charges on the bill without compensation.
EGSs oppose the requirement for them to show both the annual and the monthly average usage figure on the bill. They point out that the usage information will be in the domain of the entity reading the meter for billing purposes. We agree, and note the inapplicability of this requirement to EGSs. We also agree with PEA that these two usage figures should be presented in kWh as the standard pricing unit.
The requirement that the billing entity for generation must include a bill message informing customers of proposed changes in their terms of service or of an impending expiration of the terms of service is opposed by IRRC, PEA and the EDCs. We accept that the responsibility for providing these messages rests with the EGS. Also, while we agree that this notification is not a billing issue, we address the issue in detail later in this order.
We agree with IRRC that ''General Information'' should be a separate and distinct section to the bill and the billing entity's information should be listed first. We also agree with PP&L to remove ''For'' from the ''For General Information'' section title.
PEA and UGI state that it would be expensive and burdensome for the EDC to provide the proposed information about the EGS, including license number and an internet address. We agree and have revised this requirement to include only the name, address and telephone number of the EGS.
PP&L comments that the bill message indicating who sets prices for generation services is incorrect since some customers will not make a choice during the EDC's transition period. We agree and have modified this section to apply only to the bills of customers who have chosen to receive generation services from an EGS.
Several commentators note that the FERC, and not the Commission, regulates transmission prices and services. We agree and have revised this section accordingly. Specifically, we now require a third statement to be included in the bill message to clarify this point. In an effort to provide billing entities with more flexibility, we have noted that the three statements about how prices are established may be displayed together in paragraph form on the bill.
Conectiv argues that in the two-bill option we were inconsistent in our requirement at § 54.4(b)(17), by directing the EDC to provide only the name of the EGS. We disagree, since we believe that requiring the same or more comprehensive information about the EGS in two parts of the bill is excessive and unnecessary.
Several commentators state that we have not provided enough guidance on the treatment of the billing items required under 52 Pa. Code § 56.15, such as the customer charge, taxes, late payment charges, reconnection fee and security deposit. We believe these billing items are basic charges and have required that they be treated as such in their placement on the customer bill.
IRRC and other commentators raise questions about the appropriateness of including definitions of basic services and nonbasic services in the requirements of § 54.4. We agree that we do not need to provide definitions of these two terms in § 54.4. We also concur with IRRC that it is not necessary for the Commission to either name or define specific nonbasic services in these regulations.
We have required that only certain charges and terms be defined in the Bill Format section. Specifically, we have required definitions for only Generation Charges, Transmission Charges, Distribution Charges, Customer Charge/Basic Charge (Charge for Basic Service at § 56.1), Advanced Metering Charges and Transition Charges in accordance with the Commission's ''Common Electric Competition Terms.'' If an entity bills for one of these charges, they must define it.
We agree with Conectiv that the phrase ''when appropriate'' in § 54.4(c) is confusing. Thus, we have revised this section to state that the billing entity shall provide bills to the Commission upon request.
Section 54.5. Terms of Service for residential and small commercial customers.
Several commentators offer different suggestions for renaming this section, noting that it addresses when it is necessary and appropriate to require a written disclosure. We agree that the name of this section should reflect this purpose. Also, we note that to be consistent with the change to the definitions section, we should revise the name to incorporate small business, rather than small commercial, customers. Therefore, we have revised the title of this section to the following: ''Disclosure statement--residential and small business customers.''
We also agree with IRRC about the need for this section to include a requirement that the agreed upon prices in the disclosure statement reflect the marketed prices and the billed prices. Therefore, we have revised this section to incorporate that requirement.
As a general matter, IRRC and other commentators indicate that this section is overly prescriptive. While we agree that the Commission may not dictate the pricing in a competitive market, we believe that it is necessary for the regulations to require that actual prices be disclosed to consumers. Our experience during the implementation of pilots has shown that an offer for a percentage savings off the fully bundled rate caused a great deal of customer confusion. Some EGSs did not clearly indicate whether they were taking a percentage off just the generation charges of the EDC bill or a percentage off the total EDC bill. Since these two scenarios produce vastly different savings to the customer, we recognize the need to require that actual prices be provided in the disclosure statement.
IRRC also raises a concern about the need for plain language. We agree and note that all disclosure statements are subject to the Commission's plain language requirement. Additionally, in response to comments of IRRC, we have clarified that the regulations require disclosure statements to contain only those items that apply to a particular EGS's terms of service.
We agree with Spielvogel that EGSs should provide written disclosure statements at no charge to customers. Additionally, we accept the criticism and comments of the OAG, IRRC and others that § 54.5(a)(1) is inaccurate and confusing. We have, therefore, revised it to require the EGS to provide the disclosure statement when the customer requests that an EGS initiate service.
A number of commentators including IRRC raise questions about the relationship between the provider of last resort and an EDC and when a written disclosure of the terms of service is appropriate. We agree with IRRC and Representative Lloyd that the provider of last resort, whether it is the EDC or not, must give written disclosure of the terms of service whenever a customer receives service from them.
PP&L suggests that we add the phrase ''other sales promotions'' at § 54.5(c)(5) to accommodate what EGSs offered in the pilot program. We agree and have made that change.
We also agree with the OCA that customers will need information about advanced metering from EGSs who offer a generation pricing option requiring an advanced meter. In those cases, the EGS must disclose the advanced metering charge.
We received comments from IRRC and many others for clarification of § 54.5(g) regarding the difference between termination and cancellation. Although we have now deleted that particular section, we note that the term ''cancellation'' is used in § 54.5(c)(7), so that the requested clarification is still necessary. While termination of service follows the procedures established by Chapter 56 of the Commission's regulations, cancellations could occur for reasons other than for non-payment of bills and could often be initiated by customers.
A number of commentators question the rationale behind allowing automatic renewals for fixed term agreements to result in another fixed term agreement. We emphasize that we have not proposed that a customer's failure to act can result in the automatic renewal of another fixed term agreement. However, our regulations do allow for a renewal clause in a fixed term agreement, provided that the renewal occurs with proper customer notice and the new agreement is open-ended.
Enron comments that § 54.5(b)(10) improperly imposes an obligation on the EGS to notify customers when their provider of last resort changes. We agree and have revised the regulation, at § 54.5(h), to place this responsibility on the new provider of last resort.
PECO claims that the 3-day right of rescission is not necessary in view of other requirements. We believe three business days for a right of rescission is adequate and consistent with applicable consumer protections that the OAG points out at section 201-7 of the Unfair Trade Practices and Consumer Protection Law, 73 P. S. §§ 201.1--201-9.2. We also agree that the rescission period does not begin until the customer receives the written disclosure.
The OCA states we should inform the customer of acceptable methods to exercise the 3-day right of rescission. We agree. The acceptable means for exercising the right to cancel includes orally, in writing or electronically. We also agree with the OAG that there should be a prohibition against waivers of the right to a 3-day right of rescission. Both of these revisions have been incorporated in the regulations.
Conectiv comments that the complaint handling language appearing in this section is duplicative. We agree that this matter is fully addressed in these regulations at § 54.9, and therefore, we have deleted the complaint handling language from this section.
Most commentators, including the OAG and the OCA, support the regulations at § 54.5(e), relating to disclosure of energy sources, but ask for changes to improve clarity and verifiability. As a result of these comments, we have deleted § 54.5(e) and have moved these requirements to § 54.6.
As noted by some of the comments, the definitions section at § 54.5(f) needs to be consistent with the definitions in the bill format section. The EGS should define only Generation Charges, Transmission Charges (if applicable) and each nonbasic service that the customer has agreed to purchase. The definitions must appear in a distinctly separate section of the disclosure statement, as described in the revised § 54.5(e).
IRRC asks that we clarify our intent at § 54.5(i). Several commentators state that the responsibility to notify a customer of proposed changes in the terms of service or of an impending expiration of service rests with the EGS. Since we do not intend to shift the cost of the notices to the EDCs, we agree that the burden for the notices rests with the EGS. We have provided, however, at § 54.5(g) that the EGS should be permitted to include the messages in bills or in a separate mailing. Further, we note that if the customer has chosen a single-bill option, and the EDC is willing to provide the notice for the EGS, the EDC may charge the EGS a fee for providing notice on the bill.
Several comments suggest that we state ''last three bills'' in the notices at § 54.5(i). We agree and have made that revision at § 54.5(g).
Many commentators point out that § 54.5(i) needs to be revised to require an explanation of the customer's options. We agree that some clarification of these options, as now referenced in 54.5(g), is necessary. For that purpose, the following describes the possible outcomes for customers when they receive a notice for expiration of the consumer contract or for changes in the terms of service. When the notice is for an expiration of the contract, outcomes include:
* the customer continues to receive service with the current EGS under an open-ended agreement;
* the customer chooses another EGS; or
* the contract expires and the customer does not choose another EGS and receives service from the provider of last resort.
When the notice is for a change in the terms of service, outcomes include:
* the customer agrees to the new terms of service regardless of whether the agreement is fixed or open-ended; or
* the customer does not accept the changes to the terms of service. If the customer does not accept the new terms of service, the customer must choose another EGS or service will default to the provider of last resort.
Section 54.6. Energy use and efficiency information.
Many commentators express support for these regulations, but IRRC and the EDCs question the need for them. In view of the latter concerns, we have re-focused this section to address consumer requests for information about generation supply. To implement this change, we have determined that it is necessary to use the collective term ''electricity providers'' to refer to EDCs, electricity suppliers, brokers, marketers and aggregators and any third party acting on behalf of these entities. Additionally, to provide the requested clarification in distinguishing between customers and potential customers in the market, we refer to the term ''consumers'' to include both for this requirement. Also, we note that we have added definitions for electricity providers and consumers in these regulations.
Concerning generation supply, we accept the comments of IRRC and others that the need for requiring automatic disclosure of energy sources in the agreement may be overly prescriptive. We believe that disclosure would be useful to customers, however, when suppliers advertise their electricity as renewable and when customers request energy source information. Therefore, we have imposed an obligation on EGSs to respond to reasonable requests made by consumers for information concerning generation sources.
IRRC requests that we examine various options for verifying the accuracy of suppliers' claims and to explain what steps we will take to insure the accuracy of energy source information when it is provided. In response, we refer to the FTC ''Green Guides,'' our February 5, 1998 Memorandum of Understanding with the OAG, our authority to consider performance factor criteria in EDC rate cases, and our proposed licensing regulations at § 54.39(b).
Additionally, in response to comments by IRRC indicating the need to clarify these regulations, we have made several revisions. In particular, we have revised our regulations at § 54.6(b) to explain how the verification process will work. Also, we have imposed specific requirements at § 54.6(c) that are applicable to claims of EGSs that their generation has certain special characteristics. Further, we have made revisions to address the OAG's concerns about the marketing of ''green'' and ''environmentally friendly'' energy sources. In particular, at § 54.6(f), we have endorsed specific principles outlined by the FTC ''Green Guides'' relating to the use of general, unsubstantiated and unqualified claims of environmental benefits.
We find GPU's allegation to be unfounded concerning a competitive disadvantage to the EDC if renewables suppliers are not required to sell into the transmission grid. Electricity from renewable generation sources has been typically more costly to produce than from traditional energy sources because of capital costs. The proposed rules and regulations at §§ 54.121 and 54.122 concerning competitive safeguards are sufficient to address GPU's concerns.
In addition, we accept commentators' concerns about clarity in general concerning load profile as originally addressed in § 54.9(d) and we have relocated these requirements to § 54.6, with the exception of the privacy component. Most EDCs believe that the term load profile should be changed to ''historical billing data'' because that information is readily available for supply scheduling purposes and we agree. Spielvogel and IRRC recommend that we identify the data for this purpose, and we have done so at § 54.2.
IRRC asks that we explain the need for historical billing data by consumers. It is important that customers receive historical billing data to enable them to receive price and service offers. EDCs will provide EGSs with this information for scheduling transmission and supply services. Therefore, pricing and service options which are offered to customers are largely dependent upon their historical usage data, and customers need this data in order to shop. To enable residential and small business consumers to compare prices and services that are available in the competitive generation market, it is necessary to require EDCs to provide them with historical billing data.
Section 54.7. Supplier disclosure for pricing.
Although several commentators' support the concept of having this type of information available at the marketing stage, most commentators criticize the specific approach proposed by the regulations. In particular, IRRC and Enron note concerns over the availability to EGSs of all of the required information. We agree and have deleted this section. We note, however, that we have adopted the OAG's recommended approach for the disclosure of this information, by addressing it in the Marketing/Sales Activities section (which was previously set forth in § 54.8, but is now included in the new § 54.7).
Section 54.8. Marketing/sales activities.
As noted above, this subject is now addressed in § 54.7 of the final regulations. We agree with IRRC that a requirement should be added so advertised prices reflect the prices in the disclosure statement and the bill. We have included that requirement in § 54.7(a).
Comments submitted by the OCA and the OAG support a uniform price mechanism for comparison. We agree that generally, marketing information should enable consumers to compare prices on a uniform basis. Therefore, we have revised the regulations to require the inclusion of average unit price information in marketing materials that offer terms of services for acceptance by consumers. We believe that this requirement will ensure that customers receive the price information that they want and need in order to effectively shop for generation supply. Since radio and television advertisements are typically shorter and include less detail, we do not expect the same level of disclosure to be provided. While we agree with the OCA that it would be helpful for these advertisements to indicate how consumers can acquire more detailed information, we have not imposed this requirement due to the concern that it would unnecessarily increase the costs of the advertisements.
Commentators strongly oppose the submission of marketing plans as proposed by § 54.8(b). We accept that position and note that we do not intend to review or approve marketing plans. Further, we will not routinely request marketing materials. If, however, we are investigating some impropriety or if the information is necessary to resolve a complaint, we may request copies of certain advertising materials disseminated to consumers.
In accordance with the act, any confidential, proprietary or trade secret information that we collect during that process will not be disclosed to any person not directly employed or retained by the Commission without the consent of the party providing the information. Nevertheless, we note that under the act, we may disclose such information to the OCA and OSBA under an appropriate confidentiality agreement. Similarly, if a disclosure of the information is necessary to prevent or restrain a violation of Federal of State law, we are permitted to disclose it, after providing reasonable notice and opportunity to prevent or limit the disclosure. See 66 Pa.C.S. § 2811(c)(2) and (3). Moreover, as a general matter, when a provider designates certain materials as proprietary, we will follow our normal operating procedures to address any requests for the release of this information.
Section 2811(a) of the act provides the Commission with the authority to monitor the market for the supply and distribution of electricity to retail customers and to take steps as set forth in § 2811 to prevent anticompetitive or discriminatory conduct and the unlawful exercise of market power. Further, a Memorandum of Understanding executed on February 5, 1998 between the Pennsylvania Office of Attorney General and the Commission was developed to distinguish the roles of each agency when unfair or deceptive marketing practices, terms of service disputes, or other anticompetitive or discriminatory conduct is alleged.
Section 54.9. Privacy of customer information.
This subject is now addressed in § 54.8. In response to comments from IRRC, Representative Lloyd and others pointing out that § 54.9(a) was confusing, we have clarified this section.
Most commentators support customer control of information release. Spielvogel and Constellation believe that customer permission should be valid until revoked, so as not to require new customer permission for each EGS, and we agree.
Several comments note that customers should have as many options as possible for restricting the release of private information. We agree and have added ''electronically'' as another means which customers may utilize for this purpose. Further, our revisions to this section should facilitate communications between EGSs and customers.
Section 54.10. Complaint handling process.
This subject is now addressed in § 54.9. PP&L offers a revision to clarify our intent with respect to the situation in which a customer contacts the wrong entity to register a complaint. We accept PP&L's language and have so revised the regulations.
Conclusion
Accordingly, under 66 Pa.C.S. §§ 501, 504--506, 1301, 1501 and 2807, and the Commonwealth Documents Law, 45 P. S. §§ 1201, et. seq., and the regulations promulgated thereunder at 1 Pa. Code §§ 7.1--7.4, we adopt the final rulemaking order to establish regulations to ensure that consumers receive adequate and accurate customer information in a clear and understandable format that enables them to compare prices and services on a uniform basis, as set forth in Annex A; Therefore,
It is ordered that:
1. The regulations of the Commission, 52 Pa. Code Chapter 54 are amended by adding §§ 54.1--54.9 to read as set forth in Annex A.
2. The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to legality.
3. The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of the 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 deposit the original certified order and Annex A with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
6. A copy of this order and Annex A shall be served upon all persons who submitted comments in this rulemaking proceeding.
7. The regulations adopted with this order are effective upon publication in the Pennsylvania Bulletin.
8. Electricity providers are directed to adhere to the Commission's Policy Statement on Plain Language Guidelines in § 69.251 in all written communications with consumers.
9. For purposes of the applicability of provisions of this final order, providers of last resort are viewed as electric generation suppliers.
10. This final order regarding customer information regulations supersedes the previous orders, but still has effect as interim guidelines. Consequently, each EGS shall bring its consumer contracts into compliance with this order and submit the updated contracts to the Commission by September 8, 1998, for review and approval.
JAMES J. MCNULTY,
Secretary(Editor's Note: The proposal to add § 54.10, included in the proposed rulemaking at 28 Pa.B. 501, has been withdrawn by the Commission.)
(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).)
Fiscal Note: Fiscal Note 57-187 remains valid for the final adoption of the subject regulation.
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 54. ELECTRICITY GENERATION CUSTOMER CHOICE
Subchapter A. CUSTOMER INFORMATION Sec.
54.1. Purpose. 54.2. Definitions. 54.3. Standards and pricing practices for retail electricity service. 54.4. Bill format for residential and small business customers. 54.5. Disclosure statement for residential and small businesscustomers. 54.6. Request for information about generation supply. 54.7. Marketing/sales activities. 54.8. Privacy of customer information. 54.9. Complaint handling process. § 54.1. Purpose.
(a) The purpose of this subchapter is to require that electricity providers enable customers to make informed choices regarding the purchase of electricity services offered by providing adequate and accurate customer information. Information shall be provided to customers in an understandable format that enables customers to compare prices and services on a uniform basis.
(b) As to the scope of this subchapter, this section and §§ 54.2--54.3 apply to all customers, including large commercial and industrial customers. Sections 54.4--54.9 apply only to residential and small business customers, as the term is defined in § 54.2 (relating to definitions).
§ 54.2. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Aggregator or market aggregator--An entity, licensed by the Commission, that purchases electric energy and takes title to electric energy as an intermediary for sale to retail customers.
Basic services--Services necessary for the physical delivery of electricity service, including generation, transmission and distribution. Transition charges, although temporary in scope, are basic service charges (See the definition of transition charges in this section).
Broker or marketer--An entity, licensed by the Commission, that acts as an agent or intermediary in the sale and purchase of electric energy but does not take title to electric energy.
CTC--Competitive Transition Charge--A nonbypassable charge applied to the bill of every customer accessing the transmission or distribution network which (charge) is designed to recover an electric utility's transition or stranded costs as determined by the Commission in sections 2804 and 2808 of the code (relating to standards for restructuring of electric industry; and competitive transition charge).
Code--The Public Utility Code, 66 Pa.C.S. §§ 101--3316.
Consumer--A retail electric customer or potential customer of retail electricity service.
Consumer contract--The written disclosure statement of the terms of service between a customer and an EGS which satisfies the definition of consumer contract in section 3 of the Plain Language Consumer Contract Act (73 P. S. § 2203).
Customer--A retail electric customer.
Customer information--Written, oral or electronic communications used by electricity providers to communicate to consumers prices and terms of service.
Distribution charges--Basic service charges for delivering electricity over a distribution system to the home or business from the transmission system. These charges include basic service under § 56.15(4) (relating to billing information) and universal service, as applicable.
EDC--Electric Distribution Company--The public utility providing facilities for the jurisdictional transmission and distribution of electricity to retail customers, except building or facility owners or operators that manage the internal distribution system serving the building or facility and that supply electric power and other related electric power services to occupants of the building or facility.
EGS--Electric Generation Supplier or Supplier--
(i) A person or corporation, including a municipal corporation, which provides service outside its 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.) This includes brokers and marketers, aggregators or other entities that sell to end-use customers electricity or related services utilizing the jurisdictional transmission or distribution facilities of an electric distribution company.
(ii) The term excludes building or facility owner/operators that manage the internal distribution system for the building or facility and that supply electric power and other related power services to occupants of the building or facility.
(iii) The term also excludes electric cooperative corporations except as provided in 15 Pa.C.S. Chapter 74 (relating to generation choice for customers of electric cooperatives).
Electricity providers--The term refers collectively to the EDC, EGS, electricity supplier, marketer, aggregator or broker, as well as any third party acting on behalf of these entities.
Generation charges--Basic service charges for generation supply to retail customers. This excludes charges for transmission or other charges related to electric service.
Historical billing data--The minimum of 13 months of data as recorded by the EDC, which contains dollar amount billed. This data is kWh consumption on-peak and off-peak or at some other prescribed interval of consumption and associated cost and, if applicable, at demand levels at the intervals recorded and associated costs of those demand levels.
ITC--Intangible Transition Charge--Charges authorized by the Commission to be imposed on all customer bills and collected, through a nonbypassable mechanism by the electric utility or its successor or by any other entity which provides electric service to a person that was a customer of an electric utility located within the certificated territory of the electric utility on January 1, 1997, or that, after January 1, 1997, became a customer of electric services within the territory and is still located within the territory, to recover qualified transition expenses pursuant to a qualified rate order, in a manner that does not shift interclass or intraclass costs and maintains consistency with the allocation methodology for utility production plant accepted by the Commission in the electric utility's most recent base rate proceeding.
Marketer or Broker--An entity, licensed by the Commission, that acts as an agent or intermediary in the sale and purchase of electric energy and does not take title to the electric energy.
Nonbasic services--Optional recurring services which are distinctly separate and clearly not required for the physical delivery of electric service.
Renewable resource--The term includes technologies such as solar photovoltaic energy, solar thermal energy, wind power, low-head hydropower, geothermal energy, landfill or other biomass-based methane gas, mine-based methane gas, energy from waste and sustainable biomass energy.
Small business customer--The term refers to a person, sole proprietorship, partnership, corporation, association or other business entity that receives electric service under a small commercial, small industrial or small business rate classification, and whose maximum registered peak load was less than 25 kW within the last 12 months.
Transition charges--Basic service charges for costs defined as transition or stranded costs, comprised of a CTC and an ITC, designed to recover an EDC's transition or stranded costs as authorized by the Commission.
Transition or stranded costs--An electric utility's known and measurable net electric generation-related costs, determined on a net present value basis over the life of the asset or liability as part of its restructuring plan, which traditionally would be recoverable under a regulated environment but which may not be recoverable in a competitive electric generation market and which the Commission determines will remain following mitigation by the electric utility. The term includes those items enumerated in the definition of ''transition or stranded costs,'' in section 2803 of the code (relating to definitions).
Transmission charges--Basic service charges for the cost of transporting electricity over high voltage wires from the generator to the distribution system of an EDC.
§ 54.3 Standards and pricing practices for retail electricity service.
In furnishing retail electricity service, EDCs and EGSs or any entity that otherwise provides retail electricity service information to customers, shall comply with the following:
(1) Use common and consistent terminology in customer communications, including marketing, billing and disclosure statements.
(i) Use the term EDC as described in § 54.2 (relating to definitions) as a standard term.
(ii) Use the terms as defined in the Commission's ''Consumer's Dictionary for Electric Competition'' (Dictionary), maintained on file in the Commission's Office of Communications. EDCs shall provide this dictionary upon customer request. The ''Common Electric Competition Terms'' as described in subparagraph (iii) shall indicate the phone number and address to request the dictionary.
(iii) EDCs shall distribute the ''Common Electric Competition Terms,'' as part of its consumer education program.
§ 54.4. Bill format for residential and small business customers.
(a) EGS prices billed shall reflect the marketed prices and the agreed upon prices in the disclosure statement.
(b) The following requirements apply only to the extent to which an entity has responsibility for billing customers, to the extent that the charges are applicable. The provider of last resort will be considered to be an EGS for the purposes of this section. Duplication of billing for the same or identical charges by both the EDC and EGS is not permitted.
(1) EDC charges shall appear separately from EGS charges.
(2) Charges for basic services shall appear before charges for nonbasic services, and appear distinctly separate.
(3) Customer bills shall contain the following charges, if these charges are applicable, and these charges shall appear in a distinct section of the bill. The designation or label of each charge as either a basic charge or nonbasic charge appears in parenthesis following the name of the charge. This label of either basic or nonbasic is not required to accompany the name of the charge on the bill.
(i) Generation charges (basic).
(A) Generation charges shall be presented in a standard pricing unit for electricity in actual dollars or cents per kWh, actual average dollars or cents per kWh, kW or other Commission-approved standard pricing unit.
(B) Generation charges shall appear first among the basic charges with one exception. EDCs may place the customer charge first among the basic charges.
(ii) Transmission charges (basic).
(iii) Distribution charges (basic).
(iv) Customer charge or basic charge (charge for basic service in § 56.15 (relating to billing information)) (basic).
(v) Advanced metering charges (basic).
(vi) Transition charges (basic).
(vii) Taxes (Shall comply with § 56.15) (basic).
(viii) Late payment charges (basic).
(ix) Security deposit (basic).
(x) Reconnection fee (basic).
(xi) Itemization of nonbasic charges (nonbasic).
(xii) Overall billing total.
(4) The entity reading the meter for billing purposes shall provide the following electricity use data figures:
(i) The total annual electricity use for the past 12 months in kWh, including the current billing cycle. This is a single cumulative number.
(ii) The average monthly electricity use for the past 12 months in kWh, including the current billing cycle. This is a single cumulative number.
(5) The requirements of § 56.15 shall be incorporated in customer bills to the extent that they apply.
(6) Definitions for the following charges and terms are required in a customer's bill, if they appear as billing items, as contained in ''Common Electric Competition Terms'' and shall be in a distinctly separate section of the bill:
(i) Generation charges.
(ii) Transmission charges.
(iii) Distribution charges.
(iv) Customer charge/basic charge (Charge for basic service in § 56.15).
(v) Advanced metering, if applicable.
(vi) Transition charges.
(7) ''General Information'' is the required title for customer contact information in a customer's bill.
(i) The name, address and telephone number for the EGS and EDC shall be included.
(ii) Both EDC and EGS information in subparagraph (i) is required on all customer bills with the billing entity's information first.
(8) When a customer chooses the option to receive a separate bill for generation supply, the EDC shall include in a customer's bill the following information where the EGS charges would normally appear:
(i) The EGS's name.
(ii) A statement that the customer's EGS is responsible for the billing of EGS charges.
(9) When a customer chooses the option to receive a single bill from the EDC, the EDC shall include in the customer's bill the name of the EGS where the EGS charges appear.
(10) For customers who have chosen electric generation services from a competitive supplier, the customer's bill shall include the following statements which may appear together in a paragraph:
(i) ''Generation prices and charges are set by the electric generation supplier you have chosen.''
(ii) ''The Public Utility Commission regulates distribution prices and services.''
(iii) ''The Federal Energy Regulatory Commission regulates transmission prices and services.''
(c) The billing entity shall provide samples of customer bills to the Commission for review.
§ 54.5. Disclosure statement for residential and small business customers.
(a) The agreed upon prices in the disclosure statement shall reflect the marketed prices and the billed prices.
(b) The EGS shall provide the customer written disclosure of the terms of service at no charge whenever:
(1) The customer requests that an EGS initiate service.
(2) The EGS proposes to change the terms of service.
(3) Service commences from a provider of last resort.
(c) The contract's terms of service shall be disclosed, including the following terms and conditions, if applicable:
(1) Generation charges shall be disclosed according to the actual prices.
(2) The variable pricing statement, if applicable, shall include:
(i) Conditions of variability (state on what basis prices will vary).
(ii) Limits on price variability.
(3) An itemization of basic and nonbasic charges distinctly separate and clearly labeled.
(4) The length of the agreement, which includes:
(i) The starting date.
(ii) The expiration date, if applicable.
(5) An explanation of sign-up bonuses, add-ons, limited time offers, other sales promotions and exclusions, if applicable.
(6) An explanation of prices, terms and conditions for special services, including advanced metering deployment, if applicable.
(7) The cancellation provisions, if applicable.
(8) The renewal provisions, if applicable.
(9) The name and telephone number of the provider of last resort.
(10) An explanation of penalties, fees or exceptions, printed in type size larger than the type size appearing in the terms of service.
(11) Customer contact information that includes the name of the EDC and EGS, and the EGS's address, telephone number, Commission license number and Internet address, if available. The EGS's information shall appear first and be prominent.
(12) A statement that directs a customer to the Commission if the customer is not satisfied after discussing the terms of service with the EGS.
(13) The name and telephone number for universal service program information.
(d) Customers shall be provided a 3-day right of rescision period following receipt of the disclosure statement.
(1) The 3-day right of rescission is 3 business days.
(2) The 3-day right of rescission begins when the customer receives the written disclosure.
(3) The customer may cancel in writing, orally or electronically, if available.
(4) Waivers of the 3-day right of rescision are not permitted.
(e) Definitions for generation charges and transmission charges, if applicable, are required and shall be defined in accordance with the ''Common Electric Competition Terms.'' Definitions for each of the nonbasic services, if applicable, are required. The definition section of the bill shall be distinctly separate.
(f) The EGS shall include in the customer's disclosure statement the following statements which may appear together in a paragraph:
(1) ''Generation prices and charges are set by the electric generation supplier you have chosen.''
(2) ''The Public Utility Commission regulates distribution prices and services.''
(3) ''The Federal Energy Regulatory Commission regulates transmission prices and services.''
(g) Disclosure statements shall include the following customer notification:
(1) ''If you have a fixed term agreement with us and it is approaching the expiration date or whenever we propose to change our terms of service in any type of agreement, you will receive written notification from us in each of our last three bills for supply charges or in corresponding separate mailings that precede either the expiration date or the effective date of the proposed changes. We will explain your options to you in these three advance notifications.''
(h) If the provider of last resort changes, the new provider of last resort shall notify customers of that change, and shall provide customers with their name, address, telephone number and Internet address, if available.
§ 54.6. Request for information about generation supply.
(a) EGSs shall respond to reasonable requests made by consumers for information concerning generation energy sources.
(1) EGSs shall respond by informing consumers that this information is included in the annual licensing report and that this report exists at the Commission. Providers shall explain that the report is available to them and shall offer to provide it, if requested.
(2) The provider of last resort shall file at the Commission the annual licensing report as required by the Commission's licensing regulations in this chapter and otherwise comply with paragraph (1).
(3) EGSs operating for less than 1 year may respond to customer inquiries about generation energy sources by furnishing the information as described in subsection (b).
(b) Verification of the anticipated generation energy source, of the identifiable resources (if and when they have been ''claimed'') and the fact that energy characteristics were not sold more than once, shall be conducted by an independent auditor at the end of each calendar year and contained in the annual report to the Commission, relating to information disclosure requirements in subsection (a) and the licensing regulations in this chapter.
(c) Whenever EGSs market their generation as having special characteristics, such as ''produced in Pennsylvania'' or ''environmentally friendly'' and the like, providers shall have available information to substantiate their claims.
(1) Disclosure of generation energy sources shall be identifiable, which is defined as electricity transactions which are traceable to specific generation sources by any auditable contract trail or equivalent, such as a tradable commodity system, that provides verification that the electricity source claimed has been sold only once to a retail customer. If generation energy sources are not identifiable, the provider shall disclose this fact.
(d) Electricity providers, whether they make distinguishing claims or not, shall include in their general communications with consumers that electricity is the product of a mix of generation energy sources, that is delivered over a system of wires.
(e) Electricity providers shall respond to reasonable consumer requests for energy efficiency information, by indicating that these materials are available upon request from the Commission or the EDC.
(f) The use of general, unsubstantiated and unqualified claims of environmental benefits, such as ''green'' and ''environmentally friendly,'' is prohibited. The Commission supports the application of the Federal Trade Commission's (FTC) Guides for the Use of Environmental Marketing Claims (see 16 CFR §§ 260.1--260.8 (relating to guides for the use of environmental marketing claims)), in the enforcement of this section and the following specific principles:
(1) Section 260.6(a) (relating to general principles) which states that qualifications or disclosure should be clear, prominent, and of relative type size and proximity to the claim being qualified. In addition, contrary assertions which undercut the qualifications should not appear.
(2) Section 260.6(c) which states that environmental claims should not overstate the environmental attribute or benefit, expressly or by implication.
(3) Section 260.6(d) which suggests that marketing materials which make comparative claims should clearly state the basis for the comparison, be able to be substantiated, and be accurate at the time they are made.
(4) Section 260.7(a) (relating to environmental marketing claims) which labels unqualified claims of environmental benefit as deceptive.
(5) Section 260.7(f) which addresses claims regarding source reduction, such as reduced toxicity or reductions of other environmentally negative effects.
(g) Residential and small business customers are entitled to receive at no charge and at least once a year, historical billing data from whomever reads the meter for billing purposes.
(1) The EDC is only obligated to provide information that is readily available in its billing system.
(2) The historical billing data shall be conveyed in terms of kWh, and kW, as applicable, and associated charges for the current billing period and for the year preceding the current billing period.
(3) The historical billing data will be updated with each billing cycle.
(h) Electricity providers shall notify consumers either in advertising materials, disclosure statements or bills that information on generation energy sources, energy efficiency, environmental impacts or historical billing data is available upon request.
§ 54.7. Marketing/sales activities.
(a) Advertised prices shall reflect prices in disclosure statements and billed prices.
(b) Marketing materials that offer terms of service for acceptance by consumers shall include prices, as follows:
(1) If using a fixed price, the EGS shall show in a table the price per kWh for an average customer using 500, 1,000 or 2,000 kWh of electricity.
(2) If using a variable price mechanism, the EGS shall factor in all costs associated with the rate charged to the customer, and show the average price per kWh for usages of 500, 1,000 and 2,000 kWh of electricity in a table format.
(3) The EGS shall note the effective date of the prices shown in the table provided under paragraph (1) or (2).
(c) Advertising materials targeted for residential and small business sales shall be made available upon request of the Commission in the event of a formal or informal complaint or investigation.
§ 54.8. Privacy of customer information.
(a) An EDC or EGS may not release private customer information to a third party unless the customer has been notified of the intent and has been given a convenient method of notifying the entity of the customer's desire to restrict the release of the private information. Specifically, a customer may restrict the release of either the following:
(1) The customer's telephone number.
(2) The customer's historical billing data.
(b) Customers shall be permitted to restrict information as specified in subsection (a) by returning a signed form, orally or electronically.
(c) Nothing in this section prohibits the EGS and EDC from performing their mandatory obligations to provide electricity service as specified in the disclosure statement and in the code.
§ 54.9. Complaint handling process.
EDCs and EGSs shall disclose to consumers the following with respect to the rights of consumers in the handling and resolution of complaints:
(1) Residential and small business customers shall directly contact the party responsible for the service in question as an initial step for complaint and problem resolution. If the customer mistakenly contacts the wrong entity, the customer shall be promptly referred to the appropriate contact. In the event of a power outage, the customer shall be directed to the EDC.
(2) Complaints that pertain to Chapter 56 (relating to standards and billing practices for residential utility service) matters shall be handled and resolved in accordance with the applicable standards in Chapter 56.
(3) EDCs and EGSs shall give the Commission access to disclosure statements, billing and other customer information resources for compliance reviews as deemed necessary by the Commission. When complaints arise and are brought before the Commission for resolution, the obligation of the EGS shall be extended to the provision of pricing information.
[Pa.B. Doc. No. 98-1272. Filed for public inspection August 7, 1998, 9:00 a.m.]
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