PROPOSED RULEMAKING
[52 PA. CODE CH. 62]
[30 Pa.B. 897] [L-00000146]
Reporting Requirements for Universal Service and Energy Conservation Programs The Pennsylvania Public Utility Commission (Commission) on January 12, 2000, adopted a proposed rulemaking order establishing standard reporting requirements for universal service and energy conservation programs for natural gas distribution companies (NGDCs). The contact persons are Janice K. Hummel, Bureau of Consumer Services (technical), (717) 783-9088, and Kathryn G. Sophy, Law Bureau (legal) (717) 772-8839.
Accordingly, under section 501 of the Public Utility Code (relating to general powers), and the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1201 et seq.) and regulations promulgated thereunder in 1 Pa. Code §§ 7.1--7.4, we propose to amend our regulations by adding §§ 62.1--62.8 to read as set forth in Annex A; Therefore,
Executive Summary
On June 22, 1999, Governor Tom Ridge signed into law 66 Pa.C.S. Chapter 22 (relating to Natural Gas Choice and Competition Act) (act). The act revised the Public Utility Code, 66 Pa.C.S. § 101 et seq., by, inter alia, adding Chapter 22, relating to restructuring of the natural gas utility industry. The act is clear that NGDCs are to continue, at a minimum, the protections, policies and services that now assist customers who are low-income to afford natural gas service. Section 2203(8) of the act (relating to standards for restructuring of natural gas utility industry) requires the Commission to ensure that universal service and energy conservation policies, activities and services are appropriately funded and available in each natural gas distribution service territory.
The purpose of this rulemaking is to establish standard reporting requirements for universal service and energy conservation programs. The data collected as a result of the reporting requirements will assist the Commission in ensuring that universal service and energy conservation programs are appropriately funded and available in each NGDC's service territory. The reporting requirements will also ensure that the data is reported uniformly and consistently.
The regulations establish that the NGDCs will report the following information to the Commission: 1) annual reports on residential low-income collections and universal service and energy conservation programs; 2) plans every 3 years for universal service and energy conservation programs; and 3) every 6 years an independent third-party evaluation that measures the degree to which an NGDC's universal service and energy conservation programs are working to provide affordable utility service at reasonable rates.
Commissioners Present: John M. Quain, Chairperson; Robert K. Bloom, Vice-Chairperson; Nora Mead Brownell; Aaron Wilson, Jr.; and Terrance J. Fitzpatrick
Public Meeting held
January 12, 2000
Proposed Rulemaking Order By the Commission:
On June 22, 1999, Governor Tom Ridge signed into law the act. The act revised the Public Utility Code, 66 Pa.C.S. § 101 et seq., by inter alia, adding Chapter 22, relating to restructuring of the natural gas utility industry. The Commission is the agency charged with implementing the act.
The act is clear that NGDCs are to continue, at a minimum, the protections, policies and services that now assist customers who are low-income to afford natural gas service. Section 2203(8) of the act requires the Commission to ensure that universal service and energy conservation policies, activities and services are appropriately funded and available in each natural gas distribution service territory.
The purpose of this proposed rulemaking is to establish standard reporting requirements for universal service and energy conservation programs. The data collected as a result of the reporting requirements will assist the Commission in monitoring the progress of the NGDCs in achieving universal service in their service territories. The reporting requirements will also ensure that the data is reported uniformly and consistently. The proposed reporting requirements are set forth in Annex A.
Information from NGDCs about universal service programs and low-income customers is more critical now so the Commission can determine if universal service and energy conservation programs comply with the act. The act requires that programs be appropriately funded and available to low-income customers. The Commission is not insensitive to the problems that NGDCs will encounter in gathering and reporting the data required as a result of these proposed regulations. The NGDCs currently provide much of the program related data we are requesting in these proposed regulations. However, NGDCs report the data at various times throughout the year in different reports. These proposed regulations will establish a uniform and standard reporting format and time schedule. The reporting requirements of these proposed regulations will replace certain program related reports, such as hardship fund and CARES reports, that the NGDCs provide to the Commission.
These proposed regulations introduce new collection reporting requirements that identify costs specifically associated with low-income customers. The Commission acknowledges that the NGDCs will need time to make programming changes to collect this data. Therefore, the Commission proposes that each NGDC should be able to report complete data to the Commission no later than April 1, 2003. For the purposes of low-income collections reporting the Commission requests information on confirmed low-income groups, confirmed low-income accounts are those accounts where the NGDC has obtained information that would reasonably place the customer in a low-income designation. Examples of this information are receipt of Low-Income Home Energy Assistance Program (LIHEAP) grants, income source noted as TANF or General Assistance on an application for service; or the customer's self-report of income in conjunction with establishing a payment arrangement or application for a utility low-income program.
We are also interested in comments regarding the reporting format for the NGDCs. We believe that all reporting should be uniform and by electronic submission and would appreciate comments in this regard.
The Commission reserves the right to waive the requirements of these proposed regulations upon petition by an affected party under § 5.43 (relating to petitions for issuance, amendment, waiver or repeal of regulations).
It Is Ordered That:
1. A Rulemaking Docket shall be opened to consider regulations set forth in Annex A.
2. The Secretary shall submit a copy of this order and Annex A to the Office of Attorney General for review as to form and legality.
3. The Secretary shall submit a copy of this order and Annex A to the Governor's Budget Office for review of fiscal impact.
4. The Secretary shall submit this order and Annex A for review by the designated standing committees of both Houses of the General Assembly, and for formal review and comments by the Independent Regulatory Review Commission.
5. The Secretary shall 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 final proposed rulemaking order and any accompanying statements of the Commissioners be served upon all jurisdictional natural gas companies, the Office of Consumer Advocate, the Office of Small Business Advocate and the Natural Gas Competition Legislative Stakeholders.
7. Within 45 days of this order's publication in the Pennsylvania Bulletin, an original and 15 copies of any comments concerning this order and Annex A should be submitted to the Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265.
By the Commission
JAMES J. MCNULTY,
SecretaryFiscal Note: 57-212. No fiscal impact; (8) recommends adoption.
APPENDIX Universal service and Energy Conservation Programs
Due Date
NGDC Plan Evaluation Columbia 6/1/2002 8/1/2004 Peoples 6/1/2002 8/1/2004 PECO 2/28/2003 10/31/2008 Equitable 6/1/2003 8/1/2005 PG Energy 6/1/2003 8/1/2005 UGI 6/1/2004 8/1/2006 NFG 6/1/2004 8/1/2006
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PENNSYLVANIA PUBLIC UTILITY COMMISSION
Subpart C. FIXED UTILITIES
CHAPTER 62. NATURAL GAS SUPPLY CUSTOMER CHOICE
Subchapter A. UNIVERSAL SERVICE AND ENERGY CONSERVATION REPORTING REQUIREMENTS Sec.
62.1. Statement of purpose and policy. 62.2. Definitions. 62.3. Universal service and energy conservation program goals. 62.4. Universal service and energy conservation plans. 62.5. Annual residential collection and universal service and energy conservation program reporting requirements. 62.6. Evaluation reporting requirements. 62.7. NGDCs with less than 100,000 residential accounts. 62.8. Public information. § 62.1. Statement of purpose and policy.
The requirements of 66 Pa.C.S. § 2203(8) (relating to standards for restructuring of natural gas utility industry) mandate that the Commission ensure universal service and energy conservation policies, activities and services for residential natural gas customers are appropriately funded and available in each NGDC territory. This subchapter requires covered NGDCs to establish uniform reporting requirements for universal service and energy conservation policies, programs and protections and to report this information to the Commission.
§ 62.2. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
CAP--Customer Assistance Program--An alternative collection method that provides payment assistance to low-income, payment troubled utility customers. CAP participants agree to make regular monthly payments that may be for an amount that is less than the current bill in exchange for continued provision of natural gas utility services.
CAP benefits--The average CAP bill, average CAP credits and average arrearage forgiveness.
CARES--A program that provides a cost-effective service that helps selected, payment-troubled customers maximize their ability to pay utility bills. A CARES program provides a casework approach to help customers secure energy assistance funds and other needed services.
CARES benefits--The number and kinds of referrals to CARES.
Classification of accounts--Accounts are classified by the following categories: all residential accounts and confirmed low-income residential accounts.
Collection operating expenses--Expenses directly associated with collection of payments due for residential accounts.
Confirmed low-income residential account--Accounts where the NGDC has obtained information that would reasonably place the customer in a low-income designation.
Direct dollars--Dollars which are applied to a CARES customer's natural gas utility account, including all sources of energy assistance applied to utility bills such as LIHEAP, hardship fund grants and local agencies' grants.
Energy assistance benefits--The total number and dollar amount of LIHEAP grants, hardship grants and local agencies' grants.
Hardship fund--A fund that provides cash assistance to utility customers to help them pay their utility bills.
Hardship fund benefits--The total number and dollar amount of cash benefits or bill credits.
Impact evaluation--An evaluation that focuses on the degree to which a program achieves the continuation of utility service to program participants at a reasonable cost level and otherwise meets program goals.
LIURP--Low-income Usage Reduction Program--An energy usage reduction program that helps low-income customers to conserve energy and reduce residential energy bills.
Low-income customer--A residential utility customer whose household income is at or below 150% of the Federal poverty guidelines.
NGDC--Natural gas distribution company--The public utility providing facilities and related services for the jurisdictional distribution of natural gas to retail customers.
Outreach referral contacts--The address and telephone number that a customer would call or write to apply for the hardship fund. Contact information should be specific to each county in the NGDC's service territory, if applicable.
Payment rate--The total number of full monthly payments received from CAP participants in a given period divided by the total number of monthly bills issued to CAP participants.
Payment troubled--A household that has failed to maintain one or more payment arrangements in a 1-year period.
Residential account in arrears--A residential account that is at least 30 days overdue. This classification includes all customer accounts which have payment arrangements.
Successful payment arrangements--A payment arrangement in which the agreed upon number of payments have been made in full in the preceding 12 months.
Universal service and energy conservation--Policies, practices and services that help residential low-income retail gas customers and other residential retail gas customers experiencing temporary emergencies, as defined by the Commission, to maintain natural gas supply and distribution services. The term includes retail gas customer assistance programs, termination of service protections and consumer protection policies and services that help residential low-income customers and other residential customers experiencing temporary emergencies to reduce or manage energy consumption in a cost-effective manner, such as the low-income usage reduction programs and consumer education.
§ 62.3. Universal service and energy conservation program goals.
(a) The Commission will determine if the NGDC meets the goals of universal service and energy conservation programs.
(b) The general goals of universal service and energy conservation programs include the following:
(1) To protect consumers' health and safety by helping low-income customers maintain natural gas service.
(2) To provide for affordable natural gas service by making available payment assistance to low-income customers.
(3) To help low-income customers conserve energy and reduce residential utility bills.
(4) To ensure universal service and energy conservation programs are operated in a cost-effective and efficient manner.
§ 62.4. Universal service and energy conservation plans.
(a) Plan submission.
(1) Each NGDC shall submit to the Commission for approval an updated universal service and energy conservation plan every 3 years beginning February 28, 2001, on a staggered schedule.
(2) The plan should cover the next 3-calendar years.
(3) The plan should state how it differs from the previously approved plan.
(4) The plan should include revisions based on analysis of program experiences and evaluations.
(5) If the Commission rejects the plan, the NGDC shall submit a revised plan pursuant to the order rejecting or directing modification of the plan as previously filed. If the order rejecting the plan does not state a timeline, the NGDC shall file its revised plan within 45 days of the entry of the order.
(6) The Commission will act on the plans within 90 days of the NGDC filing date.
(b) Plan contents. The components of universal service and energy conservation may include the following: CAP, LIURP, CARES, Hardship Funds and other programs, policies and protections. For each component of universal service and energy conservation, the plan shall include the following:
(1) The program description.
(2) The eligibility criteria.
(3) The projected needs assessment.
(4) The projected enrollment levels.
(5) The program budget.
(6) The plans to use community-based organizations.
(7) The organizational structure of staff responsible for universal service programs.
(8) An explanation of any differences between the NGDC's approved plan and the implementation of that plan. The NGDC should include a plan to address those differences.
§ 62.5. Annual residential collection and universal service and energy conservation program reporting requirements.
(a) Each NGDC shall report annually to the Commission on the degree to which universal service and energy conservation programs within its service territory are available and appropriately funded. Annual NGDC reports shall contain information on programs and collections for the prior calendar year. Unless otherwise stated, the report shall be due April 1 each year, beginning April 1, 2003. When noted, the data shall be reported by classification of accounts. Each NGDC's report shall contain the following information:
(1) Collection reporting. Collection reporting shall be categorized as follows:
(i) The total number of payment arrangements and the total number of successful payment arrangements. To ensure that successful payment arrangements are not overstated, NGDCs should report on the calendar year prior to the reporting year.
(ii) Annual collection operating expenses by classification of accounts. Collection operating expenses include administrative expenses associated with termination activity, negotiating payment arrangements, budget counseling, investigation and resolving informal and formal complaints associated with payment arrangements, securing and maintaining deposits, tracking delinquent accounts, collection agencies' expenses, litigation expenses other than Commission related, dunning expenses and winter survey expenses.
(iii) The total dollar amount of the gross residential write-offs and total dollar amount of the net residential write-offs, by classification of accounts.
(iv) The total number of residential customers by month for the 12 months covered by the report, by classification of accounts.
(v) The total number of residential revenues by month for the 12 months covered by the report, by classification of accounts.
(vi) The total number of residential accounts in arrears and on payment agreements by month for the 12 months covered by the report, by classification of accounts.
(vii) The total number of residential accounts in arrears and not on payment agreements by month for the 12 months covered by the report, by classification of accounts.
(viii) The total dollar amount of residential accounts in arrears and on payment agreements by month for the 12 months covered by the report, by classification of accounts.
(ix) The total dollar amount of residential accounts in arrears and not on payment agreements by month for the 12 months covered by the report, by classification of accounts.
(x) The total number of residential customers who are payment troubled by month for the 12 months covered by the report, by classification of accounts.
(xi) The total number of terminations completed by month for the 12 months covered by the report, by classification of accounts.
(xii) The total number of reconnections by month for the 12 months covered by the report, by classification of accounts.
(xiii) The total number of low-income households. NGDCs may estimate this number using census data or other information the NGDC finds appropriate.
(2) Program reporting. Program reporting shall be categorized as follows:
(i) For each universal service and energy conservation component, program data shall include information on the following:
(A) Program costs.
(B) Program recipient demographics, including the number of family members under 18 years of age and 62 years of age or older, family size, income, and source of income.
(C) Participation levels by month for the 12 months covered by the report.
(ii) Additional program data for individual universal service and energy conservation components shall include the following information:
(A) LIURP Reporting requirements. As established in § 58.15 (relating to program evaluation).
(I) LIURP reporting data. Due by April 30.
(II) Actual production and spending data. Actual production and spending data for the recently completed program year and projections for the current year shall be due annually by April 1.
(B) CAP.
(I) Energy assistance benefits.
(II) Average CAP bills.
(III) Payment rate.
(IV) CAP benefits.
(V) Total cash payments by CAP customers.
(VI) Number of full, on-time payments.
(VII) Percentage of CAP bill paid by customer.
(C) CARES.
(I) Energy assistance benefits.
(II) Direct dollars applied to CARES accounts.
(III) CARES benefits.
(D) Hardship funds.
(I) Ratepayer contributions.
(II) Special contributions.
(III) Utility contributions.
(IV) Outreach contacts.
(V) Hardship fund benefits.
§ 62.6. Evaluation reporting requirements.
(a) Each NGDC shall have an independent third-party conduct an impact evaluation of its universal service and energy conservation programs and provide a report of findings and recommendations to the Commission and NGDC.
(b) The first impact evaluation will be due beginning August 1, 2004, on a staggered schedule. Subsequent evaluation reports shall be presented to the NGDC and the Commission at no more than 6 year intervals.
(c) To ensure an independent evaluation, neither the NGDC nor the Commission shall exercise control over content or recommendations contained in the independent evaluation report. The NGDCs may provide the Commission with a companion report that expresses where they agree or disagree with independent evaluation report content or recommendations.
(d) An independent third-party evaluator shall conduct the impact evaluation.
§ 62.7. NGDCs with less than 100,000 residential accounts.
(a) Beginning June 1, 2003, each NGDC with less than 100,000 accounts shall report to the Commission every 3 years the following information in lieu of the requirements in §§ 54.74--54.76 (relating to universal service and energy plans; annual residential collection and universal service and energy conservation program reporting requirements; and evaluation reporting requirements):
(1) The universal service and energy conservation plan.
(2) Expenses associated with low-income customers.
(3) A description of the universal service and energy conservation services provided to low-income residential customers.
(4) Number of services or benefits provided to low-income residential customers.
(5) Dollar amount of services or benefits provided to low-income residential customers.
§ 62.8. Public information.
The Commission will annually produce a summary report on the universal service performance of each NGDC using the statistics collected as a result of these reporting requirements. The reports will be public information. The Commission will provide the reports to any interested party and post the reports on the Commission's Internet website.
[Pa.B. Doc. No. 00-291. Filed for public inspection February 18, 2000, 9:00 a.m.]
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