NOTICES

PENNSYLVANIA PUBLIC
UTILITY COMMISSION

Electric Generation Supplier License Cancellations of Companies with an Expired Financial Security, Insufficient Financial Security Amount or Language

[50 Pa.B. 3996]
[Saturday, August 1, 2020]

Public Meeting held
July 16, 2020

Commissioners Present: Gladys Brown Dutrieuille, Chairperson; David W. Sweet, Vice Chairperson; John F. Coleman, Jr.; Ralph V. Yanora

Electric Generation Supplier License Cancellations of Companies with an Expired Financial Security, Insufficient Financial Security Amount or Language; M-2020-3015227

Tentative Order

By the Commission:

 The Commission's regulations at 52 Pa. Code § 54.40(a) state that an Electric Generation Supplier (EGS) license will not be issued or remain in force until the licensee furnishes a bond or other security approved by the Commission. In addition, 52 Pa. Code § 54.40(d) states that the maintenance of an EGS license is contingent on the licensee providing proof to the Commission that a bond or other approved security in the amount directed by the Commission has been obtained.

 Each EGS must file an original bond, letter of credit, continuation certificate, amendment, or other approved financial instrument with Rosemary Chiavetta, Secretary, Pennsylvania Public Utility Commission, 400 North Street, Harrisburg, PA 17120 prior to the EGS's current security expiration date. Each financial instrument must be an original document that displays a ''wet'' signature or digital signature, preferable in blue ink, and displays a ''raised seal'' or original notary stamp. The name of the principal on the original financial instrument must match exactly with the name that appears on the EGS's license issued by the Commission.

 Failure to file before the financial security's expiration date may cause Commission staff to initiate a formal proceeding that may lead to the following: cancellation of each company's electric supplier license, removal of each company's information from the Commission's website and notification to all electric distribution companies, in which each company is licensed to do business, of the cancellation of the license.

 As of July 7, 2020, each EGS listed in the Supplier Table has not provided proof to the Commission that it has a bond or other approved security in the amount or language directed by the Commission, to replace a bond which is expired or which is non-compliant with Commission regulations.

 While we recognize that the COVID-19 pandemic has provided some challenges related to the continuance of normal business operations, it is imperative that the Commission have an approved financial security in place with each EGS to ensure compliance with 52 Pa. Code § 54.40(d). On March 25, 2020, Commission staff issued an EGS Financial Security Filing Guidance Memo that stated the following:

• Where practical, EGSs should file an original bond, letter of credit, continuation certificate, amendment, or other financial instrument. These original financial instruments should display ''wet'' signatures or digital signatures, preferably in blue ink, and display a ''raised seal'' or original notary stamp.

• EGSs should email a copy of the original financial instrument directly to Secretary Chiavetta at rchiavetta@pa.gov. Secretary Chiavetta has waived the restriction on emailed filings that contain confidential and proprietary material. As such, financial security instruments will be permitted to be filed by email for the duration of the Commission's work from home order.

• If an EGS is unable to acquire a ''raised seal'' or original notary stamp on the financial security during the pendency of the COVID-19 emergency, the Secretary's Bureau will not reject the financial security.

• If an EGS has been granted a reduction in its financial security, and it is time to renew the annual reduction, please file an original annual compliance filing with the Secretary's Bureau and a copy via email at rchiavetta@pa.gov.

Please note that the requirement that EGSs maintain a valid financial security on file with the Commission, remains in effect.

Be advised that emailed financial security instruments—after review and acceptance of the Secretary's Bureau and the Bureau of Technical Utility Services—will be provisionally approved by the Commission until Commission staff resume working in the Keystone Building. EGSs must still mail the original bond with original signatures and notary stamp as per the Commission's normal practice.

 Based on the Commission's records, the EGSs listed in the Supplier Table have not provided an original approved financial security, nor have they emailed a copy of the original financial instrument to Secretary Chiavetta as directed by the staff memo.

Supplier Table—List of Electric Generation Suppliers that failed to email a copy
or provide an original financial security document to the Commission.

Docket Number	Company Name	Financial Security Expiration Date	Commission Approved Amount or Language
A-2016-2575063*	FREEPOINT ENERGY SOLUTIONS, LLC	7/1/2021	No
A-2016-2575177	NATIONAL UTILITIES REFUND, LLC	6/20/2020	Yes
A-2014-2457160	NORESCO, LLC	6/24/2020	Yes
A-2016-2579236	TRIANGLENERGY, LLC	6/13/2020	Yes
A-2019-3012205	WATTB, INC.	6/17/2020	Yes

 *Taking title to electricity

 An EGS listed in the Supplier Table that believes it has provided its original financial security to the Commission and was listed in error, should contact the Commission's Bureau of Technical Services at pc-puc-tus-energy@pagov.onmicrosoft.com.

 As part of its EGS license validation procedures, the Commission's Bureau of Technical Utility Services sent a 90-day Security Renewal Notice Letter to each entity in the Supplier Table above stating that original documentation of a bond, or other approved security in the amount and language directed by the Commission, must be filed within 30 days prior to each entity's security expiration date. None of the companies listed provided the required documentation.

 Based on the above facts, we tentatively conclude that the EGSs listed in the Supplier Table are not in compliance with 52 Pa. Code § 54.40(a) and (d) and therefore it is appropriate to initiate the cancellation process for the EGS license of each company listed in the Supplier Table, without the necessity of a formal complaint, as being in the public interest; Therefore,

 It Is Ordered That:

 1. Cancellation of the Electric Generation Supplier License of each company listed in the Supplier Table is hereby tentatively approved as being in the public interest.

 2. The Secretary serve a copy of this Tentative Order upon the Office of Consumer Advocate, the Office of Small Business Advocate, the Bureau of Investigation & Enforcement, all electric distribution companies, all of the Electric Generation Suppliers in the Supplier Table, and publish a copy of this Tentative Order in the Pennsylvania Bulletin with a 45-day comment period.

 3. The Secretary serve a copy of this Tentative Order upon the Pennsylvania Department of Revenue—Bureau of Compliance, Business License Clearance Division.

 4. Absent the filing of adverse public comment or the filing of an approved security within 45 days after publication in the Pennsylvania Bulletin, the Bureau of Technical Utility Services shall prepare a Final Order for entry by the Secretary.

 5. Upon entry of the Final Order described in Ordering Paragraph No. 4 above, each company listed in the Supplier Table will be stricken from all active utility lists maintained by the Commission's Bureau of Technical Utility Services and the Assessment Section of the Bureau of Administration, removed from the Commission's website, and notifications be sent to all electric distribution companies in which the Electric Generation Suppliers are licensed to do business.

 6. Upon entry of the Final Order described in Ordering Paragraph No. 4, each electric distribution company in which the Electric Generation Suppliers are licensed to do business, shall return the customers of the Electric Generation Suppliers to default service.

ROSEMARY CHIAVETTA, 
Secretary

[Pa.B. Doc. No. 20-1058. Filed for public inspection July 31, 2020, 9:00 a.m.]

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