[44 Pa.B. 3522]
[Saturday, June 14, 2014]
[Continued from previous Web Page] 8. Implementation
EGSs shall implement these regulatory changes within 30 days of the publication in the Pennsylvania Bulletin.
Process and Justification for Promulgating Final-Omitted Regulations
Under the Public Utility Code, the Commission may promulgate regulations as may be necessary and proper in the exercise of its powers and performance of its duties. 66 Pa.C.S. § 501(b). In promulgating regulations, the Commission must adhere to the statutory requirements of the Regulatory Review Act, 71 P. S. §§ 745.1 et seq., the Commonwealth Documents Law, 45 P. S. §§ 1201 et seq., and the Commonwealth Attorneys Act, 71 P. S. § 732-204. A Commonwealth agency enjoys wide discretion in establishing rules, regulations, and standards; this discretion will not be overturned by a reviewing court absent proof of fraud, bad faith, or a blatant abuse of discretion. Logsden v. Dept. of Educ., 671 A.2d 302, 305 (Pa. Cmwlth. 1996). In order for a regulation to have the force of law binding on the judiciary, the agency must: 1) act pursuant to the agency's governing statute, 2) adhere to proper procedure, and 3) issue a reasonable regulation. Rohrbaugh v. Pa. Pub. Util. Comm'n, 727 A.2d 1080, 1085 (Pa. 1999).
In proposing a new or modified regulation, an agency generally must provide notice to the public of its proposed rulemaking and an opportunity for the public to comment. 45 P. S. § 1201; Naylor v. Com., Dept. of Public Welfare, 54 A.3d 429, 434-6 (Pa. Cmwlth. 2012). The purpose behind this formal notice and comment rulemaking is to provide ''affected parties a democratic process for participation in the formulation of standards which govern their conduct and increases the likelihood of administrative responsiveness to their needs and concerns.'' Dept. of Enviro. Resources v. Rushton Min. Co., 591 A.2d 1168, 1171 (Pa. Cmwlth. 1991). Furthermore, this formal process ''enables the agency to obtain information relevant to the proposed rule and facilitates the consideration of alternatives, detrimental effects, criticism, and advice, thereby contributing to the soundness of the proposed regulation.'' Id.
An agency may forgo those formal notice and comment procedures attendant to a proposed rulemaking by promulgating Final-Omitted Regulations. 45 P. S. § 1204. The Commonwealth Documents Law, Section 1204 of the Pennsylvania Statutes, 45 P. S. § 1204, in discussing scenarios that justify Final-Omitted Regulations, provides:
Except as otherwise provided by regulations promulgated by the joint committee, an agency may omit or modify the procedures specified in §§ 201 and 202, if:(1) The administrative regulation or change therein relates to: (i) military affairs; (ii) agency organization, management or personnel; (iii) agency procedure or practice; (iv) Commonwealth property, loans, grants, benefits or contracts; or (v) the interpretation of a self-executing act of Assembly or administrative regulation; or(2) All persons subject to the administrative regulation or change therein are named therein and are either personally served with notice of the proposed promulgation, amendment, or repeal or otherwise have actual notice thereof in accordance with law; or(3) The agency for good cause finds (and incorporates the finding and a brief statement of the reasons therefor in the order adopting the administrative regulation or change therein) that the procedures specified in §§ 201 and 202 are in the circumstances impracticable, unnecessary, or contrary to the public interest.45 P. S. § 1204.
Pertinently, an agency may forgo traditional notice and comment procedures if the agency finds for good cause those procedures are ''impracticable, unnecessary or contrary to the public interest.'' 45 P. S. § 1204(3). To demonstrate good cause that the formal notice and comment rulemaking process is unnecessary, an agency must include a ''finding and a brief statement of the reasons . . . in the order adopting the administrative regulation or change.'' 1 Pa. Code § 7.4.
Here, the Commission has determined that Final-Omitted Regulations revising our customer information regulations, 52 Pa. Code § 54.5, and adding 52 Pa. Code § 54.10 regarding customer notices, are necessary to serve and protect the public interest. Based upon the circumstances of this situation, specifically, the unusually high electric supply bills recently incurred by customers resulting from variable-priced contracts and fluctuations in wholesale energy markets, the exception at § 1204(3) is, in our opinion, applicable.
Good Cause Supports Commission Promulgation of Final-Omitted Regulations
The Commission finds good cause that undergoing the traditional notice and comment procedures for these regulations is impracticable, unnecessary, and contrary to the public interest. See 45 P. S. § 1204(3). Importantly, pursuant to Section 1204(2) all EGSs affected by these regulations will be served and provided with actual notice. See 45 P. S. § 1204(2).
Formal notice and comment procedures are impracticable and contrary to the public interest because customers are being affected now with extraordinarily high bills and may be affected again as early as this summer due to peak demand periods and potential fluctuations in the wholesale energy market. The Commission seeks to amend its regulations as soon as practicable to ensure customers are being provided with the necessary information to make informed decisions when shopping in Pennsylvania's competitive retail electricity market. Specifically, these Final-Omitted Regulations will provide increased protection to customers and more adequately inform customers about the scope and limits of rate variability, the terms and conditions of an EGS contract, and the customer's options prior to and after the expiration of their current contract for generation supply. Any delay in requiring EGSs to enhance disclosure statements provided to customers, such as a change in contract terms and notice of contract renewal, is contrary to public interest.
Formal notice and comment procedures are unnecessary because there have been and continue to be substantial channels for formal and informal public notice and comment. The public has voiced their comments and concerns through the filing of nearly 500 formal complaints with the Commission's Secretary's Bureau between January 1, 2014 and March 25, 2014, and the filing of over 5,600 informal complaints with the Commission's Bureau of Consumer Services (BCS) regarding EGSs. In addition, BCS has answered more than 9,000 inquiries on the subject. Moreover, the media has raised this issue throughout the Commonwealth. Additionally, the Commission has received a number of inquiries and comments from the Legislature regarding these events. As such, the public is indeed on high notice and constituents have reached out to their legislators, who are discussing legislative amendments to achieve clear and more expansive disclosure of contract terms. Throughout February and March of this year, the Commission has held numerous conference calls and meetings with interested parties, including the Office of Attorney General, the Office of Consumer Advocate, customers, suppliers, utilities, legislative committees, and the media.
As discussed, the Commission has already accepted and reviewed formal comments on advance notification by an EGS of impending changes affecting customer service via a previous Commission order. See September 2010 Interim Guidelines, Docket Nos. M-2010-2195286 and M-0001437. In the September 2010 Interim Guidelines, 12 parties filed comments, including the OCA, OSBA, Pennsylvania Utility Law Project (PULP), PPL Electric Utilities Corporation (PPL), PECO Energy Company (PECO), National Energy Marketers Association (NEMA), Pennsylvania Energy Marketers Association (PEMC), Washington Gas & Electric Services, Inc. (WGES), BlueStar Energy Solutions (BlueStar), Dominion Retail, Inc. (Dominion), FirstEnergy Solutions Corporation (FES), and Direct Energy Services, LLC (Direct Energy).
These regulations are, for the most part, simply codifying notice guidelines that have been in operation since 2010. We have over three years of experience with suppliers operating under these guidelines; and that experience for the most part has been positive with few compliance problems. However, our guidelines are sometimes overlooked by suppliers since guidelines do not have the force of law like regulations. Therefore, it is now appropriate to promulgate these regulations, which will be more visible and enforceable. While additional comments obtained through a proposed rulemaking have the potential to provide more insight and analysis (especially on generally-related issues of electric supply competition), additional comments for the limited purposes of this rulemaking—protecting customers by requiring EGSs to provide enhanced disclosure statements—are unnecessary. Both governmental and other stakeholder resources will be saved by forgoing the extensive formal notice and comment rulemaking process. Accordingly, the public interest is better served through administrative streamlining in this Final-Omitted Rulemaking pursuant to the Commonwealth Documents Law, 45 P. S. § 1204.
In an effort to obtain comments on proposed changes to our Disclosure Regulations, on March 19, 2014, the Commission issued a Secretarial Letter alerting affected parties of the intention to promulgate a Final-Omitted Rulemaking that would amend existing Regulations at 52 Pa. Code, Chapter 54, to revise disclosure statement requirements for residential and small business customers. Rulemaking to Amend the Provisions of 52 Pa. Code, Section 54.5 Regulations Regarding Disclosure Statement for Residential and Small Business Customers and to Add Section 54.10 Regulations Regarding the Provision of Notices of Contract Renewal or Changes in Terms, Docket No. L-2014-2409385, (Secretarial Letter served Mar. 19, 2014) (Secretarial Letter). This Secretarial Letter noted that while some amendments would codify, with modifications, existing contract renewal/change in terms notice requirements, other changes raise new issues that had not previously been considered. As a result, the Commission requested comments on its proposed regulations in order to give an opportunity for those entities most affected to provide feedback.
The Commission received comments related to these and other issues regarding the effect the proposed amendments would have on the Commission's existing regulations and EGS operations. Comments were filed by the following parties: Representatives Godshall and Daley, OCA, OSBA, Citizen Power, UGIES, WGES, Constellation, IGS, RESA, NRG, Alphabuyer, NEM and FES.
The Commission also received a letter, dated March 18, 2014, from Senators Tomlinson and Boscola suggesting that our regulations regarding disclosure statements be revised immediately. The letter also stated that customers should be provided with more information regarding the prices to be paid and the variability that may occur if enrolled in a variable-price contract.
In addition, two residential customers e-mailed either the Commission's website or www.PaPowerSwitch.com with comments regarding the Commission's proposed regulatory changes to EGS disclosure statements, as well as changes to customer notices regarding ''contract renewals'' and ''changes in terms.''
One customer, Mr. David Tranquillo, was supportive of changes to contract terms and conditions, including rebates and incentives, being explained ''in bold print in a size larger than the rest of the offer.'' Another customer, Mr. Ron Brenize, was supportive of changes that would require suppliers to notify customers of rate increases via mail, e-mail, or on the bill. He added ''this would give the consumer time to review and make changes if they desire.''
WGES, OSBA, OCA, Representative Godshall and Representative Daley expressed concern with the Commission's decision to move forward with drafting this regulation using the Final-Omitted Rulemaking process. WGIES Comments at 2, 7, OSBA Comments at 1, 2, and OCA Comments at 1-3. Conversely, UGIES, Alphabuyer, Constellation, Senator Tomlinson, and Senator Boscola commended the Commission for immediately moving forward with revising the disclosure regulations.
We agree with the comments of UGIES, Alphabuyer, Constellation and Senators Tomlinson and Boscola that it is in the public interest to proceed with this rulemaking using the Final-Omitted Rulemaking process. Senators Tomlinson and Boscola requested that the Commission, ''Immediately begin revising the regulations addressing the notification electric suppliers must provide to customers regarding variable rates and the end of fixed rate offerings.'' Tomlinson/Boscola letter at pg. 1. As the Commission discussed previously in this Final-Omitted Rulemaking, the Commission finds good cause that undergoing the traditional notice and comment procedures for these regulations is impracticable, unnecessary, and contrary to the public interest. In light of the recent high number of informal and formal complaints filed before the Commission, the possible damage these complaints will have on the ongoing success and operation of the competitive retail electric market in the Commonwealth and the more important need for residential and small commercial customers to enter into contracts which they fully understand, the Commission believes it is essential to the public interest to act promptly and expeditiously to amend these regulations using the Final-Omitted process.
Additionally, as previously mentioned, the Commission has undertaken many recent immediate measures to ensure that customers are better educated about their options when participating in the competitive retail electric market. We have provided enhanced information to explain price fluctuations in variable rates and the differences between fixed versus variable rates on the Commission's website and PaPowerSwitch.com. We have also provided information and guidance via press releases and other media outlets to educate customers with their options when presented with a high billing complaint. However, while the Commission believes those initial steps were informative, as discussed, we believe the public interest is even better served by the promulgation of these Final-Omitted regulations included herein.
Through its Retail Markets Investigation and OCMO, the Commission has created a ''democratic process for participation'' in the formulation of standards governing retail electricity shopping at 52 Pa. Code §§ 54.1—54.9 ''to increase [ ] the likelihood of administrative responsiveness'' to the needs and concerns of stakeholders and interested parties. See Rushton Min. Co., 591 A.2d at 1171. Therefore, this Final-Omitted Rulemaking still meets the intent of a de novo rulemaking with formal notice and comment without risking promulgation of an agency regulation not in the public interest.
Statutory Safeguards Prevent Promulgation of an Agency Regulation not in Public Interest
Importantly, Final-Omitted Regulations are subjected to the same review before IRRC as review of final-form regulations. See 71 P. S. §§ 745.5a—745.6. IRRC, the legislative committees, and the Attorney General may still comment on the final-form regulation. 71 P. S. § 745.5a(c). IRRC or a committee may disapprove the Final-Omitted Regulation. See 71 P. S. §§ 745.5a—745.7. IRRC may also request and receive public comments up to 48 hours prior to IRRC's public meeting where the final-form regulation will be ruled upon. 71 P. S. § 745.5a(j). If IRRC does not disapprove the Final-Omitted Regulation within its statutory time frame, the Final-Omitted Regulation will be deemed approved. 71 P. S. § 745.5a(e). An agency may accept revisions to the Final-Omitted Regulations, as recommended by IRRC or a committee. 71 P. S. § 745.5a(g). An agency may also toll the time for review in order to provide the agency with sufficient time to make recommended changes suggested by IRRC or the committees. See id. An agency may also withdraw a Final-Omitted Regulation. Upon receiving a report from the agency regarding revisions to the Final-Omitted Regulations, IRRC will deliver an approval or disapproval order to the committees for consideration by the General Assembly and the Governor, both of which retain powers to prevent promulgation of the agency's Final-Omitted Regulation. See 71 P. S. § 745.7(c.1)—(d). Therefore, statutory safeguards are in place to prevent promulgation of an unreasonable agency regulation not in the public interest.
Regulatory Review
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on April 8, 2014, the Commission submitted a copy of the final-omitted rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Consumer Affairs Committee and the Senate Consumer Protection and Professional Licensure Committee. On the same date, the regulations were submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101—732-506).
Under section 5.1(j.2) of the Regulatory Review Act, on May 21, 2014, the final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on May 22, 2014, and approved the final-omitted rulemaking.
Conclusion
The revisions made to the Disclosure Statement Regulations, including the addition of the EGS Contract Summary and Section 54.10, Notice of Contract Expiration or Change in Terms, are intended to increase consumer protection and better inform customers about the scope and limits of rate variability, the terms and conditions of an EGS contract, and a customer's options prior to and after the expiration of their current contract for generation supply. The regulations, as now revised after consideration of comments from affected parties, provide for enhanced information from EGSs to customers who enter into variable-priced contracts and for the inclusion of information about what will happen to a customer's current supply contract if the customer does not respond to either the Initial or Options Notices. This information will ensure that customers will have this information at hand when considering the various alternatives for purchasing future electric generation supply.
Well-informed customers are essential participants in a successful competitive retail market. We have recently seen first-hand the frustrations of customers enrolled in variable-priced contracts who are not sufficiently aware of potentially significant price increases due to fluctuating wholesale market conditions. By updating these regulations to provide customers with accurate, timely pricing information and history when they are shopping for electric generation supply, we intend to create a more user-friendly marketplace that should continue to attract increased numbers of customers.
The Commission believes that this Final-Omitted Rulemaking is prudent and is essential to the public interest. For the previous reasons, the exceptions to the notice of proposed rulemaking requirements enunciated in § 1204(3) are applicable in the instant case. Accordingly, under sections 501 and 1501 of the Public Utility Code (66 Pa.C.S. §§ 501 and 1501); the Commonwealth Documents Law (45 P. S. § 1204); the Regulatory Review Act (71 P. S. §§ 745.1 et seq.); the Commonwealth Attorneys Act (71 P. S. § 732-204); and the regulations promulgated at 1 Pa. Code § 7.4, the Commission adopts the regulations at 52 Pa. Code §§ 54.5 and 54.10, 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 § 54.10 and amending § 54.5 to read as set forth in Annex A.
2. The Secretary shall submit this order, Attachment A and Annex A to the Attorney General for review and approval and to the Governor's Budget Office for fiscal review.
3. The Secretary shall submit this order, Attachment A and Annex A to the legislative standing committees and to the Independent Regulatory Review Commission for review and approval.
4. The Secretary shall duly certify this order, Attachment A and Annex A and deposit them with the Legislative Reference Bureau for final publication upon approval by the Independent Regulatory Review Commission.
5. The final regulations become effective upon publication in the Pennsylvania Bulletin.
6. The Commission's Office of Competitive Market Oversight provide further direction to currently licensed EGSs serving residential and/or small business customers regarding the submission of EGS Contract Summaries to the Commission.
7. This order, Attachment A and Annex A, revising the regulations appearing in Title 52 of the Pennsylvania Code Chapter 54 relating to Electricity Generation Customer Choice, be served on all licensed Electric Generation Suppliers, the Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, and those parties who submitted comments at Docket Nos. L-2014-2409385 and M-2010-2195286.
8. The Office of Competitive Market Oversight shall electronically send a copy of this final-omitted rulemaking order, Attachment A and Annex A to all persons on the contact list for the Committee Handling Activities for Retail Growth in Electricity, and to all persons on the contact list for the Investigation of Pennsylvania's Retail Electricity Market, order entered April 29, 2011 at Docket No. I-2011-2237952.
9. A copy of this final-omitted rulemaking order, Attachment A and Annex A shall be posted on the Commission's web site at the Office of Competitive Market Oversight web page and on the web page for the Investigation of Pennsylvania's Retail Electricity Market.
10. The contact persons for this matter are Matthew Hrivnak in Bureau of Consumer Services (717) 783-1678 and Patricia Wiedt in the Law Bureau (717) 787-5755.
ROSEMARY CHIAVETTA,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 44 Pa.B. 3470 (June 7, 2014).)
Fiscal Note: 57-305. No fiscal impact; (8) recommends adoption.
Attachment A
Electric Generation Supplier Contract Summary
Electric Generation Supplier Information Name, telephone number, website, etc.
Plain language statement that EGS is responsible for generation charges.Price Structure Fixed or variable. If variable, based on what? If variable, how often is the rate expected to vary? If variable, give any applicable ranges/ceilings. If no ranges/ceilings, a plain language statement indicating this fact. If variable, describe when the customer will receive notification of price changes in relation to time of month, final monthly meter read, billing cycle or when the price takes effect. Generation/Supply Price $/kWh or ¢/kWh. If variable rate, the first billing cycle's rate. Any introductory rate with length of term. Statement Regarding Savings Plain language that the supply price may not always provide savings to the customer Deposit Requirements Any deposit requirements necessary for a customer and any terms associated with that deposit, in plain language. Incentives Any bonuses, discounts, cashback, etc. offers and any associated terms, in plain language. Contract Start Date Plain language regarding start of EGS service (meter reads/billing cycles/etc.) Contract Term/Length In months, billing cycles, etc. Cancellation/Early Termination Fees Yes or no. If yes, describe the amount of the fee and how to avoid that fee, if possible. Renewal Terms Treatment of customer at end of contract. Timing of notices. No cancellation/early termination fees. In plain language. Electric Distribution Company Information Name, telephone number, website, etc.
Plain language statement that EDC is responsible for distribution charges, as well as any emergencies/outages/etc.
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 § 54.5. Disclosure statement for residential and small business customers.
(a) The agreed upon prices in the disclosure statement must 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 default service provider.
(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 must include:
(i) Conditions of variability (state on what basis prices will vary).
(ii) Limits on price variability:
(A) If there is a limit on price variability, such as a specific price cap, a maximum percentage increase in price between billing cycles or minimum/maximum charges per kilowatt-hour for electricity during the term of the contract, the EGS shall clearly explain the applicable limits.
(B) If there is not a limit on price variability, the EGS shall clearly and conspicuously state that there is not a limit on how much the price may change from one billing cycle to the next.
(iii) The price to be charged, per kilowatt-hour, for the first billing cycle of generation service.
(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 default service provider.
(10) An explanation of limits on price variability, 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 must 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.
(14) For contracts with variable pricing, the EGS must provide:
(i) A telephone number and Internet address at which a customer may obtain the previous 24 months' average monthly billed prices for that customer's rate class and EDC service territory. If an EGS has not been providing generation service in a rate class and EDC service territory for 24 months, the EGS shall provide the average monthly billed prices for the months available to date.
(ii) In plain language, a statement that historical pricing is not indicative of present or future pricing.
(d) Customers shall be provided a 3-day right of rescission 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 rescission 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 must 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 must include the following customer notification: ''If you have a fixed term contract approaching the expiration date, or whenever we propose to change the terms of service in any type of contract, you will receive two separate written notifications that precede either the expiration date or the effective date of the proposed changes. These notifications will explain your options going forward.''
(h) If the default service provider changes, the new default service provider shall notify customers of that change, and provide customers with its name, address, telephone number and Internet address, if available.
(i) The EGS shall provide, with the disclosure statement, a separate EGS contract summary in a format provided by the Commission.
§ 54.10. Notice of contract expiration or change in terms for residential and small business customers.
An EGS shall provide the following notices to customers prior to the expiration of a fixed term contract or prior to a change in contract terms:
(1) An initial notice shall be provided to each affected customer 45 to 60 days prior to the expiration date of the fixed term contract or the effective date of the proposed change in terms. For customers who have elected to receive electronic communications from the EGS, the notice shall be transmitted in the manner chosen by the customer. The initial notice must include:
(i) A general description of the proposed change in terms of service.
(ii) The date a change shall be effective or when the fixed term contract is to expire.
(iii) An explanation of why a change in contract terms is necessary.
(iv) A statement indicating when a follow-up options notice shall be issued with details regarding the proposed change.
(v) A statement explaining that the options notice must discuss the customer's options to the proposed change in terms of service or expiring fixed term contract.
(vi) A statement indicating whether the existing fixed term contract has a cancellation fee, and an explanation of the fee amount and how to avoid the fee, if possible, including notice of the date when the customer can choose a different product from the customer's existing EGS, choose an alternative EGS or return to default service.
(2) An options notice shall be provided, by first class mail, to each affected customer at least 30 days prior to the expiration date of the fixed term contract or the effective date of the proposed change in terms. The options notice must include:
(i) A statement advising the customer of the specific changes being proposed by the EGS and informing the customer of how to exercise the customer's options, including the customer's ability to accept the proposed changes, to choose another product offering from the customer's existing EGS, to select another EGS or to return to default service.
(ii) Information regarding new pricing or renewal pricing including the price to be charged, per kilowatt-hour, for the first billing cycle of generation service:
(A) If a customer fails to respond to the options notice and is converted to a month-to-month contract, the EGS shall provide a disclosure statement under § 54.5 (relating to disclosure statement for residential and small business customers).
(I) Notice of a subsequent change in pricing shall be provided to the customer at least 30 days prior to the new price being charged.
(II) For customers who have elected to receive electronic communications from the EGS, notice of the change in pricing shall be transmitted in the manner chosen by the customer. For all other customers, notice shall be provided by first class mail.
(B) If a customer fails to respond to the options notice and is entered into a new fixed term contract, the EGS shall provide the fixed, per kilowatt-hour price to be charged and term length of the contract.
(iii) The telephone numbers and Internet addresses, as applicable, for the Office of Consumer Advocate, the Commission and PaPowerSwitch.com.
(iv) Language clearly visible on the front of the envelope used to provide the options notice stating that it contains important information regarding the expiration or changes in terms of the customer's electric supply contract.
(3) When a customer fails to respond to either notice, the following apply:
(i) A fixed term contract shall be converted to one of the following:
(A) A month-to-month contract, either at the same terms and conditions or at revised terms and conditions, as long as the contract does not contain cancellation fees.
(B) Another fixed term contract, as long as the new contract includes a customer-initiated cancellation provision that allows the customer to cancel at any time, for any reason, and does not contain cancellation fees.
(ii) The converted contracts shall remain in place until the customer chooses one of the following options:
(A) Select another product offering from the existing EGS.
(B) Enroll with another EGS.
(C) Return to the default service provider.
[Pa.B. Doc. No. 14-1246. Filed for public inspection June 13, 2014, 9:00 a.m.]
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