§ 54.184. Default service provider obligations.
(a) While an EDC collects either a competitive transition charge or an intangible transition charge or until 100% of an EDC’s customers have electric choice, whichever is longer, an EDC as a default service provider shall be responsible for the reliable provision of default service to retail customers who are not receiving generation services from an alternative EGS within the certificated territory of the EDC that it serves or whose alternative EGS has failed to deliver electric energy.
(b) A DSP shall comply with the code and Chapter 1 (relating to rules of administrative practice and procedure) to the extent that the obligations are not modified by this subchapter or waived under § 5.43 (relating to petitions for issuance, amendment, repeal or waiver of regulations).
(c) Following the expiration of an EDC’s obligation to provide electric generation supply service to retail customers at capped rates, if a customer contracts for electric generation supply service and the chosen EGS does not provide the service, or if a customer does not choose an alternative EGS, the default service provider shall provide electric generation supply service to that customer pursuant to a Commission-approved competitive procurement process that includes one or more of the following:
(1) Auctions.
(2) Requests for proposals.
(3) Bilateral agreements entered into at the sole discretion of the default service provider which shall be at prices that are either of the following:
(i) No greater than the cost of obtaining generation under comparable terms in the wholesale market, as determined by the Commission at the time of execution of the contract.
(ii) Consistent with a Commission-approved competition procurement process. Agreements between affiliated parties, including bilateral agreements between electric utilities and affiliated generators, shall be subject to review and approval of the Commission under 66 Pa.C.S. § § 2101—2107 (relating to relations with affiliated interests). The cost of obtaining generation from any affiliated interest may not be greater than the cost of obtaining generation under comparable terms in the wholesale market at the time of execution of the contract.
(d) A DSP shall continue the universal service and energy conservation program in effect in the EDC’s certificated service territory or implement, subject to Commission approval, similar programs consistent with 66 Pa.C.S. § § 2801—2815 (relating to Electricity Generation Customer Choice and Competition Act) and the amendments provided under the act of October 15, 2008 (P. L. 1592, No. 129) providing for energy efficiency and conservation programs. The Commission will determine the allocation of these responsibilities between an EDC and an alternative DSP when an EDC is relieved of its DSP obligation.
Source The provisions of this § 54.184 amended August 10, 2012, effective August 11, 2012, 42 Pa.B. 5185. Immediately preceding text appears at serial page (330069).
Cross References This section cited in 52 Pa. Code § 54.186 (relating to default service procurement and implementation plans).
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