§ 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) Disclosure of generation charges must conform to the following requirements:
(i) If the customer will be billed under a price per kilowatt-hour price structure, generation charges must be disclosed according to the actual prices per kilowatt-hour.
(ii) If a customer will not be billed under a price per kilowatt-hour price structure, the contract’s terms must clearly explain the pricing structure and what the customer’s price for generation charges will be for a given period of time.
(iii) Generation charges must include an estimate of all applicable taxes except for State sales tax and county tax.
(2) If the price is introductory, the pricing statement must include a statement that the price is an introductory price, the duration of the introductory period and the price for the first billing cycle after the introductory period.
(3) If the price is variable, the variable pricing statement must include:
(i) Conditions of variability (state on what basis prices will vary) including the factors that the EGS will rely upon to establish the variable price.
(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 duration of the contract, the EGS shall clearly explain the applicable limits. The EGS shall also state that the price can change each billing period, which must be printed in font size larger than the font size appearing in the terms of service.
(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. The EGS shall also state that the price can change each billing period, which must be printed in font size larger than the font size appearing in the terms of service.
(iii) The price to be charged, per kilowatt-hour, for the first billing cycle of generation service.
(iv) A description of when and how the customer will receive notification of price changes. If the customer will not know the price until the time of billing, this must be disclosed in font size larger than the font size appearing in the terms of service.
(4) If the unit price changes based on actual customer usage or if the offer includes fees in addition to the unit price, the price per kWh must factor in all costs associated with the rate charged to the customer, including any fees, and show the average price per kWh for usages of 500, 1,000 and 2,000 kWh of electricity in a table format. If the offer includes an introductory price, the disclosure statement must show the average price per kWh of the introductory price, including any fees, and the price offered after the introductory period, including any fees, in separate tables.
(i) If the price is a fixed monthly amount, including any fees, that does not change based on actual customer usage, the disclosure statement must show the average price per kWh for usages of 500, 1,000 and 2,000 kWh of electricity in a table format.
(ii) If the price varies based on when the customer actually uses electricity, such as a time-of-use offer, the disclosure statement must show the price per kWh for each time period in table format.
(5) An itemization of basic and nonbasic charges distinctly separate and clearly labeled.
(6) The duration of the agreement, which includes:
(i) The starting date.
(ii) The expiration date, if applicable.
(7) An explanation of sign-up bonuses, add-ons, limited time offers, other sales promotions and exclusions, if applicable.
(8) An explanation of prices, terms and conditions for special services, including advanced metering deployment, if applicable.
(9) The cancellation provisions, if applicable.
(10) The renewal provisions, if applicable.
(11) An explanation of limits on price variability, penalties, fees or exceptions, printed in font size larger than the font size appearing in the terms of service, but not less than 12-point font. Penalties and fees must be disclosed in actual dollars or a specific method for determining the actual dollars must be disclosed. This explanation must include a statement advising the customer that the customer will not be subject to a penalty or fee if the customer terminates the contract at any time between the date the options notice required under § 54.10(2) (relating to notice of contract expiration or change in terms for residential and small business customers) is issued and the expiration of the fixed duration contract.
(12) Customer contact information that includes the name of the EGS, the EGS’s address, telephone number, Commission license number and Internet address, if available.
(13) A statement providing that information about shopping for an electric supplier is available at www.PaPowerSwitch.com or other successor media platform as determined by the Commission, by calling the Commission at (800) 692-7380 and the Office of Consumer Advocate at (800) 684-6560 or at www.oca.state.pa.us.
(14) For contracts with variable pricing, the EGS shall 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. If price history or representative price information is not available and the offer is materially different from other offers made by the EGS, the EGS shall inform the customer of this fact.
(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 on electric disclosure statements and must be defined in accordance with the glossary posted at www.PaPowerSwitch.com or other successor media platform as determined by the Commission. Definitions for each of the basic and nonbasic services, if applicable, are required. The definition section of the disclosure statement 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 notifications for fixed duration or non-fixed duration contracts:
(1) For fixed-duration contracts, disclosure statements must include the following notification: ‘‘If you have a fixed duration contract that will be ending, or whenever ‹EGS name› wants to change the contract, you will receive two separate notices before the contract ends or the changes happen. You will receive the first notice 45 to 60 days before, and the second notice 30 days before the expiration date or the date the change becomes effective. These notices will explain your options.’’
(2) For contracts that are not fixed-duration contracts, disclosure statements must include the following notification: ‘‘If ‹EGS name› wants to change the contract, you will receive two separate notices before the changes happen. You will receive the first notice 45 to 60 days before the change, and the second notice 30 days before the change. These notices will explain your options.’’
(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.
(j) If the contract is assignable, the EGS shall inform the customer at the time the parties enter into the contract. Prior to a contract assignment, the EGS shall provide notice to the affected customer, the affected EDC and the Commission. The customer notice must include the name of the new EGS, the contact information for the new EGS, the estimated month and year that the assignment is expected to occur, and language informing the customer that contract terms and conditions remain unchanged.
(k) If the EGS intends on obtaining customer account information from the EDC, the EGS shall inform the customer of the specific type of information that may be obtained, such as usage data, the purpose for obtaining this information and that the customer is consenting to the EDC releasing this information by entering into this contract. The EGS shall also inform the customer that the EGS will maintain the confidentiality of a customer’s personal information including the customer’s name, address, telephone number, electric usage and historic payment information, as required by applicable Commission regulations and Federal and State laws.
Source The provisions of this § 54.5 amended September 14, 2007, effective September 15, 2007, 37 Pa.B. 4996; amended June 13, 2014, effective June 14, 2014, 44 Pa.B. 3522; amended July 31, 2020, effective in 60 days, 50 Pa.B. 3861. Immediately preceding text appears at serial pages (372469) to (372471).
Cross References This section cited in 52 Pa. Code § 54.1 (relating to purpose); 52 Pa. Code § 54.10 (relating to notice of contract expiration or change in terms for residential and small business customers); 52 Pa. Code § 57.173 (relating to customer contacts the EGS to request a change in electric supply service); 52 Pa. Code § 75.13 (relating to general provisions); 52 Pa. Code § 111.2 (relating to definitions); 52 Pa. Code § 111.7 (relating to customer authorization to transfer account; transaction; verification; documentation); 52 Pa. Code § 111.11 (relating to receipt of disclosure statement and right to rescind transaction); and 52 Pa. Code § 111.12 (relating to consumer protection).
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