§ 62.81. Notice of contract expiration or change in terms for residential and small business customers.
(a) An NGS shall provide the following notices to customers prior to the expiration of a fixed duration contract or prior to a change in contract terms:
(1) An initial notice shall be provided to each affected customer 60 to 75 days prior to the expiration date of the fixed duration contract or the effective date of the proposed change in terms. For a customer who has elected to receive electronic communications from the NGS, 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 duration 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 duration contract.
(vi) A statement indicating whether the existing fixed duration contract has a cancellation fee and an explanation of the fee amount and how to avoid the cancellation fee, including notice of the date when the customer can choose a different product from the customer’s existing NGS, choose an alternative NGS or return to the supplier of last resort.
(2) An options notice shall be provided after the initial notice to each affected customer at least 45 days prior to the expiration date of the fixed duration contract or the effective date of the proposed change in terms. The notice shall be provided by first class mail unless the customer has affirmatively elected to receive electronic communications from the NGS. The options notice must include:
(i) A statement advising the customer of the specific changes being proposed by the NGS 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 NGS, to select another NGS or to return to the supplier of last resort, and what will occur if the customer fails to respond to the notice. If the NGS intends to discontinue service to the customer at the end of the contract, the options notice must include a statement that the NGS will no longer serve the customer at the end of the contract and that the customer will be returned to the supplier of last resort if the customer does not select another NGS.
(ii) Information regarding the new billed price or renewal billed price, including the price to be charged for the first billing cycle of commodity service:
(A) If a customer fails to respond to the options notice and is converted to a month-to-month contract, the NGS shall provide a disclosure statement under § 62.75 (relating to disclosure statement for residential and small business customers).
(I) Notice of a subsequent change in billed price shall be provided to the customer at least 30 days prior to the new price being charged.
(II) For a customer who has elected to receive electronic communications from the NGS, notice of the change in billed price shall be transmitted in the manner chosen by the customer. For 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 duration contract, the NGS shall provide the billed price to be charged and the length of the contract.
(iii) The telephone numbers and Internet addresses, as applicable, for the Office of Consumer Advocate, the Commission and PaGasSwitch.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 natural gas supply contract.
(b) When a customer fails to respond to the initial notice and the options notice, the following apply:
(1) A fixed duration contract shall be converted to one of the following:
(i) 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.
(ii) Another fixed duration 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.
(2) The converted contracts must remain in place until the customer chooses one of the following options:
(i) Selects another product offering from the existing NGS.
(ii) Enrolls with another NGS.
(iii) Returns to the supplier of last resort.
Source The provisions of this § 62.81 adopted August 12, 2016, effective August 13, 2016, 46 Pa.B. 4959.
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