Subchapter D. LICENSING REQUIREMENTS FOR NATURAL GAS SUPPLIERS
Sec.
62.101. Definitions.
62.102. Scope of licensure.
62.103. Application process.
62.104. Application form.
62.105. Change in organizational structure or operational status.
62.106. Open and nondiscriminatory access.
62.107. Publication of notice of filing.
62.108. Protests to applications.
62.109. Approval.
62.110. Reporting requirements.
62.111. Bonds or other security.
62.112. Transfer or abandonment of license.
62.113. License suspension; license revocation.
62.114. Standards of conduct and disclosure for licensees.
Authority The provisions of this Subchapter D issued under the Public Utility Code, 66 Pa.C.S. § § 501, 2203(12) and 2208, unless otherwise noted.
Source The provisions of this Subchapter D adopted July 20, 2001, effective July 21, 2001, 31 Pa.B. 3943, unless otherwise noted.
§ 62.101. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Act—66 Pa.C.S § § 2201—2212 (relating to Natural Gas Choice and Competition Act).
Aggregator—An entity, licensed by the Commission, that purchases natural gas and takes title to it as an intermediary for sale to retail customers.
Applicant—A person or entity seeking to obtain a license to supply retail natural gas supply services to retail customers.
Broker—An entity, licensed by the Commission, that acts as an agent or intermediary in the sale and purchase of natural gas that does not take title to natural gas supply.
City natural gas distribution operation—A collection of real and personal assets used for distributing natural gas to retail gas customers owned by a city or a municipal authority, nonprofit corporation or public corporation formed under section 2212(m) of the act (relating to city natural gas distribution operations).
License—A license granted to an NGS under this subchapter.
Licensee—A person or entity that has obtained a license to provide natural gas supply services to retail customers.
Marketing—The publication, dissemination or distribution of informational and advertising materials regarding the licensed NGS’s natural gas supply services and products to the public by personal contact, print, broadcast, electronic media, direct mail or by telecommunication.
NGDC—Natural gas distribution company—The term as defined in section 2202 of the act (relating to definitions).
NGS—Natural gas supplier—The term as defined in section 2202 of the act.
Natural gas supply services—The term as defined in section 2202 of the act.
Nonselling marketer—An individual or commercial entity, such as a telemarketing firm, door-to-door salesman or company, or auction-type web site, under contract to a licensed NGS, that provides marketing services to retail customers for natural gas supply services.
Nontraditional marketer—A community-based organization, civic, fraternal or business association, or common interest group that works with a licensed NGS as an agent to market natural gas service to its members or constituents. A nontraditional marketer may not require its members or constituents to obtain its natural gas service through a specific licensed NGS.
Offer to provide service—The extension of an offer to provide services or products communicated orally or in writing to a customer.
Retail gas customer—The term as defined in section 2202 of the act.
Supplier of last resort—A supplier approved by the Commission under section 2207(a) of the act (relating to obligation to serve) to provide natural gas supply services to customers who contracted for natural gas that was not delivered, or who did not select an alternative NGS, or who are not eligible to obtain competitive natural gas supply, or who return to the supplier of last resort after having obtained competitive natural gas supply.
Source The provisions of this § 62.101 amended June 13, 2014, effective June 14, 2014, 44 Pa.B. 3551. Immediately preceding text appears at serial pages (360930) and (369849).
Cross References This section cited in 52 Pa. Code § 62.222 (relating to definitions).
§ 62.102. Scope of licensure.
(a) An NGS, including an aggregator or a broker, may not engage in marketing, or may not offer to provide, or provide natural gas supply services to retail customers until it is granted a license by the Commission.
(b) An NGDC acting within its certified service territory as a supplier of last resort is not required to obtain a license.
(c) The owners/operators of a building or facility that manage the internal distribution system supplying a building or facility and supply natural gas and other related services to occupants of the building or the facility where the owners/operators, and not the occupants, are the direct purchasers of the natural gas supply services are not required to obtain a license.
(d) A nontraditional marketer is not required to obtain a license. The licensed NGS is responsible for violations of 66 Pa.C.S. (relating to Public Utility Code), and applicable regulations of this part, orders and directives committed by the nontraditional marketer and fraudulent, deceptive or other unlawful marketing or billing acts committed by the nontraditional marketer.
(e) A nonselling marketer under contract to more than one licensed NGS is required to obtain a license.
(f) A nonselling marketer under contract to only one licensed NGS is not required to obtain a license. The licensed NGS is responsible for violations of 66 Pa.C.S. and applicable regulations of this part, orders and directives committed by the nonselling marketer and fraudulent, deceptive or other unlawful marketing or billing acts committed by the nonselling marketer.
Source The provisions of this § 62.102 amended June 13, 2014, effective June 14, 2014, 44 Pa.B. 3551. Immediately preceding text appears at serial pages (369849) and (369850).
§ 62.103. Application process.
(a) An application for a license shall be made on the form provided by the Commission. A copy of the application can be obtained from the Commission’s Secretary. The application form is also available on the Commission’s Internet web site. An application shall be verified by an oath or affirmation as required in § 1.36 (relating to verification). See section 2208(b) of the act (relating to requirements for natural gas suppliers).
(b) An original of the completed application and supporting attachments shall be filed. An application for a license shall be accompanied by the application fee as established in § 1.43 (relating to schedule of fees payable to the Commission).
(c) Subject to subsection (e), copies of the completed applications with supporting documentation shall be served on the following:
(1) The Office of Consumer Advocate.
(2) The Office of Small Business Advocate.
(3) The Office of Attorney General, Bureau of Consumer Protection.
(4) The Department of Revenue.
(5) Each NGDC in whose service territory the applicant intends to provide natural gas supply services.
(d) Incomplete applications and those without supporting attachments, if needed, will be rejected without prejudice. The license application, with supporting attachments, shall be completed in its entirety.
(e) When an answer on the application requires the disclosure of privileged or confidential information not otherwise available to the public, the applicant may designate at each point in the application where information is disclosed that is confidential and privileged. One copy of this confidential or privileged infor-mation conspicuously marked at the top as ‘‘CONFIDENTIAL’’ may be submitted to the Office of the Secretary with the application.
(1) An applicant must provide reasons for protecting this information.
(2) The request for confidentiality will be treated as a petition for protective order and will be ruled on by the Commission in conjunction with the license application.
(3) Pending disposition, the information will be used solely for the purpose of evaluating the license application, and the confidentiality of this information will be maintained consistent with the Commission’s rules and regulations pertaining to confidentiality.
Authority The provisions of this § 62.103 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 504, 523, 1301, 1501 and 1504.
Source The provisions of this § 62.103 amended January 10, 2014, effective January 11, 2014, 44 Pa.B. 249. Immediately preceding text appears at serial pages (360932) and (281583).
§ 62.104. Application form.
(a) The application form includes information that will be used in the evaluation of the financial fitness and technical fitness to render service. Information includes:
(1) Identification of the geographic area that the applicant proposes to serve.
(2) Identification of the type of service that the applicant proposes to furnish.
(3) Identification of the class of customers to which the applicant proposes to provide these services.
(4) Identification of the applicant’s utility affiliates.
(5) Description of the applicant’s business structure.
(6) Financial information sufficient to demonstrate financial fitness. This information may include credit ratings and history, audited financial statements, and insurance pertinent to the conduct of the applicant’s business as an NGS.
(7) Evidence of competency and experience in providing the scope and nature of the applicant’s proposed services. This evidence may include:
(i) Descriptions of the applicant’s prior experience.
(ii) Proposed staffing and employee training commitments.
(iii) Business plans.
(iv) Agreements, arrangements and contracts for natural gas supply procurement, transmission and related services.
(8) Evidence demonstrating the applicant’s ability to comply with applicable Commission requirements concerning customer billing, customer education, billing and terms of service, and customer information. This evidence may include:
(i) Prior regulatory experience of the applicant.
(ii) Prior business experience in energy or other service-oriented industries.
(iii) Staffing and staff training commitments.
(iv) Agreements, arrangements and contracts for customer education and information service.
(v) Customer satisfaction survey results.
(vi) Government agency reports.
(vii) Complaint statistics compiled by the Better Business Bureau or similar business organizations.
(9) Certification that notice of the application was published in accordance with § 54.35 (relating to publication of notice of filing) shall be filed with the Commission’s Secretary. The certification shall be notarized and include a photostatic copy of the notices as published. An application will not be considered complete for Commission review without this certification.
(b) Additional information that shall be submitted in support of the application includes:
(1) The name, address, telephone number, electronic numbers and addresses used to transmit tax and related information of the persons responsible for preparing and filing the applicant’s Pennsylvania tax returns.
(2) The trade names or fictitious names used by the applicant.
(3) The type of business association (for example, sole proprietor, partnership or corporation).
(4) The names of the owners, general partners or corporate officers.
(5) The number of the applicant’s current and anticipated employees working in this Commonwealth.
(6) An identification of the applicant’s assets in this Commonwealth.
(7) The principal office in this Commonwealth or of its registered agent.
(8) The applicant’s Department of Revenue tax identification numbers including Sales Tax license number, employer identification number and corporate box number.
§ 62.105. Change in organizational structure or operational status.
(a) The applicant is under a duty to inform the Commission of a material change in the information provided in the application during the pendency of the application, or while the licensee is operating in this Commonwealth.
(b) A material change in the organizational structure or operation that affects an applicant’s or a licensee’s operation in this Commonwealth shall be reported to the Commission within 30 days of the date of the change. Specifically, notification shall be given to the Commission of a change in the following:
(1) Affiliation with an NGDC.
(2) Affiliation with an entity that has a franchised service area.
(3) Affiliation with another NGS.
(4) Affiliation with a licensed electric generation supplier.
(5) Office location.
(6) Chief executive officer or operating partners.
(7) Customer classes served expanded to include residential and small commercial customers.
(c) Unless directed otherwise by the Commission, the licensee does not need to file an amended application with the Commission.
§ 62.106. Open and nondiscriminatory access.
A municipal corporation shall, before it is permitted to provide natural gas supply services as a licensed NGS, demonstrate, and the Commission will determine, that by the date of the issuance of the license, it will provide other NGSs open and nondiscriminatory access to its gas distribution system under standards that are comparable to those found in the act, taking into consideration the particular circumstances of the municipal corporation’s ownership or operation, or both, of its natural gas distribution system. See section 2208(g) of the act (relating to open and nondiscriminatory access).
§ 62.107. Publication of notice of filing.
(a) Notice of filing an application shall be published in newspapers of general circulation covering each county in which the applicant intends to provide service as required by § 5.14(a)(2) (relating to applications requiring notice). Applicants may contact the Commission’s Press Secretary to confirm the identity of the newspapers of general circulation in which notice shall be published.
(b) The notice shall be written in plain language and include the name, address and telephone number of the applicant, a description of the proposed services to be provided and the geographic area to be served.
(1) The notice shall include the application docket number and a statement that protests related to the technical or financial fitness of the applicant shall be filed within 15 days of the publication date of the notice with the Commission’s Secretary, Public Utility Commission, Post Office Box 3265, Harrisburg, PA 17105-3265.
(2) The notice in an acceptable electronic format shall be submitted to the Commission’s Secretary for posting on the Commission’s Internet web site. Inquiries concerning the electronic format may be directed to the Commission’s Forms Officer.
§ 62.108. Protests to applications.
(a) Consistent with § 5.14(b) (relating to applications requiring notice), a 15-day protest period commences on the date notice of the application filing is published in newspapers. An interested party may file a protest to an application in compliance with § 5.52(a) (relating to content of a protest to an application) and shall set out clearly and concisely the facts upon which challenge to the fitness of the applicant is based. An applicant may file an answer to the protest within 10 days of when the protest is filed. Protests which do not fully comply with § 5.52(a) will be rejected.
(b) Protests may challenge only the applicant’s financial and technical fitness to provide the service for which a license is requested. Consistent with the requirements of due process, sanctions, such as revocation or suspension of a supplier’s license or the imposition of a fine, may be imposed on parties who intentionally misuse the protest process by repeated filing of competitive protests.
(c) A protest to the applicant’s technical or financial fitness to provide service will be assigned to Commission staff for review. Staff will determine if the protest fully complies with § 5.52(a) and sets out clearly and concisely the facts upon which the challenge to the fitness of the applicant is based.
(1) Staff will determine if the protest is sufficiently documented.
(2) If a protest is not sufficiently documented, Commission staff will prepare a recommendation for Commission consideration dismissing the protest and granting the application.
(3) If a protest is sufficiently documented, the application will be transferred to the Office of Administrative Law Judge for hearings or mediation as deemed appropriate.
§ 62.109. Approval.
(a) A license will be issued, authorizing the whole or any part of service requested, if the Commission finds that:
(1) The applicant is fit, willing and able to properly perform the service proposed in conformance with applicable provisions of 66 Pa.C.S. (relating to the Public Utility Code) and the lawful Commission orders and regulations, specifically including Chapter 56 (relating to standards and billing practices for residential utility service).
(2) The proposed service is consistent with the public interest and the policy declared in the act (See section 2208(b) of the act (relating to requirements for natural gas suppliers)).
(b) Completed applications, with all supporting documentation, including any documentation or clarifying information requested by Commission staff, if unprotested, will be processed within 45 days after acceptance by the Commission. If the application is not processed within the time period, the application will be deemed approved. The review period may be extended for a reasonable period of time by Secretarial Letter.
§ 62.110. Reporting requirements.
(a) A licensee shall file an annual report on or before April 30 of each year, for the previous calendar year. The annual report must contain the following information:
(1) The total amount of gross receipts from the sales of natural gas supply services for the preceding calendar year.
(2) The total amount of natural gas sold during the preceding calendar year.
(3) The names and addresses of nontraditional marketers and nonselling marketers who are currently or will be acting as agents for the licensee in the upcoming year.
(b) A licensee shall be required to meet periodic reporting requirements issued by the Commission to fulfill the Commission’s duty under the act pertaining to reliability and to inform the Governor and General Assembly of the progress to a fully competitive natural gas market.
(c) The information requested in this section will be made available for public review upon request to the Commission subject to any rulings on confidentiality made by the Commission.
Source The provisions of this § 62.110 amended June 13, 2014, effective June 14, 2014, 44 Pa.B. 3551. Immediately preceding text appears at serial pages (281586) and (354731).
§ 62.111. Bonds or other security.
(a) A license will not be issued or remain in force until the licensee furnishes proof of a bond or other security. See section 2208(c)(1)(i) of the act (relating to requirements for natural gas suppliers).
(b) The purpose of the security requirement is to ensure the licensee’s financial responsibility. See section 2208(c)(1)(i) of the act.
(c) The amount and the form of the security, if not mutually agreed upon by the NGDC and the licensee, shall be based on the criteria established in this section. The criteria shall be applied in a nondiscriminatory manner. The Commission will periodically review the established criteria upon petition by any party. The NGDC shall include the rules, formulas and standards it uses to calculate and adjust security amounts in a tariff.
(1) The amount of the security should be reasonably related to the financial exposure imposed on the NGDC or supplier of last resort resulting from the default or bankruptcy of the licensee. The amount of security should reflect the difference between the cost of gas incurred by the NGDC or supplier of last resort and the amount payable by the licensee’s retail gas customers during one billing cycle.
(i) The amount of security established under this paragraph may be modified based on one or more of the following:
(A) The licensee’s past operating history on the NGDC’s system and on other NGDC systems, including the length of time that the licensee operated on the NGDC system, the number of customers served and past supply reliability problems.
(B) The licensee’s credit reports.
(C) The number and class of customers being served.
(D) Information that materially affects a licensee’s creditworthiness as set forth in subparagraph (ii)(A)—(E).
(E) The licensee’s demonstrated capability to provide the volume of natural gas necessary for its customers’ needs.
(ii) The amount of the security may be adjusted as circumstances warrant. The adjustments must be reasonable and based on one or more of the following criteria:
(A) A change in a licensee’s recent operating history on the NGDC system or on other NGDC systems that has materially affected NGDC system operation or reliability. A change that could materially affect NGDC system operation or reliability may occur when a supplier fails to deliver natural gas supply sufficient to meet its customers’ needs, or fails to comply with NGDC operational flow orders as defined in § 69.11 (relating to definitions).
(B) A change in a licensee’s credit reports that materially affects a licensee’s creditworthiness. A licensee’s creditworthiness could be materially affected when two of the following credit rating companies change the licensee’s credit rating:
(I) Dun & Bradstreet.
(II) Standard & Poor’s Rating Services, Inc.
(III) TransUnion LLC.
(IV) Equifax, Inc.
(V) Experian Information Solutions, Inc.
(C) A significant change in the number of customers served, in the volume of gas delivered, or in the unit price of natural gas or a change in the class of customers being served by the licensee. A change over a consecutive 30- day period of 25% in the number of customers served, in the volume of gas delivered or in the average unit price of natural gas would represent a significant change.
(D) A change in operational or financial circumstances that materially affects a licensee’s creditworthiness. A licensee’s creditworthiness could be materially affected when two of the following investment rating companies change the licensee’s rating of its issued securities from an investment grade or good rating to a speculative or moderate credit risk rating, and vice versa:
(I) Standard & Poor’s Rating Services, Inc.
(II) Moody’s Investment Service, Inc.
(III) Fitch, Inc.
(IV) A. M. Best Company, Inc.
(V) DBRS, Inc.
(E) A change in the licensee’s demonstrated capability to provide the volume of natural gas necessary for its customers’ needs that materially affects NGDC system operation or reliability. A change that could materially affect NGDC system operation or reliability may occur when a supplier fails to deliver natural gas supply sufficient to meet its customers’ needs on five separate occasions within a 30-day period, or fails to comply with NGDC operational flow orders as defined in § 69.11.
(2) The following legal and financial instruments and property shall be acceptable as security:
(i) Bond.
(ii) Irrevocable letter of credit.
(iii) Corporate, parental or other third-party guaranty.
(iv) Escrow account.
(v) Accounts receivable pledged or assigned to an NGDC by a licensee participating in the NGDC’s purchase of receivables program that has been approved by the Commission as being consistent with Commission orders, guidelines and regulations governing the programs.
(vi) Calls on capacity, netting NGDC gas supply purchases from the NGS against NGS security requirements, or other operational offsets as may be mutually agreed upon by the NGDC and the NGS.
(vii) Cash.
(3) In addition to the requirements in this section, small suppliers with annual operating revenues of less than $1 million may utilize real or personal property as security with the following supporting documentation:
(i) A verified statement from the licensee that it has clear title to the property and that the property has not been pledged as collateral, or otherwise encumbered in regard to any other legal or financial transaction.
(ii) A current appraisal report of the market value of the property.
(4) When practicable, the NGDC shall use applicable North American Energy Standards Board forms or language for financial and legal instruments that are used as security.
(5) The NGDC shall file an annual report with the Secretary no later than April 30 of each year. The report must contain the following information for the prior calendar year:
(i) The criteria that is used to establish the amount of security that an applicant must provide to the NGDC in order to be granted a license by the Commission.
(ii) The criteria that is used to determine the amount of security that a licensee must provide to ensure its financial responsibility in order to maintain a license.
(iii) The criteria that is used to determine that a change in the amount of security is needed for the licensee to maintain a license.
(iv) The number of instances in the last year that the NGDC determined that a change in the amount of security was needed for a licensee to maintain its license. For each instance, the following information shall be reported:
(A) The name of the licensee involved.
(B) The date of the NGDC’s determination.
(C) The reason for the determination.
(D) The licensee’s response to the NGDC determination.
(v) The types of legal instruments, financial instruments and property, real and personal, that the NGDC accepted as security for licensing purposes. For each security type reported, the following information shall be reported:
(A) The name of the applicant or licensee involved.
(B) The name and address of the bank, company or other entity that is acting as the surety or guarantor.
(C) The amount of security.
(D) The date that the security was posted.
(6) When an NGDC determines that an adjustment in the amount or type of security that a licensee must provide to maintain its license is warranted, the NGDC shall provide notice of its determination to the licensee in writing. The NGDC’s determination must be based on the criteria in paragraphs (1), (2) and (3). The licensee shall comply with the NGDC’s determination no later than 5 business days after the date that the licensee was served with notice of the NGDC’s determination. When the licensee disagrees with the NGDC’s determination, the licensee may file a dispute with the NGDC in accordance with paragraph (8).
(7) A licensee may request that the NGDC adjust the amount or type of security the licensee must provide to maintain its license. The licensee shall provide its request in writing to the NGDC. The request must be based on criteria in paragraphs (1), (2) and (3). The NGDC shall make its determination on the request and provide a written response to the licensee within 5 business days after the date that the request was made. When the NGDC agrees to the requested adjustment in security, the licensee shall post the security within 5 business days after the date that the licensee was served with notice of the NGDC’s determination. When the licensee disagrees with the NGDC’s determination, the licensee may file a dispute with the NGDC in accordance with paragraph (8).
(8) When there is a dispute relating to the form or amount of security, the applicant or licensee shall notify the NGDC of the dispute and attempt to resolve the dispute. If a resolution is not reached within 30 days after the date that the NGDC is notified of the dispute, the applicant or the licensee may:
(i) Submit the dispute to the Secretary for assignment to the appropriate bureau, office, or other designated unit for informal mediation and resolution. A party dissatisfied with the staff determination may file a petition for appeal from a decision made by the Bureau under § 5.44 (relating to petitions for appeal from staff) or may file a formal complaint with the Commission under § § 5.21 and 5.22 (relating to formal complaints generally; and content of formal complaint).
(ii) File a formal complaint with the Commission and request alternative dispute resolution by the Office of Administrative Law Judge.
(iii) File a formal complaint with the Commission and proceed with the litigation of the complaint.
(iv) File a petition with the Commission and request review of the criteria used by the NGDC.
(9) When a licensee submits a dispute or files a formal complaint relating to an adjustment in security by an NGDC, the following obligations apply:
(i) The licensee shall provide to the NGDC the adjusted security amount as directed by the NGDC. The licensee shall maintain the adjusted amount of security until the dispute or complaint is resolved or until directed otherwise by the Commission.
(ii) The licensee shall continue to operate on the NGDC system in accordance with system operation and business rules and practices until the dispute or complaint is resolved or until directed otherwise by the Commission.
(iii) The licensee shall cause to be delivered to the NGDC system natural gas supply in the volume necessary to fulfill its customers’ requirements and provide customer support services until the dispute or complaint is resolved or until directed otherwise by the Commission.
(iv) The NGDC shall permit the licensee to continue to operate on the NGDC system until the dispute or complaint is resolved or until directed otherwise by the Commission.
(d) The licensee shall submit to the Commission documentation demonstrating that it has complied with the bonding or security requirement. One copy of each bond, letter of credit, or other financial or legal instrument or document evidencing an agreement between the licensee and the NGDC shall be submitted to the Commission.
(e) Licensee liability for violations of 66 Pa.C.S. (relating to the Public Utility Code) and Commission orders and regulations is not limited by these security requirements.
Source The provisions of this § 62.111 amended December 31, 2010, effective January 1, 2011, 41 Pa.B. 30. Immediately preceding text appears at serial pages (314759) to (314760) and (318339).
Notes of Decisions Financial Security Determination
PUC has discretion to approve criteria to be used to determine the appropriate financial security based upon financial impact on natural gas distribution company (NGDC) by natural gas supplier default; criteria is for a ‘‘reasonably related’’ financial security requirement, not the worst case scenario as determined by the NGDC, which was contrary to the intentions of the statute to promote competition and choice in the natural gas industry. UGI Utilities v. Pennsylvania Public Utility Commission, 878 A.2d 186, 192 (Pa. Cmwlth. 2005).
Penalties
Natural gas distribution company did not present any evidence supporting its proposition that penalties were in any way related to the financial exposure that it would have in the event of natural gas supplier’s default or bankruptcy, which is a necessary requirement for including penalty as an element of financial security; additionally, there is no language in the Commission’s regulations regarding the inclusion of penalties in a calculation of security. UGI Utilities v. Pennsylvania Public Utility Commission, 878 A.2d 186, 193 (Pa. Cmwlth. 2005).
Public Utility Commission
The Pennsylvania Public Utility Commission is the administrative agency charged with regulating utilities under the Pennsylvania Code, and its expert interpretation of those issues is entitled to great deference unless clearly erroneous; when there is substantial evidence to support the PUC’s decision, the court will not substitute its discretion for the discretion of the PUC. UGI Utilities v. Pennsylvania Public Utility Commission, 878 A.2d 186, 192 (Pa. Cmwlth. 2005).
§ 62.112. Transfer or abandonment of license.
(a) A license may not be transferred without prior Commission approval. See section 2208(d) of the act (relating to requirements for natural gas suppliers). Approval for transfer shall be obtained by petition to the Commission. A license application shall be filed by the transferee at the same time that the petition for transfer is filed and demonstrate the transferee’s financial and technical fitness to render service under the transferred license.
(b) A licensee may not abandon its license without providing 90 days prior written notice to the Commission, the licensee’s customers, the affected distribution utilities and suppliers of last resort. The licensee shall provide written individual notice to its customers at approximately 90 days and 60 days preceding the effective date of the abandonment.
§ 62.113. License suspension; license revocation.
(a) A licensee shall comply with the applicable requirements of 66 Pa.C.S. (relating to the Public Utility Code) and Commission regulations and orders. Consistent with due process, a license may be suspended or revoked, and fines may be imposed against the licensee for:
(1) Failure to furnish and maintain a bond or other security.
(2) Failure to comply with the rules, regulations, orders or directives of the Department of Revenue.
(3) Failure to provide the address of its current principal office in this Commonwealth or of its registered agent.
(4) Failure to follow the principles in § 62.114 (relating to standards of conduct and disclosure for licensees).
(5) Violation of applicable provisions of 66 Pa.C.S., Commission regulations and lawful Commission orders. See section 2208(c)(2) of the act (relating to requirements for natural gas suppliers).
(6) Violation of Pennsylvania consumer protection law.
(b) The unauthorized transfer by an NGDC, or its affiliate, of a customer’s NGS without the customer’s express consent will result in a fine, or the suspension, or the revocation of the license of that NGDC’s affiliated NGS. See section 2206(b) of the act (relating to consumer protection and customer service).
(c) The unauthorized transfer by a licensed NGS, or its affiliate, of a customer’s NGS without the customer’s express consent will result in a fine, or the suspension, or the revocation of the license of that NGS.
§ 62.114. Standards of conduct and disclosure for licensees.
To protect the consumers of this Commonwealth, licensees shall adhere to the following principles in the provision of natural gas service:
(1) A licensee shall provide accurate information about its natural gas services using plain language and common terms in communications with consumers. When new terms are used, the terms shall be defined again using plain language.
(2) A licensee shall provide notification of change in conditions of service, intent to cease operation as an NGS, explanation of denial of service, proper handling of deposits and proper handling of complaints in accordance with this title.
(3) A licensee shall maintain the confidentiality of a consumer’s personal information including name, address and telephone number, and historic payment information, and provide the right of access by the consumer to the consumer’s own load and billing information.
(4) A licensee may not discriminate in the provision of natural gas as to availability and terms of service based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, and exercise of rights under the Consumer Credit Protection Act (15 U.S.C.A. § § 1601—1693c). See 15 U.S.C.A. § § 1691—1691f (relating to equal credit opportunity); and 12 CFR Part 202 (relating to equal credit opportunity)(Regulation B).
(e) A licensee is responsible for any fraudulent, deceptive or other unlawful marketing or billing acts performed by the licensee, its employees, agents or representatives. A licensee shall inform consumers of State consumer protection laws that govern the cancellation or rescission of natural gas supply contracts. See section 7 of the Unfair Trade Practices and Consumer Protection Law (73 P. S. § 201-7).
(f) A licensee shall comply with relevant Commission regulations, orders and directives that may be adopted.
Cross References This section cited in 52 Pa. Code § 62.113 (relating to license suspension; license revocation); 52 Pa. Code § 62.224 (relating to POR programs); 52 Pa. Code § 111.3 (relating to supplier liability for its agent); 52 Pa. Code § 111.5 (relating to agent training); and 52 Pa. Code § 111.12 (relating to consumer protection).
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