PROPOSED RULEMAKING
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[ 52 PA. CODE CH. 54 ]
Advanced Notice of Proposed Rulemaking Order
[40 Pa.B. 1763]
[Saturday, April 3, 2010]Public Meeting held
February 25, 2010Commissioners Present: James H. Cawley, Chairperson; Tyrone J. Christy, Vice Chairperson; Kim Pizzingrilli; Wayne E. Gardner; Robert F. Powelson
Advance Notice of Proposed Rulemaking for Revision of Electric Distribution Company Code of Conduct in
52 Pa. Code § 54.122; Doc. No. L-2010-2160942
Advance Notice of Proposed Rulemaking Order By The Commission:
Following the passage of the Electricity Generation Customer Choice and Competition Act1 in 1996, the Public Utility Commission (Commission) established competitive safeguards to govern the relationships between electric distribution companies (EDCs), electric generation suppliers (EGSs) and retail electric customers. A Code of Conduct was codified in § 54.122 (relating to code of conduct), and intended to assure the provision of direct access on equal and nondiscriminatory terms, to prevent cross subsidization between EDCs and their affiliated suppliers, to prohibit unfair or deceptive practices by suppliers, and to establish and maintain an effective and vibrant competitive market in the purchase and sale of retail electric energy in Pennsylvania. The provisions of this Code of Conduct became effective July 8, 2000, and have not been revised in the interim.2
The Code of Conduct currently incorporates the following provisions:
• A prohibition against an EDC giving an affiliate EGS any preference in the processing of a request for competitive EGS service, or the disclosure or dissemination of customer information.
• A prohibition against an EDC or EGS engaging in false or deceptive advertising to customers with respect to retail choice.
• A prohibition against linking electric distribution service to the purchase, lease or use of any goods or services offered by the EDC or its affiliates, or an indirect or direct commitment not to deal with a non-affiliated EGS.
• A prohibition against implying to customers that delivery services provided to affiliate EGSs are superior to non-affiliated EGSs.
• A requirement that an EDC provide all regulated services and apply tariffs to unaffiliated EGSs, and share any information about the operational status and availability of its distribution system, in the same manner as it would to an affiliated EGS.
• A requirement that an EDC provide customers with a list of licensed EGSs upon request.
• A requirement that an EDC adopt these provisions as policy and train and instruct its employees.
• A dispute resolution process for EDCs and EGSs relating to violations of this Code of Conduct.
The Code of Conduct focuses on the conduct of EDCs, and is designed to prevent EDCs from giving improper preferences to affiliated EGSs in the competitive retail market.
In the time since the Code of Conduct took effect, much has changed in the electric industry:
• Rate caps for a significant portion of Pennsylvanians have expired, with the remaining caps to end in less than 9 months.
• A large number of EGSs have been licensed and are serving a considerable amount of the electric load throughout this Commonwealth.
• The General Assembly has passed and the Commission has implemented sweeping legislation mandating the use of alternative energy sources and energy efficiency and conservation measures.
• There have been numerous technological advances related to the infrastructure used to provide electric service and the exchange of data related to the provision of that service.
In this context, and pursuant to a Motion of Commissioner Robert F. Powelson adopted at the Public Meeting of February 25, 2010, the Commission elected to undertake a review of the Code of Conduct. The Commission seeks comments from all interested parties on appropriate revisions to this regulation. In particular, comments are invited on how well the existing Code of Conduct has operated to date, whether the existing language should be amended and why, and whether there are other areas that the EDC Code of Conduct should address to fulfill the purposes of Chapter 28.3 The Commission's evaluation will include a review of similar regulations in other jurisdictions with retail electric choice to develop best practices on these issues.4
Accordingly, pursuant to 66 Pa.C.S. §§ 501 and 2804, the Commission issues this Advance Notice of Proposed Rulemaking for comment; Therefore,
It Is Ordered That:
1. This Advance Notice of Proposed Rulemaking be issued to solicit comments regarding revisions to the Code of Conduct in 52 Pa. Code § 54.122.
2. This Advance Notice of Proposed Rulemaking be published in the Pennsylvania Bulletin for review and comment, with comments due 45 days from the date of publication and reply comments due 30 days thereafter.
3. An original and 15 copies of any comments or reply comments be served upon the Secretary, Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265.
4. The contact person for this rulemaking is Shane Rooney, Law Bureau, (717) 787-2871.
5. A copy of this Advance Notice of Proposed Rulemaking shall be served on the Office of Consumer Advocate, the Office of Small Business Advocate, all jurisdictional electric distribution companies and all licensed electric generation suppliers.
JAMES J. McNULTY,
Secretary
[Pa.B. Doc. No. 10-603. Filed for public inspection April 2, 2010, 9:00 a.m.] _______
1 66 Pa.C.S. §§ 2801—2812.
2 30 Pa.B. 3445.
3 Comments proposing changes or additions to the existing regulations should include regulatory language to accomplish those changes or additions.
4 The Commission has promulgated separate regulations that govern standards and pricing practices for retail electric service, bill format for residential and small business customers, disclosure statements for residential and small business customers, EGS marketing and sales activities, privacy of customer information, and the like 52 Pa. Code §§ 54.1—54.9. Revisions to those regulations are outside the scope of this rulemaking.
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