Tentative Pa. Order Would Cancel Licenses of 4 Retail Suppliers, ~30 Brokers
June 22,2020
A tentative order from the Pennsylvania PUC would cancel the licenses of four retail electric suppliers, and about 30 brokers, for allegedly not filing proof of financial security in the form required by the PUC
The PUC noted that, "While we recognize that the COVID-19 pandemic has provided some challenges related to the continuance of normal business operations, it is imperative that the Commission have an approved financial security in place with each EGS to ensure compliance with 52 Pa. Code § 54.40(d)."
On March 25, 2020, Commission staff issued an EGS Financial Security Filing Guidance Memo that stated the following:
• Where practical, EGSs should file an original bond, letter of credit, continuation certificate, amendment, or other financial instrument. These original financial instruments should display “wet” signatures or digital signatures, preferably in blue ink, and display a “raised seal” or original notary stamp.
• EGSs should email a copy of the original financial instrument directly to Secretary Chiavetta at rchiavetta@pa.gov. Secretary Chiavetta has waived the restriction on emailed filings that contain confidential and proprietary material. As such, financial security instruments will be permitted to be filed by email for the duration of the Commission’s work from home order.
• If an EGS is unable to acquire a “raised seal” or original notary stamp on the financial security during the pendency of the COVID-19 emergency, the Secretary’s Bureau will not reject the financial security.
• If an EGS has been granted a reduction in its financial security, and it is time to renew the annual reduction, please file an original annual compliance filing with the Secretary’s Bureau and a copy via email at rchiavetta@pa.gov.
• Please note that the requirement that EGSs maintain a valid financial security on file with the Commission, remains in effect.
• Be advised that emailed financial security instruments -- after review and acceptance of the Secretary’s Bureau and the Bureau of Technical Utility Services -- will be provisionally approved by the Commission until Commission staff resume working in the Keystone Building. EGSs must still mail the original bond with original signatures and notary stamp as per the Commission’s normal practice.
The PUC's tentative order listed four suppliers and several brokers which allegedly emailed a copy of their financial security to Secretary Chiavetta as directed in the staff memo, but allegedly failed to submit an original financial security to the Commission.
The PUC's tentative order further listed about 25 brokers which have allegedly not provided an original approved financial security, and allegedly also have not emailed a copy of the original financial instrument to Secretary Chiavetta as directed by the staff memo.
The PUC's tentative order listing such EGSs can be found here. Note that the order is tentative, and EGSs may challenge the PUC's tentative findings. Past tentative PUC orders concerning financial security have included erroneous and/or outdated info, so inclusion on the list should not be deemed a formal finding of non-compliance
