As anticipated, Pennsylvania State Rep. Robert Godshall has introduced a bill which would limit variable rate increases by electric generation suppliers, and which would prohibit EGSs from serving utility assistance program customers, unless certain conditions were met.

The bill, HB 844, provides that, "The kilowatt hour rate charged to a residential or small commercial customer under a contract for a variable-rate product, other than an index-based product, may not be increased by more than 30% of the kilowatt hour rate charged during the preceding billing cycle."

Aside from TOU products, EGSs would be prohibited from providing an index-based product to residential customers.

EGSs would be required to post their current variable rates online, and make such rates accessible via a toll-free telephone number, but the bill would not require EGSs to send written notice of variable rate changes to customers affirmatively electing a variable rate product, except where the customer specifically requests written notice.

The bill provides that an electric generation supplier may only serve a customer in an electric distribution company's customer assistance program if the EGS provides such customer with a fixed rate equal to or less than the default service price at the time the contract is executed.

For all residential and small commercial customers not making an affirmative election at the end of a fixed price contract, the EGS may transition the customer to a month-to-month "transition product" whose rate may change each month. This variable transition product may not include a cancellation fee.

The EGS would be required to provide written notice (or alternative notice agreed to by the customer) 30 days in advance of any change in rate under the variable transition product. A month-to-month transition product, "may not be increased more than 30% of the kilowatt-hour rate charges during the preceding bill cycle."

The EGS may also elect to transition customers at the end of a fixed rate product, who do not make an affirmative election, to a new fixed rate product, and this new fixed rate product may include an early termination fee up to $100.

The bill requires that any promotional rates for variable products must be provided for no less than 60 days.

HB 844 sets forth various contract and disclosure requirements, including a requirement that the variable rate disclosure state that, "this rate may increase by no more than (insert percentage of rate cap) per billing cycle."

The bill would require the PUC to publicly post EGSs' variable rate histories, as well as, "[t]he percentage rate of customer complaints filed against each electric generation supplier and the disposition of the complaints."

HB 844 provides that an EGS, "may not provide service to a residential or small commercial customer without the customer's written signature on a contract, electronic consent, authorization form or other form of verification as permitted by the commission to initiate service, renew service or switch service."

Link to HB 844

Tags:
Pennsylvania   Variable Rates   Sales & Marketing  

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