7405 - Customer choice in electric cooperative service territories.

     § 7405.  Customer choice in electric cooperative service                territories.        (a)  General rule.--            (1)  An electric cooperative corporation shall provide        open and nondiscriminatory access and allow other electric        generation suppliers that have been licensed or certified by        the commission or jurisdictional public utilities to utilize        the cooperative's facilities to make sales to end-use        customers it serves. A person that, on or after the effective        date of this chapter, receives retail electric service at an        electric-consuming facility from an electric cooperative in        this Commonwealth or owns or occupies an electric-consuming        facility within the service territory of an electric        cooperative corporation shall have the right to purchase and        receive electric generation from another source at the        conclusion of a four-year transition and phase-in period        beginning on the effective date of this chapter and ending        January 1, 2001. The following schedule for phased        implementation of retail access shall be adhered to unless        the commission should determine to extend the transition and        phase-in period for its jurisdictional electric utilities        under 66 Pa.C.S. § 2806 (relating to implementation, pilot        programs and performance-based rates), in which case the        transition and phase-in period for electric cooperative        corporations shall be substantially similar to that        established by the commission for direct access to the        competitive electric generation market by customers of        electric utilities:                (i)  As of January 1, 1999, a maximum of 33% of the            peak load of each customer class shall have the            opportunity for direct access.                (ii)  As of January 1, 2000, a maximum of 66% of the            peak load of each customer class shall have the            opportunity for direct access.                (iii)  As of January 1, 2001, all customers of            electric cooperative corporations in this Commonwealth            shall have the opportunity for direct access.            (2)  If the commission establishes a phase-in period        which is not uniform among electric utilities, then the        phase-in period for persons in the service territories of        electric cooperative corporations may be as long as that of        the longest phase-in period permitted by the commission. No        electric cooperative corporation may utilize the transmission        or distribution system of an electric utility regulated by        the commission for the purpose of providing generation        electric service until the electric cooperative begins its        phase-in period. No electric utility regulated by the        commission may utilize the transmission or distribution        system of an electric cooperative corporation until the        electric utility begins its phase-in period other than for        pilot programs.            (3)  Electric cooperative corporations may develop retail        pilot programs for their own service territories.            (4)  Customer bills issued by an electric cooperative        corporation shall contain unbundled charges sufficient to        enable the customer to determine the generation component of        and basis for those charges. Electric generation shall be        delivered to the departing member by the electric cooperative        which has the exclusive right to provide retail electric        service in such area under Chapter 73 (relating to electric        cooperative corporations) at the nondiscriminatory prices,        terms and conditions determined by the electric cooperative        corporation.            (5)  It shall be the duty of an electric cooperative        corporation which is a borrower from the Rural Utilities        Service of the United States Department of Agriculture to        maintain the integrity and safety of its distribution system        in a manner to provide service to all customers connected to        such system consistent with standards established by the        Rural Utilities Service. It shall be the duty of an electric        cooperative corporation which is not a borrower from the        Rural Utilities Service to maintain the integrity and safety        of its distribution system in a manner to provide service to        all customers connected to such system consistent with        standards of the National Electric Safety Code.            (6)  The right in this subsection to take generation        service from another source and the duty of an electric        cooperative corporation to deliver service shall be expressly        subject to and contingent upon the full advance satisfaction        by a departing member of all of the following conditions,        unless waived by the electric cooperative corporation:                (i)  The departing member must give written notice of            intent to receive generation service from another source            to the electric cooperative corporation.                (ii)  With the written notice of intent required by            subparagraph (i), the departing member must provide to            the electric cooperative corporation written evidence            reasonably satisfactory to the electric cooperative            corporation that the departing member has acquired all            necessary transmission services and related ancillary            services as may be necessary to transmit the generation            service from the alternative electric supplier to the            distribution system of the electric cooperative            corporation.                (iii)  The departing member must have made all            payments for electric service or other services or            products rendered to date by the electric cooperative            corporation and must not otherwise be in violation or            default of any membership requirement, rule or regulation            of the electric cooperative corporation.                (iv)  The departing member or the provider of the            competing generation source must make full payment of a            transition surcharge or transition surcharges to each            electric cooperative corporation which provides            distribution, transmission or generation service,            directly or indirectly, to the departing member or            associated electric consuming facility. During the            conduct of a pilot program, the electric cooperative            corporation may choose not to apply the transition            surcharge to departing members. The duty to pay a            transition surcharge by a departing member and the right            of an electric cooperative corporation to collect a            transition surcharge shall not apply to departing members            who become new members of an electric cooperative            corporation following the expiration of the phase-in            provided for in this chapter.        (b)  Effectiveness of existing contracts.--Notwithstanding     the rights set forth in subsection (a), where an agreement for     electric service evidenced by a signed writing between an     electric cooperative corporation and any person exists prior to     the effective date of this chapter, the person shall be bound by     its terms and conditions and shall not have the right to receive     generation service from another source until the expiration of     the term of the agreement or otherwise pursuant to the terms and     conditions of the agreement.