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.