2208 - Requirements for natural gas suppliers.

     § 2208.  Requirements for natural gas suppliers.        (a)  License requirements.--No entity shall engage in the     business of a natural gas supplier unless it holds a license     issued by the commission. To the extent that a natural gas     distribution company provides natural gas supply service outside     of its chartered or certificated territory, it also must hold a     license. A license shall not be required for customers who make     de minimis incidental sales or resales to themselves, an     affiliate or other nonresidential retail gas customers.        (b)  License application and issuance.--An application for a     natural gas supplier license shall be made to the commission in     writing, be verified by oath or affirmation and be in such form     and contain such information as the commission may, by rule or     order, require. A license shall be issued to any applicant,     authorizing the whole or any part of the service covered by the     application, if it is found that the applicant is fit, willing     and able to perform properly the service proposed and to conform     to the applicable provisions of this title and the orders and     regulations of the commission, including those concerning     standards and billing practices, and that the proposed service,     to the extent authorized by the license, will be consistent with     the public interest. Otherwise, such application shall be     denied.        (c)  Financial fitness.--            (1)  In order to ensure the safety and reliability of the        natural gas supply service in this Commonwealth, no natural        gas supplier license shall be issued or remain in force        unless the applicant or holder, as the case may be, complies        with all of the following:                (i)  Furnishes a bond or other security in a form and            amount to ensure the financial responsibility of the            natural gas supplier. The criteria each natural gas            distribution company shall use to determine the amount            and form of such bond or other security shall be set            forth in the natural gas distribution company's            restructuring filing. In approving the criteria,            commission considerations shall include, but not be            limited to, the financial impact on the natural gas            distribution company or an alternative supplier of last            resort of a default or subsequent bankruptcy of a natural            gas supplier. The commission shall periodically review            the criteria upon petition by any party. The amount and            form of the bond or other security may be mutually agreed            to between the natural gas distribution company or the            alternate supplier of last resort and the natural gas            supplier or, failing that, shall be determined by            criteria approved by the commission.                (ii)  Provides the commission with the address of the            participant's principal office in this Commonwealth or            the address of the participant's registered agent in this            Commonwealth, the latter being the address at which the            participant may be served process.            (2)  Failure of a natural gas supplier to comply with any        provision of this chapter or the rules, regulations, orders        or directives of the Department of Revenue or of the        commission, including, but not limited to, engaging in        anticompetitive behavior, shall be cause for the commission        to revoke the license of the natural gas supplier.        (d)  Transferability of licenses.--No license issued under     this chapter may be transferred without prior commission     approval.        (e)  Form of regulation of natural gas suppliers.--Except     where a natural gas supplier serves as a supplier of last     resort, the commission may forbear from extending its regulation     of natural gas suppliers beyond licensing, bonding, reliability     and consumer services and protections, including all applicable     portions of 52 Pa. Code Ch. 56 (relating to standards and     billing practices for residential utility service). Subject to     the provisions of section 2207 (relating to obligation to     serve), nothing in this section shall preclude a natural gas     supplier, upon appropriate and reasonable notice to the retail     gas customer, supplier of last resort and the natural gas     distribution company, from canceling its contract with any     customer for legal cause, subject to the customer's right to     have continued service from the supplier of last resort.        (f)  Availability of the service of natural gas suppliers.--     Prior to licensing any natural gas supplier, the commission     shall set forth standards to ensure that all customer classes     may choose to purchase natural gas from a natural gas supplier.     The commission shall also ensure that natural gas suppliers     comply with applicable provisions of 52 Pa. Code Ch. 56.        (g)  Open and nondiscriminatory access.--In addition to     meeting the license requirements applicable to applicants under     subsection (b), a municipal corporation shall, before it is     permitted to provide natural gas supply services as a natural     gas supplier, demonstrate, and the commission shall determine,     that, by the date of the issuance of the license, it will     provide other natural gas suppliers open and nondiscriminatory     access to its gas distribution system under standards that are     comparable to this title, taking into consideration the     particular circumstances of the municipal corporation's     ownership and/or operation of the gas distribution system.        Cross References.  Section 2208 is referred to in section     2212 of this title.