2803 - Definitions.

     § 2803.  Definitions.        The following words and phrases when used in this chapter     shall have the meanings given to them in this section unless the     context clearly indicates otherwise:        "Aggregator" or "market aggregator."  An entity, licensed by     the commission, that purchases electric energy and takes title     to electric energy as an intermediary for sale to retail     customers.        "Bilateral contract."  An agreement, as approved by the     commission, reached by two parties, each acting in its own     independent self-interest, as a result of negotiations free of     undue influence, duress or favoritism, in which the electric     energy supplier agrees to sell and the electric distribution     company agrees to buy a quantity of electric energy at a     specified price for a specified period of time under terms     agreed to by both parties, and which follows a standard industry     template widely accepted in the industry or variations thereto     accepted by the parties. Standard industry templates may include     the EEI Master Agreement for physical energy purchases and sales     and the ISDA Master Agreement for financial energy purchases and     sales.        "Broker" or "marketer."  An entity, licensed by the     commission, that acts as an agent or intermediary in the sale     and purchase of electric energy but that does not take title to     electric energy.        "Competitive transition charge."  A nonbypassable charge     applied to the bill of every customer accessing the transmission     or distribution network which (charge) is designed to recover an     electric utility's transition or stranded costs as determined by     the commission under sections 2804 (relating to standards for     restructuring of electric industry) and 2808 (relating to     competitive transition charge).        "Consumer."  A retail electric customer.        "Customer."  A retail electric customer.        "Default service provider."  An electric distribution company     within its certified service territory or an alternative     supplier approved by the commission that provides generation     service to retail electric customers who:            (1)  contract for electric power, including energy and        capacity, and the chosen electric generation supplier does        not supply the service; or            (2)  do not choose an alternative electric generation        supplier.        "Direct access."  The right of electric generation suppliers     and end-use customers to utilize and interconnect with the     electric transmission and distribution system on a     nondiscriminatory basis at rates, terms and conditions of     service comparable to the transmission and distribution     companies' own use of the system to transport electricity from     any generator of electricity to any end-use customer.        "Electric distribution company."  The public utility     providing facilities for the jurisdictional transmission and     distribution of electricity to retail customers, except building     or facility owners/operators that manage the internal     distribution system serving such building or facility and that     supply electric power and other related electric power services     to occupants of the building or facility.        "Electric generation supplier" or "electricity supplier." A     person or corporation, including municipal corporations which     choose to provide service outside their municipal limits except     to the extent provided prior to the effective date of this     chapter, brokers and marketers, aggregators or any other     entities, that sells to end-use customers electricity or related     services utilizing the jurisdictional transmission or     distribution facilities of an electric distribution company or     that purchases, brokers, arranges or markets electricity or     related services for sale to end-use customers utilizing the     jurisdictional transmission and distribution facilities of an     electric distribution company. The term excludes building or     facility owner/operators that manage the internal distribution     system serving such building or facility and that supply     electric power and other related power services to occupants of     the building or facility. The term excludes electric cooperative     corporations except as provided in 15 Pa.C.S. Ch. 74 (relating     to generation choice for customers of electric cooperatives).        "End-use customer."  A retail electric customer.        "Reliability."  Includes adequacy and security. As used in     this definition, "adequacy" means the provision of sufficient     generation, transmission and distribution capacity so as to     supply the aggregate electric power and energy requirements of     consumers, taking into account scheduled and unscheduled outages     of system facilities; and "security" means designing,     maintaining and operating a system so that it can handle     emergencies safely while continuing to operate.        "Renewable resource."  Includes technologies such as solar     photovoltaic energy, solar thermal energy, wind power, low-head     hydropower, geothermal energy, landfill and mine-based methane     gas, energy from waste and sustainable biomass energy.        "Retail customer."  A retail electric customer.        "Retail electric customer."  A direct purchaser of electric     power. The term excludes an occupant of a building or facility     where the owners/operators manage the internal distribution     system serving such building or facility and supply electric     power and other related power services to occupants of the     building or facility; where such owners/operators are direct     purchasers of electric power; and where the occupants are not     direct purchasers.        "Transition or stranded costs."  An electric utility's known     and measurable net electric generation-related costs, determined     on a net present value basis over the life of the asset or     liability as part of its restructuring plan, which traditionally     would be recoverable under a regulated environment but which may     not be recoverable in a competitive electric generation market     and which the commission determines will remain following     mitigation by the electric utility. This term includes:            (1)  Regulatory assets and other deferred charges        typically recoverable under current regulatory practice, the        unfunded portion of the utility's projected nuclear        generating plant decommissioning costs and cost obligations        under contracts with nonutility generating projects which        have received a commission order, the recoverability of which        shall be determined under section 2808(c)(1) (relating to        competitive transition charge).            (2)  Prudently incurred costs related to cancellation,        buyout, buydown or renegotiation of nonutility generating        projects consistent with section 527 (relating to        cogeneration rules and regulations), the recoverability of        which shall be determined pursuant to section 2808(c)(2).            (3)  The following costs, the recoverability of which        shall be determined pursuant to section 2808(c)(3):                (i)  Net plant investments and costs attributable to            the utility's existing generation plants and facilities.                (ii)  The utility's disposal of spent nuclear fuel.                (iii)  The utility's long-term purchase power            commitments other than the costs defined in paragraphs            (1) and (2).                (iv)  Retirement costs attributable to the utility's            existing generating plants other than the costs defined            in paragraph (1).                (v)  Other transition costs of the utility, including            costs of employee severance, retraining, early            retirement, outplacement and related expenses, at            reasonable levels, for employees who are affected by            changes that occur as a result of the restructuring of            the electric industry occasioned by this chapter.     The term includes any costs attributable to physical plants no     longer used and useful because of the transition to retail     competition. The term excludes any amounts previously disallowed     by the commission as imprudently incurred. To the extent that     the recoverability of amounts that are sought to be included as     transition or stranded costs are subject to appellate review as     of the time of the commission determination, any determination     to include such costs shall be reversed to the extent required     by the results of that appellate review.        "Transmission and distribution costs."  All costs directly or     indirectly incurred to provide transmission and distribution     services to retail electric customers. This includes the return     of and return on facilities and other capital investments     necessary to provide transmission and distribution services and     associated operating expenses, including applicable taxes.        "Universal service and energy conservation."  Policies,     protections and services that help low-income customers to     maintain electric service. The term includes customer assistance     programs, termination of service protection and policies and     services that help low-income customers to reduce or manage     energy consumption in a cost-effective manner, such as the low-     income usage reduction programs, application of renewable     resources and consumer education.     (Oct. 15, 2008, P.L.1592, No.129, eff. 30 days)        2008 Amendment.  Act 129 added the defs. of "bilateral     contract" and "default service provider." See the preamble to     Act 129 of 2008 in the appendix to this title for special     provisions relating to legislative finding and declarations.        Cross References.  Section 2803 is referred to in section     1403 of this title.