2807 - Duties of electric distribution companies.

     § 2807.  Duties of electric distribution companies.        (a)  General rule.--Each electric distribution company shall     maintain the integrity of the distribution system at least in     conformity with the National Electric Safety Code and such other     standards practiced by the industry in a manner sufficient to     provide safe and reliable service to all customers connected to     the system consistent with this title and the commission's     regulations. In performing such duties, the electric     distribution company shall implement procedures to require all     electric generation suppliers to deliver energy to the electric     distribution company at locations and in amounts which are     adequate to meet the energy supplier's obligations to its     customers. Subject to commission approval, the electric     distribution company may require that the customer install, at     the customer's expense, enhanced metering capability sufficient     to match the energy delivered by the electric generation     suppliers with consumption by the customer.        (b)  Procedures for review by the commission.--There shall be     a rebuttable presumption that the electric distribution company     has the ability to receive energy at all points on its system     sufficient to meet the needs of all electric generation     suppliers' customers on its system. The electric distribution     company shall not have an obligation to install nonstandard     facilities, either as to type or location, for the purpose of     receiving energy from the energy supplier unless the energy     supplier or its customer pays the full cost of these facilities.     Nothing in this chapter shall prevent the electric distribution     company from upgrading its system to meet changing customer     requirements consistent with the requirements of section 1501     (relating to character of service and facilities), and the     commission may establish incentive programs to encourage such     system upgrades. Disputes concerning facilities shall be subject     to the jurisdiction of the commission and may be initiated by     the filing of a complaint under section 701 (relating to     complaints) by the electric generation supplier or the customer.        (c)  Customer billing.--Subject to the right of an end-use     customer to choose to receive separate bills from its electric     generation supplier, the electric distribution company may be     responsible for billing customers for all electric services,     consistent with the regulations of the commission, regardless of     the identity of the provider of those services.            (1)  Customer bills shall contain unbundled charges        sufficient to enable the customer to determine the basis for        those charges.            (2)  If services are provided by an entity other than the        electric distribution company, the entity that provides those        services shall furnish to the electric distribution company        billing data sufficient to enable the electric distribution        company to bill customers.            (3)  The electric distribution company shall not be        required to forward payment to entities providing services to        customers, and on whose behalf the electric distribution        company is billing those customers, before the electric        distribution company has received payment for those services        from customers.        (d)  Consumer protections and customer service.--The electric     distribution company shall continue to provide customer service     functions consistent with the regulations of the commission,     including meter reading, complaint resolution and collections.     Customer services shall, at a minimum, be maintained at the same     level of quality under retail competition.            (1)  The commission shall establish regulations to ensure        that an electric distribution company does not change a        customer's electricity supplier without direct oral        confirmation from the customer of record or written evidence        of the customer's consent to a change of supplier.            (2)  The commission shall establish regulations to        require each electric distribution company, electricity        supplier, marketer, aggregator and broker to provide adequate        and accurate customer information to enable customers to make        informed choices regarding the purchase of all electricity        services offered by that provider. Information shall be        provided to consumers in an understandable format that        enables consumers to compare prices and services on a uniform        basis.            (3)  Prior to the implementation of any restructuring        plan under section 2806 (relating to implementation, pilot        programs and performance-based rates), each electric        distribution company, in conjunction with the commission,        shall implement a consumer education program informing        customers of the changes in the electric utility industry.        The program shall provide consumers with information        necessary to help them make appropriate choices as to their        electric service. The education program shall be subject to        approval by the commission.        (e)  Obligation to serve.--A default service provider's     obligation to provide electric generation supply service     following the expiration of a generation rate cap specified     under section 2804(4) (relating to standards for restructuring     of electric industry) or a restructuring plan under section     2806(f) is revised as follows:            (1)  While an electric distribution company collects        either a competitive transition charge or an intangible        transition charge or until 100% of its customers have choice,        whichever is longer, the electric distribution company shall        continue to have the full obligation to serve, including the        connection of customers, the delivery of electric energy and        the production or acquisition of electric energy for        customers.            (2)  (Deleted by amendment).            (3)  (Deleted by amendment).            (3.1)  Following the expiration of an electric        distribution company's obligation to provide electric        generation supply service to retail customers at capped        rates, if a customer contracts for electric generation supply        service and the chosen electric generation supplier does not        provide the service or if a customer does not choose an        alternative electric generation supplier, the default service        provider shall provide electric generation supply service to        that customer pursuant to a commission-approved competitive        procurement plan. The electric power acquired shall be        procured through competitive procurement processes and shall        include one or more of the following:                (i)  Auctions.                (ii)  Requests for proposal.                (iii)  Bilateral agreements entered into at the sole            discretion of the default service provider which shall be            at prices which are:                    (A)  no greater than the cost of obtaining                generation under comparable terms in the wholesale                market, as determined by the commission at the time                of execution of the contract; or                    (B)  consistent with a commission-approved                competition procurement process. Any agreement                between affiliated parties shall be subject to review                and approval of the commission under Chapter 21                (relating to relations with affiliated interests). In                no case shall the cost of obtaining generation from                any affiliated interest be greater than the cost of                obtaining generation under comparable terms in the                wholesale market at the time of execution of the                contract.            (3.2)  The electric power procured pursuant to paragraph        (3.1) shall include a prudent mix of the following:                (i)  Spot market purchases.                (ii)  Short-term contracts.                (iii)  Long-term purchase contracts, entered into as            a result of an auction, request for proposal or bilateral            contract that is free of undue influence, duress or            favoritism, of more than four and not more than 20 years.            The default service provider shall have sole discretion            to determine the source and fuel type. Long-term purchase            contracts under this subparagraph may not constitute more            than 25% of the default service provider's projected            default service load unless the commission, after a            hearing, determines for good cause that a greater portion            of load is necessary to achieve least cost procurement.            This subparagraph shall not apply to contracts executed            under paragraph (5).            (3.3)  The commission may determine that a contract is        required to be extended for a longer term of up to 20 years,        if the extension is necessary to ensure adequate and reliable        service at least cost to customers over time.            (3.4)  The prudent mix of contracts entered into pursuant        to paragraphs (3.2) and (3.3) shall be designed to ensure:                (i)  Adequate and reliable service.                (ii)  The least cost to customers over time.                (iii)  Compliance with the requirements of paragraph            (3.1).            (3.5)  Except as set forth in paragraph (5)(ii), the        provisions of this section shall apply to any type of energy        purchased by a default service provider to provide electric        generation supply service, including energy or alternative        energy portfolio standards credits required to be purchased        under the act of November 30, 2004 (P.L.1672, No.213), known        as the Alternative Energy Portfolio Standards Act. The        commission shall apply paragraph (3.4) to comparable types of        energy sources.            (3.6)  The default service provider shall file a plan for        competitive procurement with the commission and obtain        commission approval of the plan considering the standards in        paragraphs (3.1), (3.2), (3.3) and (3.4) before the        competitive process is implemented. The commission shall hold        hearings as necessary on the proposed plan. If the commission        fails to issue a final order on the plan within nine months        of the date that the plan is filed, the plan shall be deemed        to be approved and the default service provider may implement        the plan as filed. Costs incurred through an approved        competitive procurement plan shall be deemed to be the least        cost over time as required under paragraph (3.4)(ii).            (3.7)  At the time the commission evaluates the plan and        prior to approval, in determining if the default electric        service provider's plan obtains generation supply at the        least cost, the commission shall consider the default service        provider's obligation to provide adequate and reliable        service to customers and that the default service provider        has obtained a prudent mix of contracts to obtain least cost        on a long-term, short-term and spot market basis and shall        make specific findings which shall include the following:                (i)  The default service provider's plan includes            prudent steps necessary to negotiate favorable generation            supply contracts.                (ii)  The default service provider's plan includes            prudent steps necessary to obtain least cost generation            supply contracts on a long-term, short-term and spot            market basis.                (iii)  Neither the default service provider nor its            affiliated interest has withheld from the market any            generation supply in a manner that violates Federal law.            (3.8)  Notwithstanding sections 508 (relating to power of        the commission to vary, reform and revise contracts) and 2102        (relating to approval of contracts with affiliated        interests), the commission may modify contracts or disallow        costs only when the party seeking recovery of the costs of a        procurement plan is, after hearing, found to be at fault for        the following:                (i)  not complying with the commission-approved            procurement plan; or                (ii)  the commission of fraud, collusion or market            manipulation with regard to these contracts.            (3.9)  The default service provider shall have the right        to recover on a full and current basis, pursuant to a        reconcilable automatic adjustment clause under section 1307        (relating to sliding scale of rates; adjustments), all        reasonable costs incurred under this section and a        commission-approved competitive procurement plan.            (4)  If a customer that chooses an alternative supplier        and subsequently desires to return to the local distribution        company for generation service, the local distribution        company shall treat that customer exactly as it would any new        applicant for energy service.            (5)  (i)  Notwithstanding paragraph (3.1), the electric            distribution company or commission-approved alternative            supplier may, in its sole discretion, offer large            customers with a peak demand of 15 megawatts or greater            at one meter at a location in its service territory any            negotiated rate for service at all of the customers'            locations within the service territory for any duration            agreed upon by the electric distribution company or            commission-approved alternative supplier and the large            customer. The commission shall permit, but shall not            require, an electric distribution company or commission-            approved alternative supplier to provide service to large            customers under this paragraph. Contract rates entered            into under this paragraph shall be subject to review by            the commission in order to ensure that all costs related            to the rates are borne by the parties to the contract and            that no costs related to the rates are borne by other            customers or customer classes. If no costs related to the            rates are borne by other customers or customer classes,            the commission shall approve the contract within 90 days            of its filing, or it shall be deemed approved by            operation of law upon expiration of the 90 days.            Information submitted under this paragraph shall be            subject to the commission's procedures for the filing of            confidential and proprietary information.                (ii)  For purposes of providing service under this            paragraph to customers with a peak demand of 20 megawatts            or greater at one meter at a location within that            distribution company's service territory, an electric            distribution company that has completed its restructuring            transition period as of the effective date of this            paragraph may, in its sole discretion, acquire an            interest in a generation facility or construct a            generation facility specifically to meet the energy            requirements of the customers, including the electric            requirements of the customers' other billing locations            within its service territory. The electric distribution            company must commence construction of the generation            facility or contract to acquire the generation interest            within three years after the effective date of this            paragraph, except that the electric distribution company            may add to the generation facilities it commenced            construction or contracted to acquire after this three-            year period to serve additional load of customers for            whom it commenced construction or contracted to acquire            generation within three years. Nothing in this paragraph            requires or authorizes the commission to require an            electric distribution company to commence construction or            acquire an interest in a generation facility. The            electric distribution company's interest in the            generation facility it built or contracted to acquire            shall be no larger than necessary to meet peak demand of            customers served under this subparagraph. During times            when the customer's demand is less than the electric            distribution company's generation interest, the electric            distribution company may sell excess power on the            wholesale market. At no time shall the costs associated            with the generating facility interests be included in            rate base or otherwise reflected in rates. The generation            facility interests shall not be commission-regulated            assets.            (6)  A default service plan approved by the commission        prior to the effective date of this section shall remain in        effect through its approved term. At its sole discretion, the        default service provider may propose amendments to its        approved plan that are consistent with this section, and the        commission shall issue a decision whether to approve or        disapprove the proposed amendments within nine months of the        date that the amendments are filed. If the commission fails        to issue a final order within nine months, the amendments        shall be deemed to be approved and the default service        provider may implement the amendments as filed.            (7)  The default service provider shall offer residential        and small business customers a generation supply service rate        that shall change no more frequently than on a quarterly        basis. All default service rates shall be reviewed by the        commission to ensure that the costs of providing service to        each customer class are not subsidized by any other class.        (f)  Smart meter technology and time of use rates.--            (1)  Within nine months after the effective date of this        paragraph, electric distribution companies shall file a smart        meter technology procurement and installation plan with the        commission for approval. The plan shall describe the smart        meter technologies the electric distribution company proposes        to install in accordance with paragraph (2).            (2)  Electric distribution companies shall furnish smart        meter technology as follows:                (i)  Upon request from a customer that agrees to pay            the cost of the smart meter at the time of the request.                (ii)  In new building construction.                (iii)  In accordance with a depreciation schedule not            to exceed 15 years.            (3)  Electric distribution companies shall, with customer        consent, make available direct meter access and electronic        access to customer meter data to third parties, including        electric generation suppliers and providers of conservation        and load management services.            (4)  In no event shall lost or decreased revenues by an        electric distribution company due to reduced electricity        consumption or shifting energy demand be considered any of        the following:                (i)  A cost of smart meter technology recoverable            under a reconcilable automatic adjustment clause under            section 1307(b), except that decreased revenues and            reduced energy consumption may be reflected in the            revenue and sales data used to calculate rates in a            distribution rate base rate proceeding filed under            section 1308 (relating to voluntary changes in rates).                (ii)  A recoverable cost.            (5)  By January 1, 2010, or at the end of the applicable        generation rate cap period, whichever is later, a default        service provider shall submit to the commission one or more        proposed time-of-use rates and real-time price plans. The        commission shall approve or modify the time-of-use rates and        real-time price plan within six months of submittal. The        default service provider shall offer the time-of-use rates        and real-time price plan to all customers that have been        provided with smart meter technology under paragraph        (2)(iii). Residential or commercial customers may elect to        participate in time-of-use rates or real-time pricing. The        default service provider shall submit an annual report to the        price programs and the efficacy of the programs in affecting        energy demand and consumption and the effect on wholesale        market prices.            (6)  The provisions of this subsection shall not apply to        an electric distribution company with 100,000 or fewer        customers.            (7)  An electric distribution company may recover        reasonable and prudent costs of providing smart meter        technology under paragraph (2)(ii) and (iii), as determined        by the commission. This paragraph includes annual        depreciation and capital costs over the life of the smart        meter technology and the cost of any system upgrades that the        electric distribution company may require to enable the use        of the smart meter technology which are incurred after the        effective date of this paragraph, less operating and capital        cost savings realized by the electric distribution company        from the installation and use of the smart meter technology.        Smart meter technology shall be deemed to be a new service        offered for the first time under section 2804(4)(vi). An        electric distribution company may recover smart meter        technology costs:                (i)  through base rates, including a deferral for            future base rate recovery of current basis with carrying            charge as determined by the commission; or                (ii)  on a full and current basis through a            reconcilable automatic adjustment clause under section            1307.        (g)  Definition.--As used in this section, the term "smart     meter technology" means technology, including metering     technology and network communications technology capable of     bidirectional communication, that records electricity usage on     at least an hourly basis, including related electric     distribution system upgrades to enable the technology. The     technology shall provide customers with direct access to and use     of price and consumption information. The technology shall also:            (1)  Directly provide customers with information on their        hourly consumption.            (2)  Enable time-of-use rates and real-time price        programs.            (3)  Effectively support the automatic control of the        customer's electricity consumption by one or more of the        following as selected by the customer:                (i)  the customer;                (ii)  the customer's utility; or                (iii)  a third party engaged by the customer or the            customer's utility.     (July 17, 2007, P.L.120, No.36, eff. imd.; Oct. 15, 2008,     P.L.1592, No.129, eff. 30 days)        2008 Amendment.  Act 129 amended subsec. (e) and added     subsecs. (f) and (g).