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PRINTER'S NO. 2790
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2156
Session of
2026
INTRODUCED BY DAY, JANUARY 23, 2026
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
UTILITIES, JANUARY 26, 2026
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, providing for municipal consortium power
purchasing.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 2816. Municipal consortium power purchasing.
(a) Municipal authority to aggregate.--A municipality may
establish a municipal consortium power purchasing program to
aggregate the electric load of residential customers within the
jurisdiction of the municipality who voluntarily opt in, in
accordance with the following:
(1) The municipality shall act as an aggregator under
the authority of 8 Pa.C.S. § 24A01 (relating to definitions)
and this section without requiring a license as an electric
generation supplier under 52 Pa. Code § 54.32 (relating to
application process).
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(2) The program shall be limited to residential
customers within the same electric distribution company
territory to ensure uniform rate applicability.
(3) The municipality shall negotiate with one or more
electric generation suppliers to procure a rate below the
default rate for participants. If no rate below the default
rate is secured, participants shall be enrolled in the
default rate of the electric distribution company.
(4) With written authorization from the governing body
of an adjacent or contiguous municipality, a municipality may
extend the program to residential customers within that
municipality's jurisdiction, provided that all residential
customers remain within the same electric distribution
company territory.
(b) Opt-in requirement and consumer protections.--
Participation in the program shall be voluntary, requiring
affirmative opt-in by each residential customer through a
process established by the municipality, including written or
electronic consent. A municipality implementing a municipal
consortium power purchasing program shall:
(1) Provide clear disclosure of program terms, including
the potential for no savings, the default rate fallback and
the right to opt out at any time without penalty, consistent
with 52 Pa. Code § 54.5 (relating to disclosure statement for
residential and small business customers).
(2) Comply with 52 Pa. Code § 54.4 (relating to bill
format for residential and small business customers).
(3) Comply with 52 Pa. Code § 54.7 (relating to
marketing/sales activities).
(4) Protect residential customer information under 52
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Pa. Code § 54.8 (relating to privacy of customer
information).
(5) For programs involving renewable energy sources,
comply with the act of November 30, 2004 (P.L.1672, No.213),
known as the Alternative Energy Portfolio Standards Act, as
applicable under section 2814 (relating to additional
alternative energy sources).
(6) Establish an annual enrollment period in accordance
with the following:
(i) Residents shall indicate intent to participate
no later than September 15 each year. The indication
shall include the resident's average monthly kilowatt-
hours usage from the prior 12 months, as shown on the
electric distribution company bill.
(ii) On or before October 20, the municipality shall
notify all residents who indicated intent under
subparagraph (i) the secured rate and term.
(iii) Residents must affirmatively elect to
participate by October 30. Election to participate shall
be binding for the 12-month period beginning with the
first billing cycle in November.
(iv) Once elected, a participant may not opt out
before the end of the 12-month period except in cases of
relocation outside the electric distribution company
territory or extenuating circumstances approved by the
municipality.
(c) No-cost participation and administrative fee.--
(1) The municipal consortium power purchasing program
shall be offered at no cost to residential customers,
including no enrollment or participation fees.
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(2) A municipality may collect an administrative fee not
exceeding 1% of the total savings achieved by participants,
calculated as the difference between the default rate and the
procured rate multiplied by the total kilowatt-hours consumed
by participants. The fee shall be disclosed to participants
prior to enrollment and reported to the commission annually.
(3) The administrative fee under paragraph (2) shall be
collected by the electric generation supplier and remitted
monthly to the municipality, itemized on residential
customer's bills as "municipal administrative fee."
(4) If no savings are achieved, no administrative fee
shall be collected.
(d) Program implementation.--The municipality shall:
(1) Issue a competitive request for proposals to
electric generation suppliers to procure a rate for the
aggregated load, ensuring transparency and compliance with
municipal procurement laws.
(2) Coordinate with the electric distribution company to
enroll participants in the selected electric generation
supplier's rate or the default rate, as applicable,
consistent with 52 Pa. Code § 54.1 (relating to purpose).
(3) Establish a resident advisory committee to provide
input on program design, supplier selection and performance
evaluation.
(4) Register the program and disclose the secured rate
on the PA Power Switch platform within 10 days of electric
generation supplier selection.
(5) Ensure all program participant billing, payment and
residential customer service functions remain within the
electric distribution company. The electric generation
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supplier shall provide generation charges to the electrical
distribution company for inclusion on the consolidated bill
in accordance with 52 Pa. Code § 54.4 (relating to bill
format for residential and small business customers).
(e) Reporting requirements.--A municipality operating a
consortium power purchasing program shall submit an annual
report to the commission's Bureau of Conservation, Economics and
Energy Planning under 52 Pa. Code § 54.203 (relating to
reporting requirements), including:
(1) The total energy procured in kilowatt-hours.
(2) The procured rate compared to the default rate.
(3) Total savings achieved, if any, and any
administrative fee collected.
(4) The number of residential customer accounts
enrolled.
(5) A summary of resident feedback and complaints, with
resolutions.
(6) The number of program participants who attempted to
opt out prior to the end of the 12-month period and the
disposition of each request.
(f) Enforcement and audits.--
(1) The commission shall enforce this section under
section 501 (relating to general powers) and 52 Pa. Code §
54.43 (relating to standards of conduct and disclosure for
licensees).
(2) A violation of this section may result in a fine or
other penalty under section 3301 (relating to civil penalties
for violations).
(3) The commission may audit a municipality's compliance
with this section, consistent with section 1307(d) (relating
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to sliding scale of rates; adjustments).
(g) Scope.--This section shall apply to municipal consortium
power purchasing programs established on or after the effective
date of this section.
(h) Regulations.--The Pennsylvania Public Utility Commission
shall promulgate regulations to implement this section.
(i) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Default rate." The price to compare rate established by an
electric distribution company under section 2807 (relating to
duties of electric distribution companies) and 52 Pa. Code §
54.182 (relating to definitions).
"Electric distribution company." As defined in section 2803
(relating to definitions).
"Electric generation supplier." An entity licensed under 52
Pa. Code § 54.32 (relating to application process) to provide
electric generation service.
"Municipal consortium power purchasing program" or "program."
A program established by a municipality to aggregate the
electric load of residential customers who voluntarily opt in
for the purpose of procuring electric generation service at a
rate below the default rate.
"Municipality." A borough, township, city or county as
defined in 8 Pa.C.S. § 101.1 (relating to definitions).
"PA Power Switch platform." The online platform maintained
by the commission, known as www.PaPowerSwitch.com or its
successor, for comparing and selecting electric generation
suppliers, as referenced in 52 Pa. Code § 54.5(e)(13) (relating
to disclosure statement for residential and small business
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customers).
"Residential customer." A customer purchasing electric
generation service for residential use, as defined in 52 Pa.
Code § 54.2 (relating to definitions).
Section 2. All regulations and parts of regulations are
abrogated to the extent of any inconsistency with this act.
Section 3. This act shall take effect in 180 days.
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