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PRINTER'S NO. 1106
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 966
Session of
2025
INTRODUCED BY PHILLIPS-HILL, J. WARD AND CULVER, AUGUST 13, 2025
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
AUGUST 13, 2025
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in natural gas competition, further
providing for standards for restructuring of natural gas
utility industry, for consumer protections and customer
service and for requirements for natural gas suppliers; and,
in restructuring of electric utility industry, further
providing for standards for restructuring of electric
industry, for duties of electric distribution companies and
for requirements for electric generation suppliers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2203 of Title 66 of the Pennsylvania
Consolidated Statutes is amended by adding a paragraph to read:
§ 2203. Standards for restructuring of natural gas utility
industry.
The following interdependent standards shall govern the
commission's actions in adopting rules, orders or policies and
in reviewing, assessing and approving each natural gas
distribution company's restructuring filings and overseeing the
transition process and regulation of the restructured natural
gas utility industry:
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* * *
(3.1) The commission shall require, by order or
regulation to be issued within 210 days of the effective date
of this paragraph, that each natural gas distribution company
shall account for any and all costs, including, but not
limited to: commodity costs, capacity costs, hedging costs
whether financial or physical, procurement costs, billing
system and billing costs, customer service and account
management costs, working capital, office building, rent and
information technology costs, legal and financial costs and
labor costs. To the extent any of these costs pay for
services that support both distribution customers and
supplier of last resort customers, the commission shall
require an appropriate proportion of those costs be allocated
to the supplier of last resort. In a case where costs are
apportioned to both distribution customers and supplier of
last resort customers, the apportionment shall be at actual
costs. For the purpose of this paragraph, the provision of
supplier of last resort service shall be treated as an
affiliate of the natural gas distribution company. The intent
of this requirement is to ensure that the actual costs of
providing distribution and supplier of last resort service
are accurately reflected in the rates charged for those
services. The commission shall adopt rate mechanisms to
ensure that the natural gas distribution companies recover
fully their allowed distribution costs. The unbundling and
reallocation shall be accomplished in the supplier of last
resort's next rate case. If a natural gas distribution
company does not file a rate case within three years
following the effective date of this paragraph, the
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commission shall order the filing of information to
effectuate unbundling and, after the filing, shall commence a
proceeding where the unbundling is accomplished. After the
initial allocation, changes may only be permitted in a
general rate case. If the commission finds it necessary to do
so, the commission shall establish a mandatory schedule for
the filing of information and the unbundling proceedings
required by this paragraph.
* * *
Section 2. Section 2206(b) of Title 66 is amended to read:
§ 2206. Consumer protections and customer service.
* * *
(b) Change of suppliers.--
(1) The commission shall, by order or regulation,
establish procedures to ensure that a natural gas
distribution company does not change a retail gas customer's
natural gas 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 promulgate regulations to
ensure that a natural gas distribution company processes a
change in natural gas supplier by using either the customer
account number or other personally identifiable information.
A customer who consents to a change of natural gas supplier
shall not be required to provide a natural gas distribution
company account number or other identification number if the
customer provides a valid government-issued identification or
alternative form of identification as determined by the
commission. The commission shall consider whether a customer
has multiple accounts.
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* * *
Section 3. Section 2208 of Title 66 is amended by adding a
subsection to read:
§ 2208. Requirements for natural gas suppliers.
* * *
(i) Training program requirements for natural gas
suppliers.--
(1) The commission shall develop a training program for
any entity or individual that is licensed by the commission
under this section as a natural gas supplier.
(2) The commission shall develop the program in
consultation with interested stakeholders determined by the
commission, which shall include the Office of Consumer
Advocate and natural gas suppliers.
(3) An individual working on behalf of a natural gas
supplier and assisting customers engaging in change of
suppliers as outlined under section 2206(b) (relating to
consumer protections and customer service) shall demonstrate
a thorough understanding of the commission's regulations
regarding sales, consumer protection and any other matter the
commission deems appropriate through an online training
program.
(4) At the conclusion of the program, the commission
shall conduct an online examination and, on a satisfactory
score, certify that the individual has successfully completed
the program .
(5) The commission shall determine the schedule and
frequency by which an individual must complete the program
and certification. The commission may not issue a license to
a new natural gas supplier until an individual completes the
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program and certification.
(6) The commission may adopt regulations that include
appropriate penalties or sanctions for failure to comply with
this subsection.
(7) The commission shall use the assessments collected
in accordance with this part for the initial development of
the training program. The commission may establish reasonable
fees, as authorized under subsection (h), to fund the
training program.
Section 4. Section 2804 of Title 66 is amended by adding a
paragraph to read:
§ 2804. Standards for restructuring of electric industry.
The following interdependent standards shall govern the
commission's assessment and approval of each public utility's
restructuring plan, oversight of the transition process and
regulation of the restructured electric utility industry:
* * *
(3.1) The commission shall require, by order or
regulation to be issued within 210 days of the effective date
of this paragraph, that each electric distribution company
account for any and all costs, including, but not limited to,
commodity costs, capacity costs, hedging costs whether
financial or physical, procurement costs, billing system and
billing costs, customer service and account management costs,
working capital, office building, rent and information
technology costs, legal and financial costs and labor costs.
To the extent any of these costs pay for services that
support both distribution customers and supplier of last
resort customers, the commission shall require an appropriate
proportion of those costs be allocated to supplier of last
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resort. For the purpose of this paragraph, the provision of
supplier of last resort service shall be treated as an
affiliate of the electric distribution company . The intent of
this requirement is to ensure that the actual costs of
providing distribution and supplier of last resort service
are accurately reflected in the rates charged for those
services. The commission shall adopt rate mechanisms to
ensure that the electric distribution companies recover fully
their allowed distribution costs. The unbundling and
reallocation shall be accomplished in the supplier of last
resort's next rate case. If an electric distribution company
does not file a rate case within three years following the
effective date of this paragraph, the commission shall order
the filing of information to effectuate unbundling and, after
the filing, shall commence a proceeding where the unbundling
is accomplished. After the initial allocation, changes may
only be permitted in a general rate case. If the commission
finds it necessary to do so, the commission shall establish a
mandatory schedule for the filing of information and the
unbundling proceedings required by this paragraph.
* * *
Section 5. Sections 2807 and 2809 of Title 66 are amended by
adding subsections to read:
§ 2807. Duties of electric distribution companies.
* * *
(f.1) Processing changes in suppliers.--The commission shall
promulgate regulations to ensure that an electric distribution
company processes a change in electric generation supplier by
using either the customer account number or other personally
identifiable information. A customer who consents to a change of
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electric generation supplier shall not be required to provide an
electric distribution company account number or other
identification number if the customer provides a valid
government-issued or alternative form of identification as
determined by the commission. The commission shall consider
whether a customer has multiple accounts.
* * *
§ 2809. Requirements for electric generation suppliers.
* * *
(h) Training program requirements for electric generation
suppliers.--
(1) The commission shall develop a training program for
any entity or individual that is licensed by the commission
under this section as an electric generation supplier.
(2) The commission shall develop the program in
consultation with interested stakeholders determined by the
commission, which shall include the Office of Consumer
Advocate and electric generation suppliers.
(3) An individual working on behalf of an electric
generation supplier and assisting customers engaging in
change of suppliers as outlined under section 2807(f.1)
(relating to duties of electric distribution companies) shall
demonstrate a thorough understanding of the commission's
regulations regarding sales, consumer protection and any
other matter the commission deems appropriate through an
online training program.
(4) At the conclusion of the program, the commission
shall conduct an online examination and, on a satisfactory
score, certify that the individual has successfully completed
the program.
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(5) The commission shall determine the schedule and
frequency by which an individual must complete the program
and certification. The commission may not issue a license to
a new electric generation supplier until a designated
representative of the new electric generation supplier
completes the program and certification.
(6) The commission may adopt regulations that include
appropriate penalties or sanctions for failure to comply with
this subsection.
(7) The commission shall use the assessments collected
in accordance with this part for the initial development of
the training program. The commission may establish reasonable
fees, as authorized under paragraph (g), to fund the training
program.
Section 6. This act shall take effect in 120 days.
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