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Obligation to serve - 66 Pa. Cons. Stat. § 2207Legal Research Home > Pennsylvania Statutes
§ 2207. Obligation to serve.
(a) Supplier of last resort.--
(1) After the effective date of this chapter, the
natural gas distribution company shall serve as the supplier
of last resort for residential, small commercial, small
industrial and essential human needs customers and any other
customer classes determined by the commission in the natural
gas distribution company's restructuring proceeding until
such time as the commission, pursuant to this section,
approves an alternative supplier or suppliers to provide such
services to any or all of the natural gas distribution
company's customers.
(2) For purposes of this section, a supplier of last
resort is a natural gas distribution company or natural gas
supplier which is designated by the commission to provide
natural gas supply service with respect to one or more of the
following services:
(i) natural gas supply services to those customers
who have not chosen an alternative natural gas supplier
or who choose to be served by their supplier of last
resort;
(ii) natural gas supply services to those customers
who are refused supply service from a natural gas
supplier; or
(iii) natural gas supply services to those customers
whose natural gas supplier has failed to deliver its
requirements.
No customer shall have more than one supplier of last resort
designated for any of the services set forth in this
paragraph.
(b) Consumer protection.--Service by the supplier of last
resort shall be subject to all consumer protection standards,
including those contained in 52 Pa. Code Ch. 56 (relating to
standards and billing practices for residential utility service)
and to all universal service obligations.
(c) Natural gas distribution company.--The natural gas
distribution company shall deliver natural gas to the extent
that it is provided by all natural gas suppliers, or suppliers
of last resort, as the case may be, in accordance with the
natural gas distribution company's tariff.
(d) Standards of service.--Consistent with the standards set
forth in section 1501 (relating to character of service and
facilities) and applicable orders of the commission, a supplier
of last resort under subsection (a)(2)(iii) shall provide
sufficient supplies as to quantity, quality, pressure and
location to meet the operational reliability requirements of the
natural gas distribution company's system, including, but not
limited to, a failure of one or more natural gas suppliers to:
(1) supply natural gas to their retail gas customers in
conformance with their contractual obligations to such
customers; or
(2) satisfy applicable reliability standards and
obligations.
(e) Discontinuation of service.--The natural gas
distribution company shall continue providing services as the
supplier of last resort to all of its customers for all of the
natural gas supply services described in subsection (a)(2)
unless, at its discretion, it requests and receives commission
approval to discontinue providing one or more such supplier of
last resort obligation. In approving such a petition, the
commission shall also approve another party as the alternative
supplier of last resort for each customer or customer group for
which the natural gas distribution company no longer provides
such natural gas supply services.
(f) Regulations.--The commission shall promulgate
regulations setting forth the standards for approving an
alternative supplier of last resort consistent with the
provisions of this title, including a mechanism to ensure that
the rates charged by any alternate supplier of last resort are
just and reasonable.
(g) Organized labor.--During the five-year period following
the effective date of this chapter, approval of an alternative
supplier of last resort pursuant to subsection (e) shall not be
granted unless the entity designated by the commission to
succeed the natural gas distribution company in the provision
of service to these customers agrees to recognize relevant union
and collective bargaining agreements of the natural gas
distribution company then in place.
(h) Petition to become supplier of last resort.--After the
five-year period following the effective date of this chapter,
any party may petition the commission to become the supplier of
last resort to some or all customers except for those customers
identified in subsection (a)(2)(i).
(i) Notice required prior to market exit.--
(1) A natural gas supplier may not exit the market
without providing notice as determined by the commission in
the restructuring proceeding of the natural gas distribution
company to its customers, the supplier of last resort and the
natural gas distribution company.
(2) If firm gas supply contracts with Pennsylvania
natural gas producers or storage or transportation capacity
contracts used by the natural gas supplier to serve such
retail gas customers were either assigned or released to the
natural gas supplier or constitute capacity which was
acquired by the natural gas supplier as the result of
nonrenewal of a storage or transportation capacity contract
previously held by the natural gas distribution company, the
natural gas supplier shall offer the supplier of last resort
or successor natural gas supplier a right of first refusal to
utilize such Pennsylvania supply contracts or storage or
transportation capacity contracts at its contract cost as
long as needed to serve those customers.
(3) If the storage or transportation capacity contracts
held by the natural gas supplier were acquired in another
manner, and there was not sufficient notice given to the
supplier of last resort and the natural gas distribution
company, or if there is not alternative storage or
transportation capacity available which is operationally
sufficient to serve the market the natural gas supplier was
serving, then the supplier of last resort shall be provided
with a right to use such storage or transportation capacity
as designated by the natural gas supplier, at the contract
cost, until the supplier of last resort is able to acquire
replacement capacity sufficient to serve its customers using
reasonable and diligent efforts to do so.
(4) If a dispute arises under this subsection, the
aggrieved party may file a complaint with the commission for
resolution within 45 days.
(j) Duty involving lost customers.--To the extent that a
natural gas supplier loses retail gas customers such that its
capacity requirements to a natural gas distribution company are
reduced below the level established by the commission for such
purpose in the natural gas distribution company's restructuring
proceeding, the natural gas supplier shall have the same
obligations set forth in subsection (i).
(k) Rate after service discontinued.--In the event the
natural gas supplier discontinues service or defaults before its
contract with the customer expires, the retail gas customer
shall be served by the supplier of last resort at the
commission-approved supplier of last resort rate commencing with
the next billing cycle. However, the retail gas customer shall
continue to be charged the rate the customer negotiated with the
discontinuing or defaulting natural gas supplier for the
remainder of the billing cycle. Any difference between the cost
incurred by the supplier of last resort and the amount payable
by the retail gas customer shall be recovered from the natural
gas supplier or from the bond or other security provided by the
natural gas supplier without recourse to any retail gas customer
not otherwise contractually committed for the difference.
Cross References. Section 2207 is referred to in section
2208 of this title.
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Last modified: November 27, 2007 |
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