

     § 2208.  Requirements for natural gas suppliers.
        (a)  License requirements.--No entity shall engage in the
     business of a natural gas supplier unless it holds a license
     issued by the commission. To the extent that a natural gas
     distribution company provides natural gas supply service outside
     of its chartered or certificated territory, it also must hold a
     license. A license shall not be required for customers who make
     de minimis incidental sales or resales to themselves, an
     affiliate or other nonresidential retail gas customers.
        (b)  License application and issuance.--An application for a
     natural gas supplier license shall be made to the commission in
     writing, be verified by oath or affirmation and be in such form
     and contain such information as the commission may, by rule or
     order, require. A license shall be issued to any applicant,
     authorizing the whole or any part of the service covered by the
     application, if it is found that the applicant is fit, willing
     and able to perform properly the service proposed and to conform
     to the applicable provisions of this title and the orders and
     regulations of the commission, including those concerning
     standards and billing practices, and that the proposed service,
     to the extent authorized by the license, will be consistent with
     the public interest. Otherwise, such application shall be
     denied.
        (c)  Financial fitness.--
            (1)  In order to ensure the safety and reliability of the
        natural gas supply service in this Commonwealth, no natural
        gas supplier license shall be issued or remain in force
        unless the applicant or holder, as the case may be, complies
        with all of the following:
                (i)  Furnishes a bond or other security in a form and
            amount to ensure the financial responsibility of the
            natural gas supplier. The criteria each natural gas
            distribution company shall use to determine the amount
            and form of such bond or other security shall be set
            forth in the natural gas distribution company's
            restructuring filing. In approving the criteria,
            commission considerations shall include, but not be
            limited to, the financial impact on the natural gas
            distribution company or an alternative supplier of last
            resort of a default or subsequent bankruptcy of a natural
            gas supplier. The commission shall periodically review
            the criteria upon petition by any party. The amount and
            form of the bond or other security may be mutually agreed
            to between the natural gas distribution company or the
            alternate supplier of last resort and the natural gas
            supplier or, failing that, shall be determined by
            criteria approved by the commission.
                (ii)  Provides the commission with the address of the
            participant's principal office in this Commonwealth or
            the address of the participant's registered agent in this
            Commonwealth, the latter being the address at which the
            participant may be served process.
            (2)  Failure of a natural gas supplier to comply with any
        provision of this chapter or the rules, regulations, orders
        or directives of the Department of Revenue or of the
        commission, including, but not limited to, engaging in
        anticompetitive behavior, shall be cause for the commission
        to revoke the license of the natural gas supplier.
        (d)  Transferability of licenses.--No license issued under
     this chapter may be transferred without prior commission
     approval.
        (e)  Form of regulation of natural gas suppliers.--Except
     where a natural gas supplier serves as a supplier of last
     resort, the commission may forbear from extending its regulation
     of natural gas suppliers beyond licensing, bonding, reliability
     and consumer services and protections, including all applicable
     portions of 52 Pa. Code Ch. 56 (relating to standards and
     billing practices for residential utility service). Subject to
     the provisions of section 2207 (relating to obligation to
     serve), nothing in this section shall preclude a natural gas
     supplier, upon appropriate and reasonable notice to the retail
     gas customer, supplier of last resort and the natural gas
     distribution company, from canceling its contract with any
     customer for legal cause, subject to the customer's right to
     have continued service from the supplier of last resort.
        (f)  Availability of the service of natural gas suppliers.--
     Prior to licensing any natural gas supplier, the commission
     shall set forth standards to ensure that all customer classes
     may choose to purchase natural gas from a natural gas supplier.
     The commission shall also ensure that natural gas suppliers
     comply with applicable provisions of 52 Pa. Code Ch. 56.
        (g)  Open and nondiscriminatory access.--In addition to
     meeting the license requirements applicable to applicants under
     subsection (b), a municipal corporation shall, before it is
     permitted to provide natural gas supply services as a natural
     gas supplier, demonstrate, and the commission shall determine,
     that, by the date of the issuance of the license, it will
     provide other natural gas suppliers open and nondiscriminatory
     access to its gas distribution system under standards that are
     comparable to this title, taking into consideration the
     particular circumstances of the municipal corporation's
     ownership and/or operation of the gas distribution system.

        Cross References.  Section 2208 is referred to in section
     2212 of this title.

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Last modified: November 27, 2007