

     § 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.--An electric distribution company's
     obligation to provide electric service following implementation
     of restructuring and the choice of alternative generation by a
     customer 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)  At the end of the transition period, the commission
        shall promulgate regulations to define the electric
        distribution company's obligation to connect and deliver and
        acquire electricity under paragraph (3) that will exist at
        the end of the phase-in period.
            (3)  If a customer contracts for electric energy and it
        is not delivered or if a customer does not choose an
        alternative electric generation supplier, the electric
        distribution company or commission-approved alternative
        supplier shall acquire electric energy at prevailing market
        prices to serve that customer and shall recover fully all
        reasonable costs.
            (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), 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.
     (July 17, 2007, P.L.120, No.36, eff. imd.)

        2007 Amendment.  Act 36 amended subsec. (e).
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Last modified: November 27, 2007