

     § 2809.  Requirements for electric generation suppliers.
        (a)  License requirement.--No person or corporation,
     including municipal corporations which choose to provide service
     outside their municipal limits except to the extent provided
     prior to the effective date of this chapter, brokers and
     marketers, aggregators and other entities, shall engage in the
     business of an electric generation supplier in this Commonwealth
     unless the person or corporation holds a license issued by the
     commission. Consistent with 15 Pa.C.S. Ch. 74 (relating to
     generation choice for customers of electric cooperatives),
     electric cooperative corporations must possess a certificate for
     service to supply generation services beyond their territorial
     limits.
        (b)  License application and issuance.--An application for an
     electric generation supplier license must 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 its regulations require. A license shall be issued to any
     qualified 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 provisions of this title
     and the lawful orders and regulations of the commission under
     this title, including the commission's regulations regarding
     standards and billing practices, and that the proposed service,
     to the extent authorized by the license, will be consistent with
     the public interest and the policy declared in this chapter;
     otherwise, such application shall be denied.
        (c)  Financial responsibility.--
            (1)  In order to ensure the safety and reliability of the
        generation of electricity in this Commonwealth, no energy
        supplier license shall be issued or remain in force unless
        the holder complies with all of the following:
                (i)  Furnishes a bond or other security approved by
            the commission in form and amount to ensure the financial
            responsibility of the electric generation supplier and
            the supply of electricity at retail in accordance with
            contracts, agreements or arrangements.
                (ii)  Certifies to the commission that it will pay
            and in subsequent years has paid the full amount of taxes
            imposed by Articles II and XI of the act of March 4, 1971
            (P.L.6, No.2), known as the Tax Reform Code of 1971, and
            any tax imposed by this chapter.
                (iii)  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.
                (iv)  Agrees that it shall be subject to all taxes
            imposed by the Tax Reform Code of 1971 and any tax
            imposed by this chapter.
        Failure of an electricity supplier to pay a tax referred to
        in this paragraph or to otherwise comply with the provisions
        of this paragraph shall be cause for the commission to revoke
        the license of the electricity supplier.
            (2)  If an electricity supplier other than an electric
        distribution company does not pay the tax imposed upon gross
        receipts under section 1101 of the Tax Reform Code of 1971 or
        this chapter, the electric distribution company to whose
        retail customer the electricity supplier provided generation
        service shall remit the unpaid tax, as a tax on the use of
        electricity in this Commonwealth, to the Department of
        Revenue and may collect or seek reimbursement of the tax so
        paid from the electricity provider or any other appropriate
        party that used the electricity in this Commonwealth. The
        department shall collect and enforce the use tax herein
        provided under section 1102 of the Tax Reform Code of 1971.
        Failure of the electric distribution company to pay the
        amount within 30 days after notice provided by the department
        shall cause interest to be imposed on the electric
        distribution company in accordance with Article XI of the Tax
        Reform Code of 1971. Interest shall be calculated from the
        31st day after the department gives the notice required in
        this paragraph. An electric distribution company or other
        appropriate person may challenge the imposition of the tax
        and interest by filing a petition with the department not
        later than 30 days after the date on which the tax became
        due.
        (d)  Transferability of licenses.--No license issued under
     this chapter may be transferred without prior commission
     approval.
        (e)  Form of regulation of electric generation suppliers.--
     The commission may forbear from applying requirements of this
     part which it determines are unnecessary due to competition
     among electric generation suppliers. In regulating the service
     of electric generation suppliers, the commission shall impose
     requirements necessary to ensure that the present quality of
     service provided by electric utilities does not deteriorate,
     including assuring that adequate reserve margins of electric
     supply are maintained and assuring that 52 Pa. Code Ch. 56
     (relating to standards and billing practices for residential
     utility service) are maintained.
        (f)  Availability of the services of brokers and marketers or
     aggregators.--Prior to approving the licensure of any broker and
     marketer or aggregator, the commission shall set forth standards
     to ensure that all retail customer classes may choose to
     purchase electricity through a broker and marketer or
     aggregator. The commission shall also ensure that brokers,
     marketers and aggregators comply with 52 Pa. Code Ch. 56.

        Cross References.  Section 2809 is referred to in sections
     102, 2804, 2810 of this title.
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Last modified: November 27, 2007