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Proposed Rule Would Prohibit Pennsylvania Suppliers from Using Name "Substantially Similar" to Utility or Utility Parent
August 26, 2011
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An electric generation supplier in Pennsylvania, "may not have the same or substantially similar name or fictitious name as the electric distribution company or its corporate parent," under a proposed rulemaking order from the Pennsylvania PUC regarding electric utility affiliate regulations (L-2010-2160942)
Under the proposed regulations, an electric generation supplier would be granted 6 months from the effective date of the regulation to change its name.
There is no specific discussion of what "substantially similar" entails. In a preamble, the PUC does state that it, "propose[s] that both the affiliated and non-affiliated EGSs be required to change their names to be dissimilar to the EDC."
However, provided that a certain disclaimer is made, an electric generation supplier would be still permitted to use a "word, term, name, symbol, device, registered or unregistered mark, or any combination thereof that identifies or is owned by an electric distribution company," in connection with the sale, offering for sale, distribution, or advertising of any goods or services.
Apparently, while a supplier name "substantially similar" to the EDC, or the EDC's corporate parent, would be prohibited, a supplier could use a unique name but also include a tagline such as "An [EDC Parent Name] Company," accompanied by the utility logo.
In addition to the disclaimer, the supplier would be required to enter into an appropriate licensing agreement specifying such rights to use a name, symbol, or mark which identifies or is owned by the utility.
The disclaimer would be required to state that the electric generation supplier is not the same company as the electric distribution company whose EDC identifier is featured, and that a customer need not buy the electric generation supplier's products or services in order to continue receiving services from the electric distribution company.
In print and internet communications, the disclaimer would be required to be placed immediately adjacent to the EDC identifier and shall be in equal prominence to the main body of the text. In radio or television communications, the disclaimer shall be clearly spoken.
The regulations would prohibit an electric distribution company and an affiliated electric generation supplier from engaging in joint marketing, sales, or promotional activities unless the joint marketing, sales, or promotional activities are offered to all electric generation suppliers in the same manner under similar terms and conditions.
An electric distribution company would be prohibited from subsidizing an affiliated electric generation supplier. Costs or overhead related to competitive, non-regulated activities of an affiliated electric generation supplier may not be included in the rates of an electric distribution company.
The proposed regulations would prevent an electric distribution company from selling, releasing or otherwise transferring to an affiliated electric generation supplier, at less than market value, assets, services or commodities that have been included in regulated rates.
Furthermore, under the proposal, an electric distribution company may not allow an affiliated electric generation supplier to secure credit through the pledge of assets in the rate base of the electric distribution company or the pledge of money necessary for utility operations.
The draft rules would prohibit an electric distribution company and affiliated electric generation supplier from sharing office space and require such entities to be physically separated by occupying different buildings.
An electric distribution company and an affiliated electric generation supplier would be required to maintain separate accounting records for their business activities. An electric distribution company that has an affiliated electric generation supplier would be required document the business relationship through a cost allocation manual.
An electric distribution company and affiliated electric generation supplier or transmission supplier would be prohibited from sharing employees or services, except for, "corporate support services, emergency support services, or tariff services offered to all electric generation suppliers on a non-discriminatory basis."
"Corporate support services" would be defined as specifically excluding the purchasing of electric transmission facilities, service and wholesale market products, hedging and arbitrage, transmission and distribution service operations, system operations, engineering, billing, collection, customer service, information systems, electronic data interchange, strategic management and planning, account management, regulatory services, legal services, lobbying, marketing, or sales.
Temporary assignments of employees from an electric distribution company to an affiliated electric generation supplier or transmission supplier, for less than 1 year, shall be considered the same as sharing employees.
The draft rules would provide that an electric distribution company may not give an electric generation supplier, including without limitation its affiliate or division, any preference or advantage over any other electric generation supplier in processing a request by a distribution company customer for retail generation supply service.
Per the draft, subject to customer privacy or confidentiality constraints, an electric distribution company may not give an electric generation supplier, including without limitation its affiliate or division, any preference or advantage in the dissemination or disclosure of customer information, and any dissemination or disclosure shall occur at the same time and in an equal and nondiscriminatory manner.
An electric distribution company would be prohibited from illegally tying the provision of any electric distribution service within the jurisdiction of the Commission to one of the following:
(A) The purchase, lease or use of any other goods or services offered by the electric distribution company or its affiliates.
(B) A direct or indirect commitment not to deal with any competing electric generation supplier
If an electric distribution company customer requests information about electric generation suppliers, the electric distribution company would be required provide the address of the Commission's retail choice website. The electric distribution company may not recommend or offer an opinion on the relative merits of particular suppliers.
Additionally, the proposed regulation would provide that an electric distribution company or its affiliate or division may not state or imply that any delivery services provided to an affiliate or division or customer of either are inherently superior, solely on the basis of their affiliation with the electric distribution company, to those provided to any other electric generation supplier or customer or that the electric distribution company's delivery services are enhanced should supply services be procured from its affiliate or division
The proposed rules also prohibit an electric generation supplier representative from falsely claiming to represent the EDC, as more fully addressed in other sections of the Commission's regulations.
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