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Hearing Set For Pennsylvania Bill That Would Require $1 Million Security From Some Retail Suppliers
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A hearing has been set by the Pennsylvania House of Representatives for HB 1578 which would require an additional $1 million in security for retail suppliers engaged in residential door-to-door sales
The hearing on HB 1578 is set for Tuesday, Sept. 12 at 1 p.m.
HB 1578 would provide that, "An electric
generation supplier engaging in person-to-person sales of
electricity at a residence of a retail residential class
customer shall furnish a bond or other security with the
commission in the amount of $1,000,000. The bond or
security required for an electric generation supplier
engaging in person-to-person sales of electricity at a
residence of a retail customer shall be in addition to
the bond or security required by the commission and
conform with any other bonding and security requirements
for a company licensed in this Commonwealth to write
surety types of insurance. For the purpose of this
subparagraph, a person-to-person sale at a residence
shall not include a transaction at a residence in which
there was a prearranged meeting between a retail customer
and an electric generation supplier."
Similar language in the bill would apply the $1 million additional security to natural gas suppliers engaged in residential door to door sales, using the same definition as above
Additionally, the bill would require the PUC to conduct training for electric and gas suppliers, and would prohibit the PUC from granting licenses to suppliers which have not passed a test at the end of the training. The training would require that suppliers have, "a thorough understanding of the commission's regulations
regarding sales, consumer protection and any other matter the
commission deems appropriate through online training."
Notably, the bill provides that, "At the conclusion of the training ... the commission shall conduct an online examination for a
designated representative of an electric generation supplier
and, upon achieving a score satisfactory to the commission,
certify that the designated representative has successfully
completed the training." Similar language would also apply this "test" to gas suppliers
Furthermore, "The
commission may not issue a new electric generation supplier
license to an applicant until a designated representative of
the electric generation supplier completes the program." Similar language would apply to NGS licenses as well.
The costs for implementation and administration of the training would be borne by suppliers through fees assessed by the PUC with enactment of the legislation, the bill's "prime" sponsor, Representative Kyle J. Mullins, said in a memo
The Retail Energy Supply Association (RESA) said that it, "strongly endorses Pennsylvania State Representative Kyle Mullins’ sponsorship of HB 1578[.]"
Tony Cusati, Pennsylvania state chair for the Retail Energy Supply Association, said of the bill, "RESA appreciates the efforts undertaken by Representative Mullins and the PUC. Their work in enhancing consumer protection in Pennsylvania by implementing more comprehensive training for third-party suppliers and their representatives is greatly valued and supported."
"Since 1996, Pennsylvania residents have had a choice in their energy provider. Our organization strongly supports effective consumer protections that give customers sufficient trust in the retail market, so they shop freely and confidently for the products and services that best meet their needs," Cusati said
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Bill Would Not Allow PUC To License A Retail Supplier Until Supplier Passes Test On Consumer Protection Rules
September 8, 2023
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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