2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 22 - Natural Gas Competition
2203 - Standards for restructuring of natural gas utility industry.

     § 2203.  Standards for restructuring of natural gas utility
                industry.
        The following interdependent standards shall govern the
     commission's actions in adopting rules, orders or policies and
     in reviewing, assessing and approving each natural gas
     distribution company's restructuring filings and overseeing the
     transition process and regulation of the restructured natural
     gas utility industry:
            (1)  The commission shall adopt and enforce standards as
        necessary to ensure continuation of the safety and
        reliability of the natural gas supply and distribution
        service to all retail gas customers. In adopting the
        standards, the commission shall consider the absence of any
        applicable industry standards and practices or adopt
        standards in conformity with industry standards and practices
        meeting the standards of this chapter. The application of
        such standards shall be in a manner that incorporates the
        operating requirements of the different natural gas
        distribution companies.
            (2)  Consistent with section 2204 (relating to
        implementation), the commission shall allow retail gas
        customers to choose among natural gas suppliers and natural
        gas distribution companies to the extent that they offer such
        natural gas supply services. Retail gas customers shall be
        able to choose from these suppliers a variety of products,
        including, but not limited to, different supply and pricing
        options, and services that evolve as the competitive
        marketplace matures. Neither any natural gas supplier nor any
        natural gas distribution company shall offer interruptible
        gas service to any essential human needs retail gas customer
        lacking installed and operable alternative fuel capability or
        to any residential retail gas customer.
            (3)  The commission shall require natural gas
        distribution companies to unbundle natural gas supply
        services such that separate charges for the services can be
        set forth in tariffs and on retail gas customers' bills. In
        its restructuring filing, the natural gas distribution
        company shall establish system reliability standards and
        capacity contract mitigation parameters and address the
        unbundling of commodity, capacity, storage, balancing and
        aggregator services. The commission may address the
        unbundling of other services only through a rulemaking. In
        conducting the rulemaking, the commission shall consider the
        impact of such unbundling on the labor force, the creation of
        stranded costs, safety, reliability, consumer protections,
        universal service and the potential for unbundling to offer
        savings, new products and additional choices or services to
        retail gas customers. The commission's decisions shall assure
        that standards and procedures for safety and reliability,
        consumer protections and universal service are maintained at
        levels consistent with this chapter.
            (4)  Consistent with the provisions of section 2204, the
        commission shall require that a natural gas distribution
        company that owns or operates jurisdictional distribution
        facilities shall provide distribution service to all retail
        gas customers in its service territory and to all natural gas
        suppliers, affiliated or nonaffiliated, on nondiscriminatory
        rates, terms of access and other conditions.
            (5)  The commission shall require that restructuring of
        the natural gas utility industry be implemented in a manner
        that does not unreasonably discriminate against one customer
        class for the benefit of another.
            (6)  After notice and hearings, the commission shall
        establish for each natural gas distribution company an
        appropriate nonbypassable, competitively neutral cost-
        recovery mechanism which is designed to recover fully the
        natural gas distribution company's universal service and
        energy conservation costs over the life of these programs.
        Except as provided in paragraph (10), policies, activities
        and services under this paragraph shall be funded and spent
        in each natural gas distribution company's service territory.
        Nothing in this chapter shall be construed to prohibit public
        funding or voluntary funding by third parties of a natural
        gas distribution company's universal service and energy
        conservation programs.
            (7)  The commission shall, at a minimum, continue the
        level and nature of the consumers protections, policies and
        services within its jurisdiction that are in existence as of
        the effective date of this chapter to assist low-income
        retail gas customers to afford natural gas services.
            (8)  The commission shall ensure that universal service
        and energy conservation policies, activities and services are
        appropriately funded and available in each natural gas
        distribution service territory. The commission shall
        encourage the use of community-based organizations that have
        the necessary technical and administrative experience to be
        the direct providers of services or programs which reduce
        energy consumption or otherwise assist low-income retail gas
        customers to afford natural gas service. Programs under this
        paragraph shall be subject to the administrative oversight of
        the commission, which shall ensure that the programs are
        operated in a cost-effective manner.
            (9)  Each natural gas distribution company shall set
        forth in its restructuring filing an initial proposal to meet
        its universal service and energy conservation obligations.
            (10)  Consistent with paragraph (7), the commission shall
        convene a task force to review universal service programs and
        their funding. The task force shall issue a report to the
        commission by December 31, 1999, and annually thereafter.
        Recommendations regarding the use of general State revenue
        shall be concurrently forwarded to the General Assembly.
            (11)  The commission shall continue to regulate rates for
        natural gas distribution services for new and existing retail
        gas customers in accordance with Chapter 13 (relating to
        rates and rate making) and this chapter.
            (12)  The commission shall make its determinations
        pursuant to this chapter and shall adopt such orders or
        regulations as necessary and appropriate to ensure that
        natural gas suppliers meet their supply and reliability
        obligations, including, but not limited to, establishing
        penalties for failure to deliver natural gas and revoking
        licenses. Any affected entity may at any time petition the
        commission to amend or rescind any such order or regulation
        issued or promulgated under this chapter.
            (13)  Each natural gas distribution company shall set
        forth in its restructuring filing an initial proposal to meet
        its employee transition obligations precipitated by this
        chapter.
            (14)  The natural gas distribution company may continue
        to provide natural gas service to its customers under all
        tariff rate schedules and riders incorporated into its
        tariff, and policies or programs, existing on the effective
        date of this chapter.
            (15)  Beginning May 1, 1999, and continuing for a 36-
        month period thereafter, if a natural gas distribution
        company lays off or terminates any of its employees, except
        for just cause, the natural gas distribution company shall:
                (i)  Provide the commission with sufficient
            information to show that with the reduction of employees
            the company will still be able to ensure the safety and
            reliability of natural gas distribution service to all
            retail gas customers, as provided for by the commission
            under paragraph (1).
                (ii)  Provide at least 60 days' written notice of
            such layoff or termination to the company's employees'
            authorized bargaining representative.

        Cross References.  Section 2203 is referred to in sections
     1403, 2202, 2211 of this title.