2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 28 - Restructuring of Electric Utility Industry
2803 - Definitions.

     § 2803.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Aggregator" or "market aggregator."  An entity, licensed by
     the commission, that purchases electric energy and takes title
     to electric energy as an intermediary for sale to retail
     customers.
        "Bilateral contract."  An agreement, as approved by the
     commission, reached by two parties, each acting in its own
     independent self-interest, as a result of negotiations free of
     undue influence, duress or favoritism, in which the electric
     energy supplier agrees to sell and the electric distribution
     company agrees to buy a quantity of electric energy at a
     specified price for a specified period of time under terms
     agreed to by both parties, and which follows a standard industry
     template widely accepted in the industry or variations thereto
     accepted by the parties. Standard industry templates may include
     the EEI Master Agreement for physical energy purchases and sales
     and the ISDA Master Agreement for financial energy purchases and
     sales.
        "Broker" or "marketer."  An entity, licensed by the
     commission, that acts as an agent or intermediary in the sale
     and purchase of electric energy but that does not take title to
     electric energy.
        "Competitive transition charge."  A nonbypassable charge
     applied to the bill of every customer accessing the transmission
     or distribution network which (charge) is designed to recover an
     electric utility's transition or stranded costs as determined by
     the commission under sections 2804 (relating to standards for
     restructuring of electric industry) and 2808 (relating to
     competitive transition charge).
        "Consumer."  A retail electric customer.
        "Customer."  A retail electric customer.
        "Default service provider."  An electric distribution company
     within its certified service territory or an alternative
     supplier approved by the commission that provides generation
     service to retail electric customers who:
            (1)  contract for electric power, including energy and
        capacity, and the chosen electric generation supplier does
        not supply the service; or
            (2)  do not choose an alternative electric generation
        supplier.
        "Direct access."  The right of electric generation suppliers
     and end-use customers to utilize and interconnect with the
     electric transmission and distribution system on a
     nondiscriminatory basis at rates, terms and conditions of
     service comparable to the transmission and distribution
     companies' own use of the system to transport electricity from
     any generator of electricity to any end-use customer.
        "Electric distribution company."  The public utility
     providing facilities for the jurisdictional transmission and
     distribution of electricity to retail customers, except building
     or facility owners/operators that manage the internal
     distribution system serving such building or facility and that
     supply electric power and other related electric power services
     to occupants of the building or facility.
        "Electric generation supplier" or "electricity supplier." A
     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 or any other
     entities, that sells to end-use customers electricity or related
     services utilizing the jurisdictional transmission or
     distribution facilities of an electric distribution company or
     that purchases, brokers, arranges or markets electricity or
     related services for sale to end-use customers utilizing the
     jurisdictional transmission and distribution facilities of an
     electric distribution company. The term excludes building or
     facility owner/operators that manage the internal distribution
     system serving such building or facility and that supply
     electric power and other related power services to occupants of
     the building or facility. The term excludes electric cooperative
     corporations except as provided in 15 Pa.C.S. Ch. 74 (relating
     to generation choice for customers of electric cooperatives).
        "End-use customer."  A retail electric customer.
        "Reliability."  Includes adequacy and security. As used in
     this definition, "adequacy" means the provision of sufficient
     generation, transmission and distribution capacity so as to
     supply the aggregate electric power and energy requirements of
     consumers, taking into account scheduled and unscheduled outages
     of system facilities; and "security" means designing,
     maintaining and operating a system so that it can handle
     emergencies safely while continuing to operate.
        "Renewable resource."  Includes technologies such as solar
     photovoltaic energy, solar thermal energy, wind power, low-head
     hydropower, geothermal energy, landfill and mine-based methane
     gas, energy from waste and sustainable biomass energy.
        "Retail customer."  A retail electric customer.
        "Retail electric customer."  A direct purchaser of electric
     power. The term excludes an occupant of a building or facility
     where the owners/operators manage the internal distribution
     system serving such building or facility and supply electric
     power and other related power services to occupants of the
     building or facility; where such owners/operators are direct
     purchasers of electric power; and where the occupants are not
     direct purchasers.
        "Transition or stranded costs."  An electric utility's known
     and measurable net electric generation-related costs, determined
     on a net present value basis over the life of the asset or
     liability as part of its restructuring plan, which traditionally
     would be recoverable under a regulated environment but which may
     not be recoverable in a competitive electric generation market
     and which the commission determines will remain following
     mitigation by the electric utility. This term includes:
            (1)  Regulatory assets and other deferred charges
        typically recoverable under current regulatory practice, the
        unfunded portion of the utility's projected nuclear
        generating plant decommissioning costs and cost obligations
        under contracts with nonutility generating projects which
        have received a commission order, the recoverability of which
        shall be determined under section 2808(c)(1) (relating to
        competitive transition charge).
            (2)  Prudently incurred costs related to cancellation,
        buyout, buydown or renegotiation of nonutility generating
        projects consistent with section 527 (relating to
        cogeneration rules and regulations), the recoverability of
        which shall be determined pursuant to section 2808(c)(2).
            (3)  The following costs, the recoverability of which
        shall be determined pursuant to section 2808(c)(3):
                (i)  Net plant investments and costs attributable to
            the utility's existing generation plants and facilities.
                (ii)  The utility's disposal of spent nuclear fuel.
                (iii)  The utility's long-term purchase power
            commitments other than the costs defined in paragraphs
            (1) and (2).
                (iv)  Retirement costs attributable to the utility's
            existing generating plants other than the costs defined
            in paragraph (1).
                (v)  Other transition costs of the utility, including
            costs of employee severance, retraining, early
            retirement, outplacement and related expenses, at
            reasonable levels, for employees who are affected by
            changes that occur as a result of the restructuring of
            the electric industry occasioned by this chapter.
     The term includes any costs attributable to physical plants no
     longer used and useful because of the transition to retail
     competition. The term excludes any amounts previously disallowed
     by the commission as imprudently incurred. To the extent that
     the recoverability of amounts that are sought to be included as
     transition or stranded costs are subject to appellate review as
     of the time of the commission determination, any determination
     to include such costs shall be reversed to the extent required
     by the results of that appellate review.
        "Transmission and distribution costs."  All costs directly or
     indirectly incurred to provide transmission and distribution
     services to retail electric customers. This includes the return
     of and return on facilities and other capital investments
     necessary to provide transmission and distribution services and
     associated operating expenses, including applicable taxes.
        "Universal service and energy conservation."  Policies,
     protections and services that help low-income customers to
     maintain electric service. The term includes customer assistance
     programs, termination of service protection and policies and
     services that help low-income customers to reduce or manage
     energy consumption in a cost-effective manner, such as the low-
     income usage reduction programs, application of renewable
     resources and consumer education.
     (Oct. 15, 2008, P.L.1592, No.129, eff. 30 days)

        2008 Amendment.  Act 129 added the defs. of "bilateral
     contract" and "default service provider." See the preamble to
     Act 129 of 2008 in the appendix to this title for special
     provisions relating to legislative finding and declarations.
        Cross References.  Section 2803 is referred to in section
     1403 of this title.