Pennsylvania SB 1114: An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for large load customers; and making editorial changes.

Bill Text

PRINTER'S NO. 1358
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1114
Session of
2025
INTRODUCED BY MUTH, CAPPELLETTI, SAVAL, BROWN, KANE, KEARNEY,
COMITTA AND L. WILLIAMS, DECEMBER 15, 2025
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
DECEMBER 15, 2025
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, providing for large load customers; and making
editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 28 heading of Title 66 of the
Pennsylvania Consolidated Statutes is amended to read:
CHAPTER 28
RESTRUCTURING OF ELECTRIC UTILITY INDUSTRY
AND LARGE LOAD CUSTOMERS
Section 2. Chapter 28 of Title 66 is amended by adding a
subchapter heading immediately preceding section 2801 to read:
SUBCHAPTER A
RESTRUCTURING OF ELECTRIC UTILITY INDUSTRY
Section 3. Sections 2801, 2802(12), (13), (14) and (15),
2803, 2804(4), (10) and (16)(i), 2805(b)(1)(i), 2806(a), (c) and
(g), 2807(b), 2808(b), (c)(1) and (5) and (e) introductory
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paragraph, 2809(a), (b), (c) and (d), 2810(h) and (j) and
2812(a)(2) introductory paragraph, (b)(5)(ii), (f) and (g) of
Title 66 are amended to read:
§ 2801. Short title of [chapter] subchapter.
This [chapter] subchapter shall be known and may be cited as
the Electricity Generation Customer Choice and Competition Act.
§ 2802. Declaration of policy.
The General Assembly finds and declares as follows:
* * *
(12) The purpose of this [chapter] subchapter is to
modify existing legislation and regulations and to establish
standards and procedures in order to create direct access by
retail customers to the competitive market for the generation
of electricity while maintaining the safety and reliability
of the electric system for all parties. Reliable electric
service is of the utmost importance to the health, safety and
welfare of the citizens of the Commonwealth. Electric
industry restructuring should ensure the reliability of the
interconnected electric system by maintaining the efficiency
of the transmission and distribution system.
(13) Under current law and regulation there exists some
competition in the wholesale market for the generation of
electricity, but the generation, transmission, distribution
and retail sale of electricity is provided generally by
public utilities under bundled rates regulated by the
commission. The procedures established under this [chapter]
subchapter provide for a fair and orderly transition from the
current regulated structure to a structure under which retail
customers will have direct access to a competitive market for
the generation and sale or purchase of electricity.
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(14) This [chapter] subchapter requires electric
utilities to unbundle their rates and services and to provide
open access over their transmission and distribution systems
to allow competitive suppliers to generate and sell
electricity directly to consumers in this Commonwealth. The
generation of electricity will no longer be regulated as a
public utility function except as otherwise provided for in
this chapter. Electric generation suppliers will be required
to obtain licenses, demonstrate financial responsibility and
comply with such other requirements concerning service as the
commission deems necessary for the protection of the public.
(15) In establishing the standards for the transition to
and creation of a competitive electric market, heretofore,
public utilities generally have had an obligation to serve
customers within their defined service territories;
consistent with that obligation, have undertaken long-term
investments in generation, transmission and distribution
facilities in order to meet the needs of their customers; and
have entered into long-term power supply agreements as
required by Federal law. In many instances, these investments
and agreements have created costs which may not be
recoverable in a competitive market. The commission is
empowered under this [chapter] subchapter to determine the
level of transition or stranded costs for each electric
utility and to provide a mechanism, the competitive
transition charge, for recovery of an appropriate amount of
such costs in accordance with the standards established in
this chapter.
* * *
§ 2803. Definitions.
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The following words and phrases when used in this [chapter]
subchapter 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 b