Press Release

PUC Seeks Comments on Proposed Rulemaking for Natural Gas Supplier Disclosure Statements

Published on 3/26/2015

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a proposed rulemaking that would provide natural gas shopping customers with greater detail in natural gas supplier (NGS) disclosure statements and more timely information on “contract renewal” and “change in terms” notices. The proposed rulemaking follows a regulation implemented last year for electric generation suppliers.

The Commission voted 5-0 to seek comments on a proposed rulemaking that would require NGSs to display key contractual terms and conditions more clearly for customers on both fixed- and variable-rate products, provide historical pricing data on their products and prominently mark customer notices prior to contract expiration or changes in terms. The changes are designed to provide additional information and greater protections for residential and small business customers choosing a competitive supplier for their natural gas service.

“We have seen success with a rulemaking implemented last year to ensure electric suppliers are transparent and are consistent in educating their customers on contract details, potential price fluctuations and changes in contract terms,” said PUC Chairman Robert F. Powelson. “After examining the benefits of that rulemaking to electric shopping customers, we determined it is not only beneficial, but necessary to apply similar standards to natural gas suppliers.”

Written comments shall be submitted within 30 days of publication in the Pennsylvania Bulletin. Further instructions on filing comments will be contained in the Final Order.

The proposed regulations include:

• More contractual information on conditions of price variability, including whether there are limits on variability;
• A clear statement of the price per unit for the first billing cycle of natural gas generation;
• Customer access to historical pricing information;
• Separate mailings for either fixed-term contracts that are expiring, or any changes to terms of service;
• A separate NGS contract summary along with the full disclosure statement to ensure NGSs highlight key terms and conditions in a uniform, consistent manner;
• New requirements for contract “Initial Notices” and customer “Options Notice” prior to the expiration of a contract or change in terms;
• A renewed emphasis on highlighting changes in pricing or any terms and conditions – including a fixed rate becoming a month-to-month rate that includes a 30-day notice of any price change; and
• Prominent marking on front of the “Options Notice” envelope clearly stating that it contains important information regarding the expiration or changes in terms of a customer’s electric supply contract.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket No. L-2015-2465942

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• Deputy Press Secretary
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