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In New Rulemaking, Pennsylvania PUC Vice Chair Says Status Quo Only "Starting Point" On Payment, Termination-Related Consumer Protections, Seeks Additional Comments, Including Applicability To Small Business
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Yesterday, the Pennsylvania PUC adopted a motion to begin a process to codify existing utility consumer protections related to residential utility payment arrangements, winter terminations, medical certifications, protections for domestic violence victims, and similar protections (Docket M-2024-3052328)
The residential protections which the PUC has moved to codify generally reflect existing practice, and formal re-adoption in rule is now being proposed because the underlying statute requiring the protections has expired
Previously contained in Chapter 14 of the Public Utility Code, the now-sunset statute was meant to eliminate opportunities for customers capable of paying to avoid the timely payment of utility
bills, and to provide utilities with the means to reduce their uncollectible accounts by
modifying the procedures for delinquent account collections.
The residential protections do not directly impact retail suppliers, but to the extent the protections, and any programs related to such, impact uncollectibles (either by increasing uncollectibles due to shutoff protections or decreasing uncollectibles by providing a manageable payment arrangement), such uncollectibles would be reflected in purchase of receivables discount rates.
However, while continuation of existing practice, which has been directed by the PUC, would not change the status quo for retail suppliers in this regard, the rulemaking could serve as a forum to expand customer protections related to utility collections, payment arrangements, disconnections, and similar matters. A change in the status quo could impact utility uncollectibles, and, again, POR discounts.
In other jurisdictions, excessive increases in uncollectibles has prompted reviews of POR programs, and reviews of retail supply generally
A potential expansion of some or all of the residential protections to small business, and the attendant impact on non-residential uncollectibles, is notable.
Pa. PUC Vice Chair Kimberly Barrow said in a statement that the PUC's direction for the development of a proposal to adopt as rule the status quo protections, "is only a starting point for this proceeding and not the ultimate goal."
Citing the sunset of the legislative requirement for the current protections, Barrow stated, "I agree that the time is right to determine the next steps on utility and customer protections. I believe that the status quo is only a starting point for this proceeding and not the ultimate goal".
Barrow sought comments on the following topics:
• Payment arrangement lengths
• Extending payment arrangements to small businesses
• Term length for restarting the clock for defaulted and fulfilled payment arrangements
• Removing the PGW specific provisions
In terms of the PUC's action, the PUC specifically directed that Staff develop a Notice of Proposed Rulemaking, to be considered at a PUC meeting early in 2026. The NOPR would then be subject to further stakeholder comment.
The relevant expired statute that the PUC seeks to codify in rule is Chapter 14, 66 Pa.C.S. §§ 1401–1419 (attendant rules are currently housed in Chapter 56 of the Pa. Code, but the rules' effectiveness, absent a PUC policy statement to continue the rules, was linked to the sunset of the statute, hence the need to re-codify the rules)
These statutory and rule provisions generally do not apply to retail suppliers, and the PUC's retail market rules are contained in a separate chapter of the Pa. Code
Additionally, the expired statute and existing rules being preserved by the PUC are generally not where the rules concerning the customer assistance program (CAP) are housed, which is in Chapter 54 of the Pa. Code. Still, in any discussion concerning consumer protection and affordability, CAP eligibility and other rules should be kept in mind as potentially impacted. Generally, most CAP customers in Pennsylvania are not eligible for retail energy choice
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November 21, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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