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Pennsylvania Committee Reports Democrat Bill Banning Retail Supplier Auto-Renewals, Orders Permanent Supplier License Revocation For What Could Be 6 EDI/Utility Errors Over Two Years
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The Pennsylvania House Consumer Protection, Technology & Utilities Committee has reported an amended version of HB 2131 which bans auto-renewals of retail electric fixed rate contacts for residential and small commercial service
See background on the bill here
HB 2131 would provide that each contract expiration and renewal notice sent by retail electric suppliers to residential and small commercial customers, pursuant to existing PUC rule, must include include a comparison of the cost of service under the retail supplier's offered rate and the current default service price to compare
HB 2131 provides that such comparison shall be expressed in cents per kWh and must include, "all fees
charged by the electric generation supplier for services
regardless of how charges are billed," with a comparison required to be provided for usage levels of 500 kWh, 1,000 kWh, and 1,500 kWh
HB 2131 would require that, in order to continue service with their retail supplier after a fixed price contract expiration, a residential or small commercial customer must affirmatively consent to such continued service, and the EGS must obtain such affirmative consent
The bill does not explicitly address the expiration of non-fixed rate contracts
The bill's provisions only apply to contracts which are subject to the PUC's rule governing fixed rate expiration notices and notices for, "a change in contract terms". The PUC's rule applies to residential and small business customers
HB 2131 would require that retail electric suppliers must "immediately" return to default service a mass market customer who does not affirmatively consent to continue service beyond contract expiration (or under the change in terms)
Among other penalties and remedial actions for EGS non-compliance, HB 2131 would provide that, if an EGS fails to return a customer to default service as required per the provisions described above on more than 2 occasions in a calendar year, the PUC "shall" suspend the retail supplier's license for one calendar year, "absent good cause shown".
Furthermore, HB 2131 further provides that, if a retail supplier is reinstated after such a suspension, and the EGS again fails to return a customer to default service as required per the provisions described above on more than 2 occasions in a calendar year, the PUC "shall permanently revoke" the retail supplier's license.
Notably, this permanent revocation provision does not provide for any alternative remedy for "good cause shown", unlike the suspension provision. Accordingly, under the bill, a retail supplier may have its license permanently revoked for only 6 instances of the impermissible retention of a customer, which may result from an EDI, transposition, or utility system error rather than reflecting an intent by the supplier to retain the customer (as noted, the bill requires an "immediate" drop to SOS, and, other than the singular and narrow reference to good cause shown only with respect to suspensions and not revocations, does not address situations in which the supplier: submits a drop, the drop is not processed, such error is realized by the supplier who takes further or corrective action, and the drop occurs in an expedited but not "immediate" manner)
The bill would also require that EDCs develop, via EDI, a mechanism such that EDCs will be able to determine when a customer's fixed-term plan with a retail supplier has ended.
Retail suppliers will need to submit a new EDI transaction to the utilities to maintain service to a customer who affirmatively consents to continue service after contract expiration
To the extent a customer whose fixed plan has expired remains with their EGS, with no submission of a new EDI transaction from the supplier to continue service (with such new EDI transaction indicating affirmative consent was obtained), the EDC shall drop the customer to default service, the bill provides
The bill would define affirmative consent to be either:
(i) a clear, verbal statement signifying the
customer's freely given, specific, informed and
unambiguous agreement to the contract renewal or
continuous service terms; or
(ii) a written statement, including a statement
written by electronic means.
HB 2131, part of the House Democrats' slate of energy bills, was reported by the House Committee on
Consumer Protection, Technology & Utilities by a 15-11 vote, with all 14 Democrats on the committee, and 1 Republican, voting to report the bill, with 11 Republicans opposing the reporting of the bill (the Democrats have a majority in the Pa. House and on the committee)
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Bill Requires Each Renewal Notice To Include Comparison To Price To Compare
May 6, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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