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Pennsylvania Senate Energy Committee Chair Says Retail Market Limits Proposed In PUC Default Service Case Are Matters For Legislature, Not PUC
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Pennsylvania State Senator Gene Yaw has said in a letter to Pa. PUC Chair Steven DeFrank and other PUC Commissioners that various proposed retail market limits proposed in the default service proceeding of FirstEnergy Pennsylvania are policies that are properly addressed before the state legislature, not a PUC default service proceeding
As first reported by EnergyChoiceMatters.com (full details here), a contested settlement in FE PA's default service case would ban automatic renewals (requiring a drop of customers to default service absent affirmative consent) and would require retail supplier rates to be below the default service rate, at the time of enrollment, for the supplier to be eligible for purchase of receivables
Yaw, a Republican, chairs the Senate's Committee on Environmental Resources & Energy. The Pennsylvania Senate is majority Republican
Yaw observed that the proposed changes in the default service proceeding could, "fundamentally alter Pennsylvania’s competitive electricity market through administrative action
rather than legislative direction."
Citing the policy of customer choice enshrined in state law, Yaw wrote that, "significant
changes to retail competition, customer enrollment practices, supplier participation, or market
operations should be authorized by the General Assembly rather than created through
administrative proceedings."
Yaw wrote that the existing balance of consumer protections,
competitive market development, customer choice, and electric distribution companies’ default
service obligations reflect "deliberate policy decisions" that were made by the Commonwealth’s elected representatives
"The Commission’s role is to faithfully execute the statute enacted by the legislature, not to
redefine the policy judgments it contains. When proposed regulatory changes alter the balance
between customer choice and default service, change the rules under which competitive suppliers
operate, or reshape the competitive market, those issues become matters of legislative policy," Yaw wrote
"There is a meaningful distinction between implementing existing law and making new law. The
former falls within the Commission’s jurisdiction; the latter rests with the General Assembly.
Pennsylvania’s constitutional framework depends on maintaining that separation of powers," Yaw wrote
"Reasonable people may disagree with specific aspects of the retail electricity market, and
reforms may warrant consideration. However, when proposed changes represent substantial
departures from the competitive market structure established by statute, they should be debated
transparently through the legislative process, with public input, stakeholder engagement,
committee review, and consideration of broader policy implications," Yaw wrote
"The General Assembly remains the appropriate forum for major changes to Pennsylvania’s
electricity market design. If additional statutory direction is needed, the legislature can evaluate
those issues and provide clear guidance," Yaw wrote
"I respectfully encourage the Commission to exercise restraint where proposed actions may
exceed implementation of existing law and venture into new market policy. Doing so will
preserve the legislature’s role in establishing energy policy and maintain public confidence in
Pennsylvania’s regulatory and constitutional processes," Yaw wrote
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Encourages "Restraint" By PUC In Evaluating Actions Which Are Beyond Existing Law
October 2, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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