Pennsylvania PUC to Reconsider Exemption from Licensing for Gas Marketing Consultants, Non-traditional Marketers

The Pennsylvania PUC this morning voted to open a rulemaking to examine the regulations regarding natural gas supplier (NGS) licensing requirements, and specifically whether to continue current exemptions from the licensing requirements.

As previously noted, "marketing services consultants" and non-traditional marketers are not required to obtain a Pennsylvania gas supplier license if they operate under a contract with an NGS, as the licensed supplier relying on such third parties for customer acquisition is responsible for the parties' actions. Marketing service consultants include telemarketers, auction websites, and similar agent-consultants.

Despite the lack of a licensing requirement for such entities, many entities have nevertheless sought licenses (in part because no similar exemption exists from the electric licensing requirements), which have been granted if the companies meet the licensing criteria.

"Due to the non-compulsory nature of licensing such entities and the amount of direct interaction these entities have with retail customers, combined with the fact that the licensed marketing services consultants and/or nontraditional marketers may gain a competitive edge or perceived higher level of credibility over other unlicensed entities providing the same types of services, I believe that now is the time to conduct a review of the Commission's regulations outlining the licensing requirements for natural gas suppliers," said Commissioner Pamela Witmer in a motion to open the rulemaking.

Witmer further said that her own belief is that the exemption from licensing should be terminated, and that all "natural gas aggregators, marketers and brokers" should be required to be licensed.

The current exemptions will remain in effect until the PUC issues an order stating otherwise.