Pennsylvania Adopts New Definition of Marketers Required to Be Licensed

The Pennsylvania PUC, in an order on reconsideration, has revised one of the definitions regarding whether certain natural gas marketers require a license from the Commission.

Specifically, the PUC has revised the definition of "nontraditional marketer" to make the definition broader. Nontraditional Marketers are not required to obtain a natural gas supplier license from the PUC.

In August, the PUC defined nontraditional marketer as excluding groups such as community-based organizations and civic, fraternal or business associations if such groups are compensated by the licensed retail supplier if members or constituents enroll with the licensed supplier. In other words, these civic organizations would be required to have a natural gas supplier license if they received compensation from the retail supplier.

Washington Gas Energy Services petitioned for reconsideration on this point, stating that the issue of compensation disqualifying these community-based organizations and civic, fraternal or business associations from the licensing exemptions had never been proposed through the pendency of the PUC's review of the licensing issues, and there were no grounds provided for such exclusion

In response, the PUC agreed that it was appropriate to revise the definition on reconsideration, since, "the receipt of a fee does not bring the Nontraditional Marketer within the Act's definition of 'Natural Gas Supplier,' because the Nontraditional Marketer will still not be engaged in the sale or arranging of natural gas supply service to retail customers."

Accordingly, the PUC has now defined "nontraditional marketer" to mean, "a community-based organization, civic, fraternal or business association, or common interest group that works with a licensed NGS as an agent to market natural gas service to its members or constituents. A nontraditional marketer may not require its members or constituents to obtain its natural gas service through a specific licensed NGS."

A nontraditional marketer is not required to obtain a license from the PUC

Language stating that a nontraditional marketer may not be compensated by the licensed supplier if members or constituents enroll with the licensed supplier has been stricken.

Docket L-2011-2266832