Pennsylvania PUC Proposes New Natural Gas Disclosure Regulations

The Pennsylvania PUC has proposed to adopt new rules concerning natural gas disclosure regulations and related issues.

Many of the proposed rules borrow from recent changes in the electric disclosure rules, with some changes based on experience with such rules to date.

The rules provide that for variable rates, the disclosure statement shall explicitly either list any rate ceiling for the plan, or, if no cap exists for the variable rate, shall list that there is no limit to the variable rate.

"The information concerning limits, or lack thereof, should also be highlighted in a larger type size that stands out to the customer," the PUC said.

The disclosure statement also requires the supplier to disclose the "initial, starting price," for the product.

Due to potential future implementation of accelerated switching in the gas industry, the PUC proposes that the starting price must be in effect for at least the first full "billing month" as opposed to first billing cycle

Billing month would be defined as, "a period of not less than 26 days and not more than 35 days."

"We solicit comments on whether a formulaic contract price that enables a customer to calculate its bill using the contract, publicly available rates or price indices should be considered in compliance with the provision of adequate disclosure of price for the first billing cycle," the PUC said.

A one-page contract summary would require similar information as listed above.

Suppliers would be required to disclose to customers the previous 24 months’ average monthly billed prices for that customer’s rate class and NGDC service territory

The PUC proposes that suppliers be required to send two notices (an initial notice and options notice) to customers on plans which will automatically renew at the end of their term.

If a customer fails to respond to the options notice and automatically is converted to a month-to-month contract, the supplier would be required to provide notice of a subsequent change in price at least 30 days prior to the new price being charged.

Customers who are automatically placed onto a new contract after not responding to their expiration notices shall not be charged an early termination fee, regardless of whether the auto-renewal plan is fixed or variable.

Docket No. L-2015-2465942