Pennsylvania Utility Restructuring Legislation

Legislation Cite and Date
HB 1590 (11/96) Electricity Generation Customer Choice & Competition Act
HB 1331 (11/99) Natural Gas Choice and Competition Act

Low-Income Provisions
Restructuring legislation states that "the Commonwealth must, at a minimum, continue the protections, policies, and services that now assist customers who are low-income to afford electric service." It also states that "electric distribution companies should continue to be the provider of last resort in order to ensure the availability of universal electric service in this Commonwealth unless another provider of last resort is approved by the Commission."

Low-Income Rate Assistance
Electric restructuring plans filed by eight major electric utilities went into effect January 1, 1999; gas utilities followed during 2000 through 2003. The most common form of rate assistance in Pennsylvania is the Customer Assistance Program (CAPs), which usually provide a percentage-of-bill plan or a percentage-of-income payment plan, wherein low-income customers’ utility payments are based upon their incomes and/or utility bills. Some programs include utility arrearage forgiveness; others provide flat rate discounts or bill credits.

Low-Income Conservation
Provided through the Low-Income Usage Reduction Program (LIURP), which was mandated by a 1987 Public Utility Commission (PUC) order and continued under the universal service provisions of restructuring legislation.

Annual Funding (2007)
Rate Assistance: $147.6 million (electric); $182.7 million gas
Conservation: $20.5 million (electric); $7.5 million gas

Funding Mechanism
Non-bypassable distribution service charges, all gas and electric residential customers contribute

Administration
Utilities

Pre-Restructuring Funding
Rate Assistance: $26 million (electric); $20.6 million (gas)
Conservation: $10.2 million (electric); $7.4 million (gas)

Reports / Evaluations
Report on 2007 Universal Service Programs and Collection Performance of the Pennsylvania Electric Distribution and Natural Gas Distribution Companies, the PUC’s annual report on universal service programs.

Annual reports from the Natural Gas Task Force

Additional information on Pennsylvania 's universal service, including the above-mentioned Final Order, can be found at www.puc.state.pa.us/electric/electric_index.aspx

Page Last Updated: September 3, 2008