Section 54.5. Disclosure statement for residential and small business customers

(a) The agreed upon prices in the disclosure statement must reflect the marketed prices and the billed prices.

(b) The EGS shall provide the customer written disclosure of the terms of service at no charge whenever:

(1) The customer requests that an EGS initiate service.

(2) The EGS proposes to change the terms of service.

(3) Service commences from a default service provider.

(c) The contract’s terms of service shall be disclosed, including the following terms and conditions, if applicable:

(1) Generation charges shall be disclosed according to the actual prices.

(2) The variable pricing statement must include:

(i) Conditions of variability (state on what basis prices will vary).

(ii) Limits on price variability:

(A) If there is a limit on price variability, such as a specific price cap, a maximum percentage increase in price between billing cycles or minimum/maximum charges per kilowatt-hour for electricity during the term of the contract, the EGS shall clearly explain the applicable limits.

(B) If there is not a limit on price variability, the EGS shall clearly and conspicuously state that there is not a limit on how much the price may change from one billing cycle to the next.

(iii) The price to be charged, per kilowatt-hour, for the first billing cycle of generation service.

(3) An itemization of basic and nonbasic charges distinctly separate and clearly labeled.

(4) The length of the agreement, which includes:

(i) The starting date.

(ii) The expiration date, if applicable.

(5) An explanation of sign-up bonuses, add-ons, limited time offers, other sales promotions and exclusions, if applicable.

(6) An explanation of prices, terms and conditions for special services, including advanced metering deployment, if applicable.

(7) The cancellation provisions, if applicable.

(8) The renewal provisions, if applicable.

(9) The name and telephone number of the default service provider.

(10) An explanation of limits on price variability, penalties, fees or exceptions, printed in type size larger than the type size appearing in the terms of service.

(11) Customer contact information that includes the name of the EDC and EGS, and the EGS’s address, telephone number, Commission license number and Internet address, if available. The EGS’s information must appear first and be prominent.

(12) A statement that directs a customer to the Commission if the customer is not satisfied after discussing the terms of service with the EGS.

(13) The name and telephone number for universal service program information.

(14) For contracts with variable pricing, the EGS must provide:

(i) A telephone number and Internet address at which a customer may obtain the previous 24 months’ average monthly billed prices for that customer’s rate class and EDC service territory. If an EGS has not been providing generation service in a rate class and EDC service territory for 24 months, the EGS shall provide the average monthly billed prices for the months available to date.

(ii) In plain language, a statement that historical pricing is not indicative of present or future pricing.

(d) Customers shall be provided a 3-day right of rescission period following receipt of the disclosure statement.

(1) The 3-day right of rescission is 3 business days.

(2) The 3-day right of rescission begins when the customer receives the written disclosure.

(3) The customer may cancel in writing, orally or electronically, if available.

(4) Waivers of the 3-day right of rescission are not permitted.

(e) Definitions for generation charges and transmission charges, if applicable, are required and shall be defined in accordance with the ‘‘Common Electric Competition Terms.’’ Definitions for each of the nonbasic services, if applicable, are required. The definition section of the bill must be distinctly separate.

(f) The EGS shall include in the customer’s disclosure statement the following statements which may appear together in a paragraph:

(1) ‘‘Generation prices and charges are set by the electric generation supplier you have chosen.’’

(2) ‘‘The Public Utility Commission regulates distribution prices and services.’’

(3) ‘‘The Federal Energy Regulatory Commission regulates transmission prices and services.’’

(g) Disclosure statements must include the following customer notification: ‘‘If you have a fixed term contract approaching the expiration date, or whenever we propose to change the terms of service in any type of contract, you will receive two separate written notifications that precede either the expiration date or the effective date of the proposed changes. These notifications will explain your options going forward.’’

(h) If the default service provider changes, the new default service provider shall notify customers of that change, and provide customers with its name, address, telephone number and Internet address, if available.

(i) The EGS shall provide, with the disclosure statement, a separate EGS contract summary in a format provided by the Commission.

The provisions of this § 54.5 amended September 14, 2007, effective September 15, 2007, 37 Pa.B. 4996; amended June 13, 2014, effective June 14, 2014, 44 Pa.B. 3522. Immediately preceding text appears at serial pages (367173) to (367174).

Notation

Cross References

This section cited in 52 Pa. Code § 54.1 (relating to purpose); 52 Pa. Code § 54.10 (relating to notice of contract expiration or change in terms for residential and small business customers); 52 Pa. Code § 57.173 (relating to customer contacts the EGS to request a change in electric supply service); 52 Pa. Code § 75.13 (relating to general provisions); 52 Pa. Code § 111.2 (relating to definitions); 52 Pa. Code § 111.7 (relating to customer authorization to transfer account; transaction; verification; documentation); 52 Pa. Code § 111.11 (relating to receipt of disclosure statement and right to rescind transaction); and 52 Pa. Code § 111.12 (relating to consumer protection).