New PA Licensing Requirements For Natural Gas Suppliers And Annual Reporting Requirements For Existing Licensed Natural Gas Suppliers To Be Effective Soon
May 6, 2014
New regulations of the Pennsylvania Public Utility Commission (“PaPUC”) making clear which activities of brokers/marketers engaged in the business of supplying natural gas services in Pennsylvania require a PaPUC license were approved on May 1, 2014 by the Independent Regulatory Review Commission (“IRRC”). Prior to the new regulations, certain activities of natural gas brokers/marketers were subject to optional PaPUC licensure. The new regulations, however, clarify which activities will require a PaPUC license.
More specifically, the regulations create two new definitions. The first, a “Nonselling Marketer,” is an individual or entity under contract with a PaPUC licensed natural gas supplier (“NGS”). The second, a “Nontraditional Marketer,” is a community-based organization or common interest group that works with a licensed NGS to market natural gas service to its members but does not require members to obtain natural gas service through a specific licensed NGS. The new licensing requirements for these entities are as follows:
- Nonselling Marketer working exclusively for one NGS (operating in one or more NGDC service territories) – no PaPUC license required because of its exclusive relationship with single NGS
- Nonselling Marketer for two or more NGSs – PaPUC license required
- Nontraditional Marketer – no PaPUC license required
The new regulations also require licensed Pa NGSs to report annually by April 30 the names and addresses of Nontraditional Marketers and Nonselling Marketers who currently or will be acting as agents for the NGS in the upcoming year. Generally, if the entity is required to have its own PaPUC license, then the NGS is not required to report the information. Importantly, though, if the entity is not required to have its own PaPUC license, then the licensed NGS will be responsible for ensuring that the entity is in compliance with the Pennsylvania Sales and Marketing regulations. See https://www.pacode.com/secure/data/052/chapter111/chap111toc.html
The new regulations will revise 52 Pa Code §§ 62.101, 62.102, and 62.110 and will become effective once they are published in the Pennsylvania Bulletin. The earliest possible publication date is May 17, 2014 but publication could take as long as two months.
The PaPUC’s final rulemaking order explaining the regulations and the regulations are available at: https://www.irrc.state.pa.us/view_doc.ashx?file=File-28462.pdf&mod=Wed%2c+12+Mar+2014+15%3a51%3a37+GMT&IRRCNo=2938
This Eckert Seamans Energy and Utilities Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions about the content of this post, please contact Deanne O’Dell at dodell@eckertseamans.com; (717) 237-3744 or Dan Clearfield at (717) 237-7173; dclearfield@eckertseamans.com.