HB 2156 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for municipal consortium power purchasing.

PRINTER'S NO.     2790

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 2156
                                                 Session of
                                                   2026

     INTRODUCED BY DAY, JANUARY 23, 2026

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, JANUARY 26, 2026


                                      AN ACT
 1   Amending Title 66 (Public Utilities) of the Pennsylvania
 2      Consolidated Statutes, in restructuring of electric utility
 3      industry, providing for municipal consortium power
 4      purchasing.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Title 66 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a section to read:
 9   § 2816.    Municipal consortium power purchasing.
10      (a)    Municipal authority to aggregate.--A municipality may
11   establish a municipal consortium power purchasing program to
12   aggregate the electric load of residential customers within the
13   jurisdiction of the municipality who voluntarily opt in, in
14   accordance with the following:
15             (1)   The municipality shall act as an aggregator under
16      the authority of 8 Pa.C.S. § 24A01 (relating to definitions)
17      and this section without requiring a license as an electric
18      generation supplier under 52 Pa. Code § 54.32 (relating to
19      application process).
 1            (2)   The program shall be limited to residential
 2      customers within the same electric distribution company
 3      territory to ensure uniform rate applicability.
 4            (3)   The municipality shall negotiate with one or more
 5      electric generation suppliers to procure a rate below the
 6      default rate for participants. If no rate below the default
 7      rate is secured, participants shall be enrolled in the
 8      default rate of the electric distribution company.
 9            (4)   With written authorization from the governing body
10      of an adjacent or contiguous municipality, a municipality may
11      extend the program to residential customers within that
12      municipality's jurisdiction, provided that all residential
13      customers remain within the same electric distribution
14      company territory.
15      (b)   Opt-in requirement and consumer protections.--
16   Participation in the program shall be voluntary, requiring
17   affirmative opt-in by each residential customer through a
18   process established by the municipality, including written or
19   electronic consent. A municipality implementing a municipal
20   consortium power purchasing program shall:
21            (1)   Provide clear disclosure of program terms, including
22      the potential for no savings, the default rate fallback and
23      the right to opt out at any time without penalty, consistent
24      with 52 Pa. Code § 54.5 (relating to disclosure statement for
25      residential and small business customers).
26            (2)   Comply with 52 Pa. Code § 54.4 (relating to bill
27      format for residential and small business customers).
28            (3)   Comply with 52 Pa. Code § 54.7 (relating to
29      marketing/sales activities).
30            (4)   Protect residential customer information under 52

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 1    Pa. Code § 54.8 (relating to privacy of customer
 2    information).
 3          (5)   For programs involving renewable energy sources,
 4    comply with the act of November 30, 2004 (P.L.1672, No.213),
 5    known as the Alternative Energy Portfolio Standards Act, as
 6    applicable under section 2814 (relating to additional
 7    alternative energy sources).
 8          (6)   Establish an annual enrollment period in accordance
 9    with the following:
10                (i)    Residents shall indicate intent to participate
11          no later than September 15 each year. The indication
12          shall include the resident's average monthly kilowatt-
13          hours usage from the prior 12 months, as shown on the
14          electric distribution company bill.
15                (ii)    On or before October 20, the municipality shall
16          notify all residents who indicated intent under
17          subparagraph (i) the secured rate and term.
18                (iii)    Residents must affirmatively elect to
19          participate by October 30. Election to participate shall
20          be binding for the 12-month period beginning with the
21          first billing cycle in November.
22                (iv)    Once elected, a participant may not opt out
23          before the end of the 12-month period except in cases of
24          relocation outside the electric distribution company
25          territory or extenuating circumstances approved by the
26          municipality.
27    (c)   No-cost participation and administrative fee.--
28          (1)   The municipal consortium power purchasing program
29    shall be offered at no cost to residential customers,
30    including no enrollment or participation fees.

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 1          (2)   A municipality may collect an administrative fee not
 2    exceeding 1% of the total savings achieved by participants,
 3    calculated as the difference between the default rate and the
 4    procured rate multiplied by the total kilowatt-hours consumed
 5    by participants. The fee shall be disclosed to participants
 6    prior to enrollment and reported to the commission annually.
 7          (3)   The administrative fee under paragraph (2) shall be
 8    collected by the electric generation supplier and remitted
 9    monthly to the municipality, itemized on residential
10    customer's bills as "municipal administrative fee."
11          (4)   If no savings are achieved, no administrative fee
12    shall be collected.
13    (d)   Program implementation.--The municipality shall:
14          (1)   Issue a competitive request for proposals to
15    electric generation suppliers to procure a rate for the
16    aggregated load, ensuring transparency and compliance with
17    municipal procurement laws.
18          (2)   Coordinate with the electric distribution company to
19    enroll participants in the selected electric generation
20    supplier's rate or the default rate, as applicable,
21    consistent with 52 Pa. Code § 54.1 (relating to purpose).
22          (3)   Establish a resident advisory committee to provide
23    input on program design, supplier selection and performance
24    evaluation.
25          (4)   Register the program and disclose the secured rate
26    on the PA Power Switch platform within 10 days of electric
27    generation supplier selection.
28          (5)   Ensure all program participant billing, payment and
29    residential customer service functions remain within the
30    electric distribution company. The electric generation

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 1      supplier shall provide generation charges to the electrical
 2      distribution company for inclusion on the consolidated bill
 3      in accordance with 52 Pa. Code § 54.4 (relating to bill
 4      format for residential and small business customers).
 5      (e)   Reporting requirements.--A municipality operating a
 6   consortium power purchasing program shall submit an annual
 7   report to the commission's Bureau of Conservation, Economics and
 8   Energy Planning under 52 Pa. Code § 54.203 (relating to
 9   reporting requirements), including:
10            (1)   The total energy procured in kilowatt-hours.
11            (2)   The procured rate compared to the default rate.
12            (3)   Total savings achieved, if any, and any
13      administrative fee collected.
14            (4)   The number of residential customer accounts
15      enrolled.
16            (5)   A summary of resident feedback and complaints, with
17      resolutions.
18            (6)   The number of program participants who attempted to
19      opt out prior to the end of the 12-month period and the
20      disposition of each request.
21      (f)   Enforcement and audits.--
22            (1)   The commission shall enforce this section under
23      section 501 (relating to general powers) and 52 Pa. Code §
24      54.43 (relating to standards of conduct and disclosure for
25      licensees).
26            (2)   A violation of this section may result in a fine or
27      other penalty under section 3301 (relating to civil penalties
28      for violations).
29            (3)   The commission may audit a municipality's compliance
30      with this section, consistent with section 1307(d) (relating

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 1      to sliding scale of rates; adjustments).
 2      (g)   Scope.--This section shall apply to municipal consortium
 3   power purchasing programs established on or after the effective
 4   date of this section.
 5      (h)   Regulations.--The Pennsylvania Public Utility Commission
 6   shall promulgate regulations to implement this section.
 7      (i)   Definitions.--As used in this section, the following
 8   words and phrases shall have the meanings given to them in this
 9   subsection unless the context clearly indicates otherwise:
10      "Default rate."   The price to compare rate established by an
11   electric distribution company under section 2807 (relating to
12   duties of electric distribution companies) and 52 Pa. Code §
13   54.182 (relating to definitions).
14      "Electric distribution company."    As defined in section 2803
15   (relating to definitions).
16      "Electric generation supplier."     An entity licensed under 52
17   Pa. Code § 54.32 (relating to application process) to provide
18   electric generation service.
19      "Municipal consortium power purchasing program" or "program."
20   A program established by a municipality to aggregate the
21   electric load of residential customers who voluntarily opt in
22   for the purpose of procuring electric generation service at a
23   rate below the default rate.
24      "Municipality."   A borough, township, city or county as
25   defined in 8 Pa.C.S. § 101.1 (relating to definitions).
26      "PA Power Switch platform."    The online platform maintained
27   by the commission, known as www.PaPowerSwitch.com or its
28   successor, for comparing and selecting electric generation
29   suppliers, as referenced in 52 Pa. Code § 54.5(e)(13) (relating
30   to disclosure statement for residential and small business

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1   customers).
2      "Residential customer."   A customer purchasing electric
3   generation service for residential use, as defined in 52 Pa.
4   Code § 54.2 (relating to definitions).
5      Section 2.   All regulations and parts of regulations are
6   abrogated to the extent of any inconsistency with this act.
7      Section 3.   This act shall take effect in 180 days.




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