HB 2196 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, providing for consumer choice billing; imposing penalties; and making repeals.

PRINTER'S NO.   2887

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 2196
                                                 Session of
                                                   2026

     INTRODUCED BY METZGAR, BANTA, ZIMMERMAN, KOZAK, K. HARRIS,
        MALAGARI, ORTITAY, JAMES, PICKETT, O'NEAL, WATRO, WARNER,
        T. DAVIS, FRITZ, KAIL, KAUFFMAN, KUTZ, TOMLINSON, BARTON,
        CAUSER, KRUPA, MULLINS AND STRUZZI, FEBRUARY 4, 2026

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, FEBRUARY 5, 2026


                                      AN ACT
 1   Amending Title 66 (Public Utilities) of the Pennsylvania
 2      Consolidated Statutes, providing for consumer choice billing;
 3      imposing penalties; and making repeals.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.      Title 66 of the Pennsylvania Consolidated
 7   Statutes is amended by adding a chapter to read:
 8                                 CHAPTER 22A
 9                           CONSUMER CHOICE BILLING
10   Sec.
11   22A01.   Scope of chapter.
12   22A02.   Declaration of policy.
13   22A03.   Definitions.
14   22A04.   Authorization of consumer choice billing.
15   22A05.   Implementation plans.
16   22A06.   Report.
17   22A07.   Penalties.
 1   § 22A01.   Scope of chapter.
 2      This chapter provides for enhanced retail electric and
 3   natural gas competition through the adoption of electric and
 4   natural gas consumer choice billing and enhanced consumer
 5   protection regulations to be promulgated and enforced by the
 6   commission.
 7   § 22A02.   Declaration of policy.
 8      The General Assembly finds and declares as follows:
 9          (1)     Reasonably priced reliable sources of electricity
10      and natural gas generated and supplied in this Commonwealth
11      are vital to the health, safety and welfare of this
12      Commonwealth's residents, businesses and economy.
13          (2)     Numerous states, including this Commonwealth, have
14      transitioned to a restructured energy market that has lowered
15      the cost of electricity and natural gas and spurred
16      technological and product innovations by authorizing
17      competitive retail electric and natural gas supplier
18      shopping.
19          (3)     The former provisions of 15 Pa.C.S. Ch. 74 (relating
20      to generation choice for customers of electric cooperatives)
21      and Chapters 22 (relating to natural gas competition) and 28
22      (relating to restructuring of electric utility industry)
23      allow retail competition among electric and natural gas
24      generation companies in order to lower consumer costs while
25      maintaining regulation and supervision of electric and
26      natural gas transmission and distribution services.
27          (4)     The year 2026 marked the 30th anniversary of the
28      enactment of the former provisions of 15 Pa.C.S. Ch. 74, the
29      27th anniversary of the enactment of the Natural Gas Choice
30      and Competition Act and the 30th anniversary of the enactment

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 1    of the Electricity Generation Customer Choice and Competition
 2    Act, yet according to utility shopping statistics released in
 3    October 2025 by the Pennsylvania Public Utility Commission,
 4    only 23% of residential electric consumers and 11.3% of
 5    residential natural gas consumers are served by an
 6    alternative service supplier, which is an indication that
 7    there is tremendous growth potential in this Commonwealth's
 8    residential electric and natural gas consumer market.
 9        (5)   In markets where suppliers do not have access to
10    smart meter data or the ability to render consolidated bills,
11    consumers are restricted to one-size-fits-all rates that
12    provide limited benefits.
13        (6)   These basic rates may meet the needs of some
14    consumers, but consolidated billing enables the development
15    of pricing plans and offers that meet the unique needs of all
16    consumers, including time-varying rates, demand response and
17    renewable energy plans.
18        (7)   While consumers in this Commonwealth have invested
19    billions of dollars into the deployment of more than
20    5,000,000 smart meters across this Commonwealth, regulated
21    electric and natural gas distribution utilities have not
22    capitalized on this consumer usage data to offer cost-
23    effective and affordable time-of-use products to consumers.
24        (8)   Maintaining the status quo of retail electric and
25    natural gas policies is not sound public policy given the
26    turbulence in residential electric and natural gas rates and
27    the historic public and private financial investments in this
28    Commonwealth's ever-changing energy marketplace.
29        (9)   By allowing a direct relationship between retail
30    electric and natural gas suppliers and consumers who choose

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 1      to shop, consumer choice billing will enable suppliers to
 2      clarify their role with consumers, who may believe that they
 3      are only consumers of the utility regardless of their retail
 4      supplier, and solidify that role by providing the products
 5      and services the consumers desire.
 6          (10)   The commission's mission is to balance the needs of
 7      consumers and utilities, ensure safe and reliable utility
 8      service, educate consumers on making independent and informed
 9      utility choices and foster new technologies and competitive
10      markets in an environmentally sound manner.
11          (11)   To achieve a fully functioning competitive electric
12      and natural gas market in this Commonwealth, the commission
13      has the legal and regulatory authority to promote and further
14      incentivize the development of dynamic electric and natural
15      gas supplier product offerings to consumers and improve
16      utility consumer service through the adoption and regulation
17      of consumer choice billing.
18   § 22A03.   Definitions.
19      The following words and phrases when used in this chapter
20   shall have the meanings given to them in this section unless the
21   context clearly indicates otherwise:
22      "Applicant."   An entity pursuing a new or amended electric
23   generation supplier or natural gas supplier license issued by
24   the commission.
25      "Consumer."    A residential, commercial or industrial retail
26   electric or natural gas customer.
27      "Consumer choice billing."    The consolidated billing of
28   retail electric and natural gas services, as provided by an
29   electric generation supplier or natural gas supplier for all
30   electric or natural gas charges, including electric or natural

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 1   gas distribution and transmission charges.
 2      "Electric distribution company."      As defined in section 2803
 3   (relating to definitions).
 4      "Electric generation supplier."      As defined in section 2803.
 5      "Natural gas distribution company."      As defined in section
 6   2202 (relating to definitions).
 7      "Natural gas supplier."     As defined in section 2202.
 8   § 22A04.    Authorization of consumer choice billing.
 9      (a)     Duty.--The commission shall promulgate temporary
10   regulations to authorize consumer choice billing, including all
11   of the following:
12            (1)   Providing adequate consumer billing protections for
13      consumers who select an alternative electric generation
14      supplier or natural gas supplier and elect to be billed by
15      the alternative electric generation supplier or natural gas
16      supplier.
17            (2)   Increasing competition in this Commonwealth's
18      electric generation supplier and natural gas supplier
19      marketplaces and fostering the development of direct and
20      transparent relationships between suppliers and their
21      consumers.
22      (b)     Implementation.--For the purpose of implementing this
23   section, the temporary regulations promulgated by the commission
24   under subsection (a) shall include all of the following:
25            (1)   An additional application requirement for the new
26      licensure of an electric generation suppler or natural gas
27      supplier, or the amendment of an existing electric generation
28      suppler or natural gas supplier license to provide for
29      consumer choice billing if the applicant maintains a current
30      and valid license issued by the commission and submits a

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 1    statement confirming that the applicant will not offer or
 2    provide consumer choice billing absent the commission's
 3    authorization for the provisioning of consumer choice
 4    billing. Nothing in this act may be construed to require an
 5    electric generation supplier or natural gas supplier to apply
 6    to or participate in consumer choice billing.
 7        (2)   A requirement that an applicant seeking to provide
 8    consumer choice billing meets the following technical and
 9    financial qualifications:
10              (i)    Maintains bonding or financial guarantees with
11        the commission for sales of electricity in the amount of
12        $250,000. The security under this subparagraph shall be
13        in addition to the security required under 52 Pa. Code §
14        54.40 (relating to bonds or other security).
15              (ii)    Maintains bonding or financial guarantees with
16        each natural gas distribution company in the service
17        territory where the applicant provides service. The
18        security under this subparagraph shall be in addition to
19        the security required under 52 Pa. Code § 62.111
20        (relating to bonds or other security).
21              (iii)    Maintains bonding or financial guarantees with
22        each utility where the applicant plans to offer consumer
23        choice billing in an amount equal to the sum of the two
24        highest months of utility receivables in the previous 12
25        months in addition to the security required under 52 Pa.
26        Code §§ 54.40 and 62.111.
27              (iv)    Certifies that the applicant has not had its
28        license revoked in this Commonwealth in the previous five
29        years.
30              (v)    Certifies that the applicant will comply with

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 1        commission regulations for bills that contain regulated
 2        electric distribution company or natural gas distribution
 3        company charges and retail energy charges.
 4             (vi)    Demonstrates that the applicant can meet the
 5        rigorous demands of increased consumer service and
 6        dispute resolution functions, including the operation of
 7        call centers, support of complex billing requirements,
 8        responsible execution of collections functions and the
 9        quality assurance and recordkeeping necessary to handle
10        electric distribution company or natural gas distribution
11        company charges that contribute to potential electric or
12        natural gas service disconnections.
13             (vii)    Attests to the applicant's ability to comply
14        with applicable regulations related to payment plans or
15        to assist customers with other payment assistance options
16        by employing new or existing consumer assistance programs
17        prior to the initiation of the termination.
18             (viii)       Agrees to purchase the receivables for
19        regulated charges of an electric distribution company or
20        natural gas distribution company.
21             (ix)     Agrees to timely inform the commission of any
22        material change or the cancellation of the bonding or
23        collateral required under this paragraph.
24             (x)    Agrees to comply with all of the following:
25                    (A)    52 Pa. Code § 54.43(f) (relating to
26             standards of conduct and disclosure for licensees)
27             for an electric generation supplier.
28                    (B)    52 Pa. Code § 62.114(e) (relating to
29             standards of conduct and disclosure for licensees)
30             for a natural gas supplier.

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 1                  (C)    52 Pa. Code Ch. 111 (relating to marketing
 2              and sales practices for the retail residential energy
 3              market).
 4        (3)   A process for an applicant to petition the
 5    commission for authorization to provide consumer choice
 6    billing through a third party if the applicant does not have
 7    five years of experience or if the applicant otherwise meets
 8    the qualifications under paragraph (2).
 9        (4)   A process for an electric distribution company or a
10    natural gas distribution company to petition the commission
11    to recover any stranded costs related to prudent investments
12    in billing infrastructure prior to the implementation of
13    consumer choice billing, subject to a commission-imposed
14    prudency review.
15        (5)   A requirement that an electric distribution company
16    or natural gas distribution company timely furnish an
17    electric generation supplier or natural gas supplier
18    participating in consumer choice billing with the necessary
19    billing data.
20        (6)   A standardized form of consumer notice to be used
21    when an electric generation supplier or natural gas supplier
22    ceases providing a particular type of service.
23        (7)   A consumer choice billing working group for
24    stakeholders to draft tariff provisions, collect data, design
25    business processes, configure electronic transactions, review
26    similar programs in other states, define a comprehensive
27    consumer choice billing education program to support consumer
28    choice billing launches and consider any other relevant
29    matters, including the process for disconnection or
30    termination of utility service outside of the scope of this

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 1    chapter.
 2        (8)    An electronic data exchange working group to develop
 3    proposed electronic transactions for an electric distribution
 4    company, natural gas distribution company, electric
 5    generation supplier or natural gas supplier to exchange
 6    necessary consumption, billing, payment and related data.
 7        (9)    A prohibition on an electric distribution company or
 8    natural gas distribution company from requiring an electric
 9    generation supplier or natural gas supplier to purchase a
10    consumer's arrears from the electric distribution company,
11    natural gas distribution company or another entity.
12        (10)    A prohibition on an electric distribution company
13    or natural gas distribution company from utilizing consumer
14    information to:
15               (i)    market standard offer service;
16               (ii)    research or market other electric distribution
17        company or natural gas distribution company services; or
18               (iii)    share information the electric distribution
19        company or natural gas distribution company acquires
20        through electronic transactions that facilitate consumer
21        choice billing with the unregulated affiliates of the
22        electric distribution company or natural gas distribution
23        company or any other nongovernmental entity.
24        (11)    The circumstances, terms and conditions for an
25    electric generation supplier or natural gas supplier to
26    change a consumer's billing method to or from consumer choice
27    billing and the corresponding content and timing of consumer
28    notification.
29        (12)    The terms and conditions for a consumer on budget
30    billing with an electric distribution company or natural gas

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 1    distribution company at the time of the switch.
 2          (13)    The terms and conditions for the purchase of
 3    receivables, including prioritization of partial payments and
 4    dispute resolution processes.
 5          (14)    The terms and conditions for nonpayment by a
 6    consumer receiving consumer choice billing, including the
 7    content of collection notices, purchase of arrears and
 8    limitations and unpaid charges.
 9          (15)    The terms and conditions for the participation of
10    consumers receiving energy assistance through a utility's
11    customer assistance program in consumer choice billing.
12          (16)    An accounting of all electric or natural gas
13    distribution company costs, including commodity costs,
14    capacity costs, hedging costs whether financial or physical,
15    procurement costs, billing system and billing costs, customer
16    service and account management costs, working capital, office
17    building, rent and information technology costs, legal and
18    financial costs and labor costs.
19          (17)    A prohibition on third-party use of electric or
20    natural gas distribution company trademarks for noncommodity
21    marketing and their inclusion on consumer utility bills.
22    (c)   Temporary regulations.--
23          (1)    In order to facilitate the prompt implementation of
24    this chapter, regulations promulgated under subsection (a)
25    shall be deemed temporary regulations that shall expire no
26    later than two years following the publication of the
27    temporary regulations. The temporary regulations shall not be
28    subject to:
29                 (i)   Section 612 of the act of April 9, 1929
30          (P.L.177, No.175), known as The Administrative Code of

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 1            1929.
 2                  (ii)    Sections 201, 202, 203, 204 and 205 of the act
 3            of July 31, 1968 (P.L.769, No.240), referred to as the
 4            Commonwealth Documents Law.
 5                  (iii)    Sections 204(b) and 301(10) of the act of
 6            October 15, 1980 (P.L.950, No.164), known as the
 7            Commonwealth Attorneys Act.
 8                  (iv)    The act of June 25, 1982 (P.L.633, No.181),
 9            known as the Regulatory Review Act.
10            (2)   The commission's authority to promulgate temporary
11      regulations shall expire upon the promulgation of final-form
12      regulations or two years after the effective date of this
13      paragraph, whichever is later.
14   § 22A05.    Implementation plans.
15      (a)     Submission.--No later than 45 days after the effective
16   date of this subsection, the commission shall issue an order
17   requiring an electric distribution company or natural gas
18   distribution company to submit an implementation plan to the
19   commission within 180 days. The implementation plan shall:
20            (1)   demonstrate how the electric distribution company or
21      natural gas distribution company will meet the requirements
22      under this chapter;
23            (2)   be subject to commission approval on an expedited
24      basis, if necessary; and
25            (3)   include all tariffs, agreements, processes, proposed
26      cost recovery mechanisms and other components required for
27      approval by the commission in accordance with the
28      commission's order under this subsection.
29      (b)     Records of recoverable costs.--An electric distribution
30   company or natural gas distribution company shall maintain a

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 1   record of recoverable costs as regulatory assets, which shall be
 2   recovered in the immediately subsequent rate case and adjusted
 3   in future base rate cases in accordance with section 1308
 4   (relating to voluntary changes in rates) or through an
 5   alternative rate mechanism under section 1330 (relating to
 6   alternative ratemaking for utilities).
 7   § 22A06.    Report.
 8      (a)     Submission.--No later than 365 days after the
 9   promulgation of final-form regulations implementing consumer
10   choice billing, the commission shall submit a report to the
11   chair and minority chair of the Consumer Protection and
12   Professional Licensure Committee of the Senate and the chair and
13   minority chair of the Consumer Protection, Technology and
14   Utilities Committee of the House of Representatives.
15      (b)     Details.--The report under subsection (a) shall detail
16   the status of consumer choice billing, including all of the
17   following information about consumers who elected to participate
18   in consumer choice billing:
19            (1)   Retail electric and natural gas shopping statistics.
20            (2)   Consumer complaints.
21            (3)   Billing disputes.
22            (4)   Service terminations.
23            (5)   Any other information to determine whether
24      modifications are necessary to consumer choice billing
25      qualifications and regulations for the purpose of enhancing
26      retail electric and natural gas service shopping.
27   § 22A07.    Penalties.
28      (a)     Violations by suppliers.--For a violation of this
29   chapter, including a violation of the commission's orders or
30   regulations, by an electric generation supplier or natural gas

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 1   supplier, consistent with the requirements of due process, the
 2   commission may impose any of the following:
 3            (1)   A suspension or revocation of the electric
 4      generation supplier or natural gas supplier's participation
 5      in consumer choice billing.
 6            (2)   A suspension or revocation of the license of an
 7      electric generation supplier or natural gas supplier for a
 8      violation of this chapter.
 9            (3)   For a fraudulent, deceptive or other unlawful
10      marketing act, a fine on the electric generation supplier or
11      natural gas supplier in accordance with Chapter 33 (relating
12      to violations and penalties).
13      (b)   Violations by agents.--In accordance with 52 Pa. Code §
14   54.43(f) (relating to standards of conduct and disclosure for
15   licensees) for an electric generation supplier and 52 Pa. Code §
16   62.114(e) (relating to standards of conduct and disclosure for
17   licensees) for a natural gas supplier, an electric generation
18   supplier or natural gas supplier shall be responsible for
19   fraudulent, deceptive or other unlawful marketing acts performed
20   by an agent of the electric generation supplier or natural gas
21   supplier. For a violation of this chapter, including a violation
22   of the commission's orders or regulations, by an agent of an
23   electric generation supplier or natural gas supplier, consistent
24   with due process, the commission may impose any of the
25   following:
26            (1)   A suspension or revocation of the electric
27      generation supplier's or natural gas supplier's participation
28      in consumer choice billing.
29            (2)   A suspension or revocation of the license of an
30      electric generation supplier or natural gas supplier for a

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 1    violation of this chapter.
 2        (3)   For a fraudulent, deceptive or other unlawful
 3    marketing act, a fine on the electric generation supplier or
 4    natural gas supplier in accordance with Chapter 33.
 5    Section 2.    Repeals are as follows:
 6        (1)   The General Assembly declares that the repeals under
 7    paragraph (2) are necessary to effectuate the addition of 66
 8    Pa.C.S. Ch. 22A.
 9        (2)   The provisions of 66 Pa.C.S. §§ 2205(c) and 2807(c)
10    are repealed insofar as they are inconsistent with the
11    addition of 66 Pa.C.S. Ch. 22A.
12    Section 3.    This act shall take effect in 120 days.




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