HB 2196

                                                  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:
8CHAPTER 22A
9CONSUMER 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
20260HB2196PN2887  - 2 -
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
20260HB2196PN2887  - 3 -
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
20260HB2196PN2887  - 4 -
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
20260HB2196PN2887  - 5 -
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
20260HB2196PN2887  - 6 -
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
26standards of conduct and disclosure for licensees)
27for an electric generation supplier.
28(B)    52 Pa. Code § 62.114(e) (relating to
29standards of conduct and disclosure for licensees)
30for a natural gas supplier.
20260HB2196PN2887  - 7 -
1(C)    52 Pa. Code Ch. 111 (relating to marketing
2and sales practices for the retail residential energy
3market).
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
20260HB2196PN2887  - 8 -
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
20260HB2196PN2887  - 9 -
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
20260HB2196PN2887  - 10 -
11929.
2(ii)    Sections 201, 202, 203, 204 and 205 of the act
3of July 31, 1968 (P.L.769, No.240), referred to as the
4Commonwealth Documents Law.
5(iii)    Sections 204(b) and 301(10) of the act of
6October 15, 1980 (P.L.950, No.164), known as the
7Commonwealth Attorneys Act.
8(iv)    The act of June 25, 1982 (P.L.633, No.181),
9known 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
20260HB2196PN2887  - 11 -
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
20260HB2196PN2887  - 12 -
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
20260HB2196PN2887  - 13 -
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.
20260HB2196PN2887  - 14 -