In Public Utility Code, providing for responsible utility customer protection.
SB154 would add a new Chapter 14 to Title 66 of the Pennsylvania Consolidated Statutes to create a statewide framework for “responsible utility customer protection.” The bill sets rules for residential utility deposits, payment arrangements, service termination, reconnection, late fees, complaints, and utility reporting obligations. It applies to electric, natural gas, small natural gas, steam heat, wastewater, and water utilities under PUC jurisdiction, and it also includes special provisions for city natural gas distribution operations and certain water and sewer authorities.
The bill generally gives utilities more explicit collection tools while also preserving and expanding protections for customers who are struggling to pay. It authorizes deposits for certain applicants and delinquent customers, but bars deposits for customers confirmed eligible for customer assistance programs. It establishes income-based limits on payment arrangement lengths, restricts winter shutoffs for lower-income households, requires notice and contact efforts before termination, and sets reconnection timelines after lawful or erroneous shutoffs. It also requires utilities to offer information about assistance programs, report certain arrearages and medical-certification data, and provide annual notices to customers about the new rules.
A major policy change is the prohibition on automatic surcharge mechanisms for uncollectible expenses, which would prevent the Public Utility Commission from approving cash receipts reconciliation clauses or similar surcharges for bad debt. The bill also changes how delinquent accounts are handled by limiting repeated commission-ordered payment arrangements in some cases, allowing termination for noncompliance, and requiring utilities to waive improperly assessed late fees. For city natural gas distribution operations, the bill adds special deposit rules, lien authority, reporting obligations, and service-refusal provisions tied to unpaid liens or judgments.
The overall sentiment reflected in the voting history appears generally supportive, with the bill advancing through committee and passing the Senate on final passage. The committee votes were unanimous in the Consumer Protection and Professional Licensure Committee and largely favorable in Appropriations, while final passage passed 41-7, indicating broad but not unanimous support. The bill’s structure suggests a compromise between consumer protection and utility financial stability, which likely contributed to its advancement.
The main points of contention are likely the bill’s stronger collection and termination provisions versus its customer protections. Supporters appear focused on reducing uncollectible utility debt, preventing cost shifts to paying customers, and giving utilities more effective tools to collect overdue bills. Critics are likely to focus on the expanded ability to require deposits, terminate service, and impose liens, especially for lower-income households and customers facing hardship, even though the bill includes income thresholds, medical exceptions, winter protections, and assistance-program safeguards.
SB154 would substantially revise Pennsylvania utility customer protection law by creating a new statutory chapter governing deposits, billing disputes, payment plans, shutoff procedures, reconnection, and utility reporting. It would affect the Public Utility Commission’s authority over regulated electric, gas, water, wastewater, and steam utilities, while also adding special rules for city natural gas distribution operations and related municipal entities. The bill would also interact with existing utility assistance programs, LIHEAP, landlord-tenant references, and the Utility Service Tenants Rights Act, while expressly preserving some existing tenant protections.
The bill appears to have received generally favorable treatment in the Senate, advancing unanimously out of the Consumer Protection and Professional Licensure Committee, moving through Appropriations with a strong majority, and passing final Senate consideration by a wide margin. The vote pattern suggests broad agreement on the need to address utility arrearages and collection practices, though the presence of several no votes indicates some concern about the bill’s consumer impacts.
The central tension in SB154 is between utility revenue protection and consumer affordability. Utilities and supporters are likely to favor the bill’s deposit rules, termination authority, limits on repeated payment arrangements, lien tools, and the ban on automatic bad-debt surcharges, all of which are designed to reduce uncollectible accounts and protect paying customers from rate impacts. Consumer advocates and some lawmakers are likely to object to the expanded shutoff and collection powers, especially the winter termination rules, deposit requirements, and lien provisions, even though the bill includes exemptions for assistance-program participants, medical certifications, domestic violence victims, and certain low-income households.