§56-576. Definitions.
As used in this chapter:
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"Aggregate" means to combine the electric energy needs of two or more retail customers for the purpose of buying electrical energy from one or more licensed suppliers as an agent or intermediary for such customers, or to combine electric energy supplied by two or more licensed suppliers of electric energy for the purpose of selling such electric energy as a broker or intermediary for such suppliers to one or more retail customers; but "aggregate" does not mean (i) arranging or facilitating, without a direct financial interest, discussions or agreements between retail customers and licensed suppliers or aggregators, (ii) actions of a supplier to obtain electric energy to meet supply obligations to its retail customers, or (iii) providing default service.
"Aggregator" means a person licensed by the Commission that purchases or arranges for purchase of electric energy as an agent or intermediary for sale to, or on behalf of, two or more retail customers to aggregate.
The term "aggregate" is the operative term triggering the requirement to obtain an aggregator's license under §56-588. The purpose of this amendment is to define the term "aggregate", an undefined term in the Act, to clarify the circumstances that trigger the need to obtain an aggregators license.
Those who, without a financial interest, undertake to facilitate discussions or agreements for electricity supply, such as apartment building owners, condominium and homeowner associations, and the like, are not required to obtain an aggregator's license.
The terms are also defined to expressly exclude acts of a licensed supplier or default service provider in securing electric supply to meet obligations to serve the customers they are obligated to serve, either by contract or as a default provider. While these activities are ostensibly on behalf of their retail customers, there is no need for licensing since these activities are transparent to the retail customer and don't affect the relationship between the retail customer and the supplier or default provider.
The terms are also defined in a way that brokers or marketers who don't actually take title to electricity are subject to the licensing requirements.
§56-587. Licensure of retail electric energy suppliers.
As a condition of doing business in the Commonwealth each person seeking to sell, offering to sell, or selling electric energy to any retail customer in the Commonwealth, on and after January 1, 2002, shall obtain a license from the Commission to do so. A license shall not be required: (i) solely for the leasing or financing of property used in the sale of electricity to any retail customer in the Commonwealth, (ii) for an owner/operator or a lessee/operator who manages the internal distribution system serving a residential or commercial facility it owns or leases and, without financial gain, supplies electricity solely to the occupants for consumption on the premises by the occupants, or (iii) for a provider of default service.
This amendment is intended to clarify that those who own or lease facilities such as apartment buildings, mobile home parks, or commercial buildings are not subject to supplier licensing requirements when arranging for electric energy supply for the occupants of the building, where the electricity is furnished to the tenants without financial gain to the operator of the facility.
This amendment also clarifies that a default service provider is not subject to supplier licensing requirements. Under §56-585, the Commission designates the provider of default service and, in so designating, shall take into account factors necessary to protect the public interest including qualifications of prospective providers. To require a supplier license in addition to meeting the Commission requirements would serve no purpose.
Other states, such as Maryland, have exemptions of similar effect as those proposed in the above amendment.