Bulletin: PA000011

Dear Associates:

As of August 9, 2006, PGW has implemented their Landlord/Tenant Gas Bill policy under the Responsible Utility Consumer Protection Act (Act 201 of 2004).  The changes in their procedures will impact our industry in the City of Philadelphia .  Below is a summary:

1. Unpaid tenant accounts for gas service will be liened against the landlord's property only for service provided on and after August 9, 2006.
   
2. You will not see the liens of record until November 9, 2006.
   
3. A landlord may exempt property from this policy if the landlord registers with the PGW in the Landlord Cooperation Program (LCP) and prove that they have a business privilege and a renter's license for that property.
   
4. The landlord will receive an e-mail confirmation of such registration.
   
5. From now until November 9, 2006, tenant accounts should be paid unless the landlord provides a copy of the e-mail registration confirmation in the LCP. 
   
6. By November 9, 2006, PGE intends to change their "Account Payoff Inquiry" form to include a statement as to whether the landlord is exempt for the particular property. PGW will not confirm participation in the program other than the e-mail confirmation sent to the landlord upon initial registration prior to November 9, 2006.
   
7. Only tenant gas service subsequent to registration will be exempt.  Therefore, escrows must be held for amounts due on tenant accounts prior to the date of the registration.
   
8. Attached is the Notice that PGW is requesting that we distribute to all purchasers of property with gas service.

The following requirements should be added to your Philadelphia property Schedule B-1 commitments:

For rental properties only, landlord must provide the e-mail confirmation of registration in the Philadelphia PGW LCP (Landlord Cooperation Program), for exemption from escrow requirements on unpaid tenant gas service statements.

If you have any questions, please do not hesitate to contact the Pennsylvania State office.