PRIOR PRINTER'S NO. 2017 PRINTER'S NO. 2510
No. 1676 Session of 1977
INTRODUCED BY B. F. O'BRIEN, TRELLO, GOODMAN, McCALL, F. TAYLOR,
BURNS, C. GEORGE, GATSKI, STAIRS, FISHER, DAVIES, LEVI, LEHR,
McLANE, SCHWEDER, MUSTO, DeWEESE, SHUPNIK, SWEET, O'CONNELL,
MISCEVICH, ABRAHAM, GAMBLE, WANSACZ, GALLEN, YAHNER,
HUTCHSINSON AND BROWN, SEPTEMBER 28, 1977
AS RE-REPORTED FROM COMMITTEE ON MINES AND ENERGY MANAGEMENT,
HOUSE OF REPRESENTATIVES, AS AMENDED JANUARY 30, 1978
AN ACT
1 Amending the act of May 28, 1937 (P.L.1053, No.286), entitled
2 "An act relating to the regulation of public utilities;
3 defining as public utilities certain corporations, companies,
4 associations, and persons; providing for the regulation of
5 public utilities, including, to a limited extent,
6 municipalities engaging in public utility business, by
7 prescribing, defining, and limiting their duties, powers, and
8 liabilities, and regulating the exercise, surrender or
9 abandonment of their powers, privileges, and franchises;
10 defining and regulating contract carriers by motor vehicle
11 and brokers in order to regulate effectively common carriers
12 by motor vehicle; conferring upon the Pennsylvania Public
13 Utility Commission the power and duty of supervising and
14 regulating persons, associations, companies, and
15 corporations, including, to a limited extent, municipal
16 corporations subject to this act, and administering the
17 provisions of this act; authorizing the commission to fix
18 temporary rates; placing the burden of proof on public
19 utilities to sustain their rates and certain other matters;
20 authorizing a permissive or mandatory sliding scale method of
21 regulating rates; providing for the supervision of financial
22 and contractural relations between public utilities and
23 affiliated interests, and supervision and regulation of
24 accounts and securities or obligations issued, assumed, or
25 kept by persons, associations, companies, corporations or
26 municipal corporations subject to this act; conferring upon
27 the commission power to vary, reform, or revise certain
28 contracts; conferring upon the commission the exclusive power
29 to regulate or order the construction, alteration,
30 relocation, protection, or abolition of crossings of
1 facilities of public utilities, and of such facilities by or
2 over public highways, to appropriate property for the
3 construction or improvement of such crossings, and to award
4 or apportion resultant costs and damages; authorizing owners
5 of such property to sue the Commonwealth for such damages;
6 providing for ejectment proceedings in connection with the
7 appropriation of property for crossings; conferring upon the
8 commission power to control and regulate budgets of public
9 utilities; imposing upon persons, associations, companies,
10 and corporations (except municipal corporations) subject to
11 regulation, the cost of administering this act; prescribing
12 and regulating practice and procedure before the commission
13 and procedure for review by the courts of commission action;
14 giving the court of common pleas of Dauphin County exclusive
15 original jurisdiction over certain proceedings; prescribing
16 penalties, fines, and imprisonment for violations of the
17 provisions of this act and regulations and orders of the
18 commission, and the procedure for enforcing such fines and
19 penalties; and repealing legislation supplied and superseded
20 by or inconsistent with this act," providing for test <--
21 generation and sliding scale of rates for electric utilities
22 FURTHER PROVIDING FOR RATE ADJUSTMENT FOR ELECTRIC UTILITIES. <--
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Section 2, act of May 28, 1937 (P.L.1053, <--
26 No.286), known as the "Public Utility Law," is amended by adding
27 a clause to read:
28 Section 2. Definitions.--The following words, terms and
29 phrases shall have the meanings ascribed to them in this
30 section, unless the context clearly indicates otherwise.
31 * * *
32 (19.1) "Test Generation" means power generated by a unit
33 which is not yet commercially operative.
34 * * *
35 Section 2. Subsection (c) of section 307 of the act, amended
36 October 7, 1976 (P.L.1057, No.215), is amended to read:
37 Section 307. Sliding Scale of Rates.--* * *
38 (c) In [any method] automatically adjusting rates to reflect
39 changes in fossil fuel cost under [this section] section 307.1,
40 the fuel cost used in computing the adjustment shall be
19770H1676B2510 - 2 -
1 limited[, in the case of an electric utility,] to the cost of
2 such fuel delivered to the utility at the generating site at
3 which it is to be consumed, and the cost of disposing of solid
4 waste from scrubbers or other devices designed so that the
5 consumption of Pennsylvania-mined coal at the generating site
6 would comply with the sulfur oxide emission standards prescribed
7 by the Commonwealth of Pennsylvania. The cost of fuel handling
8 after such delivery, or of waste disposal, other than as
9 prescribed above, shall be excluded from such computation. In
10 [any method] automatically adjusting rates to reflect changes in
11 fuel cost other than fossil fuel cost under [this section]
12 section 307.1, the fuel cost used in computing the adjustment
13 shall be limited[, in the case of an electric utility,] to the
14 cost of such fuel delivered to the utility at the generating
15 site at which it is to be consumed after deducting therefrom the
16 present salvage or reuse value of such fuel, as shall be
17 established by commission rule or order. The method to be used
18 by an electric utility in automatically adjusting rates to
19 reflect changes in fuel costs under this section shall be in
20 accordance with section 307.1.
21 * * *
22 Section 3. The act is amended by adding a section to read:
23 Section 307.1. Electric Utility Rates.--(a) A charge or
24 credit will be made when an electric utility company's estimated
25 twelve-month average cost per kilowatt hour of electric energy
26 which it expects to sell is 0.001 mills per kilowatt-hour above
27 or below that allowable in its basic rate. In estimating such
28 twelve-month average cost per kilowatt-hour of electric energy
29 the electric utility company shall include the cost of that
30 electric energy which it expects to produce itself and that
19770H1676B2510 - 3 -
1 electric energy which it expects to purchase and receive as
2 interchange, less estimated receipts for the cost of electric
3 energy which it expects to sell or deliver as interchange to
4 other electric utilities: Provided, however, That the costs of
5 test generation and generation from new units expected to be
6 placed in service during the twelve-month period shall be
7 excluded from such average.
8 (b) To the extent permitted, the excess value of test
9 generation over the cost of fuel consumed for that generation
10 shall be credited to a separate deferred test energy account
11 maintained by the electric utility company to be amortized in
12 charges to the customers when the costs of the unit from which
13 it was produced have been reflected in base rates.
14 (c) The estimated twelve-month average cost for the second
15 and all succeeding twelve-month periods after the effective date
16 of this act will be adjusted to amortize, as a part of such
17 estimated twelve-month average cost, any under or over recovery
18 which may have accrued during the prior twelve-month period.
19 Such under or over recovery shall be charged or credited to a
20 separate deferred energy account to be maintained by the
21 electric utility company.
22 (d) Any credit balance in the separate deferred energy
23 account and the separate deferred test energy account shall be
24 credited with interest, monthly, at an annual rate the same as
25 the most recent overall rate of return authorized by the
26 commission. Such interest shall become a part of the balance in
27 the separate deferred energy accounts. Interest shall not be
28 allowable for any charges upon these accounts.
29 (e) Any debit balance in the separate deferred energy
30 accounts, as such debit balance shall exist from time to time,
19770H1676B2510 - 4 -
1 shall constitute assets of the electric utility company to be
2 realized from its customers by amortization in accordance with
3 subsection (c). Any credit balance which shall exist from time
4 to time shall constitute a liability of the electric utility
5 company to its customers to be amortized in accordance with
6 subsection (c).
7 (f) At least thirty days prior to a new generating facility
8 being placed in commercial service, a new determination shall be
9 made of the electric utility company's estimated twelve-month
10 average cost of energy which reflects the expected impact of the
11 availability of energy from such facility on the electric
12 utility company's cost of energy during the twelve-month period
13 after such facility is placed in commercial service including
14 amortization over such twelve-month period of any credit or
15 debit balance in the separate deferred energy account.
16 (g) In the event that (1) a major change in the electric
17 utility company's estimated twelve-month average cost occurs, or
18 (2) the debit balance in the separate deferred energy expense
19 account exceeds such amount as the commission shall determine,
20 or (3) the credit balance in such separate account exceeds such
21 amount as the commission shall determine, a new estimated
22 twelve-month average cost may be determined and filed which
23 provides for the amortization over such period of the debit or
24 credit balance in the separate deferred energy expense account.
25 (h) When a change in the net charge or credit determined
26 pursuant to subsections (a), (f) or (g)(1) is to be placed in
27 effect, the electric utility company shall file with the
28 commission, not later than thirty days preceding the effective
29 date, a schedule setting forth the amount of such net charge or
30 credit and the first day when such changed net charge or credit
19770H1676B2510 - 5 -
1 shall be applied, together with the data showing the details of
2 the calculation of such net charge or credit. Notice of such
3 filing will be given in such manner as shall be prescribed by
4 the commission and an opportunity for public review and comment
5 on such filing will be afforded on the fifteenth day following
6 such filing, or, if such day shall not be a day on which the
7 commission is open for the conduct of its business, then on the
8 next succeeding business day of the commission. Notwithstanding
9 the filing of any comments thereon, such changed net charge or
10 credit shall be placed in effect on the date specified in such
11 schedule. However, if so directed by the commission, amounts
12 received by the electric utility company pursuant to such
13 schedule may be subject to possible refund by adjustment from
14 the deferred energy account with interest at a rate to be
15 specified by the commission. The commission shall approve or
16 disapprove such schedule within ninety days of its filing.
17 (i) When a change in the net charge or credit determined
18 pursuant to subsection (g)(2) or (3) is to be placed in effect,
19 the electric utility company shall file with the commission, not
20 later than fifteen days preceding the effective date, a schedule
21 setting forth the amount of such net charge or credit and the
22 first day when such changed net charge or credit shall be
23 applied, together with the data showing the details of the
24 calculations of such net charge or credit. Such changed net
25 charge or credit shall be placed in effect, subject to possible
26 refund by adjustment from the deferred energy account, with
27 interest at a rate to be specified by the commission, on the
28 date specified in such schedule. Notice of a filing pursuant to
29 this will be given in such a manner as shall be prescribed by
30 the commission and an opportunity for public review and comment
19770H1676B2510 - 6 -
1 on such filing will be afforded on the day set by the
2 commission. The commission shall either approve or disapprove
3 such schedule within ninety days of its filing.
4 (j) The energy adjustment clause of an electric utility
5 company will reflect the voltage at which service is taken by
6 multiplying the computed composite adjustment factor by factors
7 which reflect energy losses at secondary, primary and
8 transmission levels. These factors will be revised and filed
9 with the commission as changes in the basis of their
10 calculations warrant.
11 (k) The electric utility company shall file quarterly
12 reports with the commission setting forth such information as
13 the commission shall determine in order to affect the purposes
14 of this act.
15 SECTION 1. SECTION 2, ACT OF MAY 28, 1937 (P.L.1053, <--
16 NO.286), KNOWN AS THE "PUBLIC UTILITY LAW," IS AMENDED BY ADDING
17 A CLAUSE TO READ:
18 SECTION 2. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
19 PHRASES SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THIS
20 SECTION, UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE.
21 * * *
22 (24) "MAJOR CLASS A ELECTRIC UTILITY" MEANS ANY UTILITY
23 WHOSE YEARLY REVENUES EXCEED TWO MILLION FIVE HUNDRED THOUSAND
24 DOLLARS.
25 * * *
26 SECTION 2. SUBSECTIONS (A) AND (B) OF SECTION 307 OF THE ACT
27 IS AMENDED TO READ:
28 SECTION 307. SLIDING SCALE OF RATES.--(A) ANY PUBLIC
29 UTILITY, EXCEPT A COMMON CARRIER, MAY ESTABLISH A SLIDING SCALE
30 OF RATES OR SUCH OTHER METHOD FOR THE AUTOMATIC ADJUSTMENT OF
19770H1676B2510 - 7 -
1 THE RATES OF THE PUBLIC UTILITY AS SHALL PROVIDE A JUST AND
2 REASONABLE RETURN ON THE FAIR VALUE OF THE PROPERTY USED AND
3 USEFUL IN THE PUBLIC SERVICE, TO BE DETERMINED UPON SUCH
4 EQUITABLE OR REASONABLE BASIS AS SHALL PROVIDE SUCH FAIR RETURN:
5 PROVIDED, THAT A TARIFF SHOWING THE SCALE OF RATES UNDER SUCH
6 ARRANGEMENT IS FIRST FILED WITH THE COMMISSION, AND SUCH TARIFF,
7 AND EACH RATE SET OUT THEREIN, APPROVED BY IT: PROVIDED FURTHER,
8 THAT THE COST OF FUEL AND ENERGY USED OR PURCHASED BY ANY MAJOR
9 CLASS A ELECTRIC UTILITY SHALL NOT BE SUBJECT TO AUTOMATIC
10 ADJUSTMENT OF THE RATES BUT SHALL ONLY BE RECOVERED IN
11 ACCORDANCE WITH SECTION 308.1. THE COMMISSION MAY REVOKE ITS
12 APPROVAL AT ANY TIME AND FIX OTHER RATES FOR ANY SUCH PUBLIC
13 UTILITY IF, AFTER NOTICE AND HEARING, THE COMMISSION FINDS THE
14 EXISTING RATES UNJUST OR UNREASONABLE.
15 (B) THE COMMISSION, BY REGULATION OR ORDER, UPON REASONABLE
16 NOTICE AND AFTER HEARING, MAY PRESCRIBE FOR ANY CLASS OF PUBLIC
17 UTILITIES, EXCEPT A COMMON CARRIER, A MANDATORY SYSTEM FOR THE
18 AUTOMATIC ADJUSTMENT OF THEIR RATES, BY MEANS OF A SLIDING SCALE
19 OF RATES OR OTHER METHOD, ON THE SAME BASIS AS PROVIDED IN
20 PARAGRAPH (A), TO BECOME EFFECTIVE WHEN AND IN THE MANNER
21 PRESCRIBED IN SUCH REGULATION OR ORDER: PROVIDED, HOWEVER, THAT
22 THE COST OF FUEL AND ENERGY USED OR PURCHASED BY ANY MAJOR CLASS
23 A ELECTRIC UTILITY SHALL NOT BE SUBJECT TO AUTOMATIC ADJUSTMENT
24 OF THE RATES BUT SHALL ONLY BE RECOVERED IN ACCORDANCE WITH
25 SECTION 308.1. EVERY SUCH PUBLIC UTILITY SHALL, WITHIN SUCH TIME
26 AS SHALL BE PRESCRIBED BY THE COMMISSION, FILE TARIFFS SHOWING
27 THE RATES ESTABLISHED IN ACCORDANCE WITH SUCH REGULATION OR
28 ORDER.
29 * * *
30 SECTION 3. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
19770H1676B2510 - 8 -
1 SECTION 308.1. ELECTRIC UTILITY FUEL AND ENERGY COST BASE
2 RATE ADJUSTMENTS.--(A) AFTER ONE YEAR FOLLOWING THE EFFECTIVE
3 DATE OF THIS SECTION, NO MAJOR CLASS A ELECTRIC UTILITY MAY MAKE
4 USE OF ANY METHOD FOR THE AUTOMATIC ADJUSTMENT OF ITS RATES TO
5 REFLECT CHANGES IN ITS FUEL AND ENERGY COSTS. ALL FUEL AND
6 ENERGY COSTS AND ASSOCIATED GROSS RECEIPTS TAXES RECOVERABLE
7 UNDER ANY PREVIOUSLY USED METHOD FOR AUTOMATICALLY ADJUSTING ITS
8 RATES TO REFLECT CHANGES IN FUEL AND ENERGY COSTS SHALL
9 THEREAFTER BE REFLECTED IN ITS BASE RATES. SUCH A UTILITY SHALL
10 THEREAFTER BE AUTHORIZED TO ANNUALLY ADJUST ITS BASE RATES TO
11 REFLECT FUTURE ANTICIPATED CHANGES IN ITS RECOVERABLE FUEL AND
12 ENERGY COSTS AND TO RECOVER BY AMORTIZATION ITS ACCUMULATED
13 UNRECOVERED FUEL AND ENERGY COSTS. ALL SUCH BASE RATE
14 ADJUSTMENTS SHALL BE ADMINISTERED SOLELY IN ACCORDANCE WITH THE
15 PROVISIONS OF THIS SECTION.
16 (B) THE INITIAL CONVERSION PERIOD FOR EACH UTILITY COMPLYING
17 WITH THE REQUIREMENTS OF SUBSECTION (A) SHALL BE DETERMINED BY
18 THE COMMISSION. ALL PROCEDURES FOR FILING THE ANNUAL AND INTERIM
19 REVISIONS OF SAID UTILITY'S BASE RATE SCHEDULES SHALL ALSO BE
20 ESTABLISHED BY THE COMMISSION, EXCEPT AS SPECIFIED HEREIN. EACH
21 MAJOR CLASS A ELECTRIC UTILITY SHALL FILE A PLAN BY WHICH IT
22 PROPOSES TO AMORTIZE ACCUMULATED UNRECOVERED FUEL AND ENERGY
23 COSTS FROM OPERATION OF AUTOMATIC ADJUSTMENT CLAUSES USED PRIOR
24 TO THE EFFECTIVE DATE OF THIS SECTION. SUCH PLAN SHALL BE FILED
25 NO LATER THAN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS
26 SECTION. THE COMMISSION SHALL ACCEPT SUCH PLAN IF IT IS FOUND TO
27 BE REASONABLE.
28 (C) ANY MAJOR CLASS A ELECTRIC UTILITY SHALL BE AUTHORIZED
29 TO ANNUALLY ADJUST ITS BASE RATES TO REFLECT, TO THE EXTENT NOT
30 PREVIOUSLY INCORPORATED INTO ITS BASE RATES, ITS FUTURE
19770H1676B2510 - 9 -
1 ANTICIPATED RECOVERABLE FUEL AND ENERGY COSTS DURING A
2 PROSPECTIVE TWELVE-MONTH PERIOD. SUCH RECOVERABLE FUEL AND
3 ENERGY COSTS SHALL CONSIST OF SUCH UTILITY'S COSTS OF FOSSIL AND
4 NUCLEAR FUEL, PURCHASED ELECTRIC ENERGY, AND INTERCHANGE
5 ELECTRIC ENERGY RECEIVED LESS REIMBURSEMENTS FOR INTERCHANGE
6 ELECTRIC ENERGY DELIVERED. ANY MAJOR CLASS A ELECTRIC UTILITY
7 WHICH, ON A CONTINUING AND SUBSTANTIAL BASIS, PURCHASES ITS
8 ELECTRIC ENERGY REQUIREMENTS PURSUANT TO TRANSACTIONS WHICH ARE
9 SUBJECT TO REGULATION BY A FEDERAL AGENCY MAY REFLECT FUTURE
10 ANTICIPATED RECOVERABLE COSTS OF SUCH PURCHASED ENERGY IN TERMS
11 OF THE SAME COST FACTORS USED IN THE TRANSACTIONS.
12 (D) PRIOR TO FIRST MAKING A BASE RATE ADJUSTMENT AUTHORIZED
13 BY THIS SECTION, AND APPROXIMATELY ANNUALLY THEREAFTER, A MAJOR
14 CLASS A ELECTRIC UTILITY SHALL FILE REVISIONS OF ITS BASE RATE
15 SCHEDULES. THE INITIAL REVISED BASE RATE SCHEDULE SHALL INCLUDE
16 ALL FUEL AND ENERGY COSTS AND ASSOCIATED GROSS RECEIPTS TAXES
17 RECOVERABLE UNDER ANY PREVIOUSLY USED METHOD FOR AUTOMATICALLY
18 ADJUSTING ITS RATES TO REFLECT CHANGES IN FUEL AND ENERGY COSTS.
19 THE FIRST AND ALL SUBSEQUENT REVISED BASE RATE SCHEDULES SHALL
20 PROVIDE FOR AN INCREASE OR DECREASE OF THE ENERGY CHARGE PER
21 KILOWATT-HOUR SPECIFIED IN EACH SUCH SCHEDULE BY SUCH AMOUNTS AS
22 WILL PROVIDE, ON AN ANNUAL BASIS, AN AGGREGATE INCREASE OR
23 DECREASE IN BASE RATE REVENUES AS WILL EQUIVALENTLY REFLECT THE
24 AMOUNT OF THE ESTIMATED INCREASE OR DECREASE, FOR A PROSPECTIVE
25 OPERATIVE PERIOD OF TWELVE MONTHS DURATION, OF THE ELECTRIC
26 UTILITY'S RECOVERABLE FUEL AND ENERGY COSTS. THE REVISED BASE
27 RATE SCHEDULES SHALL SPECIFY AN EFFECTIVE DATE NOT LESS THAN
28 NINETY DAYS FOLLOWING THE DAY OF THEIR FILING. NOTICE OF A
29 FILING PURSUANT TO THIS SECTION WILL BE GIVEN IN SUCH A MANNER
30 AS SHALL BE PRESCRIBED BY THE COMMISSION AND AN OPPORTUNITY FOR
19770H1676B2510 - 10 -
1 PUBLIC REVIEW AND COMMENT ON SUCH FILING WILL BE AFFORDED ON THE
2 DAY SET BY THE COMMISSION. THE COMMISSION SHALL EITHER APPROVE,
3 DISAPPROVE, MODIFY OR SUSPEND SUCH SCHEDULE WITHIN NINETY DAYS
4 OF ITS FILING. HOWEVER, THE COMMISSION MAY NOT SUSPEND THE RATE
5 FILED UNDER THIS ACT UNLESS SUCH RATE REPRESENTS A MATERIAL
6 INCREASE OVER THE PRIOR PERIOD. IN SUCH CASES, THE SUSPENSION
7 PERIOD WILL BE LIMITED TO THREE MONTHS WITH PRIOR RATES
8 REMAINING IN EFFECT DURING THIS TIME. BEFORE THE EXPIRATION OF
9 SUCH THREE-MONTH PERIOD, THE COMMISSION SHALL, BY ORDER, APPROVE
10 SUCH SCHEDULES OR ORDER SUCH MODIFICATIONS OF THEM AS IT DEEMS
11 NECESSARY AND PROPER FOR THE PURPOSES OF THIS SECTION. IF SUCH
12 AN ORDER IS NOT MADE BY THE EXPIRATION OF SUCH THREE-MONTH
13 PERIOD, SUCH SCHEDULES SHALL GO INTO EFFECT AT THE END OF SUCH
14 PERIOD, SUBJECT TO REFUND OF SUCH AMOUNTS AS THE COMMISSION MAY
15 ULTIMATELY FIND TO BE UNJUSTIFIED.
16 (E) CURRENTLY EFFECTIVE BASE RATE SCHEDULES OF ANY MAJOR
17 CLASS A ELECTRIC UTILITY MAY BE REVISED ON AN INTERIM BASIS
18 PRIOR TO THE NEXT ORDINARY ANNUAL REVISION AUTHORIZED BY THIS
19 SECTION. SUCH AN INTERIM REVISION SHALL BE MADE BY THE SAID
20 UTILITY SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSION OR AS
21 ORDERED BY THE COMMISSION, AFTER HEARING, WHEN THE UTILITY OR
22 THE COMMISSION, SHALL HAVE REASON TO BELIEVE THAT THE REVENUES
23 ESTIMATED TO BE FINALLY PRODUCED, DURING THE REMAINDER OF THEIR
24 CURRENT OPERATIVE PERIOD, BY SUCH CURRENTLY EFFECTIVE BASE RATE
25 SCHEDULES WILL RESULT IN A MATERIAL OVER-COLLECTION OR UNDER-
26 COLLECTION, ON THE BASIS OF THE ENTIRE CURRENT OPERATIVE PERIOD,
27 OF THE UTILITY'S OR THE COMMISSION'S MOST RECENT ESTIMATE OF THE
28 UTILITY'S RECOVERABLE FUEL AND ENERGY COSTS FOR THE ENTIRE
29 CURRENT OPERATIVE PERIOD. THE COMMISSION SHALL ADOPT PROCEDURES
30 FOR REVIEWING AND EITHER APPROVING, DISAPPROVING OR MODIFYING
19770H1676B2510 - 11 -
1 SUCH REVISED BASE RATE SCHEDULES WITHIN THIRTY DAYS OF THEIR
2 FILING.
3 (F) THE COMMISSION MAY ORDER ANY SUCH ELECTRIC UTILITY TO
4 REFUND ANY PORTION OF INCREASED REVENUES RECEIVED BY IT PURSUANT
5 TO REVISIONS OF ITS BASE RATE SCHEDULES AUTHORIZED BY THIS
6 SECTION. REFUNDS SHALL BEAR INTEREST AT THE AVERAGE RATE OF
7 INTEREST SPECIFIED FOR RESIDENTIAL MORTGAGE LENDING BY THE
8 SECRETARY OF BANKING, IN ACCORDANCE WITH THE ACT OF JANUARY 30,
9 1974 (P.L.13, NO.6), REFERRED TO AS THE LOAN INTEREST AND
10 PROTECTION LAW, FOR THE PERIOD OR PERIODS FOR WHICH REFUNDS ARE
11 ORDERED. ANY REFUND REQUIRED OR ORDERED TO BE MADE PURSUANT TO
12 THIS SECTION SHALL BE MADE BY MEANS OF A CREDIT AGAINST
13 CURRENTLY APPLICABLE BILLING CHARGES, OVER SUCH PERIODS AS THE
14 COMMISSION SHALL DETERMINE IN EACH CASE.
15 (G) ANY DIFFERENCE BETWEEN THE ANNUAL REVENUES COLLECTED BY
16 A UTILITY UNDER THIS SECTION AND THE ACTUAL FUEL AND ENERGY
17 COSTS INCURRED BY THE UTILITY DURING SUCH A TWELVE-MONTH PERIOD
18 DESIGNATED BY THE COMMISSION WILL BE EITHER REFUNDED OR CHARGED
19 TO THE UTILITY'S CUSTOMERS IN A MANNER PRESCRIBED BY THE
20 COMMISSION.
21 (H) ANY APPROVAL OR MODIFICATION OF RATES MADE PURSUANT TO
22 THIS SECTION SHALL NOT BE DEEMED "COMMISSION-MADE" RATES FOR THE
23 PURPOSES OF SUBSECTIONS (F) AND (G) AND SECTION 313.
24 (I) THE COMMISSION SHALL CONDUCT OR CAUSE TO BE CONDUCTED AT
25 SUCH TIMES AS IT MAY ORDER, BUT AT LEAST ANNUALLY, AN AUDIT OF
26 EACH MAJOR CLASS A ELECTRIC UTILITY, WHICH AUDIT SHALL ENABLE
27 THE COMMISSION TO DETERMINE THE PROPRIETY AND CORRECTNESS OF
28 AMOUNTS BILLED AND COLLECTED UNDER THIS SECTION. WHOEVER SHALL
29 PERFORM THE AUDIT SHALL BE A PERSON KNOWLEDGEABLE IN THE SUBJECT
30 MATTER ENCOMPASSED WITHIN THIS SECTION. THE AUDITORS REPORT
19770H1676B2510 - 12 -
1 SHALL BE IN A FORM AND MANNER DIRECTED BY THE COMMISSION.
2 Section 4. This act shall take effect immediately.
I15L52JLW/19770H1676B2510 - 13 -