PRINTER'S NO. 301
No. 294 Session of 1989
INTRODUCED BY MUSTO AND MELLOW, JANUARY 25, 1989
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 25, 1989
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, further providing for valuation of and
3 return on the property of a public utility.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 1311 of Title 66 of the Pennsylvania
7 Consolidated Statutes is amended to read:
8 § 1311. Valuation of and return on the property of a public
9 utility.
10 (a) Valuation generally.--The commission may, after
11 reasonable notice and hearing, ascertain and fix the value of
12 the whole or any part of the property of any public utility,
13 insofar as the same is material to the exercise of the
14 jurisdiction of the commission, and may make revaluations from
15 time to time in the value of rate base of a public utility on
16 account of all new construction, extensions, additions and
17 retirements to the property of any public utility.
18 (b) Method of valuation.--[The] Except as provided in
1 subsection (e), the value of the property of the public utility
2 included in the rate base shall be the original cost of the
3 property when first devoted to the public service less the
4 applicable accrued depreciation as such depreciation is
5 determined by the commission.
6 (c) Segregation of property.--When any public utility
7 furnishes more than one of the different types of utility
8 service, the commission shall segregate the property used and
9 useful in furnishing each type of such service, and shall not
10 consider the property of such public utility as a unit in
11 determining the value of the rate base of such public utility
12 for the purpose of fixing rates.
13 (d) Common carriers.--In fixing any rate of a public utility
14 engaged exclusively as a common carrier by motor vehicle, the
15 commission may, in lieu of other standards established by law,
16 fix the fair return by relating the fair and reasonable
17 operating expenses, depreciation, taxes and other costs of
18 furnishing service to operating revenues.
19 (e) Acquiring and consolidating water companies.--
20 (1) An entity which acquires a water company because the
21 acquired company was independently unable to furnish and
22 maintain adequate, efficient, safe or reasonable service or
23 facilities may apply to the commission for and shall be
24 entitled to a rate increase to allow for the acquisition cost
25 and costs of improvements necessary to bring the acquired
26 facilities up to the standards required under section 1501
27 (relating to character of service and facilities).
28 (2) Water companies which consolidate on a regional
29 basis in order to upgrade their services and facilities to
30 make them adequate, efficient, safe and reasonable may apply
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1 to the commission for and shall be entitled to a rate
2 increase to allow for the costs of consolidation and for the
3 costs of improvements necessary to bring the consolidated
4 facilities up to the standards required under section 1501.
5 (f) Water system improvements.--A water system improvement
6 mandated pursuant to the act of May 1, 1984 (P.L.206, No.43),
7 known as the Pennsylvania Safe Drinking Water Act, shall be
8 includable in the water company's rate base upon completion of
9 the improvement, subject to the approval of the commission. The
10 inclusion, if approved, may take effect before the improvement
11 is placed in service.
12 Section 2. This act shall take effect in 60 days.
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