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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GODSHALL, PRESTON, BUXTON, CARROLL, DENLINGER, FARRY, GIBBONS, GROVE, MATZIE, MILLER, MURT, PICKETT, READSHAW, REICHLEY, SAINATO, STERN, SWANGER AND YOUNGBLOOD, FEBRUARY 1, 2011 |
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| REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 1, 2011 |
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| AN ACT |
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1 | Amending Title 66 (Public Utilities) of the Pennsylvania |
2 | Consolidated Statutes, further providing for definitions; in |
3 | rates and ratemaking, further providing for sliding scale of |
4 | rates and adjustments; and, in service and facilities, |
5 | further providing for ownership and maintenance of natural |
6 | gas and artificial gas service lines. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. The definitions of "customer's service line" and |
10 | "service line" in section 102 of Title 66 of the Pennsylvania |
11 | Consolidated Statutes are amended to read: |
12 | § 102. Definitions. |
13 | Subject to additional definitions contained in subsequent |
14 | provisions of this part which are applicable to specific |
15 | provisions of this part, the following words and phrases when |
16 | used in this part shall have, unless the context clearly |
17 | indicates otherwise, the meanings given to them in this section: |
18 | * * * |
19 | ["Customer's service line." The pipe and appurtenances owned |
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1 | by the customer extending from the service connection of the gas |
2 | utility to the inlet of the meter serving the customer.] |
3 | * * * |
4 | "Service line." The pipe and all appurtenances [of the gas |
5 | utility which connect any main with either the point of |
6 | connection of a customer's service line or the meter of the |
7 | public utility if the utility owns all the pipe and |
8 | appurtenances between its main and meter.] extending from the |
9 | main line of the natural gas distribution company to the inlet |
10 | of the meter serving the customer. |
11 | * * * |
12 | Section 2. Section 1307 of Title 66 is amended by adding |
13 | subsections to read: |
14 | § 1307. Sliding scale of rates; adjustments. |
15 | * * * |
16 | (g.2) Recovery of costs for natural gas distribution company |
17 | related to distribution system improvement projects designed to |
18 | enhance natural gas distribution reliability and safety.-- |
19 | (1) Natural gas distribution companies may file tariffs |
20 | establishing a sliding scale of rates or other method for the |
21 | automatic adjustment of the rates in order to provide for |
22 | recovery of the fixed costs, including depreciation and |
23 | pretax return, of certain infrastructure distribution |
24 | projects as approved by the commission, that are designed to |
25 | enhance distribution system reliability or safety and are |
26 | completed and placed in service between base rate |
27 | proceedings. |
28 | (2) The commission, by regulation or order, shall |
29 | prescribe the specific procedures to be followed in |
30 | establishing the sliding scale or other automatic adjustment |
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1 | mechanism. |
2 | (g.3) Recovery of costs for city natural gas distribution |
3 | operation related to distribution system improvement projects |
4 | designed to enhance natural gas distribution reliability and |
5 | safety.-- |
6 | (1) A city natural gas distribution operation may file |
7 | tariffs establishing a sliding scale of rates or other |
8 | methods for the automatic adjustment of its rates as shall |
9 | provide for recovery of the fixed costs, depreciation, costs |
10 | of issuance, annual debt service, annual debt service |
11 | coverage requirements and any other related costs associated |
12 | with the financing of certain capital projects designed to |
13 | enhance distribution system reliability or safety that are |
14 | completed and placed in service between base rate |
15 | proceedings. |
16 | (2) The financing may be by the city natural gas |
17 | distribution operation or any other qualified entity |
18 | authorized by it to act on its behalf and may be structured |
19 | in any manner determined by the city natural gas distribution |
20 | operation to reduce the cost of the financing. |
21 | (3) Notwithstanding any other provision of law, the |
22 | revenues recovered pursuant to a tariff authorized by this |
23 | section shall not constitute project revenues under the act |
24 | of October 18, 1972 (P.L.955, No.234), known as The First |
25 | Class City Revenue Bond Act, or utility revenues under the |
26 | act of December 7, 1982 (P.L.827, No.231), known as The City |
27 | of Philadelphia Municipal Utility Inventory and Receivables |
28 | Financing Act, but the city natural gas distribution |
29 | operation shall be authorized to assign, transfer, pledge, |
30 | sell or otherwise dispose of such revenues in order to |
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1 | finance capital projects described in this subsection. |
2 | (4) At the request of the city natural gas distribution |
3 | operation, and notwithstanding any other provision of law, |
4 | the commission may issue an order authorizing a sliding scale |
5 | of rates or other automatic rate adjustment method permitted |
6 | by this section and acknowledging the assignment, transfer, |
7 | pledge, sale or other disposition of the revenues received |
8 | from a tariff approved under this section and shall include |
9 | terms and conditions requested by the city natural gas |
10 | distribution operation to the extent necessary to permit the |
11 | financing of the capital projects at the lowest cost and on |
12 | terms and conditions most favorable to the city natural gas |
13 | distribution operation. |
14 | (5) Any such order shall be: |
15 | (i) irrevocable; and |
16 | (ii) in accordance with section 1307(e), include a |
17 | reconciliation mechanism which shall permit the city |
18 | natural gas distribution operation to recover in rates |
19 | any prior period under collection of costs authorized to |
20 | be collected by this subsection. |
21 | (6) Neither the order nor the charges authorized to be |
22 | collected under the order by the city natural gas |
23 | distribution operation on its behalf or on behalf of any |
24 | financing entity shall be subject to reduction, postponement, |
25 | impairment or termination by any subsequent action of the |
26 | commission, either directly or indirectly. |
27 | (g.4) Industry standards.-- |
28 | (1) For the purposes of recovery provided for in |
29 | subsections (g.2) and (g.3), in order to ensure safety and |
30 | reliability, natural gas distribution system improvement |
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1 | projects shall comply with industry standards by operator- |
2 | qualified workers as required by 49 CFR Pt. 192 (relating to |
3 | transportation of natural and other gas by pipeline: minimum |
4 | Federal safety standards). |
5 | (2) Natural gas distribution companies shall work with |
6 | applicable private and public sector entities to employ and |
7 | maintain an adequate trained and qualified work force. |
8 | (3) All contractor work shall be done by a qualified |
9 | contractor who is authorized to do business in this |
10 | Commonwealth to complete said projects. All contractor work |
11 | shall be inspected by an appropriate operator-qualified |
12 | individual. |
13 | (4) This subsection is not intended to limit or modify |
14 | current or future collective bargaining agreements. |
15 | * * * |
16 | Section 3. Section 1510 of Title 66 is amended to read: |
17 | § 1510. [Ownership and maintenance of natural and artificial] |
18 | Natural gas service lines. |
19 | [When connecting the premises of the customer with the gas |
20 | utility distribution mains, the public utility shall furnish, |
21 | install and maintain the service line or connection according to |
22 | the rules and regulations of the filed tariff. A public utility |
23 | shall not be authorized or required to acquire or assume |
24 | ownership of any customer's service line. A public utility shall |
25 | not be authorized or required to acquire or assume ownership of |
26 | any pipe or appurtenances installed after the effective date of |
27 | this section between its main and the meter unless the utility |
28 | would have been authorized or required to do so according to the |
29 | rules and regulations of its filed tariff if the pipe or |
30 | appurtenances had been installed on or before the effective date |
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1 | of this section. Maintenance of service lines shall be the |
2 | responsibility of the owner of the service line.] |
3 | (a) Duty to furnish, install, operate and maintain.--When |
4 | initially connecting the premises of the customer with the main |
5 | line of the natural gas distribution company as defined by |
6 | section 2202 (relating to definitions) the natural gas |
7 | distribution company shall furnish and install the service line. |
8 | After the initial installation, the natural gas distribution |
9 | company shall own and be responsible for operating and |
10 | maintaining the service line. |
11 | (b) Assumption of financial responsibility.--For a service |
12 | line in use on the effective date of this subsection, a natural |
13 | gas distribution company shall be required to assume financial |
14 | responsibility and the operating and maintenance obligations for |
15 | all such service lines, without regard to the date of |
16 | installation of the service line. |
17 | (c) Replacement.--Upon replacement of any service line by a |
18 | natural gas distribution company, a natural gas distribution |
19 | company shall own and be responsible for operating and |
20 | maintaining such facilities. |
21 | Section 4. This act shall take effect in 60 days. |
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