1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, providing for a program to extend
3natural gas delivery to unserved or underserved areas.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Title 66 of the Pennsylvania Consolidated
7Statutes is amended by adding a chapter to read:

8Chapter 22-A

9PROGRAM TO EXTEND NATURAL GAS DELIVERY TO UNSERVED OR
10UNDERSERVED AREAS

11Sec.

122201-A. Petition.

132202-A. Program requirements.

142203-A. Commission review.

15§ 2201-A. Petition.

16No later than January 1, 2015, or 60 days after the effective
17date of this chapter, whichever is later, each natural gas
18distribution company shall file a petition with the commission

1proposing a pilot or permanent program, including any necessary
2tariffs, to extend natural gas distribution service to unserved
3or underserved areas within its certificated service territory.

4§ 2202-A. Program requirements.

5A proposed program shall include:

6(1) A process for managing and prioritizing customer
7requests for extensions of the natural gas distribution
8system.

9(2) A cost-benefit analysis to determine if a customer
10contribution is required.

11(3) A method for determining the amount of a required
12customer contribution in aid of construction.

13(4) A program to enhance the affordability of required
14contributions in aid of construction to customers, including
15the following provisions:

16(i) The program shall provide for on-bill financing
17for a term of no less than five years.

18(ii) A customer shall be able to pay a required
19customer contribution in full at any time, without
20incurring penalties or fees.

21(iii) The form of financing may include a surcharge,
22third-party financing or any other method of recovery
23approved by the commission.

24(5) A provision outlining whether and how refunds or
25credits will be provided to customers as other customers
26receive service from a completed distribution system
27extension project.

28(6) A provision addressing the treatment and eligibility
29of customers participating in a customer assistance program
30who request and receive service from a distribution system

1extension project.

2(7) A provision addressing situations where a customer
3fails to pay a required surcharge or other on-bill financing
4mechanism.

5(8) A customer's natural gas distribution service shall
6not be terminated solely for nonpayment of a surcharge or
7other on-bill financing mechanism.

8(9) Any other provisions that will promote economic
9distribution system extension to unserved and underserved
10areas in a manner that is affordable to customers.

11§ 2203-A. Commission review.

12The commission:

13(1) shall review a petition filed pursuant to section
142201-A (relating to petition), after providing notice and an
15opportunity to be heard and may approve, disapprove or modify
16the filing pursuant to its procedural rules;

17(2) may establish periodic reporting requirements as
18authorized by section 504 (relating to reports by public
19utilities) to review the performance and effectiveness of a
20program; and

21(3) shall not require a natural gas distribution company
22to extend its distribution system to any area or customer
23that does not provide the opportunity to earn a reasonable
24return on investment.

25Section 2. This act shall take effect in 60 days.