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PRINTER'S NO. 123
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
214
Session of
2015
INTRODUCED BY YAW, GREENLEAF, VULAKOVICH, BREWSTER, COSTA,
GORDNER, WARD, WOZNIAK, WHITE, BAKER, VOGEL, SCARNATI,
STEFANO AND YUDICHAK, JANUARY 15, 2015
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JANUARY 15, 2015
AN ACT
Providing for distribution system extension and expansion plans
to increase natural gas usage in this Commonwealth.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Natural Gas
Consumer Access Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commission." The Pennsylvania Public Utility Commission.
"Distribution system." A system owned and operated by a
natural gas distribution utility.
"Expansion project." Modification to an existing pipeline,
main extension or service line to one or more residential,
commercial or industrial entities not receiving natural gas
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service within an existing certificated service area.
"Extension project." New construction of a service line,
main extension or pipeline to provide natural gas service to one
or more residential, commercial or industrial entities not
receiving natural gas service and for which a certificate of
public convenience is required under 66 Pa.C.S. § 1102 (relating
to enumeration of acts requiring certificate) that is not within
the current certificate of public convenience territory issued
by the commission to the natural gas distribution utility.
"Natural gas distribution utility." As defined in 66 Pa.C.S.
§ 1403 (relating to definitions). The term shall not include a
city natural gas distribution operation.
Section 3. Distribution system extension and expansion plan.
(a) Submission.--Within nine months after the effective date
of this section, or within two years after a franchise territory
is awarded, each natural gas distribution utility shall submit a
plan to the commission. The plan shall be updated triennially
unless sooner requested by the commission. The plan shall
include the following:
(1) The number of existing customers by municipality in
the certificated service area.
(2) The number of residential, commercial and industrial
entities in the service area by municipality that do not have
gas service available, and the anticipated market
penetration.
(3) The adjacent municipalities of a distribution system
that are not serviced by a natural gas distribution utility.
(4) A three-year projection for extension projects, if
appropriate, demonstrating a reasonable increase in the
service area of customers per year.
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(5) A three-year projection for expansion projects,
along with accompanying data, that is based upon the length
and cost of the required expansions and the numbers of
customers affected for each potential project demonstrating a
reasonable increase in the service area of customers per
year.
(6) Financing that is available to complete the
programs, including customer contribution programs.
(7) Known rights-of-way, easement or geographic issues
or local charges that present an impediment to expansion or
extension projects.
(8) A form that will be used to enter into an agreement
with a prospective customer in order to obtain access to an
expansion or extension project.
(9) The standards the natural gas utility will use to
determine if a customer is unable to comply with the
repayment schedule adopted by the natural gas utility.
(b) Commission review.--The commission shall review the plan
submitted under subsection (a) for adequacy and completeness and
may seek additional information as necessary. If the commission
believes the plan does not meet the requirements of this act,
the commission shall reject the plan and order the natural gas
distribution utility to submit a revised plan. Any changes to
the plan may require additional commission review.
(c) Supplemental information.--The commission shall require
a supplemental filing of information to ensure full compliance
with this act by a natural gas distribution utility that has
within the last year filed a commission-approved plan or
program.
(d) Periodic review.--The commission shall promulgate
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regulations for the periodic review of distribution system
extension and expansion plans submitted under subsection (a),
including standards to ensure expansion and accessibility to
residential, commercial and industrial users. The regulations
may authorize a natural gas distribution utility to revise,
update or submit a new plan as appropriate.
(e) Confidentiality.--At the request of the natural gas
distribution utility, the commission shall maintain
confidentiality of specific information deemed to be
proprietary.
Section 4. Customer contributions.
(a) Requirement.--A natural gas distribution utility shall
provide residential, commercial and industrial customers with
customer contribution criteria for extension and expansion
projects.
(b) Contents.--The criteria under subsection (a) shall
contain all of the following:
(1) The actual cost of the extension or expansion of
service to the prospective customer and the geographic area
for that project.
(2) A cost-benefit test to determine whether a customer
contribution is required.
(3) A reasonable period of time based on the customer
contribution, which shall not be less than 10 years or a
lesser period of time by mutual agreement between the
prospective customer and the natural gas distribution
utility, in which customers will reimburse the natural gas
distribution utility for the customer contribution and
commission-authorized costs of extension or expansion of
service to the prospective customer.
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(4) The total cost to a customer, including initial
deposit and periodic payment or reduction in periodic
payments.
(5) Reasonable refund provisions to the original
customers as other customers receive service from the
extension or expansion of service to the original customers.
The refund period shall begin upon date of service and shall
be for a period of not less than five years unless otherwise
approved by the commission.
(6) Support for the economic test used to determine the
customer contribution for line extensions and comparisons
with other economic tests, such as a net revenue screen or
net present value method.
(c) Adjustment.--The natural gas distribution utility shall
adjust a customer contribution to reflect changes in expansion
or extension of service to customers.
(d) Bill.--The charge assessed under this section shall
appear as a separate, itemized line on the customer's bill.
Section 5. Notification.
The natural gas distribution utility shall provide
notification to all its customers of its distribution system
extension and expansion plan and customer contribution criteria
at least once a year. The initial notification shall be included
in the monthly bill of the customer. After initial notification,
notice of the distribution system extension and expansion plan
and customer contribution criteria shall be posted on the
natural gas distribution utility's Internet website.
Section 6. Bona fide request program.
(a) Provision.--A natural gas distribution utility shall
provide, as part of the plan, a bona fide request program in
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areas where it does not provide service or for expansion of
service and the manner in which customers will be charged for
expansion. The plan shall provide for priority of extension or
expansion projects if there is any of the following:
(1) A large aggregation of residential, commercial or
industrial entities who ask to obtain or expand service.
Expedited consideration shall be based on the number of
potential customers, the density of the area seeking service,
the potential usage and the cost of extending or expanding
service.
(2) An economic development corporation, which as part
of a development project which will create 30 or more jobs,
requires expanded or extended service.
(b) Description.--The natural gas distribution utility shall
provide the commission with a written description of the
program, a sample request for prioritization of extension or
expansion projects, explanation of how the outreach program
could expand its customer class, how geographic issues will be
evaluated and the form of any agreement prospective customers
will be required to execute in connection with receiving the gas
service.
(c) Enforcement.--The commission shall monitor, certify and
enforce the compliance of participating natural gas distribution
utilities with their obligations under this section.
Section 7. Commission.
(a) Approval.--The commission by regulation or order shall
prescribe the specific procedures to be followed to approve a
distribution system extension and expansion plan and customer
contribution criteria, taking into consideration the saturation
and other characteristics of each natural gas distribution
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utility.
(b) Eligible costs.--The commission shall establish
standards to ensure that work on extension and expansion of
service is performed by qualified employees of either the
natural gas distribution utility or an independent contractor in
a manner that protects system reliability and safety of the
public.
(c) Order.--If the commission determines that the
distribution system extension and expansion plan is inadequate
to provide reasonable access to natural gas services by
residential, commercial or industrial customers, the commission
shall revise the natural gas distribution utility's plan and
customer contribution criteria to ensure reasonable access.
Section 8. Audit.
(a) Charges.--A charge by a natural gas distribution utility
to undertake a distribution system extension and expansion plan
shall be subject to the following:
(1) Audit at intervals as determined by the commission.
(2) Reconciliation at intervals as determined by the
commission.
(b) Interest on excess charges.--If revenue received from
charges under this act exceeds actual costs, the excess received
shall be refunded with interest to the customer. Interest on
excess collections shall be calculated at the residential
mortgage lending rate specified by the Secretary of Banking
under the act of January 30, 1974 (P.L.13, No.6), referred to as
the Loan Interest and Protection Law, and shall be refunded in
the same manner as an excess collection to the customer.
Section 9. Applicability.
Nothing in this act shall be construed to allow the natural
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gas utility or the commission to pass the cost of an expansion
or extension project to existing natural gas customers.
Section 10. Effective date.
This act shall take effect in 30 days.
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