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SENATE AMENDED
PRIOR PRINTER'S NOS. 1896, 1909
PRINTER'S NO. 2163
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1490
Session of
2017
INTRODUCED BY TURZAI, READSHAW, CALTAGIRONE, D. COSTA, P. COSTA,
DEASY, ENGLISH, EVANKOVICH, KAUFFMAN, KORTZ, KULIK, MILLARD,
MUSTIO, ORTITAY, QUIGLEY, WARD, WHEELAND, MAHER, DeLUCA AND
MICCARELLI, JUNE 2, 2017
SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL
LICENSURE, IN SENATE, AS AMENDED, JUNE 28, 2017
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, IN RATES AND DISTRIBUTION SYSTEMS,
FURTHER PROVIDING FOR RATES TO BE JUST AND REASONABLE; AND
providing for water and sewer authorities in cities of the
second class.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
SECTION 1. SECTION 1301 OF TITLE 66 OF THE PENNSYLVANIA
CONSOLIDATED STATUTES IS AMENDED TO READ:
§ 1301. RATES TO BE JUST AND REASONABLE.
(A) REGULATION.--EVERY RATE MADE, DEMANDED, OR RECEIVED BY
ANY PUBLIC UTILITY, OR BY ANY TWO OR MORE PUBLIC UTILITIES
JOINTLY, SHALL BE JUST AND REASONABLE, AND IN CONFORMITY WITH
REGULATIONS OR ORDERS OF THE COMMISSION. ONLY PUBLIC UTILITY
SERVICE BEING FURNISHED OR RENDERED BY A MUNICIPAL CORPORATION,
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OR BY THE OPERATING AGENCIES OF ANY MUNICIPAL CORPORATION,
BEYOND ITS CORPORATE LIMITS, SHALL BE SUBJECT TO REGULATION AND
CONTROL BY THE COMMISSION AS TO RATES, WITH THE SAME FORCE, AND
IN LIKE MANNER, AS IF SUCH SERVICE WERE RENDERED BY A PUBLIC
UTILITY.
(B) MUNICIPAL CORPORATIONS.--IN DETERMINING A JUST AND
REASONABLE RATE FURNISHED OR RENDERED BY A MUNICIPAL CORPORATION
OR BY THE OPERATING AGENCIES OF A MUNICIPAL CORPORATION
PROVIDING PUBLIC UTILITY WATER OR WASTEWATER SERVICE BEYOND ITS
CORPORATE LIMITS, THE COMMISSION SHALL EMPLOY AN IMPUTED CAPITAL
STRUCTURE OF COMPARABLE PUBLIC UTILITIES PROVIDING WATER OR
WASTEWATER SERVICE.
SECTION 2. TITLE 66 IS AMENDED BY ADDING A CHAPTER TO READ:
CHAPTER 32
WATER AND SEWER AUTHORITIES
IN CITIES OF THE
SECOND CLASS
Sec.
3201. Definitions.
3202. Application of provisions of title.
3203. Prior tariffs.
3204. Tariff filing and compliance plan.
3205. Maintenance, repair and replacement of facilities and
equipment.
3206. Duties of Office of Consumer Advocate and Office of Small
Business Advocate.
3207. Commission assessment.
3208. Power of authority.
3209. Proprietary information of authority.
§ 3201. Definitions.
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The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." A body politic or corporate established by a
city of the second class under 53 Pa.C.S. Ch. 56 (relating to
municipal authorities), under the former act of June 28, 1935
(P.L.463, No.191), known as the Municipality Authorities Act of
one thousand nine hundred and thirty-five, or under the former
act of May 2, 1945 (P.L.382, No.164), known as the Municipality
Authorities Act of 1945, which owns or operates equipment or
facilities for any of the following purposes:
(1) Diverting, developing, pumping, impounding,
distributing or furnishing water to customers for
compensation.
(2) Wastewater collection, CONVEYANCE, treatment or
disposal to customers for compensation.
(3) STORM WATER COLLECTION, CONVEYANCE, TREATMENT AND
DISPOSAL.
§ 3202. Application of provisions of title.
(a) Application.--The following apply:
(1) Beginning on January 1, 2018 , UNLESS OTHERWISE
PROVIDED IN THIS CHAPTER , the provisions of this title,
except Chapters 11 (relating to certificates of public
convenience) and 21 (relating to relations with affiliated
interests), shall apply to an authority in the same manner as
a public utility.
(2) Notwithstanding paragraph (1), section 1103 shall
apply to an authority that seeks to acquire, construct or
begin to operate any equipment, plant or other facility for
the rendering of service beyond the areas served as of the
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effective date of this section.
(b) Exception.--Upon request of an authority, the commission
may suspend or waive the applicability of any provision of this
title to the authority, except for this section.
§ 3203. Prior tariffs.
(a) Service.--An authority shall continue to provide service
to the authority's customers in accordance with a prior tariff
until the effective date of a commission's order approving a new
tariff. If the effective date of a commission's order approving
a new tariff has been stayed by a court of competent
jurisdiction, the prior tariff shall remain in effect until the
stay has been dissolved.
(b) Disputes or conflicts.--In accordance with section 3208
(relating to power of authority), the commission shall resolve
all disputes or conflicts arising under a prior tariff.
(c) Definition.--As used in this section, the term "prior
tariff" shall mean the tariff, rate schedule and riders
incorporated into the tariff, including the bylaws, terms and
conditions or other documents setting forth the rates and terms
and conditions of service provided by an authority on the date
the commission assumes jurisdiction over the authority.
§ 3204. Tariff filing and compliance plan.
(a) Filing.--An authority shall file a tariff and supporting
data with the commission within 60 90 days of the effective date
of this section. The commission shall conduct a rate proceeding
in accordance with the commission's procedures for tariff
filings. To the extent practical, public hearings on the tariff
filing shall be held within the boundaries of an authority.
(b) Compliance plan.-- Within 120 180 days of the effective
date of this section, an authority shall file a compliance plan
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with the commission which shall include provisions to bring an
authority's existing information technology, accounting,
billing, collection and other operating systems and procedures
into compliance with the requirements applicable to
jurisdictional water and wastewater utilities under this title
and applicable rules, regulations and orders of the commission.
The compliance plan shall also include a long-term
infrastructure improvement plan in accordance with Subchapter B
of Chapter 13 (relating to distribution systems).
(c) Commission review.--The commission shall review the
compliance plan filed by an authority under subsection (b) and
may order the authority to file a new or revised compliance plan
if the compliance plan fails to adequately ensure and maintain
the provision of adequate, efficient, safe, reliable and
reasonable service.
§ 3205. Maintenance, repair and replacement of facilities and
equipment.
(a) Authorization.--The commission may require an authority
to maintain, repair and replace facilities and equipment used to
provide services under this chapter to ensure that the equipment
and facilities comply with section 1501 (relating to character
of service and facilities).
(b) Petition.--An authority may petition the commission for
the establishment of a distribution system improvement charge.
An authority which establishes a distribution system improvement
charge shall comply with all applicable requirements of
Subchapter B of Chapter 13 (relating to distribution systems).
§ 3206. Duties of Office of Consumer Advocate and Office of
Small Business Advocate.
(a) Office of Consumer Advocate.--The Office of Consumer
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Advocate shall represent the interests of consumers as a party,
or otherwise participate for the purpose of representing the
interests of consumers, in any matter properly before the
commission relating to an authority.
(b) Office of Small Business Advocate.--The Office of Small
Business Advocate shall represent the interests of consumers as
a party, or otherwise participate for the purpose of
representing the interests of small business consumers, in any
matter properly before the commission relating to an authority.
(c) Authorization.--In addition to any other powers
conferred upon the Office of Consumer Advocate or Office of
Small Business Advocate, the Office of Consumer Advocate or
Office of Small Business Advocate may represent an interest of
consumers presented to it for consideration, in writing, by a
substantial number of individuals who make, direct, use or are
the recipients of a product or service provided by an authority.
§ 3207. Commission assessment.
(a) Sworn statement.--In order to allow the commission to
carry out the commission's duties under this chapter, the
president CHAIRPERSON, VICE CHAIRPERSON OR EXECUTIVE DIRECTOR of
an authority shall file, within 60 30 days of the effective date
of this section and on or before March 31 of each year
thereafter , a sworn statement which specifies the authority's
gross intrastate revenues for the immediately preceding fiscal
CALENDAR year in the same manner as required under section
510(b) (relating to assessment for regulatory expenses upon
public utilities).
(b) Billing.--The commission shall make an estimate based on
the gross intrastate revenues specified under subsection (a) in
accordance with the procedures set forth in section 510(b) and
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shall impose an assessment on an authority based on the
authority's proportional share of the commission's expenses
relating to the commission's utility group in accordance with
section 510(b) . An authority shall pay an assessment on an
annual basis in accordance with section 510.
§ 3208. Power of authority.
(a) Power.--Nothing in this chapter shall be construed to
rescind or limit the power of a city of the second class to
establish an authority OR DETERMINE THE POWERS AND FUNCTIONS OF
AN AUTHORITY .
(b) Audits.--Nothing in this chapter shall be construed to
limit or prevent a city official of a city of the second class
from conducting audits and examinations of the financial affairs
of an authority in accordance with the city official's duties.
(C) SECURITIES OF AUTHORITY.--NOTWITHSTANDING ANY PROVISION
IN THIS TITLE TO THE CONTRARY:
(1) THE COMMISSION SHALL PERMIT AN AUTHORITY TO IMPOSE,
CHARGE OR COLLECT RATES OR CHARGES AS NECESSARY TO PERMIT THE
AUTHORITY TO COMPLY WITH ITS COVENANTS TO THE HOLDERS OF ANY
BONDS OR OTHER FINANCIAL OBLIGATIONS.
(2) THE COMMISSION MAY NOT REQUIRE AN AUTHORITY TO TAKE
ACTION OR OMIT TAKING ANY ACTION UNDER THIS TITLE IF THE
ACTION OR OMISSION WOULD HAVE THE EFFECT OF CAUSING THE
INTEREST ON TAX-EXEMPT BONDS OR OTHER FINANCIAL OBLIGATIONS
ISSUED BY THE AUTHORITY TO BE INCLUDABLE IN THE GROSS INCOME
OF THE HOLDERS OF THE BONDS OR OTHER FINANCIAL OBLIGATIONS
FOR FEDERAL INCOME TAX PURPOSES.
(3) AN AUTHORITY MAY CONTINUE TO ISSUE BONDS OR OTHER
FINANCIAL OBLIGATIONS ON BEHALF OF THE AUTHORITY UNDER 53
PA.C.S. CH. 56 (RELATING TO MUNICIPAL AUTHORITIES), AND AS
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OTHERWISE PROVIDED BY LAW.
§ 3209. Proprietary information of authority.
Proprietary information, trade secrets and competitively
sensitive information of an authority shall not be public
records under the act of February 14, 2008 (P.L.6, No.3), known
as the Right-to-Know Law, and shall not be subject to mandatory
public disclosure. Nothing in this chapter shall be construed to
exempt an authority from providing information to the commission
as specified under sections 501 (relating to general powers),
504 (relating to reports by public utilities), 505 (relating to
duty to furnish information to commission; cooperation in
valuing property) and 506 (relating to inspection of facilities
and records) or any other provision of this title which requires
information to be provided to the commission .
Section 2 3. All acts or parts of acts are repealed insofar
as they are inconsistent with this act.
Section 3 4. This act shall take effect as follows:
(1) The addition of 66 Pa.C.S. § 3207 shall take effect
in 60 days.
(2) The remainder of this act shall take effect
immediately.
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