H2200B3176A05807       BIL:DM  02/08/08    #90             A05807
                       AMENDMENTS TO HOUSE BILL NO. 2200
                                    Sponsor:  REPRESENTATIVE FREEMAN
                                           Printer's No. 3176

     1       Amend Title, page 1, line 2, by striking out "and"
     2       Amend Title, page 1, line 4, by removing the period after
     3    "response" and inserting
     4               ; and further providing for duties of electric
     5               distribution companies.

     6       Amend Sec. 1 (Sec. 2803), page 3, line 3, by striking out all
     7    of said line and inserting
     8       "Real-time price."  A rate that directly reflects the
     9    different cost of energy during each hour.
    10       * * *
    11       "Smart meter technology."  Technology, including, but not
    12    limited to, metering technology and network communications
    13    technology capable of bidirectional communication and that
    14    records electricity usage on at least an hourly basis, including
    15    related electric distribution system upgrades to enable the
    16    technology. The technology shall provide customers with direct
    17    access to and use of price and consumption information. The
    18    technology shall also:
    19           (1)  Directly provide customers with information on their
    20       hourly consumption.
    21           (2)  Enable time-of-use rates and real-time price
    22       programs.
    23           (3)  Effectively support the automatic control of the
    24       customer's electricity consumption by one or more of the
    25       following as selected by the customer:
    26               (i)  the customer;
    27               (ii)  the customer's utility; or
    28               (iii)  a third party engaged by the customer or the
    29           customer's utility.
    30       "Time-of-use rate."  A rate that reflects the costs of
    31    serving customers during different time periods, including off-
    32    peak and on-peak periods, but not as frequently as each hour.

    33       Amend Bill, page 13, by inserting between lines 22 and 23
    34       Section 3.  Section 2807(e) of Title 66 is amended by adding
    35    a paragraph to read:
    36    § 2807.  Duties of electric distribution companies.

     1       * * *
     2       (e)  Obligation to serve.--* * *
     3           (6)  (i)  Within nine months after the effective date of
     4           this paragraph, electric distribution companies shall
     5           file a smart meter technology procurement and
     6           installation plan with the commission for approval and
     7           make the plan available for public comment for a minimum
     8           of 30 days. The plan shall describe the smart meter
     9           technologies the electric distribution company proposes
    10           to install, how the smart meter technology meets the
    11           requirements of this paragraph and how the smart meter
    12           technology shall be installed according to this
    13           paragraph. In addition, the plan shall ensure that all
    14           smart meter technology installation and maintenance work
    15           shall be performed by adequately trained and qualified
    16           personnel and that, to the extent practical, such work
    17           shall be offered initially to employees of the electric
    18           distribution company.
    19               (ii)  Electric distribution companies shall furnish
    20           smart meter technology to:
    21                   (A)  Customers responsible for 40% of the
    22               distribution company's annual peak demand within four
    23               years after the effective date of this paragraph.
    24                   (B)  Customers responsible for 75% of the
    25               distribution company's annual peak demand within six
    26               years after the effective date of this paragraph.
    27                   (C)  One hundred percent of its customers within
    28               ten years after the effective date of this paragraph.
    29           Electric distribution companies shall, with customer
    30           consent, make available electronic access to customer
    31           meter data to third parties, including electric
    32           generation suppliers and providers of conservation and
    33           load management services.
    34               (iii)  Electric distribution companies shall be
    35           permitted to recover all reasonable and prudent costs, as
    36           determined by the commission, of providing smart meter
    37           technology, including annual deprecation and capital
    38           costs over the life of the smart meter technology, that
    39           are incurred after the effective date of this paragraph,
    40           less all operating and capital costs savings realized by
    41           the electric distribution company from the introduction
    42           and use of the smart meter technology. An electric
    43           distribution company may, at its option, recover such
    44           smart meter technology costs:
    45                   (A)  through base rates, including a deferral for
    46               future base rate recovery of current costs, with
    47               carrying charges equal to 6%; or
    48                   (B)  on a full and current basis through a
    49               reconcilable automatic adjustment clause under
    50               section 1307 (relating to sliding scale of rates;
    51               adjustments).
    52           In no event shall lost or decreased revenues by an
    53           electric distribution company due to reduced electricity
    54           consumption or shifting energy demand be considered a
    55           cost of smart meter technology. Smart meter technology
    56           shall be deemed to be a new service offered for the first
    57           time under section 2804(4)(vi) (relating to standards for
    58           restructuring of electric industry).
    59               (iv)  By January 1, 2010, or at the end of the

    HB2200A05807                     - 2 -     

     1           applicable generation rate cap period, whichever is
     2           later, a default service provider shall submit to the
     3           commission one or more proposed time-of-use rates and a
     4           real-time price plan. The commission shall approve or
     5           modify the time-of-use rates and real-time price plan
     6           within six months of submittal. The default service
     7           provider shall offer commission-approved time-of-use
     8           rates and a real-time price plan to all residential and
     9           commercial customers that have been provided with smart
    10           meter technology within 60 days of installation of the
    11           smart meter technology or commission approval of the
    12           time-of-use rates and a real-time price plan, whichever
    13           is later. Customer participation in time-of-use rates or
    14           real-time pricing shall be voluntary and shall only be
    15           provided with the affirmative consent of the customer.
    16           The default service provider shall submit an annual
    17           report to the commission on the participation in the
    18           time-of-use and real-time price programs and the efficacy
    19           of the programs in affecting energy demand and
    20           consumption and the effect on wholesale market prices.
    21               (v)  For purposes of this paragraph, the term
    22           "electric distribution company" shall mean a public
    23           utility providing facilities for the jurisdictional
    24           transmission and distribution of electricity to 100,000
    25           or more retail customers in this Commonwealth.

    26       Amend Sec. 3, page 13, line 23, by striking out "3" and
    27    inserting
    28               4

    B8L90BIL/HB2200A05807            - 3 -