PRINTER'S NO. 311
No. 287 Session of 1987
INTRODUCED BY LLOYD, STEIGHNER, PHILLIPS, TRELLO, CAPPABIANCA,
PISTELLA, TIGUE, ITKIN, BELFANTI, McHALE, KUKOVICH, KOSINSKI,
COY, SHOWERS, BALDWIN, CORRIGAN, FREEMAN AND STABACK,
FEBRUARY 11, 1987
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 11, 1987
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for decision deadlines for
3 rates.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 1309 of Title 66 of the Pennsylvania
7 Consolidated Statutes is amended to read:
8 § 1309. Rates fixed on complaint; investigation of costs of
9 production.
10 (a) General rule.--Whenever the commission, after reasonable
11 notice and hearing, upon its own motion or upon complaint, finds
12 that the existing rates of any public utility for any service
13 are unjust, unreasonable, or in anywise in violation of any
14 provision of law, the commission shall determine the just and
15 reasonable rates, including maximum or minimum rates, to be
16 thereafter observed and in force, and shall fix the same by
17 order to be served upon the public utility, and such rates shall
1 constitute the legal rates of the public utility until changed
2 as provided in this part. Whenever a public utility does not
3 itself produce or generate that which it distributes, transmits,
4 or furnishes to the public for compensation, but obtains the
5 same from another source, the commission shall have the power
6 and authority to investigate the cost of such production or
7 generation in any investigation of the reasonableness of the
8 rates of such public utility.
9 (b) Deadline for decision.--Before the expiration of a nine-
10 month period beginning on the date of the commission's motion or
11 the filing of a complaint pursuant to subsection (a), a majority
12 of the members of the commission serving in accordance with law,
13 acting unanimously, shall make a final decision and order,
14 setting forth its reasons therefor. If such an order has not
15 been made at the expiration of such nine-month period and the
16 motion or complaint pursuant to subsection (a) requested a
17 reduction in rates, the requested reduction shall go into effect
18 at the end of such period and shall remain in effect until the
19 commission makes a final decision and order, provided that, if
20 such final decision and order determines or fixes rates which
21 are not as low as the requested reduction, the public utility
22 shall not be permitted to impose retroactively the rates finally
23 fixed and ordered. The commission shall consider the effect of
24 the period during which a requested reduction will have been in
25 effect when it determines or fixes rates in its final decision
26 and order. This subsection shall apply only when the requested
27 reduction in rates affects more than 5% of the customers and
28 amounts to in excess of 3% of the total gross annual intrastate
29 operating revenues of the public utility, provided that, if the
30 public utility furnishes two or more types of service, the
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1 foregoing percentages shall be determined only on the basis of
2 the customers receiving, and the revenues derived from, the type
3 of service to which the requested reduction pertains.
4 Section 2. This act shall take effect in 60 days.
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