PRIOR PRINTER'S NO. 1666                      PRINTER'S NO. 1839

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1417 Session of 1975


        INTRODUCED BY MESSRS. O'BRIEN, GOODMAN, WRIGHT, McCALL,
           BRADLEY, ITKIN, MUSTO, ABRAHAM, LINCOLN, ZORD, MISCEVICH,
           BITTLE, SHELHAMER, DAVIS, LAUDADIO, GEORGE, LEHR, TAYLOR,
           SWEENEY, PETRARCA, IRVIS, MANDERINO, W. W. WILT, BURNS,
           TURNER, USTYNOSKI, CESSAR, A. K. HUTCHINSON, KOLTER,
           MRS. KERNICK, MESSRS. O'CONNELL AND GEESEY, JUNE 10, 1975

        AS RE-REPORTED FROM COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           AS AMENDED, JUNE, 25, 1975

                                     AN ACT

     1  Amending the act of May 28, 1937 (P.L.1053, No.286), entitled
     2     "An act relating to the regulation of public utilities;
     3     defining as public utilities certain corporations, companies,
     4     associations, and persons; providing for the regulation of
     5     public utilities, including, to a limited extent,
     6     municipalities engaging in public utility business, by
     7     prescribing, defining, and limiting their duties, powers, and
     8     liabilities, and regulating the exercise, surrender or
     9     abandonment of their powers, privileges, and franchises;
    10     defining and regulating contract carriers by motor vehicle
    11     and brokers in order to regulate effectively common carriers
    12     by motor vehicle; conferring upon the Pennsylvania Public
    13     Utility Commission the power and duty of supervising and
    14     regulating persons, associations, companies, and
    15     corporations, including, to a limited extent, municipal
    16     corporations subject to this act, and administering the
    17     provisions of this act; authorizing the commission to fix
    18     temporary rates; placing the burden of proof on public
    19     utilities to sustain their rates and certain other matters;
    20     authorizing a permissive or mandatory sliding scale method of
    21     regulating rates; providing for the supervision of financial
    22     and contractural relations between public utilities and
    23     affiliated interests, and supervision and regulation of
    24     accounts and securities or obligations issued, assumed, or
    25     kept by persons, associations, companies, corporations or
    26     municipal corporations subject to this act; conferring upon
    27     the commission power to vary, reform, or revise certain
    28     contracts; conferring upon the commission the exclusive power
    29     to regulate or order the construction, alteration,


     1     relocation, protection, or abolition of crossings of
     2     facilities of public utilities, and of such facilities by or
     3     over public highways, to appropriate property for the
     4     construction or improvement of such crossings, and to award
     5     or apportion resultant costs and damages; authorizing owners
     6     of such property to sue the Commonwealth for such damages;
     7     providing for ejectment proceedings in connection with the
     8     appropriation of property for crossings; conferring upon the
     9     commission power to control and regulate budgets of public
    10     utilities; imposing upon persons, associations, companies,
    11     and corporations (except municipal corporations) subject to
    12     regulation, the cost of administering this act; prescribing
    13     and regulating practice and procedure before the commission
    14     and procedure for review by the courts of commission action;
    15     giving the court of common pleas of Dauphin County exclusive
    16     original jurisdiction over certain proceedings; prescribing
    17     penalties, fines, and imprisonment for violations of the
    18     provisions of this act and regulations and orders of the
    19     commission, and the procedure for enforcing such fines and
    20     penalties; and repealing legislation supplied and superseded
    21     by or inconsistent with this act," further providing for the
    22     automatic adjustment of rates by restricting the costs of the
    23     fuel adjustment permitted.

    24     The General Assembly of the Commonwealth of Pennsylvania
    25  hereby enacts as follows:
    26     Section 1.  Section 307, act of May 28, 1937 (P.L.1053,
    27  No.286), known as the "Public Utility Law," is amended by adding
    28  a subsection to read:
    29     Section 307.  Sliding Scale of Rates.--* * *
    30     (c)  Whenever any public utility, other than a common carrier  <--
    31  uses the automatic adjustment provisions of this section to
    32  cover the increased fuel costs by increasing the rates charged
    33  to consumers, the increase in the rates shall be limited to the
    34  actual cost of acquiring the fuel.
    35     (C)  IN ANY METHOD AUTOMATICALLY ADJUSTING RATES TO REFLECT    <--
    36  CHANGES IN FOSSIL FUEL COST UNDER THIS SECTION, THE FUEL COST
    37  USED IN COMPUTING THE ADJUSTMENT SHALL BE LIMITED, IN THE CASE
    38  OF AN ELECTRIC UTILITY, TO THE COST OF SUCH FUEL DELIVERED TO
    39  THE UTILITY AT THE GENERATING SITE AT WHICH IT IS TO BE
    40  CONSUMED, AND THE COST OF DISPOSING OF SOLID WASTE FROM
    41  SCRUBBERS OR OTHER DEVICES DESIGNED SO THAT THE CONSUMPTION OF
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     1  PENNSYLVANIA-MINED COAL AT THE GENERATING SITE WOULD COMPLY WITH
     2  THE SULFUR OXIDE EMISSION STANDARDS PRESCRIBED BY THE
     3  COMMONWEALTH OF PENNSYLVANIA. THE COST OF FUEL HANDLING AFTER
     4  SUCH DELIVERY, OR OF WASTE DISPOSAL, OTHER THAN AS PRESCRIBED
     5  ABOVE, SHALL BE EXCLUDED FROM SUCH COMPUTATION.
     6     Section 2.  This act shall take effect immediately. IN 90      <--
     7  DAYS.
















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