PRINTER'S NO. 2342

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1907 Session of 1977


        INTRODUCED BY F. TAYLOR, GARZIA, BENNETT, GATSKI, PRATT, SWEET,
           C. GEORGE, FEE, ZELLER, STAIRS, DeWEESE, CASSIDY,
           D. R. WRIGHT, FRYER, STAPLETON, DeMEDIO, DOMBROWSKI, COLE,
           MILLIRON, SHUMAN, STUBAN, DIETZ, LEVI, YAHNER, MORRIS,
           RUGGIERO, ABRAHAM, LAUGHLIN, VALICENTI, ZWIKL, TENAGLIO,
           BITTINGER, COWELL, FLAHERTY, MILANOVICH, GRIECO, CALTAGIRONE,
           DUMAS, O'KEEFE AND RITTER, NOVEMBER 22, 1977

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, NOVEMBER 22, 1977

                                     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," by eliminating provisions
    22     for automatic adjustment of rates and further providing
    23     rates.

    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 repealed.
    28     Section 2.  The act is amended by adding a section to read:
    29     Section 307.1  Fuel Costs.--(a)  Within thirty days following
    30  the end of such twelve-month period as the commission shall
    31  designate, each public utility shall submit a statement which
    32  shall specify its fuel costs for such twelve-month period. Such
    33  statement shall be a matter of public record and copies thereof
    34  shall be made available to any person upon request to the
    35  commission.
    36     (b)  Upon receipt of such statement the commission shall
    37  conduct or cause to be conducted an audit of each public utility
    38  which shall enable the commission to determine the propriety and
    39  correctness of such statement. Whoever shall perform the audit
    40  shall be a person knowledgeable in the subject matter
    41  encompassed within the audit.
    19770H1907B2342                  - 2 -

     1     (c)  Within sixty days following the submission of such
     2  statement, the commission shall hold a public hearing on the
     3  substance of the statement, including, but not limited to, the
     4  accuracy of the statement and the reasonableness of the fuel
     5  costs.
     6     (d)  Within thirty days of such hearing, the commission shall
     7  by order establish a new base rate for the public utility
     8  reflecting such portion of the fuel costs contained in the
     9  statement which the commission shall deem accurate and
    10  reasonable.
    11     (e)  The commission shall have the right to require the
    12  submission of any fuel cost data and contractual agreements
    13  which it shall deem necessary to make the determinations
    14  required under subsection (d). If a public utility shall fail or
    15  refuse to submit any such information, the commission shall
    16  order that the base rate of said public utility effective on the
    17  date of the filing of the statement required by subsection (a)
    18  remain in effect.
    19     (f)  Any person wilfully submitting false information under
    20  this section shall be guilty of a misdemeanor of the first
    21  degree.
    22     (g)  The provisions of sections 313 and 1312 establishing a
    23  statute of limitation shall not apply to the right of
    24  prosecution under subsection (f) nor to the right of the
    25  commission to order refunds of any overcharges resulting from
    26  the submission of such false information.
    27     Section 3.  This act shall take effect immediately.


    K17L52JLW/19770H1907B2342        - 3 -