PRIOR PRINTER'S NOS. 1326, 1604 PRINTER'S NO. 3183
No. 1191 Session of 1981
INTRODUCED BY VROON, PRATT, MAIALE, LETTERMAN, WOGAN, PERZEL,
SALVATORE, PISTELLA, E. Z. TAYLOR, BLAUM, MERRY, SWAIM,
ITKIN, REBER, MORRIS AND SIRANNI APRIL 21, 1981
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
APRIL 19, 1982
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, REMOVING CERTAIN UTILITIES FROM THE <--
3 SLIDING SCALE OF RATES PROVISION; further providing for THE <--
4 CONSTRUCTION OF ELECTRIC GENERATING UNITS, THE METERING OF
5 ELECTRICITY SUPPLIED TO CHURCHES AND OTHER PLACES OF WORSHIP,
6 CERTIFICATES OF PUBLIC CONVENIENCE, CERTIFICATES OF NEED AND
7 RELIABILITY FOR MAJOR ELECTRICAL GENERATING FACILITIES, THE
8 INSPECTION AND MONITORING OF CERTAIN FACILITIES, THE REMOVAL
9 OF CERTAIN UTILITY FACILITIES FROM RATE BASE CALCULATIONS IN
10 THE EVENT OF EXTRAORDINARY OUTAGES, THE INCREASED USE OF COAL
11 BY ELECTRIC UTILITIES, THE BASE RATE, REGULATING BILLING
12 PROCEDURES, REQUIRING COMPETITIVE BIDDING FOR PURCHASE OF
13 COAL BY CONTRACT, THE METERING OF ELECTRICITY SUPPLIED TO
14 VOLUNTEER FIRE COMPANIES, THE METERING OF ELECTRICITY
15 SUPPLIED TO FIRE COMPANIES, landlord ratepayers and tenants,
16 and for notice prior to discontinuance of service, MANAGEMENT <--
17 AUDITS, NOTICES OF ESTIMATES OF SERVICE CHARGES AND FOR
18 CITIZEN REPRESENTATION ON THE BOARDS OF DIRECTORS OF CERTAIN
19 PUBLIC UTILITIES; FIXING THE QUALIFICATIONS OF SUCH
20 INDIVIDUALS; ESTABLISHING PROCEDURES FOR THE SELECTION OF
21 CITIZEN REPRESENTATIVES; PROHIBITING DISCONTINUANCE OF
22 CERTAIN PUBLIC UTILITY SERVICE DURING CERTAIN PERIODS AND
23 EMPOWERING THE COMMISSION TO CONDUCT CERTAIN ANNUAL STUDIES
24 ON FEDERAL TAX CREDITS AND DEFERRALS.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 SECTION 1. SECTION 102 OF TITLE 66, ACT OF NOVEMBER 25, 1970 <--
28 (P.L.707, NO.230), KNOWN AS THE PENNSYLVANIA CONSOLIDATED
1 STATUTES, IS AMENDED BY ADDING DEFINITIONS TO READ:
2 § 102. DEFINITIONS.
3 SUBJECT TO ADDITIONAL DEFINITIONS CONTAINED IN SUBSEQUENT
4 PROVISIONS OF THIS PART WHICH ARE APPLICABLE TO SPECIFIC
5 PROVISIONS OF THIS PART, THE FOLLOWING WORDS AND PHRASES WHEN
6 USED IN THIS PART SHALL HAVE, UNLESS THE CONTEXT CLEARLY
7 INDICATES OTHERWISE, THE MEANINGS GIVEN TO THEM IN THIS SECTION:
8 * * *
9 "MAJOR GENERATING FACILITY." AN ELECTRIC GENERATING PLANT
10 AND ASSOCIATED FACILITIES DESIGNATED FOR, OR CAPABLE OF,
11 OPERATING AT A CAPACITY OF 50 MEGAWATTS OR MORE OR THE ADDITION
12 OF A GENERATING UNIT OF 50 MEGAWATTS OR MORE TO AN EXISTING
13 PLANT.
14 * * *
15 "RATE BASE." THE VALUE OF THE WHOLE OR ANY PART OF THE
16 PROPERTY OF A PUBLIC UTILITY WHICH IS USED AND USEFUL IN THE
17 PUBLIC SERVICE.
18 * * *
19 SECTION 2. SECTION 506 OF TITLE 66 IS AMENDED TO READ:
20 § 506. INSPECTION OF FACILITIES AND RECORDS.
21 (A) GENERAL RULE.--THE COMMISSION SHALL HAVE FULL POWER AND
22 AUTHORITY, EITHER BY OR THROUGH ITS MEMBERS, OR DULY AUTHORIZED
23 REPRESENTATIVES, WHENEVER IT SHALL DEEM IT NECESSARY OR PROPER
24 IN CARRYING OUT ANY OF THE PROVISIONS OF, OR ITS DUTIES UNDER
25 THIS PART, TO ENTER UPON THE PREMISES, BUILDINGS, MACHINERY,
26 SYSTEM, PLANT, AND EQUIPMENT, AND MAKE ANY INSPECTION,
27 VALUATION, PHYSICAL EXAMINATION, INQUIRY, OR INVESTIGATION OF
28 ANY AND ALL PLANT AND EQUIPMENT, FACILITIES, PROPERTY, AND
29 PERTINENT RECORDS, BOOKS, PAPERS, ACCOUNTS, MAPS, INVENTORIES,
30 APPRAISALS, VALUATIONS, MEMORANDA, DOCUMENTS, OR EFFECTS
19810H1191B3183 - 2 -
1 WHATSOEVER, OF ANY PUBLIC UTILITY, OR PREPARED OR KEPT FOR IT BY
2 OTHERS, AND TO HOLD ANY HEARING FOR SUCH PURPOSES. IN THE
3 PERFORMANCE OF SUCH DUTIES, THE COMMISSION MAY HAVE ACCESS TO,
4 AND USE ANY BOOKS, RECORDS, OR DOCUMENTS IN THE POSSESSION OF,
5 ANY DEPARTMENT, BOARD, OR COMMISSION OF THE COMMONWEALTH, OR ANY
6 POLITICAL SUBDIVISION THEREOF. BEFORE THE COMMISSION ASCERTAINS
7 THE FAIR VALUE OF ALL NEW CONSTRUCTION, EXTENSIONS AND ADDITIONS
8 TO THE VALUE OF THE PROPERTY OF ANY PUBLIC UTILITY AS PROVIDED
9 IN SECTION 1311 (RELATING TO VALUATION OF PROPERTY OF A PUBLIC
10 UTILITY) AND INCLUDES THAT PROPERTY IN ASCERTAINING EITHER
11 GENERAL, EXTRAORDINARY OR TEMPORARY RATES, THE PUBLIC UTILITY
12 SHALL WAIVE ALL OBJECTIONS TO PERMIT THE COMMISSION TO CARRY OUT
13 ITS POWERS AND DUTIES AS PRESCRIBED IN THIS SECTION.
14 (B) NUCLEAR FACILITIES.--FOR PURPOSES OF CARRYING OUT
15 INSPECTIONS OF NUCLEAR FACILITIES, THE COMMISSION MAY EMPLOY THE
16 SERVICES OF THE DEPARTMENT OF ENVIRONMENTAL RESOURCES OR ANY
17 OTHER STATE AGENCY THE COMMISSION MAY DESIGNATE. THE PUBLIC
18 UTILITY SHALL PERMIT THE INSTALLATION OF SUCH MONITORING DEVICES
19 AS THE COMMISSION OR THE DESIGNATED AGENCY SHALL EMPLOY WITHIN
20 THE FACILITY INVOLVED. THE PUBLIC UTILITY SHALL AGREE TO NOTIFY
21 SUCH AGENCY AS THE COMMISSION SHALL DESIGNATE IMMEDIATELY AFTER
22 A SERIOUS ACCIDENT OR ONE THAT MAY BE SERIOUS AND TO PRESENT IN
23 WRITING WITHIN TEN DAYS AFTER ANY ACCIDENT A REPORT OF SUCH
24 ACCIDENT ALONG WITH THE CAUSES OF THE ACCIDENT AND ACTION TAKEN
25 TO CORRECT THE SITUATION THAT CAUSED THE ACCIDENT.
26 SECTION 3. TITLE 66 IS AMENDED BY ADDING SECTIONS TO READ:
27 § 514. CONSTRUCTION OF PUBLIC UTILITY UNITS.
28 ONLY UPON THE APPLICATION OF A PUBLIC UTILITY AND THE
29 APPROVAL OF THE APPLICATION BY THE COMMISSION, EVIDENCED BY A
30 CONSTRUCTION PERMIT GRANTED BY THE COMMISSION, SHALL IT BE
19810H1191B3183 - 3 -
1 LAWFUL FOR THE UTILITY TO BEGIN THE CONSTRUCTION OF AN OPERATING
2 UNIT. EVERY APPLICATION FOR A CONSTRUCTION PERMIT SHALL BE MADE
3 TO THE COMMISSION IN WRITING AND SHALL BE IN THE FORM AND
4 CONTAIN THE INFORMATION THE COMMISSION REQUIRES BY ITS
5 REGULATIONS.
6 § 515. STUDY OF FEDERAL TAX CREDITS AND DEFERRALS.
7 THE COMMISSION SHALL UNDERTAKE A COMPREHENSIVE STUDY IN
8 COOPERATION WITH APPROPRIATE FEDERAL AND STATE AGENCIES,
9 INCLUDING THE FEDERAL ENERGY REGULATORY COMMISSION AND THE
10 INTERNAL REVENUE SERVICE, TO DETERMINE THE DOLLAR VALUE OF THE
11 DEFERRED FEDERAL TAXES OF PENNSYLVANIA ELECTRIC UTILITIES WITH
12 GROSS ANNUAL REVENUE IN EXCESS OF $2,500,000. THE STUDY SHALL BE
13 DIRECTED TO FINDINGS ON:
14 (1) THE AMOUNT OF INVESTMENT TAX CREDIT GENERATED EACH
15 YEAR SINCE 1971.
16 (2) AN ANNUAL SUMMARY OF THE ACCELERATED DEPRECIATION OF
17 FEDERAL TAX DEFERRALS RECEIVED SINCE 1970.
18 (3) THE IMPACT ON PRESENT AND FUTURE UTILITY RATES OF
19 THE AVAILABILITY OR NONAVAILABILITY OF SUCH TAX CREDITS AND
20 DEFERRALS.
21 THE COMMISSION SHALL HAVE 180 DAYS TO PREPARE THIS STUDY, MAKING
22 IT CURRENT AS OF THE PREVIOUS TAX YEAR. THEREAFTER, THE
23 COMMISSION SHALL PUBLISH AN ANNUAL UPDATE.
24 § 516. CONVERSION OF ELECTRIC GENERATING UNITS.
25 (A) MONITORING.--THE COMMISSION SHALL CONTINUALLY MONITOR
26 THE TECHNOLOGICAL AND COST FACTORS RELEVANT TO THE FEASIBILITY
27 OF CONVERTING EACH EXISTING OIL-FUELED ELECTRIC GENERATING UNIT
28 OF A PUBLIC UTILITY TO OPERATION FUELED BY COAL OR A SYNTHETIC
29 FUEL DERIVED FROM COAL.
30 (B) ORDER BY COMMISSION.--WHENEVER THE MONITORING REQUIRED
19810H1191B3183 - 4 -
1 BY SUBSECTION (A) OR OTHER EVIDENCE PRESENTED TO THE COMMISSION
2 INDICATES THAT CONVERSION OF AN OIL-FUELED ELECTRIC GENERATING
3 UNIT MAY BE FEASIBLE, THE COMMISSION SHALL ISSUE AN ORDER TO THE
4 AFFECTED PUBLIC UTILITY TO SHOW CAUSE WHY THE COMMISSION SHOULD
5 NOT ORDER THE CONVERSION OF THAT UNIT. THE COMMISSION SHALL
6 ISSUE AN ORDER REQUIRING THE CONVERSION OF THAT UNIT UNLESS,
7 AFTER REASONABLE NOTICE AND HEARING, THE AFFECTED PUBLIC UTILITY
8 PROVES AND THE COMMISSION FINDS:
9 (1) THAT CONVERSION OF THE UNIT IS NOT TECHNOLOGICALLY
10 FEASIBLE;
11 (2) THAT THE UNIT, IF SO CONVERTED, COULD NOT BE
12 OPERATED IN COMPLIANCE WITH PRESENT AND REASONABLY
13 ANTICIPATED APPLICABLE ENVIRONMENTAL LAWS AND REGULATIONS; OR
14 (3) THAT THERE IS A STRONG PROBABILITY THAT THE
15 CONVERSION AND SUBSEQUENT OPERATION OF THE CONVERTED UNIT
16 WOULD BE MORE COSTLY TO RATEPAYERS OVER THE ECONOMICALLY
17 USEFUL LIFE OF THE UNIT THAN WOULD CONTINUED OPERATION AS AN
18 OIL-FUELED UNIT.
19 (C) ENVIRONMENTAL QUESTIONS.--THE COMMISSION MAY CERTIFY TO
20 THE DEPARTMENT OF ENVIRONMENTAL RESOURCES ANY QUESTION REGARDING
21 THE APPLICABILITY OF ENVIRONMENTAL LAWS AND REGULATIONS, WHEN
22 ANY SUCH QUESTION ARISES IN A PROCEEDING UNDER THIS SECTION, AND
23 MAY INCORPORATE THE DEPARTMENT'S FINDINGS IN ITS DECISION.
24 § 517. CONSTRUCTION OF PUBLIC UTILITY FACILITIES.
25 EXCEPT FOR THOSE INVESTMENTS FOR ENVIRONMENTAL PROTECTION
26 FACILITIES RELATED TO EXISTING FACILITIES OR INVESTMENTS WHICH
27 NEITHER PRODUCE REVENUE NOR REDUCE EXPENSES, THE COST OF
28 CONSTRUCTION OR EXPANSION OF A PUBLIC UTILITY FACILITY SHALL NOT
29 BE MADE A PART OF THE RATE BASE UNTIL THE FACILITY BECOMES USED
30 AND USEFUL IN THE PUBLIC SERVICE, WHICH SHALL BE DEEMED TO MEAN
19810H1191B3183 - 5 -
1 A FACILITY FULLY COMPLETED, APPROVED AND ACTUALLY PROVIDING
2 UTILITY SERVICES TO CUSTOMERS. THE BURDEN OF PROOF SHALL BE UPON
3 THE UTILITY TO SHOW SUCH NONREVENUE PRODUCING, NONEXPENSE
4 REDUCING INVESTMENTS TO BE NECESSARY TO IMPROVE ENVIRONMENTAL
5 CONDITIONS, IMPROVE QUALITY OR RELIABILITY OF SERVICE OR IMPROVE
6 SAFETY.
7 § 518. CONSTRUCTION OF ELECTRIC GENERATING UNITS FUELED BY
8 NUCLEAR ENERGY.
9 (A) GENERAL RULE.--ONLY UPON THE APPLICATION OF A PUBLIC
10 UTILITY AND THE APPROVAL OF THE APPLICATION BY THE COMMISSION,
11 SHALL IT BE LAWFUL FOR THE UTILITY TO BEGIN THE CONSTRUCTION OF
12 AN ELECTRIC GENERATING UNIT FUELED BY NUCLEAR ENERGY.
13 (B) REVIEW BY COMMISSION.--EVERY APPLICATION SHALL BE MADE
14 TO THE COMMISSION IN WRITING AND SHALL BE IN THE FORM AND
15 CONTAIN THE INFORMATION THE COMMISSION REQUIRES BY ITS
16 REGULATIONS. THE COMMISSION SHALL APPROVE AN APPLICATION IF,
17 AFTER REASONABLE NOTICE AND HEARING, IT DETERMINES:
18 (1) THAT THERE ARE NO REASONABLY AVAILABLE SITES ON
19 WHICH A UNIT OR UNITS OF COMPARABLE CAPACITY FUELED BY COAL;
20 A SYNTHETIC DERIVED IN WHOLE OR IN PART FROM COAL; OR A
21 MIXTURE OF TWO OR MORE FUELS, AT LEAST ONE OF WHICH IS COAL
22 OR IS DERIVED FROM COAL COULD BE OPERATED IN COMPLIANCE WITH
23 APPLICABLE ENVIRONMENTAL LAWS AND REGULATIONS; OR
24 (2) THAT THERE IS A STRONG PROBABILITY THAT CONSTRUCTION
25 AND SUBSEQUENT OPERATION OF A UNIT OR UNITS OF COMPARABLE
26 CAPACITY FUELED BY COAL; A SYNTHETIC DERIVED IN WHOLE OR IN
27 PART FROM COAL; OR A MIXTURE OF TWO OR MORE FUELS, AT LEAST
28 ONE OF WHICH IS COAL OR IS DERIVED FROM COAL WOULD BE MORE
29 COSTLY TO RATEPAYERS THAN WOULD CONSTRUCTION AND SUBSEQUENT
30 OPERATION OF THE UNIT PROPOSED BY THE UTILITY.
19810H1191B3183 - 6 -
1 (C) ENVIRONMENTAL QUESTIONS.--THE COMMISSION MAY CERTIFY TO
2 THE DEPARTMENT OF ENVIRONMENTAL RESOURCES ANY QUESTION REGARDING
3 THE APPLICABILITY OF ENVIRONMENTAL LAWS AND REGULATIONS, WHEN
4 ANY SUCH QUESTION ARISES IN A PROCEEDING UNDER THIS SECTION, AND
5 MAY INCORPORATE THE DEPARTMENT'S FINDINGS IN ITS DECISION.
6 (D) TIME LIMIT ON COMMISSION REVIEW.--IF THE COMMISSION
7 FAILS TO APPROVE OR DISAPPROVE AN APPLICATION WITHIN SIX MONTHS
8 AFTER THE DATE ON WHICH THE APPLICATION IS FILED, IT SHALL BE
9 LAWFUL FOR THE AFFECTED UTILITY TO CONSTRUCT THE PROPOSED
10 ELECTRIC GENERATING UNIT AS THOUGH THE COMMISSION HAD APPROVED
11 THE APPLICATION.
12 § 519. CONSTRUCTION OF ELECTRIC GENERATING UNITS FUELED BY
13 OIL OR NATURAL GAS.
14 (A) GENERAL RULE.--ONLY UPON THE APPLICATION OF A PUBLIC
15 UTILITY AND THE APPROVAL OF THE APPLICATION BY THE COMMISSION,
16 SHALL IT BE LAWFUL FOR THE UTILITY TO BEGIN THE CONSTRUCTION OF
17 AN ELECTRIC GENERATING UNIT FUELED BY OIL OR NATURAL GAS.
18 (B) REVIEW BY COMMISSION.--EVERY APPLICATION SHALL BE MADE
19 TO THE COMMISSION IN WRITING AND SHALL BE IN THE FORM AND
20 CONTAIN THE INFORMATION THE COMMISSION REQUIRES BY ITS
21 REGULATIONS. THE COMMISSION SHALL APPROVE AN APPLICATION IF,
22 AFTER REASONABLE NOTICE AND HEARING, IT DETERMINES:
23 (1) THAT THERE ARE NO REASONABLY AVAILABLE SITES ON
24 WHICH A UNIT OR UNITS OF COMPARABLE CAPACITY FUELED BY COAL;
25 A SYNTHETIC DERIVED IN WHOLE OR IN PART FROM COAL; OR A
26 MIXTURE OF TWO OR MORE FUELS, AT LEAST ONE OF WHICH IS COAL
27 OR IS DERIVED FROM COAL COULD BE OPERATED IN COMPLIANCE WITH
28 APPLICABLE ENVIRONMENTAL LAWS AND REGULATIONS; OR
29 (2) THAT THERE IS A STRONG PROBABILITY THAT CONSTRUCTION
30 AND SUBSEQUENT OPERATION OF A UNIT OR UNITS OF COMPARABLE
19810H1191B3183 - 7 -
1 CAPACITY FUELED BY COAL; A SYNTHETIC DERIVED IN WHOLE OR IN
2 PART FROM COAL; OR A MIXTURE OF TWO OR MORE FUELS, AT LEAST
3 ONE OF WHICH IS COAL OR IS DERIVED FROM COAL WOULD BE MORE
4 COSTLY TO RATEPAYERS THAN WOULD CONSTRUCTION AND SUBSEQUENT
5 OPERATION OF THE UNIT PROPOSED BY THE UTILITY.
6 (C) ENVIRONMENTAL QUESTIONS.--THE COMMISSION MAY CERTIFY TO
7 THE DEPARTMENT OF ENVIRONMENTAL RESOURCES ANY QUESTION REGARDING
8 THE APPLICABILITY OF ENVIRONMENTAL LAWS AND REGULATIONS, WHEN
9 ANY SUCH QUESTION ARISES IN A PROCEEDING UNDER THIS SECTION, AND
10 MAY INCORPORATE THE DEPARTMENT'S FINDINGS IN ITS DECISION.
11 (D) TIME LIMIT ON COMMISSION REVIEW.--IF THE COMMISSION
12 FAILS TO APPROVE OR DISAPPROVE AN APPLICATION WITHIN SIX MONTHS
13 AFTER THE DATE ON WHICH THE APPLICATION IS FILED, IT SHALL BE
14 LAWFUL FOR THE AFFECTED UTILITY TO CONSTRUCT THE PROPOSED
15 ELECTRIC GENERATING UNIT AS THOUGH THE COMMISSION HAD APPROVED
16 THE APPLICATION.
17 § 520. CONVERSION OF THREE MILE ISLAND.
18 (A) INVESTIGATION.--THE COMMISSION SHALL INVESTIGATE THE
19 CHANGES IN PHYSICAL PLANT WHICH WOULD BE NECESSARY, THE
20 ESTIMATED CAPITAL COST OF THOSE CHANGES, AND THE COMPARATIVE
21 EFFECT ON CONSTRUCTION REQUIREMENTS AND RATES OF PENNSYLVANIA
22 ELECTRIC UTILITIES IF UNIT NUMBER TWO AT THE THREE MILE ISLAND
23 ELECTRIC GENERATING STATION WERE:
24 (1) CONVERTED TO COAL; A SYNTHETIC DERIVED IN WHOLE OR
25 IN PART FROM COAL; OR A MIXTURE OF TWO OR MORE FUELS, AT
26 LEAST ONE OF WHICH IS COAL OR IS DERIVED FROM COAL;
27 (2) RETURNED TO SERVICE AS A NUCLEAR PLANT; OR
28 (3) CLOSED PERMANENTLY.
29 (B) REPORT.--THE COMMISSION SHALL SUBMIT A COPY OF ITS
30 FINDINGS, WITH ANY RECOMMENDATIONS IT DEEMS APPROPRIATE, TO THE
19810H1191B3183 - 8 -
1 HOUSE OF REPRESENTATIVES AND TO THE SENATE NOT LATER THAN SIX
2 MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION.
3 (C) MONITORING.--FOLLOWING COMPLETION OF THE INVESTIGATION
4 REQUIRED BY SUBSECTION (A) AND THE SUBMISSION OF THE REPORT
5 REQUIRED BY SUBSECTION (B), THE COMMISSION SHALL, ON AN ONGOING
6 BASIS, MONITOR CHANGES IN TECHNOLOGICAL AND COST FACTORS
7 RELEVANT TO THE FEASIBILITY OF CONVERTING UNIT NUMBER TWO TO
8 COAL; A SYNTHETIC DERIVED IN WHOLE OR IN PART FROM COAL; OR A
9 MIXTURE OF TWO OR MORE FUELS, AT LEAST ONE OF WHICH IS COAL OR
10 IS DERIVED FROM COAL. THE COMMISSION SHALL REPORT TO THE HOUSE
11 OF REPRESENTATIVES AND THE SENATE ANY CHANGES WHICH WOULD MAKE
12 CONVERSION SIGNIFICANTLY MORE OR LESS FEASIBLE THAN INDICATED BY
13 THE INVESTIGATION REQUIRED BY SUBSECTION (A).
14 § 521. COMPETITIVE BIDDING FOR THE PURCHASE OF COAL BY
15 CONTRACTS.
16 (A) BIDDING REQUIREMENTS.--ANY ELECTRIC UTILITY WHICH
17 INTENDS TO PURCHASE MORE THAN AN AGGREGATE TOTAL OF 50,000 TONS
18 OF COAL FOR ANY MONTH ON A CONTRACTUAL BASIS SHALL AWARD SUCH
19 CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER THROUGH COMPETITIVE
20 BIDDING PROCEDURE. DUPLICATE COPIES OF ALL BIDS SHALL BE SENT BY
21 THE BIDDER TO THE COMMISSION AT LEAST 48 HOURS PRIOR TO THE
22 OPENING OF THE BIDS. THE UTILITY SHALL NOTIFY THE COMMISSION OF
23 THE SUCCESSFUL BIDDER AND THE BID PRICE AND PROVIDE AN
24 EXPLANATION WHENEVER THE CONTRACT IS NOT AWARDED TO THE LOWEST
25 BIDDER.
26 (B) REGULATIONS.--THE COMMISSION SHALL ADOPT REGULATIONS
27 RELATIVE TO SUCH COMPETITIVE BIDDING PROCEDURES.
28 (C) POLLUTION STANDARDS.--THIS SECTION SHALL NOT BE
29 CONSTRUED AS TO REQUIRE THE PURCHASE OF COAL WHICH IS OF A LOWER
30 GRADE OR QUALITY THAN THAT WHICH IS REQUIRED BY THE UTILITY TO
19810H1191B3183 - 9 -
1 MEET EMISSION OR AIR QUALITY STANDARDS SET BY FEDERAL OR STATE
2 LAW OR REGULATIONS.
3 (D) VIOLATIONS.--THE COMMISSION MAY, UPON ITS OWN INITIATIVE
4 OR UPON AN ALLEGATION BY ANY PERSON, INVESTIGATE A CLAIMED
5 VIOLATION OF THIS SECTION, AND, IN DOING SO, SHALL NOT DISCLOSE
6 THE IDENTITY OF ANY PERSON MAKING SUCH ALLEGATION, WITHOUT THE
7 CONSENT OF SUCH PERSON.
8 SECTION 4. SECTION 1102(A) OF TITLE 66 IS AMENDED BY ADDING
9 A PARAGRAPH TO READ:
10 § 1102. ENUMERATION OF ACTS REQUIRING CERTIFICATE.
11 (A) GENERAL RULE.--UPON THE APPLICATION OF ANY PUBLIC
12 UTILITY AND THE APPROVAL OF SUCH APPLICATION BY THE COMMISSION,
13 EVIDENCED BY ITS CERTIFICATE OF PUBLIC CONVENIENCE FIRST HAD AND
14 OBTAINED, AND UPON COMPLIANCE WITH EXISTING LAWS, IT SHALL BE
15 LAWFUL:
16 * * *
17 (6) FOR ANY ELECTRIC UTILITY TO UNDERTAKE MAJOR CAPITAL
18 EXPANSION OR CONSTRUCTION OF ITS FACILITIES RESULTING IN
19 SPENDING IN EXCESS OF 10% OF ITS GROSS ANNUAL REVENUES FOR
20 ANY INDIVIDUAL PROJECT. APPROVAL OF THE COMMISSION SHALL BE
21 REQUIRED PRIOR TO BOTH THE PRELIMINARY PLANNING STAGE AND THE
22 BEGINNING OF ACTUAL CONSTRUCTION. IN CONSIDERING ANY
23 EXPANSION OR CONSTRUCTION FOR APPROVAL THE COMMISSION SHALL
24 CONSIDER THE FACTORS OF CAPACITY, LOCATION FEASIBILITY AND
25 COST IMPACT. WHEN THE COMMISSION DETERMINES THAT SUCH A
26 FACILITY IS USED AND USEFUL, IN THE PUBLIC INTEREST, THE COST
27 OF THE EXPANSION OR CONSTRUCTION IN THE AMOUNT WHICH WAS
28 APPROVED IN THE CERTIFICATE OF PUBLIC CONVENIENCE PROCEEDING
29 SHALL BE MADE A PART OF THE RATE BASE. ANY COSTS INCURRED IN
30 EXCESS OF THE AMOUNT APPROVED IN THE CERTIFICATE PROCEEDING
19810H1191B3183 - 10 -
1 SHALL BE SEPARATELY CONSIDERED BY THE COMMISSION BEFORE ANY
2 PART OF SUCH COSTS MAY BE MADE A PART OF THE RATE BASE AS
3 USED AND USEFUL IN THE PUBLIC INTEREST.
4 * * *
5 SECTION 5. TITLE 66 IS AMENDED BY ADDING A SECTION TO READ:
6 § 1102.1. NONELECTRIC UTILITY CAPITAL CONSTRUCTION
7 CERTIFICATES.
8 EXCEPT FOR COMMON CARRIERS, THE COMMISSION SHALL BY
9 REGULATION ESTABLISH CLASSIFICATIONS OF PUBLIC UTILITIES AND
10 TYPES OF CAPITAL PROJECTS WHICH SHALL REQUIRE CERTIFICATES OF
11 PUBLIC CONVENIENCE.
12 SECTION 6. TITLE 66 IS AMENDED BY ADDING A CHAPTER TO READ:
13 CHAPTER 12
14 CERTIFICATES OF NEED AND RELIABILITY
15 SEC.
16 1201. REQUIREMENT FOR CERTIFICATE OF NEED AND RELIABILITY.
17 1202. PROCEDURE FOR ISSUANCE OF CERTIFICATE OF NEED AND
18 RELIABILITY.
19 1203. REPORTS OF FORECASTS AND ASSESSMENTS OF LOADS AND
20 RESOURCES.
21 1204. METHODOLOGY USED FOR PREPARING FORECASTS.
22 1205. COMMENTS AND EVALUATION OF REPORTS.
23 1206. INAPPLICABILITY OF CHAPTER TO CERTAIN FACILITIES.
24 1207. CERTIFICATE PREREQUISITE TO CERTIFICATE OF PUBLIC
25 CONVENIENCE.
26 § 1201. REQUIREMENT FOR CERTIFICATE OF NEED AND RELIABILITY.
27 (A) GENERAL RULE.--NO PUBLIC UTILITY WHICH GENERATES
28 ELECTRICITY SHALL ACQUIRE, CONSTRUCT OR BEGIN TO OPERATE A MAJOR
29 GENERATING FACILITY WITHOUT HAVING OBTAINED FROM THE COMMISSION
30 A CERTIFICATE THAT THE PRESENT AND FUTURE PUBLIC NECESSITY
19810H1191B3183 - 11 -
1 REQUIRES OR WILL REQUIRE ACQUISITION OR CONSTRUCTION OF
2 ADDITIONAL GENERATING CAPACITY AND THAT THE MEANS OF PRODUCTION
3 OF POWER BY THE PROPOSED FACILITY HAS BEEN DEMONSTRATED FROM THE
4 STANDPOINT OF PROVIDING ADEQUATE, ECONOMIC AND RELIABLE SERVICE
5 TO SATISFY LOCAL, STATE AND REGIONAL ENERGY REQUIREMENTS.
6 (B) CRITERIA FOR ISSUANCE.--CONSIDERATION SHALL BE GIVEN TO
7 CONSERVATION, COGENERATION, LOAD MANAGEMENT AND RENEWABLE SOLAR
8 AND OTHER ENERGY SOURCES AND TO THE ECONOMY AND TECHNOLOGICAL
9 DEVELOPMENT OF VARIOUS SIZES AND TYPES OF GENERATING FACILITIES,
10 INCLUDING PLANNED AND FORCED OUTAGE RATES AND THE EFFECT THEREOF
11 ON REGIONAL RESERVE REQUIREMENTS.
12 (C) WHEN ISSUED.--AFTER THE EFFECTIVE DATE OF THIS CHAPTER,
13 NO CONSTRUCTION OF ANY FACILITY OR MODIFICATION OF ANY EXISTING
14 FACILITY SHALL BE COMMENCED BY ANY ELECTRIC UTILITY WITHOUT
15 FIRST OBTAINING A CERTIFICATE OF NEED AND RELIABILITY. ANY
16 FACILITY UNDER CONSTRUCTION BUT NOT SUBSTANTIALLY COMPLETED
17 BEFORE THE EFFECTIVE DATE OF THIS CHAPTER SHALL NOT BE CONTINUED
18 WITHOUT THE ISSUANCE OF A CERTIFICATE.
19 (D) EFFECT OF ISSUANCE.--THE ISSUANCE OF A CERTIFICATE SHALL
20 CONSTITUTE A REBUTTABLE PRESUMPTION OF THE USED AND USEFUL
21 NATURE OF ANY SUCH FACILITY IN ANY SUBSEQUENT STATE OR LOCAL
22 PROCEEDING.
23 § 1202. PROCEDURE FOR ISSUANCE OF CERTIFICATE OF NEED AND
24 RELIABILITY.
25 (A) APPLICATION FOR CERTIFICATE.--EVERY APPLICATION FOR A
26 CERTIFICATE OF NEED AND RELIABILITY SHALL BE MADE TO THE
27 COMMISSION IN WRITING, BE VERIFIED BY OATH OR AFFIRMATION AND BE
28 IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE COMMISSION MAY
29 REQUIRE BY ITS REGULATIONS.
30 (B) BASIS FOR ISSUANCE.--A CERTIFICATE SHALL BE GRANTED BY
19810H1191B3183 - 12 -
1 THE COMMISSION ONLY IF THE COMMISSION FINDS AND DETERMINES THAT
2 THE MEANS OF PRODUCTION OF POWER BY THE PROPOSED FACILITY HAS
3 BEEN DEMONSTRATED TO PROVIDE ADEQUATE, ECONOMIC AND RELIABLE
4 SERVICE TO THE CUSTOMERS IN THE UTILITIES SERVICE AREA. IN
5 MEETING PROJECTED POWER NEEDS CONSIDERATION SHALL BE GIVEN TO
6 CONSERVATION, COGENERATION, LOAD MANAGEMENT AND RENEWABLE SOLAR
7 AND OTHER ENERGY SOURCES, POWER AVAILABLE FROM REGIONAL POWER
8 GRIDS AND TO THE RELATIVE ECONOMY AND TECHNOLOGICAL DEVELOPMENT
9 OF VARIOUS SIZES AND TYPES OF GENERATING FACILITIES.
10 CONSIDERATION SHALL ALSO BE GIVEN TO PLANNED AND FORCED OUTAGE
11 RATES AND THE EFFECT THEREOF ON REGIONAL RESERVE REQUIREMENTS.
12 (C) TERMS AND CONDITIONS.--IN GRANTING THE CERTIFICATE, THE
13 COMMISSION MAY IMPOSE SUCH CONDITIONS AS IT DEEMS TO BE JUST AND
14 REASONABLE. ANY HOLDER OF A CERTIFICATE OF NEED AND RELIABILITY,
15 BY EXERCISING THE AUTHORITY CONFIRMED BY THE CERTIFICATE, SHALL
16 BE DEEMED TO HAVE WAIVED ANY AND ALL OBJECTIONS TO THE TERMS AND
17 CONDITIONS OF THE CERTIFICATION.
18 (D) INVESTIGATIONS AND HEARINGS.--IN EVERY CASE, THE
19 COMMISSION SHALL MAKE A FINDING OR DETERMINATION IN WRITING
20 STATING WHETHER OR NOT ITS APPROVAL IS GRANTED. FOR THE PURPOSE
21 OF ENABLING THE COMMISSION TO MAKE SUCH FINDING OR
22 DETERMINATION, IT SHALL HOLD SUCH PUBLIC HEARINGS AND, BEFORE OR
23 AFTER HEARING, IT MAY MAKE SUCH INQUIRIES, PHYSICAL
24 EXAMINATIONS, EVALUATIONS AND INVESTIGATIONS, AND MAY REQUIRE
25 SUCH PLANS, SPECIFICATIONS, ESTIMATES OF COST OR OTHER DATA, AS
26 IT DEEMS NECESSARY OR PROPER IN ENABLING IT TO REACH A FINDING
27 OR DETERMINATION.
28 (E) REVIEW BY COMMISSION.--IN THE EVENT THAT THE COMMISSION
29 ISSUES A CERTIFICATE OF NECESSITY, SUCH CERTIFICATE MAY BE
30 REVIEWED BY THE COMMISSION ON ITS OWN MOTION AT ANY TIME. IN ANY
19810H1191B3183 - 13 -
1 SUBSEQUENT PROCEEDINGS INVOLVING THE GENERATING FACILITY, THERE
2 SHALL BE A REBUTTABLE PRESUMPTION THAT THE COMMISSION'S
3 DETERMINATION ON THE NEED FOR SUCH FACILITY IS VALID.
4 § 1203. REPORTS OF FORECASTS AND ASSESSMENTS OF LOADS AND
5 RESOURCES.
6 (A) PREPARATION AND FILING.--EVERY ELECTRIC UTILITY IN THIS
7 COMMONWEALTH SHALL PREPARE AND TRANSMIT TO THE COMMISSION WITHIN
8 180 DAYS OF THE EFFECTIVE DATE OF THIS CHAPTER, AN INITIAL
9 REPORT SPECIFYING 5, 12 AND 20-YEAR FORECASTS OR ASSESSMENTS OF
10 LOADS AND RESOURCES FOR ITS SERVICE AREA AND, THEREAFTER, EVERY
11 ELECTRIC UTILITY SHALL FILE THE 5, 12 AND 20-YEAR FORECASTS OR
12 ASSESSMENTS EVERY TWO YEARS. THE REPORT SHALL BE TRANSMITTED TO
13 THE COMMISSION ON A DATE WHICH THE COMMISSION BY RULE OR
14 REGULATION, ESTABLISHES ON A STAGGERED BASIS FOR EACH ELECTRIC
15 UTILITY. THE REPORT SHALL SET FORTH THE FACILITIES WHICH, AS
16 DETERMINED BY THE ELECTRIC UTILITY, WILL BE REQUIRED TO SUPPLY
17 ELECTRIC POWER DURING THE FORECAST OR ASSESSMENT PERIODS.
18 (B) CONTENT.--THE REPORT SHALL BE IN A FORM SPECIFIED BY THE
19 COMMISSION AND SHALL INCLUDE ALL OF THE FOLLOWING:
20 (1) A TABULATION OF ESTIMATED PEAK LOADS, RESOURCES AND
21 RESERVE MARGINS FOR EACH YEAR DURING THE 5 AND 12-YEAR
22 FORECAST OR ASSESSMENT PERIODS AND AN ESTIMATE OF PEAK LOAD,
23 RESOURCES AND RESERVE MARGINS FOR THE LAST YEAR IN THE 20-
24 YEAR FORECAST OR ASSESSMENT PERIOD.
25 (2) A LIST OF EXISTING ELECTRIC GENERATING PLANTS IN
26 SERVICE WITH A DESCRIPTION OF PLANNED AND POTENTIAL
27 GENERATING CAPACITY AT EXISTING SITES.
28 (3) A LIST OF FACILITIES WHICH WILL BE NEEDED TO SERVE
29 ADDITIONAL ELECTRICAL REQUIREMENTS IDENTIFIED IN THE
30 FORECASTS OR ASSESSMENTS, THE GENERAL LOCATION OF THOSE
19810H1191B3183 - 14 -
1 FACILITIES AND THE ANTICIPATED TYPES OF FUEL TO BE UTILIZED
2 IN THE PROPOSED FACILITIES.
3 (4) A DESCRIPTION OF ADDITIONAL SYSTEM CAPACITY WHICH
4 MIGHT BE ACHIEVED THROUGH, AMONG OTHER THINGS, IMPROVEMENTS
5 IN:
6 (I) GENERATING OR TRANSMISSION EFFICIENCY.
7 (II) IMPORTATION OF POWER.
8 (III) INTERSTATE OR INTERREGIONAL POOLING.
9 (IV) IMPROVEMENTS IN EFFICIENCIES OF OPERATION.
10 (V) CONSERVATION AND LOAD MANAGEMENT.
11 (5) AN ESTIMATION OF THE AVAILABILITY AND COST OF FUEL
12 RESOURCES FOR THE 5, 12 AND 20-YEAR FORECAST OR ASSESSMENT
13 PERIODS WITH A STATEMENT BY THE ELECTRIC UTILITY DESCRIBING
14 FIRM COMMITMENTS FOR SUPPLIES OF FUEL REQUIRED DURING THE
15 FORECAST OR ASSESSMENT PERIODS.
16 (6) A RELIABILITY ANALYSIS WHICH DEMONSTRATES THE TEN-
17 YEAR FORECAST OF RELIABILITY LEVELS OBTAINED FROM THE
18 EXISTING SYSTEM INCLUDING PLANNED ADDITIONS.
19 (7) AN ANNUAL LOAD DURATION CURVE AND A FORECAST OF
20 ANTICIPATED PEAK LOADS FOR EACH FORECAST OR ASSESSMENT PERIOD
21 FOR THE RESIDENTIAL, COMMERCIAL, INDUSTRIAL AND SUCH OTHER
22 MAJOR DEMAND SECTORS IN THE SERVICE AREA OF THE ELECTRIC
23 UTILITY AS THE COMMISSION DETERMINES.
24 (8) LOAD DURATION CURVE FOR THE PRECEDING YEAR.
25 (9) PROJECTIONS OF FORCED AND PLANNED OUTAGE RATES AND
26 OPERATION AND MAINTENANCE COSTS (FIXED AND VARIABLE) FOR THE
27 EXISTING AND PLANNED FACILITIES.
28 (10) CAPACITY AND ENERGY RESOURCES AVAILABLE VIA
29 INTERCONNECTS WITH OTHER UTILITIES ON A SHORT-TERM ECONOMY
30 BASIS AND ON AN EMERGENCY BASIS INCLUDING THE PROBABILITY OF
19810H1191B3183 - 15 -
1 AVAILABILITY OF SUCH RESOURCES AND THEIR ESTIMATED COST.
2 (11) FIVE-YEAR ANNUAL FUEL USE, OPERATION AND
3 MAINTENANCE COSTS, EQUIVALENT AVAILABILITY FACTOR AND HEAT
4 RATE BY PLANT.
5 (12) A DESCRIPTION OF PROJECTED POPULATION GROWTH, URBAN
6 DEVELOPMENT, INDUSTRIAL EXPANSION AND OTHER GROWTH FACTORS
7 INFLUENCING INCREASED DEMAND FOR ELECTRIC ENERGY AND THE
8 BASES FOR SUCH PROJECTIONS.
9 § 1204. METHODOLOGY USED FOR PREPARING FORECASTS.
10 THE COMMISSION SHALL ESTABLISH AND EVERY ELECTRIC UTILITY
11 SHALL UTILIZE, FOR PURPOSES OF THE REPORT, A COMMON METHODOLOGY
12 FOR PREPARING FORECASTS OF FUTURE LOADS AND RESOURCES. AFTER
13 APPLYING THE COMMISSION'S ESTABLISHED METHODOLOGY TO THE
14 MANDATORY ELEMENTS OF THE REPORT SPECIFIED IN SECTION 1203
15 (RELATING TO REPORTS OF FORECASTS AND ASSESSMENTS OF LOADS AND
16 RESOURCES), ANY ELECTRIC UTILITY MAY TRANSMIT TO THE COMMISSION
17 SUPPLEMENTARY INFORMATION AND FORECASTS BASED UPON AN
18 ALTERNATIVE METHODOLOGY. IF SUCH ALTERNATE METHODOLOGY IS
19 EMPLOYED, THE ELECTRIC UTILITY SHALL FULLY DESCRIBE THE DATA AND
20 OTHER COMPONENTS OF THE METHODOLOGY AND SHALL SPECIFY THE
21 REASONS WHY THE APPROACH IS CONSIDERED MORE ACCURATE THAN THAT
22 ESTABLISHED BY THE COMMISSION.
23 § 1205. COMMENTS AND EVALUATION OF REPORTS.
24 FOR A PERIOD OF 30 DAYS AFTER THE RECEIPT OF THE REPORTS
25 REQUIRED UNDER SECTION 1203 (RELATING TO REPORTS OF FORECASTS
26 AND ASSESSMENTS OF LOADS AND RESOURCES), THE COMMISSION SHALL
27 RECEIVE THE COMMENTS OF ANY PERSON ON THE REPORTS AND, WITHIN AN
28 ADDITIONAL 30 DAYS, SHALL MAKE PUBLIC ITS INDEPENDENT EVALUATION
29 AND ANALYSIS OF THE REPORTS.
30 § 1206. INAPPLICABILITY OF CHAPTER TO CERTAIN FACILITIES.
19810H1191B3183 - 16 -
1 THIS CHAPTER DOES APPLY TO ANY MAJOR GENERATING FACILITY
2 ACTUALLY IN OPERATION UPON THE EFFECTIVE DATE OF THIS CHAPTER.
3 ANY FACILITY UNDER WHICH CONSTRUCTION WHICH IS NOT SUBSTANTIALLY
4 COMPLETED AS OF THE EFFECTIVE DATE OF THE CHAPTER SHALL NOT BE
5 CONTINUED WITHOUT ISSUANCE OF A CERTIFICATE.
6 § 1207. CERTIFICATE PREREQUISITE TO CERTIFICATE OF PUBLIC
7 CONVENIENCE.
8 AFTER THE EFFECTIVE DATE OF THIS CHAPTER, THE COMMISSION
9 SHALL NOT ISSUE A NEW CERTIFICATE OF PUBLIC CONVENIENCE NOR
10 RESTORE ANY REVOKED CERTIFICATE OF PUBLIC CONVENIENCE UNLESS THE
11 UTILITY HAS ALSO OBTAINED A CERTIFICATE OF NEED AND RELIABILITY
12 FROM THE COMMISSION.
13 SECTION 7. SECTIONS 1307(A) AND 1311 OF TITLE 66 ARE AMENDED
14 TO READ:
15 § 1307. SLIDING SCALE OF RATES; ADJUSTMENTS.
16 (A) GENERAL RULE.--ANY PUBLIC UTILITY, EXCEPT A COMMON
17 CARRIER, MAY ESTABLISH A SLIDING SCALE OF RATES OR SUCH OTHER
18 METHOD FOR THE AUTOMATIC ADJUSTMENT OF THE RATES OF THE PUBLIC
19 UTILITY AS SHALL PROVIDE A JUST AND REASONABLE RETURN ON THE
20 [FAIR VALUE OF THE PROPERTY USED AND USEFUL IN THE PUBLIC
21 SERVICE,] RATE BASE OF SUCH PUBLIC UTILITY, TO BE DETERMINED
22 UPON SUCH EQUITABLE OR REASONABLE BASIS AS SHALL PROVIDE SUCH
23 FAIR RETURN. A TARIFF SHOWING THE SCALE OF RATES UNDER SUCH
24 ARRANGEMENT SHALL FIRST BE FILED WITH THE COMMISSION, AND SUCH
25 TARIFF, AND EACH RATE SET OUT THEREIN, APPROVED BY IT. THE COST
26 OF FUEL OR ENERGY USED OR PURCHASED BY AN ELECTRIC UTILITY WHOSE
27 YEARLY REVENUES EXCEED $2,500,000 SHALL NOT BE SUBJECT TO A
28 SLIDING SCALE OF RATES OR TO AUTOMATIC ADJUSTMENT OF RATES BUT
29 SHALL BE INCLUDED IN THE BASE RATE SCHEDULES UNDER THE
30 PROCEDURES PROVIDED IN THIS ACT FOR THE FILING OF BASE RATE
19810H1191B3183 - 17 -
1 INCREASES. THE INCLUSION BY AN ELECTRIC UTILITY OF SUCH FUEL AND
2 ENERGY COSTS IN THE BASE RATE SCHEDULES SHALL BE EFFECTUATED BY
3 THE CONVERSION OF SUCH FUEL OR ENERGY COSTS BY THE FILING OF
4 REVISED BASE RATE SCHEDULES INCORPORATING AT A FLAT RATE THE PER
5 KILOWATT-HOUR CHARGE, ON AN ANNUAL BASIS, THAT WILL PROVIDE
6 REVENUES EQUIVALENT TO THOSE PROVIDED BY THE AUTOMATIC
7 ADJUSTMENT OF RATES UNDER THIS SECTION. EACH ELECTRIC UTILITY
8 SEEKING TO INCORPORATE INTO THE REVISED BASE RATE SCHEDULES ANY
9 ACCUMULATED FUEL AND ENERGY COSTS WHICH WERE UNRECOVERED BY THE
10 AUTOMATIC ADJUSTMENT OF RATES AT THE TIME OF CONVERSION SHALL
11 AMORTIZE THESE COSTS OVER A PERIOD OF AT LEAST FIVE YEARS. THE
12 COMMISSION MAY REVOKE ITS APPROVAL AT ANY TIME AND FIX OTHER
13 RATES FOR ANY SUCH PUBLIC UTILITY IF, AFTER NOTICE AND HEARING,
14 THE COMMISSION FINDS THE EXISTING RATES UNJUST OR UNREASONABLE.
15 * * *
16 § 1311. VALUATION OF PROPERTY OF AND RETURN ON THE PROPERTY OF
17 A PUBLIC UTILITY.
18 (A) VALUATION GENERALLY.--THE COMMISSION MAY, AFTER
19 REASONABLE NOTICE AND HEARING, ASCERTAIN AND FIX THE [FAIR]
20 VALUE OF THE WHOLE OR ANY PART OF THE PROPERTY OF ANY PUBLIC
21 UTILITY, INSOFAR AS THE SAME IS MATERIAL TO THE EXERCISE OF THE
22 JURISDICTION OF THE COMMISSION, AND MAY MAKE REVALUATIONS FROM
23 TIME TO TIME [AND ASCERTAIN THE FAIR VALUE] IN THE VALUE OF THE
24 RATE BASE OF A PUBLIC UTILITY ON ACCOUNT OF ALL NEW
25 CONSTRUCTION, EXTENSIONS, [AND] ADDITIONS AND RETIREMENTS TO THE
26 PROPERTY OF ANY PUBLIC UTILITY.
27 (B) METHOD OF VALUATION.--IN DETERMINING THE VALUE OF THE
28 RATE BASE OF A PUBLIC UTILITY, THE COMMISSION SHALL ASCERTAIN
29 AND FIX THE ORIGINAL COST OF THE PROPERTY OF THE PUBLIC UTILITY
30 WHEN FIRST DEVOTED TO THE PUBLIC SERVICE LESS THE APPLICABLE
19810H1191B3183 - 18 -
1 ACCRUED DEPRECIATION.
2 (C) SEGREGATION OF PROPERTY.--WHEN ANY PUBLIC UTILITY
3 FURNISHES MORE THAN ONE OF THE DIFFERENT TYPES OF UTILITY
4 SERVICE, THE COMMISSION SHALL SEGREGATE THE PROPERTY USED AND
5 USEFUL IN FURNISHING EACH TYPE OF SUCH SERVICE, AND SHALL NOT
6 CONSIDER THE PROPERTY OF SUCH PUBLIC UTILITY AS A UNIT IN
7 DETERMINING THE VALUE OF THE [PROPERTY] RATE BASE OF SUCH PUBLIC
8 UTILITY FOR THE PURPOSE OF FIXING RATES.
9 (D) COMMON CARRIERS.--IN FIXING ANY RATE OF A PUBLIC UTILITY
10 ENGAGED EXCLUSIVELY AS A COMMON CARRIER BY MOTOR VEHICLE, THE
11 COMMISSION MAY, IN LIEU OF OTHER STANDARDS ESTABLISHED BY LAW,
12 FIX THE FAIR RETURN BY RELATING THE FAIR AND REASONABLE
13 OPERATING EXPENSES, DEPRECIATION, TAXES AND OTHER COSTS OF
14 FURNISHING SERVICE TO OPERATING REVENUES.
15 SECTION 8. TITLE 66 IS AMENDED BY ADDING A SECTION TO READ:
16 § 1315. RATES TO BE ADJUSTED FOR EXTRAORDINARY OUTAGES OF
17 ELECTRIC UTILITY FACILITIES.
18 (A) DEFINITION.--AS USED IN THIS SECTION THE TERM
19 "EXTRAORDINARY OUTAGE" MEANS AN EVENT OR OCCURRENCE WHICH
20 RENDERS INOPERATIVE FOR A PERIOD OF AT LEAST 90 DAYS ANY
21 ELECTRICAL GENERATING OR TRANSMITTING FACILITY.
22 (B) COMMISSION POWERS.--IN THE EVENT OF AN EXTRAORDINARY
23 OUTAGE, THE COMMISSION SHALL, IMMEDIATELY ON THE NINETIETH DAY
24 OF THE OUTAGE, REMOVE SUCH FACILITY OR FACILITIES FROM THE RATE
25 BASE CALCULATIONS OF THE ELECTRIC UTILITY THAT OPERATES SUCH
26 FACILITY.
27 (C) OBJECTION BY UTILITY.--IF A UTILITY OBJECTS TO THE
28 PROCEDURES OF SUBSECTION (B), IT MAY PETITION THE COMMISSION FOR
29 A HEARING ON THE REMOVAL MATTER. IN GRANTING THE REQUESTED
30 HEARING, THE COMMISSION SHALL NOT STAY OR SUSPEND THE REMOVAL OF
19810H1191B3183 - 19 -
1 THE FACILITY FROM THE UTILITY'S RATE BASE. IN ANY SUCH HEARING,
2 THE BURDEN OF PROOF SHALL REST UPON THE UTILITY TO REBUT THE
3 PRESUMPTION THAT THE UTILITY WAS OPERATING THE FACILITY OR
4 FACILITIES IN AN IMPRUDENT AND UNREASONABLE MANNER. FAILURE OF
5 THE UTILITY TO REBUT THE PRESUMPTION OF IMPRUDENT AND
6 UNREASONABLE MANAGEMENT POLICIES SHALL RESULT IN THE
7 CONTINUATION OF THE REMOVAL ORDER UNTIL SUCH TIME AS THE
8 FACILITY OR FACILITIES HAVE BEEN RETURNED TO FULL OPERATING
9 CAPACITY.
10 (D) REGULATIONS FOR SECTION.--THE COMMISSION SHALL, WITHIN
11 90 DAYS OF THE EFFECTIVE DATE OF THIS SECTION, PROMULGATE RULES
12 AND REGULATIONS TO IMPLEMENT THE POWERS GRANTED BY THIS SECTION.
13 SUCH REGULATIONS SHALL INCLUDE THE REQUIREMENT THAT EACH
14 ELECTRIC UTILITY NOTIFY THE COMMISSION WHEN A FACILITY OR
15 FACILITIES HAVE BEEN INOPERATIVE FOR A PERIOD OF SEVEN DAYS AND
16 WHETHER, WITH RESPECT TO SUCH FACILITY OR FACILITIES, THE
17 UTILITY HAS REASON TO BELIEVE THAT SUCH INOPERATIVE PERIOD SHALL
18 CONTINUE FOR AT LEAST 30 DAYS.
19 SECTION 9. SECTION 1503 OF TITLE 66 IS AMENDED BY ADDING A
20 SUBSECTION TO READ:
21 § 1503. DISCONTINUANCE OF SERVICE.
22 * * *
23 (A.1) PROHIBITION ON RESIDENTIAL DISCONTINUANCE.--NO PUBLIC
24 UTILITY AS DEFINED IN PARAGRAPH (1)(I) OF THE DEFINITION OF
25 "PUBLIC UTILITY" IN SECTION 102 (RELATING TO DEFINITIONS), SHALL
26 DISCONTINUE AND THE COMMISSION SHALL NOT AUTHORIZE SUCH A PUBLIC
27 UTILITY TO DISCONTINUE, EXCEPT UPON REQUEST OF THE CUSTOMER, FOR
28 NONPAYMENT OF CHARGES OR FOR ANY OTHER REASON, THE RENDERING OF
29 RESIDENTIAL SERVICE BETWEEN DECEMBER 1 AND APRIL 30. FOR THE
30 PURPOSES OF THIS SUBSECTION, THE TERM "RESIDENTIAL SERVICE"
19810H1191B3183 - 20 -
1 SHALL MEAN SERVICE SUPPLIED TO A DWELLING, INCLUDING SERVICE TO
2 A RESIDENTIAL BUILDING AS DEFINED IN SECTION 1521 (RELATING TO
3 DEFINITIONS) AND INCLUDING SERVICE PROVIDED TO A COMMERCIAL
4 ESTABLISHMENT IF CONCURRENT SERVICE IS PROVIDED TO A RESIDENTIAL
5 PREMISES ATTACHED THERETO. SERVICE PROVIDED TO A HOTEL OR MOTEL
6 SHALL NOT BE CONSIDERED RESIDENTIAL SERVICE. NOTHING CONTAINED
7 HEREIN SHALL BE DEEMED TO PROHIBIT SUCH A PUBLIC UTILITY FROM
8 COMPLYING WITH ALL NOTICE AND PROCEDURAL PROVISIONS OF THIS
9 CHAPTER REQUIRED PRIOR TO DISCONTINUANCE OF SERVICE.
10 * * *
11 SECTION 10. SECTION 1509 OF TITLE 66 IS AMENDED TO READ:
12 § 1509. BILLING PROCEDURES.
13 ALL BILLS RENDERED BY A PUBLIC UTILITY AS DEFINED IN
14 PARAGRAPH (1)(I), (II), (VI) OR (VII) OF THE DEFINITION OF
15 "PUBLIC UTILITY" IN SECTION 102 (RELATING TO DEFINITIONS) TO ITS
16 SERVICE CUSTOMERS, EXCEPT BILLS FOR INSTALLATION CHARGES, SHALL
17 ALLOW AT LEAST 15 DAYS FOR NONRESIDENTIAL CUSTOMERS AND 20 DAYS
18 FOR RESIDENTIAL CUSTOMERS FROM THE DATE OF TRANSMITTAL OF THE
19 BILL FOR PAYMENT WITHOUT INCURRING ANY LATE PAYMENT PENALTY
20 CHARGES THEREFOR. ALL CUSTOMERS SHALL BE PERMITTED TO RECEIVE
21 BILLS MONTHLY AND SHALL BE NOTIFIED OF THEIR RIGHT THERETO. ALL
22 BILLS SHALL BE ITEMIZED TO SEPARATELY SHOW AMOUNTS FOR BASIC
23 SERVICE, RATE STRUCTURE FOR RESIDENTIAL CUSTOMERS, SCHEDULE OF
24 RATES PER KILOWATT HOUR FOR ELECTRIC CUSTOMERS WHETHER IT IS A
25 FLAT CHARGE OR NOT FOR ELECTRIC CUSTOMERS, FEDERAL EXCISE TAXES,
26 APPLICABLE STATE SALES AND GROSS RECEIPTS TAXES, TO THE EXTENT
27 PRACTICABLE, FUEL ADJUSTMENT CHARGE, IF ANY, STATE TAX
28 ADJUSTMENT CHARGE OR SUCH OTHER SIMILAR COMPONENTS OF THE TOTAL
29 BILL AS THE COMMISSION MAY ORDER. ANY ELECTRIC OR GAS PUBLIC
30 UTILITY BILLING CUSTOMERS ON A BIMONTHLY OR QUARTERLY BASIS AND
19810H1191B3183 - 21 -
1 RENDERING INTERIM STATEMENTS OR BILLS EACH MONTH SHALL INCLUDE
2 IN SUCH INTERIM STATEMENT OR BILL AN AMOUNT FOR THE FUEL
3 ADJUSTMENT CHARGE BASED UPON ONE-HALF OF THE TOTAL EXPECTED
4 BIMONTHLY KILOWATT HOUR OR CUBIC FOOT BILLING OR ONE-THIRD OF
5 THE TOTAL EXPECTED QUARTERLY BILLING AND USING THE FUEL
6 ADJUSTMENT CHARGE RATE APPLICABLE IN THE MONTH OF THE INTERIM
7 STATEMENT OR BILL. AT THE TIME OF PREPARING THE BIMONTHLY OR
8 QUARTERLY BILL, AN APPROPRIATE ADJUSTMENT SHALL BE MADE IN THE
9 TOTAL FUEL ADJUSTMENT CHARGE BILLING FOR THE PERIOD. ANY PUBLIC
10 UTILITY RENDERING BILLS ON A BIMONTHLY BASIS OR QUARTERLY BASIS
11 SHALL CALCULATE THE FUEL ADJUSTMENT CHARGE PER KILOWATT HOUR OR
12 CUBIC FOOT FOR THE ENTIRE PERIOD AS THE WEIGHTED AVERAGE OF THE
13 TWO MONTHLY RATES OR THE THREE MONTHLY RATES WHICHEVER IS
14 APPLICABLE.
15 SECTION 11. TITLE 66 IS AMENDED BY ADDING SECTIONS TO READ:
16 § 1510. METERING OF ELECTRICITY SUPPLIED TO PLACES OF WORSHIP.
17 A PUBLIC UTILITY SUPPLYING ELECTRICITY TO A CHURCH OR OTHER
18 ACTUAL PLACE OF WORSHIP SHALL MEASURE THE CONSUMPTION OF
19 ELECTRICITY SUPPLIED THERETO BY THE SAME METHOD THAT ELECTRICITY
20 TO RESIDENTIAL CUSTOMERS IS MEASURED.
21 § 1511. METERING OF ELECTRICITY SUPPLIED TO VOLUNTEER FIRE
22 COMPANIES.
23 A PUBLIC UTILITY SUPPLYING ELECTRICITY TO A VOLUNTEER FIRE
24 COMPANY SHALL MEASURE THE CONSUMPTION OF ELECTRICITY SUPPLIED
25 THERETO BY THE SAME METHOD THAT ELECTRICITY TO RESIDENTIAL
26 CUSTOMERS IS MEASURED.
27 § 1512. SERVICE INFORMATION.
28 ANY PUBLIC UTILITY SHALL BE REQUIRED TO ORALLY NOTIFY THEIR
29 CUSTOMERS OF THE TOTAL ESTIMATED COST OF PERFORMING ANY
30 REQUESTED SERVICE WHEN THE COST OF THE SERVICE IS OVER $25 AND
19810H1191B3183 - 22 -
1 IF REQUESTED PRIOR TO THE FURNISHING OF THE SERVICE, PRESENT TO
2 THE CUSTOMER IN WRITING COST FREE IF NO DETAILED BREAKDOWN OF
3 THE SERVICE COST IS FURNISHED IN THE PUBLIC UTILITY BILL, A
4 DETAILED BREAKDOWN OF THE TOTAL SERVICE COSTS TO BE PAID BY THE
5 CUSTOMER.
6 § 1513. METERING OF ELECTRICITY SUPPLIED TO FIRE COMPANIES.
7 A PUBLIC UTILITY SUPPLYING ELECTRICITY TO A FIRE COMPANY
8 SHALL MEASURE THE CONSUMPTION OF ELECTRICITY SUPPLIED THERETO BY
9 THE SAME METHOD THAT ELECTRICITY TO RESIDENTIAL CUSTOMERS IS
10 MEASURED.
11 Section 1 12. The definitions of "landlord ratepayer," <--
12 "residential building" and "tenant" in section 1521 of Title 66, <--
13 act of November 25, 1970 (P.L.707, No.230), known as the
14 Pennsylvania Consolidated Statutes, are amended and the section
15 is amended by adding a definition to read:
16 § 1521. Definitions.
17 The following words and phrases when used in this subchapter
18 shall have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 "Billing month." A period of time not to exceed 35 days.
21 "Landlord ratepayer." One or more individuals or an
22 organization listed on a gas, electric, steam or water utility's
23 records as the party responsible for payment of the gas,
24 electric, steam or water service provided to one or more
25 residential units of a residential building or mobile home park
26 of which building or mobile home park the party is not the sole
27 occupant. In the event the landlord ratepayer is not party to a
28 lease between himself or itself and the tenant, the term shall
29 also include the individual or organization to whom the tenant
30 makes rental payments pursuant to an oral or written lease.
19810H1191B3183 - 23 -
1 * * *
2 "Residential building." A building containing one or more
3 dwelling units occupied by one or more tenants. The term does
4 not include nursing homes, hotels, [and] motels or any dwelling
5 wherein the landlord ratepayer is resident and shares common
6 heating facilities with no more than three THREE OR LESS tenants <--
7 and shares common access to all parts of such dwelling unit.
8 "Tenant." Any person or group of persons [whose]
9 contractually obligated to make rental payments to the landlord
10 ratepayer pursuant to an oral or written lease of a dwelling
11 unit in a residential building or mobile home park who is
12 provided gas, electricity, steam or water [pursuant to a rental
13 arrangement for the dwelling unit, mobile home or plot of ground
14 within a mobile home park but] as an included service under such
15 lease and who is not the ratepayer of the utility which supplied
16 the gas, electricity, steam or water.
17 Section 2 13. Sections 1522(a), 1523(a), 1524, 1525(b), <--
18 1526(a), 1527(b) and (c), 1528, 1529.1, 1532 and 1533 of Title <--
19 66, are amended or added to read:
20 § 1522. Applicability of subchapter.
21 (a) General rule.--This subchapter applies to public
22 utilities as defined in paragraph (1)(i) and (ii) of the
23 definition of "public utility" in section 102 (relating to
24 definitions) and to public utility service rendered by those
25 public utilities, if the premises served constitute "residential
26 buildings" as defined in section 1521 (relating to definitions).
27 * * *
28 § 1523. Notices before service to landlord discontinued.
29 (a) Nonpayment of charges.--Except when required to prevent
30 or alleviate an emergency as defined by the commission or except
19810H1191B3183 - 24 -
1 in the case of danger to life or property, before any
2 discontinuance of service to a landlord ratepayer for nonpayment
3 of charges, a public utility shall:
4 (1) Notify the landlord ratepayer of the proposed
5 discontinuance in writing as prescribed in section 1525
6 (relating to delivery and contents of discontinuance notice
7 to landlord) at least 37 days before the date of
8 discontinuance of service.
9 (2) Notify the following agencies which serve the
10 community in which the affected premises are located, in
11 writing, [at the time of delivery of notice to the tenants of
12 the proposed discontinuance of service] at least 20 days
13 after the time of delivery of notice to the tenants of the
14 proposed discontinuance and at least ten days before
15 discontinuance of service:
16 (i) The Department of Licenses and Inspections of
17 any city of the first class.
18 (ii) The Department of Public Safety of any city of
19 the second class, second class A or third class.
20 (iii) The city or county Public Health Department
21 or, in the event that such a department does not exist,
22 the Department of Health office responsible for that
23 county.
24 (3) Notify each dwelling unit reasonably likely to be
25 occupied by an affected tenant of the proposed discontinuance
26 in writing as prescribed in section 1526 (relating to
27 delivery and contents of first discontinuance notice to
28 tenants) at least seven days after notice to the landlord
29 ratepayer pursuant to this section and at least 30 days
30 before the discontinuance of service. If within seven days of
19810H1191B3183 - 25 -
1 receipt of the notice to the landlord issued pursuant to this
2 section the landlord ratepayer files a complaint with the
3 commission disputing the right of the utility to discontinue
4 service, the notice shall not be rendered until the complaint
5 has been adjudicated by the commission, provided the landlord
6 ratepayer shall continue to pay the undisputed portion of
7 current bills when due pending the final decision on the
8 complaint.
9 * * *
10 § 1524. REQUEST TO LANDLORD TO IDENTIFY TENANTS. <--
11 (A) DUTY OF PUBLIC UTILITY AND LANDLORD.--AT LEAST 37 DAYS
12 BEFORE THE DATE OF DISCONTINUANCE OF SERVICE, IT SHALL BE THE
13 DUTY OF ANY PUBLIC UTILITY TO REQUEST FROM THE LANDLORD
14 RATEPAYER THE NAMES AND ADDRESSES OF THE AFFECTED TENANTS. UPON
15 RECEIVING SUCH A LAWFUL REQUEST FOR THE NAMES AND ADDRESSES OF
16 THE AFFECTED TENANTS PURSUANT TO THIS SUBCHAPTER, THE LANDLORD
17 RATEPAYER SHALL PROVIDE THE UTILITY WITH THE NAMES AND ADDRESSES
18 OF EVERY AFFECTED TENANT OF ANY RESIDENTIAL BUILDING OR MOBILE
19 HOME PARK FOR WHICH THE UTILITY IS PROPOSING TO DISCONTINUE
20 SERVICE UNLESS WITHIN SEVEN DAYS OF RECEIPT OF THE NOTICE THE
21 LANDLORD RATEPAYER PAYS THE AMOUNT DUE THE UTILITY OR MAKES AN
22 ARRANGEMENT WITH THE UTILITY TO PAY THE BALANCE.
23 (B) TIME FOR PROVIDING INFORMATION.--THE INFORMATION SHALL
24 BE PROVIDED BY THE LANDLORD RATEPAYER:
25 (1) WITHIN SEVEN DAYS OF RECEIPT OF A REQUEST FROM A
26 PUBLIC UTILITY FOR TENANTS NAMES PURSUANT TO SUBSECTION (A);
27 [(1)] (2) WITHIN SEVEN DAYS OF RECEIPT OF THE NOTICE TO
28 THE LANDLORD RATEPAYER REQUIRED BY SECTION 1523 (RELATING TO
29 NOTICES BEFORE SERVICE TO LANDLORD DISCONTINUED); [OR]
30 [(2)] (3) WITHIN THREE DAYS OF ANY ADJUDICATION BY THE
19810H1191B3183 - 26 -
1 COMMISSION THAT THE LANDLORD RATEPAYER MUST PROVIDE THE
2 REQUESTED INFORMATION IF THE LANDLORD FILES A COMPLAINT WITH
3 THE COMMISSION WITHIN SEVEN DAYS OF RECEIPT OF THE NOTICE TO
4 THE LANDLORD DISPUTING THE RIGHT OF THE UTILITY TO
5 DISCONTINUE SERVICE; OR
6 (4) UPON SUCH TERMS AS ORDERED BY A COURT IN ACTION
7 BROUGHT BY THE UTILITY PURSUANT TO SECTION 1532(B) (RELATING
8 TO PENALTIES).
9 (C) DUTY OF PUBLIC UTILITY.--IT SHALL BE THE DUTY OF ANY
10 PUBLIC UTILITY TO PURSUE ANY APPROPRIATE LEGAL OR EQUITABLE
11 REMEDY IT HAS IN ORDER TO OBTAIN FROM THE LANDLORD RATEPAYER THE
12 NAMES AND ADDRESSES OF ALL AFFECTED TENANTS OF A RESIDENTIAL
13 BUILDING OR MOBILE HOME PARK FOR WHICH THE UTILITY IS PROPOSING
14 DISCONTINUANCE OF SERVICE TO THE LANDLORD RATEPAYER. THE
15 COMMISSION MAY ORDER THE PUBLIC UTILITY TO OBTAIN THE
16 INFORMATION FROM THE LANDLORD RATEPAYER.
17 § 1525. Delivery and contents of discontinuance notice to
18 landlord.
19 * * *
20 (b) Service of notice.--Any one of the following procedures
21 shall constitute effective notice to the landlord under section
22 1523:
23 (1) Notice by certified mail if the utility receives a
24 return receipt signed by the landlord ratepayer or his agent.
25 (2) Notice by personal service of the landlord ratepayer
26 or his agent.
27 (3) [After unsuccessful attempts at personal delivery on
28 two separate days, notice] Notice by first class mail and
29 conspicuously posting at the landlord ratepayer's principal
30 place of business or the business address which the landlord
19810H1191B3183 - 27 -
1 provided the utility as his address for receiving
2 communications.
3 § 1526. Delivery and contents of first discontinuance notice
4 to tenants.
5 (a) General rule.--The notice required to be given to a
6 tenant pursuant to section 1523 (relating to notices before
7 service to landlord discontinued) shall be [mailed or otherwise
8 delivered to the address of each affected tenant] sent by first <--
9 class mail to each affected tenant by name at his individual
10 dwelling unit and posted in common areas and shall contain the
11 following information:] SENT BY FIRST CLASS MAIL TO EACH <--
12 AFFECTED TENANT BY NAME AT HIS INDIVIDUAL DWELLING UNIT, BY UNIT
13 NUMBER OR UNIT DESIGNATION, AND POSTED IN COMMON AREAS. WHENEVER
14 THE UTILITY IS UNABLE TO OBTAIN THE NAMES AND ADDRESSES OF THE
15 AFFECTED TENANTS PURSUANT TO SECTION 1524 (RELATING TO REQUEST
16 TO LANDLORD TO IDENTIFY TENANTS), THE NOTICES SHALL BE SENT BY
17 FIRST CLASS MAIL ADDRESSED TO "RESIDENT" AT EACH INDIVIDUAL
18 DWELLING UNIT, BY UNIT NUMBER OR UNIT DESIGNATION, OR OTHERWISE
19 HAND DELIVERED TO INDIVIDUAL DWELLING UNITS BY UNIT NUMBER OR
20 UNIT DESIGNATION AND POSTED IN COMMON AREAS. FOR PURPOSES OF
21 THIS SECTION, THE TERM "UNIT DESIGNATION" SHALL MEAN THE
22 GEOGRAPHIC LOCATION OF A DWELLING UNIT BY FLOOR AND FLOOR AREA.
23 ALL NOTICES SHALL CONTAIN THE FOLLOWING INFORMATION:
24 (1) The date on which the notice is rendered.
25 (2) The date on or after which service will be
26 discontinued.
27 [(3) The circumstances under which service to the
28 affected tenant may be continued specifically referring to
29 the conditions set out in section 1527 (relating to right of
30 tenants to continued service).]
19810H1191B3183 - 28 -
1 (4) [The] On each account, the bill for the [30-day]
2 billing month period preceding the notice to the tenants
3 except in the case of water and sewer service where the
4 billing period is bimonthly or quarterly, the utility shall
5 provide an estimate of costs for the previous billing month.
6 (5) [The statutory rights of a tenant to:
7 (i) Deduct the amount of any direct payment to the
8 utility from any rent payments then or thereafter due.
9 (ii) Protection against any retaliation by the
10 landlord for exercising such statutory right.
11 (iii) Recover money damages from the landlord for
12 any such retaliation.] The following statement of the
13 tenant's rights, THE WORDS AND PHRASES OF WHICH APPEARING <--
14 BELOW ALL IN CAPITAL LETTERS SHALL BE PRINTED IN 12-POINT
15 BOLDFACE TYPE WITH THE FIRST LETTER PRINTED IN UPPER CASE
16 AND THE LETTERS THAT FOLLOW IN LOWER CASE AND THE WORDS
17 AND PHRASES NOT APPEARING ALL IN CAPITAL LETTERS SHALL BE
18 PRINTED IN 10-POINT TYPE WITH ANY LETTER IN UPPER CASE TO
19 REMAIN SO AND THE REST IN LOWER CASE:
20 NOTICE <--
21 YOUR UTILITIES MAY BE SHUT OFF.
22 PLEASE READ THIS NOTICE ABOUT YOUR RIGHTS.
23 Your landlord hasn't paid his utility bill for your
24 building. Your utilities will be shut off in 30 days
25 unless you do something.
26 You have the following rights:
27 1. You can join with the other tenants to pay
28 the utility bill for the last billing month. Or you
29 can pay the total bill yourself. If you pay either
30 way, you do not have to pay a deposit or get credit
19810H1191B3183 - 29 -
1 granted in your name. You will not have to pay your
2 landlords debts or the debts of prior tenants. If
3 your building has one meter for many tenants, the
4 utility bill is for all the tenants, and must be paid
5 in full. The utility company will tell your landlord
6 how much you paid for utilities.
7 2. If you only pay part of the last monthly
8 billing, your utilities will be shut off and the
9 utility company will return your money.
10 3. You may deduct your payment to the utility
11 company from your rent due now or from future rent.
12 4. Your landlord cannot punish you if you pay
13 the utility bill. Your landlord cannot raise your
14 rent, cannot evict you, and cannot hurt you in any
15 other way.
16 5. You can get your utility service billed in
17 only your name if your unit has its own meter. Or,
18 you can get your own service if a meter can be put in
19 with only a few changes in pipes, wires, and land.
20 Please call the utility company if you want a new
21 meter. They will tell you how much it will cost.
22 6. IF YOU HAVE ANY QUESTIONS, PLEASE TELEPHONE
23 YOUR UTILITY COMPANY OR THE PUBLIC UTILITY COMMISSION
24 (PUC) AT THESE NUMBERS:______________________
25 IMPORTANT NOTICE TO TENANTS <--
26 WARNING: YOUR ________________________________
27 (UTILITY COMPANY SHALL INSERT
28 _____________________________________
29 COMPANY NAME AND TYPE OF SERVICE ABOVE)
30 MAY BE SHUT OFF ON OR AFTER _________
19810H1191B3183 - 30 -
1 _______________BECAUSE YOUR LANDLORD
2 HAS NOT PAID THE UTILITY BILL FOR YOUR
3 BUILDING.
4 TO STOP THE SHUT-OFF OF YOUR UTILITY SERVICE,
5 YOU MUST DO ONE OF THE FOLLOWING THINGS:
6 1. YOU CAN JOIN WITH THE OTHER TENANTS TO PAY THE
7 UTILITY BILL FOR THE LAST BILLING MONTH. OR YOU CAN PAY THE
8 TOTAL BILL YOURSELF. YOU DO NOT HAVE TO PAY A DEPOSIT OR GET
9 CREDIT IN YOUR NAME. YOU DO NOT HAVE TO PAY ANY OTHER PART OF
10 YOUR LANDLORD'S BILLS OR THE BILLS OF PRIOR TENANTS. IF YOUR
11 BUILDING HAS ONE METER FOR MANY TENANTS, THE UTILITY BILL IS
12 FOR ALL THE TENANTS AND MUST BE PAID IN FULL BY SOME OR ALL
13 OF THE TENANTS. THE UTILITY COMPANY WILL TELL YOUR LANDLORD
14 HOW MUCH EACH TENANT PAID FOR UTILITIES. THE BILL WHICH MUST
15 BE PAID TO CONTINUE SERVICE IS $ ;
16 OR
17 2. YOU CAN GET UTILITY SERVICE BILLED IN ONLY YOUR NAME
18 IF YOUR DWELLING HAS ITS OWN METER. OR YOU CAN GET YOUR OWN
19 SERVICE IF A METER CAN BE PUT IN WITHOUT MAJOR CHANGES IN
20 PIPES, WIRES AND LAND. PLEASE CALL THE UTILITY COMPANY IF YOU
21 WANT MORE INFORMATION ABOUT GETTING UTILITY SERVICE BILLED IN
22 YOUR NAME.
23 YOU HAVE OTHER IMPORTANT RIGHTS UNDER STATE LAW:
24 1. YOU CAN USE ALL OR PART OF YOUR RENT MONEY TO PAY
25 THIS MONTH'S UTILITY BILL. WHATEVER IS LEFT OVER YOU CAN PAY
26 TO YOUR LANDLORD FOR RENT. YOU WILL NOT OWE YOUR LANDLORD ANY
27 MORE MONEY FOR THIS MONTH'S RENT. IF YOUR LANDLORD DOES NOT
28 PAY NEXT MONTH'S UTILITY BILL, YOU CAN AGAIN USE ALL OR PART
29 OF YOUR RENT MONEY TO PAY IT.
30 2. YOUR LANDLORD CANNOT RAISE YOUR RENT, CANNOT EVICT
19810H1191B3183 - 31 -
1 YOU, AND CANNOT PUNISH YOU IN ANY OTHER WAY IF YOU PAY THE
2 UTILITY BILL AND SUBTRACT IT FROM YOUR RENT. IF THE LANDLORD
3 DOES ANY OF THESE THINGS, YOU CAN SUE HIM OR HER FOR MONEY
4 DAMAGES.
5 3. IF YOUR LANDLORD PAYS THE BILL BEFORE YOU DO, THE
6 UTILITY COMPANY WILL TELL YOU THAT THE SHUT-OFF IS CANCELLED.
7 4. IF TENANTS PAY ONLY PART OF THE LAST MONTHLY BILL,
8 AND IF SERVICE IS THEN SHUT OFF, THE UTILITY WILL RETURN TO
9 EACH TENANT THE MONEY PAID FOR THAT BILL.
10 5. IF TENANTS PAY THE LAST MONTHLY BILL TO STOP THE
11 SHUT-OFF, THE UTILITY COMPANY WILL CONTINUE TO SEND YOU A
12 MONTHLY BILL. YOU MUST PAY THIS BILL AS EXPLAINED ABOVE TO
13 STOP THE SHUT-OFF.
14 DO YOU HAVE ANY QUESTIONS?
15 IF YOU HAVE ANY QUESTIONS ABOUT YOUR UTILITY
16 SERVICE, PLEASE TELEPHONE THE UTILITY COMPANY
17 AT .
18 IF AFTER TALKING ABOUT YOUR PROBLEM WITH THE
19 UTILITY, YOU ARE NOT SATISFIED, THEN CALL THE
20 PUBLIC UTILITY COMMISSION AT THEIR TOLL FREE
21 NUMBER WHICH IS (UTILITY TO
22 FILL IN TOLL FREE NUMBER); OR WRITE SERVICE
23 TERMINATION MEDIATION UNIT, BUREAU OF CONSUMER
24 SERVICES, PUBLIC UTILITY COMMISSION, P. O. BOX
25 3265, HARRISBURG, PA. 17120. YOU SHOULD CALL
26 OR WRITE BEFORE THE SHUT-OFF DATE. IF YOU
27 WRITE, YOUR LETTER MUST BE RECEIVED BEFORE
28 THE SHUT-OFF DATE.
29 (6) That tenants may make payment to the utility on
30 account of nonpayment of charges by the landlord ratepayer
19810H1191B3183 - 32 -
1 only by check or money order drawn by the tenant to the order
2 of the utility.
3 [(7) A telephone number at the utility and at the
4 commission which a tenant may call for an explanation of his
5 rights.]
6 * * *
7 § 1527. Right of tenants to continued service.
8 * * *
9 (b) Payment of charges by tenants.--A public utility shall
10 not discontinue service or shall promptly resume service
11 previously discontinued if it receives from the tenants an
12 amount equal to the bill for the affected account of the
13 landlord ratepayer for the [30-day] billing month period
14 preceding the notice to the tenants. Thereafter, the utility
15 shall notify each tenant of the total amount of the bill for the
16 second and each succeeding billing month period [of 30 days or
17 less] and, if the tenants fail to make payment of any bill
18 within 30 days of the delivery of the notice to the tenants, the
19 utility may commence discontinuance [procedures] of service
20 except that no discontinuance may occur until 30 days after each
21 tenant has [received written] been furnished notice of the
22 proposed discontinuance as prescribed in section 1528 (relating
23 to delivery and contents of subsequent discontinuance notice to
24 tenants). All payments of charges by tenants to a utility on
25 account of nonpayment by the landlord ratepayer shall be made by
26 a check or money order drawn by the tenant to the order of the
27 utility.
28 (c) Disposition of payment by utility.--Upon receiving any
29 payment, the utility shall notify the landlord ratepayer who is
30 liable for the utility service of the amount or amounts paid by
19810H1191B3183 - 33 -
1 any tenant and the amount or amounts credited to the landlord's
2 bill for each tenant pursuant to this section. [In the event
3 that the tenants fail to satisfy the requirements of this
4 section to maintain or restore service and service to the
5 affected dwelling units is discontinued, the utility shall
6 refund to each tenant the amount paid by the tenant toward the
7 bill which the tenants failed to pay either upon the request of
8 the tenant or after holding the tenant's payment during 60
9 consecutive days of discontinued service, whichever occurs
10 first.] Tenants requesting continued utility service under the
11 provisions of this section, except those individually
12 subscribing for service pursuant to subsection (d), shall not be
13 considered utility customers, but shall be considered to be
14 acting on behalf of the landlord ratepayer, who shall remain
15 liable to the utility for service provided after notice to
16 tenants. In the event the tenants fail to satisfy the
17 requirements of subsection (b) with regard to the first billing
18 month period preceding notice to the tenant, the utility shall
19 refund any such moneys received from a tenant to the tenant. Any
20 payments made by the tenants shall be applied first against the
21 bill for the billing month preceding notice to the tenants and
22 then against bills for service rendered subsequent to such bill.
23 Upon discontinuance of service to the tenants for failure to pay
24 the utility's bill for service in full for any subsequent month,
25 the provisions of subsection (c.1) shall apply. <--
26 (c.1) Refunds for overpayment by tenant in final month.--A
27 utility shall refund to a tenant any overpayment made by the
28 tenant to the utility in the final month of service when the
29 tenant signs a form provided by the utility swearing or
30 affirming that all the following facts are true:
19810H1191B3183 - 34 -
1 (1) The tenant has not deducted the entire final payment
2 to the utility from any rental payment to the landlord.
3 (2) The entire final payment to the utility is not
4 offset by rent legally owing to the landlord at the time of
5 making the application for refund pursuant to this
6 subsection.
7 (3) The tenant has permanently departed the residential
8 building at the time of making the application. THE UTILITY <--
9 SHALL PROVIDE A REFUND APPLICATION FORM ON WHICH THE TENANT
10 SHALL PROVIDE HIS NAME AND FORWARDING ADDRESS. THE REFUND
11 APPLICATION FORM SHALL BE SENT BY FIRST CLASS MAIL OR
12 OTHERWISE HAND DELIVERED TO THE ADDRESS OF EACH AFFECTED
13 TENANT BY UNIT NUMBER OR UNIT DESIGNATION OR ANY FORWARDING
14 ADDRESS PROVIDED TO THE UTILITY BY THE TENANT PURSUANT TO
15 SECTION 1528 (RELATING TO DELIVERY AND CONTENTS OF SUBSEQUENT
16 DISCONTINUANCE NOTICE TO TENANTS), AND UPON RETURN OF THIS
17 FORM EXECUTED BY THE TENANT, THE UTILITY SHALL REFUND TO THE
18 TENANT ANY AMOUNTS PAID BY THE TENANT FOR THE MONTH IN WHICH
19 SERVICE IS TERMINATED.
20 * * *
21 § 1528. Delivery and contents of subsequent discontinuance
22 notice to tenants.
23 Subsequent notices required to be given to a tenant pursuant
24 to section 1527 (relating to right of tenants to continued
25 service) shall be [mailed or otherwise delivered to the address
26 of each affected tenant] sent by first class mail to each <--
27 affected tenant by name at his individual dwelling unit and
28 posted in common areas and shall contain the following
29 information:] SENT BY FIRST CLASS MAIL TO EACH AFFECTED TENANT <--
30 BY NAME AT HIS INDIVIDUAL DWELLING UNIT, BY UNIT NUMBER OR UNIT
19810H1191B3183 - 35 -
1 DESIGNATION, AND POSTED IN COMMON AREAS. WHENEVER THE UTILITY IS
2 UNABLE TO OBTAIN THE NAMES AND ADDRESSES OF THE AFFECTED TENANTS
3 PURSUANT TO SECTION 1524 (RELATING TO REQUEST TO LANDLORD TO
4 IDENTIFY TENANTS), THE NOTICES SHALL BE SENT BY FIRST CLASS MAIL
5 ADDRESSED TO "RESIDENT" AT EACH INDIVIDUAL DWELLING UNIT, BY
6 UNIT NUMBER OR UNIT DESIGNATION, OR OTHERWISE HAND DELIVERED TO
7 INDIVIDUAL DWELLING UNITS BY UNIT NUMBER OR UNIT DESIGNATION AND
8 POSTED IN COMMON AREAS. FOR PURPOSES OF THIS SECTION, THE TERM
9 "UNIT DESIGNATION" SHALL MEAN THE GEOGRAPHIC LOCATION OF A
10 DWELLING UNIT BY FLOOR AND FLOOR AREA. ALL NOTICES SHALL CONTAIN
11 THE FOLLOWING INFORMATION:
12 (1) The date on or after which service will be
13 discontinued.
14 (2) The amount due which shall include the arrearage on
15 any earlier bill due from tenants.
16 (3) A telephone number at the utility and at the
17 commission which a tenant may call for an explanation of his
18 rights.
19 (4) The right of a tenant to file a complaint with the
20 commission to enforce any legal right that he may have under
21 this part.
22 (5) The right of a tenant to apply for a refund where <--
23 appropriate UPON DISCONTINUANCE OF SERVICE, pursuant to <--
24 section 1527(c.1) (C) (relating to right of tenants to <--
25 continued service) AND THE RIGHT TO PROVIDE THE UTILITY WITH <--
26 A FORWARDING ADDRESS.
27 § 1529.1. DUTY OF OWNERS OF RENTAL PROPERTY.
28 IT SHALL BE THE DUTY OF EVERY OWNER OF A RESIDENTIAL BUILDING
29 OR MOBILEHOME PARK TO NOTIFY EACH PUBLIC UTILITY FROM WHOM SUCH
30 UTILITY SERVICE IS RECEIVED OF SUCH OWNERSHIP AND THE FACT THAT
19810H1191B3183 - 36 -
1 THE PREMISES SERVED ARE USED FOR RENTAL PURPOSES:
2 (1) UPON RECEIPT OF THE NOTICE PROVIDED IN THIS SECTION,
3 IF THE MOBILE HOME PARK OR RESIDENTIAL BUILDING CONTAINS ONE
4 OR MORE DWELLING UNITS NOT INDIVIDUALLY METERED OR IF IN THE
5 CASE OF INDIVIDUALLY METERED DWELLING UNITS, THE OWNER IS THE
6 RATEPAYER, AN AFFECTED PUBLIC UTILITY SHALL FORTHWITH LIST
7 THE ACCOUNT FOR THE PREMISES IN QUESTION IN THE NAME OF THE
8 OWNER AND SUCH OWNER SHALL THEREAFTER BE RESPONSIBLE FOR
9 PAYMENT FOR UTILITY SERVICES RENDERED THEREUNTO.
10 (2) ANY OWNER OF A RESIDENTIAL BUILDING OR MOBILEHOME
11 PARK FAILING TO NOTIFY AFFECTED PUBLIC UTILITIES AS REQUIRED
12 BY THIS SECTION SHALL NONETHELESS BE RESPONSIBLE FOR PAYMENT
13 FOR UTILITY SERVICES RENDERED THEREUNTO AS IF THE REQUIRED
14 NOTICE HAD BEEN GIVEN.
15 [§ 1532. Penalties. <--
16 (a) Failure to identify tenants.--Any landlord ratepayer who
17 fails to provide a utility with the names and addresses of
18 affected tenants pursuant to section 1524 (relating to request
19 to landlord to identify tenants) shall forfeit and pay to the
20 Commonwealth a civil penalty of not more than $500 for each day
21 of the landlord ratepayer's failure to respond. The court [in <--
22 its discretion may] shall award the utility reasonable <--
23 attorneys' fees, filing fees and reasonable costs of suit for
24 any action against the landlord ratepayer which was necessary to
25 obtain the names and addresses of affected tenants pursuant to
26 section 1524.] <--
27 § 1532. PENALTIES AND INJUNCTIVE RELIEF. <--
28 (A) PER DIEM LIQUIDATED DAMAGES.--ANY LANDLORD RATEPAYER WHO
29 FAILS TO PROVIDE A UTILITY WITH THE NAMES AND ADDRESSES OF
30 AFFECTED TENANTS IN ACCORDANCE WITH SECTION 1524 (RELATING TO
19810H1191B3183 - 37 -
1 REQUEST TO LANDLORD TO IDENTIFY TENANTS), SHALL BE DEEMED TO
2 HAVE CAUSED SUBSTANTIAL DAMAGE TO THE UTILITY BY THUS FORCING A
3 CONTINUATION OF THE EXISTING UTILITY SERVICE, AND IN CONSEQUENCE
4 THEREOF, SHALL BE REQUIRED TO PAY AS LIQUIDATED DAMAGES TO THE
5 UTILITY A SUM OF NOT LESS THAN $500 BUT NOT MORE THAN $1,000 FOR
6 EACH DAY OF SUCH LANDLORD'S FAILURE TO COMPLY, COMMENCING WITH
7 THE FIRST DAY AFTER COMPLETION OR EXHAUSTION OF THE PROCEDURES
8 PROVIDED UNDER SECTION 1524(A) AND (B)(1)(2) AND (3).
9 (B) INJUNCTIVE RELIEF.--THE UTILITY MAY COMMENCE AN ACTION
10 IN EQUITY AGAINST A LANDLORD RATEPAYER TO OBTAIN INJUNCTIVE
11 RELIEF COMPELLING THE LANDLORD TO FURNISH THE NAMES AND
12 ADDRESSES OF AFFECTED TENANTS. THE INTERFERENCE WITH THE
13 UTILITY'S ABILITY TO TERMINATE SERVICE WITHOUT THIS INFORMATION
14 SHALL BE DEEMED SUFFICIENT PROOF OF IMMEDIATE, CONTINUING AND
15 IRREPARABLE INJURY TO SUSTAIN INJUNCTIVE RELIEF. THE COURT
16 SHALL, IN ADDITION TO AWARDING INJUNCTIVE RELIEF, RENDER
17 JUDGMENT IN FAVOR OF THE UTILITY FOR THE TOTAL PER DIEM
18 LIQUIDATED DAMAGES RECOVERABLE UNDER SUBSECTION (A), TOGETHER
19 WITH REASONABLE ATTORNEYS' FEES AND NECESSARY COSTS OF SUIT.
20 [(b)] (C) Tampering with posted notice.--Any person who <--
21 removes, interferes or tampers with a notice to tenants of
22 proposed discontinuance of service, posted pursuant to section
23 1526 (relating to delivery and contents of first discontinuance
24 notice to tenants) commits a summary offense and shall, upon
25 conviction, be sentenced to pay a fine not exceeding [$25] $300.
26 (c) (D) Denial of access to common areas.--Any landlord <--
27 ratepayer who willfully denies an agent or employee of the
28 utility access to the common areas of his residential building
29 for the purpose of posting or delivering notices to tenants
30 pursuant to this part, shall be subject to a civil penalty of
19810H1191B3183 - 38 -
1 not more than $500 for each day that such access is denied.
2 § 1533. Petition to appoint receiver.
3 (a) Appointment of receiver.--Notwithstanding the foregoing
4 sections of this chapter, when a landlord ratepayer is two or
5 more months in arrears in his utility payments, the affected
6 utility shall have the right to petition the court of common
7 pleas of the county wherein the leased premises are located to
8 appoint a receiver to collect rent payments otherwise due the
9 landlord ratepayer directly from the tenants and to pay all
10 overdue and subsequent utility bills therefrom. The provisions
11 of this section shall not be construed to supersede any tenant
12 rights or defenses under law regarding the payment of rent. This
13 right may be exercised only in those situations that involve [50
14 or more rental units in which the] units which are not
15 individually metered by the utility. Upon appointment, the
16 receiver shall notify the tenants of his powers and their rights
17 under law regarding payment of rent and continued utility
18 service by first class mail, certified mail, [or] personal
19 service or posting each unit in the leased premises.
20 (b) Right to continued service.--The affected utility under
21 this section shall not discontinue utility service if it
22 receives payment from the receiver in the amount specified in
23 subsection (c)(2) within 60 days from the date notice to the
24 tenants of the appointment of the receiver is mailed or
25 delivered.
26 (c) Duty of receiver.--The receiver shall:
27 (1) collect all rents directly from the tenants;
28 (2) pay the utility bills equal to the amount due for
29 the [30-day] billing month period prior to the tenant
30 receiving notice of the appointment of the receiver and all
19810H1191B3183 - 39 -
1 future bills as they become due;
2 (3) after payment of the amounts in subsection (c)(2),
3 any excess moneys shall be applied pursuant to further order
4 of court; and
5 (4) return the remainder to the landlord ratepayer, less
6 the costs of the notification made to the tenants, plus a 2%
7 administrative fee.
8 (d) Discontinuation.--The receiver shall continue to collect
9 the rents and make disbursements in the manner provided in
10 subsection (c) until the second rental period ends after all of
11 the following conditions have been met:
12 (1) [the] The landlord ratepayer deposits in escrow with
13 the utility a sum equal to the utility charges from the two
14 highest monthly periods in the preceding 12 months[; and].
15 (2) [the] The landlord ratepayer demonstrates to the
16 satisfaction of the court of common pleas that it has the
17 financial [recourses] resources necessary to resume its
18 obligations to the utility and the tenants.
19 (3) The landlord ratepayer pays the undisputed portion
20 of all outstanding utility bills.
21 At such time rental payments will once again be made to the
22 landlord ratepayer. Notice of this change shall be made to the
23 tenants by the receiver by means of first class mail, certified
24 mail, [or] personal service, or posting each unit in the leased
25 premises which costs shall be paid by the landlord ratepayer.
26 (e) Escrow fund.--The escrow fund established under
27 subsection (d)(1) shall not be considered a prepayment of
28 utility costs and shall only be applied against outstanding
29 utility bills at the time a new receiver is appointed for a
30 subsequent failure by the landlord ratepayer to pay utility
19810H1191B3183 - 40 -
1 bills for a two-month period. Said escrow fund shall be returned
2 to landlord ratepayer not later than 90 days nor earlier than 60
3 days, after the landlord ratepayer obtains a court order
4 releasing such funds and certifying that timely payment of
5 utility bills has been made for the immediately preceding 24
6 consecutive months.
7 (f) Interest on funds.--Any funds held in escrow by any
8 utility shall bear interest at a rate to the landlord 1% lower
9 than [the maximum rate allowed by the Federal Reserve Board to
10 be paid on regular savings accounts at commercial banks.]
11 actually received in a regular savings account at a commercial
12 bank within the court's jurisdiction and the remaining 1% shall
13 be remitted to the court for administrative costs.
14 (g) Number of receivers.--In the event more than one utility
15 company is affected by any landlord ratepayers' failure to pay
16 utility bills, the court shall appoint the same receiver to
17 function for all aggrieved utilities.
18 Section 3. This act shall take effect in 60 days. <--
19 SECTION 14. TITLE 66 IS AMENDED BY ADDING A SECTION TO READ: <--
20 § 1707. MANAGEMENT AUDITS.
21 (A) AUDITS MANDATED.--FOR ANY PUBLIC UTILITY WITH ASSETS OF
22 $7,500,000 OR MORE, THE COMMISSION SHALL AT INTERVALS NOT LESS
23 THAN FOUR YEARS OR GREATER THAN SIX YEARS APART:
24 (1) MAKE A COMPLETE MANAGEMENT AUDIT OF EVERY PUBLIC
25 UTILITY.
26 (2) ASCERTAIN THE QUALITY OF SERVICE PROVIDED BY EVERY
27 PUBLIC UTILITY.
28 (3) MAKE FINDINGS AND RECOMMENDATIONS, BASED ON THE
29 MANAGEMENT AUDIT, FOR USE BY THE UTILITY TO OPERATE AT
30 MAXIMUM EFFICIENCY IN PROVIDING SERVICE TO THE PUBLIC.
19810H1191B3183 - 41 -
1 (4) PUBLISH A STATEMENT IN THE PENNSYLVANIA BULLETIN,
2 AFTER THE UTILITY IN QUESTION HAS HAD AN OPPORTUNITY TO
3 REVIEW AND RESPOND TO THE AUDIT REPORT, THAT THE MANAGEMENT
4 AUDIT HAS BEEN COMPLETED AND IT AND THE UTILITY'S RESPONSE,
5 IF ANY, ARE AVAILABLE AT THE COMMISSION AND AT THE UTILITY'S
6 LOCAL OFFICE FOR PUBLIC INSPECTION.
7 (B) OUTSIDE AUDIT AUTHORIZED.--IN LIEU OF PERFORMING THE
8 AUDITS MANDATED BY SUBSECTION (A) ITSELF, THE COMMISSION MAY,
9 AFTER COMPETITIVE BIDDING, CONTRACT WITH ONE OR MORE INDEPENDENT
10 ACCOUNTING OR MANAGEMENT CONSULTING FIRMS FOR THE PERFORMANCE OF
11 THE REQUIRED AUDITS. ANY FIRM PERFORMING ANY SUCH AUDIT SHALL,
12 AS A CONDITION OF THE CONTRACT, REFRAIN FROM ANY AFFILIATION OR
13 EMPLOYMENT WITH THE AUDITED PUBLIC UTILITY FOR A PERIOD OF TWO
14 YEARS FOLLOWING THE COMPLETION OF THE AUDIT UNLESS AUTHORIZED BY
15 THE COMMISSION.
16 (C) AUDIT POWER NOT LIMITED.--THIS SECTION SHALL IN NO WAY
17 LIMIT THE COMMISSION'S POWER TO AUDIT OR INVESTIGATE ANY PUBLIC
18 UTILITY IN ITS DISCRETION.
19 SECTION 15. TITLE 66 IS AMENDED BY ADDING A CHAPTER TO READ:
20 CHAPTER 20
21 CITIZEN REPRESENTATION ON BOARDS OF DIRECTORS
22 SEC.
23 2001. DEFINITIONS.
24 2002. CITIZEN REPRESENTATION ON BOARDS OF DIRECTORS.
25 2003. QUALIFICATIONS OF CITIZEN REPRESENTATIVES.
26 2004. DUTIES OF CITIZEN REPRESENTATIVES.
27 2005. ADVISORY BOARD.
28 2006. POWERS AND DUTIES OF ADVISORY BOARD.
29 2007. PUBLIC UTILITY ACCEPTANCE OF CITIZEN REPRESENTATIVES.
30 § 2001. DEFINITIONS.
19810H1191B3183 - 42 -
1 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
2 SHALL HAVE, UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE, THE
3 MEANINGS GIVEN TO THEM IN THIS SECTION:
4 "CITIZEN REPRESENTATIVE." AN INDIVIDUAL WHO MEETS THE
5 QUALIFICATIONS OF SECTION 2003 (RELATING TO QUALIFICATIONS OF
6 CITIZEN REPRESENTATIVES), IS APPOINTED BY AN ADVISORY BOARD
7 PURSUANT TO SECTION 2006 (RELATING TO POWERS AND DUTIES OF
8 ADVISORY BOARD), IS ACCEPTED BY THE PUBLIC UTILITY TO SERVE ON
9 THE BOARD OF DIRECTORS PURSUANT TO SECTION 2007 (RELATING TO
10 PUBLIC UTILITY ACCEPTANCE OF CITIZEN REPRESENTATIVES) AND
11 PERFORMS THE DUTIES SET FORTH IN SECTION 2004 (RELATING TO
12 DUTIES OF CITIZEN REPRESENTATIVES).
13 "PUBLIC UTILITY." ANY PRIVATELY OWNED PUBLIC UTILITY AS
14 DEFINED IN PARAGRAPH (1)(I), (II) AND (VI) OF THE DEFINITION OF
15 "PUBLIC UTILITY" AS SET FORTH IN SECTION 102 (RELATING TO
16 DEFINITIONS).
17 § 2002. CITIZEN REPRESENTATION ON BOARDS OF DIRECTORS.
18 AS A CONDITION OF RECEIVING, MAINTAINING OR RENEWING A
19 CERTIFICATE OF PUBLIC CONVENIENCE PURSUANT TO SECTION 1103
20 (RELATING TO PROCEDURE TO OBTAIN CERTIFICATES OF PUBLIC
21 CONVENIENCE), EACH PUBLIC UTILITY AS DEFINED IN THIS CHAPTER
22 SHALL ACCEPT AT LEAST ONE CITIZEN REPRESENTATIVE ON ITS BOARD OF
23 DIRECTORS FOR EVERY THREE NONCITIZEN REPRESENTATIVES ON ITS
24 BOARD, SUCH CITIZEN REPRESENTATIVES TO BE CHOSEN BY THE
25 INDEPENDENT ADVISORY BOARD FOR ITS SERVICE AREA.
26 § 2003. QUALIFICATIONS OF CITIZEN REPRESENTATIVES.
27 EACH CITIZEN REPRESENTATIVE SHALL LIVE IN THE SERVICE AREA OF
28 THE PUBLIC UTILITY ON WHICH THE CITIZEN REPRESENTATIVE SERVES ON
29 THE BOARD OF DIRECTORS AND SHALL BE A CONSUMER OF THE SERVICES
30 OF THE PUBLIC UTILITY. A CITIZEN REPRESENTATIVE SHALL NOT BE:
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1 (1) A DIRECTOR, STOCKHOLDER OR EMPLOYEE OF ANY PUBLIC
2 UTILITY.
3 (2) AN OFFICER OR EMPLOYEE OF THE COMMISSION.
4 (3) AN OFFICER OR EMPLOYEE OF THE OFFICE OF CONSUMER
5 ADVOCATE.
6 § 2004. DUTIES OF CITIZEN REPRESENTATIVES.
7 EACH CITIZEN REPRESENTATIVE SHALL BE ENTITLED TO TAKE PART IN
8 ALL DELIBERATIONS AND TO VOTE ON ALL DECISIONS IN THE SAME
9 MANNER AS THE MEMBERS OF THE BOARD OF DIRECTORS CHOSEN BY THE
10 STOCKHOLDERS OF THE PUBLIC UTILITY. FOR PERFORMING THE DUTIES OF
11 A MEMBER OF THE BOARD OF DIRECTORS, A CITIZEN REPRESENTATIVE
12 SHALL RECEIVE SUCH COMPENSATION AND EXPENSES AS ARE PAID TO
13 OTHER MEMBERS OF THE BOARD.
14 § 2005. ADVISORY BOARD.
15 (A) MEMBERSHIP.--THERE IS HEREBY ESTABLISHED AN ADVISORY
16 BOARD TO CHOOSE INDIVIDUALS TO SERVE AS CITIZEN REPRESENTATIVES
17 ON THE BOARD OF DIRECTORS OF CERTAIN PUBLIC UTILITIES. THE
18 ADVISORY BOARD SHALL CONSIST OF SEVEN MEMBERS TO BE SELECTED IN
19 THE FOLLOWING MANNER:
20 (1) THREE MEMBERS APPOINTED BY THE GOVERNOR WITHOUT
21 SENATE CONFIRMATION.
22 (2) TWO MEMBERS, ONE TO BE APPOINTED BY THE PRESIDENT
23 PRO TEMPORE OF THE SENATE AND ONE APPOINTED BY THE MINORITY
24 LEADER OF THE SENATE.
25 (3) TWO MEMBERS, ONE TO BE APPOINTED BY THE SPEAKER OF
26 THE HOUSE OF REPRESENTATIVES AND ONE APPOINTED BY THE
27 MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES.
28 (B) TERMS.--EXCEPT FOR THE FIRST MEMBERS OF THE ADVISORY
29 BOARD, ALL OTHER MEMBERS OF THE ADVISORY BOARD SHALL SERVE FOR A
30 TERM OF FIVE YEARS. THE INITIAL APPOINTEES OF THE ADVISORY BOARD
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1 SHALL SERVE FOR THE FOLLOWING TERMS:
2 (1) THE TWO MEMBERS APPOINTED BY THE SENATE LEADERSHIP
3 SHALL SERVE FOR A TERM OF TWO YEARS.
4 (2) THE TWO MEMBERS APPOINTED BY THE LEADERSHIP OF THE
5 HOUSE OF REPRESENTATIVES SHALL SERVE FOR A TERM OF FOUR
6 YEARS.
7 (3) THE GOVERNOR IN HIS APPOINTMENTS SHALL DESIGNATE TWO
8 MEMBERS TO SERVE FOR A TERM OF THREE YEARS AND ONE MEMBER TO
9 SERVE FOR A TERM OF FIVE YEARS.
10 (C) RESTRICTIONS ON ADVISORY BOARD MEMBERS.--NO INDIVIDUAL,
11 WHILE A MEMBER OR EMPLOYEE OF THE ADVISORY BOARD, SHALL:
12 (1) SERVE ON THE BOARD OF DIRECTORS, OWN STOCK IN OR BE
13 AN EMPLOYEE OF ANY PUBLIC UTILITY.
14 (2) BE AN OFFICER OR AN EMPLOYEE OF THE COMMISSION.
15 (3) BE AN OFFICER OR AN EMPLOYEE OF THE OFFICE OF
16 CONSUMER ADVOCATE.
17 (D) VACANCIES.--A MAJORITY OF THE ADVISORY BOARD BY
18 RESOLUTION SHALL DECLARE VACANT THE POSITION ON THE BOARD OF ANY
19 MEMBER WHO TAKES PART IN ANY ACTIVITIES PROHIBITED IN SUBSECTION
20 (C). AN INDIVIDUAL APPOINTED TO FILL A VACANCY OCCURRING OTHER
21 THAN BY THE EXPIRATION OF A TERM OF OFFICE SHALL BE APPOINTED
22 FOR THE UNEXPIRED TERM OF THE MEMBER HE SUCCEEDS. ANY VACANCY
23 OCCURRING ON THE ADVISORY BOARD SHALL BE FILLED WITHIN 30 DAYS
24 IN THE MANNER IN WHICH THAT POSITION WAS ORIGINALLY FILLED.
25 (E) OFFICERS.--THE ADVISORY BOARD SHALL ELECT A CHAIRPERSON
26 AND A VICE CHAIRPERSON. IN THE ABSENCE OF THE CHAIRPERSON OR IN
27 THE EVENT OF A VACANCY, THE VICE CHAIRPERSON SHALL ACT AS
28 CHAIRPERSON.
29 (F) QUORUM.--FOUR MEMBERS OF THE ADVISORY BOARD SHALL
30 CONSTITUTE A QUORUM AND THE VOTES OF A MAJORITY OF THE MEMBERS
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1 PRESENT IS REQUIRED FOR ANY ACTION OR RECOMMENDATION OF THE
2 ADVISORY BOARD. THE CHAIRMAN OR ANY FOUR MEMBERS OF THE ADVISORY
3 BOARD MAY CALL A MEETING PROVIDED THAT ADVANCE WRITTEN NOTICE IS
4 MAILED TO EACH MEMBER AND TO ANY SUCH PERSON WHO REQUESTS NOTICE
5 FOR SUCH MEETINGS.
6 (G) COMPENSATION.--MEMBERS OF THE ADVISORY BOARD SHALL BE
7 COMPENSATED AT A RATE OF $50 PER DAY AND SHALL RECEIVE
8 REIMBURSEMENT FOR THEIR ACTUAL AND NECESSARY EXPENSES WHILE
9 PERFORMING THE BUSINESS OF THE ADVISORY BOARD.
10 (H) RENOMINATION.--MEMBERS OF THE ADVISORY BOARD ARE
11 ELIGIBLE FOR RENOMINATION TO THE BOARD.
12 (I) COSTS.--THE COMPENSATION OF THE ADVISORY BOARD AND ALL
13 OF THE EXPENSES FOR THE OPERATION SHALL BE THE RESPONSIBILITY OF
14 THE COMMISSION AND SHALL BE RECOVERABLE BY THE COMMISSION
15 PURSUANT TO SECTION 510 (RELATING TO ASSESSMENT FOR REGULATORY
16 EXPENSES UPON PUBLIC UTILITIES).
17 § 2006. POWERS AND DUTIES OF ADVISORY BOARD.
18 THE ADVISORY BOARD SHALL HAVE THE POWER AND DUTY TO:
19 (1) ACCEPT APPLICATIONS AND RESUMES FROM ANY INDIVIDUAL
20 INTERESTED IN BECOMING A CITIZEN REPRESENTATIVE ON A PUBLIC
21 UTILITY.
22 (2) EVALUATE THE QUALIFICATIONS OF INDIVIDUALS WHO APPLY
23 AND VERIFY THAT THEY MEET THE QUALIFICATIONS STATED IN
24 SECTION 2003 (RELATING TO QUALIFICATIONS OF CITIZEN
25 REPRESENTATIVES).
26 (3) NOMINATE, WITHIN A PERIOD OF 90 DAYS FROM THE DATE
27 THAT APPLICATIONS ARE FIRST ACCEPTED, TWO INDIVIDUALS TO
28 SERVE AS CITIZEN REPRESENTATIVES ON THE PUBLIC UTILITY BOARD
29 OF DIRECTORS FOR WHICH HE HAS APPLIED.
30 (4) DECLARE VACANT THE SEAT OF ANYONE CHOSEN TO SERVE AS
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1 A CITIZEN REPRESENTATIVE WHO TAKES PART IN ANY OF THE
2 ACTIVITIES LISTED IN SECTION 2004 (RELATING TO DUTIES OF
3 CITIZEN REPRESENTATIVES) OR WHO ACCEPTS COMPENSATION FOR
4 ACTIVITIES ENUMERATED IN SECTION 2004 AND NOMINATE, WITHIN 30
5 DAYS OF A VACANCY FOR ANY REASON, ONE INDIVIDUAL TO SERVE AS
6 A CITIZEN REPRESENTATIVE.
7 (5) HIRE AN EXECUTIVE DIRECTOR, A GENERAL COUNSEL AND
8 SUCH OTHER STAFF AS ARE NECESSARY TO CARRY OUT ITS DUTIES
9 PURSUANT TO THIS CHAPTER. THE EXECUTIVE DIRECTOR SHALL BE
10 RESPONSIBLE FOR THE ADMINISTRATIVE OPERATIONS OF THE ADVISORY
11 BOARD AND SHALL PERFORM SUCH OTHER DUTIES AS MAY BE DELEGATED
12 OR ASSIGNED TO HIM BY THE ADVISORY BOARD, EXCEPT THAT THE
13 ADVISORY BOARD SHALL NOT DELEGATE THE MAKING OF REGULATIONS
14 TO THE EXECUTIVE DIRECTOR. THE GENERAL COUNSEL SHALL BE THE
15 CHIEF LEGAL OFFICER OF THE ADVISORY BOARD.
16 (6) CONTRACT FOR THE SERVICES OF EXPERTS AND CONSULTANTS
17 AS NECESSARY TO CARRY OUT ITS DUTIES PURSUANT TO THIS
18 CHAPTER.
19 § 2007. PUBLIC UTILITY ACCEPTANCE OF CITIZEN REPRESENTATIVES.
20 (A) NEW PUBLIC UTILITIES.--EACH PUBLIC UTILITY, IF IT IS
21 GRANTED A CERTIFICATE OF PUBLIC CONVENIENCE, SHALL ACCEPT THE
22 CITIZEN REPRESENTATIVES NOMINATED BY THE ADVISORY BOARD.
23 (B) EXISTING PUBLIC UTILITIES.--EACH PUBLIC UTILITY THAT HAS
24 ALREADY BEEN GRANTED A CERTIFICATE OF PUBLIC CONVENIENCE SHALL,
25 IN ORDER TO MAINTAIN OR RENEW THAT CERTIFICATE OF PUBLIC
26 CONVENIENCE, AGREE TO ACCEPT THE TWO CITIZEN REPRESENTATIVES
27 NOMINATED BY THE ADVISORY BOARD BY NO LATER THAN JULY 1, 1981 OR
28 THE DATE OF THE NEXT ELECTION FOR MEMBERS OF THE BOARD OF
29 DIRECTORS WHICH IS CLOSEST TO THE EFFECTIVE DATE OF THIS
30 CHAPTER, WHICHEVER IS SOONER.
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1 (C) VACANCIES.--UPON THE ADVISORY BOARD'S NOMINATION TO FILL
2 A VACANCY, THE PUBLIC UTILITY SHALL ACCEPT, WITHIN 30 DAYS, THE
3 NOMINATED CANDIDATE TO FILL OUT THE REMAINDER OF THE TERM.
4 DURING THE PERIOD OF VACANCY THERE SHALL BE NO INFRINGEMENT ON
5 THE UTILITIES CERTIFICATE OF PUBLIC CONVENIENCE.
6 SECTION 16. (A) SECTION 1509 OF TITLE 66 SHALL TAKE EFFECT
7 JANUARY 1, 1982.
8 (B) SECTIONS 506, 1307(A) AND 1315 AND CHAPTER 20 OF TITLE
9 66 SHALL TAKE EFFECT IMMEDIATELY.
10 (C) SECTION 521 OF TITLE 66 SHALL TAKE EFFECT IN 90 DAYS.
11 (D) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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