PRINTER'S NO. 2412

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1974 Session of 1981


        INTRODUCED BY LLOYD, MORRIS, HALUSKA, PISTELLA, SWAIM,
           MICHLOVIC, BELFANTI, KUKOVICH, ITKIN AND COHEN, OCTOBER 19,
           1981

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, OCTOBER 19, 1981

                                     AN ACT

     1  Amending Title 66 (Public Utilities) of the Pennsylvania
     2     Consolidated Statutes, further providing for certificates of
     3     convenience and rate increases.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Subsection (a) of section 1102 of Title 66, act
     7  of November 25, 1970 (P.L.707, No.230), known as the
     8  Pennsylvania Consolidated Statutes, is amended by adding a
     9  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 public utility to begin the construction of
    18     an electric generating unit.

     1     * * *
     2     Section 2.  Section 1103 of Title 66 is amended by adding a
     3  subsection to read:
     4  § 1103.  Procedure to obtain certificates of public convenience.
     5     * * *
     6     (a.1)  Electric generating unit.--Every application for a
     7  certificate of public convenience as required by section
     8  1102(a)(6) (relating to enumeration of acts requiring
     9  certificate) shall include an estimate of the cost of
    10  constructing the electric generating unit for which said
    11  application is made.
    12     * * *
    13     Section 3.  Section 1308 of Title 66 is amended by adding a
    14  subsection to read:
    15  § 1308.  Voluntary changes in rates.
    16     * * *
    17     (f)  Limitation on rate increases by certain public
    18  utilities.--Whenever there is filed with the commission any
    19  tariff stating a new rate based in whole or in part on a newly
    20  constructed electric generating unit, the commission shall
    21  compare the estimated construction cost filed in accordance with
    22  the provisions of section 1103(a.1)(relating to electric
    23  generating unit) with the actual construction cost. If the
    24  actual construction cost exceeds the estimated construction
    25  cost, the commission, for the purpose of determining just and
    26  reasonable rates, shall consider only such part of that excess
    27  which the public utility can prove to have been necessary and
    28  proper.
    29     Section 4.  This act shall take effect in 60 days.

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