HOUSE AMENDED
PRIOR PRINTER'S NOS. 64, 2421 PRINTER'S NO. 2500
No. 64 Session of 1983
INTRODUCED BY BELL, SHAFFER AND PECORA, JANUARY 17, 1983
AS HOUSE RECEDED FROM AMENDMENT NONCONCURRED IN BY SENATE,
HOUSE OF REPRESENTATIVES, NOVEMBER 28, 1984
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for audits of certain
3 utilities, FOR THE CONVERSION OF GENERATING UNITS FROM OIL OR <--
4 GAS TO COAL AND FOR THE RECOVERY OF CONVERSION COSTS, AND FOR
5 THE APPROVAL OF THE CONSTRUCTION OF GENERATING UNITS FUELED
6 BY NUCLEAR ENERGY, OIL OR NATURAL GAS.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Title 66 of the Pennsylvania Consolidated
10 Statutes is amended by adding a section SECTIONS to read: <--
11 § 514 516. Audits of certain utilities. <--
12 (a) General rule.--The commission shall provide for audits
13 of any electric, gas, telephone or water utility whose plant in
14 service is valued at not less than $10,000,000. The audits shall
15 include an examination of management effectiveness and operating
16 efficiency. The commission shall establish procedures for audits
17 of the operations of utilities as provided in this section.
18 Audits shall be conducted at least once every five years unless
1 the commission finds that a specific audit is unnecessary but in
2 no event shall audits be conducted less than once every eight
3 years.
4 (b) Use of independent auditing firms.--The commission may
5 require an audit to be performed by an independent consulting
6 firm. When the commission orders an audit to be performed by an
7 independent consulting firm the commission, after consultation
8 with the audited utility, shall select the audit firm and
9 require the audited utility to enter into a contract with the
10 audit firm providing for payment of the audit firm by the
11 utility. That contract shall require the audit firm to work
12 under the direction of the commission.
13 (c) Other powers of commission unaffected.--This section is
14 not intended to alter or repeal any existing powers of the
15 commission.
16 Section 2. This act shall take effect in 60 days. <--
17 § 517. CONVERSION OF ELECTRIC GENERATING UNITS FUELED BY OIL OR <--
18 NATURAL GAS.
19 (A) ORDER BY COMMISSION.--WHENEVER THE COMMISSION DETERMINES
20 THAT CONVERSION OF AN OIL OR A NATURAL GAS-FUELED ELECTRIC
21 GENERATING UNIT TO COAL, A SYNTHETIC DERIVED IN WHOLE OR IN PART
22 FROM COAL OR A MIXTURE WHICH INCLUDES COAL OR IS DERIVED IN
23 WHOLE OR IN PART FROM COAL IS ECONOMICALLY AND TECHNOLOGICALLY
24 FEASIBLE, THE COMMISSION SHALL ISSUE AN ORDER TO THE AFFECTED
25 PUBLIC UTILITY TO SHOW CAUSE WHY THE COMMISSION SHOULD NOT ORDER
26 THE CONVERSION OF THAT UNIT. THE COMMISSION SHALL SUBSEQUENTLY
27 ISSUE AN ORDER REQUIRING THE CONVERSION OF THAT UNIT UNLESS THE
28 AFFECTED PUBLIC UTILITY PROVES, AND THE COMMISSION FINDS, ANY OF
29 THE FOLLOWING:
30 (1) CONVERSION OF THE UNIT IS NOT TECHNOLOGICALLY
19830S0064B2500 - 2 -
1 FEASIBLE.
2 (2) THE UNIT, IF CONVERTED, COULD NOT BE OPERATED IN
3 COMPLIANCE WITH PRESENT AND REASONABLY ANTICIPATED
4 ENVIRONMENTAL LAWS AND REGULATIONS.
5 (3) THERE IS A STRONG PROBABILITY THAT THE CONVERSION
6 AND SUBSEQUENT OPERATION OF THE CONVERTED UNIT WOULD BE MORE
7 COSTLY TO RATEPAYERS OVER THE REMAINING USEFUL LIFE OF THE
8 CONVERTED UNIT THAN WOULD CONTINUED OPERATION AS AN OIL OR A
9 NATURAL GAS FUELED UNIT.
10 (B) ENVIRONMENTAL QUESTIONS.--THE COMMISSION MAY CERTIFY TO
11 THE DEPARTMENT OF ENVIRONMENTAL RESOURCES ANY QUESTION REGARDING
12 THE APPLICABILITY OF ENVIRONMENTAL LAWS AND REGULATIONS, WHEN
13 THE QUESTION ARISES IN A PROCEEDING UNDER THIS SECTION, AND MAY
14 INCORPORATE THE DEPARTMENT'S FINDINGS IN ITS DECISION.
15 (C) MIXTURE WITH OIL OR NATURAL GAS.--FOR PURPOSES OF THIS
16 SECTION, THE PHRASE "MIXTURE WHICH INCLUDES COAL OR IS DERIVED
17 IN WHOLE OR IN PART FROM COAL" INCLUDES, BUT IS NOT LIMITED TO,
18 BOTH THE INTERMITTENT AND THE SIMULTANEOUS BURNING OF OIL OR
19 NATURAL GAS WITH COAL OR A COAL DERIVATIVE IF THE INTERMITTENT
20 OR SIMULTANEOUS BURNING OF OIL OR NATURAL GAS WOULD:
21 (1) LOWER THE COST TO THE RATEPAYERS OF USING COAL OR A
22 COAL DERIVATIVE; OR
23 (2) ENABLE COAL OR A COAL DERIVATIVE TO BE BURNED IN
24 COMPLIANCE WITH PRESENT AND REASONABLY ANTICIPATED
25 ENVIRONMENTAL LAWS AND REGULATIONS.
26 (D) RECOVERY OF CONVERSION COSTS.--NOTWITHSTANDING ANY OTHER
27 PROVISION OF THIS TITLE, IF THE COMMISSION, ACTING PURSUANT TO
28 THIS SECTION, ISSUES AN ORDER REQUIRING THE CONVERSION OF AN OIL
29 OR A NATURAL GAS-FUELED UNIT, THE AFFECTED UTILITY SHALL BE
30 PERMITTED TO RECOVER ALL REASONABLE AND PRUDENT COSTS ASSOCIATED
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1 WITH THE CONVERSION EVEN IF THE CONVERSION OR CONTINUED
2 OPERATION OF THE CONVERTED UNIT IS ULTIMATELY PREVENTED BY
3 FACTORS BEYOND THE UTILITY'S CONTROL. THE AFFECTED UTILITY SHALL
4 BE PERMITTED TO INCLUDE IN ITS RATE BASE OR OTHERWISE IN ITS
5 RATES DURING CONSTRUCTION SUCH REASONABLE AND PRUDENT COSTS OF
6 CONSTRUCTION ASSOCIATED WITH THE CONVERSION.
7 (E) AVAILABILITY OF FUNDS.--NOTHING IN THIS SECTION SHALL BE
8 CONSTRUED AS REQUIRING THE COMMISSION TO ISSUE AN ORDER TO SHOW
9 CAUSE PURSUANT TO THIS SECTION IF THE COMMISSION DETERMINES THAT
10 IT DOES NOT HAVE SUFFICIENT FUNDS AVAILABLE FOR SUCH A SHOW
11 CAUSE PROCEEDING.
12 § 518. CONSTRUCTION OF ELECTRIC GENERATING UNITS FUELED BY
13 NUCLEAR ENERGY.
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 NUCLEAR ENERGY.
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, THE AFFECTED PUBLIC UTILITY
23 PROVES AND THE COMMISSION FINDS ANY OF THE FOLLOWING:
24 (1) THERE ARE NO REASONABLY AVAILABLE SITES ON WHICH A
25 UNIT OR UNITS OF COMPARABLE CAPACITY FUELED BY COAL, A
26 SYNTHETIC DERIVED IN WHOLE OR IN PART FROM COAL OR A MIXTURE
27 WHICH INCLUDES COAL OR IS DERIVED IN WHOLE OR IN PART FROM
28 COAL COULD BE OPERATED IN COMPLIANCE WITH PRESENT AND
29 REASONABLY ANTICIPATED ENVIRONMENTAL LAWS AND REGULATIONS.
30 (2) THERE IS A STRONG PROBABILITY THAT CONSTRUCTION AND
19830S0064B2500 - 4 -
1 SUBSEQUENT OPERATION OF A UNIT OR UNITS OF COMPARABLE
2 CAPACITY FUELED BY COAL, A SYNTHETIC DERIVED IN WHOLE OR IN
3 PART FROM COAL OR A MIXTURE WHICH INCLUDES COAL OR IS DERIVED
4 IN WHOLE OR IN PART FROM COAL WOULD BE MORE COSTLY TO
5 RATEPAYERS OVER THE USEFUL LIFE OF THE NONNUCLEAR UNIT OR
6 UNITS THAN WOULD CONSTRUCTION AND SUBSEQUENT OPERATION OF THE
7 UNIT PROPOSED BY THE UTILITY.
8 (C) ENVIRONMENTAL QUESTIONS.--THE COMMISSION MAY CERTIFY TO
9 THE DEPARTMENT OF ENVIRONMENTAL RESOURCES ANY QUESTION REGARDING
10 THE APPLICABILITY OF ENVIRONMENTAL LAWS AND REGULATIONS, WHEN
11 THE QUESTION ARISES IN A PROCEEDING UNDER THIS SECTION, AND MAY
12 INCORPORATE THE DEPARTMENT'S FINDINGS IN ITS DECISION.
13 (D) TIME LIMIT ON COMMISSION REVIEW.--IF THE COMMISSION
14 FAILS TO APPROVE OR DISAPPROVE AN APPLICATION WITHIN SIX MONTHS
15 AFTER THE DATE ON WHICH THE APPLICATION IS FILED, IT SHALL BE
16 LAWFUL FOR THE AFFECTED UTILITY TO CONSTRUCT THE PROPOSED
17 ELECTRIC GENERATING UNIT AS THOUGH THE COMMISSION HAD APPROVED
18 THE APPLICATION.
19 (E) CAPACITY DETERMINATIONS.--THIS SECTION DOES NOT
20 AUTHORIZE THE COMMISSION TO REVIEW THE AFFECTED PUBLIC UTILITY'S
21 DETERMINATION THAT THERE IS A NEED TO CONSTRUCT A NEW ELECTRIC
22 GENERATING UNIT OF THE CAPACITY AND BY THE INSERVICE DATE
23 PROPOSED BY THE UTILITY AND DOES NOT SUPERSEDE A DECISION BY THE
24 COMMISSION UNDER SOME OTHER PROVISION OF LAW THAT THERE IS, OR
25 WAS, NOT A NEED TO CONSTRUCT A NEW ELECTRIC GENERATING UNIT OF
26 THE CAPACITY AND BY THE INSERVICE DATE PROPOSED BY THE UTILITY.
27 (F) MIXTURE WITH OIL OR NATURAL GAS.--FOR THE PURPOSES OF
28 THIS SECTION, THE PHRASE "MIXTURE WHICH INCLUDES COAL OR IS
29 DERIVED IN WHOLE OR IN PART FROM COAL" INCLUDES, BUT IS NOT
30 LIMITED TO, BOTH THE INTERMITTENT AND THE SIMULTANEOUS BURNING
19830S0064B2500 - 5 -
1 OF OIL OR NATURAL GAS WITH COAL OR A COAL DERIVATIVE IF THE
2 INTERMITTENT OR SIMULTANEOUS BURNING OF OIL OR NATURAL GAS
3 WOULD:
4 (1) LOWER THE COST TO THE RATEPAYERS OF USING COAL OR A
5 COAL DERIVATIVE; OR
6 (2) ENABLE COAL OR A COAL DERIVATIVE TO BE BURNED IN
7 COMPLIANCE WITH PRESENT AND REASONABLY ANTICIPATED
8 ENVIRONMENTAL LAWS AND REGULATIONS.
9 § 519. CONSTRUCTION OF ELECTRIC GENERATING UNITS FUELED BY OIL
10 OR NATURAL GAS.
11 (A) GENERAL RULE.--ONLY UPON THE APPLICATION OF A PUBLIC
12 UTILITY AND THE APPROVAL OF THE APPLICATION BY THE COMMISSION
13 SHALL IT BE LAWFUL FOR THE UTILITY TO BEGIN THE CONSTRUCTION OF
14 AN ELECTRIC GENERATING UNIT FUELED BY OIL OR NATURAL GAS.
15 (B) REVIEW BY COMMISSION.--EVERY APPLICATION SHALL BE MADE
16 TO THE COMMISSION IN WRITING AND SHALL BE IN THE FORM AND
17 CONTAIN THE INFORMATION THE COMMISSION REQUIRES BY ITS
18 REGULATIONS. THE COMMISSION SHALL APPROVE AN APPLICATION IF,
19 AFTER REASONABLE NOTICE AND HEARING, THE AFFECTED PUBLIC UTILITY
20 PROVES AND THE COMMISSION FINDS ANY OF THE FOLLOWING:
21 (1) THERE ARE NO REASONABLY AVAILABLE SITES ON WHICH A
22 UNIT OR UNITS OF COMPARABLE CAPACITY FUELED BY COAL, A
23 SYNTHETIC DERIVED IN WHOLE OR IN PART FROM COAL OR A MIXTURE
24 WHICH INCLUDES COAL OR IS DERIVED IN WHOLE OR IN PART FROM
25 COAL COULD BE OPERATED IN COMPLIANCE WITH PRESENT AND
26 REASONABLY ANTICIPATED ENVIRONMENTAL LAWS AND REGULATIONS.
27 (2) THERE IS A STRONG PROBABILITY THAT CONSTRUCTION AND
28 SUBSEQUENT OPERATION OF A UNIT OR UNITS OF COMPARABLE
29 CAPACITY FUELED BY COAL, A SYNTHETIC DERIVED IN WHOLE OR IN
30 PART FROM COAL OR A MIXTURE WHICH INCLUDES COAL OR IS DERIVED
19830S0064B2500 - 6 -
1 IN WHOLE OR IN PART FROM COAL WOULD BE MORE COSTLY TO
2 RATEPAYERS OVER THE USEFUL LIFE OF THE NONOIL OR NONGAS UNIT
3 OR UNITS THAN WOULD CONSTRUCTION AND SUBSEQUENT OPERATION OF
4 THE UNIT PROPOSED BY THE UTILITY.
5 (C) ENVIRONMENTAL QUESTIONS.--THE COMMISSION MAY CERTIFY TO
6 THE DEPARTMENT OF ENVIRONMENTAL RESOURCES ANY QUESTION REGARDING
7 THE APPLICABILITY OF ENVIRONMENTAL LAWS AND REGULATIONS, WHEN
8 THE QUESTION ARISES IN A PROCEEDING UNDER THIS SECTION, AND MAY
9 INCORPORATE THE DEPARTMENT'S FINDINGS IN ITS DECISION.
10 (D) TIME LIMIT ON COMMISSION REVIEW.--IF THE COMMISSION
11 FAILS TO APPROVE OR DISAPPROVE AN APPLICATION WITHIN SIX MONTHS
12 AFTER THE DATE ON WHICH THE APPLICATION IS FILED, IT SHALL BE
13 LAWFUL FOR THE AFFECTED UTILITY TO CONSTRUCT THE PROPOSED
14 ELECTRIC GENERATING UNIT AS THOUGH THE COMMISSION HAD APPROVED
15 THE APPLICATION.
16 (E) CAPACITY DETERMINATIONS.--THIS SECTION DOES NOT
17 AUTHORIZE THE COMMISSION TO REVIEW THE AFFECTED PUBLIC UTILITY'S
18 DETERMINATION THAT THERE IS A NEED TO CONSTRUCT A NEW ELECTRIC
19 GENERATING UNIT OF THE CAPACITY AND BY THE INSERVICE DATE
20 PROPOSED BY THE UTILITY AND DOES NOT SUPERSEDE A DECISION BY THE
21 COMMISSION UNDER SOME OTHER PROVISION OF LAW THAT THERE IS, OR
22 WAS, NOT A NEED TO CONSTRUCT A NEW ELECTRIC GENERATING UNIT OF
23 THE CAPACITY AND BY THE INSERVICE DATE PROPOSED BY THE UTILITY.
24 (F) MIXTURE WITH OIL OR NATURAL GAS.--FOR THE PURPOSES OF
25 THIS SECTION, THE PHRASE "MIXTURE WHICH INCLUDES COAL OR IS
26 DERIVED IN WHOLE OR IN PART FROM COAL" INCLUDES, BUT IS NOT
27 LIMITED TO, BOTH THE INTERMITTENT AND THE SIMULTANEOUS BURNING
28 OF OIL OR NATURAL GAS WITH COAL OR A COAL DERIVATIVE IF THE
29 INTERMITTENT OR SIMULTANEOUS BURNING OF OIL OR NATURAL GAS
30 WOULD:
19830S0064B2500 - 7 -
1 (1) LOWER THE COST TO THE RATEPAYERS OF USING COAL OR A
2 COAL DERIVATIVE; OR
3 (2) ENABLE COAL OR A COAL DERIVATIVE TO BE BURNED IN
4 COMPLIANCE WITH PRESENT AND REASONABLY ANTICIPATED
5 ENVIRONMENTAL LAWS AND REGULATIONS.
6 SECTION 2. (A) THE AMENDMENT AFFECTING 66 PA.C.S. § 516
7 SHALL TAKE EFFECT IN 60 DAYS.
8 (B) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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