PRIOR PRINTER'S NO. 2565                      PRINTER'S NO. 2745

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2000 Session of 1987


        INTRODUCED BY LAUGHLIN, BURNS, ITKIN, TRELLO, CHADWICK, COY,
           HALUSKA, FOSTER, DOMBROWSKI, FEE, GEORGE, BORTNER, BOWSER AND
           STEIGHNER, NOVEMBER 23, 1987

        AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JANUARY 26, 1988

                                     AN ACT

     1  Creating the Electric Power Transmission Task Force and
     2     providing for its powers and duties; and making an
     3     appropriation.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Electric
     8  Power Transmission Task Force Act.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "Task force."  The Electric Power Transmission Task Force,
    14  created by this act.
    15  Section 3.  Electric Power Transmission Task Force.
    16     (a)  Creation.--There is hereby created the Electric Power
    17  Transmission Task Force, which shall have the powers and duties


     1  provided for in this act.
     2     (b)  Composition.--The task force shall be composed of the
     3  following persons:
     4         (1)  The Lieutenant Governor and the Chairman of the
     5     Pennsylvania Public Utility Commission, who shall be
     6     cochairmen of the task force.
     7         (2)  The chairman and the minority chairman of the
     8     Consumer Affairs Committee of the House of Representatives,
     9     or their designees.
    10         (3)  The chairman and the minority chairman of the
    11     Consumer Protection and Professional Licensure Committee of
    12     the Senate, or their designees.
    13         (4)  The Executive Director of the Pennsylvania Energy
    14     Office, or his designee.
    15         (5)  The Secretary of Environmental Resources, or his
    16     designee.
    17         (6)  The Secretary of Transportation, or his designee.
    18         (7)  The Consumer Advocate of Pennsylvania, or his
    19     designee.
    20         (8)  Two persons representing major industrial
    21     electricity end users in Pennsylvania, one to be chosen        <--
    22     APPOINTED by the Majority Leader of the House of               <--
    23     Representatives and one to be chosen APPOINTED by the          <--
    24     Majority Leader of the Senate.
    25         (9)  Two FOUR persons representing organized labor, one    <--
    26     TWO to be chosen APPOINTED by the Majority Leader of the       <--
    27     House of Representatives and one to be chosen TWO TO BE        <--
    28     APPOINTED by the Majority Leader of the Senate.
    29         (10)  One member from each of the seven major investor-    <--
    30     owned Pennsylvania electric utilities, to be selected by the
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     1     chief executive officer of each utility. The electric
     2     utilities to be represented include:
     3             (i)  Duquesne Light Company.
     4             (ii)  Metropolitan Edison Company.
     5             (iii)  Pennsylvania Electric Company.
     6             (iv)  Pennsylvania Power Company.
     7             (v)  Pennsylvania Power & Light Company.
     8             (vi)  Philadelphia Electric Company.
     9             (vii)  West Penn Power Company.
    10         (10)  ONE PERSON REPRESENTING A PENNSYLVANIA-BASED         <--
    11     CONSUMER GROUP, TO BE APPOINTED BY THE COCHAIRMEN.
    12         (11)  ONE MEMBER FROM EACH OF THE SEVEN INVESTOR-OWNED
    13     PENNSYLVANIA ELECTRIC UTILITIES WHICH GENERATES AND TRANSMITS
    14     ELECTRICITY, TO BE APPOINTED BY THE COCHAIRMEN.
    15         (11) (12)  One member representing the electric            <--
    16     cooperatives and the municipal electric companies, to be
    17     selected by the Pennsylvania Rural Electric Association.       <--
    18     APPOINTED BY THE COCHAIRMEN.                                   <--
    19         (12) (13)  Two at-large designees, to be appointed by the  <--
    20     cochairmen, representing nonutility generators.
    21         (13) (14)  Four at-large designees who are recognized      <--
    22     experts in at least one aspect of electric utility
    23     regulation, to be appointed by the cochairmen.
    24     (c)  Vacancies.--Any vacancy occurring on the task force
    25  shall be filled in the same manner in which the original
    26  appointment was made. Members of the task force shall serve at
    27  the pleasure of their appointing authority.
    28     (d)  Expenses.--Members of the task force, or their
    29  designees, shall not be compensated for serving on the task
    30  force, but shall be entitled to receive reimbursement for actual
    19870H2000B2745                  - 3 -

     1  expenses incurred while on task force business.
     2  Section 4.  Powers and duties.
     3     (a)  Authorization.--The task force shall have the power and
     4  its duty shall be to assess the electric power transmission
     5  network within and outside of Pennsylvania. It shall investigate
     6  the net economic benefits of the current system and the
     7  potential net economic benefits resulting from changes,
     8  including the construction of electric transmission capacity
     9  within and outside of Pennsylvania. It shall address the
    10  technical, legal, regulatory, financial and environmental issues
    11  associated with any proposed changes to the current transmission
    12  network. This investigation shall include, but not be limited
    13  to, the following:
    14         (1)  An assessment of the current uses of Pennsylvania's
    15     transmission network. This shall include an analysis of
    16     issues relating to the current ownership, access, power flows
    17     (both intended and unintended), the distribution of current
    18     economic benefits, reliability, technical constraints and the
    19     aggregate net benefits to Pennsylvania and other states.
    20         (2)  A review of electric demand forecasts and plans by
    21     regional electric reliability council members within and
    22     outside of Pennsylvania to either construct new economic
    23     generating capacity and/or to enter into agreements for the
    24     purchase of energy and/or capacity from nonutility sources or
    25     utility sources outside their respective regions.
    26         (3)  A review of the current transmission access by
    27     regulated utilities, electric cooperatives, municipal
    28     electric companies, nonutility generators and electricity end
    29     users. An identification of economic alternatives to present
    30     access arrangements should be undertaken.
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     1         (4)  An assessment of the need for new transmission
     2     capacity within or outside of Pennsylvania in order to
     3     provide for increased net economic benefits to Pennsylvania.
     4     Power import/export opportunities, increased reliability and
     5     the potential for economic development should be examined.
     6         (5)  An identification of the major factors involved in
     7     the siting and construction of economic transmission capacity
     8     within and outside of Pennsylvania. These factors should
     9     include, at a minimum, regulatory, financial, technical,
    10     environmental, health, public interest and ownership issues.
    11         (6)  An assessment of the net economic benefits that
    12     might be derived from the creation of an electric power
    13     transmission authority that would build, own and operate new
    14     electric transmission capacity and/or acquire all or a
    15     portion of existing electric transmission capacity.
    16     (b)  Recommendations.--The task force shall prepare
    17  recommendations, related to the electric transmission system,
    18  that are designed to capture additional economic benefits for
    19  Pennsylvania. A preliminary identification of specific routes
    20  and the amount of needed transmission capacity should be
    21  included, as well as suggestions for future analysis. The merits
    22  of creating a power transmission authority should also be fully
    23  addressed.
    24  Section 5.  Staffing.
    25     The staff of the Pennsylvania Energy Office, in cooperation
    26  with the Pennsylvania Public Utility Commission, shall head the
    27  technical support effort for the task force. The Pennsylvania
    28  Energy Office shall direct and coordinate the activities of
    29  consultants, utilities and all other staff in carrying out the
    30  purposes of the task force. The Pennsylvania Energy Office may,
    19870H2000B2745                  - 5 -

     1  at the direction of the task force, contract with individuals or
     2  organizations to provide consulting services to assist in the
     3  work of the task force. A reasonable assessment of the issues
     4  will be possible only with cooperation from the electric
     5  utilities in developing information and performing studies to
     6  accomplish the objectives of the task force.
     7  Section 6.  Meetings and hearings.
     8     The task force shall hold an organizational meeting within 60
     9  days of the effective date of this act. The task force or
    10  designated members may conduct public hearings at locations
    11  throughout this Commonwealth. All meetings and public hearings
    12  of the task force shall be subject to the provisions of the act
    13  of July 3, 1986 (P.L.388, No.84), known as the Sunshine Act.
    14  Section 7.  Reports.
    15     The task force shall make a report of its findings and
    16  recommendations to the General Assembly and to the Governor.
    17  Section 8.  Appropriation.
    18     The sum of $100,000 is hereby appropriated to the
    19  Pennsylvania Energy Office for the purposes set forth in this
    20  act. THESE FUNDS SHALL NOT LAPSE UNTIL JUNE 30, 1990.             <--
    21  Section 9.  Expiration.
    22     The task force shall expire two years from the effective date
    23  of this act.
    24  Section 10.  Effective date.
    25     This act shall take effect immediately.




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