HOUSE AMENDED
PRIOR PRINTER'S NOS. 1343, 1889 PRINTER'S NO. 2160
No. 1022 Session of 1987
INTRODUCED BY BELL, SEPTEMBER 9, 1987
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 6, 1988
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania <--
2 Consolidated Statutes, prohibiting public utilities that
3 furnish water from imposing a certain charge.
4 AMENDING TITLE 66 (PUBLIC UTILITIES) OF THE PENNSYLVANIA <--
5 CONSOLIDATED STATUTES, FURTHER PROVIDING FOR BURDEN OF PROOF; <--
6 PROVIDING FOR THE PRICE A PUBLIC UTILITY SHALL PAY AND THE
7 CHARGES WHICH MAY BE IMPOSED ON RATEPAYERS FOR ELECTRICITY
8 GENERATED BY A QUALIFYING FACILITY THAT BURNS COAL MINED IN A
9 FOREIGN COUNTRY; PROHIBITING PUBLIC UTILITIES THAT FURNISH
10 WATER FROM IMPOSING A CERTAIN CHARGE; AND PROVIDING FOR
11 DECISION DEADLINES FOR RATES.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Title 66 of the Pennsylvania Consolidated <--
15 Statutes is amended by adding a section to read:
16 SECTION 1. SECTION 315(A) OF TITLE 66 OF THE PENNSYLVANIA <--
17 CONSOLIDATED STATUTES IS AMENDED TO READ:
18 § 315. BURDEN OF PROOF.
19 (A) REASONABLENESS OF RATES.--IN ANY PROCEEDING UPON THE
20 MOTION OF THE COMMISSION, INVOLVING ANY PROPOSED OR EXISTING
21 RATE OF ANY PUBLIC UTILITY, OR IN ANY PROCEEDINGS UPON COMPLAINT
1 INVOLVING ANY [PROPOSED INCREASE] CHANGE IN RATES PROPOSED BY
2 ANY PUBLIC UTILITY, THE BURDEN OF PROOF TO SHOW THAT THE RATE
3 INVOLVED IS JUST AND REASONABLE SHALL BE UPON THE PUBLIC
4 UTILITY. THE COMMISSION SHALL GIVE TO THE HEARING AND DECISION
5 OF ANY SUCH PROCEEDING PREFERENCE OVER ALL OTHER PROCEEDINGS,
6 AND DECIDE THE SAME AS SPEEDILY AS POSSIBLE.
7 * * *
8 SECTION 2. TITLE 66 IS AMENDED BY ADDING A SECTION TO READ:
9 SECTION 1. TITLE 66 OF THE PENNSYLVANIA CONSOLIDATED <--
10 STATUTES IS AMENDED BY ADDING A SECTION TO READ:
11 § 528. USE OF FOREIGN COAL BY QUALIFYING FACILITIES.
12 (A) LEGISLATIVE FINDINGS.--THE GENERAL ASSEMBLY HEREBY FINDS
13 AS FOLLOWS:
14 (1) POTENTIAL QUALIFYING FACILITIES WHICH WOULD GENERATE
15 ELECTRICITY FROM UNITED STATES ENERGY SOURCES ARE, AND WILL
16 FOR THE FORESEEABLE FUTURE CONTINUE TO BE, ABLE TO MEET <--
17 SUPPLEMENT ADEQUATELY THE CAPACITY NEEDS OF PUBLIC UTILITIES <--
18 IN THIS COMMONWEALTH.
19 (2) MANY SOME OF THOSE QUALIFYING FACILITIES WOULD OFFER <--
20 THE MULTIPLE BENEFITS OF SUPPLYING ELECTRICITY TO
21 PENNSYLVANIA RATEPAYERS AT A REASONABLE PRICE, CREATING JOBS
22 IN AREAS OF HIGH UNEMPLOYMENT IN THIS COMMONWEALTH AND
23 HELPING TO CLEAN UP THIS COMMONWEALTH'S ENVIRONMENT.
24 (3) ALTHOUGH FEDERAL LAW PLACES A DUTY ON PUBLIC
25 UTILITIES TO BUY ELECTRICITY GENERATED BY QUALIFYING
26 FACILITIES, FEDERAL LAW DOES NOT DICTATE HOW THE PRICE PAID
27 BY PUBLIC UTILITIES AND THE CHARGES TO RATEPAYERS FOR THAT
28 ELECTRICITY ARE TO BE CALCULATED.
29 (4) THE ENERGY SOURCE USED BY A QUALIFYING FACILITY IS A
30 SIGNIFICANT FACTOR IN DETERMINING IF A QUALIFYING FACILITY
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1 WOULD BE ABLE TO MEET ITS COMMITMENT TO SUPPLY ELECTRICITY TO
2 A PUBLIC UTILITY AT A REASONABLE PRICE.
3 (5) COAL MINED IN A FOREIGN COUNTRY IS SUBJECT TO MAJOR
4 SUPPLY INTERRUPTIONS, PRICE INCREASES AND QUALITY REDUCTIONS
5 WHICH ARE UNPREDICTABLE AND WHICH MAY RESULT NOT ONLY FROM
6 MARKET FACTORS, BUT ALSO FROM FOREIGN POLICY DECISIONS OF THE
7 UNITED STATES GOVERNMENT OR ONE OR MORE FOREIGN GOVERNMENTS
8 OR FROM DOMESTIC POLICY CHANGES IN THE FOREIGN COUNTRY IN
9 WHICH THE COAL IS MINED.
10 (6) IT IS MUCH EASIER FOR A PUBLIC UTILITY AND THE
11 COMMISSION TO PREDICT THE RELIABILITY OF A QUALIFYING
12 FACILITY AND THE REASONABLENESS OF THE PRICE OF THE
13 ELECTRICITY TO BE SUPPLIED BY THAT QUALIFYING FACILITY IF
14 UNITED STATES ENERGY SOURCES ARE TO BE USED THAN IF COAL
15 MINED IN A FOREIGN COUNTRY IS TO BE USED.
16 (7) A QUALIFYING FACILITY WHICH WOULD BURN COAL MINED IN
17 A FOREIGN COUNTRY IS TOO POTENTIALLY UNRELIABLE TO JUSTIFY A
18 PUBLIC UTILITY IN FOREGOING ALTERNATIVE CAPACITY COMMITMENTS
19 AND IN PAYING THE QUALIFYING FACILITY A PRICE WHICH INCLUDES
20 ANY CAPACITY CREDIT.
21 (B) GENERAL RULE.--THE PRICE PAID BY A PUBLIC UTILITY TO A
22 QUALIFYING FACILITY AND THE CHARGE IMPOSED ON THE UTILITY'S
23 RATEPAYERS FOR ELECTRICITY GENERATED BY THAT QUALIFYING FACILITY
24 SHALL NOT INCLUDE ANY CAPACITY CREDIT IF THAT QUALIFYING
25 FACILITY BURNS COAL MINED IN A FOREIGN COUNTRY.
26 (C) RESTRICTION ON CONTRACT APPROVAL.--THE COMMISSION SHALL
27 NOT APPROVE ANY CONTRACT BETWEEN A PUBLIC UTILITY AND A
28 QUALIFYING FACILITY WHICH BURNS COAL MINED IN A FOREIGN COUNTRY
29 FOR THE PURCHASE BY THE UTILITY OF ELECTRICITY GENERATED BY THE
30 QUALIFYING FACILITY UNLESS:
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1 (1) THE PRICE TO BE PAID BY THE UTILITY REFLECTS NO MORE
2 THAN THE ACTUAL AVOIDED COST OF THE UTILITY WHEN THE PAYMENT
3 IS MADE; AND
4 (2) THE CONTRACT DOES NOT EXCEED FIVE YEARS IN DURATION.
5 (D) REVIEW OF CONTRACTS.--NOTWITHSTANDING ANY OTHER
6 PROVISION OF LAW, A CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF <--
7 THIS SECTION OR THEREAFTER BETWEEN A PUBLIC UTILITY AND A
8 QUALIFYING FACILITY FOR THE PURCHASE BY THE UTILITY OF
9 ELECTRICITY GENERATED BY THE QUALIFYING FACILITY SHALL, AFTER
10 NOTICE AND HEARING, BE SUBJECT TO REVIEW AND MODIFICATION IN <--
11 ACCORDANCE WITH SUBSECTIONS (B) AND (C) AT ANY TIME UPON
12 COMPLAINT OR UPON THE COMMISSION'S OWN MOTION IF THE QUALIFYING
13 FACILITY BURNS COAL MINED IN A FOREIGN COUNTRY.
14 (E) RECOVERY FROM RATEPAYERS.--A FOR THE EXPRESS PURPOSE OF <--
15 IMPLEMENTING THE INTENT OF THIS SECTION, A PUBLIC UTILITY SHALL
16 NOT BE PERMITTED TO RECOVER FROM RATEPAYERS PURSUANT TO SECTION
17 1307 (RELATING TO SLIDING SCALE OF RATES; ADJUSTMENTS) ANY OF
18 THE COSTS ASSOCIATED WITH A CONTRACT BETWEEN THE UTILITY AND A
19 QUALIFYING FACILITY WHICH BURNS COAL MINED IN A FOREIGN COUNTRY
20 FOR THE PURCHASE BY THE UTILITY OF ELECTRICITY GENERATED BY THE
21 QUALIFYING FACILITY. ANY SUCH COSTS WHICH THE COMMISSION
22 DETERMINES TO BE REASONABLE AND PRUDENT SHALL BE RECOVERABLE
23 ONLY THROUGH A BASE RATE PROCEEDING PURSUANT TO CHAPTER 13
24 (RELATING TO RATES AND RATE MAKING).
25 (F) DEFINITION.--FOR THE PURPOSES OF THIS SECTION,
26 "QUALIFYING FACILITY" MEANS ANY COGENERATION FACILITY OR SMALL
27 POWER PRODUCER WHICH IS A QUALIFYING FACILITY PURSUANT TO THE
28 FEDERAL ENERGY REGULATORY COMMISSION'S GUIDELINES SET FORTH AT
29 18 CFR §§ 292.101(B)(1) (RELATING TO DEFINITIONS) AND 292.203(A)
30 AND (B) (RELATING TO GENERAL REQUIREMENTS FOR QUALIFICATION).
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1 (G) SEVERABILITY.--THE PROVISIONS OF THIS SECTION SHALL BE
2 SEVERABLE. IF ANY PROVISION OF THIS SECTION, OR THE APPLICATION
3 THEREOF TO ANY PUBLIC UTILITY, QUALIFYING FACILITY, OR
4 CIRCUMSTANCE, IS HELD INVALID, THE REMAINDER OF THIS SECTION,
5 AND THE APPLICATION OF ANY PROVISION THEREOF TO ANY OTHER PUBLIC
6 UTILITIES, QUALIFYING FACILITIES, OR CIRCUMSTANCES, SHALL NOT BE
7 AFFECTED THEREBY.
8 SECTION 3 2. SECTION 1309 OF TITLE 66 IS AMENDED TO READ: <--
9 § 1309. RATES FIXED ON COMPLAINT; INVESTIGATION OF COSTS OF
10 PRODUCTION.
11 (A) GENERAL RULE.--WHENEVER THE COMMISSION, AFTER REASONABLE
12 NOTICE AND HEARING, UPON ITS OWN MOTION OR UPON COMPLAINT, FINDS
13 THAT THE EXISTING RATES OF ANY PUBLIC UTILITY FOR ANY SERVICE
14 ARE UNJUST, UNREASONABLE, OR IN ANYWISE IN VIOLATION OF ANY
15 PROVISION OF LAW, THE COMMISSION SHALL DETERMINE THE JUST AND
16 REASONABLE RATES, INCLUDING MAXIMUM OR MINIMUM RATES, TO BE
17 THEREAFTER OBSERVED AND IN FORCE, AND SHALL FIX THE SAME BY
18 ORDER TO BE SERVED UPON THE PUBLIC UTILITY, AND SUCH RATES SHALL
19 CONSTITUTE THE LEGAL RATES OF THE PUBLIC UTILITY UNTIL CHANGED
20 AS PROVIDED IN THIS PART. WHENEVER A PUBLIC UTILITY DOES NOT
21 ITSELF PRODUCE OR GENERATE THAT WHICH IT DISTRIBUTES, TRANSMITS,
22 OR FURNISHES TO THE PUBLIC FOR COMPENSATION, BUT OBTAINS THE
23 SAME FROM ANOTHER SOURCE, THE COMMISSION SHALL HAVE THE POWER
24 AND AUTHORITY TO INVESTIGATE THE COST OF SUCH PRODUCTION OR
25 GENERATION IN ANY INVESTIGATION OF THE REASONABLENESS OF THE
26 RATES OF SUCH PUBLIC UTILITY.
27 (B) DEADLINE FOR DECISION.--BEFORE THE EXPIRATION OF A NINE-
28 MONTH PERIOD BEGINNING ON THE DATE OF THE COMMISSION'S MOTION OR
29 THE FILING OF A COMPLAINT PURSUANT TO SUBSECTION (A), A MAJORITY
30 OF THE MEMBERS OF THE COMMISSION SERVING IN ACCORDANCE WITH LAW,
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1 ACTING UNANIMOUSLY, SHALL MAKE A FINAL DECISION AND ORDER,
2 SETTING FORTH ITS REASONS THEREFOR. IF SUCH AN ORDER HAS NOT
3 BEEN MADE AT THE EXPIRATION OF SUCH NINE-MONTH PERIOD AND THE
4 MOTION OR COMPLAINT PURSUANT TO SUBSECTION (A) REQUESTED A
5 REDUCTION IN RATES, A FINAL DECISION AND ORDER OF THE COMMISSION
6 WHICH DETERMINES OR FIXES A RATE REDUCTION SHALL BE RETROACTIVE
7 TO THE EXPIRATION OF SUCH NINE-MONTH PERIOD, PROVIDED THAT
8 NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THE COMMISSION
9 FROM SETTING TEMPORARY RATES PURSUANT TO SECTION 1310 (RELATING
10 TO TEMPORARY RATES) PRIOR TO THE EXPIRATION OF SUCH NINE-MONTH
11 PERIOD AND GIVING SUCH EFFECT TO THE SETTING OF TEMPORARY RATES
12 AS IS OTHERWISE PERMITTED BY THIS TITLE. THIS SUBSECTION SHALL
13 APPLY ONLY WHEN THE REQUESTED REDUCTION IN RATES AFFECTS MORE
14 THAN 5% OF THE CUSTOMERS AND AMOUNTS TO IN EXCESS OF 3% OF THE
15 TOTAL GROSS ANNUAL INTRASTATE OPERATING REVENUES OF THE PUBLIC
16 UTILITY, PROVIDED THAT, IF THE PUBLIC UTILITY FURNISHES TWO OR
17 MORE TYPES OF SERVICE, THE FOREGOING PERCENTAGES SHALL BE
18 DETERMINED ONLY ON THE BASIS OF THE CUSTOMERS RECEIVING, AND THE
19 REVENUES DERIVED FROM, THE TYPE OF SERVICE TO WHICH THE
20 REQUESTED REDUCTION PERTAINS. THIS SUBSECTION SHALL NOT APPLY TO
21 ANY PROCEEDING INVOLVING A CHANGE IN RATES PROPOSED BY A PUBLIC
22 UTILITY PURSUANT TO SECTION 1307 (RELATING TO SLIDING SCALE OF
23 RATES; ADJUSTMENTS) OR 1308 (RELATING TO VOLUNTARY CHANGES IN
24 RATES).
25 SECTION 4 3. TITLE 66 IS AMENDED BY ADDING A SECTION TO <--
26 READ:
27 § 1326. Standby charge prohibited.
28 (a) Prohibition.--A public utility that furnishes water to
29 or for the public shall not impose a standby charge on owners of
30 RESIDENTIAL structures equipped with automatic fire protection <--
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1 systems.
2 (b) Definition.--As used in this section, the term "standby
3 charge" means an amount, in addition to the regular rate,
4 assessed against the owner of a RESIDENTIAL structure for the <--
5 reason that the RESIDENTIAL structure is equipped with an <--
6 automatic fire protection system.
7 Section 2 5 4. This act shall take effect in 60 days <--
8 IMMEDIATELY. <--
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