PRINTER'S NO. 2429
No. 1967 Session of 1991
INTRODUCED BY MRKONIC, AUGUST 3, 1991
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, AUGUST 3, 1991
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, requiring the approval of the Governor
3 for rate increases granted to public utilities by the
4 Pennsylvania Public Utility Commission.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 1308(d) of Title 66 of the Pennsylvania
8 Consolidated Statutes is amended to read:
9 § 1308. Voluntary changes in rates.
10 * * *
11 (d) General rate increases.--Whenever there is filed with
12 the commission by any public utility described in paragraph
13 (1)(i), (ii), (vi) or (vii) of the definition of "public
14 utility" in section 102 (relating to definitions), and such
15 other public utility as the commission may by rule or regulation
16 direct, any tariff stating a new rate which constitutes a
17 general rate increase, the commission shall promptly enter into
18 an investigation and analysis of said tariff filing and may by
1 order setting forth its reasons therefor, upon complaint or upon
2 its own motion, upon reasonable notice, enter upon a hearing
3 concerning the lawfulness of such rate, and the commission may,
4 at any time by vote of a majority of the members of the
5 commission serving in accordance with law, [permit such tariff
6 to become effective, except that absent] send a recommendation
7 to the Governor permitting the tariff to become effective. If
8 the Governor returns the recommendation to the commission
9 unsigned within 90 days of the Governor's receipt of the
10 recommendation, the rate increase may not take effect. If the
11 Governor signs the recommendation or fails to return it to the
12 commission unsigned within 90 days of the Governor's receipt of
13 the recommendation, the commission shall order that the tariff
14 take effect. Absent such order such tariff shall be suspended
15 for a period not to exceed seven months from the time such rate
16 would otherwise become effective. Before the expiration of such
17 seven-month period, a majority of the members of the commission
18 serving in accordance with law, acting unanimously, shall, in
19 cases of total approval or disapproval, make a final decision
20 and order, setting forth its reasons [therefor, granting or] for
21 denying[, in whole or in part,] the entire general rate increase
22 requested[.] or make a recommendation to the Governor approving
23 the entire general rate increase requested and shall, in cases
24 of partial approval or disapproval, make a final decision and
25 order, setting forth its reasons for denying the applicable part
26 of the general rate increase requested and make a recommendation
27 to the Governor approving the applicable part of the general
28 rate increase requested. If the Governor returns the
29 recommendation to the commission unsigned within 90 days of the
30 Governor's receipt of the recommendation, the tariff may not
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1 take effect. If the Governor signs the recommendation or fails
2 to return it unsigned within 90 days of the Governor's receipt
3 of the recommendation, the commission shall order that the
4 tariff take effect. If, however, such an order has not been made
5 at the expiration of such seven-month period, the proposed
6 general rate increase shall go into effect at the end of such
7 period unless the Governor has timely returned an unsigned
8 recommendation for it to the commission, but the commission may
9 by order require the interested public utility to refund, in
10 accordance with section 1312 (relating to refunds), to the
11 persons in whose behalf such amounts were paid, such portion of
12 such increased rates as by its decision shall be found not
13 justified, plus interest, which shall be the average rate of
14 interest specified for residential mortgage lending by the
15 Secretary of Banking in accordance with the act of January 30,
16 1974 (P.L.13, No.6), referred to as the Loan Interest and
17 Protection Law, during the period or periods for which the
18 commission orders refunds. The rate in force when the tariff
19 stating such new rate was filed shall continue in force during
20 the period of suspension unless the commission shall grant
21 extraordinary rate relief as prescribed in subsection (e). The
22 commission shall consider the effect of such suspension in
23 finally determining and prescribing the rates to be thereafter
24 charged and collected by such public utility, except that the
25 commission shall have no authority to prescribe, determine or
26 fix, at any time during the pendency of a general rate increase
27 proceeding or prior to a final determination of a general rate
28 increase request, temporary rates as provided in section 1310,
29 which rates may provide retroactive increases through
30 recoupment. As used in this part general rate increase means a
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1 tariff filing which affects more than 5% of the customers and
2 amounts to in excess of 3% of the total gross annual intrastate
3 operating revenues of the public utility. If the public utility
4 furnishes two or more types of service, the foregoing
5 percentages shall be determined only on the basis of the
6 customers receiving, and the revenues derived from, the type of
7 service to which the tariff filing pertains.
8 * * *
9 Section 2. This act shall take effect in 60 days.
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