PRINTER'S NO. 2881
No. 2017 Session of 2007
INTRODUCED BY FREEMAN, ROSS, BENNINGTON, BRENNAN, CALTAGIRONE,
COHEN, CREIGHTON, DePASQUALE, GEORGE, GINGRICH, HARKINS,
HENNESSEY, JAMES, JOSEPHS, KORTZ, KULA, MAHONEY, MANDERINO,
McGEEHAN, McILVAINE SMITH, MELIO, MILNE, MUNDY, M. O'BRIEN,
PARKER, PASHINSKI, QUINN, RUBLEY, SABATINA, SANTONI, SHIMKUS,
K. SMITH, TANGRETTI, VITALI, WALKO, WOJNAROSKI AND
YOUNGBLOOD, NOVEMBER 21, 2007
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
NOVEMBER 21, 2007
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, adding definitions; and further
3 providing for duties of electric distribution companies.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 2803 of Title 66 of the Pennsylvania
7 Consolidated Statutes is amended by adding definitions to read:
8 § 2803. Definitions.
9 The following words and phrases when used in this chapter
10 shall have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 * * *
13 "Real-time price." A rate that directly reflects the
14 different cost of energy during each hour.
15 * * *
1 "Smart-meter technology." Technology including, but not
2 limited to, metering technology, capable of bidirectional
3 communication that records and allows customers to monitor their
4 electricity usage and electricity prices on an hourly basis and
5 that supports the automatic control of consumption of
6 electricity by the customer or the customer's utility on a
7 voluntary basis.
8 "Time-of-use rate." A rate that reflects the costs of
9 serving customers during different time periods, including off-
10 peak and on-peak periods, but not as frequently as each hour.
11 * * *
12 Section 2. Section 2807(e) of Title 66, is amended by adding
13 a paragraph to read:
14 § 2807. Duties of electric distribution companies.
15 * * *
16 (e) Obligation to serve.--An electric distribution company's
17 obligation to provide electric service following implementation
18 of restructuring and the choice of alternative generation by a
19 customer is revised as follows:
20 * * *
21 (6) (i) Within six months of the effective date of this
22 paragraph, electric distribution companies shall file a
23 smart meter procurement and installation plan with the
24 commission and make the plan available for public comment
25 for a minimum of 30 days. The plan shall describe the
26 smart metering technologies the electric distribution
27 company proposes to install, the manner in which the
28 smart meters meet the requirements of this paragraph, and
29 that smart meters will be installed according to this
30 paragraph. Within 60 days of the close of the public
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1 comment period, the electric distribution company shall
2 provide a written public response to the comments and
3 amend the plan as it deems appropriate. Commission
4 approval of the plan is not required.
5 (ii) Electric distribution companies shall furnish
6 40% of their customers with smart meter technology within
7 three years after the effective date of this paragraph,
8 80% of their customers with smart meter technology within
9 six years after the effective date of this paragraph and
10 100% of its customers with smart meter technology within
11 nine years after the effective date of this paragraph.
12 (iii) Electric distribution companies shall have a
13 right to recover all costs associated with the
14 development, management, financing, implementation,
15 provision, operation and evaluation of time-of-use rates,
16 real-time pricing, metering and associated technology and
17 systems under this section, less all operating and
18 capital cost savings to the electric distribution company
19 from the introduction and use of the smart meters.
20 Electric distribution companies may recover the costs of
21 smart meters through a base rate proceeding or may either
22 defer for future recovery, with carrying charges equal to
23 6% or recover through a reconcilable automatic adjustment
24 clause under section 1307 (relating to sliding scale of
25 rates; adjustments), the net costs of such technologies.
26 (iv) If the electric distribution company elects to
27 defer costs or to recover costs under a reconcilable
28 automatic adjustment clause under subparagraph (iii), the
29 electric distribution company must file a base rate case
30 under section 1308 (relating to voluntary changes in
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1 rates) within three years of the commencement of such
2 deferral or cost recovery. All costs and benefits of
3 these technologies shall be reflected in the base rate
4 case on a prospective basis.
5 (v) By January 1, 2010, or at the end of the
6 applicable generation rate cap period, whichever is
7 later, a default service provider shall submit to the
8 commission one or more proposed time-of-use rates and a
9 real-time price plan. The commission shall approve or
10 modify the time-of-use rates and real-time price plan
11 within six months of submittal. The default service
12 provider shall offer commission approved time-of-use
13 rates and a real-time price plan to all residential and
14 commercial customers that have been provided with smart
15 meters within 60 days of installation of the smart meter
16 or commission approval of the time-of-use rates and a
17 real-time price plan, whichever is later. Customer
18 participation in time-of-use rates or real-time pricing
19 shall be voluntary. The default service provider shall
20 submit an annual report to the commission on the
21 participation in the time-of-use and real-time price
22 programs and the efficacy of the programs in affecting
23 energy demand and consumption and the effect on wholesale
24 market prices.
25 Section 3. This act shall take effect in 60 days.
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