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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BOSCOLA, O'PAKE, FONTANA, HUGHES, WASHINGTON AND KITCHEN, MAY 27, 2009 |
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| REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, MAY 27, 2009 |
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| AN ACT |
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1 | Amending Title 66 (Public Utilities) of the Pennsylvania |
2 | Consolidated Statutes, providing for the definition of |
3 | "overall rate" and for rate phase-in plans. |
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 a definition 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 | "Overall rate." The sum of all retail rate schedule |
14 | components including the generation and transmission charges |
15 | charged by an electric distribution company or a competitive |
16 | electric generating supplier for electric service and including |
17 | all applicable riders and surcharges. |
18 | * * * |
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1 | Section 2. Title 66 is amended by adding a section to read: |
2 | § 2816. Rate phase-in plans. |
3 | (a) General rule.--Within 90 days of the effective date of |
4 | this section, each electric distribution company shall file a |
5 | competitively neutral phase-in plan with the commission to |
6 | provide all customers in each customer class the option to phase |
7 | in any initial increase in the price for generation service that |
8 | may occur upon the expiration of the generation rate cap for |
9 | such provider specified in section 2804(4) (relating to |
10 | standards for restructuring of electric industry) or a |
11 | restructuring plan in section 2806(f) (relating to |
12 | implementation, pilot programs and performance-based rates) and |
13 | ending no sooner than three years after such expiration date and |
14 | no later than five years after such expiration date. Customer |
15 | participation in any plan approved under this subsection shall |
16 | be voluntary. |
17 | (b) Conditions.--Each phase-in plan shall be subject to |
18 | commission approval and shall meet the following conditions: |
19 | (1) Such plan shall offer a gradual transition to prices |
20 | at the level permitted under a commission-approved |
21 | procurement plan under section 2807(e)(3.1) (relating to |
22 | duties of electric distribution companies) beginning on the |
23 | expiration date of the generation rate cap for the provider. |
24 | (2) The plan shall ensure that the annual percentage |
25 | increase in the overall rate charged to each customer class |
26 | under the plan shall be phased in in equal annual percentage |
27 | increases, provided that the increase in any one year shall |
28 | not exceed 10% of the overall rate in effect for the customer |
29 | class on the last day before the expiration of the generation |
30 | rate caps during the period specified in subsection (a). |
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1 | After appropriate notice and opportunity for hearing, the |
2 | commission may provide for an additional period of up to |
3 | three years for the recovery of deferred amounts under this |
4 | section. |
5 | (3) Such plan may offer the customer the option to begin |
6 | the phase-in period prior to the expiration of the generation |
7 | rate cap, provided that the customer accrues interest on any |
8 | prepaid amount at a rate of no less than 6% compounded |
9 | annually. Customer participation in any plan approved under |
10 | this subsection shall be voluntary. |
11 | (4) In the event a customer leaves the default service |
12 | provider's system prior to the full distribution of amounts |
13 | collected, a credit will be applied to the customer's final |
14 | bill and any remainder shall be refunded to the customer. |
15 | (5) Such plan shall specify the means of providing |
16 | notice to customers of the option to participate in such plan |
17 | on a voluntary basis. |
18 | (c) Recovery.--The default service provider shall be |
19 | eligible to fully recover the amount of the deferred payment |
20 | resulting from a customer's participation in the plan from such |
21 | customers. The charge shall be a reconcilable automatic |
22 | adjustment charge under section 1307 (relating to sliding scale |
23 | of rates; adjustments), shall be applied to participating |
24 | customers on a customer class basis, shall be included in other |
25 | charges on the electric distribution company's bill and shall |
26 | not appear as a separate line item on the customer's bill. |
27 | (d) Carrying charge not permitted.--The commission shall not |
28 | permit any carrying charge or compounded annual interest to be |
29 | applied by an electric distribution company to the deferred cost |
30 | or deferred payments from such customers. Only the amount of the |
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1 | deferred payment shall be eligible for recovery under |
2 | subsections (b) and (c). |
3 | (e) Deferred costs.--The commission shall permit such |
4 | deferred costs to be recorded for accounting purposes on an |
5 | electric distribution company's books of account as a regulatory |
6 | asset where the electric distribution company is the default |
7 | service provider. |
8 | (f) Intangible transition property.--An electric |
9 | distribution company's right to recover costs under an approved |
10 | phase-in plan shall be deemed intangible transition property for |
11 | purposes of section 2812 (relating to approval of transition |
12 | bonds), but not for any other section of Chapter 28 (relating to |
13 | restructuring of electric utility industry), and the commission |
14 | is authorized to issue a qualified rate order under section 2812 |
15 | with respect to such costs and to issue such other orders and |
16 | take such actions as may be necessary or proper for the electric |
17 | distribution company to issue transition bonds, as provided in |
18 | section 2812, secured by the electric distribution company's |
19 | right to recover such costs. |
20 | Section 3. The requirements of this act shall only apply to |
21 | electric distribution companies that, as of the effective date |
22 | of this act, are subject to a Pennsylvania Public Utility |
23 | Commission-approved generation rate cap that was initiated under |
24 | section 2804(4)(ii). |
25 | Section 4. This act shall take effect immediately. |
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