THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HARPER, BARRAR, B. BOYLE, BRADFORD, BRIGGS, CALTAGIRONE, CHRISTIANA, CLYMER, CONKLIN, FABRIZIO, GABLER, GINGRICH, HAHN, HARHART, HARKINS, HORNAMAN, KILLION, KORTZ, MURT, O'NEILL, PYLE, SANTARSIERO, SCAVELLO, SCHRODER, SWANGER, TOEPEL, WATSON, YOUNGBLOOD, GIBBONS, KULA, HENNESSEY, MILNE, PRESTON AND BARBIN, JANUARY 19, 2011

AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 1, 2012   

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in rates and rate making, further

providing for standby charge prohibited. 

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1326(a) 1326 of Title 66 of the

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Pennsylvania Consolidated Statutes is amended to read:

§ 1326.  Standby charge prohibited.

(a)  Prohibition.--A public utility that furnishes water to

or for the public shall not impose a standby charge on [owners]:

(1)  Owners of residential structures equipped with

automatic fire protection systems.

(2)  Volunteer fire companies, nonprofit rescue squads

and ambulance services, for costs associated with automatic

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fire protection systems, that are owners or occupants of

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structures equipped with automatic fire protection systems

who are ratepayers of record.

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(a.1)  Cost recovery.--

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(1)  In determining the rates to be charged for automatic

fire protection systems by a public utility that furnishes

water to or for the public, the commission shall, as part of

a utility's general rate proceeding, provide for the recovery

of the costs of automatic fire protection systems in such a

manner that the customers specified in subsection (a)(2) are

not charged for more than 25% of the cost of service for

those automatic fire protection systems, as such cost of

service is reasonably determined by the commission.

(2)  The commission shall, as part of a utility's general

rate proceeding, provide for the recovery of the remaining

cost of service for those automatic fire protection systems

not recovered under paragraph (1) from the customers

specified in subsection (a)(2) by assessing all customers of

the public utility the remaining cost of service to the fire

protection systems. The remaining cost of service for those

fire protection systems shall be included in the public

utility's fixed or service charge or minimum bill.

(a.2)  Effect on current rates.--Notwithstanding the

provisions of subsection (a.1), standby charges to volunteer

fire companies, nonprofit rescue squads and nonprofit ambulance

services that are in effect on the effective date of this

subsection shall continue to be charged until conclusion of the

public utility's next general rate proceeding.

(b)  Definition.--[As used in this section, the term "standby

charge" means an amount, in addition to the regular rate,

assessed against the owner of a residential structure for the

reason that the residential structure is equipped with an

automatic fire protection system.] The following words and

phrases as used in this section shall have the meaning given to

them in this subsection unless the context clearly indicates

otherwise:

"Cost of service."  The actual water usage and capital

investment made by a public utility specifically for the purpose

of rendering fire protection service assessed against the owner

of a residential or commercial structure for the reason that the  

structure is equipped with an automatic fire protection system.

"Standby charge."  An amount, in addition to the cost of

service, allocated under subsection (a.1).

Section 2.  This act shall take effect in 60 days.