THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY REESE, EVANKOVICH, DUNBAR, BAKER, COX, CREIGHTON, GEORGE, GOODMAN, GROVE, HARHAI, HENNESSEY, JOSEPHS, LAWRENCE, MAHER, MALONEY, MURT, O'NEILL, PETRARCA, PICKETT, RAPP, SWANGER AND TALLMAN, FEBRUARY 8, 2012

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 8, 2012  

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, further providing for duties of

electric distribution companies.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2807(f) of Title 66 of the Pennsylvania

Consolidated Statutes is amended by adding a clause to read:

§ 2807.  Duties of electric distribution companies.

  * * *

(f)  Smart meter technology and time of use rates.--

(1)  Within nine months after the effective date of this

paragraph, electric distribution companies shall file a smart

meter technology procurement and installation plan with the

commission for approval. The plan shall describe the smart

meter technologies the electric distribution company proposes

to install in accordance with paragraph (2).

(2)  Electric distribution companies shall furnish smart

meter technology as follows:

(i)  Upon request from a customer that agrees to pay

the cost of the smart meter at the time of the request.

(ii)  In new building construction.

(iii)  In accordance with a depreciation schedule not

to exceed 15 years.

(iv)  Customers may request to opt out of receiving

smart meter technology under subparagraph (iii) by

notifying, in writing, the electric distribution company.

Meters for customers who opt out will be replaced

according to a useful life depreciation schedule.

(3)  Electric distribution companies shall, with customer

consent, make available direct meter access and electronic

access to customer meter data to third parties, including

electric generation suppliers and providers of conservation

and load management services.

(4)  In no event shall lost or decreased revenues by an

electric distribution company due to reduced electricity

consumption or shifting energy demand be considered any of

the following:

(i)  A cost of smart meter technology recoverable

under a reconcilable automatic adjustment clause under

section 1307(b), except that decreased revenues and

reduced energy consumption may be reflected in the

revenue and sales data used to calculate rates in a

distribution rate base rate proceeding filed under

section 1308 (relating to voluntary changes in rates).

(ii)  A recoverable cost.

(5)  By January 1, 2010, or at the end of the applicable

generation rate cap period, whichever is later, a default

service provider shall submit to the commission one or more

proposed time-of-use rates and real-time price plans. The

commission shall approve or modify the time-of-use rates and

real-time price plan within six months of submittal. The

default service provider shall offer the time-of-use rates

and real-time price plan to all customers that have been

provided with smart meter technology under paragraph (2)

(iii). Residential or commercial customers may elect to

participate in time-of-use rates or real-time pricing. The

default service provider shall submit an annual report to the

price programs and the efficacy of the programs in affecting

energy demand and consumption and the effect on wholesale

market prices.

(6)  The provisions of this subsection shall not apply to

an electric distribution company with 100,000 or fewer

customers.

(7)  An electric distribution company may recover

reasonable and prudent costs of providing smart meter

technology under paragraph (2)(ii) and (iii), as determined

by the commission. This paragraph includes annual

depreciation and capital costs over the life of the smart

meter technology and the cost of any system upgrades that the

electric distribution company may require to enable the use

of the smart meter technology which are incurred after the

effective date of this paragraph, less operating and capital

cost savings realized by the electric distribution company

from the installation and use of the smart meter technology.

Smart meter technology shall be deemed to be a new service

offered for the first time under section 2804(4)(vi). An

electric distribution company may recover smart meter

technology costs:

(i)  through base rates, including a deferral for

future base rate recovery of current basis with carrying

charge as determined by the commission; or

(ii)  on a full and current basis through a

reconcilable automatic adjustment clause under section

1307.

* * *

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