1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, in rates and distribution systems,
3further providing for standby charge prohibited.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1.  Section 1326 of Title 66 of the Pennsylvania
7Consolidated Statutes is amended to read:

8§ 1326.  Standby charge prohibited.

9(a)  Prohibition.--A public utility that furnishes water to
10or for the public shall not impose a standby charge on [owners]:

11(1)  Owners of residential structures equipped with
12automatic fire protection systems.

13(2)  Volunteer fire companies, nonprofit rescue squads
14and ambulance services, for costs associated with automatic
15fire protection systems, that are owners or occupants of
16structures equipped with automatic fire protection systems
17who are ratepayers of record.

18(a.1)  Cost recovery.--

1(1)  In determining the rates to be charged for automatic
2fire protection systems by a public utility that furnishes
3water to or for the public, the commission shall, as part of
4a utility's general rate proceeding, provide for the recovery
5of the costs of automatic fire protection systems in such a
6manner that the customers specified in subsection (a)(2) are
7not charged for more than 25% of the cost of service for
8those automatic fire protection systems, as such cost of
9service is reasonably determined by the commission.

10(2)  The commission shall, as part of a utility's general
11rate proceeding, provide for the recovery of the remaining
12cost of service for those automatic fire protection systems
13not recovered under paragraph (1) from the customers
14specified in subsection (a)(2) by assessing all customers of
15the public utility the remaining cost of service to the fire
16protection systems. The remaining cost of service for those
17fire protection systems shall be included in the public
18utility's fixed or service charge or minimum bill.

19(a.2)  Effect on current rates.--Notwithstanding the
20provisions of subsection (a.1), charges to volunteer fire
21companies, nonprofit rescue squads and nonprofit ambulance
22services that are in effect on the effective date of this
23subsection shall continue to be charged until conclusion of the
24public utility's next general rate proceeding.

25(b)  [Definition.--As used in this section, the term "standby 
26charge" means an amount, in addition to the regular rate, 
27assessed against the owner of a residential structure for the 
28reason that the residential structure is equipped with an 
29automatic fire protection system.] Definitions.--The following 
30words and phrases as used in this section shall have the 

1meanings given to them in this subsection unless the context 
2clearly indicates otherwise:

3"Cost of service."  The actual water usage and capital 
4investment made by a public utility specifically for the purpose 
5of rendering fire protection service assessed against the owner 
6of a residential or commercial structure for the reason that the  
7structure is equipped with an automatic fire protection system. 

8"Standby charge."  An amount, in addition to the cost of 
9service, allocated under subsection (a.1).

10Section 2.  This act shall take effect in 60 days.