1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, further providing for duties of
3electric distribution companies.

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

6Section 1. Section 2807(f) of Title 66 of the Pennsylvania
7Consolidated Statutes is amended to read:

8§ 2807. Duties of electric distribution companies.

9* * *

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

11(1) [Within nine months after the effective date of this
12paragraph, electric] Electric distribution companies [shall] 
13may file a smart meter technology procurement and
14installation plan with the commission for approval. [The plan
15shall describe the smart meter technologies the electric
16distribution company proposes to install in accordance with
17paragraph (2).

1(2) Electric distribution companies shall furnish smart
2meter technology as follows:

3(i) Upon request from a customer that agrees to pay
4the cost of the smart meter at the time of the request.

5(ii) In new building construction.

6(iii) In accordance with a depreciation schedule not
7to exceed 15 years.]

8(3) Electric distribution companies shall, with customer
9consent, make available direct meter access and electronic
10access to customer meter data to third parties, including
11electric generation suppliers and providers of conservation
12and load management services.

13(4) In no event shall lost or decreased revenues by an
14electric distribution company due to reduced electricity
15consumption or shifting energy demand be considered any of
16the following:

17(i) A cost of smart meter technology recoverable
18under a reconcilable automatic adjustment clause under
19section 1307(b), except that decreased revenues and
20reduced energy consumption may be reflected in the
21revenue and sales data used to calculate rates in a
22distribution rate base rate proceeding filed under
23section 1308 (relating to voluntary changes in rates).

24(ii) A recoverable cost.

25(5) [By January 1, 2010, or at the end of the applicable
26generation rate cap period, whichever is later, a] A default
27service provider [shall] may submit to the commission one or
28more proposed time-of-use rates and real-time price plans.
29The commission shall approve or modify the time-of-use rates
30and real-time price plan within six months of submittal. The

1default service provider [shall] may offer the time-of-use
2rates and real-time price plan to all customers that have
3been provided with smart meter technology [under paragraph
4(2)(iii)]. Residential or commercial customers may elect to
5participate in time-of-use rates or real-time pricing. [The
6default service provider shall submit an annual report to the
7price programs and the efficacy of the programs in affecting
8energy demand and consumption and the effect on wholesale
9market prices.

10(6) The provisions of this subsection shall not apply to
11an electric distribution company with 100,000 or fewer

13(7) An electric distribution company may recover
14reasonable and prudent costs of providing smart meter
15technology [under paragraph (2)(ii) and (iii)], as determined
16by the commission[. This paragraph includes], including
17annual depreciation and capital costs over the life of the
18smart meter technology and the cost of any system upgrades
19that the electric distribution company may require to enable
20the use of the smart meter technology which are incurred
21after the effective date of this paragraph, less operating
22and capital cost savings realized by the electric
23distribution company from the installation and use of the
24smart meter technology. Smart meter technology shall be
25deemed to be a new service offered for the first time under
26section 2804(4)(vi). An electric distribution company may
27recover smart meter technology costs:

28(i) through base rates, including a deferral for
29future base rate recovery of current basis with carrying
30charge as determined by the commission[; or

1(ii) on a full and current basis through a
2reconcilable automatic adjustment clause under section

4* * *

5Section 2. This act shall take effect in 60 days.