PRIOR PRINTER'S NOS. 823, 1008, 1146
PRINTER'S NO. 1213
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY YAW, PILEGGI, TOMLINSON, VULAKOVICH, VOGEL, WARD, ERICKSON, MENSCH, GREENLEAF, GORDNER, WHITE, ROBBINS, VANCE, WOZNIAK, RAFFERTY, COSTA, BAKER, WAUGH, BREWSTER AND BROWNE, APRIL 3, 2013
AS AMENDED ON THIRD CONSIDERATION, JUNE 11, 2013
5Section 1. Short title.
8Section 2. Definitions.
12"Commission." The Pennsylvania Public Utility Commission.
1service within an existing certificated service area.
2"Extension project." New construction of a service line,
3main extension or pipeline to provide natural gas service to one
4or more residential, commercial or industrial entities not
5receiving natural gas service and for which a certificate of
6public convenience is required under 66 Pa.C.S. § 1102 (relating
7to enumeration of acts requiring certificate) which is not
8within the current certificate of public convenience territory
9issued by the commission to the natural gas distribution
14Section 3. Distribution system extension and expansion plan.
15(a) Submission.--Within nine months after the effective date
16of this section, or within two years after a franchise territory
17is awarded, each natural gas distribution utility shall submit a
18plan to the commission. The plan shall be updated triennially
19unless sooner requested by the commission. The plan shall
20include the following:
30(4) The plan shall contain the following information:
4(ii) A three-year projection for expansion projects,
5along with accompanying data, that is based upon the
6length and cost of the required expansions and the
7numbers of customers affected for each potential project
8demonstrating a reasonable increase in the service area
9of customers per year.
21(b) Commission review.--The commission shall review the plan
22submitted under subsection (a) for adequacy and completeness and
23may seek additional information as necessary. If the commission
24believes the plan does not meet the requirements of this act,
25the commission shall reject the plan and order the natural gas
26distribution utility to submit a revised plan. Any changes to
27the plan may require additional commission review.
3(d) Periodic review.--The commission shall promulgate
4regulations for the periodic review of distribution system
5extension and expansion plans submitted under subsection (a),
6including standards to ensure expansion and accessibility to
7residential, commercial and industrial users. The regulations
8may authorize a natural gas distribution utility to revise,
9update or submit a new plan as appropriate.
14Section 4. Customer contributions.
26(3) A reasonable period of time based on the customer
27contribution, which shall not be less than ten years or a
28lesser period of time by mutual agreement between the
29prospective customer and the natural gas distribution
30utility, in which customers will reimburse the natural gas
7(5) Reasonable refund provisions to the original
8customers as other customers receive service from the
9extension or expansion of service to the original customers.
10The refund period shall begin upon date of service and shall
11be for a period of not less than five years unless otherwise
12approved by the commission.
13(6) Support for the economic test used to determine the
14customer contribution for line extensions and comparisons
15with other economic tests, such as a net revenue screen or
16net present value method.
22Section 5. Notification.
23The natural gas distribution utility shall provide
24notification to all its customers of its distribution system
25extension and expansion plan and customer contribution criteria
26at least once a year. The initial notification shall be included
27in the monthly bill of the customer. After initial notification,
28notice of the distribution system extension and expansion plan
29and customer contribution criteria shall be posted on the
30natural gas distribution utility's Internet website.
1Section 6. Bona fide request program.
2(a) Provision.--A natural gas distribution utility shall
3provide, as part of the plan, a bona fide request program in
4areas where it does not provide service or for expansion of
5service and the manner in which customers will be charged for
6expansion. The plan shall provide for priority of extension or
7expansion projects if there is any of the following:
8(1) A large aggregation of residential, commercial or
9industrial entities who ask to obtain or expand service.
10Expedited consideration shall be based on the number of
11potential customers, the density of the area seeking service,
12the potential usage and the cost of extending or expanding
17(b) Description.--The natural gas distribution utility shall
18provide the commission with a written description of the
19program, a sample request for prioritization of extension or
20expansion projects, explanation of how the outreach program
21could expand its customer class, how geographic issues will be
22evaluated and the form of any agreement prospective customers
23will be required to execute in connection with receiving the gas
28Section 7. Commission.
5(b) Eligible costs.--The commission shall establish
6standards to ensure that work on extension and expansion of
7service is performed by qualified employees of either the
8natural gas distribution utility or an independent contractor in
9a manner that protects system reliability and safety of the
11(c) Order.--If the commission determines that the
12distribution system extension and expansion plan is inadequate
13to provide reasonable access to natural gas services by
14residential, commercial or industrial customers, the commission
15shall revise the natural gas distribution utility's plan and
16customer contribution criteria to ensure reasonable access.
17Section 8. Audit.
21(1) Audit at intervals as determined by the commission.
24(b) Interest on excess charges.--If revenue received from
25charges under this act exceeds actual costs, the excess received
26shall be refunded with interest to the customer. Interest on
27excess collections shall be calculated at the residential
28mortgage lending rate specified by the Secretary of Banking
29under the act of January 30, 1974 (P.L.13, No.6), referred to as
30the Loan Interest and Protection Law, and shall be refunded in
1the same manner as an excess collection to the customer.
2Section 9. Applicability.
6Section 20. Effective date.
7This act shall take effect in 30 days.