PRINTER'S NO. 49
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
57
Session of
2015
INTRODUCED BY PAYNE, BARRAR AND EVERETT, JANUARY 21, 2015
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JANUARY 21, 2015
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates, further providing for
sliding scale of rates and adjustments; and, in natural gas
competition, further providing for duties of natural gas
distribution companies.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1307(f)(5) and (6) of Title 66 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 1307. Sliding scale of rates; adjustments.
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(f) Recovery of natural gas costs.--
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(5) The commission, after hearing, shall determine the
portion of the company's natural gas distribution actual
natural gas costs in the previous 12-month period which meet
the standards set out in section 1318. The commission shall,
by order, direct each natural gas distribution company
subject to this subsection to refund to its customers gas
revenues collected pursuant to paragraph (2) which exceed the
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amount of actual natural gas costs incurred consistent with
the standards in section 1318 and to recover from its
customers any amount by which the actual natural gas costs,
which have been incurred consistent with the standards in
section 1318, exceed the revenues collected pursuant to
paragraph (2). Absent good reason to the contrary, the
commission shall issue its order within six months following
the filing of the statement described in paragraph (3).
[Refunds to customers shall be made with interest, at the
legal rate of interest plus two percent, during the period or
periods for which the commission orders refunds, and
recoveries from customers shall include interest at the legal
rate of interest: Provided, That nothing contained herein
shall limit the applicability of any defenses, principles or
doctrines which would prohibit the commission's inquiry into
any matters that were decided finally in the commission's
order issued under paragraph (2).] Refunds to customers shall
be made with and recoveries from customers shall include
interest at the prime rate for commercial borrowing in effect
60 days prior to the tariff filing made under paragraph (1)
and as reported in a publicly available source identified by
the commission or at an interest rate which may be
established by the commission by regulation. Nothing under
this paragraph shall limit the applicability of a defense,
principle or doctrine which would prohibit the commission's
inquiry into matters that were decided finally in the
commission's order issued under paragraph (2).
(6) [The commission shall require that customers
transferring from sales to transportation service be subject
to the over-or-under collection adjustment provided for in
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paragraph (5) and shall require further that customers
transferring from transportation service to sales service not
be subject to the over-or-under collection adjustment for an
appropriate period following either such transfer.] If the
natural gas distribution company's actual natural gas costs
exceed the revenues collected under paragraph (2) by more
than 10% in the previous 12-month period provided for under
paragraph (5) due to customers switching from sales service
to transportation service, the natural gas distribution
company shall have the right to fully recover the under-
collection through a nonbypassable charge. A request for
authorization to impose a nonbypassable charge shall be made
to the commission in a natural gas distribution company's
annual filing under this section or at the time of the
filing.
* * *
Section 2. Section 2205(c) of Title 66 is amended by adding
a paragraph to read:
§ 2205. Duties of natural gas distribution companies.
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(c) Customer billing.--
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(7) Natural gas distribution companies shall have the
right to recover on a full and current basis all prudent and
reasonable costs incurred to implement customer choice from
retail natural gas customers or other entities as determined
by the commission. Recovery from retail natural gas customers
shall be made pursuant to a reconcilable automatic adjustment
clause under section 1307 (relating to sliding scale of
rates; adjustments).
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Section 3. This act shall take effect in 60 days.
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