PRINTER'S NO. 1490
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1040
Session of
2015
INTRODUCED BY HARPER, BARRAR, GREINER, O'NEILL, WATSON, QUINN
AND COHEN, MAY 11, 2015
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 11, 2015
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
further providing for standby charge prohibited.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1326 of Title 66 of the Pennsylvania
Consolidated Statutes is amended to read:
ยง 1326. Standby charge prohibited.
(a) Prohibition.--A public utility that furnishes water to
or for the public shall not impose a standby charge on [owners]:
(1) Owners of residential structures equipped with
automatic fire protection systems.
(2) Volunteer fire companies, nonprofit rescue squads
and ambulance services, for costs associated with automatic
fire protection systems, that are owners or occupants of
structures equipped with automatic fire protection systems
who are ratepayers of record.
(a.1) Cost recovery.--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
(1) In determining the rates to be charged for automatic
fire protection systems by a public utility that furnishes
water to or for the public, the commission shall, as part of
a utility's general rate proceeding, provide for the recovery
of the costs of automatic fire protection systems in such a
manner that the customers specified in subsection (a)(2) are
not charged for more than 25 % of the cost of service for
those automatic fire protection systems, as such cost of
service is reasonably determined by the commission.
(2) The commission shall, as part of a utility's general
rate proceeding, provide for the recovery of the remaining
cost of service for those automatic fire protection systems
not recovered under paragraph (1) from the customers
specified in subsection (a)(2) by assessing all customers of
the public utility the remaining cost of service to the fire
protection systems. The remaining cost of service for those
fire protection systems shall be included in the public
utility's fixed or service charge or minimum bill.
(a.2) Effect on current rates.--Notwithstanding the
provisions of subsection (a.1), charges to volunteer fire
companies, nonprofit rescue squads and nonprofit ambulance
services that are in effect on the effective date of this
subsection shall continue to be charged until conclusion of the
public utility's next general rate proceeding.
(b) [Definition.--As used in this section, the term "standby
charge" means an amount, in addition to the regular rate,
assessed against the owner of a residential structure for the
reason that the residential structure is equipped with an
automatic fire protection system.] Definitions.--The following
words and phrases as used in this section shall have the
20150HB1040PN1490 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
meanings given to them in this subsection unless the context
clearly indicates otherwise:
"Cost of service." The actual water usage and capital
investment made by a public utility specifically for the purpose
of rendering fire protection service assessed against the owner
of a residential or commercial structure for the reason that the
structure is equipped with an automatic fire protection system.
"Standby charge." An amount, in addition to the cost of
service, allocated under subsection (a.1).
Section 2. This act shall take effect in 60 days.
20150HB1040PN1490 - 3 -
1
2
3
4
5
6
7
8
9
10