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SENATE AMENDED
PRIOR PRINTER'S NOS. 3022, 3776, 4071
PRINTER'S NO. 4249
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2075
Session of
2018
INTRODUCED BY CHARLTON, DRISCOLL, HEFFLEY, FLYNN, CORBIN,
BIZZARRO, QUIGLEY, BARRAR, SANTORA, SCHWEYER AND C. QUINN,
FEBRUARY 16, 2018
SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, OCTOBER 15, 2018
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
further providing for valuation of and return on the property
of a public utility.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1311(b) of Title 66 of the Pennsylvania
Consolidated Statutes is amended to read:
ยง 1311. Valuation of and return on the property of a public
utility.
* * *
(b) Method of valuation.--
(1) The value of the property of the public utility
included in the rate base shall be the original cost of the
property when first devoted to the public service less the
applicable accrued depreciation as such depreciation is
determined by the commission.
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(2) (i) The value of the property of a public utility
p roviding water OR WASTEWATER service shall include the
original cost incurred by the public utility for the
replacement of a customer-owned lead water service line
OR A CUSTOMER-OWNED DAMAGED WASTEWATER LATERAL , performed
concurrent with a scheduled utility main replacement
project OR UNDER A COMMISSION-APPROVED PROGRAM ,
notwithstanding that the customer will hold legal title
to the replacement water service line OR WASTEWATER
LATERAL .
(ii) The original cost of the replacement water
service line OR WASTEWATER LATERAL shall be deemed other
related capitalized costs that are part of the public
utility's distribution system.
(iii) The public utility incurring the cost under
subparagraph (i) may recover a return on, and a return
of, the cost that the commission determines to have been
prudently incurred and will help prevent adverse effects
on public health or public safety or help the public
utility comply with laws and regulations pertaining to
drinking water or environmental standards. The return on
costs permitted under this subparagraph may be recovered
for a period not to exceed 10 years from the date the
cost is incurred. FOR THE PURPOSE OF CALCULATING THE
RETURN OF AND ON A PUBLIC UTILITY'S PRUDENTLY INCURRED
COST FOR THE REPLACEMENT OF A WATER SERVICE LINE AND FOR
THE REPLACEMENT OF A WASTEWATER LATERAL THAT IS RECOVERED
IN A PUBLIC UTILITY'S BASE RATES OR DISTRIBUTION SYSTEM
IMPROVEMENT CHARGE, THE COMMISSION SHALL EMPLOY THE
EQUITY RETURN RATE FOR WATER AND WASTEWATER PUBLIC
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UTILITIES CALCULATIONS SET FORTH IN SECTION 1357(B)(2)
AND (3) (RELATING TO COMPUTATION OF CHARGE).
(iv) The commission may allocate the cost associated
with the replacement of a customer-owned lead water
service line OR CUSTOMER-OWNED DAMAGED WASTEWATER LATERAL
among each customer, classes of customers and types of
service.
(v) Notwithstanding any other provision of law to
the contrary, a public utility providing water OR
WASTEWATER service must obtain prior approval from the
commission for the replacement of a customer-owned lead
water service line OR CUSTOMER-OWNED DAMAGED WASTEWATER
LATERAL by filing a new tariff or supplement to existing
tariffs under section 1308 (relating to voluntary changes
in rates).
(vi) A new tariff or supplement to an existing
tariff approved by the commission under subparagraph (v)
shall include a cap on the maximum number of customer-
owned lead water service lines OR CUSTOMER-OWNED DAMAGED
WASTEWATER LATERALS that can be replaced annually.
( vii) The commission shall, by regulation or order,
establish standards, processes and procedures to:
(A) Ensure that work performed by a public
utility or the public utility's contractor to replace
a customer-owned lead water service line OR A
CUSTOMER-OWNED DAMAGED WASTEWATER LATERAL is
accompanied by a warranty of no less than 12 months
from the date the work is completed A TERM THAT THE
COMMISSION DETERMINES APPROPRIATE and the public
utility and the public utility's contractor has
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access to the affected customer's property during the
term of the warranty.
(B) Provide for a reimbursement to a customer
who has replaced the customer's lead water service
line OR CUSTOMER-OWNED DAMAGED WASTEWATER LATERAL
within four years ONE YEAR of commencement of a
project in accordance with a commission-approved
tariff.
(3) Nothing in this section shall be construed to limit
the existing ratemaking authority of the commission nor
invalidate or void any rates approved by the commission
before the effective date of this paragraph.
(4) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT
ANY PROVISION OR REQUIREMENT OF THE ACT OF MAY 1, 1984
(P.L.206, NO.43), KNOWN AS THE PENNSYLVANIA SAFE DRINKING
WATER ACT, OR THE REGULATIONS PROMULGATED THEREUNDER.
(5) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "LEAD
WATER SERVICE LINE" MEANS A SERVICE LINE MADE OF LEAD THAT
CONNECTS A WATER MAIN TO A BUILDING INLET AND A LEAD PIGTAIL,
GOOSENECK OR OTHER FITTING THAT IS CONNECTED TO THE LEAD
LINE.
* * *
Section 2. This act shall take effect in 60 days.
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