H2200B3176A05807 BIL:DM 02/08/08 #90 A05807 AMENDMENTS TO HOUSE BILL NO. 2200 Sponsor: REPRESENTATIVE FREEMAN Printer's No. 3176 1 Amend Title, page 1, line 2, by striking out "and" 2 Amend Title, page 1, line 4, by removing the period after 3 "response" and inserting 4 ; and further providing for duties of electric 5 distribution companies. 6 Amend Sec. 1 (Sec. 2803), page 3, line 3, by striking out all 7 of said line and inserting 8 "Real-time price." A rate that directly reflects the 9 different cost of energy during each hour. 10 * * * 11 "Smart meter technology." Technology, including, but not 12 limited to, metering technology and network communications 13 technology capable of bidirectional communication and that 14 records electricity usage on at least an hourly basis, including 15 related electric distribution system upgrades to enable the 16 technology. The technology shall provide customers with direct 17 access to and use of price and consumption information. The 18 technology shall also: 19 (1) Directly provide customers with information on their 20 hourly consumption. 21 (2) Enable time-of-use rates and real-time price 22 programs. 23 (3) Effectively support the automatic control of the 24 customer's electricity consumption by one or more of the 25 following as selected by the customer: 26 (i) the customer; 27 (ii) the customer's utility; or 28 (iii) a third party engaged by the customer or the 29 customer's utility. 30 "Time-of-use rate." A rate that reflects the costs of 31 serving customers during different time periods, including off- 32 peak and on-peak periods, but not as frequently as each hour. 33 Amend Bill, page 13, by inserting between lines 22 and 23 34 Section 3. Section 2807(e) of Title 66 is amended by adding 35 a paragraph to read: 36 § 2807. Duties of electric distribution companies.
1 * * * 2 (e) Obligation to serve.--* * * 3 (6) (i) Within nine months after the effective date of 4 this paragraph, electric distribution companies shall 5 file a smart meter technology procurement and 6 installation plan with the commission for approval and 7 make the plan available for public comment for a minimum 8 of 30 days. The plan shall describe the smart meter 9 technologies the electric distribution company proposes 10 to install, how the smart meter technology meets the 11 requirements of this paragraph and how the smart meter 12 technology shall be installed according to this 13 paragraph. In addition, the plan shall ensure that all 14 smart meter technology installation and maintenance work 15 shall be performed by adequately trained and qualified 16 personnel and that, to the extent practical, such work 17 shall be offered initially to employees of the electric 18 distribution company. 19 (ii) Electric distribution companies shall furnish 20 smart meter technology to: 21 (A) Customers responsible for 40% of the 22 distribution company's annual peak demand within four 23 years after the effective date of this paragraph. 24 (B) Customers responsible for 75% of the 25 distribution company's annual peak demand within six 26 years after the effective date of this paragraph. 27 (C) One hundred percent of its customers within 28 ten years after the effective date of this paragraph. 29 Electric distribution companies shall, with customer 30 consent, make available electronic access to customer 31 meter data to third parties, including electric 32 generation suppliers and providers of conservation and 33 load management services. 34 (iii) Electric distribution companies shall be 35 permitted to recover all reasonable and prudent costs, as 36 determined by the commission, of providing smart meter 37 technology, including annual deprecation and capital 38 costs over the life of the smart meter technology, that 39 are incurred after the effective date of this paragraph, 40 less all operating and capital costs savings realized by 41 the electric distribution company from the introduction 42 and use of the smart meter technology. An electric 43 distribution company may, at its option, recover such 44 smart meter technology costs: 45 (A) through base rates, including a deferral for 46 future base rate recovery of current costs, with 47 carrying charges equal to 6%; or 48 (B) on a full and current basis through a 49 reconcilable automatic adjustment clause under 50 section 1307 (relating to sliding scale of rates; 51 adjustments). 52 In no event shall lost or decreased revenues by an 53 electric distribution company due to reduced electricity 54 consumption or shifting energy demand be considered a 55 cost of smart meter technology. Smart meter technology 56 shall be deemed to be a new service offered for the first 57 time under section 2804(4)(vi) (relating to standards for 58 restructuring of electric industry). 59 (iv) By January 1, 2010, or at the end of the HB2200A05807 - 2 -
1 applicable generation rate cap period, whichever is 2 later, a default service provider shall submit to the 3 commission one or more proposed time-of-use rates and a 4 real-time price plan. The commission shall approve or 5 modify the time-of-use rates and real-time price plan 6 within six months of submittal. The default service 7 provider shall offer commission-approved time-of-use 8 rates and a real-time price plan to all residential and 9 commercial customers that have been provided with smart 10 meter technology within 60 days of installation of the 11 smart meter technology or commission approval of the 12 time-of-use rates and a real-time price plan, whichever 13 is later. Customer participation in time-of-use rates or 14 real-time pricing shall be voluntary and shall only be 15 provided with the affirmative consent of the customer. 16 The default service provider shall submit an annual 17 report to the commission on the participation in the 18 time-of-use and real-time price programs and the efficacy 19 of the programs in affecting energy demand and 20 consumption and the effect on wholesale market prices. 21 (v) For purposes of this paragraph, the term 22 "electric distribution company" shall mean a public 23 utility providing facilities for the jurisdictional 24 transmission and distribution of electricity to 100,000 25 or more retail customers in this Commonwealth. 26 Amend Sec. 3, page 13, line 23, by striking out "3" and 27 inserting 28 4 B8L90BIL/HB2200A05807 - 3 -