H1294B2050A05286     JKL:EAZ  09/28/11     #90        A05286

AMENDMENTS TO HOUSE BILL NO. 1294

Sponsor: REPRESENTATIVE DePASQUALE

Printer's No. 2050

Amend Bill, page 4, lines 17 through 30, by striking out all

of said lines and inserting

(d)  Commission.--Prior to the filing of any alternative

regulatory mechanism by a fixed utility or a city natural gas

distribution operation, the commission, by regulation or order,

shall:

(1)  Establish safety and reliability standards and

reporting requirements for each type of fixed utility or city

natural gas distribution operation. The reporting

requirements shall include the identification of the worst

performing or most at-risk distribution segments of a

utility's or city natural gas distribution operation's

distribution systems.

(2)  Provide for reasonable allocation of costs to the

customer class responsible for the costs.

(3)  For any mechanism authorized by subsection (b)(2)(i)

(B):

(i)  Provide for credits to customer accounts for

overcollections and collections for ineligible projects.

(ii)  Provide for charges to customer accounts for

undercollections.

(iii)  Provide for a cap of 6% of total revenues

associated with distribution service on the amount that

may be collected from customers.

(4)  Establish installation standards designed to ensure

that the work performed on projects whose costs will be

recovered through an alternative regulatory mechanism will be

performed in a manner that protects the safety of the public.

The installation standards shall require, at a minimum, that:

(i)  The work performed on projects whose costs will

be recovered through an alternative regulatory mechanism

shall be performed by qualified employees of the utility

or city natural gas distribution operation, unless the

utility or city natural gas distribution operation shall

first demonstrate to the commission, after notice and an

opportunity to be heard is provided to representatives of

the utility's or city natural gas distribution

operation's employees, that it is not feasible or

economical for the work to be performed by the employees.

The costs of the work that is not performed by the

qualified employees, or for which the commission has not

issued a waiver prior to the work being performed, shall

not be eligible for recovery through an alternative

regulatory mechanism.

(ii)  For any work on projects whose costs will be

recovered through an alternative regulatory mechanism for

a natural gas distribution utility or city natural gas

distribution operation, the work shall have an inspector

from the utility assigned to each job and this inspector

shall work the same schedule and hours as the contractor.

The cost of the work that is not inspected shall not be

eligible for recovery through an alternative regulatory

mechanism.

(iii)  For any work on projects whose costs will be

recovered through an alternative regulatory mechanism for

a natural gas distribution utility or city natural gas

distribution operation, the natural gas distribution

utility or city natural gas distribution operation shall

ensure that the construction, maintenance and inspection

work is performed by individuals who have received

operator qualification certification under the

requirements and procedures set forth in 49 C.F.R. Pt.

192 Subpt. N (relating to qualification of pipeline

personnel) or successor requirements and procedures. The

costs of the work that is not performed in its entirety

by individuals with operator qualification certification

shall not be eligible for recovery through an alternative

regulatory mechanism.

(iv)  For any work on projects whose costs will be

recovered through an alternative regulatory mechanism,

the work that is performed on customers' property,

including, but not limited to, work involving customer

service lines and meters, shall be performed by qualified

employees of the utility or city natural gas distribution

operation. The costs of the work on customers' property

that is not performed in its entirety by the employees

shall not be eligible for recovery through an alternative

regulatory mechanism.

(5)  Provide for a cap on the amount that may be