PRINTER'S NO. 1202
No. 1048 Session of 1975
INTRODUCED BY WAGNER, HASAY, M. E. MILLER JR., HASKELL AND
PRATT, APRIL 16, 1975
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, APRIL 21, 1975
AN ACT
1 Amending the act of May 28, 1937 (P.L.1053, No.286), entitled
2 "An act relating to the regulation of public utilities;
3 defining as public utilities certain corporations, companies,
4 associations, and persons; providing for the regulation of
5 public utilities, including, to a limited extent,
6 municipalities engaging in public utility business, by
7 prescribing, defining, and limiting their duties, powers, and
8 liabilities, and regulating the exercise, surrender or
9 abandonment of their powers, privileges, and franchises;
10 defining and regulating contract carriers by motor vehicle
11 and brokers in order to regulate effectively common carriers
12 by motor vehicle; conferring upon the Pennsylvania Public
13 Utility Commission the power and duty of supervising and
14 regulating persons, associations, companies, and
15 corporations, including, to a limited extent, municipal
16 corporations subject to this act, and administering the
17 provisions of this act; authorizing the commission to fix
18 temporary rates; placing the burden of proof on public
19 utilities to sustain their rates and certain other matters;
20 authorizing a permissive or mandatory sliding scale method of
21 regulating rates; providing for the supervision of financial
22 and contractural relations between public utilities and
23 affiliated interests, and supervision and regulation of
24 accounts and securities or obligations issued, assumed, or
25 kept by persons, associations, companies, corporations or
26 municipal corporations subject to this act; conferring upon
27 the commission power to vary, reform, or revise certain
28 contracts; conferring upon the commission the exclusive power
29 to regulate or order the construction, alteration,
30 relocation, protection, or abolition of crossings of
31 facilities of public utilities, and of such facilities by or
32 over public highways, to appropriate property for the
33 construction or improvement of such crossings, and to award
34 or apportion resultant costs and damages; authorizing owners
1 of such property to sue the Commonwealth for such damages;
2 providing for ejectment proceedings in connection with the
3 appropriation of property for crossings; conferring upon the
4 commission power to control and regulate budgets of public
5 utilities; imposing upon persons, associations, companies,
6 and corporations (except municipal corporations) subject to
7 regulation, the cost of administering this act; prescribing
8 and regulating practice and procedure before the commission
9 and procedure for review by the courts of commission action;
10 giving the court of common pleas of Dauphin County exclusive
11 original jurisdiction over certain proceedings; prescribing
12 penalties, fines, and imprisonment for violations of the
13 provisions of this act and regulations and orders of the
14 commission, and the procedure for enforcing such fines and
15 penalties; and repealing legislation supplied and superseded
16 by or inconsistent with this act," further providing for a
17 determination of a just and reasonable return and providing
18 that certain costs not be considered for rate making
19 purposes.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Subsection (c) of section 701, act of May 28,
23 1937 (P.L.1053, No.286), known as the "Public Utility Law," is
24 amended to read:
25 * * *
26 (c) [The commission shall have authority at any time to
27 investigate every such contract filed in accordance with this
28 section, and, if after reasonable notice and hearing, it shall
29 determine that the amounts paid or payable thereunder are in
30 excess of the reasonable cost of furnishing the services
31 provided for in the contract, or that such services are not
32 reasonably necessary and proper, it shall order such amounts, in
33 so far as found excessive, to be stricken from the books of
34 account of the public utility as charges to fixed capital, or
35 operating expenses, as the case may be, and shall not consider
36 such amounts in any proceeding. In any proceeding involving such
37 amounts, the burden of proof to show that such amounts are not
38 in excess of the reasonable cost of furnishing such services,
39 and that such services are reasonable and proper, shall be on
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1 the public utility.] All costs and accounts paid to affiliated
2 interests shall not be considered an item of operating expense
3 for rate making purposes to the extent of the affiliation
4 computed on a proportionate basis.
5 Section 2. This act shall take effect immediately.
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