SENATE AMENDED
        PRIOR PRINTER'S NOS. 533, 1619                PRINTER'S NO. 3394

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 489 Session of 1977


        INTRODUCED BY MESSRS. COWELL, PYLES, COLE, GARZIA, REED, CESSAR,
           HALVERSON, PRATT, KUSSE, ABRAHAM, MRS. GILLETTE, MESSRS.
           SCHMITT AND BITTINGER, MARCH 7, 1977

        SENATOR KURY, CONSUMER AFFAIRS, IN SENATE, AS AMENDED, JUNE
           12, 1978

                                     AN ACT

     1  Amending Title 66 (Public Utilities) of the Pennsylvania
     2     Consolidated Statutes, adding provisions relating to public
     3     utilities and making repeals.

     4                         TABLE OF CONTENTS
     5                              TITLE 66
     6                          PUBLIC UTILITIES
     7                    PART I.  PUBLIC UTILITY CODE
     8                 SUBPART A.  PRELIMINARY PROVISIONS
     9  Chapter 1.  General Provisions
    10  § 101.  Short title of part.
    11  § 102.  Definitions.
    12  § 103.  Prior rights preserved.
    13  § 104.  Interstate and foreign commerce.
    14  Chapter 3.  Public Utility Commission
    15     Subchapter A.  General Provisions
    16  § 301.  Establishment, members, qualifications and chairman.
    17  § 302.  Removal of commissioner.

     1  § 303.  Seal. certified documents.                                <--
     2  § 304.  Administrative law judges.
     3  § 305.  Secretary, employees and consultants.
     4  § 306.  Counsel.
     5  § 307.  Inspectors for enforcement.
     6  § 308.  Bureaus.
     7  § 309.  Oaths and subpoenas.
     8  § 310.  Depositions.
     9  § 311.  Witness fees.
    10  § 312.  Privilege and immunity.
    11  § 313.  Joint hearings and investigations; reciprocity.
    12  § 314.  Investigation of interstate rates, facilities and
    13          service.
    14  § 315.  Burden of proof.
    15  § 316.  Effect of commission action.
    16  § 317.  Fees for services rendered by commission.
    17  § 318.  Commission to cooperate with other departments.
    18  § 319.  Code of ethics.
    19     Subchapter B.  Investigations and Hearings
    20  § 331.  Powers of commission and administrative law judges.
    21  § 332.  Procedures in general.
    22  § 333.  Prehearing procedures.
    23  § 334.  Presiding officers.
    24  § 335.  Initial decisions.
    25               SUBPART B.  COMMISSION POWERS, DUTIES,
    26                      PRACTICES AND PROCEDURES
    27  Chapter 5.  Powers and Duties
    28  § 501.  General powers.
    29  § 502.  Enforcement proceedings by commission.
    30  § 503.  Enforcement proceedings by Attorney General.
    19770H0489B3394                  - 2 -

     1  § 504.  Reports by public utilities.
     2  § 505.  Duty to furnish information to commission; cooperation
     3          in valuing property.
     4  § 506.  Inspection of facilities and records.
     5  § 507.  Designation of statutory agent.                           <--
     6  § 508 507.  Contracts between public utilities and                <--
     7          municipalities.
     8  § 509 508.  Power of the commission to vary, reform and           <--
     9          revise contracts.
    10  § 510 509.  Regulation of manufacture, sale or lease of           <--
    11          appliances.
    12  § 511 510.  Assessment for regulatory expenses upon public        <--
    13          utilities.
    14  § 512 511.  Disposition, appropriation and disbursement of        <--
    15          assessments and fees.
    16  § 513 512.  Power of commission to require insurance.             <--
    17  § 514 513.  Public letting of contracts.                          <--
    18  Chapter 7.  Procedure on Complaints
    19  § 701.  Complaints.
    20  § 702.  Service of complaints on parties.
    21  § 703.  Fixing of hearings.
    22  Chapter 9.  Judicial Proceedings
    23  § 901.  Right to trial by jury.
    24  § 902.  Costs on review.
    25  § 903.  Restriction on injunctions.
    26        SUBPART C.  REGULATION OF PUBLIC UTILITIES GENERALLY
    27  Chapter 11.  Certificates of Public Convenience
    28  § 1101.  Organization of public utilities and beginning of
    29           service.
    30  § 1102.  Enumeration of acts requiring certificate.
    19770H0489B3394                  - 3 -

     1  § 1103.  Procedure to obtain certificates of public convenience.
     2  § 1104.  Certain appropriations by right of eminent domain
     3           prohibited.
     4  Chapter 13.  Rates and Rate Making
     5  § 1301.  Rates to be just and reasonable.
     6  § 1302.  Tariffs; filing and inspection.
     7  § 1303.  Adherence to tariffs.
     8  § 1304.  Discrimination in rates.
     9  § 1305.  Advance payment of rates; interest on deposits.
    10  § 1306.  Apportionment of joint rates.
    11  § 1307.  Sliding scale of rates; adjustments.
    12  § 1308.  Voluntary changes in rates.
    13  § 1309.  Rates fixed on complaint; investigation of costs of
    14           production.
    15  § 1310.  Temporary rates.
    16  § 1311.  Valuation of property of a public utility.
    17  § 1312.  Refunds.
    18  § 1313.  Price upon resale of public utility services.
    19  Chapter 15.  Service and Facilities
    20  § 1501.  Character of service and facilities.
    21  § 1502.  Discrimination in service.
    22  § 1503.  Discontinuance of service.
    23  § 1504.  Standards of service and facilities.
    24  § 1505.  Proper service and facilities established on complaint.
    25  § 1506.  Copies of service contracts, etc., to be filed with
    26           commission.
    27  § 1507.  Testing of appliances for measurement of service.
    28  § 1508.  Reports of accidents.
    29  § 1509.  Billing procedures.
    30  Chapter 17.  Accounting and Budgetary Matters
    19770H0489B3394                  - 4 -

     1  § 1701.  Mandatory systems of accounts.
     2  § 1702.  Continuing property records.
     3  § 1703.  Depreciation accounts; reports.
     4  § 1704.  Records and accounts to be kept in Commonwealth.
     5  § 1705.  Budgets of public utilities.
     6  § 1706.  Applicability to municipal corporations.
     7  Chapter 19.  Securities and Obligations
     8  § 1901.  Registration of securities to be issued or assumed.
     9  § 1902.  Contents of securities certificates.
    10  § 1903.  Registration or rejection of securities certificates.
    11  § 1904.  Unauthorized securities may be declared void.
    12  Chapter 21.  Relations with Affiliated Interests
    13  § 2101.  Definition of affiliated interest.
    14  § 2102.  Approval of contracts with affiliated interests.
    15  § 2103.  Continuing supervision and jurisdiction over contracts.
    16  § 2104.  Contracts to be in writing; cost data.
    17  § 2105.  Contracts in violation of part void.
    18  § 2106.  Effect on rates.
    19  § 2107.  Federal regulatory agencies.
    20             SUBPART D.  SPECIAL PROVISIONS RELATING TO
    21                   REGULATION OF PUBLIC UTILITIES
    22  Chapter 23.  Common Carriers
    23  § 2301.  Operation and distribution of facilities of common
    24           carriers.
    25  § 2302.  Transfers and time schedules of common carriers.
    26  § 2303.  Common carrier connections with other lines.
    27  § 2304.  Liability of common carriers for damages to property
    28           in transit; bills of lading.
    29  § 2305.  Full crews.
    30  Chapter 25.  Contract Carrier by Motor Vehicle and Broker
    19770H0489B3394                  - 5 -

     1  § 2501.  Declaration of policy and definitions.
     2  § 2502.  Regulation and classification of contract carrier and
     3           broker.
     4  § 2503.  Permits required of contract carriers.
     5  § 2504.  Dual operation by motor carriers.
     6  § 2505.  Licenses and financial responsibility required of
     7           brokers.
     8  § 2506.  Copies of contracts to be filed with commission;
     9           charges and changes therein.
    10  § 2507.  Minimum rates fixed and practices prescribed on
    11           complaint.
    12  § 2508.  Accounts, records and reports.
    13  § 2509.  Temporary permits and licenses.
    14  Chapter 27.  Railroads
    15  § 2701.  Railroad connections with sidetracks and laterals.
    16  § 2702.  Construction, relocation, suspension and abolition of
    17           crossings.
    18  § 2703.  Ejectment in crossing cases.
    19  § 2704.  Compensation for damages occasioned by construction,
    20           relocation or abolition of crossings.
    21  § 2705.  Speedometers and speed recorders.
    22  § 2706.  Flag protection.
    23  Chapter 29.  Telephone and Telegraph Wires
    24  § 2901.  Definitions.
    25  § 2902.  Private wire for gambling information prohibited.
    26  § 2903.  Written contract for private wire.
    27  § 2904.  Joint use of telephone and telegraph facilities.
    28                SUBPART E.  MISCELLANEOUS PROVISIONS
    29  Chapter 31.  Foreign Trade Zones
    30  § 3101.  Operation as a public utility.
    19770H0489B3394                  - 6 -

     1  § 3102.  Establishment by private corporations and
     2           municipalities.
     3  § 3103.  Formation and authority of private corporations.
     4  § 3104.  Municipalities and corporations to comply with law;
     5           forfeiture of rights.
     6  § 3105.  Reports to Department of Community Affairs.
     7  Chapter 33.  Violations and Penalties
     8  § 3301.  Civil penalties for violations.
     9  § 3302.  Criminal penalties for violations.
    10  § 3303.  Nonliability for enforcement of lawful tariffs and
    11           rates.
    12  § 3304.  Unlawful issuance and assumption of securities.
    13  § 3305.  Misapplication of proceeds of securities.
    14  § 3306.  Execution of unlawful contracts.
    15  § 3307.  Refusal to obey subpoena and testify.
    16  § 3308.  Concealment of witnesses and records.
    17  § 3309.  Liability for damages occasioned by unlawful acts.
    18  § 3310.  Unauthorized operation by carriers and brokers.
    19  § 3311.  Bribery.
    20  § 3312.  Evasion of motor carrier and broker regulations.
    21  § 3313.  Excessive price on resale.
    22  § 3314.  Limitation of actions and cumulation of remedies.
    23  § 3315.  Disposition of fines and penalties.
    24               PART II.  OTHER PROVISIONS (Reserved)
    25     The General Assembly of the Commonwealth of Pennsylvania
    26  hereby enacts as follows:
    27     Section 1.  Title 66, act of November 25, 1970 (P.L.707,
    28  No.230), known as the Pennsylvania Consolidated Statutes, is
    29  amended by adding parts to read:
    30                              TITLE 66
    19770H0489B3394                  - 7 -

     1                          PUBLIC UTILITIES
     2  Parts
     3     I.  Public Utility Code
     4    II.  Other Provisions (Reserved)
     5                               PART I
     6                        PUBLIC UTILITY CODE
     7  Subpart
     8     A.  Preliminary Provisions
     9     B.  Commission Powers, Duties, Practices and Procedures
    10     C.  Regulation of Public Utilities Generally
    11     D.  Special Provisions Relating to Regulation of Public
    12         Utilities
    13     E.  Miscellaneous Provisions
    14                             SUBPART A
    15                       PRELIMINARY PROVISIONS

     1  Chapter
     2     1.  General Provisions
     3     3.  Public Utility Commission
     4                             CHAPTER 1
     5                         GENERAL PROVISIONS
     6  Sec.
     7  101.  Short title of part.
     8  102.  Definitions.
     9  103.  Prior rights preserved.
    10  104.  Interstate and foreign commerce.
    11  § 101.  Short title of part.
    12     This part shall be known and may be cited as the "Public
    13  Utility Code."
    14  § 102.  Definitions.
    19770H0489B3394                  - 8 -

     1     Subject to additional definitions contained in subsequent
     2  provisions of this part which are applicable to specific
     3  provisions of this part, the following words and phrases when
     4  used in this part shall have, unless the context clearly
     5  indicates otherwise, the meanings given to them in this section:
     6     "Commission."  The Pennsylvania Public Utility Commission of
     7  this Commonwealth.
     8     "Common carrier."  Any and all persons or corporations
     9  holding out, offering, or undertaking, directly or indirectly,
    10  service for compensation to the public for the transportation of
    11  passengers or property, or both, or any class of passengers or
    12  property, between points within this Commonwealth by, through,
    13  over, above, or under land, water, or air, and shall include
    14  forwarders, but shall not include contract carriers by motor
    15  vehicles, or brokers, or any bona fide cooperative association
    16  transporting property exclusively for the members of such
    17  association on a nonprofit basis.
    18     "Common carrier by motor vehicle."  Any common carrier who or
    19  which holds out or undertakes the transportation of passengers
    20  or property, or both, or any class of passengers or property,
    21  between points within this Commonwealth by motor vehicle for
    22  compensation, whether or not the owner or operator of such motor
    23  vehicle, or who or which provides or furnishes any motor
    24  vehicle, with or without driver, for transportation or for use
    25  in transportation of persons or property as aforesaid, and shall
    26  include common carriers by rail, water, or air, and express or
    27  forwarding public utilities insofar as such common carriers or
    28  such public utilities are engaged in such motor vehicle
    29  operations, but does not include:
    30         (1)  A lessor under a lease given on a bona fide sale of
    19770H0489B3394                  - 9 -

     1     a motor vehicle where the lessor retains or assumes no
     2     responsibility for maintenance, supervision, or control of
     3     the motor vehicles so sold.
     4         (2)  Transportation of school children for school
     5     purposes or to and from school sponsored extra curricular
     6     activities whether as participants or spectators, together
     7     with chaperons who might accompany them as designated by the
     8     board of school directors not exceeding five in number, or
     9     between their homes and Sunday school in any motor vehicle
    10     owned by the school district, private school or parochial
    11     school, or transportation of school children between their
    12     homes and school or to and from school-sponsored extra
    13     curricular or educational activities whether as participants
    14     or spectators, together with chaperons who might accompany
    15     them as designated by the board of school directors not
    16     exceeding five in number, if the person performing the extra
    17     curricular transportation has a contract for the
    18     transportation of school children between their homes and
    19     school, with the private or parochial school, with the school
    20     district or jointure in which the school is located, or with
    21     a school district that is a member of a jointure in which the
    22     school is located if the jointure has no contracts with other
    23     persons for the transportation of students between their
    24     homes and school, and if the person maintains a copy of all
    25     contracts in the vehicle at all times, or children between
    26     their homes and Sunday school in any motor vehicle operated
    27     under contract with the school district, private school or
    28     parochial school.
    29         (3)  Any owner or operator of a farm transporting
    30     agricultural products from, or farm supplies to, such farm,
    19770H0489B3394                 - 10 -

     1     or any independent contractor or cooperative agricultural
     2     association hauling agricultural products or farm supplies
     3     exclusively for one or more owners or operators of farms.
     4         (4)  Any person or corporation who or which uses, or
     5     furnishes for use, dump trucks for the transportation of
     6     ashes, rubbish, excavated and road construction materials.
     7         (5)  Transportation of property by the owner to himself,
     8     or to purchasers directly from him, in vehicles owned and
     9     operated by the owner of such property and not otherwise used
    10     in transportation of property for compensation for others.
    11         (6)  Transportation of voting machines to and from
    12     polling places by any person or corporation for or on behalf
    13     of any political subdivision of this Commonwealth for use in
    14     any primary, general, municipal or special election.
    15         (7)  Transportation of pulpwood, chemical wood, saw logs
    16     or veneer logs from woodlots.
    17         (8)  Transportation by towing of wrecked or disabled
    18     motor vehicles.
    19         (9)  Any person or corporation who or which furnishes
    20     transportation for any injured, ill or dead person.
    21     "Corporation."  All bodies corporate, joint-stock companies,
    22  or associations, domestic or foreign, their lessees, assignees,
    23  trustees, receivers, or other successors in interest, having any
    24  of the powers or privileges of corporations not possessed by
    25  individuals or partnerships, but shall not include municipal
    26  corporations, except as otherwise expressly provided in this
    27  part, nor bona fide cooperative associations which furnish
    28  service on a nonprofit basis only to their stockholders or
    29  members.
    30     "Facilities."  All the plant and equipment of a public
    19770H0489B3394                 - 11 -

     1  utility, including all tangible and intangible real and personal
     2  property without limitation, and any and all means and
     3  instrumentalities in any manner owned, operated, leased,
     4  licensed, used, controlled, furnished, or supplied for, by, or
     5  in connection with, the business of any public utility. Property
     6  owned by the Commonwealth or any municipal corporation prior to
     7  June 1, 1937, shall not be subject to the commission or to any
     8  of the terms of this part, except as elsewhere expressly
     9  provided in this part.
    10     "Forwarder."  Any person or corporation not included in the
    11  terms "motor carrier" or "broker" who or which issues receipts
    12  or billings for property received by such person or corporation
    13  for transportation, forwarding, or consolidating, or for
    14  distribution by any medium of transportation or combination or
    15  media of transportation, other than solely by motor vehicle.
    16     "Highway."  A way or place of whatever nature open to the use
    17  of the public as a matter of right for purposes of vehicular
    18  traffic."
    19     "Motor carrier."  A common carrier by motor vehicle, and a
    20  contract carrier by motor vehicle.
    21     "Motor vehicle."  Any vehicle which is self-propelled,
    22  excepting power shovels, tractors other than truck tractors,
    23  road rollers, agricultural machinery, and vehicles which solely
    24  move upon or are guided by a track, or travel through the air.
    25     "Municipal corporation."  All cities, boroughs, towns,
    26  townships, or counties of this Commonwealth, and also any public
    27  corporation, authority, or body whatsoever created or organized
    28  under any law of this Commonwealth for the purpose of rendering
    29  any service similar to that of a public utility.
    30     "Person."  Individuals, partnerships, or associations other
    19770H0489B3394                 - 12 -

     1  than corporations, and includes their lessees, assignees,
     2  trustees, receivers, executors, administrators, or other
     3  successors in interest.
     4     "Public utility."
     5         (1)  Any person or corporations now or hereafter owning
     6     or operating in this Commonwealth equipment or facilities
     7     for:
     8             (i)  Producing, generating, transmitting,
     9         distributing or furnishing natural or artificial gas,
    10         electricity, or steam for the production of light, heat,
    11         or power to or for the public for compensation.
    12             (ii)  Diverting, developing, pumping, impounding,
    13         distributing, or furnishing water to or for the public
    14         for compensation.
    15             (iii)  Transporting passengers or property as a
    16         common carrier.
    17             (iv)  Use as a canal, turnpike, tunnel, bridge,
    18         wharf, and the like for the public for compensation.
    19             (v)  Transporting or conveying natural or artificial
    20         gas, crude oil, gasoline, or petroleum products,
    21         materials for refrigeration, or oxygen or nitrogen, or
    22         other fluid substance, by pipeline or conduit, for the
    23         public for compensation.
    24             (vi)  Conveying or transmitting messages or
    25         communications by telephone or telegraph or domestic
    26         public land mobile radio service including, but not
    27         limited to, point-to-point microwave radio service for
    28         the public for compensation.
    29             (vii)  Sewage collection, treatment, or disposal for
    30         the public for compensation.
    19770H0489B3394                 - 13 -

     1         (2)  The term "public utility" does not include:
     2             (i)  Any person or corporation, not otherwise a
     3         public utility, who or which furnishes service only to
     4         himself or itself.
     5             (ii)  Any bona fide cooperative association which
     6         furnishes service only to its stockholders or members on
     7         a nonprofit basis.
     8             (iii)  Any producer of natural gas not engaged in
     9         distributing such gas directly to the public for
    10         compensation.
    11     "Railroad."  Every railroad, other than a street railway, by
    12  whatsoever power operated, for public use in the conveyance of
    13  passengers or property, or both, and all the facilities thereof.
    14     "Rate."  Every individual, or joint fare, toll, charge,
    15  rental, or other compensation whatsoever of any public utility,
    16  or contract carrier by motor vehicle, made, demanded, or
    17  received for any service within this part, offered, rendered, or
    18  furnished by such public utility, or contract carrier by motor
    19  vehicle, whether in currency, legal tender, or evidence thereof,
    20  in kind, in services or in any other medium or manner
    21  whatsoever, and whether received directly or indirectly, and any
    22  rules, regulations, practices, classifications or contracts
    23  affecting any such compensation, charge, fare, toll, or rental.
    24     "Service."  Used in its broadest and most inclusive sense,
    25  includes any and all acts done, rendered, or performed, and any
    26  and all things furnished or supplied, and any and all facilities
    27  used, furnished, or supplied by public utilities, or contract
    28  carriers by motor vehicle, in the performance of their duties
    29  under this part to their patrons, employees, other public
    30  utilities, and the public, as well as the interchange of
    19770H0489B3394                 - 14 -

     1  facilities between two or more of them, but shall not include
     2  any acts done, rendered or performed, or any thing furnished or
     3  supplied, or any facility used, furnished or supplied by public
     4  utilities or contract carriers by motor vehicle in the
     5  transportation of voting machines to and from polling places for
     6  or on behalf of any political subdivision of this Commonwealth
     7  for use in any primary, general or special election, or in the
     8  transportation of any injured, ill or dead person, or in the
     9  transportation by towing of wrecked or disabled motor vehicles,
    10  or in the transportation of pulpwood or chemical wood from
    11  woodlots.
    12     "Street railway."  Every railroad and railway, or any
    13  extension or extensions thereof, by whatsoever power operated,
    14  for public use in the conveyance of passengers or property, or
    15  both, located mainly or in part upon, above, below, through, or
    16  along any highway in any city, borough, or town, and not
    17  constituting or used as a part of a trunk line railroad system,
    18  and all the facilities thereof.
    19     "Tariff."  All schedules of rates, all rules, regulations,
    20  practices, or contracts involving any rate or rates, including
    21  contracts for interchange of service, and, in the case of a
    22  common carrier, schedules showing the method of distribution of
    23  the facilities of such common carrier.
    24     "Transportation of passengers or property."  Any and all
    25  service in connection with the receiving, transportation,
    26  elevation, transfer in transit, ventilation, refrigeration,
    27  icing, storage, handling, and delivering of property, baggage or
    28  freight, as well as any and all service in connection with the
    29  transportation or carrying of passengers, but shall not mean any
    30  service in connection with the receiving, transportation,
    19770H0489B3394                 - 15 -

     1  handling or delivering of voting machines to and from polling
     2  places for or on behalf of any political subdivision of this
     3  Commonwealth for use in any primary, general or special
     4  election, or the transportation of any injured, ill or dead
     5  person, or the transportation by towing of wrecked or disabled
     6  motor vehicles, or the transportation of pulpwood or chemical
     7  wood from woodlots.
     8  § 103.  Prior rights preserved.
     9     (a)  Existing law continued.--Except as otherwise
    10  specifically provided in this part, it is the intention of this
    11  part to continue existing law. Any public utility, contract
    12  carrier by motor vehicle, or broker rendering service or having
    13  the right to render service on the day preceding the effective
    14  date of this part shall be entitled to the full enjoyment and
    15  the exercise of all and every right, power and privilege which
    16  it lawfully possessed on that date.
    17     (b)  Existing proceedings, certificates, regulations, tariffs
    18  and contracts.--All litigation, hearings, investigations, and
    19  other proceedings whatsoever, pending under any repealed statute
    20  supplied by this part, shall continue and remain in full force
    21  and effect, and may be continued and completed under the
    22  provisions of this part. All certificates, permits, licenses,
    23  orders, rules, regulations or tariffs made, issued, or filed
    24  under any repealed statute supplied by this part, and in full
    25  force and effect upon the effective date of this part, shall
    26  remain in full force and effect for the term issued, or until
    27  revoked, vacated, or modified under the provisions of this part.
    28  All existing contracts and obligations of the commission or its
    29  predecessor, entered into or created under any repealed statute
    30  supplied by this part, and in force and effect upon the
    19770H0489B3394                 - 16 -

     1  effective date of this part, shall remain in full force and
     2  effect and shall continue to be performed by the commission.
     3     (c)  Remedies cumulative.--Except as otherwise provided in
     4  this part, nothing in this part shall abridge or alter the
     5  existing rights of action or remedies in equity or under common
     6  or statutory law of this Commonwealth, and the provisions of
     7  this part shall be cumulative and in addition to such rights of
     8  action and remedies.
     9  § 104.  Interstate and foreign commerce.
    10     The provisions of this part, except when specifically so
    11  provided, shall not apply, or be construed to apply, to commerce
    12  with foreign nations, or among the several states, except
    13  insofar as the same may be permitted under the provisions of the
    14  Constitution of the United States and the acts of Congress.
    15                             CHAPTER 3
    16                     PUBLIC UTILITY COMMISSION
    17  Subchapter
    18     A.  General Provisions
    19     B.  Investigations and Hearings
    20                            SUBCHAPTER A
    21                         GENERAL PROVISIONS
    22  Sec.
    23  301.  Establishment, members, qualifications and chairman.
    24  302.  Removal of commissioner.
    25  303.  Seal. certified documents.                                  <--
    26  304.  Administrative law judges.
    27  305.  Secretary, employees and consultants.
    28  306.  Counsel.
    29  307.  Inspectors for enforcement.
    30  308.  Bureaus.
    19770H0489B3394                 - 17 -

     1  309.  Oaths and subpoenas.
     2  310.  Depositions.
     3  311.  Witness fees.
     4  312.  Privilege and immunity.
     5  313.  Joint hearings and investigations; reciprocity.
     6  314.  Investigation of interstate rates, facilities and service.
     7  315.  Burden of proof.
     8  316.  Effect of commission action.
     9  317.  Fees for services rendered by commission.
    10  318.  Commission to cooperate with other departments.
    11  319.  Code of ethics.
    12  § 301.  Establishment, members, qualifications and chairman.
    13     (a)  Appointment and terms of members.--The Pennsylvania
    14  Public Utility Commission, established by the act of March 31,
    15  1937 (P.L.160, No.43), as an independent administrative
    16  commission, is hereby continued as such and shall consist of
    17  five members who shall be appointed by the Governor, by and with
    18  the advice and consent of two-thirds of all the members of the
    19  Senate, for a term of ten years. No commissioner upon the
    20  expiration of his term shall continue to hold office until his
    21  successor shall be duly appointed or shall be qualified.
    22     (b)  Qualifications and restrictions.--Each commissioner, at
    23  the time of his appointment and qualification, shall be a
    24  resident of this Commonwealth and shall have been a qualified
    25  elector therein for a period of at least one year next preceding
    26  his appointment, and shall also be not less than 30 years of
    27  age. No person shall be appointed a member of the commission or
    28  hold any place, position or office under it, who occupies any
    29  official relation to any public utility or who holds any other
    30  appointive or elected office of the Commonwealth or any
    19770H0489B3394                 - 18 -

     1  political subdivision thereof. Commencing July 1, 1977,
     2  commissioners shall devote full time to their official duties.
     3  No commissioner shall hold any office or position, the duties of
     4  which are incompatible with the duties of his office as
     5  commissioner, or be engaged in any business, employment or
     6  vocation, for which he shall receive any remuneration, except as
     7  provided in this chapter. No employee, appointee or official
     8  engaged in the service of or in any manner connected with, the
     9  commission shall hold any office or position, or be engaged in
    10  any employment or vocation, the duties of which are incompatible
    11  with his employment in the service of or in connection with the
    12  work of the commission. No commissioner shall be paid or accept
    13  for any service connected with the office, any fee or emolument
    14  other than the salary and expenses provided by law. No
    15  commissioner shall participate in any hearing or proceeding in
    16  which he has any direct or indirect pecuniary interest. Within
    17  90 days of confirmation, each commissioner shall disclose, at
    18  that time and thereafter annually, the existence of all security
    19  holdings in any public utility or its affiliates held by such
    20  commissioner, his or her spouse and any minor or unemancipated
    21  children and must either divest or place in a blind trust such
    22  securities. As used in this part, blind trust means a trust over
    23  which neither the commissioners, their spouses, nor any minor or
    24  unemancipated children shall exercise any managerial control,
    25  and from which neither the commissioners, their spouses, nor any
    26  minor or unemancipated children shall receive any income from
    27  the trust during the commissioner's tenure of office. Such
    28  disclosure statement shall be filed with the secretary of the
    29  commission and shall be open to inspection by the public during
    30  the normal business hours of the commission during the tenure of
    19770H0489B3394                 - 19 -

     1  the commissioner. Every commissioner, and every individual or
     2  official, employed or appointed to office under, in the service
     3  of, or in connection with, the work of the commission, is
     4  forbidden, directly or indirectly, to solicit or request from,
     5  or to suggest or recommend to any public utility, or to any
     6  officer, attorney, agent or employee thereof, the appointment of
     7  any individual to any office, place or position in, or the
     8  employment of any individual in any capacity by, such public
     9  utility. Every commissioner, every bureau director and every
    10  administrative law judge employed or appointed to office under,
    11  in the service of or in connection with the work of the
    12  commission, is prohibited from accepting employment with any
    13  public utility subject to the rules and regulations of the
    14  commission for a period of one year after terminating employment
    15  or service with the commission. If any person employed or
    16  appointed in the service of the commission violates any
    17  provision of this section, the commission shall forthwith remove
    18  him from the office or employment held by him.
    19     (c)  Chairman.--A member designated by the Governor shall be
    20  the chairman of the commission during such member's term of
    21  office. When present, the chairman shall preside at all
    22  meetings, but in his absence a member, designated by the
    23  chairman, shall preside and shall exercise, for the time being,
    24  all the powers of the chairman. The chairman shall have such
    25  powers and duties as authorized by the commission as provided in
    26  section 331(b) (relating to powers of commission and
    27  administrative law judges).
    28     (d)  Quorum.--A majority of the members of the commission
    29  serving in accordance with law shall constitute a quorum and
    30  such majority, acting unanimously, shall be required for any
    19770H0489B3394                 - 20 -

     1  action, including the making of any order or the ratification of
     2  any act done or order made by one or more of the commissioners.
     3  No vacancy in the commission shall impair the right of a quorum
     4  of the commissioners to exercise all the rights and perform all
     5  the duties of the commission.
     6     (e)  Compensation.--Each of the commissioners shall receive
     7  an annual salary of $35,000, as of January 1, 1977, and $40,000,
     8  as of January 1, 1978, except the chairman, who shall receive an
     9  annual salary of $37,500, as of January 1, 1977, and $42,500, as
    10  of January 1, 1978.
    11     (f)  Open proceedings.--The proceedings of the commission
    12  shall be conducted in accordance with the provisions of the act
    13  of July 19, 1974 (P.L.486, No.175), referred to as the Public
    14  Agency Open Meeting Law.
    15     (g)  Monitoring cases.--Each commissioner shall be
    16  responsible for monitoring specified cases as shall be assigned
    17  to him in a manner determined by the commission. All proceedings
    18  properly before the commission shall be assigned immediately
    19  upon filing.
    20  § 302.  Removal of commissioner.
    21     The Governor, by and with the consent of two-thirds of all of
    22  the members of the Senate, shall remove from office any
    23  commissioner who violates the provision of section 301(b)
    24  (relating to establishment, members, qualifications and
    25  chairman) requiring commissioners to devote full time to their
    26  official duties and may remove any commissioner for
    27  inefficiency, neglect of duty or misconduct in office, giving
    28  him a copy of the charges against him, and affording him an
    29  opportunity to be publicly heard in person or by counsel in his
    30  own defense upon not less than ten days notice. If the
    19770H0489B3394                 - 21 -

     1  commissioner is removed, the Governor shall file with the
     2  Department of State a complete statement of all charges made
     3  against the commissioner and his finding thereon, together with
     4  a complete record of the proceedings.
     5  § 303.  Seal. certified documents.                                <--
     6     (a)  Seal.--The commission shall adopt and use an official     <--
     7  seal, by which the commission shall authenticate its
     8  proceedings, and of which seal the courts shall take judicial
     9  notice. A copy of any paper or document on file with the
    10  commission authenticated by any such seal shall be evidence
    11  equally and in like manner as the original.
    12     (b)  Certified copies of documents admissible in evidence.--   <--
    13  Copies of all official documents and orders filed or deposited
    14  in the office of the commission, certified by the secretary
    15  under the official seal of the commission to be true copies of
    16  the originals, shall be evidence in like manner as the
    17  originals, in all matters before the commission and in the
    18  courts of this Commonwealth.
    19  § 304.  Administrative law judges.
    20     (a)  General rule.--The office of administrative law judge to
    21  the Pennsylvania Public Utility Commission is hereby created.
    22  The commission shall have the power to appoint as many qualified
    23  and competent administrative law judges as may be necessary for
    24  proceedings pursuant to this part, and who shall devote full
    25  time to their official duties and who shall perform no duties
    26  inconsistent with their duties and responsibilities as
    27  administrative law judges. Administrative law judges shall be
    28  afforded employment security as provided by the act of August 5,
    29  1941 (P.L.752, No.286), known as the "Civil Service Act."
    30  Compensation for administrative law judges shall be established
    19770H0489B3394                 - 22 -

     1  by the commission within a range of $25,000 to $35,000. If the
     2  commission is occasionally and temporarily understaffed of
     3  administrative law judges, the commission may appoint qualified
     4  and competent persons who meet the minimum standards established
     5  by this part to temporarily serve as such judges, who shall
     6  serve at the pleasure of the commission and shall receive such
     7  compensation as the commission may establish.
     8     (b)  Staff.--The commission may appoint secretaries and legal
     9  or technical advisors to assist each judge in performance of his
    10  duties or may assign personnel from any of the other bureaus
    11  within the commission.
    12     (c)  Qualifications.--All judges must meet the following
    13  minimum requirements:
    14         (1)  Be an attorney in good standing before the Supreme
    15     Court of Pennsylvania.
    16         (2)  Have three years of practice before administrative
    17     agencies or equivalent experience.
    18         (3)  Conform to such other requirements as shall be
    19     established by the commission.
    20     (d)  Chief administrative law judge.--The commission shall
    21  appoint one of the administrative law judges as chief
    22  administrative law judge who shall be responsible for assigning
    23  a hearing judge to every proceeding before the commission which
    24  may require the utilization of an administrative law judge and
    25  who shall receive remuneration above that of any other
    26  administrative law judge. The position of chief administrative
    27  law judge may not be withdrawn from a person so appointed, nor
    28  his salary diminished, except for good cause shown. The chief
    29  administrative law judge shall have such other responsibilities
    30  as the commission may by rule prescribe.
    19770H0489B3394                 - 23 -

     1  § 305.  Secretary, employees and consultants.
     2     (a)  Secretary.--The commission may appoint and fix the
     3  compensation of a secretary to hold office at its pleasure. The
     4  secretary shall have such powers and shall perform such duties
     5  not contrary to law as the commission shall prescribe. The
     6  commission shall have power and authority to designate, from
     7  time to time, one of its clerks to perform the duties of the
     8  secretary during his absence, and the clerk so designated shall
     9  possess, for the time so designated, the powers of the secretary
    10  of the commission.
    11     (b)  Employees and consultants.--The commission may appoint,
    12  fix the compensation of, authorize and delegate such officers,
    13  consultants, experts, engineers, statisticians, accountants,
    14  inspectors, clerks and employees as may be appropriate for the
    15  proper conduct of the work of the commission. The total
    16  compensation paid to consultants in any fiscal year shall not
    17  exceed 4% of the commission's budget. The commission shall keep
    18  records of the names of each consultant, the services performed
    19  for the commission, and the amounts expended for each
    20  consultant's services. The commission shall submit these records
    21  as a part of its annual budget submission. Such records shall be
    22  a matter of public record open for inspection at the office of
    23  the commission during the normal business hours of the
    24  commission. The commission shall establish, after consultation
    25  with the Civil Service Commission, standardized qualifications
    26  for employment and advancement, and all titles, and establish
    27  different standards for different kinds, grades, and classes of
    28  similar work or service. The employees of the commission shall
    29  be afforded employment security as provided by the act of August
    30  5, 1941 (P.L.752, No.286), known as the "Civil Service Act," or
    19770H0489B3394                 - 24 -

     1  the appropriate collective bargaining agreement, whichever is
     2  applicable, but the commission shall set the salaries of all
     3  employees in accordance with the employment standards
     4  established under this section.
     5  § 306.  Counsel.
     6     The office of chief counsel to the Pennsylvania Public
     7  Utility Commission is hereby created. The chief counsel shall be
     8  appointed by the commission and hold office at its pleasure. The
     9  commission may also from time to time appoint such assistant
    10  counsel to the commission as may be required for the proper
    11  conduct of its work. Assistant counsel may be removed by the
    12  commission only for good cause. The compensation of the counsel
    13  shall be fixed by the commission. In accordance with the
    14  multifunction legal staff established in this part, such counsel
    15  shall attend the hearings before the commission or a
    16  commissioner, or a special agent or administrative law judge,
    17  and conduct the examination of witnesses and shall represent the
    18  commission upon appeals and other hearings in the courts of
    19  common pleas and in the Commonwealth and Supreme Courts, or
    20  other courts of this Commonwealth, or in any Federal court or
    21  agency and in actions instituted to recover penalties and to
    22  enforce regulations and orders of the commission. Such counsel
    23  shall also assist the Attorney General in conducting all
    24  mandamus, injunction and quo warranto proceedings at law or in
    25  equity, instituted by him for the enforcement of the regulations
    26  and orders of the commission, and shall perform such other
    27  professional duties as may be required of them by the
    28  commission.
    29  § 307.  Inspectors for enforcement.
    30     The commission may employ such inspectors, as it may deem
    19770H0489B3394                 - 25 -

     1  necessary, for the purpose of enforcing the provisions of this
     2  part. Such inspectors are hereby declared to be police officers,
     3  and are hereby given police power and authority throughout this
     4  Commonwealth to arrest on view, without writ, rule, order, or
     5  process, any person operating as a motor carrier or common
     6  carrier by airplane without a certificate or permit required by
     7  this part. Such inspectors are hereby given authority to stop
     8  vehicles on the highways of this Commonwealth, and to inspect
     9  the cargoes of such vehicles, and any receipts or bills of
    10  lading pertaining to such cargoes.
    11  § 308.  Bureaus.
    12     (a)  Enumeration.--There shall be established within the
    13  commission the following bureaus and functions:
    14         (1)  Law Bureau.
    15         (2)  Bureau of Conservation, Economics and Energy
    16     Planning.
    17         (3)  Bureau of Consumer Services.
    18     (b)  Law Bureau.--The Law Bureau shall be a multifunction
    19  legal staff, consisting of a prosecutory function and an
    20  advisory function. Prosecutory counsel shall be responsible for
    21  and shall assist in the development of, challenge of, and
    22  representation on the record of all matters in the public's
    23  interest. Advisory counsel shall advise the commission on any
    24  and all matters. The counsel shall appear on behalf of the
    25  commission in all courts of record and before district
    26  magistrates. No counsel shall in the same case or a factually
    27  related case perform duties in the prosecutory and advisory
    28  functions, if such performance would represent a conflict of
    29  interest.
    30     (c)  Bureau of Conservation, Economics and Energy Planning.--
    19770H0489B3394                 - 26 -

     1  The Bureau of Conservation, Economics and Energy Planning shall
     2  conduct studies and research all matters within the commission's
     3  jurisdiction and advise the commission of the results thereof in
     4  order to enable the commission to provide prospective regulation
     5  in the best interest of all parties concerned. Such studies and
     6  research shall include long range forecasting of energy needs
     7  and development; research into the use of new, efficient and
     8  economic methods of energy production; the review of the
     9  efficiency of the present generating systems operated within
    10  this Commonwealth; and the development of an effective program
    11  of energy conservation. The commission shall require all
    12  electric and gas public utilities subject to its jurisdiction to
    13  file with it an annual conservation report which shows the plans
    14  and progress achieved on programs of energy conservation. The
    15  commission shall, by rule, prescribe guidelines for the form and
    16  manner of such annual conservation report which report shall
    17  describe the current and proposed programs of each such utility
    18  designed to educate and encourage its customers in the optimum,
    19  effective and efficient use by them of electric and gas energy.
    20  The report shall include an accounting of the monetary and
    21  personnel resources actually or proposed to be expended or
    22  devoted to and the actual or anticipated results of such
    23  programs. The bureau shall review all proposals for electric and
    24  gas public utility plant expansion and shall submit for
    25  consideration of the commission its findings on what impact, if
    26  any, the electric and gas public utility plant expansion will
    27  have on rates charged by the public utility.
    28     (d)  Bureau of Consumer Services.--The Bureau of Consumer
    29  Services shall investigate and have prepared replies to all
    30  informal consumer complaints and shall advise the commission as
    19770H0489B3394                 - 27 -

     1  to the need for formal commission action on any matters brought
     2  to its attention by the complaints. The bureau shall on behalf
     3  of the commission keep records of all complaints received, the
     4  matter complained of, the utility involved, and the disposition
     5  thereof and shall at least annually report to the commission on
     6  such matters. The commission may take official notice of all
     7  complaints and the nature thereof in any proceeding before the
     8  commission in which the utility is a party. The commission shall
     9  adopt, publish and generally make available rules by which a
    10  consumer may make informal complaints. The bureau shall also
    11  assist and advise the commission on matters of safety compliance
    12  by public utilities.
    13     (e)  Other bureaus.--The commission shall establish such
    14  bureau or bureaus to perform such duties as the commission may
    15  prescribe regarding all matters respecting rates of public
    16  utilities and all matters respecting common carriers and
    17  contract carriers. The establishment of these bureaus shall not
    18  be construed to prohibit the commission from establishing any
    19  additional bureaus which the commission finds necessary to
    20  protect the interests of the people of this Commonwealth. The
    21  bureaus may perform such other duties not inconsistent with law
    22  as the commission may direct.
    23     (f)  Staff testimony.--Members of the staff of the commission
    24  shall appear and present testimony in any proceeding before the
    25  commission when called by the commission or any of the parties
    26  to the proceeding. In addition to any cross-examination by
    27  counsel as provided in section 306 (relating to counsel), any
    28  member of the commission staff who participates in the analysis,
    29  review and conclusions in any proceedings before the commission
    30  may, in the discretion of commission counsel and with the
    19770H0489B3394                 - 28 -

     1  consent of the presiding officer, cross-examine any witness
     2  presented by the parties to the proceeding at the public
     3  hearing.
     4  § 309.  Oaths and subpoenas.
     5     The commission, or its representative, shall have the power,
     6  in any part of this Commonwealth, to subpoena witnesses, to
     7  administer oaths, to examine witnesses, or to take such
     8  testimony, or compel the production of such books, records,
     9  papers, and documents as it may deem necessary or proper in, and
    10  pertinent to, any proceeding, investigation, or hearing, held or
    11  had by it, and to do all necessary and proper things and acts in
    12  the lawful exercise of its powers or the performance of its
    13  duties. The fees for serving a subpoena shall be the same as
    14  those paid sheriffs for similar services.
    15  § 310.  Depositions.
    16     The commission, or any commissioner, or any party to
    17  proceedings before the commission, may cause the deposition of
    18  witnesses residing within or without this Commonwealth to be
    19  taken in the manner prescribed by the Pennsylvania Rules of
    20  Civil Procedure for taking depositions in civil actions.
    21  § 311.  Witness fees.
    22     Witnesses who are summoned before the commission shall be
    23  paid the same fees and mileage as are paid to witnesses in the
    24  courts of common pleas. Witnesses whose depositions are taken
    25  pursuant to the provisions of this part, and the officer taking
    26  the same, shall be entitled to the same fees as are paid for
    27  like services in such courts. All disbursements made in the
    28  payment of such fees shall be included in and paid in the same
    29  manner as is provided for the payment of other expenses of the
    30  commission.
    19770H0489B3394                 - 29 -

     1  § 312.  Privilege and immunity.
     2     No person shall be excused from testifying or from producing
     3  any book, document, paper, or account in any investigation or
     4  inquiry by, or hearing before, the commission or its
     5  representative, when ordered to do so, upon the ground that the
     6  testimony or evidence, book, document, paper, or account
     7  required may tend to incriminate him or subject him to penalty
     8  or forfeiture. No person shall be prosecuted, punished, or
     9  subjected to any forfeiture or penalty for or on account of any
    10  act, transaction, matter, or thing concerning which he shall
    11  have been compelled, under objection, to testify or produce
    12  documentary evidence. No person so testifying shall be exempt
    13  from prosecution or punishment for any perjury committed by him
    14  in his testimony.
    15  § 313.  Joint hearings and investigations; reciprocity.
    16     (a)  Joint hearings and investigations.--The commission shall
    17  have full power and authority to make joint investigations, hold
    18  joint hearings within or without this Commonwealth, and issue
    19  joint or concurrent orders in conjunction or concurrence with
    20  any official, board, commission, or agency of any state or of
    21  the United States, whether in the holding of such investigations
    22  or hearings, or in the making of such orders, the commission
    23  shall function under agreements or compacts between states or
    24  under the concurrent power of states to regulate the interstate
    25  commerce, or as an agency of the Federal Government, or
    26  otherwise.
    27     (b)  Reciprocity.--The commission shall have full power and
    28  authority to arrange reciprocity of treatment of public
    29  utilities and contract carriers by motor vehicle of this
    30  Commonwealth by regulatory bodies, under regulatory laws of
    19770H0489B3394                 - 30 -

     1  other states, and to that end the commission is hereby vested
     2  with power to impose upon public utilities and contract carriers
     3  by motor vehicle of other states, the same penalties,
     4  restrictions, and regulations as are imposed by the regulatory
     5  body of such other states upon public utilities and contract
     6  carriers by motor vehicle of this Commonwealth when operating
     7  into, out of, or through such other states.
     8  § 314.  Investigation of interstate rates, facilities and
     9          service.
    10     The commission may investigate the interstate rates, traffic
    11  facilities, or service of any public utility within this
    12  Commonwealth, and when such rates, facilities or service are, in
    13  the determination of the commission, unjust, unreasonable,
    14  discriminatory or in violation of any Federal law, or in
    15  conflict with the rulings, orders or regulations of any Federal
    16  regulatory body, the commission may apply, by petition to the
    17  proper Federal regulatory body, for relief, or may present to
    18  the proper Federal regulatory body all facts coming to its
    19  knowledge as to the violation of the rules, orders, or
    20  regulations of such regulatory body, or as to the violation of
    21  the particular Federal law.
    22  § 315.  Burden of proof.
    23     (a)  Reasonableness of rates.--In any proceeding upon the
    24  motion of the commission, involving any proposed or existing
    25  rate of any public utility, or in any proceedings upon complaint
    26  involving any proposed increase in rates, the burden of proof to
    27  show that the rate involved is just and reasonable shall be upon
    28  the public utility. The commission shall give to the hearing and
    29  decision of any such proceeding preference over all other
    30  proceedings, and decide the same as speedily as possible.
    19770H0489B3394                 - 31 -

     1     (b)  Compliance with commission determinations and orders.--
     2  In any case involving any alleged violation by a public utility,
     3  contract carrier by motor vehicle, or broker of any lawful
     4  determination or order of the commission, the burden of proof
     5  shall be upon the public utility, contract carrier by motor
     6  vehicle, or broker complained against, to show that the
     7  determination or order of the commission has been complied with.
     8     (c)  Adequacy of services and facilities.--In any proceeding
     9  upon the motion of the commission, involving the service or
    10  facilities of any public utility, the burden of proof to show
    11  that the service and facilities involved are adequate,
    12  efficient, safe, and reasonable shall be upon the public
    13  utility.
    14     (d)  Justification of accounting entries.--The burden of
    15  proof to justify every accounting entry questioned by the
    16  commission shall be upon the public utility making, authorizing,
    17  or requiring such entry, and the commission may suspend any
    18  charge or credit pending submission of such proof by such public
    19  utility.
    20     (e)  Use of future test year.--In discharging its burden of
    21  proof the utility may utilize a future test year. The commission
    22  shall promptly adopt rules and regulations regarding the
    23  information and data to be submitted when and if a future test
    24  period is to be utilized. Whenever a utility utilizes a future
    25  test year in any rate proceeding and such future test year forms
    26  a substantive basis for the final rate determination of the
    27  commission, the utility shall provide, as specified by the
    28  commission in its final order, appropriate data evidencing the
    29  accuracy of the estimates contained in the future test year, and
    30  the commission may after reasonable notice and hearing, in its
    19770H0489B3394                 - 32 -

     1  discretion, adjust the utility's rates on the basis of such
     2  data.
     3  § 316.  Effect of commission action.
     4     Whenever the commission shall make any rule, regulation,
     5  finding, determination or order, the same shall be prima facie
     6  evidence of the facts found and shall remain conclusive upon all
     7  parties affected thereby, unless set aside, annulled or modified
     8  on judicial review. The issuing or registration by the
     9  commission of any certificate, license or permit whatsoever,
    10  under the provisions of this part, or any finding, determination
    11  or order made by the commission refusing or granting such
    12  certificates, licenses or permits, shall not be construed to
    13  revive or validate any lapsed, terminated, invalidated or void
    14  powers, franchises, rights or privileges; or to enlarge or add
    15  to the rights, powers, franchises or privileges contained in any
    16  charter, or in the grant of any franchise, or any supplement or
    17  amendment to any charter, or to give or remit any forfeiture.
    18  § 317.  Fees for services rendered by commission.
    19     (a)  General rule.--The commission shall by rule establish on
    20  a reasonable cost basis the fees to be charged and collected for
    21  the following services:
    22         (1)  Copies of paper, testimony and records.
    23         (2)  Certifying a copy of any paper, testimony or record.
    24         (3)  Preparing and certifying to the Commonwealth Court
    25     any record in an appeal.
    26         (4)  Filing of each securities certificate, or each
    27     application for a certificate of public convenience,
    28     registration certificate, permit or license.
    29     (b)  Fees for testing.--The commission shall charge and
    30  collect from public utilities for the testing of their
    19770H0489B3394                 - 33 -

     1  instruments of precision and measuring apparatus the following
     2  fees:
     3         For testing each watthour meter, $16.
     4         For testing each indicating instrument, $10.
     5         For testing each instrument transformer, $10.
     6         For testing each standard cell, $5.
     7         For testing each standard resistance, $10.
     8         For testing each potentiometer, $50.
     9         For testing each gas meter prover, $35.
    10         For testing each calorimeter tested at the gas company's
    11     plant, $35.
    12         For testing each calorimeter tested at the commission
    13     laboratory, $10.
    14         For each water meter testing apparatus tested at the
    15     company's plant, $15.
    16         For each water meter tested at the commission laboratory,
    17     $3.
    18  § 318.  Commission to cooperate with other departments.
    19     (a)  Vehicle registration plates.--The Department of
    20  Transportation and the commission are hereby authorized and
    21  directed to cooperate in the issuance by the Department of
    22  Transportation, under the provisions of Title 75 (relating to
    23  vehicles), of registration plates for commercial motor vehicles,
    24  which will classify and identify motor vehicles operated under
    25  certificates or permits issued by the commission, without the
    26  necessity of the requirement of separate identification plates
    27  in addition to registration plates required under Title 75.
    28     (b)  Purity of water supply.--The commission may certify to
    29  the Department of Environmental Resources any question of fact
    30  regarding the purity of water supplied to the public by any
    19770H0489B3394                 - 34 -

     1  public utility over which it has jurisdiction, when any such
     2  question arises in any controversy or other proceeding before
     3  it, and upon the determination of such question by the
     4  department incorporate the department's findings in its
     5  decision.
     6     (c)  Powers of certain governmental agencies unaffected.--
     7  Nothing in this part shall be construed to deprive the
     8  Department of Health or the Department of Environmental
     9  Resources of any jurisdiction, powers or duties now vested in
    10  them.
    11  § 319.  Code of ethics.
    12     (a)  General rule.--Each commissioner and each administrative
    13  law judge shall conform to the following code of ethics for the
    14  Public Utility Commission. A commissioner and an administrative
    15  law judge must:
    16         (1)  Avoid impropriety and the appearance of impropriety
    17     in all activities.
    18         (2)  Perform all duties impartially and diligently.
    19         (3)  Avoid all ex parte communications prohibited in this
    20     part.
    21         (4)  Abstain publicly from expressing, other than in
    22     executive or public session, his personal views on the merits
    23     of a matter pending before the commission and require similar
    24     abstention on the part of commission personnel subject to his
    25     direction and control.
    26         (5)  Require staff and personnel subject to his direction
    27     to observe the standards of fidelity and diligence that apply
    28     to the commissioner and administrative law judge.
    29         (6)  Initiate appropriate disciplinary measures against
    30     commission personnel for unprofessional conduct.
    19770H0489B3394                 - 35 -

     1         (7)  Disqualify himself from proceedings in which his
     2     impartiality might be reasonably questioned.
     3         (8)  Inform himself about his personal and fiduciary
     4     interests and make a reasonable effort to inform himself
     5     about the personal financial interests of his spouse and
     6     children.
     7         (9)  Regulate his extra-curricular activities to minimize
     8     the risk of conflict with his official duties. He may speak,
     9     write or lecture and any reimbursed expenses, honorariums,
    10     royalties, or other moneys received in connection therewith
    11     shall be disclosed annually. Such disclosure statement shall
    12     be filed with the secretary of the commission and shall be
    13     open to inspection by the public during the normal business
    14     hours of the commission during the tenure of the commissioner
    15     or of the administrative law judge.
    16         (10)  Refrain from solicitation of funds for any
    17     political, educational, religious, charitable, fraternal or
    18     civic purposes, although he may be an officer, director or
    19     trustee of such organizations.
    20         (11)  Refrain from financial or business dealing which
    21     would tend to reflect adversely on impartiality, although the
    22     commissioner or administrative law judge may hold and manage
    23     investments which are not incompatible with the duties of his
    24     office.
    25         (12)  Conform to such additional rules as the commission
    26     may prescribe.
    27     (b)  Removal of commissioner for violation.--Any commissioner
    28  who violates the provisions of subsection (a) shall be removed
    29  from office in the manner provided in section 302 (relating to
    30  removal of commissioner).
    19770H0489B3394                 - 36 -

     1     (c)  Removal of judge for violation.--Any administrative law
     2  judge who violates the provisions of subsection (a) shall be
     3  removed from office in the manner provided by the act of August
     4  5, 1941 (P.L.752, No.286), known as the "Civil Service Act."
     5                            SUBCHAPTER B
     6                    INVESTIGATIONS AND HEARINGS
     7  Sec.
     8  331.  Powers of commission and administrative law judges.
     9  332.  Procedures in general.
    10  333.  Prehearing procedures.
    11  334.  Presiding officers.
    12  335.  Initial decisions.
    13  § 331.  Powers of commission and administrative law judges.
    14     (a)  General rule.--The commission may, on its own motion and
    15  whenever it may be necessary in the performance of its duties,
    16  investigate and examine the condition and management of any
    17  public utility or any other person or corporation subject to
    18  this part. In conducting the investigations the commission may
    19  proceed, either with or without a hearing, as it may deem best,
    20  but it shall make no order without affording the parties
    21  affected thereby a hearing. Any investigation, inquiry or
    22  hearing which the commission has power to undertake or hold
    23  shall be conducted pursuant to the provisions of this chapter.
    24     (b)  Powers of chairman.--The commission may authorize the
    25  chairman to:
    26         (1)  Designate the time and place for the conducting of
    27     investigations, inquiries and hearings.
    28         (2)  Assign cases to a commissioner or commissioners for
    29     hearing, investigation, inquiry, study or other similar
    30     purposes.
    19770H0489B3394                 - 37 -

     1         (3)  Assign cases to special agents or administrative law
     2     judges for the taking and receiving of evidence.
     3         (4)  Direct and designate officers and employees of the
     4     commission to make investigations, inspections, inquiries,
     5     studies and other like assignments for reports to the
     6     commission.
     7         (5)  Be responsible through the secretary for
     8     specifically enumerated daily administrative operations of
     9     the commission.
    10     (c)  Requirements for presiding officers.--There shall
    11  preside at the taking of evidence the commission, one or more
    12  commissioners, or one or more administrative law judges
    13  appointed as provided in this chapter. The functions of all
    14  presiding officers shall be conducted in an impartial manner.
    15  Any such officer may at any time withdraw from a proceeding if
    16  he deems himself disqualified, and, upon the filing in good
    17  faith of a timely and sufficient affidavit of personal bias or
    18  disqualification of any such officer, the commission shall
    19  determine the matter as a part of the record and decision in the
    20  proceeding.
    21     (d)  Authority of presiding officers.--In addition to any
    22  administrative rules of procedure contained in this part, the
    23  commission may adopt and publish such additional rules of
    24  procedure as are not inconsistent with this part. Officers
    25  presiding at hearings shall have authority subject to the
    26  published rules of the commission and within its powers, to:
    27         (1)  Administer oaths and affirmations.
    28         (2)  Issue subpoenas authorized by law.
    29         (3)  Rule upon offers of proof and receive relevant
    30     evidence, take or cause depositions to be taken whenever the
    19770H0489B3394                 - 38 -

     1     ends of justice would be served thereby.
     2         (4)  Regulate the course of the hearing.
     3         (5)  Hold conferences for settlement or simplification of
     4     the issues by consent of the parties.
     5         (6)  Dispose of procedural requests or similar matters.
     6         (7)  Make decisions or recommend decisions in conformity
     7     within this part.
     8         (8)  Take any other action authorized by commission rule.
     9     (e)  Interlocutory appeals.--A presiding officer may certify
    10  to the commission, or allow the parties an interlocutory appeal
    11  to the commission on any material question arising in the course
    12  of a proceeding, where he finds that it is necessary to do so to
    13  prevent substantial prejudice to any party or to expedite the
    14  conduct of the proceeding. The presiding officer or the
    15  commission may thereafter stay the proceeding if necessary to
    16  protect the substantial rights of any of the parties therein.
    17  The commission shall determine the question forthwith and the
    18  hearing and further decision shall thereafter be governed
    19  accordingly. No interlocutory appeal to the commission shall
    20  otherwise be allowed, except as may be allowed by the
    21  commission.
    22     (f)  Declaratory orders.--The commission, with like effect as
    23  in the case of other orders, and in its sound discretion, may
    24  issue a declaratory order to terminate a controversy or remove
    25  uncertainty.
    26     (g)  Official notice defined.--As used in this chapter the
    27  term "official notice" means a method by which the commission
    28  may notify all parties that no further evidence will be heard on
    29  a material fact and that unless the parties prove to the
    30  contrary, the commission's findings will include that particular
    19770H0489B3394                 - 39 -

     1  fact.
     2  § 332.  Procedures in general.
     3     (a)  Burden of proof.--Except as may be otherwise provided in
     4  section 315 (relating to burden of proof) or other provisions of
     5  this part or other relevant statute, the proponent of a rule or
     6  order has the burden of proof.
     7     (b)  Admissibility of evidence.--Any oral or documentary
     8  evidence may be received, but the commission shall as a matter
     9  of policy provide for the exclusion of irrelevant, immaterial or
    10  unduly repetitious evidence. No sanction shall be imposed or
    11  rule or order be issued except upon consideration of the whole
    12  record or such portions thereof as may be cited by any party and
    13  as supported by and in accordance with the reliable, probative
    14  and substantial evidence.
    15     (c)  Submission of evidence.--Every party is entitled to
    16  present his case or defense by oral or documentary evidence, to
    17  submit rebuttal evidence and to conduct such cross-examination
    18  as may be required for a full and true disclosure of the facts.
    19  The commission may, by rule, adopt procedures for the submission
    20  of all or part of the evidence in written form.
    21     (d)  Record, briefs and argument.--The transcript of
    22  testimony and exhibits, together with all papers and requests
    23  filed in the proceeding, constitutes the exclusive record for
    24  decision, and shall be available for inspection by the public.
    25  Briefing and oral argument shall be held in accordance with
    26  rules established by the commission.
    27     (e)  Official notice of facts.--When the commission's
    28  decision rests on official notice of a material fact not
    29  appearing in the evidence in the record, upon notification that
    30  facts are about to be or have been noticed, any party adversely
    19770H0489B3394                 - 40 -

     1  affected shall have the opportunity upon timely request to show
     2  that the facts are not properly noticed or that alternative
     3  facts should be noticed. The commission in its discretion shall
     4  determine whether written presentations suffice, or whether oral
     5  argument, oral evidence, or cross-examination is appropriate in
     6  the circumstances. Nothing in this subsection shall affect the
     7  application by the commission in appropriate circumstances of
     8  the doctrine of judicial notice.
     9     (f)  Actions of parties and counsel.--Any party who shall
    10  fail to be represented at a scheduled conference or hearing
    11  after being duly notified thereof, shall be deemed to have
    12  waived the opportunity to participate in such conference or
    13  hearing, and shall not be permitted thereafter to reopen the
    14  disposition of any matter accomplished thereat, or to recall for
    15  further examination of witnesses who were excused, unless the
    16  presiding officer shall determine that failure to be represented
    17  was unavoidable and that the interests of the other parties and
    18  the public would not be prejudiced by permitting such reopening
    19  or further examination. If the actions of a party or counsel in
    20  a proceeding shall be determined by the commission, after due
    21  notice and opportunity for hearing, to be obstructive to the
    22  orderly conduct of the proceeding and inimical to the public
    23  interest, the commission may reject or dismiss any rule or order
    24  in any manner proposed by the offending party or counsel, and,
    25  with respect to counsel, may bar further participation by him in
    26  any proceedings before the commission.
    27  § 333.  Prehearing procedures.
    28     (a)  Conferences.--The presiding officer shall have the
    29  authority to hold one or more prehearing conferences during the
    30  course of the proceeding on his own motion or at the request of
    19770H0489B3394                 - 41 -

     1  a party to the proceeding. The presiding officer shall normally
     2  hold at least one prehearing conference in proceedings where the
     3  issues are complex or where it appears likely that the hearing
     4  will last a considerable period of time. In addition to other
     5  matters which the commission may prescribe by rule, the
     6  presiding officer at a prehearing conference may direct the
     7  parties to exchange their evidentiary exhibits and witness lists
     8  prior to the hearing. Where good cause exists, the parties may
     9  at any time amend, by deletion or supplementation, their
    10  evidentiary exhibits and witness lists.
    11     (b)  Depositions.--A party to the proceeding shall be able to
    12  take depositions of witnesses upon oral examination or written
    13  questions for purposes of discovering relevant, unprivileged
    14  information, subject to the following conditions:
    15         (1)  The taking of depositions shall normally be deferred
    16     until there has been at least one prehearing conference.
    17         (2)  The party seeking to take a deposition shall apply
    18     to the presiding officer for an order to do so.
    19         (3)  The party seeking to take a deposition shall serve
    20     copies of the application on the other party or parties to
    21     the proceedings, who shall be given an opportunity, along
    22     with the deponent, to notify the presiding officer of any
    23     objections to the taking of the deposition.
    24         (4)  The presiding officer shall not grant an application
    25     to take a deposition if he finds that the taking of the
    26     deposition would result in undue delay.
    27         (5)  The presiding officer shall otherwise grant an
    28     application to take a deposition unless he finds that there
    29     is not good cause for doing so.
    30         (6)  The deposing of a commission employee shall only be
    19770H0489B3394                 - 42 -

     1     allowed upon an order of the presiding officer based on a
     2     specific finding that the party applying to take the
     3     deposition is seeking significant, unprivileged information
     4     not discoverable by alternative means. Any such order shall
     5     be subject to an interlocutory appeal to the commission.
     6         (7)  An order to take a deposition shall be enforceable
     7     through the issuance of a subpoena ad testificandum.
     8     (c)  Disclosure of information on witnesses.--At the
     9  prehearing conference or at some other reasonable time prior to
    10  the hearing, which may be established by commission rule, each
    11  party to the proceeding shall make available to the other
    12  parties to the proceeding the names of the witnesses he expects
    13  to call and the subject matter of their expected testimony.
    14  Where good cause exists, the parties shall have the right at any
    15  time to amend, by deletion or supplementation, the list of names
    16  of the witnesses they plan to call and the subject matter of the
    17  expected testimony of those witnesses.
    18     (d)  Interrogatories.--Any party to a proceeding may serve
    19  written interrogatories upon any other party for purposes of
    20  discovering relevant, unprivileged information. A party served
    21  with interrogatories may, before the time prescribed either by
    22  commission rule or otherwise for answering the interrogatories,
    23  apply to the presiding officer for the holding of a prehearing
    24  conference for the mutual exchange of evidence exhibits and
    25  other information. Each interrogatory which requests information
    26  not previously supplied at a prehearing conference or hearing
    27  shall be answered separately and fully in writing under oath,
    28  unless it is objected to, in which event the reasons for the
    29  objections shall be stated in lieu of an answer. The party upon
    30  whom the interrogatories have been served shall serve a copy of
    19770H0489B3394                 - 43 -

     1  the answers and objections within a reasonable time, unless
     2  otherwise specified, upon the party submitting the
     3  interrogatories. The party submitting the interrogatories may
     4  petition the presiding officer for an order compelling an answer
     5  to an interrogatory or interrogatories to which there has been
     6  an objection or other failure to answer. The commission shall
     7  designate an appropriate official on whom other parties to the
     8  proceeding may serve written interrogatories directed to the
     9  commission. That official shall arrange for agency personnel
    10  with knowledge of the facts to answer and sign the
    11  interrogatories on behalf of the commission. The attorney or
    12  employee appearing on behalf of the commission in the proceeding
    13  shall have the authority to make and sign objections to
    14  interrogatories served upon the commission. Interrogatories
    15  directed to the commission shall be allowed only upon an order
    16  of the commission based upon a specific finding that the
    17  interrogating party is seeking significant, unprivileged
    18  information not discoverable by alternative means.
    19     (e)  Requests for admissions.--A party to a proceeding may
    20  serve upon any other party and upon the commission to the same
    21  extent permissible in subsection (d) a written request for the
    22  admission, for purposes of the pending proceeding and to
    23  conserve hearing time, of any relevant, unprivileged, undisputed
    24  facts, the genuineness of any document described in the request,
    25  the admissibility of evidence, the order of proof and other
    26  similar matters.
    27     (f)  Subpoena duces tecum.--A party to a proceeding may
    28  obtain in accordance with commission rules a subpoena duces
    29  tecum requiring the production of or the making available for
    30  inspection, copying or photographing of relevant necessary
    19770H0489B3394                 - 44 -

     1  designated documents at a prehearing conference or other
     2  specific time and place.
     3     (g)  Scheduling.--The presiding officer shall have the
     4  authority to impose schedules on the parties to the proceeding
     5  specifying the periods of time during which the parties may
     6  pursue each means of discovery available to them under the rules
     7  of the commission. Such schedules and time periods shall be set
     8  with a view to accelerating disposition of the case to the
     9  fullest extent consistent with fairness.
    10     (h)  Certification of interlocutory appeals.--Except as
    11  provided in subsection (b)(6), an interlocutory appeal from a
    12  ruling of the presiding officer on discovery shall be allowed
    13  only upon certification by the presiding officer that the ruling
    14  involves an important question of law or policy which should be
    15  resolved at that time. Notwithstanding the presiding officer's
    16  certification, the commission shall have the authority to
    17  dismiss summarily the interlocutory appeal if it should appear
    18  that the certification was improvident. An interlocutory appeal
    19  shall not result in a stay of the proceedings except upon a
    20  finding by the presiding officer and the commission that
    21  extraordinary circumstances exist.
    22     (i)  Protective orders.--The presiding officer shall have the
    23  authority, upon motion by a party or by the person from whom
    24  discovery is sought, and for good cause shown, to make any
    25  order, subject to the rules of the commission, which justice
    26  requires to protect the party or person.
    27     (j)  Other subpoenas.--The presiding officer shall have the
    28  power in accordance with commission rules to issue subpoenas ad
    29  testificandum and duces tecum at any time during the course of
    30  the proceeding.
    19770H0489B3394                 - 45 -

     1  § 334.  Presiding officers.
     2     (a)  Presiding officers to decide.--The same presiding
     3  officer shall to the fullest extent possible preside at all the
     4  reception of evidence in a particular case to which he has been
     5  assigned. The same presiding officer who presides at the
     6  reception of evidence shall make the recommended decision or
     7  initial decision except where such presiding officer becomes
     8  unavailable to the commission.
     9     (b)  Outside consultation prohibited.--Save to the extent
    10  required for the disposition of ex parte matters not prohibited
    11  by this part, no presiding officer shall consult any person or
    12  party on any fact in issue unless upon notice and opportunity
    13  for all parties to participate; nor shall any presiding officer
    14  be responsible to or subject to the supervision or direction of
    15  any officer, employee or agent engaged in the performance of
    16  investigative or prosecuting functions for the commission. No
    17  employee, appointee, commissioner or official engaged in the
    18  service of, or in any manner connected with the commission shall
    19  engage in ex parte communications save to the extent permitted
    20  by this part. No officer, employee or agent engaged in the
    21  performance of investigative or prosecuting functions for the
    22  commission in any case shall, in that or a factually related
    23  case, participate or advise in the decision, recommended
    24  decision or commission review, except as witness or counsel in
    25  public proceedings.
    26     (c)  Ex parte communications.--Ex parte communications
    27  prohibited in this section shall mean any off-the-record
    28  communications to or by any member of the commission,
    29  administrative law judge, or employee of the commission,
    30  regarding the merits or any fact in issue of any matter pending
    19770H0489B3394                 - 46 -

     1  before the commission in any contested on-the-record proceeding.
     2  Contested on-the-record proceeding means a proceeding required
     3  by a statute, constitution, published commission rule or
     4  regulation or order in a particular case, to be decided on the
     5  basis of the record of a commission hearing, and in which a
     6  protest or a petition or notice to intervene in opposition to
     7  requested commission action has been filed. This subsection does
     8  not prohibit off-the-record communications to or by any employee
     9  of the commission prior to the actual beginning of hearings in a
    10  contested on-the-record proceeding when such communications are
    11  solely for the purpose of seeking clarification of or
    12  corrections in evidentiary materials intended for use in the
    13  subsequent hearings.
    14  § 335.  Initial decisions.
    15     (a)  Procedures.--When the commission does not preside at the
    16  reception of evidence, the presiding officer shall initially
    17  decide the case, unless the commission requires, either in
    18  specific cases or by general rule, the entire record to be
    19  certified to it for decision. When the presiding officer makes
    20  an initial decision, that decision then shall be approved by the
    21  commission and may become the opinion of the commission without
    22  further proceeding within the time provided by commission rule.
    23  On review of the initial decision, the commission has all the
    24  powers which it would have in making the initial decision except
    25  as it may limit the issues on notice or by rule. When the
    26  commission makes the decision in a rate determination proceeding
    27  without having presided at the reception of the evidence, the
    28  presiding officer shall make a recommended decision to the
    29  commission in accordance with the provisions of this part.
    30  Alternatively, in all other matters:
    19770H0489B3394                 - 47 -

     1         (1)  the commission may issue a tentative decision or one
     2     of its responsible employees may recommend a decision; or
     3         (2)  this procedure may be omitted in a case in which the
     4     commission finds on the record that due and timely execution
     5     of the functions imperatively and unavoidably so requires.
     6     (b)  Exceptions or proposed findings and conclusions.--Before
     7  a recommended, initial or tentative decision issued under this
     8  section, or a decision on commission review of the decision of
     9  subordinate employees, the parties are entitled to a reasonable
    10  opportunity to submit for the consideration of the commission:
    11         (1)  (i)  proposed findings and conclusions; or
    12             (ii)  exceptions to the decisions or recommended
    13         decisions of subordinate employees or to tentative
    14         commission decisions; and
    15         (2)  supporting reason for the exceptions or proposed
    16     findings or conclusions.
    17     (c)  Record.--The record shall show the ruling on each
    18  finding, conclusion or exception presented. All decisions,
    19  including initial, recommended and tentative decisions, are a
    20  part of the record and shall include a statement of:
    21         (1)  findings and conclusions, and the reasons or basis
    22     therefor, on all material issues of fact, law or discretion
    23     presented on the record; and
    24         (2)  the appropriate rule, order, sanction, relief or
    25     denial thereof.
    26                             SUBPART B
    27        COMMISSION POWERS, DUTIES, PRACTICES AND PROCEDURES
    28  Chapter
    29     5.  Powers and Duties
    30     7.  Procedure on Complaints
    19770H0489B3394                 - 48 -

     1     9.  Judicial Proceedings
     2                             CHAPTER 5
     3                         POWERS AND DUTIES
     4  Sec.
     5  501.  General powers.
     6  502.  Enforcement proceedings by commission.
     7  503.  Enforcement proceedings by Attorney General.
     8  504.  Reports by public utilities.
     9  505.  Duty to furnish information to commission; cooperation in
    10        valuing property.
    11  506.  Inspection of facilities and records.
    12  507.  Designation of statutory agent.                             <--
    13  508 507.  Contracts between public utilities and
    14        municipalities.
    15  509 508.  Power of the commission to vary, reform and revise      <--
    16        contracts.
    17  510 509.  Regulation of manufacture, sale or lease of             <--
    18        appliances.
    19  511 510.  Assessment for regulatory expenses upon public          <--
    20        utilities.
    21  512 511.  Disposition, appropriation and disbursement of          <--
    22        assessments and fees.
    23  513 512.  Power of commission to require insurance.               <--
    24  514 513.  Public letting of contracts.                            <--
    25  § 501.  General powers.
    26     (a)  Enforcement of provisions of part.--In addition to any
    27  powers expressly enumerated in this part, the commission shall
    28  have full power and authority, and it shall be its duty to
    29  enforce, execute and carry out, by its regulations, orders, or
    30  otherwise, all and singular, the provisions of this part, and
    19770H0489B3394                 - 49 -

     1  the full intent thereof; and shall have the power to rescind or
     2  modify any such regulations or orders. The express enumeration
     3  of the powers of the commission in this part shall not exclude
     4  any power which the commission would otherwise have under any of
     5  the provisions of this part.
     6     (b)  Administrative authority and regulations.--The
     7  commission shall have general administrative power and authority
     8  to supervise and regulate all public utilities doing business
     9  within this Commonwealth. The commission may make such
    10  regulations, not inconsistent with law, as may be necessary or
    11  proper in the exercise of its powers or for the performance of
    12  its duties.
    13     (c)  Compliance.--Every public utility, its officers, agents,
    14  and employees, and every other person or corporation subject to
    15  the provisions of this part, affected by or subject to any
    16  regulations or orders of the commission or of any court, made,
    17  issued, or entered under the provisions of this part, shall
    18  observe, obey, and comply with such regulations or orders, and
    19  the terms and conditions thereof.
    20  § 502.  Enforcement proceedings by commission.
    21     Whenever the commission shall be of opinion that any person
    22  or corporation, including a municipal corporation, is violating,
    23  or is about to violate, any provisions of this part; or has
    24  done, or is about to do, any act, matter, or thing herein
    25  prohibited or declared to be unlawful; or has failed, omitted,
    26  neglected, or refused, or is about to fail, omit, neglect, or
    27  refuse, to perform any duty enjoined upon it by this part, or
    28  has failed, omitted, neglected or refused, or is about to fail,
    29  omit, neglect, or refuse to obey any lawful requirement,
    30  regulation or order made by the commission; or any final
    19770H0489B3394                 - 50 -

     1  judgment, order, or decree made by any court, then and in every
     2  such case the commission may institute injunction, mandamus or
     3  other appropriate legal proceedings, to restrain such violations
     4  of the provisions of this part, or of the regulations, or orders
     5  of the commission, and to enforce obedience thereto. No           <--
     6  injunction bond shall be required to be filed by the commission.
     7  Such persons, corporations, or municipal corporations as the
     8  court may deem necessary or proper to be joined as parties, in
     9  order to make its judgment, order or writ effective, may be
    10  joined as parties. The final judgment in any such action or
    11  proceeding shall either dismiss the action or proceeding, or
    12  direct that the writ of mandamus or injunction issue or be made
    13  permanent as prayed for in the petition, or in such modified or
    14  other form as will afford appropriate relief.
    15  § 503.  Enforcement proceedings by Attorney General.
    16     The Attorney General, in addition to the exercise of the
    17  powers and duties now conferred upon him by law, shall also,
    18  upon request of the commission, or upon his own motion, proceed
    19  in the name of the Commonwealth, by mandamus, injunction, or quo
    20  warranto, or other appropriate remedy at law or, in equity, to
    21  restrain violations of the provisions of this part, or of the
    22  regulations or orders of the commission, or the judgments,
    23  orders, or decrees of any court, or to enforce obedience
    24  thereto.
    25  § 504.  Reports by public utilities.
    26     The commission may require any public utility to file
    27  periodical reports, at such times, and in such form, and of such
    28  content, as the commission may prescribe, and special reports
    29  concerning any matter whatsoever about which the commission is
    30  authorized to inquire, or to keep itself informed, or which it
    19770H0489B3394                 - 51 -

     1  is required to enforce. The commission may require any public
     2  utility to file with it a copy of any report filed by such
     3  public utility with any Federal department or regulatory body.
     4  All reports shall be under oath or affirmation when required by
     5  the commission.
     6  § 505.  Duty to furnish information to commission; cooperation
     7          in valuing property.
     8     Every public utility shall furnish to the commission, from
     9  time to time, and as the commission may require, all accounts,
    10  inventories, appraisals, valuations, maps, profiles, reports of
    11  engineers, books, papers, records, and other documents or
    12  memoranda, or copies of any and all of them, in aid of any
    13  inspection, examination, inquiry, investigation, or hearing, or
    14  in aid of any determination of the value of its property, or any
    15  portion thereof, and shall cooperate with the commission in the
    16  work of the valuation of its property, or any portion thereof,
    17  and shall furnish any and all other information to the
    18  commission, as the commission may require, in any inspection,
    19  examination, inquiry, investigation, hearing, or determination
    20  of such value of its property, or any portion thereof.
    21  § 506.  Inspection of facilities and records.
    22     The commission shall have full power and authority, either by
    23  or through its members, or duly authorized representatives,
    24  whenever it shall deem it necessary or proper in carrying out
    25  any of the provisions of, or its duties under this part, to
    26  enter upon the premises, buildings, machinery, system, plant,
    27  and equipment, and make any inspection, valuation, physical
    28  examination, inquiry, or investigation of any and all plant and
    29  equipment, facilities, property, and pertinent records, books,
    30  papers, accounts, maps, inventories, appraisals, valuations,
    19770H0489B3394                 - 52 -

     1  memoranda, documents, or effects whatsoever, of any public
     2  utility, or prepared or kept for it by others, and to hold any
     3  hearing for such purposes. In the performance of such duties,
     4  the commission may have access to, and use any books, records,
     5  or documents in the possession of, any department, board, or
     6  commission of the Commonwealth, or any political subdivision
     7  thereof.
     8  § 507.  Designation of statutory agent.                           <--
     9     Every public utility, contract carrier by motor vehicle, and
    10  broker shall file with the commission a designation in writing
    11  of the name and post office address of a person within this
    12  Commonwealth upon whom service of any notice, order, or process
    13  may be made under this part. Such designation may, from time to
    14  time, be changed by like writing similarly filed.
    15  § 508 507.  Contracts between public utilities and                <--
    16          municipalities.
    17     Except for a contract between a public utility and a
    18  municipal corporation to furnish service at the regularly filed
    19  and published tariff rates, no contract or agreement between any
    20  public utility and any municipal corporation shall be valid
    21  unless filed with the commission at least 30 days prior to its
    22  effective date. Upon notice to the municipal authorities, and
    23  the public utility concerned, the commission may, prior to the
    24  effective date of such contract or agreement, institute
    25  proceedings to determine the reasonableness, legality or any
    26  other matter affecting the validity thereof. Upon the
    27  institution of such proceedings, such contract or agreement
    28  shall not be effective until the commission grants its approval
    29  thereof.
    30  § 509 508.  Power of commission to vary, reform and revise        <--
    19770H0489B3394                 - 53 -

     1          contracts.
     2     The commission shall have power and authority to vary,
     3  reform, or revise, upon a fair, reasonable, and equitable basis,
     4  any obligations, terms, or conditions of any contract heretofore
     5  or hereafter entered into between any public utility and any
     6  person, corporation, or municipal corporation, which embrace or
     7  concern a public right, benefit, privilege, duty, or franchise,
     8  or the grant thereof, or are otherwise affected or concerned
     9  with the public interest and the general well-being of this
    10  Commonwealth. Whenever the commission shall determine, after
    11  reasonable notice and hearing, upon its own motion or upon
    12  complaint, that any such obligations, terms, or conditions are
    13  unjust, unreasonable, inequitable, or otherwise contrary or
    14  adverse to the public interest and the general well-being of
    15  this Commonwealth, the commission shall determine and prescribe,
    16  by findings and order, the just, reasonable, and equitable
    17  obligations, terms, and conditions of such contract. Such
    18  contract, as modified by the order of the commission, shall
    19  become effective 30 days after service of such order upon the
    20  parties to such contract.
    21  § 510 509.  Regulation of manufacture, sale or lease of           <--
    22          appliances.
    23     It is unlawful for any public utility engaged in the
    24  manufacture, sale, or lease of any appliance or equipment
    25  offered by such public utility for sale to the public to:
    26         (1)  Discontinue service to any consumer for failure of
    27     such consumer to pay the whole, or any installment, of the
    28     purchase price, or rental, of any appliance or equipment sold
    29     to such consumer.
    30         (2)  Apply to the purchase price or rental, or any part
    19770H0489B3394                 - 54 -

     1     thereof, of any appliance or equipment purchased by, or
     2     leased to, a consumer of the service of the public utility,
     3     any deposit or other moneys of the consumer in the possession
     4     of the public utility. This restriction does not apply to any
     5     claims of the public utility against such consumer when such
     6     claims arise from damages to meters or other facilities used
     7     to measure and ascertain the quantity of service rendered by
     8     the public utility.
     9         (3)  Employ in the manufacture, sale, or lease of any
    10     such appliance or equipment, any property used in, or revenue
    11     derived from, the rendering of service to the public, unless
    12     separate accounts as to the property used and the costs
    13     incurred by, and the revenue derived from, the manufacture,
    14     lease, or sale of such appliance or equipment are adopted,
    15     used, and kept by the public utility.
    16         (4)  Employ in the manufacture, sale, or lease of any
    17     such appliance or equipment, the service of any officer or
    18     employee engaged in rendering service to the public, unless
    19     separate accounts as to the amount paid to such officer or
    20     employee, while engaged in the manufacture, lease or sale of
    21     such appliance or equipment, and whether any amount be
    22     salary, bonus, commission, or expense are adopted, used, and
    23     kept by the public utility.
    24  § 511 510.  Assessment for regulatory expenses upon public        <--
    25          utilities.
    26     (a)  Determination of assessment.--Before March 1 of each
    27  year, the commission shall estimate its total expenditures in
    28  the administration of this part for the fiscal year beginning
    29  July of that year, which estimate shall not exceed three-tenths
    30  of 1% of the total gross intrastate operating revenues of the
    19770H0489B3394                 - 55 -

     1  public utilities under its jurisdiction for the preceding
     2  calendar year. Such estimate shall be submitted to the Governor,
     3  and to the appropriation committees of the House and Senate
     4  through their respective chairmen, for their respective
     5  approvals of such estimate in the amount submitted or such
     6  lesser amount as each of them may determine. Unless the
     7  Governor, or either committee through its chairman, shall notify
     8  the commission in writing of his or its action within 30 days
     9  after such submission, the estimate as submitted shall be deemed
    10  approved by him or by the committee. The least of the amounts so
    11  approved by the three approving authorities shall be the final
    12  estimate; and approval of such least amount shall constitute
    13  compliance with section 604 of the act of April 9, 1929
    14  (P.L.177, No.175), known as "The Administrative Code of 1929."
    15  The commission or its designated representatives shall be
    16  afforded an opportunity to appear before the Senate and House
    17  Appropriations Committees regarding their estimates. The
    18  commission shall subtract from the final estimate:
    19         (1)  the estimated fees to be collected pursuant to
    20     section 317 (relating to fees for services rendered by
    21     commission); and
    22         (2)  the estimated balance of the appropriation,
    23     specified in section 512 511 (relating to disposition,         <--
    24     appropriation and disbursement of assessments and fees), to
    25     be carried over into such fiscal year from the preceding one.
    26  The remainder so determined, herein called the total assessment,
    27  shall be allocated to, and paid by, such public utilities in the
    28  manner prescribed in this part.
    29     (b)  Allocation of assessment.--On or before March 31 of each
    30  year, every public utility shall file with the commission a
    19770H0489B3394                 - 56 -

     1  statement under oath showing its gross intrastate operating
     2  revenues for the preceding calendar year. If any public utility
     3  shall fail to file such statement on or before March 31, the
     4  commission shall estimate such revenues, which estimate shall be
     5  binding upon the public utility for the purposes of this
     6  section. For each fiscal year, the allocation shall be made as
     7  follows:
     8         (1)  The commission shall determine for the preceding
     9     calendar year the amount of its expenditures directly
    10     attributable to the regulation of each group of utilities
    11     furnishing the same kind of service, and debit the amount so
    12     determined to such group.
    13         (2)  The commission shall also determine for the
    14     preceding calendar year the balance of its expenditures, not
    15     debited as aforesaid, and allocate such balance to each group
    16     in the proportion which the gross intrastate operating
    17     revenues of such group for that year bear to the gross
    18     intrastate operating revenues of all groups for that year.
    19         (3)  The commission shall then allocate the total
    20     assessment prescribed by subsection (a) to each group in the
    21     proportion which the sum of the debits made to it bears to
    22     the sum of the debits made to all groups.
    23         (4)  Each public utility within a group shall then be
    24     assessed for and shall pay to the commission such proportion
    25     of the amount allocated to its group as the gross intrastate
    26     operating revenues of the public utility for the preceding
    27     calendar year bear to the total gross intrastate operating
    28     revenues of its group for that year.
    29     (c)  Notice, hearing and payment.--The commission shall give
    30  notice by registered or certified mail to each public utility of
    19770H0489B3394                 - 57 -

     1  the amount lawfully charged against it under the provisions of
     2  this section, which amount shall be paid by the public utility
     3  within 30 days of receipt of such notice, unless the commission
     4  specifies on the notices sent to all public utilities an
     5  installment plan of payment, in which case each public utility
     6  shall pay each installment on or before the date specified
     7  therefor by the commission. Within 15 days after receipt of such
     8  notice, the public utility against which such assessment has
     9  been made may file with the commission objections setting out in
    10  detail the grounds upon which the objector regards such
    11  assessment to be excessive, erroneous, unlawful or invalid. The
    12  commission, after notice to the objector, shall hold a hearing
    13  upon such objections. After such hearing, the commission shall
    14  record upon its minutes its findings on the objections and shall
    15  transmit to the objector, by registered or certified mail,
    16  notice of the amount, if any, charged against it in accordance
    17  with such findings, which amount or any installment thereof then
    18  due, shall be paid by the objector within ten days after receipt
    19  of notice of the findings of the commission with respect to such
    20  objections. If any payment prescribed by this subsection is not
    21  made as aforesaid, the commission may suspend or revoke
    22  certificates of public convenience, certify automobile
    23  registrations to the Department of Transportation for suspension
    24  or revocation or, through the Department of Justice, may
    25  institute an appropriate action at law for the amount lawfully
    26  assessed, together with any additional cost incurred by the
    27  commission or the Department of Justice by virtue of such
    28  failure to pay.
    29     (d)  Suits by public utilities.--No suit or proceeding shall
    30  be maintained in any court for the purpose of restraining or in
    19770H0489B3394                 - 58 -

     1  anywise delaying the collection or payment of any assessment
     2  made under subsections (a), (b) and (c), but every public
     3  utility against which an assessment is made shall pay the same
     4  as provided in subsection (c). Any public utility making any
     5  such payment may, at any time within two years from the date of
     6  payment, sue the Commonwealth in an action at law to recover the
     7  amount paid, or any part thereof, upon the ground that the
     8  assessment was excessive, erroneous, unlawful, or invalid, in
     9  whole or in part, provided objections, as hereinbefore provided,
    10  were filed with the commission, and payment of the assessment
    11  was made under protest either as to all or part thereof. In any
    12  action for recovery of any payments made under this section, the
    13  claimant shall be entitled to raise every relevant issue of law,
    14  but the findings of fact made by the commission, pursuant to
    15  this section, shall be prima facie evidence of the facts therein
    16  stated. Any records, books, data, documents, and memoranda
    17  relating to the expenses of the commission shall be admissible
    18  in evidence in any court and shall be prima facie evidence of
    19  the truth of their contents. If it is finally determined in any
    20  such action that all or any part of the assessment for which
    21  payment was made under protest was excessive, erroneous,
    22  unlawful, or invalid, the commission shall make a refund to the
    23  claimant out of the appropriation specified in section 512 511    <--
    24  as directed by the court.
    25     (e)  Certain provisions not applicable.--The provisions of
    26  this part relating to the judicial review of orders and
    27  determinations of the commission shall not be applicable to any
    28  findings, determinations, or assessments made under this
    29  section. The procedure in this section providing for the
    30  determination of the lawfulness of assessments and the recovery
    19770H0489B3394                 - 59 -

     1  back of payments made pursuant to such assessment shall be
     2  exclusive of all other remedies and procedures.
     3     (f)  Intent of section.--It is the intent and purpose of this
     4  section that each public utility subject to this part shall
     5  advance to the commission its reasonable share of the cost of
     6  administering this part. The commission shall keep records of
     7  the costs incurred in connection with the administration and
     8  enforcement of this part or any other statute. The commission
     9  shall also keep a record of the manner in which it shall have
    10  computed the amount assessed against every public utility. Such
    11  records shall be open to inspection by all interested parties.
    12  The determination of such costs and assessments by the
    13  commission, and the records and data upon which the same are
    14  made, shall be considered prima facie correct; and in any
    15  proceeding instituted to challenge the reasonableness or
    16  correctness of any assessment under this section, the party
    17  challenging the same shall have the burden of proof.
    18     (g)  Saving provision.--This section does not affect or
    19  repeal any of the provisions of the act of July 31, 1968
    20  (P.L.769, No.240), known as the "Commonwealth Documents Law."
    21  § 512 511.  Disposition, appropriation and disbursement of        <--
    22          assessments and fees.
    23     (a)  Payment into General Fund.--All assessments and fees
    24  received, collected or recovered under this chapter shall be
    25  paid by the commission into the General Fund of the State
    26  Treasury through the Department of Revenue.
    27     (b)  Use and appropriation of funds.--All such assessments
    28  and fees, having been advanced by public utilities for the
    29  purpose of defraying the cost of administering this part, shall
    30  be held in trust solely for that purpose, and shall be earmarked
    19770H0489B3394                 - 60 -

     1  for the use of, and are hereby appropriated to, the commission
     2  for disbursement solely for that purpose.
     3     (c)  Requisition of funds.--All requisitions upon such
     4  appropriation shall be signed by the chairman and secretary of
     5  the commission, or such deputies as they may designate in
     6  writing to the State Treasurer, and shall be presented to the
     7  State Treasurer and dealt with by him and the Treasury
     8  Department in the manner prescribed by the act of April 9, 1929
     9  (P.L.343, No.176), known as "The Fiscal Code."
    10  § 513 512.  Power of commission to require insurance.             <--
    11     The commission may, as to motor carriers, prescribe, by
    12  regulation or order, such requirements as it may deem necessary
    13  for the protection of persons or property of their patrons and
    14  the public, including the filing of surety bonds, the carrying
    15  of insurance, or the qualifications and conditions under which
    16  such carriers may act as self-insurers with respect to such
    17  matters. All motor carriers of passengers, whose current liquid
    18  assets do not exceed their current liabilities by at least
    19  $100,000, shall cover each and every vehicle, transporting such
    20  passengers, with a public liability insurance policy or a surety
    21  bond issued by an insurance carrier or a bonding company
    22  authorized to do business in this Commonwealth, in such amounts
    23  as the commission may prescribe, but not less than $5,000 for
    24  one and $10,000 for more than one person injured in any one
    25  accident.
    26  § 514 513.  Public letting of contracts.                          <--
    27     Whenever the commission deems that the public interest so
    28  requires, it may direct, by regulation or order, that any public
    29  utility shall award contracts or agreements for the
    30  construction, improvement, or extension, of its plant or system
    19770H0489B3394                 - 61 -

     1  to the lowest responsible bidder, after a public offering has
     2  been made, after advertisement and notice. Any such public
     3  utility may participate as a bidder in any such public offering.
     4  The commission may prescribe regulations relative to such
     5  advertisement, notice, and public letting.
     6                             CHAPTER 7
     7                      PROCEDURE ON COMPLAINTS
     8  Sec.
     9  701.  Complaints.
    10  702.  Service of complaints on parties.
    11  703.  Fixing of hearings.
    12  § 701.  Complaints.
    13     The commission, or any person, corporation, or municipal
    14  corporation having an interest in the subject matter, or any
    15  public utility concerned, may complain in writing, setting forth
    16  any act or thing done or omitted to be done by any public
    17  utility in violation, or claimed violation, of any law which the
    18  commission has jurisdiction to administer, or of any regulation
    19  or order of the commission. Any public utility, or other person,
    20  or corporation likewise may complain of any regulation or order
    21  of the commission, which the complainant is or has been required
    22  by the commission to observe or carry into effect. The
    23  Commonwealth through the Attorney General may be a complainant
    24  before the commission in any matter solely as an advocate for
    25  the Commonwealth as a consumer of public utility services. The
    26  commission may prescribe the form of complaints filed under this
    27  section.
    28  § 702.  Service of complaints on parties.
    29     Upon the filing of a complaint, the commission shall cause to
    30  be served upon each party named in the complaint a copy of the
    19770H0489B3394                 - 62 -

     1  complaint and notice from the commission calling upon such party
     2  to satisfy the complaint, or to answer the same in writing,
     3  within such time as is specified by the commission in the
     4  notice. Service in all hearings, investigations and proceedings
     5  pending before the commission shall be made by registered or
     6  certified mail.
     7  § 703.  Fixing of hearings.
     8     (a)  Satisfaction of complaint or hearing.--If any party
     9  complained against, within the time specified by the commission,
    10  shall satisfy the complaint, the commission shall dismiss the
    11  complaint. Such party shall be relieved from responsibility only
    12  for the specific matter complained of. If such party shall not
    13  satisfy the complaint within the time specified, and it shall
    14  appear to the commission from a consideration of the complaint
    15  and answer, or otherwise, that reasonable ground exists for
    16  investigating such complaint, it shall be the duty of the
    17  commission to fix a time and place for a hearing.
    18     (b)  Notice of hearing.--The commission shall fix the time
    19  and place of hearing, within or without this Commonwealth, if
    20  any is required, and shall serve notice thereof upon parties in
    21  interest. The commission may dismiss any complaint without a
    22  hearing if, in its opinion, a hearing is not necessary in the
    23  public interest.
    24     (c)  Hearing and record.--All hearings before the commission,
    25  or its representative, shall be public, and shall be conducted
    26  in accordance with such regulations as the commission may
    27  prescribe. A full and complete record shall be kept of all
    28  proceedings had before the commission, or its representative, on
    29  any formal hearing, and all testimony shall be taken down by a
    30  reporter appointed by the commission, and the parties shall be
    19770H0489B3394                 - 63 -

     1  entitled to be heard in person or by attorney, and to introduce
     2  evidence.
     3     (d)  Informal hearings.--The commission may, in addition to
     4  the hearings specially provided by this part, conduct such other
     5  hearings as may be required in the administration of the powers
     6  and duties conferred upon it by this part and by other acts
     7  relating to public utilities. Reasonable notice of all such
     8  hearings shall be given the persons interested therein.
     9     (e)  Decisions by commission.--After the conclusion of the
    10  hearing, the commission shall make and file its findings and
    11  order with its opinion, if any. Its findings shall be in
    12  sufficient detail to enable the court on appeal, to determine
    13  the controverted question presented by the proceeding, and
    14  whether proper weight was given to the evidence. A copy of such
    15  order, certified under the seal of the commission, shall be
    16  served by registered or certified mail upon the party or parties
    17  against whom it runs, or his attorney, and notice thereof shall
    18  be given to the other parties to the proceedings or their
    19  attorney. Such order shall take effect and become operative as
    20  designated therein, and shall continue in force either for a
    21  period which may be designated therein, or until changed or
    22  revoked by the commission. The commission may grant and
    23  prescribe such additional time as, in its judgment, is
    24  reasonably necessary to comply with the order, and may, on
    25  application and for good cause shown, extend the time for
    26  compliance fixed in its order.
    27     (f)  Rehearing.--After an order has been made by the
    28  commission, any party to the proceedings may, within 15 days
    29  after the service of the order, apply for a rehearing in respect
    30  of any matters determined in such proceedings and specified in
    19770H0489B3394                 - 64 -

     1  the application for rehearing, and the commission may grant and
     2  hold such rehearing on such matters. No application for a
     3  rehearing shall in anywise operate as a supersedeas, or in any
     4  manner stay or postpone the enforcement of any existing order,
     5  except as the commission may, by order, direct. If the
     6  application be granted, the commission may affirm, rescind, or
     7  modify its original order.
     8     (g)  Rescission and amendment of orders.--The commission may,
     9  at any time, after notice and after opportunity to be heard as
    10  provided in this chapter, rescind or amend any order made by it.
    11  Any order rescinding or amending a prior order shall, when
    12  served upon the person, corporation, or municipal corporation
    13  affected, and after notice thereof is given to the other parties
    14  to the proceedings, have the same effect as is herein provided
    15  for original orders.
    16                             CHAPTER 9
    17                        JUDICIAL PROCEEDINGS
    18  Sec.
    19  901.  Right to trial by jury.
    20  902.  Costs on review.
    21  903.  Restriction on injunctions.
    22  § 901.  Right to trial by jury.
    23     Nothing in this part shall be construed to deprive any party,
    24  upon any judicial review of the proceedings and orders of the
    25  commission, of the right to trial by jury of any issue of fact
    26  raised thereby or therein, where such right is secured either by
    27  the Constitution of Pennsylvania or the Constitution of the
    28  United States, but in every such case such right of trial by
    29  jury shall remain inviolate. When any judicial review is sought,
    30  such right shall be deemed to be waived upon all issues, unless
    19770H0489B3394                 - 65 -

     1  expressly reserved in such manner as shall be prescribed by the
     2  court.
     3  § 902.  Costs on review.
     4     The costs resulting from any review may not be imposed on the
     5  commission except in cases where the complaint or proceeding was
     6  instituted by the commission.
     7  § 903.  Restriction on injunctions.
     8     No injunction shall issue modifying, suspending, staying or
     9  annulling any order of the commission, or of a commissioner,
    10  except in a proceeding questioning the jurisdiction of the
    11  commission and then only after cause shown upon a hearing.
    12                             SUBPART C
    13              REGULATION OF PUBLIC UTILITIES GENERALLY
    14  Chapter
    15    11.  Certificates of Public Convenience
    16    13.  Rates and Rate Making
    17    15.  Service and Facilities
    18    17.  Accounting and Budgetary Matters
    19    19.  Securities and Obligations
    20    21.  Relations with Affiliated Interests
    21                             CHAPTER 11
    22                 CERTIFICATES OF PUBLIC CONVENIENCE
    23  Sec.
    24  1101.  Organization of public utilities and beginning of
    25         service.
    26  1102.  Enumeration of acts requiring certificate.
    27  1103.  Procedure to obtain certificates of public convenience.
    28  1104.  Certain appropriations by right of eminent domain
    29         prohibited.
    30  § 1101.  Organization of public utilities and beginning of
    19770H0489B3394                 - 66 -

     1           service.
     2     Upon the application of any proposed public utility and the
     3  approval of such application by the commission evidenced by its
     4  certificate of public convenience first had and obtained, it
     5  shall be lawful for any such proposed public utility to begin to
     6  offer, render, furnish, or supply service within this
     7  Commonwealth. The commission's certificate of public convenience
     8  granted under the authority of this section shall include a
     9  description of the nature of the service and of the territory in
    10  which it may be offered, rendered, furnished or supplied.
    11  § 1102.  Enumeration of acts requiring certificate.
    12     (a)  General rule.--Upon the application of any public
    13  utility and the approval of such application by the commission,
    14  evidenced by its certificate of public convenience first had and
    15  obtained, and upon compliance with existing laws, it shall be
    16  lawful:
    17         (1)  For any public utility to begin to offer, render,
    18     furnish or supply within this Commonwealth service of a
    19     different nature or to a different territory than that
    20     authorized by:
    21             (i)  A certificate of public convenience granted
    22         under this part or under the former provisions of the act
    23         of July 26, 1913 (P.L.1374, No.854), known as "The Public
    24         Service Company Law," or the act of May 28, 1937
    25         (P.L.1053, No.286), known as the "Public Utility Law."
    26             (ii)  An unregistered right, power or privilege
    27         preserved by section 103 (relating to prior rights
    28         preserved).
    29         (2)  For any public utility to abandon or surrender, in
    30     whole or in part, any service, except that this provision is
    19770H0489B3394                 - 67 -

     1     not applicable to discontinuance of service to a patron for
     2     nonpayment of a bill, or upon request of a patron.
     3         (3)  For any public utility or an affiliated interest of
     4     a public utility as defined in section 2101 (relating to
     5     definition of affiliated interest), except a common carrier
     6     by railroad subject to the Interstate Commerce Act, to
     7     acquire from, or to transfer to, any person or corporation,
     8     including a municipal corporation, by any method or device
     9     whatsoever, including the sale or transfer of stock and
    10     including a consolidation, merger, sale or lease, the title
    11     to, or the possession or use of, any tangible or intangible
    12     property used or useful in the public service. Such approval
    13     shall not be required if:
    14             (i)  the undepreciated book value of the property to
    15         be acquired or transferred does not exceed $1,000;
    16             (ii)  the undepreciated book value of the property to
    17         be acquired or transferred does not exceed the lesser of:
    18                 (A)  2% of the undepreciated book value of all
    19             fixed assets of such public utility; or
    20                 (B)  $5,000 in the case of personalty or $50,000
    21             in the case of realty;
    22             (iii)  the property to be acquired is to be installed
    23         new as a part of or consumed in the operation of the used
    24         and useful property of such public utility; or
    25             (iv)  the property to be transferred by such public
    26         utility is obsolete, worn out or otherwise unserviceable.
    27     Subparagraphs (i) through (iv) shall not be applicable, and
    28     approval of the commission evidenced by a certificate of
    29     public convenience shall be required, if any such acquisition
    30     or transfer of property involves a transfer of patrons.
    19770H0489B3394                 - 68 -

     1         (4)  For any public utility to acquire 5% or more of the
     2     voting capital stock of any corporation.
     3         (5)  For any municipal corporation to acquire, construct,
     4     or begin to operate, any plant, equipment, or other
     5     facilities for the rendering or furnishing to the public of
     6     any public utility service beyond its corporate limits.
     7     (b)  Protection of railroad employees.--As a condition of its
     8  approval of any transaction covered by this section and
     9  involving those railroad carriers wholly located within this
    10  Commonwealth subject to the provisions of this part, the
    11  commission shall require a fair and equitable arrangement to
    12  protect the interests of the railroad employees affected and the
    13  commission shall include in its order of approval the terms and
    14  conditions it deems fair and equitable for the protection of the
    15  employees. The terms and conditions which the commission
    16  prescribes shall provide that, during the period of four years
    17  from the effective date of the order, the employees of the
    18  railroad carrier affected by the order shall not be in a worse
    19  position with respect to their employment except that any
    20  protection afforded an employee shall not be required to
    21  continue for a period longer than that during which the employee
    22  was in the employ of the railroad carrier prior to the effective
    23  date of the order. Notwithstanding any other provision of this
    24  section, the commission may accept as fair and equitable an
    25  agreement pertaining to the protection of the interests of the
    26  employees entered into by the railroad carrier and the duly
    27  authorized representatives of the employees.
    28  § 1103.  Procedure to obtain certificates of public
    29           convenience.
    30     (a)  General rule.--Every application for a certificate of
    19770H0489B3394                 - 69 -

     1  public convenience shall be made to the commission in writing,
     2  be verified by oath or affirmation, and be in such form, and
     3  contain such information, as the commission may require by its
     4  regulations. A certificate of public convenience shall be
     5  granted by order of the commission, only if the commission shall
     6  find or determine that the granting of such certificate is
     7  necessary or proper for the service, accommodation, convenience,
     8  or safety of the public. The commission, in granting such
     9  certificate, may impose such conditions as it may deem to be
    10  just and reasonable. In every case, the commission shall make a
    11  finding or determination in writing, stating whether or not its
    12  approval is granted. Any holder of a certificate of public
    13  convenience, exercising the authority conferred by such
    14  certificate, shall be deemed to have waived any and all
    15  objections to the terms and conditions of such certificate.
    16     (b)  Investigations and hearings.--For the purpose of
    17  enabling the commission to make such finding or determination,
    18  it shall hold such hearings, which shall be public, and, before
    19  or after hearing, it may make such inquiries, physical
    20  examinations, valuations, and investigations, and may require
    21  such plans, specifications, and estimates of cost, as it may
    22  deem necessary or proper in enabling it to reach a finding or
    23  determination.
    24  § 1104.  Certain appropriations by right of eminent domain
    25           prohibited.
    26     Unless its power of eminent domain existed under prior law,
    27  no domestic public utility or foreign public utility authorized
    28  to do business in this Commonwealth shall exercise any power of
    29  eminent domain within this Commonwealth until it shall have
    30  received the certificate of public convenience required by
    19770H0489B3394                 - 70 -

     1  section 1101 (relating to organization of public utilities and
     2  beginning of service).
     3                             CHAPTER 13
     4                       RATES AND RATE MAKING
     5  Sec.
     6  1301.  Rates to be just and reasonable.
     7  1302.  Tariffs; filing and inspection.
     8  1303.  Adherence to tariffs.
     9  1304.  Discrimination in rates.
    10  1305.  Advance payment of rates; interest on deposits.
    11  1306.  Apportionment of joint rates.
    12  1307.  Sliding scale of rates; adjustments.
    13  1308.  Voluntary changes in rates.
    14  1309.  Rates fixed on complaint; investigation of costs of
    15         production.
    16  1310.  Temporary rates.
    17  1311.  Valuation of property of a public utility.
    18  1312.  Refunds.
    19  1313.  Price upon resale of public utility services.
    20  § 1301.  Rates to be just and reasonable.
    21     Every rate made, demanded, or received by any public utility,
    22  or by any two or more public utilities jointly, shall be just
    23  and reasonable, and in conformity with regulations or orders of
    24  the commission. Only public utility service being furnished or
    25  rendered by a municipal corporation, or by the operating
    26  agencies of any municipal corporation, beyond its corporate
    27  limits, shall be subject to regulation and control by the
    28  commission as to rates, with the same force, and in like manner,
    29  as if such service were rendered by a public utility.
    30  § 1302.  Tariffs; filing and inspection.
    19770H0489B3394                 - 71 -

     1     Under such regulations as the commission may prescribe, every
     2  public utility shall file with the commission, within such time
     3  and in such form as the commission may designate, tariffs
     4  showing all rates established by it and collected or enforced,
     5  or to be collected or enforced, within the jurisdiction of the
     6  commission. The tariffs of any public utility also subject to
     7  the jurisdiction of a Federal regulatory body shall correspond,
     8  so far as practicable, to the form of those prescribed by such
     9  Federal regulatory body. Every public utility shall keep copies
    10  of such tariffs open to public inspection under such rules and
    11  regulations as the commission may prescribe.
    12  § 1303.  Adherence to tariffs.
    13     No public utility shall, directly or indirectly, by any
    14  device whatsoever, or in anywise, demand or receive from any
    15  person, corporation, or municipal corporation a greater or less
    16  rate for any service rendered or to be rendered by such public
    17  utility than that specified in the tariffs of such public
    18  utility applicable thereto. The rates specified in such tariffs
    19  shall be the lawful rates of such public utility until changed,
    20  as provided in this part. Any public utility, having more than
    21  one rate applicable to service rendered to a patron, shall,
    22  after notice of service conditions, compute bills under the rate
    23  most advantageous to the patron.
    24  § 1304.  Discrimination in rates.
    25     No public utility shall, as to rates, make or grant any
    26  unreasonable preference or advantage to any person, corporation,
    27  or municipal corporation, or subject any person, corporation, or
    28  municipal corporation to any unreasonable prejudice or
    29  disadvantage. No public utility shall establish or maintain any
    30  unreasonable difference as to rates, either as between
    19770H0489B3394                 - 72 -

     1  localities or as between classes of service. Unless specifically
     2  authorized by the commission, no public utility shall make,
     3  demand, or receive any greater rate in the aggregate for the
     4  transportation of passengers or property of the same class, or
     5  for the transmission of any message or conversation for a
     6  shorter than for a longer distance over the same line or route
     7  in the same direction, the shorter being included within the
     8  longer distance, or any greater rate as a through rate than the
     9  aggregate of the intermediate rates. This section does not
    10  prohibit the establishment of reasonable zone or group systems,
    11  or classifications of rates or, in the case of common carriers,
    12  the issuance of excursion, commutation, or other special tickets
    13  at special rates, or the granting of nontransferable free
    14  passes, or passes at a discount to any officer, employee, or
    15  pensioner of such common carrier. No rate charged by a
    16  municipality for any public utility service rendered or
    17  furnished beyond its corporate limits shall be considered
    18  unjustly discriminatory solely by reason of the fact that a
    19  different rate is charged for a similar service within its
    20  corporate limits.
    21  § 1305.  Advance payment of rates; interest on deposits.
    22     No public utility shall require the payment of rates in
    23  advance, or the making of minimum payments, ready to serve
    24  charges, or deposits to secure future payments of rates, except
    25  as the commission, by regulation or order, may permit. Any
    26  deposit made by any domestic consumer, under the provisions of
    27  this section or under any repealed statute supplied by this
    28  part, shall be returned with any interest due thereon to the
    29  consumer making such deposit when he shall have paid undisputed
    30  bills for service over a period of 12 consecutive months.
    19770H0489B3394                 - 73 -

     1  § 1306.  Apportionment of joint rates.
     2     Where public utilities entitled to share in any joint rate
     3  shall be unable to agree upon the division thereof, or shall
     4  make any unjust or unreasonable division or apportionment
     5  thereof, the commission may, after hearing, upon its own motion
     6  or upon complaint, fix the proportion to which each public
     7  utility shall be entitled.
     8  § 1307.  Sliding scale of rates; adjustments.
     9     (a)  General rule.--Any public utility, except a common
    10  carrier, may establish a sliding scale of rates or such other
    11  method for the automatic adjustment of the rates of the public
    12  utility as shall provide a just and reasonable return on the
    13  fair value of the property used and useful in the public
    14  service, to be determined upon such equitable or reasonable
    15  basis as shall provide such fair return. A tariff showing the
    16  scale of rates under such arrangement shall first be filed with
    17  the commission, and such tariff, and each rate set out therein,
    18  approved by it. The commission may revoke its approval at any
    19  time and fix other rates for any such public utility if, after
    20  notice and hearing, the commission finds the existing rates
    21  unjust or unreasonable.
    22     (b)  Mandatory system for automatic adjustment.--The
    23  commission, by regulation or order, upon reasonable notice and
    24  after hearing, may prescribe for any class of public utilities,
    25  except a common carrier, a mandatory system for the automatic
    26  adjustment of their rates, by means of a sliding scale of rates
    27  or other method, on the same basis as provided in subsection
    28  (a), to become effective when and in the manner prescribed in
    29  such regulation or order. Every such public utility shall,
    30  within such time as shall be prescribed by the commission, file
    19770H0489B3394                 - 74 -

     1  tariffs showing the rates established in accordance with such
     2  regulation or order.
     3     (c)  Fuel cost adjustment.--In any method automatically
     4  adjusting rates to reflect changes in fossil fuel cost under
     5  this section, the fuel cost used in computing the adjustment
     6  shall be limited, in the case of an electric utility, to the
     7  cost of such fuel delivered to the utility at the generating
     8  site at which it is to be consumed, and the cost of disposing of
     9  solid waste from scrubbers or other devices designed so that the
    10  consumption of Pennsylvania-mined coal at the generating site
    11  would comply with the sulfur oxide emission standards prescribed
    12  by the Commonwealth. The cost of fuel handling after such
    13  delivery, or of waste disposal, other than as prescribed in this
    14  section, shall be excluded from such computation. In any method
    15  automatically adjusting rates to reflect changes in fuel cost
    16  other than fossil fuel cost under this section, the fuel cost
    17  used in computing the adjustment shall be limited, in the case
    18  of an electric utility, to the cost of such fuel delivered to
    19  the utility at the generating site at which it is to be consumed
    20  after deducting therefrom the present salvage or reuse value of
    21  such fuel, as shall be established by commission rule or order.
    22     (d)  Fuel cost adjustment audits.--The commission shall
    23  conduct or cause to be conducted, at such times as it may order,
    24  but at least annually, an audit of each public utility which, by
    25  any method described in this section, automatically adjusts its
    26  rates to reflect changes in its fuel costs, which audit shall
    27  enable the commission to determine the propriety and correctness
    28  of amounts billed and collected under this section. Whoever
    29  performs the audit shall be a person knowledgable in the subject
    30  matter encompassed within the operation of the automatic
    19770H0489B3394                 - 75 -

     1  adjustment clause. The auditors report shall be in a form and
     2  manner directed by the commission.
     3     (e)  Automatic adjustment reports and proceedings.--
     4         (1)  Within 30 days following the end of such 12-month
     5     period as the commission shall designate, each public utility
     6     using an automatic adjustment clause shall file with the
     7     commission a statement which shall specify for such period:
     8             (i)  the total revenues received pursuant to the
     9         automatic adjustment clause;
    10             (ii)  the total amount of that expense or class of
    11         expenses incurred which is the basis of the automatic
    12         adjustment clause; and
    13             (iii)  the difference between the amounts specified
    14         by subparagraphs (i) and (ii).
    15     Such report shall be a matter of public record and copies
    16     thereof shall be made available to any person upon request to
    17     the commission.
    18         (2)  Within 60 days following the submission of such
    19     report by a public utility, the commission shall hold a
    20     public hearing on the substance of the report and any matters
    21     pertaining to the use by such public utility of such
    22     automatic adjustment clause in the preceding period and may
    23     include the present and subsequent periods.
    24         (3)  Absent good reason being shown to the contrary, the
    25     commission shall, within 60 days following such hearing, by
    26     order direct each such public utility to, over an appropriate
    27     12-month period, refund to its patrons an amount equal to
    28     that by which its revenues received pursuant to such
    29     automatic adjustment clause exceeded the amount of such
    30     expense or class of expenses, or recover from its patrons an
    19770H0489B3394                 - 76 -

     1     amount equal to that by which such expense or class of
     2     expenses exceeded the revenues received pursuant to such
     3     automatic adjustment clause.
     4         (4)  For the purpose of this subsection, where a 12-month
     5     report period and 12-month refund or recovery period shall
     6     have been previously established or designated, nothing in
     7     this section shall impair the continued use of such
     8     previously established or designated periods nor shall
     9     anything in this section prevent the commission from amending
    10     at any time any method used by any utility in automatically
    11     adjusting its rates, so as to provide the commission more
    12     adequate supervision of the administration by a utility of
    13     such method and to decrease the likelihood of collection by a
    14     utility, in subsequent periods, of amounts greater or less
    15     than that to which it is entitled, or, in the event that such
    16     deficiency or surplus in collected amounts is found, more
    17     prompt readjustment thereof.
    18  § 1308.  Voluntary changes in rates.
    19     (a)  General rule.--Unless the commission otherwise orders,
    20  no public utility shall make any change in any existing and duly
    21  established rate, except after 60 days notice to the commission,
    22  which notice shall plainly state the changes proposed to be made
    23  in the rates then in force, and the time when the changed rates
    24  will go into effect. The public utility shall also give such
    25  notice of the proposed changes to other interested persons as
    26  the commission in its discretion may direct. All proposed
    27  changes shall be shown by filing new tariffs, or supplements to
    28  existing tariffs filed and in force at the time. The commission,
    29  for good cause shown, may allow changes in rates, without
    30  requiring the 60 days notice, under such conditions as it may
    19770H0489B3394                 - 77 -

     1  prescribe.
     2     (b)  Hearing and suspension of rate change.--Whenever there
     3  is filed with the commission by any public utility any tariff
     4  stating a new rate, the commission may, either upon complaint or
     5  upon its own motion, upon reasonable notice, enter upon a
     6  hearing concerning the lawfulness of such rate, and pending such
     7  hearing and the decision thereon, the commission, upon filing
     8  with such tariff and delivering to the public utility affected
     9  thereby a statement in writing of its reasons therefor, may, at
    10  any time before it becomes effective, suspend the operation of
    11  such rate for a period not longer than six months from the time
    12  such rate would otherwise become effective, and an additional
    13  period of not more than three months pending such decision. The
    14  rate in force when the tariff stating the new rate was filed
    15  shall continue in force during the period of suspension, unless
    16  the commission shall establish a temporary rate as authorized in
    17  section 1310 (relating to temporary rates). The commission shall
    18  consider the effect of such suspension in finally determining
    19  and prescribing the rates to be thereafter charged and collected
    20  by such public utility. This subsection shall not apply to any
    21  tariff stating a new rate which constitutes a general rate
    22  increase as defined in subsection (d).
    23     (c)  Determination.--If, after such hearing, the commission
    24  finds any such rate to be unjust or unreasonable, or in anywise
    25  in violation of law, the commission shall determine the just and
    26  reasonable rate to be charged or applied by the public utility
    27  for the service in question, and shall fix the same by order to
    28  be served upon the public utility and such rate shall thereafter
    29  be observed until changed as provided by this part.
    30     (d)  General rate increases.--Whenever there is filed with
    19770H0489B3394                 - 78 -

     1  the commission by any public utility described in paragraph
     2  (1)(i),(ii),(vi) or (vii) of the definition of "public utility"
     3  in section 102 (relating to definitions), and such other public
     4  utility as the commission may by rule or regulation direct, any
     5  tariff stating a new rate which constitutes a general rate
     6  increase, the commission shall promptly enter into an
     7  investigation and analysis of said tariff filing and may by
     8  order setting forth its reasons therefor, upon complaint or upon
     9  its own motion, upon reasonable notice, enter upon a hearing
    10  concerning the lawfulness of such rate, and the commission may,
    11  at any time by vote of a majority of the members of the
    12  commission serving in accordance with law, permit such tariff to
    13  become effective, except that absent such order such tariff
    14  shall be suspended for a period not to exceed seven months from
    15  the time such rate would otherwise become effective. Before the
    16  expiration of such seven-month period, a majority of the members
    17  of the commission serving in accordance with law, acting
    18  unanimously, shall make a final decision and order, setting
    19  forth its reasons therefor, granting or denying, in whole or in
    20  part, the general rate increase requested. If, however, such an
    21  order has not been made at the expiration of such seven-month
    22  period, the proposed general rate increase shall go into effect
    23  at the end of such period, but the commission may by order
    24  require the interested public utility to refund, in accordance
    25  with section 1312 (relating to refunds), to the persons in whose
    26  behalf such amounts were paid, such portion of such increased
    27  rates as by its decision shall be found not justified, plus
    28  interest, which shall be the average rate of interest specified
    29  for residential mortgage lending by the Secretary of Banking in
    30  accordance with the act of January 30, 1974 (P.L.13, No.6),
    19770H0489B3394                 - 79 -

     1  referred to as the Loan Interest and Protection Law, during the
     2  period or periods for which the commission orders refunds. The
     3  rate in force when the tariff stating such new rate was filed
     4  shall continue in force during the period of suspension unless
     5  the commission shall grant extraordinary rate relief as
     6  prescribed in subsection (e). The commission shall consider the
     7  effect of such suspension in finally determining and prescribing
     8  the rates to be thereafter charged and collected by such public
     9  utility, except that the commission shall have no authority to
    10  prescribe, determine or fix, at any time during the pendency of
    11  a general rate increase proceeding or prior to a final
    12  determination of a general rate increase request, temporary
    13  rates as provided in section 1310, which rates may provide
    14  retroactive increases through recoupment. As used in this part
    15  general rate increase means a tariff filing which affects more
    16  than 5% of the customers and amounts to in excess of 3% of the
    17  total gross annual intrastate operating revenues of the public
    18  utility. If the public utility furnishes two or more types of
    19  service, the foregoing percentages shall be determined only on
    20  the basis of the customers receiving, and the revenues derived
    21  from, the type of service to which the tariff filing pertains.
    22     (e)  Extraordinary rate relief.--Upon petition to the
    23  commission at the time of filing of a rate request or at any
    24  time during the pendency of proceedings on such rate request,
    25  any public utility may seek extraordinary rate relief of such
    26  portion of the total rate relief requested as can be shown to be
    27  immediately necessary for the maintenance of financial stability
    28  in order to enable the utility to continue providing normal
    29  services to its customers, avoid reductions in its normal
    30  maintenance programs, avoid substantially reducing its
    19770H0489B3394                 - 80 -

     1  employment, and which will provide no more than the rate of
     2  return on the utility's common equity established by the
     3  commission in consideration of the utility's preceding rate
     4  filing, except that no utility shall file, either with a request
     5  for a general rate increase or at any time during the pendency
     6  of such a request, more than one petition under this subsection
     7  pertaining to rates for a particular type of service, nor any
     8  supplement or amendment thereto, except when permitted to do so
     9  by order of the commission. Any public utility requesting
    10  extraordinary rate relief shall file with the petition
    11  sufficient additional testimony and exhibits which will permit
    12  the commission to make appropriate findings on the petition. The
    13  public utility shall give notice of the petition in the same
    14  manner as its filing upon which this petition is based. The
    15  commission shall within 30 days from the date of the filing of a
    16  petition for extraordinary rate relief, and after hearing for
    17  the purpose of cross-examination of the testimony and exhibits
    18  of the public utility, and the presentation of such other
    19  evidentiary testimony as the commission may by rule prescribe,
    20  by order setting forth its reasons therefor, grant or deny, in
    21  whole or in part, the extraordinary relief requested. Absent
    22  such order, the petition shall be deemed to have been denied.
    23  Rates established pursuant to extraordinary rate relief shall
    24  not be deemed to be temporary rates within the meaning of that
    25  term as it is used in section 1310.
    26  § 1309.  Rates fixed on complaint; investigation of costs of
    27           production.
    28     Whenever the commission, after reasonable notice and hearing,
    29  upon its own motion or upon complaint, finds that the existing
    30  rates of any public utility for any service are unjust,
    19770H0489B3394                 - 81 -

     1  unreasonable, or in anywise in violation of any provision of
     2  law, the commission shall determine the just and reasonable
     3  rates, including maximum or minimum rates, to be thereafter
     4  observed and in force, and shall fix the same by order to be
     5  served upon the public utility, and such rates shall constitute
     6  the legal rates of the public utility until changed as provided
     7  in this part. Whenever a public utility does not itself produce
     8  or generate that which it distributes, transmits, or furnishes
     9  to the public for compensation, but obtains the same from
    10  another source, the commission shall have the power and
    11  authority to investigate the cost of such production or
    12  generation in any investigation of the reasonableness of the
    13  rates of such public utility.
    14  § 1310.  Temporary rates.
    15     (a)  General rule.--The commission may, in any proceeding
    16  involving the rates of a public utility, except a proceeding
    17  involving a general rate increase, brought either upon its own
    18  motion or upon complaint, after reasonable notice and hearing,
    19  if it be of opinion that the public interest so requires,
    20  immediately fix, determine, and prescribe temporary rates to be
    21  charged by such public utility, pending the final determination
    22  of such rate proceeding. Such temporary rates, so fixed,
    23  determined, and prescribed, shall be sufficient to provide a
    24  return of not less than 5% upon the original cost, less accrued
    25  depreciation, of the physical property, when first devoted to
    26  public use, of such public utility, used and useful in the
    27  public service, and if the duly verified reports of such public
    28  utility to the commission do not show such original cost, less
    29  accrued depreciation, of such property, the commission may
    30  estimate such cost less depreciation and fix, determine, and
    19770H0489B3394                 - 82 -

     1  prescribe rates as hereinbefore provided.
     2     (b)  Exception where records unavailable.--If any public
     3  utility does not have continuing property records, kept in the
     4  manner prescribed by the commission under the provisions of
     5  section 1702 (relating to continuing property records), then the
     6  commission, after reasonable notice and hearing, may establish
     7  temporary rates which shall be sufficient to provide a return of
     8  not less than an amount equal to the operating income for such
     9  prior calendar, fiscal or other year as the commission may deem
    10  proper, to be determined on the basis of data appearing in the
    11  annual report of such public utility to the commission for such
    12  prior year as the commission may deem proper, plus or minus such
    13  return as the commission may prescribe from time to time upon
    14  such net changes of the physical property as are reported to and
    15  approved for rate-making purposes by the commission. In
    16  determining the net changes of the physical property, the
    17  commission may, in its discretion, deduct from gross additions
    18  to such physical property the amount charged to operating
    19  expenses for depreciation or, in lieu thereof, it may determine
    20  such net changes by deducting retirements from the gross
    21  additions. The commission, in determining the basis for
    22  temporary rates, may make such adjustments in the annual report
    23  data as may, in the judgment of the commission, be necessary and
    24  proper.
    25     (c)  Periodicity of rates.--The commission may fix,
    26  determine, and prescribe temporary rates every month, or at any
    27  other interval, if it be of opinion that the public interest so
    28  requires, and the existence of proceedings begun for the purpose
    29  of establishing final rates shall not prevent the commission
    30  from changing every month, or at any other interval, such
    19770H0489B3394                 - 83 -

     1  temporary rates as it has previously fixed, determined, and
     2  prescribed.
     3     (d)  Excessive rates.--Whenever the commission, upon
     4  examination of any annual or other report, or of any papers,
     5  records, books, or documents, or of the property of any public
     6  utility, shall be of opinion that any rates of such public
     7  utility are producing a return in excess of a fair return upon
     8  the fair value of the property of such public utility, used and
     9  useful in its public service, the commission may, by order,
    10  prescribe for a trial period of at least six months, which trial
    11  period may be extended for one additional period of six months,
    12  such temporary rates to be observed by such public utility as,
    13  in the opinion of the commission, will produce a fair return
    14  upon such fair value, and the rates so prescribed shall become
    15  effective upon the date specified in the order of the
    16  commission. Such rates, so prescribed, shall become permanent at
    17  the end of such trial period, or extension thereof, unless at
    18  any time during such trial period, or extension thereof, the
    19  public utility involved shall complain to the commission that
    20  the rates so prescribed are unjust or unreasonable. Upon such
    21  complaint, the commission, after hearing, shall determine the
    22  issues involved, and pending final determination the rates so
    23  prescribed shall remain in effect.
    24     (e)  Effect and adjustment of rates.--Temporary rates so
    25  fixed, determined, and prescribed under this section shall be
    26  effective until the final determination of the rate proceeding,
    27  unless terminated sooner by the commission. In every proceeding
    28  in which temporary rates are fixed, determined, and prescribed
    29  under this section, the commission shall consider the effect of
    30  such rates in fixing, determining, and prescribing rates to be
    19770H0489B3394                 - 84 -

     1  thereafter demanded or received by such public utility on final
     2  determination of the rate proceeding.
     3  § 1311.  Valuation of property of a public utility.
     4     The commission may, after reasonable notice and hearing,
     5  ascertain and fix the fair value of the whole or any part of the
     6  property of any public utility, insofar as the same is material
     7  to the exercise of the jurisdiction of the commission, and may
     8  make revaluations from time to time and ascertain the fair value
     9  of all new construction, extensions, and additions to the
    10  property of any public utility. When any public utility
    11  furnishes more than one of the different types of utility
    12  service, the commission shall segregate the property used and
    13  useful in furnishing each type of such service, and shall not
    14  consider the property of such public utility as a unit in
    15  determining the value of the property of such public utility for
    16  the purpose of fixing rates. In fixing any rate of a public
    17  utility engaged exclusively as a common carrier by motor
    18  vehicle, the commission may, in lieu of other standards
    19  established by law, fix the fair return by relating the fair and
    20  reasonable operating expenses, depreciation, taxes and other
    21  costs of furnishing service to operating revenues.
    22  § 1312.  Refunds.
    23     (a)  General rule.--If, in any proceeding involving rates,
    24  the commission shall determine that any rate received by a
    25  public utility was unjust or unreasonable, or was in violation
    26  of any regulation or order of the commission, or was in excess
    27  of the applicable rate contained in an existing and effective
    28  tariff of such public utility, the commission shall have the
    29  power and authority to make an order requiring the public
    30  utility to refund the amount of any excess paid by any patron,
    19770H0489B3394                 - 85 -

     1  in consequence of such unlawful collection, within two FOUR       <--
     2  years prior to the date of the filing of the complaint, together
     3  with interest at the legal rate from the date of each such
     4  excessive payment. In making a determination under this section,
     5  the commission need not find that the rate complained of was
     6  extortionate or oppressive. Any order of the commission awarding
     7  a refund shall be made for and on behalf of all patrons subject
     8  to the same rate of the public utility. The commission shall
     9  state in any refund order the exact amount to be paid, the
    10  reasonable time within which payment shall be made, and shall
    11  make findings upon pertinent questions of fact.
    12     (b)  Suit for refund.--If the public utility fails to make
    13  refunds within the time for payment fixed by any final order of
    14  the commission or court, any patron entitled to any refund may
    15  sue therefor and the findings and order made by the commission
    16  shall be prima facie evidence of the facts therein stated, and
    17  that the amount awarded is justly due the plaintiff in such
    18  suit, and the defendant public utility shall not be permitted to
    19  avail itself of the defense that the service was, in fact,
    20  rendered to the plaintiff at the rate contained in its tariffs
    21  in force at the time payment was made and received, nor shall
    22  the defendant public utility be permitted to avail itself of the
    23  defense that the rate was reasonable. Any patron entitled to any
    24  refund shall be entitled to recover, in addition to the amount
    25  of refund, a penalty of 50% of the amount of such refund,
    26  together with all court costs and reasonable attorney fees. No
    27  suit may be maintained for a refund unless instituted within one
    28  year from the date of the order of the commission or court. Any
    29  number of patrons entitled to such refund may join as plaintiffs
    30  and recover their several claims in a single action, in which
    19770H0489B3394                 - 86 -

     1  action the court shall render a judgment severally for each
     2  plaintiff as his interest may appear.
     3     (c)  Condition for suit.--No action shall be brought in any
     4  court for a refund, unless and until the commission shall have
     5  determined that the rate in question was unjust or unreasonable,
     6  or in violation of any regulation or order of the commission, or
     7  in excess of the applicable rate contained in an existing and
     8  effective tariff, and then only to recover such refunds as may
     9  have been awarded and directed to be paid by the commission in
    10  such order.
    11  § 1313.  Price upon resale of public utility services.
    12     Whenever any person, corporation or other entity, not a
    13  public utility, electric cooperative corporation, municipality
    14  authority or municipal corporation, purchases service from a
    15  public utility and resells it to consumers, the bill rendered by
    16  the reseller to any residential consumer shall not exceed the
    17  amount which the public utility would bill its own residential
    18  consumers for the same quantity of service under the residential
    19  rate of its tariff then currently in effect.
    20                             CHAPTER 15
    21                       SERVICE AND FACILITIES
    22  Sec.
    23  1501.  Character of service and facilities.
    24  1502.  Discrimination in service.
    25  1503.  Discontinuance of service.
    26  1504.  Standards of service and facilities.
    27  1505.  Proper service and facilities established on complaint.
    28  1506.  Copies of service contracts, etc., to be filed with
    29         commission.
    30  1507.  Testing of appliances for measurement of service.
    19770H0489B3394                 - 87 -

     1  1508.  Reports of accidents.
     2  1509.  Billing procedures.
     3  § 1501.  Character of service and facilities.
     4     Every public utility shall furnish and maintain adequate,
     5  efficient, safe, and reasonable service and facilities, and
     6  shall make all such repairs, changes, alterations,
     7  substitutions, extensions, and improvements in or to such
     8  service and facilities as shall be necessary or proper for the
     9  accommodation, convenience, and safety of its patrons,
    10  employees, and the public. Such service also shall be reasonably
    11  continuous and without unreasonable interruptions or delay. Such
    12  service and facilities shall be in conformity with the
    13  regulations and orders of the commission. Subject to the
    14  provisions of this part and the regulations or orders of the
    15  commission, every public utility may have reasonable rules and
    16  regulations governing the conditions under which it shall be
    17  required to render service. Any public utility service being
    18  furnished or rendered by a municipal corporation beyond its
    19  corporate limits shall be subject to regulation and control by
    20  the commission as to service and extensions, with the same force
    21  and in like manner as if such service were rendered by a public
    22  utility. The commission shall have sole and exclusive
    23  jurisdiction to promulgate rules and regulations for the
    24  allocation of natural or artificial gas supply by a public
    25  utility.
    26  § 1502.  Discrimination in service.
    27     No public utility shall, as to service, make or grant any
    28  unreasonable preference or advantage to any person, corporation,
    29  or municipal corporation, or subject any person, corporation, or
    30  municipal corporation to any unreasonable prejudice or
    19770H0489B3394                 - 88 -

     1  disadvantage. No public utility shall establish or maintain any
     2  unreasonable difference as to service, either as between
     3  localities or as between classes of service, but this section
     4  does not prohibit the establishment of reasonable
     5  classifications of service.
     6  § 1503.  Discontinuance of service.
     7     (a)  Days discontinuance prohibited.--Except when required to
     8  prevent or alleviate an emergency as defined by the commission,
     9  except in the case of danger to life or property, no public
    10  utility, as defined in paragraph (1)(i),(ii),(v) or (vii) of the
    11  definition of "public utility" in section 102 (relating to
    12  definitions), shall discontinue, and the commission shall not
    13  authorize such a public utility to discontinue, except upon
    14  request of the customer, for nonpayment of charges or for any
    15  other reason, the rendering of service during the following
    16  periods:
    17         (1)  On Friday, Saturday or Sunday.
    18         (2)  On a bank holiday or on the day preceding a bank
    19     holiday.
    20         (3)  On a holiday observed by the public utility or on
    21     the day preceding such holiday. A holiday observed by a
    22     public utility shall mean any day on which the business
    23     office of the public utility is closed to observe a legal
    24     holiday, to attend public utility meetings or functions or
    25     for any other reason.
    26         (4)  On a holiday observed by the commission or on the
    27     day preceding such holiday.
    28     (b)  Personal contact before service discontinued.--Except
    29  when required to prevent or alleviate an emergency as defined by
    30  the commission or except in the case of danger to life or
    19770H0489B3394                 - 89 -

     1  property, no public utility referred to in subsection (a) shall
     2  discontinue, and the commission shall not authorize such a
     3  public utility to discontinue, except upon request of a
     4  customer, for nonpayment of charges or for any other reason, the
     5  rendering of service without personally contacting the customer
     6  at least three days prior to such discontinuance, in addition to
     7  any written notice of discontinuance of service. Personal
     8  contact shall mean:
     9         (1)  contacting the customer by means other than writing,
    10     or
    11         (2)  contacting another person whom the customer has
    12     designated to receive a copy of any notice of disconnection,
    13     or
    14         (3)  if the customer has not made such designation,
    15     contacting a community interest group or other entity,
    16     including local police departments, which have previously
    17     agreed to receive a copy of the notice of disconnection and
    18     to attempt to contact the customer, or
    19         (4)  if the customer has not made such designation and no
    20     such community interest group or other entity has previously
    21     agreed to receive a copy of the notice of disconnection,
    22     contacting the commission or such other local government unit
    23     as the commission shall, by rule or regulation, designate.
    24  § 1504.  Standards of service and facilities.
    25     The commission may, after reasonable notice and hearing, upon
    26  its own motion or upon complaint:
    27         (1)  Prescribe as to service and facilities, including
    28     the crossing of facilities, just and reasonable standards,
    29     classifications, regulations and practices to be furnished,
    30     imposed, observed and followed by any or all public
    19770H0489B3394                 - 90 -

     1     utilities.
     2         (2)  Prescribe adequate and reasonable standards for the
     3     measurement of quantity, quality, pressure, initial voltage
     4     or other condition pertaining to the supply of the service of
     5     any and all public utilities.
     6         (3)  Prescribe reasonable regulations for the examination
     7     and testing of such service, and for the measurement thereof.
     8         (4)  Prescribe or approve reasonable rules, regulations,
     9     specifications and standards to secure the accuracy of all
    10     meters and appliances for measurement.
    11         (5)  Provide for the examination and testing of any and
    12     all appliances used for the measurement of any service of any
    13     public utility.
    14  § 1505.  Proper service and facilities established on complaint.
    15     Whenever the commission, after reasonable notice and hearing,
    16  upon its own motion or upon complaint, finds that the service or
    17  facilities of any public utility are unreasonable, unsafe,
    18  inadequate, insufficient, or unreasonably discriminatory, or
    19  otherwise in violation of this part, the commission shall
    20  determine and prescribe, by regulation or order, the reasonable,
    21  safe, adequate, sufficient, service or facilities to be
    22  observed, furnished, enforced, or employed, including all such
    23  repairs, changes, alterations, extensions, substitutions, or
    24  improvements in facilities as shall be reasonably necessary and
    25  proper for the safety, accommodation, and convenience of the
    26  public.
    27  § 1506.  Copies of service contracts, etc., to be filed with
    28           commission.
    29     Any public utility shall, when required by the commission,
    30  file with the commission verified copies of any and all
    19770H0489B3394                 - 91 -

     1  contracts, writings, agreements, leases, arrangements, or other
     2  engagements, in relation to its public service, entered into by
     3  such public utility with any person, corporation, State
     4  Government, or the Federal Government, or any branch or
     5  subdivision thereof, or any other public utility.
     6  § 1507.  Testing of appliances for measurement of service.
     7     Every public utility, furnishing service upon meter or other
     8  similar measurement, shall provide, and keep in and upon the
     9  premises of such public utility, suitable and proper apparatus,
    10  to be approved from time to time and stamped or marked by the
    11  commission, for testing and proving the accuracy of meters
    12  furnished by such public utility for use; and by which apparatus
    13  every meter may be tested, upon the written request of the
    14  consumer to whom the same shall be furnished, and in the
    15  presence of the consumer, if he shall so desire. If the meter so
    16  tested shall be found to be accurate, within such commercially
    17  reasonable limits as the commission may fix for such meters, a
    18  reasonable fee, to be fixed by the commission, sufficient to
    19  cover the cost of such test, shall be paid by the consumer
    20  requiring such test; but, if not so found, then the cost thereof
    21  shall be borne by the public utility furnishing the meter.
    22  § 1508.  Reports of accidents.
    23     Every public utility shall give immediate notice to the
    24  commission of the happening of any accident in or about, or in
    25  connection with, the operation of its service and facilities,
    26  wherein any person shall have been killed or injured, and
    27  furnish such full and detailed report of such accident, within
    28  such time and in such manner as the commission shall require.
    29  Such report shall not be open for public inspection, except by
    30  order of the commission, and shall not be admitted in evidence
    19770H0489B3394                 - 92 -

     1  for any purpose in any suit or action for damages growing out of
     2  any matter or thing mentioned in such report.
     3  § 1509.  Billing procedures.
     4     All bills rendered by a public utility as defined in
     5  paragraph (1)(i),(ii),(vi) or (vii) of the definition of "public
     6  utility" in section 102 (relating to definitions) to its service
     7  customers, except bills for installation charges, shall allow at
     8  least 15 days for nonresidential customers and 20 days for
     9  residential customers from the date of transmittal of the bill
    10  for payment without incurring any late payment penalty charges
    11  therefor. All customers shall be permitted to receive bills
    12  monthly and shall be notified of their right thereto. All bills
    13  shall be itemized to separately show amounts for basic service,
    14  Federal excise taxes, applicable State sales and gross receipts
    15  taxes, to the extent practicable, fuel adjustment charge, if
    16  any, State tax adjustment charge or such other similar
    17  components of the total bill as the commission may order. Any
    18  electric or gas public utility billing customers on a bimonthly
    19  or quarterly basis and rendering interim statements or bills
    20  each month shall include in such interim statement or bill an
    21  amount for the fuel adjustment charge based upon one-half of the
    22  total expected bimonthly kilowatt hour or cubic foot billing or
    23  one-third of the total expected quarterly billing and using the
    24  fuel adjustment charge rate applicable in the month of the
    25  interim statement or bill. At the time of preparing the
    26  bimonthly or quarterly bill, an appropriate adjustment shall be
    27  made in the total fuel adjustment charge billing for the period.
    28  Any public utility rendering bills on a bimonthly basis or
    29  quarterly basis shall calculate the fuel adjustment charge per
    30  kilowatt hour or cubic foot for the entire period as the
    19770H0489B3394                 - 93 -

     1  weighted average of the two monthly rates or the three monthly
     2  rates whichever is applicable.
     3                             CHAPTER 17
     4                  ACCOUNTING AND BUDGETARY MATTERS
     5  Sec.
     6  1701.  Mandatory systems of accounts.
     7  1702.  Continuing property records.
     8  1703.  Depreciation accounts; reports.
     9  1704.  Records and accounts to be kept in Commonwealth.
    10  1705.  Budgets of public utilities.
    11  1706.  Applicability to municipal corporations.
    12  § 1701.  Mandatory systems of accounts.
    13     The commission may, after reasonable notice and hearing,
    14  establish systems of accounts, including cost finding
    15  procedures, to be kept by public utilities, or may classify
    16  public utilities and establish a system of accounts for each
    17  class, and prescribe the manner and form in which such accounts
    18  shall be kept. Every public utility shall establish such systems
    19  of accounting, and shall keep such accounts in the manner and
    20  form required by the commission. The accounting system of any
    21  public utility also subject to the jurisdiction of a Federal
    22  regulatory body shall correspond, as far as practicable, to the
    23  system prescribed by such Federal regulatory body. The
    24  commission may require any such public utility to keep and
    25  maintain supplemental or additional accounts to those required
    26  by any such regulatory body.
    27  § 1702.  Continuing property records.
    28     The commission may require any public utility to establish,
    29  provide, and maintain as a part of its system of accounts,
    30  continuing property records, including a list or inventory of
    19770H0489B3394                 - 94 -

     1  all the units of tangible property used or useful in the public
     2  service, showing the current location of such property units by
     3  definite reference to the specific land parcels upon which such
     4  units are located or stored. The commission may require any
     5  public utility to keep accounts and records in such manner as to
     6  show, currently, the original cost of such property when first
     7  devoted to the public service, and the reserve accumulated to
     8  provide for the depreciation thereof.
     9  § 1703.  Depreciation accounts; reports.
    10     (a)  Accounts.--Every public utility shall carry on its books
    11  or records of account, proper and reasonable sums representing
    12  the annual depreciation on its property used or useful in the
    13  public service, which sums shall be based upon the average
    14  estimated life of each of the several units or classes of
    15  depreciable property. The commission, by appropriate order,
    16  after hearing, shall, except where found to be inappropriate,
    17  establish for each class of public utilities, the units of
    18  depreciable property, the loss upon the retirement of which
    19  shall be charged to the depreciation reserve.
    20     (b)  Statements.--Every public utility shall file with the
    21  commission, at such times and in such form as the commission may
    22  prescribe, statements setting forth the details supporting its
    23  computation of annual depreciation, as recorded on the books or
    24  records of accounts of the public utility. If the commission,
    25  upon review of such statements, is of the opinion that the
    26  amount of annual depreciation so recorded by any public utility
    27  is not reasonable and proper, it may, after hearing, require
    28  that provision be made for annual depreciation in such sums as
    29  may be found by it to be reasonable and proper. In making its
    30  findings, the commission shall give consideration to the
    19770H0489B3394                 - 95 -

     1  experience of the public utility, and the predecessors of the
     2  public utility in accumulating depreciation reserves, the
     3  retirements actually made, and such other factors as may be
     4  deemed relevant.
     5     (c)  Use of estimates.--The commission shall not be bound in
     6  rate proceedings to accept, as just and reasonable for rate-
     7  making purposes, estimates of annual depreciation established
     8  under the provisions of this section, but in such rate
     9  proceedings it shall give consideration to statements submitted
    10  under this section, in addition to such other factors as may be
    11  relevant.
    12  § 1704.  Records and accounts to be kept in Commonwealth.
    13     (a)  General rule.--Every public utility shall keep such
    14  books, accounts, papers, records, and memoranda, as shall be
    15  required by the commission, in an office within this
    16  Commonwealth, and shall not remove the same, or any of them,
    17  from this Commonwealth, except upon such terms and conditions as
    18  may be prescribed by the commission.
    19     (b)  Exceptions.--This section does not apply to a public
    20  utility of another state, engaged in interstate commerce, whose
    21  accounts are kept at its principal place of business without
    22  this Commonwealth, in the manner prescribed by any Federal
    23  regulatory body. Such public utility, when required by the
    24  commission, shall furnish to the commission, within such
    25  reasonable time as it shall fix, certified copies of its books,
    26  accounts, papers, records, and memoranda relating to the
    27  business done by such public utility within this Commonwealth.
    28  § 1705.  Budgets of public utilities.
    29     (a)  Proposed budgets; adjustments; determination.--The
    30  commission may, by regulation, require any class of public
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     1  utilities, except common carriers, to file proposed budgets with
     2  the commission on or before the first day of each budgetary
     3  period, showing the amount of money which each public utility
     4  within such class, will in its judgment, expend during the
     5  budgetary period for payment of salaries of executive officers,
     6  donations, advertising, lobbying expenses, entertainment,
     7  political contributions, expenditures, and major contracts for
     8  the sale or purchase of facilities, and all items covering or
     9  contemplating any payment to any affiliated interest for advice,
    10  auditing, associating, sponsoring, engineering, managing,
    11  operating, financing, legal, or other services. Adjustments or
    12  additions to any such budget may be made from time to time by
    13  filing supplementary budgets with the commission. When any such
    14  budget or supplemental budget has been filed, the commission may
    15  examine into and investigate the same to determine whether any
    16  or all of the contemplated expenditures are unreasonable or
    17  contrary to the public interest and if after reasonable notice
    18  and hearing, it shall so determine, it shall make its findings
    19  and order in writing rejecting the same or any part thereof.
    20     (b)  Rejected budgets.--Upon such rejection, the public
    21  utility concerned shall not make further expenditures or
    22  payments under the budget or part thereof rejected, and no
    23  expenditures at any time made under such rejected budget, or
    24  part thereof, shall be allowed as an operating expense, or
    25  capital expenditure in any rate or valuation proceeding, or in
    26  any other proceeding or hearing before the commission, unless
    27  and until the propriety thereof shall have been established to
    28  the satisfaction of the commission, and any such finding or
    29  order shall remain in full force and effect, unless and until
    30  such finding or order shall be vacated, modified or set aside by
    19770H0489B3394                 - 97 -

     1  the commission, or upon an appeal, as provided in this part.
     2     (c)  Use of budgets.--The filing of any budget, its
     3  examination, investigation, or determination by the commission,
     4  under this section, shall not bar or estop the commission from
     5  determining, in any rate valuation or other proceeding, whether
     6  any or all of the expenditures made under any budget or
     7  supplemental budget are reasonable or commensurate with the
     8  service or facilities received.
     9  § 1706.  Applicability to municipal corporations.
    10     The provisions of sections 505 (relating to duty to furnish
    11  information to commission; cooperation in valuing property), 506
    12  (relating to inspection of facilities and records), 1701
    13  (relating to mandatory systems of accounts) and 1703 (relating
    14  to depreciation accounts; reports), shall apply to any municipal
    15  corporation rendering or furnishing to the public any public
    16  utility service.
    17                             CHAPTER 19
    18                     SECURITIES AND OBLIGATIONS
    19  Sec.
    20  1901.  Registration of securities to be issued or assumed.
    21  1902.  Contents of securities certificates.
    22  1903.  Registration or rejection of securities certificates.
    23  1904.  Unauthorized securities may be declared void.
    24  § 1901.  Registration of securities to be issued or assumed.
    25     (a)  General rule.--Under such regulations as the commission
    26  may prescribe, every public utility, before it shall issue or
    27  assume securities, shall file with the commission and receive
    28  from it, notice of registration of a document to be known as a
    29  securities certificate.
    30     (b)  Issuance of securities defined.--Issuance of securities
    19770H0489B3394                 - 98 -

     1  includes any act of a public utility executing, causing to be
     2  authenticated, delivering or making any change or extension in
     3  any term, condition or date of, any stock certificate, or other
     4  evidence of equitable interest in itself or any bond, note,
     5  trust certificate or other evidence of indebtedness of itself.
     6  Issuance of securities does not include the execution,
     7  authentication or delivery of the following:
     8         (1)  Securities to replace identical securities lost,
     9     mutilated or destroyed while in the ownership of a bona fide
    10     holder-for-value who properly indemnifies the public utility
    11     therefor.
    12         (2)  Securities in exchange for the surrender of
    13     identical securities, solely for the purpose of registering
    14     or facilitating changes in the ownership thereof between bona
    15     fide holders-for-value, which surrendered securities are
    16     thereupon cancelled.
    17         (3)  Securities from the treasury of the public utility
    18     previously reacquired from bona fide holders-for-value and
    19     held alive.
    20         (4)  Any evidence of indebtedness, the date of maturity
    21     of which is at a period of less than one year from the date
    22     of its execution.
    23         (5)  Any evidence of indebtedness for which no date of
    24     maturity is fixed but which matures upon demand of the
    25     holder.
    26         (6)  Any evidence of indebtedness in the nature of a
    27     contract between a public utility and a vendor of equipment
    28     wherein the public utility promises to pay installments upon
    29     the purchase price of equipment acquired and which is not in
    30     the form of an equipment trust certificate or similar
    19770H0489B3394                 - 99 -

     1     instrument readily marketable to the general public.
     2     (c)  Assumption of securities defined.--Assumption of
     3  securities includes any act of a public utility assuming primary
     4  or contingent liability for the payment of any dividends upon
     5  any stocks or of any principal or interest of any indebtedness,
     6  created or incurred by any other person or corporation.
     7  Assumption of securities does not include the acquisition of all
     8  property of the issuing company by the assuming company as
     9  provided in section 1102(3) (relating to enumeration of acts
    10  requiring certificate) if the approval of the commission is
    11  obtained.
    12  § 1902.  Contents of securities certificates.
    13     Every securities certificate shall be verified by oath or
    14  affirmation, and shall be in such form, and contain such
    15  information pertinent to a proposed issuance or assumption of
    16  securities, as the commission may require by its regulations. If
    17  two or more issues of securities are proposed to be issued or
    18  assumed by a public utility, a separate securities certificate
    19  shall be submitted to the commission for the issuance or
    20  assumption of each security issue. All information submitted to
    21  the commission or obtained through investigation or hearing
    22  shall become a part of the securities certificate.
    23  § 1903.  Registration or rejection of securities certificates.
    24     (a)  General rule.--Upon the submission or completion of any
    25  securities certificate, as provided in this part, the commission
    26  shall register the same if it shall find that the issuance or
    27  assumption of securities in the amount, of the character, and
    28  for the purpose therein proposed, is necessary or proper for the
    29  present and probable future capital needs of the public utility
    30  filing such securities certificate; otherwise it shall reject
    19770H0489B3394                 - 100 -

     1  the securities certificate. The commission may consider the
     2  relation which the amount of each class of securities issued by
     3  such public utility bears to the amount of other such classes,
     4  the nature of the business of such public utility, its credit
     5  and prospects, and other relevant matters. If, at the end of 30
     6  days after the filing of a securities certificate, no order of
     7  rejection has been entered, such certificate shall be deemed, in
     8  fact and law, to have been registered. The commission may, by
     9  written order, giving reasons therefor, extend the 30-day
    10  consideration period.
    11     (b)  Effect of registration.--Such registration or rejection
    12  may be as to all or part of the securities to which such
    13  securities certificate pertains, and any registration may be
    14  made subject to such conditions as the commission may deem
    15  reasonable in the premises. No registration, however, shall be
    16  construed to imply any guaranty or obligation on the part of the
    17  Commonwealth as to such securities, nor shall it be taken as
    18  requiring the commission, in any proceeding brought before it
    19  for any purpose, to fix a valuation which shall be equal to the
    20  total of such securities and any other outstanding securities of
    21  such public utility, or to approve or prescribe a rate which
    22  shall be sufficient to yield a return on such securities or the
    23  total securities of such public utility.
    24     (c)  Written notice.--Written notice of the registration or
    25  rejection of any securities certificate shall be served by
    26  registered mail upon the public utility. Every notice of
    27  rejection shall contain a statement of the specific reasons for
    28  rejection. Both registered and rejected securities certificates
    29  shall be retained in the files of the commission.
    30     (d)  Amendment of rejected certificate.--At any time within
    19770H0489B3394                 - 101 -

     1  30 days after the commission shall have rejected a securities
     2  certificate, the public utility submitting such securities
     3  certificate may submit amendments thereto, verified by oath or
     4  affirmation, whereupon the commission shall again consider and
     5  act upon the securities certificate, as provided in subsection
     6  (a); but a securities certificate which shall have been twice
     7  rejected by the commission shall not be amended again. The
     8  registration by the commission of a securities certificate,
     9  either as completed or amended, shall bind the public utility
    10  submitting such securities certificate to issue or assume the
    11  securities only under the terms, and for the purpose recited in
    12  such securities certificate and the issuance or assumption of
    13  the securities under any other terms, or for any other purpose,
    14  shall be unlawful.
    15     (e)  Judicial review.--Appeals from the action of the
    16  commission upon any securities certificates may be taken as
    17  provided by law. The completed securities certificate shall
    18  constitute the record to be certified to the appellate court in
    19  such appeal.
    20  § 1904.  Unauthorized securities may be declared void.
    21     In addition to any other penalty provided in this part for
    22  any violation of this chapter, the commission, after due
    23  consideration of the public interest, may declare void any
    24  securities issued, or any assumption of securities made in
    25  violation of this chapter. Any such declaration shall not be
    26  construed as a bar to the recovery, by an innocent holder-for-
    27  value of such securities, of any losses sustained by reason of
    28  the wrongful acts of the issuing or assuming public utility.
    29                             CHAPTER 21
    30                RELATIONS WITH AFFILIATED INTERESTS
    19770H0489B3394                 - 102 -

     1  Sec.
     2  2101.  Definition of affiliated interest.
     3  2102.  Approval of contracts with affiliated interest.
     4  2103.  Continuing supervision and jurisdiction over contracts.
     5  2104.  Contracts to be in writing; cost data.
     6  2105.  Contracts in violation of part void.
     7  2106.  Effect on rates.
     8  2107.  Federal regulatory agencies.
     9  § 2101.  Definition of affiliated interest.
    10     (a)  General rule.--As used in this part "affiliated
    11  interest" with a public utility means and includes the
    12  following:
    13         (1)  Every corporation and person owning or holding
    14     directly or indirectly 5% or more of the voting securities of
    15     such public utility.
    16         (2)  Every corporation and person in any chain of
    17     successive ownership of 5% or more of voting securities.
    18         (3)  Every corporation 5% or more of whose voting
    19     securities are owned by any person or corporation owning 5%
    20     or more of the voting securities of such public utility or by
    21     any person or corporation in any such chain of successive
    22     ownership of 5% or more of voting securities.
    23         (4)  Every person who is an officer or director of such
    24     public utility or of any corporation in any chain of
    25     successive ownership of 5% or more of voting securities.
    26         (5)  Every corporation operating a public utility or a
    27     servicing organization for furnishing supervisory,
    28     construction, engineering, accounting, legal and similar
    29     services to utilities, which has one or more officers or one
    30     or more directors in common with such public utility, to
    19770H0489B3394                 - 103 -

     1     every other corporation which has directors in common with
     2     such public utility where the number of such directors is
     3     more than one-third of the total number of the utility's
     4     directors.
     5         (6)  Every corporation or person which the commission may
     6     determine as a matter of fact after investigation and hearing
     7     is actually exercising any substantial influence over the
     8     policies and actions of such public utility even though such
     9     influence is not based upon stockholding, stockholders,
    10     directors or officers to the extent specified in this
    11     section. As used in this part substantial influence means any
    12     corporation or person which or who stands in such
    13     relationship to the public utility that there is an absence
    14     of free and equal bargaining power between it or him and the
    15     public utility.
    16         (7)  Every person or corporation who or which the
    17     commission may determine as a matter of fact after
    18     investigation and hearing is actually exercising such
    19     substantial influence over the policies and actions of such
    20     public utility in conjunction with one or more other
    21     corporations or persons, or both, with which or whom they are
    22     related by ownership or blood relationship, or both, or by
    23     action in concert that together they are affiliated with such
    24     public utility within the meaning of this section even though
    25     no one of them alone is so affiliated.
    26     (b)  Construction of section.--The term "person" shall not be
    27  construed to exclude trustees, lessees, holders of beneficial
    28  equitable interest, voluntary associations, receivers and
    29  partnerships.
    30  § 2102.  Approval of contracts with affiliated interests.
    19770H0489B3394                 - 104 -

     1     (a)  General rule.--No contract or arrangement providing for
     2  the furnishing of management, supervisory, construction,
     3  engineering, accounting, legal, financial, or similar services,
     4  and no contract or arrangement for the purchase, sale, lease, or
     5  exchange of any property, right, or thing or for the furnishing
     6  of any service, property, right or thing other than those above
     7  enumerated, made or entered into after the effective date of
     8  this section between a public utility and any affiliated
     9  interest shall be valid or effective unless and until such
    10  contract or arrangement has received the written approval of the
    11  commission. If such contract is oral, a complete statement of
    12  the terms and conditions thereof shall be filed with the
    13  commission and subject to its approval.
    14     (b)  Filing and action on contract.--It shall be the duty of
    15  every public utility to file with the commission a verified copy
    16  of any such contract or arrangement, or a verified summary as
    17  described in subsection (a) of any such unwritten contract or
    18  arrangement. All such contracts and arrangements, whether
    19  written or unwritten, entered into prior to the effective date
    20  of this section and required to be on file with the commission
    21  by prior act and in full force and effect at the effective date
    22  of this section shall be subject to the provisions of the
    23  sections regarding affiliated interests. The commission shall
    24  approve such contract or arrangement made or entered into after
    25  the effective date of this section only if it shall clearly
    26  appear and be established upon investigation that it is
    27  reasonable and consistent with the public interest. If at the
    28  end of 30 days after the filing of a contract or arrangement, no
    29  order of rejection has been entered, such contract or
    30  arrangement, whether written or unwritten, shall be deemed, in
    19770H0489B3394                 - 105 -

     1  fact and law, to have been approved. The commission may, by
     2  written order, giving reasons therefor, extend the 30-day
     3  consideration period. No such contract or arrangement shall
     4  receive the commission's approval unless satisfactory proof is
     5  submitted to the commission of the cost to the affiliated
     6  interest of rendering the services or of furnishing the property
     7  or service described herein to the public utility. No proof
     8  shall be satisfactory within the meaning of the foregoing
     9  sentence unless it includes the original (or verified copies) of
    10  the relevant cost records and other relevant accounts of the
    11  affiliated interest, or such abstract thereof or summary taken
    12  therefrom as the commission may deem adequate, properly
    13  identified and duly authenticated. The commission may, where
    14  reasonable, approve or disapprove such contracts or arrangements
    15  without the submission of such cost records or accounts.
    16     (c)  Disallowance of excessive amounts.--If the commission
    17  shall determine that the amounts paid or payable under a
    18  contract or arrangement filed in accordance with this section
    19  are in excess of the reasonable price for furnishing the
    20  services provided for in the contract, or that such services are
    21  not reasonably necessary and proper, it shall disallow such
    22  amounts, insofar as found excessive, in any proceeding involving
    23  the rates or practices of the public utility. In any proceeding
    24  involving such amounts, the burden of proof to show that such
    25  amounts are not in excess of the reasonable price for furnishing
    26  such services, and that such services are reasonable and proper,
    27  shall be on the public utility.
    28     (d)  Exceptions.--The provisions requiring the written
    29  approval of the commission shall not apply to transactions with
    30  affiliated interests of any common carrier by railroad or motor
    19770H0489B3394                 - 106 -

     1  vehicle that is subject to the Interstate Commerce Act unless
     2  required by order of the commission, nor where the amount of
     3  consideration involved is not in excess of $10,000 or 5% of the
     4  par value of outstanding common stock, whichever is smaller.
     5  Regularly recurring payments under a general or continuing
     6  arrangement which aggregate a greater annual amount shall not be
     7  broken down into a series of transactions to come within this
     8  exemption. Where the commission has given its approval generally
     9  as to a class or category of transactions, the commission may
    10  apply such approval to all subsidiary or related transactions.
    11  Such transactions shall be valid or effective without commission
    12  approval under this section. However, in any proceeding
    13  involving the rates or practices of the public utility, the
    14  commission may disallow any payment or compensation made
    15  pursuant to such transaction unless the public utility shall
    16  establish the reasonableness of such payment or compensation.
    17  § 2103.  Continuing supervision and jurisdiction over contracts.
    18     The commission shall have continuing supervisory control over
    19  the terms and conditions of contracts and arrangements as
    20  described in section 2102 (relating to approval of contracts
    21  with affiliated interests) so far as necessary to protect and
    22  promote the public interest. The commission shall have the same
    23  jurisdiction over the modifications or amendment of contracts or
    24  arrangements as it has over such original contracts and
    25  arrangements. The fact that the commission shall have approved
    26  entry into such contracts or arrangements shall not preclude
    27  disallowance or disapproval of payments made pursuant thereto,
    28  if upon actual experience under such contract or arrangement it
    29  appears that the payments provided for or made were or are
    30  unreasonable.
    19770H0489B3394                 - 107 -

     1  § 2104.  Contracts to be in writing; cost data.
     2     The commission may, by regulation or order, require any
     3  contract with an affiliated interest to be in writing. The
     4  commission may also, by regulation or order, require that any
     5  contract with an affiliated interest shall contain a provision
     6  whereby the affiliated interest shall agree to furnish to the
     7  public utility, at the time of billing such public utility for
     8  any service, property, security, right, or thing, under such
     9  contract, a detailed statement of the cost to the affiliated
    10  interest of such service, property, security, right, or thing.
    11  § 2105.  Contracts in violation of part void.
    12     Every contract with an affiliated interest, made effective or
    13  modified in violation of any provision of this part, or of any
    14  regulation or order of the commission made under this part,
    15  shall be void; and any purchase, sale, payment, lease, loan, or
    16  exchange of any service, property, money, security, right, or
    17  thing under such contract, or under any contract with an
    18  affiliated interest, the terms of which shall have been breached
    19  by the affiliated interest, shall be unlawful.
    20  § 2106.  Effect on rates.
    21     In any proceeding, upon the commission's own motion, or upon
    22  application or complaint, involving rates or practices of any
    23  public utility, the commission may disallow, in whole or in
    24  part, any payment or compensation to an affiliated interest for
    25  any services rendered or property or service furnished, or any
    26  property, right, or thing received by such public utility, or
    27  donation given or received, under existing contracts or
    28  arrangements with such affiliated interest unless such public
    29  utility shall establish the reasonableness thereof. In such
    30  proceeding no payment shall be approved or allowed by the
    19770H0489B3394                 - 108 -

     1  commission, in whole or in part, unless satisfactory proof is
     2  submitted to the commission of the cost to the affiliated
     3  interest of rendering the service or furnishing the service,
     4  property, security, right or thing to the public utility. No
     5  proof shall be satisfactory, within the meaning of the foregoing
     6  sentence, unless it includes the original (or verified copies)
     7  of the relevant cost records and other relevant accounts of the
     8  affiliated interest, or such abstract thereof or summary taken
     9  therefrom as the commission may deem adequate, properly
    10  identified and duly authenticated. The commission may, where
    11  reasonable, approve or disapprove such contracts or arrangements
    12  without the submission of such cost records or accounts.
    13  § 2107.  Federal regulatory agencies.
    14     The provisions of this chapter shall not be applicable to the
    15  rates and related terms and conditions for the interstate
    16  transmission of electricity, natural gas, liquified natural gas,
    17  substitute natural gas, liquified propane gas or naphtha which
    18  have been submitted to and approved by a Federal regulatory
    19  agency having jurisdiction thereof, except that the commission
    20  may regulate the volume of such purchases.
    21                             SUBPART D
    22             SPECIAL PROVISIONS RELATING TO REGULATION
    23                        OF PUBLIC UTILITIES
    24  Chapter
    25    23.  Common Carriers
    26    25.  Contract Carrier by Motor Vehicle and Broker
    27    27.  Railroads
    28    29.  Telephone and Telegraph Wires
    29                             CHAPTER 23
    30                          COMMON CARRIERS
    19770H0489B3394                 - 109 -

     1  Sec.
     2  2301.  Operation and distribution of facilities of common
     3         carriers.
     4  2302.  Transfers and time schedules of common carriers.
     5  2303.  Common carrier connections with other lines.
     6  2304.  Liability of common carriers for damages to property
     7         in transit; bills of lading.
     8  2305.  Full crews.
     9  § 2301.  Operation and distribution of facilities of common
    10           carriers.
    11     Every common carrier shall furnish a reasonably sufficient
    12  number of safe facilities, and run and operate the same with
    13  such motive power as may reasonably be required, in the
    14  transportation of all such passengers or property as may seek,
    15  or be offered to it, for such transportation, and shall operate
    16  its facilities with sufficient frequency, at such reasonable and
    17  proper times, and to and from such stations or points, as the
    18  commission, having regard to the accommodation, convenience, and
    19  safety of the public, may require; and, when required by the
    20  commission, shall change the time schedule for the operation of
    21  its facilities, and, generally, shall make any other
    22  arrangements and improvements in its service which the
    23  commission may require. If, at any particular time, a common
    24  carrier may not have sufficient facilities to meet the
    25  requirements for the transportation of property, then it shall
    26  lawfully distribute all available facilities among the several
    27  applicants therefor without discrimination between shippers,
    28  localities, or competitive or noncompetitive points, in
    29  accordance with such regulations as the commission may
    30  prescribe. Such regulations, in the case of common carriers also
    19770H0489B3394                 - 110 -

     1  engaged in interstate commerce, shall conform so far as
     2  practicable to those prescribed by any Federal regulatory body
     3  on the subject. Preference may always be given in the supply of
     4  facilities for transportation of fuel, livestock, or perishable
     5  matter.
     6  § 2302.  Transfers and time schedules of common carriers.
     7     Whenever the commission shall, after hearing had upon its own
     8  motion or upon complaint, deem it necessary or proper for the
     9  accommodation, convenience, and safety of the public in the
    10  transportation of passengers, every common carrier shall
    11  transfer such passengers to or from another part of the system
    12  of such common carrier and, to this end, shall make proper and
    13  convenient arrangement or adjustment of the time schedules of
    14  such common carrier, and shall also make such proper and
    15  convenient arrangement or adjustment of the time schedules of
    16  such common carrier with those of like adjustment of the time
    17  schedules of such common carrier with those of like, contiguous,
    18  or connecting common carriers, as the commission shall deem
    19  necessary or proper for the accommodation, convenience, and
    20  safety of the public.
    21  § 2303.  Common carrier connections with other lines.
    22     (a)  General rule.--Every common carrier shall construct and
    23  maintain, whenever the commission may, after hearing had upon
    24  its own motion or upon complaint, require the same, such switch
    25  or other connections with or between the lines of a like common
    26  carrier, where the same is reasonably practical, to form a
    27  continuous line of transportation, and to cause the
    28  transportation of passengers or property between points within
    29  this Commonwealth to be without unreasonable interruption or
    30  delay, and shall establish through routes and service therein,
    19770H0489B3394                 - 111 -

     1  and joint rates applicable thereto, and, where practicable,
     2  shall transport passengers or property over the same without
     3  transfer from the originating facilities. In case of failure of
     4  the common carriers concerned to agree among themselves upon the
     5  division of the cost of construction, maintenance, and operation
     6  of the connections thus provided for, or the allowance to be
     7  made for the interchange of service, the commission shall
     8  ascertain and, by order, prescribe and fix the equitable and
     9  just apportionment and division of the same.
    10     (b)  Limitation.--Every common carrier and motor carrier is
    11  hereby prohibited from interchanging, receiving or delivering,
    12  with, from or to any common carrier by motor vehicle which does
    13  not have in force a certificate or permit authorizing it to
    14  transport property within the jurisdiction of this part.
    15  § 2304.  Liability of common carriers for damages to property
    16           in transit; bills of lading.
    17     (a)  General rule.--Every common carrier that receives
    18  property for transportation between points within this
    19  Commonwealth shall issue a receipt or bill of lading therefor,
    20  and shall be liable to the lawful holder thereof for any loss,
    21  damage, or injury to such property caused by it, or any other
    22  common carrier to which such property may be delivered, or over
    23  whose line such property may be transported. No contract,
    24  receipt, rule or regulation shall exempt such common carrier
    25  from the liability hereby imposed. The commission may, by
    26  regulation or order, authorize or require any common carrier to
    27  establish and maintain rates related to the value of shipments
    28  declared in writing by the shipper, or agreed upon in writing as
    29  the release value of such shipments; such declaration or
    30  agreement to have no effect other than to limit liability and
    19770H0489B3394                 - 112 -

     1  recovery to an amount not exceeding the value so declared or
     2  released. Any tariff filed pursuant to such regulation or order
     3  shall specifically refer thereto.
     4     (b)  Rights of holder and common carrier.--This section does
     5  not deprive any lawful holder of such receipt or bill of lading
     6  of any remedy or right of action which such holder has under
     7  existing laws. Any common carrier issuing such receipt or bill
     8  of lading shall, in the event of a recovery of a judgment
     9  against, or of a satisfaction made by, such common carrier for
    10  such loss or damage, be entitled to recover from the common
    11  carrier on whose line the loss or damage shall have been
    12  sustained, an amount not in excess of the loss or damage to such
    13  property which the lawful holder of such bill of lading or
    14  receipt would otherwise have been entitled to recover against
    15  such last mentioned common carrier, and not in excess of the
    16  amount actually paid to the holder of such receipt or bill of
    17  lading.
    18  § 2305.  Full crews.
    19     After reasonable notice and hearing had upon its own motion,
    20  or upon complaint, the commission may, by order, require any
    21  common carrier to employ such number of men upon any of its
    22  facilities as, in the judgment of the commission, is requisite
    23  for the safe and efficient operation of such facilities.
    24                             CHAPTER 25
    25            CONTRACT CARRIER BY MOTOR VEHICLE AND BROKER
    26  Sec.
    27  2501.  Declaration of policy and definitions.
    28  2502.  Regulation and classification of contract carrier and
    29         broker.
    30  2503.  Permits required of contract carriers.
    19770H0489B3394                 - 113 -

     1  2504.  Dual operation by motor carriers.
     2  2505.  Licenses and financial responsibility required of
     3         brokers.
     4  2506.  Copies of contracts to be filed with commission; charges
     5         and changes therein.
     6  2507.  Minimum rates fixed and practices prescribed on
     7         complaint.
     8  2508.  Accounts, records and reports.
     9  2509.  Temporary permits and licenses.
    10  § 2501.  Declaration of policy and definitions.
    11     (a)  Declaration of policy.--It is hereby declared to be the
    12  policy of the General Assembly to regulate in this part the
    13  service of common carriers by motor vehicle and forwarders in
    14  such manner as to recognize and preserve the inherent advantages
    15  of, and foster sound economic conditions in such service, and
    16  among such carriers and forwarders in the public interest; to
    17  promote safe, adequate, economical, and efficient service by
    18  common carriers by motor vehicle and forwarders, and just and
    19  reasonable rates therefor, without unjust discrimination, and
    20  unfair or destructive practices; to improve the relations
    21  between, and coordinate the service and regulation of, common
    22  carriers by motor vehicle, forwarders, and other carriers; to
    23  develop and preserve a safe highway transportation system
    24  properly adapted to the needs of the commerce of this
    25  Commonwealth and insure its availability between all points of
    26  production and markets of this Commonwealth. It is hereby found
    27  as a fact, after due investigation and deliberation, that the
    28  service of common carriers by motor vehicle, forwarders,
    29  contract carriers by motor vehicle, and brokers, including the
    30  procurement and provision of motor vehicles and other facilities
    19770H0489B3394                 - 114 -

     1  for the safe transportation of passengers or property over the
     2  highways, are so closely interwoven and interdependent, and so
     3  directly affect each other, that in order effectively to
     4  regulate such common carriers by motor vehicle and forwarders,
     5  and to provide a proper and safe highway transportation system
     6  in the public interest, it is necessary to regulate the service
     7  of such contract carriers by motor vehicle and brokers,
     8  including the procurement and provision of motor vehicles and
     9  other facilities for the safe transportation of passengers or
    10  property over the highways, in the manner set forth in this
    11  chapter.
    12     (b)  Definitions.--The following words and phrases when used
    13  in this part shall have, unless the context clearly indicates
    14  otherwise, the meanings given to them in this section:
    15     "Broker."  Any person or corporation not included in the term
    16  "motor carrier" and not a bona fide employee or agent of any
    17  such carrier, or group of such carriers, who or which, as
    18  principal or agent, sells or offers for sale any transportation
    19  by a motor carrier, or the furnishing, providing, or procuring
    20  of facilities therefor, or negotiates for, or holds out by
    21  solicitation, advertisement, or otherwise, as one who sells,
    22  provides, furnishes, contracts, or arranges for such
    23  transportation, or the furnishing, providing, or procuring of
    24  facilities therefor, other than as a motor carrier directly or
    25  jointly, or by arrangement with another motor carrier, and who
    26  does not assume custody as a carrier.
    27     "Contract carrier by motor vehicle."
    28         (1)  The term "contract carrier by motor vehicle"
    29     includes any person or corporation who or which provides or
    30     furnishes transportation of passengers or property, or both,
    19770H0489B3394                 - 115 -

     1     or any class of passengers or property, between points within
     2     this Commonwealth by motor vehicle for compensation, whether
     3     or not the owner or operator of such motor vehicle, or who or
     4     which provides or furnishes, with or without drivers, any
     5     motor vehicle for such transportation, or for use in such
     6     transportation, other than as a common carrier by motor
     7     vehicle.
     8         (2)  The term "contract carrier by motor vehicle" does
     9     not include:
    10             (i)  A lessor under a lease given on a bona fide sale
    11         of a motor vehicle where the lessor retains or assumes no
    12         responsibility for maintenance, supervision or control of
    13         the motor vehicle so sold.
    14             (ii)  Any bona fide agricultural cooperative
    15         association transporting property exclusively for the
    16         members of such association on a nonprofit basis, or any
    17         independent contractor hauling exclusively for such
    18         association.
    19             (iii)  Any owner or operator of a farm transporting
    20         agricultural products from or farm supplies to such farm,
    21         or any independent contractor hauling agricultural
    22         products or farm supplies, exclusively, for one or more
    23         owners or operators of farms.
    24             (iv)  Transportation of school children for school
    25         purposes or to and from school sponsored extra curricular
    26         activities whether as participants or spectators,
    27         together with chaperons who might accompany them as
    28         designated by the board of school districts not exceeding
    29         five in number, or between their homes and Sunday school
    30         in any motor vehicle owned by the school district,
    19770H0489B3394                 - 116 -

     1         private school or parochial school, or the transportation
     2         of school children between their homes and school or to
     3         and from school sponsored extra curricular or educational
     4         activities whether as participants or spectators,
     5         together with chaperons who might accompany them as
     6         designated by the board of school directors not exceeding
     7         five in number, if the person performing the extra
     8         curricular transportation has a contract for the
     9         transportation of school children between their homes and
    10         school, with the private or parochial school, with the
    11         school district or jointure in which the school is
    12         located, or with a school district that is a member of a
    13         jointure in which the school is located if the jointure
    14         has no contracts with other persons for the
    15         transportation of students between their homes and
    16         school, and if the person maintains a copy of all
    17         contracts in the vehicle at all times, or children
    18         between their homes and Sunday school in any motor
    19         vehicle operated under contract with the school district,
    20         private school or parochial school.
    21             (v)  Any person or corporation who or which uses, or
    22         furnishes for use, dump trucks for the transportation of
    23         ashes, rubbish, excavated or road construction materials.
    24             (vi)  Transportation of voting machines to and from
    25         polling places by any person or corporation for or on
    26         behalf of any political subdivision of this Commonwealth
    27         for use in any primary, general or special election.
    28             (vii)  Transportation of pulpwood, chemical wood, saw
    29         logs or veneer logs from woodlots.
    30             (viii)  Transportation by towing of wrecked or
    19770H0489B3394                 - 117 -

     1         disabled motor vehicles.
     2             (ix)  Any person or corporation who or which
     3         furnishes transportation for any injured, ill or dead
     4         person.
     5  § 2502.  Regulation and classification of contract carrier
     6           and broker.
     7     (a)  Regulation.--The commission shall regulate:
     8         (1)  Contract carriers by motor vehicle, and to that end
     9     the commission may prescribe minimum rates which are just and
    10     reasonable, and establish requirements with respect to
    11     uniform systems of accounts, records, reports, preservation
    12     of records, safety of service and equipment and insurance.
    13         (2)  Brokers, and to that end the commission may
    14     prescribe requirements with respect to licensing, financial
    15     responsibility, accounts, reports, records, services and
    16     practices of any such brokers.
    17     (b)  Classification.--The commission may from time to time
    18  establish such classifications of contract carriers by motor
    19  vehicle, or brokers, as the special nature of the service of
    20  such carriers or brokers shall require and as deemed necessary
    21  or desirable in the public interest.
    22  § 2503.  Permits required of contract carriers.
    23     (a)  General rule.--No person or corporation shall render
    24  service as a contract carrier by motor vehicle unless there is
    25  in force with respect to such carrier a permit issued by the
    26  commission, authorizing such person or corporation to engage in
    27  such business. The application for such permit shall be
    28  determined by the commission in accordance with the provisions
    29  of subsection (b).
    30     (b)  Application and issuance.--Every application for such
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     1  permit shall be made to the commission in writing, be verified
     2  by oath or affirmation, and shall be in such form and contain
     3  such information as the commission may require by its
     4  regulations. A permit shall be issued by the commission to any
     5  qualified applicant therefor authorizing in whole or in part the
     6  service covered by the application, if it appears from the
     7  application, or from any hearing held thereon, that the
     8  applicant is fit, willing and able properly to perform the
     9  service of a contract carrier by motor vehicle, and to conform
    10  to the provisions of this chapter and the lawful orders or
    11  regulations of the commission thereunder, and that the proposed
    12  service to the extent authorized by the permit will be
    13  consistent with the public interest and the policy declared in
    14  section 2501 (relating to declaration of policy and
    15  definitions); otherwise such application shall be denied.
    16     (c)  Special permit provisions.--The commission shall specify
    17  in the permit the business of the contract carrier by motor
    18  vehicle covered thereby, and the route and area required in
    19  serving the customers in such business, and shall attach to it,
    20  at the time of issuance, and from time to time thereafter, such
    21  reasonable terms, conditions, flexibility and limitations
    22  consistent with the character of the holder as are necessary to
    23  carry out, with respect to the service of such carrier, the
    24  requirements of this part.
    25  § 2504.  Dual operation by motor carriers.
    26     No person or corporation shall at the same time hold a
    27  certificate of public convenience as a common carrier by motor
    28  vehicle and a permit as a contract carrier by motor vehicle,
    29  unless for good cause shown, the commission shall find that such
    30  certificate and permit may be held consistently with the public
    19770H0489B3394                 - 119 -

     1  interest.
     2  § 2505.  Licenses and financial responsibility required of
     3           brokers.
     4     (a)  General rule.--No person or corporation shall engage in
     5  the business of a broker in this Commonwealth unless such person
     6  holds a brokerage license issued by the commission. No such
     7  person or corporation, by virtue of a brokerage license, shall
     8  render service as a motor carrier unless he holds a certificate
     9  of public convenience or permit, as the case may be. It shall be
    10  unlawful for any broker to employ any motor carrier who or which
    11  is not the lawful holder of an effective certificate of public
    12  convenience or permit.
    13     (b)  License application and issuance.--Every application for
    14  a brokerage license shall be made to the commission in writing,
    15  be verified by oath or affirmation, and shall be in such form
    16  and contain such information as the commission may, by its
    17  regulations, require. A brokerage license shall be issued to any
    18  qualified applicant therefor, authorizing the whole or any part
    19  of the service covered by the application, if it is found that
    20  the applicant is fit, willing and able properly to perform the
    21  service proposed and to conform to the provisions of this part
    22  and the lawful orders and regulations of the commission
    23  thereunder, and that the proposed service, to the extent
    24  authorized by the license, will be consistent with the public
    25  interest and the policy declared in section 2501 (relating to
    26  declaration of policy and definitions); otherwise such
    27  application shall be denied.
    28     (c)  Regulation and bond.--The commission shall prescribe
    29  reasonable regulations to be observed by any broker for the
    30  protection of passengers or property transported by motor
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     1  vehicle, and no brokerage license shall be issued or remain in
     2  force unless the holder thereof shall have furnished a bond or
     3  other security approved by the commission, in such form and
     4  amount as will insure the financial responsibility of the broker
     5  and the transportation of passengers or property in accordance
     6  with contracts, agreements or arrangements therefor.
     7     (d)  Transferability of permits and licenses.--Any permit or
     8  brokerage license issued under this chapter may be transferred
     9  pursuant to such regulations as the commission may prescribe.
    10  § 2506.  Copies of contracts to be filed with commission;
    11           charges and changes therein.
    12     (a)  General rule.--It shall be the duty of every contract
    13  carrier by motor vehicle to reduce to writing and file with the
    14  commission all contracts, or copies thereof, pertaining to the
    15  service of such carrier, and such schedules or other information
    16  pertaining to the rates of such carrier, in such form and
    17  detail, and at such times, as the commission may require. No
    18  such contract carrier shall engage in the transportation of
    19  passengers or property, unless the minimum charges for such
    20  transportation by such carrier have been filed with the
    21  commission, or copies of all contracts reduced to writing and
    22  filed with the commission. No reduction shall be made in any
    23  charge either directly or by means of any change in any rule,
    24  regulation or practice affecting such charge, except after 60
    25  days notice of the proposed change filed in such form and manner
    26  as the commission may by regulation prescribe, but the
    27  commission may, in its discretion, allow such change upon less
    28  notice. Such notice shall plainly state the change proposed to
    29  be made and the time when such change will become effective. No
    30  such carrier shall demand, charge, or collect a less
    19770H0489B3394                 - 121 -

     1  compensation for such transportation than the charges filed in
     2  accordance with this section, as affected by any rule,
     3  regulation, or practice so filed, or as prescribed by the
     4  commission from time to time, and it shall be unlawful for any
     5  such carrier, by the furnishing of special service, facilities,
     6  or privileges, or by any other device whatsoever, to charge,
     7  accept or receive less than the minimum charge so filed or
     8  prescribed.
     9     (b)  Reduced charges.--Whenever any such contract carrier
    10  shall file with the commission any schedule or contract stating
    11  a reduced charge for the transportation of passengers or
    12  property directly or by means of any rule, regulation or
    13  practice, the commission is hereby authorized and empowered,
    14  upon complaint, or upon its own motion, at once and if it so
    15  orders, without answer or other formal pleading, but upon
    16  reasonable notice, to enter upon a hearing concerning the
    17  reasonableness and justness of such charge, rule, regulation, or
    18  practice; and pending such hearing and decision thereon, the
    19  commission, by filing with such schedule or contract, and
    20  delivering to the carrier affected thereby, a statement in
    21  writing of its reasons for such suspension, may suspend the
    22  operation of such schedule or contract, or defer the use of such
    23  charge, rule, regulation or practice for a period of 90 days;
    24  and if the proceeding has not been concluded and a final order
    25  made within such period, the commission may, from time to time,
    26  extend the period of suspension, but not for a longer period in
    27  the aggregate than 180 days beyond the time when it would
    28  otherwise become effective; and after hearing, whether completed
    29  before or after the charge, rule, regulation, or practice
    30  becomes effective, the commission may make such order with
    19770H0489B3394                 - 122 -

     1  reference thereto, as would be proper in a proceeding instituted
     2  after it had become effective.
     3  § 2507.  Minimum rates fixed and practices prescribed on
     4           complaint.
     5     Whenever, after hearing upon complaint or its own motion, the
     6  commission finds that any rate of any contract carrier by motor
     7  vehicle, or any regulation or practice of any such carrier
     8  affecting such rate for the transportation of passengers or
     9  property, contravenes the public policy as set forth in section
    10  2501 (relating to declaration of policy and definitions), the
    11  commission may prescribe such minimum rates or such regulations
    12  or practices as in its judgment may be just and reasonable to
    13  promote the public interest. Such minimum rates or such
    14  regulations or practices so prescribed by the commission shall
    15  not be inconsistent with the policy declared in section 2501,
    16  and the commission shall give due consideration to the cost of
    17  the service of such carriers, and to the effect of such minimum
    18  rates or such regulations or practices upon the transportation
    19  of passengers or property by such carriers, and diversion of the
    20  business of any common carrier by motor vehicle to other forms
    21  of transportation. All complaints to the commission under this
    22  section shall state fully the facts complained of and the
    23  reasons for such complaints, and shall be made under oath or
    24  affirmation.
    25  § 2508.  Accounts, records and reports.
    26     (a)  Reports.--The commission is hereby authorized to require
    27  annual, periodical, or special reports from all contract
    28  carriers by motor vehicle and brokers; to prescribe the manner
    29  and form in which such reports shall be made; and to require
    30  from such carriers and brokers, specific answers to all
    19770H0489B3394                 - 123 -

     1  questions upon which the commission may deem information to be
     2  necessary. Such reports shall be under oath or affirmation
     3  whenever the commission so requires.
     4     (b)  Form of accounts and records.--The commission may
     5  prescribe the forms of any and all accounts, records, and
     6  memoranda, including the accounts, records, and memoranda of the
     7  movement of traffic, as well as of the receipts and expenditures
     8  of money, to be kept by contract carriers by motor vehicle, and
     9  brokers, and the length of time such accounts, records, and
    10  memoranda shall be preserved; and whenever the commission shall
    11  so prescribe, it shall be the duty of every contract carrier by
    12  motor vehicle, and broker, affected to comply therewith. In
    13  every case of a contract carrier by motor vehicle, or broker,
    14  subject to the jurisdiction of any Federal regulatory body, the
    15  systems of accounts, records, and memoranda prescribed by the
    16  commission shall conform, so far as practicable, to those
    17  prescribed by such regulatory body.
    18  § 2509.  Temporary permits and licenses.
    19     The commission, under such regulations as it shall prescribe,
    20  may, without hearing, in proper cases, consider and approve
    21  applications for permits and licenses, and in emergencies grant
    22  temporary permits and licenses under this chapter, pending
    23  action on permanent permits or licenses; but no application
    24  shall be denied without right of hearing thereon being tendered
    25  the applicant.
    26                             CHAPTER 27
    27                             RAILROADS
    28  Sec.
    29  2701.  Railroad connections with sidetracks and laterals.
    30  2702.  Construction, relocation, suspension and abolition of
    19770H0489B3394                 - 124 -

     1         crossings.
     2  2703.  Ejectment in crossing cases.
     3  2704.  Compensation for damages occasioned by construction,
     4         relocation or abolition of crossings.
     5  2705.  Speedometers and speed recorders.
     6  2706.  Flag protection.
     7  § 2701.  Railroad connections with sidetracks and laterals.
     8     (a)  General rule.--Every public utility engaged in a
     9  railroad business shall, upon application of any owner or
    10  operator of any lateral railroad, or any private sidetrack, or
    11  of any shipper tendering property for transportation, or of any
    12  consignee, construct, maintain, and operate, at a reasonable
    13  place and upon reasonable terms, a switch connection with any
    14  such lateral railroad or private sidetrack which may be
    15  constructed to connect with its railroad, where such connection
    16  may be reasonably practicable and can be put in with safety, and
    17  will furnish sufficient business to justify the construction and
    18  maintenance of the same.
    19     (b)  Additional connections and use.--Whenever any lateral
    20  line of railroad or private sidetrack has been so connected with
    21  a line of any railroad, or whenever any owner of such lateral
    22  railroad or private sidetrack has at any time heretofore sold or
    23  leased, or shall hereafter sell or lease, such lateral railroad
    24  or sidetrack to any public utility engaged in a railroad
    25  business, any person or corporation, including a municipal
    26  corporation, shall be entitled to connect therewith, or to use
    27  the same upon payment to the party incurring the primary expense
    28  thereof of a reasonable proportion of the cost of such lateral
    29  railroad or private sidetrack, and of the maintenance thereof,
    30  which shall be determined, in case of disagreement among the
    19770H0489B3394                 - 125 -

     1  parties, by the commission, after notice to the interested
     2  parties, and a hearing. Such connection and use can SHALL be      <--
     3  made without unreasonable interference with the use thereof by
     4  the party incurring the primary expense of owning or leasing
     5  such lateral railroad or sidetrack.
     6  § 2702.  Construction, relocation, suspension and abolition of
     7           crossings.
     8     (a)  General rule.--No public utility, engaged in the
     9  transportation of passengers or property, shall, without prior
    10  order of the commission, construct its facilities across the
    11  facilities of any other such public utility or across any
    12  highway at grade or above or below grade, or at the same or
    13  different levels; and no highway, without like order, shall be
    14  so constructed across the facilities of any such public utility,
    15  and, without like order, no such crossing heretofore or
    16  hereafter constructed shall be altered, relocated, suspended or
    17  abolished.
    18     (b)  Acquisition of property and regulation of crossing.--The
    19  commission is hereby vested with exclusive power to appropriate
    20  property for any such crossing, except as to such property as
    21  has been or may hereafter be condemned by the Department of
    22  Transportation for projects financed entirely by the
    23  Commonwealth and for Federal Aid Projects under section 1004 of
    24  the act of June 1, 1945 (P.L.1242, No.428), known as the "State
    25  Highway Law," in which case the provisions of that statute shall
    26  be in effect, and to determine and prescribe, by regulation or
    27  order, the points at which, and the manner in which, such
    28  crossing may be constructed, altered, relocated, suspended or
    29  abolished, and the manner and conditions in or under which such
    30  crossings shall be maintained, operated, and protected to
    19770H0489B3394                 - 126 -

     1  effectuate the prevention of accidents and the promotion of the
     2  safety of the public. The commission shall require every
     3  railroad the right-of-way of which crosses a public highway at
     4  grade to cut or otherwise control the growth of brush and weeds
     5  upon property owned by the railroad within 200 feet of such
     6  crossing on both sides and in both directions so as to insure
     7  proper visibility by motorists.
     8     (c)  Mandatory relocation, alteration, suspension or
     9  abolition.--Upon its own motion or upon complaint, the
    10  commission shall have exclusive power after hearing, upon notice
    11  to all parties in interest, including the owners of adjacent
    12  property, to order any such crossing heretofore or hereafter
    13  constructed to be relocated or altered, or to be suspended or
    14  abolished upon such reasonable terms and conditions as shall be
    15  prescribed by the commission. In determining the plans and
    16  specifications for any such crossing, the commission may lay
    17  out, establish, and open such new highways as, in its opinion,
    18  may be necessary to connect such crossing with any existing
    19  highway, or make such crossing more available to public use; and
    20  may abandon or vacate such highways or portions of highways as,
    21  in the opinion of the commission, may be rendered unnecessary
    22  for public use by the construction, relocation, or abandonment
    23  of any of such crossings. The commission may order the work of
    24  construction, relocation, alteration, protection, suspension or
    25  abolition of any crossing aforesaid to be performed in whole or
    26  in part by any public utility or municipal corporation concerned
    27  or by the Commonwealth.
    28     (d)  Procedure for appropriation of property.--When any real
    29  property is appropriated by the commission under this section,
    30  each parcel of such property so appropriated, shall be
    19770H0489B3394                 - 127 -

     1  accurately described by metes and bounds, and the record owner
     2  of each such parcel shall be named in the order of
     3  appropriation. Unless otherwise recorded, the commission shall
     4  file with the recorder of deeds of the proper county, a copy of
     5  that portion of the order of the commission which appropriates
     6  such property, and such plans and other detailed information as
     7  the commission may deem necessary. Such portion of the
     8  commission's order dealing with the specific property
     9  appropriated shall be recorded and indexed under the name or
    10  names of the record owners of such specific property at the
    11  expense of the utility or utilities, political subdivision,
    12  municipality or municipalities, governmental agency, including
    13  the Department of Transportation and Public Utility Commission,
    14  corporation or persons upon whose instigation, petition or
    15  complaint the said crossing was constructed, reconstructed,
    16  relocated, altered, suspended or abolished, as may be ordered,
    17  to bear such expense or recording by the commission. When such
    18  appropriation of real property has been recorded under the
    19  provisions of any other statute, such recording shall not be
    20  duplicated under the terms of this subsection.
    21     (e)  Reactivation.--The commission may, within its discretion
    22  upon petition by any railroad, the Commonwealth, a political
    23  subdivision or any other affected party by order reactivate any
    24  crossing suspended under this section.
    25     (f)  Danger to safety.--Upon the commission's finding of an
    26  immediate danger to the safety and welfare of the public at any
    27  such crossing, the commission shall order the crossing to be
    28  immediately altered, improved, or suspended. Thereafter hearing
    29  shall be held and costs shall be allocated in the manner
    30  prescribed in this part.
    19770H0489B3394                 - 128 -

     1     (g)  Suspensions.--Any order of suspension under this section
     2  shall require the following for the protection of the motoring
     3  public:
     4         (1)  Removal or covering of crossing warning devices.
     5         (2)  (i)  Paving over the tracks; or
     6             (ii)  removal of the tracks and paving over of the
     7         area formerly occupied by said tracks; or
     8             (iii)  barricading the crossing.
     9  § 2703.  Ejectment in crossing cases.
    10     When any real property is appropriated by the commission in
    11  connection with a crossing improvement under this part, the
    12  commission may direct the removal of all structures within the
    13  lines of such appropriation. In any case where any such order     <--
    14  has been or shall be made, the court of common pleas of the
    15  county wherein the property appropriated shall be situate, may,
    16  upon petition by the commission, the Department of
    17  Transportation or the county commissioners, issue a writ or
    18  writs of possession. The petition shall be served upon the
    19  parties named therein and such other parties as the court may
    20  direct. If no answer is filed, or if an answer is filed, and
    21  after such hearing as the court shall direct, it shall deem the
    22  same to be insufficient, the court shall, upon motion, direct
    23  such writ to issue, and shall order and direct the sheriff to
    24  execute such writ and deliver possession to the Commonwealth or
    25  the county, as the case may be. Such procedure shall not be
    26  considered as in derogation of, or in any manner affecting, any
    27  other powers or procedure possessed by the Commonwealth or
    28  county in such cases. No bond or other form of security shall be
    29  required to be filed by the Commonwealth or the county.
    30  § 2704.  Compensation for damages occasioned by construction,
    19770H0489B3394                 - 129 -

     1           relocation or abolition of crossings.
     2     (a)  General rule.--The compensation for damages which the
     3  owners of adjacent property taken, injured, or destroyed may
     4  sustain in the construction, relocation, alteration, protection,
     5  or abolition of any crossing under the provisions of this part,
     6  shall, after due notice and hearing, be ascertained and
     7  determined by the commission. Such compensation, as well as the
     8  cost of construction, relocation, alteration, protection, or
     9  abolition of such crossing, and of facilities at or adjacent to
    10  such crossing which are used in any kind of public utility
    11  service, shall be borne and paid, as provided in this section,
    12  by the public utilities or municipal corporations concerned, or
    13  by the Commonwealth, in such proper proportions as the
    14  commission may, after due notice and hearing, determine, unless
    15  such proportions are mutually agreed upon and paid by the
    16  interested parties.
    17     (b)  Judicial review.--Any party to the proceeding
    18  dissatisfied with the determination of the commission may appeal
    19  therefrom, as provided by law, and for this purpose is hereby
    20  authorized to sue the Commonwealth. The commission may, of its
    21  own motion, or upon application of any party in interest, submit
    22  to the court of common pleas of the county wherein the property
    23  affected is located, the determination of the amount of damages
    24  to any property owner due to such condemnation, for which
    25  purpose such court shall appoint viewers, from whose award of
    26  damages an appeal to said court shall lie on the part of any
    27  person or party aggrieved thereby, under the general law
    28  applicable to the appointment of viewers, for the ascertainment
    29  of damages due to the condemnation of private property for
    30  public use.
    19770H0489B3394                 - 130 -

     1     (c)  Payment of compensation.--The amount of damages or
     2  compensation determined and awarded to be paid the owners of
     3  adjacent property by the Commonwealth shall, in each instance,
     4  be paid by the State Treasurer, on a warrant drawn by the State
     5  Treasurer, upon the presentation to that officer of a statement
     6  setting forth the amount determined to be paid as aforesaid,
     7  duly certified by the commission; such payment to be paid out of
     8  any funds specifically appropriated for the improvement of the
     9  roads or highways of this Commonwealth; and in case of a verdict
    10  and judgment thereon for the damages or compensation, recorded
    11  by any such adjacent property owners upon appeal, the same shall
    12  be paid out of any funds appropriated as aforesaid; and any
    13  court of common pleas hearing and determining such appeal is
    14  hereby authorized and empowered to issue a writ of mandamus to
    15  such commission and the State Treasurer, or either of them, as
    16  the case may require, for the payment of such judgment.
    17     (d)  Recovery of compensation.--The commission shall have the
    18  right to recover, for and on behalf of the Commonwealth, by due
    19  process of law, as debts of like amount are now by law
    20  recoverable, from the public utility or municipal corporation
    21  concerned, in such amounts or proportions against each as may be
    22  determined by the commission, as hereinbefore provided in this
    23  section, the amount of the damages or compensation awarded to
    24  the owners of adjacent property by the commission, or by the
    25  court, and the amounts so received shall be paid into the State
    26  Treasury, through the Department of Revenue, to the credit of
    27  the Motor License Fund.
    28  § 2705.  Speedometers and speed recorders.
    29     (a)  General rule.--No railroad locomotive shall be operated
    30  in excess of 30 miles per hour in this Commonwealth without a
    19770H0489B3394                 - 131 -

     1  device or devices making a permanent record of the speed at       <--
     2  which the locomotive is traveling and providing the engineer or
     3  operator of the locomotive with a view of such speed. Both
     4  devices shall be functioning correctly within four miles per
     5  hour.
     6     (b)  Exceptions.--Locomotives operated or used exclusively
     7  within designated yard limits in switching or transfer service
     8  need not be equipped in accordance with the provisions of this
     9  section. Locomotives while being used in commuter passenger
    10  service need not be equipped with a speed recording device.
    11     (c)  Notification of compliance.--Each railroad shall notify
    12  the commission of the date that each locomotive comes into
    13  compliance with the provisions of this section. The notification
    14  shall state the serial number or other identification of the
    15  locomotive.
    16     (d)  Schedule of regulated locomotives.--Each railroad
    17  affected by the provisions of this section shall maintain at a
    18  designated location a list or schedule of the locomotives
    19  referred to in this section. It shall set forth, along with
    20  other information, the date that the device or devices referred
    21  to in subsection (a) were calibrated and found to be functioning
    22  in accordance with the provisions of this section. It shall
    23  advise the commission as to such location. In the case of speed   <--
    24  recorders, the permanent records required hereby shall be
    25  maintained by the railroad at a location made known to the
    26  commission for a period of six months or, in the event of an
    27  accident during the operation of the locomotive involved, until
    28  permission to destroy them has been granted by the commission.
    29  IN THE EVENT OF AN ACCIDENT DURING THE OPERATION OF A LOCOMOTIVE  <--
    30  OR IN THE EVENT OF A DISCIPLINARY PROCEEDING IN WHICH A RAILROAD
    19770H0489B3394                 - 132 -

     1  EMPLOYEE IS CHARGED WITH EXCESSIVE SPEED, THE RECORD REQUIRED BY
     2  THIS SECTION SHOWING THE SPEED AT THE TIME AND PLACE INVOLVED
     3  SHALL BE RETAINED BY THE RAILROAD, AT A LOCATION MADE KNOWN TO
     4  THE PUBLIC UTILITY COMMISSION, FOR A PERIOD OF SIX MONTHS AFTER
     5  SAID ACCIDENT OR DISCIPLINARY PROCEEDING. IN ANY DISCIPLINARY
     6  PROCEEDING IN WHICH A RAILROAD EMPLOYEE IS CHARGED WITH
     7  EXCESSIVE SPEED IN THE OPERATION OF A LOCOMOTIVE EQUIPPED WITH A
     8  SPEED RECORDER THE RAILROAD MAY NOT INTRODUCE OTHER EVIDENCE OF
     9  SUCH SPEED UNLESS THE RECORD HAS BEEN RETAINED IN COMPLIANCE
    10  WITH THIS SUBSECTION.
    11     (e)  Enforcement.--The commission shall enforce the
    12  provisions of this section and may issue such order or orders as
    13  may be proper to require compliance therewith.
    14  § 2706.  Flag protection.
    15     (a)  General rule.--All railroads operating in this
    16  Commonwealth shall promulgate and maintain appropriate operating
    17  rules and special instructions for the government of their
    18  respective employees in conformity with the following:
    19         (1)  When a train stops under circumstances in which it
    20     may be overtaken by another train, a member of the crew must
    21     provide flagging protection by going back immediately with a
    22     red flag, torpedoes and fusees by day and with a red and/or
    23     white light, torpedoes and fusees by night, a sufficient
    24     distance to insure full protection, placing two torpedoes on
    25     the rail and also, when necessary, display lighted fusees.
    26         (2)  When recalled and safety to the train will permit,
    27     he may return.
    28         (3)  When conditions require, he will leave the torpedoes
    29     and a lighted fusee.
    30         (4)  The front of the train must be protected in the same
    19770H0489B3394                 - 133 -

     1     way, when necessary, by a member of the crew.
     2         (5)  When a train is moving under circumstances in which
     3     it may be overtaken by another train, a member of the crew
     4     must take such action as may be necessary to insure full
     5     protection. By night, or by day, when the view is obscured,
     6     lighted fusees must be dropped off the moving train or
     7     displayed at proper intervals.
     8         (6)  When day signals cannot be plainly seen, owing to
     9     weather or other conditions, night signals must also be used.
    10         (7)  Conductors and enginemen are responsible for the
    11     protection of their trains.
    12         (8)  When a pusher engine is assisting a train, coupled
    13     behind the cabin or caboose car, and the member of the crew
    14     who protects the rear-end of the train is riding in the cabin
    15     or caboose car, the requirements as to the fusees will be met
    16     by dropping them off between the cabin or caboose car and
    17     pusher engine on the track the train is using, and not
    18     between that track and an adjacent track.
    19     (b)  Exceptions.--Unless specific circumstances indicate to
    20  the contrary, it will be presumed that trains stopping under the
    21  following circumstances will not be overtaken by another train:
    22         (1)  Passenger trains making normal station stops.
    23         (2)  All trains stopping in manual block territory
    24     protected by absolute block.
    25         (3)  All trains stopping so as to be completely within
    26     the limits of classification or storage yards at the usual
    27     place to change crews or remove power.
    28     (c)  Construction of section.--For the purposes of this
    29  section a "train" means a movement on which the air brakes must
    30  be connected and functioning under Federal law. This section is
    19770H0489B3394                 - 134 -

     1  not intended to require the employment of additional employees
     2  or restrict the use of crew members in any manner.
     3     (d)  Enforcement.--The commission shall enforce the
     4  provisions of this section.
     5                             CHAPTER 29
     6                   TELEPHONE AND TELEGRAPH WIRES
     7  Sec.
     8  2901.  Definitions.
     9  2902.  Private wire for gambling information prohibited.
    10  2903.  Written contract for private wire.
    11  2904.  Joint use of telephone and telegraph facilities.
    12  § 2901.  Definitions.
    13     The following words and phrases when used in this chapter
    14  shall have, unless the context clearly indicates otherwise, the
    15  meanings given to them in this section:
    16     "Dissemination."  The act of transmitting, distributing,
    17  advising, spreading, communicating, conveying or making known.
    18     "Private wire."  Any and all service equipment, facilities,
    19  conduits, poles, wires, circuits, systems by which or by means
    20  of which service is furnished for communication purposes, either
    21  through the medium of telephone, telegraph, Morse,
    22  teletypewriter, loudspeaker or any other means, or by which the
    23  voice or electrical impulses are sent over a wire, and which
    24  services are contracted for or leased for service between two or
    25  more points specifically designated, and are not connected to or
    26  available for general telegraphic or telephonic exchange or toll
    27  service, and shall include such services known as "special
    28  contract leased wire service," "leased line," "private line,"
    29  "private system," "Morse line," "private wire," but shall not
    30  include the usual and customary telephone service by which the
    19770H0489B3394                 - 135 -

     1  subscriber may be connected at each separate call to any other
     2  telephone designated by him only through the general telephone
     3  exchange system or toll service, and shall not include private
     4  wires used for fire or burglar alarm purposes, nor telegraph
     5  messenger call boxes and circuits used in connection therewith,
     6  time clock circuits used for furnishing correct time service,
     7  nor telegraph teleprinters when these teleprinters terminate in
     8  the telegraph companies' offices and are not directly connected
     9  between two customers.
    10     "Public utility."  A person, partnership, association or
    11  corporation, now or hereafter owning or operating in this
    12  Commonwealth, equipment or facilities for conveying or
    13  transmitting messages or communications by telephone or
    14  telegraph to the public for compensation.
    15  § 2902.  Private wire for gambling information prohibited.
    16     (a)  General rule.--It is unlawful for any public utility
    17  knowingly to furnish to any person OR CORPORATION any private     <--
    18  wire for use or intended for use in the dissemination of
    19  information in furtherance of gambling or for gambling purposes.
    20  Any contract shall constitute prima facie evidence that such
    21  private wire will be used in furtherance of gambling or for
    22  gambling purposes if it shall appear in such contract, or
    23  otherwise, that such private wire will be used, is intended to
    24  be used or has been used for the dissemination of information
    25  pertaining to any horse-racing, race track, race horse, betting,
    26  betting odds or any information relative thereto.
    27     (b)  Burden of proof.--In any proceeding before the
    28  commission under this chapter and in any hearing or proceeding
    29  on appeal, the burden of proof shall be on the public utility
    30  and the person OR CORPORATION contracting for such private wire   <--
    19770H0489B3394                 - 136 -

     1  to show that the private wire has not been used, or is not being
     2  used, or is not intended for use in the furtherance of gambling
     3  or for gambling purposes.
     4  § 2903.  Written contract for private wire.
     5     (a)  General rule.--It is unlawful for any public utility to
     6  furnish to any person OR CORPORATION any private wire, except in  <--
     7  pursuance of a written contract signed by the public utility, by
     8  the person OR CORPORATION contracting for said private wire and   <--
     9  responsible under the terms of the contract for the payment for
    10  the service, and by the person OR CORPORATION in possession or    <--
    11  control of any place or location designated in the contract for
    12  installation or connection of said private wire, which contract
    13  shall include a detailed written statement of the purpose for
    14  which such private wire is intended to be used.
    15     (b)  Exceptions.--This section does not apply to:
    16         (1)  The furnishing of any private wire in case of public
    17     emergency, or where the furnishing of the said private wire
    18     is for a temporary purpose not to exceed 48 hours.
    19         (2)  Any private wire furnished for use in radio
    20     broadcasting, or to any private wire furnished for use by any
    21     protective service operating under a franchise granted by any
    22     municipality, or to any private wire furnished for use in
    23     interstate commerce, or to any private wire furnished for use
    24     of newspapers of general circulation.
    25     (c)  Action by commission.--It is unlawful for any public
    26  utility to furnish to any person OR CORPORATION any private wire  <--
    27  without first furnishing to the commission a duplicate original
    28  of the written contract required by this section. The commission
    29  shall examine the same forthwith and conduct such investigation
    30  as it may deem necessary, and, if upon examination of the
    19770H0489B3394                 - 137 -

     1  contract, or after investigation, or otherwise at any time, the
     2  commission shall find that the said private wire is intended for
     3  or has been used for or is being used for the transmission of
     4  information or advice in furtherance of gambling, the commission
     5  shall disapprove the said contract and give notice of such
     6  disapproval to the contracting parties. Thereafter it shall be
     7  unlawful for any public utility to furnish the said private wire
     8  provided for in the said contract. This subsection does not
     9  apply to the furnishing of any private wire in case of public
    10  emergency, or where the furnishing of the said private wire is
    11  for a temporary purpose not to exceed 48 hours.
    12     (d)  Hearing.--Any public utility or other person OR           <--
    13  CORPORATION party to the contract who shall feel aggrieved at
    14  the action of the commission in disapproving any contract for
    15  any private wire shall be entitled to a hearing before the
    16  commission upon written request.
    17     (e)  Illegal use.--It is unlawful for any person OR            <--
    18  CORPORATION, who has been furnished a private wire by any public
    19  utility in accordance with the provisions of this chapter, to
    20  use such private wire for any purpose other than that specified
    21  in the contract.
    22  § 2904.  Joint use of telephone and telegraph facilities.
    23     (a)  Through lines for continuous service.--The commission
    24  may, upon complaint or upon its own motion, after reasonable
    25  notice and hearing, by order, require any two or more public
    26  utilities, whose lines or wires form a continuous line of
    27  communication, or could be made to do so by the construction and
    28  maintenance of suitable connections or the joint use of
    29  facilities, or the transfer of messages at common points,
    30  between different localities which cannot be communicated with,
    19770H0489B3394                 - 138 -

     1  or reached by, the lines of either public utility alone, where
     2  such service is not already established or provided, to
     3  establish and maintain through lines within this Commonwealth
     4  between two or more such localities. The rate for such service
     5  shall be just and reasonable and the commission shall have power
     6  to establish the same, and declare the portion thereof to which
     7  each company affected thereby is entitled and the manner in
     8  which the same must be secured and paid. All facilities
     9  necessary to establish such service shall be constructed and
    10  maintained in such manner and under such rules, with such
    11  division of expense and labor, as may be required by the
    12  commission.
    13     (b)  Trunk line connections.--The commission may, upon
    14  complaint or upon its own motion, after reasonable notice and
    15  hearing, by order, require any one or more public utilities to
    16  connect their facilities, through the medium of suitable trunk
    17  lines, with such manual or automatic inter-communicating
    18  telephone or telegraph systems as may be wholly owned or leased
    19  by such public utilities, or by any other person or corporation.
    20  Rates for such trunk line connections and service shall be in
    21  accordance with tariffs filed with and approved by the
    22  commission.
    23                             SUBPART E
    24                      MISCELLANEOUS PROVISIONS
    25  Chapter
    26    31.  Foreign Trade Zones
    27    33.  Violations and Penalties
    28                             CHAPTER 31
    29                        FOREIGN TRADE ZONES
    30  Sec.
    19770H0489B3394                 - 139 -

     1  3101.  Operation as a public utility.
     2  3102.  Establishment by private corporations and municipalities.
     3  3103.  Formation and authority of private corporations.
     4  3104.  Municipalities and corporations to comply with law;
     5         forfeiture of rights.
     6  3105.  Reports to Department of Community Affairs.
     7  § 3101.  Operation as public utility.
     8     Each foreign trade zone established and maintained within the
     9  limits of this Commonwealth as set forth in this chapter shall
    10  be operated as a public utility, and all rates and charges for
    11  all services or privileges within the zone shall be fair and
    12  reasonable, but no such rates or charges shall be subject to
    13  supervision, regulation or control by the commission. Every
    14  municipality and private corporation operating and maintaining a
    15  foreign trade zone shall afford to all who may apply for the use
    16  of the trade zone and its facilities and appurtenances, uniform
    17  treatment under like conditions, subject to such treaties or
    18  commercial conventions as are now in force or may hereafter be
    19  made from time to time by the United States with foreign
    20  governments.
    21  § 3102.  Establishment by private corporations and
    22           municipalities.
    23     Any private corporation formed in this Commonwealth for the
    24  purposes expressed in this part and any municipality of this
    25  Commonwealth, is hereby authorized to make application in
    26  accordance with the provisions of the act of Congress of the
    27  United States, approved June 18, 1934, entitled "An act to
    28  provide for the establishment, operation, and maintenance of
    29  foreign trade zones in ports of entry of the United States; to
    30  expedite and encourage foreign commerce, and for other
    19770H0489B3394                 - 140 -

     1  purposes," (Public Act No. 397, 73rd Congress), referred to in
     2  this chapter as "the act of Congress"; to the board consisting
     3  of the Secretary of Commerce, the Secretary of the Treasury, and
     4  the Secretary of War, thereby established, referred to in this
     5  chapter as "the board"; for the privilege of establishing,
     6  operating, and maintaining a foreign trade zone in, or adjacent
     7  to, any port of entry under the jurisdiction of the United
     8  States in order to expedite and encourage foreign commerce. If,
     9  and when, such application is granted, the grantee shall have
    10  power to establish, operate, and maintain such foreign trade
    11  zone. Any foreign trade zone established by a municipality may
    12  be operated and maintained only within the limits of such
    13  municipality, or adjacent thereto. Any such foreign trade zone
    14  shall be established, operated, and maintained by a municipality
    15  or private corporation in accordance with the provisions of the
    16  act of Congress.
    17  § 3103.  Formation and authority of private corporations.
    18     Any such private corporation desiring to engage in the
    19  business set forth in this chapter shall be formed as a business
    20  corporation under the act of May 5, 1933 (P.L.364, No.106),
    21  known as the "Business Corporation Law," and shall have all the
    22  powers, rights and privileges, and be subject to all the
    23  restrictions and limitations provided by the "Business
    24  Corporation Law."
    25  § 3104.  Municipalities and corporations to comply with law;
    26           forfeiture of rights.
    27     Each municipality and private corporation establishing,
    28  operating, and maintaining a foreign trade zone shall fully
    29  comply with all of the provisions of the act of Congress and the
    30  rules and regulations prescribed by the board thereunder, and
    19770H0489B3394                 - 141 -

     1  shall have all the powers, rights, privileges, and authority
     2  conferred by the act of Congress and said rules and regulations,
     3  and be subject to the limitations and restrictions contained in
     4  said act and said rules and regulations. Any such municipality
     5  or private corporation shall forfeit any right and privilege to
     6  operate and maintain a foreign trade zone, under the provisions
     7  of this part or under the charter of any private corporation
     8  formed as aforesaid, if, and when, its grant of privilege is
     9  finally revoked under the authority granted in the act of
    10  Congress.
    11  § 3105.  Reports to Department of Community Affairs.
    12     Each municipality and private corporation operating a foreign
    13  trade zone within the limits of this Commonwealth shall file a
    14  copy of every report which it shall make, or be required to
    15  make, under the act of Congress with the Department of Community
    16  Affairs.
    17                             CHAPTER 33
    18                      VIOLATIONS AND PENALTIES
    19  Sec.
    20  3301.  Civil penalties for violations.
    21  3302.  Criminal penalties for violations.
    22  3303.  Nonliability for enforcement of lawful tariffs and rates.
    23  3304.  Unlawful issuance and assumption of securities.
    24  3305.  Misapplication of proceeds of securities.
    25  3306.  Execution of unlawful contracts.
    26  3307.  Refusal to obey subpoena and testify.
    27  3308.  Concealment of witnesses and records.
    28  3309.  Liability for damages occasioned by unlawful acts.
    29  3310.  Unauthorized operation by carriers and brokers.
    30  3311.  Bribery.
    19770H0489B3394                 - 142 -

     1  3312.  Evasion of motor carrier and broker regulations.
     2  3313.  Excessive price on resale.
     3  3314.  Limitation of actions and cumulation of remedies.
     4  3315.  Disposition of fines and penalties.
     5  § 3301.  Civil penalties for violations.
     6     (a)  General rule.--If any public utility, or any other
     7  person or corporation subject to this part, shall violate any of
     8  the provisions of this part, or shall do any matter or thing
     9  herein prohibited; or shall fail, omit, neglect, or refuse to
    10  perform any duty enjoined upon it by this part; or shall fail,
    11  omit, neglect or refuse to obey, observe, and comply with any
    12  regulation or final direction, requirement, determination or
    13  order made by the commission, or any order of the commission
    14  prescribing temporary rates in any rate proceeding, or to comply
    15  with any final judgment, order or decree made by any court, such
    16  public utility, person or corporation for such violation,
    17  omission, failure, neglect, or refusal, shall forfeit and pay to
    18  the Commonwealth a sum not exceeding $1,000, to be recovered by
    19  an action of assumpsit instituted in the name of the
    20  Commonwealth. In construing and enforcing the provisions of this
    21  section, the violation, omission, failure, neglect, or refusal
    22  of any officer, agent, or employee acting for, or employed by,
    23  any such public utility, person or corporation shall, in every
    24  case be deemed to be the violation, omission, failure, neglect,
    25  or refusal of such public utility, person or corporation.
    26     (b)  Continuing offenses.--Each and every day's continuance
    27  in the violation of any regulation or final direction,
    28  requirement, determination, or order of the commission, or of
    29  any order of the commission prescribing temporary rates in any
    30  rate proceeding, or of any final judgment, order or decree made
    19770H0489B3394                 - 143 -

     1  by any court, shall be a separate and distinct offense. If any
     2  interlocutory order of supersedeas, or a preliminary injunction
     3  be granted, no penalties shall be incurred or collected for or
     4  on account of any act, matter, or thing done in violation of
     5  such final direction, requirement, determination, order, or
     6  decree, so superseded or enjoined for the period of time such
     7  order of supersedeas or injunction is in force.
     8     (c)  Gas pipeline safety violations.--Any person or
     9  corporation, defined as a public utility in this part, who
    10  violates any provisions of this part governing the safety of
    11  pipeline or conduit facilities in the transportation of natural
    12  gas, flammable gas, or gas which is toxic or corrosive, or of
    13  any regulation or order issued thereunder, shall be subject to a
    14  civil penalty of not to exceed $1,000 for each violation for
    15  each day that the violation persists, except that the maximum
    16  civil penalty shall not exceed $200,000 for any related series
    17  of violations.
    18     (d)  Deduction from sums owing by Commonwealth.--The amount
    19  of the penalty, when finally determined, may be deducted from
    20  any sums owing by the Commonwealth to the person or corporation
    21  charged or may be recovered in a civil action.
    22  § 3302.  Criminal penalties for violations.
    23     Any person, including an officer, agent or employee of any
    24  public utility, or any corporation, who or which shall knowingly
    25  fail, omit, neglect or refuse to obey, observe, and comply with
    26  any regulation or final order, direction, or requirement of the
    27  commission, or any order of the commission prescribing temporary
    28  rates in any rate proceeding, or any final order or decree of
    29  any court, or who shall knowingly procure, aid, or abet any such
    30  violation, omission, failure, neglect, or refusal, shall be
    19770H0489B3394                 - 144 -

     1  guilty of a misdemeanor of the first degree.
     2  § 3303.  Nonliability for enforcement of lawful tariffs and
     3           rates.
     4     (a)  Public utilities.--No public utility, nor any officer,
     5  agent or employee thereof, shall be liable for any penalty or
     6  forfeiture, or be subject to any prosecution, on account of
     7  demanding, collecting, or receiving any rate for any service, or
     8  for enforcing any regulation, or practice when such rate,
     9  regulation, or practice is contained in a tariff properly filed
    10  with the commission, and posted or published as herein provided,
    11  and is applicable by the terms thereof at the time to such
    12  service although such rate, regulation, method or practice may
    13  be found by the commission to be unjust or unreasonable.
    14     (b)  Contract carrier by motor vehicle.--No contract carrier
    15  by motor vehicle, nor any officer, agent or employee thereof,
    16  shall be liable for any penalty or forfeiture, or be subject to
    17  any prosecution on account of demanding, collecting or receiving
    18  any minimum rate prescribed by the commission under the
    19  provisions of this part.
    20  § 3304.  Unlawful issuance and assumption of securities.
    21     Any individual who shall knowingly affix his name or
    22  attestation to any stock certificate or other evidence of
    23  equitable interest, or any bond, note, trust certificate, or
    24  other security issued or assumed by any public utility, or any
    25  director who shall knowingly assent to the issuance or
    26  assumption of any such stock certificate, or other evidence of
    27  equitable interest, or any bond, note or other evidence of
    28  indebtedness, or other security issued by any public utility, or
    29  any director who shall knowingly assent to the issue of any such
    30  certificate of stock, trust certificate, corporate bond, note,
    19770H0489B3394                 - 145 -

     1  or other evidence of indebtedness, or other security of any
     2  public utility, in violation of any of the provisions or
     3  requirements of this part, or any individual who shall knowingly
     4  make or assent to any false statement in any securities
     5  certificate required to be registered with the commission under
     6  the provisions of Chapter 19 (relating to securities and
     7  obligations) OR who shall by any false statements, oral or        <--
     8  written, knowingly make, procure, or seek to procure, of the
     9  commission the registration of any such securities certificate,
    10  shall be guilty of a misdemeanor of the first degree.
    11  § 3305.  Misapplication of proceeds of securities.
    12     Any individual who shall knowingly make or assent to any
    13  application or disposition of any stock certificate, or other
    14  evidence of equitable interest, or any bond, note, trust
    15  certificate, or other evidence of indebtedness, or other
    16  security, or the proceeds of the sale or pledge thereof, or any
    17  part thereof, in violation of any statement or contrary to any
    18  purpose in relation thereto set forth or contained in any
    19  securities certificate required to be registered with the
    20  commission under the provisions of Chapter 19 (relating to
    21  securities and obligations) OR who shall knowingly make or        <--
    22  assent to any false statement in any report or account to the
    23  commission as to the disposition or application of the proceeds,
    24  or any part thereof, of any sale or pledge of any stock
    25  certificate, or other evidence of equitable interest, or any
    26  bond, note, trust certificate, or other evidence of
    27  indebtedness, or other security, shall be guilty of a
    28  misdemeanor of the first degree.
    29  § 3306.  Execution of unlawful contracts.
    30     Any individual who shall knowingly affix his name or
    19770H0489B3394                 - 146 -

     1  attestation to any written contract or arrangement, or who shall
     2  enter into any written contract or arrangement, or any
     3  individual who shall knowingly assent to the entering into of
     4  any written or verbal contract, in violation of any of the
     5  provisions or requirements of this part, or any individual
     6  knowingly making or assenting to any false statement in any
     7  application for the approval of any contract or arrangement, the
     8  approval of which is required by this part, shall be guilty of a
     9  misdemeanor of the first degree.
    10  § 3307.  Refusal to obey subpoena and testify.
    11     If any individual who shall be subpoenaed to attend before
    12  the commission, or its representative, shall fail to obey the
    13  command of such subpoena, or if any individual in attendance
    14  before the commission, or its representative, shall refuse to be
    15  sworn or to be examined, or to answer any relevant question, or
    16  to produce any relevant data, book, record, paper, or document
    17  when ordered so to do by the commission, or its representative,
    18  such person shall be guilty of a summary offense.
    19  § 3308.  Concealment of witnesses and records.
    20     If any individual shall absent himself from the jurisdiction
    21  of this Commonwealth or conceal himself for the purpose of
    22  avoiding service of a subpoena issued by the commission, or its
    23  representative; or shall remove relevant data, books, records,
    24  papers, or other documents out of this Commonwealth for the
    25  purpose of preventing their examination by the commission; or
    26  shall destroy or conceal any such data, books, records, papers
    27  or other documents for such purpose, he shall be adjudged guilty
    28  of contempt; and any court of common pleas may impose a fine of
    29  not less than $100 for each day during the continuance of such
    30  refusal, neglect, concealment, or removal; and if such court
    19770H0489B3394                 - 147 -

     1  shall find that the neglect, refusal, or concealment, or the
     2  removal or destruction of data, books, records, papers, or other
     3  documents by such witness, has been occasioned by the advice or
     4  consent of any party to the proceedings before the commission,
     5  or in anywise aided or abetted by such party, then, in default
     6  of payment of such fine by the individual in contempt, the same
     7  shall be paid by such party and may be recovered from such party
     8  by an action in the name of the Commonwealth, in any court of
     9  common pleas, as other like fines and penalties are now by law
    10  recoverable. Imprisonment for contempt shall be by commitment to
    11  the county jail of the county in which such hearing is held.
    12  § 3309.  Liability for damages occasioned by unlawful acts.
    13     (a)  General rule.--If any person or corporation shall do or
    14  cause to be done any act, matter, or thing prohibited or
    15  declared to be unlawful by this part, or shall refuse, neglect,
    16  or omit to do any act, matter, or thing enjoined or required to
    17  be done by this part, such person or corporation shall be liable
    18  to the person or corporation injured thereby in the full amount
    19  of damages sustained in consequence thereof. The liability of
    20  public utilities, contract carriers by motor vehicles, and
    21  brokers for negligence, as heretofore established by statute or
    22  by common law, shall not be held or construed to be altered or
    23  repealed by any of the provisions of this part.
    24     (b)  Rights of Commonwealth unaffected.--The recovery in this
    25  section authorized shall in no manner affect a recovery by the
    26  Commonwealth of the penalty prescribed in section 3301 (relating
    27  to civil penalties for violations) for such violations of this
    28  part.
    29  § 3310.  Unauthorized operation by carriers and brokers.
    30     Any person or corporation operating as a motor carrier or as
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     1  a common carrier by airplane, and any operator or employee of
     2  such carrier, and any person or corporation operating as a
     3  broker, without a certificate of public convenience, permit or
     4  license, authorizing the service performed, as required by this
     5  part, shall be guilty of a summary offense, and any subsequent
     6  offense by such person or corporation shall constitute a
     7  misdemeanor of the third degree.
     8  § 3311.  Bribery.
     9     Any officer, attorney, agent, or employee of any public
    10  utility who offers to any commissioner, or to any person
    11  appointed or employed by the commission, any office, place,
    12  appointment, or position, or offers to give to any commissioner,
    13  or to any person employed in the service of the commission, any
    14  free pass or transportation, or any reduction in fares to which
    15  the public generally is not entitled, or any free carriage of
    16  property, or any present, gift, or gratuity, money, or valuable
    17  thing of any kind, shall be guilty of a misdemeanor of the third
    18  degree.
    19  § 3312.  Evasion of motor carrier and broker regulations.
    20     Any person, whether carrier, shipper, consignee, or broker,
    21  or any officer, employee, agent, or representative thereof, who
    22  shall knowingly offer, grant, or give, or solicit, accept, or
    23  receive any rebate, concession, or discrimination, in violation
    24  of any provision of this part with respect to motor carriers, or
    25  who, by means of false statements or representations or by use
    26  of false or fictitious bill, bill of lading, receipt, voucher,
    27  roll, account, claim, certificate, affidavit, deposition, lease,
    28  or bill of sale, or by any other means or device, shall
    29  knowingly and willfully, assist, suffer or permit any person or
    30  persons, natural or artificial, to obtain transportation of
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     1  property by motor carrier subject to this part, for less than
     2  the applicable rate, fare or charge, or who shall knowingly and
     3  willfully, by any such means, or otherwise seek to evade or
     4  defeat regulation in this part provided for motor carriers or
     5  brokers, shall be guilty of a summary offense for the first
     6  offense and a misdemeanor of the third degree for subsequent
     7  offenses.
     8  § 3313.  Excessive price on resale.
     9     Any person, corporation or other entity violating the
    10  provisions of section 1313 (relating to price upon resale of
    11  public utility services) shall be guilty of a summary offense
    12  and shall, upon conviction, be sentenced to pay a fine of $100
    13  multiplied by the number of residential bills exceeding the
    14  maximum prescribed in section 1313.
    15  § 3314.  Limitation of actions and cumulation of remedies.
    16     (a)  General rule.--No action for the recovery of any
    17  penalties or forfeitures incurred under the provisions of this
    18  part, and no prosecutions on account of any matter or thing
    19  mentioned in this part, shall be maintained unless brought
    20  within three years from the date at which the liability therefor
    21  arose, except as otherwise provided in this part.
    22     (b)  Remedies and penalties cumulative.--All suits, remedies,
    23  prosecutions, penalties, and forfeitures provided for, or
    24  accruing under, this part, shall be cumulative.
    25  § 3315.  Disposition of fines and penalties.
    26     All fines imposed, and all penalties recovered, under the
    27  provisions of this part, shall be paid to the commission, and by
    28  it paid into the State Treasury, through the Department of
    29  Revenue, to the credit of the General Fund.
    30                              PART II
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     1                    OTHER PROVISIONS (RESERVED)
     2     Section 2.  Repeals.--(a)  Absolute repeals.--The following
     3  acts and parts of acts are repealed:
     4     Section 7, act of May 5, 1832 (P.L.501, No.189), entitled "An
     5  act regulating lateral Rail-Roads."
     6     Sections 12 and 18, act of February 19, 1849 (P.L.79, No.76),
     7  entitled "An act regulating railroad companies."
     8     Act of April 15, 1851 (1852 P.L.720, No.401), entitled "An
     9  act to incorporate the Susquehanna and Erie railroad company."
    10     Act of December 16, 1863 (1864 P.L.1124, No.962), entitled
    11  "An act in relation to feeding stock, while awaiting
    12  transportation on railroads."
    13     Act of April 11, 1867 (P.L.69, No.49), entitled "An act to
    14  regulate the carriage of baggage by railroad companies, and to
    15  prescribe the duties and obligations of carriers and passengers
    16  in relation thereto."
    17     Sections 10 and 11, act of April 4, 1868 (P.L.62, No.29),
    18  entitled "An act to authorize the formation and regulation of
    19  railroad corporations."
    20     Section 2, act of June 19, 1871 (P.L.1360, No.1264), entitled
    21  "An act relating to legal proceedings by or against
    22  corporations."
    23     Act of May 15, 1874 (P.L.178, No.109), entitled "An act to
    24  enforce the sixth section of the seventeenth article of the
    25  constitution of this commonwealth, providing that no president,
    26  director, officer, agent or employee of any railroad or canal
    27  company shall be interested in the furnishing of material or
    28  supplies to such company, or in the business of transportation
    29  as a common carrier of freight or passengers over the works
    30  owned, leased, controlled or worked by such company."
    19770H0489B3394                 - 151 -

     1     Act of June 15, 1874 (P.L.289, No.176), entitled "An act to
     2  carry into effect section eight of article seventeen of the
     3  constitution, in relation to granting free passes or passes at a
     4  discount by railroad or other transportation companies."
     5     Act of May 5, 1876 (P.L.116, No.87), entitled "An act
     6  regulating the passenger fare and freight rates on railroads
     7  operated by steam power, not exceeding fifteen miles in length."
     8     Act of May 19, 1879 (P.L.71, No.80), entitled "An act to
     9  repeal all local or special laws regulating or fixing the rates
    10  of fare to be charged by city passenger railway companies, in
    11  cities of the third class."
    12     Act of June 7, 1901 (P.L.531, No.253), entitled "An act
    13  relating to railroad crossings of highways, and for the
    14  regulation, alteration and abolition of grade crossings, except
    15  in cities of the first and second classes."
    16     Act of May 4, 1905 (P.L.380, No.232), entitled "An act to
    17  empower railroad companies to change the location and grade, or
    18  either, of bridges and their approaches belonging to bridge
    19  corporations, to accommodate the location and construction of
    20  their railroad, or the changing, relocating, widening,
    21  straightening, or improvement thereof."
    22     Act of April 5, 1907 (P.L.59, No.52), entitled "An act to
    23  regulate the maximum rate and minimum fare to be charged for
    24  transportation of passengers by railroad companies, and
    25  prescribing the penalty for violation thereof."
    26     Act of May 31, 1907 (P.L.352, No.252), entitled "An act to
    27  enforce the provisions of section five, article seventeen, of
    28  the Constitution of Pennsylvania, relating to the powers of
    29  incorporated common carriers and the privileges of mining and
    30  manufacturing companies; making the violation thereof a
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     1  misdemeanor, and providing a punishment for the same."
     2     Act of May 31, 1907 (P.L.352, No.253), entitled "An act to
     3  carry into effect the provisions of section seven, article
     4  seventeen, of the Constitution of Pennsylvania, relating to
     5  discriminations and preferences in charges and facilities; and
     6  making the violation thereof a misdemeanor, and providing a
     7  penalty for the same."
     8     Act of May 31, 1907 (P.L.353, No.254), entitled "An act to
     9  enforce the provisions of section four, article seventeen, of
    10  the Constitution of Pennsylvania, pertaining to the
    11  consolidation of parallel or competing lines of railroads,
    12  canals, or other companies, and restricting the officers of such
    13  companies; empowering juries to decide whether companies are
    14  parallel or competing lines; and making the violation thereof a
    15  misdemeanor, and providing a punishment for the same."
    16     Act of May 31, 1907 (P.L.354, No.255), entitled "An act to
    17  carry into effect the provisions of section three, article
    18  seventeen, of the Constitution of Pennsylvania, relating to the
    19  transportation of persons and property; and making the violation
    20  thereof a misdemeanor, and providing a penalty for the same."
    21     Act of June 1, 1907 (P.L.359, No.259), entitled "An act
    22  forbidding those officers, employes, or agents of any railroad
    23  company operating within this Commonwealth, who have charge,
    24  directly or indirectly, of the distribution of cars to shippers
    25  thereon, to own or have any interest, directly or indirectly, in
    26  any operated coal property, or in the stock of any mining or
    27  manufacturing company, along the line of such railroad; making
    28  the violation hereof a misdemeanor, and providing a punishment
    29  for the same.
    30     Act of June 7, 1907 (P.L.464, No.313), entitled "An act to
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     1  prevent discrimination by, and to regulate rates and charges for
     2  carrying freight and passengers by, narrow-gage railroads within
     3  the Commonwealth; and providing a remedy for the violation
     4  thereof."
     5     Act of June 10, 1911 (P.L.867, No.339), entitled "An act
     6  fixing the width of public highways, where such highways are
     7  crossed above or below grade by the tracks of any railroad,
     8  except in cities and boroughs."
     9     Act of July 10, 1919 (P.L.901, No.357), entitled "An act
    10  supplementary to the Public Service Company Law, approved the
    11  twenty-sixth day of July, Anno Domini one thousand nine hundred
    12  and thirteen, giving to the Public Service Commission the power,
    13  in the elimination of grade crossings, to direct the
    14  construction of bridges or viaducts over, above, and across
    15  railroads and railways, and, where necessary, across rivers and
    16  streams; and, in order to effect said elimination, to change the
    17  location to a new place or to another street or highway; and,
    18  where the said bridge or viaduct is located by the commission
    19  and directed to be constructed in the line of any street or
    20  highway which crosses a navigable river, or a stream which has
    21  been declared a public highway by act of Assembly, at a point
    22  where the Commonwealth has been authorized to construct a public
    23  bridge to replace a county bridge destroyed by flood or other
    24  casualty, to provide for the payment by the Commonwealth of part
    25  of the cost of said improvement from appropriations made to the
    26  Board of Commissioners of Public Grounds and Buildings, the
    27  making of the contract, and the expenditure of said
    28  appropriation."
    29     Act of April 7, 1927 (P.L.134, No.105), entitled "An act
    30  relating to such highways as are opened by the order of the
    19770H0489B3394                 - 154 -

     1  Public Service Commission of the Commonwealth of Pennsylvania in
     2  proceedings relating to elimination of grade crossings; and
     3  relating to the establishment of such roads and connecting roads
     4  as State highways; and providing for their construction and
     5  maintenance at the expense of the Commonwealth; and providing in
     6  certain event for the opening and maintaining of said roads by
     7  city, borough, incorporated town, and township authorities."
     8     Section 303, act of April 9, 1929 (P.L.177, No.175), known as
     9  "The Administrative Code of 1929."
    10     Act of June 10, 1935 (P.L.291, No.126), entitled "An act
    11  empowering private corporations hereafter formed and
    12  municipalities to establish, operate, and maintain foreign-trade
    13  zones in or adjacent to ports of entry of the United States in
    14  accordance with the act of Congress of the United States; and
    15  prescribing the powers and duties of such corporations and
    16  municipalities in connection therewith."
    17     Act of March 31, 1937 (P.L.160, No.43), entitled "An act
    18  creating a commission to be known as the Pennsylvania Public
    19  Utility Commission; defining in part the powers and duties of
    20  such commission; abolishing The Public Service Commission of the
    21  Commonwealth of Pennsylvania, terminating the terms of the
    22  members thereof, and transferring to the Pennsylvania Public
    23  Utility Commission the records, employes, property, and
    24  equipment of The Public Service Commission of the Commonwealth
    25  of Pennsylvania; authorizing the Pennsylvania Public Utility
    26  Commission to appear in and complete all pending proceedings,
    27  legal or otherwise, instituted before, by or against The Public
    28  Service Commission of the Commonwealth of Pennsylvania;
    29  providing that all certificates of public convenience,
    30  contracts, orders, and rules and regulations of the latter
    19770H0489B3394                 - 155 -

     1  commission shall remain effective until repealed, changed or
     2  modified by the Pennsylvania Public Utility Commission, and
     3  transferring and appropriating to the Pennsylvania Public
     4  Utility Commission any unexpended balance of any existing
     5  appropriation to The Public Service Commission of the
     6  Commonwealth of Pennsylvania."
     7     Act of May 28, 1937 (P.L.1053, No.286), known as the "Public
     8  Utility Law."
     9     Act of December 1, 1938 (Sp.Sess., P.L.111, No.45), entitled
    10  "An act making illegal the furnishing of certain telephone and
    11  telegraph wires and services by certain public utilities for use
    12  in the dissemination of information in furtherance of gambling;
    13  making it unlawful for any public utility to furnish private
    14  wires, except by written contract; conferring and imposing upon
    15  the Pennsylvania Public Utility Commission the power and duty to
    16  disapprove all contracts for private wires used for, or intended
    17  to be used for, the transmission of information or advices in
    18  furtherance of gambling; making illegal the furnishing of
    19  certain wires by certain public utilities after the disapproval
    20  of the contract therefor by the Pennsylvania Public Utility
    21  Commission; making illegal the use of certain wires for purposes
    22  other than those specified in the written contract therefor;
    23  imposing penalties; making the dissemination of information
    24  pertaining to horse racing over certain wires prima facie
    25  evidence that the same is in furtherance of gambling;
    26  prescribing the burden of proof in proceedings hereunder; and
    27  providing for appeal."
    28     Section 3(d)(11), act of August 5, 1941 (P.L.752, No.286),
    29  known as the "Civil Service Act."
    30     Act of June 5, 1943 (P.L.901, No.373), entitled "An act to
    19770H0489B3394                 - 156 -

     1  regulate persons, partnerships and corporations engaged in the
     2  business of renting motor vehicles; authorizing the Public
     3  Utility Commission to administer and enforce the provisions of
     4  this act; and imposing penalties."
     5     Act of January 5, 1972 (1971 P.L.660, No.174), entitled "An
     6  act requiring certain locomotives operating over thirty miles
     7  per hour to have certain equipment thereon by certain dates;
     8  requiring the maintenance of certain records thereof by
     9  railroads operating same, the notification of the Public Utility
    10  Commission thereof, and placing certain duties on that
    11  commission."
    12     Act of March 28, 1972 (P.L.158, No.60), entitled "An act
    13  limiting the rates at which certain entities other than public
    14  utilities may resell public utility service to residential
    15  consumers; and providing penalties."
    16     Act of July 25, 1975 (P.L.96, No.49), entitled "An act
    17  requiring speed recorders on locomotives."
    18     Act of December 3, 1975 (P.L.481, No.142), entitled "An act
    19  requiring that flag protection be provided against following
    20  trains occupying the same track."
    21     (b)  Repeal as inconsistent.--Section 709, act of April 9,
    22  1929 (P.L.177, No.175), known as "The Administrative Code of
    23  1929," is repealed insofar as it is inconsistent with this act.
    24     Section 3.  Effective date.--This act shall take effect in 60
    25  days except that the provisions of 66 Pa.C.S. §§ 1308 and 1310,
    26  insofar as they are different from the law repealed hereby,
    27  shall take effect October 7, 1977.


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