PRIOR PRINTER'S NOS. 2190, 2634, 2930,        PRINTER'S NO. 4059
        3014, 3125

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1787 Session of 1979


                     Report of the Committee of Conference

        To the Members of the House of Representatives and Senate:

           We, the undersigned, Committee of Conference on the part of
        the House of Representatives and Senate for the purpose of
        considering House Bill No. 1787, entitled:
        "An act amending Title 66 (Public Utilities) of the Pennsylvania
        Consolidated Statutes, FURTHER PROVIDING FOR THE ASSESSMENT OF
        REGULATORY EXPENSES UPON PUBLIC UTILITIES AND, providing for the
        use of certain Federal funds AND PROVIDING FOR A BUDGET FOR THE
        PUBLIC UTILITY COMMISSION FOR THE FISCAL YEAR COMMENCING JULY 1,
        1980."



        respectfully submit the following bill as our report:

                                           MATTHEW J. RYAN

                                           JEFFREY E. PICCOLA

                                           NORMAN S. BERSON

                (Committee on the part of the House of Representatives.)

                                           ROBERT J. MELLOW

                                           JOSEPH F. SMITH

                                           JOHN STAUFFER

                                  (Committee on the part of the Senate.)


                                     AN ACT

     1  Amending Title 66 (Public Utilities) of the Pennsylvania
     2     Consolidated Statutes, reenacting and amending certain
     3     provisions relating to the legal counsel and legal
     4     representation of the commission inadvertently repealed by
     5     the Commonwealth Attorneys Act and making related changes,
     6     further providing for the assessment of regulatory expenses
     7     upon public utilities, further providing for the disposition,
     8     appropriation and disbursement of assessments and fees and
     9     providing for the use of certain Federal funds.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Sections 306 and 308(b) of Title 66, act of
    13  November 25, 1970 (P.L.707, No.230), known as the Pennsylvania
    14  Consolidated Statutes, repealed in part October 15, 1980
    15  (No.164), are reenacted and amended to read:
    16  § 306.  Counsel.
    17     The office of chief counsel to the Pennsylvania Public
    18  Utility Commission is hereby created. The chief counsel shall be
    19  appointed by the commission and hold office at its pleasure. The
    20  commission may also from time to time appoint such assistant
    21  counsel to the commission as may be required for the proper
    22  conduct of its work. Assistant counsel may be removed by the
    23  commission only for good cause. The compensation of the counsel
    24  shall be fixed by the commission. In accordance with the
    25  multifunction legal staff established in this part, such counsel
    26  shall attend the hearings before the commission or a
    27  commissioner, or a special agent or administrative law judge,
    28  and conduct the examination of witnesses and shall represent the
    29  commission upon appeals and other hearings in the courts of
    30  common pleas and in the Commonwealth and Supreme Courts, or
    31  other courts of this Commonwealth, or in any Federal court or
    32  agency and in actions instituted to recover penalties and to


     1  enforce regulations and orders of the commission. Such counsel
     2  shall [also assist the Attorney General in conducting] conduct
     3  all mandamus, injunction and quo warranto proceedings at law or
     4  in equity, instituted [by him] for the enforcement of the
     5  regulations and orders of the commission, and shall perform such
     6  other professional duties as may be required [of them] by the
     7  commission.
     8  § 308.  Bureaus.
     9     * * *
    10     (b)  Law Bureau.--The Law Bureau shall be a multifunction
    11  legal staff, consisting of a prosecutory function and an
    12  advisory function. Prosecutory counsel shall be responsible for
    13  and shall assist in the development of, challenge of, and
    14  representation on the record of all matters in the public's
    15  interest. Advisory counsel shall advise the commission on any
    16  and all matters. The counsel shall appear on behalf of the
    17  commission in all courts of record and before district
    18  magistrates. No counsel shall in the same case or a factually
    19  related case perform duties in the prosecutory and advisory
    20  functions, if such performance would represent a conflict of
    21  interest.
    22     * * *
    23     Section 2.  Section 503 of Title 66 is to read:
    24  § 503.  Enforcement proceedings by [Attorney General] Chief
    25          Counsel.
    26     The [Attorney General] Chief Counsel, in addition to the
    27  exercise of the powers and duties now conferred upon him by law,
    28  shall also, upon request of the commission[, or upon his own
    29  motion,] proceed in the name of the Commonwealth, by mandamus,
    30  injunction, or quo warranto, or other appropriate remedy at law
    19790H1787B4059                  - 2 -

     1  or, in equity, to restrain violations of the provisions of this
     2  part, or of the regulations or orders of the commission, or the
     3  judgments, orders, or decrees of any court, or to enforce
     4  obedience thereto.
     5     Section 3.  Sections 510(a) and 511(b) of Title 66 are
     6  amended to read:
     7  § 510.  Assessment for regulatory expenses upon public
     8          utilities.
     9     (a)  Determination of assessment.--Before [March 1] November
    10  1 of each year, the commission shall estimate its total
    11  expenditures in the administration of this part for the fiscal
    12  year beginning July of [that] the following year, which estimate
    13  shall not exceed three-tenths of 1% of the total gross
    14  intrastate operating revenues of the public utilities under its
    15  jurisdiction for the preceding calendar year. Such estimate
    16  shall be submitted to the Governor[, and to the appropriation
    17  committees of the House and Senate through their respective
    18  chairmen, for their respective approvals of such estimate in the
    19  amount submitted or such lesser amount as each of them may
    20  determine. Unless the Governor, or either committee through its
    21  chairman, shall notify the commission in writing of his or its
    22  action within 30 days after such submission, the estimate as
    23  submitted shall be deemed approved by him or by the committee.
    24  The least of the amounts so approved by the three approving
    25  authorities shall be the final estimate; and approval of such
    26  least amount shall constitute compliance with section 604] in
    27  accordance with section 610 of the act of April 9, 1929
    28  (P.L.177, No.175), known as "The Administrative Code of 1929."
    29  The commission or its designated representatives shall be
    30  afforded an opportunity to appear before the Governor and the
    19790H1787B4059                  - 3 -

     1  Senate and House Appropriations Committees regarding their
     2  estimates. The commission shall subtract from the final
     3  estimate:
     4         (1)  [the] The estimated fees to be collected pursuant to
     5     section 317 (relating to fees for services rendered by
     6     commission)[; and] during such fiscal year.
     7         (2)  [the] The estimated balance of the appropriation,
     8     specified in section 511 (relating to disposition,
     9     appropriation and disbursement of assessments and fees), to
    10     be carried over into such fiscal year from the preceding one.
    11  The remainder so determined, herein called the total assessment,
    12  shall be allocated to, and paid by, such public utilities in the
    13  manner prescribed [in this part]. If the General Assembly fails
    14  to approve the commission's budget for the purposes of this
    15  part, by March 15, the commission shall assess public utilities
    16  on the basis of the last approved operating budget. At such time
    17  as the General Assembly approves the proposed budget the
    18  commission shall have the authority to make an adjustment in the
    19  assessments to reflect the approved budget.
    20     * * *
    21  § 511.  Disposition, appropriation and disbursement of
    22          assessments and fees.
    23     * * *
    24     (b)  Use and appropriation of funds.--All such assessments
    25  and fees, having been advanced by public utilities for the
    26  purpose of defraying the cost of administering this part, shall
    27  be held in trust solely for that purpose, and shall be earmarked
    28  for the use of, and [are hereby] annually appropriated to, the
    29  commission for disbursement solely for that purpose.
    30     * * *
    19790H1787B4059                  - 4 -

     1     Section 4.  Title 66 is amended by adding a section to read:
     2  § 511.1.  Use of Federal funds under energy program.
     3     (a)  General rule.--The commission is authorized to apply for
     4  and, subject to appropriation by the General Assembly, use
     5  Federal funds pursuant to the National Energy Act which is
     6  composed of:
     7         (1)  The "National Energy Conservation Policy Act,"
     8     Public Law 95-619.
     9         (2)  The "Powerplant and Industrial Fuel Use Act of
    10     1978," Public Law 95-620.
    11         (3)  The "Public Utility Regulatory Policies Act of
    12     1978," Public Law 95-617.
    13         (4)  The "Natural Gas Policy Act of 1978," Public Law 95-
    14     621.
    15         (5)  The "Energy Tax Act of 1978," Public Law 95-618.
    16         (6)  The "Energy Conservation and Production Act of
    17     1976," Public Law 94-385.
    18         (7)  Any future Federal legislation or amendments to the
    19     statutes listed in this subsection providing special funds
    20     for:
    21             (i)  Ratemaking research and development.
    22             (ii)  Energy conservation research and development.
    23             (iii)  Motor carrier and rail transportation safety
    24         programs.
    25             (iv)  Gas safety programs.
    26     (b)  Funds not subject to lapse.--Funds received by the
    27  commission pursuant to subsection (a) shall not be subject to
    28  lapsing at the end of any fiscal period.
    29     (c)  Reimbursement to utilities prohibited.--Funds received
    30  by the commission pursuant to subsection (a) shall not be
    19790H1787B4059                  - 5 -

     1  reimbursed to any public utility.
     2     Section 5.  This act shall take effect immediately, except
     3  that the amendments to 66 Pa.C.S. §§ 306, 308 and 503 shall take
     4  effect January 20, 1981.


















    I7L52JLW/19790H1787B4059         - 6 -