1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, in rates and distribution systems,
3further providing for standby charge prohibited.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Section 1326 of Title 66 of the Pennsylvania
7Consolidated Statutes is amended to read:

8§ 1326. Standby charge prohibited.

9(a) Prohibition.--A public utility that furnishes water to
10or for the public shall not impose a standby charge on [owners]:

11(1) Owners of residential structures equipped with
12automatic fire protection systems.

13(2) Volunteer fire companies, nonprofit rescue squads
14and ambulance services, for costs associated with automatic
15fire protection systems, that are owners or occupants of
16structures equipped with automatic fire protection systems
17who are ratepayers of record.

1(a.1) Cost recovery.--

2(1) In determining the rates to be charged for automatic
3fire protection systems by a public utility that furnishes
4water to or for the public, the commission shall, as part of
5a utility's general rate proceeding, provide for the recovery
6of the costs of automatic fire protection systems in such a
7manner that the customers specified in subsection (a)(2) are
8not charged for more than <-25% 50% of the cost of service for
9those automatic fire protection systems, as such cost of
10service is reasonably determined by the commission.

11(2) The commission shall, as part of a utility's general
12rate proceeding, provide for the recovery of the remaining
13cost of service for those automatic fire protection systems
14not recovered under paragraph (1) from the customers
15specified in subsection (a)(2) by assessing all customers of
16the public utility the remaining cost of service to the fire
17protection systems. The remaining cost of service for those
18fire protection systems shall be included in the public
19utility's fixed or service charge or minimum bill.

20(a.2) Effect on current rates.--Notwithstanding the
21provisions of subsection (a.1), charges to volunteer fire
22companies, nonprofit rescue squads and nonprofit ambulance
23services that are in effect on the effective date of this
24subsection shall continue to be charged until conclusion of the
25public utility's next general rate proceeding.

26(b) [Definition.--As used in this section, the term "standby 
27charge" means an amount, in addition to the regular rate, 
28assessed against the owner of a residential structure for the 
29reason that the residential structure is equipped with an 
30automatic fire protection system.] Definitions.--The following
 

1words and phrases as used in this section shall have the 
2meanings given to them in this subsection unless the context 
3clearly indicates otherwise:

4"Cost of service." The actual water usage and capital 
5investment made by a public utility specifically for the purpose 
6of rendering fire protection service assessed against the owner 
7of a residential or commercial structure for the reason that the
8structure is equipped with an automatic fire protection system. 

9"Standby charge." An amount, in addition to the cost of 
10service, allocated under subsection (a.1).

11Section 2. This act shall take effect in 60 days.