PRIOR PRINTER'S NO. 823
PRINTER'S NO. 1008
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY YAW, PILEGGI, TOMLINSON, VULAKOVICH, VOGEL, WARD, ERICKSON, MENSCH, GREENLEAF, GORDNER, WHITE, ROBBINS, VANCE, WOZNIAK, RAFFERTY, COSTA, BAKER, WAUGH, BREWSTER AND BROWNE, APRIL 3, 2013
SENATOR YAW, ENVIRONMENTAL RESOURCES AND ENERGY, AS AMENDED, MAY 1, 2013
5Section 1. Short title.
8Section 2. Definitions.
12"Commission." The Pennsylvania Public Utility Commission.
3"Extension project." New construction of a service line,
4main extension or pipeline to provide natural gas service to one
5or more residential, commercial or industrial entities not
6receiving natural gas service and for which a certificate of
7public convenience is required under 66 Pa.C.S. § 1102 (relating
8to enumeration of acts requiring certificate) which is not
9within the current certificate of public convenience territory
10issued by the commission to the natural gas distribution
14Section 3. Distribution system extension and expansion plan.
15(a) Submission.--<-By January 1, 2014 Within nine months after
16the effective date of this section, or within two years after a
17franchise territory is awarded, each natural gas distribution
18utility shall submit a plan to the commission. The plan shall be
19updated <-biennially triennially unless sooner requested by the
20commission. The plan shall include the following:
30(4) The plan shall contain the following information:
4(ii) A three-year projection for expansion projects,
<-5along with accompanying data, that is based upon the
6length and cost of the required extensions and the
7numbers of customers affected for each potential project
8demonstrating a reasonable increase in the service area
9of customers per year.
16(v) A form <-of any agreement a prospective customer
17will be required to execute in connection with receiving
18gas service. <-that will be used to enter into an agreement
19with a prospective customer in order to obtain access to
20an expansion and extension project.
21(b) Commission review.--The commission shall review the plan
22submitted under subsection (a) for adequacy and completeness and
23may seek additional information as necessary. If the commission
24believes the plan does not meet the requirements of this act,
25the commission shall reject the plan or order the natural gas
26distribution utility to submit a revised plan. Any changes to
27the plan may require additional commission review.
1including standards to ensure expansion and accessibility to
2residential, commercial and industrial users. The regulations
3may authorize a natural gas distribution utility to revise,
4update or submit a new plan as appropriate.
9Section 4. Customer contributions.
21(3) <-The period of time, which shall not be less than ten
22years <-A reasonable period of time based on the customer
23contribution, which shall not be less than ten years or a
24lesser period of time by mutual agreement between the
25prospective customer and the natural gas distribution
26utility, in which customers will reimburse the natural gas
27distribution utility for the extension or expansion of
28service to the prospective customer.
<-5(6) Support for the economic test used to determine the
6customer contribution for line extensions and comparisons
7with other economic tests, such as a net revenue screen or
8net present value method.
17Section 5. Notification.
18The natural gas distribution utility shall provide
19notification to all its customers of its distribution system
20extension and expansion plan and customer contribution criteria
21at least once a year. The initial notification shall be included
22in the monthly bill of the customer. After initial notification,
23notice of the distribution system extension and expansion plan
24and customer contribution criteria shall be posted on the
25natural gas distribution utility's Internet website.
26Section 6. Bona fide request program.
27(a) Provision.--A natural gas distribution utility shall
28provide, as part of the plan, a bona fide request program in
29areas where it does not provide service or for expansion of
30service <-and the manner in which a customer will be charged for
3(1) A large aggregation of residential, commercial or
4industrial entities who ask to obtain or expand service.
5Expedited consideration shall be based on the number of
6potential customers, the density of the area seeking service,
7the potential usage and the cost of extending or expanding
12(b) Description.--The natural gas distribution utility shall
13provide the commission with a written description of the
14program, a sample request for expedited extension or expansion
15projects, explanation of <-the outreach program by the utility to
16expand its customer class <-how the outreach program could expand
17its customer class, how geographic issues will be evaluated and
18the form of any agreement prospective customers will be required
19to execute in connection with receiving the gas service.
23Section 7. Commission.
24(a) Approval.--The commission by regulation or order shall
25prescribe the specific procedures to be followed to approve a
26distribution system extension and expansion plan and customer
27contribution criteria<-, taking into consideration the saturation
28and other characteristics of each natural gas distribution
30(b) Eligible costs.--The commission shall establish
1standards to ensure that work on extension and expansion of
2service is performed by qualified employees of either the
3natural gas distribution utility or an independent contractor in
4a manner that protects system reliability and safety of the
6(c) Order.--If the commission determines that the
7distribution system extension and expansion plan is inadequate
8to provide reasonable access to natural gas services by
9residential, commercial or industrial customers, the commission
10shall revise the natural gas distribution utility's plan and
11customer contribution criteria to ensure reasonable access.
12Section 8. Audit.
16(1) Audit at intervals as determined by the commission.
19(b) Interest on excess charges.--If revenue received from
20charges under this act exceeds actual costs, the excess received
21shall be refunded with interest to the customer. Interest on
22excess collections shall be calculated at the residential
23mortgage lending rate specified by the Secretary of Banking
24under the act of January 30, 1974 (P.L.13, No.6), referred to as
25the Loan Interest and Protection Law, and shall be refunded in
26the same manner as an excess collection to the customer.
27Section 20. Effective date.
28This act shall take effect in 30 days.