PRIOR PRINTER'S NOS. 823, 1008
PRINTER'S NO. 1146
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 CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, JUNE 3, 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.--Within nine months after the effective date
16of this section, or within two years after a franchise territory
17is awarded, each natural gas distribution utility shall submit a
18plan to the commission. The plan shall be updated triennially
19unless sooner requested by the commission. The plan shall
20include 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 expansions and
7the numbers of customers affected for each potential
8project demonstrating a reasonable increase in the
9service area of customers per year.
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 and order the natural
26gas distribution utility to submit a revised plan. Any changes
27to the plan may require additional commission review.
<-3(c) (d) Periodic review.--The commission shall promulgate
4regulations for the periodic review of distribution system
5extension and expansion plans submitted under subsection (a),
6including standards to ensure expansion and accessibility to
7residential, commercial and industrial users. The regulations
8may authorize a natural gas distribution utility to revise,
9update or submit a new plan as appropriate.
14Section 4. Customer contributions.
26(3) A reasonable period of time based on the customer
27contribution, which shall not be less than ten years or a
28lesser period of time by mutual agreement between the
29prospective customer and the natural gas distribution
30utility, in which customers will reimburse the natural gas
7(5) <-Refund Reasonable refund provisions to the original
8customers as other customers receive service from the
9extension or expansion of service to the original customers.
<-10The refund period shall begin upon date of service and shall
11be for a period of not less than five years unless otherwise
12approved by the commission.
13(6) Support for the economic test used to determine the
14customer contribution for line extensions and comparisons
15with other economic tests, such as a net revenue screen or
16net present value method.
25Section 5. Notification.
26The natural gas distribution utility shall provide
27notification to all its customers of its distribution system
28extension and expansion plan and customer contribution criteria
29at least once a year. The initial notification shall be included
30in the monthly bill of the customer. After initial notification,
4Section 6. Bona fide request program.
5(a) Provision.--A natural gas distribution utility shall
6provide, as part of the plan, a bona fide request program in
7areas where it does not provide service or for expansion of
8service and the manner in which <-a customer customers will be
9charged for expansion. The plan shall provide for <-expedited
<-10priority of extension or expansion projects if there is any of
12(1) A large aggregation of residential, commercial or
13industrial entities who ask to obtain or expand service.
14Expedited consideration shall be based on the number of
15potential customers, the density of the area seeking service,
16the potential usage and the cost of extending or expanding
21(b) Description.--The natural gas distribution utility shall
22provide the commission with a written description of the
23program, a sample request for <-expedited prioritization of
24extension or expansion projects, explanation of how the outreach
25program could expand its customer class, how geographic issues
26will be evaluated and the form of any agreement prospective
27customers will be required to execute in connection with
28receiving the gas service.
1utilities with their obligations under this section.
2Section 7. Commission.
3(a) Approval.--The commission by regulation or order shall
4prescribe the specific procedures to be followed to approve a
5distribution system extension and expansion plan and customer
6contribution criteria, taking into consideration the saturation
7and other characteristics of each natural gas distribution
9(b) Eligible costs.--The commission shall establish
10standards to ensure that work on extension and expansion of
11service is performed by qualified employees of either the
12natural gas distribution utility or an independent contractor in
13a manner that protects system reliability and safety of the
15(c) Order.--If the commission determines that the
16distribution system extension and expansion plan is inadequate
17to provide reasonable access to natural gas services by
18residential, commercial or industrial customers, the commission
19shall revise the natural gas distribution utility's plan and
20customer contribution criteria to ensure reasonable access.
21Section 8. Audit.
25(1) Audit at intervals as determined by the commission.
1excess collections shall be calculated at the residential
2mortgage lending rate specified by the Secretary of Banking
3under the act of January 30, 1974 (P.L.13, No.6), referred to as
4the Loan Interest and Protection Law, and shall be refunded in
5the same manner as an excess collection to the customer.
<-6Section 9. Applicability.
10Section 20. Effective date.
11This act shall take effect in 30 days.