PRINTER'S NO. 3067
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1946
Session of
2015
INTRODUCED BY GODSHALL, KOTIK, BAKER, BARRAR, KILLION, STEPHENS,
ORTITAY, WHEELAND, A. HARRIS, GROVE, MAJOR AND ZIMMERMAN,
APRIL 4, 2016
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 4, 2016
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
further providing for scope of subchapter, for definitions,
for long-term infrastructure improvement plan, for
distribution system improvement charge, for asset
optimization plans and for projects.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1350 of Title 66 of the Pennsylvania
Consolidated Statutes is amended to read:
§ 1350. Scope of subchapter.
This subchapter shall provide an additional mechanism for a
distribution system to recover costs related to the
construction, repair, improvement and replacement of eligible
property.
Section 2. The definitions of "distribution system
improvement charge" and "eligible property" introductory
paragraph in section 1351 of Title 66 are amended to read:
§ 1351. Definitions.
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The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Distribution system improvement charge." A charge imposed
by a utility to recover the reasonable and prudent costs
incurred to repair, improve or replace eligible property that is
part of the utility's distribution system or to construct new
facilities to expand natural gas distribution service to
unserved or underserved portions of this Commonwealth.
"Eligible property." Property that is part of a distribution
system and is new construction that will expand natural gas
distribution service to unserved or underserved portions of this
Commonwealth or is eligible for repair, improvement and
replacement of infrastructure under this subchapter. Included
property shall be as follows:
* * *
Section 3. Sections 1352(a), 1353(a), 1356(1) and 1359 of
Title 66 are amended to read:
§ 1352. Long-term infrastructure improvement plan.
(a) Submission.--In order to be eligible to recover costs
under section 1353 (relating to distribution system improvement
charge), a utility must submit a long-term infrastructure
construction and improvement plan. The plan shall include the
following:
(1) Identification of the types and age of eligible
property owned or operated by the utility for which the
utility would seek recovery under this subchapter.
(2) An initial schedule for the planned construction,
repair and replacement of eligible property.
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(3) A general description of the location of the
eligible property.
(4) A reasonable estimate of the quantity of eligible
property to be constructed or improved.
(5) Projected annual expenditures to implement the plan
and measures taken to ensure that the plan is cost effective.
(6) The manner in which the replacement of aging
infrastructure will be accelerated and how the repair,
improvement or replacement will ensure and maintain adequate,
efficient, safe, reliable and reasonable service.
(6.1) The manner in which the construction of new
infrastructure will expand natural gas distribution service
to unserved and underserved portions of this Commonwealth.
(7) If the plan is not adequate and sufficient to ensure
and maintain adequate, efficient, safe, reliable and
reasonable service, the commission shall order a new or
revised plan.
* * *
§ 1353. Distribution system improvement charge.
(a) Authority.--Except as provided under this subchapter,
after January 1, 2013, a utility may petition the commission, or
the commission, after notice and hearing, may approve the
establishment of a distribution system improvement charge to
provide for the timely recovery of the reasonable and prudent
costs incurred to construct, repair, improve or replace eligible
property in order to ensure and maintain adequate, efficient,
safe, reliable and reasonable service.
* * *
§ 1356. Asset optimization plans.
A utility with an approved distribution system charge and
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long-term infrastructure plan shall file annual asset
optimization plans. The plan shall include the following:
(1) A description that specifies all eligible property
constructed, repaired, improved [and] or replaced in the
immediately preceding 12-month period pursuant to the
utility's long-term infrastructure improvement plan and prior
year's asset optimization plan.
* * *
§ 1359. Projects.
(a) Standards.--The commission shall establish standards to
ensure that work on utility systems to construct, repair,
improve or replace eligible property is performed by qualified
employees of either the utility or an independent contractor in
a manner that protects system reliability and the safety of the
public.
(b) Inspection.--Projects for which work to construct,
repair, improve or replace eligible property is performed by
independent contractors shall be subject to reliability and
safety standards and to inspection by utility employees.
(c) Cost.--Work on projects to construct, repair, improve or
replace eligible property that is not performed by qualified
employees or contractors or inspected by the utility's qualified
personnel shall not be eligible for recovery of a distribution
system improvement charge.
Section 4. This act shall take effect in 60 days.
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