See other bills
under the
same topic
PRINTER'S NO. 2450
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1799
Session of
2017
INTRODUCED BY BULLOCK, DONATUCCI, BOYLE, THOMAS, SOLOMON,
DRISCOLL, KINSEY, RABB AND ROZZI, SEPTEMBER 21, 2017
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, SEPTEMBER 21, 2017
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, further providing for duties of electric
distribution companies and for additional alternative energy
sources.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2807(e)(3.5) and (5) of Title 66 of the
Pennsylvania Consolidated Statutes are amended and the
subsection is amended by adding a paragraph to read:
§ 2807. Duties of electric distribution companies.
* * *
(e) Obligation to serve.--A default service provider's
obligation to provide electric generation supply service
following the expiration of a generation rate cap specified
under section 2804(4) (relating to standards for restructuring
of electric industry) or a restructuring plan under section
2806(f) is revised as follows:
* * *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
(3.5) Except as set forth in paragraph (5)(ii) and
(iii), the provisions of this section shall apply to any type
of energy purchased by a default service provider to provide
electric generation supply service, including energy or
alternative energy portfolio standards credits required to be
purchased under the act of November 30, 2004 (P.L.1672,
No.213), known as the Alternative Energy Portfolio Standards
Act. The commission shall apply paragraph (3.4) to comparable
types of energy sources. A default service provider may elect
to satisfy the requirements of the Alternative Energy
Portfolio Standards Act on behalf of all load serving
entities serving load within the service area of the default
service provider.
* * *
(5) (i) Notwithstanding paragraph (3.1), the electric
distribution company or commission-approved alternative
supplier may, in its sole discretion, offer large
customers with a peak demand of 15 megawatts or greater
at one meter at a location in its service territory any
negotiated rate for service at all of the customers'
locations within the service territory for any duration
agreed upon by the electric distribution company or
commission-approved alternative supplier and the large
customer. The commission shall permit, but shall not
require, an electric distribution company or commission-
approved alternative supplier to provide service to large
customers under this paragraph. Contract rates entered
into under this paragraph shall be subject to review by
the commission in order to ensure that all costs related
to the rates are borne by the parties to the contract and
20170HB1799PN2450 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
that no costs related to the rates are borne by other
customers or customer classes. If no costs related to the
rates are borne by other customers or customer classes,
the commission shall approve the contract within 90 days
of its filing, or it shall be deemed approved by
operation of law upon expiration of the 90 days.
Information submitted under this paragraph shall be
subject to the commission's procedures for the filing of
confidential and proprietary information.
(ii) For purposes of providing service under this
paragraph to customers with a peak demand of 20 megawatts
or greater at one meter at a location within that
distribution company's service territory, an electric
distribution company that has completed its restructuring
transition period as of the effective date of this
paragraph may, in its sole discretion, acquire an
interest in a generation facility or construct a
generation facility specifically to meet the energy
requirements of the customers, including the electric
requirements of the customers' other billing locations
within its service territory. The electric distribution
company must commence construction of the generation
facility or contract to acquire the generation interest
within three years after the effective date of this
paragraph, except that the electric distribution company
may add to the generation facilities it commenced
construction or contracted to acquire after this three-
year period to serve additional load of customers for
whom it commenced construction or contracted to acquire
generation within three years. Nothing in this paragraph
20170HB1799PN2450 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
requires or authorizes the commission to require an
electric distribution company to commence construction or
acquire an interest in a generation facility. The
electric distribution company's interest in the
generation facility it built or contracted to acquire
shall be no larger than necessary to meet peak demand of
customers served under this subparagraph. During times
when the customer's demand is less than the electric
distribution company's generation interest, the electric
distribution company may sell excess power on the
wholesale market. At no time shall the costs associated
with the generating facility interests be included in
rate base or otherwise reflected in rates. The generation
facility interests shall not be commission-regulated
assets.
(iii) An electric distribution company that owns an
alternative energy system, as defined under section 2 of
the Alternative Energy Portfolio Standards Act, may use
alternative energy and alternative energy credits
generated by an alternative energy system to satisfy the
solar photovoltaic requirements of the Alternative Energy
Portfolio Standards Act associated with the electric
distribution company ' s default service load or on behalf
of all load serving entities serving load within the
service territory of the electric distribution company.
An electric distribution company may sell alternative
energy generated by the alternative energy system on the
wholesale market if the net proceeds from the sale are
returned to the customers from whom the cost of the
alternative energy system is being recovered.
20170HB1799PN2450 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Notwithstanding any provision of law to the contrary, an
electric distribution company shall be permitted to
recover a pretax return on, and a return of, the
depreciated original cost of an alternative energy system
and the reasonable prudent expenses incurred to operate
and maintain an alternative energy system, provided that
the alternative energy system is used for the purpose
provided under this subparagraph and has been procured
through a commission-approved competitive procurement
process. If an alternative energy system is used to
satisfy the solar photovoltaic requirements associated
with all load serving entities serving load within the
service territory of an electric distribution company,
the costs shall be recovered through a nonbypassable,
competitively neutral charge. If an alternative energy
system is used only to satisfy the solar photovoltaic
requirements associated with the electric distribution
company ' s default service load, the costs shall be
recovered in accordance with paragraph (3.9). The costs
of any alternative energy system recovered under this
section shall not otherwise be recovered from customers
except to the extent authorized by the commission.
(5.1) An electric distribution company may enter into a
contract, including a long-term contract, for the procurement
of alternative energy credits in accordance with a
commission-approved procurement process to provide
competitively neutral alternative energy credit products for
customers. The costs of the alternative energy credit
products shall only be recoverable from customers purchasing
the alternative energy credit products except to the extent
20170HB1799PN2450 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
authorized by the commission.
* * *
Section 2. Section 2814 of Title 66 is amended by adding
subsections to read:
§ 2814. Additional alternative energy sources.
* * *
(d) Incentives for customer-generators.--Subject to
commission approval, an electric distribution company may offer
incentives to net-metered customer-generators, as provided in
the Alternative Energy Portfolio Standards Act, to install
equipment on the customer's net-metered distributed generation
system to enable the electric distribution company to monitor
and control energy delivered to the distribution grid from the
system and to store excess energy produced by the system. The
costs of the incentives shall be recoverable under an automatic
energy adjustment clause under section 1307 (relating to sliding
scale of rates; adjustments).
(e) Low-income programs.--An electric distribution company
that owns an alternative energy system, as defined under
section 2 of the Alternative Energy Portfolio Standards Act, may
use alternative energy and alternative energy credits generated
by the alternative energy system as part of an integrated
program for low-income residential customers that promotes
alternative energy sources. Notwithstanding any provision of law
to the contrary, an electric distribution company shall be
permitted to recover a pretax return on, and a return of, the
depreciated original cost of an alternative energy system and
the reasonable prudent expenses incurred to operate and maintain
an alternative energy system that it owns as a cost of universal
service, provided that the alternative energy system is used for
20170HB1799PN2450 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the purpose provided under this subsection and has been procured
by the electric distribution company through a commission-
approved competitive procurement process. The costs of an
alternative energy system included in establishing an electric
distribution company's distribution rates and the costs of
alternative energy and alternative energy credits generated by
the alternative energy system shall not otherwise be recovered
from customers except to the extent authorized by the
commission.
Section 3. This act shall take effect in 60 days.
20170HB1799PN2450 - 7 -
1
2
3
4
5
6
7
8
9
10