PRINTER'S NO. 3022
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2075
Session of
2018
INTRODUCED BY CHARLTON, DRISCOLL, HEFFLEY, FLYNN, CORBIN,
BIZZARRO, QUIGLEY, BARRAR, SANTORA AND SCHWEYER,
FEBRUARY 16, 2018
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 16, 2018
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
further providing for valuation of and return on the property
of a public utility.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1311(b) of Title 66 of the Pennsylvania
Consolidated Statutes is amended to read:
ยง 1311. Valuation of and return on the property of a public
utility.
* * *
(b) Method of valuation.--
(1) The value of the property of the public utility
included in the rate base shall be the original cost of the
property when first devoted to the public service less the
applicable accrued depreciation as such depreciation is
determined by the commission.
(2) (i) The value of the property of a public utility
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
providing water or wastewater service shall include the
original cost incurred by the public utility for the
replacement of customer-owned lead water service lines
and the replacement or rehabilitation of damaged
customer-owned sewer laterals, notwithstanding that the
customer will hold legal title to the replacement water
service line or replacement or rehabilitated sewer
lateral.
(ii) The original cost of the replacement water
service line or replacement or rehabilitated sewer
lateral shall be deemed other related capitalized costs
that are part of the public utility's distribution
system.
(iii) The public utility incurring the cost under
subparagraph (i) may recover a return on, and a return
of, the cost that the commission determines to have been
prudently incurred and will help prevent adverse effects
on public health or public safety or help the public
utility comply with laws and regulations pertaining to
drinking water or environmental standards.
(iv) The commission may allocate the cost associated
with the replacement of a customer-owned lead water
service line and the replacement or rehabilitation of a
damaged customer-owned sewer lateral among each customer,
classes of customers and types of service.
(v) Notwithstanding any other provision of this
title to the contrary, a public utility providing water
or wastewater service must obtain prior approval of the
commission or replacement or rehabilitation of damaged
customer-owned sewer laterals.
20180HB2075PN3022 - 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
* * *
Section 2. This act shall take effect in 60 days.
20180HB2075PN3022 - 3 -
1
2