A00175
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
751
Session of
2019
INTRODUCED BY ROAE AND TURZAI, MARCH 8, 2019
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 8, 2019
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in general provisions, further
providing for definitions; in powers and duties, further
providing for power of commission to order acquisition of
small water and sewer utilities; in procedure on complaints,
further providing for service of complaints on parties; and,
in rates and distribution systems, further providing for
computation of income tax expense for ratemaking purposes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "service line" in section 102
of Title 66 of the Pennsylvania Consolidated Statutes is amended
to read:
§ 102. Definitions.
Subject to additional definitions contained in subsequent
provisions of this part which are applicable to specific
provisions of this part, the following words and phrases when
used in this part shall have, unless the context clearly
indicates otherwise, the meanings given to them in this section:
* * *
"Service line." The pipe and appurtenances of the gas
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utility, water utility or wastewater utility which connect any
main with either the point of connection of a customer's service
line or the meter of the public utility if the utility owns all
the pipe and appurtenances between its main and meter.
* * *
Section 2. Sections 529(a), (b) and (i) 529(i) and 702 of
Title 66 are amended to read:
§ 529. Power of commission to order acquisition of small water
and sewer utilities.
(a) General rule.--The commission may order a capable public
utility to acquire a small water or sewer utility if the
commission, after notice and an opportunity to be heard,
determines:
(1) that the small water or sewer utility is in
violation of statutory or regulatory standards, including,
but not limited to, the act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law, the act of January
24, 1966 (1965 P.L.1535, No.537), known as the Pennsylvania
Sewage Facilities Act, and the act of May 1, 1984 (P.L.206,
No.43), known as the Pennsylvania Safe Drinking Water Act,
and the regulations adopted thereunder, which affect the
safety, adequacy, efficiency or reasonableness of the service
provided by the small water or sewer utility;
(2) that the small water or sewer utility has failed to
comply, within a reasonable period of time, with any order of
the Department of Environmental Resources or the commission
concerning the safety, adequacy, efficiency or reasonableness
of service, including, but not limited to, the availability
of water, the potability of water, the palatability of water
or the provision of water at adequate volume and pressure;
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(3) that the small water or sewer utility cannot
reasonably be expected to furnish and maintain adequate,
efficient, safe and reasonable service and facilities in the
future;
[(4) that alternatives to acquisition have been
considered in accordance with subsection (b) and have been
determined by the commission to be impractical or not
economically feasible;]
(5) that the acquiring capable public utility is
financially, managerially and technically capable of
acquiring and operating the small water or sewer utility in
compliance with applicable statutory and regulatory
standards; and
(6) that the rates charged by the acquiring capable
public utility to its preacquisition customers will not
increase unreasonably because of the acquisition.
[(b) Alternatives to acquisition.--Before the commission may
order the acquisition of a small water or sewer utility in
accordance with subsection (a), the commission shall discuss
with the small water or sewer utility, and shall give such
utility a reasonable opportunity to investigate, alternatives to
acquisition, including, but not limited to:
(1) The reorganization of the small water or sewer
utility under new management.
(2) The entering of a contract with another public
utility or a management or service company to operate the
small water or sewer utility.
(3) The appointment of a receiver to assure the
provision of adequate, efficient, safe and reasonable service
and facilities to the public.
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(4) The merger of the small water or sewer utility with
one or more other public utilities.
(5) The acquisition of the small water or sewer utility
by a municipality, a municipal authority or a cooperative.]
* * *
(i) Burden of proof.--The [Law Bureau] Bureau of
Investigation and Enforcement shall have the burden of
establishing a prima facie case that the acquisition of the
small water or sewer utility would be in the public interest and
in compliance with the provisions of this section. Once the
commission determines that a prima facie case has been
established:
(1) the small water or sewer utility shall have the
burden of proving its ability to render adequate, efficient,
safe and reasonable service at just and reasonable rates; and
(2) a proximate public utility providing the same type
of service as the small water or sewer utility shall have the
opportunity and burden of proving its financial, managerial
or technical inability to acquire and operate the small water
or sewer utility.
* * *
§ 702. Service of complaints on parties.
Upon the filing of a complaint, the commission shall cause to
be served upon each party named in the complaint a copy of the
complaint and notice from the commission calling upon such party
to satisfy the complaint, or to answer the same in writing,
within such time as is specified by the commission in the
notice. Service in all hearings, investigations and proceedings
pending before the commission shall be made by registered or
certified mail or by e-mail upon agreement by each party.
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Section 3. Section 1301.1 of Title 66 is amended by adding a
subsection to read:
§ 1301.1. Computation of income tax expense for ratemaking
purposes.
* * *
(b.1) Taxable contributions.--A water or wastewater public
utility shall be solely responsible for funding the income taxes
on taxable contributions in aid of construction and customer
advances for construction and shall record the income taxes the
water or wastewater public utility pays in accumulated deferred
income taxes for accounting and ratemaking purposes.
* * *
Section 4. This act shall take effect in 60 days.
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