66 Pa.C.S. Ch. 5

in effect

66 Pa.C.S. § 5 Expiration.

The addition of 66 Pa.C.S. Ch. 14 shall expire on December 31, 2014, unless sooner reenacted by the General Assembly.

66 Pa.C.S. § 501 General powers.

(a) Enforcement of provisions of part.--In addition to any powers expressly enumerated in this part, the commission shall have full power and authority, and it shall be its duty to enforce, execute and carry out, by its regulations, orders, or otherwise, all and singular, the provisions of this part, and the full intent thereof; and shall have the power to rescind or modify any such regulations or orders. The express enumeration of the powers of the commission in this part shall not exclude any power which the commission would otherwise have under any of the provisions of this part. (b) Administrative authority and regulations.--The commission shall have general administrative power and authority to supervise and regulate all public utilities doing business within this Commonwealth. The commission may make such regulations, not inconsistent with law, as may be necessary or proper in the exercise of its powers or for the performance of its duties. (c) Compliance.--Every public utility, its officers, agents, and employees, and every other person or corporation subject to the provisions of this part, affected by or subject to any regulations or orders of the commission or of any court, made, issued, or entered under the provisions of this part, shall observe, obey, and comply with such regulations or orders, and the terms and conditions thereof. Cross References. Section 501 is referred to in sections 2212, 2806, 3209 of this title.

66 Pa.C.S. § 502 Enforcement proceedings by commission.

Whenever the commission shall be of opinion that any person or corporation, including a municipal corporation, is violating, or is about to violate, any provisions of this part; or has done, or is about to do, any act, matter, or thing herein prohibited or declared to be unlawful; or has failed, omitted, neglected, or refused, or is about to fail, omit, neglect, or refuse, to perform any duty enjoined upon it by this part, or has failed, omitted, neglected or refused, or is about to fail, omit, neglect, or refuse to obey any lawful requirement, regulation or order made by the commission; or any final judgment, order, or decree made by any court, then and in every such case the commission may institute injunction, mandamus or other appropriate legal proceedings, to restrain such violations of the provisions of this part, or of the regulations, or orders of the commission, and to enforce obedience thereto. Saved from Suspension. Pennsylvania Rule of Civil Procedure No. 1549(11), adopted June 3, 1994, provided that section 502 shall not be deemed suspended or affected by Rules 1501 through 1536 relating to action in equity. Cross References. Section 502 is referred to in section 2905 of this title.

66 Pa.C.S. § 503 Enforcement proceedings by Chief Counsel.

The Chief Counsel, in addition to the exercise of the powers and duties now conferred upon him by law, shall also, upon request of the commission proceed in the name of the Commonwealth, by mandamus, injunction, or quo warranto, or other appropriate remedy at law or, in equity, to restrain violations of the provisions of this part, or of the regulations or orders of the commission, or the judgments, orders, or decrees of any court, or to enforce obedience thereto. (Dec. 18, 1980, P.L.1247, No.226, eff. Jan. 20, 1981)

66 Pa.C.S. § 504 Reports by public utilities.

The commission may require any public utility to file periodical reports, at such times, and in such form, and of such content, as the commission may prescribe, and special reports concerning any matter whatsoever about which the commission is authorized to inquire, or to keep itself informed, or which it is required to enforce. The commission may require any public utility to file with it a copy of any report filed by such public utility with any Federal department or regulatory body. All reports shall be under oath or affirmation when required by the commission. Cross References. Section 504 is referred to in sections 2212, 3209 of this title.

66 Pa.C.S. § 505 Duty to furnish information to commission; cooperation in valuing property.

Every public utility shall furnish to the commission, from time to time, and as the commission may require, all accounts, inventories, appraisals, valuations, maps, profiles, reports of engineers, books, papers, records, and other documents or memoranda, or copies of any and all of them, in aid of any inspection, examination, inquiry, investigation, or hearing, or in aid of any determination of the value of its property, or any portion thereof, and shall cooperate with the commission in the work of the valuation of its property, or any portion thereof, and shall furnish any and all other information to the commission, as the commission may require, in any inspection, examination, inquiry, investigation, hearing, or determination of such value of its property, or any portion thereof. Cross References. Section 505 is referred to in sections 1706, 2212, 3209 of this title.

66 Pa.C.S. § 506 Inspection of facilities and records.

The commission shall have full power and authority, either by or through its members, or duly authorized representatives, whenever it shall deem it necessary or proper in carrying out any of the provisions of, or its duties under this part, to enter upon the premises, buildings, machinery, system, plant, and equipment, and make any inspection, valuation, physical examination, inquiry, or investigation of any and all plant and equipment, facilities, property, and pertinent records, books, papers, accounts, maps, inventories, appraisals, valuations, memoranda, documents, or effects whatsoever, of any public utility, or prepared or kept for it by others, and to hold any hearing for such purposes. In the performance of such duties, the commission may have access to, and use any books, records, or documents in the possession of, any department, board, or commission of the Commonwealth, or any political subdivision thereof. Cross References. Section 506 is referred to in sections 1706, 2212, 3209 of this title.

66 Pa.C.S. § 507 Contracts between public utilities and municipalities.

Except for a contract between a public utility and a municipal corporation to furnish service at the regularly filed and published tariff rates, no contract or agreement between any public utility and any municipal corporation shall be valid unless filed with the commission at least 30 days prior to its effective date. Upon notice to the municipal authorities, and the public utility concerned, the commission may, prior to the effective date of such contract or agreement, institute proceedings to determine the reasonableness, legality or any other matter affecting the validity thereof. Upon the institution of such proceedings, such contract or agreement shall not be effective until the commission grants its approval thereof.

66 Pa.C.S. § 508 Power of commission to vary, reform and revise contracts.

The commission shall have power and authority to vary, reform, or revise, upon a fair, reasonable, and equitable basis, any obligations, terms, or conditions of any contract heretofore or hereafter entered into between any public utility and any person, corporation, or municipal corporation, which embrace or concern a public right, benefit, privilege, duty, or franchise, or the grant thereof, or are otherwise affected or concerned with the public interest and the general well-being of this Commonwealth. Whenever the commission shall determine, after reasonable notice and hearing, upon its own motion or upon complaint, that any such obligations, terms, or conditions are unjust, unreasonable, inequitable, or otherwise contrary or adverse to the public interest and the general well-being of this Commonwealth, the commission shall determine and prescribe, by findings and order, the just, reasonable, and equitable obligations, terms, and conditions of such contract. Such contract, as modified by the order of the commission, shall become effective 30 days after service of such order upon the parties to such contract. Cross References. Section 508 is referred to in section 2807 of this title.

66 Pa.C.S. § 509 Regulation of manufacture, sale or lease of appliances.

It is unlawful for any public utility engaged in the manufacture, sale, or lease of any appliance or equipment offered by such public utility for sale to the public to: (1) Discontinue service to any consumer for failure of such consumer to pay the whole, or any installment, of the purchase price, or rental, of any appliance or equipment sold to such consumer. (2) Apply to the purchase price or rental, or any part thereof, of any appliance or equipment purchased by, or leased to, a consumer of the service of the public utility, any deposit or other moneys of the consumer in the possession of the public utility. This restriction does not apply to any claims of the public utility against such consumer when such claims arise from damages to meters or other facilities used to measure and ascertain the quantity of service rendered by the public utility. (3) Employ in the manufacture, sale, or lease of any such appliance or equipment, any property used in, or revenue derived from, the rendering of service to the public, unless separate accounts as to the property used and the costs incurred by, and the revenue derived from, the manufacture, lease, or sale of such appliance or equipment are adopted, used, and kept by the public utility. (4) Employ in the manufacture, sale, or lease of any such appliance or equipment, the service of any officer or employee engaged in rendering service to the public, unless separate accounts as to the amount paid to such officer or employee, while engaged in the manufacture, lease or sale of such appliance or equipment, and whether any amount be salary, bonus, commission, or expense are adopted, used, and kept by the public utility.

66 Pa.C.S. § 510 Assessment for regulatory expenses upon public utilities.

(a) Determination of assessment.--Before November 1 of each year, the commission shall estimate its total expenditures in the administration of this part for the fiscal year beginning July of the following year, which estimate shall not exceed three-tenths of 1% of the total gross intrastate operating revenues of the public utilities and licensed entities under its jurisdiction for the preceding calendar year, except that the estimate may exceed this amount to reflect Federal funds received by the commission and funds received from other sources to perform functions that are unrelated to the regulation of public utilities and licensed entities. Such estimate shall be submitted to the Governor in accordance with section 610 of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929. At the same time the commission submits its estimate to the Governor, the commission shall also submit that estimate to the General Assembly. The commission or its designated representatives shall be afforded an opportunity to appear before the Governor and the Senate and House Appropriations Committees regarding their estimates. The commission shall subtract from the final estimate: (1) The estimated fees to be collected pursuant to section 317 (relating to fees for services rendered by commission) during such fiscal year. (2) The estimated balance of the appropriation, specified in section 511 (relating to disposition, appropriation and disbursement of assessments and fees), to be carried over into such fiscal year from the preceding one. The remainder so determined, herein called the total assessment, shall be allocated to, and paid by, such public utilities in the manner prescribed. If the General Assembly fails to approve the commission's budget for the purposes of this part, by March 30, the commission shall assess public utilities on the basis of the last approved operating budget. At such time as the General Assembly approves the proposed budget the commission shall have the authority to make an adjustment in the assessments to reflect the approved budget. If, subsequent to the approval of the budget, the commission determines that a supplemental budget may be needed, the commission shall submit its request for that supplemental budget simultaneously to the Governor and the chairmen of the House and Senate Appropriations Committees. (b) Allocation of assessment.--On or before March 31 of each year, every public utility shall file with the commission a statement under oath showing its gross intrastate operating revenues for the preceding calendar year. If any public utility shall fail to file such statement on or before March 31, the commission shall estimate such revenues, which estimate shall be binding upon the public utility for the purposes of this section. For each fiscal year, the allocation shall be made as follows: (1) The commission shall determine for the preceding calendar year the amount of its expenditures directly attributable to the regulation of each group of utilities furnishing the same kind of service, and debit the amount so determined to such group. The commission may, for purposes of the assessment, deem utilities rendering water, sewer or water and sewer service, as defined in the definition of "public utility" in section 102 (relating to definitions), as a utility group. (2) The commission shall also determine for the preceding calendar year the balance of its expenditures, not debited as aforesaid, and allocate such balance to each group in the proportion which the gross intrastate operating revenues of such group for that year bear to the gross intrastate operating revenues of all groups for that year. (3) The commission shall then allocate the total assessment prescribed by subsection (a) to each group in the proportion which the sum of the debits made to it bears to the sum of the debits made to all groups. (4) Each public utility within a group shall then be assessed for and shall pay to the commission such proportion of the amount allocated to its group as the gross intrastate operating revenues of the public utility for the preceding calendar year bear to the total gross intrastate operating revenues of its group for that year. (5) (Repealed). (c) Notice, hearing and payment.--The commission shall give notice by registered or certified mail to each public utility of the amount lawfully charged against it under the provisions of this section, which amount shall be paid by the public utility within 30 days of receipt of such notice, unless the commission specifies on the notices sent to all public utilities an installment plan of payment, in which case each public utility shall pay each installment on or before the date specified therefor by the commission. Within 15 days after receipt of such notice, the public utility against which such assessment has been made may file with the commission objections setting out in detail the grounds upon which the objector regards such assessment to be excessive, erroneous, unlawful or invalid. The commission, after notice to the objector, shall hold a hearing upon such objections. After such hearing, the commission shall record upon its minutes its findings on the objections and shall transmit to the objector, by registered or certified mail, notice of the amount, if any, charged against it in accordance with such findings, which amount or any installment thereof then due, shall be paid by the objector within ten days after receipt of notice of the findings of the commission with respect to such objections. If any payment prescribed by this subsection is not made as aforesaid, the commission may suspend or revoke certificates of public convenience, certify automobile registrations to the Department of Transportation for suspension or revocation or, through the Department of Justice, may institute an appropriate action at law for the amount lawfully assessed, together with any additional cost incurred by the commission or the Department of Justice by virtue of such failure to pay. (d) Suits by public utilities.--No suit or proceeding shall be maintained in any court for the purpose of restraining or in anywise delaying the collection or payment of any assessment made under subsections (a), (b) and (c), but every public utility against which an assessment is made shall pay the same as provided in subsection (c). Any public utility making any such payment may, at any time within two years from the date of payment, sue the Commonwealth in an action at law to recover the amount paid, or any part thereof, upon the ground that the assessment was excessive, erroneous, unlawful, or invalid, in whole or in part, provided objections, as hereinbefore provided, were filed with the commission, and payment of the assessment was made under protest either as to all or part thereof. In any action for recovery of any payments made under this section, the claimant shall be entitled to raise every relevant issue of law, but the findings of fact made by the commission, pursuant to this section, shall be prima facie evidence of the facts therein stated. Any records, books, data, documents, and memoranda relating to the expenses of the commission shall be admissible in evidence in any court and shall be prima facie evidence of the truth of their contents. If it is finally determined in any such action that all or any part of the assessment for which payment was made under protest was excessive, erroneous, unlawful, or invalid, the commission shall make a refund to the claimant out of the appropriation specified in section 511 as directed by the court. (e) Certain provisions not applicable.--The provisions of this part relating to the judicial review of orders and determinations of the commission shall not be applicable to any findings, determinations, or assessments made under this section. The procedure in this section providing for the determination of the lawfulness of assessments and the recovery back of payments made pursuant to such assessment shall be exclusive of all other remedies and procedures. (f) Intent of section.--It is the intent and purpose of this section that each public utility subject to this part shall advance to the commission its reasonable share of the cost of administering this part. The commission shall keep records of the costs incurred in connection with the administration and enforcement of this part or any other statute. The commission shall also keep a record of the manner in which it shall have computed the amount assessed against every public utility. Such records shall be open to inspection by all interested parties. The determination of such costs and assessments by the commission, and the records and data upon which the same are made, shall be considered prima facie correct; and in any proceeding instituted to challenge the reasonableness or correctness of any assessment under this section, the party challenging the same shall have the burden of proof. (g) Saving provision.--This section does not affect or repeal any of the provisions of the act of July 31, 1968 (P.L.769, No.240), known as the "Commonwealth Documents Law." (Dec. 18, 1980, P.L.1247, No.226, eff. imd.; July 10, 1986, P.L.1238, No.114, eff. imd.; Apr. 4, 1990, P.L.93, No.21, eff. 90 days; June 22, 1990, P.L.241, No.56, eff. 60 days; Dec. 30, 2002, P.L.2001, No.230, eff. 60 days; July 16, 2004, P.L.758, No.94; Oct. 22, 2014, P.L.2545, No.155, eff. 60 days) 2014 Amendment. Act 155 amended subsec. (a). See section 1 of Act 155 in the appendix to this title for special provisions relating to legislative findings and declarations. 2004 Repeal. Act 94 repealed subsec. (b)(5). Section 25(1)(ii) of Act 94 provided that the repeal of subsec. (b)(5) shall take effect in 270 days or on the date of publication of the notice under section 24 of Act 94. The notice was published in the Pennsylvania Bulletin March 12, 2005, at 35 Pa.B. 1737. See sections 20(5), 21(5) and 24 of Act 94 in the appendix to this title for special provisions relating to Pennsylvania Public Utility Commission contracts, preservation of rights, obligations, duties and remedies and publication in Pennsylvania Bulletin. 1990 Amendments. Act 21 amended subsec. (b) and Act 56 amended subsec. (b)(1). References in Text. The Department of Justice, referred to in subsec. (c), was reorganized into the Office of Attorney General by the act of October 15, 1980 (P.L.950, No.164). Cross References. Section 510 is referred to in sections 2212, 2610, 3207 of this title; section 2303 of Title 58 (Oil and Gas).

66 Pa.C.S. § 511 Disposition, appropriation and disbursement of assessments and fees.

(a) Payment into General Fund.--All assessments and fees received, collected or recovered under this chapter shall be paid by the commission into the General Fund of the State Treasury through the Department of Revenue. (b) Use and appropriation of funds.--All such assessments and fees, having been advanced by public utilities for the purpose of defraying the cost of administering this part, shall be held in trust solely for that purpose, and shall be earmarked for the use of, and annually appropriated to, the commission for disbursement solely for that purpose. (c) Requisition of funds.--All requisitions upon such appropriation shall be signed by the chairman and secretary of the commission, or such deputies as they may designate in writing to the State Treasurer, and shall be presented to the State Treasurer and dealt with by him and the Treasury Department in the manner prescribed by the act of April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code." (Dec. 18, 1980, P.L.1247, No.226, eff. imd.) 1980 Amendment. Act 226 amended subsec. (b). Cross References. Section 511 is referred to in section 510 of this title.

66 Pa.C.S. § 511.1 Use of Federal funds under energy program.

(a) General rule.--The commission is authorized to apply for and, subject to appropriation by the General Assembly, use Federal funds pursuant to the National Energy Act which is composed of: (1) The "National Energy Conservation Policy Act," Public Law 95-619. (2) The "Powerplant and Industrial Fuel Use Act of 1978," Public Law 95-620. (3) The "Public Utility Regulatory Policies Act of 1978," Public Law 95-617. (4) The "Natural Gas Policy Act of 1978," Public Law 95-621. (5) The "Energy Tax Act of 1978," Public Law 95-618. (6) The "Energy Conservation and Production Act of 1976," Public Law 94-385. (7) Any future Federal legislation or amendments to the statutes listed in this subsection providing special funds for: (i) Rate making research and development. (ii) Energy conservation research and development. (iii) Motor carrier and rail transportation safety programs. (iv) Gas safety programs. (b) Funds not subject to lapse.--Funds received by the commission pursuant to subsection (a) shall not be subject to lapsing at the end of any fiscal period. (c) Reimbursement to utilities prohibited.--Funds received by the commission pursuant to subsection (a) shall not be reimbursed to any public utility. (Dec. 18, 1980, P.L.1247, No.226, eff. imd.) 1980 Amendment. Act 226 added section 511.1.

66 Pa.C.S. § 512 Power of commission to require insurance.

The commission may, as to motor carriers, prescribe, by regulation or order, such requirements as it may deem necessary for the protection of persons or property of their patrons and the public, including the filing of surety bonds, the carrying of insurance, or the qualifications and conditions under which such carriers may act as self-insurers with respect to such matters. All motor carriers of passengers, whose current liquid assets do not exceed their current liabilities by at least $100,000, shall cover each and every vehicle, transporting such passengers, with a public liability insurance policy or a surety bond issued by an insurance carrier or a bonding company authorized to do business in this Commonwealth, in such amounts as the commission may prescribe, but not less than $5,000 for one and $10,000 for more than one person injured in any one accident.

66 Pa.C.S. § 512.1 Power of commission to confiscate, impound and sell vehicles.

(a) Authorization.--The commission is empowered to confiscate a vehicle and impound and sell a vehicle if the vehicle is used to provide a prearranged ride following disqualification under section 2609(b) (relating to fines and penalties) or suspension or revocation of a transportation network company's license under this title. (b) Return of vehicle.--The vehicle may be returned to the registered owner upon payment of the costs of the commission associated with confiscation and impoundment. Failure of a transportation network company, driver of a confiscated vehicle or registered owner to pay these costs may result in forfeiture and sale of the vehicle. (c) Commission duties.--The commission shall establish the following by regulation or order: (1) grounds for confiscation, impoundment or sale; (2) procedures for satisfaction of outstanding fines, penalties and costs and notice and hearing; and (3) if the fines, penalties and costs are not timely paid, the timing of the sale and the allocation of proceeds from the sale of impounded vehicles. (d) Disposition of sale proceeds.--The proceeds of the sale of a vehicle by the commission under this section shall first be used to satisfy any liens on the vehicle or, if the vehicle is subject to a lease, to pay the lessor damages due to the lessor upon default by the lessee as provided by 13 Pa.C.S. § 2A527 (relating to lessor's rights to dispose of goods) prior to paying any fines, penalties and costs. (Nov. 4, 2016, P.L.1222, No.164, eff. imd.) 2016 Amendment. Act 164 added section 512.1.

66 Pa.C.S. § 513 Public letting of contracts.

Whenever the commission deems that the public interest so requires, it may direct, by regulation or order, that any public utility shall award contracts or agreements for the construction, improvement, or extension, of its plant or system to the lowest responsible bidder, after a public offering has been made, after advertisement and notice. Any such public utility may participate as a bidder in any such public offering. The commission may prescribe regulations relative to such advertisement, notice, and public letting.

66 Pa.C.S. § 514 Use of coal.

(a) Upgrading capability to use coal.--The commission shall promulgate regulations which require utilities to uprate their electric power production by increasing the capability to use coal in existing coal-fueled plants where economically feasible and where the uprate is beneficial to ratepayers. (b) Incentive for uprating.--The commission shall promulgate regulations which establish a special cost recovery and shared benefits procedure for electric utilities and their ratepayers as an incentive to implement upratings as provided in subsection (a). Nothing in this section shall permit or require the commission to establish rates or procedures which are inconsistent with any other section in this title. (c) Cost of upgrading.--Notwithstanding section 1315 (relating to limitation on consideration of certain costs for electric utilities) and subject to regulations promulgated by the commission, the commission may allow a portion of the prudently incurred costs, determined on a per megawatt basis and not to exceed 50% of the unit's undepreciated original cost per megawatt, of uprating the capability of an existing coal-fueled plant to use coal mined in Pennsylvania to be made a part of the rate base or otherwise included in the rates charged by the utility before such uprating is completed. This subsection shall not apply unless, upon application of the affected public utility, the commission determines that the uprating would be more cost effective for the utility's ratepayers than other alternatives for meeting the utility's load and capacity requirements. Notwithstanding section 1309 (relating to rates fixed on complaint; investigation of costs of production), the commission, by regulation, shall provide for a utility to remove the costs of an uprating from its rate base and to refund any revenues collected as the result of this subsection, plus interest, which shall be the average rate of interest specified for residential mortgage lending by the Secretary of Banking in accordance with the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, during the period or periods for which the commission orders refunds, if the commission, after notice and hearings, determines that the uprating has not been completed within a reasonable time. (May 31, 1984, P.L.370, No.74, eff. 60 days; Dec. 21, 1984, P.L.1265, No.240, eff. imd.; July 3, 1986, P.L.348, No.80, eff. 60 days) References in Text. The Secretary of Banking, referred to in subsec. (c), was renamed the Secretary of Banking and Securities by the act of July 2, 2012 (P.L.814, No.86). Cross References. Section 514 is referred to in section 523 of this title.

66 Pa.C.S. § 515 Construction cost of electric generating units.

(a) Submission of estimate.--No later than 30 days after construction of an electric generating unit is begun, either in this Commonwealth or in some other state, any public utility operating in this Commonwealth and owning any share in that unit shall submit to the commission an estimate of the cost of constructing that unit. If the public utility acquires ownership of any share in an electric generating unit which is under construction on the date of acquisition, the public utility shall, within 30 days of the date of acquisition, submit an estimate of the cost of constructing that unit which was formulated no later than 30 days from the beginning of construction. (b) Auditor in charge.--For each electric generating unit under construction which falls under the provisions of this section, the commission shall designate an auditor in charge. In addition to the access to evidence granted by this section, each utility having a generating unit under construction shall promptly submit, to the appropriate auditor in charge, copies and a description of any change with respect to construction which may be expected to result in substantial variances in the construction cost. A summary of all other changes shall be submitted to the commission at such reasonable times as the commission shall require. (c) Access to evidence.--From and after the beginning of construction of an electric generating unit, the commission, or the auditor in charge, and the Consumer Advocate, or his designee, shall have reasonable access to the construction site and to any oral or documentary evidence relevant to determining the necessity and propriety of any construction cost. If a public utility objects to any request by the commission or the auditor in charge or the Consumer Advocate, or the person designated by the Consumer Advocate, for access to the construction site or to any oral or documentary evidence, the objection shall be decided in the same manner as an on-the-record proceeding pursuant to Chapter 3 (relating to public utility commission). The affected public utility shall have the burden of proof in sustaining any such objection. (d) Definition.--As used in this section the term "construction" includes any work performed on an electric generating unit which is expected to require the affected public utility to incur an aggregate of at least $100,000,000 of expenses which, in accordance with generally accepted accounting principles, are capital expenses and not operating or maintenance expenses. (July 6, 1984, P.L.602, No.123, eff. imd.; July 10, 1986, P.L.1238, No.114, eff. imd.) Cross References. Section 515 is referred to in sections 523, 1308 of this title.

66 Pa.C.S. § 516 Audits of certain utilities.

(a) General rule.--The commission shall provide for audits of any electric, gas, telephone or water utility whose plant in service is valued at not less than $10,000,000. The audits shall include an examination of management effectiveness and operating efficiency. The commission shall establish procedures for audits of the operations of utilities as provided in this section. Audits shall be conducted at least once every five years unless the commission finds that a specific audit is unnecessary, but in no event shall audits be conducted less than once every eight years. A summary of the audits mandated by this subsection shall be released to the public, and a complete copy of the audits shall be provided to the Office of Trial Staff and the Office of Consumer Advocate. (b) Management efficiency investigations.--In addition to the audits mandated by subsection (a), the commission shall appoint a management efficiency investigator who shall periodically examine the management effectiveness and operating efficiency of all utilities required to be audited under subsection (a) and monitor the utility company responses to the audits required by subsection (a). For the purposes of carrying out the periodic audit required by this subsection and for carrying out the monitoring of audits required by subsection (a), the commission is hereby empowered to direct the management efficiency investigator to conduct such investigations through and with teams made up of commission staff and/or independent consulting firms; further, the commission may designate specific items of management effectiveness and operating efficiency to be investigated. The management efficiency investigator shall provide an annual report to the commission, the affected utility, the Office of Trial Staff and the Office of Consumer Advocate detailing the findings of such investigations. (c) Use of independent auditing firms.--The commission may require an audit under subsection (a) or (b) to be performed by an independent consulting firm. When the commission, under either subsection (a) or (b), orders an audit to be performed by an independent consulting firm, the commission, after consultation with the utility, shall select the firm and require the utility to enter into a contract with the firm providing for payment of the firm by the utility. The terms of the contract shall include all reasonable expenses directly related to the performance of the audit or to the management efficiency investigation activities of independent consulting firms at the utility, as well as their preparation and presentation of testimony in any contested litigation which may be undertaken as a result of the audit findings under subsection (a) or (b). That contract shall require the audit firm to work under the direction of the commission. (d) Other powers of commission unaffected.--This section is not intended to alter or repeal any existing powers of the commission. (Dec. 21, 1984, P.L.1240, No.234, eff. 60 days; July 10, 1986, P.L.1238, No.114, eff. imd.) Cross References. Section 516 is referred to in sections 523, 2204 of this title.

66 Pa.C.S. § 517 Conversion of electric generating units fueled by oil or natural gas.

(a) Order by commission.--Whenever the commission determines that conversion of an oil or a natural gas-fueled electric generating unit to coal, a synthetic derived in whole or in part from coal or a mixture which includes coal or is derived in whole or in part from coal is economically and technologically feasible, the commission shall issue an order to the affected public utility to show cause why the commission should not order the conversion of that unit. The commission shall subsequently issue an order requiring the conversion of that unit unless the affected public utility proves, and the commission finds, any of the following: (1) Conversion of the unit is not technologically feasible. (2) The unit, if converted, could not be operated in compliance with present and reasonably anticipated environmental laws and regulations. (3) There is a strong probability that the conversion and subsequent operation of the converted unit would be more costly to ratepayers over the remaining useful life of the converted unit than would continued operation as an oil or a natural gas-fueled unit. (b) Environmental questions.--The commission may certify, to the Department of Environmental Resources, any question regarding the applicability of environmental laws and regulations, when the question arises in a proceeding under this section, and may incorporate the department's findings in its decision. (c) Mixture with oil or natural gas.--For purposes of this section, the phrase "mixture which includes coal or is derived in whole or in part from coal" includes, but is not limited to, both the intermittent and the simultaneous burning of oil or natural gas with coal or a coal derivative if the intermittent or simultaneous burning of oil or natural gas would: (1) lower the cost, to the ratepayers, of using coal or a coal derivative; or (2) enable coal or a coal derivative to be burned in compliance with present and reasonably anticipated environmental laws and regulations. (d) Recovery of conversion costs.--Notwithstanding any other provision of this title, if the commission, acting pursuant to this section, issues an order requiring the conversion of an oil or a natural gas-fueled unit, the affected utility shall be permitted to recover all reasonable and prudent costs associated with the conversion even if the conversion or continued operation of the converted unit is ultimately prevented by factors beyond the utility's control. The affected utility shall be permitted to include in its rate base, or otherwise in its rates during construction, such reasonable and prudent costs of construction associated with the conversion. (e) Availability of funds.--(Repealed). (Dec. 21, 1984, P.L.1240, No.234, eff. imd.; Dec. 21, 1984, P.L.1270, No.241, eff. imd.; July 3, 1986, P.L.348, No.80, eff. 60 days; July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Repeals. Act 80 repealed subsec. (e) and Act 114 repealed subsec. (e). 1984 Amendments. Acts 234 and 241 added section 517. The amendments by Acts 234 and 241 are identical and therefore have been merged. References in Text. The Department of Environmental Resources, referred to in subsec. (b), was abolished by Act 18 of 1995. Its functions were transferred to the Department of Conservation and Natural Resources and the Department of Environmental Protection.

66 Pa.C.S. § 518 Construction of electric generating units fueled by nuclear energy.

(a) General rule.--Only upon the application of a public utility and the approval of the application by the commission shall it be lawful for the utility to begin the construction of an electric generating unit fueled by nuclear energy. (b) Review by commission.--Every application shall be made to the commission, in writing, and shall be in the form and contain the information the commission requires by its regulations. The commission shall approve an application if, after reasonable notice and hearing, the affected public utility proves, and the commission finds, any of the following: (1) There are no reasonably available sites on which a unit or units of comparable capacity fueled by coal, a synthetic derived in whole or in part from coal or a mixture which includes coal or is derived in whole or in part from coal could be operated in compliance with present and reasonably anticipated environmental laws and regulations. (2) There is a strong probability that construction and subsequent operation of a unit or units of comparable capacity fueled by coal, a synthetic derived in whole or in part from coal or a mixture which includes coal or is derived in whole or in part from coal would be more costly to ratepayers over the useful life of the nonnuclear unit or units than would construction and subsequent operation of the unit proposed by the utility. (c) Environmental questions.--The commission may certify, to the Department of Environmental Resources, any question regarding the applicability of environmental laws and regulations, when the question arises in a proceeding under this section, and may incorporate the department's findings in its decision. (d) Time limit on commission review.--If the commission fails to approve or disapprove an application within six months after the date on which the application is filed, it shall be lawful for the affected utility to construct the proposed electric generating unit as though the commission had approved the application. (e) Capacity determinations.--This section does not authorize the commission to review the affected public utility's determination that there is a need to construct a new electric generating unit of the capacity and by the in-service date proposed by the utility and does not supersede a decision by the commission under some other provision of law that there is, or was, not a need to construct a new electric generating unit of the capacity and by the in-service date proposed by the utility. (f) Mixture with oil or natural gas.--For the purposes of this section, the phrase "mixture which includes coal or is derived in whole or in part from coal" includes, but is not limited to, both the intermittent and the simultaneous burning of oil or natural gas with coal or a coal derivative if the intermittent or simultaneous burning of oil or natural gas would: (1) lower the cost, to the ratepayers, of using coal or a coal derivative; or (2) enable coal or a coal derivative to be burned in compliance with present and reasonably anticipated environmental laws and regulations. (Dec. 21, 1984, P.L.1240, No.234, eff. imd.; Dec. 21, 1984, P.L.1270, No.241, eff. 60 days) 1984 Amendments. Acts 234 and 241 added section 518. The amendments by Acts 234 and 241 are identical and therefore have been merged. References in Text. The Department of Environmental Resources, referred to in subsec. (c), was abolished by Act 18 of 1995. Its functions were transferred to the Department of Conservation and Natural Resources and the Department of Environmental Protection.

66 Pa.C.S. § 519 Construction of electric generating units fueled by oil or natural gas.

(a) General rule.--Only upon the application of a public utility and the approval of the application by the commission shall it be lawful for the utility to begin the construction of an electric generating unit fueled by oil or natural gas. (b) Review by commission.--Every application shall be made to the commission, in writing, and shall be in the form and contain the information the commission requires by its regulations. The commission shall approve an application if, after reasonable notice and hearing, the affected public utility proves, and the commission finds, any of the following: (1) There are no reasonably available sites on which a unit or units of comparable capacity fueled by coal, a synthetic derived in whole or in part from coal or a mixture which includes coal or is derived in whole or in part from coal could be operated in compliance with present and reasonably anticipated environmental laws and regulations. (2) There is a strong probability that construction and subsequent operation of a unit or units of comparable capacity fueled by coal, a synthetic derived in whole or in part from coal or a mixture which includes coal or is derived in whole or in part from coal would be more costly to ratepayers over the useful life of the nonoil or nongas unit or units than would construction and subsequent operation of the unit proposed by the utility. (c) Environmental questions.--The commission may certify, to the Department of Environmental Resources, any question regarding the applicability of environmental laws and regulations, when the question arises in a proceeding under this section, and may incorporate the department's findings in its decision. (d) Time limit on commission review.--If the commission fails to approve or disapprove an application within six months after the date on which the application is filed, it shall be lawful for the affected utility to construct the proposed electric generating unit as though the commission had approved the application. (e) Capacity determinations.--This section does not authorize the commission to review the affected public utility's determination that there is a need to construct a new electric generating unit of the capacity and by the in-service date proposed by the utility and does not supersede a decision by the commission under some other provision of law that there is, or was, not a need to construct a new electric generating unit of the capacity and by the in-service date proposed by the utility. (f) Mixture with oil or natural gas.--For the purposes of this section, the phrase "mixture which includes coal or is derived in whole or in part from coal" includes, but is not limited to, both the intermittent and the simultaneous burning of oil or natural gas with coal or a coal derivative if the intermittent or simultaneous burning of oil or natural gas would: (1) lower the cost, to the ratepayers, of using coal or a coal derivative; or (2) enable coal or a coal derivative to be burned in compliance with present and reasonably anticipated environmental laws and regulations. (Dec. 21, 1984, P.L.1240, No.234, eff. imd.; Dec. 21, 1984, P.L.1270, No.241, eff. 60 days) 1984 Amendments. Acts 234 and 241 added section 519. The amendments by Acts 234 and 241 are identical and therefore have been merged. References in Text. The Department of Environmental Resources, referred to in subsec. (c), was abolished by Act 18 of 1995. Its functions were transferred to the Department of Conservation and Natural Resources and the Department of Environmental Protection.

66 Pa.C.S. § 520 Power of commission to order cancellation or modification of construction of electric generating units.

(a) General rule.--The commission shall order any public utility engaged in producing, generating, transmitting, distributing or furnishing electricity to cancel or modify the construction of, or its participation in the construction of, any generating unit where the commission, after notice and an opportunity for hearing, determines that the construction is not in the public interest. In addition to any other relevant matters, the commission shall consider in its determination whether: (1) The generating unit is necessary for the utility to provide adequate and reliable service to the public. (2) There are less costly alternatives by which the utility could maintain its ability to provide adequate and reliable service. (b) Investigations and hearings.--For the purpose of enabling the commission to make its determination, it may hold hearings, make inquiries and require the submission of information which it deems necessary or proper in enabling it to reach a determination. The burden of proof at these hearings to show that construction of the generating unit is in the public interest shall be on the public utility. (c) Regulatory treatment of costs.--Notwithstanding any other provisions of this title, for a generating unit canceled after the effective date of this section, either voluntarily or by commission order, an electric utility may be permitted to recover a return of, but not a return on, prudently incurred costs on any partially completed facility when cancellation is found by the commission to be in the public interest. The burden of proof to show that any costs claimed were prudently incurred shall be on the public utility. (Oct. 10, 1985, P.L.257, No.62, eff. imd.) 1985 Amendment. Act 62 added section 520.

66 Pa.C.S. § 521 Retirement of electric generating units.

(a) Removal from normal operation.--No public utility shall discontinue an electric generating unit from normal operation unless it has petitioned for and obtained the approval of the commission. The commission may, upon its own motion or upon complaint, prohibit a public utility from discontinuing an electric generating unit from normal operation if the commission determines that it would be more cost effective for the utility's ratepayers if the unit were to remain in normal operation, either with or without capital additions or operating improvements, than if the utility were to implement its plan for replacing the power which the unit is, or could be made, capable of producing. (b) Return to normal operation.--The commission may, upon its own motion or upon complaint, order a public utility to return an electric generating unit to normal operation if the commission determines that it would be more cost effective for the utility's ratepayers if the unit were to be returned to normal operation, with or without capital additions or operating improvements, than if the utility were to implement its plan for providing the power which the unit is, or could be made, capable of producing. (c) Procedure.--The commission may hold such hearings as it deems necessary in making the determinations required by subsection (a) or (b). The affected public utility shall have the burden of proof in any proceeding pursuant to this section. (d) Regulations.--The commission may adopt such regulations as it deems necessary to carry out its powers and duties under this section. (e) Exclusion.--This section shall not apply to a nuclear generating unit or to variations in operation of electric generating units to satisfy economic dispatch requirements or to maintain intrasystem or intersystem stability. (f) Construction costs.--Notwithstanding section 1315 (relating to limitation on consideration of certain costs for electric utilities) and subject to regulations promulgated by the commission, the commission may allow a portion of the prudently incurred costs of capital additions, determined on a per megawatt basis and not to exceed 50% of the unit's undepreciated original cost per megawatt, to an electric generating unit to be made a part of the rate base or otherwise included in the rates charged by the utility before such capital additions are completed if the commission, acting pursuant to subsection (a) or (b), prohibits the utility from retiring the unit or orders the utility to return the unit to normal operation, provided that: (1) the capital additions would allow the continued or increased use of coal mined in Pennsylvania; and (2) the capital additions would be more cost effective for the utility's ratepayers than other alternatives for meeting the utility's load and capacity requirements. Notwithstanding section 1309 (relating to rates fixed on complaint; investigation of costs of production), the commission, by regulation, shall provide for a utility to remove the costs of capital additions from its rate base and to refund any revenues collected as the result of this subsection, plus interest, which shall be the average rate of interest specified for residential mortgage lending by the Secretary of Banking in accordance with the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, during the period or periods for which the commission orders refunds, if the commission, after notice and hearing, determines that the capital addition has not been completed within a reasonable time. (g) Definition.--As used in this section the term "normal operation" means the continuing availability of an electric generating unit to meet consumer demand except during: (1) Scheduled outages for repairs, tests or other procedures essential to the unit's further use. (2) Unscheduled outages caused by the unit's physical malfunctioning or breakdown. (3) Reduced levels of generation pending execution of repairs. (4) Reduced levels or complete cessation of generation, on a temporary basis, because of disruptions in fuel supplies, waste disposal or cooling water; or because of compliance with environmental protection limitations or conservation of fuel during periods of, or in anticipation of, scarcity. (July 3, 1986, P.L.348, No.80, eff. 60 days) 1986 Amendment. Act 80 added section 521. References in Text. The Secretary of Banking, referred to in subsec. (f), was renamed the Secretary of Banking and Securities by the act of July 2, 2012 (P.L.814, No.86).

66 Pa.C.S. § 522 Expense reduction program.

(a) Target.--The commission shall establish an expense reduction program for calendar year 1986 for all electric and gas utilities with total annual intrastate operating revenues of at least $40,000,000 and for all telephone utilities with total annual intrastate operating revenues of at least $9,000,000. Utilities regulated by the commission pursuant to this subsection shall make every reasonable effort to reduce their level of expenses, other than expenses associated with depreciation, fuel, collective bargaining agreements and other categories of expense as determined by the commission for the calendar year 1986 as compared to calendar year 1985. The commission shall periodically review the expense reducing efforts undertaken by utilities pursuant to this subsection and shall take appropriate action in response to these efforts. (b) Ongoing effort.--The commission may direct or permit any utility to take any lawful action not inconsistent with this title for the purpose of encouraging economies, efficiencies or improvements which benefit the utility and its ratepayers. (July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Amendment. Act 114 added section 522.

66 Pa.C.S. § 523 Performance factor consideration.

(a) Considerations.--The commission shall consider, in addition to all other relevant evidence of record, the efficiency, effectiveness and adequacy of service of each utility when determining just and reasonable rates under this title. On the basis of the commission's consideration of such evidence, it shall give effect to this section by making such adjustments to specific components of the utility's claimed cost of service as it may determine to be proper and appropriate. Any adjustment made under this section shall be made on the basis of specific findings upon evidence of record, which findings shall be set forth explicitly, together with their underlying rationale, in the final order of the commission. (b) Fixed utilities.--As part of its duties pursuant to subsection (a), the commission shall set forth criteria by which it will evaluate future fixed utility performance and in assessing the performance of a fixed utility pursuant to subsection (a), the commission shall consider specifically the following: (1) Management effectiveness and operating efficiency as measured by an audit pursuant to section 516 (relating to audits of certain utilities) to the extent that the audit or portions of the audit have been properly introduced by a party into the record of the proceeding in accordance with applicable rules of evidence and procedure. (2) Action or failure to act pursuant to section 514 (relating to use of coal) to upgrade capability to use coal for electric utilities. (3) Efficiency and cost-effectiveness of generating capacity for electric utilities. (4) Action or failure to act to encourage development of cost-effective energy supply alternatives such as conservation or load management, cogeneration or small power production for electric and gas utilities. (5) Action or failure to act to encourage cost-effective conservation by customers of water utilities. (6) Action or failure to act to contain costs of constructing new generating units consistent with sections 515 (relating to construction cost of electric generating units) and 1308(f) (relating to voluntary changes in rates). (7) Any other relevant and material evidence of efficiency, effectiveness and adequacy of service. (July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Amendment. Act 114 added section 523.

66 Pa.C.S. § 524 Data to be supplied by electric utilities.

(a) General rule.--Effective December 31, 1987, each public utility producing, generating, distributing or furnishing electricity shall submit annually to the commission information concerning its future plans to meet its customer demand, including, but not limited to, the following data: (1) A year-by-year projection of electrical energy use and electrical energy demand for each of the next 20 years. The forecast shall examine alternative scenarios for demand growth and shall be divided into the residential, commercial, industrial and utility sectors. (2) A year-by-year projection of all available sources of supply for each of the next 20 years, including, but not limited to, the following: (i) Electric generating capacity from centralized power plants over 25,000 KW indicating planned additions, retirements, purchases and all other expected changes in levels of generating capacity. (ii) The projected utilization, and the potential for additional utilization, of cogeneration and nonconventional technologies relying on renewable energy resources, including, but not limited to, solar, wind, biomass and geothermal and other small power technologies not accounted for in subparagraph (i). The information shall identify specifically any such capacity that is expected to or may be available to each utility. (3) A year-by-year examination of the potential for promoting and ensuring the full utilization of all practical and economical energy conservation for the next 20 years and a discussion of how existing and planned utility programs do or do not adequately reach this potential. Such programs should include, but not be limited to, educational, audit, loan, rebate, third-party financing and load management efforts to shift load from peak to off-peak periods. (4) An explanation of how the utility has integrated all demand-side and supply-side options to derive a resource mix to meet customer demand. (5) A comparison of the total annual cost to customers and to the company of the utility's plan to meet new demand compared with alternative plans for the next 20 years. (6) A discussion of the methodologies, assumptions and data sources used to determine the projections and estimates required by paragraphs (1), (2), (3), (4) and (5). (7) With respect to the planned construction of any new generation or production facilities, the utility shall provide all of the following: (i) A discussion of proposed and alternative sites for the construction and operation of planned facilities and an estimate of the effect on annual costs of each alternative considered. (ii) A discussion of the type of fuel and method of generation to be used at the proposed facility as well as alternative types of facilities studied and an estimate of the effect upon annual costs of the various alternative types of facilities considered. (iii) A discussion of expected financial impacts and requirements of construction and operation of the proposed facility, as well as alternative facilities. (iv) A discussion of why all the alternatives considered were rejected. (b) Report.--The commission shall prepare a report summarizing and discussing the data provided pursuant to subsection (a) and annually, on or before September 1, shall submit the report to the General Assembly, the Governor, the Office of Consumer Advocate and each affected public utility. (c) Regulations.--The commission shall promulgate regulations to establish the specific forms and methods of reporting the information to be submitted pursuant to subsection (a). (d) Effect of submission of information.--Neither the submission to the commission of the information required by subsection (a) or the issuance by the commission of a report on the information, or anything contained in such reports, or any action taken by the commission as a result of the issuance of such reports, shall be considered or construed as approval or acceptance by the commission of any of the plans, assumptions or calculations made by the public utility and reflected in the information submitted. (July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Amendment. Act 114 added section 524.

66 Pa.C.S. § 525 Sale of generating units and power.

The commission may prohibit a public utility from discontinuing an electric generating unit from normal operation if the commission determines that it would be technically feasible and cost effective for the utility to sell the unit or the power from the unit to another utility and if the commission determines that it would be cost effective for the other utility to make such a purchase. The commission may also order the sale of the unit or the power from the unit if the commission determines that such a sale would be technically feasible and cost effective for both the selling and buying utilities. (July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Amendment. Act 114 added section 525.

66 Pa.C.S. § 526 Rejection of rate increase requests due to inadequate quality or quantity of service.

(a) General rule.--The commission may reject, in whole or in part, a public utility's request to increase its rates where the commission concludes, after hearing, that the service rendered by the public utility is inadequate in that it fails to meet quantity or quality for the type of service provided. (b) Other powers and duties preserved.--This section shall not be construed to diminish the powers and duties of the commission under any other provision of law to remedy inadequate service by a public utility. (July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Amendment. Act 114 added section 526. Section 18 provided that section 526 shall be applicable to all cases pending before the commission or courts, whether on appeal or otherwise.

66 Pa.C.S. § 527 Cogeneration rules and regulations.

(a) Availability.--The commission shall promulgate rules and regulations concerning the rates, terms, conditions and availability of cogeneration in this Commonwealth. The commission shall require that utility rates to the public reflect the costs and savings to the utility from cogeneration, including, but not limited to, the costs incurred by utilities under contracts with nonutility generating unit project developers for the purchase of electric capacity or energy, or both; the costs recoverable under subsection (b) to buy out and cancel unfinished nonutility generating unit projects by mutual agreement of the project developer and the public utility; and the costs prudently incurred by utilities under a voluntary buyout, buydown or other restructured arrangement which are just and reasonable and which reduce the cost to customers of nonutility generating unit projects. (b) Recovery of cancellation costs of nonutility generating unit projects.--A nonutility generating unit project is a generating unit project that is not owned by a public utility. If the construction of a nonutility generating unit project for which a public utility has a contract, whether entered into voluntarily or pursuant to commission order, to purchase project energy or project capacity and energy is canceled by mutual agreement of the project developer and the public utility prior to the unit's completion and operation, the public utility may recover all costs to be paid to the project developer and all costs directly related thereto which are prudently incurred as a result of such cancellation. The burden of proof to show that any costs claimed were prudently incurred shall be on the public utility. In reviewing a claim for such costs: (1) the commission shall not disallow any portion solely on the basis that it constitutes an amount greater than actual development expenditures and all costs related thereto; and (2) the commission shall consider the amount of the claim compared to the utility's total estimated costs of obligations under the contract. (July 10, 1986, P.L.1238, No.114, eff. imd.; July 2, 1996, P.L.542, No.94, eff. imd.) 1996 Amendment. See the preamble and section 2 of Act 94 in the appendix to this title for special provisions relating to legislative findings and construction of act. Cross References. Section 527 is referred to in sections 2803, 2804, 2808 of this title.

66 Pa.C.S. § 528 Use of foreign coal by qualifying facilities.

(a) Legislative findings.--The General Assembly hereby finds as follows: (1) Potential qualifying facilities which would generate electricity from United States energy sources are, and will for the foreseeable future continue to be, able to supplement adequately the capacity needs of public utilities in this Commonwealth. (2) Some of those qualifying facilities offer the multiple benefits of supplying electricity to Pennsylvania ratepayers at a reasonable price, creating jobs in areas of high unemployment in this Commonwealth and helping to clean up this Commonwealth's environment. (3) Although Federal law places a duty on public utilities to buy electricity generated by qualifying facilities, Federal law does not dictate how the price paid by public utilities and the charges to ratepayers for that electricity are to be calculated. (4) The energy source used by a qualifying facility is a significant factor in determining if a qualifying facility would be able to meet its commitment to supply electricity to a public utility at a reasonable price. (5) Coal mined in a foreign country is subject to major supply interruptions, price increases and quality reductions which are unpredictable and which may result not only from market factors, but also from foreign policy decisions of the United States Government or one or more foreign governments or from domestic policy changes in the foreign country in which the coal is mined. (6) It is much easier for a public utility and the commission to predict the reliability of a qualifying facility and the reasonableness of the price of the electricity to be supplied by that qualifying facility if United States energy sources are to be used than if coal mined in a foreign country is to be used. (7) A qualifying facility which would burn coal mined in a foreign country is too potentially unreliable to justify a public utility in foregoing alternative capacity commitments and in paying the qualifying facility a price which includes any capacity credit. (b) General rule.--The price paid by a public utility to a qualifying facility and the charge imposed on the utility's ratepayers for electricity generated by that qualifying facility shall not include any capacity credit if that qualifying facility burns coal mined in a foreign country. (c) Restriction on contract approval.--The commission shall not approve any contract between a public utility and a qualifying facility which burns coal mined in a foreign country for the purchase by the utility of electricity generated by the qualifying facility unless: (1) the price to be paid by the utility reflects no more than the actual avoided cost of the utility when the payment is made; and (2) the contract does not exceed five years in duration. (d) Review of contracts.--Notwithstanding any other provision of law, a contract in effect on the effective date of this section or thereafter between a public utility and a qualifying facility for the purchase by the utility of electricity generated by the qualifying facility shall, after notice and hearing, be subject to review and modification in accordance with subsections (b) and (c) at any time upon complaint or upon the commission's own motion if the qualifying facility burns coal mined in a foreign country. (e) Recovery from ratepayers.--For the express purpose of implementing the intent of this section, a public utility shall not be permitted to recover from ratepayers pursuant to section 1307 (relating to sliding scale of rates; adjustments) any of the costs associated with a contract between the utility and a qualifying facility which burns coal mined in a foreign country for the purchase by the utility of electricity generated by the qualifying facility. Any such costs which the commission determines to be reasonable and prudent shall be recoverable only through a base rate proceeding pursuant to Chapter 13 (relating to rates and rate making). (f) Definition.--For the purposes of this section, "qualifying facility" means any cogeneration facility or small power producer which is a qualifying facility pursuant to the Federal Energy Regulatory Commission's guidelines set forth at 18 CFR §§ 292.101(b)(1) (relating to definitions) and 292.203(a) and (b) (relating to general requirements for qualification). (g) Severability.--The provisions of this section shall be severable. If any provision of this section or the application thereof to any public utility, qualifying facility or circumstance is held invalid, the remainder of this section and the application of any provision thereof to any other public utilities, qualifying facilities or circumstances shall not be affected thereby. (July 6, 1988, P.L.490, No.83, eff. imd.) 1988 Amendment. Act 83 added section 528.

66 Pa.C.S. § 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; (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. (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. (c) Factors to be considered.--In making a determination pursuant to subsection (a), the commission shall consider: (1) The financial, managerial and technical ability of the small water or sewer utility. (2) The financial, managerial and technical ability of all proximate public utilities providing the same type of service. (3) The expenditures which may be necessary to make improvements to the small water or sewer utility to assure compliance with applicable statutory and regulatory standards concerning the adequacy, efficiency, safety or reasonableness of utility service. (4) The expansion of the franchise area of the acquiring capable public utility so as to include the service area of the small water or sewer utility to be acquired. (5) The opinion and advice, if any, of the Department of Environmental Resources as to what steps may be necessary to assure compliance with applicable statutory or regulatory standards concerning the adequacy, efficiency, safety or reasonableness of utility service. (6) Any other matters which may be relevant. (d) Order of the commission.--Subsequent to the determinations required by subsection (a), the commission shall issue an order for the acquisition of the small water or sewer utility by a capable public utility. Such order shall provide for the extension of the service area of the acquiring capable public utility. (e) Acquisition price.--The price for the acquisition of the small water or sewer utility shall be determined by agreement between the small water or sewer utility and the acquiring capable public utility, subject to a determination by the commission that the price is reasonable. If the small water or sewer utility and the acquiring capable public utility are unable to agree on the acquisition price or the commission disapproves the acquisition price on which the utilities have agreed, the commission shall issue an order directing the acquiring capable public utility to acquire the small water or sewer utility by following the procedure prescribed for exercising the power of eminent domain pursuant to the act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code. (f) Separate tariffs.--The commission may, in its discretion and for a reasonable period of time after the date of acquisition, allow the acquiring capable public utility to charge and collect rates from the customers of the acquired small water or sewer utility pursuant to a separate tariff. (g) Appointment of receiver.--The commission may, in its discretion, appoint a receiver to protect the interests of the customers of the small water or sewer utility. Any such appointment shall be by order of the commission, which order shall specify the duties and responsibilities of the receiver. (h) Notice.--The notice required by subsection (a) or any other provision of this section shall be served upon the small water or sewer utility affected, the Office of Consumer Advocate, the Office of Small Business Advocate, the Office of Trial Staff, the Department of Environmental Resources, all proximate public utilities providing the same type of service as the small water or sewer utility, all proximate municipalities and municipal authorities providing the same type of service as the small water or sewer utility and the municipalities served by the small water or sewer utility. The commission shall order the affected small water or sewer utility to provide notice to its customers of the initiation of proceedings under this section in the same manner in which the utility is required to notify its customers of proposed general rate increases. (i) Burden of proof.--The 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. (j) Plan for improvements.--Any capable public utility ordered by the commission to acquire a small water or sewer utility shall, prior to acquisition, submit to the commission for approval a plan, including a timetable, for bringing the small water or sewer utility into compliance with applicable statutory and regulatory standards. The capable public utility shall also provide a copy of the plan to the Department of Environmental Resources and such other State or local agency as the commission may direct. The commission shall give the Department of Environmental Resources adequate opportunity to comment on the plan and shall consider any comments submitted by the department in deciding whether or not to approve the plan. The reasonably and prudently incurred costs of each improvement shall be recoverable in rates only after that improvement becomes used and useful in the public service. (k) Limitations on liability.--Upon approval by the commission of a plan for improvements submitted pursuant to subsection (j) and the acquisition of a small water or sewer utility by a capable public utility, the acquiring capable public utility shall not be liable for any damages beyond the aggregate amount of $50,000, including a maximum amount of $5,000 per incident, if the cause of those damages is proximately related to identified violations of applicable statutes or regulations by the small water or sewer utility. This subsection shall not apply: (1) beyond the end of the timetable in the plan for improvements; (2) whenever the acquiring capable public utility is not in compliance with the plan for improvements; or (3) if, within 60 days of having received notice of the proposed plan for improvements, the Department of Environmental Resources submitted written objections to the commission and those objections have not subsequently been withdrawn. (l) Limitations on enforcement actions.--Upon approval by the commission of a plan for improvements submitted pursuant to subsection (j) and the acquisition of a small water or sewer utility by a capable public utility, the acquiring capable public utility shall not be subject to any enforcement actions by State or local agencies which had notice of the plan if the basis of such enforcement action is proximately related to identified violations of applicable statutes or regulations by the small water or sewer utility. This subsection shall not apply: (1) beyond the end of the timetable in the plan for improvements; (2) whenever the acquiring capable public utility is not in compliance with the plan for improvements; (3) if, within 60 days of having received notice of the proposed plan for improvements, the Department of Environmental Resources submitted written objections to the commission and those objections have not subsequently been withdrawn; or (4) to emergency interim actions of the commission or the Department of Environmental Resources, including, but not limited to, the ordering of boil-water advisories or other water supply warnings, of emergency treatment or of temporary, alternate supplies of water. (m) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Capable public utility." A public utility which regularly provides the same type of service as the small water utility or the small sewer utility to 4,000 or more customer connections, which is not an affiliated interest of the small water utility or the small sewer utility and which provides adequate, efficient, safe and reasonable service. A public utility which would otherwise be a capable public utility except for the fact that it has fewer than 4,000 customer connections may elect to be a capable public utility for the purposes of this section regardless of the number of its customer connections and regardless of whether or not it is proximate to the small sewer utility or small water utility to be acquired. "Small sewer utility." A public utility which regularly provides sewer service to 1,200 or fewer customer connections. "Small water utility." A public utility which regularly provides water service to 1,200 or fewer customer connections. (Apr. 16, 1992, P.L.149, No.27, eff. 60 days; July 2, 2019, P.L.357, No.53, eff. 60 days) 2019 Amendment. Act 53 amended subsec. (i). 1992 Amendment. Act 27 added section 529. References in Text. The Department of Environmental Resources, referred to in this section, was abolished by Act 18 of 1995. Its functions were transferred to the Department of Conservation and Natural Resources and the Department of Environmental Protection. The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code, referred to in subsec. (e), was repealed by the act of May 4, 2006 (P.L.111, No.34). The subject matter is now contained in Title 26 (Eminent Domain).

66 Pa.C.S. § 530 Clean Air Act implementation plans.

(a) Phase I compliance.--On or before February 1, 1993, each public utility shall submit to the commission and may request commission approval of a plan to bring its generating units which use coal to generate electricity into compliance with the Phase I requirements of Title IV of the Clean Air Act (Public Law 95-95, 42 U.S.C. § 7651 et seq.). (b) Phase II compliance.--On or before January 1, 1996, each public utility shall submit to the commission and may request commission approval of a plan to bring its generating units which use coal to generate electricity into compliance with the Phase II requirements of Title IV of the Clean Air Act. (c) Notice of plan.--At the same time it submits its plan to the commission, the public utility shall provide a copy of the plan to the Department of Environmental Resources, the Consumer Advocate and the Small Business Advocate. For plans submitted after the effective date of this section, the commission shall cause notice of the utility's filing to be published in the Pennsylvania Bulletin. The public utility shall make available, upon request, a copy of the proposed plan to any coal supplier with which it has a supply contract for more than one year and to any collective bargaining representative for the coal supplier. (d) Review by commission.-- (1) If the utility has requested commission approval of its plan, the commission shall review the proposed plan on an expedited basis to determine if the utility's proposed compliance plan submitted under this section is in the public interest. (2) After notice and opportunity for a hearing, the commission shall approve or disapprove the compliance plan within nine months after the plan is filed, provided that approval may be in whole or in part and may be subject to such limitations and qualifications as may be deemed necessary and in the public interest. The commission's decision shall establish that the utility's costs of compliance are recoverable costs of service, provided the costs: (i) are reasonable in amount and prudently incurred as determined in an appropriate rate or other proceeding; and (ii) represent investment in flue gas desulfurization devices, clean coal technologies or similar facilities designed to maintain or promote the use of coal, including facilities which intermittently or simultaneously burn natural gas with coal. (3) Costs established as recoverable under paragraph (2) shall qualify as nonrevenue-producing investment to improve environmental conditions under section 1315 (relating to limitation on consideration of certain costs for electric utilities), provided that any benefits to the utility generated by the sale of allowances under the Clean Air Act shall be flowed through to the utility's ratepayers. (4) The utility shall not be required to refile its plan or to seek additional commission approvals concerning its plan unless the utility's plan is significantly amended or revised. (e) Definition.--As used in this section, the term "Clean Air Act" means Public Law 95-95, 42 U.S.C. § 7401 et seq. and includes the Clean Air Act Amendments (Public Law 101-549, 104 Stat. 2399) approved November 15, 1990. (Apr. 16, 1992, P.L.149, No.27, eff. 60 days) 1992 Amendment. Act 27 added section 530. References in Text. The Department of Environmental Resources, referred to in subsec. (c), was abolished by Act 18 of 1995. Its functions were transferred to the Department of Conservation and Natural Resources and the Department of Environmental Protection.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=66Fetched: 10/16/2026