PRINTER'S NO. 84
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
107
Session of
2017
INTRODUCED BY GODSHALL, BAKER, BARRAR, CUTLER, FARRY, A. HARRIS,
HEFFLEY, PICKETT, WHEELAND AND ZIMMERMAN, JANUARY 23, 2017
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JANUARY 23, 2017
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
providing for recovery of natural gas distribution system
extension costs.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 1330. Recovery of natural gas distribution system extension
costs.
(a) Authority.--
(1) A natural gas distribution company may petition the
commission to approve the establishment of a distribution
system extension charge to provide for the recovery on a full
and current basis through a reconcilable adjustment clause
under section 1307 (relating to sliding scale of rates;
adjustments) of the fixed, which shall consist of
depreciation and pretax return, reasonable and prudent cost
incurred to extend a facility to serve an unserved or
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underserved area.
(2) A natural gas distribution company may seek
authorization from the commission to recover through the
distribution system extension charge the costs of rebates or
buy down expenditures made by the company to reduce upfront
costs of in-house piping and natural gas equipment owned by
the customer.
(b) Petition.--A petition for commission approval of a
distribution system extension charge shall include:
(1) An initial tariff that includes a description of the
types of facility to be constructed, which may include
service lines, and the manner in which the costs will be
recovered through the distribution system extension charge.
(2) Testimony, affidavits, exhibits or other evidence
that demonstrates that a distribution system extension charge
is in the public interest and will facilitate economically
feasible extensions to serve an unserved or underserved area
without unreasonably burdening existing customers of the
natural gas distribution company.
(3) As a part of the initial tariff, a natural gas
distribution company may propose:
(i) The establishment of a customer contribution
amount above which some or all of the costs are to be
recovered through the distribution system extension
charge.
(ii) The establishment of a standard per-mile
extension cost for all extension projects under this
mechanism, with costs in excess of the standard to be
recovered through the distribution system extension
charge.
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(iii) Other mechanisms consistent with the public
interest and the policy of this section.
(4) Following the filing of a petition, the commission
shall, after notice and opportunity to be heard, approve,
modify or reject the distribution system extension charge and
initial tariff. The commission shall hold evidentiary and
public input hearings as necessary to review the petition or
subsequent filings under the approved tariff.
(c) Limitation.--The distribution system extension charge
may not exceed 2.5% of the total amount billed to customers
under the applicable rates of the natural gas distribution
company. Upon petition of the natural gas distribution company,
the commission may grant a waiver of the 2.5% limit if the
commission finds that the waiver is in the public interest.
Section 2. This act shall take effect in 60 days.
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