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CHAPTER 69. GENERAL ORDERS, POLICY STATEMENTS AND
GUIDELINES ON FIXED UTILITIES
FUEL PROCUREMENT POLICIES AND PROCEDURES Sec.
69.1. General.
69.1a. Organization and operation of utility staff involved in fuel procurement.
69.2. Fuel and power planning.
69.3. [Reserved].
69.4. Purchasing procedures.
69.5. Transportation.
69.6. [Reserved].
69.7. [Reserved].
SAFETY AND RELIABILITY GUIDELINES
69.11. Definitions.
69.12. Delivery standards for NGSs.
69.13. Service obligations of the supplier of last resort.
69.14. Obligations of the system operator.
69.15. Ensuring sufficient firm capacity availability.
69.16. Penalties.
69.17. Critical period procedures.
69.18. Communications protocols.
69.19. Operational and capacity councils.
69.2169.27 [Reserved].
COMMISSION POLICY STATEMENT ON ELECTRIC UTILITY
FINANCING OF ENERGY SUPPLY ALTERNATIVES
69.31. Importance of energy supply alternatives.
69.32. Rate treatment for cost of energy supply alternatives.
69.33. Recovery of costs.
69.34. Types of energy supply alternatives.
69.35. Evaluation methodology.
69.36. Performance criteria regarding energy supply alternativesstatement of policy.
69.41. [Reserved].
69.42. [Reserved].
69.43. [Reserved].
69.44. [Reserved].
INCLUSION OF STATE TAXES
AND GROSS RECEIPTS TAXES IN BASE RATES
69.51. Definitions.
69.52. General.
69.53. Zeroing of State tax adjustment surcharge.
69.54. Zeroing of gross receipts tax rider.
69.55. Inclusion of State taxes in base rates.
69.56. Time for compliance.
69.61. [Reserved].
69.62. [Reserved].
69.7169.75 [Reserved].
69.85. [Reserved].
TARIFF PROVISIONS THAT LIMIT THE LIABILITY
OF UTILITIES FOR INJURY OR DAMAGE
AS A RESULT OF NEGLIGENCE OR INTENTIONAL
TORTSSTATEMENT OF POLICY
69.87. Tariff provisions that limit the liability of utilities for injury or damage as a result of negligence or intentional tortsstatement of policy.
DISPOSITION OF COMPLAINTS IN RATE CASES
69.91. Policy.
BUILDING ENERGY CONSERVATION STANDARDS FOR RECEIPT
OF UTILITY SERVICE
69.101. Definitions.
69.102. Scope.
69.103. Utilities to require receipt of compliance certification copy of notice of intent to construct.
69.104. Reliance upon compliance certification copy; effect of reliance.
69.105. Service to certain residential buildings prohibited.
69.106. Record retention.
69.107. Exemptions.
69.121. [Reserved].
69.122. [Reserved].
69.13169.145 [Reserved].
69.15169.168 [Reserved].
POLICY STATEMENT INTERPRETING
TERMS INCLUDED IN 66 PA.C.S. § 1326
69.169. Definitionsstatement of policy.
LINE EXTENSIONS
69.171. [Reserved].
69.181. [Reserved].
POLICY STATEMENT ADDRESSING AFFILIATED
INTEREST ISSUES OF NATURAL GAS MARKETERS
69.191. General.
69.192. Affiliated intereststatement of policy.
UNIFORM STANDARDS FOR BROKERS AND MARKETERS
69.195. Fitness of natural gas marketer or broker (including an LDCs affiliate).
POLICY STATEMENT ON NUCLEAR FUEL
PROCUREMENT GUIDELINES
Sec.
69.201. General.
69.202. Organization and operation of utility staff involved in nuclear fuel procurement.
69.203. Nuclear fuel and power planning.
69.204. Financing of nuclear fuel acquisitions.
69.205. Purchasing procedures.
69.206. Inventory management.
69.207. Nuclear fuel procurement process.
APPLICATION OF AMERICANS WITH DISABILITIES ACT AND UNIVERSAL ACCESSIBILITY ACT
69.221. Application of accessibility and usability standards to pay telephone service providersstatement of policy.
POLICY STATEMENT ON PLAIN LANGUAGE
GUIDELINES
69.251. Plain languagestatement of policy.
POLICY STATEMENT ON CUSTOMER ASSISTANCE
PROGRAMS
69.261. General.
69.262. Definitions.
69.263. CAP development.
69.264. Scope of pilot CAPs.
69.265. CAP design elements.
69.266. Cost recovery.
69.267. Alternative program designs.
CLEAN AIR ACT EMISSIONS ALLOWANCES
69.291. General.
69.292. Definitions.
69.293. Regulatory oversight of emission allowance trading.
69.294. Ratemaking treatment of emission allowances.
69.311. [Reserved].
PUBLIC INPUT HEARINGS IN RATE PROCEEDINGS
69.321. Public input hearings in rate proceedingsstatement of policy.
RECOVERY OF FERC ORDER 636 TRANSITION
COSTSSTATEMENT OF POLICY
69.341. Recovery of transition costs.
69.342. Gas procurement following restructuring of interstate pipeline services.
69.343. Capacity release on interstate gas pipelines.
IMPLEMENTATION OF SFAS 106
69.351. Implementation of Statement of Financial Accounting Standards for Rule No. 106 (SFAS 106)statement of policy.
PENNVEST LOAN OBLIGATIONS FOR WATER AND SEWER COMPANIESSTATEMENT OF POLICY
69.361. General.
69.362. Definitions.
69.363. Treatment of PENNVEST obligations.
69.364. Comparison to 66 Pa.C.S. § 1308 (relating to voluntary changes in rates) filings.
CONSTRUCTION WORK IN PROGRESS
69.371. Ratemaking treatment of construction work in progress (CWIP).
MEDIATION PROCESS
69.391. General.
69.392. Availability of mediation process.
69.393. Assignment and role of mediator.
69.394. Notice.
69.395. Rules.
69.396. Conclusion of mediation.
69.397. Flexibility.
SETTLEMENT GUIDELINES AND PROCEDURES
FOR MAJOR RATE CASESSTATEMENT OF POLICY
69.401. General.
69.402. Prefiling notice guidelines.
69.403. Prefiling discovery guidelines.
69.404. OSA staff review procedures.
69.405. ALJ case management procedures.
69.406. Review of full and partial settlements.
RESIDUAL RATEMAKING FOR AVERAGE SCHEDULE TELEPHONE COMPANIES
69.501. Average schedule telephone companies; residual ratemakingstatement of policy.
OPERATION OF THE TELECOMMUNICATIONS RELAY SERVICE SYSTEM AND RELAY SERVICE FUNDSTATEMENT OF POLICY
69.511. General.
69.512. Timely remittance of revenues.
69.513. Filing of Telecommunications Relay Service (TRS) reports.
SMALL DRINKING WATER SYSTEMSTATEMENT OF POLICY
69.701. Viability of small water systems.
SMALL NONVIABLE WATER AND WASTEWATER SYSTEMSSTATEMENT OF POLICY
69.711. Acquisition incentives.
ACQUISITIONS OF VIABLE WATER AND WASTEWATER SYSTEMSTATEMENT OF POLICY
69.721. Water and wastewater system acquisitions.
DIVERSITY AT MAJOR JURISDICTIONAL UTILITY
COMPANIESSTATEMENT OF POLICY
69.801. General.
69.802. Definitions.
69.803. Guidelines for diversity development.
69.804. Contracting recommendations.
69.805. Program development.
69.806. Minimum improvement levels.
69.807. Subcontracting program.
69.808. External outreach.
69.809. Filings.
UTILITY STOCK TRANSFER UNDER 66 PA.C.S. § 1102(a)(3)STATEMENT OF POLICY
69.901. Utility stock transfer under 66 Pa.C.S. § 1102(a)(3).
LOCAL LAND-USE PLANS AND ORDINANCES
69.1101. Local land-use plans and ordinances in issuing certificates of public convenience.
FACTORS AND STANDARDS FOR EVALUATING LITIGATED AND SETTLED PROCEEDINGS
69.1201. Factors and standards for evaluating litigated and settled proceedings involving violations of the Public Utility Code and Commission regulationsstatements of policy.
GUIDELINES FOR DETERMINING PUBLIC UTILITY STATUSSTATEMENT OF POLICY
69.1401. Guidelines for determining public utility statusstatement of policy.
UNSCHEDULED WATER SERVICE INTERRUPTIONS
AND ASSOCIATED ACTIONS
69.1601. General.
69.1602. Public notification guidelines.
69.1603. Other associated actions.
DEFAULT SERVICE AND RETAIL ELECTRIC MARKETSTATEMENT OF POLICY
69.1801. Scope.
69.1802. Purpose.
69.1803. Definitions.
69.1804. Default service program terms and filing schedules.
69.1805. Electric generation supply procurement.
69.1806. Alternative energy protfolio standard compliance.
69.1807. Competitive bid solicitation processes.
69.1808. Default service cost elements.
69.1809. Interim price adjustments and cost reconciliation.
69.1810. Retail rate design.
69.1811. Rate change mitigation.
69.1812. Information and data access.
69.1813. Rate and bill ready billing.
69.1814. Purchase of receivables.
69.1815. Customer referral program.
69.1816. Supplier tariffs.
69.1817. Retail choice ombudsman.Authority The provisions of this Chapter 69 issued under the Public Utility Code, 66 Pa.C.S. § § 501 and 1307, unless otherwise noted.
Source The provisions of this Chapter 69 adopted April 22, 1977, effective April 23, 1977, 7 Pa.B. 1086, unless otherwise noted.
Cross References This chapter cited in 52 Pa. Code § 41.32 (relating to availability of mediation process).
FUEL PROCUREMENT POLICIES AND PROCEDURES
§ 69.1. General.
(a) Since 66 Pa.C.S. § 1307 (relating to sliding scale of rates; adjustments), enables a utility to pass fuel costs directly to the ratepayers, a utility has the highest degree of responsibility to take aggressive action on behalf of its ratepayers to control fuel costs. A utility should use every means reasonably available to monitor and enforce vendor adherence to all aspects of fuel procurement agreements. In addition to contract adherence, the Commission may exercise its independent right to review whether each utility purchases the lowest cost fuel that meets the necessary standards and specifications, which may include a review to determine if the utility is continually, thoroughly and aggressively searching the fuel market for reasonably priced fuel. The Commission may make constructive suggestions with regard to an individual companys fuel procurement policies and procedures from time to time.
(b) The purpose of § § 69.169.2, 69.4 and 69.5 (relating to fuel procurement policies and procedures) is to establish guidelines that the Commission recommends an electric utility follow in its fuel procurement activities. The Commission realizes that fuel procurement practices of utilities may differ depending on individual circumstances. However, the Commission believes that there are certain common procedures that will result in the lowest reasonable fuel costs. The Commission defines lowest reasonable cost to be fuel purchases that result in the lowest generating costs. This fuel should be consistent with contracted quality, regulatory requirements and prevailing wage rates, and may or may not be the lowest priced fuel.
(c) If a utility believes that an otherwise nonconforming fuel procurement policy will, in the long term, result in lower costs, the utility should submit the details of the policy for review by the Commission prior to implementation.
(d) If it appears, through Commission review, that nonconforming fuel procurement practices have resulted in excessive fuel costs, a utility may be required to demonstrate the reasonableness of the costs.
(e) If the Commission determines after notice and hearing that a utilitys nonconforming fuel procurement policy has resulted in unreasonable fuel costs, the utility shall be required to apply credits against the applicable energy cost rate or to make refunds to its customers.
(f) In order for the Commission to monitor fuel costs properly, a utility should record fuel prices FOB supplier with transportation costs reported separately. For contracts which state only delivered costs, the company should impute transportation costs and report those costs separately.
(g) Sections 69.169.2, 69.4 and 69.5 represent the standard by which the Commission intends to assess a utilitys fuel purchasing policies and procedures. Sections 69.169.2, 69.4 and 69.5 serve as notice to electric utilities of the Commissions expectations with regard to fuel procurement policies and procedures. Utilities should apply § § 69.169.2, 69.4 and 69.5 prospectively in planning fuel purchases. Where provisions of existing contracts are in conflict with § § 69.169.2, 69.4 and 69.5, utilities need not seek to immediately amend the contracts, but should move towards the policies set forth in § § 69.169.2, 69.4 and 69.5 as contracts are modified, renegotiated or extended.
Authority The provisions of this § 69.1 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301 and 1307.
Source The provisions of this § 69.1 amended October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730. Immediately preceding text appears at serial page (33013).
§ 69.1a. Organization and operation of utility staff involved in fuel procurement.
(a) A utility should maintain an appropriate staff to adequately fulfill its responsibility to procure fuel at the lowest reasonable cost. The utility should be prepared to solicit and handle numerous competent bids and investigate these potential sources for ability to fulfill contracts.
(b) A utility should have a detailed organization chart of the personnel involved in fuel procurement, with a key official designated to act as liaison with the Commission. A utility should maintain written job descriptions for personnel, as well as formal policies and procedures pertaining to the fuel procurement process.
(c) Utility personnel in a position to influence fuel procurement decisions should be prohibited from having either direct or indirect ties or affiliations with fuel suppliers. A utility should conduct investigations to insure that personnel have no affiliation.
Authority The provisions of this § 69.1a issued under Public Utility Code,66 Pa.C.S. § § 501, 1301 and 1307.
Source The provisions of this § 69.1a adopted October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730.
Cross References This section cited in 52 Pa. Code § 69.1 (relating to general).
§ 69.2. Fuel and power planning.
(a) A utility should submit to the Commission its long-term generation plans and a statement of how the plans affect fuel purchasing policy and planning. A plan should be submitted each time there are revisions. A utility should adopt fuel purchasing strategies that provide lowest reasonable cost with maximum flexibility. It should strive to stimulate competition by purchasing from numerous suppliers.
(b) [Reserved].
Authority The provisions of this § 69.2 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301 and 1307.
Source The provisions of this § 69.2 amended October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730. Immediately preceding text appears at serial pages (33013) to (33014).
Cross References This section cited in 52 Pa. Code § 69.1 (relating to general).
§ 69.3. [Reserved].
Source The provisions of this § 69.4 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301 and 1307.
Source The provisions of this § 69.4 amended October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730. Immediately preceding text appears at serial pages (33014) to (33016).
Cross References The provisions of this § 69.5 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301 and 1307.
Source The provisions of this § 69.5 amended October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730. Immediately preceding text appears at serial page (33017).
Cross References This section cited in 52 Pa. Code § 69.1 (relating to general).
§ 69.6. [Reserved].
Source The provisions of this § 69.6 reserved October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730. Immediately preceding text appears at serial page (33017).
§ 69.7. [Reserved].
Source The provisions of this § 69.7 reserved October 18, 1985, effective October 19, 1985, 15 Pa.B. 3730. Immediately preceding text appears at serial pages (33017) to (33018).
SAFETY AND RELIABILITY GUIDELINES
Source The provisions of these § § 69.1169.19 adopted December 8, 2000, effective December 9, 2000, 30 Pa.B. 6358, unless otherwise noted.
§ 69.11. Definitions.
The following words and terms, when used in this section and § § 69.1269.19, have the following meanings, unless the context clearly indicates otherwise:
Act66 Pa.C.S. § § 22012212 (relating to Natural Gas Competition Act).
Design day conditionsThe extreme weather conditions that an NGDC uses to project customer requirements.
Essential human needs retail gas customerCustomers consuming gas service in buildings where persons normally dwell including apartment houses, dormitories, hotels, hospitals and nursing homes, as well as the use of natural gas by sewage plants. (See § 69.22 (relating to definitions).)
Firm capacityAssigned capacity or comparable capacity that can be called upon to serve customer requirements on a reliable basis even under design day conditions.
Gas supply assetsIncludes all sources and components associated with the acquisition and delivery of natural gas.
Interruptible gas serviceIndicates natural gas service that can be interrupted under the terms and conditions specified by tariff or contract.
Interstate capacityServices provided by a Federal Energy Regulatory Commission-regulated entity, including pipeline transportation, storage, peaking, balancing and no-notice services.
NGDCNatural gas distribution company.
NGSNatural gas supplier.
Operational flow orderAn order issued by an NGDC to protect the safe and reliable operation of its gas system, either by restricting service or requiring affirmative action by shippers.
Reliability planA plan provided for in 66 Pa.C.S. § 1317(c) (relating to regulation of natural gas costs).
Residential retail gas customerAs defined in the tariff of each NGDC.
SOLRSupplier of last resort.§ 69.12. Delivery standards for NGSs.
(a) NGSs should deliver natural gas supplies under the terms of service specified in NGDC tariffs. Failure to deliver natural gas supplies in accordance with the tariffs may subject NGSs to penalties under procedures specified in the tariffs or revocation of licenses, or both. (See section 2203(12) of the act (relating to standards for restructuring of natural gas utility industry).) The NGSs may serve customers with different quality of service requirements, as permitted under the act and applicable NGDC tariffs.
(b) NGSs should utilize firm capacity sufficient to meet the requirements of their firm service customers except to the extent otherwise provided in each NGDCs reliability plan. Service to any essential human needs retail gas customer lacking installed and operable alternative fuel capability and any residential retail gas customer should be firm service.
(c) NGSs should warrant to the NGDC that they have sufficient firm capacity to meet the requirements of the essential human needs retail gas customers, as defined in § 69.11 (relating to definitions), and should describe the characteristics of any firm capacity to the NGDC. The NGDC should take commercially reasonable steps to attempt to verify that the firm capacity contract rights exist. The failure or inability of an NGDC to verify the existence of the contract rights using commercially reasonable steps does not relieve an NGS from any liability for failing to deliver gas, or subject the NGDC to any liability resulting from the NGSs failure to deliver.
(d) Natural gas service to interruptible gas service customers should be interrupted, pursuant to the terms and conditions of the NGDCs tariff, if the safety and reliability of firm service would be impeded by the interruptible customers continued use of natural gas.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions); and 52 Pa. Code § 69.19 (relating to operational and capacity councils).
§ 69.13. Service obligations of the supplier of last resort.
(a) The SOLR is the NGDC or an NGS, which has been designated by the Commission under section 2207 of the act (relating to obligations to serve) to provide SOLR service. Each of the following services will be provided by an SOLR:
(1) Natural gas supply services to those customers who have not chosen an alternative NGS or who choose to be serviced by their SOLR.
(2) Natural gas supply services to those customers who are refused supply service from an NGS.
(3) Natural gas supply services to those customers whose NGS has failed to deliver its requirements.
(b) A customer should not have more than one SOLR designated for any of the services in subsection (a).
(c) An SOLR under subsection (a)(3) should provide sufficient supplies as to quantity, quality, pressure and location to meet the operational reliability requirements of the NGDCs system including a failure of one or more NGSs to do one of the following:
(1) Supply natural gas to their retail gas customers in conformance with their contractual obligations to the customers.
(2) Satisfy applicable reliability standards and obligations.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions); and 52 Pa. Code § 69.19 (relating to operational and capacity councils).
§ 69.14. Obligations of the system operator.
An NGDC should, in addition to performing any other roles such as selling natural gas, function as the system operator in ensuring that its distribution system is designed, constructed, managed and operated to safely and reliably receive and deliver natural gas throughout its facilities to customers connected to them. An NGDC, in performing its responsibilities as a system operator, may retain or acquire gas supply assets as required to perform its system operator functions in a manner which permits it to operate its system in a safe and reliable manner. The identity of the gas supply assets utilized by the NGDC to perform its system operator function should be reviewed by the Commission annually in the NGDCs Section 1307(f) proceeding as part of the NGDCs reliability plan.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions); and 52 Pa. Code § 69.19 (relating to operational and capacity councils).
§ 69.16. Penalties.
Nonperformance penalties should be established at levels sufficiently high to deter NGSs from failing to comply with their delivery obligations.
(1) The penalties should be independent of and in addition to the costs incurred by the NGDC, or, in the alternative, the supplier of last resort, for replacement gas supplies, including pipeline penalties.
(2) NGDCs may take into consideration the operational costs and other liabilities NGDCs may be exposed to by virtue of an NGSs failure to deliver in establishing penalties.
(3) Failure of an NGS to honor delivery obligations may lead to disqualification from NGDC programs, suspension or revocation of the NGSs license.
(4) The disqualification, suspension or revocation should not relieve the NGS of its obligations to pay all penalties and costs incurred by the NGDC as a result of the NGSs failure to deliver.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions); 52 Pa. Code § 69.18 (relating to communications protocols); and 52 Pa. Code § 69.19 (relating to operational and capacity councils).
§ 69.18. Communications protocols.
Communications protocols are tools by which NGDCs, NGSs and other parties, define and describe the type, form and frequency of communications necessary to successfully fulfill customer requirements in an operating environment of increased retail choice. Effective and consistent communications are critical to reduce errors, and provide all entities with the information necessary to properly fulfill their respective responsibilities, both in normal and emergency circumstances. A communications protocol should include at minimum, in addition to the specific requirements in § 69.17(b)(2) and (3) (relating to critical period procedures) the following:
(1) A detailing of contact data for both NGDC and NGS personnel responsible for the various aspects of customer contact, gas deliveries and distribution, including mechanisms for ensuring that the data is kept current for all parties.
(2) The specification that regular meetings will be held, with joint agenda development responsibilities, including the potential scheduling of operational conference calls.
(3) Communications, to the extent not otherwise set forth in the NGDCs tariff, associated with the NGDCs procedures for customer enrollment, billing arrangements, daily or monthly delivery quantity determination, nominations (monthly, daily, intra-day, and weekend), balancing options, reconciliation or true-ups, cash-outs and electronic data exchange requirements.
(d) Procedures utilized by NGDCs to inform NGSs of changes to NGS delivered supplies or customer demand, or both, required to assure system reliability, both daily and seasonal, and to avoid pipeline penalties.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions).
§ § 69.2169.27. [Reserved].
Source The provisions of these § § 69.2169.27 adopted October 9, 1976, effective October 10, 1976, 6 Pa.B. 2513; reserved December 14, 2001, effective December 15, 2001, 31 Pa.B. 6800. Immediately preceding text appears at serial pages (271646) to (271650), (201989) to (201990) and (263695) to (263696).
Notes of Decisions Hospital
When based on consideration of the technical and economic feasibility of conversion to alternate fuels, it is reasonable to classify a hospital, two of whose three boilers have a dual-fire capability and which has an 8000 gallon on-site fuel-oil storage capacity, as a 99% Priority 6 customer. Montefiore Hospital Association v. Pennsylvania Public Utility Commission, 421 A.2d 481 (Pa. Cmwlth. 1980).
High Rise Apartment
A high rise apartment building may be classified as Priority 6, since the operator of the building is the customer of the gas company and, in turn, furnishes natural gas to its tenants, and since the building could not be classified as Priority 1 and also could not be classified as industrial. Housing Authority v. Pennsylvania Public Utility Commission, 406 A.2d 591 (Pa. Cmwlth. 1979).
Overrun Revenue
The Commission did not err or abuse its discretion in including overrun revenue in a purchased gas cost proceeding under section 1307(f), 66 Pa.C.S. § 1307. Because the utilitys core customers, rather than the utilitys shareholders, bore the risk of service interruption, then the utilitys core customers, rather than its shareholders, should receive the benefit of the overrun revenues. UGI Utilities v. Pennsylvania Utility Commission, 673 A.2d 43 (Pa. Cmwlth. 1996).
Validity of Regulation
The penalty provisions of 52 Pa. Code § 69.25 for unauthorized overruns of allocated volumes are rationally related to enforcement of the Commissions natural gas curtailment scheme and are not arbitrary. Montefiore Hospital Association v. Pennsylvania Public Utility Commission, 421 A.2d 481 (Pa. Cmwlth. 1980).
COMMISSION POLICY STATEMENT ON ELECTRIC UTILITY
FINANCING OF ENERGY SUPPLY ALTERNATIVES
§ 69.31. Importance of energy supply alternatives.
The Commission believes that energy supply alternatives such as conservation, load management, and alternate energy supply products are viable supply options which must be considered by the jurisdictional electric utilities as alternatives to capacity expansion and to reduce operating costs.
Authority The provisions of this § 69.31 issued under the Public Utility Code, 66 Pa.C.S. § 308(c).
Source The provisions of this § 69.31 adopted October 21, 1983, effective October 22, 1983, 13 Pa.B. 3222.
§ 69.32. Rate treatment for cost of energy supply alternatives.
Reasonable and prudently incurred costs associated with the development, management, and operation of a cost effective alternative to energy supply shall be afforded rate treatment at least on a par with any other supply option.
Authority The provisions of this § 69.32 issued under the Public Utility Code, 66 Pa.C.S. § 308(c).
Source The provisions of this § 69.32 adopted October 21, 1983, effective October 22, 1983, 13 Pa.B. 3222.
§ 69.33. Recovery of costs.
Subject to Commission approval, electric utilities may request recovery of costs of energy supply alternatives by methods such as treating them as normal operating expenses, amortizing them over several years, capitalizing them for inclusion in rate base, or any combination thereof. Based upon Commission policy and recent Commission actions, the utilities shall determine how they will design their rate filings to recover these costs.
Authority The provisions of this § 69.33 issued under the Public Utility Code, 66 Pa.C.S. § 308(c).
Source The provisions of this § 69.33 adopted October 21, 1983, effective October 22, 1983, 13 Pa.B. 3222.
§ 69.34. Types of energy supply alternatives.
Energy supply alternatives may include but are not limited to conservation programs, load reducing or load shifting programs, and alternate energy supply projects.
Authority The provisions of this § 69.34 issued under the Public Utility Code, 66 Pa.C.S. § 308(c).
Source The provisions of this § 69.34 adopted October 21, 1983, effective October 22, 1983, 13 Pa.B. 3222.
§ 69.35. Evaluation methodology.
A common evaluation methodology, developed by the Commission with the cooperation and assistance of the utilities, will be utilized to determine whether an energy supply alternative may be considered cost effective.
Authority The provisions of this § 69.35 issued under the Public Utility Code, 66 Pa.C.S. § 308(c).
Source The provisions of this § 69.36 adopted March 10, 1989, effective March 11, 1989, 19 Pa.B. 1095.
§ 69.41. [Reserved].
Source The provisions of this § 69.41 adopted March 4, 1977, effective March 5, 1977, 7 Pa.B. 577; reserved March 29, 1996, effective March 30, 1996, 26 Pa.B. 1377. Immediately preceding text appears at serial page (201996).
§ 69.42. [Reserved].
Source The provisions of this § 69.42 adopted March 4, 1977, effective March 5, 1977, 7 Pa.B. 577; reserved June 29, 1984, effective June 30, 1984, 14 Pa.B. 2250. Immediately preceding text appears at serial pages (33027) to (33028).
§ 69.43. [Reserved].
Source The provisions of this § 69.43 adopted March 4, 1977, effective March 5, 1977, 7 Pa.B. 577; reserved March 29, 1996, effective March 30, 1996, 26 Pa.B. 1377. Immediately preceding text appears at serial pages (201996) to (201997).
§ 69.44. [Reserved].
Source The provisions of this § 69.44 adopted March 4, 1977, effective March 5, 1977, 7 Pa.B. 577; reserved June 29, 1984, effective June 30, 1984, 14 Pa.B. 2250. Immediately preceding text appears at serial pages (33028) and (66641).
INCLUSION OF STATE TAXES AND GROSS RECEIPTS TAXES IN BASE RATES
§ 69.51. Definitions.
The following words and phrases, when used in § § 69.5169.56, have the following meanings, unless the context clearly indicates otherwise:
Gross receipts tax riderThe separate rider which certain gas utilities impose on customer bills at a rate of 2.04% to collect the 20 mills gross receipts tax which was in effect prior to January 1, 1970. On that date the gross receipts tax was increased by 25 mills, which additional amount was included in the State tax adjustment surcharge.
State tax adjustment surchargeThe surcharge implemented under the State Tax Adjustment Procedure Order of the Commission dated March 10, 1970, as amended, which permits utilities under its jurisdiction to recover portions of the Capital Stock Tax, Corporate Net Income Tax and Gross Receipts Tax and the Public Utility Realty Tax through a surcharge on rates charged to customers.
Authority The provisions of this § 69.51 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301, 1302, 1504 and 1509.
Source The provisions of this § 69.51 adopted January 8, 1988, effective January 9, 1988, 18 Pa.B. 185.
Cross References This section cited in 52 Pa. Code § 54.92 (relating to definitions); 52 Pa. Code § 54.94 (relating to recovery of charges in State tax liability); and 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge).
§ 69.52. General.
Unless necessitated by a change in the Pennsylvania Capital Stock Tax, Corporate Net Income Tax, Gross Receipts Tax or Public Utility Realty Tax which would increase or decrease rates in a manner governed by the Commissions State Tax Adjustment Procedure, 44 Pa. P.U.C. 545 (1970), a utility which has a State tax adjustment surcharge or gross receipts tax rider shall maintain its surcharge and rider rates at 0%.
Authority The provisions of this § 69.52 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301, 1302, 1504 and 1509.
Source The provisions of this § 69.52 adopted January 8, 1988, effective January 9, 1988, 18 Pa.B. 185.
(Editors Note: The following Exhibit is codified under 1 Pa. Code § 3.1(a)(9) (relating to contents of Code) as a document which the Legislative Reference Bureau finds to be general and permanent in nature.)
Exhibit A
STATE TAX ADJUSTMENT PROCEDURE
BY THE COMMISSION, March 10, 1970:
By enactments at the end of 1969 and during February of 1970, the Legislature has retroactively increased the rates of three types of taxes paid by public utilities, and has imposed a new tax upon real estate of public utilities, as follows:
Former Rates Present Rates Increase Capital Stock Tax 6 Mills 7 Mills 1 Mill Corporate Net Income Tax 7.5% 12% 4.5% Gross Receipts Tax 20 Mills 45 Mills 25 Mills Realty Tax None 30 Mills 30 Mills It should be noted here that the increase of 25 mills in the gross receipts tax, which will produce the greatest tax revenues, was enacted as a temporary tax effective for the period January 1, 1970 to September 1, 1971. Prescribed assessment procedures for the realty tax may cause the relative effective rate for each utility to fluctuate in subsequent years. It is also possible that predicted tax reform may modify or eliminate these recent tax increases.
Public utilities under our jurisdiction are subject to regulation, which permits them to recover, in the form of rates, their legitimate costs, plus a fair return which compensates investors for the use of the funds they have provided for the construction of utility facilities.
The new and increased taxes constitute a legitimate cost, and, unless compensated for, will reduce the return of public utilities at a time when many of them, particularly the electric and telephone groups, are engaged in unprecedented construction programs in order to assure adequate facilities for service to customers. These large construction programs must be financed by attracting funds from investors; and such attraction will be difficult in many instances, and impossible in others, if the returns of the public utilities are permitted to decline appreciably as a result of these increases in taxes. Unless relief is granted, there could be serious deterioration of service to the public.
The public utilities are deluging us with requests to preserve their present returns by filing individually for rate increases which are retroactive because the new taxes are retroactive and any delay for rate relief would make the impairment of return inescapable. We have 620 electric, gas, water and telephone utilities, as well as many utilities of other types, under our jurisdiction and to attempt to give necessary and prompt relief on an individual basis would be an impossibility.
A more sensible and practicable approach is to temporarily allow those public utilities which are affected by the increased taxes to recover, prospectively but not retroactively, such costs by a surcharge on service furnished after the charge is approved; to study various long-term procedures; to compute the surcharge so as to prevent overcompensation for the increased costs; to provide for subsequent modification of the surcharge to reflect any elimination or modification of these tax increases; and to later review each public utilitys situation to enable us to require refunds or other remedies to customers in any appropriate case; THEREFORE,
IT IS ORDERED:
A. Every public utility which has been subjected to new or increased taxes enacted by the General Assembly of 1969-1970, and proposing to impose a surcharge to recover such taxes, shall compute the surcharge in the following manner and submit the computation to this Commission:
1. The one-mill increase in the capital stock and franchise tax rate shall be applied to the most recently settled valuation placed on the utility for that tax.
2. For the 4 1/2% increase in the corporate net income tax rate, add together (a) the Pennsylvania corporate net income tax liability for the most recently completed calendar year and (b) the net income, as defined in Section 2 of the Corporate Net Income Tax Act, upon which that liability was computed; and multiply the resulting total by (c) the factor 4.186%. (Note: This factor is the increase of 3.738% in the effective tax rate, divided by .983 which is the complement of the effective tax rate; and this factor shall be changed if the effective tax rate changes.)
3. The new 30-mill Public Utility Realty Tax shall be applied to the utilitys State taxable value (as defined in section 2(d) of the tax act) at the end of the most recently completed calendar year.
4. For any utility subject to the gross receipts tax (act of 1889), the 25-mill increase in the gross receipts tax rate shall be applied to the gross receipts tax base for the most recently completed calendar year.
5. Items 1, 2, 3, and 4 where applicable, shall be totaled.
6. For any public utility subject to the gross receipts tax, the total of item 5 shall be divided by a factor which is the complement of the gross receipts tax rate (such factor being .955 as of the date of this order).
7. The total of item 5 for any utility not subject to the gross receipts tax, and the quotient of item 6 for any utility subject to such tax, shall be divided by the utilitys gross intrastate operating revenues derived from service under rates subject to the jurisdiction of this Commission for the most recently completed calendar year, exclusive of the revenues produced by the surcharge permitted by Section A. The quotient of such division shall be expressed as a percentage.
8. If the utility shall have increased or decreased its rates under this Commissions jurisdiction during or after the most recently completed calendar year, it shall include in its computation the appropriate adjustments to items 2, 4, 5, 6, and 7, as if such increased or decreased rates had been in effect for all of such year.
9. The surcharge imposed shall not exceed the percentage determined by item 7, subject to the adjustments prescribed by item 8.
10. Any public utility which, prior to the effective date of its initial surcharge permitted by this order, shall have placed new rates in effect, or has filed a proposed rate increase, which include any compensation for the tax increases referred to in section A, shall adjust those rates or filings to eliminate such compensation, and instead incorporate those increases in the surcharge permitted by this order as prescribed by section A.
B. Every tariff or supplement imposing such surcharge shall provide that the utility will recompute the surcharge, using the elements prescribed by section A:
1. Whenever any of the tax rates referred to in section A is changed, in which case the recomputation shall take into account the changed tax rate.
2. Whenever the utility makes effective increased or decreased rates under this Commissions jurisdiction, in which case the recomputation shall take into account the adjustments prescribed by section A-8.
3. And on March 31, 1971, and each year thereafter.
C. Every tariff or supplement imposing such surcharge shall also provide that every recomputation prescribed by section B shall be submitted to this Commission within ten days after the occurrence of the event or date which occasions such recomputation; and that if the recomputed surcharge is less than the one then in effect the utility will, and if the recomputed surcharge is more than the one then in effect the utility may, accompany such recomputation with a tariff or supplement to reflect such recomputed surcharge.
D. Every tariff or supplement filed pursuant to this order shall carry an effective date which shall be ten days after its filing with this Commission, and be applicable for service rendered on or after the effective date.
E. Nothing in this order shall be deemed to preclude this Commission from investigating the financial affairs of any utility and, in appropriate cases, ordering refunds or other proper remedies for its customers. This order is intentionally couched in permissive rather than mandatory language, to preclude the possibility that any surcharge imposed hereunder is a Commission-made rate.
Cross References This section cited in 52 Pa. Code § 54.94 (relating to recovery of changes in State tax liability); 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge); and 52 Pa. Code § 69.51 (relating to definitions).
§ 69.53. Zeroing of State tax adjustment surcharge.
A fixed service utility which has a State tax adjustment surcharge shall roll revenues collected through the surcharge into base rates to set the surcharge rate at 0%.
Authority The provisions of this § 69.53 issued under Public Utility Code,66 Pa.C.S. § 501, 1301, 1302, 1504 and 1509.
Source The provisions of this § 69.53 adopted January 8, 1988, effective January 9, 1988, 18 Pa.B. 185.
Cross References This section cited in 52 Pa. Code § 54.94 (relating to recovery of changes in State tax liability); 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge); 52 Pa. Code § 69.51 (relating to definitions); and 52 Pa. Code § 69.55 (relating to inclusion of State taxes in base rates).
§ 69.54. Zeroing of gross receipts tax rider.
A fixed service utility which has a gross receipts tax rider shall roll revenues collected through the rider into base rates to set the rider rate at 0%.
Authority The provisions of this § 69.54 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301, 1302, 1504 and 1509.
Source The provisions of this § 69.54 adopted January 8, 1988, effective January 9, 1988, 18 Pa.B. 185.
Cross References This section cited in 52 Pa. Code § 54.94 (relating to recovery of changes in State tax liability); 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge); 52 Pa. Code § 69.51 (relating to definitions); and 52 Pa. Code § 69.55 (relating to inclusion of State taxes in base rates).
§ 69.55. Inclusion of State taxes in base rates.
Compliance with § 69.53 (relating to zeroing of State tax adjustment surcharge) or § 69.54 (relating to zeroing of gross receipts tax rider) shall be accomplished in one of the following manners:
(1) Rate case method. If a utility has on file a State tax adjustment surcharge or gross receipts tax rider at a rate other than zero, the State tax adjustment surcharge and gross receipts tax rider shall be zeroed and the tax expense recovered by the surcharge and rider shall be rolled into base rates in the next general rate increase filed by the utility. If the utility files a cost of service study with its proposed rate increase, the tax expense previously recovered through the surcharge and rider shall be allocated to the various classes of service in a manner consistent with the cost of service study. If a cost of service study is not provided with the rate filing, the surcharge and rider revenues shall be rolled into base rates by applying the same percentage rate to each class of service so that there will be no effective change in total revenues recovered from each service classification as a result of the roll-in.
(2) Nonrate case method. The State tax adjustment surcharge and gross receipts tax rider shall be zeroed, and the tax expenses recovered through application of the surcharge and rider shall be rolled into base rates by filing a tariff or tariff supplement and supporting data on 60-days statutory notice to the Commission. The transfer of revenues to base rates shall be accomplished so that there will be no effective change in total revenues recovered from each service classification as a result of the roll-in. The supporting data shall include calculations showing the development of the new tariff rates as well as the revenues which they will produce on an annual basis. Customers shall be advised of the roll-in of the surcharge and rider revenues by bill insert to be mailed during the normal monthly or quarterly billing cycle.
Authority The provisions of this § 69.55 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301, 1302, 1504 and 1509.
Source The provisions of this § 69.55 adopted January 8, 1988, effective January 9, 1988, 18 Pa.B. 185.
Cross References This section cited in 52 Pa. Code § 54.94 (relating to recovery of changes in State tax liability); 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge); and 52 Pa. Code § 69.51 (relating to definitions).
§ 69.56. Time for compliance.
Tariff filings effectuating the zeroing of the State tax adjustment surcharge and gross receipts tax rider shall be submitted to the Commission by January 9, 1990, or thereafter, within 24 months of a change in the State tax adjustment surcharge or gross receipts tax rider which causes either to be set at a rate other than zero.
Authority The provisions of this § 69.56 issued under Public Utility Code,66 Pa.C.S. § § 501, 1301, 1302, 1504 and 1509.
Source The provisions of this § 69.56 adopted January 8, 1988, effective January 9, 1988, 18 Pa.B. 185.
Cross References This section cited in 52 Pa. Code § 54.94 (relating to recovery of changes in State tax liability); 52 Pa. Code § 54.97 (relating to State tax adjustment surcharge); and 52 Pa. Code § 69.51 (relating to definitions).
§ 69.61. [Reserved].
Source The provisions of this § 69.61 adopted August 3, 1979, effective July 27, 1979, 9 Pa.B. 2534; reserved March 29, 1996, effective March 30, 1996, 26 Pa.B. 1377. Immediately preceding text appears at serial pages (202002) to (202003).
§ 69.62. [Reserved].
Source The provisions of this § 69.62 adopted August 24, 1979, effective one week from the mailing date of serving the utilities, 9 Pa.B. 2891; reserved March 29, 1996, effective March 30, 1996, 26 Pa.B. 1377. Immediately preceding text appears at serial page (202003).
§ § 69.7169.75. [Reserved].
Source The provisions of these § § 69.7169.74 adopted October 9, 1981, effective October 10, 1981, 11 Pa.B. 3514; reserved March 29, 1996, effective March 30, 1996, 26 Pa.B. 1377. Immediately preceding text appears at serial pages (202003) to (202006).
§ 69.85. [Reserved].
Source The provisions of this § 69.85 adopted May 18, 1984, effective May 19, 1984, 14 Pa.B. 1713; reserved March 17, 2000, effective March 6, 1999, 30 Pa.B. 1548. Immediately preceding text appears at serial page (255447).
TARIFF PROVISIONS THAT LIMIT THE LIABILITY OF UTILITIES FOR INJURY OR DAMAGE AS A RESULT OF NEGLIGENCE OR INTENTIONAL TORTSSTATEMENT OF POLICY
§ 69.87. Tariff provisions that limit the liability of utilities for injury or damage as a result of negligence or intentional tortsstatement of policy.
The Commission, after review of applicable State law, and on consideration of the various policy considerations relative to the inclusion in tariffs of provisions which limit the liability of utilities for injury or damages as a result of negligence or intentional torts, finds that State law permits utilities to limit their liability for interruption or cessation of service. If a utility seeks to place the language in its tariff, a tariff filing should be made under section 1308 of the code (relating to voluntary changes in rates), and should include a company-specific dollar amount for the proposed limitation and work papers to substantiate the dollar amount. A copy of the tariff filing should be served on the Office of Consumer Advocate and on the Office of Small Business Advocate.
Source The provisions of this § 69.87 adopted April 23, 1999, effective April 24, 1999, 29 Pa.B. 2147.
DISPOSITION OF COMPLAINTS IN RATE CASES
§ 69.91. Policy.
(a) In rate cases where either an option order or a settlement petition is approved by the Commission, there may arise a problem of the prompt resolution of any outstanding complainant where the complaint does not acquiesce to the approved option or settlement and, instead, elects to pursue the outstanding complaint. Oftentimes resolution of the outstanding complaint does not occur within the statutory suspension period, but rather extends well beyond the period required to decide a rate case.
(b) The Commission believes that lengthy and avoidable delays in the disposition of consumer complaints in rate cases which are optioned or settled undermine public trust in our rate setting process. Further, delay makes the administration of any refund found appropriate, should the complainant ultimately prevail on the merits, more difficult.
(c) Therefore, to the extent practicable, it is the policy of the Commission to:
(1) Require in any option order or order approving a settlement petition, that the Office of Administrative Law Judge proceed with hearings on any outstanding complaint, where desired by the complainant, on a schedule that would provide the Commission with a recommended decision in sufficient time for a final Commission order within the statutory suspension period which would have applied had the case not been optioned or settled; and
(2) Issue a final Commission order on any outstanding complaint, where desired by the complainant, within the statutory suspension which would have applied had the case not been optioned or settled.
Authority The provisions of this § 69.91 issued under the Public Utility Code, 66 Pa.C.S. § § 501, 703 and 1308.
Source The provisions of this § 69.91 adopted April 8, 1983, effective April 9, 1983, 13 Pa.B. 1258.
BUILDING ENERGY CONSERVATION STANDARDS FOR RECEIPT
OF UTILITY SERVICE
§ 69.101. Definitions.
The following words and terms, when used in § § 69.10169.107, have the following meanings, unless the context clearly indicates otherwise:
ActThe Building Energy Conservation Act (35 P. S. § § 7201.1017201.602).
AdditionAn addition to an existing building. See § 69.102 (relating to scope).
Building energy conservation standardsThe standards promulgated by the Department at 12 Pa. Code Chapter 147 (relating to building energy conservation standards).
Compliance certification copyThe part of the notice of intent to construct returned by the Department or municipality after receipt and processing of the notice of intent to construct, which bears the ID number assigned to the notice of intent to construct by the Department or municipality.
DepartmentThe Department of Community Affairs of the Commonwealth.
MunicipalityA city, borough, incorporated town, township or home rule municipality which has elected to administer the act under section 501 of the act (35 P. S. § 7201.501).
Notice of intent to constructThe notice required to be filed with the Department, or a municipality, under section 306 of the act (35 P. S. § 7201.306).
PersonIndividuals, partnerships, associations, sole proprietorships, companies, corporations and their lessees, assignees, trustees, receivers, executors, administrators or other successors in interest.
Public utilityPersons or corporations in this Commonwealth owning or operating equipment or facilities for producing, generating, transmitting, distributing or furnishing electricity to or for the public for compensation for any purpose. The term does not include the following:(i) A generator or producer of electricity not engaged in distributing the electricity directly to the public for compensation.
(ii) A person not otherwise a public utility who furnishes service only to himself.
(iii) A bona fide cooperative association which furnishes services only to its stockholders or members on a nonprofit basis.
RenovationThe rehabilitation of an existing building which requires more than 25% of the gross floor area or volume of the entire building to be rebuilt. Cosmetic work, such as painting, wall covering, wall paneling, floor covering and suspended ceiling work is not required to be included. Sections 69.10169.107 apply to the portion of the building being renovated and not to the entire building.
Residential buildingA building as defined in section 103 of act (35 P. S. § 7201.103), and renovations thereto, the actual construction of which commenced after March 19, 1986, and which is arranged for the use of one or two family dwelling units, and rowhouses, townhouses and garden apartment construction not exceeding three stories in height used for residential purposes, whenever each unit has its own individual and self-supporting heating, ventilating or air conditioning system.
Authority The provisions of this § 69.101 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.101 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial pages (90049) to (90051).
Cross References This section cited in 52 Pa. Code § 69.102 (relating to scope).
§ 69.102. Scope.
(a) Sections 69.10169.107 apply to all applications for electric service to or for residential buildings received by a public utility after March 19, 1986.
(b) Sections 69.10169.107 apply to the portion of the building which is being added and not to the entire building.
Authority The provisions of this § 69.102 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.102 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial page (90051).
Cross References This section cited in 52 Pa. Code § 69.101 (relating to definitions).
§ 69.103. Utilities to require receipt of compliance certification copy of notice of intent to construct.
Except as provided in § 69.107 (relating to exemptions), a public utility, prior to furnishing electric service to or for a residential building, shall require that the compliance certification copy be submitted to it by the person requesting service to or for the residential building. A public utility shall require that the compliance certification copy be submitted not later than the date on which electric service to or for a residential building is provided by the utility.
Authority The provisions of this § 69.103 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.103 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial page (90051).
Cross References This section cited in 52 Pa. Code § 69.101 (relating to definitions); 52 Pa. Code § 69.102 (relating to scope); and 52 Pa. Code § 69.107 (relating to exemptions).
§ 69.104. Reliance upon compliance certification copy; effect of reliance.
(a) The receipt by a public utility of the compliance certification copy constitutes conclusive evidence to the utility that the residential building, for which electric service has been requested, has been or will be constructed in compliance with the building energy conservation standards. Public utilities shall rely absolutely on the compliance certification copy in furnishing electric service to or for a residential building, and no public utility, which is in receipt of the compliance certification copy may conduct an audit, examination or inspection of the residential building for the purpose of determining compliance with the building energy conservation standards.
(b) The furnishing, rendering or supplying of electric service to or for a residential building by a public utility, in reliance upon the compliance certification copy may not constitute a certification or determination by the utility that the residential building has been constructed in compliance with the building energy conservation standards.
Authority The provisions of this § 69.104 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.104 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial pages (90051) and (95685).
Cross References This section cited in 52 Pa. Code § 69.101 (relating to definitions); 52 Pa. Code § 69.102 (relating to scope); and 52 Pa. Code § 69.107 (relating to exemptions).
§ 69.105. Service to certain residential buildings prohibited.
Except as provided in § 69.107 (pertaining to exemptions), no public utility may furnish electric service to a residential building unless it has first received the compliance certification copy.
Authority The provisions of this § 69.105 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.105 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial page (95685).
Cross References This section cited in 52 Pa. Code § 69.101 (relating to definitions); 52 Pa. Code § 69.102 (relating to scope); and 52 Pa. Code § 69.107 (relating to exemptions).
§ 69.106. Record retention.
A public utility shall be required to retain the compliance certification copy which is submitted to it for at least 2 years. If a public utility uses data processing equipment to record and maintain information derived from the compliance certification copy, the utility may not be required to retain the compliance certification copy.
Authority The provisions of this § 69.106 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.106 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial page (95685).
Cross References This section cited in 52 Pa. Code § 69.101 (relating to definitions); 52 Pa. Code § 69.102 (relating to scope); and 52 Pa. Code § 69.107 (relating to exemptions).
§ 69.107. Exemptions.
(a) A public utility is exempt from § § 69.10369.106 (relating to utilities to require receipt of compliance certification copy of notice of intent to construct; reliance upon compliance certification copy; effect of reliance; service to certain residential buildings prohibited; and record retention), for an application for electric service to or for a residential building which is located in a municipality which has elected under sections 501 and 502 of the act (35 P. S. § § 7201.501 and 7201.502) to administer the act and which requires that a notice of intent to construct be filed with the municipality prior to or at the time that a building permit is applied for.
(b) A public utility is exempt from § § 69.10369.106, if in the utilitys judgment, strict compliance may jeopardize the public health or safety or impose an undue hardship. In this event, the utility shall notify the Department or the municipality, in writing, of the exemption.
Authority The provisions of this § 69.107 issued under Public Utility Code,66 Pa.C.S. § § 308, 501, 1501 and 1704; amended under Public Utility Code,66 Pa.C.S. § § 308, 331, 501, 1501 and 1704.
Source The provisions of this § 69.107 adopted April 20, 1984, effective July 20, 1984, 14 Pa.B. 1393; amended January 23, 1987, effective January 24, 1987, 17 Pa.B. 389. Immediately preceding text appears at serial pages (95685) to (95686).
Cross References This section cited in 52 Pa. Code § 69.101 (relating to definitions); 52 Pa. Code § 69.102 (relating to scope); 52 Pa. Code § 69.103 (relating to utilities to require receipt of compliance certification copy of notice of intent to construct); and 52 Pa. Code § 69.105 (relating to service to certain residential buildings prohibited).
§ 69.121. [Reserved].
Source The provisions of this § 69.121 adopted December 14, 1984, effective December 15, 1984, 14 Pa.B. 4514; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (116354) to (116360) and (150899).
§ 69.122. [Reserved].
Source The provisions of this § 69.122 adopted December 14, 1984, effective December 15, 1984, 14 Pa.B. 4514; reserved January 13, 1995, effective January 14, 1995, 25 Pa.B. 150. Immediately preceding text appears at serial pages (150899) to (150900), (116363) to (116366) and (178501).
§ § 69.13169.145. [Reserved].
Source The provisions of these § § 69.13169.145 adopted September 27, 1985, effective September 28, 1985, 15 Pa.B. 3425; corrected October 11, 1985, effective September 28, 1985, 15 Pa.B. 3651; reserved May 6, 1988, effective May 7, 1988, 18 Pa.B. 2108. Immediately preceding text appears at serial pages (116367) to (116386) and (120511) to (120512).
§ 69.151. [Reserved].
Source The provisions of this § 69.151 adopted October 11, 1985, effective October 12, 1985, 15 Pa.B. 3650; reserved April 11, 1986, effective April 5, 1986, 16 Pa.B. 1277; amended July 31, 1987, effective August 1, 1987, 17 Pa.B. 3220; reserved January 15, 1993, effective January 16, 1993, 23 Pa.B. 265. Immediately preceding text appears at serial page (126876).
§ 69.152. [Reserved].
Source The provisions of this § 69.152 adopted July 31, 1987, effective August 1, 1987, 17 Pa.B. 3220; corrected August 28, 1987, 17 Pa.B. 3543; reserved January 15, 1993, effective January 16, 1993, 23 Pa.B. 265. Immediately preceding text appears at serial pages (126876) to (126877).
§ § 69.15369.168. [Reserved].
Source The provisions of these § § 69.15369.168 adopted July 31, 1987, effective August 1, 1987, 17 Pa.B. 3220; reserved January 15, 1993, effective January 16, 1993, 23 Pa.B. 265. Immediately preceding text appears at serial pages (126877) to (126878).
POLICY STATEMENT INTERPRETING TERMS
INCLUDED IN 66 PA.C.S. § 1326
§ 69.169. Definitionsstatement of policy.
The following words and terms, used in 66 Pa.C.S. § 1326 (relating to standby charge prohibited), have the following meanings:
Residential structureA building which contains only individually metered dwelling units intended for human habitation.
Standby chargeThe charge for the availability of water supply during fire emergencies. Costs for the upsizing of company-owned service lines and meters, for the installation of additional lines and for backflow prevention devices are not standby charges for purposes of residential sprinkler systems, and these costs shall be borne by the applicant for service on a one-time basis.
Source The provisions of this § 69.169 adopted June 30, 1989, effective July 1, 1989, 19 Pa.B. 2787.
LINE EXTENSIONS
§ 69.171. [Reserved].
Source The provisions of this § 69.171 adopted September 18, 1992, effective September 19, 1992, 22 Pa.B. 4699; reserved February 14, 1997, effective February 15, 1997, 27 Pa.B. 799. Immediately preceding text appears at serial page (222438).
Notes of Decisions Retroactive Application
This policy statement should not be applied retroactively to the township. Shenago Township Board of Supervisors v. Pennsylvania Public Utility Commission, 686 A.2d 910 (Pa. Cmwlth. 1996).
§ 69.181. [Reserved].
Source The provisions of this § 69.181 adopted August 4, 1989, effective August 5, 1989, 19 Pa.B. 3304; reserved March 29, 1996, effective March 30, 1996, 26 Pa.B. 1377. Immediately preceding text appears at serial pages (202014) to (202016).
Notes of Decisions Cost Assignment
A utility may not recover the carrying costs associated with the amortization of an operating expense. Not only would this allow a utility to capitalize an item in its rate base and at the same time recover an item as expense from taxpayers, but it would also undermine the Public Utility Commissions policy, as codified by this regulation, to balance the interest of shareholders and ratepayers, and to fairly spread the cost of TOP expenses which arose out of gas distribution companys failure to purchase gas at its full contract requirements level. National Fuel Gas Distribution Corp. v. Pennsylvania Public Utility Commission, 677 A.2d 861 (Pa. Cmwlth. 1996).
General Comments
This regulation is a statement of policy and does not have the force of law. It is only an indication of how the Public Utility Commission intends to proceed. UGI Utilities, Inc. v. Pennsylvania Public Utility Commission, 677 A.2d 882 (Pa. Cmwlth. 1996).
Refund Granted
Administrative law judges decision to order the utility company to refund its customers 90% of its take-or-pay refund, including interest, was upheld. UGI Utilities, Inc. v. Pennsylvania Public Utility Commission, 677 A.2d 882 (Pa. Cmwlth. 1996).
Refunds
Natural gas company was required to refund 90% of its take-or-pay refund, including interest, despite companys contention that the decision was contrary to the take-or-pay refund policy statement and to the Public Utility Commissions prior application of that statement to the company. Peoples Natural Gas Co. v. Pennsylvania Public Utility Commission, 677 A.2d 890 (Pa. Cmwlth. 1996); appeal denied 688 A.2d 174 (Pa. 1997).
The witness testified that there was no analysis or quantification by the gas company of the time value of the money lost to ratepayers, that is the lag between the times that ratepayers made payments to the gas company for TOP costs, and the time the ratepayers received a refund. Therefore, the gas company failed to carry its burden to prove its equitable argument that it, and not the ratepayers, was entitled to a refund. National Fuel Gas Distribution Corp. v. Pennsylvania Public Utility Commission, 677 A.2d 861 (Pa. Cmwlth. 1996).
POLICY STATEMENT ADDRESSING AFFILIATED
INTEREST ISSUES OF NATURAL GAS
MARKETERS
§ 69.191. General.
(a) Given the unbundling of monopoly distribution services in the natural gas industry and the development of customer access to commodity gas and transportation services, the Commission has developed policies for local distribution companies (LDCs), marketers and customers with regard to the affiliated and nonaffiliated interests of LDCs. Unless otherwise stated, the phrase marketer or marketers or brokers includes all LDC affiliates, subsidiaries, parents, divisions, and the like providing gas supply to a respective LDCs customer. This section and § 69.192 (relating to affiliated intereststatement of policy) are intended to clarify additional aspects of the Commissions authority in this area. The Commission has a strong policy against direct or indirect discrimination by LDCs in favor of their marketing affiliates or marketing divisions and against independent gas marketers. The discrimination impermissibly hinders the unbundling of services and the entry of new competitors into the marketplace. This discrimination also violates section 1502 of the code (relating to discrimination in service).
(b) Many Pennsylvania LDCs have affiliated marketing divisions. Some Pennsylvania LDCs may have divisions or marketing sections that are not separately organized as affiliates as defined in 66 Pa.C.S. (relating to Public Utility Code). This section and § 69.192 provide guidance to an LDCs affiliate, regardless of the format used to operate an LDCs affiliate, in order to be effective, to prevent discriminatory behavior, and insure compliance with section 1502 of the code (relating to discrimination in service). This section and § 69.192 will apply without regard to the structural relationship of the LDCs marketer to the LDC.
(c) This section and § 69.192 cover both the LDCs affiliates and gas marketing divisions or marketing sections, even those without any distinct organizational structure, that do not have affiliate status. This section and § 69.192 will not require any generic structural separation of an LDCs affiliate, notwithstanding actions taken to the contrary in other states, because the Commission does not believe this is necessary as long as the LDC fairly allocates costs to an LDCs affiliate and refrains from giving the LDCs affiliate any unfair advantage vis-a-vis a marketer or broker not affiliated with an LDC. The Commission may impose such a structural requirement if and when warranted by the facts and circumstances.
(d) The Commissions authority with respect to affiliates and marketing divisions derives from different portions of the code. Chapter 21 of the code (relating to relations with affiliated interests) directly governs affiliated interests. Section 1318(b) of the code (relating to just and reasonable natural gas rates), addresses gas purchased from affiliates. Other provisions govern natural gas costs such as sections 1307, 1308, 1317, and 1318. The code requires adherence to tariffs under section 1303 (relating to adherence to tariffs) and thus prohibits a lack of uniformity or discrimination in the application of tariff provisions. Likewise under section 1304 (relating to discrimination in rates) it prohibits rate discrimination. Other provisions reenforce these policies: section 1501 (relating to character of service and facilities) requires utilities to furnish adequate, efficient, safe and reasonable service, while section 1502 prohibits any unreasonable preference or disadvantage and forbids any unreasonable prejudice or disadvantage. These provisions require equal treatment of similarly situated parties, in this case customers of an LDCs transportation tariff services, regardless of whether that customer chooses to use the gas supply services of an LDC or otherwise.
(e) Under sections 505 and 506 of the code (relating to duty to furnish information to the Commission; cooperation in valuing property; and inspection of facilities and records), the Commission has authority to require utilities to keep and furnish information in accordance with requirements set forth by the Commission. As part of this section and § 69.192 the Commission has set forth certain recordkeeping requirements to help ensure that parties are fairly treated. The Commission expects the LDC, in consultation with marketers or brokers to propose a process for reporting and managing marketer or broker complaints as part of any tariff proposed as a result of this section and § 69.192. The Commission may expect additional recordkeeping or conflict resolution processes if the parties are unable to resolve this or if warranted by subsequent facts and circumstances.
Source The provisions of this § 69.191 adopted August 15, 1997, effective August 16, 1997, 27 Pa.B. 4102.
Cross References The provisions of this § 69.192 adopted August 15, 1997, effective August 16, 1997, 27 Pa.B. 4102.
Cross References This section cited in 52 Pa. Code § 69.191 (relating to general).
UNIFORM STANDARDS FOR BROKERS AND MARKETERS
§ 69.195. Fitness of natural gas marketer or broker (including an LDCs affiliate).
(a) Fitness of brokers and marketers.
(1) Unless otherwise stated, the phrase marketers or brokers, or both, includes all local distribution company (LDC) affiliates, subsidiaries, parents, divisions, and the like providing gas supply to the respective LDCs customers.
(2) To retain reliable service when the gas industry unbundles, the Commission seeks to insure that brokers and marketers operating in this Commonwealth possess the financial or technical, or both,