HB 1490 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, further providing for rates to be just and reasonable; and providing for water and sewer authorities in cities of the second class.

PRIOR PRINTER'S NO.

1896 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1909 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

COSTA, DEASY, ENGLISH, EVANKOVICH, KAUFFMAN, KORTZ, KULIK, MILLARD, MUSTIO, ORTITAY, QUIGLEY, WARD,WARD WHEELAND AND MAHER,WHEELAND, JUNE 2, 2017 ASREFERRED REPORTEDTO FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 5,2, 2017 AN ACT Amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, providing for water and sewer authorities in cities of the second class.

(a) Application.--Beginning on January 1, 2018, the <--provisions (A)of APPLICATION.--THEthis FOLLOWINGtitle, APPLY:except Chapters 11 (relating to certificates of public convenience), 19 (relating to securities and obligations) and 21 (relating to relations with affiliated interests), shall apply to the service of an authority in the same manner as the service of a public utility.

<--(b) (1)Exception.--Upon BEGINNINGrequest ON JANUARY 1, 2018, THE provisions of thisan title,authority, exceptthe Chapterscommission 1120170HB1490PN1896 (relating to certificates of public convenience), 19 (relating to securities <-- and obligations) and 21 (relating to relations with affiliated 20170HB1490PN1909 - 2 - interests),may shallsuspend applyor towaive the serviceapplicability of anany authorityprovision inof thethis <--title sameto manner as the serviceauthority, ofexcept afor publicthis utility.section.

<-- (2) NOTWITHSTANDING PARAGRAPH (1), SECTION 1103 SHALL <-- APPLY TO AN AUTHORITY THAT SEEKS TO ACQUIRE, CONSTRUCT OR BEGIN TO OPERATE ANY EQUIPMENT, PLANT OR OTHER FACILITY FOR THE RENDERING OF SERVICE BEYOND THE AREAS SERVED AS OF THE EFFECTIVE DATE OF THIS SECTION.

(b) Exception.--Upon request of an authority, the commission may suspend or waive the applicability of any provision of this title to the authority, except for this section.

(a) Filing.--An authority shall file an initial A tariff AND <-- SUPPORTING DATA with the commission within 60 days of the 20170HB1490PN1909 - 3 - effective date of this section.

The commission shall conduct an <-- initial A rate proceeding in accordance with the commission's <-- procedures for initial tariff filings.

To the extent practical, <-- public hearings on the initial tariff filing shall be held <-- within the boundaries of an authority.

(b) Compliance plan.--The compliance plan WITHIN 120 DAYS OF <-- THE EFFECTIVE DATE OF THIS SECTION, AN AUTHORITY SHALL FILE A COMPLIANCE PLAN WITH THE COMMISSION WHICH shall include provisions to convert BRING an authority's existing information <-- technology, accounting, billing, collection and other operating 20170HB1490PN1896 - 3 - systems and procedures to comply INTO COMPLIANCE with the <-- requirements applicable to jurisdictional water and wastewater utilities under this title and applicable rules, regulations and orders of the commission.

THE COMPLIANCE PLAN SHALL ALSO INCLUDE <-- A LONG-TERM INFRASTRUCTURE IMPROVEMENT PLAN IN ACCORDANCE WITH SUBCHAPTER B OF CHAPTER 13 (RELATING TO DISTRIBUTION SYSTEMS).

<-- (1) The commission shall examine the costs and administrative burdens of converting existing systems and procedures of an authority to meet the requirements of this title.

20170HB1490PN1909 - 4 - (C) COMMISSION REVIEW.--THE COMMISSION SHALL REVIEW THE <-- COMPLIANCE PLAN FILED BY AN AUTHORITY UNDER SUBSECTION (B) AND MAY ORDER THE AUTHORITY TO FILE A NEW OR REVISED COMPLIANCE PLAN IF THE COMPLIANCE PLAN FAILS TO ADEQUATELY ENSURE AND MAINTAIN THE PROVISION OF ADEQUATE, EFFICIENT, SAFE, RELIABLE AND REASONABLE SERVICE.

20170HB1490PN1896 - 4 - § 3206.

20170HB1490PN1909 - 5 - (c) Authorization.--In addition to any other powers conferred upon the Office of Consumer Advocate or Office of Small Business Advocate, the Office of Consumer Advocate or Office of Small Business Advocate may represent an interest of consumers presented to it for consideration, in writing, by a substantial number of individuals who make, direct, use or are the recipients of a product or service provided by an authority.

(a) Sworn statement.--In order to allow the commission to carry out the commission's duties under this chapter, the president of an authority shall file, within 60 days of the effective date of this sectionsection, AND ON OR BEFORE MARCH 31 OF EACH <-- YEAR THEREAFTER, a sworn statement which specifies the authority's gross intrastate revenues for the immediately preceding fiscal year in the same manner as required under section 510(b) (relating to assessment for regulatory expenses upon public utilities).

(b) Billing.--The commission shall make an estimate based on the gross intrastate revenues specified under subsection (a) in 20170HB1490PN1896 - 5 - accordance with the procedures set forth in section 510(b) and shall impose an assessment on an authority based on the authority's proportional share of the commission's expenses RELATING TO THE COMMISSION'S UTILITY GROUP in accordance with <-- section 510(b)(4)510(b)(4). 510(B).

An authority shall pay an assessment <-- on an annual basis in accordance with section 510.

(a) Power.--Nothing in this chapter shall be construed to rescind or limit the power of a city of the second class to establish an authority or determine the powers, functions, <-- budget or activities of an authority.

20170HB1490PN1909 - 6 - (b) Audits.--Nothing in this chapter shall be construed to limit or prevent a city official of a city of the second class from conducting audits and examinations of the financial affairs of an authority in accordance with the city official's duties.

Nothing in this section CHAPTER shall be <-- construed to exempt an authority from providing information to the commission as specified under sections 501 (relating to general powers), 504 (relating to reports by public utilities), 505 (relating to duty to furnish information to commission;

cooperation in valuing property) and 506 (relating to inspection of facilities and records)records). OR ANY OTHER PROVISION OF THIS TITLE <-- WHICH REQUIRES INFORMATION TO BE PROVIDED TO THE COMMISSION.

§ 3207 shall take effect 20170HB1490PN1896 - 6 - in 60 days.

20170HB1490PN190920170HB1490PN1896 - 7 -