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PA Bulletin, Doc. No. 96-422

NOTICES

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Public Utility Municipal Contract filing by The York Water Co. regarding a Main Extension Contract with York Township: Doc. No. U-00952947

[26 Pa.B. 1195]

Commissioners Present: John M. Quain, Chairperson; Lisa Crutchfield, Vice Chairperson; John Hanger; David W. Rolka; Robert K. Bloom

Public meeting held
February 22, 1996

Order

By the Commission:

   This matter is before the Commission under a submittal by The York Water Co. (York Water) regarding a water main extension contract between York Water and York Township. In this December 18, 1995 contract, York Township agreed to compensate York Water $23,200 for York Water's extension of two 8-inch water mains. On December 20, 1995 at U-00952947, York Water filed this contract with the Commission under 66 Pa.C.S. § 507.

   Section 507 states (emphasis added):

   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 corpora- tion 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 become effective until the commission grants its approval thereof.

   A utility could reasonably assume that a main extension contract between the utility and a municipality would fall within the intendment of 66 Pa.C.S. § 507. However, we reach an opposite conclusion. A main extension contribution is under express tariff authority and is clearly a ''rate'' within the definition of that term at 66 Pa.C.S. § 102. Therefore, a main extension contract between a utility and a municipality would fall under the exception set forth in section 507, and the filing of such a contract is unnecessary.

   In our continuing effort to reduce consumer rates, the Commission seeks to eliminate unnecessary regulatory expenses. Our interpretation of section 507 will relieve utility providers and the Commission of the expense of unnecessary filings; Therefore,

It Is Ordered:

   1.  That the filing by The York Water Co. under 66 Pa.C.S. § 507 regarding a main extension contract with York Township is hereby declared outside of the intendment of section 507 and is thus unnecessary.

   2.  That this order shall be published in the Pennsylvania Bulletin so as to provide notice to other interested parties of the Commission policy position embodied in this order. The contact people for the published order are  Stephen E. Gorka (717) 787-3490 and David Newcomer (717) 787-6381.

JOHN G. ALFORD,   
Secretary

[Pa.B. Doc. No. 96-422. Filed for public inspection March 15, 1996, 9:00 a.m.]


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