PROPOSED RULEMAKING
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA. CODE CH. 57]
[L-950108]
Obsolete Regulations Concerning Electric Service
[27 Pa.B. 1162] The Pennsylvania Public Utility Commission (Commission) on October 3, 1996, adopted a proposed rulemaking regarding the elimination of obsolete regulations regarding electric service. The rulemaking has two distinct purposes. The first is to eliminate regulations which the Commission believes are burdensome to the electric utility industry. These regulations relate to record maintenance, system frequency and sales promotion practices for gas and electric utilities. The second purpose is to revise the procedure to request exemption from the application of the undergrounding requirement for electric service in new residential developments. The contact person is Patricia Krise Burket, Assistant Counsel, Law Bureau, (717) 787-3464.
Executive Summary
By order entered May 23, 1995, the Commission adopted the Advance Notice of Proposed Rulemaking to Review and Rescind All Obsolete and Excessive Regulations. After a 60-day comment period, the Commission adopted the above-captioned proposed rulemaking by order entered January 25, 1996, at L-950108, which establishes a 30-day comment period. An amended proposed rulemaking order was adopted October 3, 1996, which addressed the procedure to request exemption from the application of the undergrounding requirement for electric service in new residential developments.
This order eliminates and revises regulations related to the electric and gas industries which the Commission believes are excessive and/or obsolete. Specifically, the rulemaking deletes § 57.13 (relating to records) which removes the burdensome requirements that records be kept at an office of the electric public utility within its service territory and be open to the Commission's inspection. Deletion of § 57.15 (relating to system frequency) will eliminate filing and maintenance of system frequency reports by electric utilities. Sections 57.61--57.67 and 59.51 will be deleted to remove burdensome paperwork requirements for electric and natural gas utilities in regard to sales promotion activities. Sections 57.85 and 57.86 (relating to tariff filings; and exceptions) will be revised to simplify the procedure whereby developers may be granted an exemption from requirement that electric service in new residential developments be located underground.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)) on February 20, 1997, the Commission submitted a copy of these proposed amendments to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure. In addition to submitting the proposed amendments, the Commission has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Commission in compliance with Executive Order 1996-1. A copy of this material is available to the public upon request.
If the Legislative Committees have an objection to any portion of the proposed amendments, they will notify the Commission within 20 days of the close of the public comment period. If IRRC has objections to any portion of the proposed amendments, it will notify the Commission within 30 days after the close of the public comment period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the proposed amendments, by IRRC, the General Assembly and the Governor of objections raised.
Public Meeting held
October 3, 1996Commissioners Present: John M. Quain, Chairperson; Lisa Crutchfield, Vice Chairperson; John Hanger; David W. Rolka; and Robert K. Bloom
Amended Proposed Rulemaking Order By the Commission:
By Order entered May 23, 1995, at Docket No. L-950103, we issued an Advance Notice of Proposed Rulemaking To Review And Rescind All Obsolete And Excessive Rules And Regulations. The advance notice was published in the Pennsylvania Bulletin on June 3, 1995, 25 Pa.B. 2188, and a 60-day comment period set. We received comments from the Pennsylvania Electric Association and our own Bureaus of Law and CEEP which were specific to the electric industry and reflected the need to eliminate two sections and revise other sections contained in Chapter 57. Accordingly, on January 25, 1996, at Docket No. L-00950108, we entered an order initiating a proposed rulemaking to revise Chapter 57. On May 22, 1996, however, we withdrew the proposed rulemaking order from consideration by the Office of Attorney General prior to publication so as to allow for Commission reconsideration of specific changes proposed to the regulations which require that electric service in new residential developments be placed underground.
The instant proposed rulemaking order covers the same subject matter as the previous order but with additional revisions to existing regulations. We believe that the revisions and deletions proposed will clarify, simplify and remove excessive and burdensome requirements from our electric service regulations.
We have decided to retain the undergrounding requirement for electric service in new residential developments. To compensate, we have proposed revisions which should streamline the existing process for obtaining exemptions from the requirement where compliance would work an undue hardship or is otherwise impractical.
Our review of the affected sections was careful and meticulous. We are well aware of our duty to ensure the safety of utility service, and our proposed changes will not result in any lapse in our mandate. The proposed changes are as follows:
§ 57.13. Records. Deletion of this section removes the burdensome requirement that records be kept at an office of the public utility within its service territory and open for Commission examination. New methods of electronic and optical data storage and transmission are available which eliminate the need to maintain hard copies of records on site.
§ 57.15. System frequency. This section is eliminated as excessive and obsolete.
§§ 57.61--57.67 and 59.51. Sales Promotion Practices for Gas and Electric Utilities. These regulations were created at a time when there were fewer competitive forces acting upon Pennsylvania gas and electric utilities. These rules which require burdensome paperwork impose a market disadvantage on utilities as compared to new entrants and other nonregulated suppliers. Deletion of these regulations will permit gas and electric utilities to be innovative without the burden of reporting their sales activities months in advance of their implementation.
§ 57.85. Tariff filing. This regulation is unnecessary to the extent that it requires electric utilities to incorporate a Commission regulation on undergrounding requirements into their tariff rules. Repeating provisions of a regulation in a tariff does not increase the force of the regulation as it already must be obeyed. This regulation also requires that moneys received from an applicant for electrical service be credited to Contributions in Aid of Construction. As it is axiomatic that moneys paid to utilities by applicants for service for necessary and additional costs incurred by the utility for construction of facilities to serve the applicants are Contributions in Aid of Construction, the provision is surplusage that may be eliminated. Also, because of an internal Commission reorganization, the Bureau of Safety and Compliance referenced in subsection (c) is no longer the Commission bureau with which electrical utilities must file their undergrounding construction specification standards and revisions. The appropriate bureau is now the Bureau of Fixed Utility Services. The regulation will be revised to account for this change.
§ 57.86. Exceptions to mandatory undergrounding of electrical service in new residential developments. Commission regulations at §§ 57.81--57.88 require that electric service in new residential developments be placed underground. The existing procedure at § 57.86 that must be followed in order to obtain an exemption from the requirement not only is unnecessarily complicated, but also is inconsistent with other Commission procedures related to waiver of regulations. Therefore, this regulation will be revised to simplify the exemption process.
Accordingly, under sections 501, 504, 505, 506, 1301 and 1501 of the Public Utility Code, 66 Pa.C.S. §§ 501, 504, 505, 506, 1301 and 1501, and the Commonwealth Documents Law (45 P. S. § 1201 et seq.) and the regulations promulgated thereunder, we shall revise our original rulemaking order to accomplish the objectives described in the body of this order; Therefore,
It is Ordered That:
1. The previously instituted rulemaking proceeding is hereby amended as stated in the body of this order.
2. The Commission's regulations are hereby proposed to be amended by deleting §§ 57.13, 57.15, 57.61--57.67, and 59.51 and revising §§ 57.85 and 57.86 as stated in the body of the order.
3. The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to legality.
4. The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.
5. The Secretary shall submit this order and Annex A for informal review by the designated standing committees of both houses of the General Assembly, and for informal review and approval by the IRRC.
6. The Secretary shall deposit this order and Annex A with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin. Interested persons may submit written comments, an original and 15 copies, to John G. Alford, Secretary, Pennsylvania Public Utility Commission, and shall have 30 days from the date this order is published to submit comments.
7. A copy of this order shall be served upon the Pennsylvania Electric Association who submitted comments in the original rulemaking proceeding entered January 25, 1996.
JOHN G. ALFORD,
SecretaryFiscal Note: 57-163. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PENNSYLVANIA PUBLIC UTILITY COMMISSION
Subpart C. FIXED UTILITY SERVICES
CHAPTER 57. ELECTRIC SERVICE
Subchapter B. SERVICE AND FACILITIES § 57.13. [Records] (Reserved).
[Records required by this chapter shall be kept within this Commonwealth at an office of the public utility located in the territory served by it, and shall be open for examination by the Commission or a representative of the Commission. If a utility finds it necessary to keep its records outside the territory served or this Commonwealth, the Commission shall be so notified.]
§ 57.15. [System frequency] (Reserved).
[(a) Standard frequency. A public utility supplying alternating current service shall adopt and file with the Commission a standard frequency or frequencies for its system, the suitability of which may at any time be determined by the Commission.
(b) Allowable variation. A public utility shall maintain the system frequency within 3% of the standard frequency adopted. Momentary variations of frequency of more than 3%, which are clearly not due to lack of proper equipment or reasonable care on the part of the public utility, will not be considered as violations of this section.
(c) Records. A public utility shall keep in continuous operation in the major generating station or in the office of the load dispatcher, one graphic recording frequency meter to record system frequency.]
Subchapter F. (Reserved) (Editor's Note: As part of this proposal, the Commission is proposing to delete Subchapter F, §§ 57.61--57.67, which appears at 52 Pa. Code pages 57-44.2--57-49, serial pages (217208), (205795), (205796), (217209) and (205835)--(205839).)
Subchapter H. UNDERGROUND ELECTRICAL SERVICE IN NEW RESIDENTIAL DEVELOPMENTS § 57.85. [Tariff filing] Undergrounding construction; specification standards.
[(a) A public utility furnishing electric service to the public shall file a tariff supplement adding § 57.83 (relating to applicants for electrical service) to its tariff. The tariff supplement shall become effective on the date filed.
(b)] Public utilities furnishing electric service to the public shall file their undergrounding construction, specification standards and revisions thereto with the Commission's Bureau of [Safety and Compliance] Fixed Utility Services.
[(c) Amounts the public utility receives under § 57.83(4) (relating to applicants for electrical service) shall be credited to Contributions in Aid of Construction.]
§ 57.86. Exceptions.
(a) Whenever a public utility or any affected person believes that the application of the tariff rule works an undue hardship, involves a physical impossibility[,] or is otherwise inappropriate, the utility or [persons] person may request an exception from the undergrounding requirements [of §§ 57.81--57.85] by providing the Commission with the following:
* * * * * (2) A [letter] petition setting forth:
* * * * * (b) [Upon the filing of an exception request, Commission staff will notify the utilities involved and the appropriate local government authority, review the facts stated in the request, and issue to the applicant and the utility an informal written report and decision within 180 days of the request for exception. Failure of the party requesting an exception to supply sufficient data within the 180 day period shall result in the automatic denial of the request.] A copy of the petition shall be mailed to all appropriate local government authorities, and to all other affected persons and utilities.
(c) [A public utility of an affected person may appeal the informal decision rendered by Commission staff by filing a letter petition with the Secretary of the Commission stating the facts in question and requesting a hearing. Appeals shall be referred to the Commission's Office of Administrative Law Judge for hearing and decision.
(d)] If an exception request initiated by an applicant for electric service is granted, and the applicant thereafter desires underground electric service, [then §§ 57.82 and 57.83 (relating to installation of distribution and service lines; and applicants for electric service) apply] this subchapter applies as if no exception [had] has been granted.
CHAPTER 59. GAS SERVICE
[SALES PROMOTION PRACTICES] § 59.51. [General] (Reserved).
[Sales promotion practices engaged in by gas utilities, or affiliates on their behalf, shall conform with §§ 57.61--57.67 (relating to sales promotion practices), which govern the forms of promotional activity in which electric and gas utilities under the jurisdiction of the Commission may engage.]
[Pa.B. Doc. No. 97-356. Filed for public inspection March 7, 1997, 9:00 a.m.]
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