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PA Bulletin, Doc. No. 98-1114

NOTICES

INDEPENDENT REGULATORY REVIEW COMMISSION

Actions Taken by the Commission

[28 Pa.B. 3338]

   The Independent Regulatory Review Commission met publicly at 11 a.m., Thursday, June 18, 1998, and took the following actions:

Regulations Approved:

   Department of Revenue #15-376 Vehicle Rental Tax: (amends 61 Pa. Code Chapters 9 and 47)

   State Board of Osteopathic Medicine #16A-538: Prescribing, Administering and Dispensing Controlled Sympathomimetic Amines (amends 49 Pa. Code § 25.211)

   Pennsylvania Public Utility Commission #57-193: Reporting Requirements for Universal Service and Energy Conservation Programs (amends 52 Pa. Code Chapter 54)

   Pennsylvania Public Utility Commission #57-170: Residential Telephone Service (amends 52 Pa. Code Chapters 63 and 64)

   Pennsylvania Public Utility Commission #57-191: Licensing Requirements for Electric Generation Suppliers (amends 52 Pa. Code Chapters 3 and 54)

   Pennsylvania Public Utility Commission #57-188: Adjustment of Electric Distribution Company Rates for Changes in State Tax Liability (adds sections 91 through 98 to 52 Pa. Code Chapter 54)

   Pennsylvania Public Utility Commission #57-171: Standards and Billing Practices (amends 52 Pa. Code Chapter 56)

   Pennsylvania Public Utility Commission #57-192: Reporting Requirements for Quality of Service Benchmarks and Standards (creates a new subchapter at 52 Pa. Code §§ 54.151--54.156)

   Pennsylvania Public Utility Commission #57-187: Customer Information Disclosure for Electricity Providers (creates a new subchapter at 52 Pa. Code §§ 54.1--54.9)

   Pennsylvania Public Utility Commission #57-185: Electric Service Reliability Standards (amends 52 Pa. Code Chapter 57)

Regulations Disapproved:

   Pennsylvania Public Utility Commission #57-190: Advanced Meter Deployment for Electricity (Disapproval order has not been delivered to the agency per the agency's request.)

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Department of Revenue--Vehicle Rental Tax; Regulation No. 15-376

Order

   On April 11, 1996, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Department of Revenue (Department). This rulemaking amends 61 Pa. Code Chapters 9 and 47. The authority for this regulation is section 270 of the Tax Reform Code (72 P. S. § 7270). The proposed regulation was published in the April 27, 1996 Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 21, 1998.

   The regulation contains provisions for assessment and collection of the vehicle rental tax as required by 1994 and 1997 amendments to the Tax Reform Code. The proposal contains requirements for assessment and collection of a 2% rental tax on motor vehicles designed to transport 15 or fewer passengers or a truck, trailer, or semitrailer used in the transportation of property other than commercial freight.

   We have reviewed this regulation and find it to be in the public interest. The regulation replaces a Statement of Policy issued by the Department in 1995 relating to the passenger car rental tax. The proposal makes the Department's regulations current with changes in statute relative to the vehicle rental tax.

Therefore, It Is Ordered That:

   1.  Regulation No. 15-376 from the Department of Revenue, as submitted to the Commission on May 21, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

State Board of Osteopathic Medicine--Prescribing, Administering and Dispensing Controlled Sympathomimetic Amines; Regulation No. 16A-538

Order

   On May 28, 1998, the Independent Regulatory Review Commission (Commission) received this regulation from the State Board of Osteopathic Medicine (Board). This rulemaking amends 49 Pa. Code § 25.211. The authority for this regulation is section 16 of the Osteopathic Medical Practice Act (63 P. S. § 271.16). Notice of proposed rulemaking was omitted for this regulation; it will become effective upon publication in the Pennsylvania Bulletin.

   The Board is deleting section 25.211, which pertains to prescribing, administering and dispensing controlled sympathomimetic amines. This section expired under sunset provisions on January 17, 1992.

   We have reviewed this regulation and find it to be in the public interest. The rulemaking removes an obsolete provision from the Pennsylvania Code.

Therefore, It Is Ordered That:

   1.  Regulation No. 16A-538 from the State Board of Osteopathic Medicine, as submitted to the Commission on May 28, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Reporting Requirements for Universal Service and Energy Conservation Programs; Regulation No. 57-193

Order

   On January 16, 1998, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking amends 52 Pa. Code Chapter 54. The authority for this regulation is found in sections 2802(17), 2803 and 2804(8) and (9) of the Electricity Generation Customer Choice and Competition Act (Act) (66 Pa.C.S. §§ 2802(17), 2803 and 2804(8) and (9)). The proposed regulation was published in the January 31, 1998 Pennsylvania Bulletin with a 45-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   The Act requires the PUC to ensure that universal service and energy conservation policies, activities and services are properly funded and available in each electric distribution territory. The rulemaking requires the electric distribution companies to submit annual reports, triennial plans, and independent evaluations every 6 years.

   The Senate Consumer Protection and Professional Licensure Committee met on June 8, 1998, and had no objections to the regulation.

   We have reviewed this regulation and find it to be in the public interest. The rulemaking establishes standard reporting requirements for universal service and energy conservation programs which will allow the PUC to ensure that the utilities fulfill their responsibilities under the Act.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-193 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Residential Telephone Service; Regulation No. 57-170

Order

   On May 30, 1996, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking amends 52 Pa. Code Chapters 63 and 64. The authority for this regulation is found in sections 501, 504--506, 1301, and 1501 of the Public Utility Code (66 Pa.C.S. §§ 501, 504--506, 1301 and 1501) and the Telecommunications Act of 1996 (47 U.S.C.A. § 251, et seq.). The proposed regulation was published in the June 15, 1996 Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   The regulation clarifies and streamlines existing regulations. It also updates existing regulations to reflect current telecommunications industry standards and Federal law, and to eliminate obsolete and excessive regulations.

   We have reviewed this regulation and find it to be in the public interest. The regulation will clarify and simplify requirements for the telephone industry.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-170 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Licensing Requirements for Electric Generation Suppliers; Regulation No. 57-191

Order

   On January 16, 1998, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking amends 52 Pa. Code Chapters 3 and 54. The authority for this regulation is found in sections 2806(g)(3) and 2809 of the Electricity Generation Customer Choice and Competition Act (act) (66 Pa.C.S. §§ 2806(g)(3) and 2809). The proposed regulation was published in the January 31, 1998 Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   The act requires the PUC to license electric generation suppliers, including brokers, aggregators and marketers. In response to the mandates of the act, the PUC adopted interim licensing and application requirements in February 1997.

   The Senate Consumer Protection and Professional Licensure Committee (Committee) met on June 8, 1998. The Committee had no objections to the regulation.

   We have reviewed this regulation and find it to be in the public interest. The regulation codifies the PUC's interim requirements and fulfills the mandates of the act.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-191 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Adjustment of Electric Distribution Company Rates for Changes in State Tax Liability; Regulation No. 57-188

Order

   On January 16, 1998, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission. This rulemaking adds sections 91 through 98 to 52 Pa. Code Chapter 54. The authority for this regulation is 66 Pa.C.S. §§ 2801 to 2812. The proposed regulation was published in the January 31, 1998, Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   Act 138 of 1996 (Act 138) capped electric distribution company (EDC) rates through June of 2001, with an exception for recovery of increases in State or Federal taxes. Act 138 also requires the restructuring of the electric industry to maintain revenue neutrality to the Commonwealth. The proposed amendments establish the filing process by which an EDC can seek recovery of changes in its State tax liability.

   The Senate Consumer Protection and Professional Licensure Committee (Committee) met on June 8, 1998. The Committee had no objections to the regulation.

   We have reviewed this regulation and find it to be in the public interest. It is consistent with the directives of Act 138.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-188 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Standards and Billing Practices; Regulation No. 57-171

Order

   On June 11, 1996, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking amends 52 Pa. Code Chapter 56. The authority for this regulation is 66 Pa.C.S. §§ 501, 504, 2412 and 2416. The proposed regulation was published in the June 22, 1996, Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   The PUC is amending 52 Pa. Code Chapter 56, Standards and Billing Practices for Residential Utility Service, to rescind obsolete regulations, clarify regulations that are causing confusion, simplify overly burdensome requirements, and modify procedures to allow utilities a meaningful opportunity to address customer dissatisfaction. The proposed amendments affect electric, gas, steam heat, wastewater, and water utilities under PUC jurisdiction.

   We have reviewed this regulation and find it to be in the public interest. The amendments allow greater flexibility to resolve complaints and should result in savings to both the utilities and PUC.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-171 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Reporting Requirements for Quality of Service Benchmarks and Standards; Regulation No. 57-192

Order

   On January 16, 1998, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking creates a new subchapter at 52 Pa. Code §§ 54.151--54.156. The authority for this regulation is sections 2802(12), 2804(1) and 2807(d) of the Public Utility Code (66 Pa.C.S. §§ 2802(12), 2804(1) and 2807(d)). The proposed regulation was published in the January 31, 1998 edition of the Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   The PUC is proposing to establish uniform measures and reporting requirements to allow the PUC to monitor the electric distribution companies (EDCs) customer service performance. Once the PUC has collected and analyzed the data, it will develop quality of service benchmarks and standards for the EDCs. The establishment of benchmarks and standards will be the subject of a future rulemaking. The regulation is in response to the newly enacted Electricity Generation Customer Choice and Competition Act, which provides that the level of customer services shall remain the same as before electric competition.

   We have reviewed this regulation and find it to be in the public interest. The regulation represents an initial step in the PUC's program to maintain the safety and reliability of the electric system under deregulation.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-192 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Customer Information Disclosure for Electricity Providers; Regulation No. 57-187

Order

   On January 16, 1998, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking creates a new subchapter at 52 Pa. Code §§ 54.1--54.9. The authority for this regulation is section 2807(d)(2) of the Public Utility Code (66 Pa.C.S. § 2807(d)). The proposed regulation was published in the January 31, 1998 edition of the Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   This regulation establishes procedures, standards and requirements for electric distribution companies, electricity suppliers, marketers and brokers to provide adequate and accurate information to residential and small business customers. The regulation is designed to implement section 2807(d)(2) of the Electricity Generation Customer Choice and Competition Act (act) that requires electric utilities and generation suppliers to provide ''adequate and accurate customer information.'' The PUC states that this regulation will increase costs for electric distribution companies, suppliers and the PUC itself. However, an estimate of these increased costs cannot be made at this time.

   We have reviewed this regulation and find it to be in the public interest. The regulation will provide customers with a wide variety of information to use in making their decisions in an era of choice in electric generation supply. In addition, the PUC made several improvements in this regulation in response to comments submitted by the public and this Commission. Although we support the overall objectives of this regulation, there are a number of areas in the rulemaking that are unclear and appear to be inconsistent with other regulatory provisions.

   One example is section 54.8 which is entitled ''Privacy of Customer Information.'' It requires that customers take action to restrict release of two types of information. Representative William R. Lloyd, Jr., Minority Chairperson of the House Consumer Affairs Committee, in a letter dated June 16, 1998, expressed the concern that many customers will not realize that they have the opportunity to restrict the release of this information. This concern is substantiated by subsection 54.43(d) of PUC's final-form regulation No. 57-191. This subsection requires that a licensee maintain confidentiality of a consumer's ''name, address and telephone number, and historic payment information.'' Both Regulation #57-191 and this regulation are part of the PUC's regulatory package to implement the act. If the licensee who is the supplier must maintain confidentiality of four types of customer information, then the question arises as to why a customer can restrict release of only two types of this information. To maintain compliance with subsection 54.43(d), suppliers or other licensees need the customer's consent for release of all four types of information. We urge the PUC to amend this regulation through future rulemakings to address Representative Lloyd's concerns, bring this regulation into consistency with subsection 54.43(d), and clarify other provisions in this regulation. Greater clarity and precision in this regulation will allow the PUC to fully implement the statutory mandate that information be ''adequate and accurate.''

Therefore, It Is Ordered That:

   1.  Regulation No. 57-187 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.
____

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush, Vice Chairperson; Arthur Coccodrilli; Robert J. Harbison, III; John F. Mizner

Public Meeting held
June 18, 1998

Pennsylvania Public Utility Commission--Electric Service Reliability Standards; Regulation No. 57-185

Order

   On September 30, 1997, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Public Utility Commission (PUC). This rulemaking amends 52 Pa. Code Chapter 57. The authority for this regulation is 66 Pa.C.S. §§ 501, 524, 1102, 1103, 1501, 1504, 1505, 2802, 2804, 2807 and 2809. The proposed regulation was published in the October 11, 1997 Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on May 18, 1998.

   The proposal adds Subchapter N, Electric Reliability Standards, to Chapter 57. Electric distribution companies (EDC's) are responsible for transmission system reliability and are required to install and maintain transmission facilities in conformity with the provisions of Chapter 57, including annual reporting of performance of the transmission system. EDCs are also responsible for distribution system reliability and must take measures to meet the reliability standards in the proposal. Electric distribution suppliers are required to maintain appropriate reserve capacity.

   We have reviewed this regulation and find it to be in the public interest. We note, however, that the Commission has identified clarity concerns in section 57.194(h)(1)--(4) of the final-form rulemaking, a subsection which outline the measures electric distribution companies must take to meet reliability performance standards. The PUC does state in the preamble that all parties will have an opportunity to comment prior to final adoption of Commission decisions. It further explains that a particular methodology or precise standard was not adopted in the rulemaking because of a lack of existing data. Therefore, we suggest the PUC work with the industry in developing a schedule for input and development of standards.

Therefore, It Is Ordered That:

   1.  Regulation No. 57-185 from the Pennsylvania Public Utility Commission, as submitted to the Commission on May 18, 1998, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

JOHN R. MCGINLEY, Jr.,   
Chairperson

[Pa.B. Doc. No. 98-1114. Filed for public inspection July 10, 1998, 9:00 a.m.]



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