PRINTER'S NO. 232
No. 203 Session of 2003
INTRODUCED BY MUNDY, BAKER, BELARDI, CAWLEY, COY, EACHUS,
FREEMAN, GEORGE, HARHAI, HASAY, HORSEY, LAUGHLIN, LEVDANSKY,
MELIO, PETRONE, TANGRETTI, TIGUE, WALKO AND WANSACZ,
FEBRUARY 11, 2003
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 11, 2003
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for the definition of
3 watershed land and for commission approval prior to public
4 utility sale of watershed land.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 102 of Title 66 of the Pennsylvania
8 Consolidated Statutes is amended by adding a definition to read:
9 § 102. Definitions.
10 Subject to additional definitions contained in subsequent
11 provisions of this part which are applicable to specific
12 provisions of this part, the following words and phrases when
13 used in this part shall have, unless the context clearly
14 indicates otherwise, the meanings given to them in this section:
15 * * *
16 "Watershed land." Any interest in real property located
17 within the drainage area of any lake, stream, reservoir, river
18 or other body of water, which body of water is used, directly or
1 indirectly, to provide drinking water to the public.
2 Section 2. Title 66 is amended by adding sections to read:
3 § 531. Transfer of watershed land.
4 (a) Transfer of watershed land.--No public utility engaged
5 in the business of diverting, developing, pumping, impounding,
6 distributing or furnishing water to or for the public for
7 compensation shall sell, lease or otherwise transfer any
8 interest in watershed land unless that public utility has
9 petitioned for and obtained the approval of the commission. The
10 commission may, upon its own motion or upon complaint, prohibit
11 the public utility from selling, leasing or otherwise
12 transferring watershed land if the commission determines that
13 the sale, lease or transfer could have an adverse effect on the
14 safety, adequacy, efficiency or reasonableness of the utility's
15 service or could increase the utility's cost of providing
16 service to its customers.
17 (b) Requirements of utility petition.--Whenever a public
18 utility files a petition seeking approval of the sale, lease or
19 other transfer of watershed land, as set forth in subsection
20 (a), the utility shall demonstrate that the sale, lease or
21 transfer will not have an adverse effect on the safety,
22 adequacy, efficiency or reasonableness of the utility's service
23 or will not increase the utility's cost of providing service to
24 its customers.
25 (c) Procedure.--The commission shall hold at least one
26 public hearing in making the determinations required by
27 subsection (a) or (b). In such a proceeding, the commission
28 shall determine the reasonableness of the compensation received
29 by the utility for the sale, lease or other transfer of
30 watershed land. The affected public utility shall have the
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1 burden of proof in any proceeding pursuant to this section.
2 (d) Environmental questions.--The commission may certify to
3 the Department of Environmental Protection any questions
4 regarding the applicability of environmental laws and
5 regulations, when the question arises in a proceeding under this
6 section, and may incorporate the department's findings in its
7 decision.
8 (e) Transactions with affiliates.--In any instance where the
9 utility proposes to sell, lease or otherwise transfer watershed
10 land to an affiliated interest or the utility, as defined in
11 section 2101 (relating to definition of affiliated interest),
12 the commission shall not approve the sale, lease or transfer
13 unless the commission finds that the compensation received by
14 the utility is at least equal to the fair market value of the
15 watershed land being sold, leased or transferred.
16 (f) Regulations.--The commission may adopt such regulations
17 as it deems necessary to carry out its powers and duties under
18 this section.
19 § 1329. Recognition of proceeds of sale of watershed land.
20 (a) Accounting required.--Whenever a public utility engaged
21 in the business of diverting, developing, pumping, impounding,
22 distributing or furnishing water to or for the public for
23 compensation sells, leases or otherwise transfers an interest in
24 watershed land, the utility shall keep a separate record of the
25 gross proceeds of the sale, lease or other transfer; the
26 undepreciated original cost of the property; the accrued
27 depreciation of the property; and the expenses directly
28 associated with the sale, lease or other transfer of the
29 property.
30 (b) Duties of the commission.--In any proceeding in which
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1 the commission determines a level of just and reasonable rates
2 for a public utility engaged in the business of diverting,
3 developing, pumping, impounding, distributing or furnishing
4 water to or for the public for compensation, the commission
5 shall credit to ratepayers the net proceeds of the sale, lease
6 or other transfer of watershed land by the utility.
7 (c) Net proceeds defined.--For purposes of this section, the
8 term "net proceeds" shall mean:
9 (1) If the purchaser, lessee or transferee is an
10 affiliated interest of the utility, as defined in section
11 2101 (relating to definition of affiliated interest), the
12 greater of:
13 (A) the proceeds received from the transfer less
14 the depreciated original cost of the property less
15 the expenses directly associated with the transfer
16 which are properly allocable to the utility; or
17 (B) the fair market value of the watershed land
18 transferred less the depreciated original cost of the
19 property less the expenses directly associated with
20 the transfer which are properly allocable to the
21 utility.
22 (2) If the purchaser, lessee or transferee is not an
23 affiliated interest of the utility, as defined in section
24 2101, the proceeds received from the transfer less the
25 depreciated original cost of the property less the utility's
26 expenses directly associated with the transfer.
27 Section 3. This act shall take effect in 60 days.
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