PRINTER'S NO. 533
No. 489 Session of 1977
INTRODUCED BY COWELL, PYLES, COLE, GARZIA, REED, CESSAR, HALVERSON, PRATT, KUSSE, ABRAHAM, GILLETTE AND SCHMITT, MARCH 7, 1977
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 7, 1977
AN ACT 1 Amending Title 66 (Public Utilities) of the Pennsylvania 2 Consolidated Statutes, adding provisions relating to public 3 utilities and making repeals. 4 TABLE OF CONTENTS 5 TITLE 66 6 PUBLIC UTILITIES 7 PART I. PUBLIC UTILITY CODE 8 SUBPART A. PRELIMINARY PROVISIONS 9 Chapter 1. General Provisions 10 § 101. Short title of part. 11 § 102. Definitions. 12 § 103. Prior rights preserved. 13 § 104. Interstate and foreign commerce. 14 Chapter 3. Public Utility Commission 15 Subchapter A. General Provisions 16 § 301. Establishment, members, qualifications and chairman. 17 § 302. Removal of commissioner. 18 § 303. Seal; certified documents.
1 § 304. Administrative law judges. 2 § 305. Secretary, employees and consultants. 3 § 306. Counsel. 4 § 307. Inspectors for enforcement. 5 § 308. Bureaus. 6 § 309. Oaths and subpoenas. 7 § 310. Depositions. 8 § 311. Witness fees. 9 § 312. Privilege and immunity. 10 § 313. Joint hearings and investigations; reciprocity. 11 § 314. Investigation of interstate rates, facilities and 12 service. 13 § 315. Burden of proof. 14 § 316. Effect of commission action. 15 § 317. Fees for services rendered by commission. 16 § 318. Commission to cooperate with other departments. 17 § 319. Code of ethics. 18 Subchapter B. Investigations and Hearings 19 § 331. Powers of commission and administrative law judges. 20 § 332. Procedures in general. 21 § 333. Prehearing procedures. 22 § 334. Presiding officers. 23 § 335. Initial decisions. 24 SUBPART B. COMMISSION POWERS, DUTIES, 25 PRACTICES AND PROCEDURES 26 Chapter 5. Powers and Duties 27 § 501. General powers. 28 § 502. Enforcement proceedings by commission. 29 § 503. Enforcement proceedings by Attorney General. 30 § 504. Reports by public utilities. 19770H0489B0533 - 2 -
1 § 505. Duty to furnish information to commission; cooperation 2 in valuing property. 3 § 506. Inspection of facilities and records. 4 § 507. Designation of statutory agent. 5 § 508. Contracts between public utilities and municipalities. 6 § 509. Power of the commission to vary, reform and revise 7 contracts. 8 § 510. Regulation of manufacture, sale or lease of appliances. 9 § 511. Assessment for regulatory expenses upon public 10 utilities. 11 § 512. Disposition, appropriation and disbursement of 12 assessments and fees. 13 § 513. Power of commission to require insurance. 14 § 514. Public letting of contracts. 15 Chapter 7. Procedure on Complaints 16 § 701. Complaints. 17 § 702. Service of complaints on parties. 18 § 703. Fixing of hearings. 19 Chapter 9. Appeal and Review 20 § 901. Right to trial by jury. 21 SUBPART C. REGULATION OF PUBLIC UTILITIES GENERALLY 22 Chapter 11. Certificates of Public Convenience 23 § 1101. Organization of public utilities and beginning of 24 service. 25 § 1102. Enumeration of acts requiring certificate. 26 § 1103. Procedure to obtain certificates of public convenience. 27 § 1104. Certain appropriations by right of eminent domain 28 prohibited. 29 Chapter 13. Rates and Rate Making 30 § 1301. Rates to be just and reasonable. 19770H0489B0533 - 3 -
1 § 1302. Tariffs; filing and inspection. 2 § 1303. Adherence to tariffs. 3 § 1304. Discrimination in rates. 4 § 1305. Advance payment of rates; interest on deposits. 5 § 1306. Apportionment of joint rates. 6 § 1307. Sliding scale of rates; adjustments. 7 § 1308. Voluntary changes in rates. 8 § 1309. Rates fixed on complaint; investigation of costs of 9 production. 10 § 1310. Temporary rates. 11 § 1311. Valuation of property of a public utility. 12 § 1312. Refunds. 13 § 1313. Price upon resale of public utility services. 14 Chapter 15. Service and Facilities 15 § 1501. Character of service and facilities. 16 § 1502. Discrimination in service. 17 § 1503. Discontinuance of service. 18 § 1504. Standards of service and facilities. 19 § 1505. Proper service and facilities established on complaint. 20 § 1506. Copies of service contracts, etc., to be filed with 21 commission. 22 § 1507. Testing of appliances for measurement of service. 23 § 1508. Reports of accidents. 24 § 1509. Billing procedures. 25 Chapter 17. Accounting and Budgetary Matters 26 § 1701. Mandatory systems of accounts. 27 § 1702. Continuing property records. 28 § 1703. Depreciation accounts; reports. 29 § 1704. Records and accounts to be kept in Commonwealth. 30 § 1705. Budgets of public utilities. 19770H0489B0533 - 4 -
1 § 1706. Applicability to municipal corporations. 2 Chapter 19. Securities and Obligations 3 § 1901. Registration of securities to be issued or assumed. 4 § 1902. Contents of securities certificates. 5 § 1903. Registration or rejection of securities certificates. 6 § 1904. Unauthorized securities may be declared void. 7 Chapter 21. Relations with Affiliated Interests 8 § 2101. Definition of affiliated interest. 9 § 2102. Approval of contracts with affiliated interests. 10 § 2103. Continuing supervision and jurisdiction over contracts. 11 § 2104. Contracts to be in writing; cost data. 12 § 2105. Contracts in violation of part void. 13 § 2106. Effect on rates. 14 § 2107. Federal regulatory agencies. 15 SUBPART D. SPECIAL PROVISIONS RELATING TO 16 REGULATION OF PUBLIC UTILITIES 17 Chapter 23. Common Carriers 18 § 2301. Operation and distribution of facilities of common 19 carriers. 20 § 2302. Transfers and time schedules of common carriers. 21 § 2303. Common carrier connections with other lines. 22 § 2304. Liability of common carriers for damages to property 23 in transit; bills of lading. 24 § 2305. Full crews. 25 Chapter 25. Contract Carrier by Motor Vehicle and Broker 26 § 2501. Definitions. 27 § 2502. Regulation and classification of contract carrier and 28 broker. 29 § 2503. Permits required of contract carriers. 30 § 2504. Dual operation by motor carriers. 19770H0489B0533 - 5 -
1 § 2505. Licenses and financial responsibility required of 2 brokers. 3 § 2506. Copies of contracts to be filed with commission; 4 charges and changes therein. 5 § 2507. Minimum rates fixed and practices prescribed on 6 complaint. 7 § 2508. Accounts, records and reports. 8 § 2509. Temporary permits and licenses. 9 Chapter 27. Railroads 10 § 2701. Railroad connections with sidetracks and laterals. 11 § 2702. Construction, relocation, suspension and abolition of 12 crossings. 13 § 2703. Ejectment in crossing cases. 14 § 2704. Compensation for damages occasioned by construction, 15 relocation or abolition of crossings. 16 § 2705. Speedometers. 17 § 2706. Flag protection. 18 Chapter 29. Telephone and Telegraph Wires 19 § 2901. Definitions. 20 § 2902. Private wire for gambling information prohibited. 21 § 2903. Written contract for private wire. 22 § 2904. Joint use of telephone and telegraph facilities. 23 SUBPART E. MISCELLANEOUS PROVISIONS 24 Chapter 31. Foreign Trade Zones 25 § 3101. Operation as a public utility. 26 § 3102. Establishment by private corporations and 27 municipalities. 28 § 3103. Formation and authority of private corporations. 29 § 3104. Municipalities and corporations to comply with law; 30 forfeiture of rights. 19770H0489B0533 - 6 -
1 § 3105. Reports to Department of Community Affairs. 2 Chapter 33. Violations and Penalties 3 § 3301. Civil penalties for violations. 4 § 3302. Criminal penalties for violations. 5 § 3303. Nonliability for enforcement of lawful tariffs and 6 rates. 7 § 3304. Unlawful issuance and assumption of securities. 8 § 3305. Misapplication of proceeds of securities. 9 § 3306. Execution of unlawful contracts. 10 § 3307. Refusal to obey subpoena and testify. 11 § 3308. Concealment of witnesses and records. 12 § 3309. Liability for damages occasioned by unlawful acts. 13 § 3310. Unauthorized operation by carriers and brokers. 14 § 3311. Bribery. 15 § 3312. Evasion of motor carrier and broker regulations. 16 § 3313. Excessive price on resale. 17 § 3314. Limitation of actions and cumulation of remedies. 18 § 3315. Disposition of fines and penalties. 19 PART II. OTHER PROVISIONS (Reserved) 20 The General Assembly of the Commonwealth of Pennsylvania 21 hereby enacts as follows: 22 Section 1. Title 66, act of November 25, 1970 (P.L.707, 23 No.230), known as the Pennsylvania Consolidated Statutes, is 24 amended by adding parts to read: 25 TITLE 66 26 PUBLIC UTILITIES 27 Parts 28 I. Public Utility Code 29 II. Other Provisions (Reserved) 30 PART I 19770H0489B0533 - 7 -
1 PUBLIC UTILITY CODE 2 Subpart 3 A. Preliminary Provisions 4 B. Commission Powers, Duties, Practices and Procedures 5 C. Regulation of Public Utilities Generally 6 D. Special Provisions Relating to Regulation of Public 7 Utilities 8 E. Miscellaneous Provisions 9 SUBPART A 10 PRELIMINARY PROVISIONS 1 Chapter 2 1. General Provisions 3 3. Public Utility Commission 4 CHAPTER 1 5 GENERAL PROVISIONS 6 Sec. 7 101. Short title of part. 8 102. Definitions. 9 103. Prior rights preserved. 10 104. Interstate and foreign commerce. 11 § 101. Short title of part. 12 This part shall be known and may be cited as the "Public 13 Utility Code." 14 § 102. Definitions. 15 Subject to additional definitions contained in subsequent 16 provisions of this part which are applicable to specific 17 provisions of this part, the following words and phrases when 18 used in this part shall have, unless the context clearly 19 indicates otherwise, the meanings given to them in this section: 19770H0489B0533 - 8 -
1 "Commission." The Pennsylvania Public Utility Commission of 2 this Commonwealth. 3 "Common carrier." Any and all persons or corporations 4 holding out, offering, or undertaking, directly or indirectly, 5 service for compensation to the public for the transportation of 6 passengers or property, or both, or any class of passengers or 7 property, between points within this Commonwealth by, through, 8 over, above, or under land, water, or air, and shall include 9 forwarders, but shall not include contract carriers by motor 10 vehicles, or brokers, or any bona fide cooperative association 11 transporting property exclusively for the members of such 12 association on a nonprofit basis. 13 "Common carrier by motor vehicle." Any common carrier who or 14 which holds out or undertakes the transportation of passengers 15 or property, or both, or any class of passengers or property, 16 between points within this Commonwealth by motor vehicle for 17 compensation, whether or not the owner or operator of such motor 18 vehicle, or who or which provides or furnishes any motor 19 vehicle, with or without driver, for transportation or for use 20 in transportation of persons or property as aforesaid, and shall 21 include common carriers by rail, water, or air, and express or 22 forwarding public utilities insofar as such common carriers or 23 such public utilities are engaged in such motor vehicle 24 operations, but does not include: 25 (1) A lessor under a lease given on a bona fide sale of 26 a motor vehicle where the lessor retains or assumes no 27 responsibility for maintenance, supervision, or control of 28 the motor vehicles so sold. 29 (2) Transportation of school children for school 30 purposes or to and from school sponsored extra curricular 19770H0489B0533 - 9 -
1 activities whether as participants or spectators, together 2 with chaperons who might accompany them as designated by the 3 board of school directors not exceeding five in number, or 4 between their homes and Sunday school in any motor vehicle 5 owned by the school district, private school or parochial 6 school, or transportation of school children between their 7 homes and school or to and from school-sponsored extra 8 curricular or educational activities whether as participants 9 or spectators, together with chaperons who might accompany 10 them as designated by the board of school directors not 11 exceeding five in number, if the person performing the extra 12 curricular transportation has a contract for the 13 transportation of school children between their homes and 14 school, with the private or parochial school, with the school 15 district or jointure in which the school is located, or with 16 a school district that is a member of a jointure in which the 17 school is located if the jointure has no contracts with other 18 persons for the transportation of students between their 19 homes and school, and if the person maintains a copy of all 20 contracts in the vehicle at all times, or children between 21 their homes and Sunday school in any motor vehicle operated 22 under contract with the school district, private school or 23 parochial school. 24 (3) Any owner or operator of a farm transporting 25 agricultural products from, or farm supplies to, such farm, 26 or any independent contractor or cooperative agricultural 27 association hauling agricultural products or farm supplies 28 exclusively for one or more owners or operators of farms. 29 (4) Any person or corporation who or which uses, or 30 furnishes for use, dump trucks for the transportation of 19770H0489B0533 - 10 -
1 ashes, rubbish, excavated and road construction materials. 2 (5) Transportation of property by the owner to himself, 3 or to purchasers directly from him, in vehicles owned and 4 operated by the owner of such property and not otherwise used 5 in transportation of property for compensation for others. 6 (6) Transportation of voting machines to and from 7 polling places by any person or corporation for or on behalf 8 of any political subdivision of this Commonwealth for use in 9 any primary, general, municipal or special election. 10 (7) Transportation of pulpwood, chemical wood, saw logs 11 or veneer logs from woodlots. 12 (8) Transportation by towing of wrecked or disabled 13 motor vehicles. 14 (9) Any person or corporation who or which furnishes 15 transportation for any injured, ill or dead person. 16 "Corporation." All bodies corporate, joint-stock companies, 17 or associations, domestic or foreign, their lessees, assignees, 18 trustees, receivers, or other successors in interest, having any 19 of the powers or privileges of corporations not possessed by 20 individuals or partnerships, but shall not include municipal 21 corporations, except as otherwise expressly provided in this 22 part, nor bona fide cooperative associations which furnish 23 service on a nonprofit basis only to their stockholders or 24 members. 25 "Facilities." All the plant and equipment of a public 26 utility, including all tangible and intangible real and personal 27 property without limitation, and any and all means and 28 instrumentalities in any manner owned, operated, leased, 29 licensed, used, controlled, furnished, or supplied for, by, or 30 in connection with, the business of any public utility. Property 19770H0489B0533 - 11 -
1 owned by the Commonwealth or any municipal corporation prior to 2 June 1, 1937, shall not be subject to the commission or to any 3 of the terms of this part, except as elsewhere expressly 4 provided in this part. 5 "Forwarder." Any person or corporation not included in the 6 terms "motor carrier" or "broker" who or which issues receipts 7 or billings for property received by such person or corporation 8 for transportation, forwarding, or consolidating, or for 9 distribution by any medium of transportation or combination or 10 media of transportation, other than solely by motor vehicle. 11 "Motor carrier." A common carrier by motor vehicle, and a 12 contract carrier by motor vehicle. 13 "Motor vehicle." Any vehicle which is self-propelled, 14 excepting power shovels, tractors other than truck tractors, 15 road rollers, agricultural machinery, and vehicles which solely 16 move upon or are guided by a track, or travel through the air. 17 "Municipal corporation." All cities, boroughs, towns, 18 townships, or counties of this Commonwealth, and also any public 19 corporation, authority, or body whatsoever created or organized 20 under any law of this Commonwealth for the purpose of rendering 21 any service similar to that of a public utility. 22 "Person." Individuals, partnerships, or associations other 23 than corporations, and includes their lessees, assignees, 24 trustees, receivers, executors, administrators, or other 25 successors in interest. 26 "Public utility." 27 (1) The term "public utility" includes persons or 28 corporations now or hereafter owning or operating in this 29 Commonwealth equipment or facilities for: 30 (i) Producing, generating, transmitting, 19770H0489B0533 - 12 -
1 distributing or furnishing natural or artificial gas, 2 electricity, or steam for the production of light, heat, 3 or power to or for the public for compensation. 4 (ii) Diverting, developing, pumping, impounding, 5 distributing, or furnishing water to or for the public 6 for compensation. 7 (iii) Transporting passengers or property as a 8 common carrier. 9 (iv) Use as a canal, turnpike, tunnel, bridge, 10 wharf, and the like for the public for compensation. 11 (v) Transporting or conveying natural or artificial 12 gas, crude oil, gasoline, or petroleum products, 13 materials for refrigeration, or oxygen or nitrogen, or 14 other fluid substance, by pipeline or conduit, for the 15 public for compensation. 16 (vi) Conveying or transmitting messages or 17 communications by telephone or telegraph or domestic 18 public land mobile radio service including, but not 19 limited to, point-to-point microwave radio service for 20 the public for compensation. 21 (vii) Sewage collection, treatment, or disposal for 22 the public for compensation. 23 (2) The term "public utility" does not include: 24 (i) Any person or corporation, not otherwise a 25 public utility, who or which furnishes service only to 26 himself or itself. 27 (ii) Any bona fide cooperative association which 28 furnishes service only to its stockholders or members on 29 a nonprofit basis. 30 (iii) Any producer of natural gas not engaged in 19770H0489B0533 - 13 -
1 distributing such gas directly to the public for 2 compensation. 3 "Railroad." Every railroad, other than a street railway, by 4 whatsoever power operated, for public use in the conveyance of 5 passengers or property, or both, and all the facilities thereof. 6 "Rate." Every individual, or joint fare, toll, charge, 7 rental, or other compensation whatsoever of any public utility, 8 or contract carrier by motor vehicle, made, demanded, or 9 received for any service within this part, offered, rendered, or 10 furnished by such public utility, or contract carrier by motor 11 vehicle, whether in currency, legal tender, or evidence thereof, 12 in kind, in services or in any other medium or manner 13 whatsoever, and whether received directly or indirectly, and any 14 rules, regulations, practices, classifications or contracts 15 affecting any such compensation, charge, fare, toll, or rental. 16 "Service." Used in its broadest and most inclusive sense, 17 includes any and all acts done, rendered, or performed, and any 18 and all things furnished or supplied, and any and all facilities 19 used, furnished, or supplied by public utilities, or contract 20 carriers by motor vehicle, in the performance of their duties 21 under this part to their patrons, employees, other public 22 utilities, and the public, as well as the interchange of 23 facilities between two or more of them, but shall not include 24 any acts done, rendered or performed, or any thing furnished or 25 supplied, or any facility used, furnished or supplied by public 26 utilities or contract carriers by motor vehicle in the 27 transportation of voting machines to and from polling places for 28 or on behalf of any political subdivision of this Commonwealth 29 for use in any primary, general or special election, or in the 30 transportation of any injured, ill or dead person, or in the 19770H0489B0533 - 14 -
1 transportation by towing of wrecked or disabled motor vehicles, 2 or in the transportation of pulpwood or chemical wood from 3 woodlots. 4 "Street railway." Every railroad and railway, or any 5 extension or extensions thereof, by whatsoever power operated, 6 for public use in the conveyance of passengers or property, or 7 both, located mainly or in part upon, above, below, through, or 8 along any highway in any city, borough, or town, and not 9 constituting or used as a part of a trunk line railroad system, 10 and all the facilities thereof. 11 "Tariff." All schedules of rates, all rules, regulations, 12 practices, or contracts involving any rate or rates, including 13 contracts for interchange of service, and, in the case of a 14 common carrier, schedules showing the method of distribution of 15 the facilities of such common carrier. 16 "Transportation of passengers or property." Any and all 17 service in connection with the receiving, transportation, 18 elevation, transfer in transit, ventilation, refrigeration, 19 icing, storage, handling, and delivering of property, baggage or 20 freight, as well as any and all service in connection with the 21 transportation or carrying of passengers, but shall not mean any 22 service in connection with the receiving, transportation, 23 handling or delivering of voting machines to and from polling 24 places for or on behalf of any political subdivision of this 25 Commonwealth for use in any primary, general or special 26 election, or the transportation of any injured, ill or dead 27 person, or the transportation by towing of wrecked or disabled 28 motor vehicles, or the transportation of pulpwood or chemical 29 wood from woodlots. 30 § 103. Prior rights preserved. 19770H0489B0533 - 15 -
1 (a) Existing law continued.--Except as otherwise 2 specifically provided in this part, it is the intention of this 3 part to continue existing law. Any public utility, contract 4 carrier by motor vehicle, or broker rendering service or having 5 the right to render service on the day preceding the effective 6 date of this part shall be entitled to the full enjoyment and 7 the exercise of all and every right, power and privilege which 8 it lawfully possessed on that date. 9 (b) Existing proceedings, certificates, regulations, tariffs 10 and contracts.--All litigation, hearings, investigations, and 11 other proceedings whatsoever, pending under any repealed statute 12 supplied by this part, shall continue and remain in full force 13 and effect, and may be continued and completed under the 14 provisions of this part. All certificates, permits, licenses, 15 orders, rules, regulations or tariffs made, issued, or filed 16 under any repealed statute supplied by this part, and in full 17 force and effect upon the effective date of this part, shall 18 remain in full force and effect for the term issued, or until 19 revoked, vacated, or modified under the provisions of this part. 20 All existing contracts and obligations of the commission or its 21 predecessor, entered into or created under any repealed statute 22 supplied by this part, and in force and effect upon the 23 effective date of this part, shall remain in full force and 24 effect and shall continue to be performed by the commission. 25 (c) Remedies cumulative.--Except as otherwise provided in 26 this part, nothing in this part shall abridge or alter the 27 existing rights of action or remedies in equity or under common 28 or statutory law of this Commonwealth, and the provisions of 29 this part shall be cumulative and in addition to such rights of 30 action and remedies. 19770H0489B0533 - 16 -
1 § 104. Interstate and foreign commerce. 2 The provisions of this part, except when specifically so 3 provided, shall not apply, or be construed to apply, to commerce 4 with foreign nations, or among the several states, except 5 insofar as the same may be permitted under the provisions of the 6 Constitution of the United States and the acts of Congress. 7 CHAPTER 3 8 PUBLIC UTILITY COMMISSION 9 Subchapter 10 A. General Provisions 11 B. Investigations and Hearings 12 SUBCHAPTER A 13 GENERAL PROVISIONS 14 Sec. 15 301. Establishment, members, qualifications and chairman. 16 302. Removal of commissioner. 17 303. Seal; certified documents. 18 304. Administrative law judges. 19 305. Secretary, employees and consultants. 20 306. Counsel. 21 307. Inspectors for enforcement. 22 308. Bureaus. 23 309. Oaths and subpoenas. 24 310. Depositions. 25 311. Witness fees. 26 312. Privilege and immunity. 27 313. Joint hearings and investigations; reciprocity. 28 314. Investigation of interstate rates, facilities and service. 29 315. Burden of proof. 30 316. Effect of commission action. 19770H0489B0533 - 17 -
1 317. Fees for services rendered by commission. 2 318. Commission to cooperate with other departments. 3 319. Code of ethics. 4 § 301. Establishment, members, qualifications and chairman. 5 (a) Appointment and terms of members.--The Pennsylvania 6 Public Utility Commission, established by the act of March 31, 7 1937 (P.L.160, No.43), as an independent administrative 8 commission, is hereby continued as such and shall consist of 9 five members who shall be appointed by the Governor, by and with 10 the advice and consent of two-thirds of all the members of the 11 Senate, for a term of ten years. No commissioner upon the 12 expiration of his term shall continue to hold office until his 13 successor shall be duly appointed or shall be qualified. 14 (b) Qualifications and restrictions.--Each commissioner, at 15 the time of his appointment and qualification, shall be a 16 resident of this Commonwealth and shall have been a qualified 17 elector therein for a period of at least one year next preceding 18 his appointment, and shall also be not less than 30 years of 19 age. No person shall be appointed a member of the commission who 20 occupies any official relation to any public utility. Commencing 21 July 1, 1977, commissioners shall devote full time to their 22 official duties. No commissioner shall hold any office or 23 position, the duties of which are incompatible with the duties 24 of his office as commissioner, or be engaged in any business, 25 employment or vocation, for which he shall receive any 26 remuneration, except as provided in this chapter. No employee, 27 appointee or official engaged in the service of or in any manner 28 connected with, the commission shall hold any office or 29 position, or be engaged in any employment or vocation, the 30 duties of which are incompatible with his employment in the 19770H0489B0533 - 18 -
1 service of or in connection with the work of the commission. No 2 commissioner shall be paid or accept for any service connected 3 with the office, any fee or emolument other than the salary and 4 expenses provided by law. No commissioner shall participate in 5 any hearing or proceeding in which he has any direct or indirect 6 pecuniary interest. Within 90 days of confirmation, each 7 commissioner shall disclose, at that time and thereafter 8 annually, the existence of all security holdings in any public 9 utility or its affiliates held by such commissioner, his or her 10 spouse and any minor or unemancipated children and must either 11 divest or place in a blind trust such securities. As used in 12 this part, blind trust means a trust over which neither the 13 commissioners, their spouses, nor any minor or unemancipated 14 children shall exercise any managerial control, and from which 15 neither the commissioners, their spouses, nor any minor or 16 unemancipated children shall receive any income from the trust 17 during the commissioner's tenure of office. Such disclosure 18 statement shall be filed with the secretary of the commission 19 and shall be open to inspection by the public during the normal 20 business hours of the commission during the tenure of the 21 commissioner. Every commissioner, and every individual or 22 official, employed or appointed to office under, in the service 23 of, or in connection with, the work of the commission, is 24 forbidden, directly or indirectly, to solicit or request from, 25 or to suggest or recommend to any public utility, or to any 26 officer, attorney, agent or employee thereof, the appointment of 27 any individual to any office, place or position in, or the 28 employment of any individual in any capacity by, such public 29 utility. Every commissioner, every bureau director and every 30 administrative law judge employed or appointed to office under, 19770H0489B0533 - 19 -
1 in the service of or in connection with the work of the 2 commission, is prohibited from accepting employment with any 3 public utility subject to the rules and regulations of the 4 commission for a period of one year after terminating employment 5 or service with the commission. If any person employed or 6 appointed in the service of the commission violates any 7 provision of this section, the commission shall forthwith remove 8 him from the office or employment held by him. 9 (c) Chairman.--A member designated by the Governor shall be 10 the chairman of the commission during such member's term of 11 office. When present, the chairman shall preside at all 12 meetings, but in his absence a member, designated by the 13 chairman, shall preside and shall exercise, for the time being, 14 all the powers of the chairman. 15 (d) Quorum.--A majority of the members of the commission 16 serving in accordance with law shall constitute a quorum and 17 such majority, acting unanimously, shall be required for any 18 action, including the making of any order or the ratification of 19 any act done or order made by one or more of the commissioners. 20 No vacancy in the commission shall impair the right of a quorum 21 of the commissioners to exercise all the rights and perform all 22 the duties of the commission. 23 (e) Compensation.--Each of the commissioners shall receive 24 an annual salary of $35,000, as of January 1, 1977, and $40,000, 25 as of January 1, 1978, except the chairman, who shall receive an 26 annual salary of $37,500, as of January 1, 1977, and $42,500, as 27 of January 1, 1978. 28 (f) Open proceedings.--The proceedings of the commission 29 shall be conducted in accordance with the provisions of the act 30 of July 19, 1974 (P.L.486, No.175), referred to as the Public 19770H0489B0533 - 20 -
1 Agency Open Meeting Law. 2 (g) Monitoring cases.--Each commissioner shall be 3 responsible for monitoring specified cases as shall be assigned 4 to him in a manner determined by the commission. All proceedings 5 properly before the commission shall be assigned immediately 6 upon filing. 7 § 302. Removal of commissioner. 8 The Governor, by and with the consent of two-thirds of all of 9 the members of the Senate, shall remove from office any 10 commissioner who violates the provision of section 301(b) 11 (relating to establishment, members, qualifications and 12 chairman) requiring commissioners to devote full time to their 13 official duties and may remove any commissioner for 14 inefficiency, neglect of duty or misconduct in office, giving 15 him a copy of the charges against him, and affording him an 16 opportunity to be publicly heard in person or by counsel in his 17 own defense upon not less than ten days notice. If the 18 commissioner is removed, the Governor shall file with the 19 Department of State a complete statement of all charges made 20 against the commissioner and his finding thereon, together with 21 a complete record of the proceedings. 22 § 303. Seal; certified documents. 23 (a) Seal.--The commission shall adopt and use an official 24 seal, by which the commission shall authenticate its 25 proceedings, and of which seal the courts shall take judicial 26 notice. A copy of any paper or document on file with the 27 commission authenticated by any such seal shall be evidence 28 equally and in like manner as the original. 29 (b) Certified copies of documents admissible in evidence.-- 30 Copies of all official documents and orders filed or deposited 19770H0489B0533 - 21 -
1 in the office of the commission, certified by the secretary 2 under the official seal of the commission to be true copies of 3 the originals, shall be evidence in like manner as the 4 originals, in all matters before the commission and in the 5 courts of this Commonwealth. 6 § 304. Administrative law judges. 7 (a) General rule.--The office of administrative law judge to 8 the Pennsylvania Public Utility Commission is hereby created. 9 The commission shall have the power to appoint as many qualified 10 and competent administrative law judges as may be necessary for 11 proceedings pursuant to this part, and who shall devote full 12 time to their official duties and who shall perform no duties 13 inconsistent with their duties and responsibilities as 14 administrative law judges. Administrative law judges shall be 15 afforded employment security as provided by the act of August 5, 16 1941 (P.L.752, No.286), known as the "Civil Service Act." 17 Compensation for administrative law judges shall be established 18 by the commission within a range of $25,000 to $35,000. If the 19 commission is occasionally and temporarily understaffed of 20 administrative law judges, the commission may appoint qualified 21 and competent persons who meet the minimum standards established 22 by this part to temporarily serve as such judges, who shall 23 serve at the pleasure of the commission and shall receive such 24 compensation as the commission may establish. 25 (b) Staff.--The commission may appoint secretaries and legal 26 or technical advisors to assist each judge in performance of his 27 duties or may assign personnel from any of the other bureaus 28 within the commission. 29 (c) Qualifications.--All judges must meet the following 30 minimum requirements: 19770H0489B0533 - 22 -
1 (1) Be an attorney in good standing before the Supreme 2 Court of Pennsylvania. 3 (2) Have three years of practice before administrative 4 agencies or equivalent experience. 5 (3) Conform to such other requirements as shall be 6 established by the commission. 7 (d) Chief administrative law judge.--The commission shall 8 appoint one of the administrative law judges as chief 9 administrative law judge who shall be responsible for assigning 10 a hearing judge to every proceeding before the commission which 11 may require the utilization of an administrative law judge and 12 who shall receive remuneration above that of any other 13 administrative law judge. The position of chief administrative 14 law judge may not be withdrawn from a person so appointed, nor 15 his salary diminished, except for good cause shown. The chief 16 administrative law judge shall have such other responsibilities 17 as the commission may by rule prescribe. 18 § 305. Secretary, employees and consultants. 19 (a) Secretary.--The commission may appoint and fix the 20 compensation of a secretary to hold office at its pleasure. The 21 secretary shall have such powers and shall perform such duties 22 not contrary to law as the commission shall prescribe. The 23 commission shall have power and authority to designate, from 24 time to time, one of its clerks to perform the duties of the 25 secretary during his absence, and the clerk so designated shall 26 possess, for the time so designated, the powers of the secretary 27 of the commission. 28 (b) Employees and consultants.--The commission may appoint, 29 fix the compensation of, authorize and delegate such officers, 30 consultants, experts, engineers, statisticians, accountants, 19770H0489B0533 - 23 -
1 inspectors, clerks and employees as may be appropriate for the 2 proper conduct of the work of the commission. The total 3 compensation paid to consultants in any fiscal year shall not 4 exceed 4% of the commission's budget. The commission shall keep 5 records of the names of each consultant, the services performed 6 for the commission, and the amounts expended for each 7 consultant's services. The commission shall submit these records 8 as a part of its annual budget submission. Such records shall be 9 a matter of public record open for inspection at the office of 10 the commission during the normal business hours of the 11 commission. The commission shall establish, after consultation 12 with the Civil Service Commission, standardized qualifications 13 for employment and advancement, and all titles, and establish 14 different standards for different kinds, grades, and classes of 15 similar work or service. The employees of the commission shall 16 be afforded employment security as provided by the act of August 17 5, 1941 (P.L.752, No.286), known as the "Civil Service Act," or 18 the appropriate collective bargaining agreement, whichever is 19 applicable, but the commission shall set the salaries of all 20 employees in accordance with the employment standards 21 established under this section. 22 § 306. Counsel. 23 The office of chief counsel to the Pennsylvania Public 24 Utility Commission is hereby created. The chief counsel shall be 25 appointed by the commission and hold office at its pleasure. The 26 commission may also from time to time appoint such assistant 27 counsel to the commission as may be required for the proper 28 conduct of its work. Assistant counsel may be removed by the 29 commission only for good cause. The compensation of the counsel 30 shall be fixed by the commission. In accordance with the 19770H0489B0533 - 24 -
1 multifunction legal staff established in this part, such counsel 2 shall attend the hearings before the commission or a 3 commissioner, or a special agent or administrative law judge, 4 and conduct the examination of witnesses and shall represent the 5 commission upon appeals and other hearings in the courts of 6 common pleas and in the Commonwealth and Supreme Courts, or 7 other courts of this Commonwealth, or in any Federal court or 8 agency and in actions instituted to recover penalties and to 9 enforce regulations and orders of the commission. Such counsel 10 shall also assist the Attorney General in conducting all 11 mandamus, injunction and quo warranto proceedings at law or in 12 equity, instituted by him for the enforcement of the regulations 13 and orders of the commission, and shall perform such other 14 professional duties as may be required of them by the 15 commission. 16 § 307. Inspectors for enforcement. 17 The commission may employ such inspectors, as it may deem 18 necessary, for the purpose of enforcing the provisions of this 19 part. Such inspectors are hereby declared to be police officers, 20 and are hereby given police power and authority throughout this 21 Commonwealth to arrest on view, without writ, rule, order, or 22 process, any person operating as a motor carrier or common 23 carrier by airplane without a certificate or permit required by 24 this part. Such inspectors are hereby given authority to stop 25 vehicles on the highways of this Commonwealth, and to inspect 26 the cargoes of such vehicles, and any receipts or bills of 27 lading pertaining to such cargoes. 28 § 308. Bureaus. 29 (a) Enumeration.--There shall be established within the 30 commission the following bureaus and functions: 19770H0489B0533 - 25 -
1 (1) Law Bureau. 2 (2) Bureau of Conservation, Economics and Energy 3 Planning. 4 (3) Bureau of Consumer Services. 5 (b) Law Bureau.--The Law Bureau shall be a multifunction 6 legal staff, consisting of a prosecutory function and an 7 advisory function. Prosecutory counsel shall be responsible for 8 and shall assist in the development of, challenge of, and 9 representation on the record of all matters in the public's 10 interest. Advisory counsel shall advise the commission on any 11 and all matters. The counsel shall appear on behalf of the 12 commission in all courts of record and before district 13 magistrates. No counsel shall in the same case or a factually 14 related case perform duties in the prosecutory and advisory 15 functions, if such performance would represent a conflict of 16 interest. 17 (c) Bureau of Conservation, Economics and Energy Planning.-- 18 The Bureau of Conservation, Economics and Energy Planning shall 19 conduct studies and research all matters within the commission's 20 jurisdiction and advise the commission of the results thereof in 21 order to enable the commission to provide prospective regulation 22 in the best interest of all parties concerned. Such studies and 23 research shall include long range forecasting of energy needs 24 and development; research into the use of new, efficient and 25 economic methods of energy production; the review of the 26 efficiency of the present generating systems operated within 27 this Commonwealth; and the development of an effective program 28 of energy conservation. The commission shall require all 29 electric and gas public utilities subject to its jurisdiction to 30 file with it an annual conservation report which shows the plans 19770H0489B0533 - 26 -
1 and progress achieved on programs of energy conservation. The 2 commission shall, by rule, prescribe guidelines for the form and 3 manner of such annual conservation report which report shall 4 describe the current and proposed programs of each such utility 5 designed to educate and encourage its customers in the optimum, 6 effective and efficient use by them of electric and gas energy. 7 The report shall include an accounting of the monetary and 8 personnel resources actually or proposed to be expended or 9 devoted to and the actual or anticipated results of such 10 programs. The bureau shall review all proposals for electric and 11 gas public utility plant expansion and shall submit for 12 consideration of the commission its findings on what impact, if 13 any, the electric and gas public utility plant expansion will 14 have on rates charged by the public utility. 15 (d) Bureau of Consumer Services.--The Bureau of Consumer 16 Services shall investigate and have prepared replies to all 17 informal consumer complaints and shall advise the commission as 18 to the need for formal commission action on any matters brought 19 to its attention by the complaints. The bureau shall on behalf 20 of the commission keep records of all complaints received, the 21 matter complained of, the utility involved, and the disposition 22 thereof and shall at least annually report to the commission on 23 such matters. The commission may take official notice of all 24 complaints and the nature thereof in any proceeding before the 25 commission in which the utility is a party. The commission shall 26 adopt, publish and generally make available rules by which a 27 consumer may make informal complaints. The bureau shall also 28 assist and advise the commission on matters of safety compliance 29 by public utilities. 30 (e) Other bureaus.--The commission shall establish such 19770H0489B0533 - 27 -
1 bureau or bureaus to perform such duties as the commission may 2 prescribe regarding all matters respecting rates of public 3 utilities and all matters respecting common carriers and 4 contract carriers. The establishment of these bureaus shall not 5 be construed to prohibit the commission from establishing any 6 additional bureaus which the commission finds necessary to 7 protect the interests of the people of this Commonwealth. The 8 bureaus may perform such other duties not inconsistent with law 9 as the commission may direct. 10 (f) Staff testimony.--Members of the staff of the commission 11 shall appear and present testimony in any proceeding before the 12 commission when called by the commission or any of the parties 13 to the proceeding. In addition to any cross-examination by 14 counsel as provided in section 306 (relating to counsel), any 15 member of the commission staff who participates in the analysis, 16 review and conclusions in any proceedings before the commission 17 may, in the discretion of commission counsel and with the 18 consent of the presiding officer, cross-examine any witness 19 presented by the parties to the proceeding at the public 20 hearing. 21 § 309. Oaths and subpoenas. 22 The commission, or its representative, shall have the power, 23 in any part of this Commonwealth, to subpoena witnesses, to 24 administer oaths, to examine witnesses, or to take such 25 testimony, or compel the production of such books, records, 26 papers, and documents as it may deem necessary or proper in, and 27 pertinent to, any proceeding, investigation, or hearing, held or 28 had by it, and to do all necessary and proper things and acts in 29 the lawful exercise of its powers or the performance of its 30 duties. The fees for serving a subpoena shall be the same as 19770H0489B0533 - 28 -
1 those paid sheriffs for similar services. 2 § 310. Depositions. 3 The commission, or any commissioner, or any party to 4 proceedings before the commission, may cause the deposition of 5 witnesses residing within or without this Commonwealth to be 6 taken in the manner prescribed by the Pennsylvania Rules of 7 Civil Procedure for taking depositions in civil actions. 8 § 311. Witness fees. 9 Witnesses who are summoned before the commission shall be 10 paid the same fees and mileage as are paid to witnesses in the 11 courts of common pleas. Witnesses whose depositions are taken 12 pursuant to the provisions of this part, and the officer taking 13 the same, shall be entitled to the same fees as are paid for 14 like services in such courts. All disbursements made in the 15 payment of such fees shall be included in and paid in the same 16 manner as is provided for the payment of other expenses of the 17 commission. 18 § 312. Privilege and immunity. 19 No person shall be excused from testifying or from producing 20 any book, document, paper, or account in any investigation or 21 inquiry by, or hearing before, the commission or its 22 representative, when ordered to do so, upon the ground that the 23 testimony or evidence, book, document, paper, or account 24 required may tend to incriminate him or subject him to penalty 25 or forfeiture. No person shall be prosecuted, punished, or 26 subjected to any forfeiture or penalty for or on account of any 27 act, transaction, matter, or thing concerning which he shall 28 have been compelled, under objection, to testify or produce 29 documentary evidence. No person so testifying shall be exempt 30 from prosecution or punishment for any perjury committed by him 19770H0489B0533 - 29 -
1 in his testimony. 2 § 313. Joint hearings and investigations; reciprocity. 3 (a) Joint hearings and investigations.--The commission shall 4 have full power and authority to make joint investigations, hold 5 joint hearings within or without this Commonwealth, and issue 6 joint or concurrent orders in conjunction or concurrence with 7 any official, board, commission, or agency of any state or of 8 the United States, whether in the holding of such investigations 9 or hearings, or in the making of such orders, the commission 10 shall function under agreements or compacts between states or 11 under the concurrent power of states to regulate the interstate 12 commerce, or as an agency of the Federal Government, or 13 otherwise. 14 (b) Reciprocity.--The commission shall have full power and 15 authority to arrange reciprocity of treatment of public 16 utilities and contract carriers by motor vehicle of this 17 Commonwealth by regulatory bodies, under regulatory laws of 18 other states, and to that end the commission is hereby vested 19 with power to impose upon public utilities and contract carriers 20 by motor vehicle of other states, the same penalties, 21 restrictions, and regulations as are imposed by the regulatory 22 body of such other states upon public utilities and contract 23 carriers by motor vehicle of this Commonwealth when operating 24 into, out of, or through such other states. 25 § 314. Investigation of interstate rates, facilities and 26 service. 27 The commission may investigate the interstate rates, traffic 28 facilities, or service of any public utility within this 29 Commonwealth, and when such rates, facilities or service are, in 30 the determination of the commission, unjust, unreasonable, 19770H0489B0533 - 30 -
1 discriminatory or in violation of any Federal law, or in 2 conflict with the rulings, orders or regulations of any Federal 3 regulatory body, the commission may apply, by petition to the 4 proper Federal regulatory body, for relief, or may present to 5 the proper Federal regulatory body all facts coming to its 6 knowledge as to the violation of the rules, orders, or 7 regulations of such regulatory body, or as to the violation of 8 the particular Federal law. 9 § 315. Burden of proof. 10 (a) Reasonableness of rates.--In any proceeding upon the 11 motion of the commission, involving any proposed or existing 12 rate of any public utility, or in any proceedings upon complaint 13 involving any proposed increase in rates, the burden of proof to 14 show that the rate involved is just and reasonable shall be upon 15 the public utility. The commission shall give to the hearing and 16 decision of any such proceeding preference over all other 17 proceedings, and decide the same as speedily as possible. 18 (b) Compliance with commission determinations and orders.-- 19 In any case involving any alleged violation by a public utility, 20 contract carrier by motor vehicle, or broker of any lawful 21 determination or order of the commission, the burden of proof 22 shall be upon the public utility, contract carrier by motor 23 vehicle, or broker complained against, to show that the 24 determination or order of the commission has been complied with. 25 (c) Adequacy of services and facilities.--In any proceeding 26 upon the motion of the commission, involving the service or 27 facilities of any public utility, the burden of proof to show 28 that the service and facilities involved are adequate, 29 efficient, safe, and reasonable shall be upon the public 30 utility. 19770H0489B0533 - 31 -
1 (d) Justification of accounting entries.--The burden of 2 proof to justify every accounting entry questioned by the 3 commission shall be upon the public utility making, authorizing, 4 or requiring such entry, and the commission may suspend any 5 charge or credit pending submission of such proof by such public 6 utility. 7 (e) Use of future test year.--In discharging its burden of 8 proof the utility may utilize a future test year. The commission 9 shall promptly adopt rules and regulations regarding the 10 information and data to be submitted when and if a future test 11 period is to be utilized. Whenever a utility utilizes a future 12 test year in any rate proceeding and such future test year forms 13 a substantive basis for the final rate determination of the 14 commission, the utility shall provide, as specified by the 15 commission in its final order, appropriate data evidencing the 16 accuracy of the estimates contained in the future test year, and 17 the commission may after reasonable notice and hearing, in its 18 discretion, adjust the utility's rates on the basis of such 19 data. 20 § 316. Effect of commission action. 21 Whenever the commission shall make any rule, regulation, 22 finding, determination or order, the same shall be prima facie 23 evidence of the facts found and shall remain conclusive upon all 24 parties affected thereby, unless set aside, annulled or modified 25 on judicial review. 26 § 317. Fees for services rendered by commission. 27 (a) General rule.--The commission shall by rule establish on 28 a reasonable cost basis the fees to be charged and collected for 29 the following services: 30 (1) Copies of paper, testimony and records. 19770H0489B0533 - 32 -
1 (2) Certifying a copy of any paper, testimony or record. 2 (3) Preparing and certifying to the Commonwealth Court 3 any record in an appeal. 4 (4) Filing of each securities certificate, or each 5 application for a certificate of public convenience, 6 registration certificate, permit or license. 7 (b) Fees for testing.--The commission shall charge and 8 collect from public utilities for the testing of their 9 instruments of precision and measuring apparatus the following 10 fees: 11 For testing each watthour meter, $16. 12 For testing each indicating instrument, $10. 13 For testing each instrument transformer, $10. 14 For testing each standard cell, $5. 15 For testing each standard resistance, $10. 16 For testing each potentiometer, $50. 17 For testing each gas meter prover, $35. 18 For testing each calorimeter tested at the gas company's 19 plant, $35. 20 For testing each calorimeter tested at the commission 21 laboratory, $10. 22 For each water meter testing apparatus tested at the 23 company's plant, $15. 24 For each water meter tested at the commission laboratory, 25 $3. 26 § 318. Commission to cooperate with other departments. 27 (a) Vehicle registration plates.--The Department of 28 Transportation and the commission are hereby authorized and 29 directed to cooperate in the issuance by the Department of 30 Transportation, under the provisions of Title 75 (relating to 19770H0489B0533 - 33 -
1 vehicles), of registration plates for commercial motor vehicles, 2 which will classify and identify motor vehicles operated under 3 certificates or permits issued by the commission, without the 4 necessity of the requirement of separate identification plates 5 in addition to registration plates required under Title 75. 6 (b) Purity of water supply.--The commission may certify to 7 the Department of Environmental Resources any question of fact 8 regarding the purity of water supplied to the public by any 9 public utility over which it has jurisdiction, when any such 10 question arises in any controversy or other proceeding before 11 it, and upon the determination of such question by the 12 department incorporate the department's findings in its 13 decision. 14 (c) Powers of certain governmental agencies unaffected.-- 15 Nothing in this part shall be construed to deprive the 16 Department of Health or the Department of Environmental 17 Resources of any jurisdiction, powers or duties now vested in 18 them. 19 § 319. Code of ethics. 20 (a) General rule.--Each commissioner and each administrative 21 law judge shall conform to the following code of ethics for the 22 Public Utility Commission. A commissioner and an administrative 23 law judge must: 24 (1) Avoid impropriety and the appearance of impropriety 25 in all activities. 26 (2) Perform all duties impartially and diligently. 27 (3) Avoid all ex parte communications prohibited in this 28 part. 29 (4) Abstain publicly from expressing, other than in 30 executive or public session, his personal views on the merits 19770H0489B0533 - 34 -
1 of a matter pending before the commission and require similar 2 abstention on the part of commission personnel subject to his 3 direction and control. 4 (5) Require staff and personnel subject to his direction 5 to observe the standards of fidelity and diligence that apply 6 to the commissioner and administrative law judge. 7 (6) Initiate appropriate disciplinary measures against 8 commission personnel for unprofessional conduct. 9 (7) Disqualify himself from proceedings in which his 10 impartiality might be reasonably questioned. 11 (8) Inform himself about his personal and fiduciary 12 interests and make a reasonable effort to inform himself 13 about the personal financial interests of his spouse and 14 children. 15 (9) Regulate his extra-curricular activities to minimize 16 the risk of conflict with his official duties. He may speak, 17 write or lecture and any reimbursed expenses, honorariums, 18 royalties, or other moneys received in connection therewith 19 shall be disclosed annually. Such disclosure statement shall 20 be filed with the secretary of the commission and shall be 21 open to inspection by the public during the normal business 22 hours of the commission during the tenure of the commissioner 23 or of the administrative law judge. 24 (10) Refrain from solicitation of funds for any 25 political, educational, religious, charitable, fraternal or 26 civic purposes, although he may be an officer, director or 27 trustee of such organizations. 28 (11) Refrain from financial or business dealing which 29 would tend to reflect adversely on impartiality, although the 30 commissioner or administrative law judge may hold and manage 19770H0489B0533 - 35 -
1 investments which are not incompatible with the duties of his 2 office. 3 (12) Conform to such additional rules as the commission 4 may prescribe. 5 (b) Removal of commissioner for violation.--Any commissioner 6 who violates the provisions of subsection (a) shall be removed 7 from office in the manner provided in section 302 (relating to 8 removal of commissioner). 9 (c) Removal of judge for violation.--Any administrative law 10 judge who violates the provisions of subsection (a) shall be 11 removed from office in the manner provided by the act of August 12 5, 1941 (P.L.752, No.286), known as the "Civil Service Act." 13 SUBCHAPTER B 14 INVESTIGATIONS AND HEARINGS 15 Sec. 16 331. Powers of commission and administrative law judges. 17 332. Procedures in general. 18 333. Prehearing procedures. 19 334. Presiding officers. 20 335. Initial decisions. 21 § 331. Powers of commission and administrative law judges. 22 (a) General rule.--Any investigation, inquiry or hearing 23 which the commission has power to undertake or hold shall be 24 conducted pursuant to the provisions of this chapter. 25 (b) Powers of chairman.--The commission may authorize the 26 chairman to: 27 (1) Designate the time and place for the conducting of 28 investigations, inquiries and hearings. 29 (2) Assign cases to a commissioner or commissioners for 30 hearing, investigation, inquiry, study or other similar 19770H0489B0533 - 36 -
1 purposes. 2 (3) Assign cases to special agents or administrative law 3 judges for the taking and receiving of evidence. 4 (4) Direct and designate officers and employees of the 5 commission to make investigations, inspections, inquiries, 6 studies and other like assignments for reports to the 7 commission. 8 (5) Be responsible through the secretary for 9 specifically enumerated daily administrative operations of 10 the commission. 11 (c) Requirements for presiding officers.--There shall 12 preside at the taking of evidence the commission, one or more 13 commissioners, or one or more administrative law judges 14 appointed as provided in this chapter. The functions of all 15 presiding officers shall be conducted in an impartial manner. 16 Any such officer may at any time withdraw from a proceeding if 17 he deems himself disqualified, and, upon the filing in good 18 faith of a timely and sufficient affidavit of personal bias or 19 disqualification of any such officer, the commission shall 20 determine the matter as a part of the record and decision in the 21 proceeding. 22 (d) Authority of presiding officers.--In addition to any 23 administrative rules of procedure contained in this part, the 24 commission may adopt and publish such additional rules of 25 procedure as are not inconsistent with this part. Officers 26 presiding at hearings shall have authority subject to the 27 published rules of the commission and within its powers, to: 28 (1) Administer oaths and affirmations. 29 (2) Issue subpoenas authorized by law. 30 (3) Rule upon offers of proof and receive relevant 19770H0489B0533 - 37 -
1 evidence, take or cause depositions to be taken whenever the 2 ends of justice would be served thereby. 3 (4) Regulate the course of the hearing. 4 (5) Hold conferences for settlement or simplification of 5 the issues by consent of the parties. 6 (6) Dispose of procedural requests or similar matters. 7 (7) Make decisions or recommend decisions in conformity 8 within this part. 9 (8) Take any other action authorized by commission rule. 10 (e) Interlocutory appeals.--A presiding officer may certify 11 to the commission, or allow the parties an interlocutory appeal 12 to the commission on any material question arising in the course 13 of a proceeding, where he finds that it is necessary to do so to 14 prevent substantial prejudice to any party or to expedite the 15 conduct of the proceeding. The presiding officer or the 16 commission may thereafter stay the proceeding if necessary to 17 protect the substantial rights of any of the parties therein. 18 The commission shall determine the question forthwith and the 19 hearing and further decision shall thereafter be governed 20 accordingly. No interlocutory appeal to the commission shall 21 otherwise be allowed, except as may be allowed by the 22 commission. 23 (f) Declaratory orders.--The commission, with like effect as 24 in the case of other orders, and in its sound discretion, may 25 issue a declaratory order to terminate a controversy or remove 26 uncertainty. 27 (g) Official notice defined.--As used in this chapter the 28 term "official notice" means a method by which the commission 29 may notify all parties that no further evidence will be heard on 30 a material fact and that unless the parties prove to the 19770H0489B0533 - 38 -
1 contrary, the commission's findings will include that particular 2 fact. 3 § 332. Procedures in general. 4 (a) Burden of proof.--Except as may be otherwise provided in 5 section 315 (relating to burden of proof) or other provisions of 6 this part or other relevant statute, the proponent of a rule or 7 order has the burden of proof. 8 (b) Admissibility of evidence.--Any oral or documentary 9 evidence may be received, but the commission shall as a matter 10 of policy provide for the exclusion of irrelevant, immaterial or 11 unduly repetitious evidence. No sanction shall be imposed or 12 rule or order be issued except upon consideration of the whole 13 record or such portions thereof as may be cited by any party and 14 as supported by and in accordance with the reliable, probative 15 and substantial evidence. 16 (c) Submission of evidence.--Every party is entitled to 17 present his case or defense by oral or documentary evidence, to 18 submit rebuttal evidence and to conduct such cross-examination 19 as may be required for a full and true disclosure of the facts. 20 The commission may, by rule, adopt procedures for the submission 21 of all or part of the evidence in written form. 22 (d) Record, briefs and argument.--The transcript of 23 testimony and exhibits, together with all papers and requests 24 filed in the proceeding, constitutes the exclusive record for 25 decision, and shall be available for inspection by the public. 26 Briefing and oral argument shall be held in accordance with 27 rules established by the commission. 28 (e) Official notice of facts.--When the commission's 29 decision rests on official notice of a material fact not 30 appearing in the evidence in the record, upon notification that 19770H0489B0533 - 39 -
1 facts are about to be or have been noticed, any party adversely 2 affected shall have the opportunity upon timely request to show 3 that the facts are not properly noticed or that alternative 4 facts should be noticed. The commission in its discretion shall 5 determine whether written presentations suffice, or whether oral 6 argument, oral evidence, or cross-examination is appropriate in 7 the circumstances. Nothing in this subsection shall affect the 8 application by the commission in appropriate circumstances of 9 the doctrine of judicial notice. 10 (f) Actions of parties and counsel.--Any party who shall 11 fail to be represented at a scheduled conference or hearing 12 after being duly notified thereof, shall be deemed to have 13 waived the opportunity to participate in such conference or 14 hearing, and shall not be permitted thereafter to reopen the 15 disposition of any matter accomplished thereat, or to recall for 16 further examination of witnesses who were excused, unless the 17 presiding officer shall determine that failure to be represented 18 was unavoidable and that the interests of the other parties and 19 the public would not be prejudiced by permitting such reopening 20 or further examination. If the actions of a party or counsel in 21 a proceeding shall be determined by the commission, after due 22 notice and opportunity for hearing, to be obstructive to the 23 orderly conduct of the proceeding and inimical to the public 24 interest, the commission may reject or dismiss any rule or order 25 in any manner proposed by the offending party or counsel, and, 26 with respect to counsel, may bar further participation by him in 27 any proceedings before the commission. 28 § 333. Prehearing procedures. 29 (a) Conferences.--The presiding officer shall have the 30 authority to hold one or more prehearing conferences during the 19770H0489B0533 - 40 -
1 course of the proceeding on his own motion or at the request of 2 a party to the proceeding. The presiding officer shall normally 3 hold at least one prehearing conference in proceedings where the 4 issues are complex or where it appears likely that the hearing 5 will last a considerable period of time. In addition to other 6 matters which the commission may prescribe by rule, the 7 presiding officer at a prehearing conference may direct the 8 parties to exchange their evidentiary exhibits and witness lists 9 prior to the hearing. Where good cause exists, the parties may 10 at any time amend, by deletion or supplementation, their 11 evidentiary exhibits and witness lists. 12 (b) Depositions.--A party to the proceeding shall be able to 13 take depositions of witnesses upon oral examination or written 14 questions for purposes of discovering relevant, unprivileged 15 information, subject to the following conditions: 16 (1) The taking of depositions shall normally be deferred 17 until there has been at least one prehearing conference. 18 (2) The party seeking to take a deposition shall apply 19 to the presiding officer for an order to do so. 20 (3) The party seeking to take a deposition shall serve 21 copies of the application on the other party or parties to 22 the proceedings, who shall be given an opportunity, along 23 with the deponent, to notify the presiding officer of any 24 objections to the taking of the deposition. 25 (4) The presiding officer shall not grant an application 26 to take a deposition if he finds that the taking of the 27 deposition would result in undue delay. 28 (5) The presiding officer shall otherwise grant an 29 application to take a deposition unless he finds that there 30 is not good cause for doing so. 19770H0489B0533 - 41 -
1 (6) The deposing of a commission employee shall only be 2 allowed upon an order of the presiding officer based on a 3 specific finding that the party applying to take the 4 deposition is seeking significant, unprivileged information 5 not discoverable by alternative means. Any such order shall 6 be subject to an interlocutory appeal to the commission. 7 (7) An order to take a deposition shall be enforceable 8 through the issuance of a subpoena ad testificandum. 9 (c) Disclosure of information on witnesses.--At the 10 prehearing conference or at some other reasonable time prior to 11 the hearing, which may be established by commission rule, each 12 party to the proceeding shall make available to the other 13 parties to the proceeding the names of the witnesses he expects 14 to call and the subject matter of their expected testimony. 15 Where good cause exists, the parties shall have the right at any 16 time to amend, by deletion or supplementation, the list of names 17 of the witnesses they plan to call and the subject matter of the 18 expected testimony of those witnesses. 19 (d) Interrogatories.--Any party to a proceeding may serve 20 written interrogatories upon any other party for purposes of 21 discovering relevant, unprivileged information. A party served 22 with interrogatories may, before the time prescribed either by 23 commission rule or otherwise for answering the interrogatories, 24 apply to the presiding officer for the holding of a prehearing 25 conference for the mutual exchange of evidence exhibits and 26 other information. Each interrogatory which requests information 27 not previously supplied at a prehearing conference or hearing 28 shall be answered separately and fully in writing under oath, 29 unless it is objected to, in which event the reasons for the 30 objections shall be stated in lieu of an answer. The party upon 19770H0489B0533 - 42 -
1 whom the interrogatories have been served shall serve a copy of 2 the answers and objections within a reasonable time, unless 3 otherwise specified, upon the party submitting the 4 interrogatories. The party submitting the interrogatories may 5 petition the presiding officer for an order compelling an answer 6 to an interrogatory or interrogatories to which there has been 7 an objection or other failure to answer. The commission shall 8 designate an appropriate official on whom other parties to the 9 proceeding may serve written interrogatories directed to the 10 commission. That official shall arrange for agency personnel 11 with knowledge of the facts to answer and sign the 12 interrogatories on behalf of the commission. The attorney or 13 employee appearing on behalf of the commission in the proceeding 14 shall have the authority to make and sign objections to 15 interrogatories served upon the commission. Interrogatories 16 directed to the commission shall be allowed only upon an order 17 of the commission based upon a specific finding that the 18 interrogating party is seeking significant, unprivileged 19 information not discoverable by alternative means. 20 (e) Requests for admissions.--A party to a proceeding may 21 serve upon any other party and upon the commission to the same 22 extent permissible in subsection (d) a written request for the 23 admission, for purposes of the pending proceeding and to 24 conserve hearing time, of any relevant, unprivileged, undisputed 25 facts, the genuineness of any document described in the request, 26 the admissibility of evidence, the order of proof and other 27 similar matters. 28 (f) Subpoena duces tecum.--A party to a proceeding may 29 obtain in accordance with commission rules a subpoena duces 30 tecum requiring the production of or the making available for 19770H0489B0533 - 43 -
1 inspection, copying or photographing of relevant necessary 2 designated documents at a prehearing conference or other 3 specific time and place. 4 (g) Scheduling.--The presiding officer shall have the 5 authority to impose schedules on the parties to the proceeding 6 specifying the periods of time during which the parties may 7 pursue each means of discovery available to them under the rules 8 of the commission. Such schedules and time periods shall be set 9 with a view to accelerating disposition of the case to the 10 fullest extent consistent with fairness. 11 (h) Certification of interlocutory appeals.--Except as 12 provided in subsection (b)(6), an interlocutory appeal from a 13 ruling of the presiding officer on discovery shall be allowed 14 only upon certification by the presiding officer that the ruling 15 involves an important question of law or policy which should be 16 resolved at that time. Notwithstanding the presiding officer's 17 certification, the commission shall have the authority to 18 dismiss summarily the interlocutory appeal if it should appear 19 that the certification was improvident. An interlocutory appeal 20 shall not result in a stay of the proceedings except upon a 21 finding by the presiding officer and the commission that 22 extraordinary circumstances exist. 23 (i) Protective orders.--The presiding officer shall have the 24 authority, upon motion by a party or by the person from whom 25 discovery is sought, and for good cause shown, to make any 26 order, subject to the rules of the commission, which justice 27 requires to protect the party or person. 28 (j) Other subpoenas.--The presiding officer shall have the 29 power in accordance with commission rules to issue subpoenas ad 30 testificandum and duces tecum at any time during the course of 19770H0489B0533 - 44 -
1 the proceeding. 2 § 334. Presiding officers. 3 (a) Presiding officers to decide.--The same presiding 4 officer shall to the fullest extent possible preside at all the 5 reception of evidence in a particular case to which he has been 6 assigned. The same presiding officer who presides at the 7 reception of evidence shall make the recommended decision or 8 initial decision except where such presiding officer becomes 9 unavailable to the commission. 10 (b) Outside consultation prohibited.--Save to the extent 11 required for the disposition of ex parte matters not prohibited 12 by this part, no presiding officer shall consult any person or 13 party on any fact in issue unless upon notice and opportunity 14 for all parties to participate; nor shall any presiding officer 15 be responsible to or subject to the supervision or direction of 16 any officer, employee or agent engaged in the performance of 17 investigative or prosecuting functions for the commission. No 18 employee, appointee, commissioner or official engaged in the 19 service of, or in any manner connected with the commission shall 20 engage in ex parte communications save to the extent permitted 21 by this part. No officer, employee or agent engaged in the 22 performance of investigative or prosecuting functions for the 23 commission in any case shall, in that or a factually related 24 case, participate or advise in the decision, recommended 25 decision or commission review, except as witness or counsel in 26 public proceedings. 27 (c) Ex parte communications.--Ex parte communications 28 prohibited in this section shall mean any off-the-record 29 communications to or by any member of the commission, 30 administrative law judge, or employee of the commission, 19770H0489B0533 - 45 -
1 regarding the merits or any fact in issue of any matter pending 2 before the commission in any contested on-the-record proceeding. 3 Contested on-the-record proceeding means a proceeding required 4 by a statute, constitution, published commission rule or 5 regulation or order in a particular case, to be decided on the 6 basis of the record of a commission hearing, and in which a 7 protest or a petition or notice to intervene in opposition to 8 requested commission action has been filed. This subsection does 9 not prohibit off-the-record communications to or by any employee 10 of the commission prior to the actual beginning of hearings in a 11 contested on-the-record proceeding when such communications are 12 solely for the purpose of seeking clarification of or 13 corrections in evidentiary materials intended for use in the 14 subsequent hearings. 15 § 335. Initial decisions. 16 (a) Procedures.--When the commission does not preside at the 17 reception of evidence, the presiding officer shall initially 18 decide the case, unless the commission requires, either in 19 specific cases or by general rule, the entire record to be 20 certified to it for decision. When the presiding officer makes 21 an initial decision, that decision then shall be approved by the 22 commission and may become the opinion of the commission without 23 further proceeding within the time provided by commission rule. 24 On review of the initial decision, the commission has all the 25 powers which it would have in making the initial decision except 26 as it may limit the issues on notice or by rule. When the 27 commission makes the decision in a rate determination proceeding 28 without having presided at the reception of the evidence, the 29 presiding officer shall make a recommended decision to the 30 commission in accordance with the provisions of this part. 19770H0489B0533 - 46 -
1 Alternatively, in all other matters: 2 (1) the commission may issue a tentative decision or one 3 of its responsible employees may recommend a decision; or 4 (2) this procedure may be omitted in a case in which the 5 commission finds on the record that due and timely execution 6 of the functions imperatively and unavoidably so requires. 7 (b) Exceptions or proposed findings and conclusions.--Before 8 a recommended, initial or tentative decision issued under this 9 section, or a decision on commission review of the decision of 10 subordinate employees, the parties are entitled to a reasonable 11 opportunity to submit for the consideration of the commission: 12 (1) (i) proposed findings and conclusions; or 13 (ii) exceptions to the decisions or recommended 14 decisions of subordinate employees or to tentative 15 commission decisions; and 16 (2) supporting reason for the exceptions or proposed 17 findings or conclusions. 18 (c) Record.--The record shall show the ruling on each 19 finding, conclusion or exception presented. All decisions, 20 including initial, recommended and tentative decisions, are a 21 part of the record and shall include a statement of: 22 (1) findings and conclusions, and the reasons or basis 23 therefor, on all material issues of fact, law or discretion 24 presented on the record; and 25 (2) the appropriate rule, order, sanction, relief or 26 denial thereof. 27 SUBPART B 28 COMMISSION POWERS, DUTIES, PRACTICES AND PROCEDURES 29 Chapter 30 5. Powers and Duties 19770H0489B0533 - 47 -
1 7. Procedure on Complaints 2 9. Appeal and Review 3 CHAPTER 5 4 POWERS AND DUTIES 5 Sec. 6 501. General powers. 7 502. Enforcement proceedings by commission. 8 503. Enforcement proceedings by Attorney General. 9 504. Reports by public utilities. 10 505. Duty to furnish information to commission; cooperation in 11 valuing property. 12 506. Inspection of facilities and records. 13 507. Designation of statutory agent. 14 508. Contracts between public utilities and municipalities. 15 509. Power of the commission to vary, reform and revise 16 contracts. 17 510. Regulation of manufacture, sale or lease of appliances. 18 511. Assessment for regulatory expenses upon public utilities. 19 512. Disposition, appropriation and disbursement of assessments 20 and fees. 21 513. Power of commission to require insurance. 22 514. Public letting of contracts. 23 § 501. General powers. 24 (a) Enforcement of provisions of part.--In addition to any 25 powers expressly enumerated in this part, the commission shall 26 have full power and authority, and it shall be its duty to 27 enforce, execute and carry out, by its regulations, orders, or 28 otherwise, all and singular, the provisions of this part, and 29 the full intent thereof; and shall have the power to rescind or 30 modify any such regulations or orders. The express enumeration 19770H0489B0533 - 48 -
1 of the powers of the commission in this part shall not exclude 2 any power which the commission would otherwise have under any of 3 the provisions of this part. 4 (b) Administrative authority and regulations.--The 5 commission shall have general administrative power and authority 6 to supervise and regulate all public utilities doing business 7 within this Commonwealth. The commission may make such 8 regulations, not inconsistent with law, as may be necessary or 9 proper in the exercise of its powers or for the performance of 10 its duties. 11 § 502. Enforcement proceedings by commission. 12 Whenever the commission shall be of opinion that any person 13 or corporation, including a municipal corporation, is violating, 14 or is about to violate, any provisions of this part; or has 15 done, or is about to do, any act, matter, or thing herein 16 prohibited or declared to be unlawful; or has failed, omitted, 17 neglected, or refused, or is about to fail, omit, neglect, or 18 refuse, to perform any duty enjoined upon it by this part, or 19 has failed, omitted, neglected or refused, or is about to fail, 20 omit, neglect, or refuse to obey any lawful requirement, 21 regulation or order made by the commission; or any final 22 judgment, order, or decree made by any court, then and in every 23 such case the commission may institute in the Commonwealth 24 Court, injunction, mandamus, or other appropriate legal 25 proceedings, to restrain such violations of the provisions of 26 this part, or of the regulations, or orders of the commission, 27 and to enforce obedience thereto; and such court is hereby 28 clothed with exclusive jurisdiction throughout this Commonwealth 29 to hear and determine all such actions. No injunction bond shall 30 be required to be filed by the commission. Such persons, 19770H0489B0533 - 49 -
1 corporations, or municipal corporations as the court may deem 2 necessary or proper to be joined as parties, in order to make 3 its judgment, order or writ effective, may be joined as parties. 4 The final judgment in any such action or proceeding shall either 5 dismiss the action or proceeding, or direct that the writ of 6 mandamus or injunction issue or be made permanent as prayed for 7 in the petition, or in such modified or other form as will 8 afford appropriate relief. 9 § 503. Enforcement proceedings by Attorney General. 10 The Attorney General, in addition to the exercise of the 11 powers and duties now conferred upon him by law, shall also, 12 upon request of the commission, or upon his own motion, proceed 13 in the name of the Commonwealth, by mandamus, injunction, or quo 14 warranto, or other appropriate remedy at law or, in equity, to 15 restrain violations of the provisions of this part, or of the 16 regulations or orders of the commission, or the judgments, 17 orders, or decrees of any court, or to enforce obedience 18 thereto. 19 § 504. Reports by public utilities. 20 The commission may require any public utility to file 21 periodical reports, at such times, and in such form, and of such 22 content, as the commission may prescribe, and special reports 23 concerning any matter whatsoever about which the commission is 24 authorized to inquire, or to keep itself informed, or which it 25 is required to enforce. The commission may require any public 26 utility to file with it a copy of any report filed by such 27 public utility with any Federal department or regulatory body. 28 All reports shall be under oath or affirmation when required by 29 the commission. 30 § 505. Duty to furnish information to commission; cooperation 19770H0489B0533 - 50 -
1 in valuing property. 2 Every public utility shall furnish to the commission, from 3 time to time, and as the commission may require, all accounts, 4 inventories, appraisals, valuations, maps, profiles, reports of 5 engineers, books, papers, records, and other documents or 6 memoranda, or copies of any and all of them, in aid of any 7 inspection, examination, inquiry, investigation, or hearing, or 8 in aid of any determination of the value of its property, or any 9 portion thereof, and shall cooperate with the commission in the 10 work of the valuation of its property, or any portion thereof, 11 and shall furnish any and all other information to the 12 commission, as the commission may require, in any inspection, 13 examination, inquiry, investigation, hearing, or determination 14 of such value of its property, or any portion thereof. 15 § 506. Inspection of facilities and records. 16 The commission shall have full power and authority, either by 17 or through its members, or duly authorized representatives, 18 whenever it shall deem it necessary or proper in carrying out 19 any of the provisions of, or its duties under this part, to 20 enter upon the premises, buildings, machinery, system, plant, 21 and equipment, and make any inspection, valuation, physical 22 examination, inquiry, or investigation of any and all plant and 23 equipment, facilities, property, and pertinent records, books, 24 papers, accounts, maps, inventories, appraisals, valuations, 25 memoranda, documents, or effects whatsoever, of any public 26 utility, or prepared or kept for it by others, and to hold any 27 hearing for such purposes. In the performance of such duties, 28 the commission may have access to, and use any books, records, 29 or documents in the possession of, any department, board, or 30 commission of the Commonwealth, or any political subdivision 19770H0489B0533 - 51 -
1 thereof. 2 § 507. Designation of statutory agent. 3 Every public utility, contract carrier by motor vehicle, and 4 broker shall file with the commission a designation in writing 5 of the name and post office address of a person within this 6 Commonwealth upon whom service of any notice, order, or process 7 may be made under this part. Such designation may, from time to 8 time, be changed by like writing similarly filed. 9 § 508. Contracts between public utilities and municipalities. 10 Except for a contract between a public utility and a 11 municipal corporation to furnish service at the regularly filed 12 and published tariff rates, no contract or agreement between any 13 public utility and any municipal corporation shall be valid 14 unless filed with the commission at least 30 days prior to its 15 effective date. Upon notice to the municipal authorities, and 16 the public utility concerned, the commission may, prior to the 17 effective date of such contract or agreement, institute 18 proceedings to determine the reasonableness, legality or any 19 other matter affecting the validity thereof. Upon the 20 institution of such proceedings, such contract or agreement 21 shall not be effective until the commission grants its approval 22 thereof. 23 § 509. Power of commission to vary, reform and revise 24 contracts. 25 The commission shall have power and authority to vary, 26 reform, or revise, upon a fair, reasonable, and equitable basis, 27 any obligations, terms, or conditions of any contract heretofore 28 or hereafter entered into between any public utility and any 29 person, corporation, or municipal corporation, which embrace or 30 concern a public right, benefit, privilege, duty, or franchise, 19770H0489B0533 - 52 -
1 or the grant thereof, or are otherwise affected or concerned 2 with the public interest and the general well-being of this 3 Commonwealth. Whenever the commission shall determine, after 4 reasonable notice and hearing, upon its own motion or upon 5 complaint, that any such obligations, terms, or conditions are 6 unjust, unreasonable, inequitable, or otherwise contrary or 7 adverse to the public interest and the general well-being of 8 this Commonwealth, the commission shall determine and prescribe, 9 by findings and order, the just, reasonable, and equitable 10 obligations, terms, and conditions of such contract. Such 11 contract, as modified by the order of the commission, shall 12 become effective 30 days after service of such order upon the 13 parties to such contract. 14 § 510. Regulation of manufacture, sale or lease of appliances. 15 It is unlawful for any public utility engaged in the 16 manufacture, sale, or lease of any appliance or equipment 17 offered by such public utility for sale to the public to: 18 (1) Discontinue service to any consumer for failure of 19 such consumer to pay the whole, or any installment, of the 20 purchase price, or rental, of any appliance or equipment sold 21 to such consumer. 22 (2) Apply to the purchase price or rental, or any part 23 thereof, of any appliance or equipment purchased by, or 24 leased to, a consumer of the service of the public utility, 25 any deposit or other moneys of the consumer in the possession 26 of the public utility. This restriction does not apply to any 27 claims of the public utility against such consumer when such 28 claims arise from damages to meters or other facilities used 29 to measure and ascertain the quantity of service rendered by 30 the public utility. 19770H0489B0533 - 53 -
1 (3) Employ in the manufacture, sale, or lease of any 2 such appliance or equipment, any property used in, or revenue 3 derived from, the rendering of service to the public, unless 4 separate accounts as to the property used and the costs 5 incurred by, and the revenue derived from, the manufacture, 6 lease, or sale of such appliance or equipment are adopted, 7 used, and kept by the public utility. 8 (4) Employ in the manufacture, sale, or lease of any 9 such appliance or equipment, the service of any officer or 10 employee engaged in rendering service to the public, unless 11 separate accounts as to the amount paid to such officer or 12 employee, while engaged in the manufacture, lease or sale of 13 such appliance or equipment, and whether any amount be 14 salary, bonus, commission, or expense are adopted, used, and 15 kept by the public utility. 16 § 511. Assessment for regulatory expenses upon public 17 utilities. 18 (a) Determination of assessment.--Before March 1 of each 19 year, the commission shall estimate its total expenditures in 20 the administration of this part for the fiscal year beginning 21 July of that year, which estimate shall not exceed three-tenths 22 of 1% of the total gross intrastate operating revenues of the 23 public utilities under its jurisdiction for the preceding 24 calendar year. Such estimate shall be submitted to the Governor, 25 and to the appropriation committees of the House and Senate 26 through their respective chairmen, for their respective 27 approvals of such estimate in the amount submitted or such 28 lesser amount as each of them may determine. Unless the 29 Governor, or either committee through its chairman, shall notify 30 the commission in writing of his or its action within 30 days 19770H0489B0533 - 54 -
1 after such submission, the estimate as submitted shall be deemed 2 approved by him or by the committee. The least of the amounts so 3 approved by the three approving authorities shall be the final 4 estimate; and approval of such least amount shall constitute 5 compliance with section 604 of the act of April 9, 1929 6 (P.L.177, No.175), known as "The Administrative Code of 1929." 7 The commission or its designated representatives shall be 8 afforded an opportunity to appear before the Senate and House 9 Appropriations Committees regarding their estimates. The 10 commission shall subtract from the final estimate: 11 (1) the estimated fees to be collected pursuant to 12 section 317 (relating to fees for services rendered by 13 commission); and 14 (2) the estimated balance of the appropriation, 15 specified in section 512 (relating to disposition, 16 appropriation and disbursement of assessments and fees), to 17 be carried over into such fiscal year from the preceding one. 18 The remainder so determined, herein called the total assessment, 19 shall be allocated to, and paid by, such public utilities in the 20 manner prescribed in this part. 21 (b) Allocation of assessment.--On or before March 31 of each 22 year, every public utility shall file with the commission a 23 statement under oath showing its gross intrastate operating 24 revenues for the preceding calendar year. If any public utility 25 shall fail to file such statement on or before March 31, the 26 commission shall estimate such revenues, which estimate shall be 27 binding upon the public utility for the purposes of this 28 section. For each fiscal year, the allocation shall be made as 29 follows: 30 (1) The commission shall determine for the preceding 19770H0489B0533 - 55 -
1 calendar year the amount of its expenditures directly 2 attributable to the regulation of each group of utilities 3 furnishing the same kind of service, and debit the amount so 4 determined to such group. 5 (2) The commission shall also determine for the 6 preceding calendar year the balance of its expenditures, not 7 debited as aforesaid, and allocate such balance to each group 8 in the proportion which the gross intrastate operating 9 revenues of such group for that year bear to the gross 10 intrastate operating revenues of all groups for that year. 11 (3) The commission shall then allocate the total 12 assessment prescribed by subsection (a) to each group in the 13 proportion which the sum of the debits made to it bears to 14 the sum of the debits made to all groups. 15 (4) Each public utility within a group shall then be 16 assessed for and shall pay to the commission such proportion 17 of the amount allocated to its group as the gross intrastate 18 operating revenues of the public utility for the preceding 19 calendar year bear to the total gross intrastate operating 20 revenues of its group for that year. 21 (c) Notice, hearing and payment.--The commission shall give 22 notice by registered or certified mail to each public utility of 23 the amount lawfully charged against it under the provisions of 24 this section, which amount shall be paid by the public utility 25 within 30 days of receipt of such notice, unless the commission 26 specifies on the notices sent to all public utilities an 27 installment plan of payment, in which case each public utility 28 shall pay each installment on or before the date specified 29 therefor by the commission. Within 15 days after receipt of such 30 notice, the public utility against which such assessment has 19770H0489B0533 - 56 -
1 been made may file with the commission objections setting out in 2 detail the grounds upon which the objector regards such 3 assessment to be excessive, erroneous, unlawful or invalid. The 4 commission, after notice to the objector, shall hold a hearing 5 upon such objections. After such hearing, the commission shall 6 record upon its minutes its findings on the objections and shall 7 transmit to the objector, by registered or certified mail, 8 notice of the amount, if any, charged against it in accordance 9 with such findings, which amount or any installment thereof then 10 due, shall be paid by the objector within ten days after receipt 11 of notice of the findings of the commission with respect to such 12 objections. If any payment prescribed by this subsection is not 13 made as aforesaid, the commission may suspend or revoke 14 certificates of public convenience, certify automobile 15 registrations to the Department of Transportation for suspension 16 or revocation or, through the Department of Justice, may 17 institute an appropriate action at law for the amount lawfully 18 assessed, together with any additional cost incurred by the 19 commission or the Department of Justice by virtue of such 20 failure to pay. 21 (d) Suits by public utilities.--No suit or proceeding shall 22 be maintained in any court for the purpose of restraining or in 23 anywise delaying the collection or payment of any assessment 24 made under subsections (a), (b) and (c), but every public 25 utility against which an assessment is made shall pay the same 26 as provided in subsection (c). Any public utility making any 27 such payment may, at any time within two years from the date of 28 payment, sue the Commonwealth in an action at law to recover the 29 amount paid, or any part thereof, upon the ground that the 30 assessment was excessive, erroneous, unlawful, or invalid, in 19770H0489B0533 - 57 -
1 whole or in part, provided objections, as hereinbefore provided, 2 were filed with the commission, and payment of the assessment 3 was made under protest either as to all or part thereof. In any 4 action for recovery of any payments made under this section, the 5 claimant shall be entitled to raise every relevant issue of law, 6 but the findings of fact made by the commission, pursuant to 7 this section, shall be prima facie evidence of the facts therein 8 stated. Any records, books, data, documents, and memoranda 9 relating to the expenses of the commission shall be admissible 10 in evidence in any court and shall be prima facie evidence of 11 the truth of their contents. If it is finally determined in any 12 such action that all or any part of the assessment for which 13 payment was made under protest was excessive, erroneous, 14 unlawful, or invalid, the commission shall make a refund to the 15 claimant out of the appropriation specified in section 512 as 16 directed by the court. 17 (e) Certain provisions not applicable.--The provisions of 18 this part relating to the judicial review of orders and 19 determinations of the commission shall not be applicable to any 20 findings, determinations, or assessments made under this 21 section. 22 (f) Intent of section.--It is the intent and purpose of this 23 section that each public utility subject to this part shall 24 advance to the commission its reasonable share of the cost of 25 administering this part. The commission shall keep records of 26 the costs incurred in connection with the administration and 27 enforcement of this part or any other statute. The commission 28 shall also keep a record of the manner in which it shall have 29 computed the amount assessed against every public utility. Such 30 records shall be open to inspection by all interested parties. 19770H0489B0533 - 58 -
1 The determination of such costs and assessments by the 2 commission, and the records and data upon which the same are 3 made, shall be considered prima facie correct; and in any 4 proceeding instituted to challenge the reasonableness or 5 correctness of any assessment under this section, the party 6 challenging the same shall have the burden of proof. 7 (g) Saving provision.--This section does not affect or 8 repeal any of the provisions of the act of July 31, 1968 9 (P.L.769, No.240), known as the "Commonwealth Documents Law." 10 § 512. Disposition, appropriation and disbursement of 11 assessments and fees. 12 (a) Payment into General Fund.--All assessments and fees 13 received, collected or recovered under this chapter shall be 14 paid by the commission into the General Fund of the State 15 Treasury through the Department of Revenue. 16 (b) Use and appropriation of funds.--All such assessments 17 and fees, having been advanced by public utilities for the 18 purpose of defraying the cost of administering this part, shall 19 be held in trust solely for that purpose, and shall be earmarked 20 for the use of, and are hereby appropriated to, the commission 21 for disbursement solely for that purpose. 22 (c) Requisition of funds.--All requisitions upon such 23 appropriation shall be signed by the chairman and secretary of 24 the commission, or such deputies as they may designate in 25 writing to the State Treasurer, and shall be presented to the 26 State Treasurer and dealt with by him and the Treasury 27 Department in the manner prescribed by the act of April 9, 1929 28 (P.L.343, No.176), known as "The Fiscal Code." 29 § 513. Power of commission to require insurance. 30 The commission may, as to motor carriers, prescribe, by 19770H0489B0533 - 59 -
1 regulation or order, such requirements as it may deem necessary 2 for the protection of persons or property of their patrons and 3 the public, including the filing of surety bonds, the carrying 4 of insurance, or the qualifications and conditions under which 5 such carriers may act as self-insurers with respect to such 6 matters. All motor carriers of passengers, whose current liquid 7 assets do not exceed their current liabilities by at least 8 $100,000, shall cover each and every vehicle, transporting such 9 passengers, with a public liability insurance policy or a surety 10 bond issued by an insurance carrier or a bonding company 11 authorized to do business in this Commonwealth, in such amounts 12 as the commission may prescribe, but not less than $5,000 for 13 one and $10,000 for more than one person injured in any one 14 accident. 15 § 514. Public letting of contracts. 16 Whenever the commission deems that the public interest so 17 requires, it may direct, by regulation or order, that any public 18 utility shall award contracts or agreements for the 19 construction, improvement, or extension, of its plant or system 20 to the lowest responsible bidder, after a public offering has 21 been made, after advertisement and notice. Any such public 22 utility may participate as a bidder in any such public offering. 23 The commission may prescribe regulations relative to such 24 advertisement, notice, and public letting. 25 CHAPTER 7 26 PROCEDURE ON COMPLAINTS 27 Sec. 28 701. Complaints. 29 702. Service of complaints on parties. 30 703. Fixing of hearings. 19770H0489B0533 - 60 -
1 § 701. Complaints. 2 The commission, or any person, corporation, or municipal 3 corporation having an interest in the subject matter, or any 4 public utility concerned, may complain in writing, setting forth 5 any act or thing done or omitted to be done by any public 6 utility in violation, or claimed violation, of any law which the 7 commission has jurisdiction to administer, or of any regulation 8 or order of the commission. Any public utility, or other person, 9 or corporation likewise may complain of any regulation or order 10 of the commission, which the complainant is or has been required 11 by the commission to observe or carry into effect. The 12 Commonwealth through the Attorney General may be a complainant 13 before the commission in any matter solely as an advocate for 14 the Commonwealth as a consumer of public utility services. The 15 commission may prescribe the form of complaints filed under this 16 section. 17 § 702. Service of complaints on parties. 18 Upon the filing of a complaint, the commission shall serve 19 upon each party named in the complaint a copy of the complaint 20 and notice from the commission calling upon such party to 21 satisfy the complaint, or to answer the same in writing, within 22 such time as is specified by the commission in the notice. 23 Service in all hearings, investigations and proceedings pending 24 before the commission shall be made by registered or certified 25 mail. 26 § 703. Fixing of hearings. 27 (a) Satisfaction of complaint or hearing.--If any party 28 complained against, within the time specified by the commission, 29 shall satisfy the complaint, the commission shall dismiss the 30 complaint. Such party shall be relieved from responsibility only 19770H0489B0533 - 61 -
1 for the specific matter complained of. If such party shall not 2 satisfy the complaint within the time specified, and it shall 3 appear to the commission from a consideration of the complaint 4 and answer, or otherwise, that reasonable ground exists for 5 investigating such complaint, it shall be the duty of the 6 commission to fix a time and place for a hearing. 7 (b) Notice of hearing.--The commission shall fix the time 8 and place of hearing, within or without this Commonwealth, if 9 any is required, and shall serve notice thereof upon parties in 10 interest. The commission may dismiss any complaint without a 11 hearing if, in its opinion, a hearing is not necessary in the 12 public interest. 13 (c) Hearing and record.--All hearings before the commission, 14 or its representative, shall be public, and shall be conducted 15 in accordance with such regulations as the commission may 16 prescribe. A full and complete record shall be kept of all 17 proceedings had before the commission, or its representative, on 18 any formal hearing, and all testimony shall be taken down by a 19 reporter appointed by the commission, and the parties shall be 20 entitled to be heard in person or by attorney, and to introduce 21 evidence. 22 (d) Informal hearings.--The commission may, in addition to 23 the hearings specially provided by this part, conduct such other 24 hearings as may be required in the administration of the powers 25 and duties conferred upon it by this part and by other acts 26 relating to public utilities. Reasonable notice of all such 27 hearings shall be given the persons interested therein. 28 (e) Decisions by commission.--After the conclusion of the 29 hearing, the commission shall make and file its findings and 30 order with its opinion, if any. Its findings shall be in 19770H0489B0533 - 62 -
1 sufficient detail to enable the court on appeal, to determine 2 the controverted question presented by the proceeding, and 3 whether proper weight was given to the evidence. A copy of such 4 order, certified under the seal of the commission, shall be 5 served by registered or certified mail upon the party or parties 6 against whom it runs, or his attorney, and notice thereof shall 7 be given to the other parties to the proceedings or their 8 attorney. Such order shall take effect and become operative as 9 designated therein, and shall continue in force either for a 10 period which may be designated therein, or until changed or 11 revoked by the commission. The commission may grant and 12 prescribe such additional time as, in its judgment, is 13 reasonably necessary to comply with the order, and may, on 14 application and for good cause shown, extend the time for 15 compliance fixed in its order. 16 (f) Rehearing.--After an order has been made by the 17 commission, any party to the proceedings may, within 15 days 18 after the service of the order, apply for a rehearing in respect 19 of any matters determined in such proceedings and specified in 20 the application for rehearing, and the commission may grant and 21 hold such rehearing on such matters. No application for a 22 rehearing shall in anywise operate as a supersedeas, or in any 23 manner stay or postpone the enforcement of any existing order, 24 except as the commission may, by order, direct. If the 25 application be granted, the commission may affirm, rescind, or 26 modify its original order. 27 (g) Rescission and amendment of orders.--The commission may, 28 at any time, after notice and after opportunity to be heard as 29 provided in this chapter, rescind or amend any order made by it. 30 Any order rescinding or amending a prior order shall, when 19770H0489B0533 - 63 -
1 served upon the person, corporation, or municipal corporation 2 affected, and after notice thereof is given to the other parties 3 to the proceedings, have the same effect as is herein provided 4 for original orders. 5 CHAPTER 9 6 APPEAL AND REVIEW 7 Sec. 8 901. Right to trial by jury. 9 § 901. Right to trial by jury. 10 Nothing in this part shall be construed to deprive any party, 11 upon any judicial review of the proceedings and orders of the 12 commission, of the right to trial by jury of any issue of fact 13 raised thereby or therein, where such right is secured either by 14 the Constitution of Pennsylvania or the Constitution of the 15 United States, but in every such case such right of trial by 16 jury shall remain inviolate. When any judicial review is sought, 17 such right shall be deemed to be waived upon all issues, unless 18 expressly reserved in such manner as shall be prescribed by the 19 court. 20 SUBPART C 21 REGULATION OF PUBLIC UTILITIES GENERALLY 22 Chapter 23 11. Certificates of Public Convenience 24 13. Rates and Rate Making 25 15. Service and Facilities 26 17. Accounting and Budgetary Matters 27 19. Securities and Obligations 28 21. Relations with Affiliated Interests 29 CHAPTER 11 30 CERTIFICATES OF PUBLIC CONVENIENCE 19770H0489B0533 - 64 -
1 Sec. 2 1101. Organization of public utilities and beginning of 3 service. 4 1102. Enumeration of acts requiring certificate. 5 1103. Procedure to obtain certificates of public convenience. 6 1104. Certain appropriations by right of eminent domain 7 prohibited. 8 § 1101. Organization of public utilities and beginning of 9 service. 10 Upon the application of any proposed public utility and the 11 approval of such application by the commission evidenced by its 12 certificate of public convenience first had and obtained, it 13 shall be lawful for any such proposed public utility to begin to 14 offer, render, furnish, or supply service within this 15 Commonwealth. The commission's certificate of public convenience 16 granted under the authority of this section shall include a 17 description of the nature of the service and of the territory in 18 which it may be offered, rendered, furnished or supplied. 19 § 1102. Enumeration of acts requiring certificate. 20 (a) General rule.--Upon the application of any public 21 utility and the approval of such application by the commission, 22 evidenced by its certificate of public convenience first had and 23 obtained, and upon compliance with existing laws, it shall be 24 lawful: 25 (1) For any public utility to begin to offer, render, 26 furnish or supply within this Commonwealth service of a 27 different nature or to a different territory than that 28 authorized by: 29 (i) A certificate of public convenience granted 30 under this part or under the former provisions of the act 19770H0489B0533 - 65 -
1 of July 26, 1913 (P.L.1374, No.854), known as "The Public 2 Service Company Law," or the act of May 28, 1937 3 (P.L.1053, No.286), known as the "Public Utility Law." 4 (ii) An unregistered right, power or privilege 5 preserved by section 103 (relating to prior rights 6 preserved). 7 (2) For any public utility to abandon or surrender, in 8 whole or in part, any service, except that this provision is 9 not applicable to discontinuance of service to a patron for 10 nonpayment of a bill, or upon request of a patron. 11 (3) For any public utility or an affiliated interest of 12 a public utility as defined in section 2101 (relating to 13 definition of affiliated interest), except a common carrier 14 by railroad subject to the Interstate Commerce Act, to 15 acquire from, or to transfer to, any person or corporation, 16 including a municipal corporation, by any method or device 17 whatsoever, including the sale or transfer of stock and 18 including a consolidation, merger, sale or lease, the title 19 to, or the possession or use of, any tangible or intangible 20 property used or useful in the public service. Such approval 21 shall not be required if: 22 (i) the undepreciated book value of the property to 23 be acquired or transferred does not exceed $1,000; 24 (ii) the undepreciated book value of the property to 25 be acquired or transferred does not exceed the lesser of: 26 (A) 2% of the undepreciated book value of all 27 fixed assets of such public utility; or 28 (B) $5,000 in the case of personalty or $50,000 29 in the case of realty; 30 (iii) the property to be acquired is to be installed 19770H0489B0533 - 66 -
1 new as a part of or consumed in the operation of the used 2 and useful property of such public utility; or 3 (iv) the property to be transferred by such public 4 utility is obsolete, worn out or otherwise unserviceable. 5 Subparagraphs (i) through (iv) shall not be applicable, and 6 approval of the commission evidenced by a certificate of 7 public convenience shall be required, if any such acquisition 8 or transfer of property involves a transfer of patrons. 9 (4) For any public utility to acquire 5% or more of the 10 voting capital stock of any corporation. 11 (5) For any municipal corporation to acquire, construct, 12 or begin to operate, any plant, equipment, or other 13 facilities for the rendering or furnishing to the public of 14 any public utility service beyond its corporate limits. 15 (b) Protection of railroad employees.--As a condition of its 16 approval of any transaction covered by this section and 17 involving those railroad carriers wholly located within this 18 Commonwealth subject to the provisions of this part, the 19 commission shall require a fair and equitable arrangement to 20 protect the interests of the railroad employees affected and the 21 commission shall include in its order of approval the terms and 22 conditions it deems fair and equitable for the protection of the 23 employees. The terms and conditions which the commission 24 prescribes shall provide that, during the period of four years 25 from the effective date of the order, the employees of the 26 railroad carrier affected by the order shall not be in a worse 27 position with respect to their employment except that any 28 protection afforded an employee shall not be required to 29 continue for a period longer than that during which the employee 30 was in the employ of the railroad carrier prior to the effective 19770H0489B0533 - 67 -
1 date of the order. Notwithstanding any other provision of this 2 section, the commission may accept as fair and equitable an 3 agreement pertaining to the protection of the interests of the 4 employees entered into by the railroad carrier and the duly 5 authorized representatives of the employees. 6 § 1103. Procedure to obtain certificates of public 7 convenience. 8 (a) General rule.--Every application for a certificate of 9 public convenience shall be made to the commission in writing, 10 be verified by oath or affirmation, and be in such form, and 11 contain such information, as the commission may require by its 12 regulations. A certificate of public convenience shall be 13 granted by order of the commission, only if the commission shall 14 find or determine that the granting of such certificate is 15 necessary or proper for the service, accommodation, convenience, 16 or safety of the public. The commission, in granting such 17 certificate, may impose such conditions as it may deem to be 18 just and reasonable. In every case, the commission shall make a 19 finding or determination in writing, stating whether or not its 20 approval is granted. Any holder of a certificate of public 21 convenience, exercising the authority conferred by such 22 certificate, shall be deemed to have waived any and all 23 objections to the terms and conditions of such certificate. 24 (b) Investigations and hearings.--For the purpose of 25 enabling the commission to make such finding or determination, 26 it shall hold such hearings, which shall be public, and, before 27 or after hearing, it may make such inquiries, physical 28 examinations, valuations, and investigations, and may require 29 such plans, specifications, and estimates of cost, as it may 30 deem necessary or proper in enabling it to reach a finding or 19770H0489B0533 - 68 -
1 determination. 2 § 1104. Certain appropriations by right of eminent domain 3 prohibited. 4 Unless its power of eminent domain existed under prior law, 5 no domestic public utility or foreign public utility authorized 6 to do business in this Commonwealth shall exercise any power of 7 eminent domain within this Commonwealth until it shall have 8 received the certificate of public convenience required by 9 section 1101 (relating to organization of public utilities and 10 beginning of service). 11 CHAPTER 13 12 RATES AND RATE MAKING 13 Sec. 14 1301. Rates to be just and reasonable. 15 1302. Tariffs; filing and inspection. 16 1303. Adherence to tariffs. 17 1304. Discrimination in rates. 18 1305. Advance payment of rates; interest on deposits. 19 1306. Apportionment of joint rates. 20 1307. Sliding scale of rates; adjustments. 21 1308. Voluntary changes in rates. 22 1309. Rates fixed on complaint; investigation of costs of 23 production. 24 1310. Temporary rates. 25 1311. Valuation of property of a public utility. 26 1312. Refunds. 27 1313. Price upon resale of public utility services. 28 § 1301. Rates to be just and reasonable. 29 Every rate made, demanded, or received by any public utility, 30 or by any two or more public utilities jointly, shall be just 19770H0489B0533 - 69 -
1 and reasonable, and in conformity with regulations or orders of 2 the commission. Only public utility service being furnished or 3 rendered by a municipal corporation, or by the operating 4 agencies of any municipal corporation, beyond its corporate 5 limits, shall be subject to regulation and control by the 6 commission as to rates, with the same force, and in like manner, 7 as if such service were rendered by a public utility. 8 § 1302. Tariffs; filing and inspection. 9 Under such regulations as the commission may prescribe, every 10 public utility shall file with the commission, within such time 11 and in such form as the commission may designate, tariffs 12 showing all rates established by it and collected or enforced, 13 or to be collected or enforced, within the jurisdiction of the 14 commission. The tariffs of any public utility also subject to 15 the jurisdiction of a Federal regulatory body shall correspond, 16 so far as practicable, to the form of those prescribed by such 17 Federal regulatory body. Every public utility shall keep copies 18 of such tariffs open to public inspection under such rules and 19 regulations as the commission may prescribe. 20 § 1303. Adherence to tariffs. 21 No public utility shall, directly or indirectly, by any 22 device whatsoever, or in anywise, demand or receive from any 23 person, corporation, or municipal corporation a greater or less 24 rate for any service rendered or to be rendered by such public 25 utility than that specified in the tariffs of such public 26 utility applicable thereto. The rates specified in such tariffs 27 shall be the lawful rates of such public utility until changed, 28 as provided in this part. Any public utility, having more than 29 one rate applicable to service rendered to a patron, shall, 30 after notice of service conditions, compute bills under the rate 19770H0489B0533 - 70 -
1 most advantageous to the patron. 2 § 1304. Discrimination in rates. 3 No public utility shall, as to rates, make or grant any 4 unreasonable preference or advantage to any person, corporation, 5 or municipal corporation, or subject any person, corporation, or 6 municipal corporation to any unreasonable prejudice or 7 disadvantage. No public utility shall establish or maintain any 8 unreasonable difference as to rates, either as between 9 localities or as between classes of service. Unless specifically 10 authorized by the commission, no public utility shall make, 11 demand, or receive any greater rate in the aggregate for the 12 transportation of passengers or property of the same class, or 13 for the transmission of any message or conversation for a 14 shorter than for a longer distance over the same line or route 15 in the same direction, the shorter being included within the 16 longer distance, or any greater rate as a through rate than the 17 aggregate of the intermediate rates. This section does not 18 prohibit the establishment of reasonable zone or group systems, 19 or classifications of rates or, in the case of common carriers, 20 the issuance of excursion, commutation, or other special tickets 21 at special rates, or the granting of nontransferable free 22 passes, or passes at a discount to any officer, employee, or 23 pensioner of such common carrier. No rate charged by a 24 municipality for any public utility service rendered or 25 furnished beyond its corporate limits shall be considered 26 unjustly discriminatory solely by reason of the fact that a 27 different rate is charged for a similar service within its 28 corporate limits. 29 § 1305. Advance payment of rates; interest on deposits. 30 No public utility shall require the payment of rates in 19770H0489B0533 - 71 -
1 advance, or the making of minimum payments, ready to serve 2 charges, or deposits to secure future payments of rates, except 3 as the commission, by regulation or order, may permit. Any 4 deposit made by any domestic consumer, under the provisions of 5 this section or under any repealed statute supplied by this 6 part, shall be returned with any interest due thereon to the 7 consumer making such deposit when he shall have paid undisputed 8 bills for service over a period of 12 consecutive months. 9 § 1306. Apportionment of joint rates. 10 Where public utilities entitled to share in any joint rate 11 shall be unable to agree upon the division thereof, or shall 12 make any unjust or unreasonable division or apportionment 13 thereof, the commission may, after hearing, upon its own motion 14 or upon complaint, fix the proportion to which each public 15 utility shall be entitled. 16 § 1307. Sliding scale of rates; adjustments. 17 (a) General rule.--Any public utility, except a common 18 carrier, may establish a sliding scale of rates or such other 19 method for the automatic adjustment of the rates of the public 20 utility as shall provide a just and reasonable return on the 21 fair value of the property used and useful in the public 22 service, to be determined upon such equitable or reasonable 23 basis as shall provide such fair return. A tariff showing the 24 scale of rates under such arrangement shall first be filed with 25 the commission, and such tariff, and each rate set out therein, 26 approved by it. The commission may revoke its approval at any 27 time and fix other rates for any such public utility if, after 28 notice and hearing, the commission finds the existing rates 29 unjust or unreasonable. 30 (b) Mandatory system for automatic adjustment.--The 19770H0489B0533 - 72 -
1 commission, by regulation or order, upon reasonable notice and 2 after hearing, may prescribe for any class of public utilities, 3 except a common carrier, a mandatory system for the automatic 4 adjustment of their rates, by means of a sliding scale of rates 5 or other method, on the same basis as provided in subsection 6 (a), to become effective when and in the manner prescribed in 7 such regulation or order. Every such public utility shall, 8 within such time as shall be prescribed by the commission, file 9 tariffs showing the rates established in accordance with such 10 regulation or order. 11 (c) Fuel cost adjustment.--In any method automatically 12 adjusting rates to reflect changes in fossil fuel cost under 13 this section, the fuel cost used in computing the adjustment 14 shall be limited, in the case of an electric utility, to the 15 cost of such fuel delivered to the utility at the generating 16 site at which it is to be consumed, and the cost of disposing of 17 solid waste from scrubbers or other devices designed so that the 18 consumption of Pennsylvania-mined coal at the generating site 19 would comply with the sulfur oxide emission standards prescribed 20 by the Commonwealth. The cost of fuel handling after such 21 delivery, or of waste disposal, other than as prescribed in this 22 section, shall be excluded from such computation. In any method 23 automatically adjusting rates to reflect changes in fuel cost 24 other than fossil fuel cost under this section, the fuel cost 25 used in computing the adjustment shall be limited, in the case 26 of an electric utility, to the cost of such fuel delivered to 27 the utility at the generating site at which it is to be consumed 28 after deducting therefrom the present salvage or reuse value of 29 such fuel, as shall be established by commission rule or order. 30 (d) Fuel cost adjustment audits.--The commission shall 19770H0489B0533 - 73 -
1 conduct or cause to be conducted, at such times as it may order, 2 but at least annually, an audit of each public utility which, by 3 any method described in this section, automatically adjusts its 4 rates to reflect changes in its fuel costs, which audit shall 5 enable the commission to determine the propriety and correctness 6 of amounts billed and collected under this section. Whoever 7 performs the audit shall be a person knowledgable in the subject 8 matter encompassed within the operation of the automatic 9 adjustment clause. The auditors report shall be in a form and 10 manner directed by the commission. 11 (e) Automatic adjustment reports and proceedings.-- 12 (1) Within 30 days following the end of such 12-month 13 period as the commission shall designate, each public utility 14 using an automatic adjustment clause shall file with the 15 commission a statement which shall specify for such period: 16 (i) the total revenues received pursuant to the 17 automatic adjustment clause; 18 (ii) the total amount of that expense or class of 19 expenses incurred which is the basis of the automatic 20 adjustment clause; and 21 (iii) the difference between the amounts specified 22 by subparagraphs (i) and (ii). 23 Such report shall be a matter of public record and copies 24 thereof shall be made available to any person upon request to 25 the commission. 26 (2) Within 60 days following the submission of such 27 report by a public utility, the commission shall hold a 28 public hearing on the substance of the report and any matters 29 pertaining to the use by such public utility of such 30 automatic adjustment clause in the preceding period and the 19770H0489B0533 - 74 -
1 present and subsequent periods. 2 (3) Absent good reason being shown to the contrary, the 3 commission shall, within 60 days following such hearing, by 4 order direct each such public utility to, over an appropriate 5 12-month period, refund to its patrons an amount equal to 6 that by which its revenues received pursuant to such 7 automatic adjustment clause exceeded the amount of such 8 expense or class of expenses, or recover from its patrons an 9 amount equal to that by which such expense or class of 10 expenses exceeded the revenues received pursuant to such 11 automatic adjustment clause. 12 (4) For the purpose of this subsection, where a 12-month 13 report period and 12-month refund or recovery period shall 14 have been previously established or designated, nothing in 15 this section shall impair the continued use of such 16 previously established or designated periods nor shall 17 anything in this section prevent the commission from amending 18 at any time any method used by any utility in automatically 19 adjusting its rates, so as to provide the commission more 20 adequate supervision of the administration by a utility of 21 such method and to decrease the likelihood of collection by a 22 utility, in subsequent periods, of amounts greater or less 23 than that to which it is entitled, or, in the event that such 24 deficiency or surplus in connected amounts is found, more 25 prompt readjustment thereof. 26 § 1308. Voluntary changes in rates. 27 (a) General rule.--Unless the commission otherwise orders, 28 no public utility shall make any change in any existing and duly 29 established rate, except after 60 days notice to the commission, 30 which notice shall plainly state the changes proposed to be made 19770H0489B0533 - 75 -
1 in the rates then in force, and the time when the changed rates 2 will go into effect. The public utility shall also give such 3 notice of the proposed changes to other interested persons as 4 the commission in its discretion may direct. All proposed 5 changes shall be shown by filing new tariffs, or supplements to 6 existing tariffs filed and in force at the time. The commission, 7 for good cause shown, may allow changes in rates, without 8 requiring the 60 days notice, under such conditions as it may 9 prescribe. 10 (b) Hearing and suspension of rate change.--Whenever there 11 is filed with the commission by any public utility any tariff 12 stating a new rate, the commission may, either upon complaint or 13 upon its own motion, upon reasonable notice, enter upon a 14 hearing concerning the lawfulness of such rate, and pending such 15 hearing and the decision thereon, the commission, upon filing 16 with such tariff and delivering to the public utility affected 17 thereby a statement in writing of its reasons therefor, may, at 18 any time before it becomes effective, suspend the operation of 19 such rate for a period not longer than six months from the time 20 such rate would otherwise become effective, and an additional 21 period of not more than three months pending such decision. The 22 rate in force when the tariff stating the new rate was filed 23 shall continue in force during the period of suspension, unless 24 the commission shall establish a temporary rate as authorized in 25 section 1310 (relating to temporary rates). The commission shall 26 consider the effect of such suspension in finally determining 27 and prescribing the rates to be thereafter charged and collected 28 by such public utility. This subsection does not apply to any 29 tariff stating a new rate which constitutes a general rate 30 increase as defined in subsection (d). 19770H0489B0533 - 76 -
1 (c) Determination.--If, after such hearing, the commission 2 finds any such rate to be unjust or unreasonable, or in anywise 3 in violation of law, the commission shall determine the just and 4 reasonable rate to be charged or applied by the public utility 5 for the service in question, and shall fix the same by order to 6 be served upon the public utility. 7 (d) General rate increases.--Whenever there is filed with 8 the commission by any public utility described in paragraph 9 (1)(i),(ii),(vi) or (vii) of the definition of "public utility" 10 in section 102 (relating to definitions), and such other public 11 utility as the commission may by rule or regulation direct, any 12 tariff stating a new rate which constitutes a general rate 13 increase, the commission shall promptly enter into an 14 investigation and analysis of said tariff filing and may by 15 order setting forth its reasons therefor, upon complaint or upon 16 its own motion, upon reasonable notice, enter upon a hearing 17 concerning the lawfulness of such rate, and the commission may, 18 at any time by vote of a majority of the members of the 19 commission serving in accordance with law, permit such tariff to 20 become effective, except that absent such order such tariff 21 shall be suspended for a period not to exceed seven months from 22 the time such rate would otherwise become effective. Before the 23 expiration of such seven-month period, a majority of the members 24 of the commission serving in accordance with law, acting 25 unanimously, shall make a final decision and order, setting 26 forth its reasons therefor, granting or denying, in whole or in 27 part, the general rate increase requested. If, however, such an 28 order has not been made at the expiration of such seven-month 29 period, the proposed general rate increase shall go into effect 30 at the end of such period, but the commission may by order 19770H0489B0533 - 77 -
1 require the interested public utility to refund, in accordance 2 with section 1312 (relating to refunds), to the persons in whose 3 behalf such amounts were paid, such portion of such increased 4 rates as by its decision shall be found not justified, plus 5 interest, which shall be the average rate of interest specified 6 for residential mortgage lending by the Secretary of Banking in 7 accordance with the act of January 30, 1974 (P.L.13, No.6), 8 referred to as the Loan Interest and Protection Law, during the 9 period or periods for which the commission orders refunds. The 10 rate in force when the tariff stating such new rate was filed 11 shall continue in force during the period of suspension unless 12 the commission shall grant extraordinary rate relief as 13 prescribed in subsection (e). The commission shall consider the 14 effect of such suspension in finally determining and prescribing 15 the rates to be thereafter charged and collected by such public 16 utility, except that the commission shall have no authority to 17 prescribe, determine or fix, at any time during the pendency of 18 a general rate increase proceeding or prior to a final 19 determination of a general rate increase request, temporary 20 rates as provided in section 1310, which rates may provide 21 retroactive increases through recoupment. As used in this part 22 general rate increase means a tariff filing which affects more 23 than 5% of the customers and amounts to in excess of 3% of the 24 total gross annual intrastate operating revenues of the public 25 utility. If the public utility furnishes two or more types of 26 service, the foregoing percentages shall be determined only on 27 the basis of the customers receiving, and the revenues derived 28 from, the type of service to which the tariff filing pertains. 29 (e) Extraordinary rate relief.--Upon petition to the 30 commission at the time of filing of a rate request or at any 19770H0489B0533 - 78 -
1 time during the pendency of proceedings on such rate request, 2 any public utility may seek extraordinary rate relief of such 3 portion of the total rate relief requested as can be shown to be 4 immediately necessary for the maintenance of financial stability 5 in order to enable the utility to continue providing normal 6 services to its customers, avoid reductions in its normal 7 maintenance programs and avoid substantially reducing its 8 employment, and which will provide no more than the rate of 9 return on the utility's common equity established by the 10 commission in consideration of the utility's preceding rate 11 filing except that no utility shall file, either with a request 12 for a general rate increase or at any time during the pendency 13 of such a request, more than one petition under this subsection 14 pertaining to rates for a particular type of service, nor any 15 supplement or amendment thereto, except when permitted to do so 16 by order of the commission. Any public utility requesting 17 extraordinary rate relief shall file with the petition 18 sufficient additional testimony and exhibits which will permit 19 the commission to make appropriate findings on the petition. The 20 public utility shall give notice of the petition in the same 21 manner as its filing upon which this petition is based. The 22 commission shall within 30 days from the date of the filing of a 23 petition for extraordinary rate relief, and after hearing for 24 the purpose of cross-examination of the testimony and exhibits 25 of the public utility, and the presentation of such other 26 evidentiary testimony as the commission may by rule prescribe, 27 by order setting forth its reasons therefor, grant or deny, in 28 whole or in part, the extraordinary relief requested. Absent 29 such order, the petition shall be deemed to have been denied. 30 Rates established pursuant to extraordinary rate relief shall 19770H0489B0533 - 79 -
1 not be deemed to be temporary rates within the meaning of that 2 term as it is used in section 1310. 3 § 1309. Rates fixed on complaint; investigation of costs of 4 production. 5 Whenever the commission, after reasonable notice and hearing, 6 upon its own motion or upon complaint, finds that the existing 7 rates of any public utility for any service are unjust, 8 unreasonable, or in anywise in violation of any provision of 9 law, the commission shall determine the just and reasonable 10 rates, including maximum or minimum rates, to be thereafter 11 observed and in force, and shall fix the same by order to be 12 served upon the public utility, and such rates shall constitute 13 the legal rates of the public utility until changed as provided 14 in this part. Whenever a public utility does not itself produce 15 or generate that which it distributes, transmits, or furnishes 16 to the public for compensation, but obtains the same from 17 another source, the commission shall have the power and 18 authority to investigate the cost of such production or 19 generation in any investigation of the reasonableness of the 20 rates of such public utility. 21 § 1310. Temporary rates. 22 (a) General rule.--The commission may, in any proceeding 23 involving the rates of a public utility, except a proceeding 24 involving a general rate increase, brought either upon its own 25 motion or upon complaint, after reasonable notice and hearing, 26 if it be of opinion that the public interest so requires, 27 immediately fix, determine, and prescribe temporary rates to be 28 charged by such public utility, pending the final determination 29 of such rate proceeding. Such temporary rates, so fixed, 30 determined, and prescribed, shall be sufficient to provide a 19770H0489B0533 - 80 -
1 return of not less than 5% upon the original cost, less accrued 2 depreciation, of the physical property, when first devoted to 3 public use, of such public utility, used and useful in the 4 public service, and if the duly verified reports of such public 5 utility to the commission do not show such original cost, less 6 accrued depreciation, of such property, the commission may 7 estimate such cost less depreciation and fix, determine, and 8 prescribe rates as hereinbefore provided. 9 (b) Exception where records unavailable.--If any public 10 utility does not have continuing property records, kept in the 11 manner prescribed by the commission under the provisions of 12 section 1702 (relating to continuing property records), then the 13 commission, after reasonable notice and hearing, may establish 14 temporary rates which shall be sufficient to provide a return of 15 not less than an amount equal to the operating income for such 16 prior calendar or fiscal year as the commission may deem proper, 17 to be determined on the basis of data appearing in the annual 18 report of such public utility to the commission for such prior 19 year as the commission may deem proper, plus or minus such 20 return as the commission may prescribe from time to time upon 21 such net changes of the physical property as are reported to and 22 approved for rate-making purposes by the commission. In 23 determining the net changes of the physical property, the 24 commission may, in its discretion, deduct from gross additions 25 to such physical property the amount charged to operating 26 expenses for depreciation or, in lieu thereof, it may determine 27 such net changes by deducting retirements from the gross 28 additions. The commission, in determining the basis for 29 temporary rates, may make such adjustments in the annual report 30 data as may, in the judgment of the commission, be necessary and 19770H0489B0533 - 81 -
1 proper. 2 (c) Periodicity of rates.--The commission may fix, 3 determine, and prescribe temporary rates every month, or at any 4 other interval, if it be of opinion that the public interest so 5 requires, and the existence of proceedings begun for the purpose 6 of establishing final rates shall not prevent the commission 7 from changing every month, or at any other interval, such 8 temporary rates as it has previously fixed, determined, and 9 prescribed. 10 (d) Excessive rates.--Whenever the commission, upon 11 examination of any annual or other report, or of any papers, 12 records, books, or documents, or of the property of any public 13 utility, shall be of opinion that any rates of such public 14 utility are producing a return in excess of a fair return upon 15 the fair value of the property of such public utility, used and 16 useful in its public service, the commission may, by order, 17 prescribe for a trial period of at least six months, which trial 18 period may be extended for one additional period of six months, 19 such temporary rates to be observed by such public utility as, 20 in the opinion of the commission, will produce a fair return 21 upon such fair value, and the rates so prescribed shall become 22 effective upon the date specified in the order of the 23 commission. Such rates, so prescribed, shall become permanent at 24 the end of such trial period, or extension thereof, unless at 25 any time during such trial period, or extension thereof, the 26 public utility involved shall complain to the commission that 27 the rates so prescribed are unjust or unreasonable. Upon such 28 complaint, the commission, after hearing, shall determine the 29 issues involved, and pending final determination the rates so 30 prescribed shall remain in effect. 19770H0489B0533 - 82 -
1 (e) Effect and adjustment of rates.--Temporary rates so 2 fixed, determined, and prescribed under this section shall be 3 effective until the final determination of the rate proceeding, 4 unless terminated sooner by the commission. In every proceeding 5 in which temporary rates are fixed, determined, and prescribed 6 under this section, the commission shall consider the effect of 7 such rates in fixing, determining, and prescribing rates to be 8 thereafter demanded or received by such public utility on final 9 determination of the rate proceeding. 10 § 1311. Valuation of property of a public utility. 11 The commission may, after reasonable notice and hearing, 12 ascertain and fix the fair value of the whole or any part of the 13 property of any public utility, insofar as the same is material 14 to the exercise of the jurisdiction of the commission, and may 15 make revaluations from time to time and ascertain the fair value 16 of all new construction, extensions, and additions to the 17 property of any public utility. When any public utility 18 furnishes more than one of the different types of utility 19 service, the commission shall segregate the property used and 20 useful in furnishing each type of such service, and shall not 21 consider the property of such public utility as a unit in 22 determining the value of the property of such public utility for 23 the purpose of fixing rates. In fixing any rate of a public 24 utility engaged exclusively as a common carrier by motor 25 vehicle, the commission may, in lieu of other standards 26 established by law, fix the fair return by relating the fair and 27 reasonable operating expenses, depreciation, taxes and other 28 costs of furnishing service to operating revenues. 29 § 1312. Refunds. 30 (a) General rule.--If, in any proceeding involving rates, 19770H0489B0533 - 83 -
1 the commission shall determine that any rate received by a 2 public utility was unjust or unreasonable, or was in violation 3 of any regulation or order of the commission, or was in excess 4 of the applicable rate contained in an existing and effective 5 tariff of such public utility, the commission shall have the 6 power and authority to make an order requiring the public 7 utility to refund the amount of any excess paid by any patron, 8 in consequence of such unlawful collection, within two years 9 prior to the date of the filing of the complaint, together with 10 interest at the legal rate from the date of each such excessive 11 payment. In making a determination under this section, the 12 commission need not find that the rate complained of was 13 extortionate or oppressive. Any order of the commission awarding 14 a refund shall be made for and on behalf of all patrons subject 15 to the same rate of the public utility. The commission shall 16 state in any refund order the exact amount to be paid, the 17 reasonable time within which payment shall be made, and shall 18 make findings upon pertinent questions of fact. 19 (b) Suit for refund.--If the public utility fails to make 20 refunds within the time for payment fixed by any final order of 21 the commission or court, any patron entitled to any refund may 22 sue therefor in any court of common pleas of this Commonwealth, 23 and the findings and order made by the commission shall be prima 24 facie evidence of the facts therein stated, and that the amount 25 awarded is justly due the plaintiff in such suit, and the 26 defendant public utility shall not be permitted to avail itself 27 of the defense that the service was, in fact, rendered to the 28 plaintiff at the rate contained in its tariffs in force at the 29 time payment was made and received, nor shall the defendant 30 public utility be permitted to avail itself of the defense that 19770H0489B0533 - 84 -
1 the rate was reasonable. Any patron entitled to any refund shall 2 be entitled to recover, in addition to the amount of refund, a 3 penalty of 50% of the amount of such refund, together with all 4 court costs and reasonable attorney fees. No suit may be 5 maintained for a refund unless instituted within one year from 6 the date of the order of the commission or court. Any number of 7 patrons entitled to such refund may join as plaintiffs and 8 recover their several claims in a single action, in which action 9 the court shall render a judgment severally for each plaintiff 10 as his interest may appear. 11 (c) Condition for suit.--No action shall be brought in any 12 court for a refund, unless and until the commission shall have 13 determined that the rate in question was unjust or unreasonable, 14 or in violation of any regulation or order of the commission, or 15 in excess of the applicable rate contained in an existing and 16 effective tariff, and then only to recover such refunds as may 17 have been awarded and directed to be paid by the commission in 18 such order. 19 § 1313. Price upon resale of public utility services. 20 Whenever any person, corporation or other entity, not a 21 public utility, electric cooperative corporation, municipality 22 authority or municipal corporation, purchases service from a 23 public utility and resells it to consumers, the bill rendered by 24 the reseller to any residential consumer shall not exceed the 25 amount which the public utility would bill its own residential 26 consumers for the same quantity of service under the residential 27 rate of its tariff then currently in effect. 28 CHAPTER 15 29 SERVICE AND FACILITIES 30 Sec. 19770H0489B0533 - 85 -
1 1501. Character of service and facilities. 2 1502. Discrimination in service. 3 1503. Discontinuance of service. 4 1504. Standards of service and facilities. 5 1505. Proper service and facilities established on complaint. 6 1506. Copies of service contracts, etc., to be filed with 7 commission. 8 1507. Testing of appliances for measurement of service. 9 1508. Reports of accidents. 10 1509. Billing procedures. 11 § 1501. Character of service and facilities. 12 Every public utility shall furnish and maintain adequate, 13 efficient, safe, and reasonable service and facilities, and 14 shall make all such repairs, changes, alterations, 15 substitutions, extensions, and improvements in or to such 16 service and facilities as shall be necessary or proper for the 17 accommodation, convenience, and safety of its patrons, 18 employees, and the public. Such service also shall be reasonably 19 continuous and without unreasonable interruptions or delay. Such 20 service and facilities shall be in conformity with the 21 regulations and orders of the commission. Subject to the 22 provisions of this part and the regulations or orders of the 23 commission, every public utility may have reasonable rules and 24 regulations governing the conditions under which it shall be 25 required to render service. Any public utility service being 26 furnished or rendered by a municipal corporation beyond its 27 corporate limits shall be subject to regulation and control by 28 the commission as to service and extensions, with the same force 29 and in like manner as if such service were rendered by a public 30 utility. The commission shall have sole and exclusive 19770H0489B0533 - 86 -
1 jurisdiction to promulgate rules and regulations for the 2 allocation of natural or artificial gas supply by a public 3 utility. 4 § 1502. Discrimination in service. 5 No public utility shall, as to service, make or grant any 6 unreasonable preference or advantage to any person, corporation, 7 or municipal corporation, or subject any person, corporation, or 8 municipal corporation to any unreasonable prejudice or 9 disadvantage. No public utility shall establish or maintain any 10 unreasonable difference as to service, either as between 11 localities or as between classes of service, but this section 12 does not prohibit the establishment of reasonable 13 classifications of service. 14 § 1503. Discontinuance of service. 15 (a) Days discontinuance prohibited.--Except when required to 16 prevent or alleviate an emergency as defined by the commission, 17 and except in the case of danger to life or property, no public 18 utility, as defined in paragraph (1)(i),(ii),(v) or (vii) of the 19 definition of "public utility" in section 102 (relating to 20 definitions), shall discontinue, and the commission shall not 21 authorize such a public utility to discontinue, except upon 22 request of the customer, for nonpayment of charges or for any 23 other reason, the rendering of service during the following 24 periods: 25 (1) On Friday, Saturday or Sunday. 26 (2) On a bank holiday or on the day preceding a bank 27 holiday. 28 (3) On a holiday observed by the public utility or on 29 the day preceding such holiday. A holiday observed by a 30 public utility shall mean any day on which the business 19770H0489B0533 - 87 -
1 office of the public utility is closed to observe a legal 2 holiday, to attend public utility meetings or functions or 3 for any other reason. 4 (4) On a holiday observed by the commission or on the 5 day preceding such holiday. 6 (b) Personal contact before service discontinued.--Except 7 when required to prevent or alleviate an emergency as defined by 8 the commission, and except in the case of danger to life or 9 property, no public utility referred to in subsection (a) shall 10 discontinue, and the commission shall not authorize such a 11 public utility to discontinue, except upon request of a 12 customer, for nonpayment of charges or for any other reason, the 13 rendering of service without personally contacting the customer 14 at least three days prior to such discontinuance, in addition to 15 any written notice of discontinuance of service. Personal 16 contact shall mean: 17 (1) Contacting the customer by means other than writing. 18 (2) Contacting another person whom the customer has 19 designated to receive a copy of any notice of disconnection. 20 (3) If the customer has not made such designation, 21 contacting a community interest group or other entity, 22 including local police departments, which have previously 23 agreed to receive a copy of the notice of disconnection and 24 to attempt to contact the customer. 25 (4) If the customer has not made such designation and no 26 such community interest group or other entity has previously 27 agreed to receive a copy of the notice of disconnection, 28 contacting the commission or such other local government unit 29 as the commission shall, by rule or regulation, designate. 30 § 1504. Standards of service and facilities. 19770H0489B0533 - 88 -
1 The commission may, after reasonable notice and hearing, upon 2 its own motion or upon complaint: 3 (1) Prescribe as to service and facilities, including 4 the crossing of facilities, just and reasonable standards, 5 classifications, regulations and practices to be furnished, 6 imposed, observed and followed by any or all public 7 utilities. 8 (2) Prescribe adequate and reasonable standards for the 9 measurement of quantity, quality, pressure, initial voltage 10 or other condition pertaining to the supply of the service of 11 any and all public utilities. 12 (3) Prescribe reasonable regulations for the examination 13 and testing of such service, and for the measurement thereof. 14 (4) Prescribe or approve reasonable rules, regulations, 15 specifications and standards to secure the accuracy of all 16 meters and appliances for measurement. 17 (5) Provide for the examination and testing of any and 18 all appliances used for the measurement of any service of any 19 public utility. 20 § 1505. Proper service and facilities established on complaint. 21 Whenever the commission, after reasonable notice and hearing, 22 upon its own motion or upon complaint, finds that the service or 23 facilities of any public utility are unreasonable, unsafe, 24 inadequate, insufficient, or unreasonably discriminatory, or 25 otherwise in violation of this part, the commission shall 26 determine and prescribe, by regulation or order, the reasonable, 27 safe, adequate, sufficient, service or facilities to be 28 observed, furnished, enforced, or employed, including all such 29 repairs, changes, alterations, extensions, substitutions, or 30 improvements in facilities as shall be reasonably necessary and 19770H0489B0533 - 89 -
1 proper for the safety, accommodation, and convenience of the 2 public. 3 § 1506. Copies of service contracts, etc., to be filed with 4 commission. 5 Any public utility shall, when required by the commission, 6 file with the commission verified copies of any and all 7 contracts, writings, agreements, leases, arrangements, or other 8 engagements, in relation to its public service, entered into by 9 such public utility with any person, corporation, State 10 Government, or the Federal Government, or any branch or 11 subdivision thereof, or any other public utility. 12 § 1507. Testing of appliances for measurement of service. 13 Every public utility, furnishing service upon meter or other 14 similar measurement, shall provide, and keep in and upon the 15 premises of such public utility, suitable and proper apparatus, 16 to be approved from time to time and stamped or marked by the 17 commission, for testing and proving the accuracy of meters 18 furnished by such public utility for use; and by which apparatus 19 every meter may be tested, upon the written request of the 20 consumer to whom the same shall be furnished, and in the 21 presence of the consumer, if he shall so desire. If the meter so 22 tested shall be found to be accurate, within such commercially 23 reasonable limits as the commission may fix for such meters, a 24 reasonable fee, to be fixed by the commission, sufficient to 25 cover the cost of such test, shall be paid by the consumer 26 requiring such test; but, if not so found, then the cost thereof 27 shall be borne by the public utility furnishing the meter. 28 § 1508. Reports of accidents. 29 Every public utility shall give immediate notice to the 30 commission of the happening of any accident in or about, or in 19770H0489B0533 - 90 -
1 connection with, the operation of its service and facilities, 2 wherein any person shall have been killed or injured, and 3 furnish such full and detailed report of such accident, within 4 such time and in such manner as the commission shall require. 5 Such report shall not be open for public inspection, except by 6 order of the commission, and shall not be admitted in evidence 7 for any purpose in any suit or action for damages growing out of 8 any matter or thing mentioned in such report. 9 § 1509. Billing procedures. 10 All bills rendered by a public utility as defined in 11 paragraph (1)(i),(ii),(vi) or (vii) of the definition of "public 12 utility" in section 102 (relating to definitions) to its service 13 customers, except bills for installation charges, shall allow at 14 least 15 days for nonresidential customers and 20 days for 15 residential customers from the date of transmittal of the bill 16 for payment without incurring any late payment penalty charges 17 therefor. All customers shall be permitted to receive bills 18 monthly and shall be notified of their right thereto. All bills 19 shall be itemized to separately show amounts for basic service, 20 Federal excise taxes, applicable State sales and gross receipts 21 taxes, to the extent practicable, fuel adjustment charge, if 22 any, State tax adjustment charge or such other similar 23 components of the total bill as the commission may order. Any 24 electric or gas public utility billing customers on a bimonthly 25 or quarterly basis and rendering interim statements or bills 26 each month shall include in such interim statement or bill an 27 amount for the fuel adjustment charge based upon one-half of the 28 total expected bimonthly kilowatt hour or cubic foot billing or 29 one-third of the total expected quarterly billing and using the 30 fuel adjustment charge rate applicable in the month of the 19770H0489B0533 - 91 -
1 interim statement or bill. At the time of preparing the 2 bimonthly or quarterly bill, an appropriate adjustment shall be 3 made in the total fuel adjustment charge billing for the period. 4 Any public utility rendering bills on a bimonthly basis or 5 quarterly basis shall calculate the fuel adjustment charge per 6 kilowatt hour or cubic foot for the entire period as the 7 weighted average of the two monthly rates or the three monthly 8 rates whichever is applicable. 9 CHAPTER 17 10 ACCOUNTING AND BUDGETARY MATTERS 11 Sec. 12 1701. Mandatory systems of accounts. 13 1702. Continuing property records. 14 1703. Depreciation accounts; reports. 15 1704. Records and accounts to be kept in Commonwealth. 16 1705. Budgets of public utilities. 17 1706. Applicability to municipal corporations. 18 § 1701. Mandatory systems of accounts. 19 The commission may, after reasonable notice and hearing, 20 establish systems of accounts, including cost finding 21 procedures, to be kept by public utilities, or may classify 22 public utilities and establish a system of accounts for each 23 class, and prescribe the manner and form in which such accounts 24 shall be kept. Every public utility shall establish such systems 25 of accounting, and shall keep such accounts in the manner and 26 form required by the commission. The accounting system of any 27 public utility also subject to the jurisdiction of a Federal 28 regulatory body shall correspond, as far as practicable, to the 29 system prescribed by such Federal regulatory body. The 30 commission may require any such public utility to keep and 19770H0489B0533 - 92 -
1 maintain supplemental or additional accounts to those required 2 by any such regulatory body. 3 § 1702. Continuing property records. 4 The commission may require any public utility to establish, 5 provide, and maintain as a part of its system of accounts, 6 continuing property records, including a list or inventory of 7 all the units of tangible property used or useful in the public 8 service, showing the current location of such property units by 9 definite reference to the specific land parcels upon which such 10 units are located or stored. The commission may require any 11 public utility to keep accounts and records in such manner as to 12 show, currently, the original cost of such property when first 13 devoted to the public service, and the reserve accumulated to 14 provide for the depreciation thereof. 15 § 1703. Depreciation accounts; reports. 16 (a) Accounts.--Every public utility shall carry on its books 17 or records of account, proper and reasonable sums representing 18 the annual depreciation on its property used or useful in the 19 public service, which sums shall be based upon the average 20 estimated life of each of the several units or classes of 21 depreciable property. The commission, by appropriate order, 22 after hearing, shall, except where found to be inappropriate, 23 establish for each class of public utilities, the units of 24 depreciable property, the loss upon the retirement of which 25 shall be charged to the depreciation reserve. 26 (b) Statements.--Every public utility shall file with the 27 commission, at such times and in such form as the commission may 28 prescribe, statements setting forth the details supporting its 29 computation of annual depreciation, as recorded on the books or 30 records of accounts of the public utility. If the commission, 19770H0489B0533 - 93 -
1 upon review of such statements, is of the opinion that the 2 amount of annual depreciation so recorded by any public utility 3 is not reasonable and proper, it may, after hearing, require 4 that provision be made for annual depreciation in such sums as 5 may be found by it to be reasonable and proper. In making its 6 findings, the commission shall give consideration to the 7 experience of the public utility, and the predecessors of the 8 public utility in accumulating depreciation reserves, the 9 retirements actually made, and such other factors as may be 10 deemed relevant. 11 (c) Use of estimates.--The commission shall not be bound in 12 rate proceedings to accept, as just and reasonable for rate- 13 making purposes, estimates of annual depreciation established 14 under the provisions of this section, but in such rate 15 proceedings it shall give consideration to statements submitted 16 under this section, in addition to such other factors as may be 17 relevant. 18 § 1704. Records and accounts to be kept in Commonwealth. 19 (a) General rule.--Every public utility shall keep such 20 books, accounts, papers, records, and memoranda, as shall be 21 required by the commission, in an office within this 22 Commonwealth, and shall not remove the same, or any of them, 23 from this Commonwealth, except upon such terms and conditions as 24 may be prescribed by the commission. 25 (b) Exceptions.--This section does not apply to a public 26 utility of another state, engaged in interstate commerce, whose 27 accounts are kept at its principal place of business without 28 this Commonwealth, in the manner prescribed by any Federal 29 regulatory body. Such public utility, when required by the 30 commission, shall furnish to the commission, within such 19770H0489B0533 - 94 -
1 reasonable time as it shall fix, certified copies of its books, 2 accounts, papers, records, and memoranda relating to the 3 business done by such public utility within this Commonwealth. 4 § 1705. Budgets of public utilities. 5 (a) Proposed budgets; adjustments; determination.--The 6 commission may, by regulation, require any class of public 7 utilities, except common carriers, to file proposed budgets with 8 the commission on or before the first day of each budgetary 9 period, showing the amount of money which each public utility 10 within such class, will in its judgment, expend during the 11 budgetary period for payment of salaries of executive officers, 12 donations, advertising, lobbying expenses, entertainment, 13 political contributions, expenditures, and major contracts for 14 the sale or purchase of facilities, and all items covering or 15 contemplating any payment to any affiliated interest for advice, 16 auditing, associating, sponsoring, engineering, managing, 17 operating, financing, legal, or other services. Adjustments or 18 additions to any such budget may be made from time to time by 19 filing supplementary budgets with the commission. When any such 20 budget or supplemental budget has been filed, the commission may 21 examine into and investigate the same to determine whether any 22 or all of the contemplated expenditures are unreasonable or 23 contrary to the public interest and if after reasonable notice 24 and hearing, it shall so determine, it shall make its findings 25 and order in writing rejecting the same or any part thereof. 26 (b) Rejected budgets.--Upon such rejection, the public 27 utility concerned shall not make further expenditures or 28 payments under the budget or part thereof rejected, and no 29 expenditures at any time made under such rejected budget, or 30 part thereof, shall be allowed as an operating expense, or 19770H0489B0533 - 95 -
1 capital expenditure in any rate or valuation proceeding, or in 2 any other proceeding or hearing before the commission, unless 3 and until the propriety thereof shall have been established to 4 the satisfaction of the commission, and any such finding or 5 order shall remain in full force and effect, unless and until 6 such finding or order shall be vacated, modified or set aside by 7 the commission, or upon an appeal, as provided in this part. 8 (c) Use of budgets.--The filing of any budget, its 9 examination, investigation, or determination by the commission, 10 under this section, shall not bar or estop the commission from 11 determining, in any rate valuation or other proceeding, whether 12 any or all of the expenditures made under any budget or 13 supplemental budget are reasonable or commensurate with the 14 service or facilities received. 15 § 1706. Applicability to municipal corporations. 16 The provisions of sections 505 (relating to duty to furnish 17 information to commission; cooperation in valuing property), 506 18 (relating to inspection of facilities and records), 1701 19 (relating to mandatory systems of accounts) and 1703 (relating 20 to depreciation accounts; reports), shall apply to any municipal 21 corporation rendering or furnishing to the public any public 22 utility service. 23 CHAPTER 19 24 SECURITIES AND OBLIGATIONS 25 Sec. 26 1901. Registration of securities to be issued or assumed. 27 1902. Contents of securities certificates. 28 1903. Registration or rejection of securities certificates. 29 1904. Unauthorized securities may be declared void. 30 § 1901. Registration of securities to be issued or assumed. 19770H0489B0533 - 96 -
1 (a) General rule.--Under such regulations as the commission 2 may prescribe, every public utility, before it shall issue or 3 assume securities, shall file with the commission and receive 4 from it, notice of registration of a document to be known as a 5 securities certificate. 6 (b) Issuance of securities defined.--Issuance of securities 7 includes any act of a public utility executing, causing to be 8 authenticated, delivering or making any change or extension in 9 any term, condition or date of, any stock certificate, or other 10 evidence of equitable interest in itself or any bond, note, 11 trust certificate or other evidence of indebtedness of itself. 12 Issuance of securities does not include the execution, 13 authentication or delivery of the following: 14 (1) Securities to replace identical securities lost, 15 mutilated or destroyed while in the ownership of a bona fide 16 holder-for-value who properly indemnifies the public utility 17 therefor. 18 (2) Securities in exchange for the surrender of 19 identical securities, solely for the purpose of registering 20 or facilitating changes in the ownership thereof between bona 21 fide holders-for-value, which surrendered securities are 22 thereupon cancelled. 23 (3) Securities from the treasury of the public utility 24 previously reacquired from bona fide holders-for-value and 25 held alive. 26 (4) Any evidence of indebtedness, the date of maturity 27 of which is at a period of less than one year from the date 28 of its execution. 29 (5) Any evidence of indebtedness for which no date of 30 maturity is fixed but which matures upon demand of the 19770H0489B0533 - 97 -
1 holder. 2 (6) Any evidence of indebtedness in the nature of a 3 contract between a public utility and a vendor of equipment 4 wherein the public utility promises to pay installments upon 5 the purchase price of equipment acquired and which is not in 6 the form of an equipment trust certificate or similar 7 instrument readily marketable to the general public. 8 (c) Assumption of securities defined.--Assumption of 9 securities includes any act of a public utility assuming primary 10 or contingent liability for the payment of any dividends upon 11 any stocks or of any principal or interest of any indebtedness, 12 created or incurred by any other person or corporation. 13 Assumption of securities does not include the acquisition of all 14 property of the issuing company by the assuming company as 15 provided in section 1102(3) (relating to enumeration of acts 16 requiring certificate) if the approval of the commission is 17 obtained. 18 § 1902. Contents of securities certificates. 19 Every securities certificate shall be verified by oath or 20 affirmation, and shall be in such form, and contain such 21 information pertinent to a proposed issuance or assumption of 22 securities, as the commission may require by its regulations. If 23 two or more issues of securities are proposed to be issued or 24 assumed by a public utility, a separate securities certificate 25 shall be submitted to the commission for the issuance or 26 assumption of each security issue. All information submitted to 27 the commission or obtained through investigation or hearing 28 shall become a part of the securities certificate. 29 § 1903. Registration or rejection of securities certificates. 30 (a) General rule.--Upon the submission or completion of any 19770H0489B0533 - 98 -
1 securities certificate, as provided in this part, the commission 2 shall register the same if it shall find that the issuance or 3 assumption of securities in the amount, of the character, and 4 for the purpose therein proposed, is necessary or proper for the 5 present and probable future capital needs of the public utility 6 filing such securities certificate; otherwise it shall reject 7 the securities certificate. The commission may consider the 8 relation which the amount of each class of securities issued by 9 such public utility bears to the amount of other such classes, 10 the nature of the business of such public utility, its credit 11 and prospects, and other relevant matters. If, at the end of 30 12 days after the filing of a securities certificate, no order of 13 rejection has been entered, such certificate shall be deemed, in 14 fact and law, to have been registered. The commission may, by 15 written order, giving reasons therefor, extend the 30-day 16 consideration period. 17 (b) Effect of registration.--Such registration or rejection 18 may be as to all or part of the securities to which such 19 securities certificate pertains, and any registration may be 20 made subject to such conditions as the commission may deem 21 reasonable in the premises. No registration, however, shall be 22 construed to imply any guaranty or obligation on the part of the 23 Commonwealth as to such securities, nor shall it be taken as 24 requiring the commission, in any proceeding brought before it 25 for any purpose, to fix a valuation which shall be equal to the 26 total of such securities and any other outstanding securities of 27 such public utility, or to approve or prescribe a rate which 28 shall be sufficient to yield a return on such securities or the 29 total securities of such public utility. 30 (c) Written notice.--Written notice of the registration or 19770H0489B0533 - 99 -
1 rejection of any securities certificate shall be served by 2 registered mail upon the public utility. Every notice of 3 rejection shall contain a statement of the specific reasons for 4 rejection. Both registered and rejected securities certificates 5 shall be retained in the files of the commission. 6 (d) Amendment of rejected certificate.--At any time within 7 30 days after the commission shall have rejected a securities 8 certificate, the public utility submitting such securities 9 certificate may submit amendments thereto, verified by oath or 10 affirmation, whereupon the commission shall again consider and 11 act upon the securities certificate, as provided in subsection 12 (a); but a securities certificate which shall have been twice 13 rejected by the commission shall not be amended again. The 14 registration by the commission of a securities certificate, 15 either as completed or amended, shall bind the public utility 16 submitting such securities certificate to issue or assume the 17 securities only under the terms, and for the purpose recited in 18 such securities certificate and the issuance or assumption of 19 the securities under any other terms, or for any other purpose, 20 shall be unlawful. 21 (e) Judicial review.--Appeals from the action of the 22 commission upon any securities certificates may be taken as 23 provided by law. The completed securities certificate shall 24 constitute the record to be certified to the appellate court in 25 such appeal. 26 § 1904. Unauthorized securities may be declared void. 27 In addition to any other penalty provided in this part for 28 any violation of this chapter, the commission, after due 29 consideration of the public interest, may declare void any 30 securities issued, or any assumption of securities made in 19770H0489B0533 - 100 -
1 violation of this chapter. Any such declaration shall not be 2 construed as a bar to the recovery, by an innocent holder-for- 3 value of such securities, of any losses sustained by reason of 4 the wrongful acts of the issuing or assuming public utility. 5 CHAPTER 21 6 RELATIONS WITH AFFILIATED INTERESTS 7 Sec. 8 2101. Definition of affiliated interest. 9 2102. Approval of contracts with affiliated interest. 10 2103. Continuing supervision and jurisdiction over contracts. 11 2104. Contracts to be in writing; cost data. 12 2105. Contracts in violation of part void. 13 2106. Effect on rates. 14 2107. Federal regulatory agencies. 15 § 2101. Definition of affiliated interest. 16 (a) General rule.--As used in this part "affiliated 17 interest" with a public utility means and includes the 18 following: 19 (1) Every corporation and person owning or holding 20 directly or indirectly 5% or more of the voting securities of 21 such public utility. 22 (2) Every corporation and person in any chain of 23 successive ownership of 5% or more of voting securities. 24 (3) Every corporation 5% or more of whose voting 25 securities are owned by any person or corporation owning 5% 26 or more of the voting securities of such public utility or by 27 any person or corporation in any such chain of successive 28 ownership of 5% or more of voting securities. 29 (4) Every person who is an officer or director of such 30 public utility or of any corporation in any chain of 19770H0489B0533 - 101 -
1 successive ownership of 5% or more of voting securities. 2 (5) Every corporation operating a public utility or a 3 servicing organization for furnishing supervisory, 4 construction, engineering, accounting, legal and similar 5 services to utilities, which has one or more officers or one 6 or more directors in common with such public utility, to 7 every other corporation which has directors in common with 8 such public utility where the number of such directors is 9 more than one-third of the total number of the utility's 10 directors. 11 (6) Every corporation or person which the commission may 12 determine as a matter of fact after investigation and hearing 13 is actually exercising any substantial influence over the 14 policies and actions of such public utility even though such 15 influence is not based upon stockholding, stockholders, 16 directors or officers to the extent specified in this 17 section. As used in this part substantial influence means any 18 corporation or person which or who stands in such 19 relationship to the public utility that there is an absence 20 of free and equal bargaining power between it or him and the 21 public utility. 22 (7) Every person or corporation who or which the 23 commission may determine as a matter of fact after 24 investigation and hearing is actually exercising such 25 substantial influence over the policies and actions of such 26 public utility in conjunction with one or more other 27 corporations or persons, or both, with which or whom they are 28 related by ownership or blood relationship, or both, or by 29 action in concert that together they are affiliated with such 30 public utility within the meaning of this section even though 19770H0489B0533 - 102 -
1 no one of them alone is so affiliated. 2 (b) Construction of section.--The term "person" shall not be 3 construed to exclude trustees, lessees, holders of beneficial 4 equitable interest, voluntary associations, receivers and 5 partnerships. 6 § 2102. Approval of contracts with affiliated interests. 7 (a) General rule.--No contract or arrangement providing for 8 the furnishing of management, supervisory, construction, 9 engineering, accounting, legal, financial, or similar services, 10 and no contract or arrangement for the purchase, sale, lease, or 11 exchange of any property, right, or thing or for the furnishing 12 of any service, property, right or thing other than those above 13 enumerated, made or entered into after the effective date of 14 this section between a public utility and any affiliated 15 interest shall be valid or effective unless and until such 16 contract or arrangement has received the written approval of the 17 commission. If such contract is oral, a complete statement of 18 the terms and conditions thereof shall be filed with the 19 commission and subject to its approval. 20 (b) Filing and action on contract.--It shall be the duty of 21 every public utility to file with the commission a verified copy 22 of any such contract or arrangement, or a verified summary as 23 described in subsection (a) of any such unwritten contract or 24 arrangement. All such contracts and arrangements, whether 25 written or unwritten, entered into prior to the effective date 26 of this section and required to be on file with the commission 27 by prior act and in full force and effect at the effective date 28 of this section shall be subject to the provisions of the 29 sections regarding affiliated interests. The commission shall 30 approve such contract or arrangement made or entered into after 19770H0489B0533 - 103 -
1 the effective date of this section only if it shall clearly 2 appear and be established upon investigation that it is 3 reasonable and consistent with the public interest. If at the 4 end of 30 days after the filing of a contract or arrangement, no 5 order of rejection has been entered, such contract or 6 arrangement, whether written or unwritten, shall be deemed, in 7 fact and law, to have been approved. The commission may, by 8 written order, giving reasons therefor, extend the 30-day 9 consideration period. No such contract or arrangement shall 10 receive the commission's approval unless satisfactory proof is 11 submitted to the commission of the cost to the affiliated 12 interest of rendering the services or of furnishing the property 13 or service described herein to the public utility. No proof 14 shall be satisfactory within the meaning of the foregoing 15 sentence unless it includes the original (or verified copies) of 16 the relevant cost records and other relevant accounts of the 17 affiliated interest, or such abstract thereof or summary taken 18 therefrom as the commission may deem adequate, properly 19 identified and duly authenticated. The commission may, where 20 reasonable, approve or disapprove such contracts or arrangements 21 without the submission of such cost records or accounts. 22 (c) Disallowance of excessive amounts.--If the commission 23 shall determine that the amounts paid or payable under a 24 contract or arrangement filed in accordance with this section 25 are in excess of the reasonable price for furnishing the 26 services provided for in the contract, or that such services are 27 not reasonably necessary and proper, it shall disallow such 28 amounts, insofar as found excessive, in any proceeding involving 29 the rates or practices of the public utility. In any proceeding 30 involving such amounts, the burden of proof to show that such 19770H0489B0533 - 104 -
1 amounts are not in excess of the reasonable price for furnishing 2 such services, and that such services are reasonable and proper, 3 shall be on the public utility. 4 (d) Exceptions.--The provisions requiring the written 5 approval of the commission shall not apply to transactions with 6 affiliated interests of any common carrier by railroad or motor 7 vehicle that is subject to the Interstate Commerce Act unless 8 required by order of the commission, nor where the amount of 9 consideration involved is not in excess of $10,000 or 5% of the 10 par value of outstanding common stock, whichever is smaller. 11 Regularly recurring payments under a general or continuing 12 arrangement which aggregate a greater annual amount shall not be 13 broken down into a series of transactions to come within this 14 exemption. Where the commission has given its approval generally 15 as to a class or category of transactions, the commission may 16 apply such approval to all subsidiary or related transactions. 17 Such transactions shall be valid or effective without commission 18 approval under this section. However, in any proceeding 19 involving the rates or practices of the public utility, the 20 commission may disallow any payment or compensation made 21 pursuant to such transaction unless the public utility shall 22 establish the reasonableness of such payment or compensation. 23 § 2103. Continuing supervision and jurisdiction over contracts. 24 The commission shall have continuing supervisory control over 25 the terms and conditions of contracts and arrangements as 26 described in section 2102 (relating to approval of contracts 27 with affiliated interests) so far as necessary to protect and 28 promote the public interest. The commission shall have the same 29 jurisdiction over the modifications or amendment of contracts or 30 arrangements as it has over such original contracts and 19770H0489B0533 - 105 -
1 arrangements. The fact that the commission shall have approved 2 entry into such contracts or arrangements shall not preclude 3 disallowance or disapproval of payments made pursuant thereto, 4 if upon actual experience under such contract or arrangement it 5 appears that the payments provided for or made were or are 6 unreasonable. 7 § 2104. Contracts to be in writing; cost data. 8 The commission may, by regulation or order, require any 9 contract with an affiliated interest to be in writing. The 10 commission may also, by regulation or order, require that any 11 contract with an affiliated interest shall contain a provision 12 whereby the affiliated interest shall agree to furnish to the 13 public utility, at the time of billing such public utility for 14 any service, property, security, right, or thing, under such 15 contract, a detailed statement of the cost to the affiliated 16 interest of such service, property, security, right, or thing. 17 § 2105. Contracts in violation of part void. 18 Every contract with an affiliated interest, made effective or 19 modified in violation of any provision of this part, or of any 20 regulation or order of the commission made under this part, 21 shall be void; and any purchase, sale, payment, lease, loan, or 22 exchange of any service, property, money, security, right, or 23 thing under such contract, or under any contract with an 24 affiliated interest, the terms of which shall have been breached 25 by the affiliated interest, shall be unlawful. 26 § 2106. Effect on rates. 27 In any proceeding, upon the commission's own motion, or upon 28 application or complaint, involving rates or practices of any 29 public utility, the commission may disallow, in whole or in 30 part, any payment or compensation to an affiliated interest for 19770H0489B0533 - 106 -
1 any services rendered or property or service furnished, or any 2 property, right, or thing received by such public utility, or 3 donation given or received, under existing contracts or 4 arrangements with such affiliated interest unless such public 5 utility shall establish the reasonableness thereof. In such 6 proceeding no payment shall be approved or allowed by the 7 commission, in whole or in part, unless satisfactory proof is 8 submitted to the commission of the cost to the affiliated 9 interest of rendering the service or furnishing the service, 10 property, security, right or thing to the public utility. No 11 proof shall be satisfactory, within the meaning of the foregoing 12 sentence, unless it includes the original (or verified copies) 13 of the relevant cost records and other relevant accounts of the 14 affiliated interest, or such abstract thereof or summary taken 15 therefrom as the commission may deem adequate, properly 16 identified and duly authenticated. The commission may, where 17 reasonable, approve or disapprove such contracts or arrangements 18 without the submission of such cost records or accounts. 19 § 2107. Federal regulatory agencies. 20 The provisions of this chapter shall not be applicable to the 21 rates and related terms and conditions for the interstate 22 transmission of electricity, natural gas, liquified natural gas, 23 substitute natural gas, liquified propane gas or naphtha which 24 have been submitted to and approved by a Federal regulatory 25 agency having jurisdiction thereof, except that the commission 26 may regulate the volume of such purchases. 27 SUBPART D 28 SPECIAL PROVISIONS RELATING TO REGULATION 29 OF PUBLIC UTILITIES 30 Chapter 19770H0489B0533 - 107 -
1 23. Common Carriers 2 25. Contract Carrier by Motor Vehicle and Broker 3 27. Railroads 4 29. Telephone and Telegraph Wires 5 CHAPTER 23 6 COMMON CARRIERS 7 Sec. 8 2301. Operation and distribution of facilities of common 9 carriers. 10 2302. Transfers and time schedules of common carriers. 11 2303. Common carrier connections with other lines. 12 2304. Liability of common carriers for damages to property 13 in transit; bills of lading. 14 2305. Full crews. 15 § 2301. Operation and distribution of facilities of common 16 carriers. 17 Every common carrier shall furnish a reasonably sufficient 18 number of safe facilities, and run and operate the same with 19 such motive power as may reasonably be required, in the 20 transportation of all such passengers or property as may seek, 21 or be offered to it, for such transportation, and shall operate 22 its facilities with sufficient frequency, at such reasonable and 23 proper times, and to and from such stations or points, as the 24 commission, having regard to the accommodation, convenience, and 25 safety of the public, may require; and, when required by the 26 commission, shall change the time schedule for the operation of 27 its facilities, and, generally, shall make any other 28 arrangements and improvements in its service which the 29 commission may require. If, at any particular time, a common 30 carrier may not have sufficient facilities to meet the 19770H0489B0533 - 108 -
1 requirements for the transportation of property, then it shall 2 lawfully distribute all available facilities among the several 3 applicants therefor without discrimination between shippers, 4 localities, or competitive or noncompetitive points, in 5 accordance with such regulations as the commission may 6 prescribe. Such regulations, in the case of common carriers also 7 engaged in interstate commerce, shall conform so far as 8 practicable to those prescribed by any Federal regulatory body 9 on the subject. Preference may always be given in the supply of 10 facilities for transportation of fuel, livestock, or perishable 11 matter. 12 § 2302. Transfers and time schedules of common carriers. 13 Whenever the commission shall, after hearing had upon its own 14 motion or upon complaint, deem it necessary or proper for the 15 accommodation, convenience, and safety of the public in the 16 transportation of passengers, every common carrier shall 17 transfer such passengers to or from another part of the system 18 of such common carrier and, to this end, shall make proper and 19 convenient arrangement or adjustment of the time schedules of 20 such common carrier, and shall also make such proper and 21 convenient arrangement or adjustment of the time schedules of 22 such common carrier with those of like adjustment of the time 23 schedules of such common carrier with those of like, contiguous, 24 or connecting common carriers, as the commission shall deem 25 necessary or proper for the accommodation, convenience, and 26 safety of the public. 27 § 2303. Common carrier connections with other lines. 28 (a) General rule.--Every common carrier shall construct and 29 maintain, whenever the commission may, after hearing had upon 30 its own motion or upon complaint, require the same, such switch 19770H0489B0533 - 109 -
1 or other connections with or between the lines of a like common 2 carrier, where the same is reasonably practical, to form a 3 continuous line of transportation, and to cause the 4 transportation of passengers or property between points within 5 this Commonwealth to be without unreasonable interruption or 6 delay, and shall establish through routes and service therein, 7 and joint rates applicable thereto, and, where practicable, 8 shall transport passengers or property over the same without 9 transfer from the originating facilities. In case of failure of 10 the common carriers concerned to agree among themselves upon the 11 division of the cost of construction, maintenance, and operation 12 of the connections thus provided for, or the allowance to be 13 made for the interchange of service, the commission shall 14 ascertain and, by order, prescribe and fix the equitable and 15 just apportionment and division of the same. 16 (b) Limitation.--Every common carrier and motor carrier is 17 hereby prohibited from interchanging, receiving or delivering, 18 with, from or to any common carrier by motor vehicle which does 19 not have in force a certificate or permit authorizing it to 20 transport property within the jurisdiction of this part. 21 § 2304. Liability of common carriers for damages to property 22 in transit; bills of lading. 23 (a) General rule.--Every common carrier that receives 24 property for transportation between points within this 25 Commonwealth shall issue a receipt or bill of lading therefor, 26 and shall be liable to the lawful holder thereof for any loss, 27 damage, or injury to such property caused by it, or any other 28 common carrier to which such property may be delivered, or over 29 whose line such property may be transported. No contract, 30 receipt, rule or regulation shall exempt such common carrier 19770H0489B0533 - 110 -
1 from the liability hereby imposed. The commission may, by 2 regulation or order, authorize or require any common carrier to 3 establish and maintain rates related to the value of shipments 4 declared in writing by the shipper, or agreed upon in writing as 5 the release value of such shipments; such declaration or 6 agreement to have no effect other than to limit liability and 7 recovery to an amount not exceeding the value so declared or 8 released. Any tariff filed pursuant to such regulation or order 9 shall specifically refer thereto. 10 (b) Rights of holder and common carrier.--This section does 11 not deprive any lawful holder of such receipt or bill of lading 12 of any remedy or right of action which such holder has under 13 existing laws. Any common carrier issuing such receipt or bill 14 of lading shall, in the event of a recovery of a judgment 15 against, or of a satisfaction made by, such common carrier for 16 such loss or damage, be entitled to recover from the common 17 carrier on whose line the loss or damage shall have been 18 sustained, an amount not in excess of the loss or damage to such 19 property which the lawful holder of such bill of lading or 20 receipt would otherwise have been entitled to recover against 21 such last mentioned common carrier, and not in excess of the 22 amount actually paid to the holder of such receipt or bill of 23 lading. 24 § 2305. Full crews. 25 After reasonable notice and hearing had upon its own motion, 26 or upon complaint, the commission may, by order, require any 27 common carrier to employ such number of men upon any of its 28 facilities as, in the judgment of the commission, is requisite 29 for the safe and efficient operation of such facilities. 30 CHAPTER 25 19770H0489B0533 - 111 -
1 CONTRACT CARRIER BY MOTOR VEHICLE AND BROKER 2 Sec. 3 2501. Definitions. 4 2502. Regulation and classification of contract carrier and 5 broker. 6 2503. Permits required of contract carriers. 7 2504. Dual operation by motor carriers. 8 2505. Licenses and financial responsibility required of 9 brokers. 10 2506. Copies of contracts to be filed with commission; charges 11 and changes therein. 12 2507. Minimum rates fixed and practices prescribed on 13 complaint. 14 2508. Accounts, records and reports. 15 2509. Temporary permits and licenses. 16 § 2501. Definitions. 17 The following words and phrases when used in this part shall 18 have, unless the context clearly indicates otherwise, the 19 meanings given to them in this section: 20 "Broker." Any person or corporation not included in the term 21 "motor carrier" and not a bona fide employee or agent of any 22 such carrier, or group of such carriers, who or which, as 23 principal or agent, sells or offers for sale any transportation 24 by a motor carrier, or the furnishing, providing, or procuring 25 of facilities therefor, or negotiates for, or holds out by 26 solicitation, advertisement, or otherwise, as one who sells, 27 provides, furnishes, contracts, or arranges for such 28 transportation, or the furnishing, providing, or procuring of 29 facilities therefor, other than as a motor carrier directly or 30 jointly, or by arrangement with another motor carrier, and who 19770H0489B0533 - 112 -
1 does not assume custody as a carrier. 2 "Contract carrier by motor vehicle." 3 (1) The term "contract carrier by motor vehicle" 4 includes any person or corporation who or which provides or 5 furnishes transportation of passengers or property, or both, 6 or any class of passengers or property, between points within 7 this Commonwealth by motor vehicle for compensation, whether 8 or not the owner or operator of such motor vehicle, or who or 9 which provides or furnishes, with or without drivers, any 10 motor vehicle for such transportation, or for use in such 11 transportation, other than as a common carrier by motor 12 vehicle. 13 (2) The term "contract carrier by motor vehicle" does 14 not include: 15 (i) A lessor under a lease given on a bona fide sale 16 of a motor vehicle where the lessor retains or assumes no 17 responsibility for maintenance, supervision or control of 18 the motor vehicle so sold. 19 (ii) Any bona fide agricultural cooperative 20 association transporting property exclusively for the 21 members of such association on a nonprofit basis, or any 22 independent contractor hauling exclusively for such 23 association. 24 (iii) Any owner or operator of a farm transporting 25 agricultural products from or farm supplies to such farm, 26 or any independent contractor hauling agricultural 27 products or farm supplies, exclusively, for one or more 28 owners or operators of farms. 29 (iv) Transportation of school children for school 30 purposes or to and from school sponsored extra curricular 19770H0489B0533 - 113 -
1 activities whether as participants or spectators, 2 together with chaperons who might accompany them as 3 designated by the board of school districts not exceeding 4 five in number, or between their homes and Sunday school 5 in any motor vehicle owned by the school district, 6 private school or parochial school, or the transportation 7 of school children between their homes and school or to 8 and from school sponsored extra curricular or educational 9 activities whether as participants or spectators, 10 together with chaperons who might accompany them as 11 designated by the board of school directors not exceeding 12 five in number, if the person performing the extra 13 curricular transportation has a contract for the 14 transportation of school children between their homes and 15 school, with the private or parochial school, with the 16 school district or jointure in which the school is 17 located, or with a school district that is a member of a 18 jointure in which the school is located if the jointure 19 has no contracts with other persons for the 20 transportation of students between their homes and 21 school, and if the person maintains a copy of all 22 contracts in the vehicle at all times, or children 23 between their homes and Sunday school in any motor 24 vehicle operated under contract with the school district, 25 private school or parochial school. 26 (v) Any person or corporation who or which uses, or 27 furnishes for use, dump trucks for the transportation of 28 ashes, rubbish, excavated or road construction materials. 29 (vi) Transportation of voting machines to and from 30 polling places by any person or corporation for or on 19770H0489B0533 - 114 -
1 behalf of any political subdivision of this Commonwealth 2 for use in any primary, general or special election. 3 (vii) Transportation of pulpwood, chemical wood, saw 4 logs or veneer logs from woodlots. 5 (viii) Transportation by towing of wrecked or 6 disabled motor vehicles. 7 (ix) Any person or corporation who or which 8 furnishes transportation for any injured, ill or dead 9 person. 10 § 2502. Regulation and classification of contract carrier 11 and broker. 12 (a) Regulation.--The commission shall regulate: 13 (1) Contract carriers by motor vehicle, and to that end 14 the commission may prescribe minimum rates which are just and 15 reasonable, and establish requirements with respect to 16 uniform systems of accounts, records, reports, preservation 17 of records, safety of service and equipment and insurance. 18 (2) Brokers, and to that end the commission may 19 prescribe requirements with respect to licensing, financial 20 responsibility, accounts, reports, records, services and 21 practices of any such brokers. 22 (b) Classification.--The commission may from time to time 23 establish such classifications of contract carriers by motor 24 vehicle, or brokers, as the special nature of the service of 25 such carriers or brokers shall require and as deemed necessary 26 or desirable in the public interest. 27 § 2503. Permits required of contract carriers. 28 (a) General rule.--No person or corporation shall render 29 service as a contract carrier by motor vehicle unless there is 30 in force with respect to such carrier a permit issued by the 19770H0489B0533 - 115 -
1 commission, authorizing such person or corporation to engage in 2 such business. The application for such permit shall be 3 determined by the commission in accordance with the provisions 4 of subsection (b). 5 (b) Application and issuance.--Every application for such 6 permit shall be made to the commission in writing, be verified 7 by oath or affirmation, and shall be in such form and contain 8 such information as the commission may require by its 9 regulations. A permit shall be issued by the commission to any 10 qualified applicant therefor authorizing in whole or in part the 11 service covered by the application, if it appears from the 12 application, or from any hearing held thereon, that the 13 applicant is fit, willing and able properly to perform the 14 service of a contract carrier by motor vehicle, and to conform 15 to the provisions of this chapter and the lawful orders or 16 regulations of the commission thereunder, and that the proposed 17 service to the extent authorized by the permit will be 18 consistent with the public interest; otherwise such application 19 shall be denied. 20 (c) Special permit provisions.--The commission shall specify 21 in the permit the business of the contract carrier by motor 22 vehicle covered thereby, and the route and area required in 23 serving the customers in such business, and shall attach to it, 24 at the time of issuance, and from time to time thereafter, such 25 reasonable terms, conditions, flexibility and limitations 26 consistent with the character of the holder as are necessary to 27 carry out, with respect to the service of such carrier, the 28 requirements of this part. 29 § 2504. Dual operation by motor carriers. 30 No person or corporation shall at the same time hold a 19770H0489B0533 - 116 -
1 certificate of public convenience as a common carrier by motor 2 vehicle and a permit as a contract carrier by motor vehicle, 3 unless for good cause shown, the commission shall find that such 4 certificate and permit may be held consistently with the public 5 interest. 6 § 2505. Licenses and financial responsibility required of 7 brokers. 8 (a) General rule.--No person or corporation shall engage in 9 the business of a broker in this Commonwealth unless such person 10 holds a brokerage license issued by the commission. No such 11 person or corporation, by virtue of a brokerage license, shall 12 render service as a motor carrier unless he holds a certificate 13 of public convenience or permit, as the case may be. It shall be 14 unlawful for any broker to employ any motor carrier who or which 15 is not the lawful holder of an effective certificate of public 16 convenience or permit. 17 (b) License application and issuance.--Every application for 18 a brokerage license shall be made to the commission in writing, 19 be verified by oath or affirmation, and shall be in such form 20 and contain such information as the commission may, by its 21 regulations, require. A brokerage license shall be issued to any 22 qualified applicant therefor, authorizing the whole or any part 23 of the service covered by the application, if it is found that 24 the applicant is fit, willing and able properly to perform the 25 service proposed and to conform to the provisions of this part 26 and the lawful orders and regulations of the commission 27 thereunder, and that the proposed service, to the extent 28 authorized by the license, will be consistent with the public 29 interest. 30 (c) Regulation and bond.--The commission shall prescribe 19770H0489B0533 - 117 -
1 reasonable regulations to be observed by any broker for the 2 protection of passengers or property transported by motor 3 vehicle, and no brokerage license shall be issued or remain in 4 force unless the holder thereof shall have furnished a bond or 5 other security approved by the commission, in such form and 6 amount as will insure the financial responsibility of the broker 7 and the transportation of passengers or property in accordance 8 with contracts, agreements or arrangements therefor. 9 (d) Transferability of permits and licenses.--Any permit or 10 brokerage license issued under this chapter may be transferred 11 pursuant to such regulations as the commission may prescribe. 12 § 2506. Copies of contracts to be filed with commission; 13 charges and changes therein. 14 (a) General rule.--It shall be the duty of every contract 15 carrier by motor vehicle to reduce to writing and file with the 16 commission all contracts, or copies thereof, pertaining to the 17 service of such carrier, and such schedules or other information 18 pertaining to the rates of such carrier, in such form and 19 detail, and at such times, as the commission may require. No 20 such contract carrier shall engage in the transportation of 21 passengers or property, unless the minimum charges for such 22 transportation by such carrier have been filed with the 23 commission, or copies of all contracts reduced to writing and 24 filed with the commission. No reduction shall be made in any 25 charge either directly or by means of any change in any rule, 26 regulation or practice affecting such charge, except after 60 27 days notice of the proposed change filed in such form and manner 28 as the commission may by regulation prescribe, but the 29 commission may, in its discretion, allow such change upon less 30 notice. Such notice shall plainly state the change proposed to 19770H0489B0533 - 118 -
1 be made and the time when such change will become effective. No 2 such carrier shall demand, charge, or collect a less 3 compensation for such transportation than the charges filed in 4 accordance with this section, as affected by any rule, 5 regulation, or practice so filed, or as prescribed by the 6 commission from time to time, and it shall be unlawful for any 7 such carrier, by the furnishing of special service, facilities, 8 or privileges, or by any other device whatsoever, to charge, 9 accept or receive less than the minimum charge so filed or 10 prescribed. 11 (b) Reduced charges.--Whenever any such contract carrier 12 shall file with the commission any schedule or contract stating 13 a reduced charge for the transportation of passengers or 14 property directly or by means of any rule, regulation or 15 practice, the commission is hereby authorized and empowered, 16 upon complaint, or upon its own motion, at once and if it so 17 orders, without answer or other formal pleading, but upon 18 reasonable notice, to enter upon a hearing concerning the 19 reasonableness and justness of such charge, rule, regulation, or 20 practice; and pending such hearing and decision thereon, the 21 commission, by filing with such schedule or contract, and 22 delivering to the carrier affected thereby, a statement in 23 writing of its reasons for such suspension, may suspend the 24 operation of such schedule or contract, or defer the use of such 25 charge, rule, regulation or practice for a period of 90 days; 26 and if the proceeding has not been concluded and a final order 27 made within such period, the commission may, from time to time, 28 extend the period of suspension, but not for a longer period in 29 the aggregate than 180 days beyond the time when it would 30 otherwise become effective; and after hearing, whether completed 19770H0489B0533 - 119 -
1 before or after the charge, rule, regulation, or practice 2 becomes effective, the commission may make such order with 3 reference thereto, as would be proper in a proceeding instituted 4 after it had become effective. 5 § 2507. Minimum rates fixed and practices prescribed on 6 complaint. 7 Whenever, after hearing upon complaint or its own motion, the 8 commission finds that any rate of any contract carrier by motor 9 vehicle, or any regulation or practice of any such carrier 10 affecting such rate for the transportation of passengers or 11 property, contravenes the public interest, the commission may 12 prescribe such minimum rates or such regulations or practices as 13 in its judgment may be just and reasonable to promote the public 14 interest. Such minimum rates or such regulations or practices so 15 prescribed by the commission shall not be inconsistent with the 16 public interest, and the commission shall give due consideration 17 to the cost of the service of such carriers, and to the effect 18 of such minimum rates or such regulations or practices upon the 19 transportation of passengers or property by such carriers, and 20 diversion of the business of any common carrier by motor vehicle 21 to other forms of transportation. All complaints to the 22 commission under this section shall state fully the facts 23 complained of and the reasons for such complaints, and shall be 24 made under oath or affirmation. 25 § 2508. Accounts, records and reports. 26 (a) Reports.--The commission is hereby authorized to require 27 annual, periodical, or special reports from all contract 28 carriers by motor vehicle and brokers; to prescribe the manner 29 and form in which such reports shall be made; and to require 30 from such carriers and brokers, specific answers to all 19770H0489B0533 - 120 -
1 questions upon which the commission may deem information to be 2 necessary. Such reports shall be under oath or affirmation 3 whenever the commission so requires. 4 (b) Form of accounts and records.--The commission may 5 prescribe the forms of any and all accounts, records, and 6 memoranda, including the accounts, records, and memoranda of the 7 movement of traffic, as well as of the receipts and expenditures 8 of money, to be kept by contract carriers by motor vehicle, and 9 brokers, and the length of time such accounts, records, and 10 memoranda shall be preserved; and whenever the commission shall 11 so prescribe, it shall be the duty of every contract carrier by 12 motor vehicle, and broker, affected to comply therewith. In 13 every case of a contract carrier by motor vehicle, or broker, 14 subject to the jurisdiction of any Federal regulatory body, the 15 systems of accounts, records, and memoranda prescribed by the 16 commission shall conform, so far as practicable, to those 17 prescribed by such regulatory body. 18 § 2509. Temporary permits and licenses. 19 The commission, under such regulations as it shall prescribe, 20 may, without hearing, in proper cases, consider and approve 21 applications for permits and licenses, and in emergencies grant 22 temporary permits and licenses under this chapter, pending 23 action on permanent permits or licenses; but no application 24 shall be denied without right of hearing thereon being tendered 25 the applicant. 26 CHAPTER 27 27 RAILROADS 28 Sec. 29 2701. Railroad connections with sidetracks and laterals. 30 2702. Construction, relocation, suspension and abolition of 19770H0489B0533 - 121 -
1 crossings. 2 2703. Ejectment in crossing cases. 3 2704. Compensation for damages occasioned by construction, 4 relocation or abolition of crossings. 5 2705. Speedometers. 6 2706. Flag protection. 7 § 2701. Railroad connections with sidetracks and laterals. 8 (a) General rule.--Every public utility engaged in a 9 railroad business shall, upon application of any owner or 10 operator of any lateral railroad, or any private sidetrack, or 11 of any shipper tendering property for transportation, or of any 12 consignee, construct, maintain, and operate, at a reasonable 13 place and upon reasonable terms, a switch connection with any 14 such lateral railroad or private sidetrack which may be 15 constructed to connect with its railroad, where such connection 16 may be reasonably practicable and can be put in with safety, and 17 will furnish sufficient business to justify the construction and 18 maintenance of the same. 19 (b) Additional connections and use.--Whenever any lateral 20 line of railroad or private sidetrack has been so connected with 21 a line of any railroad, or whenever any owner of such lateral 22 railroad or private sidetrack has at any time heretofore sold or 23 leased, or shall hereafter sell or lease, such lateral railroad 24 or sidetrack to any public utility engaged in a railroad 25 business, any person or corporation, including a municipal 26 corporation, shall be entitled to connect therewith, or to use 27 the same upon payment to the party incurring the primary expense 28 thereof of a reasonable proportion of the cost of such lateral 29 railroad or private sidetrack, and of the maintenance thereof, 30 which shall be determined, in case of disagreement among the 19770H0489B0533 - 122 -
1 parties, by the commission, after notice to the interested 2 parties, and a hearing. Such connection and use can be made 3 without unreasonable interference with the use thereof by the 4 party incurring the primary expense of owning or leasing such 5 lateral railroad or sidetrack. 6 § 2702. Construction, relocation, suspension and abolition of 7 crossings. 8 (a) General rule.--No public utility, engaged in the 9 transportation of passengers or property, shall, without prior 10 order of the commission, construct its facilities across the 11 facilities of any other such public utility or across any 12 highway at grade or above or below grade, or at the same or 13 different levels; and no highway, without like order, shall be 14 so constructed across the facilities of any such public utility, 15 and, without like order, no such crossing heretofore or 16 hereafter constructed shall be altered, relocated, suspended or 17 abolished. 18 (b) Acquisition of property and regulation of crossing.--The 19 commission is hereby vested with exclusive power to appropriate 20 property for any such crossing, except as to such property as 21 has been or may hereafter be condemned by the Department of 22 Transportation for projects financed entirely by the 23 Commonwealth and for Federal Aid Projects under section 1004 of 24 the act of June 1, 1945 (P.L.1242, No.428), known as the "State 25 Highway Law," in which case the provisions of that statute shall 26 be in effect, and to determine and prescribe, by regulation or 27 order, the points at which, and the manner in which, such 28 crossing may be constructed, altered, relocated, suspended or 29 abolished, and the manner and conditions in or under which such 30 crossings shall be maintained, operated, and protected to 19770H0489B0533 - 123 -
1 effectuate the prevention of accidents and the promotion of the 2 safety of the public. The commission shall require every 3 railroad the right-of-way of which crosses a public highway at 4 grade to cut or otherwise control the growth of brush and weeds 5 upon property owned by the railroad within 200 feet of such 6 crossing on both sides and in both directions so as to insure 7 proper visibility by motorists. 8 (c) Mandatory relocation, alteration, suspension or 9 abolition.--Upon its own motion or upon complaint, the 10 commission shall have exclusive power after hearing, upon notice 11 to all parties in interest, including the owners of adjacent 12 property, to order any such crossing heretofore or hereafter 13 constructed to be relocated or altered, or to be suspended or 14 abolished upon such reasonable terms and conditions as shall be 15 prescribed by the commission. In determining the plans and 16 specifications for any such crossing, the commission may lay 17 out, establish, and open such new highways as, in its opinion, 18 may be necessary to connect such crossing with any existing 19 highway, or make such crossing more available to public use; and 20 may abandon or vacate such highways or portions of highways as, 21 in the opinion of the commission, may be rendered unnecessary 22 for public use by the construction, relocation, or abandonment 23 of any of such crossings. The commission may order the work of 24 construction, relocation, alteration, protection, suspension or 25 abolition of any crossing aforesaid to be performed in whole or 26 in part by any public utility or municipal corporation concerned 27 or by the Commonwealth. 28 (d) Procedure for appropriation of property.--When any real 29 property is appropriated by the commission under this section, 30 each parcel of such property so appropriated, shall be 19770H0489B0533 - 124 -
1 accurately described by metes and bounds, and the record owner 2 of each such parcel shall be named in the order of 3 appropriation. Unless otherwise recorded, the commission shall 4 file with the recorder of deeds of the proper county, a copy of 5 that portion of the order of the commission which appropriates 6 such property, and such plans and other detailed information as 7 the commission may deem necessary. Such portion of the 8 commission's order dealing with the specific property 9 appropriated shall be recorded and indexed under the name or 10 names of the record owners of such specific property at the 11 expense of the utility or utilities, political subdivision, 12 municipality or municipalities, governmental agency, including 13 the Department of Transportation and Public Utility Commission, 14 corporation or persons upon whose instigation, petition or 15 complaint and said crossing was constructed, reconstructed, 16 relocated, altered, suspended or abolished, as may be ordered, 17 to bear such expense or recording by the commission. 18 (e) Reactivation.--The commission may, within its discretion 19 upon petition by any railroad, the Commonwealth, a political 20 subdivision or any other affected party by order reactivate any 21 crossing suspended under this section. 22 (f) Danger to safety.--Upon the commission's finding of an 23 immediate danger to the safety and welfare of the public at any 24 such crossing, the commission shall order the crossing to be 25 immediately altered, improved, or suspended. Thereafter hearing 26 shall be held and costs shall be allocated in the manner 27 prescribed in this part. 28 (g) Suspensions.--Any order of suspension under this section 29 shall require the following for the protection of the motoring 30 public: 19770H0489B0533 - 125 -
1 (1) Removal or covering of crossing warning devices. 2 (2) (i) Paving over the tracks; 3 (ii) removal of the tracks and paving over of the 4 area formerly occupied by said tracks; or 5 (iii) barricading the crossing. 6 § 2703. Ejectment in crossing cases. 7 When any real property is appropriated by the commission in 8 connection with a crossing improvement under this part, the 9 commission may direct the removal of all structures within the 10 lines of such appropriation. In any case where any such order 11 has been or shall be made, the court of common pleas of the 12 county wherein the property appropriated shall be situate, may, 13 upon petition by the commission, the Department of 14 Transportation or the county commissioners, issue a writ or 15 writs of possession. The petition shall be served upon the 16 parties named therein and such other parties as the court may 17 direct. If no answer is filed, or if an answer is filed, and 18 after such hearing as the court shall direct, it shall deem the 19 same to be insufficient, the court shall, upon motion, direct 20 such writ to issue, and shall order and direct the sheriff to 21 execute such writ and deliver possession to the Commonwealth or 22 the county, as the case may be. Such procedure shall not be 23 considered as in derogation of, or in any manner affecting, any 24 other powers or procedure possessed by the Commonwealth or 25 county in such cases. No bond or other form of security shall be 26 required to be filed by the Commonwealth or the county. 27 § 2704. Compensation for damages occasioned by construction, 28 relocation or abolition of crossings. 29 (a) General rule.--The compensation for damages which the 30 owners of adjacent property taken, injured, or destroyed may 19770H0489B0533 - 126 -
1 sustain in the construction, relocation, alteration, protection, 2 or abolition of any crossing under the provisions of this part, 3 shall, after due notice and hearing, be ascertained and 4 determined by the commission. Such compensation, as well as the 5 cost of construction, relocation, alteration, protection, or 6 abolition of such crossing, and of facilities at or adjacent to 7 such crossing which are used in any kind of public utility 8 service, shall be borne and paid, as provided in this section, 9 by the public utilities or municipal corporations concerned, or 10 by the Commonwealth, in such proper proportions as the 11 commission may, after due notice and hearing, determine, unless 12 such proportions are mutually agreed upon and paid by the 13 interested parties. 14 (b) Judicial review.--Any party to the proceeding 15 dissatisfied with the determination of the commission may appeal 16 therefrom, as provided by law, and for this purpose is hereby 17 authorized to sue the Commonwealth. The commission may, of its 18 own motion, or upon application of any party in interest, submit 19 to the court of common pleas of the county wherein the property 20 affected is located, the determination of the amount of damages 21 to any property owner due to such condemnation, for which 22 purpose such court shall appoint viewers, from whose award of 23 damages an appeal to said court shall lie on the part of any 24 person or party aggrieved thereby, under the general law 25 applicable to the appointment of viewers, for the ascertainment 26 of damages due to the condemnation of private property for 27 public use. 28 (c) Payment of compensation.--The amount of damages or 29 compensation determined and awarded to be paid the owners of 30 adjacent property by the Commonwealth shall, in each instance, 19770H0489B0533 - 127 -
1 be paid by the State Treasurer, on a warrant drawn by the State 2 Treasurer, upon the presentation to that officer of a statement 3 setting forth the amount determined to be paid as aforesaid, 4 duly certified by the commission; such payment to be paid out of 5 any funds specifically appropriated for the improvement of the 6 roads or highways of this Commonwealth; and in case of a verdict 7 and judgment thereon for the damages or compensation, recorded 8 by any such adjacent property owners upon appeal, the same shall 9 be paid out of any funds appropriated as aforesaid; and any 10 court of common pleas hearing and determining such appeal is 11 hereby authorized and empowered to issue a writ of mandamus to 12 such commission and the State Treasurer, or either of them, as 13 the case may require, for the payment of such judgment. 14 (d) Recovery of compensation.--The commission shall have the 15 right to recover, for and on behalf of the Commonwealth, by due 16 process of law, as debts of like amount are now by law 17 recoverable, from the public utility or municipal corporation 18 concerned, in such amounts or proportions against each as may be 19 determined by the commission, as hereinbefore provided in this 20 section, the amount of the damages or compensation awarded to 21 the owners of adjacent property by the commission, or by the 22 court, and the amounts so received shall be paid into the State 23 Treasury, through the Department of Revenue, to the credit of 24 the Motor License Fund. 25 § 2705. Speedometers. 26 (a) General rule.--No railroad locomotive shall be operated 27 in excess of 30 miles per hour in this Commonwealth without a 28 speedometer and speed recorder functioning correctly within four 29 miles per hour within the view of the engineer or operator of 30 such locomotive. 19770H0489B0533 - 128 -
1 (b) Locomotives used exclusively within yard limits.-- 2 Locomotives operated or used exclusively within designated yard 3 limits in switching or transfer service need not be equipped in 4 accordance with the provisions of this section. 5 (c) Notification of compliance.--Each railroad shall notify 6 the commission of the date that each such locomotive comes into 7 compliance with the provisions of this section. The notification 8 shall state the serial number or other identification of the 9 locomotive. 10 (d) Schedule of regulated locomotives.--Each railroad 11 affected by the provisions of this section shall maintain at a 12 designated location a list or schedule of the locomotives 13 referred to in this section. It shall set forth, along with 14 other information, the date that the speedometer and speed 15 recorder referred to in subsection (a) was calibrated and found 16 to be functioning in accordance with the provisions of this 17 section. It shall advise the commission as to such location. 18 (e) Enforcement.--The commission shall enforce the 19 provisions of this section and may issue such order or orders as 20 may be proper to require compliance therewith. 21 § 2706. Flag protection. 22 (a) General rule.--All railroads operating in this 23 Commonwealth shall promulgate and maintain appropriate operating 24 rules and special instructions for the government of their 25 respective employees in conformity with the following: 26 (1) When a train stops under circumstances in which it 27 may be overtaken by another train, a member of the crew must 28 provide flagging protection by going back immediately with a 29 red flag, torpedoes and fusees by day and with a red and/or 30 white light, torpedoes and fusees by night, a sufficient 19770H0489B0533 - 129 -
1 distance to insure full protection, placing two torpedoes on 2 the rail and also, when necessary, display lighted fusees. 3 (2) When recalled and safety to the train will permit, 4 he may return. 5 (3) When conditions require, he will leave the torpedoes 6 and a lighted fusee. 7 (4) The front of the train must be protected in the same 8 way, when necessary, by a member of the crew. 9 (5) When a train is moving under circumstances in which 10 it may be overtaken by another train, a member of the crew 11 must take such action as may be necessary to insure full 12 protection. By night, or by day, when the view is obscured, 13 lighted fusees must be dropped off the moving train or 14 displayed at proper intervals. 15 (6) When day signals cannot be plainly seen, owing to 16 weather or other conditions, night signals must also be used. 17 (7) Conductors and enginemen are responsible for the 18 protection of their trains. 19 (8) When a pusher engine is assisting a train, coupled 20 behind the cabin or caboose car, and the member of the crew 21 who protects the rear-end of the train is riding in the cabin 22 or caboose car, the requirements as to the fusees will be met 23 by dropping them off between the cabin or caboose car and 24 pusher engine on the track the train is using, and not 25 between that track and an adjacent track. 26 (b) Exceptions.--Unless specific circumstances indicate to 27 the contrary, it will be presumed that trains stopping under the 28 following circumstances will not be overtaken by another train: 29 (1) Passenger trains making normal station stops. 30 (2) All trains stopping in manual block territory 19770H0489B0533 - 130 -
1 protected by absolute block. 2 (3) All trains stopping so as to be completely within 3 the limits of classification or storage yards at the usual 4 place to change crews or remove power. 5 (c) Construction of section.--For the purposes of this 6 section a "train" means a movement on which the air brakes must 7 be connected and functioning under Federal law. This section is 8 not intended to require the employment of additional employees 9 or restrict the use of crew members in any manner. 10 (d) Enforcement.--The commission shall enforce the 11 provisions of this section. 12 CHAPTER 29 13 TELEPHONE AND TELEGRAPH WIRES 14 Sec. 15 2901. Definitions. 16 2902. Private wire for gambling information prohibited. 17 2903. Written contract for private wire. 18 2904. Joint use of telephone and telegraph facilities. 19 § 2901. Definitions. 20 The following words and phrases when used in this chapter 21 shall have, unless the context clearly indicates otherwise, the 22 meanings given to them in this section: 23 "Dissemination." The act of transmitting, distributing, 24 advising, spreading, communicating, conveying or making known. 25 "Private wire." Any and all service equipment, facilities, 26 conduits, poles, wires, circuits, systems by which or by means 27 of which service is furnished for communication purposes, either 28 through the medium of telephone, telegraph, Morse, 29 teletypewriter, loudspeaker or any other means, or by which the 30 voice or electrical impulses are sent over a wire, and which 19770H0489B0533 - 131 -
1 services are contracted for or leased for service between two or 2 more points specifically designated, and are not connected to or 3 available for general telegraphic or telephonic exchange or toll 4 service, and shall include such services known as "special 5 contract leased wire service," "leased line," "private line," 6 "private system," "Morse line," "private wire," but shall not 7 include the usual and customary telephone service by which the 8 subscriber may be connected at each separate call to any other 9 telephone designated by him only through the general telephone 10 exchange system or toll service, and shall not include private 11 wires used for fire or burglar alarm purposes, nor telegraph 12 messenger call boxes and circuits used in connection therewith, 13 time clock circuits used for furnishing correct time service, 14 nor telegraph teleprinters when these teleprinters terminate in 15 the telegraph companies' offices and are not directly connected 16 between two customers. 17 "Public utility." A person, partnership, association or 18 corporation, now or hereafter owning or operating in this 19 Commonwealth, equipment or facilities for conveying or 20 transmitting messages or communications by telephone or 21 telegraph to the public for compensation. 22 § 2902. Private wire for gambling information prohibited. 23 (a) General rule.--It is unlawful for any public utility 24 knowingly to furnish to any person any private wire for use or 25 intended for use in the dissemination of information in 26 furtherance of gambling or for gambling purposes. Any contract 27 shall constitute prima facie evidence that such private wire 28 will be used in furtherance of gambling or for gambling purposes 29 if it shall appear in such contract, or otherwise, that such 30 private wire will be used, is intended to be used or has been 19770H0489B0533 - 132 -
1 used for the dissemination of information pertaining to any 2 horse-racing, race track, race horse, betting, betting odds or 3 any information relative thereto. 4 (b) Burden of proof.--In any proceeding before the 5 commission under this chapter and in any hearing or proceeding 6 on appeal, the burden of proof shall be on the public utility 7 and the person contracting for such private wire to show that 8 the private wire has not been used, or is not being used, or is 9 not intended for use in the furtherance of gambling or for 10 gambling purposes. 11 § 2903. Written contract for private wire. 12 (a) General rule.--It is unlawful for any public utility to 13 furnish to any person any private wire, except in pursuance of a 14 written contract signed by the public utility, by the person 15 contracting for said private wire and responsible under the 16 terms of the contract for the payment for the service, and by 17 the person in possession or control of any place or location 18 designated in the contract for installation or connection of 19 said private wire, which contract shall include a detailed 20 written statement of the purpose for which such private wire is 21 intended to be used. 22 (b) Exceptions.--This section does not apply to: 23 (1) The furnishing of any private wire in case of public 24 emergency, or where the furnishing of the said private wire 25 is for a temporary purpose not to exceed 48 hours. 26 (2) Any private wire furnished for use in radio 27 broadcasting, or to any private wire furnished for use by any 28 protective service operating under a franchise granted by any 29 municipality, or to any private wire furnished for use in 30 interstate commerce, or to any private wire furnished for use 19770H0489B0533 - 133 -
1 of newspapers of general circulation. 2 (c) Action by commission.--It is unlawful for any public 3 utility to furnish to any person any private wire without first 4 furnishing to the commission a duplicate original of the written 5 contract required by this section. The commission shall examine 6 the same forthwith and conduct such investigation as it may deem 7 necessary, and, if upon examination of the contract, or after 8 investigation, or otherwise at any time, the commission shall 9 find that the said private wire is intended for or has been used 10 for or is being used for the transmission of information or 11 advice in furtherance of gambling, the commission shall 12 disapprove the said contract and give notice of such disapproval 13 to the contracting parties. Thereafter it shall be unlawful for 14 any public utility to furnish the said private wire provided for 15 in the said contract. This subsection does not apply to the 16 furnishing of any private wire in case of public emergency, or 17 where the furnishing of the said private wire is for a temporary 18 purpose not to exceed 48 hours. 19 (d) Hearing.--Any public utility or other person party to 20 the contract who shall feel aggrieved at the action of the 21 commission in disapproving any contract for any private wire 22 shall be entitled to a hearing before the commission upon 23 written request. 24 (e) Illegal use.--It is unlawful for any person, who has 25 been furnished a private wire by any public utility in 26 accordance with the provisions of this chapter, to use such 27 private wire for any purpose other than that specified in the 28 contract. 29 § 2904. Joint use of telephone and telegraph facilities. 30 (a) Through lines for continuous service.--The commission 19770H0489B0533 - 134 -
1 may, upon complaint or upon its own motion, after reasonable 2 notice and hearing, by order, require any two or more public 3 utilities, whose lines or wires form a continuous line of 4 communication, or could be made to do so by the construction and 5 maintenance of suitable connections or the joint use of 6 facilities, or the transfer of messages at common points, 7 between different localities which cannot be communicated with, 8 or reached by, the lines of either public utility alone, where 9 such service is not already established or provided, to 10 establish and maintain through lines within this Commonwealth 11 between two or more such localities. The rate for such service 12 shall be just and reasonable and the commission shall have power 13 to establish the same, and declare the portion thereof to which 14 each company affected thereby is entitled and the manner in 15 which the same must be secured and paid. All facilities 16 necessary to establish such service shall be constructed and 17 maintained in such manner and under such rules, with such 18 division of expense and labor, as may be required by the 19 commission. 20 (b) Trunk line connections.--The commission may, upon 21 complaint or upon its own motion, after reasonable notice and 22 hearing, by order, require any one or more public utilities to 23 connect their facilities, through the medium of suitable trunk 24 lines, with such manual or automatic inter-communicating 25 telephone or telegraph systems as may be wholly owned or leased 26 by such public utilities, or by any other person or corporation. 27 Rates for such trunk line connections and service shall be in 28 accordance with tariffs filed with and approved by the 29 commission. 30 SUBPART E 19770H0489B0533 - 135 -
1 MISCELLANEOUS PROVISIONS 2 Chapter 3 31. Foreign Trade Zones 4 33. Violations and Penalties 5 CHAPTER 31 6 FOREIGN TRADE ZONES 7 Sec. 8 3101. Operation as a public utility. 9 3102. Establishment by private corporations and municipalities. 10 3103. Formation and authority of private corporations. 11 3104. Municipalities and corporations to comply with law; 12 forfeiture of rights. 13 3105. Reports to Department of Community Affairs. 14 § 3101. Operation as public utility. 15 Each foreign trade zone established and maintained within the 16 limits of this Commonwealth as set forth in this chapter shall 17 be operated as a public utility, and all rates and charges for 18 all services or privileges within the zone shall be fair and 19 reasonable, but no such rates or charges shall be subject to 20 supervision, regulation or control by the commission. Every 21 municipality and private corporation operating and maintaining a 22 foreign trade zone shall afford to all who may apply for the use 23 of the trade zone and its facilities and appurtenances, uniform 24 treatment under like conditions, subject to such treaties or 25 commercial conventions as are now in force or may hereafter be 26 made from time to time by the United States with foreign 27 governments. 28 § 3102. Establishment by private corporations and 29 municipalities. 30 Any private corporation formed in this Commonwealth for the 19770H0489B0533 - 136 -
1 purposes expressed in this part and any municipality of this 2 Commonwealth, is hereby authorized to make application in 3 accordance with the provisions of the act of Congress of the 4 United States, approved June 18, 1934, entitled "An act to 5 provide for the establishment, operation, and maintenance of 6 foreign trade zones in ports of entry of the United States; to 7 expedite and encourage foreign commerce, and for other 8 purposes," (Public Act No. 397, 73rd Congress), referred to in 9 this chapter as "the act of Congress"; to the board consisting 10 of the Secretary of Commerce, the Secretary of the Treasury, and 11 the Secretary of War, thereby established, referred to in this 12 chapter as "the board"; for the privilege of establishing, 13 operating, and maintaining a foreign trade zone in, or adjacent 14 to, any port of entry under the jurisdiction of the United 15 States in order to expedite and encourage foreign commerce. If, 16 and when, such application is granted, the grantee shall have 17 power to establish, operate, and maintain such foreign trade 18 zone. Any foreign trade zone established by a municipality may 19 be operated and maintained only within the limits of such 20 municipality, or adjacent thereto. Any such foreign trade zone 21 shall be established, operated, and maintained by a municipality 22 or private corporation in accordance with the provisions of the 23 act of Congress. 24 § 3103. Formation and authority of private corporations. 25 Any such private corporation desiring to engage in the 26 business set forth in this chapter shall be formed as a business 27 corporation under the act of May 5, 1933 (P.L.364, No.106), 28 known as the "Business Corporation Law," and shall have all the 29 powers, rights and privileges, and be subject to all the 30 restrictions and limitations provided by the "Business 19770H0489B0533 - 137 -
1 Corporation Law." 2 § 3104. Municipalities and corporations to comply with law; 3 forfeiture of rights. 4 Each municipality and private corporation establishing, 5 operating, and maintaining a foreign trade zone shall fully 6 comply with all of the provisions of the act of Congress and the 7 rules and regulations prescribed by the board thereunder, and 8 shall have all the powers, rights, privileges, and authority 9 conferred by the act of Congress and said rules and regulations, 10 and be subject to the limitations and restrictions contained in 11 said act and said rules and regulations. Any such municipality 12 or private corporation shall forfeit any right and privilege to 13 operate and maintain a foreign trade zone, under the provisions 14 of this part or under the charter of any private corporation 15 formed as aforesaid, if, and when, its grant of privilege is 16 finally revoked under the authority granted in the act of 17 Congress. 18 § 3105. Reports to Department of Community Affairs. 19 Each municipality and private corporation operating a foreign 20 trade zone within the limits of this Commonwealth shall file a 21 copy of every report which it shall make, or be required to 22 make, under the act of Congress with the Department of Community 23 Affairs. 24 CHAPTER 33 25 VIOLATIONS AND PENALTIES 26 Sec. 27 3301. Civil penalties for violations. 28 3302. Criminal penalties for violations. 29 3303. Nonliability for enforcement of lawful tariffs and rates. 30 3304. Unlawful issuance and assumption of securities. 19770H0489B0533 - 138 -
1 3305. Misapplication of proceeds of securities. 2 3306. Execution of unlawful contracts. 3 3307. Refusal to obey subpoena and testify. 4 3308. Concealment of witnesses and records. 5 3309. Liability for damages occasioned by unlawful acts. 6 3310. Unauthorized operation by carriers and brokers. 7 3311. Bribery. 8 3312. Evasion of motor carrier and broker regulations. 9 3313. Excessive price on resale. 10 3314. Limitation of actions and cumulation of remedies. 11 3315. Disposition of fines and penalties. 12 § 3301. Civil penalties for violations. 13 (a) General rule.--If any public utility, or any other 14 person or corporation subject to this part, shall violate any of 15 the provisions of this part, or shall do any matter or thing 16 herein prohibited; or shall fail, omit, neglect, or refuse to 17 perform any duty enjoined upon it by this part; or shall fail, 18 omit, neglect or refuse to obey, observe, and comply with any 19 regulation or final direction, requirement, determination or 20 order made by the commission, or any order of the commission 21 prescribing temporary rates in any rate proceeding, or to comply 22 with any final judgment, order or decree made by any court, such 23 public utility, person or corporation for such violation, 24 omission, failure, neglect, or refusal, shall forfeit and pay to 25 the Commonwealth a sum not exceeding $1,000, to be recovered by 26 an action of assumpsit instituted in the name of the 27 Commonwealth. In construing and enforcing the provisions of this 28 section, the violation, omission, failure, neglect, or refusal 29 of any officer, agent, or employee acting for, or employed by, 30 any such public utility, person or corporation shall, in every 19770H0489B0533 - 139 -
1 case be deemed to be the violation, omission, failure, neglect, 2 or refusal of such public utility, person or corporation. 3 (b) Continuing offenses.--Each and every day's continuance 4 in the violation of any regulation or final direction, 5 requirement, determination, or order of the commission, or of 6 any order of the commission prescribing temporary rates in any 7 rate proceeding, or of any final judgment, order or decree made 8 by any court, shall be a separate and distinct offense. If any 9 interlocutory order of supersedeas, or a preliminary injunction 10 be granted, no penalties shall be incurred or collected for or 11 on account of any act, matter, or thing done in violation of 12 such final direction, requirement, determination, order, or 13 decree, so superseded or enjoined for the period of time such 14 order of supersedeas or injunction is in force. 15 (c) Gas pipeline safety violations.--Any person or 16 corporation, defined as a public utility in this part, who 17 violates any provisions of this part governing the safety of 18 pipeline or conduit facilities in the transportation of natural 19 gas, flammable gas, or gas which is toxic or corrosive, or of 20 any regulation or order issued thereunder, shall be subject to a 21 civil penalty of not to exceed $1,000 for each violation for 22 each day that the violation persists, except that the maximum 23 civil penalty shall not exceed $200,000 for any related series 24 of violations. 25 (d) Deduction from sums owing by Commonwealth.--The amount 26 of the penalty, when finally determined, may be deducted from 27 any sums owing by the Commonwealth to the person or corporation 28 charged or may be recovered in a civil action. 29 § 3302. Criminal penalties for violations. 30 Any person, including an officer, agent or employee of any 19770H0489B0533 - 140 -
1 public utility, or any corporation, who or which shall knowingly 2 fail, omit, neglect or refuse to obey, observe, and comply with 3 any regulation or final order, direction, or requirement of the 4 commission, or any order of the commission prescribing temporary 5 rates in any rate proceeding, or any final order or decree of 6 any court, or who shall knowingly procure, aid, or abet any such 7 violation, omission, failure, neglect, or refusal, shall be 8 guilty of a misdemeanor of the first degree. 9 § 3303. Nonliability for enforcement of lawful tariffs and 10 rates. 11 (a) Public utilities.--No public utility, nor any officer, 12 agent or employee thereof, shall be liable for any penalty or 13 forfeiture, or be subject to any prosecution, on account of 14 demanding, collecting, or receiving any rate for any service, or 15 for enforcing any regulation, or practice when such rate, 16 regulation, or practice is contained in a tariff properly filed 17 with the commission, and posted or published as herein provided, 18 and is applicable by the terms thereof at the time to such 19 service although such rate, regulation, method or practice may 20 be found by the commission to be unjust or unreasonable. 21 (b) Contract carrier by motor vehicle.--No contract carrier 22 by motor vehicle, nor any officer, agent or employee thereof, 23 shall be liable for any penalty or forfeiture, or be subject to 24 any prosecution on account of demanding, collecting or receiving 25 any minimum rate prescribed by the commission under the 26 provisions of this part. 27 § 3304. Unlawful issuance and assumption of securities. 28 Any individual who shall knowingly affix his name or 29 attestation to any stock certificate or other evidence of 30 equitable interest, or any bond, note, trust certificate, or 19770H0489B0533 - 141 -
1 other security issued or assumed by any public utility, or any 2 director who shall knowingly assent to the issuance or 3 assumption of any such stock certificate, or other evidence of 4 equitable interest, or any bond, note or other evidence of 5 indebtedness, or other security issued by any public utility, or 6 any director who shall knowingly assent to the issue of any such 7 certificate of stock, trust certificate, corporate bond, note, 8 or other evidence of indebtedness, or other security of any 9 public utility, in violation of any of the provisions or 10 requirements of this part, or any individual who shall knowingly 11 make or assent to any false statement in any securities 12 certificate required to be registered with the commission under 13 the provisions of Chapter 19 (relating to securities and 14 obligations) who shall by any false statements, oral or written, 15 knowingly make, procure, or seek to procure, of the commission 16 the registration of any such securities certificate, shall be 17 guilty of a misdemeanor of the first degree. 18 § 3305. Misapplication of proceeds of securities. 19 Any individual who shall knowingly make or assent to any 20 application or disposition of any stock certificate, or other 21 evidence of equitable interest, or any bond, note, trust 22 certificate, or other evidence of indebtedness, or other 23 security, or the proceeds of the sale or pledge thereof, or any 24 part thereof, in violation of any statement or contrary to any 25 purpose in relation thereto set forth or contained in any 26 securities certificate required to be registered with the 27 commission under the provisions of Chapter 19 (relating to 28 securities and obligations) who shall knowingly make or assent 29 to any false statement in any report or account to the 30 commission as to the disposition or application of the proceeds, 19770H0489B0533 - 142 -
1 or any part thereof, of any sale or pledge of any stock 2 certificate, or other evidence of equitable interest, or any 3 bond, note, trust certificate, or other evidence of 4 indebtedness, or other security, shall be guilty of a 5 misdemeanor of the first degree. 6 § 3306. Execution of unlawful contracts. 7 Any individual who shall knowingly affix his name or 8 attestation to any written contract or arrangement, or who shall 9 enter into any written contract or arrangement, or any 10 individual who shall knowingly assent to the entering into of 11 any written or verbal contract, in violation of any of the 12 provisions or requirements of this part, or any individual 13 knowingly making or assenting to any false statement in any 14 application for the approval of any contract or arrangement, the 15 approval of which is required by this part, shall be guilty of a 16 misdemeanor of the first degree. 17 § 3307. Refusal to obey subpoena and testify. 18 If any individual who shall be subpoenaed to attend before 19 the commission, or its representative, shall fail to obey the 20 command of such subpoena, or if any individual in attendance 21 before the commission, or its representative, shall refuse to be 22 sworn or to be examined, or to answer any relevant question, or 23 to produce any relevant data, book, record, paper, or document 24 when ordered so to do by the commission, or its representative, 25 such person shall be guilty of a summary offense. 26 § 3308. Concealment of witnesses and records. 27 If any individual shall absent himself from the jurisdiction 28 of this Commonwealth or conceal himself for the purpose of 29 avoiding service of a subpoena issued by the commission, or its 30 representative; or shall remove relevant data, books, records, 19770H0489B0533 - 143 -
1 papers, or other documents out of this Commonwealth for the 2 purpose of preventing their examination by the commission; or 3 shall destroy or conceal any such data, books, records, papers 4 or other documents for such purpose, he shall be adjudged guilty 5 of contempt; and any court of common pleas may impose a fine of 6 not less than $100 for each day during the continuance of such 7 refusal, neglect, concealment, or removal; and if such court 8 shall find that the neglect, refusal, or concealment, or the 9 removal or destruction of data, books, records, papers, or other 10 documents by such witness, has been occasioned by the advice or 11 consent of any party to the proceedings before the commission, 12 or in anywise aided or abetted by such party, then, in default 13 of payment of such fine by the individual in contempt, the same 14 shall be paid by such party and may be recovered from such party 15 by an action in the name of the Commonwealth, in any court of 16 common pleas, as other like fines and penalties are now by law 17 recoverable. Imprisonment for contempt shall be by commitment to 18 the county jail of the county in which such hearing is held. 19 § 3309. Liability for damages occasioned by unlawful acts. 20 (a) General rule.--If any person or corporation shall do or 21 cause to be done any act, matter, or thing prohibited or 22 declared to be unlawful by this part, or shall refuse, neglect, 23 or omit to do any act, matter, or thing enjoined or required to 24 be done by this part, such person or corporation shall be liable 25 to the person or corporation injured thereby in the full amount 26 of damages sustained in consequence thereof. The liability of 27 public utilities, contract carriers by motor vehicles, and 28 brokers for negligence, as heretofore established by statute or 29 by common law, shall not be held or construed to be altered or 30 repealed by any of the provisions of this part. 19770H0489B0533 - 144 -
1 (b) Rights of Commonwealth unaffected.--The recovery in this 2 section authorized shall in no manner affect a recovery by the 3 Commonwealth of the penalty prescribed in section 3301 (relating 4 to civil penalties for violations) for such violations of this 5 part. 6 § 3310. Unauthorized operation by carriers and brokers. 7 Any person or corporation operating as a motor carrier or as 8 a common carrier by airplane, and any operator or employee of 9 such carrier, and any person or corporation operating as a 10 broker, without a certificate of public convenience, permit or 11 license, authorizing the service performed, as required by this 12 part, shall be guilty of a summary offense, and any subsequent 13 offense by such person or corporation shall constitute a 14 misdemeanor of the third degree. 15 § 3311. Bribery. 16 Any officer, attorney, agent, or employee of any public 17 utility who offers to any commissioner, or to any person 18 appointed or employed by the commission, any office, place, 19 appointment, or position, or offers to give to any commissioner, 20 or to any person employed in the service of the commission, any 21 free pass or transportation, or any reduction in fares to which 22 the public generally is not entitled, or any free carriage of 23 property, or any present, gift, or gratuity, money, or valuable 24 thing of any kind, shall be guilty of a misdemeanor of the third 25 degree. 26 § 3312. Evasion of motor carrier and broker regulations. 27 Any person, whether carrier, shipper, consignee, or broker, 28 or any officer, employee, agent, or representative thereof, who 29 shall knowingly offer, grant, or give, or solicit, accept, or 30 receive any rebate, concession, or discrimination, in violation 19770H0489B0533 - 145 -
1 of any provision of this part with respect to motor carriers, or 2 who, by means of false statements or representations or by use 3 of false or fictitious bill, bill of lading, receipt, voucher, 4 roll, account, claim, certificate, affidavit, deposition, lease, 5 or bill of sale, or by any other means or device, shall 6 knowingly and willfully, assist, suffer or permit any person or 7 persons, natural or artificial, to obtain transportation of 8 property by motor carrier subject to this part, for less than 9 the applicable rate, fare or charge, or who shall knowingly and 10 willfully, by any such means, or otherwise seek to evade or 11 defeat regulation in this part provided for motor carriers or 12 brokers, shall be guilty of a summary offense. 13 § 3313. Excessive price on resale. 14 Any person, corporation or other entity violating the 15 provisions of section 1313 (relating to price upon resale of 16 public utility services) shall be guilty of a summary offense 17 and shall, upon conviction, be sentenced to pay a fine of $100 18 multiplied by the number of residential bills exceeding the 19 maximum prescribed in section 1313. 20 § 3314. Limitation of actions and cumulation of remedies. 21 (a) General rule.--No action for the recovery of any 22 penalties or forfeitures incurred under the provisions of this 23 part, and no prosecutions on account of any matter or thing 24 mentioned in this part, shall be maintained unless brought 25 within three years from the date at which the liability therefor 26 arose, except as otherwise provided in this part. 27 (b) Remedies and penalties cumulative.--All suits, remedies, 28 prosecutions, penalties, and forfeitures provided for, or 29 accruing under, this part, shall be cumulative. 30 § 3315. Disposition of fines and penalties. 19770H0489B0533 - 146 -
1 All fines imposed, and all penalties recovered, under the 2 provisions of this part, shall be paid to the commission, and by 3 it paid into the State Treasury, through the Department of 4 Revenue, to the credit of the General Fund. 5 PART II 6 OTHER PROVISIONS (RESERVED) 7 Section 2. Repeals.--(a) Absolute repeals.--The following 8 acts and parts of acts are repealed: 9 Section 7, act of May 5, 1832 (P.L.501, No.189), entitled "An 10 act regulating lateral Rail-Roads." 11 Sections 12 and 18, act of February 19, 1849 (P.L.79, No.76), 12 entitled "An act regulating railroad companies." 13 Act of April 15, 1851 (1852 P.L.720, No.401), entitled "An 14 act to incorporate the Susquehanna and Erie railroad company." 15 Act of December 16, 1863 (1864 P.L.1124, No.962), entitled 16 "An act in relation to feeding stock, while awaiting 17 transportation on railroads." 18 Act of April 11, 1867 (P.L.69, No.49), entitled "An act to 19 regulate the carriage of baggage by railroad companies, and to 20 prescribe the duties and obligations of carriers and passengers 21 in relation thereto." 22 Sections 10 and 11, act of April 4, 1868 (P.L.62, No.29), 23 entitled "An act to authorize the formation and regulation of 24 railroad corporations." 25 Section 2, act of June 19, 1871 (P.L.1360, No.1264), entitled 26 "An act relating to legal proceedings by or against 27 corporations." 28 Act of May 15, 1874 (P.L.178, No.109), entitled "An act to 29 enforce the sixth section of the seventeenth article of the 30 constitution of this commonwealth, providing that no president, 19770H0489B0533 - 147 -
1 director, officer, agent or employee of any railroad or canal 2 company shall be interested in the furnishing of material or 3 supplies to such company, or in the business of transportation 4 as a common carrier of freight or passengers over the works 5 owned, leased, controlled or worked by such company." 6 Act of June 15, 1874 (P.L.289, No.176), entitled "An act to 7 carry into effect section eight of article seventeen of the 8 constitution, in relation to granting free passes or passes at a 9 discount by railroad or other transportation companies." 10 Act of May 5, 1876 (P.L.116, No.87), entitled "An act 11 regulating the passenger fare and freight rates on railroads 12 operated by steam power, not exceeding fifteen miles in length." 13 Act of May 19, 1879 (P.L.71, No.80), entitled "An act to 14 repeal all local or special laws regulating or fixing the rates 15 of fare to be charged by city passenger railway companies, in 16 cities of the third class." 17 Act of June 7, 1901 (P.L.531, No.253), entitled "An act 18 relating to railroad crossings of highways, and for the 19 regulation, alteration and abolition of grade crossings, except 20 in cities of the first and second classes." 21 Act of May 4, 1905 (P.L.380, No.232), entitled "An act to 22 empower railroad companies to change the location and grade, or 23 either, of bridges and their approaches belonging to bridge 24 corporations, to accommodate the location and construction of 25 their railroad, or the changing, relocating, widening, 26 straightening, or improvement thereof." 27 Act of April 5, 1907 (P.L.59, No.52), entitled "An act to 28 regulate the maximum rate and minimum fare to be charged for 29 transportation of passengers by railroad companies, and 30 prescribing the penalty for violation thereof." 19770H0489B0533 - 148 -
1 Act of May 31, 1907 (P.L.352, No.252), entitled "An act to 2 enforce the provisions of section five, article seventeen, of 3 the Constitution of Pennsylvania, relating to the powers of 4 incorporated common carriers and the privileges of mining and 5 manufacturing companies; making the violation thereof a 6 misdemeanor, and providing a punishment for the same." 7 Act of May 31, 1907 (P.L.352, No.253), entitled "An act to 8 carry into effect the provisions of section seven, article 9 seventeen, of the Constitution of Pennsylvania, relating to 10 discriminations and preferences in charges and facilities; and 11 making the violation thereof a misdemeanor, and providing a 12 penalty for the same." 13 Act of May 31, 1907 (P.L.353, No.254), entitled "An act to 14 enforce the provisions of section four, article seventeen, of 15 the Constitution of Pennsylvania, pertaining to the 16 consolidation of parallel or competing lines of railroads, 17 canals, or other companies, and restricting the officers of such 18 companies; empowering juries to decide whether companies are 19 parallel or competing lines; and making the violation thereof a 20 misdemeanor, and providing a punishment for the same." 21 Act of May 31, 1907 (P.L.354, No.255), entitled "An act to 22 carry into effect the provisions of section three, article 23 seventeen, of the Constitution of Pennsylvania, relating to the 24 transportation of persons and property; and making the violation 25 thereof a misdemeanor, and providing a penalty for the same." 26 Act of June 1, 1907 (P.L.359, No.259), entitled "An act 27 forbidding those officers, employes, or agents of any railroad 28 company operating within this Commonwealth, who have charge, 29 directly or indirectly, of the distribution of cars to shippers 30 thereon, to own or have any interest, directly or indirectly, in 19770H0489B0533 - 149 -
1 any operated coal property, or in the stock of any mining or 2 manufacturing company, along the line of such railroad; making 3 the violation hereof a misdemeanor, and providing a punishment 4 for the same. 5 Act of June 7, 1907 (P.L.464, No.313), entitled "An act to 6 prevent discrimination by, and to regulate rates and charges for 7 carrying freight and passengers by, narrow-gage railroads within 8 the Commonwealth; and providing a remedy for the violation 9 thereof." 10 Act of June 10, 1911 (P.L.867, No.339), entitled "An act 11 fixing the width of public highways, where such highways are 12 crossed above or below grade by the tracks of any railroad, 13 except in cities and boroughs." 14 Act of July 10, 1919 (P.L.901, No.357), entitled "An act 15 supplementary to the Public Service Company Law, approved the 16 twenty-sixth day of July, Anno Domini one thousand nine hundred 17 and thirteen, giving to the Public Service Commission the power, 18 in the elimination of grade crossings, to direct the 19 construction of bridges or viaducts over, above, and across 20 railroads and railways, and, where necessary, across rivers and 21 streams; and, in order to effect said elimination, to change the 22 location to a new place or to another street or highway; and, 23 where the said bridge or viaduct is located by the commission 24 and directed to be constructed in the line of any street or 25 highway which crosses a navigable river, or a stream which has 26 been declared a public highway by act of Assembly, at a point 27 where the Commonwealth has been authorized to construct a public 28 bridge to replace a county bridge destroyed by flood or other 29 casualty, to provide for the payment by the Commonwealth of part 30 of the cost of said improvement from appropriations made to the 19770H0489B0533 - 150 -
1 Board of Commissioners of Public Grounds and Buildings, the 2 making of the contract, and the expenditure of said 3 appropriation." 4 Act of April 7, 1927 (P.L.134, No.105), entitled "An act 5 relating to such highways as are opened by the order of the 6 Public Service Commission of the Commonwealth of Pennsylvania in 7 proceedings relating to elimination of grade crossings; and 8 relating to the establishment of such roads and connecting roads 9 as State highways; and providing for their construction and 10 maintenance at the expense of the Commonwealth; and providing in 11 certain event for the opening and maintaining of said roads by 12 city, borough, incorporated town, and township authorities." 13 Section 303, act of April 9, 1929 (P.L.177, No.175), known as 14 "The Administrative Code of 1929." 15 Act of June 10, 1935 (P.L.291, No.126), entitled "An act 16 empowering private corporations hereafter formed and 17 municipalities to establish, operate, and maintain foreign-trade 18 zones in or adjacent to ports of entry of the United States in 19 accordance with the act of Congress of the United States; and 20 prescribing the powers and duties of such corporations and 21 municipalities in connection therewith." 22 Act of March 31, 1937 (P.L.160, No.43), entitled "An act 23 creating a commission to be known as the Pennsylvania Public 24 Utility Commission; defining in part the powers and duties of 25 such commission; abolishing The Public Service Commission of the 26 Commonwealth of Pennsylvania, terminating the terms of the 27 members thereof, and transferring to the Pennsylvania Public 28 Utility Commission the records, employes, property, and 29 equipment of The Public Service Commission of the Commonwealth 30 of Pennsylvania; authorizing the Pennsylvania Public Utility 19770H0489B0533 - 151 -
1 Commission to appear in and complete all pending proceedings, 2 legal or otherwise, instituted before, by or against The Public 3 Service Commission of the Commonwealth of Pennsylvania; 4 providing that all certificates of public convenience, 5 contracts, orders, and rules and regulations of the latter 6 commission shall remain effective until repealed, changed or 7 modified by the Pennsylvania Public Utility Commission, and 8 transferring and appropriating to the Pennsylvania Public 9 Utility Commission any unexpended balance of any existing 10 appropriation to The Public Service Commission of the 11 Commonwealth of Pennsylvania." 12 Act of May 28, 1937 (P.L.1053, No.286), known as the "Public 13 Utility Law." 14 Act of December 1, 1938 (Sp.Sess., P.L.111, No.45), entitled 15 "An act making illegal the furnishing of certain telephone and 16 telegraph wires and services by certain public utilities for use 17 in the dissemination of information in furtherance of gambling; 18 making it unlawful for any public utility to furnish private 19 wires, except by written contract; conferring and imposing upon 20 the Pennsylvania Public Utility Commission the power and duty to 21 disapprove all contracts for private wires used for, or intended 22 to be used for, the transmission of information or advices in 23 furtherance of gambling; making illegal the furnishing of 24 certain wires by certain public utilities after the disapproval 25 of the contract therefor by the Pennsylvania Public Utility 26 Commission; making illegal the use of certain wires for purposes 27 other than those specified in the written contract therefor; 28 imposing penalties; making the dissemination of information 29 pertaining to horse racing over certain wires prima facie 30 evidence that the same is in furtherance of gambling; 19770H0489B0533 - 152 -
1 prescribing the burden of proof in proceedings hereunder; and 2 providing for appeal." 3 Section 3(d)(11), act of August 5, 1941 (P.L.752, No.286), 4 known as the "Civil Service Act." 5 Act of June 5, 1943 (P.L.901, No.373), entitled "An act to 6 regulate persons, partnerships and corporations engaged in the 7 business of renting motor vehicles; authorizing the Public 8 Utility Commission to administer and enforce the provisions of 9 this act; and imposing penalties." 10 Act of January 5, 1972 (1971 P.L.660, No.174), entitled "An 11 act requiring certain locomotives operating over thirty miles 12 per hour to have certain equipment thereon by certain dates; 13 requiring the maintenance of certain records thereof by 14 railroads operating same, the notification of the Public Utility 15 Commission thereof, and placing certain duties on that 16 commission." 17 Act of March 28, 1972 (P.L.158, No.60), entitled "An act 18 limiting the rates at which certain entities other than public 19 utilities may resell public utility service to residential 20 consumers; and providing penalties." 21 Act of July 25, 1975 (P.L.96, No.49), entitled "An act 22 requiring speed recorders on locomotives." 23 Act of December 3, 1975 (P.L.481, No.142), entitled "An act 24 requiring that flag protection be provided against following 25 trains occupying the same track." 26 (b) Repeal as inconsistent.--Section 709, act of April 9, 27 1929 (P.L.177, No.175), known as "The Administrative Code of 28 1929," is repealed insofar as it is inconsistent with this act. 29 Section 3. Effective date.--This act shall take effect in 60 30 days except that the provisions of 66 Pa.C.S. §§ 1308 and 1310, 19770H0489B0533 - 153 -
1 insofar as they are different from the law repealed hereby, 2 shall take effect October 7, 1977. B14L523CM/19770H0489B0533 - 154 -