PRINTER'S NO. 4007
No. 2848 Session of 1990
INTRODUCED BY TIGUE, BELARDI, STABACK, SERAFINI, CAWLEY, STISH,
JAROLIN, DIETTERICK, BLAUM AND HASAY, JULY 1, 1990
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JULY 1, 1990
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, further providing for commission
3 approval prior to public utility sale of watershed land.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 102 of Title 66 of the Pennsylvania
7 Consolidated Statutes is amended by adding a definition to read:
8 § 102. Definitions.
9 Subject to additional definitions contained in subsequent
10 provisions of this part which are applicable to specific
11 provisions of this part, the following words and phrases when
12 used in this part shall have, unless the context clearly
13 indicates otherwise, the meanings given to them in this section:
14 * * *
15 "Watershed land." Any interest in real property located
16 within the drainage area of any lake, stream, reservoir, river
17 or other body of water, or area of recharge to a groundwater
18 source, which is used, directly or indirectly, to provide
1 drinking water to the public.
2 Section 2. Title 66 is amended by adding sections to read:
3 § 529. Transfer of watershed land.
4 (a) Transfer of watershed land.--No public utility engaged
5 in the business of diverting, developing, pumping, impounding,
6 distributing, or furnishing water to or for the public for
7 compensation shall sell, lease or otherwise transfer any
8 interest in watershed land unless that public utility has
9 petitioned for and obtained the approval of the commission. The
10 commission may, upon its own motion or upon complaint, prohibit
11 the public utility from selling, leasing or otherwise
12 transferring watershed land if the commission determines that
13 the sale, lease or transfer could have an adverse effect on the
14 safety, adequacy, efficiency or reasonableness of the utility's
15 service or could increase the utility's cost of providing
16 service to its customers.
17 (b) Requirements of utility petition.--Whenever a public
18 utility files a petition seeking approval of the sale, lease or
19 other transfer of watershed land, as set forth in subsection
20 (a), the utility shall demonstrate that the sale, lease or
21 transfer will not have an adverse effect on the safety,
22 adequacy, efficiency or reasonableness of the utility's service
23 or will not increase the utility's cost of providing service to
24 its customers.
25 (c) Procedure.--
26 (1) The commission shall hold such hearings as it deems
27 necessary in making the determinations required by subsection
28 (a) or (b). In such a proceeding, the commission shall
29 determine the reasonableness of the compensation received by
30 the utility for the sale, lease or other transfer of
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1 watershed land. The affected public utility shall have the
2 burden of proof in any proceeding pursuant to this section.
3 (2) After completion of public hearings, the commission
4 shall submit its findings to the General Assembly, which
5 shall have 60 days to review the report and make
6 recommendations.
7 (d) Environmental questions.--The commission may certify to
8 the Department of Environmental Resources any questions
9 regarding the applicability of environmental laws and
10 regulations, when the question arises in a proceeding under this
11 section, and may incorporate the department's findings in its
12 decision.
13 (e) Transactions with affiliates.--In any instance where the
14 utility proposes to sell, lease or otherwise transfer watershed
15 land to an affiliated interest or the utility, as defined in
16 section 2101 (relating to definition of affiliated interest),
17 the commission shall not approve the sale, lease or transfer
18 unless the commission finds that the compensation received by
19 the utility is at least equal to the fair market value of the
20 watershed land being sold, lease or transferred.
21 (f) Regulations.--The commission may adopt such regulations
22 as it deems necessary to carry out its powers and duties under
23 this section.
24 § 1328. Recognition of proceeds of sale of watershed land.
25 (a) Accounting required.--Whenever a public utility engaged
26 in the business of diverting, developing, pumping, impounding,
27 distributing, or furnishing water to or for the public for
28 compensation sells, leases or otherwise transfers an interest in
29 watershed land, the utility shall keep a separate record of the
30 gross proceeds of the sale, lease or other transfer; the
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1 undepreciated original cost of the property; the accrued
2 depreciation of the property; and the expenses directly
3 associated with the sale, lease or other transfer of the
4 property.
5 (b) Duties of the commission.--In any proceeding in which
6 the commission determines a level of just and reasonable rates
7 for a public utility engaged in the business of diverting,
8 developing, pumping, impounding, distributing, or furnishing
9 water to or for the public for compensation, the commission
10 shall credit to ratepayers the net proceeds of the sale, lease
11 or other transfer of watershed land by the utility.
12 (c) Net proceeds defined.--For purposes of this section, the
13 term net proceeds shall mean:
14 (1) If the purchaser, lessee or transferee is an
15 affiliated interest of the utility, as defined in section
16 2101 (relating to definition of affiliated interest), the
17 greater of:
18 (A) the proceeds received from the transfer less the
19 depreciated original cost of the property less the
20 expenses directly associated with the transfer which are
21 properly allocable to the utility; or
22 (B) the fair market value of the watershed land
23 transferred less the depreciated original cost of the
24 property less the expenses directly associated with the
25 transfer which are properly allocable to the utility.
26 (2) If the purchaser, lessee or transferee is not an
27 affiliated interest of the utility, as defined in section
28 2101, the proceeds received from the transfer less the
29 depreciated original cost of the property less the utility's
30 expenses directly associated with the transfer.
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1 Section 3. This act shall take effect in 60 days.
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