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Infrastructure Repair Funding Topic Of House Consumer Affairs Committee Hearing
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The House Consumer Affairs Committee this week held a hearing on House Bill 1294 (Godshall-R-Montgomery) which would authorize the Public Utility Commission to establish a distribution system improvement charge (DSIC) as an alternative to a regular rate cases to recover costs associated with replacing pipelines and other infrastructure for all public utilities-- electric, natural gas, water and wastewater companies.
Robert Powelson, Chair of the PUC, offered strong support for the legislation which he said was needed to help upgrade the state's aging natural gas and utility distribution infrastructure. He pointed to the success water distribution companies were having with a similar DSIC system. Kimberly Joyce, Manager of Regulatory Affairs and Rate Counsel for Aqua America, outlined the benefits and the track record of water companies in using the DSIC system to recover their infrastructure replacement costs. She also pointed to a provision in the bill that would allow owners of drinking water and wastewater systems in the same community to consolidate revenue in rate making cases to help lower overall costs for consumers.
Kathy Pape, President and CEO of PA American Water, supported the DSIC system saying using the process has speeded up much needed replacements of water infrastructure.
Terrance Fitzpatrick, President and CEO of the Energy Association of PA, said DSIC would benefit the public interest by allowing more prompt recovery of costs incurred by natural gas utilities and electric systems so they could modernize their systems.
David DeCampli, President PPL Electric Utilities, said a DSIC system would allow utilities to upgrade their electric distribution systems.
Sonny Popowsky, PA Consumer Advocate, expressed opposition to the proposed legislation saying the bill would eliminate many of the statutory rate making requirements protecting Pennsylvania's utility customers.
Also providing comments were Fred Eichenmiller, Duquesne Light Company; Nancy Krajovic, Columbia Gas; Morgan O'Brien, Peoples Natural Gas; Stephen Hershey, Philadelphia Gas Works; the National Association of Water Companies-PA Chapter; and the Utility Law Project.
Rep. Robert Godshall (R-Montgomery) serves as Majority Chair and Rep. Joseph Preston (D-Allegheny) serves as Minority Chair.
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5/2/2011 |
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