Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 5 - Powers and Duties
Section 514 - Use of coal

(a) Upgrading capability to use coal.--The commission shall promulgate regulations which require utilities to uprate their electric power production by increasing the capability to use coal in existing coal-fueled plants where economically feasible and where the uprate is beneficial to ratepayers.
(b) Incentive for uprating.--The commission shall promulgate regulations which establish a special cost recovery and shared benefits procedure for electric utilities and their ratepayers as an incentive to implement upratings as provided in subsection (a). Nothing in this section shall permit or require the commission to establish rates or procedures which are inconsistent with any other section in this title.
(c) Cost of upgrading.--Notwithstanding section 1315 (relating to limitation on consideration of certain costs for electric utilities) and subject to regulations promulgated by the commission, the commission may allow a portion of the prudently incurred costs, determined on a per megawatt basis and not to exceed 50% of the unit's undepreciated original cost per megawatt, of uprating the capability of an existing coal-fueled plant to use coal mined in Pennsylvania to be made a part of the rate base or otherwise included in the rates charged by the utility before such uprating is completed. This subsection shall not apply unless, upon application of the affected public utility, the commission determines that the uprating would be more cost effective for the utility's ratepayers than other alternatives for meeting the utility's load and capacity requirements. Notwithstanding section 1309 (relating to rates fixed on complaint; investigation of costs of production), the commission, by regulation, shall provide for a utility to remove the costs of an uprating from its rate base and to refund any revenues collected as the result of this subsection, plus interest, which shall be the average rate of interest specified for residential mortgage lending by the Secretary of Banking in accordance with the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, during the period or periods for which the commission orders refunds, if the commission, after notice and hearings, determines that the uprating has not been completed within a reasonable time.
(May 31, 1984, P.L.370, No.74, eff. 60 days; Dec. 21, 1984, P.L.1265, No.240, eff. imd.; July 3, 1986, P.L.348, No.80, eff. 60 days)

Cross References. Section 514 is referred to in section 523 of this title.

Structure Pennsylvania Consolidated & Unconsolidated Statutes