2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 5 - Powers and Duties
521 - Retirement of electric generating units.

     § 521.  Retirement of electric generating units.
        (a)  Removal from normal operation.--No public utility shall
     discontinue an electric generating unit from normal operation
     unless it has petitioned for and obtained the approval of the
     commission. The commission may, upon its own motion or upon
     complaint, prohibit a public utility from discontinuing an
     electric generating unit from normal operation if the commission
     determines that it would be more cost effective for the
     utility's ratepayers if the unit were to remain in normal
     operation, either with or without capital additions or operating
     improvements, than if the utility were to implement its plan for
     replacing the power which the unit is, or could be made, capable
     of producing.
        (b)  Return to normal operation.--The commission may, upon
     its own motion or upon complaint, order a public utility to
     return an electric generating unit to normal operation if the
     commission determines that it would be more cost effective for
     the utility's ratepayers if the unit were to be returned to
     normal operation, with or without capital additions or operating
     improvements, than if the utility were to implement its plan for
     providing the power which the unit is, or could be made, capable
     of producing.
        (c)  Procedure.--The commission may hold such hearings as it
     deems necessary in making the determinations required by
     subsection (a) or (b). The affected public utility shall have
     the burden of proof in any proceeding pursuant to this section.
        (d)  Regulations.--The commission may adopt such regulations
     as it deems necessary to carry out its powers and duties under
     this section.
        (e)  Exclusion.--This section shall not apply to a nuclear
     generating unit or to variations in operation of electric
     generating units to satisfy economic dispatch requirements or to
     maintain intrasystem or intersystem stability.
        (f)  Construction costs.--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 of capital additions, determined on a
     per megawatt basis and not to exceed 50% of the unit's
     undepreciated original cost per megawatt, to an electric
     generating unit to be made a part of the rate base or otherwise
     included in the rates charged by the utility before such capital
     additions are completed if the commission, acting pursuant to
     subsection (a) or (b), prohibits the utility from retiring the
     unit or orders the utility to return the unit to normal
     operation, provided that:
            (1)  the capital additions would allow the continued or
        increased use of coal mined in Pennsylvania; and
            (2)  the capital additions 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 capital additions 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 hearing, determines that the
     capital addition has not been completed within a reasonable
     time.
        (g)  Definition.--As used in this section the term "normal
     operation" means the continuing availability of an electric
     generating unit to meet consumer demand except during:
            (1)  Scheduled outages for repairs, tests or other
        procedures essential to the unit's further use.
            (2)  Unscheduled outages caused by the unit's physical
        malfunctioning or breakdown.
            (3)  Reduced levels of generation pending execution of
        repairs.
            (4)  Reduced levels or complete cessation of generation,
        on a temporary basis, because of disruptions in fuel
        supplies, waste disposal or cooling water; or because of
        compliance with environmental protection limitations or
        conservation of fuel during periods of, or in anticipation
        of, scarcity.
     (July 3, 1986, P.L.348, No.80, eff. 60 days)

        1986 Amendment.  Act 80 added section 521.