2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 5 - Powers and Duties
523 - Performance factor consideration.

     § 523.  Performance factor consideration.
        (a)  Considerations.--The commission shall consider, in
     addition to all other relevant evidence of record, the
     efficiency, effectiveness and adequacy of service of each
     utility when determining just and reasonable rates under this
     title. On the basis of the commission's consideration of such
     evidence, it shall give effect to this section by making such
     adjustments to specific components of the utility's claimed cost
     of service as it may determine to be proper and appropriate. Any
     adjustment made under this section shall be made on the basis of
     specific findings upon evidence of record, which findings shall
     be set forth explicitly, together with their underlying
     rationale, in the final order of the commission.
        (b)  Fixed utilities.--As part of its duties pursuant to
     subsection (a), the commission shall set forth criteria by which
     it will evaluate future fixed utility performance and in
     assessing the performance of a fixed utility pursuant to
     subsection (a), the commission shall consider specifically the
     following:
            (1)  Management effectiveness and operating efficiency as
        measured by an audit pursuant to section 516 (relating to
        audits of certain utilities) to the extent that the audit or
        portions of the audit have been properly introduced by a
        party into the record of the proceeding in accordance with
        applicable rules of evidence and procedure.
            (2)  Action or failure to act pursuant to section 514
        (relating to use of coal) to upgrade capability to use coal
        for electric utilities.
            (3)  Efficiency and cost-effectiveness of generating
        capacity for electric utilities.
            (4)  Action or failure to act to encourage development of
        cost-effective energy supply alternatives such as
        conservation or load management, cogeneration or small power
        production for electric and gas utilities.
            (5)  Action or failure to act to encourage cost-effective
        conservation by customers of water utilities.
            (6)  Action or failure to act to contain costs of
        constructing new generating units consistent with sections
        515 (relating to construction cost of electric generating
        units) and 1308(f) (relating to voluntary changes in rates).
            (7)  Any other relevant and material evidence of
        efficiency, effectiveness and adequacy of service.
     (July 10, 1986, P.L.1238, No.114, eff. imd.)

        1986 Amendment.  Act 114 added section 523.