2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 5 - Powers and Duties
527 - Cogeneration rules and regulations.

     § 527.  Cogeneration rules and regulations.
        (a)  Availability.--The commission shall promulgate rules and
     regulations concerning the rates, terms, conditions and
     availability of cogeneration in this Commonwealth. The
     commission shall require that utility rates to the public
     reflect the costs and savings to the utility from cogeneration,
     including, but not limited to, the costs incurred by utilities
     under contracts with nonutility generating unit project
     developers for the purchase of electric capacity or energy, or
     both; the costs recoverable under subsection (b) to buy out and
     cancel unfinished nonutility generating unit projects by mutual
     agreement of the project developer and the public utility; and
     the costs prudently incurred by utilities under a voluntary
     buyout, buydown or other restructured arrangement which are just
     and reasonable and which reduce the cost to customers of
     nonutility generating unit projects.
        (b)  Recovery of cancellation costs of nonutility generating
     unit projects.--A nonutility generating unit project is a
     generating unit project that is not owned by a public utility.
     If the construction of a nonutility generating unit project for
     which a public utility has a contract, whether entered into
     voluntarily or pursuant to commission order, to purchase project
     energy or project capacity and energy is canceled by mutual
     agreement of the project developer and the public utility prior
     to the unit's completion and operation, the public utility may
     recover all costs to be paid to the project developer and all
     costs directly related thereto which are prudently incurred as a
     result of such cancellation. The burden of proof to show that
     any costs claimed were prudently incurred shall be on the public
     utility. In reviewing a claim for such costs:
            (1)  the commission shall not disallow any portion solely
        on the basis that it constitutes an amount greater than
        actual development expenditures and all costs related
        thereto; and
            (2)  the commission shall consider the amount of the
        claim compared to the utility's total estimated costs of
        obligations under the contract.
     (July 10, 1986, P.L.1238, No.114, eff. imd.; July 2, 1996,
     P.L.542, No.94, eff. imd.)

        1996 Amendment.  See the preamble and section 2 of Act 94 in
     the appendix to this title for special provisions relating to
     legislative findings and construction of act.
        Cross References.  Section 527 is referred to in sections
     2803, 2804, 2808 of this title.