Pennsylvania § 517 - Conversion of electric generating units fueled by oil or natural gas.

§ 517. Conversion of electric generating units fueled by oil or natural gas.

(a) Order by commission.--Whenever the commission determines that conversion of an oil or a natural gas-fueled electric generating unit to coal, a synthetic derived in whole or in part from coal or a mixture which includes coal or is derived in whole or in part from coal is economically and technologically feasible, the commission shall issue an order to the affected public utility to show cause why the commission should not order the conversion of that unit. The commission shall subsequently issue an order requiring the conversion of that unit unless the affected public utility proves, and the commission finds, any of the following:

(1) Conversion of the unit is not technologically feasible.

(2) The unit, if converted, could not be operated in compliance with present and reasonably anticipated environmental laws and regulations.

(3) There is a strong probability that the conversion and subsequent operation of the converted unit would be more costly to ratepayers over the remaining useful life of the converted unit than would continued operation as an oil or a natural gas-fueled unit.

(b) Environmental questions.--The commission may certify, to the Department of Environmental Resources, any question regarding the applicability of environmental laws and regulations, when the question arises in a proceeding under this section, and may incorporate the department's findings in its decision.

(c) Mixture with oil or natural gas.--For purposes of this section, the phrase "mixture which includes coal or is derived in whole or in part from coal" includes, but is not limited to, both the intermittent and the simultaneous burning of oil or natural gas with coal or a coal derivative if the intermittent or simultaneous burning of oil or natural gas would:

(1) lower the cost, to the ratepayers, of using coal or a coal derivative; or

(2) enable coal or a coal derivative to be burned in compliance with present and reasonably anticipated environmental laws and regulations.

(d) Recovery of conversion costs.--Notwithstanding any other provision of this title, if the commission, acting pursuant to this section, issues an order requiring the conversion of an oil or a natural gas-fueled unit, the affected utility shall be permitted to recover all reasonable and prudent costs associated with the conversion even if the conversion or continued operation of the converted unit is ultimately prevented by factors beyond the utility's control. The affected utility shall be permitted to include in its rate base, or otherwise in its rates during construction, such reasonable and prudent costs of construction associated with the conversion.

(e) Availability of funds.--(Repealed).

(Dec. 21, 1984, P.L.1240, No.234, eff. imd.; Dec. 21, 1984, P.L.1270, No.241, eff. imd.; July 3, 1986, P.L.348, No.80, eff. 60 days; July 10, 1986, P.L.1238, No.114, eff. imd.)

1986 Repeals. Act 80 repealed subsec. (e) and Act 114 repealed subsec. (e).

1984 Amendments. Acts 234 and 241 added section 517. The amendments by Acts 234 and 241 are identical and therefore have been merged.

References in Text. The Department of Environmental Resources, referred to in subsec. (b), was abolished by Act 18 of 1995. Its functions were transferred to the Department of Conservation and Natural Resources and the Department of Environmental Protection.