Pennsylvania SB 512: An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in grounds and buildings, providing for automated external defibrillator placement, inspection, maintenance and plan; in school health services, further providing for automatic external defibrillators; and, in charter schools, further providing for provisions applicable to charter schools and for applicability of other provisions of this act and of other acts and regulations.

Bill Text

PRINTER'S NO. 568
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 512
Session of
2025
INTRODUCED BY KANE, FONTANA, SCHWANK, KEARNEY, COMITTA, COSTA,
HAYWOOD, MUTH, L. WILLIAMS, SAVAL, KIM AND PISCIOTTANO,
APRIL 4, 2025
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
APRIL 4, 2025
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
repealing provisions relating to valuation of acquired water
and wastewater systems.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1329 of Title 66 of the Pennsylvania
Consolidated Statutes is repealed:
[§ 1329. Valuation of acquired water and wastewater systems.
(a) Process to establish fair market value of selling
utility.--Upon agreement by both the acquiring public utility or
entity and the selling utility, the following procedure shall be
used to determine the fair market value of the selling utility:
(1) The commission will maintain a list of utility
valuation experts from which the acquiring public utility or
entity and selling utility will choose.
(2) Two utility valuation experts shall perform two
separate appraisals of the selling utility for the purpose of
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establishing its fair market value.
(3) Each utility valuation expert shall determine fair
market value in compliance with the Uniform Standards of
Professional Appraisal Practice, employing the cost, market
and income approaches.
(4) The acquiring public utility or entity and selling
utility shall engage the services of the same licensed
engineer to conduct an assessment of the tangible assets of
the selling utility. The assessment shall be incorporated
into the appraisal under the cost approach required under
paragraph (3).
(5) Each utility valuation expert shall provide the
completed appraisal to the acquiring public utility or entity
and selling utility within 90 days of execution of the
service contract.
(b) Utility valuation experts.--
(1) The utility valuation experts required under
subsection (a) shall be selected as follows:
(i) one shall be selected by the acquiring public
utility or entity; and
(ii) one shall be selected by the selling utility.
(2) The utility valuation experts shall not:
(i) derive any material financial benefit from the
sale of the selling utility other than fees for services
rendered; or
(ii) be an immediate family member of a director,
officer or employee of either the acquiring public
utility, entity or selling utility within a 12-month
period of the date of hire to perform an appraisal.
(3) Fees paid to utility valuation experts may be
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included in the transaction and closing costs associated with
acquisition by the acquiring utility or entity. Fees eligible
for inclusion may be of an amount not exceeding 5% of the
fair market value of the selling utility or a fee approved by
the commission.
(c) Ratemaking rate base.--The following apply:
(1) The ratemaking rate base of the selling utility
shall be incorporated into the rate base of:
(i) the acquiring public utility during the
acquiring public utility's next base rate case; or
(ii) the entity in its initial tariff filing.
(2) The ratemaking rate base of the selling utility
shall be the lesser of the purchase price negotiated by the
acquiring public utility or entity and selling utility or the
fair market value of the selling utility.
(d) Acquisitions by public utility.--The following apply:
(1) If the acquiring public utility and selling utility
agree to use the process outlined in subsection (a), the
acquiring public utility shall include the following as an
attachment to its application for commission approval of the
acquisition filed pursuant to section 1102 (relating to
enumeration of acts requiring certificate):
(i) Copies of the two appraisals performed by the
utility valuation experts under subsection (a).
(ii) The purchase price of the selling utility as
agreed to by the acquiring public utility and selling
utility.
(iii) The ratemaking rate base determined pursuant
to subsection (c)(2).
(iv) The transaction and closing costs incurred by
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the acquiring public utility that will be included in its
rate base.
(v) A tariff containing a rate equal to the existing
rates of the selling utility at the time of the
acquisition and a rate stabilization plan, if applicable
to the acquisition.
(2) The commission shall issue a final order on an
application submitted under this section within six months of
the filing date of an application meeting the requirements of
subsection (d)(1).
(3) If the commission issues an order approving the
application for acquisition, the order shall include:
(i) The ratemaking rate base of the selling utility,
as deter