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.