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PA Bulletin, Doc. No. 96-959

PROPOSED RULEMAKING

PENNSYLVANIA PUBLIC UTILITY COMMISSION

[L-00960116]

[52 PA. CODE CH. 59]

Meter Tests

[26 Pa.B. 2805]

   The Pennsylvania Public Utility Commission (Commission) adopted a proposed rulemaking to modify regulations of gas meter tests pursuant to petitions filed by the Pennsylvania Gas Association. The proposed amendment will correct a typographical error in the present regulations, increase by 4 years the time between tests of residential gas meters, and allow for two alternative testing methods. The two new methods will permit a regulated gas utility to choose to adopt a program of random testing based on a statistical sampling or a variable interval model. The contact persons are Janet M. Sloan, Assistant Counsel, Law Bureau, (717) 787-3663 and Jerry Wells, Utility Standards Supervisor, Bureau of Transportation and Safety, (717) 787-2805.

Executive Summary

   By order entered April 2, 1996, the Commission adopted a Proposed Rulemaking to Modify Regulations of [Gas] Meter Tests pursuant to petitions filed by the Pennsylvania Gas Association. The proposed amendment will correct a typographical error in the present regulations, increase by 4 years the time between tests of residential gas meters, and allow for two alternative testing methods. The two new methods will permit a regulated gas utility to choose to adopt a program of random testing based on a statistical sampling or a variable interval model.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Commission submitted a copy of this proposed amendment on May 30, 1996, to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure. In addition to submitting the proposed amendment, the Commission has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Commission in compliance with Executive Order 1996-1. A copy of this material is available to the public upon request.

   If the Legislative Committees have any objection to any portion of the proposed amendment, they will notify the Commission within 20 days of the close of the public comment period. If IRRC has any objections to any portion of the proposed amendment, it will notify the agency within 30 days after the close of the public comment period. Such notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulation, by the agency, the General Assembly and the Governor of any objections raised.

Public Meeting held
March 28, 1996

Commissioners Present:  John M. Quain, Chairperson; Lisa Crutchfield; John Hanger; David W. Rolka; and Robert K. Bloom

Proposed Rulemaking Order

By the Commission:

   This matter is before the Commission pursuant to several petitions filed by the Pennsylvania Gas Association (PGA) seeking to amend the regulation regarding meter tests at 52 Pa. Code § 59.21. After reviewing the proposed changes to the Commission's regulation, we are persuaded that the modifications would be prudent and should be considered.

   Under 52 Pa. Code § 59.21(b), PGA suggests that the regulation clearly define ''A,'' ''B'' and ''C'' as separate and distinct classes by including the word ''Class'' before each designation. We believe that it is a reasonable clarification of our regulation and we will thus propose that amendment.

   The ''Extended Test Schedule'' enumerated under 52 Pa. Code § 59.21(c) sets forth the requirements for testing Classes A, B and C meters. PGA's petition requests that the Commission extend the C meters. PGA's petition requests that the Commission extend the testing periods for Class A meters (residential) by an additional 4 years.

   Commission staff has looked into the viability of allowing an additional 4 years for its regulated gas utilities to test the Class A meters. Staff concurs with PGA's representation that testing these particular meters involves a large economic outlay for regulated utilities, mostly associated with personnel costs. Extending the time requirements for testing will probably reduce the economic costs sustained by the utilities for the Class A testing.

   The Commission is acutely aware of its duty to ensure the safety of utility service. Consequently, staff has made inquiries of various manufacturers and other experts as to the safety factor of extending meter testing by 4 years for Class A meters. It is our belief that safety would not be compromised by the longer testing periods. Therefore, we are proposing to lengthen the extended meter testing requirements for Class A meters by 4 years.

   In a separate petition, PGA points to a typographical error in our regulation at § 59.21(c)(2) for Class B meters. Under the ''Current Year's Permitted Test Period (Years)'' listing, the second number is indeed an error. PGA is correct in suggesting that the number ''6'' on the second line of that table should be ''7.'' We will correct this error through this rulemaking process.

   Finally, PGA recently submitted a third petition seeking to add two additional subsections to our meter tests regulation at 52 Pa. Code § 59.21. PGA's proposal will provide two alternative meter testing formats for Pennsylvania's gas utilities. The first subsection will allow for a statistical sampling method whereby the utility will group its meters into categories based on their technology, design, manufacture, model, and other operating characteristics. The utility would then draw a test sample of sufficient size to assure 90% statistical accuracy within a 2% range. Based on this test sample, the utility will have to either remove all the meters in this category (in the case of the test showing meter inaccuracy) or take no further action (in the case of the test showing meter accuracy).

   The second proposed alternative meter testing is a variable interval approach. Under this subsection, the retirement rate for a meter category is tied directly to that category's demonstrated level of accuracy.

   Both of the proposed alternatives have been explored within Pennsylvania by pilot programs. These programs have been successful. In addition, the proposed alternatives are similar to the protocols suggested by the American National Standards Institute (ANSI), a group that is developing National standards for meter testing. The PGA petition adopts the protocol suggested by ANSI for the variable integral alternative and for the statistical sampling alternative with the modification of tightening the allowance for the failure rate under this latter alternative. Specifically, the statistical sampling as proposed calls for 80% of the meters tested to be within the accuracy rate; the ANSI standard allows for 75% passing.

   However, the proposed rulemaking does contain several changes to PGA's proposed language in its third petition after consultation with PGA representatives. Section references to the ANSI specifications were erroneous. The corrected references have been incorporated into our proposed rulemaking. In addition, representatives from PGA agreed to change the statistical sampling section in order to clarify the proposal.

   After careful review of our pilot programs' results and with consideration to the efficiency of adopting National standards, we are persuaded that including these alternatives is economically sound and safety conscious. Accordingly, pursuant to sections 501, 1501 and 1504 of the Public Utility Code (66 Pa.C.S. §§ 501, 1501 and 1504) and the Commonwealth Documents Law and the regulations promulgated thereunder, we institute a rulemaking proceeding.

Therefore, It Is Ordered That:

   1.  A rulemaking proceeding is hereby instituted at this docket.

   2.  The Commission's regulations are thereby proposed to be amended as per the Annex A attached to this order.

   3.  The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to legality.

   4.  The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.

   5.  The Secretary shall submit this order and Annex A for informal review by the designated standing committees of both houses of the General Assembly, and for informal review and approval to the Independent Regulatory Review Commission.

   6.  That the Secretary shall deposit this order and Annex A with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin. Interested persons may submit written comments, an original and 10 copies, to John G. Alford, Secretary, Pennsylvania Public Utility Commission, and shall have 30 days from the date this order is published to submit comments.

JOHN G. ALFORD,   
Secretary

   (Editor's Note:  A proposal to amend § 59.21, proposed to be amended in this document, remains outstanding at 26 Pa.B. 1370 (March 30, 1996).)

   Fiscal Note:  57-152. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 52.  PUBLIC UTILITIES

PART I.  PUBLIC UTILITY COMMISSION

Subpart C.  FIXED UTILITY SERVICES

CHAPTER 59.  GAS SERVICE

SERVICE AND FACILITIES

§ 59.21.  Meter tests.

*      *      *      *      *

   (b)  Standard test schedule for Class A, Class B and Class C Meters. Unless otherwise provided by this section, each public utility shall make and record tests of Class A, Class B and Class C meters on the following schedule:

*      *      *      *      *

   (c)  Extended test schedule for Class A, Class B and Class C meters. Extended schedules shall conform with the following:

   (1)  A public utility may depart from the requirements of subsection (b) as to Class A, Class B or Class C meters in a year, and in lieu thereof make and record tests of the class of meters under the schedule prescribed therefor in paragraph (2), if [all of] the following qualifications are met:

*      *      *      *      *

   (2)  Subject to the qualifications prescribed in paragraph (1), a public utility may make and record tests of Class A, Class B or Class C meters on the following schedule:

Next Preceding Year            2d Preceding Years            Current Year's
Slow MeterFast MeterSlow MeterFast MeterPermitted Test
Ratio (%)Ratio (%)Ratio (%)Ratio (%)Period (Years)
CLASS A METERS
10101212[10] 14
  8  81010[12] 16
  6  6  8  8[14] 18
  4  4  6  6[16] 20
CLASS B METERS
101012126
  8  81010[6] 7
  6  6  8  88
  4  4  6  610

*      *      *      *      *


   (d)  Statistical sampling. A public utility may depart from the requirements of subsections (b), (c) or (e) as to Class A, Class B or Class C meters, and instead make and record tests of the Class A, Class B or Class C meters under a statistical sampling program, if the following qualifications are met:

   (1)  The composition and description of each group of meters shall be fully described in the annual report to the Commission.

   (2)  Sufficient meters shall be tested annually to insure a 90% confidence level that the meter groups are performing within prescribed limits.

   (3)  For a group to remain in service, at least 80% of the meters in the sample test shall meet the accuracy limits of 98% average accuracy (2% slow) and 102% average accuracy (2% fast). If a group of meters does not meet the performance standards, corrective action shall be taken. The corrective action may consist of removing the entire group from service within 4 years or, if the group consists of one or more subgroups, implementing a selective meter removal program to improve the accuracy of the group to within acceptable limits. The selective removal program may be as follows:

   (i)  If test results indicate that one or more subgroups do not meet the performance standards, the subgroup shall be identified and removed within 4 years.

   (ii)  Once identified as a group or subgroup not meeting the performance standards and during the removal process, that group or subgroup shall be eliminated from the sampling plan.

   (4)  The statistical sampling schedule shall be in accordance with the provisions of ANSI B109.1 Part IV Sec. 4.3.2.1 or its successor.

   (5)  A utility electing the statistical sampling program shall remain on that program for a minimum of 4 years and shall remove groups or subgroups of meters scheduled for removal within the 4-year requirement.

   (e)  Variable interval. A public utility may depart from the requirements of subsection (b), (c) or (d), as to Class A, Class B or Class C meters, and instead make and record tests of the Class A, Class B or Class C meters under a variable interval program, if the following qualifications are met:

   (1)  The composition and description of each group of meters shall be fully described in the annual report to the Commission and shall be in accordance with ANSI Spec. B109.1 Part IV Sec. 4.3.2.2 or its successor.

   (2)  The number of meters to be removed in any year will be determined from the test results of the next preceding year's incoming meters.

   (3)  Except as provided in paragraphs (4) and (5), the ratio (r) of the number of meters in a test group to be removed to those in service in that test group shall be determined by the formula (r = .02 + .3d) where (d) is the ratio of meters which have an average accuracy of less than 98% or more than 102% as reported to the nearest 1/2%.

   (4)  Meters removed in a test group in excess of the ratio (r) as described in paragraph (3) shall be credited towards the ratio (r) for a better performing test group.

   (5)  A utility may apply to the Commission for an Accelerated Retirement Program (ARP) for a specific meter type that the utility may desire to purge from its system. Meters removed in an ARP in excess of the ratio (r) as described in paragraph (3) may be credited towards the ratio (r) for any other test group regardless of performance.

   (6)  A utility electing the variable interval plan shall remain on that plan for 4 years.

   [(d)] (f)  ***

   [(e)] (g)  ***

   [(f)] (h)  ***

   [(g)] (i)  ***

   [(h)] (j)  ***

   [(i)] (k)  ***

   [(j)] (l)  ***

   [(k)] (m)  ***

   [(l)] (n)  ***

   [(m)] (o)  ***

[Pa.B. Doc. No. 96-959. Filed for public inspection June 14, 1996, 9:00 a.m.]



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