§ 507. Contracts between public utilities and municipalities.
Except for a contract between a public utility and a municipal corporation to furnish
service at the regularly filed and published tariff rates, no contract or agreement
between any public utility and any municipal corporation shall be valid unless filed
with the Commission at least 30 days prior to its effective date. Upon notice to
the municipal authorities, and the public utility concerned, the Commission may,
prior to the effective date of such contract or agreement, institute proceedings
to determine the reasonableness, legality or any other matter affecting the validity
thereof. Upon the institution of such proceedings, such contract or agreement shall
not be effective until the Commission grants its approval thereof.
§ 508. Power of the commission to vary, reform and revise contracts.
The commission shall have power and authority to vary, reform, or revise, upon a
fair, reasonable, and equitable basis, any obligations, terms, or conditions of
any contract heretofore or hereafter entered into between any public utility and
any person, corporation, or municipal corporation, which embrace or concern a public
right, benefit, privilege, duty, or franchise, or the the grant thereof, or are
otherwise affected or concerned with the public interest and the general well-being
of this Commonwealth. Whenever the commission shall determine, after reasonable
notice and hearing, upon its own motion or upon complaint, that any such obligations,
terms, or conditions are unjust, unreasonable, inequitable, or otherwise contrary
or adverse to the public interest and the general well-being of this Commonwealth,
the commission shall determine and prescribe, by findings and order, the just, reasonable,
and equitable obligations, terms, and conditions of such contract. Such contract,
as modified by the order of the commission, shall become effective 30 days after
service of such order upon the parties to such contract.
Disclaimer: All information that appears on this
website is merely an electronic representation and is not the officially filed
information. The official documents reside in the File Room of the Public Utility
Commission in 2-North, on the second floor of the Commonwealth Keystone Building
in Harrisburg and are available for public inspection during normal business hours
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