On Aug. 20, the Pennsylvania Supreme Court invalidated a municipal ordinance that imposed additional controls on state-regulated public utilities for use of the municipality’s rights-of-way, in PPL Electric Utilities v. City of Lancaster, No. 55 MAP 2017 (Pa. 2019). By way of background, the city of Lancaster enacted a local ordinance in 2013 implementing a comprehensive right-of-way management program, including granting the city certain powers to regulate public utilities and charge an annual occupancy fee. The city relied upon its authority under the Home Rule Charter and Optional Plans Law, 53 Pa.C.S. Sections 2901-3717, and the Third Class City Code, 53 P.S. Sections 35101-39701 (TCCC), for its authority to adopt the ordinance.

PPL Electric Utilities Corp. challenged the ordinance, arguing that the Public Utility Code and the regulations promulgated by the Public Utility Commission (PUC) preempted local authority. The ordinance provisions at issue were as follows:

  • Section 263B-3 of the ordinance permitted the city to inspect public utilities and confirm their compliance with the code and the PUC regulations (inspection provision).
  • Section 263-B4(6) of the ordinance permitted the city to remove, relocate or reposition utilities in the right-of-way (relocation provision).
  • Section 263D-1 of the ordinance authorized the city to impose fees for violations not in the PUC’s exclusive jurisdiction (penalties provision).
  • Section 263B-5 of the ordinance permitted the city to impose a maintenance fee on public utilities for use of the city’s rights-of-way (maintenance fee provision).

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