Thomas, Long, Niesen & Kennard Law

Highlights: PA PUC Public Session of September 28, 2006

September 28 , 2006

Note: The public meeting calendar and agendas may be viewed at http://www.puc.state.pa.us/general/public_meeting.aspx.

At the September 28, 2006, Public Meeting of the Pennsylvania Public Utility Commission (“Commission”), the Commissioners adopted Staff’s recommendations for action by a vote of 5-0 on all items listed on the Main Agenda and Carry-In Agenda, except as reflected herein below under the respective Commission agenda headings. Review of particular items addressed by the Commissioners at this Public Meeting which may be of interest to our clients and our firm are also addressed under the respective Commission agenda headings below. Any relevant motions and statements are attached to the original of this Session Memo filed in the Public Meeting Agenda and Session Memo binder. The next regular Public Meeting is scheduled for Thursday, October 19, 2006 at 10:00 a.m. The minutes of the Public Meeting of August 17, 2006 were unanimously approved without modification.

Bureau of Transportation and Safety

All matters approved as submitted.

Bureau of Conservation, Economics and Energy Planning

PPL Sustainable Energy Fund, CEP-0005*, M-00031715F0003. Letter Petition for Approval of Board Members. Staff recommends that the Commission approve the appointment of the two new board members, in accordance with the proposed Order. Vote of 5-0 with no discussion.

Office of Special Assistants

PA PUC, BTS v. WGM Transportation, Inc. (settlement agreement), OSA-0072*, A-00111651C0401. On February 7, 2006 BTS and WGM filed a Settlement Agreement in order to satisfy a Complaint filed by BTS against WGM. As part of the Settlement, WGM agreed that its taxi will have available a child passenger restraint seat, and BTS agreed to the elimination of the proposed penalty. Staff recommended that the Commission adopt the proposed Opinion and Order which rejects the proposed Opinion and Order which rejects the Settlement Agreement and returns this matter to the Parties for further negotiations or for prosecution. This matter was postponed by Commissioner Fitzpatrick until Public Meeting of October 19, 2006.

North Pittsburgh Telephone Company and Full Service Computing Corporation t/a Full Service Network, OSA-0270*, A-310204F7005. Joint Petition filed August 23, 2006, for Approval of the Adoption of an Interconnection Agreement. No comments have been received. Staff recommends that the Commission adopt the proposed Opinion and Order granting the Joint Petition. Vote of 5-0 with no discussion.

Jean Reese v. Verizon North, Inc. (request for extended local calling area), OSA-0294*, C-20043520. On August 12, 2004, Complainant filed a Formal Complaint against Verizon North requesting that the Commission order Verizon North to extend the 298 local calling area to include exchanges 769 and 799 in the Schnecksville area. By Initial Decision issued February 21, 2006, ALJ Jandebeur found that the Complainant had met her burden of showing that the polling of the 298 exchange to determine if the customers want extended area service is justified. By Opinion and Order entered June 27, 2006, the Commission modified and reversed the Initial Decision. The Complainant filed a Petition for Reconsideration on July 11, 2006, and Verizon North filed an Answer to the Petition on July 21, 2006. By Order entered July 20, 2006, reconsideration was granted pending review on the merits. Staff recommended that the Commission adopt the proposed Opinion and Order which denies the Complainant’s Petition for Reconsideration. Vote of 5-0 with no discussion.

Bureau of Fixed Utility Services

Full Service Network LP, FUS-0494*, A-311406. Application filed March 23, 2006 for approval to offer, render, furnish, or supply telecommunications services as a Competitive Local Exchange Carrier Reseller to the public in the service territories of Verizon Pennsylvania Inc. and Verizon North Inc. Staff recommends that the Commission adopt the proposed Order granting the Application. Vote of 5-0 with no discussion.

Vanco Direct USA, LLC, FUS-1355*, S-00061140. Securities Certificate filed June 7, 2006 in respect of a guarantee of indebtedness of its parent company, Vanco Plc. Staff recommends that the Commission adopt the proposed Order affirming registration of the Securities Certificate and fining Vanco Direct $1,000 for not filing for registration until 15 days after the financing transaction had been finalized. Vote of 3-2 (Commissioners Fitzpatrick and Pizzingrilli dissenting.)

Combined Bureau Agenda

West Hickory Water Company, FUS-0856*, OTS-0020R, R-00061558. Supplement No. 4 to Tariff Water-Pa. P.U.C. No. 3, filed July 10, 2006, proposing an annual increase in rates of $10,677, voluntarily postponed to become effective September 29, 2006. FUS recommends that the Respondent be given the alternative of filing a revised Supplement which contains proposed changes in rates calculated to produce additional annual revenues of approximately $10,422; or should Respondent not elect to file such a Supplement, the Commission will institute an Investigation; suspend the filing until April 29, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an Investigation and suspend the filing until April 27, 2007. Motion of Chairman Holland to adopt the FUS recommendation and reject the OTS recommendation. Vote of 5-0 with no further discussion.

Venango Water Company, FUS-0859*, OTS-0018, R-00061560. Supplement No. 15 to Tariff Water-Pa. P.U.C. No. 3, filed July 10, 2006, voluntarily postponed to become effective September 29, 2006, proposing an annual increase in rates of $33,217. FUS recommends that the Respondent be given the alternative of filing a revised Supplement which contains proposed changes in rates calculated to produce additional annual revenues of approximately $30,288; or should Respondent not elect to file such a Supplement the Commission will institute an Investigation; suspend the Tariff until April 29, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an Investigation and suspend the Tariff until April 29, 2007. Motion of Chairman Holland to adopt the FUS recommendation and reject the OTS recommendation. Vote of 5-0 with no further discussion.

Factoryville Bunker Will Water Co., FUS-0862*, OTS-0023, R-00061682. Tariff Water-Pa. P.U.C. No. 3, filed July 24, 2006, proposing an annual increase in rates of $1,909, to become effective October 1, 2006. Formal Complaints have been filed. FUS recommends that the Commission institute an Investigation; suspend the Tariff until May 1, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an Investigation and suspend the Tariff until May 1, 2007. Motion of Chairman Holland moving to adopt the FUS recommendation and the OTS recommendation to the extent consistent with the FUS recommendation. Vote of 5-0 with no further discussion.

Bunker Hill Sewer Company, FUS-0863*, OTS-0022, R-00061683. Tariff Sewer-Pa. P.U.C. No. 2 filed July 24, 2006, proposing an annual increase in rates of $13,474, to become effective October 1, 2006. Formal Complaints have been filed. FUS recommends that the Commission institute an Investigation; suspend the Tariff until May 1, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute and suspend the Tariff until May 2007. Motion of Chairman Holland to adopt the FUS recommendation and adopt the OTS recommend to the extent consistent with the FUS recommendation. Vote of 5-0 with no further discussion.

Allied Utility Services, Inc., FUS-0864*, OTS-0027 R-00061617. Supplement No. 8 to Tariff Sewer-Pa. P.U.C. No. 1, filed June 28, 2006, proposing an annual increase in rates of $183,902 to become effective October 2, 2006. Formal Complaints have been filed. FUS recommends that the Commission institute an Investigation; suspend the filing to May 2, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an Investigation and suspend the filing to May 2, 2007. Motion of Chairman Holland to adopt the FUS recommendation and adopt the OTS recommend to the extent consistent with the FUS recommendation. Vote of 5-0 with no further discussion.

Plumer Water Company, FUS-0868*, OTS-0019, R-00061561. Supplement No. 10 to Tariff Water-Pa. P.U.C. No. 2, filed July 10, 2006, voluntarily postponed to become effective September 29, 2006, proposing an annual increase in rates of $3,066. FUS recommends that the Respondent be given the alternative of filing a revised Supplement which contains proposed changes in rates calculated to produce additional annual revenues of approximately $1,590; or should Respondent not elect to file such a Supplement, the Commission will institute an Investigation; suspend the filing until April 29, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission permit the Tariff to become effective in its entirety. Motion of Chairman Holland to adopt the FUS recommendation and reject the OTS recommendation. Vote of 5-0 with no further discussion.

Reynolds Disposal Company, FUS-0072, OTS-0026, R-00061492, Supplement No. 40 to Sewage-Pa. P.U.C. No. 3, filed July 31, 2006, proposing an annual increase in rates of $278,969, to become effective September 29, 2006. FUS recommends that the Commission institute an Investigation; suspend the Tariff until April 29, 2007; and assign the filing to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an Investigation and allow the filing to be suspended. Motion of Chairman Holland to adopt the FUS recommendation and adopt the OTS recommend to the extent consistent with the FUS recommendation. Vote of 5-0 with no further discussion.

Law Bureau

Informal Investigation Into The Service Quality Of Total Environmental Solutions, Inc., Beech Mountain Lakes Division, L-0060*, M-00061938. Staff recommends that the Commission release the September 6, 2006 Staff Investigation Report to the public. This matter has been postponed by Commissioner Fitzpatrick until Public Meeting of October 19, 2006.

Office of Administrative Law Judge

Deborah K. Scott v. PA-American Water Company, ALJ-0560*, C-20054741. On July 21, 2005, a complaint was filed alleging a billing dispute. On August 15, 2005, PAWC filed its answer. A hearing was held on November 1, 2005. The Commission reviewed ALJ Jandebeur’s Initial Decision dismissing the complaint. Motion of Commissioner Shane that the matter be remanded to the OALJ in order that the parties can provide additional evidence including documentation and photographs which may resolve some of the record’s discrepancies. Vote of 5-0 with no further discussion.

Jerry Prosser v. Columbia Gas of PA, Inc., ALJ-0587*, C-20066376. On May 22, 2006, a complaint was filed alleging Columbia caused damage to his property. On June 13, 2006, Columbia filed an Answer with New Matter and a Preliminary Objection. The Commission reviewed Chief ALJ Smith’s Initial Decision dismissing the complaint. Motion of Commissioner Fitzpatrick that the Initial Decision be reversed and that the proceeding be remanded to the OALJ for a hearing. The Complainant alleged that the utility damaged his driveway and sidewalk when replacing one of its lines. Even though Complainant is not a customer of the utility, the Motion broadly defines “service” and finds that the Commission does have jurisdiction to entertain the complaint. Vote of 5-0 with no further discussion.

PA PUC, OCA, OSBA v. PPL Gas Utilities Corporation, ALJ-0598*, R-00061519, R-00061519C0001, R-00061519C0002. On June 1, 2006, PPL filed its 2006 PGC filing, Supplement No. 13 to Gas-Pa. P.U.C. No. 5 with supporting documentation, to become effective December 1, 2006. Complaints were filed. On August 31, 2006, a Settlement of Rate Proceeding Pursuant to Section 1307(f) was filed. The Commission reviewed ALJ Salapa’s Recommended Decision approving the Settlement. This matter was withdrawn by the Bureau.

CARRY-IN AGENDA

Bureau of Transportation and Safety

Matter approved as submitted.

Office of Special Assistants

Matter approved as submitted.

Commissioners

Motion of Vice Chairman James H. Cawley In Re: C-0015, M-0006 , Investigation of Conservation, Energy Efficiency Activities, and Demand Side Response by Energy Utilities and Rate Making Mechanisms to Promote Such Efforts. Motion fo Vice Chairman Cawley that the Commission initiate an Investigation into cost-effective and reasonable efforts that energy utilities can take to help their customers can serve energy or use it more efficiently. Motion of Commissioner Shane with a friendly amendment that the Commission Staff specifically include the Toronto Hydro-Electric System Limited’s “10/10 Program” for the consideration of the Demand Side Response Working Group. This amendment was accepted by Vice Chairman Cawley. Commissioner Fitzpatrick applauded the Vice Chairman’s Motion and open-mindedness. Vote of 5-0 with no further discussion.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, OCTOBER 19, 2006 AT 10:00 AM.

NOTES: Commissioner Shane made a statement, as this was his final Public Meeting.

*Denotes Order