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Highlights: PA PUC Public Session of November 30, 2006

Note: Audio from each public meeting is available on the Pennsylvania Public Utility Commission’s website for approximately six months.  To access the audio stream for this public meeting, please visit http://www.puc.state.pa.us/general/PMAudio.aspx.  The public meeting calendar and agendas may be viewed at http://www.puc.state.pa.us/general/public_meeting.aspx.

At the November 30, 2006 Public Meeting of the Pennsylvania Public Utility Commission (“Commission”), the Commissioners adopted Staff’s recommendations for action by a vote of 4-0 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, December 7, 2006 at 10:00 a.m.  The minutes of the Public Meeting of October 27, 2006 were unanimously approved without modification.

Bureau of Transportation and Safety

• All matters approved as submitted.

Bureau of Administrative Services

• Evaluation of Proposals To Select The Program Administrator To Perform Functions Under The Alternative Energy Portfolio Standards Act Of 2004, ADM-0006 M-00051865:  Staff recommends that the Commission approve the Evaluation Committee’s selection of the Alternative Energy Credits Program Administrator.  Vote of 4-0 with statement of Chairman Holland that he accepts the recommendation with “extreme pause” stating that the program administrator should act free from bias.  He indicated that the actions of the program administrator would be monitored closely.

Bureau of Consumer Services

• Rulemaking to Amend the Provisions of 52 Pa. Code, Chapter 56 to Comply with the Provisions of 66 Pa. C.S., Chapter 14 General Review of Regulations.  BCS-0013 R* L-0006:  Staff recommends that the Commission adopt the Advance Notice Of Proposed Rulemaking Order, to be published in the Pennsylvania Bulletin for Comments.  Statement of Commissioner Pizzingrilli requesting that commentators address whether portions of the statute should be incorporated into the regulations.  Vote of 4-0 without further discussion.

Office of Special Assistants

• Pennsylvania Public Utility Commission Bureau of Transportation and Safety v. WGM Transportation, Inc., OSA-0072, A-00111651C040:  On February 7, 2006, BTS and WGM filed a Settlement Agreement to satisfy a Complaint filed by BTS against WGM. As part of the Settlement, WGM agreed that its taxi will, henceforth, have available a child passenger restraint seat and BTS agreed to the elimination of the proposed penalty.  Staff recommends that the Commission adopt the proposed Opinion and Order which rejects the Settlement Agreement as filed, and returns the matter to the Parties for further negotiations or for prosecution.  Matter postponed until Public Meeting of December 7, 2006.

• Buffalo Valley Telephone Company, OSA-0240R* R-00061375, P-00981428F1000: Supplement No. 54 to Tariff Pa. PUC No. 7 and Supplement No. 8 to Tariff Pa. PUC No. 8. 2006 Annual Price Stability Index/Service Price Index.  Petition for Reconsideration of the Commission’s June 23, 2006 Opinion and Order.  Staff recommends that the Commission adopt the proposed Opinion and Order denying Buffalo Valley’s Petition.  Matter withdrawn.

• Conestoga Telephone & Telegraph Company, OSA-0241R* R-00061376, P-00981429F1000: Supplement No. 206 to Tariff Pa. PUC No. 10 and Supplement No. 7 to Tariff Pa. PUC No. 11.  2006 Annual Price Stability Index/Service Price Index.  Petition for Reconsideration of the Commission’s June 23, 2006 Opinion and Order.  Staff recommends that the Commission adopt the proposed Opinion and Order denying Conestoga’s Petition.  Matter withdrawn.

• Denver & Ephrata Telephone and Telegraph Co., OSA-0242R*, R-00061377, P-00981430F1000 , Supplement No. 251 to Tariff Pa. PUC No. 15 and Supplement No. 10 to Tariff Pa PUC No. 16.  2006 Annual Price Stability Index/Service Price Index Filing.  D & E filed a Petition for Reconsideration of the Commission’s June 23, 2006 Opinion and Order.  On July 20, 2006, Verizon PA filed its response as Amicus Curiae and on July 31, 2006 D & E filed a Petition for Motion to Strike or Dismiss Amicus Curiae Response of Verizon.  Staff recommends that the Commission adopt the proposed Opinion and Order denying the Petition and the Motion to Strike or Dismiss Amicus Curiae of Verizon.  Matter withdrawn.

• Sunil H. Desai v. Columbia Gas of Pennsylvania, Inc., OSA-0276* C-20043212  (Improper transfer of accounts):  On March 3, 2006, Columbia filed a Petition for Reconsideration regarding the Commission’s Order entered February 17, 2006, which essentially denied Columbia’s Exceptions to the Initial Decision of ALJ Colwell.  Staff recommends that the Commission adopt the proposed Opinion and Order which denies the instant Petition.  Dissenting statement of Commissioner Fitzpatrick who would agree with Columbia that the utility cannot switch service from owner of building to apartment tenant without first being notified to do so by the tenant pursuant to 66 Pa. C.S. §1529.  Commissioner Pizzingrilli concurs in result only.  Vote of 3-1 with no further discussion.

• Application of Shannon Transport, Inc., t/a Shannon Moving and Storage, OSA-0284*, A-00114256F0002:  Shannon filed an Application seeking an additional right on June 8, 2005.  In his Initial Decision, ALJ Rainey recommended, inter alia, that Shannon’s Application be granted in part and denied in part.  On August 23, 2006, the Protestants filed Exceptions. On September 5, 2006, Shannon filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order denying the Exceptions and adopting the ALJ’s Initial Decision.  Matter withdrawn.

• Application of Core Communications, Inc.;  OSA-0351*, A-310922F0002, AMA, A-310922F0002, AMB, (certificate of public convenience).  On May 25, 2005, Core filed its Application for authority to amend its existing Certificate of Public Convenience.  Motion for Stay and Record Incorporation filed by Alltel PA on April 24, 2006.  The Initial Decision issued by ALJ Weismandel on June 8, 2006, recommended that the Application be denied.  Core filed Exceptions on June 28, 2006. PTA and RTCC filed Replies on July 10, 2006.  Staff recommends that the Commission grant Core’s Exceptions, reverse the ALJ’s Staff recommends, and deny Alltel’s Motion for Stay, consistent with the proposed Opinion and Order.  Vote of 4-0 with no discussion.

• AT&T Communications of Pennsylvania, Inc. v. Verizon North, Inc: OSA-0353 R* C-20027195 (access charge reduction):  On March 31, 2002, AT&T filed a Formal Complaint against Verizon North seeking Verizon-North’s access charges be reduced to Verizon -PA’s levels pursuant to the Commission’s Merger Order at Docket No. A-310200F0002.  On December 7, 2005, ALJ Fordham’s Recommended Decision on Remand was issued recommending elimination of the Carrier Charge and reductions to traffic sensitive access charges to interstate levels. Exceptions and Reply Exceptions were filed.  Staff recommends that the Commission grant the Parties’ Exceptions in part and deny them in part, and modify the ALJ’s Recommended Decision, consistent with the proposed Opinion and Order.  Motion of Vice Chairman Cawley to defer decision until resolution of FCC access reform and Missoula Plan.  Dissenting statement of Commissioner Fitzpatrick that he agrees with ALJ and would have eliminated carrier charge.   Vote of 3-1 with no further discussion.

• Pennsylvania Public Utility Commission v. The Peoples Natural Gas Company d/b/a/ Dominion Peoples, OSA-0358* M-00051880 R-00051093 R-00051093C0001:  On November 2, 2005, Peoples filed Supplement No. 65 to its tariff, proposing changes to its Customer Assistance Program. On June 6, 2006, Peoples, OCA and OSBA filed a Stipulation of Settlement resolving their interests in the proceeding.  By Recommended Decision issued October 13, 2006, ALJ Nemec approved the Settlement.  On October 25, 2006, OTS filed Exceptions. Peoples, OCA, and OSBA each filed Replies on October 31, 2006.  Staff recommends that the Commission adopt the proposed Opinion and Order denying the Exceptions and approving the Settlement.  Concurring statement of Commissioner Fitzpatrick encouraging OTS to monitor the enforcement of control features by the Company on usage by CAP customers.  Vote of 4-0 with no further discussion.

• Joint Petition of South Canaan Telephone Company and South Canaan Cellular Communications, OSA-0361* A-311069F7033:  filed on September 29, 2006, for Approval 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 4-0 with no discussion.

Bureau of Fixed Utility Services

• Application filed September 25, 2006, by Little Washington Wastewater Company, FUS-0876* A-230240F0032: for approval of 1) the acquisition by Little Washington of the wastewater assets of The Greens at Penn Oaks Homeowners Association and Baker Residential of Pennsylvania, LLC and certain real estate rights from Penn Oaks Estates, Inc. and 2) the right of Little Washington to begin to offer, render, furnish, or supply wastewater service to the public in The Greens at Penn Oaks in an additional portion of Thornbury Township, Chester County.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no comment.

• Supplement No. 7 to Water-Pa. P.U.C. No.1 filed October 5, 2006, by Aqua Pennsylvania, Inc., FUS-1383* R-00061866: for approval to increase to the State Tax Adjustment Surcharge. Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

Law Bureau

• Nutmeg Energy, Inc., Gas City Oil and Gas Corporation and Exley Oil and Gas Corporation (“Nutmeg Energy”), L-0055 R*, P-00062204:  Petition for Declaratory Order asking the Commission to determine that it is not a “public utility” due to its limited provision of natural gas service. Staff recommends that the Petition be denied, consistent with the proposed Order.  Motion of Vice Chairman Cawley to find that Nutmeg is not a public utility under this scenario and requesting that Nutmeg, nevertheless and in good faith submit to the Commissioner’s regulatory procedures to ensure the provision of safe and reasonable gas service.  Dissenting statement of Chairman Holland that under Drexelbrook, Nutmeg would be deemed a public utility.   A mere non-binding “agreement” to adhere to the Commission’s gas safety requirements does not adequately protect the public interest.  Vote of 3-1 noting the dissent of Chairman Holland.

• Implementation of the Alternative Energy Portfolio Standards Act of 2004: Policy Statement Order: L-0065 R* M-00051865:  Staff recommends that the Commission adopt the proposed Order that finalizes the Policy Statement, to be published in the Pennsylvania Bulletin.  Vice Chairman Cawley thanks staff.  Vote of 4-0 with no further discussion.

• Implementation of 811 Abbreviated Dialing Access, L-0080* M-00051921:  to the PA One-Call Notification. Staff recommends that the Commission adopt the proposed Implementation Order addressing the issues involved, and that the proposed Implementation Order be published in the Pennsylvania Bulletin.  Matter postponed until Public Meeting of December 7, 2006.

• Pennsylvania Universal Service Fund Annual Rate Adjustment. L-0081* M-00001337:  Staff recommends that the Commission adopt the Administrator’s Report and establish the PaUSF size at $33,819,690 for Calendar Year 2007, consistent with the proposed Order.  Vote of 4-0 with no discussion.

• Law Bureau Prosecutory Staff v. Kilbuck Run Disposal Corp.,  L-0082* C-20066150, A-230203:  Request for Revocation of Certificate of Public Convenience. Staff recommends that the Commission adopt the proposed Cancellation Order, to be published in the Pennsylvania Bulletin.  Matter withdrawn.

Office of Administrative Law Judge

• PA PUC, et al. v. Duquesne Light Company, ALJ-0603* R-00061346, R-00061346C0001, R-00061346C0002, R-00061346C0005, R-00061346C0007, R-00061346C0008:  On April 7, 2006, DLC filed Tariff Electric-Pa. P.U.C. No. 24, replacing in its entirety its Tariff Electric-Pa. P.U.C No. 23, proposing an annual increase in retail distribution rates. DLC also informed the Commission that transmission service charges reflected in retail rates are expected to increase effective June 1, 2006.  By Order entered May 4, 2006, the Commission instituted an investigation and suspended the tariff until January 6, 2007.  Hearings were held.  On September 14, 2006, a Joint Petition for Settlement of all Issues was filed.  Review of ALJ Gesoff’s Recommended Decision adopting the Settlement. Statement of Chairman Holland that some aspects of the settlement are “troubling”, including application of the recent Lloyd decision, potential effects on electric competition and return on equity.  Chairman Holland recused himself from PEDA issue.  Statement of Vice Chairman Cawley suggesting a few tariff revisions. Vote of 4-0 (3-0 on PEDA issue) with no further comment.

• PA PUC, et al. v. PG Energy, a Division of Southern Union Company, ALJ-0604*  R-00061365, R-00061365C0004, R-00061365C0006:  On April 13, 2006, PG Energy filed Supplement No. 44 to Tariff Gas – Pa. P.U.C. No. 6 and Supplement No. 43 to Tariff Gas – Pa. P.U.C. No. 1, issued on April 13, 2006 proposing an annual increase in rates to become effective June 12, 2006. Complaints and Petitions to Intervene were filed. By Order entered May 19, 2006, the Commission instituted an investigation and suspended the tariff until January 12, 2007. Hearings were held. On October 4, 2006, a Joint Petition for Settlement was filed. Review of ALJ Colwell’s Recommended Decision approving the Settlement.  Statement of Vice Chairman Cawley that he has concern about fixed customer and declining block charges of small business customers.  Vote of 4-0 with no further discussion.

• PA PUC BTS v. Brian P. Haenze t/a Exotic Limousine Service, ALJ-0605* A-00118037C0501, A-00118037C0502:  On September 8, 2005, BTS filed two complaints alleging that: (1) Respondent, on three occasions in May 2004, charged an improper rate other than specified in his tariff; (2) Respondent transported passengers while his certificate of public convenience was under suspension.  On November 11, 2005, Respondent filed an answer to each complaint. A hearing was held on June 27, 2006.  Commission review of ALJ Hoyer’s Initial Decision sustaining the complaints.  Vote of 4-0 with no further discussion.

• Stephen J. Noll v. Columbia Gas of Pennsylvania, Inc., ALJ-0606* C-20066324:  On May 9, 2006, a complaint was filed alleging a billing dispute. On May 30, 2006, Columbia filed its answer. A hearing was held on August 22, 2006.  Commission review of ALJ Weismandel’s Initial Decision dismissing the complaint, except insofar as to establish a payment agreement.  Motion of Commissioner Fitzpatrick that pursuant to Section 1405 (d), this customer should not be afforded further payment arrangements.  Vote of 4-0 with no further discussion.

• PA PUC, et al. v National Fuel Gas Distribution Corporation, ALJ-0607* R-00061493, et al.:  On May 31, 2006, National Fuel Gas Distribution Corporation filed Supplement No. 61 to Tariff Gas – Pa. P.U.C. No. 9 proposing to increase base rates to produce additional annual operating revenues to become effective July 30, 2006.  By Order entered July 20, 2006, the Commission instituted an investigation and suspended the proposed Tariff Supplement until March 2, 2007.  Complaints were filed.  Hearings were held August 28-30, 2006. On October 12, 2006, a Joint Petition for Settlement was filed.  Review of ALJ Corbett and Hoyer’s Recommended Decision approving the Joint Petition for Settlement.  Statement of Chairman Holland with comment on impact of public input hearings and LIURP provisions.  Statement of Vice Chairman Cawley applauding changes to fixed rates, declining block structures, reductions in small business rates and enhanced funding of LIURP programs.  Vote of 4-0 with no further discussion.

CARRY-IN AGENDA

Bureau of Transportation and Safety

• Application of Logisticare Solutions, LLC, TSM-0319* A-00123240F6000: for Emergency Temporary Authority to operate as a Broker to arrange for the transportation of persons in Paratransit Service for the PA Department of Public Welfare.  Staff recommends that the Commission approve the Emergency Temporary Application, consistent with the proposed Order.  Vote of 4-0 with no discussion.

• Application of Logisticare Solutions, LLC, TSM-0320* A-00123240F6001: for Emergency Temporary Authority as a Contract Carrier of persons in Paratransit Service for Paratransit Service for the PA Department of Public Welfare. Staff recommends that the Commission approve the Emergency Temporary Authority, consistent with the proposed Order.  Vote of 4-0 with no discussion.

COMMISSIONERS

• Motion of Commissioner Terrance J. Fitzpatrick in Re: Fantasy Limousine Service, Inc.; C-0016, A-00108359, A-00108359C0601.  Motion corrects the information provided to note that petitioner had seven “suspensions” rather than “complaints” for failure to maintain evidence of insurance and that each prior suspension was lifted before a complaint was issued.  Consequently, the petition for reinstatement should be granted.  Vote of 4-0 with no further discussion.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, DECEMBER 7, 2006 AT 10:00 AM.

*Denotes Order