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Highlights: PA PUC Public Session of December 7, 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 December 21, 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, January 11, 2007 at 10:00 a.m. The minutes of the Public Meeting of November 30, 2006 were unanimously approved without modification.
CASES OF SPECIAL INTEREST
- PA PUC v. Metropolitan Edison Co. and PA PUC v. Pennsylvania Electric Co., OSA-371 R*, R-00061366, et al. Petition of Met-Ed for Approval of a Rate Transition Plan; Petition of Penelec for Approval of a Rate Transition Plan; Re: Merger Savings Remand Proceeding. Several Parties filed Exceptions and Reply Exceptions to the ALJs Recommended Decision. Staff recommends that the Commission conduct a Non-Binding poll of the issues. Concurring and Dissenting Statement of Vice Chairman Cawley is attached. A final vote on the issues will take place at the January 11, 2007 Public Meeting.
Bureau of Transportation and Safety
- All matters approved as submitted.
Bureau of Administrative Services
- All matters approved as submitted.
Bureau of Audits
- All matters approved as submitted.
Bureau of Consumer Services
- Equitable Gas Company’s Universal Service and Energy Conservation Plan Submission, BCS-00148, M-00061959. Staff recommends that the Commission adopt the proposed Final Order that consolidates Equitable’s Universal Service and Energy Conservation Plan with Equitable’s Petition for Approval to Increase the Level of Funding for its CAP and to Implement an Adjustable Rate Mechanism at P-00061140 and assigns the consolidated proceedings to the OALJ for Hearing. Vote 4-0 with no discussion.
Office of Special Assistants
- Alternative Energy Credit, OSA-0348*, P-00052149. Petition for Declaratory Order Regarding Alternative Energy Credit Ownership. After notice, various Parties were joined or intervened. The Initial Decision issued by ALJ Colwell on July 13, 2006, found for the Petitioners and determined that the AECs were owned by the purchasing EDC. Exceptions and Reply Exceptions were filed by numerous Parties. Staff recommends that the Commission adopt the proposed Opinion and Order addressing the Exceptions and Reply Exceptions. Motion of Commissioner Fitzpatrick which moves to deny NUG exceptions and adopt the ALJ’s Initial Decision is attached. The Dissenting Statement of Vice Chairman Cawley advising that the Petition should be denied under the AEPS Act as a matter of law and leg intent of the Act saying that contract law applies as well as credits are not intertwined with the underlying energy is attached. Vote of 3-1 (Dissent of Vice Chairman Cawley) with no further discussion.
- PA PUC v. Emporium Water Company, OSA-0362 R*, R-00061297 C-0001-3. Supplement No. 20RR to Tariff Water-Pa. P.U.C. No. 5, to become effective May 29, 2006, suspended by operation of law until December 29, 2006, containing proposed changes in rates, rules and regulations calculated to produce $316,144 in additional annual revenues. The ALJ recommended rejecting the Company’s proposal and directing Emporium to file a tariff allowing recovery of no more than $220,862 in additional base revenues. Exceptions to the ALJ’s Recommended Decision were filed by Emporium, OCA and OSBA. Reply Exceptions were filed by Emporium, OCA and OTS. Staff recommends that the Commission adopt the proposed Opinion and Order addressing the issues. Motion of Vice Chairman Cawley is attached as well as the Dissenting Statement of Commissioner Fitzpatrick stating that the spending and hiring of employees should be left to the Company’s management, agreeing that a hypothetical capital structure of 55% debt and 45% equity should be used instead of the actual capital structure. Vote of 3-1 (Dissent of Commissioner Fitzpatrick) with no further discussion.
Bureau of Fixed Utility Services
- New Entrants, FUS-0439*, M-00960799. Proposed modifications to the application seeing certification to provide telecommunications services in the Commonwealth. Staff recommends that the Commission adopt the proposed Tentative Order. Statement and Directed Question of Vice Chairman Cawley are attached. Vote of 4-0 on both Motions with no further discussion.
- Verizon Pennsylvania Inc., FUS-0521*, P-00930715F1000 and R-00061915. 2007 Price Change Opportunity filed November 1, 2006 along with revisions to Tariff Telephone Pa. P.U.C. Nos. 1, 180A, 182, 182A, 185B, 185C and 500 to become effective January 1, 2007. Staff recommends that the Commission adopt the proposed Order. The Motion and Statement of Vice Chairman Cawley concurring in part and dissenting in part is attached. The Motion of Commissioner Fitzpatrick disputing the issue of accounting methodology for banking be incorporated into the complaint and assigned to the Office of ALJ and advising FUS to prepare an Opinion and Order consistent with the Motion is attached. Vote of 4-0 with no further discussion.
- Aqua Pennsylvania, FUS-0886*, A-210104F0076. Application filed October 2, 2006 for approval to offer, render, furnish or supply water service to the public in an additional portion of Caln Township, Chester County, Pennsylvania. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.
- Aqua Pennsylvania, FUS-0889*, A-210104F0077. Application filed October 10, 2006 for approval of (1) the acquisition by Aqua PA of the water system assets of the Estate of Brenda Davis and (2) the right of Aqua PA to begin to offer, render, furnish, or supply water service to the public in an additional portion of Palmyra Township, Wayne County. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.
- Aqua Pennsylvania, Inc., FUS-1390, S-00061171. Securities Certificate filed November 27, 2006 for the issuance of First Mortgage Bonds in a principal amount not in excess of $50,000,000 to be issued in one or more series. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.
Combined Bureau Agenda
- Eaton Sewer & Water Company, Inc., FUS-0883*, OTS-0034, OTS-0033, R-00061645 and R-00061646. Tariffs Wastewater/Water-Pa. P.U.C. No. 2, filed October 5, 2006, proposing annual increases in rates of $69,641 (Wastewater) and $71,113 (Water), to become effective on January 1, 2007. FUS recommends that the Commission institute an Investigation, noting that the proposed Tariffs will be suspended by operation of law and that the case be assigned to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an investigation and tariffs be suspended by operation of law. Motion of Chairman Holland to adopt the FUS recommendation and the OTS recommendation to the extent consistent with the FUS recommendation. Vote of 4-0 no further discussion.
- Borough of Phoenixville, FUS-0885*, OTS-0032, R-00061625. Sewer Supplement No. 13 to Tariff Sewer-Pa. P.U.C. No. 1 filed on October 26, 2006 proposing an annual increase in rates of $72,575 to become effective January 1, 2007. Staff recommends that the Commission institute an investigation not that the Tariff will be suspended by operation of law until August 1, 2007, unless otherwise directed by the Commission; and that the case be assigned to the OALJ, consistent with the proposed Order. OTS recommends that the Commission institute an investigation and tariffs be suspended by operation of law. Motion of Chairman Holland to adopt the FUS recommendation and the OTS recommendation to the extent consistent with the FUS recommendation. Vote of 4-0 with no further discussion.
Law Bureau
- Equitable Gas Co., L-0092*, P-00062240. Petition for Approval to Increase the Level of Funding for Its CAP and to Implement an Adjustable Rate Mechanism to Recover Associated Expenses Concerning Universal Service and Energy Conservation Plan Costs. Staff recommends that the Commission adopt the draft order that consolidates the instant Petition with Equitable’s Universal Service and Energy Conservation Plan Submission, filed at Docket No. M-00061959, and assigns the consolidated proceeding to OALJ for Hearing. Vote of 4-0 with no discussion.
Office of Administrative Law Judge
- All matters approved as submitted.
CARRY-IN AGENDA
Bureau of Fixed Utility Services
- All matters approved as submitted.
Office of Special Assistants
- All matters approved as submitted.
COMMISSIONERS
Motion of Chairman Wendall F. Holland In Re: PA American Water Company’s Main Breaks, C-0017, I-0006 . Motion of Chairman Wendall F. Holland In Re: PA American Water Company’s Main Breaks in the Pittsburgh Area and Related Incidents Statewide advising that the Law Bureau and FUS undertake an investigation of the outages affecting 250 customers or more, lasting in duration of over six hours throughout the utility’s service territory for the past three years and that the Law Bureau prepare an Order consistent with the Motion which is attached.
THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, JANUARY 11, 2007 AT 10:00 AM
*Denotes Order
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