Thomas, Long, Niesen & Kennard Law

Highlights: PA PUC Public Session of March 1, 2007

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 March 1, 2007 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 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, March 22, 2007 at 10:00 a.m. The minutes of the Public Meeting of January 26, 2007 were unanimously approved without modification.

Bureau of Transportation and Safety

BCC Liberty, Inc. d/b/a Car 1, TSM-0059*, A-00123424, F.6000. Application for emergency temporary authority to transport, as a common carrier, by motor vehicle, persons in airport transfer service. Staff recommends that the Commission adopt the proposed order approving the emergency temporary application. Motion by Chairman Holland advising that the Application not be granted, that the Application be assigned to the OALJ for the scheduling of a hearing and that the OSA prepare the necessary Opinion and Order, is attached. Vote of 4-0 with no further discussion.

Bureau of Administrative Services

Larry E. McQueen, TSM-0065*, A-00123101. Application for the right to begin to transport, as a common carrier, by motor vehicle, persons in paratransit service, limited to persons whose personal convictions prevent them from owning or operating motor vehicles. Staff recommends that the Commission adopt the proposed order dismissing the application. This case was withdrawn by the Bureau of Transportation and Safety.

Bureau of Audits

Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, AUD-0003, D-05MGT002, D-05MGT003, D-05MGT004. Stratified Management and Operations Audit. The consulting firm has completed its work and submitted an audit report containing 50 recommendations for improvement. The FE-PA Companies responded with their Implementation Plan classifying 37 recommendations as accepted, 5 recommendations as accepted in part, and 8 recommendations as rejected. Staff recommends to make the Audit Report and Implementation Plan public. Attached is the Statement by Vice Chairman Cawley noting that when a parent company is at record profit it is ill-served to undertake short-term cost cutting. Chairman Holland stated from the bench that he was disturbed at Company’s actions as well. Vote of 4-0 with no further discussion.

Office of Special Assistants

Venus Telephone Company and Dobson Cellular Systems, Inc., OSA-031*, A-31106F7034. Joint Petition filed on January 12, 2007, 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.

Doris Anne Wilson v. Pennsylvania-American Water Company (billing dispute), OSA-0041*, C-20066331. On May 1, 2006, Complainant alleged incorrect charges on her bill. Complainant filed Exceptions to ALJ Smolen’s August 14, 2006 Initial Decision recommending that the Complaint be dismissed. Staff recommends that the Commission deny the Complainant’s Exceptions, and adopt the ALJ’s Initial Decision, consistent with the proposed Opinion and Order. This matter was postponed until the Public Meeting of March 22, 2007.

Bureau of Fixed Utility Services

Little Washington Wastewater Company d/b/a Suburban Wastewater Company, FUS-0814*, A-2302400030. Application filed June 28, 2006 for approval to begin to offer, render, furnish or supply wastewater service to the public in portions of Londonderry Township, Chester County. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

South Canaan Telephone Company, FUS-1309*, A-313000. Application filed July 8, 2003 for approval of the acquisition of all the voting capital stock of South Canaan Services Company. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

Laurel Highland Telephone Company, FUS-1310*, A-311800F0006. Application filed December 11, 2006 for approval of the sale and transfer of certain property to the affiliated entity of Laurel Highland Total Communications, Inc. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

Telcove of York, Telcove of Eastern Pennsylvania, Telcove of Pennsylvania, Inc. Telcove Operations, Inc., and Telcove Investment, LLC, FUS-1312*, A-310470F0015, A-310470F0016, A-310923F0011, A-310547F2001, A-3103782000, A-311103F2000. Joint Application filed January 5, 2006 for approval of an internal corporate reorganization whereby the assets, liabilities, and customer base of TelCove of York and TelCove Eastern Pennsylvania would transfer to TelCove of Pennsylvania, Inc., and TelCove of Pennsylvania, Inc. would convert to a limited liability company; the assets, liabilities, and customer base of TelCove Investment, LLC would transfer to TelCove Operations, Inc., and TelCove Operations, Inc. would convert to a limited liability company; and TelCove of York, TelCove of Eastern Pennsylvania, and TelCove Investment, LLC to abandon service as telecommunication service providers. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

Metropolitan Edison Company and Pennsylvania Electric Company, FUS-1314 R*, R-00061366, et al, R-00061367, et al, P-00062213 & 2214, A-110300F0095, A-110400F0040. Compliance filing filed January 17, 2007. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

Little Washington Wastewater Co. d/b/a Suburban Wastewater Co. - Little Washington Division, FUS-0807*, R-00072074, OTS-0003, R-00072074. Supplement No. 28 to Tariff Sewer-Pa. P.U.C. No. 1, filed January 18, 2007, proposing an annual increase in rates of $168,407 to become effective March 21, 2007. Formal Complaints have been filed. Staff recommends that the Commission institute an Investigation and allow the filing to be suspended by operation of law through October 21, 2007. Vote of 4-0 to the extent that it is consistent with FUS-0807.

Little Washington Wastewater Co. d/b/a Suburban Wastewater Co. - Peddler’s View Division, FUS-0808*, R-00072073, OTS-0004, R-00072073. Supplement No. 26 to Tariff Sewer Pa. P.U.C. No. 1, proposing an annual increase in rates of $59,165, to become effective March 21, 2007. A Formal Complaint has been filed. Staff recommends that the Commission institute an Investigation and allow the filing to be suspended by operation of law or through October 21, 2007; and that the case be assigned to the OALJ consistent with the proposed Order. Vote of 4-0, to the extent that it is consistent with FUS-0808.

Combined Bureau Agenda

Little Washington Wastewater Co. d/b/a Suburban Wastewater Co. - Media Division, FUS-0810*, R-00072090, OTS-0005, R-00072090. Supplement No. 29 to Tariff Sewer-Pa. P.U.C. No. 1, filed January 18, 2007, to become effective March 25, 2007, proposing an annual increase in rates of $64,969. A Formal Complaint has been filed. Staff recommends that the Commission institute an Investigation and allow the filing to be suspended by operation of law until October 25, 2007; and that the case be assigned to the OALJ, consistent with the proposed Order. Vote of 4-0 to the extent that it is consistent with FUS-0810.

Little Washington Wastewater Co. d/b/a Suburban Wastewater Co. - Chesterdale/Willistown Woods Division, FUS-0811*, R-00072075, OTS-0006, R-00072075. Supplement No. 27 to Sewer-Pa. P.U.C. No. 1, proposing an annual increase in rates of $62,175, to become effective March 21, 2007. Formal Complaints have been filed. Staff recommends that the Commission institute an Investigation and allow the filing to be suspended by operation of law until October 21, 2007; and that the case be assigned to the OALJ, consistent with the proposed Order. Vote of 4-0 to the extent that it is consistent with FUS-0811.

Law Bureau

Pennsylvania Sustainable Energy Board, L-0001*, M-00031715. Staff recommends that the Commission approve the proposed Best Practices attached to the proposed Order. Vote of 4-0 with no discussion.

Office of Administrative Law Judge

Crystal Harris v. Philadelphia Gas Works, ALJ-0109*, C-20055642. On November 30, 2005, a complaint was filed alleging a billing dispute. PGW filed its answer on January 12, 2006. An Initial Decision was served on June 29, 2006 dismissing the complaint for lack of prosecution. Exceptions were filed by the complainant and the case was remanded to OALJ by Commission Order entered October 2, 2006. A hearing on remand was held on October 27, 2006. Staff reviewed ALJ Nguyen’s Initial Decision on Remand dismissing the complaint. Motion by Vice Chairman Cawley advising that the Initial Decision be reversed consistent with this Motion, that the case be remanded to the OALJ for hearing and a decision and that the OSA prepare the appropriate Opinion and Order consistent with this Motion, is attached. Vote of 4-0 with no further discussion.

Leslie P. Midla v. Equitable Gas Company, ALJ-0111*, C-20066385. On May 23, 2006, a complaint was filed alleging a billing dispute. Equitable filed its answer on June 14, 2006. A hearing was held on August 16, 2006. Staff reviewed ALJ Cocheres’ Initial Decision dismissing the complaint. Attached is the Motion by Chairman Holland stating that the Complaint should be dismissed on grounds that the PUC lacked jurisdiction over this matter as it was a private contractual dispute and that the OSA prepare the necessary Opinion and Order. Vote of 4-0 with no further discussion.

Joint Application of Commonwealth Telephone Company, CTSI, LLC, and CTE Telecom, LLC d/b/a Commonwealth Long Distance Company, ALJ-0119*, A-310800F0010, A-311095F0005, A-311225F003. For the acquisition by Citizens Communications Company of all of the stock of the Joint Applicants’ Corporate Parent, Commonwealth Telephone Enterprises, inc. By Initial Decision dated December 14, 2006, ALJ Colwell granted the preliminary objections and dismissed BCAP as a party. BCAP was reinstated by the Commission, but subsequently withdrew its protest. On January 19, 2007, a Joint Petition for Approval of Unanimous Settlement Agreement was filed. Staff reviewed ALJ Colwell’s Recommended Decision approving the Settlement. Vote of 4-0 with no discussion.

CARRY-IN AGENDA

Office of Special Assistants

PA PUC v. Met-Ed/Penelec, OSA-0049*, R-00061366, et al. Approval of a Rate Transition Plan; Re: Merger Savings Remand Proceeding. Petitions for Reconsideration of the Commission’s January 11, 2007 Opinion and Order filed by various Parties. Staff recommends that the Petitions for Reconsideration filed by Met-Ed, Penelec and OCA are denied; and that the Petition filed by MEIUG/PICA is denied in part and granted in part, consistent with the proposed Opinion and Order. Attached is the Statement of Chairman Holland in which he discusses the issue of whether congestion charges should be included in the Companies’ transmission service charge rider and how the issue is a close one. Vote of 4-0 with Vice Chairman Cawley concurring in part and dissenting in part.

Viking Energy of Northumberland, OSA-0054*, P-00052149. Petition for Reconsideration of the Commission’s Opinion and Order entered February 12, 2007 which determined the issues involved in the Petition for Declaratory Order regarding Ownership of Alternative Energy Credits and any Environmental Attributes Associated with Non-Utility Generation Facilities. Staff recommends that the Commission grant reconsideration, pending further review of and consideration on the merits. Vote of 4-0 with no discussion.

Bureau of Fixed Utility Services

Frontier Communications of Breezewood, LLC, et al., L-0020*, P-00072253, P-00951005F1000, FUS-0419*, P-00951005F1000. Petition for a Protective Order regarding their Price Stability Index/Service Price Index and Banking Report Filing for 2007. Staff recommends that the Petition be granted in part and denied in part, consistent with the proposed Order and that the 2007 Price Stability Index/Service Price Index Filing be approved. Motion of Commissioner Fitzpatrick advising that FUS with the assistance of the Law Bureau revise the proposed Orders consistent with the Law Bureau recommendations identified above. Vote of 4-0 with no further discussion.

Citizens Telephone Co. of Kecksburg, L-0024*, P-00072252, P-00971229F1000, FUS-0416*, P-00971229F1000. Petition for a Protective Order regarding their Price Stability Index/Service Price Index and Banking Report Filing for 2007. Staff recommends that the Petition be granted in part and denied in part, consistent with the proposed Order and that the 2007 Price Stability Index/Service Price Index Filing be approved. Motion of Commissioner Fitzpatrick advising that FUS with the assistance of the Law Bureau revise the proposed Orders consistent with the Law Bureau recommendations identified above. Vote of 4-0 with no further discussion.

Ironton Telephone Co., L-0025*, P-00072251, P-00971182F1000, FUS-0418*, P-00971182F1000. Petition for Protective Order regarding their Price Stability Index/Service Price Index and Banking Report Filing for 2007. Staff recommends that the Petition be granted in part and denied in part, consistent with the proposed Order and that the 2007 Price Stability Index/Service Price Index Filing be approved. Motion of Commissioner Fitzpatrick advising that FUS with the assistance of the Law Bureau revise the proposed Orders consistent with the Law Bureau recommendations identified above. Vote of 4-0 with no further discussion.

Office of Special Assistants

All matters approved as submitted

COMMISSIONERS

Motion of Chairman Holland In Re: Metropolitan Edison Co., Pennsylvania Electric Company, C-0018, R-00061366 et al. Chairman Holland has made a motion concerning rate design issues. Vote of 4-0 with no further discussion.

ANNOUNCEMENTS:

Chairman Holland thanked Staff for their help during the budget hearing before the House of Representatives and noted that next week the budget hearing will be held before the Senate.

Chairman Holland announced that Joanna McGausey from the Philadelphia Office was retiring, recognized her cherry disposition and her hard work, and wished her well in her retirement.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, MARCH 22, 2007 AT 10:00 AM

*Denotes Order