Thomas, Long, Niesen & Kennard Law

Highlights: PA PUC Public Session of November 29, 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 November 29, 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 tentatively scheduled for Thursday, December 6, 2007 at 10:00 a.m. The minutes of the Public Meeting of October 25, 2007 were unanimously approved without modification.

Bureau of Transportation and Safety

Advantage Medical Transport, Inc., TSM-0247*, A-00123352. Application for authority to transport persons in paratransit service. Staff recommends that the Commission adopt the proposed tentative order approving the application, as amended, and rejecting the portion of the restrictive amendment that is not in the public interest. Vote of 3-0 with Commissioner Christy dissenting.

Erie Transportation Service, Inc., TSM-0252*, Aa-0018419, F.5. Application for the approval of the transfer of one thousand (1,000) issued and outstanding shares of common capital stock held by Larry Herman, David Herman, Charles Mattingly and Amelia Sweetall to Erie Transportation Company. Staff recommends that the Commission adopt the proposed order approving the application for the transfer of shares. This matter was withdrawn by the Bureau.

Butler Ambulance Service Co., TSM-0256*, A-00123665. Application for the right to begin to transport, as a common carrier persons in paratransit service, from points in the County of Butler, to points in Pennsylvania and return. Staff recommends that the Commission adopt the proposed order dismissing the application. This matter was postponed until Public Meeting of December 20, 2007.

Bureau of Audits

Aqua Pennsylvania, Inc., AUD-0024 D-06DSC017. Auditor’s Report on the Distribution System Improvement Charge for the Year Ended December 31, 2006. Staff recommends that the Commission approve the Audit Report for public release. Vote of 4-0 with no discussion.

Office of Special Assistants

Buffalo Valley Telephone, Conestoga Telephone and Telegraph Company, Denver & Ephrata Telephone & Telegraph Company, OSA-0216*, I-00040105, P-00981428F1000, R-00061375, P-00981429F1000, R-00061376, P-00981430F1000, R-00071377. Petition for Reconsideration of the Commission’s Opinion and Order entered July 11, 2007. On August 8, 2007, the Office of Consumer Advocate and the Verizon Companies filed Answers. On August 17, 2007, and August 23, 2007, both D&E Companies and OCA, filed their Reply to the Answers of Verizon Companies. On August 9, 2007, the Commission granted the D&E Companies’ Petition, pending review and consideration on the merits. Staff recommends that the Commission adopt the proposed Opinion and Order that grants the Petition in part, and denies it in part. Motion of Commissioner Pizzingrilli supporting the majority of Staff’s recommended disposition of the substantive issues, but does not support the recommendation to reopen the Commission’s generic access charge investigation and moves that the Staff recommendation be modified consistent with the Motion and that the OSA prepare an Opinion and Order consistent with the Motion, is attached. Statement of Vice Chairman Cawley concurring in result and asking that the $18.00 cap on basic residential local exchange telephone service be preserved and he has found certain merits in the Staff analysis and recommendations and must tap the USF fund which is not a bottomless pit and the netpayers must pick up the tab which is not fair. Commissioner Christy joins Vice Chairman Cawley in concurring with the pricing end cap and raise changes not related to cap. Vote of 4-0 with no further discussion.

PA PUC, BTS v. Donald Fix, t/a Don Farr Moving Company, OSA-0236*, A-00107168C0605. On August 17, 2007 LBPS and Respondent filed a Settlement Agreement to satisfy a Complaint filed by BTS against Respondent alleging that Respondent failed to acknowledge and act promptly upon written or oral communications with respect to insurance claims. BTS sought a civil penalty for the violations. Respondent filed an Answer on November 9, 2006. In the Settlement, Prosecutory Staff agreed to a reduced civil penalty. Staff recommends that the Commission adopt the proposed Opinion and Order which approves the Settlement Agreement. This matter was withdrawn by the Bureau.

PA PUC, BTS v. Maria A. Costanza, t/a Costanza’s Chauffeur Service, OSA-0240*, A-00119040C0701. BTS alleged that Costanza advertised in the March 2006 and March 2007 Verizon Yellow Pages offering to provide service for compensation, while not then holding a Certificate of Public Convenience. Costanza did not file an Answer. The Complaint was sustained by Order entered September 17, 2007. A fine was imposed and Costanza was ordered to cease and desist from further violations of the Code. Costanza filed a late-filed Answer on September 21, 2007. BTS filed a Reply to Costanza’s Answer. Staff recommends that the Commission refer the matter to the Office of Administrative Law Judge, consistent with the proposed Opinion and Order. Motion of Commissioner Christy moving that the Answer filed by Maria A. Costanza, t/a Costanza’s Chauffeur Service on September 21, 2007, (Answer) be dismissed and that the Commission’s Order of September 17, 2007, stands and shall not be reconsidered on the basis of the Answer and that the OSA prepare the necessary Order consistent with this Motion, is attached. Vote of 4-0 with no further discussion.

Ruben Collazo V. Stillwater Sewer Corporation, OSA-0244*, C-20066892. On September 22, 2006, Complainant filed a Complaint claiming that Respondent is providing illegal public utility service because it does not hold a Certificate of Public Convenience. On November 16, 2006, Respondent filed an Answer and New Matter. By Initial Decision issued on April 6, 2007, ALJ Corbett, Jr. denied the Complaint. Complainant filed Exceptions on April 24, 2007. Respondent filed Reply Exceptions on May 3, 2007. Staff recommends that the Commission adopt the proposed Opinion and Order denying the Complainant’s Exceptions. Motion of Vice Chairman Cawley moving that the Association, as the parent of Stillwater, be afforded the opportunity to become a bona fide cooperative association and to inform the PUC’s Secretary in writing of its intention to do so with ten (10) days of the entry of a Tentative Order; if the Association chooses to become a bona fide cooperative association, it be requested to provide, to the PUC’s Secretary and Law Bureau within one hundred twenty (120) days of the entry of a Tentative Order, written notification of its amended structure and its contract with Stillwater to provide wastewater services only to the Association’s members who are identified as such, if the Association chooses not to become a bona fide cooperative association, the Tentative Order become final on the 30th day after entry and Stillwater be required to apply for a certificate of public convenience within 30 days thereafter, that FUS be directed to monitor the Association’s and Stillwater’s response to the Tentative Order and to determine whether any further action is necessary, that the Secretary of the Commission be directed to transfer the files of this proceeding to FUS upon entry of the Tentative Order and the OSA prepare an Opinion and Order consistent with this Motion. Vote of 4-0 with no further discussion.

PA PUC, BTS v. Joseph J. and Mary D. Yates, OSA-0249*, C-20077848. On June 13, 2007, BTS instituted a Complaint against Petitioner alleging that Petitioner provided transportation for compensation, while not having authority to do so. By Secretarial Letter issued on August 21, 2007, the Commission noted that since no Answer to the Complaint had been timely filed, the Complaint was sustained and the recommended civil penalty was imposed on Petitioner. On September 10, 2007, Petitioner filed a Petition for Appeal from Actions of Staff requesting that our Secretarial Letter of August 21, 2007, be reconsidered. Staff recommends that the Commission adopt the proposed Opinion and Order which grants the Petition to the extent consistent with the Opinion and Order, and transfers the proceeding to the OALJ. Motion of Commissioner Pizzingrilli moving that the Petition for Appeal from Actions of Staff filed by Joseph J. and Mary D. Yates is granted and the Complaint be dismissed and the OSA prepare the appropriate Order consistent with this Motion is attached. Vote of 4-0 with no further discussion.

La Vie Medical Transportation, Inc., OSA-0262* A-00123345. La Vie filed the instant Application on December 5, 2006. After hearing, ALJ Nguyen issued his Recommended Decision on September 17, 2007, recommending that the instant Application be denied due to La Vie’s failure to carry its burden under the applicable evidentiary criteria. By Final Order of October 24, 2007, the Recommended Decision became final. On October 17, 2007, La Vie filed a Petition for Leave to Withdraw Application requesting that the instant Application be withdrawn. No Response to the Petition has been filed. Staff recommends that the Commission adopt the proposed Opinion and Order which, inter alia, grants La Vie’s Petition. Vote of 4-0 with no discussion.

PA PUC, BTS v. Felix M. Szczepanski, t/a J.B. Taxi, OSA-0264*, A-00118810C0701. On October 30, 2007, BTS and Respondent filed a Settlement Agreement to satisfy the Complaint filed by BTS against Respondent. In its Complaint, BTS averred that inspection of six of Respondent’s vehicles revealed various violations. BTS requested that a civil penalty be imposed for the violations. As part of the Settlement, Respondent agreed to comply with the Public Utility Code and the Commission’s Regulations and Policies in the future. BTS agreed to a reduced civil penalty. Staff recommends that the Commission adopt the proposed Opinion and Order which approves the Settlement Agreement as filed. This matter was postponed until Public Meeting of December 20, 2007.

Pymatuning Independent Telephone Company and Dobson Cellular Systems, Inc., OSA-0268*, A-311067F7032. Joint Petition filed on September 26, 2007, for Approval of the Adoption of a Commercial Mobile Radio Services Agreement. No Comments were received. Staff recommends that the Commission adopt the proposed Opinion and Order granting the Joint Petition. Vote of 4-0 with no discussion.

Michael Strickhouser v. Metropolitan Edison Company, Inc., OSA-0271*, C-20077273. On January 12, 2007, Complainant alleged that he had experienced appliance damage due to high voltage when a Met Ed line failed; and that the problem would not have occurred if Met Ed maintained its facilities. By her Initial Decision issued July 16, 2007, ALJ Melillo sustained the Complaint to the extent that she ordered Met Ed to monitor its failed neutral connections by age and location, but dismissed the Complaint in all other respects. Exceptions were filed by Met Ed. Staff recommends that the Commission adopt the proposed Opinion and Order that grants the Exceptions in part, denies the Exceptions in part and modifies the Initial Decision. This matter was postponed until Public Meeting of December 20, 2007.

Petition of Peco Energy Company, OSA-0272*, P-00072260. On March 19, 2007, PECO filed its Petition for approval of an Alternative Energy Credit procurement process and cost recovery mechanism. The Recommended Decision of ALJ Chestnut was issued on September 12, 2007, which approved the Petition as modified. On October 2, 2007, the OSBA filed Exceptions to the Recommended Decision. PECO and PennFuture filed Replies to Exceptions. Staff recommends that the Commission deny the Exceptions and adopt the Recommended Decision which approves the Petition as modified. This matter was postponed until Public Meeting of December 6, 2007.

Bureau of Fixed Utility Services

Ironton Telephone Company, FUS-0506*, R-00072644. Supplement No. 109 to Tariff Telephone Pa. P.U.C. No. 2 filed September 7, 2007, by proposing to increase the non-recurring service maintenance visit charge to become effective on October 8, 2007. Staff recommends that the Commission adopt the proposed Order. This matter was postponed until Public Meeting of December 20, 2007.

Equitable Gas Company, FUS-1061*, A-121100F2002. Application for approval of the abandonment of gas service to eleven field gathering line customers located in Waynesburg, Greene County, Pennsylvania. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

Aqua Pennsylvania, Inc., FUS-1375*, S-00071216. Securities Certificate filed October 23, 2007, for the issuance of First Mortgage Bonds in a principal amount not to exceed $50,000,000. Staff recommends that the Commission adopt the proposed Order. Vote of 4-0 with no discussion.

Combined Bureau Agenda

PPL Gas Utilities Corporation, FUS-1059*, OTS-0027, R-00072571. Supplement No. 24 to Tariff Gas-Pa. P.U.C. No. 3, filed August 7, 2007, proposing to add a Low Income Usage Reduction Program for qualified low-income residential customers as well as institute a recovery mechanism for the costs associated with this program. Staff recommends that the Commission permit the filing to become effective January 1, 2008, consistent with the proposed Order.

PPL Gas Utilities Corporation, OTS-0027, R-00072571. Supplement No. 24 to Tariff Gas-Pa. P.U.C. No. 3, to become effective January 1, 2008, proposing to add a Low Income Usage Reduction Program Rider and increase distribution charges to include the LIURP Rider. Staff recommends that the Commission institute an Investigation of the filing. This was rejected with a vote of 4-0.

Office of Administrative Law Judge

John W. Mitchell v. Equitable Gas Company, ALJ-0181*, C-20077457. On March 14, 2007, a complaint was filed alleging a service dispute. Equitable filed an Answer and New Matter on April 2, 2007. On May 17, 2007, a hearing was held. The Commission reviewed ALJ Hoyer’s Initial Decision dismissing the Complaint. This matter was postponed until Public Meeting of December 20, 2007.

PA PUC v. PPL Gas Utilities Corporation and OCA (Intervenor); OSBA, ALJ-0185*, R-00072333, R-00072333C0001, R-00072333C0002, R-00072333C0003, R-00072333C0004. On June 1, 2007, pursuant to 52 Pa. Code § 53.64, PPL Gas submitted its Purchased Gas Costs Reconciliation Filing for the year ending November 30, 2008. On August 30, 2007, a Joint Settlement of Rate Proceeding was filed. Staff reviewed ALJ Jandebeur’s Recommended Decision approving the Settlement. Motion of Vice Chairman Cawley moving that the Joint Settlement of Rate Proceeding pursuant to 66 Pa. C.S. §1307(f) be modified to disallow the transportation rate increase while all other aspects of the Settlement be adopted as agreed by the parties, that PPL Gas Utilities be directed to file with the Secretary of the Comission and serve on all interested parties, within fifteen (15) days of the entry of an order, additional information to support its request for the rate increase it seeks to impose on transportation customers, that if no party objects to the information provided within ten (10) days after its submission, the additional information be admitted into the record as filed for further Commission consideration of its justness and reasonableness and that if a party objects to the information and its admission into the record, the matter be assigned to the Office of ALJ for further hearing on an expedited basis and that the OSA prepare an Order consistent with this Motion, is attached. Vote of 4-0 with no further discussion.

Courtney L. Gagnon v. UGI Utilities, Inc., ALJ-0190*, F-02225589. On May 24, 2007, UGI filed a complaint/appeal to a BCS decision issued on May 16, 2007. The BCS decision established a payment arrangement for Complainant after UGI terminated her services due to her failure to comply with two previous UGI issued payment arrangements. Complainant did not file an answer. On September 18, 2007, a hearing was held. Commission staff reviewed ALJ Salapa’s Initial Decision sustaining the complaint/appeal. This matter was postponed until Public Meeting of December 20, 2007.

PA PUC v. Little Washington Wastewater Co. – Twin Hills Division; PA PUC v. Little Washington Wastewater Co. – Rivercrest Division, ALJ-0191*, R-00072318, R-00072318C0001 through C0008, R-00072319, R-00072319C0001 through C0006. On April 10, 2007, Little Washington Wastewater Co. – Twin Hills & Rivercrest Division filed with the PUC Supplemental Nos. 35 and 36 to Tariff Sewer – Pa. PUC No. 1, respectively, to become effective July 11, 2007. On August 1, 2007, the Company filed Supplemental Nos. 46 and 47 to Tariff No. 1 to postpone the former supplemental tariff filings (35 & 36) until February 12, 2008. On September 11, 2007, a Joint Petition for Settlement was filed. On September 28, 2007, the Joint Parties filed an Amended Joint Petition for Settlement. Staff reviewed ALJ Jones’ Recommended Decision approving the Amended Settlement. Vote of 4-0 with no discussion.

ANNOUNCEMENTS

Shane Rooney is getting married.
Senate Committee praised the PUC during the latest meeting with them.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, DECEMBER 6, 2007 AT 10:00 A.M.

* Denotes Order