Highlights: PA PUC Public Session of May 22, 2008

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 May 22, 2008 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 hereto and to the original of this Session Memo.  The next regular Public Meeting is tentatively scheduled for Thursday, June 5, 2008 at 10:00 a.m.  The minutes of the Public Meeting of April 9, 2008, were unanimously approved without modification.

Bureau of Transportation and Safety

1. All matters approved as submitted.

Bureau of Audits

1. Pennsylvania Electric Company and Metropolitan Edison Company, AUD-0044, M-2008-2036188, M-2008-2036197.  Transmission Service Charge Rates effective June 1, 2008.  Staff recommends that the Commission approve Pennsylvania Electric Company's proposed Supplement No. 5 and reject Metropolitan Edison Company's proposed Supplement No. 5 and approve Metropolitan Edison Company's proposed Supplement No. 6; approve Met-Ed's deferral and recovery plan for a portion of the under collection of transmission cost incurred during the fifteen months ended March 31, 2008; approve Met-Ed's deferral of a portion of the transmission costs it anticipates to incur during the application period beginning June 1, 2008.  Motion of Commissioner Pizzingrilli, assigning matter to OALJ and directing additional questions to be answered.  Statement of Commissioner Christy (concurs in part, dissents in part) endorsing opening of investigation, but dissents from majority's approval of Transmission Service Charge (TSC) rate adjustments.  Commissioner Christy's concerns are:  (1) congestion should not be included in TSC; (2) magnitude of rate increase permitted to go into effect prior to an evidentiary hearing; (3) spiraling increases in PJM charges.  Vote of 4-0 without further comment.

Director of Operations

1. All matters approved as submitted.

Office of Special Assistants

1. Tod and Lisa Shedlosky v. Pennsylvania Electric Company (Billing Dispute), OSA-0090R*, C-20066937.  Complainants alleged that Penelec improperly charged them to relocate a pole on their property.  On November 6, 2006, Penelec filed its answer and New Matter.  By Initial Decision issued August 2, 2007, ALJ Weismandel dismissed the Complaint.  Complainants filed Exceptions and Penelec filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order granting the Complainant's Exceptions in part; and adopting in part and reversing in part the Initial Decision.  Vote of 3-0 with recusal of Vice Chairman Cawley.

1. PA PUC Law Bureau Prosecutory Staff v. Pike County Light and Power Company (Informal Investigation), OSA-0127*, M-00061973.  On July 19, 2006, the Commission’s Law Bureau Prosecutory Staff and the Bureau of Consumer Services initiated an informal investigation to determine the cause, effect and resolution of an error in the ratchet billing rate applied to non-residential customers of PCL&P.  Prosecutory Staff and PCL&P representatives conducted settlement negotiations concerning the billing error, which lead to a Settlement Agreement of the issues involved.  Staff recommends that the Commission adopt the proposed Opinion and Order that issues the proposed Settlement Agreement for Comment.  Motion of Chairman Holland to modify Settlement Agreement to apply $35,300 civil penalty to Company's Hardship Fund (Neighbor Fund).  Vote of 4-0 with no further discussion.

1. Verizon Pennsylvania Inc. and Verizon North Inc., (Petition for Reconsideration), OSA-0130*, P-00042092, P-00062210.  On December 17, 2007, Verizon Pennsylvania Inc. and Verizon North Inc. filed a Petition for Reconsideration of the Commission’s Opinion and Order entered November 30, 2007.  On January 3, 2008, Broadview Networks, Inc., One Communications Corp., Penn Telecom, Inc. and XO Communications filed its Opposition to Verizon’s Petition.  By Order entered December 20, 2007, the Commission granted Reconsideration, pending review of and consideration on the merits.  Staff recommends that the Commission adopt the proposed Opinion and Order that grants in part and denies in part, Verizon’s Petition for Reconsideration.  Vote of 4-0 without discussion.

1. Verizon Pennsylvania Inc.’s 2006 Price Change Opportunity (PCO) Verizon North Inc.’s 2006 PCO, OSA-0154*, R-00051228, R-00051227.  Verizon and OSBA filed a Petition on April 16, 2008 requesting approval of a Joint Settlement Agreement to become effective upon withdrawal of Verizon’s appeal to Commonwealth Court.  By Secretarial Letter of May 2, 2008, the Commission provided notice and opportunity to be heard regarding the Settlement Petition.  No Comments in opposition to the Settlement Petition were received.  Staff recommends that the Commission adopt the proposed Opinion and Order addressing the issues in this case.  Motion of Vice Chairman Cawley to adopt settlement in its entirety, contingent upon Verizon's withdrawal of Commonwealth Court appeal, file revised 2008 PCO submissions and tariff supplements within 10 days to assure accurate 3015(c)(2) assessments, file amended Chapter 30 Plans within 90 days and that settlement applies only to two Verizon companies.  Vote of 4-0 with no further discussion.

Bureau of Fixed Utility Services

1. Level 3 Communications, LLC, 2031943-FUS-0002, A-2008-2031943 et al.  Application filed February 28, 2008 for approval to offer, render, furnish or supply telecommunication services as a Competitive Local Exchange Carrier in various service areas.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

1. Pennsylvania Telecommunications Relay Service Surcharge, 2037418-FUS-0002, M-00900239F0017.  Annual Recalculation.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

1. Conestoga Telephone and Telegraph Company, 2038407-FUS-0005, R-2008-2038407, R-2008-2038760.  Supplement No. 223 to Tariff-Telephone Pa. P.U.C. No. 10 filed April 24, 2008, and Tariff Revisions to Tariff-Telephone Pa. P.U.C. No. 180A filed April 25, 2008, by Verizon Pennsylvania Inc., proposing to modifying the boundaries of the Boyertown, Palmerton and Sassamansville exchange areas to become effective June 24, 2008.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

1. Aqua Pennsylvania, Inc., 1206298-FUS-0007, A-210104F0080.  Application filed June 27, 2007, later reassigned on April 3, 2008, to the Bureau of Fixed Utility Services, for approval to begin to offer, render, furnish, or supply water service to the public in an additional portion of Dallas Township, Luzerne County.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

1. Aqua Pennsylvania, Inc., 2028444-FUS-0004, A-2008-2028444.  Application filed March 4, 2008 for approval to begin to offer, render, furnish, and supply water service to the public in an additional portion of Pocopson Township, Chester County.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

1. Bureau of Fixed Utility Services, 2040359-FUS-0003, M-2008-2040359.  Report to the Commission regarding Quarterly Earnings of Pennsylvania Utilities for the Quarter ended December 31, 2007.  Staff recommends that the Commission make the Earnings Report public.  Vote of 4-0 with no discussion.

1. Yukon-Waltz Telephone Company and Yukon-Waltz Communications, Inc., 2014207, A-2008-2014207, A-2008-2014281.  Joint Application for approval of the transfer of control Laurel Highland Total Communications, Inc.  Staff recommends that the Commission approve the proposed Order.  Vote of 4-0 with no discussion.

Combined Bureau Agenda

1. PECO Energy Company, 2028394-FUS-0006, OTS-0006, R-2008-2028394, R-2008-20028394, Supplement No. 71 was filed to Tariff Gas-Pa. P.U.C. No. 2, to become effective May 30, 2008, proposing an annual increase in rates of $98.3M.  Staff recommends that the Commission institute an Investigation, noting that the filing will be suspended by operation of law until December 31, 2008; and that the case be assigned to the OALJ, consistent with the proposed Order.  Motion of Chairman Holland for adoption of FUS recommendation and adoption of OTS recommendation to the extent consistent with FUS.  Vote of 4-0 with no further discussion.

1. NRG Energy Center Harrisburg, LLC, 2028395-FUS-0006, OTS-0007, R-2008-2028395, G-2008-2034303, P-2008-2034301, R-2008-2028395.  Supplement No. 39 to Tariff Steam-Pa. P.U.C. No. 4, filed to become effective May 31, 2008, proposing an annual increase in rates of approximately $1.875M.  Staff recommends that the Commission institute an Investigation, noting that the Tariff will be suspended by operation of law until December 31, 2008; that the Petition for Approval of Modifications to Affiliated Interest Agreements be consolidated into the rate case; and that the filings be assigned to the OALJ, consistent with the proposed Order.  Motion of Chairman Holland for adoption of FUS recommendation and adoption of OTS recommendation to the extent consistent with FUS.  Vote of 4-0 with no further discussion.

Law Bureau

1. Revision of 52 Pa. Code, Chapter 57, L-0021*, L-00040167.  Pertaining to adding Inspection Maintenance, Repair and Replacement Standards for Electric Distribution Companies.  Staff recommends that the Commission adopt the Final Rulemaking Order, to be published in the Pennsylvania Bulletin.  Motion of Commissioner Christy for additional review of neutral connection failure practices by soliciting comments of EDC practices.  Statement of Commissioner Pizzingrilli that rules will serve the public interest.  Vote of 4-0 with no further discussion.

1. Alternative Energy Portfolio Standards (AEPS) Act, L-0038 R*, L-00050174.  Final Omitted Rulemaking Order for Implementation of Act 35, of 2007, amendments to the Act in the Net metering and Interconnection Rules at 52 Pa. Code §§ 75.1, et seq.  Staff recommends that the Commission adopt the proposed Order granting the Petition for Numbering Resources.  Joint Motion of Vice Chairman Cawley and Commissioner Christy stating amendment to Section 75.13(c).  Dissenting Statement of Commissioner Pizzingrilli that legislative intent should control interpretation.  Vote of 3-1 with no further discussion.

1. OCA, L-0046*, P-00021985.  Petition filed October 2, 2002, for Rulemaking To Amend 52 Pa. Code Chapter 63 (Relating to Telephone Service).  On April 2, 2008, OCA filed a Petition for Leave to Withdraw the Petition for Rulemaking.  Staff recommends that the Commission approve the Petition for Leave to Withdraw, consistent with the proposed Order.  Joint Statement of Vice Chairman Cawley and Commissioner Christy, noting PUC's continuing authority of quality of service matters.  Vote of 4-0 with no further discussion.

1. Rulemaking, L-0047*, L-00050173, M-00031703.  Re:  Proposed Revisions To Commission Regulations Governing Extended Area Service (EAS) At 52 Pa. Code §§63.71-63.77.  Staff recommends that the Commission adopt the Final Regulations addressing the Proposed Rulemaking and Comments filed in the proceeding and that the Final Rulemaking Order be published in the Pennsylvania Bulletin.  Motion of Commissioner Pizzingrilli that rulemaking closed, Law Bureau convene a working group to develop a recommendation for PUC within 120 days given considerable changes in industry.  Vote of 4-0 with no further discussion.

1. Rulemaking to Permit Electronic Filing, L-0048*, L-00070187.  Staff recommends that the Commission adopt the proposed Final Rulemaking Order, to be published in the Pennsylvania Bulletin.  Statement of Commissioner Pizzingrilli.  Vote of 4-0 with no further discussion. 

Office of Administrative Law Judge

1. Jacqueline Wells v. UGI Penn Natural Gas, Inc., ALJ-0019*, F-02271091.  Complainant alleged service was improperly terminated and she is appealing a prior informal BCS payment agreement.  UGI filed an answer denying the complaint was improperly terminated.  A hearing was held on January 8, 2008.  Commission reviewed ALJ Jandebeur’s Initial Decision dismissing the complaint.  Motion of Commissioner Christy deleting Conclusion of Law No. 3 from ALJ decision.  Statement of Commissioner Pizzingrilli concurring in result only.  Vote of 4-0 with no further discussion.

1. Bradley and Cynthia Houseknect v. Beaver Lake Sewer Company,
   ALJ-0022*, C-20077440.  Complaint filed March 7, 2007, alleging raw sewage from the Respondent’s system leaked onto Complainant’s property.  A Hearing was held June 12, 2007.  Staff reviewed ALJ Jandebeur’s Initial Decision served on December 12, 2007.  Motion of Commissioner Christy agreeing with ALJ's reasoning but disagreeing that customer must still pay its bill.  Dissenting Statement of Commissioner Pizzingrilli agreeing with ALJ that bill due under an approved tariff should not be nullified.  Vote of 3-1 with no further discussion.

1. Terry Lovelace (deceased) Christa Lovelace (spouse) v. Pike County Light & Power Company, ALJ-0028,C-20077899.  On July 2, 2007, a complaint was filed.  On July 23, 2007, Pike County filed its Answer.  A hearing was held on September 27, 2007.  The parties were able to reach an agreement Staff reviewed ALJ Jandebeur's Initial Decision approving the agreement.  Statement of Commissioner Pizzingrilli noting that a payment arrangement as part of settlement agreement is not a "Commission established payment arrangement.  Statement suggests that in such instances, the utility file a certificate of satisfaction.  Vote of 4-0 without further discussion.

CARRY-IN AGENDA

Law Bureau

1. Intrastate Access Charges and Intralata Toll Rates of Rural Carriers and the Pennsylvania Universal Service Fund, L-0050 R*, I-00040105, et al.  Investigation and Petition for Reconsideration filed by Sprint, on May 8, 2008; and Petition for Reconsideration and Clarification filed by AT&T on May 9, 2008.  Staff recommended that the Commission grant the Petitions, subject to subsequent review on the merits.  Vote of 4-0 with no discussion.

Commissioners

1. Motion of Chairman Wendell F. Holland in re:  Application of Equitable Resources, Inc., C-0004, A-121000F0006, G-20071218.  Chairman Holland notes reorganization into a holding company structure and is convinced that it is time to approve the reorganization as in the public interest.  Vote of 4-0 with no further discussion.

ANNOUNCEMENTS

1. Employee recognition week.
2. Hosting of 2 employees from Serbia regulatory agency.
3. Recognize our Veterans.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, June 5, 2008 AT 10:00 AM

* Denotes Order