Highlights: PA PUC Public Session of July 17, 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 July 17, 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 filed in the Public Meeting Agenda and Session Memo binder.  The next regular Public Meeting is tentatively scheduled for Thursday, August 7, 2008 at 10:00 a.m.  The minutes of the Public Meeting of June 5, 2008, were, by a vote of 3-0, approved without modification, (Commissioner Powelson abstaining).

CASES OF SPECIAL INTEREST

1. PA PUC v. Total Environmental Solutions, Inc. and PA PUC v. Total Environmental Solutions, Inc. (Wastewater), OSA-0191, R-00072493, et al and Binding Poll, R-0072495, et al.  Exceptions to ALJ Dunderdale’s May 23, 2008 Recommended Decision filed by TESI and OCA.  Reply Exceptions filed by TESI, OCA and OTS.  Staff recommends that the Commission conduct a Binding Poll of the issues in this proceeding.  See attached Polling Sheets, for Commission votes.

1. West Penn Power d/b/a Allegheny Power, OSA-0197, P-00072342 and Binding Poll.  Petition for Approval of its Retail Electric Default Service Program and Competitive Procurement Plan.  Exceptions to ALJ Cocheres May 23, 2008 Initial Decision filed by various Parties.  Reply Exceptions were also filed.  See attached Polling Sheets for Commission Votes.

1. PA PUC v. AQUA Pennsylvania, Inc., OSA-0201, R-00072711, R-00072711C0001 et al, Non-Binding Poll.  Exceptions filed on July 3, 2008 and Reply Exceptions filed on July 10, 2008.  Staff recommends that the Commission conduct a Binding Poll of the issues in this proceeding.  See attached Polling Sheets for Commission votes.

Bureau of Transportation and Safety

1. All matters approved as submitted.

Director of Operations

1. All matters approved as submitted.

Bureau of Conservation, Economics and Energy Planning

1. Metropolitan Edison Company/Pennsylvania Electric Company Sustainable Energy Fund, 118239-CEP-0002, M-00031715F0004.  Letter/Petition, filed on July 1, 2008, by the for approval of the appointment of Mr. John W. Ubinger, Jr. to its Advisory Bond.  Staff recommends that the appointment be approved, consistent with the proposed Order.  Vote of 4-0 with no discussion.

Office of SpecIal Assistants

1. Verizon PA Inc., Verizon North Inc., et al v. CTSI, LLC, (Code Violation) OSA-0180*, C-20077332.  On January 29, 2007, Complainant filed a Formal Complaint against CTSI alleging a violation of the Public Utility Code, which prohibits a CLEC from charging access rates higher than those charged by an incumbent local exchange carrier in the same service territory, absent a demonstration that costs justify a higher access rate.  Exceptions to ALJ Colwell’s February 29, 2008 Recommended Decision, filed by CTSI and Verizon on March 20, 2008.  Reply Exceptions filed by CTSI and Verizon on March 21, 2008.  Staff recommends that the Commission adopt the proposed Opinion and Order granting Verizon’s Exceptions and denying CTSI’s Exceptions and modifying in part the ALJ’s Recommended Decision.  This matter was postponed until Public Meeting of August 7, 2008.

1. Verizon PA Inc., Verizon North Inc., et al v. Penn Telecom, Inc., (Code Violation), OSA-0181*, C-20066987.  On October 23, 2006, Complainant filed a Formal Complaint against PTI alleging a violation of the Public Utility Code, which prohibits a CLEC from charging access rates higher than those charged by an incumbent local exchange carrier in the same service territory, absent a demonstration that costs justify a higher access rate.  Exceptions to ALJ Wesimandel’s December 14, 2007 Initial Decision were filed by PTI on January 14, 2008.  Reply Exceptions were jointly filed by various Parties.  Staff recommends that the Commission adopt the ALJ’s Initial Decision, consistent with the proposed Opinion and Order.  This matter was postponed until Public Meeting of August 7, 2008.

1. Pennsylvania Public Utility Commission v. T.W. Phillips Gas and Oil Company, OSA-0196*, R-2008-2013026, C-2008-2029011, C-2008-2033895, C-2008-2036427, C-2008-2033706.  A Recommended Decision was issued June 5, 2008, wherein ALJ’s Nemec and Dunderdale recommended that TWP’s purchased gas cost filing, as well as the proposed capacity release sharing mechanism, be approved.  Exceptions were filed by the OCA on June 16, 2008.  Reply Exceptions were filed by the OTS, the OSBA and TWP on June 23, 2008.  Staff recommends that the Commission adopt the ALJ’s Recommended Decision, consistent with the proposed Opinion and Order.  Vote of 3-1 with Commissioner Christy dissenting.  Dissenting Statement of Commissioner Christy attached.

1. Susan K. Pickford, et al. v. Pennsylvania-American Water Company, OSA-0200*, C-20078029, et al.  On April 14, 2008, the Pennsylvania Department of Environmental Protection filed a Motion in Limine that was granted by ALJ Chestnut in her Prehearing Order #1 dated May 6, 2008.  On May 16, 2008, the Chloramine Information Center filed a Petition for Interlocutory Review and Answer to Material Question and a Request for Stay of the Proceedings to the Extent Necessary.  The DEP, the Office of Consumer Advocate and PAWC filed briefs in response to the Petition on May 23, 2008.  The CIC filed a brief in support of its Petition on May 27, 2008.  Staff recommends that the Commission adopt the proposed Opinion and Order that answers the Material Question in the negative and modifies the ALJ's Prehearing Order #1.  Motion of Vice Chairman Cawley that the Material Question be answered in the negative, that the decision of the ALJ to grant the Motion in Limine be affirmed, that granting the Motion in Limine not be regarded as precluding the parties from introducing non-public health evidence that is relevant to issues within the Commission's jurisdiction as outlined in its Order of March 20, 2008 and that the Office of Special Assistants prepare an order consistent with this Motion, is attached.  Commissioners Pizzingrilli and Christy concur in result only.  Vote of 4-0 with no further discussion.

Bureau of Fixed Utility Services

1. Comcast Business Communications, LLC d/b/a Comcast Long Distance, 2029089-FUS-0005, A-2008-2029089 et al.  Application filed January 31, 2008 for approval to offer, render, furnish, or supply telecommunication services as a Competitive Local Exchange Carrier the Service Areas of Windstream Pennsylvania, Inc., Consolidated Communications of Pennsylvania Company, Conestoga Telephone and Telegraph Company, and Commonwealth Telephone Company, LLC d/b/a Frontier Communications Commonwealth Telephone Company.  Staff recommends that the Commission adopt the proposed Order.  Vote of 4-0 with no discussion.

Combined Bureau Agenda

1. Can Do, Inc., 2039934-FUS-0006, R-2008-2039934, OTS-0011, R-2008-2039934.  Supplement No. 15 to Tariff Wastewater-Pa. P.U.C. No. 3, voluntarily postponed to July 18, 2008, proposing an annual increase in rates of $362,010.  FUS recommends that the Commission approve the filing, consistent with the proposed Order.  OTS recommends that the Commission institute an Investigation, noting that the filing will be suspended by operation of law for a period of seven months.  Vice Chairman Cawley moved to adopt the FUS recommendation and reject the OTS recommendation.  Vote of 4-0 with no further discussion.

Law Bureau

1. Verizon Pennsylvania Inc. and Verizon North Inc., L-0063*, P-00072348,
   I-00940034.  Joint Petition for a Waiver of the Commission's Order Dated May 9, 1997; Joint Petition of Verizon Pennsylvania and Verizon North Inc. for a Waiver of the Commission's Regulation Governing Toll Pre-subscription, 52 Pa. Code Section 64.191 (e).  Staff recommends that the Commission grant the Joint Petitions, consistent with the proposed Order.  This matter was postponed until Public Meeting of August 7, 2008.

1. Penn Telecom, Inc. d/b/a Consolidated Communications Penn Telecom,
   L-0070*, M-2008-2045117.  Request for 1,000 Telephone Numbers in the 412 NPA, Pittsburgh Zone 4 rate center.  Staff recommends that the Commission grant the Petition for numbering resources, consistent with the proposed Order.  Vote of 4-0 with no discussion.

1. Performance Metrics & Remedies, L-0073*, M-00011468F0013.  2008 Guideline Updates.  Staff recommends that the Commission approve the updates, consistent with the proposed Order.  Vote of 4-0 with no discussion.

1. Caroline Maitland v. UGI Penn Natural Gas Inc. (UGI), ALJ-0032*,
   C-20078353.  On September 24, 2007, a complaint was filed alleging an inability to pay for gas service.  UGI filed its answer on October 17, 2008.  On January 17, 2008, a hearing was held.  Initial Decision of Special Agent Vero sustained complaint.  Motion of Commissioner Christy to reverse the Initial Decision consistent with the Motion and that the OSA prepare the necessary Opinion and Order.  Commissioner Pizzingrilli concurs in result only.  Vote of 4-0 with no further discussion.  Motion of Commissioner Christy is attached.

1. PA PUC, OCA, OSBA, Gerard J. McEnery v. National Fuel Gas Distribution Corporation, ALJ-0037*, R-2008-2012502, C-2008-2032679, C-2008-2033678, C-2008-2033842.  On February 1, 2008, NFG filed Supplement No. 81 to Tariff Gas-Pa. P.U.C. No. 9 and a Tariff Addendum.  NFG also filed the remainder of its direct case, consisting of prepared statements and associated exhibits covering NFG's gas procurement policy, and the computation of rates.  Complaints were filed.  On May 20, 2008, a Stipulation in Settlement of Rate Investigation Pursuant to 66 Pa. C.S. §1307(f) was filed.  Staff reviewed ALJ Nene's Recommended Decision approving the Settlement and dismissing the complaints.  Vice Chairman Cawley dissented, stating that the parties failed to demonstrate the rates are just and reasonable and that the settlement benefits all parties.  Also NFG used historical data when it benefited them (to increase charges to MMF customers but reducing LAUF percentages.)  Vote of 3-1 with no further discussion.  A copy of the Dissenting Statement is attached.

1. UGI Utilities, Inc., ALJ-0038*, P-2008-2022931.  Petition of Electric Division for Expedited Approval of a Default Service Procurement, Implementation and Contingency Plan.  On February 12, 2008, UGI filed the above mentioned Plan pursuant to 52 Pa. Code §§54.181-54.189, for the time period January 1, 2010 to May 31, 2014.  The Petition is for the purpose of commencing procurement of energy at Market prices which were projected to be more favorable than subsequent market prices.  On May 2, 2008, a Joint Petition for Settlement was filed.  Staff reviewed ALJ Melillo's Recommended Decision approving the Settlement, as revised on May 7, 2008, without modification, including all terms and conditions.  Statement of Vice Chairman Cawley applauding parties for reaching unique settlement, but requesting written responses to questions (set forth in the Statement) regarding some details of the plan which were not provided.  Commissioner Powelson and Commissioner Pizzingrilli associated themselves with Vice Chairman Cawley's Statement.  Vote of 4-0 with no further discussion.  A copy of the Statement is attached.

Office of Administrative Law Judge

1. Diana Ruiz v. PPL Electric Utilities Corporation, ALJ-0042*, F-02230013.  On August 22, 2007, a complaint was filed alleging a billing dispute.  PPL filed its Answer on October 4, 2007.  A hearing was held on November 28, 2007.  Commission reviewed ALJ Jandebeur's Initial Decision dismissing the complaint.  Oral Statement by Vice Chairman Cawley simply asking PPL to take a look at this customer's account and advising that the situation cries out for a solution and asking if there was any customer assistance that could be provided to this customer.  Vote of 4-0 with no further discussion. 

CARRY-IN AGENDA

Law Bureau

1. Performance Metrics & Remedies (PMO III F0011) 2008 PA, L-0081*,
   M-00011468F0011.  Petition for Reconsideration of the Commission's Order entered June 27, 2008, filed by Verizon Pennsylvania Inc. on July 15, 2008.  Staff recommends that the Commission grant the Petition pending review of and consideration in the merits.  Vote of 4-0 with no discussion.

NO ANNOUNCEMENTS

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, AUGUST 7, 2008 AT 10:00 AM

* Denotes Order