Highlights: PA PUC Public Session of August 21, 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 August 21, 2008 Public Meeting of the Pennsylvania Public Utility Commission (“Commission”), the Commissioners adopted Staff’s recommendations for action by a vote of 5-0 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, September 11, 2008 at 10:00 a.m.  The minutes of the Public Meeting of July 17, 2008, were, by a vote of 5-0, approved without modification.

Bureau of Transportation and Safety

1. All matters approved as submitted.

Bureau of Audits

1. All matters approved as submitted.

Director of Operations

1. All matters approved as submitted.

Office of Special Assistants

1. Pennsylvania Public Utility Commission, Bureau of Transportation and Safety v. David Joseph Mahalak (Settlement Agreement), 1202330-OSA-0004, A-00122110C0601.  On February 21, 2008, BTS and Respondent filed a Settlement Agreement in order to satisfy the Complaint filed by BTS against Respondent averring that Respondent had transported passengers for compensation in Pennsylvania while not then holding a Certificate of Public Convenience.  As part of the Settlement, Respondent agreed to comply with the Public Utility Code and the Commission's Regulations and Policies in the future, and BTS agreed to a reduced civil penalty.  Staff recommends that the Commission adopt the proposed Opinion and Order approving the Settlement Agreement as filed.  This matter was postponed until Public Meeting of September 11, 2008.

1. PA PUC et al v. UGI Penn Natural Gas, Inc. and UGI Utilities, Inc.—Gas Division, 2039417-OSA-0016, R-2008-2039284 et al.  Hess corporation filed Petitions to Intervene in both proceedings.  Hess also filed Exceptions on August 7, 2008, and the Companies filed Replies to Exceptions on August 12, 2008.  Staff recommended that the Hess' Petition to Intervene be denied, that the Exceptions of Hess be denied, and that the ALJ's Recommended Decision be adopted, consistent with the proposed Opinion and Order.  Motion of Chairman Cawley moving that the Recommended Decision be reversed consistent with the Motion, that the Exceptions of Hess Corporation to the Recommended Decision be granted, that Hess's Petition to Intervene be granted and that the OSA prepare and Opinion and Order consistent with the Motion is attached.  Vote of 5-0 with no further discussion.

Bureau of Fixed Utility Services

1. All matters approved as submitted.

Combined Bureau Agenda

1. The Newtown Artesian Water Company, 2042293-FUS-0011, R-2008-2042293, OTS-0018, R-2008-2042293.  Supplement No. 58 to Tariff Water – Pa. P.U.C. No. 9, filed July 11, 2008 proposing an annual increase in rates of $695,802, to become effective September 9, 2008.  Staff recommends that the Commission institute an Investigation and allow the filing to be suspended by operation of law through April 9, 2009; and that the case be referred to the OALJ, consistent with the proposed Order.  Vote of 5-0 with no discussion.

1. Equitable Gas Company, 2029325-FUS-0009, R-2008-2029325, OTS-0019, R-2008-2029325.  Application filed June 30, 2008, proposing an annual increase in rates of $51.9 million, to become effective August 29, 2008.  Several Complaints were filed.  Staff recommends that the Commission institute an Investigation and allow the filing to be suspended by operation of law for a period of six months and that the case be referred to the OALJ, consistent with the proposed Order.  Vote of 5-0 with no 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 for a Waiver of the Commission's Regulation Governing Toll Presubscription, 52 Pa. Code Section 64.19(e).  Staff recommends that the Commission grant the Petitions, consistent with the proposed Order.  Motion of Chairman Cawley moving that the Law Bureau's recommendation be adopted as modified by this Motion, that the Verizon Companies are directed to appropriately modify their respective "welcome package" informational letters that are sent to new customers, The Verizon Companies are directed to provide the Commission's Bureau of Consumer Services with copies of the new marketing "script" language and the modified "welcome package" information letter text for review, the Law Bureau prepare an appropriate Tentative Order consistent with this Motion soliciting further comment on the actions of the Commission within a ten (10) day period and that if no comments are received, the Tentative Order shall become final by operation of law, is attached.  The Dissenting Statement by Vice Chairman Christy and the Dissenting Statement by Commissioner Gardner are attached.  Vote of 3-2 with Vice Chairman Christy and Commissioner Gardner dissenting.

1. Buffalo Valley Telephone Company, Conestoga Telephone and Telegraph Company, Denver and Ephrata Telephone and Telegraph Company, and D&E Systems, Inc., L-0086*, P-2008-2051138.  Petition for Waiver of Call Recording Prohibition Set Forth at 52 Pa. Code § 63.137(2) to Permit the Recording of Customer Conversations with Telephone Company Service Representatives.  Staff recommends that the Commission grant the Petition, consistent with the proposed Order.  This matter has been postponed until Public Meeting of September 11, 2008.

1. Pennsylvania American Water Company's Main Breaks, L-0087*, I-00060112.  Investigation in the Pittsburgh Area and Related Incidents Statewide – Phase II.  Staff recommends that the Commission adopt the proposed Tentative Order that, among other things, releases the Investigative Report to the public.  This matter has been postponed until Public Meeting of September 11, 2008.

Office of Administrative Law Judge

1. Cheri Hessou v. UGI Utilities, Inc., ALJ-0040*, F-02179607.  On August 27, 2007, a complaint was filed alleging a billing dispute.  UGI filed its Answer on September 17, 2007.  A hearing was held on March 11, 2008.  Commission staff reviewed ALJ Salapa's Initial Decision sustaining the complaint, in part, to the extent of imposing a civil penalty against UGI for failing to obtain an actual meter reading.  Motion by Chairman Cawley moving that this case be remanded to the OALJ and that Complainant be given one more opportunity to subpoena her witnesses in compliance with the requirement that a $5.00 witness fee plus mileage be paid to the witness so that they may appear at the remand hearing and provide testimony and evidence and that the Initial Decision of the ALJ be reversed consistent with this Motion, is attached.  Also attached is the Dissenting Statement of Commissioner Pizzingrilli.  Vote of 3-2 with Commissioners Pizzingrilli and Powelson dissenting.

1. PA PUC, OCA, et al. v. The Peoples Natural Gas Company d/b/a Dominion Peoples (PNG), ALJ-0044*, R-2008-2022206, C-2008-2034062, C-2008-2035009, C-2008-2035803, C-2008-2036071, C-2008-2037002, C-2008-2042134, C-2008-2043643, C-2008-2043650, C-2008-2044023, C-2008-2044073, C-2008-2044220, C-2008-2025887.  On April 1, 2008, PNG filed Supplement No. 96 to its Tariff Gas-PA PUC No. 43 pursuant to Section 1307(f)(3) of the Public Utility Code, 66 Pa. C.S. § 1307(f)(3), which proposed rates for its recovery of natural gas costs for the period of October 1, 2008 through September 30, 2009.  On July 3, 2008, a Joint Petition for Approval of Settlement was filed.  Staff reviewed ALJ Meehan's Recommended Decision approving the Petition.  Statement of Chairman Cawley is attached.  Vote of 5-0 with no further discussion.

1. PA PUC, et al. v. Equitable Gas Company, ALJ-0047*, R-2008-2021160,
   C-2008-2034000, C-2008-2034099, C-2008-2036012, C-2008-2036023, C-2008-2037346, C-2008-2041432, C-2008-2047807.  On April 1, 2008, Equitable filed a proposed tariff supplement to its Tariff Gas—Pa. P.U.C. No. 22 containing changes in the Purchased Gas Cost included in tariff rates resulting from Equitable's projected cost of gas purchased for the 12-month period fro October 1, 2008 to September 30, 2009.  A hearing was held on June 25, 2008.  On July 11, 2008, a Joint Settlement Agreement was filed.  Hess Corporation and Dominion Retails do not object to the Settlement  Review of ALJ Corbett’s Recommended Decision approving the Settlement.  Statement by Chairman Cawley is attached.  Vote of 5-0 with no further discussion.

1. David M. Zollars v. The Peoples Natural Gas Company, d/b/a Dominion Peoples (PNG), ALJ-0048*, F-02195697.  On October 26, 2007, a complaint was filed alleging a billing dispute.  On November 21, 2007, PNG filed its answer.  PNG filed an amended answer, together with new matter, on April 10, 2008.  On June 5, 2008, a hearing was held.  Commission staff reviewed ALJ Corbett's Initial Decision dismissing the complaint.  Motion of Commissioner Gardner moving that the Recommended Decision of ALJ Corbett is modified consistent with this Motion and that the matter be referred to the OSA for the preparation of an Opinion and Order consistent with this Motion, is attached.  Vote of 5-0 with no further discussion.

1. Christina K. Sayre v. UGI Utilities, Inc., (Complaint Appellant) ALJ-0050*,
   F-02292619.  On October 15, 2007, UGI filed a complaint/appeal alleging that under Section 1407 of the Public Utility Code, 66 Pa. C.S. §1407, that neither BCS nor the Commission has authority to provide Complainant with yet another payment agreement because she defaulted on two or more payment agreements.  On March 25, 2008, a hearing was held.  Commission staff reviewed ALJ Nguyen's Initial Decision stating UGI failed to sustain its burden of proof, and reinstated the BCS determination, if it is consistent with the Initial Decision.  That matter was postponed until Public Meeting of September 11, 2008.

1. Natalie Volgstadt v. UGI Penn Natural Gas, Inc., ALJ-0051*, F-02266429.  On September 4, 2007, a complaint was filed alleging an inability to pay, and that there were incorrect charges on her bill.  UGI filed an answer on September 24, 2007.  A hearing was held on December 12, 2007.  Commission staff reviewed ALJ Jandebeur's an Initial Decision dismissing the complaint with prejudice for failure to prosecute.  Motion of Commissioner Pizzingrilli moving that the Initial Decision is modified consistent with this Motion and that the OSA prepare the appropriate Opinion and Order is attached.  Vote of 5-0 with no further discussion.

1. Cynthia Contreras v. PGY and DARIO PADILLA, Indispensable Party,
   ALJ-0052*, F-02036010.  On February 20, 2007, a complaint was filed alleging a billing dispute.  On March 19, 2007, PGW, through its counsel, filed an answer.  On December 11, 2007, a hearing was held.  Commission staff reviewed ALJ Fordham's Initial Decision dismissing the complaint with respect to the allegations concerning foreign load, requiring the tenant to pay the bill in full, and sustaining the other allegations.  Motion of Commissioner Gardner moving that the Recommended Decision of ALJ Fordham is modified consistent with the Motion and that the matter be referred to OSA for the preparation of an Opinion and Order consistent with the Motion is attached.  Vote of 5-0 with no further discussion.

CARRY-IN AGENDA

Bureau of Transportation and Safety

1. All matters approved as submitted.

Office of Special Assistants

1. All matters approved as submitted.

Bureau of Fixed Utility Services

1. All matters approved as submitted.

Commissioners

1. Motion of Commissioner Kim Pizzingrilli in Re Gas Meter Location, C-0005.  Motion moves that the Bureau of Transportation and Safety – Gas Safety Division, institute an investigation and that the Law Bureau and FUS provide legal and technical assistance as may be needed in the investigation, and as part of the investigation the Gas Safety Division should, at a minimum, review existing regulations and tariff language on meter location and that the OCA, OSBA and all natural gas distribution companies provide notice of this investigation and the opportunity to provide relevant information to the Commission to assist in the preparation of a recommendation and that the recommendation should address what, if any, revisions or supplements to Commission regulations, policies and natural gas distribution utility tariffs are required, is attached.  Vote of 5-0 with no further discussion.

ANNOUNCEMENTS

1. Retirement – Susan Mean – Executive Secretary to OCA (Sheryl Delozier).

1. Public Hearing – September 11, 2008 – To increase Commission awareness of energy usage and policy.  12:30 p.m. – Hearing room 1 – Open to public, all are welcome.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, SEPTEMBER 11, 2008 AT 10:00 AM 

* Denotes Order