Highlights: PA PUC Public Session of November 6, 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 November 6, 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, November 13, 2008 at 10:00 a.m.  The minutes of the Public Meeting of October 9, 2008, were, by a vote of 5-0, approved without modification.

CASES OF SPECIAL INTEREST

1. Pennsylvania Public Utility Commission v. Trans-Allegheny Interstate Line Company (TrAILCo), 1204960-OSA, A-110172 et al, G-00071229.  TrAILCo has filed five separate Applications.  Evidentiary hearings were held.  The ALJ issued a Recommended Decision denying the Applications.  Exceptions and Reply Exceptions were filed.  On September 25, 2008, a Settlement Agreement was filed by TrAILCo.  Comments on the Settlement were filed by the OCA, OTS, the ECC and West Penn Power Industrial Intervenors.  Staff recommends that the Commission conduct a Binding Poll of the issues in this proceeding.  This matter has been postponed until the Public Meeting of November 13, 2008.

Bureau of Transportation and Safety

1. All matters approved as submitted. 

BUREAU OF ADMINISTRATIVE SERVICES

1. All matters approved as submitted.

Bureau of Audits

1. PA American Water Company, 2063484-AUD, D-2008-2063484.  Stratified Management and Operations Audit.  Staff recommends that the Commission make the audit report and PAWC's Implementation Plan public.  Statements by Vice Chairman Christy and Commissioner Powelson are attached.  Vote of 5-0 with no further discussion.

Bureau of Consumer Services

1. All matters approved as submitted.

Bureau of Conservation, Economics and Energy Planning

1. Metropolitan Edison Company/Pennsylvania Electric Company, 1184239-CEP, M-00031715F0004.  Letter/Petition by Met-Ed/Penelec Sustainable Energy Fund for Approval of the appointment of Mr. Samuel E. Hepfer, Jr. to its Advisory Board.  Staff recommends that the Commission approve the proposed Order naming Mr. Samuel E. Hepfer, Jr. to the Advisory Board.  Vote of 5-0 with no discussion.

Office of Special Assistants

1. Richard Kaufman v. Verizon Pennsylvania Inc., 1196789-OSA, C-20055680.  Complainant filed a Formal Complaint alleging, inter alia, that his telephone line had been unusable due to noise on the line.  Verizon filed an Answer denying the material allegations.  ALJ Nemec issued his Initial Decision sustaining the Complaint and recommended imposing an $18,000 civil penalty on Verizon.  Verizon then filed a Certificate of Satisfaction signed by the Complainant stating that his Formal Complaint was satisfied and should be dismissed.  By Commission Order the Certificate of Satisfaction was treated as a Petition for Leave to Withdraw the Formal Complaint and was denied.  The parties were permitted to filed Exceptions within ten days after the entry date of that Order.  Exceptions were filed as well as a motion for Reconsideration.  No answers were filed and on September 19, 2008, Verizon filed a Petition to Reopen the Record.  No answers were filed.  Staff recommends that the Commission adopt the proposed Opinion and Order, consistent with the discussion therein.  This matter has been postponed until the Public Meeting of November 13, 2008.

1. Verizon Pennsylvania Inc. v. Cavalier Telephone Mid-Atlantic LLC's, 1300073-OSA, R-00050971C0001.  Switched Access Services Tariff Revisions Seeking To Impose Retain Time and Materials Charges On Verizon Cavalier filed Tariff Supplement No. 3 to its Access Tariff-Pa. P.U.C. No. 4, seeking approval of nonrecurring Time and Materials charges identical to Verizon Pennsylvania Inc.'s Time and Materials Charges in its Tariff-Telephone Pa P.U.C. No. 216.  Verizon filed a Formal Complaint against Cavalier's tariff filing and the case was assigned to the OALJ for investigation.  A recommended Decision was issued wherein the ALJ concluded that Cavalier failed to meet its burden of proof and recommended denying the proposed tariff amendment.  Exceptions were filed by Cavalier and Reply Exceptions were filed by Verizon.  Staff recommends that the Commission adopt the proposed Opinion and Order which denies Cavalier's Exceptions and adopts the ALJ's Recommendations.  Statement by Commissioner Gardner is attached.  Vote of 5-0 with Chairman Cawley, Vice Chairman Christy and Commissioner Gardner concurring in result only.

Bureau of Fixed Utility Services

1. UGI Utilities, Inc., 2066991-FUS, P-2008-2066991.  Petition filed September 6, 2008 for permission to file a tariff supplement on less than sixty days notice and for associated waivers.  Staff recommends that the Commission adopt the proposed Order.  Motion by Chairman Christy encouraging EDCs to broaden the scope of their voluntary programs to include Pennsylvania alternative resources, such as waste coal, in addition to renewable resources such as wind or solar and broadening the scope of programs that would provide customers with more choices consistent with the spirit and intent of the Electricity Generation Customer Choice and Competition Act of 1996 and moving that UGI’s Petition is approved and UGI is authorized to file a tariff supplement with the Commission on one day’s notice, That UGI is directed to include information about the source of the program’s REC’s in any materials concerning this program that are provided to customers, and that UGI is directed to include this information in periodic bill inserts, that UGI is directed to work with the Commission’s Bureau of Consumer Services to develop appropriate language for these bill inserts and materials prior to their dissemination; and, that FUS is to prepare an Opinion and Order consistent with this Motion, is attached.  Vote of 4-1 with Chairman Cawley dissenting.

1. Pennsylvania Power Company, 2013283-FUS, S-2008-2013283.  Securities Certificate filed December 27, 2007, for the issuance and sale of up to $100 million aggregate principal amount of indebtedness in unsecured notes, mortgage bonds, and/or collateralized notes.  On January 18, 2008, Pennsylvania Power Company filed to extend the consideration period until February 29, 2008.  On April 7, 2008, Pennsylvania Power Company filed to extend the consideration period until further consideration of the Commission.  On August 14, 2008, Pennsylvania Power Company supplied responses to Commission staff data requests.  Pennsylvania Power Company later provided updated financial information.  Staff recommends that the Commission adopt the proposed Order.  This matter has been postponed until the Public Meeting of December 4, 2008.

Law Bureau

1. Additional Numbering Resources to Local Exchange Carriers, 2032767-LAW, M-2008-2032767.  Safety Valve Process.  Staff recommends that the Commission streamline the safety valve process.  Statement by Commissioner Pizzingrilli is attached.  Vote of 5-0 with no further discussion.

Office of Administrative Law Judge

1. PECO Energy Company, 2032333-ALJ, P-2008-2032333.  Petition for approval of Phase I of its Residential Real Time Pricing Program.  On March 14, 2008, PECO filed a Petition with the Commission seeking approval of Phase I and permit PECO to enroll up to 2,000 residential customers who elect to participate in the program; permit PECO to charge those customers based upon the actual hourly real-time locational marginal price established by PJM Interconnection; approve the necessary tariff changes to allow it and permit cost recovery through an annual § 1307 cost reconciliation.  On August 29, 2008, a Joint Petition for Settlement and supporting statements were filed.  Commission staff reviewed ALJ Colwell's Recommended Decision approving the Settlement without modification.  Joint Motion by Chairman Cawley and Commissioner Pizzingrilli moving that within sixty days of the entry of a Tentative Order the parties may file comments explaining why the settlement, as proposed, is in the public interest and consistent with the enactment of Act 129 of 2008 and comments should include rationalization of rate caps and cost socialization and proof of likely participant benefit and cost effectiveness, in the alternative, the parties may, within sixty days of the entry of a Tentative Order, jointly file an amended settlement which addresses the concerns raised in this motion and if an amended settlement is filed the matter shall be remanded to the OALJ, within sixty days of the entry of a Tentative Order, PECO may withdraw the filing and submit a revised proposal as part of its Act 129 compliance filing in July 2009, if the parties fail to act consistent with the above alternatives, the Recommended Decision be reversed and the Joint Petition for Settlement be denied and that the OSA draft an appropriate Tentative Order consistent with this motion, is attached.  Vote of 5-0 with Vice Chairman Christy concurring in result only and Commissioner Powelson associating himself with the Joint Motion.

1. PA PUC, et al. v. UGI Penn Natural Gas, Inc. (PNG) Annual 1307(f) Filing; PA PUC, et al. v. UGI Utilities, Inc. – Gas Division (UGI) Annual 1307(f) Filing, 2039284-ALJ, R-2008-2039284, et al.; R-2008-2039417, et al.  On June 2 2008, , PNG and UGI collectively submitted their 2008 Purchased Gas Cost filings, with proposed modifications to PNG’s Gas Tariff Pa. P.U.C. Nos. 1 and 7 and UGI’s Gas Tariff Pa. P.U.C. No. 5 to become effective December 1, 2008.  PNG’s filing proposed no change to PNG’s PGC rate that became effective June 1, 2008.  UGI’s filing proposed no change to UGI’s PGC(1) rate that became effective June 1, 2008, and an average increase in UGI’s average PGC(2) rate that became effective June 1, 2008.  Petitions to Intervene were filed; the ALJ issued a Recommended Decision, which, among other things, denied the Petition; and exceptions were filed.  On August 21, 2008, the Petition to Intervene was granted.  On September 3, 2008, the parties filed a separate Stipulation in Settlement of Section 1307(f) Rate Investigation.  Staff reviewed ALJ Cocheres’ Recommended Decision approving UGI Penn Natural Gas, Inc.’s and UGI Utilities, Inc.-Gas Division’s Settlements.  Statement of Vice Chairman Cawley in which he concurs in result only, is attached.  Vote of 5-0 with no further discussion.

ANNOUNCEMENTS

1. There is an en banc hearing regarding the energy crisis on November 19, 2008 at 9:30 a.m. in the Keystone Building.

1. A hearing on alternative energy resources and demand side resources will be held on Wednesday, November 19, 2008 at 9:30 am.

1. A 3rd en banc hearing is scheduled for December 18, 2008.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, NOVEMBER 13, 2008 AT 10:00 AM

* Denotes Order