Highlights: PA PUC Public Session of November 13, 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 13, 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, December 4, 2008 at 10:00 a.m.  The minutes of the Public Meeting of October 23, 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.  Motion 1 (502 Junction Facilities) of Chairman Cawley that the Recommended Decision be reversed consistent with this motion and that the OSA draft an appropriate order consistent with this motion.  Vote of 4-1 with Vice Chairman Christy Dissenting.  Motion 2 (Prexy Facilities) of Chairman Cawley that the Settlement Agreement be approved, consideration of the Application with regard to the Prexy Facilities is stayed pending the outcome of the collaborative set forth in the Settlement Agreement and the filing of a new or amended application and that the OSA draft an appropriate order consistent with this motion.  Dissenting Statement of Vice Chairman Christy commending ALJs Nemec & Hoyer and agreeing with the ALJs to reject the applications, that the record was clear that facilities "are not needed", alternatives were not considered, consumers will be harmed by PJM transmission costs, Western PA consumers would get no benefit and the Pennsylvania settlement is no where near as attractive as deal in West Virginia.  Statement of Commissioner Powelson supporting the Motion and stating that the transmission is part of "infrastructure" that needs improvement is attached.  Vote of 3-2 with Vice Chairman Christy and Commissioner Gardner Dissenting.  Lastly, Statement by Chairman Cawley advising that FERC discourages regional cooperation and that FERC's policy to allocate all costs equally to all customers is not reasonable.

Bureau of Transportation and Safety

1. All matters approved as submitted.

Bureau of Audits

1. All matters approved as submitted.

Office of Special Assistants

1. Pennsylvania Public Utility Commission, Bureau of Transportation and Safety (BTS) v. Lodestar Bus Lines, Inc., 1060073-OSA, A-00101869C0701.  On April 10, 2007, BTS instituted a Complaint against Lodestar (Petitioner) for failure to maintain evidence of insurance.  By Order issued August 12, 2008, inter alia, the Petitioner's Certificate was cancelled.  On August 26, 2008, the Petitioner filed the instant Petition for Reinstatement 9Petition).  No Answer has been filed.  Staff recommends that the Commission adopt the proposed Opinion and Order granting the Petition.  Statement by Commissioner Powelson in which he reluctantly supports reinstatement.  Vote of 5-0 with no further discussion.

1. Abraham Shyu v. PPL Electric Utilities Corporation, 1221126-OSA,
   C-20078534.  A Formal Complaint was filed alleging that there were incorrect charges on his bill.  A telephonic hearing was held and by Initial Decision of July 21, 2008, Special Agent Erando Vero concluded that the Complainant failed to sustain his burden of proof.  Exceptions were filed to the Initial Decision on August 7, 2008 and PPL filed Replies to the Exceptions on August 15, 2008.  This matter was postponed until Public Meeting of December 4, 2008.

1. PA PUC v. PPL Utilities Corporation, 2039634-OSA, R-2008-2039634, et al.  On June 2, 2008, PPL Gas Utilities Corporation filed its 2008 Purchased Gas Cost (PGC) Rate filing pursuant to Section 1307(f) of the Public Utility Code, 66 Pa. C.S. § 1307(f), to become effective December 1, 2008.  Appearances, Petitions to Intervene and/or Complaints were filed by numerous parties.  A Recommended Decision was issued October 7, 2008, wherein ALJ Weismandel recommended that the Joint Petition For Partial Settlement filed on October 3, 2008 be approved.  Exceptions were filed by the OSBA on October 15, 2008.  Reply Exceptions were filed by PPL Gas on October 20, 2008.  Staff recommends that the Commission adopt the proposed Opinion and Order.  Statement of Chairman Cawley with regards to unaccounted for gas rates and that company has had problems, but is improving.  Commissioner Powelson associates himself with Chairman Cawley's Statement.  Vote of 5-0 with no further discussion.

1. PA PUC, Law Bureau Prosecutory Staff v. PPL Electric Utilities Corp., 2057562-OSA, M-2008-2057562.  Joint Petition filed for settlement in order to satisfy the informal investigation into PPL's conduct in connection with the termination of electric service to the residence of Ryan and Deb Donachy.  As part of the settlement, Prosecutory Staff agrees to forebear the institution of any formal complaint with regard to PPL's relevant conduct, and PPL agrees to contribute $300,000 to its Operation HELP financial aid program.  Staff recommends that the Commission adopt the proposed Opinion and Order which directs, that the Opinion and Order and the proposed settlement agreement be entered for comments by any interested party.  Statement of Commissioner Powelson noting prior position of his staff member, Rikardo Hull.  Vote of 5-0 with no further discussion.

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.  Dissenting Statement of Commissioner Powelson stating that according to the plain meaning of 52 Pa. Code Section 5.24, Certificates of Satisfaction can be filed at any time.  Also, Commissioner Pizzingrilli disagrees with the amount of the civil penalty.  Vote of 3-2 with no further discussion.

Bureau of Fixed Utility Services

1. NRG Energy Center Harrisburg LLC, 2071637-FUS, R-2008-2071637.  Tariff Supplement No. 43 to Tariff Steam-Pa. P.U.C. No. 4 filed October 17, 2008, proposing to modify Rider A of the tariff to institute a "real time" Steam Cost Rate applicable to large customers, and to amend Rate 4 of the tariff to enumerate the incremental variable costs that must be recovered in negotiated rates under the rate schedule to become effective on one day's notice after approval.  Staff recommends that the Commission adopt the proposed Order.  Statement of Vice Chairman Christy commending company for its "real time" initiative and supporting tariff supplement.  Vote of 5-0 with no further discussion.

1. Metropolitan Edison Company, Pennsylvania Power Company, and Pennsylvania Electric Company, 2065751-FUS, A-2008-2065751, G-2008-2065754,
   A-2008-2065758, G-2008-2065760, A-2008-2065761, G-2008-2065763.  Application filed September 11, 2008 for approval of the sale of undivided interests in accounts receivable to a wholly owned special purpose entity, and for affiliated transactions related to the sale of accounts receivable.  Staff recommends that the Commission adopt the proposed Order that approves the sales of accounts receivable and related affiliated interest agreements.  This matter has been withdrawn by the Bureau of FUS.

1. MCImetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services, 2054904-FUS, R-2008-2054904.  Supplement No. 120 to Pa. P.U.C. Tariff No. 3 filed July 30, 2008 proposing to detariff only those CLEC services offered to large and enterprise business customers.  Staff recommends that the Commission adopt the proposed Order.  Motion of Chairman Cawley that Verizon be given first alternative to file within twenty days of the entered date of this Order the appropriate replacement Tariff Supplement effectuating the competitive classification of substantially similar or functionally equivalent CLEC services to its large business and enterprise customer located in the service area of Verizon Pennsylvania, Inc.  This replacement Tariff Supplement shall have a ten day notice period consistent with 52 Pa. Code § 53.58(a) and the Company will maintain the appropriate informational tariff or price list with the Commission in accordance with the requirements at 52 Pa. Code § 53.58(d).  This replacement Tariff Supplement shall cancel and supersede the Company's Supplement No. 120 to PA P.U.C. Tariff No. 3  and Verizon Access shall be given the second alternative to withdraw Tariff Supplement No. 120 prior to its effective date, and to seek the appropriate relief from the Commission for the competitive classification and detariffing of its local services to large and enterprise customers located in its service areas that include those areas that are also served by Verizon Pennsylvania Inc. and other incumbent local exchange carriers within this Commonwealth and in the event that Verizon Access does not accept either alternative, the Company's Supplement No. 120 to PA P.U.C. Tariff No. 3 be suspended for a period not to exceed nine months and the proceeding be referred to the Office of Administrative Law Judge for adjudication and the issuance of a Recommended Decision, a copy of this Order be served upon the OCA, OSBA, OALJ and OTS, the Law Bureau expeditiously prepare the appropriate Order consistent with this Motion in advance of the December 1, 2008 effective date of the Company's Supplement No. 120 to PA P.U.C. Tariff No. 3.  Vote of 5-0 with no further discussion.

Law Bureau

1. Pennsylvania Universal Service Fund, 1151742 – LAW, M-00001337.  Annual Rate Adjustment.  Staff recommends to adopt the Administrator's Report and establishing the PaUSF size at $33,834,719 for the calendar year 2009.  Vote of 5-0 with no discussion.

1. Qualified Documents, 2072592 – LAW, M-2008-2072592.  Designation for Electronic Filing.  Staff recommends that the Commission adopt this proposed tentative order.  Vote of 5-0 with no discussion.

Office of Administrative Law Judge

1. PA PUC v. Pennsylvania-American Water Company (Coatesville Wastewater Operations), 2032689-ALJ, R-2008-2032689, et al.  On April 28, 2008, PAWC – City of Coatesville Wastewater filed Tariff Wastewater-Pa. P.U.C. No. 7 to become effective June 27, 2008, containing proposed changes in rates, rules and regulations calculated to produce additional annual revenues.  By Order entered June 25, 2008, the Commission suspended the filing until January 27, 2009, (unless permitted by the Commission Oder to become effective at an earlier date), so that an investigation could be held to determine whether the proposed changes in rates, rules and regulations are lawful, just and reasonable.  On October 2, 2008, a Joint Petition for Settlement of Rate Investigation was filed.  Commission reviewed ALJ Rainey's Recommended Decision approving the Settlement.  Statement of Commissioner Powelson noting prior position of Staff member, S. Klick.  Vote of 5-0 with no further discussion.

CARRY-IN AGENDA

Bureau of Fixed Utility Services

1. PPL Electric Utilities Corp, 2062920-FUS, R-2008-2062920.  Tariff Supplement No. 65 to Tariff Electric-Pa. P.U.C. No. 201 filed September 11, 2008, proposing to implement an experimental Year-Round Demand Side Response rate for residential customers.  Staff recommends that the Commission adopt the proposed Order.  This matter has been postponed until Public Meeting of December 4, 2008.

NO ANNOUNCEMENTS

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, DECEMBER 4, 2008 AT 10:00 AM

* Denotes Order