Highlights: PA PUC Public Session of May 28, 2009

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          At the May 28, 2009 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, June 18, 2009 at 10:00 a.m.  The minutes of the Public Meeting of April 30, 2009, were, by a vote of 5-0, approved without modification.

CASES OF SPECIAL INTEREST

1. Columbia Water Co., 2045157-OSA, Binding Poll, R-2008-2045157, C-2008-2061322, C-2008-2059905, C-2008-2061399, C-2008-2071021.  Supplement No. 35 to Tariff Water-Pa. P.U.C. No. 7, filed 7/15/08, proposing an annual increase in rates of $616,402 (16.5%).  On 3/03/09, the Recommended Decision of ALJ Salapa was issued.  Exceptions were filed 4/20/09, by Columbia, OCA, and OTS.  Reply Exceptions were filed 4/30/09, by Columbia, OCA and OTS.  Staff recommends that the Commission conduct a Binding Poll of the issues in this Proceeding, a copy of which is attached.

Bureau of Transportation and Safety

1. RIZK-CO-ZANN Foods Corporation, 1204942-TAS, A-00123650.  Application for the right to transport as a common carrier by motor vehicle, persons, in call or demand service.  Highspire, Dauphin County.  Staff recommends that the Commission adopt the proposed order dismissing the application.  This matter has been withdrawn by the Bureau.

1. Bucks County Cab Co., 1206801-TAS, A-00124006.  Application for the right to begin to transport as a common carrier by motor vehicle, persons in call or demand service.  Staff recommends that the Commission adopt the proposed order dismissing the application.  This matter has been postponed until Public Meeting of June 18, 2009.

Bureau of Audits

1. UGI Utilities, Inc.-Electric Div., 2089615-AUD, M-2009-2089615.  Annual Consumer Education Costs (CEC), Tariff Supp. 57 to Electric – PA PUC No. 5, filed on 4/1/09, to become effective 6/1/09.  Staff recommends that the Commission reject the Consumer Education Charge (CEC) proposed for UGI's residential and small business customers and continue to bill using the current CEC.  Vote of 4-1 with Vice Chairman Christy voting no.

1. Duquesne Light Company, 2099925-AUD, M-2009-2099925.  Annual Consumer Education Surcharge (CES), Tariff Supplement No. 22 to Electric – Pa. P.U.C. No. 24, filed on 4/1/09, to become effective 6/1/09.  Staff recommends that the Commission reject the Consumer Education Surcharge rates proposed for Duquesne and approve staff's adjusted CES rates to become effective 6/1/09.  Vote of 4-1 with Vice Chairman Christy voting no.

Office of Special Assistants

1. Montour Railroad Co., 1119050-OSA, I-00870060.  Investigation upon the Commission's own Motion into the matters pertaining to all rail-highway crossings-above the grade, below the grade and at the same grade as the tracks of the entire system of the Montour Railroad Company, a wholly owned and subsidiary of the Pittsburgh and Lake Erie Railroad Company, in eleven municipalities in the counties of Allegheny and Washington.  Staff recommended that the Commission adopt the proposed Opinion and Order granting the Petition.  This matter has been withdrawn.

1. Ronald E. Norris, Jr., 1148036-OSA, A-00115999, A-00115999C0401.  Complaint instituted on 9/9/04, alleging that the Petitioner failed to maintain evidence of insurance on file with the Commission.  The complaint was served on the Petitioner on 10/7/04.  No answer to the complaint was filed in a timely manner.  By Order issued on 1/21/05, the Commission sustained the complaint and cancelled the Petitioner's Certificate.  On 10/31/08, the Petitioner filed the instant Petition for Reinstatement of Certificate.  BTS filed an Answer to the Petition on 3/3/09.  Staff recommended that the Commission adopt the proposed Opinion and Order which refers the matter to OALJ for evidentiary hearings.  This matter has been postponed until Public Meeting of June 18, 2009.

1. Law Bureau Prosecutory Staff v. Equitable Gas Co., 1197285-OSA,
   C-20065790.  Formal Complaint filed on 1/19/06, alleging violations of state and federal law, 49 C.F.R. § 192 and 52 Pa. Code § 59.33, related to a gas explosion on 8/21/04, that destroyed a home and seriously injured a resident a 336 Jacks Run Road, Allegheny County.  Equitable filed an Answer to the complaint and met with Commission Staff for the purpose of settlement.  Based on the results of the investigation of the Commission's Gas Safety Division and the settlement discussions, Equitable and Prosecutory Staff filed a proposed Settlement on 5/8/07.  On 8/22/08, the Commission issued a Tentative Order for comment and directed the parties to file Statements in Support of the Settlement.  Equitable filed Comments and a Statement in Support on 9/11/08, and the Prosecutory Staff filed a Statement in Support on 11/20/08.  Staff recommends that the Commission adopt the proposed Opinion and Order approving the Settlement.  This matter has been postponed until Public Meeting of June 18, 2009.

Bureau of Fixed Utility Services

1. All matters approved as submitted.

Law Bureau

• All matters approved as submitted.

Office of Administrative Law Judge

1. Ronald A. Diorazio v. North East Heat and Light Company, 2052918-ALJ,
   F-2008-2052918.  Complaint filed on 7/7/08, requesting a new payment arrangement.  On 9/18/08, North East filed an Answer which denies the material allegations.  A hearing was held 10/31/08.  Staff reviewed and suggested that the Commission adopt Special Agent Alexander's Initial Decision denying the complaint.  Motion of Commissioner Gardner that the Initial Decision be 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. PPL Electric Utilities Corp., 2082652-ALJ, A-2009-2082652, A-2009-20822832.  Application filed on 1/6/09, for authorization to construct a new 500 kV transmission line approximately 101 miles in length through portions of Lackawanna, Luzerne, Monroe, Pike, and Wayne counties.  In conjunction with this Application, PPL is requesting authorization to construct a new substation in Blakely Borough, Lackawanna County, to connect the 500 kV line to the regional transmission system in that area. These filings were consolidated for the purposes of discovery, litigation, and decision by Order issued 1/12/09.  Two late-filed pleadings were received:  Petition to Intervene of Lehman Twp., dated 3/6/09; and the Protest of the Lackawanna River Corridor Assn. and the Lackawanna Valley Conservancy, received 3/27/09.  Staff reviewed and suggested that the Commission adopt ALJ Colwell's Initial Decision denying the Petition and dismiss the Protest.  The  Motion of Vice Chairman Christy that the Initial Decision be reversed in part consistent with this Motion and that the OSA prepare the appropriate Opinion and Order, is attached.  Vote of 5-0 with no further discussion.

CARRY-IN AGENDA

Bureau of Audits

1. Metropolitan Edison Co. and Penelec, 2102161-AUD, M-2009-2102161,
   M-2009-2104948.  Transmission Service Charge Rates effective 6/1/09.  Staff recommends that the Commission approve Penelec's proposed system average TSC rate of 6.531 mills per KWH and Met-Ed's proposed alternative system average TSC rate of 26.332 mills per KWH.  Statement of Chairman Cawley as well as the Dissenting Statement of Vice Chairman Christy are attached.  Vote of 3-1 with Commissioner Gardner abstaining.

Office of Special Assistants

1. United Telephone Co. of PA. t/a Embarq PA and Embarq Communications Inc., 2076038-OSA, A-2008-2076038.  Joint Application filed on 11/21/08, seeking approval of the indirect transfer of control of these regulated entities to CenturyTel, Inc.  Protests were filed by the OCA, OSBA, and the Broadband Cable Association of PA.  On 4/6/09, ALJ Weismandel issued his Initial Decision approving the Joint Application without conditions.  The OCA, the OSBA and the BCAP filed Exceptions and the Joint Applicants, together with CenturyTel, filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order, which approves the Joint Application with conditions.  The Statement of Vice Chairman Christy that the merger is complicated and he supports the merger but wishes that the rate freeze currently in effect could be continued beyond 2009 but will benefit competition and Pennsylvania consumers, is attached.  Statement of Commissioner Gardner is encouraging the merging companies to pay attention to rural deployment of broadband, is attached.  Statement of Commissioner Pizzingrilli supporting the overall merger but concerned with additional reporting requirements not supported by record dissents from the portion of the majority's action that imposes these requirements, is attached.  Statement of Chairman Cawley commending the parties and presiding ALJ Weismandel, the OSA and Jonathan Nace for their rapid and comprehensive evaluation of the case and encourages Embarq to consider a voluntary acceleration of Chapter 30 Broadband and continue to explore ARRA funding, is enclosed.  Vote of 4-1 with a partial dissent of Commissioner Pizzingrilli.

NO ANNOUNCEMENTS

* Denotes Order