Highlights: PA PUC Public Session of September 24, 2009

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 September 24, 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, October 8, 2009 at 10:00 a.m.  The minutes of the Public Meeting of August 27, 2009, were, by a vote of 5-0, approved without modification.

BUREAU OF TRANSPORTATION & SAFETY

1. All matters approved as submitted.

BUREAU OF AUDITS

1. All matters approved as submitted.

OFFICE OF SPECIAL ASSISTANTS

1. Norfolk Southern Railway Company, 1197952-OSA, A-00122477.  Application filed on 2/28/06, in which it averred that the instant crossing should be abolished.  The Recommended Decision (RD) issued on 8/3/06, by ALJ Cocheres, concluded that the crossing should remain open.  Parties filed Exceptions to the Recommended Decision.  By Order entered 10/27/07, the Commission denied the Exceptions and adopted the RD.  The Commission also directed that the crossing should be provided with new lights and crossing gates.  On 8/20/09, the Lebanon County Municipal Planning Organization filed a Letter-Petition for Reconsideration.  Norfolk Southern filed a Response.  Staff recommends that the Commission adopt the proposed Opinion and Order which denies the Letter-Petition.  Vote of 5-0 with no discussion.

1. PA PUC v. Equitable Gas Company, 1505395-OSA, M-2009-1505395.  Settlement Agreement is submitted by the Parties in order to resolve an Informal Investigation, the subject of which concerns allegations of multiple violations of the Code of Federal Regulations an the rules and regulations of the Commission relative to natural gas pipeline safety.  The specific incidents that are the subject of the Settlement Agreement occurred on 06/29/07, 05/29/07, (discovered 07/20/07), and 02/14/08.  Staff recommends that the Commission adopt the proposed Opinion and Order that permits comments to the Settlement Agreement from any interested party if timely filed within 20 days of entry of the proposed Opinion and Order.  This matter has been postponed until public meeting of October 8, 2009.

1. Little Washington Wastewater - Northeast PA Consolidated, 2081738-OCA, R-2008-2081738.  General rate increase request filed on 12/29/08.  Formal Complaints were filed by the OCA, the OTS and various ratepayers, including the Eagle Rock Community Association and the Eagle Rock Resort Company (Eagle Rock), one of 7 divisions in LW-NE.  On 6/29/09, ALJ Jones issued a Recommended Decision approving a Settlement filed by LW-NE, the OCA and the OTS for all LW-NE divisions except Eagle Rock.  After hearings and briefs, the ALJ issued a Further Recommended Decision dismissing Eagle Rock's Complaint and approving the Settlement filed by LW-NE, the OCA and the OTS as it pertained to Eagle Rock.  On 8/18/09, LW-NE and Eagle Rock filed Exceptions to the Recommended Decision.  On 8/25/09, LW-NE and Eagle Rock filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order that denies Eagle Rock's Exceptions, denies LW-NE's Exceptions and adopts the ALJ's Further Recommended Decision.  Vote of 5-0 with no discussion.

1. Equitable Gas Co., 2088072-OSA, R-2009-2088072, C-2009-2091475,
   C-2009-2098330, C-2009-2100312.  Tariff Supplement filed on 4/1/09.  Complaints were filed and interventions granted.  A Joint Settlement was reached.  A Recommended Decision was issued on 7/16/09, by ALJs Mehan and Dunderdale.  Equitable filed Exceptions to Recommended Decision.  Staff recommends that the Commission adopt the proposed Opinion and Order which adopts the Recommended Decision, approves the Joint Settlement and denies Equitable's Exceptions.  Motion of Chairman Cawley that the Recommended Decision approving the Joint Settlement be adopted except with regard to the OTS's position regarding EGC's proposal to retain 25% of revenues from long term capacity releases, the OTS's position be adopted regarding EGC's proposal to retain 25% of the profits associated with long term releases of a TETCO firm transportation service, i.e., that EGC not be entitled to 25% of the release capacity revenues associated with the TETCO capacity release and that the OSA draft an appropriate order consistent with this motion, is attached.  Vote 5-0 with no further discussion.

1. DNA Ambulance Inc., 2096891-OSA, A-2009-2096891.  Application filed 2/19/09, for approval to provide paratransit service in the City and County of Philadelphia.  The Application was published in the PA Bulletin on 4/4/09.  No Protests were filed.  By Commission Order entered 8/7/09, the Application was dismissed for failure to provide sufficient information to determine the Petitioner's suitability to operate transportation service.  On 8/17/09, the Petitioner filed a Petition for Reconsideration.  The Bureau of Transportation and Safety did not file an Answer, but does not oppose the Petition.  Staff recommends that the Commission adopt the proposed Opinion and Order, which denies the Petition.  The Motion of Vice Chairman Christy that DNA Ambulance, Inc.'s Petition for Reconsideration be granted and that the OSA prepare the necessary Opinion and Order, is attached.  Vote of 4-1 with Commissioner Powelson dissenting. 

BUREAU OF FIXED UTILITY SERVICES

1. Pennsylvania Energy Savings Corp., 2097544-FUS, A-2009-2097544.  Application filed on 3/18/09, for a license to offer, render, furnish or supply electricity or electric generation services as a broker/marketer and aggregator engaged in the business of supplying electricity to residential and commercial customers in the service territory of Duquesne light Co.  The License Application is filed in accordance with the requirements of Section 2809 of the Public Utility Code, 66 Pa. C.S. §2809.  Staff recommends that the Commission adopt the proposed Order.  This matter has been postponed until Public Meeting of October 8, 2009.

1. Pennsylvania Electric Co., 2112928-FUS, A-2009-21129828.  Letter of Notification filed on 6/9/09, pursuant to 52 Pa. Code Chapter 57.72 with respect to the Allegheny-Bedford North 115 kV HV Transmission Line Loop to the Stony-Creek Wind Farm project, situated in Allegheny Township, Somerset County, PA.  Authority for this procedure is provided for at §57.72(d)(vi).  No protests were filed and no hearings were held.  Staff recommends that the Commission adopt the proposed Order that approves the application.
2. Commissioner Powelson said that Penelec is working cooperatively with electric distribution and he applauds FirstEnergy.  Vote of 5-0 with no discussion.

1. Commercial Utility Consultants Inc., 2120213-FUS, A-2009-2120213.  Application filed on 7/6/09, for a license to offer, render, furnish or supply electricity or electric generation services as a broker/consultant engaged in the business of utility rate analysis and specializing in utility cost savings for the purchase of electricity by commercial, industrial, and governmental customers in the electric distribution company service territories.  Staff recommends that the Commission adopt the proposed Order that approves the application.  This matter has been withdrawn by the Bureau of Fixed Utility Services.

1. United Water Pennsylvania Inc. and Brown Manor Water Company, 2120406-FUS, A-2009-2120406, A-2009-2120407.  Joint application was filed on 7/16/09.  Proofs of publication and service to appropriate entities were submitted.  No protests were filed and no hearings were held.  Staff recommends that the Commission adopt the proposed Order that approves the Joint Application.  Vote of 5-0 with no further discussion.

1. Pennsylvania Electric Company, 2120564-FUS, S-2009-2120564.  Securities certificate for the issuance of $600 million in new indebtedness through the issuance of secured or unsecured notes or debentures.  Staff recommends that the Commission register the securities certificate consistent with the proposed Order.  Motion of Commissioner Gardner that the securities certificate filed by Pennsylvania Electric Company for $600 million, be registered for $500 million and that the Bureau of Fixed Utility Services prepare an Order to that effect.  Vote of 3-2 with the Dissenting Statement of Commissioner Powelson attached and Commissioner Pizzingrilli dissenting as well.

COMBINED BUREAU AGENDA

1. Reynolds Water Company, 2102464-FUS, R-2009-2102464 and
   2102464-OTS, R-2009-2102464.  Supplement No. 1 to Tariff Water-Pa. PUC No. 4, filed 0 6/30/09, proposing  an annual increase in rates of $207,503 (50.5%) to become effective 9/28/09, and based on a future test year ending 12/31/09.  By letter dated 4/27/09, the Commission granted the Respondent an extension of time for filing the general rate increase.  Formal Complaints have been filed.  Staff recommends that the Commission institute an investigation and allow the filing to be suspended by operation of law for a period of 7 months, or through 4/28/10.  Vote of 5-0 with no discussion.

1. Clean Treatment Sewage Co., 2121928-FUS, R-2009-2121928 and 2121928-OTS, R-2009-2121928.  Supplement No. 12 to Tariff-Wastewater Pa. PUC No. 2 filed on 7/29/09, proposing an increase in rates of $221,317 (65.8%) to become effective 10/1/09,and based on a historic test year ending 3/31/09.  Formal Complaints have been filed.  Staff recommends that the Commission adopt the proposed Order and institute an investigation and allow the filing to be suspended by operation of law for a period of 7 months, or through 5/1/10.  Vote of 5-0 with no discussion.

LAW BUREAU

1. Rural Telecommunications Carriers, 1163714-LAW, M-00011530.  Certification of Rural and Non-Rural Carriers for Federal Universal Service fund Support.  Staff recommends that the Commission approve the Secretarial Letters certifying to the FCC and USAC that the rural ILECs will use all federal high-cost support provided to them for the year 2010.  Vote of 5-0 with no discussion. 

OFFICE OF ADMINISTRATIVE LAW JUDGE

1. Betty Bente v. Metropolitan Edison Co., 1332819-ALJ, C-20078469.  Complaint filed on 10/23/07, alleging Met Ed had intentionally oversprayed Complainants property after being informed of its intended organic use, thus contaminating the property and livestock on it.  On 11/27/07, Met Ed filed an Answer and New Matter which denied the material allegations of the complaint.  By Order dated 11/30/07, the matter was referred to mediation, and on 11/06/08 the matter was referred back from mediation for formal hearing.  A hearing was held on 3/10/09 at which the parties reached a Settlement.  Staff reviewed and advised that the Commission adopt ALJ Colwell's Initial Decision approving the Settlement Agreement.  Motion of Commissioner Gardner that the OSA prepare an Opinion and Order consistent with this Motion is attached.  Commissioner Pizzingrilli dissents on the Motion.  Vote of 4-1 with no further discussion.

1. Jerry James v. PECO Energy Company, 2025659-ALJ, C-2008-2025659.  Complaint filed on 1/16/08, alleging an inability to pay for electric service.  On 3/31/08, PECO filed an answer denying the allegations.  On 08/27/08, a hearing was held.  A further hearing was held on 10/24/08.  Staff reviewed and advised that the Commission adopt Special Agent Vero's Initial Decision denying the complaint.  Motion of Commissioner Pizzingrilli that the Initial Decision be modified consistent with this Motion and that the OSA prepare the appropriate Order, is attached.  Vote of 5-0 with no further discussion.

1. Benjamin A. Martins, III v. PECO Energy, 2059421-ALJ, F-2008-2059421.  Complaint filed on 8/18/08, alleging a billing dispute.  On 9/22/08, PECO filed its answer denying the incorrect charges.  A hearing was held on 1/12/09 .  Staff reviewed and advised that the Commission adopt ALJ Fordham's Initial Decision dismissing the complaint.  Motion of Commissioner Gardner that the Formal Complaint filed by Benjamin A. Martins, III against PECO Energy Company be dismissed, the Initial Decision be modified consistent with this Motion and that the OSA prepare an Opinion and Order consistent with this Motion, is attached.  Commissioner Powelson was alarmed.  Vote of 4-1 with Vice Chairman Christy dissenting.

1. Francisco Valez v. Verizon Select Services, 2060020-ALJ, C-2008-2060020.  Complaint filed on 9/28/08, Respondent filed an Answer and New Matter denying the fraudulent charges.  On 9/30/09, Complainant filed a Reply to new Matter.  On 1/13/09, Respondent filed a Motion to Compel Responses and for Sanctions.  Complainant did not respond to the Motion.  Staff reviewed and advised that the Commission adopt ALJ Fordham's Initial Decision dismissing the complaint.  This matter has been postponed until Public Meeting of October 8, 2009.

1. Melissa Evans v. UGI Penn Natural Gas Company, Complaint filed on 2/13/09, alleging an inability to pay and requested a payment arrangement.  On 3/3/09, UGI filed an answer to the complaint.  A hearing was held on 6/30/09.  Staff reviewed and advised that the Commission adopt Special Agent Alexander's Initial Decision dismissing the complaint.  Motion of Commissioner Gardner that the Formal Complaint filed by Melissa Evans against UGI Penn Natural Gas, Inc. be dismissed, that the Initial Decision be modified consistent with this motion and that the OSA prepare an Opinion and Order consistent  with this Motion, is attached.  Vote of 4-1 with Vice Chairman Christy dissenting.

1. Timothy Horton v. National Fuel Gas Distribution Corp., 2097173-ALJ,
   C-2009-2097173.  Complaint filed on 3/23/09, alleging a billing dispute.  On 4/14/09, NFG filed an Answer and New Matter, also Preliminary Objections and Motion to Dismiss.  Staff reviewed and advised that the Commission adopt Chief ALJ Smith's Initial Decision dismissing the complaint in its entirety.  Motion of Chairman Cawley that the Initial Decision be modified consistent with this Motion, the OSA prepare an appropriate order, is attached.  Vote of 5-0 with no further discussion.

OFFICE OF SPECIAL ASSISTANTS

1. Columbia Gas, 2093219-OSA, R-2009-2093219.  Tariff Supplement filed on 2/27/09, containing changes in the Purchased Gas Cost.  ALJ Hoyer on 8/4/09, issued a Recommended Decision.  Exceptions and Replies were filed by parties.  Staff recommends that the Commission adopt the proposed Opinion and Order, which adopts the Recommended Decision and denies the Exceptions.  Motion of Vice Chairman Christy that the Recommended Decision of ALJ Hoyer be modified consistent with this Motion, that Columbia's Unified Sharing Mechanism be approved as recommended by the ALJ for a three-year period, that recover of the amount of hedging interest costs incurred prior to the historic reconciliation period be disallowed, that the OSA prepare an appropriate Opinion and Order consistent with this Motion, is attached.  Vote of 5-0 with no further discussion.

1. Verizon North, 2111330-OSA, A-2009-2111330, A-2009-2111331, A-2009-2111337.  Application filed on 5/29/09, seeking all approvals necessary for a corporate restructuring.  On 6/15/09, several Petitioners filed Preliminary Objections.  On 6/25/09, Verizon filed its Answer. On 7/2/09, Petitioners filed a Protest to the Application.  Verizon filed Preliminary Objections to the Protest on 7/22/09.  Petitioners filed an Answer on7/31/09, and Verizon filed an Answer to Petitioners' Answer on 8/5/09.  On 8/12/09, ALJ Rainey denied the Petitioners' Preliminary Objections.  On 8/27/09, the Petitioners filed a Petition for Interlocutory Review and Answer to a Material Question.  On 9/8/09, the Parties filed briefs.  On 9/11/09, the Petitioners filed a Motion for Leave to Reply to Verizon's Opposition to the Petition.  Staff recommends that the Commission decline to Answer the Material Question.  Statement of Vice Chairman Christy is attached.  Vote of 5-0 with no further discussion.

NO ANNOUNCEMENTS

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR
THURSDAY, OCTOBER 8, 2009 AT 10:00 A.M.

 * Denotes Order