Highlights: PA PUC Public Session of April 15, 2010

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          At the April 15, 2010 Public Meeting of the Pennsylvania Public Utility Commission (“Commission”), the Commissioners adopted Staff’s recommendations for action by a vote of 4-0 (with the vacant seat left by former Commissioner Pizzingrilli) 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, April 22, 2010 at 10:00 a.m.  The minutes of the Public Meeting of March 11, 2010, were, by a vote of 4-0, approved without modification.

CASES OF SPECIAL INTEREST

1. PPL Electric Utilities Corp., 2123945-OSA, M-2009-2123945.  Petition for Approval of Smart Meter Plan filed and served on 8/14/09.  Interventions were filed by the OTS, OCA, OSBA, DEP, the PPL Industrial Customers Alliance (PPLICA), Constellation Energy Commodities Group, and ACORN.  On 1/21/10, ALJ Weismandel filed an Initial Decision granting PPL’s Petition, in part, but with modifications.  Exceptions to the Initial Decision were filed by PPL, OCA, DEP, and the OTS.  Reply Exceptions were filed by PPL, OCA, PPLICA, and ACORN.  Staff recommends that the Commission conduct a Binding Poll of the issues.  Motion of Chairman Cawley that the OSA prepare an Order consistent with the Motion, is attached., Binding Poll is also attached.  Vote of 3-1 with Vice Chairman Christy dissenting.

1. Duquesne Light Company, 2123948-OSA, M-2009-2123948.  Smart Meter Procurement and Installation Plan fled on 8/14/09.  On 1/28/10, ALJ Meehan issued an Initial Decision.  Exceptions were filed on or about 2/17/10 by OCA, OSBA, OTS, DEP, Citizen Power, Inc., and Duquesne Industrial Intervenors (DII).  Reply Exceptions were filed on 3/1/10 by Duquesne, OCA, OSBA and DII.  Staff recommends that the Commission conduct a Binding Poll of the issues.  Motion of Chairman Cawley that the OSA prepare an Order consistent with the Motion is attached.  Vote of 3-1 with Vice Chairman Christy dissenting.

1. Met-Ed, Penelec, and Penn Power, 2123950-OSA, M-2009-2123950.  Single Comprehensive Smart Meter Plan filed by First Energy on 8/14/09, that would apply to the three companies.  Notice was published in the PA Bulletin and comments were received.  A technical conference was held on 10/20/09.  An evidentiary hearing was held on 11/19/09.  ALJ Colwell was issued an Initial Decision on 1/28/10, which approved the plan with modifications.  Exceptions and Reply Exceptions were filed.  Staff recommends that the Commission conduct a Binding Poll of the issues.  Motion of Chairman Cawley that the OSA prepare an Order consistent with the Motion is attached.  The Statement of Chairman Cawley is attached as well as the Statement of Commissioner Gardner.  Vote of 3-1 with Vice Chairman Christy dissenting.

BUREAU OF TRANSPORTATION & SAFETY

1. All matters approved as submitted.

DIRECTOR OF OPERATIONS

1. Appointment, 2168507-DIR.  Secretary’s Bureau.  Staff recommends that the Commission ratify the appointment of Rosemary Chiavetta to the position of Secretary of the Commission, effective 4/26/10.  Vote of 4-0 with no discussion.

OFFICE OF SPECIAL ASSISTANTS

1. West Penn Power Co., 2086954-OSA, A-2009-2086954.  Application filed on 1/26/09, requesting authority to locate, construct, operate and maintain a 138 kV electrical transmission line of approximately 2.2 miles in length in portions of Center Township and Franklin Township, Greene County, (the Pursley Line).  Also requesting that the Commission grant it eminent domain authority.  On 3/16/09, Cumberland Coal Resources, L.P. (Cumberland) filed a Petition to Intervene.  On 8/4/09 an evidentiary hearing was held.  On 12/24/09, ALJs Meehan and Hoyer issued their Initial Decision.  On 1/25/10, Hunnell filed Exceptions to the Initial Decision.  On 2/2/10, Cumberland filed its Reply Exception to the Exceptions of Hunnell.  On 2/4/10, West Penn filed its Reply to the Exceptions of Hunnell.  Staff recommends that the Commission adopt the proposed Opinion and Order that denies the Exceptions of Hunnell, and adopts the Initial Decision.  This matter has been postponed until Public Meeting of May 6, 2010.

1. Palmerton Telephone Company v. GLOBAL Naps, Inc., et al., 2093336-OSA, C-2009-2093336.  Formal Complaints filed on 3/4/09.  On 8/7/09, the ALJ issued his Initial Decision in this case.  On 8/31/09, Exceptions were filed.  On 9/10/09, Reply Exceptions were filed.  On 3/16/10, the Commission entered an Opinion and Order modifying the Initial Decision and sustaining, in part, the Complaint of Palmerton.  On 3/30/10, Global NAPS filed a Petition for Reconsideration of the Commission’s 3/16/10 Opinion and Order.  Staff recommends that the Commission adopt the proposed Opinion and Order that grants the Petition for Reconsideration pending review of and consideration on the merits.  Vote of 4-0 with no discussion.

1. Implementation-Inspection & Maintenance Standards, 2094773-OSA,
   M-2009-2094773, L-00040167.  Petition for West Penn Power for Appeal from Action of Staff Concerning Waiver Request of Frequency of Substation Inspections filed on 1/11/10, requesting waiver of the requirement that substations be inspected at intervals of five weeks.  Staff recommended that the Commission adopt the proposed Opinion and Order, which denies the Petition.  Dissenting Statement of Vice Chairman Christy is attached.  Vote of 3-1 with no further discussion.

1. Newtown Artesian Water Co., 2117550-OSA, R-2009-2117550, C-2009-2122003.  Supplement No. 67 to its tariff filed on 7/1/09, (subsequently corrected to No. 68) to establish a purchased water adjustment clause (PWAC).  By Order entered 8/27/09, the Commission suspended the proposed tariff until 3/1/10.  NAWC filed Supplement No. 71 to extend effective date until 4/15/10.  On 2/1/10, the ALJ issued a Recommended Decision which, inter alia, approved the PWAC, SUBJECT TO A 3% REVENUE CAP.  Exceptions were filed by NAWC, OCA and OTS on 2/22/10.  All 3 parties filed Reply Exceptions on 3/4/10.  Staff recommends that the Commission adopt the proposed Opinion and Order which, inter alia, rejects the PWAC; reverses the Re commended Decision; denies the Exceptions filed by AWC; and grants in part, and denies in part, the Exception of the OCA and OTS.  Joint Motion of Chairman Cawley and Commissioner Powelson that the Exceptions of the OCA and OTS be denied consistent with the Opinion and Order, that the Recommended Decision of the ALJ be adopted consistent with the Commission’s Opinion and Order, that the OSA prepare an Opinion and Order consistent with this Joint Motion, is attached.  Dissenting Statement of Vice Chairman Christy is attached.  Vote of 3-1 with no further discussion.

BUREAU OF FIXED UTILITY SERVICES

1. PPL Electric Utilities Corp Retail Markets, 2104271-FUS, M-2009-2103271.  Electronic Data Exchange Working Group (“EDEWG”), filed a report on 11/9/09, in response to the Commission’s directive outlined in the PPL Retail Markets Order and Opinion entered 8/11/09.  Specifically, PPL was directed to lead a sub-team of EDEWG for the purpose of developing a plan for all Electric Distribution Companies to transition to Rate Ready consolidated billing.  Staff recommends that the Commission adopt the proposed Opinion and Order that approves the EDEWG report for PPL implementation and suspends adoption of a statewide Rate Ready billing option until further notice.  Vote of 3-1 with Vice Chairman Christy dissenting.

1. BTU Energy, LLC, 2159567-FUS, A-2010-2159567.  Application filed on 1/28/10, for a license to offer, render, furnish or supply electricity or electric generation services as a broker/marketer to residential, small commercial (25 kw and under demand), large commercial (over 25 kw demand), industrial and governmental customers in the electric distribution company service territories.  Staff recommends that the Commission adopt the proposed Order which approves the application.  This matter has been postponed until Public Meeting of May 6 2010.

1. Duquesne Light Company, 2161163-FUS, S-2010-2161163.  Securities Certificate filed on 2/25/10, in respect to the issuance of long-term debt in an aggregate principal amount not to exceed $300 million and affiliated interest agreement concerning long-term financing transactions between Duquesne Light Company and its parent company, Duquesne Light Holdings, Inc.  Staff recommends that the Commission adopt the proposed Order to reduce the maximum intercompany borrowing rate to 7.5%, use the lowest rate from 3 investment banks, and limit borrowing authorization through 12/31/13.  This matter has been withdrawn by the Bureau.

LAW BUREAU

1. Cordia Communications Corp, 2014444-LAW, P-2008-2014444.  Petition filed on 10/1/08 for designation as an Eligible Telecommunications Carrier (ETC) for applicable federal universal service funding purposes.  Notice was published in the PA Bulletin on 1/31/09.  Comments were filed by OCA on 2/9/09.  Cordia filed Reply Comments on 3/26/09.  Staff recommends that the Commission deny the petition without prejudice, initiate a proceeding to issue a Policy Statement on the standards applicable to ETC designation and recertification, and initiate on investigation into the practice of paper billing fees.  This matter has been postponed until Public Meeting of May 6, 2010.

1. Philadelphia Gas Works, 2136508-LAW, P-2009-2136508.  Petition filed on 10/16/09, requesting that the Commission issue a “Statement of Policy” explaining how it intends to apply PGW’s Cash Flow Ratemaking Method on a going forward basis.  On 12/30/09, the Commission entered an Order granting in part and denying in part PGW’s Petition.  The December Order ultimately adopted a proposed “Statement of Policy.”  Because the Commission’s proposed “Statement of Policy” included revisions and additions to the policy statement that PGW had originally submitted, the December Order provided a 30-day period for parties to file comments to the proposed “Statement of Policy.”  Parties, namely PGW, the OCA, OTS and Turn et al., filed Comments to the Commission’s proposed “Statement of Policy” and, by leave of the Commission, the same parties filed Reply Comments.  Staff recommends that the Commission adopt the proposed Order that, among other things, grants the Petition and Statement of Policy with modifications.  Vote of 3-1 with Vice Chairman Christy dissenting.

1. Peoples Natural Gas Co., 2152149-LAW, P-2010-2152149.  Petition filed on 1/11/10, requesting that the Commission authorize the Company to use Interim Refunds received from Tennessee Gas Pipeline Company to:  (1) create a program specific to the Interim Refunds that will provide non-matching Dollar Energy Fund grants to an expanded group of the Company’s low-income customers; (2) create an emergency house line repair and furnace repair/replacement program in order to restore gas heat to customers’ homes; (3) provide a portion of the Interim Refunds to small commercial customers through Peoples’ Gas Cost Rate; and (4) a declaration that the use of the Tennessee Gas Pipeline Company refunds is fully consistent with the Dominion Peoples’ statutory obligations under Sections 1307, 1317 and 1318 of the Public Utility Code, 66 Pa. C.S. §§ 1307, 1317 and 1318, and will not found to be in conflict with these obligations in any future Section 1307(f) proceedings.  Staff recommends that the Commission grant in part and deny in part Dominion Peoples’ Petition.  Motion of Vice Chairman Christy that The Peoples Natural Gas Company d/b/a Dominion Peoples be granted in part and denied in par consistent with this motion and that the Law Bureau prepare the necessary Opinion and Order.  Vote of 4-0 with no further discussion.

OFFICE OF ADMINISTRATIVE LAW JUDGE

1. Daniel H. Pattison v. PECO Energy Company, 2082624-ALJ, C-2009-2082624.  Formal Complaint filed on 12/31/08, alleging a billing dispute.  On 1/26/09, PECO filed an answer to the complaint.  Commission staff reviewed and advised that the Commission adopt ALJ Jones’ Initial Decision sustaining, in part, to the extent consistent with the prescribed payment arrangement and is otherwise denied and dismissed.  Motion of Commissioner Powelson that the payment arrangement issued in the Initial Decision is vacated, that the Initial Decision of ALJ Jones be modified consistent with this Motion and that the OSA prepare an Opinion and Order consistent with this Motion, is attached.  Vote of 4-0 with no further discussion.

1. Reynolds Water Co., 2102464-ALJ, R-2009-2102464.  Supplement No. 1 to Tariff Water-Pa. P.U.C. No. 4 filed on 6/30/09, to become effective on 09/28/09, containing proposed changes in rates, rules, and regulations calculated to produce additional annual revenues.  OCA and 8 individuals filed formal complaints against the proposed increase.  By Order dated 9/24/09, the Commission suspended the proposed tariff until 4/28/10 and ordered an investigation.  By virtue of the Company’s filing a tariff supplement agreeing to extend the statutory deadline to allow for mediation, the suspension date was extended to 6/27/10.  A Joint Petition for Settlement was submitted 12/18/09.  Commission Staff reviewed and advised that the Commission adopts ALJ Dunderdale’s Recommended Decision approving the Settlement.  Vote of 4-0 with no discussion. 

NO ANNOUNCEMENTS

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, APRIL 22, 2010 AT 10:00 A.M.

* Denotes Order