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Highlights: PA PUC Public Session of February 24, 2011

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 February 24, 2011, 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 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, March 17 at 10:00 a.m.  The minutes of the Public Meeting of January 27, 2011, were, by a vote of 5-0, approved without modification.

MAIN AGENDA

BUREAU OF TRANSPORTATION & SAFETY

• Frank H. Barton T/A F H Barton Transportation, 2178503-TAS, A-2010-2178503.  Application for the right to begin to transport as a common carrier by motor vehicle, persons in paratransit service.  Susquehanna, Susquehanna County.  It is recommended that the Commission adopt the proposed Order approving the Application.  Vote 5-0.

BUREAU OF CONSUMER SERVICES

• Rulemaking to Amend Chapter 56, 120297-BCS, L-00060182 (Postponed from 02/10/2011).  The Governor signed into law SB 677, or Act 201 on 11/20/04.  This law went into effect 12/14/04.  Act 201 amended Title 66 by adding Chapter 14 (66 Pa. C.S. §§1401-1418), Responsible Utility Customer Protection.  In the implementation of Act 201, we have addressed and resolved numerous issues involving the application of Chapter 14 provisions.  However, we must still implement Section 6 of the Act which requires the Commission to amend Chapter 56 of the PA Code to comply with the provisions of Chapter 14 of the Public Utility Code.  In order to facilitate the completion of this responsibility under the Act, and also a general review of Chapter 56, on 11/30/06 we issued an Advance Notice of Proposed Rulemaking Order seeking comments from all parties.  Upon review of the comments, we issued a Proposed Rulemaking Order on 9/26/08.  Independent Regulatory Review Commission, along with 24 parties, filed comments.  Upon careful review and consideration of the comments, Staff prepared this Final Rulemaking Order.  It is recommended that the Commission adopt the attached Final Rulemaking Order.  Vote 5-0.  Commissioner Powelson’s Motion, modifying the Order, is attached.  Commissioner Coleman’s Partial Dissenting Statement, with which Chairman Cawley associates, is attached.

OFFICE OF SPECIAL ASSISTANTS

• PPL Electric Utilities Corp., 2060309-OCA, P-2008-2060309.  Petition for Approval of a Default Service Program and Procurement Plan (DSP Plan Petition), filed on 5/18/10, for the period 1/1/11 through 5/31/13 to modify its procurement of Solar Alternative Energy Credits.  On 12/17/10, the Commission issued ALJ Colwell’s Recommended Decision in which she recommended approval of the Joint Petition for Partial Settlement of PPL’s DSP Plan Petition that was filed on 11/16/10.  On 12/27/10, the Sustainable Energy Fund (SEF) filed Exceptions to ALJ Colwell’s Decision.  On 1/3/11, PPL filed Replies to Exceptions.  It is recommended that the Commission adopt the proposed Opinion and Order which denies SEF’s Exceptions and adopts the ALJ’s Recommended Decision.  Vote 4-1.  Vice Chairman Christy’s Dissenting Statement is attached.  Chairman Cawley’s Statement, with which Commissioner Powelson associates, is attached.

• Constantine Daskalakis v. Verizon Pennsylvania, Inc., 2172222-OSA, C-2010-217222.  Formal Complaint filed on 4/22/10, alleging a quality problem with his DSL Internet service.  Vz was granted an extension of time to file its Answer, which was subsequently filed on 5/25/10, along with a New Matter.  Also on 5/24/10, Vz filed Preliminary Objections citing legal insufficiency as well as lack of subject matter jurisdiction as reasons to dismiss the Complaint.  On 6/16/10, the Complainant filed a Response to Vz’s Answer and New Matter.  On 7/13/10, ALJ Weismandel’s Initial Decision Granting Preliminary Objections and dismissed the Complaint.  Exceptions were filed by the Complainant on 7/30/10.  Reply Exceptions were filed by the Respondent on 8/12/10.  It is recommended that the Commission adopt the proposed Opinion and Order that denies the Exceptions and adopts ALJ Weismandel’s initial Decision which grants the Preliminary Objections and dismisses the Complaint.  Matter postponed to 03/17/11 Public Meeting.

• West Penn Power TrailCo. and First Energy, 2176520-OSA, A-2010-2176520, A-2010-2176732.  Joint Application filed on 5/14/10, for approval for a change of control of West Penn Power d/b/a Allegheny Power and Trans-Allegheny Interstate Line Co., to be effected by the merger of Allegheny and with Element Merger Sub., Inc., a wholly-owned subsidiary of FirstEnergy Corp.  The Joint Application also requested the approval of certain revisions to affiliated interest agreements designed to facilitate the sharing of services between Allegheny and FirstEnergy.  By Initial Decision issued 12/20/10, ALJs Weismandel and Long recommended that a Joint Petition for Partial Settlement be approved and that the Joint Application, as amended by the Joint Petition, be approved.  On 1/10/11, Exceptions to the Initial Decision were filed by parties.  On 1/20/11, Reply Exceptions were also filed.  It is recommended that the Commission adopt the proposed Opinion and Order that denies in part, and grants in part, the Exceptions; and approves the Joint Application, as supplemented by the Joint Petition, as further amended by this Opinion and Order.  Commissioner Gardner’s Motion is attached.  Motion passes 4-1, with Vice Chairman Christy dissenting.  Commissioners Powelson’s and Coleman’s Joint Motion is attached.  Joint Motion passes 3-2, with Vice Chairman Christy and Chairman Cawley dissenting.  Vice Chairman Christy’s Dissenting Statement and Chairman Cawley’s Dissenting Statement are attached.  Statement by Commissioner Coleman is attached.

• Consolidated Communications Enterprise Services and Verizon North Retain Co., 2214951-OSA, A-2010-2214951.  Petition filed on 12/10/10, seeking approval of Amendment No. 2, to an Interconnection Agreement pursuant to Section 252(e) of the Telecommunications Act of 1996.  Notice was published in the PA Bulletin.  It is recommended that the Commission adopt the proposed Opinion and Order which grants the Joint Petition.  Vote 5-0.

BUREAU OF FIXED UTILITIES

• Little Washington Wastewater, Co., 2207949-FUS, A-2010-2207949.  Application filed on 10/27/10, for approval to begin to offer, render, furnish and supply wastewater service to the public in an additional portion of Hazle Township, Luzerne County.  It is recommended that the Commission adopt the proposed Order that approves the application.  Vote 5-0.

• Aqua Pennsylvania, Inc., 2207951-FUS, A-2010-2207951.  Application filed on 10/27/10, for approval to offer, render, furnish and supply water service to the public in an additional portion of Hazle Township, Luzerne County.  It is recommended that the Commission adopt the proposed Order that approves the application.  Vote 5-0.

• Starion Energy PA, Inc., 2210819-FUS, A-2010-2210819.  Application filed on 11/15/10, for a license to offer, render, furnish or supply electricity or electric generation services as a supplier of electricity to residential, small commercial (25KW demand), industrial and governmental customers in all electric distribution company service territories, within PA.  It is recommended that the Commission adopt the proposed Order which approves the application.  Vote 4-1, with Vice Chairman Christy dissenting. 

• Energy Services Providers, Inc. d/b/a Pennsylvania Gas & Electric, 2212421-FUS, A-2010-2212421.  Application filed on 11/29/10, for a license to offer, render, furnish or supply electricity or electric generation services as a supplier and aggregator of retail electric power 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 of Allegheny Power, Duquesne Light, PECO Energy, PPL Electric, Pike County Light & Power, and UGI Utilities, within PA.  It is recommended that the Commission adopt the proposed Order which approves the application.  Matter postponed to 03/17/11 Public Meeting.

• Ironton Telephone Co., 2223519-FUS, P-2011-2223519.  2011 Price Stability Index/Service Price Index Filing.  No tariffs were filed.  It is recommended that the Commission adopt the proposed Order.  Vote 5-0.

• Citizens Telephone Co. of Kecksburg, 2223605-FUS, R-2011-2223605.  2011 Annual Price Stability Index, Service Price Index Reports and Tariff Supplement No. 146 to Tariff PA PUC No. 3, requesting a $74,658.00 increase from the application of the Service Price Index change.  It is recommended that the Commission adopt the proposed Order approving the proposed rate increase.  Vote 5-0.

LAW BUREAU

• Implementation of the Alternative Energy Portfolio Standards Act of 2004, 1190373-LAW, M-00051865.  The Commission adopted the 2009 update to the TRM on 5/28/09.  In that Order, the Commission directed the Bureau of CEEP to annually revise the TRM.  In 8/09, the Commission contracted with GDS Associates, Inc., to be the Act 129 Statewide Evaluator (SWE), which, among other duties, is to assist in reviewing and providing suggested changes to the TRM and Total Resource Cost Test.  The SWE, in conjunction with a Technical Working Group, has reviewed the 2010 TRM update.  The Commission sought and received comments on the proposed 2011 TRM update.  The Commission issues the instant order adopting the 2011 version of the TRM as modified by the Order.  It is recommended that the Commission adopt the proposed 2011 TRM Annual Update.  Vice Chairman Christy’s Motion fails.  Matter approved by 4-1 Vote.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Karen Scheel v. Verizon Pennsylvania, Inc., 2076064-ALJ, C-2008-2076064.  Formal Complaint filed on 11/19/08, alleging various problems with Verizon’s phone service, including but not limited to, payment only by credit card, failure to lift freeze on telephone number, failure to credit and close account, poor installation of FIOS service, and service advertising that is deceptive and fraudulent.  On 12/17/08, Vz filed an Answer, New Matter and Preliminary Objections to the complaint.  On 3/30/09, CALJ Smith ruled on the Preliminary Objections.  On 4/22/09, Vz filed a Motion for Issuance of a Protective Order.  The Protective Order was issued on 5/18/09 as there were no objections and there were appropriate grounds to do so.  A hearing was held on 6/17/09.  Commission Review:  That the Commission adopt ALJ Jones’ Initial Decision sustaining the complaint.  Matter postponed to 3/17/11 Public Meeting. 

• Duquesne Light Company, 2179522-ALJ, R-2010-2179522.  Supplement No. 35 to Tariff Electric – Pa. P.U.C. No. 24, filed on 7/23/10, containing proposed changes in rates, rules, and regulations calculated to produce approximately $87.3 million in additional annual distribution service revenues.  On 09/16/10, an Order was adopted and entered by the Commission which, inter alia, suspended the proposed Supplement No. 35 until 4/21/11, and ordered an investigation.  Petitions to Intervene by Citizen Power and the International Brotherhood of Electrical Workers, Local 29 were filed and granted.  On 1/7/11, a Joint Petition for Settlement of all Issues was filed.  Commissioner Review:  That the Commission adopt ALJ’s Johnson and Hoyer’s Recommended Decision approving the Joint Petition for Settlement of all issues without modification.  Vote 5-0.

CARRY-IN AGENDA

BUREAU OF AUDITS

• All matters approved as submitted.

LAW BUREAU

• All matters approved as submitted.

SUPPLEMENTAL CARRY-IN AGENDA

• Bureau of Fixed Utility Services, 2219217-FUS, M-2011-2219217.  Report representing the earned and adjusted returns on rate base and common equity capital for Pennsylvania non-telephone fixed utilities with jurisdictional operating revenues of over $10,000,000.  Staff has included detailed, market-based analysis of the current cost of equity across industry-wide groups.  It is recommended that the Commission make the earnings report public.  Matter postponed to the 3/17/11 Public Meeting. 

ANNOUNCEMENTS

• Governor Corbett appoints Robert F. Powelson as new Chairman, effective 2/24/11 at 1 p.m.

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, MARCH 17, 2011 AT 10:00 A.M.

* Denotes Order