Highlights: PA PUC Public Session of May 19, 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 May 19, 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, June 9 at 10:00 a.m.  The minutes of the Public Meeting of April 28, 2011, were, by a vote of 5-0, approved without modification.

MAIN AGENDA

BUREAU OF TRANSPORTATION & SAFETY

• All matters approved as submitted.

BUREAU OF AUDITS

• All matters approved as submitted.

OFFICE OF SPECIAL ASSISTANTS

• Bureau of Transportation & Safety vs. Germantown Cab Co., 2113563-OSA, C-2010-2113563, C-2010-2123058, C-2010-2116414.  Matter was postponed from the 05/05/11 Public Meeting.  Complaints instituted on 02/01/10, 02/03/10, and 02/04/10, alleging various violations of the Public Utility Code, 66 Pa. C.S. §§ 101, et seq., and the Commission’s Regulations, 52 Pa. Code §§ 1.1, et seq. BTS requested that a combined civil penalty of $4,650 be imposed. The Respondent filed an Answer to each Complaint, which denied the allegations. On 01/21/11, the Respondent and the Commission’s Law Bureau Prosecutory Staff filed a Settlement Agreement in order to satisfy the Complaints. As part of the Settlement, the proposed combined penalty of $4,650 would be reduced to $2,700.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which approves the proposed Settlement.  Commissioner Powelson’s Statement is attached.  Vote 5-0.

• Laura Maisch vs. Peco Energy Company, 2118649-OSA, C-2009-2118649.  Formal Complaint filed on 07/07/09, alleging that there were incorrect charges on her bills from 10/2008 through 05/2009. A Hearing was held on 01/19/10, before ALJ Rainey. By Initial Decision issued on 02/25/11, the ALJ sustained the Complaint, in part, dismissed it, in part, and assessed a civil penalty of $1,000 against PECO for its violation of § 1501 of the Public Utility Code. The Complainant filed Exceptions to the Initial Decision on 03/18/11. PECO filed Reply Exceptions on 03/29/11.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which denies the Complainant’s Exceptions, and adopts the ALJ’s Initial Decision, consistent with the Opinion and Order.  Jt. Motion of Commissioner Gardner and Vice Chairman Coleman is attached.  The Joint Motion moves to deny Exceptions of the Complainant based on the fact that PECO did not provide adequate customer service (confusing customer bills), the bill format issue needs further review and that the Initial Decision be adopted, as modified by the Joint Motion and an Order be prepared, consistent with the Joint Motion.  Vote 5-0.

• Bureau of Transportation & Safety vs. Harry Williams t/a Eagle Taxi, 2134394-OSA, C-2010-2134394.  Postponed from the 05/05/11 Public Meeting.  Complaint initiated on 10/06/09, alleging various violations of Commission’s Regulations pertaining to maintaining insurance and certain log sheets.  BTS sought a civil penalty of $162,750 for these alleged violations and the cancellation of Eagle’s Certificate of Public Convenience.  On 08/16/10 Eagle filed an Answer to the Complaint.  On 02/10/11, the Parties filed a Settlement Agreement to resolve the allegations in the Complaint.  As part of the Settlement Agreement, the Parties proposed that Eagle maintain its Certificate of Public Convenience and the civil penalty be reduced from $162,750 to $5,000.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which approves the proposed Settlement Agreement.  The matter is postponed to the 06/09/11 Public Meeting.

• Deborah L. Anderson vs. PECO Energy Company, 2136754-OSA, C-2009-2136754.  The matter was postponed from the 05/05/11 Public Meeting.  Formal Complaint filed on 10/13/09, requesting an affordable payment arrangement, contested her account arrearage, and asserted that PECO improperly denied her use of medical certificates.  On 11/09/09, PECO filed an Answer and New Matter.  On 5/21/10, PECO filed a Motion for Judgment on the Pleadings.  In an Initial Decision, issued on 12/30/10, ALJ Buckley granted PECO’s Motion and dismissed the Complaint with prejudice.  The Complainant filed Exceptions to the Initial Decision on 01/21/11.  Replies to Exceptions were not filed.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which grants the Exceptions, reverses the Initial Decision, and remands the case to the Office of ALJ for further proceedings.  Commissioner Christy’s Dissenting Statement, with which Chairman Powelson associates, is attached.  Vote 3-2.

• Laser Marcellus Gathering Company, LLC, 2153371-OSA, A-2010-2153371.  Postponed from 04/28/11 Public Meeting.  Application filed on 01/19/10, for a Certificate of Public Convenience seeking authority to begin providing natural gas gathering and transporting or conveying service to the public for compensation.  Public input and evidentiary hearings were held.  On 9/10/10, various Parties filed a non-unanimous Joint Petition for Settlement.  Briefs and Reply Briefs were filed by the Parties.  The Commission issued the Recommended Decision of ALJ Colwell on 12/01/10, in which she recommended that the Settlement be rejected and the Application be denied.  On 01/14/11, various parties filed Exceptions to the ALJ’s Decision.  On 02/07/11 various Parties filed Replies to Exceptions.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order, which denies the Exceptions and adopts the ALJ’s Recommended Decision, to the extent it is consistent with the discussion in the Opinion and Order.  Commissioner Gardner’s Motion is attached, moving to have the Office of Special Assistants draft an appropriate Order consistent with said Motion, which concludes that this case should be remanded to the OALJ for the limited purpose of determining whether the granting of a certificate of pubic convenience is “necessary or proper for the service, accommodation, convenience, or safety of the public” under Section 1103(a) of the Code, 66 Pa.C.S. § 1103(a).  It also concludes that the record should be developed so that the following questions may be answered:  1) If a Certificate of Public Convenience is determined to be necessary or proper, should any conditions be imposed as conditions precedent?  2) Should an exclusive service territory be considered?  3) Should Laser’s interconnect contracts be publicly available to police and prevent unreasonable discrimination in violation of Section 1304 of the Code?  4) Is Laser’s proposed tariff reasonable under the Code?  5) Are the Settlement terms in the public interest?  Vice Chairman Coleman’s Statement is attached.  Commissioner Cawley’s Dissenting Statement is attached, in which he states that the Commission’s determination that the applicant is a “public utility” significantly expands the scope of the use of the eminent domain power by “public utilities;” that the property rights of a significant portion of the citizens of the Commonwealth have been substantially affected by today’s decision;  and that rather than the broad interpretation of the law rendered today, legislative guidance on the public utility status of natural gas gathering lines would have been far preferable.  Commissioner Christy Dissented with an Oral Statement and associates with Commissioner Cawley’s Dissenting Statement.  Vote 3-2.

• Newtown Artesian Water Co., 2211420-OSA, P-2010-2211420.  Petition to, inter alia, modify its Purchased Water Adjustment Charge filed on 11/19/10.  On 12/09/10, OCA filed an Answer and Motion to Dismiss.  On 02/01/11, ALJ Barnes issued an Initial Decision, inter alia, granting OCA’s Motion.  Exceptions were filed by NAWC on 02/22/11, and Replies to Exceptions were filed by OCA and OTS on 03/04/11.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order that denies NAWC’s Exceptions and adopts the Initial Decision, consistent with the Opinion and Order.  The matter has been postponed to the 06/09/11 Public Meeting.

• Sprint Communications Co., LP and Windstream Pennsylvania, LLC, 2232041-OSA, A-2011-2232041, A-310183F7004.  Joint Petition filed on 03/08/11, seeking approval of Amendment No. 1 to an Interconnection Agreement.  Notice was published in the PA Bulletin.  No comments were received.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which grants the Joint Petition.  Vote 5-0.

BUREAU OF FIXED UTILITY SERVICES

• PPL Electric Utilities Corp., 2153807-FUS, A-2010-2153807.  Petition filed on 01/19/10, pursuant to 52 Pa. Code § 5.41 and 53 P.S. § 10619, for a finding that a building to shelter control equipment at the proposed Beltzville 69-12kV Substation to be constructed in Towamensing Township, Carbon County, is reasonably necessary for the convenience or welfare of the public and therefore, exempt from any local zoning ordinance.  No protests were filed.  A hearing was held.  RECOMMENDATION:  That the Commission adopt the proposed Order that grants the petition.  Vote 4-1. 

• TRS Annual Surcharge Recalculation 2011-2012, 2218783-FUS, M-2011-2218783, M-00900239.  Annual recalculation of the Pennsylvania TRS Surcharge, and notifying the LECs that the monthly residential and business monthly wireline access line surcharge to be applied from 07/01/11 through 06/30/12, will be set at $0.08 per access line.  This surcharge recalculation factors in costs estimates for TRS, TDDP, and PMASP operations.  RECOMMENDATION:  That the Commission adopt the proposed Order.  Vote 5-0.

• Verizon North, LLC, 2234462-FUS, R-2011-2234462, C-2011-2237496.  Tariff Telephone – PA P.U.C. No. 10, filed on 04/05/11, proposing to introduce a new service outlining rates, terms, and conditions for the provision of Tandem Transit Traffic Service.  On 04/22/11 formal complaints were filed against the proposed service.  On 04/25/11, the Commission issued a Secretarial Letter extending the review period of this filing and its effective date by 30 days, or until 6/4/11.  RECOMMENDATION:  That the Commission adopt the proposed Order.  Commissioner Cawley’s Statement is attached.  Vote 5-0. 

• Verizon Pennsylvania, Inc., 2234464-FUS, R-2011-2234464, C-2011-2237456.  Tariff Telephone– PA P.U.C. No. 219, filed on 04/05/11, proposing to introduce a new service outlining rates, terms, and conditions for the provision of Tandem Transit Traffic Service.  On 04/22/11 formal complaints were filed against the proposed service.  On 04/25/11, the Commission issued a Secretarial Letter extending the review period of this filing and its effective date by 30 days, or until 06/04/11.  RECOMMENDATION:  That the Commission adopt the proposed Order.  Commissioner Cawley’s Statement is attached.  Vote 5-0.

• Bureau of Fixed Utility Services, 2239502-FUS, M-2011-2239502.  Report to the Commission regarding quarterly earnings of PA utilities for the quarter ended 12/31/10, representing the earned and adjusted returns on rate base and common equity capital for PA non-telephone fixed utilities with jurisdictional operating revenues of over $1,000,000 and includes detailed, market-based analysis of the current cost of equity across industry-wide groups.  RECOMMENDATION:  That the Commission make the Earnings Report public.  Vote 5-0.

LAW BUREAU

• All matters approved as submitted.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• UGI Utilities, Inc. – Gas Division, 2208197-ALJ, M-2010-2208197.  Postponed from 04/28/11.  Gas Division’s Low Income Self Help Program (LISHP) Reconciliation Statement filed on 10/29/10, for the period of 12/01/08 through 09/30/10.  A hearing was held on 02/17/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Colwell’s Recommended Decision accepting the Statement, insofar as it is undisputed.  Vice Chairman Coleman’s Motion moves 1) to have the Commission accept the Reconciliation Statement as adequate within the meaning of Code Section 1307(e) but expressly subject to further review as may be found necessary by a subsequent Commission audit; 2) that as a matter of law, UGI Gas is not permitted to recover interest on under collections related to the company’s LISHP for the December 2008 through September 2010 time period; 3) that the recovery of under collections, excluding interest, should be implemented based upon the operation of the automatic adjustment clauses as set forth in the company’s tariff; and 4) that the office of Special Assistants prepare an Opinion and Order consistent with the Motion that is attached.  Vote 5-0.

• UGI Utilities, Inc. – Electric Division, 2208246-ALJ, M-2010-2208246.  Postponed from the 04/28/2011 Public Meeting.  Customer Assistance Program (CAP) Rider 1307(e) Reconciliation Statement filed on 10/29/10, for the period 12/01/08 to 09/30/10.  A hearing was held on 02/17/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Colwell’s Recommended Decision accepting the Statement, insofar as it is undisputed.  Vice Chairman Coleman’s Motion moves 1) to have the Commission accept the Reconciliation Statement as adequate within the meaning of Code Section 1307(e) but expressly subject to further review as may be found necessary by a subsequent Commission audit; 2) UGI Electric shall not pay interest on over collections related to the company’s CAP for the December 2008 through September 2010 time period; 3) that the refund of over collections, excluding interest, should be implemented based upon the operation of the automatic adjustment clauses as set forth in the company’s tariff; and 4) that he office of Special Assistants prepare an Opinion and Order consistent with the Motion that is attached.  Vote 5-0.

• T.W. Phillips Gas & Oil Co., Twp. Inc., and LDC Holdings II, LLC, 2210326-ALJ, A-2010-2210326.  Joint Application filed on 11/10/10, for approval of the transfer by sale of 100% of the outstanding common stock of T.W. Phillips, currently owned by TWP to LDC Holdings II.  Several entities filed protests or petition to intervene.  On 04/15/11, the Joint Applicants filed a settlement petition and attachments.  COMMISSION REVIEW:  That the Commission adopt ALJ Salapa’s Initial Decision approving, without modification the Joint Application.  The Statements of Commissioners Cawley and Gardner are attached.  Commissioner Christy made an Oral Statement at the Public Meeting.  Vote 5-0, with Commissioner Gardner concurring in result only.

CARRY-IN AGENDA

BUREAU OF TRANSPORTATION & SAFETY

• All matters approved as submitted.

BUREAU OF AUDITS

• PPL Electric Utilities Corp., 2239805-AUD, M-2011-2239805.  Transmission Service Charge.  RECOMMENDATION:  That the Commission direct PPL to submit, within 10 days, the appropriate tariff supplement to become effective 06/01/11 reflecting revised TSC rates.  Chairman Powelson’s Motion moves to order PPL to refile its proposed TSC rates for the Large C&I customer group that will become effective on 06/01/11 and to reset the entire Large C&I e-factor balance set forth therein to zero for the period 06/01/11 through 05/31/11, and that the Office of Special Assistants prepare an Opinion and Order consistent with the attached Motion.  Vote 5‑0.

BUREAU OF FIXED UTILITY SERVICES

• All matters approved as submitted.

LAW BUREAU

• All matters approved as submitted.

ANNOUNCEMENTS

• A Special Memorial Day Observance was held before meeting.
• There will be an employee recognition ceremony following the meeting for employees employed with the Commission for 25+ years.
• Ken Miceli of Commissioner Cawley’s staff is retiring after 33 years with the Commission.

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, JUNE 9, 2011 AT 10:00 A.M.

* Denotes Order