Highlights: PA PUC Public Session of June 9, 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 June 9, 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 30 at 10:00 a.m.  The minutes of the Public Meeting of May 5, 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.

BUREAU OF CONSUMER SERVICES

• Rulemaking - Chapter 56, 1202907-BCS, L-00060182.  The Commission is submitting a Report pursuant to Section 745.7(c) of the Regulatory Review Act, 71 P. S. § 745.7(c). The Commission has decided to revise the final-form regulation in order to respond to objections raised by the IRRC, and adopt this regulation with revisions. The Report contains the revised final-form regulation, which includes: the Revised Final Rulemaking Order, Annex A, and Attachments One through Six. In addition, the Report contains the findings of IRRC and our response and recommendations regarding the final-form regulation.  RECOMMENDATION:  That the Commission adopt the Report to the Independent Regulatory Review Commission.  Vote 5-0.

BUREAU OF CONSERVATION ECONOMICS & ENERGY PLANNING

• All matters approved as submitted.

OFFICE OF SPECIAL ASSISTANTS

• Bureau of Transportation & Safety vs Harry Williams t/a Eagle Taxi, 2134394-OSA, C-2010-2134394. Matter was postponed from the 05/19/2011 Public Meeting.  Complaint initiated on 10/6/09, 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 8/16/10 Eagle filed an Answer to the Complaint. On 2/10/11, 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.  Commissioner Gardner’s Statement, with which Commissioner Cawley associates, is attached.  Joint Dissenting Statement of Chairman Powelson and Vice Chairman Coleman is attached.  Vote 3-2.

• Robert Dunham vs PPL Electric Utilities Corp., 2155056-OSA, C-2010-2155056, Formal Complaint filed 1/25/10, alleging PPL misled him regarding the duration of the Residential Thermal Storage rate (RTS) when Complainant entered into the RTS rate schedule. ALJ Jandebeur's Initial Decision found that PPL had provided inadequate service by failing to advise the Complainant that the RTS rate would be discontinued in the future. Exceptions were filed by the Complainant and PPL.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which denies the Exceptions of the Complainant, grants the Exceptions of PPL, modifies the Initial Decision, and denies the Complaint.  Matter is postponed to the 06/30/11 Public Meeting.

• Law Bureau Prosecutory Staff vs Peoples Natural Gas, 2157542-OSA M-2011-2157542.  Settlement Agreement filed on 3/14/11, proposing to settle an informal investigation arising out of several natural gas service outages in a specific area of Altoona.  LBPS and Peoples also filed a Joint Statement in Support of the Settlement Agreement.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which issues the Settlement Agreement for Comment.  Commissioner Christy’s Statement is attached.  Vote 5-0.

• Little Washington Wastewater – SE Division, 2207853-OSA, R-2010-2207853, C-2010-2209923, C-2010-2213900, C-2010-2213719, C-2010-2215189, C-2010-2217542, C-2010-2217581, C-2010-2217951, C-2010-2218537.  Supplement No. 74 to Tariff Sewer - Pa. P.U.C. No. 1 filed on 10/29/10, to be come effective 1/1/11, proposing an annual increase of $1,078,292 or approximately 32.2% over existing revenue. By Order entered 12/16/10, the Commission instituted a formal investigation and Supplement 74 was suspended until 8/1/11.  ALJs Chestnut and Pell's Recommended Decision issued on 3/30/11, recommended that the Commission adopt a Joint Petition for Settlement submitted by LWW-SE, OTS and OCA that proposed, inter alia, an annual revenue increase of $999,000 or 29.9%.  Exceptions to the Decision were filed by Complainant Arnold Kring on 4/11/11. LWW-SE filed Replies to Exceptions on 4/21/11.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order that, inter alia, grants the Exceptions, in part, adopts the Decision to approve the Settlement without modification.  Vote 5-0.

• Newtown Artesian Water Co., 2211420-OSA, P-2010-2211420.  Matter postponed from the 05/19/11 Public Meeting.  Petition to, inter alia, modify its Purchased Water Adjustment Charge filed on 11/19/10. On 12/9/10, OCA filed an Answer and Motion to Dismiss. On 2/1/11, ALJ Barnes issued an Initial Decision, inter alia, granting OCA’s Motion. Exceptions were filed by NAWC on 2/22/11, and Replies to Exceptions were filed by OCA and OTS on 3/4/11.  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.  Motion of Commissioner Powelson moving to set a cap at 7.5%, which addresses current purchased water cost increases and is in line with caps on other surcharges.  Motion passes by a Vote 5-0.

BUREAU OF FIXED UTILITY SERVICES

• Consolidated Communications of Pennsylvania Company, 2235878-FUS, P-2011-2235878, P-00981437F1000.  2011 Price Stability Index/Service Price Index.  No tariffs were filed.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves this filing.  Vote 5-0.

• North-Eastern Pa. Telephone Co., 2236750-FUS, P-2011-2236750, P-00981435F1000.  2011 Price Stability Index/Service Price Index. No protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves this filing.  Vote 5-0.

• Marianna & Scenery Hill Telephone d/b/a Fairpoint Comm., 2236754-FUS P-2011-223675, P-00981434F10004.  2011 Price Stability Index/Service Price Index.  No tariffs were filed.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves this filing.  Vote 5-0.

• Bentleyville Comm d/b/a Fairpoint Comm., 2236760-FUS, P-2011-2236760, P-00981427F1000.  2011 Price Stability Index/Service Price Index.  No. protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves this filing.  Vote 5-0.

• Hickory Telephone Co., 2237763-FUS, R-2011-2237763, P-00981431F1000.  2011 Price Stability Index/Service Price Index and Tariff Supplement No. 136 to Tariff PA PUC No. 6, requesting a $20,336 increase from the application of the Service Price Index change. No protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the proposed rate increase.  Vote 5-0.

• Windstream Buffalo Valley Inc., 2237768-FUS, R-2011-2237768, P-00981428F1000.  2011 Price Stability Index/Service Price Index and Tariff Supplement No. 7 to Tariff PA PUC No. 9, proposing a $6,325 decrease from the application of the Service Price Index change. No protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the proposed rate change.  Vote 5-0.

• Windstream Conestoga, Inc., 2238776-FUS, R-2011-2238776, P-00981429F1000.  2011 Price Stability Index/Service Price Index and Tariff Supplement No. 8 to Tariff PA PUC No. 12, proposing a $4,695 decrease from the application of the Service Price Index change. No protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the proposed rate change.  Vote 5-0.

• Windstream D & E Inc., 2238777-FUS, R-2011-2238777, P-00981430F1000.  2011 Price Stability Index/Service Price Index and Tariff Supplement No. 7 to Tariff PA PUC No. 18, proposing a $7,055 decrease from the application of the Service Price Index change. No protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the proposed rate change.  Vote 5-0.

• Lackawaxen Telecommun Svcs Inc., 2239170-FUS, R-2011-2239170, P-00981432F1000.  2011 Price Stability Index/Service Price Index and Tariff Supplement No. 126 to Tariff PA PUC No. 2, requesting a $700 increase from the application of the Service Price Index change. No protests were filed and no hearings were held.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the proposed rate increase.  Vote 5-0.

COMBINED BUREAU AGENDA

• All matters approved as submitted.

LAW BUREAU

• Energy Efficiency Conservation Program & EDC Plans, 2069887-LAW, M-2008-2069887, M-00051865.  The Commission previously established the process by which electric distribution companies seek Commission approval of changes to Act 129 Energy Efficiency and Conservation Plans (EE&C Plans).  Recent experience has revealed that this process can take months to complete, regardless of the magnitude of proposed changes. The Commission recognizes that such delays can increase the cost of administering EE&C Plans and may cause miss opportunities for timely and cost-effective implementation of new energy efficiency measures As such, the Commission, through this Order, is establishing an expedited review process to approve minor EE&C Plan changes.  RECOMMENDATION:  That the Commission adopt the proposed Order.  Vote 5-0.

• Eligible Customer List, 2183412-LAW, M-2010-2183412, M-2009-2082042.  The PUC issued its Interim Guidelines for Eligible Customer Lists on 11/12/10. The Commission, among other things, limited the ability of consumers to restrict release of their customer information to EGSs. OCA and the PA Coalition Against Domestic Violence filed appeals of the Order and the PCADV requested a stay of the Order. Commonwealth Court granted the stay, and on 4/28/11, returned jurisdiction to the PUC on the Commission’s motion so that it could reconsider its November 12 Order.  RECOMMENDATION:  That the Commission approve the proposed Order.  Commissioner Christy’s Statement is attached.  Vote 5-0.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Saferide Transportation Services, LLC., 2159585-ALJ, A-2010-2159585.  Matter was postponed from the 05/19/11 Public Meeting.  Application filed on 2/18/10, for the right to begin to transport, as a common carrier, by motor vehicle, persons in paratransit service, to or from medical or nursing home facilities, from points in Lackawanna and Luzerne counties, to points in PA and return.  One protest was filed 3/18/10.  A hearing was held on 9/14/10.  COMMISSION REVIEW:  That the Commission adopt ALJ Jandebeur’s Initial Decision denying the application.  Vice Chairman Coleman’s Motion is attached, in which he moves to grant the Application of Saferide as it meets the public need for service within Luzerne County.  Motion passes by Vote 5-0.

• Peoples Natural Gas Co. LLC, 2201702-ALJ, R-2010-2201702.  Retail Tariff Gas – PA PUC No. 44 & Supplier Tariff Gas – PA PUC No. S-2, filed on 10/28/10, containing proposed changes calculated to produce approximately $70.2 million in additional annual revenues, representing a 21.4% increase in total annual operating revenues. The Commission entered an Order on 4/16/10 suspending Peoples’ rate request until 7/27/11.  On 4/11/11, the parties submitted a Joint Petition for Settlement.  COMMISSION REVIEW:  That the Commission adopt ALJs Corbett and Long’s Recommended Decision approving the Settlement.  Commissioner Cawley’s Statement, with which Chairman Powelson associates, is attached.  Vote 5-0.

• Little Washington Wastewater-Masthope, 2207833-ALJ, R-2010-2207833, C-2010-2209937, C-2010-2216419. Supplement No. 75 to Tariff Sewer-Pa. P.U.C. No. 1, filed on 10/29/10, proposing changes in rates to produce additional revenues to become effective 1/1/11.  A Petition to Intervene was filed by Masthope Rapids Property Owners Council on 12/16/10. A Joint Petition for Settlement of Rate Investigation was filed 3/24/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Chestnut and ALJ Pell’s Recommended Decision approving the Settlement.  Vote 5-0.

• West Penn Power Co., 2218683-ALJ, P-2011-2218683.  Petition filed on 12/30/10, requesting approval of West Penn’s dynamic pricing plan for Time-of-Use rates.  On 2/3/11, West Penn filed a further petition requesting the approval of West Penn’s dynamic pricing plan for a residential Critical Peak Rebate offering and a non-residential Critical Peak Pricing offering. On 5/13/11, the parties submitted a Joint Petition for Settlement of all issues and statements in support from the parties joining the Settlement.  COMMISSION REVIEW:  That the Commission adopt ALJs Long and Hoyer’s Recommended Decision approving the Settlement.  Commissioner Cawley’s Motion is attached, which moves that West Penn Power Company’s Petition for Approval of Dynamic Pricing Plans, as modified by the Joint Petition for settlement of May 13, 2011, and as modified by the Motion, be approved; that West Penn Power Company submit a compliance tariff as directed within 30 days of the Order; and that the Law Bureau draft an appropriate Order consistent with the Motion.  Motion passes, Vote 5-0.

• Consumer Advisory Council, 2244363-CMR.  Motion of Chairman Powelson– Appointment of Members is attached.  Vote 5-0.

CARRY-IN AGENDA

OFFICE OF SPECIAL ASSISTANTS

• All matters approved as submitted.

BUREAU OF FIXED UTILITY SERVICES

• Verizon Pennsylvania Inc., 2244373-FUS, R-2011-2244373.  Revision to Tariff Telephone – Pa P.U.C. No. 500, filed on 5/31/11, to become effective 6/1/11, stating the Company’s intent to withdraw its tariff for competitive offerings as permitted under 66 Pa. C.S. § 3016(d)(2).  RECOMMENDATION:  That the Commission adopt the proposed Order.  Commissioner Cawley’s Motion is attached, moving to withdraw informational tariff revisions made by Verizon Pennsylvania and Verizon North LLC filed on May 31, 2011, which should be deemed in violation of the Companies’ respective amended Chapter 30 alternative regulation and network modernization plans, and be suspended for a period not to exceed 6 months; that Verizon Pennsylvania Inc. and Verizon North LLC be directed to file the appropriate suspension supplements and restore their respective original information tariffs (Tariff 500 and Tariff 11) prior to their June 1, 2011 withdrawal; that the May 31, 2011 revisions submitted by Verizon Pennsylvania Inc. and Verizon North LLC be treated as letter petitions seeking the modification of the respective Chapter 30 amended alternative regulation and network modernization plans of the two companies; that the two cases separately relating to Verizon Pennsylvania Inc. and Verizon North LLC be consolidated for the purpose of further Commission inquiry; that the Commission shall accept comments, reply comments and supplemental comments with the entry of the appropriate initial Order; that the Law Bureau evaluate the comments, reply and supplemental comments; that any timely filed formal complaints shall be considered; and that the Law Bureau prepare the appropriate initial Order.  Motion passes by Vote 5-0.

• Verizon North LLC, 2244375-FUS, R-2011-2244375.  Revision to its Tariff Telephone – PA P.U.C. No. 11, filed on 5/3/11, to become effective 6/1/11, stating the Company’s intent to withdraw its tariff for competitive offerings as permitted under 66 Pa. C.S. § 3016(d)(2).  RECOMMENDATION:  That the Commission adopt the proposed Order.  Commissioner Cawley’s Motion is attached.  See Verizon Pennsylvania Inc. referenced above.  Motion passes by Vote 5-0.

LAW BUREAU

• Proposed Rulemaking-Promotion of Competitive Retail Markets, 2069114-LAW, L-2008-2069114, I-00040103F0002.  The Commission adopted a Final Rulemaking Order on 1/13/11. Based upon input from the Independent Regulatory Review Commission (IRRC) and the comments submitted to the IRRC, the Commission voluntarily withdrew the rulemaking in order to give consideration to the various clarification issues raised by IRRC and comments.  RECOMMENDATION:  That the Commission approve the proposed Secretarial Letter and Annex A.  Attached are the Statements of Vice Chairman Coleman and Commissioner Christy.  Vote 5-0.

• Windstream Pennsylvania LLC – PA, 2240238-LAW, M-2011-2240238.  Safety Valve Numbering Resource Request submitted on 5/25/11, pursuant to the Order entered at M-2008-2032767. Windstream PA is requesting expedited review of a denial by the Pooling Administrator of its request for additional numbering resources in the 724 Number Plan Area (NPA). Windstream PA requests a 1K block from the 724 NPA be assigned to the Elderton Rate Center because it is deploying a new packet switch in this rate center in order to support a new product offering that cannot be provisioned by the legacy switch located in the rate center. Windstream PA’s request comes before the Commission since it did not meet the months-to-exhaust criteria nor the utilization criteria established by the FCC in its Third Report and Order.  RECOMMENDATION:  That the Commission grant the request for additional numbering resources in the 724 area code.  Vote 5-0.

• Windstream Pennsylvania LLC - PA, 2240352-LAW, M-2011-2240352.  Safety Valve Numbering Resource Request submitted on 5/25/11, pursuant to the Order entered at M-2008-2032767.  Windstream PA is requesting expedited review of a denial by the Pooling Administrator of its request for additional numbering resources in the 724 Number Plan Area (NPA). Windstream PA requests a 1K block from the 724 NPA be assigned to the Waynesburg Rate Center for Location Routing Number (LRN) purposes.  Windstream makes this particular request for additional numbering resources because it is deploying a new packet switch in this rate center in order to support a new product offering that cannot be provisioned by the legacy switch located in the rate center.  Windstream PA’s request comes before the Commission since the Company’s did not meet the months-to-exhaust criteria nor the utilization criteria established by the FCC in its Third Report and Order.  RECOMMENDATION:  That the Commission grant the request for additional numbering resources in the 724 area code.  Vote 5-0.

• Windstream Pennsylvania LLC - PA, 2240381-LAW, M-2011-2240381.  Safety Valve Numbering Resource Request submitted on 5/25/11, pursuant to the Order entered at M-2008-2032767. Windstream PA is requesting expedited review of a denial by the Pooling Administrator of its request for additional numbering resources in the 724 Number Plan Area (NPA). Windstream PA requests a 1K block from the 724 NPA be assigned to the Ford City Rate Center because it is deploying a new packet switch in this rate center in order to support a new product offering that cannot be provisioned by the legacy switch located in the rate center. Windstream PA’s request comes before the Commission since it did not meet the months-to-exhaust criteria nor the utilization criteria established by the FCC in its Third Report and Order.  RECOMMENDATION:  That the Commission grant the request for additional numbering resources in the 724 area code.

• Windstream D & E Systems Inc. – PA, 2240864-LAW, M-2011-2240864.  Safety Valve Numbering Resource Request submitted on 5/25/11. Windstream D&E is requesting expedited review of a denial by the Pooling Administrator of its requests for additional numbering resources in the 717 Number Plan Area (NPA). Specifically, Windstream requests a 1K block of telephone numbers from the 717 NPA be assigned to the Elizabethtown Rate Center.  Windstream D&E’s request comes before the Commission since it does not meet the numbering resource utilization and months-to-exhaust (MTE) threshold implemented by Neustar to obtain additional numbering resources.  RECOMMENDATION:  That the Commission grant the request for additional numbering resources in the 717 area code.  Vote 5-0.

ANNOUNCEMENTS

• The Bureau of Conservation, Economics & Energy Planning’s (CEEP) Annual Reliability Meeting will be held at 1 p.m. today.

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

* Denotes Order