Highlights: PA PUC Public Session of July 14, 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 July 14, 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, July 28 at 10:00 a.m.  The minutes of the Public Meeting of June 9, 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

• Met-Ed, PENELEC, Penn Power, 2143263-AUD, D-2009-2143263, D-2009-2143264, D-2009-2143265.  Matter postponed from the 6/30/2011 Public Meeting.  Management Efficiency Investigation Evaluating the Implementation of Selected Recommendations from the 2007 Stratified Management and Operations Audit.  RECOMMENDATION:  That the Commission make the MEI report and the FE-PA Companies Implementation Plan public.  Motion of Commissioner Cawley is attached.  Vote 5-0. 

OFFICE OF SPECIAL ASSISTANTS

• John Peluso vs. Pennsylvania Power Company, 2152607-OSA, F-2010-2152607.  Matter was postponed from the 6/30/2011 Public Meeting.  Formal Complaint filed on 1/14/10, alleging, inter alia, that prior to the installation of a new transformer in 4/09, he was not receiving sufficient power.  Mr. Peluso requested that he be reimbursed for overcharges on his electric bill and for the shortened life of his furnace motor, light bulbs and appliances.  By Initial Decision issued on 11/18/10, ALJ Dunderdale sustained the Complaint and directed that Penn Power recalculate the Complainant’s electric consumption and issue a corrected bill.  Penn Power filed Exceptions on 12/08/10, No Reply Exceptions were filed.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order that grants the Exceptions in part, denies them in part, reverses the Initial Decision and dismisses the Complaint.   Vice Chairman Coleman’s Conflicts Statement is attached.  Vote 5-0.

• Laser Marcellus Gathering Company, 2153371-OSA, A-2010-2153371.  Application for a Certificate of Public Convenience filed on 1/19/10, authorizing it to begin to offer natural gas gathering and transporting or conveying service by pipeline to the public in the townships of Apolacon, Choconut, Forest Lake, Great Bend, Jessup, Liberty, Middletown, and New Milford in Susquehanna Township, Pennsylvania.  By Opinion and Order, entered 6/14/11, the Commission made a determination in the above-captioned proceeding.  Petition for Reconsideration or, in the Alternative, Clarification of the Commission’s Opinion and Order filed on 6/29/11 by Mark West Liberty Midstream & Resources, LLC; and on 6/29/11, the Pennsylvania Independent Oil and Gas Association filed a Petition for Reconsideration of the Commission’s Opinion and Order.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which grants the Petitions, pending further review of, and consideration on, the merits.  Vote 5-0.

• Shira Meng Master Holding LP vs. Philadelphia Gas Works, 2213316-OSA, C-2010-2213316.  Formal Complaint filed on 11/30/10, alleging that PGW improperly filed a lien against one of its realty holdings.  The Complaint requested that the Commission direct PGW to remove the lien.  On 12/20/10, PGW filed an Answer denying the material allegations of the Complaint.  Also on that date, PGW filed Preliminary Objections and Motion to Strike Impertinent Matter.  The Complainant did not file an answer to PGW’s Preliminary Objections.  In her Initial Decision, issued on 3/23/11, ALJ Jandebeur recommended that the Preliminary Objections filed by PGW be sustained and that the Complaint be dismissed.  On 4/11/11, the Complainant filed Exceptions to the Initial Decision.  On 4/21/11, PGW filed Reply Exceptions.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order that:  (1) denies the Complainant’s Exceptions to the Initial Decision; and (2) adopts the Initial Decision as the action of the Commission.  The matter is postponed to the 7/28/2011 Public Meeting. 

BUREAU OF FIXED UTILITY SERVICES

• All matters approved as submitted.

COMBINED BUREAU AGENDA

• City of Bethlehem – Bureau of Water, 2244756-FUS, R-2011-2244756.  Supplement No. 8 to Tariff Water – Pa. P.U.C. No. 6, filed on 5/27/11, proposing an annual increase in revenues of $996,710 (13.6%) for customers residing outside the City to become effective 7/26/11.  On 6/15/11, OCA filed a Formal Complaint.  RECOMMENDATION:  That the Commission adopt the proposed Order that suspends the tariff and institutes an investigation.  Vote 5-0.

• City of Bethlehem – Bureau of Water, 2244756-OTS, R-2011-2244756.  Supplement No. 8 to Tariff Water – Pa. P.U.C. No. 6, filed on 5/27/11, to become effective 7/26/11, proposing an increase of $996,710 which represents an increase in annual revenues of 13.5% for jurisdictional customers.  RECOMMENDATION:  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 2/16/12.  Adopted, Vote 5-0 to the extent it is consistent with 2244756-FUS.

LAW BUREAU

• North East Heat & Light Co., 2214432-LAW, P-2010-2214432, M-2010-2203164.  Waiver of 52 Pa. Code § 53.66(d) reducing its interest rate on over-collections to 2% for the previous GCR year, based on extraordinary circumstances that resulted in a large net over-collection, granted on 12/17/09 (M-2009-2134358).  On 11/24/10, NEH&L filed a letter with the Secretary’s Bureau requesting that the waiver again be granted to them at the same rate citing similar reasons.  The letter was not served on the Statutory Advocates or any other interested party.  RECOMMENDATION:  That the Commission adopt the proposed Tentative Order and further recommends that the order be served on NEH&L, OTS, and OSBA for comment.  Motion of Commissioner Gardner is attached.  Vote 5-0.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• All matters approved as submitted.

CARRY-IN AGENDA

OFFICE OF SPECIAL ASSISTANTS

• UGI PENN Natural Gas Company, 2213893-OSA, A-2010-2213893, G-2010-2213894.  Application filed on 12/1/10, requesting a certificate of public convenience and Affiliated Interest Agreement representing the Pipeline Interconnection, Operating and Emergency Services Agreement between UGI Energy Services (UGIES) and PNG.  An initial prehearing conference was held before ALJ Buckley on 1/7/11.  An evidentiary hearing was held on 3/16/11 and on 3/23/11; PNG, the OTS and OCA filed a Joint Stipulation in Settlement resolving all issues.  The OSBA reserved one issue for litigation.  On 3/30/11 and 4/8/11, the OSBA and PNG filed Main Briefs and Reply Briefs respectively.  On 5/12/11, the ALJ’s Recommended Decision was issued.  On 5/23/11 the OSBA filed Exceptions and on 5/31/11, PNG filed Replies to Exceptions.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order.  Motion of Commissioner Cawley is attached.  Commissioner Witmer’s Statement, with which Vice Chairman Coleman associates, is attached.  Vote 5-0.

BUREAU OF FIXED UTILITY SERVICES

• Wellsboro Electric Co., 2240234-FUS, S-2011-2240234.  Securities certificate in regards to the issuance of Notes, in an aggregate principal amount of up to $3,000,000, to its Parent, C&T Enterprises, Inc.  RECOMMENDATION:  That the Commission adopt the proposed Order for the registration of the securities certificate for the issuance of Notes, in an aggregate principal amount of up to $3,000,000, to its Parent, C&T Enterprises, Inc.  Motion of Commissioner Gardner is attached.  Vote 5-0. 

LAW BUREAU

• Met-Ed and PENELEC, 2093053-LAW, P-2009-2093053, P-2009-2093054.  Order entered 4/26/11, soliciting comments from the parties on the timing of the Consumer Education Programs.  The programs had been approved as part of the Companies’ 2009 approved as part of the Companies’ 2009 settlement in its default service proceeding.  Upon review of the comments and reply comments, the Law Bureau recommends suspending the Consumer Education Programs until the Commission’s Investigation of Pennsylvania’s Retail Electricity Market at Docket No. I-2011-2237953 is completed.  RECOMMENDATION:  That the Commission adopt the Order, which suspends the Companies’ Consumer Education Programs until the Commission’s Investigation of Pennsylvania’s Retail Electricity Market is completed.  WITHDRAWN by the Law Bureau.

• CTSI, LLC, 2250515-law, M-2011-2250515.  PA Safety Valve Numbering Resource Request form submitted on 7/5/11, pursuant to Order entered at M-2008-2032767.  CTSI is requesting expedited review of a denial by the Pooling Administrator of its request for additional numbering resources in the 570 Number Plan Area (NPA).  Specifically, CTSI requests 1000 telephone numbers from the 570 NPA be assigned to the Sunbury Rate Center.  CTSI’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 grants CTSI LLC’s request for additional numbering resources in the 570 Area Code.  Vote 5-0.

ANNOUNCEMENTS

• Special Introduction of new Commissioner Pamela A. Witmer before meeting.
• Welcome reception for Commissioner Witmer after public meeting.

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, JULY 14, 2011 AT 10:00 A.M.

* Denotes Order