Highlights: PA PUC Public Session of July 28, 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 28, 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, August 11 at 10:00 a.m.  The minutes of the Public Meeting of June 30, 2011, were, by a vote of 5-0, approved without modification.

MAIN AGENDA

BUREAU OF TRANSPORTATION & SAFETY

• Kuhn Transportation, Inc., 2223613-TAS, A-2011-2223613.  Application for the right to begin to transport as a common carrier by motor vehicle, persons in paratransit service.  Jim Thorpe, Carbon County.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the application.  Vote 5-0.

BUREAU OF AUDITS

• All matters approved as submitted.

DIRECTOR OF OPERATIONS

• Investigation of PA’s Retail Electricity Market, 2237952-DIR, I-2011-2237952.  Order entered on 4/29/11, initiating this Investigation.  In that Order, the Commission solicited comments and stated that upon review of comments and testimony at an en banc hearing scheduled for 6/8/11, the Commission would initiate the second phase of this Investigation to address and resolve issues to improve the current retail electricity market in PA.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which initiates Phase II of the Investigation of PA’s Retail Electricity Market.  Chairman Powelson’s Statement is attached.  Vote 5-0.

OFFICE OF SPECIAL ASSISTANTS

• Equitable Gas Co., 2089152-OSA, A-2009-2089152.  Application filed on 2/2/09, for Abandonment of Service to 23 field gathering line customers.  ALJ Corbett issued an Initial Decision on 2/3/10, denying the Application.  By Opinion and Order entered 5/12/10, the Commission granted Equitable’s petition for reopening proceedings prior to final decision and remanded the case for further proceedings.  In the Initial Decision Upon Remand, issued 11/16/10, ALJ Corbett approved Equitable’s Application subject to certain conditions.  On 1/28/11, Protestants Phillip R. Conklin and James Holden filed a Motion to Dismiss on the basis that Equitable did not comply with some of the conditions in the Initial Decision Upon Remand.  Equitable filed an Answer to the Motion to Dismiss on 1/28/11.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order, which denies the Motion to Dismiss and adopts the Initial Decision Upon Remand.  Vote 5-0.

BUREAU OF FIXED UTILITY SERVICES

• ALPHABUYER, LLC, 2201777-FUS, A-2010-2201777.  Application filed on 9/28/10, for approval to offer, render, furnish, or supply natural gas supply services to residential and commercial customers in the service territory of Valley Energy, National Fuel Gas, UGI Central Penn, Peoples Natural Gas, T.W. Phillips, UGI Utilities, UGI Penn Natural Gas, Columbia Gas, Equitable Gas, Philadelphia Gas Works, and PECO, within PA.  RECOMMENDATION:  That the Commission adopt the proposed Order which approves the application.  The matter has been postponed to the 8/11/11 Public Meeting.

• Bureau of Fixed Utility Services, 2251842-RUS, M-2011-2251842.  Report regarding quarterly earnings of PA utilities for the quarter ended 3/31/11, 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 $10,000,000.  RECOMMENDATION:  That the Commission make the earnings report public.  Vote 5-0.

COMBINED BUREAU AGENDA

• All matters approved as submitted.

LAW BUREAU

• Investigation of Rate Mechanisms for EE&C, 2099881-LAW, I-2009-2099881.  Investigation to ensure compliance with Section 410(a) of the American Recovery and Reinvestment Act of 2009 (ARRA).  Section 410(a) of the ARRA requires the Commission to consider implementing ratemaking policies for electric and gas utilities that align with energy conservation goals.  This Final Order will conclude the Investigation and satisfy Section 410(a) of the ARRA.  RECOMMENDATION:  That the Commission adopt the proposed Order.  Vote 5-0.

• Proposed Rulemaking-Amendment 59.18 Meter Location, 2107155-LAW, L-2009-2107155, M-2008-2058386.  The Commission directed the BTS, Gas Safety Division, on 8/21/08, to institute an investigation of gas meter placement and relocation of service disputes between gas distribution companies and their customers.  The Gas Safety Division issued ten data requests to the ten largest gas utilities under Commission jurisdiction.  The data requests included questions related to the number of inside/outside meter sets, inside regulators, tariff language, inside meter set leak calls, reportable incidents associated with inside meter sets, meter relocation charges, inside leak surveys, and local ordinances requiring certain meter locations.  All ten gas utilities responded.  The Gas Safety Division concluded that the Commission’s existing regulation is vague, inadequate, and out-of-date with respect to the federal standards which the Commission has adopted.  RECOMMENDATION:  That the Commission adopt the Proposed Rulemaking Order.  Vote 5-0.

• Act 129 Total Resource Cost Test, 2108601-LAW, M-2009-2108601, M-2008-2069887.  Act 129, 66 Pa.C.S. § 2806.1, mandates TRC testing of EDCs’ EE&C plans.  The PA TRC was first adopted in 2009.  In May 2011, the Commission proposed revisions to the TRC test.  The stakeholders were afforded the opportunity to file comments and reply comments and to propose further revisions.  The draft Final Order reflects the 2011 PA TRC test.  RECOMMENDATION:  That the Commission adopt the proposed 2011 revisions to the PA TRC test.  Commissioner Cawley’s Statement is attached.  Vote 5-0.

• Windstream Pennsylvania, LLC, 2248534-LAW, P-2011-2248534.  Petition for a bona fide retail request deployment extension of six-months for specific exchanges pursuant to 66 Pa. C.S. § 3014(c)(5).  Windstream asserts that the delay in completing the project is attributable to the delay in the release of the Broadband Initiatives Program funding from the Rural Utilities Service under the US Dept. of Agriculture and the construction of new pads, which require surveys and the acquisition and recording of at least one, and possibly more, new rights-of-way.  RECOMMENDATION:  That the Commission adopt the proposed Order granting the petition.  The matter has been postponed to the 8/11/11 Public Meeting.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Susan P. Groff v. PECO, 2132719-ALJ, F-2009-2132719.  Formal Complaint filed on 9/16/09, alleging a billing dispute.  On 10/19/09, the Respondent filed an answer denying the material allegations of the complaint.  COMMISSION REVIEW:  That the Commission adopt ALJ Nguyen’s Initial Decision dismissing the complaint.  Commissioner Gardner’s Motion is attached.  Vote 5-0.

• Scott Prior v. Duquesne Light Co., 2193390-ALJ, F-2010-2193390.  Formal Complaint filed on 8/12/10, alleging the continued improper billing of $25.31 for electric usage dating back to 1/27/10, but his lease for the service address did not start until 2/27/10.  Complainant requested an adjustment to his bill.  On 9/1/10, Duquesne filed an answer stating the incorrect charge was removed 3/4/10 from Complainant’s account.  A hearing was held on 3/12/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Johnson’s Initial Decision dismissing the complaint for failure to carry the burden of proof.  Commissioners Gardner’s and Witmer’s Joint Motion is attached, with which Commissioner Cawley supports wholeheartedly.   Chairman Powelson commends Commissioners Gardner and Witmer for their work regarding PA Power Switch Event.  Vote 5-0. 

• Tri-Valley Water Supply, Inc., 2207776-ALJ, R-2010-2207776.  Request for a rate increase for Stone Ridge, Cypress Park and El Do Lake Divisions filed on 11/1/10, to become effective 1/1/11, and voluntarily postponed until 2/1/11.  By Order entered 1/27/11, the Commission assigned the case to OALJ and directed an investigation.  On 4/20/11, a Joint Petition for Settlement was filed.  COMMISSION REVIEW:  That the Commission adopt ALJ’s Jones and Vero’s Recommended Decision approving the Settlement.  Vote 5-0. 

• Newtown Artesian Water Co., 2222068-ALJ, M-2011-2222068.  Section 1307(e) DSIC Reconciliation Statement filed on 1/24/11, setting forth the over/under collections for the 12 month period which ended 12/31/10.  A hearing was held on 3/23/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Colwell’s Recommended Decision accepting the reconciliation statement.  Vote 5-0.

• Equitable Gas Co., 2223563-ALJ, R-2011-2223563.  Section 1307(f) Computation of Annual Purchased Gas Cost filed on 4/1/11, for the period ending 9/30/12.  The Commission assigned the case to OALJ, instituting an investigation.  A Joint Settlement Agreement was filed on 5/25/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Corbett’s Recommended Decision approving the Settlement.  Motion noting administrative corrections were filed by the parties.  Vote 5-0.

ANNOUNCEMENTS

• Gary with FUS is retiring after 35 years with the PUC.
• Herb Nurick recognized for winning Sir Francis Bacon Award.

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, AUGUST 11, 2011 AT 10:00 A.M.

* Denotes Order