Highlights: PA PUC Public Session of October 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 October 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 Friday, October 28 at 10:00 a.m.  The minutes of the Public Meeting of September 12, 2011, were, by a vote of 4-0, approved without modification.

MAIN AGENDA

BUREAU OF TECHNICAL SERVICES & BUREAU OF INVESTIGATION & ENFORCEMENT (Transportation)

• Wyoming Valley Professional Ambulance Service Inc., 2184603-TAS, A-2010-2184603.  Application for the right to begin to transport as a common carrier by motor vehicle, persons in paratransit service. Wilkes Barre, Luzerne County RECOMMENDATION:  That the Commission adopt the proposed Order denying and dismissing the application.  Vote 4-0.

• Lambert Worldwide Services LLC, 2221819-TAS, A-2011-2221819.  Application for the right to begin to transport as a common carrier by motor vehicle, paratransit in use.  Philadelphia, Philadelphia and Delaware Counties.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the application as amended.  Vote 4-0.

BUREAU OF AUDITS

• Wellsboro Electric, 2191477-AUD, D-2010-2191477.  Auditor's Report on the Generation Supply Service Rate for the 12 months ended 12/31/09.  RECOMMENDATION:  That the Commission release the Audit Report to the public.  Commissioner Witmer’s Statement is attached.  Vote 4-0.

• Citizens Electric, 2191478-AUD, D-2010-2191478.  Auditor's Report on the Generation Supply Service Rate for the 12 months ended 12/31/09.  RECOMMENDATION:  That the Commission release the Audit Report to the public.  Commissioner Witmer’s Statement is attached.  Vote 4-0.

BUREAU OF CONSUMER SERVICES

• Met-Ed, Penelec, and Penn Power, 2231038-BCS, M-2011-2231038.  Universal Service and Energy Conservation Plans for 2012-2014 filed on 2/28/11; and amended plans filed on 8/26/11, in accordance with the Commission’s regulations at 52 Pa. Code §§54.71-78.  RECOMMENDATION:  That the Commission adopt the proposed Tentative Order, which approves the First Energy Companies’ Plans.  Commissioner Gardner’s Statement is attached.  Vote 4-0.

DIRECTOR OF OPERATIONS

• Investigation of Pa's Retail Electricity Market, 2237952-DIR, I-2011-2237952.  Order entered on 7/28/11, directing OCMO to hold technical conferences to address intermediate and long term issues pertaining to the competitive retail electricity market and provide specific proposals for changes to the existing retail market and default service model. This Tentative Order provides intermediate recommendations from OCMO that are intended to serve as guidance to the Electric Distribution Companies in developing the format and structure of their upcoming default service plans.  RECOMMENDATION:  That the Commission adopt the Tentative Order, which directs interested parties to provide comments on OCMO’s recommendations.  Vote 4-0.

OFFICE OF SPECIAL ASSISTANTS

• UGI Utilities Inc - Electric Division, 2210316-OSA, M-2010-2210316.  Secretarial Letter issued on 12/23/09, inviting four electric distribution companies, which are not subject to Act 129, to file voluntary EE&C Plans. On 11/9/10, UGI filed a Petition seeking approval of a proposed EE&C Plan. ALJ Colwell's Recommended Decision of 7/15/11, recommended that the Petition be approved in part, and denied in part. Exceptions were filed by UGI, the OCA and the OTS on 7/25/11. UGI, the OCA, the OSBA and the OTS filed Reply Exceptions on 8/1/11.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which grants in part the Exceptions of the OCA, and denies all other Exceptions; adopts the Recommended Decision, as modified; and grants in part, and denies in part, UGI’s Petition.  Commissioner Witmer’s Statement is attached.  Vote 4-0.

• Columbia Gas of Pa Inc., 2215623-OSA, R-2010-2215623, C-2011-2224941, C-2011-2224985, C-2011-2227004, C-2011-2230067, C-2011-2232186, C-2011-2224944, C-2011-2225050, C-2011-2225828, C-2011-2225878, C-2011-2227222.  Supplement No. 156 to Tariff Gas - Pa . PUC No. 9, filed on 9/29/10, contain in gas proposed modification of Ta riff Rule No. 15 to provide for a BTU content  adjustment to the monthly determination of customers' billing Mcfs. Supplement No. 163 to Tariff Gas - Pa.  P.U.C. No. 9, filed on 1/14/11, contain in grates calculated to produce $ 37.8 million (7.7%) in additional annual revenues. The Commission consolidated the filings and instituted an investigation. On 7/1/11, the parties filed a Joint Petition in Partial Settlement to resolve certain issues. On 8/10/11, the Commission issued the Recommended Decision of ALJ Dunderdale.  On 8/22/11, Columbia, OCA, BI&E and PCOC filed Exceptions. On 8/29/11, Columbia, OCA, BI&E, PCOC and OSBA filed Reply Exceptions.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which modifies the ALJ's Recommended Decision.  Commissioner Witmer’s Statement is attached.  Vote 4-0. 

• Armstrong Telecommunications Inc. vs. Vz Pa, Vz North, Vz Access and MCI Comm. Svc., 2216205-OSA, C-2010-2216205.  Formal Complaints filed on 12/16/10, each alleging that Verizon (collectively) has not paid for services provided by Armstrong. The complaint proceeding was assigned to ALJ Buckley. On 7/18/11, ALJ Buckley issued an Order denying a Motion by Verizon to Dismiss or Stay the proceeding. On 8/19/11, Verizon filed a Petition for Interlocutory Review and Answer to a Material Question. By Secretarial Letter dated 8/25/11, the Commission extended the time for consideration of the Petition. On 8/29/11, Briefs were filed by Verizon and Armstrong.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order that grants the Petition and answers the Material Question consistent with the discussion therein.  The matter is postponed until the October 28, 2011 Public Meeting.

• Kuhn Transportation, LLC., 2223613-OSA, A-2011-2223613, A-6413167.  Application filed 1/12/11. Several Parties, including Global Medical Transportation Services, filed protests.  Except for Global’s protest, the protests were withdrawn based on restrictive amendments, and the case was returned to the BTS for review under modified procedure. On 5/31/11, the Applicant submitted a request to modify its proposed service territory to restrict its service area to transportation originating in the counties of Carbon, Lehigh, Monroe, Northampton, and Schuylkill. In an Order, entered 8/1/11, the Commission approved the Application as modified. On 8/4/11, Global filed a Petition for Rescission and Amendment of the Order. No answers have been filed in response to the Petition.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which tentatively denies the Petition, but provides the Parties with 20 days to submit comments or initiate appropriate proceedings.  Vote 4-0.

BUREAU OF TECHNICAL UTILTY SERVICES

• Pilot Project-Implement Intl. Wtr. Assoc. and American Wtr. Wks. Water Audit Methodology, 2062697-FUS, M-2008-2062697.  Bureau of Fixed Utilities lead a group of volunteer jurisdictional water companies to participate in a 24-month pilot program to consider the merits of implementing a new water audit methodology.  RECOMMENDATION:  That the Commission adopt the proposed Tentative Opinion & Order which implements the requirement to file annual water audit summaries by the participating companies.  The matter is postponed until the October 28, 2011 Public Meeting.

LAW BUREAU

• Office of Small Business Advocate, 2247936-LAW, P-2011-2247936.  Complaint Filing of 6/16/11, seeking an investigation into Exelon/Constellation merger together with 3 additional requests for relief. In most recent pleading, OSBA contents that Petition seeking Commission intervention is moot & requests its Petitions for Declaratory Orders be held in abeyance. OSBA requests that its Complaint be referred to OALJ.  RECOMMENDATION:  That the Commission find OSBA Petition seeking Intervention be dismissed as moot, OSBA's Complaint requesting investigation be implemented be assigned to OALJ, and OSBA's Petition for Declaratory Orders regarding status of EGS and NGS licenses held in abeyance.  Chairman Powelson’s Statement is attached.  Vote 4-0.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Duquesne Light Company, 2093217-ALJ, M-2009-2093217.  Petition for Approval of Changes to its Energy Efficiency and Conservation and Demand Response Plan filed on 5/9/11, requesting certain modifications, which require Commission approval. On 5/19/11, OCA and Duquesne Industrial Intervenors filed separate answers to Duquesne’s Petition, and Comverge, Inc., filed a Petition to Intervene. On 8/26/11, a Joint Petition for Settlement was filed.  COMMISSION REVIEW:  That the Commission adopt Judge Corbett’s Recommended Decision approving the Settlement.  Commissioner Witmer’s Statement is attached.  Vote 4-0.

• Richard Adams vs. UGI Utilities Inc - Gas, 2182016-ALJ, C-2010-2182016.  Formal Complaint filed on 6/15/10, alleging that his “Gas Beyond the Main” or GBM rate was going to change and requesting that the gas company provide natural gas to his street. UGI filed its Answer and New Matter on 7/7/10. On 4/5/11, a hearing was held.  COMMISSION REVIEW:  That the Commission adopt ALJ Jandebeur’s Initial Decision dismissing the Complaint.  Vice Chairman Coleman’s Motion is attached.  Vote 4-0.

• Windell C. Wiggins vs. PECO Energy Company, 2190335-ALJ, C-2010-2190335.  Formal Complaint filed on 7/27/10, alleging that he never applied for PECO services and stated the verification documents of employment and signature obtained by PECO are erroneous and forged. PECO filed its Answer on 8/17/10. A hearing was held on 2/8/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Jones’ Initial Decision dismissing the Complaint with prejudice for failure to prosecute.  Commissioner Witmer’s Motion is attached.  Vote 4-0.

• A Moses Inc. vs. Verizon Pa, 2205259-ALJ, C-2010-2205259.  Formal Complaint filed 10/12/10, alleging various complaints. The Complainant sought relief in the form of monetary damages. Verizon filed an Answer and New Matter denying the material allegations of the complaint. Verizon also filed Preliminary Objections seeking to dismiss the complaint because the Commission lacks jurisdiction over internet service and lacks authority to award money damages. No hearing was held.  COMMISSION REVIEW:   That the Commission adopt ALJ Vero’s Initial Decision dismissing the complaint and granted Verizon’s Preliminary Objections.  Vice Chairman Coleman’s and Commissioner Witmer’s Joint Motion is attached. Vote 4-0.

• Dennis V. Icario vs. Philadelphia Gas Works, 2213955-ALJ, C-2010-2213955.  The matter was postponed from the 09/08/11 Public Meeting.  Formal Complaint filed on 12/6/10, alleging that PGW placed a lien on his property for unpaid natural gas service bills. On 12/22/10, PGW filed its Answer and Preliminary Objections. On 1/3/11, complainant filed an Answer to the Preliminary Objections.  COMMISSION REVIEW:  That the Commission adopt ALJ Weismandel’s Initial Decision dismissing the complaint.  Commissioner Gardner’s Motion is attached.  Vote 4-0.

• Newtown Artesian Water Co., 2230259-ALJ, R-2011-2230259, P-2010-2216324.  Supplement No. 82 to Tariff Water-Pa. P.U.C. No. 9 filed on 3/10/11, proposing changes in rates calculated to produce an annual increase to become effective 5/9/11. On 12/20/10, NAWC filed a Petition seeking to defer and record unrecovered purchased water costs that NAWC would incur as a result of the 1/1/11 increase in purchased water charges implemented by Bucks County Water and Sewer Authority. Answers in opposition to the Petition were filed. A Hearing was held on 7/21/11, and on 8/18/11, a Joint Petition for Settlement was filed.  COMMISSION REVIEW:  That the Commission adopt Judge Barnes’ Recommended Decision approving the Settlement without modification.  Vote 4-0.

• UGI Central Penn Gas, Inc, 2238949-ALJ, R-2011-2238949.  Commissioner Witmer’s Statement is attached.  Pre-filing and definitive annual purchased gas cost filing, filed on 4/29/11 and 6/1/11, respectively, pursuant to 52 Pa. Code §§53.64 and 53.65. The PGC filing proposed a PGC residential rate of $6.2704/Dth and a non-residential PGC rate of $6.2356/Dth for Rates G, RS, and O, which were unchanged from rates in effect on 6/1/11. On 8/23/11, a Stipulation In Settlement Of Section 1307(f) Rate Investigation was filed.  COMMISSION REVIEW:  That the Commission adopt Judge Melillo’s Recommended Decision approving the Settlement without modification. Commissioner Witmer’s Statement is attached.  Vote 4-0. 

• UGI Utilities, Inc - Gas Division, 2238953-ALJ, R-2011-2238953.  Pre-filing and definitive annual purchased gas cost filing, filed on 4/29/11 and 6/1/11, respectively, pursuant to 52 Pa. Code §§53.64 and 53.65. The PGC filing proposed a Rate R PGC(1) rate of $8.4888/Mcf, and an average PGC(2) rate of $6.2010/Mcf. On 8/23/11, a Stipulation In Settlement of Section 1307(f) Rate Investigation was filed.  COMMISSION REVIEW:  That the Commission adopt Judge Melillo’s Recommended Decision approving the Settlement without modification.  Commissioner Witmer’s Statement is attached.  Vote 4-0. 

• PECO Energy Company – Gas, 2239263-ALJ, R-2011-2239263.  Pre-filing and definitive annual purchased gas cost filing, filed 4/29/11 and 5/27/11, respectively, pursuant to 52 Pa. Code §§53.64 and 53.65. This tariff supplement proposed to increase the PGC from $5.7395/Mcf to $6.6403/Mcf. PECO also filed a reconciliation of previously incurred expenses and revenues. On 8/16/11, a Joint Petition for Complete Settlement of Rate Investigation was filed.  COMMISSION REVIEW:  That the Commission adopt Judges Chestnut and Vero’s Recommended Decision approving the Settlement without modification.  The matter has been postponed to the October 28, 2011 Public Meeting.

CARRY-IN AGENDA

COMMISSIONERS OFFICE

• Licensing Requirements For Natural Gas Suppliers, 2266832-CMR, L-2011-2266832.  Commissioner Witmer’s Motion is attached.  Vice Chairman Coleman’s Statement is attached.  Vote 4-0, with Vice Chairman Coleman concurring in result only.

NO ANNOUNCEMENTS

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR FRIDAY, OCTOBER 28, 2011 AT 10:00 A.M

* Denotes Order