Highlights: PA PUC Public Session of November 10, 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 November 10, 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 December 1 at 10:00 a.m.  The minutes of the Public Meeting of October 14, 2011, were, by a vote of 5-0, approved without modification.

MAIN AGENDA

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

• Shelva J Charles, 2204112-TAS, A-2010-2204112.  Application for the right to begin to transport as a common carrier by motor vehicle, persons in paratransit service.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the application.  Vote 5-0.

BUREAU OF AUDITS

• All matters approved as submitted.

 DIRECTOR OF REGULATORY OPERATIONS

• Interim Guidelines - Standards for Changing An EGS, 2270442-DIR, M-2011-2270442.  Based on customer complaints and EGS concerns, and at the request of the Commissioners’ Offices, the Office of Competitive Market Oversight explored options to shorten the timeframe for a customer to switch EGSs. A change in EGS can take from 16 to 45 days. Based on discussions with CHARGE (Committee Handling Activities for Retail Growth in Electricity) and the Retail Market Investigation (Docket No. I-2011-2237952) participants, OCMO drafted proposed interim guidelines that are intended to facilitate customer switching between an EDC or DSP and an EGS, or between EGSs while preserving safeguards to prevent “slamming,” the switching of a customer’s account without authorization.  RECOMMENDATION:  That the Commission adopt the Tentative Order that issues the proposed interim guidelines for public comment.  Commissioner Cawley’s Statement is attached.  Vote 5-0.

OFFICE OF SPECIAL ASSISTANTS

• Laser Northeast Gathering Company, LLC, 2153371-OSA, A-2010-2153371.  The matter was postponed from the 10/28/2011 Public Meeting.  Application filed on 1/19/10. The Commission issued ALJ Colwell’s Recommended Decision on 12/1/10, disapproving a Settlement and denying Laser’s Application. By Order entered 6/14/11, the Commission determined that Laser’s service was “public utility” service and remanded the proceeding to determine whether a Certificate of Public Convenience should be issued. By Order entered 8/25/11, the Commission denied Petitions for Reconsideration filed by the Pennsylvania Independent Oil and Gas Association and MarkWest Liberty Midstream & Resources, LLC and granted MarkWest’s request for clarification. Laser filed a Petition to Withdraw Application on 9/8/11. PIOGA filed Objections on 9/29/11. MarkWest and Laurel Mountain Midstream filed a Joint Answer on 10/3/11.  On 10/7/11, Laser filed a response to the Objections and the Joint Answer. On 10/13/11, MarkWest and LMM filed an Answer to Laser's Response.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order.  Vice Chairman Coleman’s Motion, which denied a request to rescind the Commission’s prior Orders, is attached.  Commissioner Cawley’s Dissenting Statement is attached.  Vote 3-2, with Commissioners Cawley and Witmer dissenting.

BUREAU OF TECHNICAL UTILITY SERVICES

• Pilot Project-Implement International Wtr., Assoc/American Wtr. Wks Water Audit Methodology, 2062697-FUS, M-2008-2062697.  The matter was postponed from the 10/14/2011 Public Meeting.  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.  Chairman Powelson made a verbal statement with which Vice Chairman Coleman associated.  Vote 5-0.

• Intellifiber, Cavalier, Talk America, US LEC, PAETEC, LDMI TEL, MCLEOD & Windstream, 2258734-FUS, A-2011-2258734, A-2011-2258734-FUS, A-2011-2258734, A-2011-2258715, A-2011-2258716, A-2011-2258717, A-2011-2258718, A-2011-2258719.  Joint Application filed on 8/12/11, for approval of the indirect transfer of control was filed. On 9/19/11, Law Bureau filed a timely protest. On 10/1 4 /11, Law Bureau filed a notice of withdrawal of its protest on the grounds that the parties had reached a mutually satisfactory agreement and requested that its Petition to Intervene and Protest be withdrawn.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the indirect transfer of control.  Vote 5-0.

LAW BUREAU

• Eligible Customer List, 2183412-LAW, M-2010-2183412, M-2009-2104271, P-2009-2135500.  Interim Guidelines for Eligible Customer Lists issued P-2009-2135500 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 11/12/10 Order.  The Commission gave interested parties an opportunity to comment and has now considered those comments.  RECOMMENDATION:  That the Commission approve the proposed Order.  Commissioner Witmer’s Conflicts Statement is attached.  Vote 5-0.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Gretchen Buchanan vs. Pike County Light & Power Company, 2137873-ALJ, F-2009-2137873.  The matter was postponed from the 10/28/2011 Public Meeting.  Formal Complaint filed on 10/15/09, alleging an inability to pay for electric and gas service. On 11/17/09, Pike County filed an Answer and New Matter addressing the material allegations of the complaint. A hearing was held on 7/17/10.  COMMISSION REVIEW:  That the Commission adopt ALJ Vero’s Initial Decision sustaining the complaint.  Commissioner Powelson’s and Commissioner Witmer’s Joint Motion, which finds that Ms. Buchanan has not made a good-faith effort to pay her outstanding balance, and therefore is denied another payment agreement, is attached.  Vote 5-0.

• Robert O. Cruz & Heather Campbell vs. UGI Utilities Inc - Gas Division, 2149273-ALJ, F-2009-2149273.  The matter was postponed from 10/28/11 Public Meeting.  Formal Complaint filed on 12/21/09, alleging an inability to pay their monthly bill and requested the Commission order a payment arrangement they can afford. UGI filed an answer on 1/13/10, requesting full payment of arrearage as well as a reconnection fee and one half of a security deposit before Complainants’ gas service is reconnected. UGI avers Complainants have broken three payment arrangements, and do not deserve another one prior to reconnection of service. A hearing was held on 10/5/10.  COMMISSION REVIEW:  That the Commission adopt ALJ Barnes’ Initial Decision dismissing the complaint.  Commissioner Gardner’s Motion, which moves to remand the matter to the Office of Administrative Law Judge to develop the record fully, is attached.  Vote 5-0.

• Rainey Richmond vs. PECO Energy Co., 2187305-ALJ, F-2010-2187305.  Formal Complaint filed on 7/12/10, alleging incorrect charges on his electric bill. On 7/21/10, PECO filed Preliminary Objections. The Complainant did not file an Answer to the Preliminary Objections. COMMISSION REVIEW:  That the Commission adopt ALJ Barnes' Initial Decision dismissing the complaint.  Commissioner Gardner’s and Commissioner Witmer’s Joint Motion is attached.  Vote 5-0, with Chairman Powelson and Vice Chairman Coleman concurring in result only.

• Esther Cobb vs. UGI Penn Natural Gas, 2207096-ALJ, F-2010-2207096.  Formal Complaint filed on 10/28/10, alleging an inability to pay for natural gas service. On 11/10/10, UGI filed its answer, and a hearing was held on 1/6/11.  COMMISSION REVIEW:  That the Commission adopt Special Agent Alexander’s Initial Decision denying the complaint.  Chairman Powelson’s Motion is attached, denying a second BCS payment agreement requested by Ms. Cobb because she broke prior payment agreements.  Vote 5-0.

• Lennia Kutz vs. UGI Utilities–Gas, 2214107-ALJ, C-2010-2214107.  Formal complaint filed on 12/7/10, asserting that Complainant is unable to pay her monthly bill and requested a new payment arrangement she can afford.  UGI filed its answer on 12/27/10. A hearing was held on 8/30/11.  COMMISSION REVIEW:  That the Commission adopt ALJ Salapa’s Initial Decision denying the complaint.  Commissioner Witmer’s Statement is attached.  Vote 5-0.

• Brian Rudnick vs. Verizon PA, 2238995-ALJ, C-2011-2238995.  The matter was postponed from the 10/28/11 Public Meeting.  Formal Complaint filed on 4/18/11, alleging that the Verizon's website does not provide accurate information with respect to the rates for calls to Ecuador. On 5/3/11, Verizon filed an Answer and New Matter as well as Preliminary Objections. Complainant did not respond to the Preliminary Objections.  COMMISSION REVIEW:  That the Commission adopt ALJ Buckley’s Initial Decision sustaining the Preliminary Objections and dismissing the Complaint.  Vice Chairman Coleman’s Motion is attached.  Vote 5-0, with Commissioner Cawley concurring in result only.

CARRY-IN AGENDA

BUREAU OF AUDITS

• All matters approved as submitted.

OFFICE OF SPECIAL ASSISTANTS

• 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.  On 10/14/11, the Commission entered an Opinion and Order that, interalia, approved a Joint Petition in Partial Settlement of Columbia’ s base rate proceeding, rejected Columbia’ s proposed Levelized Distribution Charge, and deferred consideration of the litigated issue concerning Columbia’ s Customer Assistance Plan. On 10/31/11 the Pennsylvania Communities Organizing for Change filed a Petition for Reconsideration and/or Clarification of the Commission’s 10/14/11 Opinion and Order.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order granting reconsideration pending further review of the merits of the Petition.  Commissioner Witmer’s Conflicts Statement is attached.  Vote 5-0.

BUREAU OF TECHNICAL UTILITY SERVICES

• All matters approved as submitted.

LAW BUREAU

• All matters approved as submitted.

OFFICE OF ADMINISTRATIVE JUDGE

• PA American Water Company, 2232243-ALJ, R-2011-2232243.  Supplement No. 253 to Tariff Water- Pa. P.U.C.  No. 4 filed on 4/29/11, to become effective 6/28/11 containing proposed changes in rates, rules and regulations calculated to produce $70,676,379 (or 13.8%) in additional annual revenues. By Order entered 6/9/11, the Commission instituted an investigation. The proposed rate was suspended by operation of law on 6/28/11, until 1/28/12. OSBA, OCA, AK Steel, I&E and PAWLUG filed formal complaints in this Proceeding. Eighteen formal complaints were filed. Eight Public Input hearings were held. On 10/6/11, a Joint Petition for Settlement of Rate Investigation was filed with the Commission.  COMMISSION REVIEW:  That the Commission adopt ALJs Jones and Vero’s Recommended Decision approving the Joint Petition for Settlement.  Commissioner Witmer’s Conflicts Statement is attached.  Vote 5-0.

COMMISSIONERS OFFICE

• Prevention and Mitigation of Extended Service Outages, 2271989-CMR.  Chairman Powleson’s and Vice Chairman Coleman’s Joint Motion is attached.  Vote 5-0.

SUPPLEMENTAL CARRY-IN AGENDA

LAW BUREAU

• Natural Gas Pipeline Replacement & Performance Plans, 2271982-LAW, M-2011-2271982.  Order requires all pipeline distribution utilities to provide copies of Federal Distribution Integrity Management Plans to Bureau of Inspection and Enforcement; that all gas distribution utilities conduct frost patrol leak surveys; and seeks comment on Tentative Order requiring large gas distribution utilities to submit pipeline replacement and performance plans and transmission integrity management plans.  RECOMMENDATION:  That the Commission issue the proposed tentative order.  Chairman Powelson’s and Vice Chairman Coleman’s Joint Statement is attached.  Vote 5-0.

ANNOUNCEMENTS

• A special Veterans Day program was held prior to meeting.
• The RMI En Banc Hearing will convene at 12:30 p.m. in Hearing Room 1.

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, DECEMBER 1, 2011 AT 10:00 A.M.

* Denotes Order