Highlights: PA PUC Public Session of December 1, 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 December 1, 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 15 at 10:00 a.m.  The minutes of the Public Meeting of October 28, 2011, were, by a vote of 5-0, approved without modification.

MAIN AGENDA

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

• Mercylife Ambulance Inc, 2191735-TAS A-2010-2191735.  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.

• Exact Care LLC, 2192196-TAS, A-2010-2192196.  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, as amended.  Vote 5-0.

• Kuhn Transportation, LLC, 2258008-TAS, A-2011-2258008.  Application for the right to transport as a common carrier by motor vehicle, persons in airport transfer service.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the application.  Vote 5-0.

DIRECTOR OF ADMINISTRATION

• PA Universal Service Fund Administrator, 2272902-BAS.  The Commission is seeking to secure an Administrator for the PaUSF for the next contracting period anticipated to be 1/1/12 through 12/31/15, with one optional year (at the Commission’s option) through 12/31/16.  RECOMMENDATION:  That the Commission approve the vendor selected by the Evaluation Committee.  The matter has been postponed to the December 15, 2011 Public Meeting.

BUREAU OF AUDITS

• All matters approved as submitted.

OFFICE OF SPECIAL ASSISTANTS

• Kuhn Transportation, LLC, 2223613-OSA, A-2011-2223613, A-6413167.  Application filed on 1/12/11. Several Parties, including Global Medical Transportation Services, Inc., filed protests. Except for Global’s protest, the protests were withdrawn based on restrictive amendments, and the case was returned to the BTS. On 5/31/11, the Applicant modified its proposed service territory to transportation originating in Carbon, Lehigh, Monroe, Northampton, and Schuylkill Counties. By 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 to the Petition were filed. By Tentative Order entered 10/14/11, the Commission tentatively denied Global’s Petition and provided the Parties with 20 days to file exceptions or to initiate appropriate proceedings. Global filed Exceptions to the Tentative Order on 10/20/11.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which remands this proceeding to the Office of ALJ.  Vote 5-0.

BUREAU OF TECHNICAL UTILITY SERVICES

• UGI Penn Natural Gas Company, 2258221-FUS, S-2011-2258221.  Securities Certificate filed on 8/17/11, for approval for the incurrence of indebtedness under a $125 million financing agreement through and until 10/15/15. UGI Penn Natural agreed on 9/1/11, 10/27/11, and 11/11/11, to voluntarily extend the consideration period until 10/28/11, 11/14/11, and 12/2/11 respectively.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves the registration of the securities certificate for the incurrence of indebtedness under a $125 million financing agreement through and until 10/15/15.  The matter has been postponed to the January 26, 2012 Public Meeting.

• UGI Utilities, Inc - Gas Division, 2258334-FUS, S-2011-2258334.  Securities Certificate filed on 8/17/11, for approval for the incurrence of indebtedness in an amount up to $400 million under an unsecured, revolving credit agreement through and until 10/31/15. UGI Utilities on 9/1/11, 10/27/11, and 11/11/11, agreed to voluntarily extend the consideration period until 10/28/11, 11/14/11, and 12/2/11, respectively.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves the registration of the securities certificate for the incurrence of indebtedness in an amount up to $400 million under an unsecured, revolving credit agreement  through and until 10/31/15.  The matter has been postponed to the January 26, 2012 Public Meeting.

• UGI Central Penn Gas, Inc., 2258347-FUS, S-2011-2258347.  Securities Certificate filed on 8/17/11, for approval for the incurrence of indebtedness under a $50 million financing agreement through and until 10/15/15.  UGI Central Penn Gas agreed on 9/1/11, 10/27/11, and 11/11/11, to voluntarily extend the consideration period until 10/28/11, 11/14/11, and 12/2/11, respectively.  RECOMMENDATION:  That the Commission adopt the proposed Order that approves the registration of the securities certificate for the incurrence of indebtedness under a $50 million financing agreement through and until 10/15/15.  The matter has been postponed to the January 26, 2012 Public Meeting. 

LAW BUREAU

• Verizon PA and Verizon North, 2271408-LAW, P-2011-2271408.  Petitions filed for bona fide retail request deployment extensions of an additional three months for Bloomsburg CSA 1392 and an additional two weeks for Sabinsville CSA 3101 in its petition pursuant to 66 Pa. C.S. § 3014(c)(5). Verizon asserts that the delays are attributable to extreme weather events, specifically Hurricane Irene and Tropical Storm Lee, which have affected its ability to complete construction.  RECOMMENDATION:  That the Commission adopt the proposed Order granting the petition.  Vote 5-0.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Ethan Clay vs. Duquesne Light Company, 2226084-ALJ, C-2011-2226084.  Formal Complaint filed on 2/14/11, alleging improper termination of commercial electric service on 12/20/10 for nonpayment of bill. Duquesne filed its answer on 3/4/11. A hearing was held on 7/19/11.  COMMISSION REVIEW:  That the Commission adopt Judge Corbett’s Initial Decision granting the complaint, in part, to the extent it alleged DLC violated 52 Pa. Code §55.2(b) by failing to serve Complainant’s billing address with written notice of a proposed service termination.  Motion by Vice Chairman Coleman is attached.  The Joint Statement of Commissioners Gardner and Cawley is attached.  Vote 4-1, with Commissioner Witmer dissenting.

CARRY-IN AGENDA

OFFICE OF SPECIAL ASSISTANTS

• PPL Electric Utilities, Revised Tariff page filed on 11/3/11, describing its CAP Plus program and setting an implementation date of 12/1/11. On 11/22/11, Lorrie Koons (Complainant) filed a Petition and Complaint for Stay and Modification of PPL’s Universal Service Plan. The Complaint seeks, inter alia, a stay of PPL’s proposed implementation date of the CAP Plus program. PPL submitted an Answer to the Complaint on 11/29/11, which denied the material allegations of the Complaint.  RECOMMENDATION:  That the Commission adopt the proposed Opinion and Order which denies the request for stay and refers the Complaint and Answer to the OALJ for such additional proceedings as are appropriate.  Commissioner Witmer’s Conflicts Statement is attached.  Vote 5-0. 

LAW BUREAU

• Policy Statement-Utility Svc Outage Public Notification Guidelines, 2065532-LAW, M-2008-2065532.  Hurricane Ike swept through PA on 9/14/08, interrupting electric service to over 450,000 customers. On 9/25/08, a Joint Motion of Vice Chairman Christy and Commissioner Pizzingrilli was issued, and an investigation was opened regarding EDCs’ service outage responses and restoration practices. In 4/2009, CEEP and the Office of Communications submitted a report entitled, Electric Distribution Company Service Outage Response and Restoration Practices Report which was adopted at Public Meeting of 4/30/09.  On the same date, the Commission adopted a Joint Motion of Vice Chairman Christy and Commissioner Pizzingrilli to propose a policy statement regarding service outages.  RECOMMENDATION:  That the Commission adopt the Final Policy Statement.  The matter has been postponed to the December 15, 2011 Public Meeting.

• Proposed Rulemaking Natural Gas Distribution Business Practices, 2069117-LAW, L-2009-2069117, I-00040103F0002.  The Proposed Rulemaking Order set forth business practices and standards for NGDCs and NGSs relating to financial transactions, communications (information and data and exchange) and operational rules for managing gas on a NGDC’s system. The Order directed Commission staff to initiate of a stakeholder working group to develop these standards and a model Supplier Coordination Tariff format. The Order set a 45-day comment period and a 15-day reply comment period. The Order was published in the PA Bulletin on 10/17/09 at 39 Pa.B. 6078.  The public comment period ended 12/16/09.  The expiration date for the rulemaking is 12/16/11.  RECOMMENDATION:  That the Commission adopt the Order that withdraws the proposed rulemaking.  Vice Chairman Coleman’s and Commission Witmer’s Conflicts Statements are attached.  Vote 5-0.

COMMISSIONERS OFFICE

• Consumer Advisory Council, 2244363-CMR.  Motion of Chairman Powelson Appointment of Member.  Motion by Chairman Powelson is attached.

ANNOUNCEMENTS

• Chairman Powelson recognizes 22 new employees participating in the employee training program.

• John Matchik of FUS is retiring effective December 2, 2011.

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, DECEMBER 15, 2011 AT 10:00 A.M.

* Denotes Order