Thomas, Long, Niesen & Kennard Law

Highlights: PA PUC Public Session of August 17, 2006

August 17, 2006

Note: The public meeting calendar and agendas may be viewed at http://www.puc.state.pa.us/general/public_meeting.aspx

At the August 17, 2006, 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 to our clients and our firm are also addressed under the respective Commission agenda headings below. Any relevant motions and statements are attached to the original of this Session Memo filed in the Public Meeting Agenda and Session Memo binder. The next regular Public Meeting is scheduled for Friday, September 15, 2006 at 10:00 a.m. The minutes of the Public Meeting of June 22, 2006 were unanimously approved without modification.

Bureau of Transportation and Safety

TSM-0213*, A-00122818, Brookville Limousine Service, LLC. Application for the right to begin to transport, as a common carrier, by motor vehicle, persons in limousine service. Staff recommends that the Commission adopt the proposed order approving the application. Vote of 5-0 with no discussion.

Bureau of Administrative Services

ADM-0003, General Assessment Upon Public Utilities - $51,400,000 - Billing for Fiscal Year July 1, 2006 to June 30, 2007. Staff recommends that the Commission approve the General Assessment. Vote of 5-0 with no discussion.

ADM-0004, Office Of Consumer Advocate General Assessment Upon Public Utilities - $4,861,426 - Billing for Fiscal Year July 1, 2006 to June 30, 2007. Staff recommends that the Commission approve the General Assessment. Vote of 5-0 with no discussion.

ADM-0005, Office Of Small Business Advocate (Department of Community and Economic Development) General Assessment Upon Public Utilities - $775,000 - Billing for Fiscal Year July 1, 2006 to June 30, 2007. Staff recommends that the Commission approve the General Assessment. Vote of 5-0 with no discussion.

Bureau of Audits

AUD-0020R*, PECO Energy Company, Competitive and Intangible Transition Charge Audit for the Fiscal Year Ended January 31, 2005; D-05NUG009, D-05NUG010. Staff recommends that the Commission approve the Audit Report for public release. Vote of 5-0 with no discussion.

AUD-0022, Gas Cost Rates to Become Effective September 1, 2006; M-00061966, et. al. Staff recommends that the Commission approve those rates reflected on Attachment A, to become effective with service rendered on and after September 1, 2006. Vote of 5-0 with no discussion.

Bureau of Consumer Services

BCS-0011R*, Equitable Gas Company’s Universal Service and Energy Conservation Plan Submission, M-00061959. Staff recommends that the Commission approve the proposed Tentative Order inviting Comments to be filed within 30 days of the entry date. Vote of 5-0 with no discussion.

BCS-0012R*, First Energy’s Universal Service and Energy Conservation Plan Submission, M-00051870. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

Office of Special Assistants

OSA-0203*, Joint Petition of ALLTEL Pennsylvania, Inc. and NPCR, Inc. Filed on June 28, 2006, for Approval of the Adoption of an Interconnection Agreement. No comments have been received. Staff recommends that the Commission adopt the proposed Opinion and Order granting the Joint Petition. Vote of 5-0 with no discussion.

OSA-0244*, Application of UGI Utilities, Inc., UGI Utilities Newco, Inc., and Southern Union for Certificates of Public Convenience; A-120011F2000, A-125146F5000, A-125146. ALJ Colwell’s Initial Decision was issued on July 24, 2006. A non-unanimous Stipulation was reached subsequently. Exceptions and Reply Exceptions were filed. Staff recommends that the Commission adopt the proposed Opinion and Order addressing the issues involved. Vote of 5-0 with no discussion.

OSA-0220*, Application of Kenneth Brantley, t/d/b/a Kenneth Brantley Transportation filed on April 27, 2005, seeking Commission approval for the right to transport household goods in use between points in the Counties of Lehigh, Bucks, Montgomery, and the City and County of Philadelphia; A-00121909. In his Initial Decision, ALJ Smolen recommended that Applicant’s Application be denied. The Applicant filed Exceptions. No Reply Exceptions have been filed. Staff recommends that the Commission adopt the proposed Opinion and Order which denies the Exceptions of the Applicant and adopts the ALJ’s Initial Decision. Postponed until Public Meeting of September 15, 2006.

OSA-0224*, PA PUC BTS v. Rainbow Cab, Inc. (Settlement Agreement). On July 11, 2006, BTS and Rainbow Cab filed a Settlement Agreement in order to satisfy a Complaint filed by BTS against Rainbow Cab. In its Complaint, BTS averred that Rainbow Cab failed to require its drivers to record complete addresses for origin and destination points on its log sheets and requested a penalty of $9,150. As part of the Settlement, Rainbow Cab admitted that its drivers had not properly completed the log sheets and agreed to bring its drivers into compliance in the future. BTS agreed to a reduction in the penalty to $1,000; A-00107211C0501. Staff recommends that the Commission adopt the proposed Opinion and Order which approves the Settlement Agreement as filed. Vote of 5-0 with no discussion.

OSA-0227*, Implementation of the Alternative Energy Portfolio Standards Act of 2004; Interconnection Standards - Final Rulemaking Section 5 of the Act, 73 P.S. § 1641.5, requires the Commission to adopt regulations which set forth the standards and processes for Interconnection by customer-generators under the Act; L-00050175, M-00051865. Staff recommends that the Commission adopt the proposed Opinion and Order, together with Annex A, which promulgates final regulations for Interconnection in accordance with the Act. Vote of 5-0 with no discussion.

Bureau of Fixed Utility Services

FUS-0480*, Application filed May 22, 2006, by US LEC of Pennsylvania, Inc., extending its telecommunications services as a Competitive Level Exchange Carrier into the service territories of Windstream Pennsylvania, Inc., f/k/a ALLTEL Pennsylvania, Inc., North Pittsburgh Telephone Company, and the United Telephone Company of Pennsylvania d/b/a Embarq; A-310814F0002AMA, A-310814F0002AMB, A-310814F0002AMC. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0487*, Supplement No. 2 to Access Tariff Telephone Pa. P.U.C. No. 5, filed July 5, 2006, by CTC Communications Corp., proposing to introduce Billing Name and Address Service and Toll Presubscription to become effective on September 6, 2006; R-00061650. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0488*, Application filed September 23, 2005, by Service Electric Telephone Company, LLC, for approval to offer, render, furnish, or supply telecommunications services as a Competitive Local Exchange Carrier; A-310651F0002AMA-AMG. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0489R*, 2006 Price Stability Index/Service Price Index report filed June 30, 2006, by Windstream Pennsylvania, Inc. f/k/a ALLTEL Pennsylvania, Inc.; R-00061461, P-00981423F1000. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with Vice Chairman Cawley concurring in result only.

FUS-0490*, Application filed April 13, 2006, by Velocity.Net Communications, Inc., for approval to offer, render, furnish or supply telecommunication services as a Competitive Access Provider; A-311409. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0845*, Application filed May 23, 2006 by Little Washington Wastewater Company, for approval to begin to offer, render, furnish, or supply wastewater service to the public in a portion of Cumberland Township, Adams County; A-230240F0029. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0846*, Application filed May 23, 2006 by AQUA Pennsylvania, Inc., for approval to begin to offer, render, furnish, or supply water service to the public in a portion of Cumberland Township, Adams County; A-210104F0072. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0847*, Application filed May 23, 2006 by AQUA Pennsylvania, Inc., for approval to begin to offer, render, furnish, or supply water service to the public in a portion of Kidder Township, Carbon County; A-210104F0071. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0848*, Application filed May 23, 2006 by Little Washington Wastewater Company d/b/a Suburban Wastewater Company, for approval to begin to offer, render, furnish, or supply wastewater service to the public in a portion of Kidder Township, Carbon County; A-230240F0027. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

FUS-0852*, Application filed May 26, 2006 by AQUA Pennsylvania, Inc., for approval to begin to offer, render, furnish, or supply water service to the public in a portion of Pennsbury Township, Chester County; A-210104F0075. Staff recommends that the Commission adopt the proposed Order. Vote of 5-0 with no discussion.

Combined Bureau Agenda

All matters approved as submitted.

Law Bureau

L-0049*, Sustainable Energy Fund Of Central Eastern Pennsylvania, Inc.; M-00031715F0003. Staff recommends that the Commission approve the Petition for Declaratory Order. Vote of 5-0 with no discussion.

L-0050*, Final Policy Statement On Water And Wastewater System Acquisitions; M-0051926, P-00052155. Staff recommends that the Commission approve the proposed Order setting for the Final Policy Statement on Water and Wastewater Acquisitions, to be published in the Pennsylvania Bulletin. Vote of 5-0 with Statement of Chairman Holland.

L-0053*, Final Rulemaking Order Regarding PUC Filing And Reporting Requirements Of Local Exchange Carriers; L-00050176. Staff recommends that the Commission adopt the Final Rulemaking that recommends adoption of the Regulations as set forth in Annex A of the Order, to be published in the Pennsylvania Bulletin. Vote of 4-1 with Dissenting Statement of Chairman Fitzpatrick. The Statement reflects the position of Commissioner Fitzpatrick that the Order does not go far enough. He believes Lifeline and Service Outage Reporting requirements should also be eliminated.

Office of Administrative Law Judge

ALJ-0575*, Petition of Pike County Light & Power To Amend Benchmarks For Electric Distribution Reliability; M-00991220F0002. On May 11, 2004, the Commission entered an Order in Amended Reliability Benchmarks and Standards for Electric Distribution Companies that tightened the standards for performance reliability in the electric distribution industry. On June 9, 2004, Pike filed comments to the Commission’s Final Rulemaking Order. On April 27, 2005, a Settlement Petition was filed. A Recommended Decision approving the Settlement was served on May 12, 2005. By Order entered October 18, 2005, the Commission remanded the case to OALJ for the taking of additional evidence. On November 17, 2005, a Petition to Admit Additional Evidence was filed. Commission Review of ALJ Colwell’s Recommended Decision granting the Petition to Admit Additional Evidence. Vote of 5-0 with Motion of Commissioner Shane. The Motion expresses the assumption that the major events excluded from the Company’s original benchmark adjustment calculation were subsumed in the settlement.

ALJ-0586*, PA PUC, et. al. v. Equitable Gas Company; R-00061295, R-00061295C0001-0004. On April 3, 2006, Equitable Gas Company filed its Section 1307(f) of the P.U.C., 66 Pa. C.S. § 1307(f) filing for the year ended January 31, 2006. Four complaints were filed. On July 7, 2006, a Joint Petition for Approval of Settlement Agreement was filed. Commission Review of ALJ Hoyer’s Recommended Decision approving the Settlement. Vote of 4-1 with Motion of Vice Chairman Cawley and dissent of Commissioner Fitzpatrick. Vice Chairman Cawley notes his support of the settlement agreement, but Attachment A to the agreement is a proposed tariff supplement with proposed rates. Those rate changes are not yet before the Commission and have not yet been filed. The Motion is to make clear that in approving the settlement agreement it is not meant to imply that the Attachment A tariff changes are approved. The dissent of Commissioner Fitzpatrick states that the ALJ Decision should have been approved.

Commissioners

C-00014, Motion Of Vice-Chairman James H. Cawley In Re: FCC Intercarrier Compensation Workshop And Solicitation Of Comments On The Missoula Plan. Vote 5-0 with Motion of Vice Chairman Cawley and Statement of Chairman Holland. Motion that the PA Commission prepare its own substantive comments and to do so, conduct a workshop of interested parties by September 15, 2006. An ALJ is to preside over the on-the-record workshop. That Statement of Chairman Holland notes that such discussions at NARUC which led to Missoula Plan are justification for the PA Commission’s participation - August 25, 2006 NARUC.

THE NEXT REGULAR MEETING IS SET FOR FRIDAY, SEPTEMBER 15, 2006 AT 10:00 AM.

*Denotes Order