Highlights: PA PUC Public Session of September 11, 2008

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 September 11, 2008 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 also 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, September 25, 2008 at 10:00 a.m.  The minutes of the Public Meeting of August 7, 2008, were, by a vote of 5-0, approved without modification.

Bureau of Transportation and Safety

1. Robina Shafqat, TSM-0155*, A-649846, A-2008-2024551.  Application for the right to begin to transport as a contract carrier for LogistiCare Solutions, LLC, persons in paratransit service.  Staff recommends that the Commission adopt the proposed order dismissing the application.  Vote of 5-0 with no discussion.

1. Rodney L. Huber, TSM-0165*, A-6410031, A-2008-2037045.  Application to transport as a common carrier, persons in paratransit service, limited to persons whose personal convictions prevent them from owning or operating motor vehicles.  Staff recommends that the Commission adopt the proposed order approving the application as amended.  Vote of 4-0 with Commissioner Powelson abstaining.

Bureau of Administrative Services

1. All matters approved as submitted.

Director of Operations

1. All matters approved as submitted.

Office of Special Assistants

1. AT&T Communications of Pennsylvania v. Verizon North Inc. and Verizon Pennsylvania Inc., 1167655-OSA-0013, C-20027195.  In an Opinion and Order dated January 8, 2007, the Commission ordered a Stay in this proceeding pending further developments in the FCC's Intercarrier Compensation Proceeding.  Status reports were filed by various Parties on December 7, 2007.  Along with those Status Reports, Verizon and Qwest Communications Corporation filed Motions to Stay the proceeding pending further development at the Federal level.  AT&T and Sprint opposed the motions, while Embarq did not oppose an additional Stay.  Staff recommends that the Commission grant Verizon's and Qwest's Motions, consistent with the proposed Opinion and Order.  Vote of 5-0 with no discussion.

1. Richard Kauffman v. Verizon Pennsylvania Inc. (Service Issue), 1196789-OSA-0004, C-20055680.  Exceptions to ALJ Nemec's October 2, 2006 Initial Decision and a Motion for Reconsideration of the Commission's December 1, 2006 Order filed by Verizon Pennsylvania on December 11, 2006.  Staff recommends that the Commission deny the exceptions in part, and grant them in part, deny the Motion for Reconsideration; sustain the Complaint; and adopt the ALJ's Initial Decision, as modified, consistent with the proposed Opinion and Order.  This matter was postponed until Public Meeting of September 25, 2008.

1. Russel T. Lerch v. Verizon Pennsylvania Inc. (Service Issue), 1203666-OSA-0010, C-20077297.  Exceptions to ALJ Weismandel's April 18, 2008 Initial Decision filed by the OCA on May 20, 2008.  Reply Exceptions filed by Verizon Pennsylvania Inc. on May 30, 2008.  Staff recommends that the Commission deny the Exceptions and adopt the ALJ's Initial Decision consistent with the proposed Opinion and Order.  Chairman Cawley concurs in result only with an oral statement.  The Statement of Vice Chairman Christy is attached noting he is concerned with Verizon's service outage performance and will continue to monitor the company.  Vote of 5-0 with no further discussion.

1. Malisa Alexander v. Philadelphia Gas Works, 1204079-OSA-0013,
   C-20077389.  By Initial Decision on February 26, 2008, the ALJ concluded that the Complainant produced sufficient evidence to sustain her burden, in part, and recommended the imposition of a civil penalty on PGW.  PGW filed Exceptions to the Initial Decision on March 17, 2008.  The Complainant filed Reply Exceptions on March 27, 2008.  Staff recommended that the Commission adopt the proposed Opinion and Order denying PGW's Exceptions and adopting the ALJ's Initial Decision, consistent with the proposed Opinion and Order.  This matter was postponed until Public Meeting of October 9, 2008.

1. Craig Steve v. Commonwealth Telephone Company d/b/a Frontier Communications, 1206790-OSA-0009, C-20078005.  On July 2, 2007, Complainant filed a Formal Complaint alleging that Respondent failed to respond to a hazardous situation.  Respondent filed an Answer on September 4, 2007.  By Initial Decision issued on July 2, 2008, the ALJ dismissed the Complaint.  Complainant filed Exceptions and Respondent filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order which denies the Exceptions and adopts the ALJ's Initial Decision.  Vote of 5-0 with no discussion.

1. Consolidated Communications of Pennsylvania Company and Comcast Business Communications, LLC, 2047245-OSA-0004, A-2008-2047245.  Joint Petition filed on June 20, 2008, for Approval of an Interconnection Agreement.  Staff recommends that the Commission adopt the proposed Opinion and Order granting the Joint Petition.  Vote of 5-0 with no discussion.

Bureau of Fixed Utility Services

1. PPL Electric Utilities Corporation, 2060876-FUS-, S-2008-2060876.  Securities Certificate filed September 2, 2008, for the issuance of up to $90 million aggregate principal amount of company debt obligations.  Staff recommends that the Commission adopt the proposed Order.  This matter was postponed until Public Meeting of October 9, 2008. 

Combined Bureau Agenda

1. Manwalamink Water Company, 2039918-FUS-0006, R-2008-2039918,
   OTS-0016, R-2008-2039918.  Supplement No. 16 to Tariff Water-Pa. P.U.C. No. 5, proposing an annual increase in rates of $78,100, voluntarily postponed to become effective September 12, 2008.  FUS recommends that the Commission suspend the Tariff until April 12, 2009; or, in the alternative, if the Respondent files a Tariff calculated to produce additional annual revenues of approximately $61,853, as shown on Appendix A of the Order, the Tariff shall be permitted to become effective, consistent with the proposed Opinion and Order.  OTS recommends that the tariff be permitted to become effective.  Chairman Cawley made a motion to adopt the FUS recommendation and reject the OTS recommendation.  With Vice Chairman Christy and Commissioner Gardner dissenting, the Motion passes by a vote of 3-2.

1. Pike County Light & Power Co. – Gas, 2046520-FUS-0006, R-2008-2046520, OTS-0023, R-2008-246520.  Supplement No. 82 to Tariff Gas-Pa. P.U.C. No. 6, proposing an annual increase in rates of $424,9000.  FUS and OTS both recommend that the Commission institute an Investigation and allow the filing to be suspended by operation of law.  Chairman Cawley made a motion to adopt the FUS recommendation and the OTS recommendation to the extent it is consistent with the FUS recommendation.  Vote of 5-0 with no further discussion.

1. The Columbia Water Company, 2045157-FUS-0008, R-2008-2045157,
   OTS-0022, R-2008-2045157.  Supplement No. 35 to Tariff Water-Pa. P.U.C. No. 7, proposing an annual increase in rates of $616,402.  FUS and OTS both recommend that the Commission institute an Investigation and allow the filing to be suspended by operation of law.  Chairman Cawley made a motion to adopt the FUS recommendation and the OTS recommendation to the extent it is consistent with the FUS recommendation.  Vote of 5-0 with no further discussion.

1. Pike County Light & Power Company – Electric Division, 2046518-FUS-0005, R-2008-2046518, OTS-0020, R-2008-2046518.  Supplement No. 46 to Tariff Electric-Pa. P.U.C. No. 8, filed to become effective September 16, 2008, proposing an annual increase in rates of $1.2 million.  FUS and OTS recommend that the Commission institute an Investigation and allow the filing to be suspended by operation of law.  Chairman Cawley made a motion to adopt the FUS recommendation and the OTS recommendation to the extent it is consistent with the proposed Opinion and Order.  Vote of 5-0 with no further discussion.

Law Bureau

1. Natural Gas Supply Market:  Report on Stakeholders' Working Group (Search), L-0080*, I-00040103F0002.  Investigation into the Action Plan for Increasing Effective Competition in PA's Retail Natural Gas Market.  Staff recommends that the Commission adopt the draft Order that formally releases the Staff's Search Report, and sets forth an action plan to increase effective competition in the retail market for natural gas supply.  Statement of Commissioner Pizzingrilli thanking the SEARCH stakeholders and the PUC's team for their time and effort put into the project.  Vote of 5-0 with no further discussion.

1. Buffalo Valley Telephone Company, Conestoga Telephone and Telegraph Company, Denver and Ephrata Telephone and Telegraph Company and D&E Systems, Inc., L-0086*R, P-2008-2051138.  Petition for Waiver of Call Recording Prohibition Set Forth at 52 Pa. Code § 63.137(2) to Permit the Recording of Customer Conversations with Telephone Company Service Representatives.  Staff recommends that the Commission grant the Petition, consistent with the proposed Order  Motion of Commissioner Gardner that the petition of D&E Companies be granted in part, that the Law Bureau, with the Assistance of FUS, shall prepare a separate, Tentative Form Order, granting a blanket waiver of the Commission Regulation at 52 Pa. Code § 63.137(2).  The waiver shall be for a term of one-year, with two one-year extensions upon Commission direction.  The terms of the blanket waiver shall be consistent with the conditions set forth in its prior orders involving Verizon and Full Service LECs and as set forth herein with respect to the D&E LECs and that the Tentative Form Order shall be issued with a comment period of thirty (30) days, and assigned staff shall prepare a Final Form Order addressing such comments.  If no comments are received the Tentative Form Order shall become final.  Vote of 5-0 with no further discussion.

1. UGI Penn Natural Gas, Inc., L-0093*, P-2008-2024726.  Pursuant to 52 Pa. Code § 69.263(c) to Implement Revisions to the Customer Assistance Program.  Staff recommends that the Commission adopt the proposed Order that grants the Petition.  This matter has been postponed until Public Meeting of September 25, 2008.

1. Julia Maye v. National Fuel Gas Distribution Corporation (Complaint Appellant), ALJ-0138*, F-02140445.  On November 2, 2006, a complaint/appeal was filed appealing a decision which the Commission's Bureau of Consumer Services issued on October 14, 2006.  On January 30, 2007, a telephonic hearing was held.  Commission staff reviewed ALJ Salapa's Initial Decision sustaining the complaint and vacating the BCS Decision.  Motion of Commissioner Gardner that the Initial Decision be reversed consistent with this Motion and that the OSA prepare the appropriate Opinion and Order.  This Motion was seconded by Vice Chairman Christy and is attached.  The Dissenting Statement of Commissioner Pizzingrilli is also attached.  Commissioner Powelson also dissents.  Vote of 3-2 with no further discussion.

CARRY-IN AGENDA

Office of Special Assistants

1. Pennsylvania State University for Declaratory Order, OSA-0025*,
   P-2007-2001828, P-2008-2021608.  Concerning the Generation Rate Cap of the West Penn Power Company d/b/a Allegheny Power.  Exceptions to ALJ Cocheres July 30, 2008.  Recommended Decision filed by PSU, Allegheny Power, and OSBA.  Reply Exceptions filed by PSU, Allegheny Power and OSBA on August 15, 2008.  Staff recommends that the Commission grant and deny in part the Exceptions of Allegheny Power and OSBA; and adopt the Recommended Decision as modified by the proposed Opinion and Order.  Vote of 5-0 with no discussion.

Commissioners

1. Motion of Commissioner Robert F. Powelson In Re:  Pilot Project to Implement the International Water Association/American Water Works Association Water Audit Methodology, C-0006, M-2008              .  Motion of Commissioner Powelson moving that an Order be issued in Tentative Form, that any interested party is provided thirty (3) days from the entry of the tentative order to file comments to the order or to request a hearing.  If no comments or a request for hearing is filed within thirty days, the Tentative Order shall become final without further action by the Commission, that within sixty days  of the entry of the final order the Commission shall convene its technical support group led by FUS, that jurisdictional water utilities voluntarily agreeing to participate in the pilot program to implement the new Water Audit and shall notify the Secretary of the PUC within thirty days of the meeting held by the technical support group, that the pilot program shall be implemented for 24 months and the PUC will consider whether an extension of time or adopt of the new Water Audit methodology is appropriate, that the two annual Water Audit summaries for each 12-month period of the pilot program shall be filed by participating jurisdictional water utilities with the Secretary of the Commission, along with a copy to FUS, that a copy of this Order be served on all jurisdictional water utilities, the National Association of Water Companies - PA Chapter, DEP, Office of Regulatory Counsel, all offices, Division of Water Use Planning; the Delaware River Basin Commission, the Susquehanna River Basin Commission and American Water Works Association, PA Chapter, that the OSA shall prepare a Tentative Order consistent with the Motion, is attached.  Statements of Vice Chairman Christy and Commissioner Pizzingrilli are also attached.  Vote of 5-0 with no further discussion.

1. Motion of Commissioner Wayne E. Gardner In Re: Cynthia Contreras v. Philadelphia Gas Works and Dario Padilla, Indispensible Party, C-0007, F-02036010.  Motion of Commissioner Gardner moving that the Initial Decision of ALJ Fordham is vacated consistent with this Motion, that the PUC's 8/21/08 action on this matter is vacated and that the matter is remanded to the OALJ for such development of the record as deemed appropriate to result in a Recommended Decision on Remand.

NO ANNOUNCEMENTS

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, SEPTEMBER 25, 2008 AT 10:00 AM

• * Denotes Order