Highlights: PA PUC Public Session of October 23, 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 October 23, 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, November 6, 2008 at 10:00 a.m.  The minutes of the Public Meeting of September 25, 2008, were, by a vote of 5-0, approved without modification.

Bureau of Transportation and Safety

1. Sixteen (16) Commission Orders, TSV-0018*, C-2008-2048291, et al.  Sixteen (16) Commission Orders adjudicating Bureau of Transportation and instituted Complaints alleging failure to maintain proof of bodily injury and property damage liability insurance and/or cargo insurance on file with the Commission.  Staff recommends that the Commission adopt the Orders directing that the Complaints be sustained, that the Certificates be canceled, and that some be fined.  Two were not adopted, C-2008-2048184 and C-2008-2048186.  The remaining fourteen (14) were adopted.  Vote of 5-0 with no discussion.

Bureau of Audits

1. All matters approved as submitted.

Office of Special Assistants

1. Pennsylvania American Water Company, 1220479-OSA-12, A-212285F0148.  Application for Approval of the Right to Offer, Render, Furnish or Supply Water Service to the Public in Additional Portions of Mahoning Township, Lawrence County, Pennsylvania.  A Protest to the Application was filed by Aqua Pennsylvania, Inc.  Staff recommends that the Commission adopt eh proposed Opinion and Order that denies Aqua's Exceptions and adopts the ALJ's Recommended Decision.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no further discussion.

1. PA PUC v. Columbia Gas of Pennsylvania, Inc., 2011621-OSA-0039,
   R-2008-2011621, et. al.  A Recommended Decision was issued August 19, 2008 by ALJ Melillo and ALJ Dunderdale recommending that the Joint Petition for Settlement filed by all of the parties be approved.  The Settlement provides for an Increase of $41.5 million in annual operating revenues.  One Issue remains unresolved regarding the Company's Purchase of Receivables.  Exceptions were filed by the Natural Gas Suppliers on September 8, 2008.  Staff recommends that the Commission adopt the proposed Opinion and Order denying the Exceptions and adopting the ALJ's Recommended Decision.  Motion of Chairman Cawley moving that the Joint Petition for Settlement be approved consistent with this Motion, that the Recommended Decision be modified, consistent with this Motion and that the OSA draft an appropriate order consistent with this Motion, is attached.  The Statement of Vice Chairman Christy concurring in result only with the Chairman's Motion is also attached.  Vote of 5-0 with no further discussion.

1. PA PUC Prosecutory Staff v. UGI Utilities, Inc., 2036549-OSA-0003, M-2008-2036549.  On April 14, 2008, the Prosecutory Staff and UGI filed a Settlement Agreement and Joint Statement in Support of Settlement Agreement in order to satisfy the Complaint filed by the Prosecutory Staff.  The Complaint was filed as a result of an explosion that occurred on September 2, 2006, in UGI's service territory.  As part of the Settlement, UGI agreed to pay a civil penalty of $40,000.  Prosecutory Staff filed comments to the Commissions' August 22, 2008 Tentative Opinion and Order.  The Prosecutory staff filed comments on August 23, 2008 to the Tentative Order.  Staff recommends that the Commission adopt the Final Opinion and Order, affirming, as modified, the August 22, 2008 Tentative Opinion and Order.  Motion of Vice Chairman Christy that the Commission's Tentative Opinion and Order entered August 22, 2008 directing $40,000 toward UGI Utilities, Inc. Operation Share hardship fund be finalized and that the OSA prepare an Opinion and Order consistent with this Motion is attached.  Statement of Commissioner Powelson is attached, as well as the Dissenting Statement of Chairman Cawley.  Vote of 4-1 with no further discussion.

1. PA PUC Law Bureau Prosecutory Staff v. National Fuel Gas Distribution Corporation, 2037613-OSA-0003, M-2008-2037613.  Joint Settlement Agreement filed by NFG and the Commission's Law Bureau Prosecutory Staff after a safety inspection.  Staff recommends that the Commission adopt the proposed Opinion and Order issuing the Settlement for comment.  Statement of Commissioner Powelson is attached.  Vice Chairman Cawley and Commissioner Pizzingrilli also associate with Commissioner Powelson's Statement.  Vote of 5-0 with no further discussion.

Bureau of Fixed Utility Services

1. Mifflin County's 911 System Renewal Plan, 1121174-FUS-0007,
   M-00910297.  On July 28, 2008, the Commission received Mifflin County's 911 System Renewal Plan, from the Pennsylvania Emergency Management Agency requesting formal review of the costs associated with the contribution rate of $1.50 per access line per month and a recommendation to PEMA within 90 days of the receipt date.  Staff recommends that the Commission adopt the proposed Order.  This matter has been postponed until Public Meeting of November 13, 2008.

1. MCImetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services, 2054904-FUS-0008, R-2008-2054904.  Supplement No. 120 to Pa. P.U.C. Tariff No. 3 filed July 30, 2008 proposing to detariff only those CLEC services offered to large and enterprises business customers.  Staff recommends that the Commission adopt the proposed Order.  This matter has been postponed until Public Meeting of November 13, 2008.

1. Pennsylvania-American Water Company, 1190928-FUS-0003,
   A-230073F0009.  Application filed February 1, 2005 for approval of:  1) the transfer, by sale, of substantially all of the Clarion Area Authority's assets, properties and rights related to its wastewater system to Pennsylvania-American Water Company; 2) the right of Pennsylvania-American Water Company to begin to offer or furnish wastewater service to the public in all of Clarion Borough and portions of the Townships of Clarion and Monroe, Clarion County; and 3) the right of Pennsylvania-American Water Company to assume certain Clarion Area Authority contracts.  Staff recommends that the Commission adopt the proposed Order.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no discussion.

1. Aqua Pennsylvania, Inc., 2066186-FUS-0003, S-2008-2066186.  Amended Securities Certificate filed September 22, 2008 for the issuance of unsecured notes in principal amount not in excess of $80,000,000 to be issued in one or more series.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

COMBINED BUREAU AGENDA

Office of Administrative Law Judge

1. Moses Rogito v. UGI Utilities, Inc. – Gas Division (Complaint Appellant), ALJ-0058*, F-02263457.  On August 27, 2007, UGI filed a timely complaint/appeal of a payment arrangement established by BCS at Case No. 2263457.  The Complainant did not file an Answer to UGI's complaint/appeal.  A hearing was held on December 20, 2007.  Commission staff reviewed ALJ Weismandel's Initial Decision sustaining the complaint, and vacating the BCS payment arrangement.  The Motion of Vice Chairman Christy that the decision of the Commission's BCS issued August 10, 2007 at BCS Case No. 2263457, be vacated for the reasons set forth in this Motion, that the Initial Decision be modified consistent with this Motion and that the OSA prepare the necessary Opinion and Order is attached.  Commissioners Pizzingrilli and Powelson concur in the result only.  Vote of 5-0 with no further discussion.

1. Elena Fauerbach v. Pennsylvania-American Water Company, ALJ-0060*,
   F-02181926.  On September 10, 2007, a complaint was filed alleging a billing dispute.  On October 2, 2007, PAWC filed an Answer and New Matter.  A hearing was held on January 15, 2008.  Commission staff reviewed ALJ Jandebeur's Initial Decision dismissing the complaint.  Motion of Vice Chairman Christy that the Formal Complaint of Elena Fauerbach at F-02181926 be sustained, that PAWC refund Elena Fauerbach the amount that she was overbilled, calculated according to this Motion, that the Initial Decision of ALJ Jandebeur be modified consistent with this Motion and that the OSA prepare the necessary Opinion and Order, is attached.  Statement of Commissioner Powelson is attached.  Vote of 3-2 with Commissioners Powelson and Pizzingrilli dissenting.

1. Angel Angley v. Pennsylvania-American Water Company, ALJ-0063*,
   F-02103337.  On June 4, 2007, a complaint was filed alleging foreign load and a high bill.  On June 27, 2007, PAWC filed its answer.  A hearing was held January 9, 2008.  Commission staff reviewed ALJ Jandebeur's Initial Decision ordering PAWC to reimburse the Complainant for 4,700 gal. of water for August 2005; and denying the portion of the billing dispute because the burden of proof was not met by Complainant.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no discussion.

1. PECO Energy, ALJ-0065*, P-2008-2032333.  Petition of PECO Energy company for approval of Phase I of its residential real time pricing program.  On March 14, 2008, PECO filed the above Petition with the Commission seeking approval of Phase I and permit PECO to enroll up to 2,000 residential customers who elect to participate in the Program, permit PECO to charge those customers based upon the actual hourly real-time locational marginal price established by PJM Interconnection, approve the necessary tariff changes to allow it and permit cost recovery through an annual Section 1307 cost reconciliation.  On August 29, 2008, a Joint Petition for Settlement and supporting statements were filed.  Commission staff reviewed ALJ Colwell's Recommended Decision approving the Joint Petition for Settlement without modification.  This matter has been postponed until Public Meeting of November 6, 2008.

ANNOUNCEMENT

1. There is an en banc hearing regarding the energy crisis on November 19, 2008 at 9:30 a.m. in the Keystone Building.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, NOVEMBER 6, 2008 AT 10:00 AM

* Denotes Order