Highlights: PA PUC Public Session of December 18, 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 December 18, 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, January 15, 2009 at 10:00 a.m.  The minutes of the Public Meeting of November 13, 2008, were, by a vote of 5-0, approved without modification.

FINAL AGENDA

Bureau of Transportation and Safety

• Ida E. Hurst, 2037385-TAS, A-2008-2037385.  Application for the right to transport as a common carrier by motor vehicle, persons in paratransit service limited to those 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 Audits

• All matters approved as submitted.

Office of Special Assistants

• Maldonado, Aurelio vs. UGI Utilities, Inc., (Complaint Appellant), 1218688-OSA, F-02277643.  Informal Complaint filed by Aurelio Malonado v. UGI Utilities, Inc. following termination of his natural gas service for non-payment.  BCS established a payment arrangement between the parties.  UGI filed a complaint appeal alleging that BCS lacked authority to establish a payment arrangement between the parties.  UGI filed a complaint appeal alleging that BCS lacked authority to establish a payment arrangement because the customer previously failed to comply with two payment arrangements with the utility.  ALJ Nemec issued his Initial Decision on March 13, 2008, in which he concluded that BCS had authority to establish a payment arrangement between the parties.  UGI filed Exceptions on April 2, 2008.  No Replies were filed.  Staff recommends that the Commission adopt the proposed Opinion and Order denying UGI's Exceptions and adopting the Initial Decision of ALJ Nemic.  Vote of 3-2 with Commissioner Pizzingrilli and Commissioner Powelson dissenting.

• Penelec, 2027681-OSA, M-2008-2027681.  On July 9, 2008, the Prosecutory Staff and Penelec filed a Settlement Agreement during the course of an Informal Investigation initiated by the Prosecutory Staff.  The Informal Investigation examined Penelec activities relating to possible violations of Chapter 56 and Chapter 14 with regard to service at a residence in Indiana Pennsylvania.  As part of the Settlement, Penelec agreed to pay $200,000 to the Dollar Energy Fund.  Staff recommends that the Commission adopt the proposed Opinion and Order that provides an opportunity for interested parties to file comments on the proposed Settlement between Prosecutory Staff and Penelec.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no further discussion.

• Pennsylvania American Water Company, 2066530-OSA, M-2008-2066530.  PA American Water (Company), the Law Bureau and BCS filed a joint settlement agreement on September 26, 2008, in order to satisfy the informal investigation in the Company's alleged failure to provide the required notices of termination at least three days prior to the scheduled terminations.  Staff recommends that the Commission adopt the proposed Opinion and Order which directs that the Opinion and Order and the proposed settlement agreement be entered for comments by any interested party.  Statement of Commissioner Powelson and the Statement of Vice Chairman Christy are attached.  Vote of 5-0 with no further discussion.

Bureau of Fixed Utility Services

• Pennsylvania Power Company, 2013283-FUS, S-2008-2013283.  Securities certificate of Pennsylvania Power Company for issuance and sale of up to $100 million aggregate principal amount of indebtedness in unsecured notes, mortgage bonds, and/or collateralized notes.  Staff recommends that the Commission adopt the proposed Order.  Vote of 3-2 with Vice Chairman Christy and Commissioner Gardner Dissenting.  The Dissenting Statement of Commissioner Gardner is attached.

• Metropolitan Edison Company, 2065751-FUS, A-2008-2065751.  Applications each filed by Metropolitan Edison Company, Pennsylvania Power Company, and Pennsylvania Electric Company for approval of the sale of undivided interests in accounts, receivable to a wholly-owned special purpose entity, and for affiliated transactions.  Staff recommends that the Commission adopt the proposed Order.  Dissenting Statement of Commissioner Gardner is attached.  Vote of 4-1 with Commissioner Gardner Dissenting.

• Consolidated Communications Operator Services, Inc., 2078107-FUS, A-2008-2078107.  Application filed on December 8, 2008, for approval of the Company's Discontinuance and Abandonment of its certificate to provide interexchange telecommunications services.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

COMBINED BUREAU AGENDA

Office of Administrative Law Judge

• PECO Energy Company, 1197984-ALJ, M-00061945.  PECO filed its Universal Services Three-Years Plan 2007-2009.  By Order entered September 28, 2007, the Commission determined that several issues warranted further review and investigation and assigned the case to OALJ.  On September 16, 2008, a Joint Petition for Settlement was filed.  By Order dated October 6, 2008, the ALJ directed the parties to revise portions of the Settlement.  On October 20, 2008, a Clarified Joint Petition for Settlement was filed.  Commission Staff reviewed ALJ Rainey's Recommended Decision approving the Clarified Joint Petition for Settlement.  Statement by vice Chairman Cawley is attached.  Vote of 5-0 with no further discussion.

• Philadelphia Gas Works, 1205625-ALJ, M-00072017.  The Commission's Law Bureau Prosecutory Staff and PGW entered a proposed Settlement Agreement on July 24, 2007, which pertained to a fire that resulted in the death of a woman.  On April 26, 2005, PGW had terminated gas service for failure to provide access to the meter in order to install an automatic meter reading device.  BCS, in accordance with its procedures, reviewed the status of utility service at the property and requested that the Commission's Law Bureau initiate an informal investigation into whether PGW violated the Public Utility Code by terminating service.  By Opinion and Order entered August 10, 2007, the Commission issued the proposed Settlement Agreement for comment.  On August 28, 2007, Community Legal Services filed comments and the Commission ordered the case be assigned to OALJ for further proceedings.  On August 28, 2008, a Settlement Agreement was filed.  Commission Staff reviewed ALJ Rainey's Initial Decision approving the Settlement.  Vote of 5-0 with no discussion.

• Anna C. Lysiak, M.D. v. New Rochelle Telephone Corp., 2024062-ALJ,
  C-2008-2024062.  On December 19, 2007, a complaint was filed alleging a billing/service dispute.  Respondent did not file an answer to the complaint.  A hearing was held on July 28, 2008.  Staff reviewed ALJ Koster's Initial Decision denying the complaint, in part, and sustaining the complaint to the extent that the Respondent did not provide adequate, efficient, safe and reasonable service.  This matter has been postponed until future Public Meeting.

CARRY-IN AGENDA

Bureau of Audits

• All matters approved as submitted.

• Comcast Business Communications, 1204808-OSA, A-310190.  Petition for Arbitration, filed on April 4, 2008, requesting that the Commission arbitrate the terms and conditions for interconnection with Embarq.  On September 17, 2008, ALJ David Salapa issued his Recommended Decision, wherein he found that Embarq's proposal to charge Comcast a recurring monthly charge of $2.00 is discriminatory and contrary to the requirements of Section 251(b)(3) of the Act, 47 U.S.C. § 251(b)(3).  Embarq filed Exceptions on October 2, 2008, and Comcast filed Reply Exceptions on October 14, 2008.  Staff recommends that the Commission adopt the proposed Opinion and Order that denies Embarq's Exceptions and adopts ALJ Salapa's Recommended Decision.  Vote of 4-0 with Commission Powelson Abstaining.

Office of Special Assistants

• Philadelphia Gas Works, 2073938-OSA, R-2008-2073938.  Petition filed on November 14, 2008, requesting, inter alia, (1) an expedited hearing; (2) permission to delay its regular quarterly GCR adjustment; and (3) permission to put in place on less than statutory notice Supplement No. 28 Tariff No. 2, reducing the GCR rate and increase the distribution delivery service rates.  Staff recommends that the Commission adopt the proposed Opinion and Order disposing of the Petition.  Joint Motion of Chairman Cawley and Commissioner Gardner granting the increase and terms is attached.  The Statement of Vice Chairman Christy supporting the Chairman's Motion and advising that he will be closely monitoring PGW's situation and stands ready to act if additional efforts are needed or if PGW is not performing up to expectations, is attached.  Vote of 5-0 with no further discussions.

• Aqua Pennsylvania, Inc., 2014446-FUS, A-2008-2014446.  Joint Application filed on December 20, 2007, for the approval of Aqua to acquire Gouldsboro's water system assets, the right of Aqua to provide water service to the public in Gouldsboro's service territory and the abandonment of water service by Gouldsboro to the public in a portion of Lehigh Township, Wayne County.  On February 14, 2008, the Office of Consumer Advocate (OCA) filed a protest.  On December 9, 2008, Aqua and OCA privately negotiated and filed an Agreement; thus negating the original protest.  One customer filed a Formal Complaint and subsequently withdrew the Complaint.  No hearing was held.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

• Aqua Pennsylvania, Inc., 2074746-FUS, A-2008-2074746.  Joint Application filed on November 7, 2008, and an amendment to the Joint Application filed on November 25, 2008.  Proofs of publication and service to appropriate entities were submitted.  No protests were filed and no hearings were held.  The Office of Consumer Advocate filed a Notice of Intervention in order to participate in the proceedings.  Staff recommends that the Commission adopt the proposed Tentative Order.  Vote of 5-0 with no discussion.

Law Bureau

• Borough of Camp Hill, 2075142-LAW, P-2008-2075142.  Ratification of Emergency Order re:  Emergency Joint Appeal of Action of Staff Regarding the Petition of the Borough of Camp Hill for Issuance of an Emergency Order.  Staff recommends that the Commission adopt the proposed Order that ratifies the December 12, 2008 Emergency Order signed by Commissioner Pizzingrilli.  Statement of Vice Chairman Christy supporting the ratification of the Emergency Order, is attached.  Vote of 5-0 with no further discussion.

SUPPLEMENTAL CARRY-IN AGENDA

Commissioners

• Joint Motion of Vice Chairman Tyrone Christy and Commissioner Robert F. Powelson In Re:  Implementation of a Working Group to Examine Issues Related to Philadelphia Gas Works, C-0011, M-                    .  This Motion is attached and advises that the working group described in the Motion be convened with the goal of examining the existing issues and challenges faced by PGW and recommending improvements, solutions and other appropriate courses of action, that the working group meet on a regular basis at a time and place that is convenient to the majority of the participants, with the expectation that the group meet at least 10 times in a calendar year; that the working group file reports with the Commissioners following every meeting, apprising them of the group's progress and recommendations for long-term solutions is attached.  Vote of 5-0 with no further discussion.

ANNOUNCEMENTS

• Commissioner Powelson recognized Carol Kozloff on her semi-retirement.
• Rick Hrip from Embarq is retiring after 40 years with the Company.
• A hearing will take place today, December 18, 2008, regarding current and future wholesale electricity markets.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, JANUARY 15, 2009, AT 10:00 AM 

* Denotes Order