Highlights: PA PUC Public Session of February 5, 2009

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 February 5, 2009 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, February 26, 2009 at 10:00 a.m.  The minutes of the Public Meeting of January 15, 2009, were, by a vote of 5-0, approved without modification.

Bureau of Transportation and Safety

1. Non Profit Emergency Service of Beaver County Inc. t/a Medic Rescue, 2059923-TAS, R-2008-2059923.  Increase in rates.  Beaver County.  Staff recommends that the Tariff Paratransit Pa. PUC No. 3 be approved to become effective on February 9, 2009.  Vote of 5-0 with no discussion.

Bureau of Audits

1. Philadelphia Gas Works, 2086453-AUD, D-2009-2086453.  Stratified Management and Operations Audit.  The consulting firm has completed its work and submitted an audit report containing 93 recommendations for improvement.  PGW responded with its Implementation Plan indicating acceptance of 88 recommendations, partial acceptance of 3 recommendations, and rejection of 2 recommendations.  Staff recommends that the Commission make the audit report and PGW's Implementation Plan public.  Commissioner Gardner's Statement is attached, as well as the Statement of Vice Chairman Christy.  Vote of 5-0 with no further discussion

Bureau of Conservation Economics & Energy Planning

1. All matters approved as submitted.

Office of Special Assistants

1. Calfo Red Line Transfer, Inc., 1144370-OSA, A-00115472.  BTS instituted a Complaint on March 1, 2007, against the Petitioner alleging that the Petitioner failed to pay an outstanding fine of $1,000 at A-00115472C0701.  The Complaint was served on the Petitioner on March 26, 2007.  BY Order issued on October 17, 2007, the Commission sustained the Complaint, ordered the Petitioner to pay a fine of $1,250 and cancelled Petitioner's Certificate of Public Convenience.  No Answer to the Complaint was file in a timely manner.  On September 30, 2008, the Petitioner filed the instant Petition for Reinstatement.  BTS filed an Answer to the Petition on January 8, 2009.  Staff recommends that the Commission adopt the proposed Opinion and Order which denies the Petition.  This matter has been postponed until Public Meeting of February 26, 2009.

1. Shryock Brothers Inc. v. Uwchlan Township, Petition of Uwchlan Township for Reconsideration, Reopening and Amendment of Commission Order entered January 31, 2008; Petition of The Hankin Group for Intervention and Reopening.  Staff recommends that the Commission adopt the proposed Opinion and Order which resolves the issues presented by the Parties.  Dissenting Statement of Vice Chairman Christy that the Commission should grant the Township's Petition for Reconsideration because the Township, he believes, is not providing public utility service, is attached.  Vote of 4-1 with no further discussion.

1. Law Bureau Prosecutory v. UGI Utilities, Inc., 1200974-OSA, C-20066664.  Law Bureau Prosecutory Staff filed a Formal Complaint on August 7, 2006, against UGI Utilities, Inc., pertaining to an explosion that occurred on March 26, 2004, in Lancaster, PA.  On August 28, 2006, UGI filed an answer admitting most of the factual allegations in the formal complaint, and contesting any violation of Federal or State gas safety rules or regulations had occurred.  Following investigation of the issues involved, the Parties explored the possibility of settlement in accordance with the provisions of 52 Pa. Code § 5.231.  A Settlement Agreement was entered into by the Parties and was filed with the Commission on September 4, 2008.  The Agreement calls for, among other things, the payment of a civil penalty of $5,000, the replacement of certain emergency equipment and revisions to emergency dispatching and response procedures.  An Opinion and Order was issued for comment on December 4, 2008.  No comments were filed.  Staff recommends that the Commission adopt the proposed Opinion and Order that approves the Settlement Agreement.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no further discussion.

1. Frackville Area Municipal Authority, 2016340-OSA, P-2008-2016340.  Opinion and Order entered on August 21, 2008 which answered a Material Question providing that the Borough of Frackville would not be providing jurisdictional services under the facts presented.  On September 5, 2008, FAMA filed a Petition for Clarification.  On September 17, 2008, Frackville filed an Answer.  Staff recommended that the Commission adopt the proposed Opinion and Order which resolves the issues presented in FAMA's Petition for Clarification.  Vote of 5-0 with no discussion.

1. National Fuel Gas Distribution, 2037613-OSA, M-2008-2037613.  A Commission Gas Safety Inspector discovered that NFGDC failed to make a Pennsylvania One Call Locate Request for an emergency excavation.  Based on the results of the ensuing investigation of the Commission's Gas Safety Division and the settlement discussions, NFGDC and Prosecutory Staff filed a proposed Settlement on April 21, 2008.  Joint Settlement for comment.  No comments were received.  Staff recommends that the Commission adopt the proposed Opinion and Order.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no discussion.

Bureau of Fixed Utility Services

1. Pennsylvania American Water Company, 2073929-FUS, A-2008-2073929.  Application filed on October 23, 2008, for approval of the right to offer, render, furnish or supply water service to the public in an additional portion of Valley Township, Chester County, PA.  No protests were filed and no hearings were conducted.  Proofs of publication and service to appropriate entities were submitted.  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., 2079310-FUS, R-2008-2079310.  Supplement No. 88 to Tariff Water-Pa. P.U.C. No. 1 filed on December 8,2008, requesting approval to increase its Distribution System Improvement Charge (DSIC) surcharge cap to 7.5%.  The Office of Consumer Advocate and the Office of Small Business Advocate have filed formal complaints.  Staff recommends that the Commission adopt the proposed Order.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no discussion.

Law Bureau

1. All matters approved as submitted.

Office of Administrative Law Judge

1. Alvin H. Smith v. Peoples Natural Gas Co., 1203257-ALJ, F-02079805.  PNG on December 18, 2006, filed a complaint-appeal to a BCS determination and requested that Alvin H. Smith be held responsible for all bills for natural gas service provided between July 21, 2003 to the filing of the complaint, including the unpaid balance for service rendered to the property in the name of Elbert S. Burkes between April 5, 2005 and March 1, 2006.  Mr. Smith's answer to the complaint was filed on January 10, 2007.  Hearings were held.  Staff reviewed the adopt of ALJ Meehan's Initial Decision that the complaint-appeal of PNG from the determination of the BCS sustaining the complaint of Mr. Smith, is dismissed.  This matter has been postponed until Public Meeting of February 26, 2009.

1. Rachel Jano v. PA-American Water Co., 1221158-ALJ, F-02209321.  A complaint was filed on November 28, 2007, alleging a billing dispute.  On December 28, 2007, PAWC filed an Answer and New Matter. On April 3, 2008, a hearing was held.  Staff reviewed the adopting of ALJ Jandebeur's Initial Decision dismissing the complaint.  This matter has been postponed until Public Meeting of March 12, 2009.

1. Ellis Garrett v. UGI Utilities Inc., 2033969-ALJ, F-2008-2033969.  UGI on December 10, 2007, filed a complaint-appeal to a BCS determination regarding a payment arrangement between UGI and Complainant.  Complainant did not file a response.  On September 3, 2008, a hearing was held.  Staff reviewed the adopt of ALJ Dunderdale's Initial Decision that the Petition of UGI to withdraw its complaint-appeal is granted.  Motion of Commission Pizzingrilli concurs with the ALJ, but discussion regarding the burden of proof needs to be corrected and that the Initial Decision be modified consistent with this Motion and that the OSA prepare an appropriate Opinion and Order.  Vote of 5-0 with no further discussion.

1. William and Joan Weber v. PPL Electric, 2052894-ALJ, C-2008-2052894.  A complaint was filed on July 7, 2008, alleging a service dispute.  On August 14, 2008, PPL filed an Answer and New Matter as well as Preliminary Objections (POs).  On August 25, 2008, Complainants filed an Answer to the POs, and on September 2, 2008, they filed their Answer to New Matter.  Commission Staff reviewed ALJ Colwell's Initial Decision granting the Preliminary Objections of PPL and dismissing the complaint.  Motion of Commissioner Gardner stating that an easement is involved, but also involves service and that the Initial Decision of the ALJ be reversed consistent with this Motion and that the OSA prepare an Opinion and Order consistent with this Motion is attached.  Vote of 5-0 with no further discussion.

1. PECO Energy Company-Electric, 2062044-ALJ, M-2008-2062044.  PECO on October 14, 2008, filed its Section 1307(e) USFC and TCR final reconciliation statements setting forth its over/under collections for the year 2008.  On November 18, 2008, a hearing was held.  Staff reviewed the adoption of ALJ Salapa's Recommended Decision accepting the Statements, insofar as they are undisputed.  This matter has been postponed until Public Meeting of March 26, 2009.

Commissioners

1. Motion of Vice Chairman Tyrone J. Christy In Re:  Defined Benefit Pension Plans, C-0001.  Accumulated Benefit Obligations, Projected Benefit Obligations, Projected Benefit Obligations and Fair Value of Plan Assets.  Motion of Vice Chairman Christy moving that an explanation as to how compliance with the requirements of the Pension Protection Act of 2006 will be accomplished, there is to be a summary of the most recently available pension obligations including the measurement date, the Fair Value of the Plan Assets as disclosed by the audited information from company pension plan, provide each annual pension plan valuation for a period of 3 yrs., provide any pension valuation reports that occur at other than the annual valuation date due to plan settlements, explain any actions the company is taking to address the recent activity in the financial markets as it relates to the pension plan, provide each annual pension plan valuation for a period of 3 yrs. Subsequent to this initial request, as well as the date that each report is expected to be completed, explain any actions the company is taking to address the recent activity in the financial market as it relates to the pension plan, if a jurisdictional utility's pension plan is part of an overall corporate pension plan, then the responses to the data requests and questions above should be qualified to include the method under which the utility participates in the corporate pension plan and how amounts are allocated to the utility, identify whether the company is currently using a funding basis or an accrual basis for pension expense for ratemaking purposes , that the OSA prepare an Opinion and Order consistent with this Motion, is attached.  Vote of 4-0 with Commissioner Gardner recusing himself.

CARRY-IN AGENDA

Bureau of Fixed Utility Services

1. All matters approved as submitted.

Law Bureau

1. Act 129, 2074154-LAW, M-2008-2074154.  Registry of Conservation Service Providers – Implementation of Act 129 of 2008 Phase 2.  Staff recommends that the Commission adopt the Final Order establishing a Conservation Service Provider Registry, an application and registration fees.  Chairman Cawley says this is an example of Staff doing splendid work.  Vote of 5-0 with no discussion.

Commissioners

1. Motion of Chairman Cawley Re:  Petition of Pike County Light & Power Co, C-0003.  For Expedited Approval of Its Default Service Implementation Plan.  Chairman Cawley says this is an excellent settlement and a vast improvement over plan approved earlier for a 3-year period.  Motion of Chairman Cawley is attached stating that the Petition for expedited approval of its default service as modified by its amended plan and further modified be approved, that the remaining issue regarding the aggregation customers be assigned to the OALJ for briefing and issuance of a recommended decision subject to exceptions, consistent with the Joint Petition and that the OSA draft an appropriate Order consistent with this motion.  Statement of Vice Chairman Christy made clear that Pike County is a unique situation, so as not to create a precedent of future interpretation of Act 29, is attached.  Joint Statement of Commissioner Powelson and Commissioner Gardner is attached.  Vote of 5-0 with no discussion.

1. Dominion Peoples Universal Service and Energy Conservation Plan for 2009-2011 submitted in Compliance with 52 Pa. Code §62.4, C-000     , M-2008-2044646.  Motion of Commissioner Pizzingrilli moving that the OSA prepare an Order consistent with this Motion.  Vote of 5-0 with no further discussion.

ANNOUNCEMENTS

1. There is a Reception at 4:30 P.M. at the State Museum to honor Black History Month.

THE NEXT REGULAR MEETING IS SCHEDULED FOR THURSDAY, FEBRUARY 26, 2009 AT 10:00 AM

 * Denotes Order