Highlights: PA PUC Public Session of July 23, 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 July 23, 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, August 6, 2009 at 10:00 a.m.  The minutes of the Public Meeting of June 18, 2009, were, by a vote of 5-0, approved without modification.

BUREAU OF TRANSPORTATION & SAFETY

• Judith G. Keck, 2040483-TAS, A-2008-2040483.  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 Tentative Order approving the application.  The Dissenting Statement of Vice Chairman Christy is attached.  Vote of 4-1 with no further discussion.

• Bureau of Transportation & Safety v. BC Logistics Inc. t/a Five Star Moving Systems, 2050086-TAS, C-2009-2050086, A-00121000.  Complaint 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 order directing that the complaint be sustained, the certificate be canceled and the Respondent be fined $250.00.

• Dick D. Ramos t/a Dicky's Xpress Trans, 2087225-TAS, A-2009-2087225.  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.  Hazletownship, Luzerne County.  Staff recommends that the Commission adopt the proposed order approving the application.  Dissenting Statement of Vice Chairman Christy is attached.  Vote of 3-2 with Chairman Cawley also dissenting.

BUREAU OF AUDITS

• All matters approved as submitted.

OFFICE OF SPECIAL ASSISTANTS

• Philadelphia Gas Works, 1505419-OSA, M-2009-1505419.  Informal investigation initiated by Law Bureau's Prosecutory Staff by letter dated 12/21/07, alleged incorrect termination of service by Philadelphia Gas Works.  The LBPS and PGW entered into a proposed Settlement Agreement, which was filed on 3/26/09.  By Order entered 5/15/09, the Commission issued the proposed settlement for comment.  No Comments were received.  Staff recommends that the Commission adopt the proposed Opinion and Order, which approves the Settlement Agreement.  Statement of Commissioner Powelson is attached.  Vote of 5-0 with no further discussion.

• Linda Christman v. PECO Energy, 2026212-OSA, F-2008-2026212.  Complaint filed on 3/22/08, alleging that her electric bills were higher than they should be during 6/05-8/05.  The Complainant requests that the disputed amounts be taken off her bill.  ALJ Nguyen's Initial Decision issued 3/19/09, recommended that the complaint be sustained in part and that the Complainant's bills be adjusted for June, July and August of 2005 and 2007.  PECO filed Exceptions on 4/8/09.  Staff recommended that the Commission adopt the proposed Opinion and Order that grants PECO's Exceptions in part, and adjusts the Complainant's bills for the months of June, July and August of 2005.  Joint Motion of Commissioners Gardner and Powelson, moving  that the Exceptions of PECO to the Initial Decision be granted, that the Initial Decision be reversed and Linda Christman's Formal Complaint against PECO be dismissed and that the OSA prepare an Opinion and Order consistent with this Motion, is attached.  Vote of 4-1 with Vice Chairman Christy dissenting. 

• Delphine Matthews v. Philadelphia Gas Works,  2029557-OSA, C-2008-2029557.  Formal complaint filed on 2/11/08  On 4/20/08, PGW filed a timely Answer.  By Initial Decision issued on 12/30/08, ALJ Koster dismissed the complaint.  The Complainant filed Exceptions on 1/16/09, and PGW filed timely Replies to Exceptions on 3/16/09.  By Order entered 4/17/09, the Commission denied the Exceptions and adopted the Initial Decision.  On 5/4/09, the Complaint filed the instant Petition for Reconsideration.  On 5/14/09, the Commission granted reconsideration pending review and consideration of the merits.  PGW filed its Answer to the Petition on 5/18/09.  Also on 5/18/09, PGW filed a Certificate of Satisfaction.  Staff recommends that the Commission adopt the proposed Opinion and Order vacating the Commission's Order of 4/17/09, treating the Certificate of Satisfaction as a Motion to Withdraw a Pleading, and permitting the Parties to file additional information.  The Joint Statement of Commissioners Pizzingrilli and Powelson Dissenting in Part is attached.  Vote of 3-2 with no further discussion.

• Aqua Pennsylvania, Inc., 2079310-OSA, R-2008-2079310, C-2008-2080943, C-2009-2082586, C-2009-2086699, C-2009-2087277, C-2009-2090937, C-2009-2090542, C-2009-2090707, C-2009-2090725.  Supplement No. 88 to Tariff Water Pa. P.U.C. No. 1, Revision of the Distribution System Improvement Charge filed on 12/8/08.  Complaints were filed by the OSBA, OCA, and several ratepayers.  OTS filed a Notice of Appearance.  ALJ Fordham Recommend Decision of 5/29/09, approved an increase in Aqua's DSIC surcharge from 5% to 7.5%.  The OCA and OSBA filed Exceptions on 6/12/09.  Aqua and OTS filed Reply Exceptions on 6/22/09.  Staff recommends that the Commission adopt the proposed Opinion and Order that denies the Exceptions and adopts the ALJ's Initial Decision.  Vote of 5-0 with no discussion.

BUREAU OF FIXED UTILITY SERVICES

• Superior Water Co., Inc., 2102838-FUS, S-2009-2102838.  Securities Certificate in respect of a $3,600,000 term loan and a $500,000 line of credit.  Staff recommends that the Commission adopt the proposed Order.  Statement of Commissioner Gardner is attached with Commissioner Powelson associating with Commissioner Gardner's Statement.  Vote of 5-0 with no further discussion.

• Windstream Pennsylvania, LLC, 2115401-FUS, R-2009-2115401.  Supplement No. 36 to its General Subscriber Services Tariff-Telephone Pa. P.U.C. No. 7, filed on 6/23/09, to become effective 7/24/09, proposing to revise the boundary between the Company's Graysville and New Freeport exchanges.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

COMBINED BUREAU AGENDA

• CAN DO, INC., 2103901-FUS, R-2009-2103901.  Supplement No. 20 to Tariff Water-Pa. P.U.C. No. 3, filed on 4/28/09, proposing an annual increase in rates of $176,913 (14.0%) to become effective 7/1/09, and voluntarily postponed to 8/1/09.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

• CAN DO, INC., 2103901-OTS, R-2009-2103901.  Supplement No. 20 to Tariff Water-Pa. P.U.C. No. 3, filed on 4/28/09, to become effective 7/1/09, proposing an annual increase in rates of $176,913 of 14%.  On 6/2/09, CAN DO, voluntarily postponed the consideration period until 8/1/09.  Staff recommends that the Commission institute an investigation of the proposed rates, rules and regulations and allow the filing to be suspended by operation of law for a period of 7 months, or through 2/1/10.  Rejected by a vote of 5-0.

• Sunoco Pipeline, L.P., 2105575-FUS, R-2009-2105575.  Tariff Pipeline - Pa. P.U.C. No. 12, filed on 4/30/09, proposing an annual increase in rates of $998,238 (4.12%) to become effective 7/1/09, voluntarily postponed until 8/1/09.  Staff recommends that the Commission adopt the proposed Order.

• Sunoco Pipeline, L.P., 2105575-OTS, R-2009-2105575.  Tariff Pipeline - Pa. PUC No. 12 cancelling Tariff Pipeline - Pa. PUC No. 11, filed on 4/30/09, to become effective 7/1/09, which was voluntarily postponed to 8/1/09, proposing an increase of $998,238 or 4.1%.  Staff recommends that the Commission permit the filing to become effective 8/1/09 in its entirety.  Vote of 5-0 to the extent it is consistent with 2105575-FUS.

LAW AND OSA COMBINED AGENDA

• Investigation-Intrastate Access Charges and IntraLATA Toll Rates of Rural Carriers & The PA Universal Svc Fund, 1189996-LAW, I-00040105.  Joint Petition for Stay filed by PTA, OCA and Embarq PA regarding the access charge investigation.  Parties requested one more year stay of the investigation pending a FCC ruling on intercarrier compensation.  The FCC is considering an ICC NOPR, 3 proposals that intrastate and interstate access charges mirror each other at a rate of $.0007 per minute.  This decision would have a large impact on our investigation.  Staff recommends that the Commission grant the Petition for Stay. Motion of Chairman Cawley is attached.  (see AT&T case below.)  Chairman Cawley comments that the Commission is not going to wait for the FCC any longer.  Vote of 5-0 with no discussion.

• AT&T Communications of PA LLC v. Armstrong Telephone Company, 2098380-OSA, C-2009-2098380, C-2009-2099805, C-2009-2098735.  Ninety-Six identical complaints filed on 3/19/09 by 3 complainants against 32 Rural Local Exchange Carriers.  On 4/30/09, the PA Telephone Association, on behalf of the RLECs, filed "Preliminary Objections and Motion for Stay or Consolidation," which ALJ Melillo denied on 6/22/09.  On 6/25/09, the RLECs filed the instant Petition Requesting Interlocutory Review and Answer to Material Questions.  Briefs were filed on 7/6/09.  Staff recommends that the Commission grant the consideration of the Material Questions and consolidate the complaints with the Investigation Regarding Intrastate Access Charges and intraLATA Toll Rates of Rural Carriers and The Pennsylvania Universal Service Fund.  The Motion of Chairman Cawley, moving that the consolidated proceeding move forward and be adjudicated within 12 months, that the presiding ALJ and parties have 12 months to develop an adequate evidentiary record and issue a Recommended Decision, that issues already adjudicated before ALJ Colwell not be relitigated absent extraordinary circumstances, and that the stay in the Intrastate Access Charge Investigation matter be lifted, is attached.  Vote of 5-0 with no further discussion.

LAW BUREAU

• Call Recording Prohibition Wavier, 2074891-Law, M-2008-2074891.  Tentative Order entered 11/10/08, proposed terms for telecommunications utilities to qualify for temporary partial waiver of section 63.137(2).  Such waivers would allow telecommunications utilities to record, for training and quality of service purposes, customer calls to their call centers.  Comments were filed by PTA.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

• Delegation of Authority to Bur of Transportation, 2115071-Law, M-2009-2115071.  Delegation of authority to cancel motor carrier certificates for the following two types of uncontested violations:  a failure to provide evidence of insurance; and abandonment or discontinuance of service.  Staff recommends that the Commission delegate to BTS authority to dispose of uncontested violations regarding evidence of insurance & abandonment of service; approve the BTS safeguards; Notice of delegation be published in PA Bulletin; and update the PUC Procedures Manual.  The Dissenting Statement of Vice Chairman Christy is attached.  Vote of 4-1 with no further discussion.

• North American Numbering Plan Administrator, 2117193-LAW, P-02009-2117193.  Petition filed on behalf of the PA Telecommunications Industry for Approval of Numbering Plan Area Relief Planning for the 570 NPA.  Staff recommends that the Commission deny the petition and seek input from interested parties on the appropriate relief plan for the 570 NPA.  Vote of 5-0 with no discussion.

OFFICE OF ADMINISTRATIVE LAW JUDGE

• Wellsboro Electric Co., 2020257-ALJ, P-2008-2020257.  Commission Order entered 2/28/08, to investigate the high congestion costs and the issuance of a Recommended Decision addressing 9 questions in the Order.  An extension was requested so the parties could attempt to amicably resolve their differences.  A hearing to admit into the record the parties' Petition for Settlement and the Stipulation of Facts was held on 5/4/09.  Staff reviewed and advised that the Commission adopt ALJ Weismandel's Recommended Decision approving the Settlement without modification.  The Statement of Commissioner Gardner and the Statement of Chairman Cawley are attached.  Vote of 5-0 with no further discussion.

• PPL Electric Utilities Corp, 2021398-ALJ, P-2008-2021398.  Petition filed on 1/23/08, for approval of a plan to offer its customers a Voluntary Alternative Energy Program and allow it to bank Alternative Energy Credits (AECs).  PPL's petition proposes offering its customers a voluntary program under which customers can purchase 100 kWh blocks of AECs to support the development of alternative energy.  The credits include Tier I wind and Tier II hydroelectric.  The petition proposes to limit the program to an initial term of 4 years and to cap the program to an initial term of 4 years and to cap the program at 3.3 million blocks over the 4-year term.  On 5/28/09, a Joint Petition for Settlement was filed.  Staff reviewed and advised that the Commission adopt ALJ Salapa's Recommended Decision approving the Settlement.  This matter has been postponed until Public Meeting of August 6, 2009.

• Marie Young v. National Fuel Gas, 2059233-ALJ, C-2008-2059233.  Complaint filed on 8/13/08, alleging a safety violation against NFG.  An answer was filed by NFG on 9/10/08.  On 11/6/08, a hearing was held.  Staff reviewed and advised that the Commission adopt ALJ Hoyer's Initial Decision sustaining the complaint.  Statement of Commissioner Gardner in which he dissents is attached.  Vote of 4-1 with no further discussion.

• Philadelphia HGI Associates LP v. Hess Corporation, 2075839-ALJ, F-2008-2075839.  Complaint filed 10/7/08, alleging a billing dispute.  Hess filed its answer and new matter 11/5/08.  A hearing was not held.  Staff reviewed and advised that the Commission adopt ALJ Koster's Initial Decision dismissing the case.  This matter has been postponed until Public Meeting of August 6, 2009.

• Little Washington Wastewater Co. - East Bradford Division, 2081533-ALJ,
  R-2008-2081533.  Supplement No. 57 to Tariff Sewer - Pa. P.U.C. No. 1 filed on 12/29/08, to become effective 3/1/09, for a proposed rate increase.  By Order entered 2/26/09, the Commission suspended the Company's tariff filing until 10/1/09, and assigned the case to OALJ for an investigation.  On 5/1/09 a Joint Petition for Settlement was filed.  On 5/22/09, a Revised Settlement Petition was admitted without objection.  Staff reviewed and advised that the Commission adopt ALJ Jones' Recommended Decision approving the Revised Settlement Petition without modification.  Vote of 5-0 with no discussion.

• Little Washington Wastewater Co - Northeast Consolidated Division, 2081738-ALJ, R-2008-2081738.  Supplement No. 55 to Tariff Sewer - Pa. P.U.C. No. 1 filed 12/29/08 to become effective 3/1/09, for a proposed rate increase.  By Order entered 2/26/09, the Commission suspended the Company's tariff filing until 10/1/09, and assigned the case to OALJ for an investigation.  On 5/4/09 a Joint Petition for Settlement was filed.  Staff reviewed and advised that the Commission adopt ALJ Jones' Recommended Decision approving the Settlement as modified.  Vote of 5-0 with no discussion.

• PPL Electric Utilities Corp., 2091280-ALJ, P-2009-2091280.  Petition filed on 2/19/08, requesting approval its plan to offer customers a Rate Mitigation Plan.  PPL's petition proposes offering its customers a voluntary program under which customers can elect to defer a portion of PPL's 1/1/10 forecasted rate increase.  PPL proposes to recover the deferred amounts plus carrying charges by the end of 2012.  The petition alleges that most of PPL's residential and small commercial and industrial customers will be eligible to participate in the RMP.  On 6/12/09, a Joint Petition for Settlement was filed.  Staff reviewed and advised that the Commission adopt ALJ Salapa's Recommended Decision approving the Settlement.  Chairman said that this is an important case and encouraged customers to participate in the voluntary program.  Motion of Vice Chairman Christy advising that PPL file a report annually with the PUC beginning 4/1/11 for calendar year 2010, detailing the prior calendar year, the number of customers participating in the RMP by rate class, the amount of deferred payments, the deferred am0unt that has been repaid and the deferred amount that has not been repaid, that PPL submit the bill insert and customer education materials related to the RMP to the PUC for approval prior to issuance to the public, and that the OSA prepare an Opinion and Order consistent with the Motion, is attached.  Vote of 5-0 with no further discussion.

CARRY-IN AGENDA

OFFICE OF SPECIAL ASSISTANTS

• T.W. Phillips Gas & Oil Co., 2075250-OSA, R-2008-2075250, R-2008-2013026, C-2009-2088507, C-2009-2089199.  1307(f) filing submitted on 1/30/09, to become effective on or after 8/1/09, as well as to a motion to consolidate a previously-filed Modification Proceeding of its 2008 PGC with TWP's 2009 PGC.  The motion was opposed by Bison Resources but was granted by the ALJ.  The ALJ Nene's Recommended Decision recommended approval of a Settlement of TWP's 2009 PGC filing and further hearing for the Modification Proceeding.  Exceptions and Reply Exceptions were filed by Bison and TWP.  Staff recommends that the Commission adopt the proposed Opinion and Order, which denies TWP's Exceptions, grants Bison's Exceptions and modifies the ALJ's Recommended Decision.  Motion of Commissioner Pizzingrilli that the Recommended Decision of the ALJ be affirmed and that the OSA prepare an Order consistent with the Motion, is attached.  Vice Chairman Christy's Dissent in Part is also attached.  Vote of 4-1 with no further discussion.

ANNOUNCEMENTS

• Mitch Miller, Director of the Bureau of Consumer Services for the past 17 years, has retired.

* Denotes Order