Highlights: PA PUC Public Session of August 6, 2009

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          At the August 6, 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 27, 2009 at 10:00 a.m.  The minutes of the Public Meeting of June 25, 2009, were, by a vote of 5-0, approved without modification.

BUREAU OF TRANSPORTATION & SAFETY

1. All matters approved as submitted.

BUREAU OF AUDITS

1. Metropolitan Edison and Pennsylvania Electric, 2093381-AUD, D-2009-2093381, D-2009-2093382.  Reports on the Audit of Non-Utility Generation Related Stranded Cost Recovery through the Competitive Transition Charge for the year ended December 31, 2008.  Staff recommends that the Commission approve the reports and release them to the public.  Motion of Chairman Cawley that the Law Bureau draft an appropriate order consistent with this motion, that the parties to the restructuring settlement of Met-Ed and Penelec be served a copy of this Order and that those parties be given the opportunity to submit comments to the audit reports within 30 days of the entry of this Order, is attached.  Vote of 4-1 with Commissioner Powelson dissenting.

OFFICE OF SPECIAL ASSISTANTS

1. BTS vs. Harold Jones, 1060825-OSA, A-00102107, A-001002017C0702.  Complaint instituted by BTS on 6/27/07, alleging that Jones had abandoned or discontinued service without having filed an application with the Commission to do so.  By Order entered on 11/08/07, the Commission noted that, since no answer to the complaint had been timely filed and since Jones had not filed an application to abandon or discontinue service with the Commission, the allegation of the complaint was deemed admitted, the complaint was sustained, and the Certificate was cancelled.  On 3/16/09, Jones filed the instant Petition for Reinstatement of Certificate for the Purpose of Transfer.  No Response to the Petition has been filed.  Staff recommends that the Commission adopt the proposed Opinion and Order which grants the Petition.  This matter has been postponed until Public Meeting of August 27, 2009.

1. Law Bureau Prosecutory Staff vs. Columbia Gas of PA., Inc., 1203515-OSA, C-20077249.  Complaint filed on 1/4/07, alleging that an 8/10/06 explosion and fire at a house in Mt. Pleasant Township was related to violations of 49 CFR Part 192 by Columbia.  The Parties negotiated a settlement, which was filed with the Commission on 3/12/08.  A Secretarial Letter of 5/6/09, advised the Parties that the information presented was insufficient for the Commission to evaluate the Settlement Agreement and the Parties were requested to submit additional information within 60 days.  Prosecutory Staff & Columbia filed additional information on 7/1/09 and 7/2/09, respectively.  Motion of Vice Chairman Christy that the OSA prepare an Opinion and Order consistent with this Motion, that the Opinion and Order be issued for comment so as to afford any interested party an opportunity to comment within 20 days of the date of entry of the Opinion and Order, that a copy of the Opinion and Order be served on the parties to the proceeding, the Office of Consumer Advocate and the Office of Small Business Advocate, and that subsequent to the Commission's review of the comments filed in this proceeding, a final Opinion and Order shall be issued, is attached.  Vote of 3-2 with no further discussion with Commissioner Pizzingrilli and Commissioner Powelson dissenting.

1. Marco & Peter Auto Transit, 1206349-OSA, A-00123759F0002.  Applicant currently holds authority to provide group and party service.  On 6/13/07, the Applicant filed for authority to commence paratransit service.  Protests were filed.  A hearing was held on 7/9/08.  On 2/23/09, ALJ Rainey issued his Initial Decision granting the Applicant contract carrier authority.  The Applicant filed Exceptions on 3/30/09.  Reply Exceptions were filed by Protestants Bucks County Transport, Inc. and Krapf's Coaches, Inc., on 4/6/09, and 4/9/09, respectively.  Staff recommends that the Commission adopt the proposed Opinion and Order which grants the Exceptions, in part, and modifies the Initial Decision.  This matter has been postponed until Public Meeting of August 27, 2009. 

1. Law Bureau Prosecutory Staff vs. First Energy Co., 2112849-OSA, M-2009-2112849.  Between 8/11/08 and 8/26/08, company terminated 492 customers without providing the required 10-day notice.  Following an informal investigation, FirstEnergy and the Commission Staff filed a Settlement Agreement on 6/10/09.  The Settlement Agreement, inter alia, requires FirstEnergy to pay a civil penalty of $50,000, to make a $150,000 contribution to FirstEnergy's Dollar Energy Fund, and to make restitution adjustments to affected customers' bills ranging between $50 and $200.  Staff recommends that the Commission adopt the proposed Opinion and Order which, inter alia, directs that the Opinion and Order and the proposed Settlement Agreement be entered for comments by interested parties.  Motion of Vice Chairman Christy that the OSA prepare an Opinion and Order consistent with this Motion, that the Opinion and Order be issued for comment so as to afford any interested party an opportunity to comment within 20 days of the date of entry of the Opinion and Order, that a copy of the Opinion and Order be served on the parties to the proceeding, the OCA and the OSBA, that subsequent to the PUC's review of the comments filed in this proceeding, a final Opinion and Order shall be issued, is attached.  Vote of 3-2 with no further discussion with Commissioner Pizzingrilli and Commissioner Powelson dissenting.

BUREAU OF FIXED UTILITY SERVICES

1. Pymatuning Ind. Telephone Co. and P.T. Communications Corp., 2114073-FUS, A-2009-2114073, A-2009-2114080.  Joint application filed on 6/12/09, for approval of the transfer of stock from Pymatuning Holding Company to Townes Tele-Communications, Inc.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

COMBINED BUREAU AGENDA

1. Sugar Creek Water Company, 2105603-FUS, R-2009-2105603.  Supplement No. 8 to Tariff Water - Pa. PUC No. 3, filed on 4/30/09, proposing an annual increase in rates of $4,686 (14.0%) to become effective 8/17/09.  Staff recommends that the Commission adopt the proposed Order.  Vote of 5-0 with no discussion.

1. Sugar Creek Water Company, 2105603-OTS, R-2009-2105603.  Supplement No. 8 to Tariff Water - Pa. PUC No. 3, filed on 4/30/09, to become effective 8/17/09, proposing an increase of $4,686 or 14%.  Staff recommends that the Commission institute an investigation and allow the filing to be suspended by operation of law for a period of 7 months, or through 3/17/10.  This was rejected with a vote of 5-0.

1. Cooperstown Water Company, 2105668-FUS, R-2009-2105668.  Supplement No. 19 to Tariff Water-Pa. P.U.C. No. 3, filed on 4/30/09, proposing an annual increase in rates of $13,998 (32.9%) to become effective 8/17/09.  Staff recommends that the Commission adopt the proposed Order.  This was rejected with a vote of 5-0.

1. Cooperstown Water Company, 2105668-OTS, R-2009-2105668.  Supplement No. 19 to Tariff Water - Pa. PUC no. 3, filed on 4/30/09, to become effective 8/17/09, proposing an increase of $13,998 or 32.9%.  Staff recommends that the Commission institute an investigation and allow the filing to be suspended by operation of law for a period of 7 months, or through 3/17/10.  Vote of 5-0 with no discussion.

LAW BUREAU

1. Valley Energy, Inc., 2096259-LAW, P-2009-2096259.  Petition filed on 3/17/09, for Waiver of Compliance with Purchase of Receivable Deadlines and Allocated Cost of Service Data Filing.  Staff recommends that the Commission adopt the Order that grants the request for an extension of time to 1/1/10.  Vote of 4-1 with the Dissenting Statement of Vice Chairman Christy attached.

OFFICE OF ADMINISTRATIVE LAW JUDGE

1. 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 10 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 at 3/3 million blocks over the 4-year term.  On 5/28/09, a Joint Petition for Settlement was filed.  Commission staff reviewed and advised that the Commission adopt ALJ Salapa's Recommended Decision approving the Settlement.  The Dissenting Statement of Vice Chairman Christy is attached.  Vote of 4-1 with no further discussion. 

1. Philadelphia HGI Associates LP vs. Hess Corporation, 2069141-ALJ, C-2008-2069141.  Complaint filed 10/7/08, alleging a billing dispute.  Hess filed its answer and new matter 11/5/08.  A hearing was not held.  Commission 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 27, 2009.

CARRY-IN AGENDA

BUREAU OF ADMINISTRATIVE SERVICES

1. PUC Restructuring Consultant, 2122461-BAS, M-2009-2122461.  The Commission is seeking to review its overall operations in order to increase its effectiveness in carrying out its duties under the Public Utility Code.  Staff recommends that the Commission adopt the recommendation of the Evaluation Committee.  Vote of 4-1 with Vice Chairman Christy dissenting.

1. PPL Electric Utilities Corp Retail Markets, 2104271-LAW, M-2009-2104271.  Generation rate cap terminates at the end of 2009.  There is virtually no retail competition in PPL's service territory presently.  EGS will need the company to take certain actions to help them compete for customers.  Staff recommends that the Commission approve the proposed order.  Vote of 4-1 with the Dissenting Statement of Vice Chairman Christy attached.

COMMISSIONERS

1. Motion of Commissioner Powelson, C-0015, M-2009-2093215.  In RE:  Petition of PECO Energy for approval of its Act 129 Energy Efficiency and Conservation Plan and expedited approval of its compact fluorescent lamp.  Motion of Commissioner Powelson that the Joint Petition for Partial Settlement is tentatively approved with conditions, that a Secretarial Letter memorializing the Commission's decision be issued as soon as expediently possible; that the OSA prepare an Opinion and Order consistent with this Motion; and that the remainder of the Record be remanded to the OALJ for further proceedings on the remaining portions of PECO's Energy Efficiency and Conservation Plan, is attached.  Vote of 5-0 with no further discussion.

1. Motion of Vice Chairman Christy, C-0016.  In re of jurisdictional utilities:  Defined Benefit Pension Plans; Accumulated Benefit Obligations, Projected Benefit Obligations, Projected Benefit Obligations and Fair Value of Plan Assets.  The Motion of Vice Chairman Christy that the Commission find that the 19 jurisdictional utilities subject to the data request have complied with the March 5 Order, that the Commission take no action at this time, that the Commission continue to monitor the reports filed over the next three years, that the OSA prepare an Opinion and Order consistent with this Motion, is attached.  Vote of 4-0 with Commission Gardner abstaining.

NO ANNOUNCEMENTS

 * Denotes Order