Highlights: PA PUC Public Session of March 25, 2010

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 March 25, 2010 Public Meeting of the Pennsylvania Public Utility Commission (“Commission”), the Commissioners adopted Staff’s recommendations for action by a vote of 4-0 (with the vacant seat left by former Commissioner Pizzingrilli) 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, April 15, 2010 at 10:00 a.m.  The minutes of the Public Meeting of February 25, 2010, were, by a vote of 4-0, approved without modification.

BUREAU OF TRANSPORTATION & SAFETY

1. Rolo Shuttle Service Inc., 2111233-TAS, A-2009-2111233.  Application for the right to begin to transport as a common carrier by motor vehicle, persons in paratransit service for Iron Tiger Logistics.  Staff recommends that the Commission adopt the proposed order approving the amended application.  Vote of 4-0 with no discussion.

1. Homestead Transportation LLC, 2140511-TAS, R-2009-2140511.  Rate Increase - Lansdale, Montgomery County.  Staff recommends that the Commission approve Tariff Call or Demand Pa. PUC No. 2 to become effective 3/29/10.  Vote of 4-0 with no discussion.

BUREAU OF AUDITS

1. Pine Roe Natural Gas, Co., 2094771-AUD, D-2009-2094771.  Report on the Gas Cost Rate for the twelve months ended 8/31/08, 8/31/07 and 8/31/06.  Staff recommends the Commission approve the Audit Report for public release.  This matter has been postponed until Public Meeting of March 25, 2010.  Joint Statement of Chairman Cawley and Commissioner Gardner is attached.  Vote of 4-0 with no further discussion.

BUREAU OF CONSERVATION ECONOMICS & ENERGY PLANNING

1. All matters approved as submitted. 

OFFICE OF SPECIAL ASSISTANTS

1. Buffalo & Pittsburgh Railroad, Inc., Application filed on 12/28/04, for approval to abolish all public crossing on their Brockway to Brookville line.  By mutual agreement between BPRR and other concerned Parties, a settlement of responsibilities was reached on 9 of the 11 crossings involved.  The abolition of the remaining 2 crossings and resultant financial and operational responsibility were addressed in the Recommended Decision of ALJ Nene, which was issued on 12/28/09.  BPRR and Kovalchick Corp., filed Exceptions on 1/18/10.  Reply Exceptions were filed by PennDot on 1/29/10.  Staff recommends that the Commission adopt the proposed Opinion and Order that grants the Exceptions of BPRR and Kovalchick, and modifies the Recommended Decision.  This matter has been postponed until Public Meeting of April 15, 2010.

1. USA Express Moving & Storage, Inc., 1206191-OSA, A-00117215C0701.  Complaint initiated on 6/1/07, alleging various violations.  BTS requested a civil penalty of $950, and a refund of $365.50.  On 7/23/07, USA Express Moving filed an Answer to the Complaint, which admitted, in part, and denied, in part the allegations by BTS.  A Hearing before ALJ Nguyen was held on 8/12/09 and USA Express Moving failed to appear.  On 10/27/09, ALJ Nguyen issued his Initial Decision which sustained the Complaint.  On 1/29/10, USA Express moving filed Exceptions to the Initial Decision.  On 2/4/10, the Commission’s Law Bureau Prosecutory Staff filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order, which denies the Exceptions and adopts the ALJ’s Initial Decision.  Motion of Vice Chairman Christy that the proceeding be remanded to the OALJ and that the OSA prepare the necessary Opinion and Order, is attached.  Vote of 4-0 with no further discussion.

1. UGI Utilities, Inc., 2037411-OSA, M-2010-2037411.  Fire in Campbelltown on 8/28/07 totally damaged a mobile home. There were no injuries.  A backhoe operator from York Excavating Company struck an unmarked ¾ inch steel main with 51 PSIG.  The excavating crew alerted and vacated residents of a nearby mobile home park, nearby business and shops.  UGI employees used a backhoe to excavate and squeeze off the steel main.  On 8/27/07, UGI was at the same location to fix a service line hit because it was not marked correctly.  A Commission Gas Safety Inspector discovered that the main leading to the adjacent mobile home part was not marked because it had not been included on any UGI drawing or map.  After an ensuing investigation of the Commission’s Gas Safety Division and Settlement discussions, UGI and Prosecutory Staff filed a proposed Settlement on 1/28/10.  Staff recommends that the Commission adopt the proposed Opinion and Order that issues the Joint Settlement for Comment.  Statement of Chairman Cawley and the Statement of Vice Chairman Christy are attached.  Vote of 4-0 with no further discussion.

1. Digital 833 Chestnut LLC vs. UGI Energy Services, Inc., 2076623-OSA,
   C-2008-2076623, C-2008-2076235, C-2008-2076610.  Formal Complaint filed on 11/19/08, seeking reimbursement for amounts paid after its agent failed to remit payments on its behalf.  On 5/26/09, UGI filed a Motion to Dismiss the Complaint.  Digital 833 filed an Answer thereto.  In his Initial Decision, ALJ Koster granted UGI’s Motion Digital 833 filed Exceptions to the Initial Decision and UGI filed Reply Exceptions.  Staff recommends that the Commission adopt the proposed Opinion and Order which denies Digital 833’’s Exceptions and adopts the Initial Decision.  Motion of Chairman Cawley that the Initial Decision of the ALJ be reversed and that the OSA be directed to prepare an Opinion and Order, is attached.  Vote of 3-1 with Commissioner Powelson dissenting.

1. Commercial Utility Consultants Inc. vs. Duquesne Light Company, 2079429-OSA, C-2008, C-2008-2079429.  Formal Complaint filed on 12/10/08, alleged, inter alia, that Duquesne’s interpretation and application of its tariff rule pertaining to the provision of load data to customers discriminates against major industrial customers.  On 1/6/09, Duquesne filed an Answer that denied the allegations of the Complaint.  On 10/26/09, ALJ Fordham issued an Initial Decision wherein she recommended that the Complaint be sustained in part and dismissed in part.  The ALJ found that Duquesne is violating its tariff by charging a $30 fee for historical billing data.  The ALJ dismissed all other allegations and denied the Complainant’s request for a refund.  Duquesne filed Exceptions on 11/16/09, and CUC filed Reply Exceptions on 11/30/09.  Staff recommends that the Commission adopt the proposed Opinion and Order which grants Duquesne’s Exceptions in part, denies them in part, and adopts the ALJ’s Initial Decision, as clarified by this Opinion and Order.  Motion of Commissioner Gardner that the Initial Decision of ALJ Fordham be sustained, in part, and reversed, in part, that the Exceptions of Duquesne Light Company be granted, in part, and denied, in part and that the OSA prepare an Order, is attached.  Vote of 4-0 with no further discussion.

1. Implementation-Inspection & Maintenance Standards, 2094773-OSA,
   M-2009-2094773, L-00040167.  Petition for Appeal from Action of Staff Concerning Waiver Request of Frequency of Substation Inspections filed on 1/11/10, requesting wavier of the requirement that substations be inspected at intervals of five weeks.  Staff recommends that the Commission adopt the proposed Opinion and Order, which denies this Petition.  This matter has been postponed until Public Meeting of April 15, 2010.

1. Dusan Grmusa vs. Dominion Retail Inc., Formal Complaint filed on 7/22/09, alleging that Dominion Retail enticed him to switch his electric service from Duquesne and promised a 10% savings.  Dominion Retail filed both an Answer with New Matter and a Preliminary Objection that asked for dismissal of the Complaint based on the Commission’s lack of subject matter jurisdiction.  By Initial Decision issued 12/15/09, ALJ Cocheres granted Dominion Retail’s Preliminary Objection and dismissed the Complaint.  The Complainant filed Exceptions dated 1/4/10, and Dominion retail filed reply Exceptions on 1/15/10.  Staff recommends that the Commission adopt the proposed Opinion and Order that denies the Exceptions and adopts the ALJ’s Initial Decision.  Motion of Commissioner Gardner that the OSA prepare an Opinion and Order is attached.  Vote of 4-0 with no further discussion.

BUREAU OF FIXED UTILITY SERVICES

1. Aqua Pennsylvania, Inc., 2107694-FUS, A-2009-2107694.  Application filed on 5/8/09, for approval to begin to offer, render, furnish and supply water service to the public in an area known as Trailwood, located in a portion of Bear Creek Township, Luzerne County.  The application was protested by 3 individuals.  A hearing was scheduled but none of the protestants appeared.  Telephone calls were made to the individuals and only one participated by indicating his desire to abandon his protest.  By an Initial Decision issued on 12/9/09, ALJ Jandebeur dismissed the 3 protests and reassigned the application to the FUS for further review.  The Commission issued a Final Order on 2/5/10, affirming the ALJ’s decision.  Staff recommends that the Commission adopt the proposed Order that approves the subject application.  Vote of 4-0 with no discussion.

1. Boro of Schuylkill Haven, 2154670-FUS, A-2010-2154670.  Application filed on 1/2/10, for approval of the right to offer, render, furnish, or supply domestic water service to the public in additional territory in portions of North Manheim Township, Schuylkill County.  Staff recommends that the Commission adopt the proposed Order that approves the Application.  Vote of 4-1 with no discussion.

1. Mahanoy & Mahantango Telephone Co., 2161970-FUS, P-2010-2161970,
   P-2010-2161928, P-00961115F1000, P-00961116F1000.  2010 Joint Price Index/Service Price Index filing.  No protests were filed.  Staff recommends that the Commission adopt the proposed Order approving the filing.  Vote of 4-0 with no discussion.

COMBINED BUREAU AGENDA

LAW BUREAU

1. Columbia Gas of PA Inc., 2149262-FUS, R-2009-2149262, 2149262-OTS, R-2009-2149262.  Supplement No. 144 to Tariff Gas-Pa. P.U.C. No. 9, filed on 1/28/10, to become effective 3/29/10, containing proposed changes in rates, rules, and regulations calculated to produce $32.3 million (6.97%) in additional annual revenues.  A number of formal complaints, protests, and petitions to intervene were filed in this case.  Staff recommends that the Commission adopt the proposed Order allowing the proposed tariff filing to be suspended by operation of law until for a period of 7 months, or through 10/29/10.

1. Peoples Natural Gas Co., 2152149-LAW, P-2010-2152149.  Petition filed on 1/11/10, requesting that the Commission authorize the Company to use Interim Refunds received from Tennessee Gas Pipeline Company to:  (1) create a program specific to the Interim Refunds that will provide non-matching Dollar Energy Fund grants to an expanded group of the Company’s low-income customers; (2) create an emergency house line repair and furnace repair/replacement program in order to restore gas heat to customers’ homes; (3) provide a portion of the Interim Refunds to small commercial customers through Peoples’ Gas Cost Rate; and (4) a declaration that the use of the Tennessee Gas Pipeline Company refunds is fully consistent with the Dominion Peoples’ statutory obligations under Sections 1307, 1317 and 1318 of the Public Utility Code, 66 Pa. C.S. §§ 1307, 1317 and 1318, and was not found to be in conflict with these obligations in any future Section 1307(f) proceedings.  Staff recommends that the Commission grant in part and deny in part Dominion Peoples’ Petition.  This matter has been postponed until Public Meeting of April 15, 2010.

OFFICE OF ADMINISTRATIVE LAW JUDGE

1. The Royal Bank of Scotland PLC, 2079864, A-2008-2079864.  Application filed on 11/8/09, seeking an electric generation supplier license to manage the delivery of competitively priced retail electric service commercial and industrial customers using all of the assets available to it through its ownership of SES, an affiliate of RBS.  Commission staff reviewed and advised that the Commission adopt ALJ Meehan’s Initial Decision approving the application.  Motion of Vice Chairman Christy that the application of the Royal Bank of Scotland be approved and that FUS prepare the necessary Opinion and Order is attached.  Vote of 4-0 with no further discussion.

1. Linda Nugent vs. PECO Energy Company, 2096243-ALJ, C-2009-2096243.  Formal Complaint filed on 3/19/09, alleging an inability to pay for electric and natural gas service and requested a payment arrangement.  PECO filed its answer on 4/27/09.  A telephonic hearing was held on 7/29/09.  Commission staff reviewed and advised that the Commission adopt Special Agent Alexander’s initial Decision dismissing the complaint.  Motion of Commissioner Gardner that the Initial Decision be modified and that the OSA prepare an Opinion and Order is attached.  Vote of 4-0 with no further discussion.

1. Lori and Peter Brickner vs. PPL Electric Utilities, 2105583-ALJ, C-2009-2105583.  Formal Complaint filed on 5/4/09, alleging PPL’s intent to terminate the RTS rate is a violation of the Public Utility Code.  PPL filed its answer on 5/26/09, denying that it was discontinuing the RTS rate but qualified the denial by stating that litigation in several cases before the Commission has resulted in a reduced benefit for 2010 and 2011.  An evidentiary hearing was held on 11/16/09.  Commission staff reviewed and advised that the Commission adopt ALJ Colwell’s Initial Decision denying the complaint insofar as it seeks to continue the existing rate reductions of the RTS rate and sustaining the complaint insofar as it seeks a finding that the actions of PPL constituted inadequate service.  This matter has been postponed until Public Meeting of April 22, 2010.

1. Lake Spangenberg Water Co., 2115743-ALJ.  R-2009-2115743.  Tariff Water-Pa. P.U.C. No. 5, filed on 6/24/09 to become effective 9/1/09.  By Order entered 8/27/09, the Commission suspended the effective date until 4/1/10 and commenced an investigation.  The Company elected to avail itself of the Commission’s mediation process and voluntarily extended the suspension date until 6/1/10.  As a result of the mediation process, a Joint Petition in Settlement was filed on 12/10/09.  Commission Staff reviewed and advised that the Commission adopt ALJ Jandebeur’s Recommended Decision approving the Settlement with one correction as to law.  Vote of 4-0 with no discussion.

CARRY-IN AGENDA

OFFICE OF SPECIAL ASSISTANTS

1. Newport Artesian Water Co., 2117550-OSA, R-2009-2117550, C-2009-2122003.  Supplement No. 67 to its tariff filed on 7/1/09, (subsequently corrected to No. 68) to establish a purchased water adjustment clause (PWAC).  By Order entered 8/27/09, the Commission suspended the proposed tariff until 3/1/10.  NAWC filed Supplement No. 71 to extend effective date until 4/15/10.  On 2/1/10, the ALJ issued a Recommended Decision which, inter alia, approved the PWAC, subject to a 3% revenue cap.  Exceptions were filed by NAWC, OCA and OTS on 2/22/10.  All 3 parties filed Reply Exceptions on 3/4/10.  Staff recommends that the Commission adopt the proposed opinion and Order which, inter alia, rejects the PWAC; reverses the Recommended Decision; denies the Exceptions filed by NAWC; and grants in part, and denies in part, the Exceptions of the OCA and OTS.  This matter has been postponed until the Public Meeting of April 14, 2010. 

COMMISSIONERS

1. Motion of Commissioner Gardner, C-0006, M-00920345.  Customer Assistance Program policy Statement Suspension and Revision.  Motion of Commissioner Gardner that the Law Bureau draft an Opinion and Order, a copy of the Opinion and Order be served on all jurisdictional natural gas distribution companies, electric distribution companies, the OCA, the OTS, the Pennsylvania Utility Law Project, Community Legal Services, inc., the Energy Association of Pennsylvania and the Pennsylvania Department of Public Welfare, a copy of the Opinion and Order be published in the Pennsylvania Bulletin and posted on the Commission’s web site, is attached.  The Dissenting Statement of Vice Chairman Christy is attached.  Vote of 3-1 with no further discussion.

OFFICE OF SPECIAL ASSISTANTS

1. Penelec and Met-Ed, 2036188-OSA, M-2008-2036188, C-2008-2041260,
   C-2008-2042292, C-2008-2042426, M-2008-2036197, C-2008-2041212, C-2008-2042277, C-2008-2042339.  Opinion and Order entered on 3/3/10, that directed, among other conditions, that Met-Ed and Penelec (the Companies) submit a new TSC Tariff or Tariff Supplement consistent with the Opinion and Order, reflecting the complete removal of marginal losses from their TSC.  On 3/18/10, the Companies filed a Petition for Stay limited to the requirement that the Companies file new TSC Tariff or Tariff Supplement, reflecting the Complete removal of marginal losses from their TSC.  On 3/23/10, the Office of Consumer Advocate and the Met-Ed Industrial Users Group and the Penelec Industrial Customer Alliance separately filed Answers to the Petition.  On 3/24/10, the Office of Small Business Advocate advised the Commission that it would not be filing an Answer to the Petition.  Staff recommends that the Commission adopt the proposed Opinion and Order which grants a Stay of the requirement that the Companies submit a new TSC Tariff or Tariff Supplement in this proceeding.  Vote of 4-0 with no discussion.

NO ANNOUNCEMENTS

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, APRIL 15, 2010 AT 10:00 A.M.

* Denotes Order