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Highlights: PA PUC Public Session of August 2, 2012

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 August 2, 2012, 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 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 August 30 at 10:00 a.m.  The minutes of the Public Meeting of June 21, 2012, were, by a vote of 5-0, approved without modification.

MAIN AGENDA

CASES OF SPECIAL INTEREST

  • Met-Ed, Penelec, Penn Power & West Penn, P-2011-3650-OSA, P-2011-2273650, P-2011-2273668, P-2011-2273669, P-2011-2273670.  Joint Petition filed on 1/17/11, requesting that the Commission approve their DSPs for the period from 6/1/13 to 5/31/15. Following an on-the-record proceeding, a Recommended Decision by ALJ Barnes was issued on 6/15/12. Exceptions and/or Reply Exceptions were filed by the Companies; Bureau of I&E; the OCA; the OSBA; Coalition for Affordable Utility Service and Energy Efficiency in Pennsylvania; Constellation Energy Commodities Group, Inc. and Constellation NewEnergy, Inc.; Dominion Retail, Inc.; Exelon Generating Company, LLC and Exelon Generating Company; First Energy Solutions Corporation; Met-Ed Industrial Users Group, Penelec Industrial Customer Alliance, Penn Power Users Group and West Penn Power Industrial Intervenors; Pennsylvania State University; Retail Energy Supply Association; and Washington Gas Energy Services, Inc. RECOMMENDATION:  That the Commission conduct a BINDING POLL of the outstanding issues litigated in this proceeding.  The Binding Poll is attached. 

Binding Pole Issues and Results

  1. WPP Consolidation of Service Types 20 & 30.  Vote 4-1 for the ALJ recommendation.
  1. Terms (Length) and Mix of Residential & Commercial Default Service Procurement Contracts.  Vote 4-1 for the RESA proposal for residential and the OSBA proposal for Small C&I.
  1. Hold Back for the Residential Opt-In Auction.  Vote 5-0 for ALJ recommendation.
  1. Supplier Load Caps.  Vote 5-0 for the RESA recommendation.
  1. WPP Industrial Hourly-Priced Default service—Fixed Adder for Suppliers.  Vote 5-0 for the ALJ recommendation.
  1. WPP Industrial Hourly-Priced Default Service Procurement and Default Service Rider—Conversion from kW to kWh Capacity Pricing (The issues related to procurement and the DS Rider are being polled as a single issue.)  Vote 4-1 for the ALJ recommendation.
  1. WPP Industrial Hourly-Priced Default Service—Conversion from Day-Ahead to Real Time Pricing.  Vote 4-1 for the Companies’ proposal.
  1. Modification of Solar Photovoltaic Alternate Energy Credits (SPAECs).  Vote 4-1 for the Industrials’ proposal.
  1. Market Adjustment Charge (MAC).  Commissioner Witmer’s Statement is attached.  Vote 5-0 for the ALJ recommendation.
  1. Recovery of Non-Market Based (NMB) Transmission Charge through the Default Service Support (DSS) Rider—Allocation of Costs to Large C&I Customers.  Vote 4-1 for the Industrials’ proposal.
  1. Recovery of NMB Transmission Charge through the DSS Rider—Collection of Generation Deactivation and Unaccounted for Energy (UFE) Costs. Commissioner Gardner’s Dissenting Statement is attached.  Vote 4-1 for the Industrials’ proposal. 
  1. Recovery of NMB Transmission Charge through the DSS Rider—Carve-Out of Network Integration Transmission Service (NITS) Costs. Commissioner Gardner’s Dissenting Statement is attached.  Vote 4-1 for the Industrials’ proposal.
  1. Economic Load Response (ELR) Charges.  Vote 4-1 for the ALJ recommendation.
  1. Residential Time-of-Use (TOU) Default Service Rider.  Commissioner Witmer’s Motion is attached, which affects Issue No. 34 as well.  Vote 5-0.
  1. Reconciliation of PTC Rider.  Vote 5-0 for the ALJ recommendation.
  1. Potential Need for a Mitgration Rider.  Vote 5-0 for the RESA proposal.
  1. Small C&I Customer Participation in the Market Enhancement Programs.  Vote 5-0 for the RESA proposal.
  1. Shopping Customer Participation in the Market Enhancement Programs.  Vote 5-0 for the RESA proposal.
  1. Timing of Retail Opt-in (ROI) Customer Solicitation and EGS Auction (R.D. at 97-98).  Commissioner Witmer’s Motion is attached, which also affects Issues Nos. 22, 27, 28, and 33.  Vote 5-0 for the ALJ recommendation. 
  1. ROI Program Customer Participation Cap. Vote 5-0 for the ALJ recommendation. 
  2. ROI Supplier Participation Load Cap.  Vote 5-0 for the ALJ recommendation.
  1. ROI Discount from the PTC.  See Motion for Issue No. 19, which is attached.
  1. Bonus Payments.  Vote 5-0 for the RESA proposal.
  1. ROI Aggregation Agreement, Customer Contracts and Disclosure Statements.  Vote 5-0 for the RESA proposal.
  1. Customer Testing Prior to ROI Auctions.  Vote 5-0 for the ALJ recommendation.
  1. Post-ROI Program Rates.  Vote 5-0 for the ALJ recommendation.
  1. Structure of ROI Auction.  See Motion for Issue No. 19, which is attached.
  1. Recovery of Market Enhancement Program Costs.  See Motion for Issue No. 19, which is attached.
  1. Customers Solicited for Customer Referral Program—Customers with High Bill Complaints.  Vote 5-0 for the RESA proposal.
  1. CAP Customer Participation in the Market Enhancement Programs. Vote 5-0 for the Companies’ proposal.
  1. Term of the Standard Offer Product and Length of the 7% Discount.  Vote 5‑0 for the ALJ recommendation.
  1. Sequencing the ROI Auction Program and the Standard Offer Referral Program.  Vote 5-0 for the FES proposal.
  1. Modifications to the New/Moving Customer Referral Program.  See Motion for Issue No. 19, which is attached.
  1. EGS Access to Customer Data.  See Motion for Issue No. 14, which is attached.

BUREAU OF TECHNICAL UTILITY SERVICES (Transportation)

  • Ultra Transportation Inc., Application for the right to begin to transport as a common carrier by motor vehicle, persons in paratransit service.  RECOMMENDATION:  That the Commission adopt the proposed Order approving the application.  Vote 5-0.

DIRECTOR OF ADMINISTRATION

  • Assessments For 2012 - Act 127, 2315801-BAS.  Assessment upon Pipeline Operators applicable under Act 127 of 2011 - $439,000 Billing for Fiscal Year 7/1/12 to 6/30/13.  RECOMMENDATION:  That the Commission approve the Assessments Section computation in accordance with Act 127 of 2011 for the amount of the Assessment for the Fiscal Year 7/1/12 to 6/30/13 on each applicable pipeline operator.  Oral Statement by Vice Chairman Coleman which raised concerns with the assessment amount.  Vote 5-0.

OFFICE OF SPECIAL ASSISTANTS

  • All matters approved as submitted.

BUREAU OF TECHNICAL UTILITY SERVICES

  • IDT Energy Inc., 2119279-FUS, A-2009-2119279.  Amendment Application filed on 5/15/12, for approval to offer, render, furnish, or supply natural gas supply services to residential, small commercial (less than 6,000 MCF annually), and large commercial (6,000 MCF or more annually) customers in the additional service territories of Columbia Gas and UGI Utilities, within PA, as a supplier of natural gas services and a broker/marketer engaged in the business of supplying natural gas services. RECOMMENDATION:  That the Commission adopt the proposed Order which approves the application amendment.  Matter has been withdrawn by the Bureau of Technical Utility Services.

LAW BUREAU

  • Act 129 Energy Efficiency Program - Phase 2, 2289411-LAW, M-2012-2289411, M-2008-2069887.  The Commission has been charged by the PA General Assembly with establishing an energy efficiency and conservation program (EE&C Program) that requires each electric distribution company (EDC) with at least 100,000 customers to adopt a plan to reduce energy demand and consumption within its service territory.  The Commission is also charged with the responsibility to evaluate the costs and benefits of the EE&C Program by 11/30/13, and every five years thereafter.  The Commission must adopt additional incremental reductions in consumption if the exceed its costs. With this Implementation Order, the Commission adopts additional incremental reductions in consumption, and we establish the standards each plan must meet and provide guidance on the procedures to be followed for submittal, review and approval of all aspects of EE&C plans for Phase II of the program.  RECOMMENDATION:  That the Commission adopt the proposed Implementation Order. Commissioner Gardner’s and Commissioner Cawley’s Joint Partial Dissenting Statement is attached.  Commissioner Cawley’s Partial Dissenting Statement is attached.  Vote 5-0.
  • Distribution System Improvement Charge, 2293611-LAW, M-2012-2293611.  The matter has been postponed to the 07/19/12 Public Meeting.  Act 11 of 2012, Act 11 of 2012, which was enacted on 2/14/12, amended Chapters 3, 13, and 33 of the Title 66 of the Public Utility Code. The changes to Chapters 3 and 13 allow jurisdictional utilities to make rate case claims based on a fully projected future test year, allow wastewater utilities to allocate a portion of their revenue requirement to the combined wastewater and water utility customer base, and allows water and wastewater utilities, EDCs and NGDCs or a city natural gas distribution operation to petition for a DSIC. The changes to Chapter 33 increase the civil penalties for gas pipeline violations. By Order entered 5/10/12, the Commission issued a Tentative Implementation Order requesting procedures and guidelines to carry out the ratemaking provisions of Act 11 in Chapters 3 and 13.  RECOMMENDATION:  That the Commission adopt the Final Implementation Order.  Statement by Chairman Powelson’s Statement, with which Commissioner Witmer associates, is attached.  Commissioner Gardner’s Dissenting Statement is attached.  Vote 5-0.

OFFICE OF ADMINISTRATIVE LAW JUDGE

  • L. Richard Adamovich vs. West Penn Power, 2256848-ALJ, C-2011-2256848, C-2011-2247926.  The matter was postponed from the 07/19/12 Public Meeting.  Formal Complaints (two separate) were filed 6/9/11 and 8/8/11, alleging a power outage the morning of 5/26/11 caused damage to several appliances. Answers were filed 7/11/11 and 8/31/11, respectfully. By Order dated 10/27/11, the complaints were consolidated.  Hearing held on 2/15/12.  COMMISSION REVIEW:  That the Commission adopt ALJ Long’s Initial Decision dismissing the complaints.  Commissioner Gardner’s Statement is attached.  Vote 5-0.

NO ANNOUNCEMENTS

NEXT PUBLIC MEETING IS TENTATIVELY SCHEDULED FOR THURSDAY, August 30, 2012 AT 10:00 A.M.

* Denotes Order

 

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