Pennsylvania Public Utility Commission s28

BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

Pennsylvania Public Utility Commission : R-2017-2586783 Office of Consumer Advocate : C-2017-2592092 Office of Small Business Advocate : C-2017-2593497 Philadelphia Industrial & Commercial : Gas Users Group : C-2017-2595147 William Dingfelder : C-2017-2593903 : v. : : Philadelphia Gas Works :

PREHEARING ORDER #1

On February 28, 2017, Philadelphia Gas Works (PGW) filed Supplement No. 100 to PGW’s Gas Service Tariff – PA. P.U.C. No. 2 (Supplement No. 100) to become effective April 28, 2017, seeking a general rate increase calculated to produce $70 million (11.6%) in additional annual revenues. PGW also filed a Petition for Waiver seeking waiver of the application of the statutory definition of the fully projected future test year (FPFTY) so as to permit PGW to use a FPFTY beginning on September 1, 2017 in this proceeding.

On March 6, 2017, Carrie B. Wright, Esq., entered a Notice of Appearance on behalf of the Commission’s Bureau of Investigation and Enforcement (BI&E).

On March 6, 2017, the Office of Consumer Advocate (OCA) filed a Public Statement, a Notice of Appearance on behalf of Kristine E. Marsilio, Esq., Harrison W. Breitman, Esq., Darryl A. Lawrence, Esq., and Christy M. Appleby and a formal Complaint. The Complaint was docketed at C-2017-2592092. On March 13, 2017, the Office of Small Business Advocate (OSBA) filed a Verification, Public Statement, a Notice of Appearance on behalf of Sharon E. Webb, Esq., and a formal Complaint. The Complaint was docketed at C-2017-2593497.

On March 16, 2017, William Dingfelder (“Mr. Dingfelder” or “Complainant”) filed a formal Complaint. The Complaint was docketed at C-2017-2593903.

By Order entered March 16, 2017, the Pennsylvania Public Utility Commission (Commission) instituted an investigation into the lawfulness, justness, and reasonableness of the proposed rate increase. Pursuant to Section 1308(d) of the Public Utility Code, 66 Pa. C.S.A. § 1308(d), Supplement No. 100 to Philadelphia Gas Works’ Gas Service Tariff – PA. P.U.C. No. 2 was suspended by operation of law until November 28, 2017, unless permitted by Commission Order to become effective at an earlier date. In addition, the Commission ordered that the investigation include consideration of the lawfulness, justness and reasonableness of the respondent’s existing rates, rules, and regulations. The matter was assigned to the Office of Administrative Law Judge for the prompt scheduling of hearings culminating in the issuance of a Recommended Decision.

On March 17, 2017, the Retail Energy Supply Association filed a Petition to Intervene in this proceeding.

In accordance with the Commission’s March 16, 2017, Order, the matter was assigned to Deputy Chief Administrative Law Judge Christopher P. Pell and Administrative Law Judge Marta Guhl.

On March 22, 2017, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA), through its counsel, filed a Petition to Intervene in this proceeding.

On March 23, 2017, the Philadelphia Industrial and Commercial Gas Users Group filed a formal Complaint. The Complaint was docketed at C-2017-2595147.

2 On March 24, 2017, the Tenant Union Representative Network and Action Alliance of Senior Citizens of Greater Philadelphia (TURN et al.) filed a Petition to Intervene in this proceeding.

In compliance with the Commission’s March 16, 2017 Order, PGW filed Supplement No. 103 to Gas Service Tariff – Pa P.U.C. No. 2 on March 27, 2017, suspending the effectiveness of rates proposed in Supplement No. 100 to Tariff Pa.P.U.C. No. 2 until November 28, 2017.1

In accordance with a Prehearing Conference Order dated March 17, 2017, PGW, I&E, OCA, OSBA, RESA, CAUSE-PA, PICGUG and TURN et al. submitted prehearing memoranda to the presiding officers.

A call-in telephonic prehearing conference was held on March 29, 2017. Counsel for PGW, I&E, OCA, OSBA, RESA, CAUSE-PA, PICGUG and TURN et al. participated.

This order sets forth the procedural matters addressed at the prehearing conference.

THERERFORE,

IT IS ORDERED:

1. That the Petition of Philadelphia Gas Works for Waiver of Statutory Definition of Fully Projected Future Test Year, being unopposed, is granted.

1 PGW filed a corrected version of Proposed Tariff Supplement No. 103 to its Gas Service Tariff – Pa. P.U.C. No. 2 with the Secretary on March 29, 2017.

3 2. That PGW is permitted to use a fully projected future test year beginning on September 1, 2017 and ending on August 31, 2018.

3. That the Petition to Intervene of RESA, being unopposed, is granted.

4. That PGW must file its written objections to the Petitions to Intervene of CAUSE-PA and TURN et al. by the close of business on Friday, March 31, 2017.

5. That CAUSE-PA and TURN et al. must file their responses to PGW’s objections to their respective Petitions to Intervene by the close of business on Wednesday, April 5, 2017.

6. That the parties of record as of this date are PGW, I&E, OCA, OSBA, RESA, and PICGUG.

7. That pursuant to 52 Pa.Code § 1.55, each party shall be limited to one entry on the service list, although there can be more than one name listed. Service on respondent PGW shall be made on Mr. Clearfield, Ms. O’Dell and Mr. Pierce; service on I&E shall be made on Ms. Wright and Ms. McLain; service on OCA shall be made on Ms. Appleby, Mr. Lawrence, Mr. Breitman and Ms. Marsilio; service on OSBA shall be made on Ms. Webb; service on RESA shall be made on Mr. Stewart; and service on PICGUG shall be made on Mr. Bakare, Ms. Mincavage, and Ms. Hylander.

8. That the parties may arrange service amongst themselves as they agree.

9. That parties may serve documents electronically by 4:30 p.m. to meet any required due date, with hard copy to follow by regular first class mail, with the provision that large documents not able to be transmitted electronically may be hand-delivered to the parties located in Harrisburg on the due date and received the next business day by parties located outside Harrisburg.

4 10. That our informal e-mail distribution list is as follows. Any changes or corrections should be communicated to us, via e-mail as soon as possible. Please include our legal assistant, Ms. Kathy Niesborella on anything you send to us.

Party Counsel e-mail

PGW Daniel Clearfield [email protected] PGW Deanne M. O’Dell [email protected] PGW Brandon J. Pierce [email protected]

I&E Carrie B. Wright [email protected] I&E Erika L. McLain [email protected]

OCA Christy M. Appleby [email protected] OCA Darryl A. Lawrence [email protected] OCA Kristine E. Marsilio [email protected] OCA Harrison W. Breitman [email protected]

OSBA Sharon E. Webb [email protected]

RESA Todd S. Stewart [email protected]

PICGUG Charis Mincavage [email protected] PICGUG Adeolu Bakare [email protected] PICGUG Alessandra L. Hylander [email protected]

ALJ ALJ Pell [email protected] ALJ ALJ Guhl [email protected] ALJ Kathy Niesborella [email protected]

11. That discovery shall be conducted according to the Commission’s rules and regulations at 52 Pa.Code § 5.321 et seq, subject to the following modifications:

a. Prior to the filing of Rebuttal Testimony, answers to written interrogatories shall be served in-hand within ten (10) calendar days of service;

5 b. Prior to the filing of Rebuttal Testimony, responses to requests for document production and entry for inspection or other purposes must be served in-hand within ten (10) calendar days; c. Prior to the filing of Rebuttal Testimony, requests for admissions will be deemed admitted unless answered within ten (10) calendar days or objected to within five (5) calendar days of service; d. After the filing of Rebuttal Testimony, the ten (10) calendar day requirements specified in (a) through (c), above, shall be modified to seven (7) calendar days; e. Objections to interrogatories shall be communicated orally within three (3) calendar days of service of the interrogatories; unresolved objections shall be served to the ALJs in writing within five (5) days of service of the interrogatories. Objections to interrogatories served on a Friday shall be communicated orally within four (4) calendar days, and unresolved objections shall be served to the ALJs in writing within six (6) days of service of the interrogatories; f. Motions to dismiss objections and/or direct the answering of interrogatories shall be filed within three (3) calendar days of service of the written objections; g. Answers to motions to dismiss objections and/or direct the answering of interrogatories shall be filed within three (3) calendar days of service of such motions; and h. Discovery and discovery-related pleadings propounded after 12:00 noon on a Friday or after 12:00 noon on any business day immediately preceding a state holiday will be deemed served on the next business day for purposes of determining the due date of the responses and responsive pleadings.

6 12. That the parties are required to attempt to resolve discovery disputes among themselves prior to seeking a resolution from the Administrative Law Judges.

13. That discovery disputes may be resolved via telephone conference with the Administrative Law Judges without the need for filing a motion to compel, although the propounding party may choose to file a formal motion to compel.

14. That the following schedule is adopted:

Prehearing conference March 29, 2017 Public Input Hearings May 9-10, 2017 Non-Company Direct May 16, 2017 Rebuttal Testimony June 9, 2017 Surrebuttal Testimony June 22, 2017 Hearings/Rejoinder June 28-30, 2017 Close of Record July 5, 2017 Main Briefs July 21, 2017 Reply Briefs August 4, 2017 Public Meeting November 8, 2017

15. That the June 28-30, 2017 hearings will be held in Philadelphia. The initial day will commence at 10:00 a.m.; subsequent days may start at 9:00 a.m. Parties will complete the daily witness listing and cross-examination grid as directed.

16. That any motions with respect to, or objections to, written testimony must be presented in writing no later than three days prior to the day that the witness sponsoring that testimony is scheduled to testify. Answers to such motions or objections may be filed within three days or sooner if circumstances warrant. Oral motions, other than for good cause, shall not be accepted.

17. In accordance with the schedule set forth above, briefs must be filed with the Secretary of the Commission and received in-hand by all parties no later than 4:30 p.m. on the date listed.

7 18. That an original copy of all briefs must be filed with the Secretary, in accordance with 52 Pa.Code § 5.502(b), and one copy served on each of the presiding officers and the other parties no later than 4:30 p.m. on the dates listed. Service can be made electronically, with a hard-copy received in hand on the next business day.2 52 Pa.Code § 5.501(e) requires that “[b]riefs shall be as concise as possible.”

19. That all briefs shall comply with the requirements of 52 Pa.Code §§ 5.501 and 5.502, and in addition to the mandatory contents set forth in 52 Pa.Code § 5.501(a), all main briefs, regardless of length, must contain:

A. A table of contents; B. A history of the proceeding; C. A discussion; D. Proposed findings of fact (with record citations to transcript pages or exhibits where supporting evidence appears); E. Proposed conclusions of law (with citations to supporting statutes, regulations or relevant case law); and F. Proposed ordering paragraphs specifically identifying the relief sought.

20. That all briefs are to comply with the “Special Instructions for Briefs and Exceptions in Major General Rate Increase Proceedings” attached as Appendix A to this Order.

21. That the parties are to confer amongst themselves in an attempt to resolve all or some of the issues associated with this proceeding. The parties are reminded it is the Commission’s policy to encourage settlements. 52 Pa.Code §5.231(a). The parties are strongly urged to seriously explore this possibility. If a settlement is reached, a joint settlement petition executed by representatives of all parties to be bound thereby, together with statements in support of settlement by all signatory parties, must be filed with the Secretary for the Commission and served on the presiding officer.

2 Parties are directed to e-mail us a copy of their as-filed briefs in a WORD-formatted document in addition to ADOBE or other compatible PDF format. The format of the briefs served electronically on the parties may be as requested by the parties.

8 22. That the parties shall comply with the procedural rules and regulations discussed herein.

Date: March 30, 2017 ______Christopher P. Pell Deputy Chief Administrative Law Judge

______Marta Guhl Administrative Law Judge

9 Pennsylvania Public Utility Commission v. Philadelphia Gas Works Docket Number R-2017-2586783

SERVICE LIST

Daniel Clearfield, Esquire, Carl Shultz, Esquire Eckert Seamans Cherin & Mellot, LLC 213 Market Street, 8th Floor Harrisburg, PA 17101 [email protected] [email protected]

Brandon J. Pierce, Esquire Philadelphia Gas Works 800 W. Montgomery Ave. Philadelphia, PA 19122 [email protected]

Carrie B. Wright, Esquire Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Post Office Box 3265 Harrisburg, PA 17105-3265 [email protected]

Christy M. Appleby, Esquire Darryl A. Lawrence, Esquire Kristine E. Marsilio, Esquire Harrison W. Breitman, Esquire Office of Consumer Advocate 555 Walnut Street, 5th Floor, Forum Place Harrisburg, PA 17101-1923 [email protected] (C-2017-2592092)

Sharon E. Webb, Esquire Office of Small Business Advocate 300 North Second Street - Suite 202 Harrisburg, PA 17101 [email protected] (C-2017-2593497) Todd S. Stewart, Esquire Hawke McKeon & Sniscak LLP 100 North Tenth Street Harrisburg, PA 17101 [email protected] Counsel for the Retail Energy Supply Association

Robert W. Ballenger, Esquire Josie B. H. Pickens, Esquire Jennifer Collins, Esquire Community Legal Services, Inc. 1424 Chestnut Street Philadelphia, PA 19102 [email protected] [email protected] [email protected] Counsel for Tenant Union Representative Network and Action Alliance of Senior Citizens of Greater Philadelphia

Patrick M. Cicero, Esquire Elizabeth R. Marx, Esquire Pennsylvania Utility Law Project 118 Locust Street Harrisburg, PA 17101 [email protected] [email protected] Counsel for Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania

William Dingfelder 645 W. Sedgwick Street Philadelphia, PA 19119-3442 [email protected] (C-2017-2593903)