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Commonwealth of Pennsylvania House of Representatives House Cons^Er Affairs Committee

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Commonwealth of Pennsylvania House of Representatives House Cons^Er Affairs Committee COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES HOUSE CONS^ER AFFAIRS COMMITTEE IRVIS OFFICE BUILDING ROOM G-50 HARRISBURG, PENNSYLVANIA WEDNESDAY, JANUARY 13, 2 010 2:06 P.M. IN RE: PUBLIC HEARING PENNSYLVANIA PUBLIC UTILITY COMMISSION BEFORE: HONORABLE JOSEPH PRESTON, JR., CHAI^IAN HONORABLE ROBERT W. GODSHALL HONORABLE WILLIAM F. ADOLPH, JR. HONORABLE SHERYL DELOZIER HONORABLE BRIAN ELLIS HONORABLE MARC GERGELY HONORABLE SETH M. GROVE HONORABLE NICK KOTIK HONORABLE ROBERT MATZIE BRENDA S. HAMILTON REPORTING P.O. BOX 165 ELM, PENNSYLVANIA 17 521 717.627.1368 (FAX) 717.627.0319 (CONT'D) HONORABLE TINA PICKETT HONORABLE DAVE REED HONORABLE DOUGLAS REICHLEY HONORABLE TIMOTHY J. SOLOBAY ALSO PRESENT: HONORABLE BRENDAN F. BOYLE GAIL DAVIS, MAJORITY EXECUTIVE DIRECTOR JAKE SMELTZ, MINORITY EXECUTIVE DIRECTOR DAVID V. VITALE, ESQUIRE TIM SCOTT, RESEARCH ANALYST BETH ROSENTEL, RESEARCH ANALYST MARCI SANTORO, COMMITTEE LEGISLATIVE ASSISTANT CARL FITZSIMMONS, LEGISLATIVE ASSISTANT BRENDA S. HAMILTON, RPR REPORTER - NOTARY PUBLIC INDEX NAME PAGE JAMES CAWLEY, 10 CHAIRMAN, PENNSYLVANIA PUBLIC UTILITY COMMISSION P R O C E E D I N G S CHAI^IAN PRESTON: Good morning. I'd like to call the committee members to order. I'd like to wish everybody a Happy New Year. And if we would start to my right, to the audience's left, we'll start at the -- in the rear and have individuals introduce themselves. No. My right. MS. ROSENTEL: Oh. Beth Rosentel, Chairman Preston's office. MR. VITALE: David Vitale, legal counsel to the Committee. MR. SCOTT: Tim Scott, Chairman Preston's office. MR. FITZSIMMONS: Carl Fitzsimmons. I work for Bob Godshall. REPRESENTATIVE PICKETT: Tina Pickett, Bradford, Sullivan and Susquehanna Counties. REPRESENTATIVE BOYLE: Representative Brendan Boyle, Philadelphia and Montgomery Counties. REPRESENTATIVE ELLIS: Representative Brian Ellis, Butler County. REPRESENTATIVE KOTIK: Representative Nick Kotik, Allegheny County. REPRESENTATIVE MATZIE: You forgot me, Nick. You skipped me. REPRESENTATIVE KOTIK: Oh, I'm sorry. CHAI^IAN PRESTON: That's an Allegheny County thing that we have going on here. REPRESENTATIVE MATZIE: That's correct. Rob Matzie, the Beaver end of Allegheny County. REPRESENTATIVE SOLOBAY: Can you guys not fight now? Representative Tim Solobay from Washington County. MR. SMELTZ: Jake Smeltz, committee director for the Republican Caucus. REPRESENTATIVE GODSHALL: Representative Bob Godshall, Montgomery County. CHAIRMAN PRESTON: Representative Joe Preston. I work with Bob Godshall. MS. DAVIS: Gail Davis, committee director for the Democratic Caucus. REPRESENTATIVE REICHLEY: Doug Reichley, 134th District. REPRESENTATIVE GROVE: Seth Grove, 196th District, York County. CHAIRMAN PRESTON: I think, as you know, one of our members, Senator Mensch, decided to go to the higher chamber; and we have Mr. Ellis, who is the newest member appointed by the Speaker, to be -¬ to represent him -- or not to represent him, to replace him. But now he is on the committee. He is now here. And we do want to be able to welcome you. We look forward to your participation. REPRESENTATIVE ELLIS: Thank you very much, Mr. Chairman. I am extremely pleased to be working with both of you gentlemen again, having served on committees with you guys in the past. I've been looking forward to this committee meeting and am excited to be a part of the committee. REPRESENTATIVE GODSHALL: I'd just like to tell -- remind the new member that if you want to speak at any time, try to make arrangements well in advance because we have a limited time schedule, especially for our newer members. In the committee meetings, we're very concerned about that sometimes. REPRESENTATIVE ELLIS: Fair enough. CHAIRMAN PRESTON: A little over, more than a year ago, we start off with the Public Utility Commission. From there we've dealt with a wide myriad of subjects dealing with the industry and dealing with some Public Utility Commission's consumer issues across the Commonwealth of Pennsylvania. And I think that one of the things that we clearly heard from -- at that time from the new chairman of the Public Utility Commission was a sense of direction of where they had intentions of going, some of the things that they were going to need to do it effectively so that they could set a tone for the future in dealing with Pennsylvania. And -- and I'd also like to remind the members that the Public Utility Commission is a phenomenal entity and in reality, some people may point their fingers, as I say, Mr. Chairman, at you, but I won't. Because if you weren't there, then we would be handling the rate increases. And I want the members to be able to realize that, that in some sense historically the PUC was committed and -- created so we would not have to do the due diligence of raising and lowering rates and going over all the tariffs ourselves. So in a sense we are a working body and working together and I'm glad you're there. I really am. We addressed an awful lot of situations across this state. In some ways, too, we passed some legislation. We even passed a bill. We passed one bill out of here unanimously, even though it was supposed to be contentious, and then the body politic that is of the body whole seemed not to be able to move it. So, you know, that's phenomenal when you think about that. So I'd like to be able to thank the committee members. But Chairman Cawley, I think, has really set a tone. I won't forget the time that, you know, our -- my staff, my side, we sat down and met with each commission member, and I think it was anywhere from 40 minutes to an hour and a half with each -¬ with each commission member. And I remember it was very refreshing that you had a sense of direction of where you wanted to go. You also realized that you had four other people that you had to put together. I'd like to commend you, and I think that you've done that. I watched a certain level of cohesiveness that has happened, and we look forward to hearing, and I know that you're still waiting for -- oh, it's here already? Okay. So with that being said, if -- we're going to have the chairman of the commission -- of the Public Utility Commission, Commissioner Cawley. It's your time. COMMISSIONER CAWLEY: Thank you, Chairman Preston, Chairman Godshall, members of the committee. I've -- I always approach these -- these hearings with some trepidation because -- the Public Utility Commission's jurisdiction, as the Chairman has noted, is very broad and -- and we are exceedingly visible and, therefore, I always worry about having knowledge that is a mile wide and an inch deep about a lot of issues. I'm sure you run into the same thing, because your plate is infinite, and there are always times when you wish you understood issues a little better than -- than you do when you have to vote on something. Tomorrow is an example. We have some very important decisions in our regular public meeting tomorrow -- at our public meeting tomorrow and as soon as I'm done here I've got to go sit down and see what my other four colleagues have in mind and what my staff has in mind for me tomorrow. I want to commend all of you for taking the time to listen to what's on our minds. Chairman Preston was kind enough to just say to me we would like you to -- we'd like an update. He -- and he left it to me to relate to you what's on our minds and what's most pressing. I could talk about dozens of things, but here are the things which are most pressing in our minds. And let me say that I have -- I do have the pleasure of dealing with four colleagues who are a delight to work with. We are very collegial. My colleagues are very hard working. We work at this job. The jurisdiction demands it. And because of legislative actions in the last few years, we have been entrusted with implementing laws that have taken up an enormous amount of time. I can tell you that Act 129 of 2008, which added, among other things, energy efficiency and conservation standards, has maxed us out. We literally ran out of administrative law judges in order to do all the input hearings and evidentiary hearings necessary to get the -- the public's view of all of this. But we are on time. We have implemented Act 12 9 on time so far. And we have done the same with the Alternative Energy Portfolio Standards Act. But let me begin with the same topic that you've heard me talk about before, and I know many of you are already convinced, but let me reiterate this again. The most pressing issue on our minds is gas pipeline safety, particularly with the advent of the Marcellus shale play that's going on in Pennsylvania. This -- the development and the drilling in Pennsylvania -- I know you know -- is going gangbusters. In order to get that gas to market, a number of gathering lines and intrastate transmission lines have been built and are being built. We have gas safety inspectors who on a regular basis inspect Public Utility gas mains and service lines. We do not have jurisdiction over all gathering lines and intrastate pipelines. The federal government has substantial jurisdiction over these lines and use us, not only us, but other state gas inspectors around the country, to do this job for them. But there are pipelines that even the Feds don't regulate.
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