Annual Report of the Pennsylvania Office of Consumer Advocate Fiscal Year 2014-2015 Tanya J. McCloskey Acting Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA 17101-1923 (717) 783-5048 Office (717) 783-7152 Fax 800-684-6560 E-mail Address: [email protected] Internet: www.oca.state.pa.us Issued: November 2015 210808 Office of Consumer Advocate Annual Report for Fiscal Year 2014-2015 Page i __________________________________________________________________________________________________ TABLE OF CONTENTS INTRODUCTION ............................................................................................................ 1 ELECTRIC ..................................................................................................................... 5 Pennsylvania ...................................................................................................... 5 Duquesne Light ....................................................................................... 5 FirstEnergy Companies: Metropolitan Edison, Pennsylvania Electric, Pennsylvania Power, West Penn Power ................................ 7 PECO Energy ........................................................................................ 14 Pike County Light & Power .................................................................. 17 PPL Electric ........................................................................................... 18 Citizens’ Electric and Wellsboro Electric ............................................ 25 Electric Generation Suppliers ............................................................... 27 Generic Policy Cases ........................................................................... 37 Federal and Regional ....................................................................................... 40 FERC Electric Cases ............................................................................. 40 PJM ........................................................................................................ 42 NATURAL GAS ........................................................................................................... 44 Pennsylvania .................................................................................................... 44 Columbia Gas ........................................................................................ 44 PECO Gas ............................................................................................... 47 Peoples Natural Gas, Peoples Equitable, and Peoples TWP ............. 48 Philadelphia Gas Works ....................................................................... 51 Pike County ........................................................................................... 53 Office of Consumer Advocate Annual Report for Fiscal Year 2014-2015 Page ii __________________________________________________________________________________________________ UGI Companies: UGI Gas, UGI Central Penn Gas, UGI Penn Natural Gas .......................................................................................................... 53 Small Gas Companies .......................................................................... 56 Other Gas Cases ................................................................................... 56 Rulemakings and Policy Proceedings ................................................. 59 Purchased Gas Cost Cases ................................................................. 62 2015 Cases .................................................................................. 63 2014 Cases .................................................................................. 67 Federal .............................................................................................................. 70 FERC Gas Cases ................................................................................... 70 TELECOMMUNICATIONS .......................................................................................... 73 Pennsylvania .................................................................................................... 73 Chapter 30 (Act 183) Related Proceedings ......................................... 73 Other Proceedings ................................................................................ 74 Rulemakings .......................................................................................... 77 Federal .............................................................................................................. 77 FCC Proceedings .................................................................................. 77 WATER AND WASTEWATER .................................................................................... 81 Base Rate Proceedings ................................................................................... 81 Applications, Petitions, and Investigations ................................................... 97 CONSUMER COMPLAINT PROCEEDINGS ............................................................. 104 Electric Cases ................................................................................................. 104 CONSUMER AND LEGISLATIVE OUTREACH ........................................................ 106 Testimony, Presentations, and Speaking Engagements ........................... 106 Office of Consumer Advocate Annual Report for Fiscal Year 2014-2015 Page iii __________________________________________________________________________________________________ OCA CALL CENTER ................................................................................................. 112 SERVICE TO PENNSYLVANIA AND THE NATION ................................................. 114 Participation in NASUCA and in Other Consumer Interest Organizations .................................................................................... 114 OCA STAFF ............................................................................................................... 116 Office of Consumer Advocate Annual Report for Fiscal Year 2014-2015 Page 1 __________________________________________________________________________________________________ INTRODUCTION The Office of Consumer Advocate (OCA) has served Pennsylvania utility consumers since its establishment by the General Assembly in 1976. The OCA is a statutorily independent office, administratively included within the Office of Attorney General. The OCA represents Pennsylvania utility consumers in matters before the Pennsylvania Public Utility Commission (PUC) and other state and federal regulatory agencies and courts. The OCA participates before the PUC in all major rate cases, most small rate cases, and many non-rate proceedings that have a significant impact on consumers. The OCA also participates in matters before the Federal Energy Regulatory Commission (FERC) and the Federal Communications Commission (FCC) that have a substantial impact on Pennsylvania consumers. The OCA participates actively on policy-making committees of non-government organizations such as the PJM Regional Transmission Operator (RTO), whose decisions have a critical impact on electric prices and service in Pennsylvania. Through our consumer education outreach, website, and toll-free call center, the OCA also seeks to ensure that consumers are informed regarding changes in their utility service. In recent years, the OCA has continued to work on proceedings resulting from major state and federal legislative changes impacting utility consumers, such as rulemakings and implementation orders regarding electric and natural gas restructuring, as well as regulatory requirements for basic and advanced telecommunications services. In Fiscal Year 2014-2015, the OCA participated in ongoing proceedings involving the implementation of Act 11 of 2012, which includes, among other things, a Distribution System Improvement Charge (DSIC) for electric, natural gas, water, and wastewater utilities, and a fully projected future test year. Many filings were made to establish DSICs, and numerous rate filings included the use of a fully projected future test year. The OCA serves as the voice of Pennsylvania utility consumers as the utility industries continue to evolve from a fully regulated to a partially regulated, partially competitive structure. The OCA has evolved as well in order to ensure that Pennsylvania consumers receive the benefits – and avoid the potential harms – that these industry changes bring about. Office of Consumer Advocate Annual Report for Fiscal Year 2014-2015 Page 2 __________________________________________________________________________________________________ In the electric industry, the OCA continued its complaints against a number of electric generation suppliers regarding the variable rates charged to customers during early 2014. The OCA also actively participated in a number of rulemakings before the PUC to address proposed changes in disclosure requirements, and switching time frames. Also during 2014, the OCA participated in company-specific petitions related to the new rules. In addition, the OCA has sought to ensure that customers continue to be protected through the development of stable, reasonably priced "default” service. Pursuant to Act 129, the OCA continues to participate in all default service filings of electric distribution companies to ensure that those companies provide reliable default generation service to their customers at the least cost over time. The OCA also continues