Annual Report of the Pennsylvania Office of Consumer Advocate Fiscal Year 2008-2009 Sonny Popowsky Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA 17101-1923 (717) 783-5048 Office (717) 783-7152 Fax 800-684-6560 (PA Consumers Only) E-mail Address: [email protected] Internet: www.oca.state.pa.us Issued: November, 2009 106740 Office of Consumer Advocate Annual Report for Fiscal Year 2008-2009 Page i __________________________________________________________________________________________________ TABLE OF CONTENTS INTRODUCTION ............................................................................................................ 1 ELECTRIC ..................................................................................................................... 4 Pennsylvania ...................................................................................................... 4 FirstEnergy Companies, Metropolitan Edison, Pennsylvania Electric, Pennsylvania Power .................................................................................... 4 PECO Energy ................................................................................................ 7 Pike County Light & Power ........................................................................ 13 PPL Electric ................................................................................................. 13 West Penn Power ....................................................................................... 16 Citizens’ Electric and Wellsboro Electric ................................................. 20 UGI Electric ................................................................................................. 21 Other Energy Activities-Harrisburg Steam Works ................................... 21 Policy Cases ............................................................................................... 22 Federal .............................................................................................................. 26 FERC Electric Cases .................................................................................. 26 PJM .............................................................................................................. 29 NATURAL GAS ........................................................................................................... 32 Pennsylvania .................................................................................................... 32 Columbia Gas ............................................................................................. 32 Dominion Peoples ...................................................................................... 33 Equitable Gas .............................................................................................. 33 PECO Gas .................................................................................................... 34 Office of Consumer Advocate Annual Report for Fiscal Year 2008-2009 Page ii __________________________________________________________________________________________________ Philadelphia Gas Works ............................................................................. 34 PPL Gas ....................................................................................................... 37 UGI Gas and UGI Penn Natural Gas ........................................................... 38 Pike County Light and Power – Gas Division .......................................... 40 Purchased Gas Cost Proceedings ............................................................ 41 Miscellaneous Gas Cases and Issues ...................................................... 54 Federal .............................................................................................................. 57 FERC Gas Cases ........................................................................................ 57 TELECOMMUNICATIONS .......................................................................................... 60 Pennsylvania .................................................................................................... 60 Merger Proceedings ................................................................................... 60 Access Charge Proceedings ..................................................................... 62 Chapter 30 (Act 183) Related Proceedings .............................................. 65 Additional Telecom Cases ......................................................................... 71 Rulemakings ............................................................................................... 73 Federal .............................................................................................................. 75 FCC Proceedings ....................................................................................... 75 WATER AND WASTEWATER .................................................................................... 80 Base Rate Proceedings ............................................................................. 80 Applications, Petitions, and Investigations ............................................. 92 CONSUMER COMPLAINT PROCEEDINGS ............................................................. 100 Introduction ............................................................................................... 100 Telephone – Service Quality Cases ......................................................... 100 Office of Consumer Advocate Annual Report for Fiscal Year 2008-2009 Page iii __________________________________________________________________________________________________ Water and Wastewater – Service Quality and Main Extension Cases . 101 CONSUMER AND LEGISLATIVE OUTREACH ........................................................ 107 Testimony, Presentations, and Speaking Engagements ...................... 107 OCA CALL CENTER ................................................................................................. 117 SERVICE TO PENNSYLVANIA AND THE NATION ................................................. 122 Participation in NASUCA and in Other Consumer Interest Organizations ........................................................................................ 122 OCA STAFF ............................................................................................................... 124 INTRODUCTION The Office of Consumer Advocate (OCA) has served Pennsylvania utility consumers since its establishment by the General Assembly in 1976. 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 also represents the interests of Pennsylvania consumers in non-governmental organizations, such as the PJM Interconnection. The OCA also seeks to protect and educate consumers as portions of the utility industry move from a fully regulated to a more competitive status. The OCA is a statutorily independent office, administratively included within the Office of Attorney General. On June 29, 1990, the Senate of Pennsylvania confirmed the appointment of Sonny Popowsky as Consumer Advocate, and he has continued to serve in the position since that time. The OCA continues to provide vigorous professional representation for Pennsylvania consumers before both state and federal regulatory agencies and courts. The OCA participates before the PUC in all major rate cases, many small rate cases, and many non-rate proceedings that have a significant impact on consumers. 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 also participates actively on policy-making committees of non-government organizations such as the PJM Interconnection, whose decisions have a critical impact on electric prices and service in Pennsylvania. The OCA also seeks to ensure that consumers are protected and informed regarding changes in their utility service that can be either beneficial or harmful. In recent years, the OCA has continued to work on proceedings resulting from several legislative changes impacting utility consumers, such as rulemakings and implementation orders regarding electric and natural gas restructuring, and regulatory requirements for basic and advanced telecommunications services. In the electric industry, OCA has sought to ensure that customers continue to be protected even after rate caps expire through the development of stable, reasonably priced "default” service. Pursuant to Act 129 of 2008, the OCA has sought to ensure that Pennsylvania electric utilities provide reliable generation service to their customers at the lowest cost over time. The OCA also has been active in Act 129 proceedings to ensure that the energy efficiency, demand response, and advanced metering programs developed by Pennsylvania electric utilities provide the greatest benefit to consumers at the lowest reasonable cost. The OCA also has continued to support efforts to protect Pennsylvania consumers through its education activities and through various rulemaking and policy proceedings. Since much of the decision-making that affects Pennsylvania electric consumers now occurs at the federal and regional level, the OCA continued its expanded participation in key electric proceedings before the FERC and in the committees of the PJM Interconnection. Office of Consumer