In what will likely prove to be a controversial decision, the Staff of the Pennsylvania Public Utility Commission denied the request of First Energy Solutions (FES0 to be the assignee of two default service supply contracts, currently held by BP, for two tranches of supply each with Metropolitan Edison Company and West Penn Power Company. FEs has appealed Staff's action to the Commission itself.

In an effort that is likely to fall short of the expectations of more than a few participants, the Pennsylvania Public Utility Commission (“Commission”) officially shared its vision of the next steps for encouraging more competitive electricity markets in the Commonwealth.

In a long anticipated Tentative Order, the Pennsylvania Public Utility Commission (“PUC”) finally revealed its vision for the “end state” of the retail electricity market in Pennsylvania.  The problem; many observers believe that the “cure” will kill the patient.

The Pennsylvania Public Utility Commission (“PUC”) caused quite a stir with its August 16, 2012 Order[1] that partially approved the jointly filed default service plans of the four First Energy electric utility affiliates serving in Pennsylvania.

Providing a win to competitive suppliers, the Pennsylvania Public Utility Commission (“PUC”) at its July 19 public meeting unanimously denied PPL’s request for a migration rider for default service customers.

Historically the Pennsylvania Public Utility Commission (PUC) has permitted natural gas distribution companies (NGDCs) to use flexible pricing or “flex” contract rates to attract or retain large customers who have other energy alternatives.  The reasoning has been that “half a loaf is better than none,” and that such revenues, which cover and exceed marginal cost, contribute positively to overall cost of service.  The result is a benefit to the large customer, the utility, and all customers generally. Moreover, in terms of retaining a customer, the argument in favor of the status quo is that other ratepayers benefit as they do not bear the revenue burden of stranded investment or a smaller revenue pot over which to apply costs.  The NGDCs have generally been able to recover from other ratepayers the difference between the “flex” rate and what would have otherwise been charged under an ordinary general tariff rate.

Solar developers are finding that Pennsylvania funding sources for solar development are drying up with no plans of replenishing the pool.  The dearth of available solar grants could not come at a worse time.  On May 17, 2012, the U.S. Commerce Department announced stiff tariffs on Chinese-made solar panels raising costs on most future solar projects.

The Pennsylvania Public Utility Commission (“PUC”) has clarified Gas & Hazardous Liquids Pipelines Act for Class 1 Entities.

The Pennsylvania Public Utility Commission will now decide whether migration riders will be permitted for electricity customers, at the same time it is moving forward with its Retail Markets Investigation and its notable efforts to make the electricity markets more competitive.

The Pennsylvania Public Utility Commission (“PUC”) recently extended the Fuel Cost Recovery Surcharge for household goods carriers for an additional year, until April 18, 2013, to enable carriers to continue to recover increased diesel fuel costs.

Does a natural gas company that is not currently authorized to provide service in a  territory, but with  future plans to file for such authorization,  have standing to contest another gas company’s application to provide service in that same territory?  This issue was addressed in an Initial Decision by ALJ David A. Salapa, who answered it in the negative.  Application of Leatherstocking Gas Co., L.L.C. for Approval To Supply Natural Gas Service to the Public, A-2011-2275595 (Initial Decision, issued March 20, 2012).

Shell Oil Co. chooses Pennsylvania as home for its new natural gas processing facility.

The PUC yesterday took a big first step toward creating an electricity market where most customers are served by competitive suppliers, and not by utilities, and unanimously voted to adopt recommendations for the next round of default service plans that will be filed by Pennsylvania’s electric utilities.

Two electric distribution companies, First Energy and PECO Energy Company, have filed their default service plans for service that will begin in 2013 – before the PUC has issued final guidance on what those plans should include.

Pennsylvania’s electric utilities need consider potential adverse environmental impacts only for the route proposed and the considered alternate routes when siting high voltage transmission lines, and need not consider the environmental impact of other potential engineering solutions considered to address the underlying reliability issue, said a majority of the Commonwealth Court in affirming the PUC’s approval of PPL’s Lehigh Valley Region transmission upgrade.  Board of Supervisors of Springfield Township v. Pa.PUC, ___ A.3d ___ (Pa. Cmwlth. 2012) (No. 1624 C.D. 2009, filed January 13, 2012).

Utility customers who challenge billing practices under the Unfair Trade Practices and Consumer Protection Law (UTPCPL) must bring their challenge first to the Public Utility Commission (PUC), but may pursue their claim in civil court under the UTPCPL if the PUC concludes that the utility violated its tariff, the Commonwealth Court has ruled.

The Pennsylvania Public Utility Commission held a workshop on Wednesday, January 4, 2012, to present a summary of Pennsylvania’s new Gas and Hazardous Liquids Pipelines Act (“Act 127”) and to solicit comments and suggestions from industry members and other interested parties about details of the implementation of the Act’s provisions.  The PUC indicated that it will schedule another meeting between its staff and industry representatives in early-mid February to obtain further comments and input as it finalizes its plans for the implementation of the Act.

On December 15, 2011 the PUC issued two orders designed to make Pennsylvania’s retail electricity market fully competitive. Both orders are a product of the PUC’s ongoing Investigation of Pennsylvania’s Retail Electricity Market (“RMI”), Docket No. I-2011-2237952. The first order (“RMI Final Order”) addresses the desired features of soon-to-be-filed electric utility default service plans and programs that will be implemented as part of those plans. The second order (“RMI Work Plan Order”) provides granular detail on specific components, including consumer education, accelerating of switching time frames, customer referral programs, and retail opt-in auctions.

The Pennsylvania Public Utility Commission (“PUC”) granted Laser Northeast Gathering Co.’s (“Laser”) petition to withdrawal its application to become a public utility.

By a 3-2 vote adopting  a motion by PUC Vice Chairman John F. Coleman Jr., the PUC approved Laser’s petition to withdraw its application and denied the request of certain parties to rescind its prior Orders in the case. PUC Commissioner Pamela A. Witmer and Commissioner James H. Cawley dissented not as to granting withdrawal but as to the issue of whether the prior Orders should be rescinded.

The Pennsylvania Public Utility Commission (PUC) recently announced the Agenda for their November 10, 2011, en banc hearing, which is part of the PUC’s ongoing investigation into Pennsylvania’s competitive retail electricity markets.

Following a presentation of consumer survey results, the en banc hearing will be divided into five panels addressing issues such as consumer survey results; a statewide consumer-education campaign; accelerated switching timeframes; customer referral programs; retail opt-in auction; and default service plans beyond June 2013.  The panels include a mix of consumer advocates as well as utility and supplier representatives.

The hearing is to be held:
12:30 p.m. Nov. 10, 2011
Hearing Room 1
Commonwealth Keystone Building
400 North St., Harrisburg, PA

The hearing is designed to provide insight on key issues that the PUC plans to address either before or as part of the intermediate work plan to promote competition.  The PUC has selected panel participants representing a diverse set of perspectives.  Panel participants will make a short presentation then the Commissioners will conduct a question and answer session of each panel.

Interested parties are welcome to submit written comments after the en banc hearing no later than Nov. 23, 2011. Comments along with any questions about the hearing should be directed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it . The comments will be considered as part of the process to develop an intermediate work plan.