Pennsylvania Staff: Collaborative to Remove Utility from Default Service Role Has "Irreparably Stalled"; Seeks PUC Action

A collaborative examining the potential to remove Philadelphia Gas Works from the default supplier role has "irreparably stalled," said the Pennsylvania PUC's Bureau of Investigation and Enforcement, as I&E Staff sought a PUC order ceasing informal discussions in favor of hearings.

The collaborative was developed to address retail suppliers' proposals to remove PGW from the default supplier role. In 2008, PGW filed for emergency rate relief due to its borrowing needs. Interstate Gas Supply and Dominion Retail noted that PGW's largest single borrowing need is the need to borrow $600 to $700 million a year to buy gas for its customers, and suggested eliminating this need by transitioning customers to an alternative form of default service (see prior story for background)

Although the PUC previously directed retail suppliers, in April 2011, to file a formal proposal for an alternative form of default service, the Commission has granted retail suppliers multiple extensions for filing such a plan, to allow for additional settlement discussions.

The most recent request for additional time from retail suppliers prompted a response from PUC Staff finding that the process has "irreparably stalled."

"I&E opines that the matter has stalled to the point where the only reasonable resolution can be obtained by establishing a procedural schedule to ensure the much needed progress of this proceeding ... The latest request for additional time will delay the resolution of the matter until approximately two (2) years after the Commission's acknowledgement that the collaborative had stalled," Staff said.

"I&E maintains that the latest request for additional time unnecessarily prolongs this proceeding as no reportable progress has been made since the last request. I&E has not been part of, nor is it aware of, any 'negotiations on a continuous basis' as represented in the NGS Parties letter. In fact, no contact has been made with this Bureau leading I&E to maintain that the collaborative is irreparably stalled with no prospects for resolution of the disputed matter. As such, it is only appropriate that the matter be scheduled for Evidentiary Hearings. In order to effectuate this, I&E respectfully requests the scheduling of a Prehearing Conference in order to establish a full litigation schedule allowing for the development of an evidentiary record," Staff said

Docket: R-2008-2073938