Paul ssell ounsel ppl - PUC · 2015. 8. 1. · Paul Associate Gen ssell ounsel PPL Two North Ninth Street Allentown, PA 18101-1179 Tel. 610.774.4254 Fax 610.774.6726 [email protected]

Paul Associate Gen

s s e l l ounsel

PPL Two North Ninth Street

Allentown, PA 18101-1179 Tel. 610.774.4254 Fax 610.774.6726

[email protected]

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ppl O B - -

June 21 , 2004

F E D E R A L E X P R E S S

James J. McNulty, Esquire Secretary Pennsylvania Public Utility Commiss* Commonwealth Keystone Building 400 North Street Harrisburg, Pennsylvania 17120

n RECEIVE J U N 2 1

^Û/ IL ITYCO^MISSJCW - SECRETARY'S BUREAU

Re: PPL Electric Utilities Corporation Supplement No. 38 to Tariff -

Electric Pa. P.U.C. No. 201 Docket No. R-00049255

Dear Mr. McNulty:

Attached for filing, pursuant to the Commission's regulations, 52 Pa. Code § 5.342(d), is a Certificate of Service identifying responses to interrogatories that PPL Electric Utilities Corporation served today on the active participants in this proceeding.

If you have any questions regarding these responses, please call.

Very truly yours,

Paul E. Russell *

Attachment

cc: The Honorable Allison K. Turner

«§ RECEIVED BEFORE THE ^ 2 1 2004

PENNSYLVANIA PUBLIC UTILITY COMMISWGIMUC UTILITY COMMISSION SECRETARY'S BUREAU

PPL Electric Utilities Corporation Supplement No. 38 to Tariff - Electric Pa. P.U.C. No. 201

Docket No. R-00049255

CERTIFICATION OF SERVICE

I hereby certify that I have this day served a true copy of the responses of

PPL Electric Utilities Corporation to Interrogatories of the Office of Consumer Advocate,

Set II, Questions 14 (Revised), Set XIII, Questions 1 through 4 and Informal Data

Requests, Questions 1 through 3 and 5 through 6, upon the participant(s) listed below,

in accordance with the requirements of §1.54 (relating to service by a participant):

VIA F E D E R A L E X P R E S S

Irwin A. Popowsky, Esquire James A. Mullins, Esquire Office Of Consumer Advocate 555 Walnut Street 5 t h Floor Forum Place Harrisburg, PA 17101-1923

Johnnie Simms, Esquire Richard A. Kanaskie, Esquire Office Of Trial Staff Pennsylvania Public Utility Commission Commonwealth Keystone Building 400 North Street, 3rd Floor West Harrisburg, PA 17120

William Lloyd, Esquire Steven C. Grey, Esquire Office Of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street Harrisburg, PA 17101

David M. Kleppinger, Esquire Pamela Polacek, Esquire McNees, Wallace & Nurick 100 Pine Street Harrisburg, PA 17108

- 1 -

David A. McCormick, Esquire Regulatory Law Office (JALS-RL) US Army Legal Services Agency 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

Scott Rubin, Esquire 3 Lost Creek Drive Selinsgrove, PA 17870-9357

Stephen J. Baron, President J. Kennedy and Associates, Inc. 570 Colonial Park Drive Suite 305 Roswell, GA 30075

Eric Epstein 4100 Hillsdale Road Harrisburg, PA 17112

Joseph L. Vullo, Esquire Attorney At Law 1460 Wyoming Avenue Forty Fort, PA 18704-4237

Mr. RobertD. Knecht Industrial Economics Incorporated 2067 Massachusetts Avenue Cambridge, MA 02140

Thomas Caitlin Exeter Associates 5565 Sterrett Place Suite 310 Columbia, MD 21044

Kevin J. Moody, Esquire Wolf, Block, Schorr and Solis-Cohen LLP 212 Locust Street Suite 300 Harrisburg, PA 17101

Roger E. Clark, Esquire Sustainable Development Fund 718 Arch Street, Suite 300 North Philadelphia, PA 19106-1591

Eugene M. Brady Commission on Economic Opportunity 165 Amber Lane Wilkes-Barre, PA 18703-1127

Kent Murphy, Esquire Legal Division Exelon Business Services Company 2301 Market Street/23-1 Philadelphia, PA 19103

Patricia Armstrong Thomas, Thomas, Armstrong & Niesen Suite 500 212 Locust Street Harrisburg, PA 17108

John L. Munsch, Senior Attorney Allegheny Energy 800 Cabin Hill Drive Greensburg, PA 15601

Mark C. Morrow, Esquire UGI Utilities, Inc. 460 North Gulph Road King of Prussia, PA 19406

- 2 -

Michael Fiorentino, Esquire Joseph Otis Minott Clean Air Council 135 S. 19 t h Street, Suite 300 Philadelphia, PA 19103

Peter Adels, General Counsel Charley McPhedran, Senior Attorney PennFuture Suite 1801, 117 S. 17 t h Street Philadelphia, PA 19103

Louise A. Knight, Esquire Saul Ewing LLP Penn National Insurance Tower 2 North Second Street, 7 t h Floor Harrisburg, PA 17101

Richard S. Herskovitz, Esquire Duquesne Light 411 Seventh Avenue, 9 t h Floor Pittsburgh, PA 15219

Michael G, Wolfe, Esquire FirstEnergy Corp. 2800 Pottsville Pike Reading PA 19612-6001

Dated: June 21 , 2004

Paul E. Russell >

- 3 -

Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA 17101-1904 Tel: 717.237.4000 Fax: 717.237.4001 www.morganlewis.com

1 All IK Morgan Lewis C O U N S E L O R S A T L A W

John H. Isom 71 r.237.4022 [email protected]

June 21,2004

VIA HAND DELIVERY

James J. McNulty, Secretary Pennsylvania Public Utility Commission Commonwealth Keystone Building 400 North Street Harrisburg, PA 17120

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Re: Pennsylvania Public Utility Commission v. PPL Electric Utilities Corporation Docket No. R-00049255

Dear Secretary McNulty:

Enclosed, for filing, are the original and three (3) copies of the "Objections Of PPL Electric Utilities Corporation To Certain Interrogatories In Set VI Of The Office of Small Business Advocate Interrogatories And Set VII In Its Entirety." As indicated by the enclosed certificate of service, copies of the objections are being served upon all parties of record and upon the Honorable Allison K. Turner.

If there are any questions concerning these matters, please contact me at the addresses or telephone numbers provided above.

Respectfully submitted, .espei

A

JHI/ss

cc: Certificate of Service

l-HA/l 13623.

(ft fo BEFORE THE

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Pennsylvania Public Utility Commission

v.

PPL Electric Utilities Corporation

Docket No. R-00049255 ^ rn

rn

OBJECTIONS OF PPL ELECTRIC UTILITIES -<.; CORPORATION TO CERTAIN INTERROGATORIES ^

IN SET VI OF THE OFFICE OF SMALL BUSINESS ADVOCATtf INTERROGATORIES AND SET VII IN ITS ENTIRETY fn

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PPL Electric Utilities Corporation ("PPL Electric") hereby objects, pursuant to 52

Pa. Code § 5.342, to certain written interrogatories included in the Office of Small

Business Advocates' ("OSBA") Set VI and Set VII in its entirety.

1. Provided as Appendix A hereto are copies of Interrogatory Nos. 1 and 2

from OSBA's sixth set of Interrogatories.

2. Provided as Appendix B hereto is a copy the OSBA's seventh set of

Interrogatories.

3. PPL Electric objects to Interrogatory Nos. 1 and 2 from OSBA's sixth set

of Interrogatories and to the OSBA's seventh set of interrogatories in its entirety.

4. All of these Interrogatories from the OSBA deal with the same subject and

PPL Electric's objections to all ofthese Interrogatories are the same.

5. These Interrogatories are improper because they seek detailed information

about the operations, decision-making processes, personnel, finances, standards, grants,

loans, investments, etc. ofthe Sustainable Energy Fund of Central Eastern Pennsylvania

("SEF").

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l-HA/l 13596.1

% %

6. OSBA's Interrogatories are improper because they unreasonably burden

PPL Electric. Although PPL Electric does appoint one director ofthe SEF, that

individual attends meetings of the directors but has no involvement in the day-to-day

operations of SEF. PPL Electric simply does not have knowledge sufficiently detailed to

respond to these OSBA Interrogatories. For example, Set VII, No. 14, which requests the

following information:

"For the following loans made by the SEF, as listed on its website, please provide (i) the date and term of the loan, (ii) the interest rate for the loan, (iii) the documentary basis for approving the loan, (iv) the documents that SEF requires from the project, regarding project milestones, financial performance, etc., and (v) a listing of loan payments received:

(a) $1,000,000 loan to Petersburg Commons

(b) $1,150,000 loan to Somerset Wind

(c) $500,000 Royalty Debt Financing and Warrants to PowerWeb Technologies

(d) $500,000 loan to Londonderry School."

A person who attends meetings of the board of directors cannot be expected to have

information about such details. Therefore, although PPL Electric has some knowledge

concerning SEF, such knowledge is limited to information obtained by the director which

PPL Electric appoints and from publicly available information.

7. PPL Electric notes that SEF has intervened in this proceeding and is an

active party. SEF clearly has more information than PPL Electric about the intricacies of

SEF's operations, decision-making processes, personnel, finances, standards, grants,

loans, investments, etc. than does PPL Electric, and such information is clearly more

readily available to SEF than it is to PPL Electric.

l-HA/l.13596.1 9

8. Under the circumstances of this proceeding, it would be far more

productive for the OSBA's Interrogatories that are provided as Appendices A and B

hereto to be directed to SEF. Further, directing the OSBA's Interrogatories to SEF would

not unnecessarily burden PPL Electric, which continues to bear a substantial burden of

answering Interrogatories from other parties concerning subjects about which PPL

Electric is the most appropriate source of information.

WHEREFORE, for all the foregoing reasons, PPL Electric Utilities Corporation

respectfully requests that its objections to Interrogatory Nos. 1 and 2 of the Office of

Small Business Advocate's Sixth Set of Interrogatories and all ofthe Office of Small

Business Advocate's Seventh Set of Interrogatories be sustained.

l-HA/l 13596.1

% %

Respectfully submitted,

Of Counsel:

Morgan, Lewis & Bockius LLP

Date: June 21, 2004

Dayid/B. MacGrpgor Morgan, Lewis <& Bockius LLP 1701 Market Street Philadelphia, PA 19103-2921 Voice: 215.963.5448 Fax: 215.963.5001 E-mail: [email protected]

Michael W. Gang John H. Isom Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA 17101-1904 Voice: 717.237.4000 Fax: 717.237.4004 E-mail: [email protected]

[email protected]

Paul E. Russell Associate General Counsel PPL Services Corporation Office of General Counsel Two North Ninth Street Allentown, PA 18101-1179 Voice: 610.774.4254 Fax: 610.774.6726 E-mail: [email protected]

Attorneys for PPL Electric Utilities Corporation

l-HA/l 13596.1

% t APPE7DIX "A"

Q.1. Reference: Sustainable Energy Fund of Central Eastern Pennsylvania "Briefing on Renewal for PA Office of Small Business" March 2004 (copy attached). On page 4 of that briefing, SEF compares the mill rates for state programs.

a. Please provide the workpapers and source material from which this analysis was derived.

b. Please indicate which states established the levies by legislation, which states established the levies by regulatory commission decision, and which states established the levies through some other means.

Q.2. Reference: Sustainable Energy Fund of Central Eastern Pennsylvania "Briefing on Renewal for PA Office of Small Business" March 2004 (copy attached). At page 3, SEF indicates that all programs (except Pennsylvania) are controlled by state or quasi state agencies.

a. Please confirm that all p rograms s imilar to the S EF a re controlledby a state agency at all other states.

b. For each state shown in the chart on page 4 of the referenced document, please identify the state or quasi state agency involved and describe how it controls the use of the funds.

A?PEL^Di:r!,,s"

1. Reference: OSBA Set IV, Ql:

a. Please provide a detailed resume for each member of the SEF Board, detailing the qualifications of the individual.

b. Please provide any additional information regarding the SEF Board members' qualifications for investing in sustainable energy technologies.

2. Reference: OSBA Set IV, Q4A:

a. Please explain in detail how the mission of the SEF is distinct, i f at all, from that of the reinvigorated Pennsylvania Energy Development Authority.

b. Please identify any short term goals and targets established by the SEF for achieving its mission "to promote, research and invest in clean and renewable energy technologies, energy conservation, energy efficiency and sustainable energy enterprises that provide opportunities and benefits for PPL ratepayers."

c. Please define "renewable energy technologies" as that expression is used in SEF's mission statement. Does the term include hydroelectric generation? Biomass facilities? Refuse incinerators?

3. SEF's mission statement indicates that its investments are intended to "provide opportunities and benefits for PPL ratepayers." Please state how SEF determines that its investments benefit PPL ratepayers.

4. Are SEF's investments limited to PPL's service territory? Please explain any negative response fully.

5. Please provide copies of all audited financial statements for the SEF since its inception.

6. Please provide a detailed statement of the actual and budgeted administrative costs for the SEF for the past three years. Please include in your response a listing of any compensation made to each member of the Board, Mr. Michael McFadden, Mr. Russell Meyer, and Gemstone Financial Consultants.

7. Please provide copies o f the SEF's procedures for approving a loan, grant, and equity contribution.

8. Please provide an explanation of how SEF determines whether or not it approves a particular application.

9. Please provide several representative examples of applications for loans, equity funding and grants that the SEF has rejected, including an explanation for each regarding why it was rejected.

10. Please detail the SEF's requirements for applications for loans, grants and other investments. Please include a description of any commitments that the applicant must make.

11. Please explain how the SEF determines the appropriate fund mix of grants, loans, equity investments, etc. Please include an explanation of how this mix supports short- and longer-term fund goals and objectives.

12. Please provide a copy of the SEF's procedures for tracking the performance of the projects to which it has made a loan, grant, o r e quity c ontribution. P lease i nclude an explanation of the SEF's procedures for insuring that commitments made by the successful applicants are met. Please also include representative examples of performance evaluations that the SEF has performed with respect to its grants, loans and equity contributions.

13. Please explain how the SEF confirms that its loans, grants and equity contributions have been properly used.

14. For the following loans made by the SEF, as listed on its website, please provide (i) the date and term ofthe loan, (ii) the interest rate for the loan, (iii) the documentary basis for approving the loan, (iv) the documents that SEF requires from the project, regarding project milestones, financial performance, etc., and (v) a listing of loan payments received:

a. $1,000,000 loan to Petersburg Commons

b. $1,150,000 loan to Somerset Wind

c. $500,000 Royalty Debt Financing and Warrants to PowerWeb Technologies

d. $500,000 loan to Londonderry School

15. For the following equity investments made by the SEF, please provide the documents supporting approval of the investment and documents prepared by SEF evaluating subsequent performance of that investment.

a. $1,500,000 investment in Community Energy for Bear Creek Wind Farm

16. How does the SEF share any lessons that it leams with other funds and with state authorities? Please provide relevant examples of any such communications.

CERTIFICATE OF SERVICE

I hereby certify that I have this day served a true copy of the foregoing "Objections Of PPL Electric Utilities Corporation to Certain Interrogatories In Set VI of the Office Of Small Business Advocate Interrogatories and Set VII in its Entirety" upon the participant(s), listed below, in accordance with the requirements of § 1.54 (relating to service by a participant):

VIA E-MAIL AND FIRST-CLASS MAIL

Honorable Allison K. Turner Administrative Law Judge Pennsylvania Public Utility Commission Philadelphia State Office Building 1400 West Spring Garden Street Room 1302 Philadelphia, PA 19130

Tanya J. McCloskey, Esquire James A. Mullins, Esquire Lori A. Herman, Esquire Aron J. Beatty, Esquire Office of Consumer Advocate 555 Walnut Street Forum Place, 5th Floor Harrisburg, PA 17101-1923

William R. Lloyd, Jr., Esquire Steven C. Gray, Esquire Office of Small Business Advocate Commerce Building, Suite 1102 300 North Second Street Harrisburg, PA 17101

Richard A. Kanaskie, Esquire Office of Trial Staff Commonwealth Keystone Building 400 North Street, 2nd Floor West PO Box 3265 Harrisburg, PA 17105-3265

David M. Kleppinger, Esquire Pamela C. Polacek, Esquire Karen S. Miller, Esquire McNees Wallace & Nurick 100 Pine Street POBox 1166 Harrisburg, PA 71108

Kent D. Murphy, Esquire Legal Department Exelon Business Services Company 2301 Market Street/23-1 P.O. Box 8699 Philadelphia, PA 19101-8699

David A. McCormick, Esquire US Army Legal Services Agency 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

Scott J. Rubin, Esquire 3 Lost Creek Drive Selinsgrove, PA 17870-9357

Stephen J. Baron, President J. Kennedy & Associates Inc. 570 Colonial Park Drive, Suite 3Q§? Roswell, GA 30075-3770

^1

Eric Joseph Epstein 4100 Hillsdale Road Harrisburg, PA 17112

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Joseph L. Vullo, Esquire Attorney at Law 1460 Wyoming Avenue Forty Fort, PA 18704

Eugene M. Brady Commission on Economic Opportunity 165 Amber Lane P.O. Box 1127 Wilkes-Barre, PA 18703

John L. Munsch Allegheny Power 800 Cabin Hill Drive Greensburg, PA 15601

Richard S. Herskovitz Duquesne Light 411 Seventh Avenue, 8th Floor Pittsburgh, PA 15219

Peter Adels, General Counsel Charley McPhedran, Senior Attorney Penn Future Suite 1801 117S. 17th Street Philadelphia, PA 19103

Mark C. Morrow 460 North Gulph Road King of Prussia, PA 19406

Michael G. Wolfe, Esquire FirstEnergy 2800 Pottsville Pike P.O. Box 16001 Reading, PA 19612-6001

Kevin J. Moody Wolf, Block, Schorr and Solis-Cohen LLP 212 Locust Street, Suite 300 Harrisburg, PA 17101

Patricia Armstrong Thomas, Thomas, Armstrong & Niesen 212 Locust Street, Suite 500 P.O. Box 9500 Harrisburg, PA 17108-9500

Roger E. Clark Sustainable Development Fund 718 Arch Street, Suite 300 North Philadelphia, PA 19106-1591

Michael Fiorentino Joseph Otis Minott 135 S. 19th Street, Suite 300 Philadelphia, PA 19103

Louise A. Knight, Esquire Joseph J. Malatesta, Esquire David P. Zambito, Esquire Saul Ewing LLP 2 North Second Street, 7th Floor Harrisburg, PA 17101

RobertD. Knecht Industrial Economics Incorporated 2067 Massachusetts Avenue Cambridge, MA 02140

Date: June 21, 2004 ^Jyhn H. Isom

I-HA/113436.1

June 21, 2004

Paul Associate Gene' ft ssel l

bunsel



[email protected]

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D P -PPl

F E D E R A L E X P R E S S

James J. McNulty, Esquire Secretary Pennsylvania Public Utility Commission Commonwealth Keystone Building 400 North Street Harrisburg, Pennsylvania 17120

'ECEIVED J U N 2 1 2004

SECRETARY'S BUREAU



Dear Mr. McNulty:



Very truly yours,

Paul E. Russell

Attachment


THE PENNSYLVANIA PUBLIC UTILITY



RECEIVE JUN 2 1 2004

PA PUBLIC UTIUTY COMMISSION CERTIFICATION OF SERVICE SECRETARY'S BUK&*U

I hereby certify that I have this day served a true copy ofthe responses of

PPL Electric Utilities Corporation to Interrogatories ofthe Clean Air Council, Set 3,

Questions CAC3-1 through CAC3-26, upon the participant(s) listed below, in

accordance with the requirements of §1.54 (relating to service by a participant):



Johnnie Simms, Esquire Richard A. Kanaskie, Esquire Office Of Trial Staff Pennsylvania Public Utility Commission Commonwealth Keystone Building 400 North Street, 3rd Floor West Hamsburg, PA 17120



- 1 -


ScottRubin, Esquire 3 Lost Creek Drive Selinsgrove, PA 17870-9357




Mr. Robert D. Knecht Industrial Economics Incorporated 2067 Massachusetts Avenue Cambridge, MA 02140



Roger E. Clark, Esquire Sustainable Development Fund 718 Arch Street Suite 300 North Philadelphia, PA 19106-1591






- 2 -


Peter Adels, General Counsel Charley McPhedran, Senior Attorney PennFuture Suite 1801,. 117 S. 17 t h Street Philadelphia, PA 19103

Louise A. Knight, Esquire Saul Ewing LLP Penn National Insurance Tower 2 North Second Street, 7 t h Floor Hamsburg, PA 17101


Michael G. Wolfe, Esquire FirstEnergy Corp. 2800 Pottsville Pike Reading PA 19612-6001

Dated: June 21 , 2004

Paul E. Russell

- 3 -

Paul flMbssell Associate GeneflRounsel



[email protected]

. \ ft n a J .'

ppi June 21, 2004

FEDERAL EXPRESS


RECEIVED JUN 2 1 2004



^SSft JIB*

Dear Mr. McNulty:



Very truly yours,

Paul E. Russell f %

Attachment


BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

fo



RECEIVED J U N 2 1 2004

CERTIFICATION OF SERVICE S E C R E T W S BUREAU


PPL Electric Utilities Corporation to Informal Data Requests of Eric Epstein, Questions 1

through 4, upon the participant(s) listed below, in accordance with the requirements of

§1.54 (relating to service by a participant):






- 1 -





Joseph L. Vullo, Esquire 1460 Wyoming Avenue Forty Fort, PA 18704-4237










- 2 -

Michael Fiorentino, Esquire Joseph Otis Minott Clean Air Council 135 S. 19 t f 1 Street, Suite 300 Philadelphia, PA 19103





Dated: June 21, 2004

Paul E. Russell f

- 3 -

• 10, Pau l ^P | t usse l l Associate General Counsel



[email protected]

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June 22, 2004

FEDERAL EXPRESS





Dear Mr. McNulty:



Very truly yours,

Paul E. Russell

Attachment







PA PUBLIC UTILITY COMMISSIOf SECRETARY'S BUREAU

I hereby certify that I have this day served a true copy ofthe responses of

PPL Electric Utilities Corporation to Informal Data Requests ofthe Office of Consumer

Advocate, Question 4, upon the participant(s) listed below, in accordance with the

requirements of §1.54 (relating to service by a participant):

VIA FEDERAL EXPRESS





-1 -













John L Munsch, Senior Attorney Allegheny Energy 800 Cabin Hill Drive Greensburg, PA 15601


- 2 -







Paul E. Russell / i * * ^

- 3 -

^ Paul ^ 1 ssell , > < Associate General Counsel \ V i 1 /

PPL * ^ Two North Ninth Street I ? p '

Allentown, PA 18101-1179 I ~ B 1 Tel. 610.774.4254 Fax 610.774.6726 M 1 ^ I

[email protected] ppl V

June 22, 2004

FEDERAL EXPRESS RECEIVED James J. McNulty, Esquire JUN 2 2 Z004 Secretary Pennsylvania Public Utility Commission PA PUBUC UTIUTY COMMISSIOrJ Commonwealth Keystone Building SECRETARY'S BUREAU 400 North Street Harrisburg, Pennsylvania 17120



Dear Mr. McNulty:



Very truly yours,

Paul E. Russell

Attachment





CERTIFICATION OF S E R V I C E


PA PUBLIC UTILITY COMMISSiCf SECRETARY'S BUREAU


PPL Electric Utilities Corporation to Interrogatories of the Commission on Economic

Opportunity, Set 2, Questions 1 through 20, upon the participant(s) listed below, in

accordance with the requirements of §1.54 (relating to service by a participant):






- 1 -















- 2 -







Paul E. Russell / ^

- 3 -

Paul fi^^ssell Associate Generbi Counsel



[email protected]

\ v • # / • ii D a *

ppl June 22, 2004

FEDERAL EXPRESS

James J. McNulty, Esquire Secretary Pennsylvania Public Utility Commission Commonwealth Keystone Building 400 North Street Hamsburg, Pennsylvania 17120

D o - -


PA PUBLIC UTIUTY COMMISSICN SECRETARY'S BUREAU



Dear Mr. McNulty:



Very truly yours,

Paul E. Russell

Attachment


•





RECEIVE JUN 2 2 2004

P A PUBUC UTIUTY C O ^ C l

SECRETARY'S buhC^J


PPL Electric Utilities Corporation to Interrogatories of PP&L Industrial Customer

Alliance, Set II, Question 2 (Revised) and Set III, Questions 1 through 4, upon the

participant(s) listed below, in accordance with the requirements of §1.54 (relating to

service by a participant):






- 1 -















RECEIVED JUN 2 2 ?Cr4

PA PUBLIC UTILITY COiv'WSSIC; SECRETARY'S B w ^ U

- 2 -

to


Peter Adels, General Counsel Charley McPhedran, Senior Attorney PennFuture Suite 1801, 117S. 17 , h Street Philadelphia, PA 19103




Dated: June 22 2004

Paul E. Russell f

- 3 -

M c N e e s W a l l a c e & N u r i c k LLC attorneys at law B W m. \ lb Uv [ri s

KAREN S. MILLER DIRECT DIAL: (717) 237-5359 E-MAIL ADDRESS: [email protected]

June 22, 2004

VIA HAND DELIVERY James J. McNulty, Secretary Pennsylvania Public Utility Commission The Commonwealth Keystone Building 400 North Street, 2 n d Floor Harrisburg, PA 17120

'JUL 2 6 2004 Re: Pennsylvania Public Utility Commission v. PPL Electric Utilities Corp. -

Docket No. R-00049255; and PP&L Industrial Customer Alliance v. PPL Electric Utilities Corp. - Docket No. R-00049255C0002


Enclosed please find an original and three (3) copies of an Appendix "A" to the Complaint of PP&L Industrial Customer Alliance ("PPLICA") in the above-referenced proceeding. As indicated in Paragraph 1 of PPLICA's Complaint, PPLICA reserved the right to update its membership during the course of the above-referenced proceeding. Accordingly, Appendix "A" contains an updated list of PPLICA member companies for this proceeding, as follows:

Agere Systems, Inc. Air Products and Chemicals, Inc. ALCOA, Inc. Anvil International, Inc. Armstrong World Industries Binkley & Ober, Inc. BOC Gases Certainteed Corporation Cinram Manufacturing Hercules Cement Co. LP, dba

Buzzi-Unicem USA

Hershey Foods Corporation Lafarge North America Magee Rieter Automotive Systems Nestle Waters North America and

Nestle Purina Pet Care Praxair, Inc. RR Donnelley & Sons Company Strohemann Bakeries Timet, Inc. Wegman's Food Markets, Inc.

RO. Box

l Z : Z \ k l U

1166 • 100 PINE STREET • HAF HARRISBURG, PA 17108-1166 • TEL: 717.232.8000 • FAX: 717.237.5300 • WWW.MWN.COM

HAZLETON, PA • STATE COLLEGE, PA • COLUMBUS, OH • WASHINGTON, DC

James J. McNulty, SecretsTy June 22, 2004 Page 2

As reflected on the attached Certificate of Service, all parties to this proceeding are being duly served with copies of this filing. Please date stamp the extra copy of this transmittal letter and kindly return it to us for our filing purposes. Thank you.

Very truly yours,

MCNEES WALLACE & NURICK LLC

By 'HOSUL.*^ A . ThJ^LU^ Karen S. Miller

Counsel to the PP&L Industrial Customer Alliance

KSM Enclosures c: Certificate of Service

Administrative Law Judge Allison K. Turner (via first class mail)


I hereby certify that I am this day serving a true copy of the foregoing document upon the participants listed below in accordance with the requirements of 52 Pa. Code Section 1.54 (relating to service by a participant).

VIA FIRST CLASS MAIL

Steven C. Gray, Esq. Office of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street Harrisburg, PA 17101

David A. McCormick, Esq. The Department of Defense and Federal Executive Agencies Regulatory Law Office U.S. Army Legal Services Agency Department of the Army (DAJA-RL 4120) 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

Tanya J. McCloskey, Esq. James A. Mullins, Esq. Lori A. Herman, Esq. Aron J. Beatty, Esq. Office of Consumer Advocate 555 Walnut Street Forum Place, 5 t h Floor Harrisburg, PA 17101-1923

David B. MacGregor, Esq. Morgan, Lewis & Bockius LLP 1701 Market Street Philadelphia, PA 19103-2921

Joseph L. Vullo, Esq. 1460 Wyoming Avenue Forty Fort, PA 18704-4224

Michael W. Gang, Esq. John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA 17101-1904

Richard A. Kanaskie, Esq. Office of Trial Staff Pennsylvania Public Utility Commission 400 North Street, 2 n d Floor West P.O. Box 3265 Harrisburg, PA 17105-3265

Eric Joseph Epstein 4100 Hillside Road Harrisburg, PA 17112

Scott J. Rubin, Esq. 3 Lost Creek Drive Selinsgrove, PA 17870-9357

Mark C. Morrow, Esq. UGI Utilities, Inc. 460 North Gulph Road King of Prussia, PA 19406

Stephen J. Baron, President J. Kennedy and Associates, Inc. 570 Colonial Park Drive, Suite 305 Roswell, GA 30075-3770

cr

o

Certificate of Service Page 2 Docket No. R-00049255

4

Mr. Eugene M. Brady Commission on Economic Opportunity 165 Amber Lane P.O. Box 1127 Wilkes-Barre, PA 18703-1127

Patricia Armstrong, Esq. Thomas T. Niesen, Esq. Thomas, Thomas, Armstrong & Niesen 212 Locust Street, Suite 500 P.O. Box 9500 Harrisburg, PA 17108-9500

Kent D. Murphy, Esq. Exelon Business Services Co. 2301 Market Street, S23-1 P.O. Box 8699 Philadelphia, PA 19101-8699

Tracy McCormick Executive Director MAPSA P.O. Box 6089 Harrisburg, PA 17112

John L. Munsch, Esq. Allegheny Energy 800 Cabin Hill Drive Greensburg, PA 15601-1689

Michael Fiorentino, Esq. Joseph Otis Minott, Esq. Clean Air Council 135 S. 19 t h Street, Suite 300 Philadelphia, PA 19103

Louise A. Knight, Esq. Joseph J. Malatesta, Esq. Saul Ewing LLP 2 North Second Street, 7 t h Floor Harrisburg, PA 17101


Paul E. Russell, Assoc. General Counsel PPL Electric Utilities Corporation Two North Ninth Street Allentown, PA 18101-1179

Richard Rathvon, President MAPSA c/o Reliant Energy Solutions 379 Thornall Street, 5 l h Floor Edison (Metro Park), NJ 08837

Mr. Thomas Caitlin Exeter Associates 5565 Sterrett Place Suite 310 Columbia, MD 21044

Roger E. Clark, Esq. Sustainable Development Fund 718 Arch Street, Suite 300 North Philadelphia, PA 19106-1591

Daniel Clearfield, Esq. Kevin J. Moody, Esq. Wolf Block Schorr & Solis-Cohen LLP 212 Locust Street, Suite 300 Harrisburg, PA 17036

Richard S. Herskovitz, Esq. Vice President, Rates Duquesne Light Company 411 Seventh Avenue, 8-2 Pittsburgh, PA 15219


Michael G. Wolfe, Esq. FirstEnergy Corp. 2800 Pottsville Pike P.O. Box 16001 Reading, PA 19612-6001

Peter Adels, General Counsel Charley McPhedran, Senior Attorney Citizens for Pennsylvania's Future 117 S. 17 t h St., Suite 1801 Philadelphia, PA 19103

Karen S. Miller


Dated this 22nd day of June, 2004, at Harrisburg, Pennsylvania.

MEMBERSHIP OF PP&L INDUSTRIAL CUSTOMER ALLIANCE

(Updated on June 22, 2004)

Agere Systems, Inc. Air Products and Chemicals, Inc.

ALCOA, Inc. Anvil International, Inc.

Armstrong World Industries Binkley & Ober, Inc.

BOC Gases Certainteed Corporation Cinram Manufacturing

Hercules Cement Co. LP, dba Buzzi-Unicem USA Hershey Foods Corporation

Lafarge North America Magee Rieter Automotive Systems

Nestle Waters North America and Nestle Purina Pet Care Praxair, Inc.

RR Donnelley & Sons Company Stroehmann Bakeries

Timet, Inc. Wegmans Food Markets, Inc.

APPENDIX "A1

McNees Wallace & Nurick LLC

ft ft at to rneys at law

June 22, 2004

James J. McNulty, Secretary Pennsylvania Public Utility Commission The Commonwealth Keystone Building 400 North Street, 2 n d Floor Harrisburg, PA 17120

KAREN S. MILLER DIRECT DIAL; (717) 237-5359 E-MAIL ADDRESS: [email protected]

VIA HAND DELIVERY

Re: Pennsylvania Public Utility Commission v. PPL Electric Utilities Corp. -Docket No. R-00049255; and PP&L Industrial Customer Alliance v. PPL Electric Utilities Corp. - Docket No. R-00049255C0002


On April 6, 2004, the PP&L Industrial Customer Alliance ("PPLICA") filed a Complaint at the above-referenced docket. Although the Secretary's Bureau confirmed that our client's name was docketed correctly, notices and orders that PPLICA receives from the Commission concerning these proceedings list PPLICA's full name as "PPL Industrial Customer Alliance." Accordingly, PPLICA files an original and three (3) copies of this letter in order to confirm that its correct name is "PP&L Industrial Customer Alliance" and to request that future documents reflect the correct full name of PPLICA.

If you have any questions regarding this letter, please contact us. As reflected on the attached Certificate of Service, all parties to this proceeding are being duly served with copies of this filing. Please date stamp the extra copy of this letter and kindly return it to us for our filing purposes. Thank you.

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Very truly yours,

6 2004

'|iyicNEES WALLACE & NURICK LLC

Karen S. Miller

o Counsel to the PP&L Industrial Customer Alliance

KSM Enclosures c: Certificate of Service

Administrative Law Judge Allison K. Turner (via first class mail)

RO. Box 1166 • 100 PINE STREET • HARRISBURG, PA 17108-1166 • TEL: 717.232.8000 • FAX: 717.237.5300 • WWW.MWN.COM

HAZLETON, PA • STATE COLLEGE, PA • COLUMBUS, OH • WASHINGTON, DC


I hereby certify that I am this day serving a true copy of the foregoing document upon the participants listed below in accordance with the requirements of 52 Pa. Code Section 1.54 (relating to service by a participant).

VIA FIRST CLASS MAIL

Steven C. Gray, Esq. Office of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street Harrisburg, PA 17101

David A. McCormick, Esq. The Department of Defense and Federal Executive Agencies Regulatory Law Office U.S. Army Legal Services Agency Department of the Army (DAJA-RL 4120) 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

Tanya J. McCloskey, Esq. James A. Mullins, Esq. Lori A. Herman, Esq. Aron J. Beatty, Esq. Office of Consumer Advocate 555 Walnut Street Forum Place, 5 t h Floor Harrisburg, PA 17101-1923

David B. MacGregor, Esq. Morgan, Lewis & Bockius LLP 1701 Market Street Philadelphia, PA 19103-2921

Joseph L. Vullo, Esq. 1460 Wyoming Avenue Forty Fort, PA 18704-4224

Michael W. Gang, Esq. John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA 17101-1904

Richard A. Kanaskie, Esq. Office of Trial Staff Pennsylvania Public Utility Commission 400 North Street, 2 n d Floor West P.O. Box 3265 Harrisburg, PA 17105-3265

Eric Joseph Epstein 4100 Hillside Road Harrisburg, PA 17112

Scott J. Rubin, Esq. 3 Lost Creek Drive Selinsgrove, PA 17870-9357

Mark C. Morrow, Esq. UGI Utilities, Inc. 460 North Gulph Road King of Prussia, PA 19406

Stephen J. Baron, President J. Kennedy and Associates, Inc. 570 Colonial Park Drive, Suite 305= Roswell, GA 30075-3770 &

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Mr. Eugene M. Brady Commission on Economic Opportunity 165 Amber Lane P.O. Box 1127 Wilkes-Barre, PA 18703-1127

Patricia Armstrong, Esq. Thomas T. Niesen, Esq. Thomas, Thomas, Armstrong & Niesen 212 Locust Street, Suite 500 P.O. Box 9500 Harrisburg, PA 17108-9500

Kent D. Murphy, Esq. Exelon Business Services Co. 2301 Market Street, S23-1 P.O. Box 8699 Philadelphia, PA 19101-8699

Tracy McCormick Executive Director MAPSA P.O. Box 6089 Harrisburg, PA 17112

John L. Munsch, Esq. Allegheny Energy 800 Cabin Hill Drive Greensburg, PA 15601-1689

Michael Fiorentino, Esq. Joseph Otis Minott, Esq. Clean Air Council 135 S. 19 t h Street, Suite 300 Philadelphia, PA 19103

Louise A. Knight, Esq. Joseph J. Malatesta, Esq. Saul Ewing LLP


Paul E. Russell, Assoc. General Counsel PPL Electric Utilities Corporation Two North Ninth Street Allentown, PA 18101-1179

Richard Rathvon, President MAPSA c/o Reliant Energy Solutions 379 Thornall Street, 5 t h Floor Edison (Metro Park), NJ 08837

Mr, Thomas Caitlin Exeter Associates 5565 Sterrett Place Suite 310 Columbia, MD 21044

Roger E. Clark, Esq. Sustainable Development Fund 718 Arch Street, Suite 300 North Philadelphia, PA 19106-1591

Daniel Clearfield, Esq. Kevin J. Moody, Esq. Wolf Block Schorr & Solis-Cohen LLP 212 Locust Street, Suite 300 Harrisburg, PA 17036

Richard S. Herskovitz, Esq. Vice President, Rates Duquesne Light Company 411 Seventh Avenue, 8-2 Pittsburgh, PA 15219

2 North Second Street, 7 Harrisburg, PA 17101

th Floor

# i l Certificate of Service Page 3 Docket No. R-00049255

Michael G. Wolfe, Esq. FirstEnergy Corp. 2800 Pottsville Pike P.O. Box 16001 Reading, PA 19612-6001

Peter Adels, General Counsel Charley McPhedran, Senior Attorney Citizens for Pennsylvania's Future 117 S. 17 t h St., Suite 1801 Philadelphia, PA 19103

^3. J%iLtc^ Karen S. Miller


Dated this 22nd day of June, 2004, at Harrisburg, Pennsylvania.

m ft Afliks, 2004

The Honorable. Allison Turner Pennsylvania Public Utility Commission Room 1302 Philadelphia State Office Building 1400 Spring Garden Street Philadelphia, PA 19130

Dear Judge Turner:

RE: PA PUC et al. v. PPL Electric Utilities Corporation Docket No. R-00049255 .

The PennFuture Parties expect at this time to present as a witness John Hanger, President and CEO of PennFuture concerning issues related to the Sustainable Energy • Fund.

It is not necessary to include Mr. Hanger on service lists or to provide discovery information to him directly. For your information, his contact information is:

Mr. John Hanger PennFuture 610 North Third Street Harrisburg-, Pennsylvania 17101 717.214.7920 717.214.7927(f) [email protected]

'JUL 2 6 2004

As indicated on the attached Certificate of Service, a copy of this notice Served on all parties of record. I f there are any questions, please do not hesitate ,contact me:

has been tO'

cc. all parties, of record

Sincerely,

Peter Adels

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Citizens for Pennsylvania's Future

610 N: Third Sveet

Hamsburg, PA 17101-1115

Tele:-?17-214-7920

fax: 7I7-2M-7927

e-mail: [email protected]


425 Sixth Ave^ Ste. 2770

Pittsburgh. PA 15219

Te!e:412-258-66B0

Fox: 412-256-6685



117South !7thStreet, Suite 1801

Philadelphia, PA 19103

Tele: 215-569-9691

Fax:215-569-9637


C E R T I F I C A T E OF S E R V I C E

CASE SERVICE LIST AS OF 06/23/04

PA PUC v. PPL Electric Utilities Co. Docket No. R-00049255

1 hereby certify that I have this day served a true copy of the foregoing document upon

the participants, listed below, in accordance with the requirements of § 1.54 (relating to service

by a participant).

Date:

Peter Adels, Esq.

Paul Russell, Esquire PPL Electric Utilities Co. Two North Ninth Street Allentown, PA 18101-1179

Irwin A. Popowsky, Esquire Tanya J. McCloskey, Esquire James A Mullins, Esquire Office of Consumer Advocate Forum Place, 5th Floor 555 Walnut Street Harrisburg, PA 17101-1923 (Office qf Consumer Advocate)

William R. Lloyd, Jr., Esquire Steven C. Gray, Esquire Office of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street Harrisburg, PA 17101 (Office of Small Business Advocate)

Kenneth L. Mickens, Esquire Johnnie E. Simms, Esquire Richard A Kanaskie, Esquire Office of Trial Staff Pennsylvania Public Utility Commission P.O. Box 3265 Harrisburg, PA 17105-3265 (Office of Trial Staff)

David M. Kleppinger, Esquire Pamela C. Polacek, Esquire McNees Wallace & Nurick LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (PPL Industrial Inlervenors)

Scott J. Rubin, Esquire Three Lost Creek Drive Selinsgrove, PA 17870

Michael W. Gang, Esquire John H. Isom, Esquire Morgan Lewis & Bockius LLP One Commerce Squire 417 Walnut Street Harrisburg, PA 17101-1904

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Kent D. Murphy, Esquire Exelon Business Services Company 2301 Market Street, S23-1 PO Box 8699 Philadelphia, PA 19101-8699

Joseph L. Vullo, Esquire 1460 Wyoming Avenue Forty Four, PA 18704-4237

David A. McCormick, Esquire US Army Legal Services Agency 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

Louise A. Knight, Esquire Saul Ewing LLP 2 North Second Street, 7 t h Floor Harrisburg, PA 17101-1604


Richard S. Herskovitz, Esquire Duquesne Light Company 411 Seventh Avenue 8* Floor Pittsburgh, PA 15219

Honorable Phyllis Mundy, Chair Northeast Delegation House Box 202020 Harrisburg, PA 17120-2020

John L. Munsch, Esquire Allegheny Energy 800 Cabin Hill Drive Greensburg, PA 15601-1689 '

PC: ALJ Susan Colwell ALJ Ember Jandebeur Henry Deichmiller Cindi Muriceak Eric Levis

CASE SERVICE LIST AS OF 06/23/04

Michael Fiorentino, Esquire Clean Air Council 135 S. 19'h Street, Suite 300 Philadelphia, PA 19103

David MacGregor, Esquire Morgan Lewis.& Bockius LLP 1701 Market Street Philadelphia, PA 19103-2921

Eric Joseph Epstein 4100 Hillsdale Road Harrisburg, PA 17112

Daniel Clearfield, Esquire Kevin J. Moody, Esquire Wolf, Black, Schorr & Solis-Cohen LLP 212 Locust Street, Suite 300 Harrisburg, PA 17101

Patricia Armstrong, Esquire Thomas T. Niesen, Esquire Thomas, Thomas, Armstrong & Niesen 212 Locust Street, Suite 500 PO Box 9500 Harrisburg, PA 17108-9500

Mark C Morrow, Esquire 460 North Gulph Road King of Prussia, PA 19406

Michael G. Wolfe, Esquire Metropolitan Edison Company, Pennsylvania Power Company & Pennsylvania Electric Company 2800 Pottsville Pike PO Box 16001 Reading, PA 19612-6001

COMMONWEALTH OF PENNSYLVANIA PENNSYLVANIA PUBLIC UTILITY COMMISSION P.O. BOX 3265, HARRISBURG, PA 17105-3265

June 24, 2004

IN REPLY PLEASE REFER TO OUR FILE

In Re: 'R-06049255 R-0O049255C0O01-C0005

«FIRSTNAME» «MIDDLEINITIAL» «LASTNAME» «J0BTITLE» «C0MPANY» «ADDRESS1» «ADDRESS2» «ADDRESS3» «CITY» «STATE» «P0STALC0DE»

Pennsylvania Public Utility Commission (R-00049255) U.S. Department of Defense & Federal Executive Agencies (C0001)

PPL Industrial Customer Alliance (C0002) Office of Small Business Advocate (C0O03)

Office of Consumer Advocate (C0004) Eric Joseph Epstein (C0005)

v. PPL Electric Utilities Corporation

PUBLIC INPUT HEARING NOTICE

This is to inform you that an Additional Public Input Hearings on the above-captioned case w i l l be held as follows

Date: Time: Locati on:

Presidi ng

WILLIAMSPORT Monday, July 19, 2004 2:00 p.m. and also 6:00 p.m. Pennsylvania College of Technology One College Avenue Williamsport PA 17701

Administrative Law Judge All ison K. Turner 1302 Philadelphia State Of f ice Bui ld ing 1400 West Spring Garden Street Phi ladelphia, PA 19130 Telephone: (215) 560-2105 Fax: (215) 560-3133

4> # I f you intend to f i l e exhibits, 2 copies of a l l hearing

exhibits to be presented into evidence must be submitted to the reporter. An additional copy must be furnished to the Presiding Officer. A copy must also be provided to each party of record.

Individuals representing themselves do not need to be represented by an attorney. All others (corporation, partnership, association, trust or governmental agency or subdivision) must be represented by an attorney. An attorney representing you should file a Notice of Appearance before the scheduled hearing date.

I f you are a person with a d i s a b i l i t y , and you wish to attend the hearing, we may be able to make arrangements for your special needs. Please call the scheduling office at the Public U t i l i t y Commission:

* Scheduling Office: (717) 787-1399. * AT&T Relay Service number for persons who are deaf or

hearing-impai red: 1-800-654-5988.

OALJ Hearing Report Please onec/( Those Blocks Which Apply

Docket No.: R-00049425 YES NO

Prehearing Held:

Case Name: PA PUC v PG Energy, a Division of Southern Hearing Held:

Union Company Testimony Taken: 1 Transcript Due:

i — Hearing Concluded:

Location:: HBG ^ Further Hearing Needed:

y L U Estimated Add'l Days:

Date: June 24, 2004 ^ O

O O RECORD CLOSED:

ALJ: Herbert Smolen O DATE:

i k Briefs to be Filed:

Reporting Firm: Sargents Court Reporting DATE:

J 5 HECE1VED Bench Decision:

J 5 HECE1VED REMARKS: J 5 HECE1VED J 5 HECE1VED J 5 HECE1VED

o PkjASE PRINT CLEARLY • Incomplete Information may result in delay of processing. Name and Telephone Number Address Who are you representing?

fiO, City

E-mail Address:

State Zip

Telephone: C ^ n ^ l ^ l - L ^ K ^

^ K a r e n S . M f f l ^ r -

Fax Number:

P.O. &»* \\(oh City

2: State

Telephone: 5 35<? E-mail Address: (<mi l le r -^ mwrn-ô-TO Fax Number:

City State

£4 Zip

1 /off Telephone:-] n . ^ t , . j ^ ^ o E-mail A d d r e s s : ^ - ^ ^ ^ ^ & U w s L - ^ Fax Number: - j n . ^3^ - H rvf i

Check this box if additional parties or attendees appear on Bick of form.

Reporter's Signature

Note: Completion of this form does not constitute an entry of appearance, see 52 Pa. Code §§1.24 and 1.25.

Name and Telephone Number Address Who are you representing?

City State Zip

Telephone-Yy,^ XD E-mail Address:, / / m j f i MQC* . c rc Fax Number: C-?ri)~78J-

^ 3 0 oAJ^Lca/ud j r i City Sta e Zip

T e l e p h o n ^ ^ ^ ^ ^ E-mail Address: 0 G r U j J u A + f i e l ' SJ^Cr.

Fax Number:

3 0 ^ l ^ r i d C f L ,

p.o. e.o >

dB State Zip

Telephone: E-mail Address- i, . i ^ r v ^ , ^4. Fax Number: ^ q . y p Q . y ^

City State Zip

Telephone: E-mail Address: Fax Number:

City State Zip


City State Zip


City State Zip


City State Zip


Note: Completion of this form does not constitute an entry of appearance, see 52 Pa. Code §§1.24 and 1.25.

WolfBlock 212 Locust Street, Suite 300, Harrisburg, Pennsylvania 17101 Tel: (717) 237-7160 • Fax: (717) 237-7161 • www.WolfBlock.com

Kevin J. Moody Direct Dial: (717) 237-7187 Direct Fax: (717) 237-2767 E-mail: kmoody@wolfblocl<.com

June 25, 2004

V I A EMAIL & F I R S T CLASS MAIL Hon. Allison K. Turner Administrative Law Judge Pennsylvania Public Utility Commission 1302 Philadelphia State Office Bldg. Broad and Spring Garden Streets Philadelphia, PA 17130

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Re: Pennsylvania Public Utility Commission v. PPL Electric Utilities Corporation: Docket No. R-00049255

Dear Judge Turner:

Strategic Energy L.L.C. ("Strategic") intends to present testimony through James P. McCormick, and I request that Mr. McCormick be added to the hard copy and email service lists. His contact information is:

James P. McCormick Manager, Market Development

for Pennsylvania & New Jersey Strategic Energy, L.L.C. 1940 Robert Road Meadowbrook, PA 19046 [email protected]

If you have any questions, please do not hesitate to contact me.

Sincerely,

Kevin J. Moody For WOLF, BLOCK, SCHORR and SOLIS-COHEN LLP

KJM/jls cc: Parties of Record

James McNulty, Secretary DShM 1569.1/STR163-220694

Cherry Hi l l . NJ • Harrisburg. PA • New York. NY • Nor r i s iown , PA • Philadelphia. PA • Roseland, NJ

WolfBlock Government Relations: Harrisburg. PA and Washington, DC Wolf, Block, Schorr and Solii-Cohen LLP. a Pennsylvanli Limicad Liability Partnership

Wilmington, DE

#

1BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION


V.

PPL E L E C T R I C UTILITIES CORP.

DOCKET NO. R-00049255


I hereby certify that I have this day served a true copy ofthe foregoing documents upon


by a participant).

VIA EMAIL & FIRST CLASS MAIL

Hon. Allison K. Turner Administrative Law Judge PA Public Utility Commission 1302 Philadelphia State Office Bldg. Broad & Spring Garden Streets Philadelphia, PA 19130

Paul E. Russell, Assoc. General Counsel PPL Two North Ninth Street Allentown, PA 18101-1179

Scott J. Rubin, Esquire International Brotherhood of Electric

Workers Three Lost Creek Drive Selinsgrove, PA 17870

David MacGregor, Esquire Morgan, Lewis & Bockius LLP 1701 Market Street Philadelphia, PA 19103-2921

DSH:40812.1/MID051 -158776

Michael W. Gang, Esquire Morgan, Lewis & Bockius LLP 417 Walnut Street Harrisburg, PA 17101-1904

Joseph L. Vullo, Esquire Commission on Economic Opportunity 1460 Wyoming Avenue Forty Fort, PA 18704-4237

Kent D. Murphy, Esquire Exelon Business Services Co. 2301 Market Street, S23-1 P.O. Box 8699 Philadelphia, PA 19101-8699

David A. McCormick, Esquire Department of the Army U.S. Army Legal Services Agency 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

•

Pamela Polacek, Esquire David Klepppinger, Esquire McNees Wallace & Nurick LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166

Steven C. Gray, Esquire William R. Lloyd, Jr., Esquire Office of Small Business Advocate Suite 1102, Commerce Bldg. 300 North Second Street Harrisburg, PA 17101

Robert D. Knecht Industrial Economics Inc. 2067 Massachusetts Avenue Cambridge MA 02140

Tanya McCloskey, Esquire Office of Consumer Advocate 555 Walnut Street Forum Place, 5th Floor Harrisburg, PA 17101-1923

Michael Fiorentino, Esquire Joseph Otis Minott, Esquire Clean Air Council 135 South 19th Street, Suite 300 Philadelphia, PA 19103

Richard S. Herskovitz, Esquire Assistant Counsel Duquesne Light Co. 411 Seventh Avenue 8-2 Pittsburgh, PA 15219

Louise Knight, Esquire Joseph Malatesta, Esquire PPL Public Lighting User Group Saul Ewing LLP 2 North Second Street, 7th Floor Harrisburg, PA 17101-1604

Peter Adels, Esquire Penn Future 117 South 17th Street, Suite 1801 Philadelphia, PA 19103

Richard Rathvon, President MAPSA c/o Reliant Energy Solutions 379 Thomall Street, 5[h Floor Edison (Metro Park), NJ 08837

Tracy McCormick Executive Director MAPSA PO Box 6089 Harrisburg, PA 17112

Richard A. Kanaksie, Esquire Office of Trial Staff PA Public Utility Commission P.O. Box 3265 Harrisburg, PA 17105-3265

Mark C. Morrow, Esquire UGI Utilities Inc. 460 North Gulph Road King of Prussia, PA 19406

John L. Munsch, Esquire Allegheny Power 800 Cabin Hill Drive Greensburg, PA 15601

Michael G. Wolfe, Esquire Penn Power/Met-Ed/Pennelec 2800 Pottsville Pike P.O. Box 16001 Reading, PA 19612-6001

Thomas Niesen, Esquire Patricia Armstrong, Esquire Thomas Thomas Armstrong & Niesen 212 Locust Street, Suite 500 P.O. Box 9500 Harrisburg, PA 17108

DSH:40812.1/MID051 -158776 - 2 -

Eric J. Epstein, Esquire 4100 Hilldale Road Harrisburg, PA 17112

Kevin J. Moody, Esquire> Date: June 25, 2004

DSH:408I2.]/MID051-158776 - 3 -

Legal Departmetit

Exelon Business Services Company 2301 Market Street/ 23-1 P.O.Box 8699 Philadelphia. PA 19101-8699

Telephone 215 841-5544 Fax 215 568-3389 www.exeloncorp.com

Business Services Company

Direct Dial: (215) 841-4941

_ June 25, 2004

VTA EMAIL & FIRST CLASS MAIL Hon. Allison K. Turner Administrative Law Judge Pennsylvania Public Utility Commission 1302 Philadelphia State Office Bldg. Broad and Spring Garden Streets Philadelphia, PA 17130

Re: Pennsylvania Public Utility Commission v. PPL Electric " " • Utilities Corporation; Docket No. R-00049255

Dear Judge Turner:

PECO Energy Company ("PECO") will not be filing direct testimony in this matter, but reserves the right to file testimony in response to other parties' testimony. PECO will inform Your Honor and the parties of any additional PECO witness in accordance with the requirements established by the prehearing order.


Sincerely,

Kent D. Murphy

cc: Parties of Record James McNulty, Secretary

rn

\ 1

P213911

1 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION


V.

PPL E L E C T R I C UTILITIES CORP.



I hereby certify that I have this day served a true copy of the foregoing documents upon


by a participant).

FIRST CLASS MAIL


Paul E. Russel], Assoc. General Counsel PPL Two North Ninth Street, Allentown, PA 18101-1179




Michael W. Gang, Esquire Morgan, Ixwis & Bockius LLP 417 Walnut Street Harrisburg, PA 17101-1904


Kevin J. Moody, Esquire Wolf, Block, Schorr and Solis-Cohen, LLP 212 Locust Street, Suite 300 Harrisburg, PA 17101

f1"

David A. McCormick, Esquire . Department of the Army U U.S. Army Legal Services Agency^' 901 North Stuart Street, Room 713?' Arlington, VA 22203-1837

C3









Richard Rathvon, President MAPSA c/o Reliant Energy Solutions 379 Thomall Street, 5 t h Floor Edison (Metro Park), NJ 08837





Michael G. Wolfe, Esquire Penn Power/Met-Ed/Pen nelec 2800 Pottsville Pike P.O.Box 16001 Reading, PA 19612-6001


- 2 -

Eric J. Epstein, Esquire 4100 Hilldale Road Hamsburg, PA 17112

Date: June 25, 2004 Kent D. Murphy

- 3 -

212 Locust Street, Suite 300, Harrisburg, Pennsylvania 17101 Tel: (717) 237-7160 • Fax: (717) 237-7161 B www.WolfBlock.com

WolfBlock

Kevin J. Moody Direct Dial: (717) 237-7187 Direct Fax: (717) 237-2767 E-mait: [email protected]

June 25,2004

V I A E M A I L & F I R S T CLASS MAIL Hon. Allison K. Turner Administrative Law Judge Pennsylvania Public Utility Commission 1302 Philadelphia State Office Bldg. Broad and Spring Garden Streets Philadelphia, PA 17130

R e: Pennsylvania Public Utility Commission v. PPL Electric Utilities Corporation; Docket No. R*o6'0492g5

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,—' no CD

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Dear Judge Turner:

The Mid-Atlantic Power Supply Association ("MAPSA") will not be filing direct testimony in this matter, but reserves the right to file testimony in response to other parties' testimony. MAPSA will inform Your Honor and the parties of any additional MAPSA witness in accordance with the requirements established by the prehearing order.


Sincerely,

Kevin J. Moody For WOLF, BLOCK, SCHORR and SOLIS-COHEN LLP

KJM/jls

cc. Parties of Record James McNulty, Secretary

DSH:4156ai/MlD05!-158776

Cherry Hi l l , NJ • Harrisburg, PA • New York. NY • Nor r is town. PA • Philadelphia, PA • Roseland, NJ

WolfBlock Government Relations: Harrisburg, PA and Washington, DC Wolf, Block. Schorr and Sollj-Cohen LLP. a Pennlylvanii Limited Uabillty Partnership

Wilmington, DE

#

1 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION


V.

PPL ELECTRIC UTILITIES CORP.



I hereby certify that I have this day served a true copy of the foregoing documents upon


by a participant).

VIA EMAIL & FIRST CLASS MAIL


Paul E. Russell, Assoc. General Counsel PPL Two North Ninth Street Allentown, PA 18101-1179




DSH:40812.1/MID05t-158776

Michael W. Gang, Esquire Morgan, Lewis & Bockius LLP 417 Walnut Street Harrisburg, PA 17101-1904


Kent D. Murphy, Esquire Exelon Business Services Co. 2301 Market Street, S23-1 P.O. Box 8699 Philadelphia, PA 19101-8699

David A. McCormick, Esquire Department ofthe Army U.S. Army Legal Services Agency 901 North Stuart Street, Room 713 Arlington, VA 22203-1837

^7









Richard Rathvon, President MAPSA c/o Reliant Energy Solutions 379 Thornall Street, 5 th Floor Edison (Metro Park), NJ 08837





Michael G. Wolfe, Esquire Penn Power/Met-Ed/Pennelec 2800 Pottsville Pike P.O. Box 16001 Reading, PA 19612-6001


DSH:40812.i/MID051 -158776 - 2 -

Eric J. Epstein, Esquire 4100 Hilldale Road Harrisburg, PA 17112

Kevm J. Date: June 25, 2004

vin J. Moody, Esquire/

DSH:40812.l/MID05]-158776 - 3 -

i lk Paul fti usse l l t i , Associate General Counsel \ » 1 *

PPL O ^ v 0 0 * ' Two North Ninth Street I o**"

D o - -Allentown, PA 18101-1179 4254 Fax 610.774.6726 [email protected] • •

Tel. 610,774.4254 Fax 610.774.6726 M ppl June 25, 2004

FEDERAL EXPRESS

^ RECEIVED James J. McNulty, Esquire JU/y o 5 9 n n

Secretary 0 ^ Pennsylvania Public Utility Commission Commonwealth Keystone Building 400 North Street Harrisburg, Pennsylvania 17120

""assssssa™ Re: PPL Electric Utilities Corporation

Supplement No. 38 to Tariff -Electric Pa. P.U.C. No. 201


Dear Mr. McNulty:



Very truly yours,

Paul E. Russell

Attachment


THE PENNSYLVANIA PUBLIC UTILITY COMMISSION





PPL Electric Utilities Corporation to Interrogatories of the Office of Trial Staff, Set 21,

Question OTS-RR-18, upon the participant(s) listed below, in accordance with the


VIA FEDERAL EXPRESS





-1 -

•















- 2 -


Peter Adels, General Counsel Charley McPhedran, Senior Attorney PennFuture Suite 1801, 117 S. 17 , h Street Philadelphia, PA 19103


Richard S. Herskovitz, Esquire Duquesne Light 411 Seventh Avenue, 9 , h Floor Pittsburgh, PA 15219



Paul E. Russell

- 3 -

f n

# Paul E ^ H s s e l l

Associate Genereôunsel



[email protected]

* * 1 ' J

• a H DDI June 28, 2004

FEDERAL EXPRESS



PA PUBLIC UTILITY COMM.'Ssic? SECRETARY'S BURcAU



Dear Mr. McNulty:



Very truly yours,

Paul E. Russell

Attachment


t 9 BEFORE THE






PA PUBLIC UTIUTY COMMISSIOf SECRETARY'S BUREAU


PPL Electric Utilities Corporation to Informal Data Requests of Eric Epstein, Set II,

Questions 1 through 6, upon the participant(s) listed below, in accordance with the


VIA FEDERAL E X P R E S S





- 1 -

f #















- 2 -

9 Michael Fiorentino, Esquire Joseph Otis Minott Clean Air Council 135 S. 19 t h Street, Suite 300 Philadelphia, PA 19103


Louise A. Knight, Esquire Saul Ewing LLP Penn National Insurance Tower 2 North Second Street, 7^ Floor Harrisburg, PA 17101




RECEIVED JUN 2 8 im

PA PUBLIC UTILITY COMMiSfisnr; SECRETARY'S SurtEivj

Paul E. Russell

- 3 -

i DEPARTMENT OF THE ARMY UNITED STATES ARMY LEGAL SERVICES AGENCY

901 NORTH STUART STREET ARLINGTON VA 22203-1837

REPLY TO ATTENTION OF

Regulatory Law Office U4120

28 JUNE 2004

SUBJECT: Pennsylvania Public Utility Commission, et al vs. PPL Electric Utilities Corporation, Pennsylvania P.U.C. Docket No. R-00049255 et seq.

Hon. James J. McNulty, Secretary, Pennsylvania Public Utility Commission Commonwealth Keystone Building, 400 North Street Hamsburg, PA 17120

Dear Mr. McNulty:

F0lDfcR RECEIVED JUN 2 8 2004

PA PUBUC UTIUTY COMMISSION SECRETARY'S BUREAU

Enclosed for filing are the original and twenty copies of the prepared direct testimony and exhibits of Witnesses Kenneth L. Kincel and Thomas J. Prisco on behalf of the consumer interest of the United States Department of Defense and other affected Federal Executive Agencies in the above referenced proceeding. Also enclosed find a computer disk with a copy of these documents with text files in MicroSoft Word and other exhibit data files EXCEL.

Copies of this document are being sent in accord with the Certificate of Service. Inquiries to this office regarding this proceeding should be directed to the undersigned at (703) 696-1646.

Sincerely,

David A. McCormick General Attorney Regulatory Law Office

Printed on ® 4 Recycled Paper 9-

•

B E F O R E THE PENNSYLVANIA PUBLIC U T I L I T Y COMMISSION

In the Matter of:

Pennsylvania Public Utility Commission, et al.

v.


Docket No. R-00049255 and C0001-5

JUL 2 2 2004

Direct Testimony

of Thomas J. Prisco DOCUMENT

David A. McCormick, Attorney Regulatory Law Office

U.S. Army Legal Services Agency JALS-RL

901 N. Stuart Street, Room 713 Office of Judge Advocate General

Arlington, VA 22203-1837

RECEIVED

PUBLIC UTILITY COMMililQN SECRETARY'S BURiAU

FOR

THE UNITED STATES DEPARTMENT OF DEFENSE AND OTHER ALL FEDERAL EXECUTIVE AGENCIES

Dated: June 25, 2004 Filing Due: June 29, 2004

1 Q. WOULD YOU PLEASE STATE YOUR FULL NAME AND BUSINESS

2 ADDRESS?

3 A. My name is Thomas J. Prisco and my business address is United States Army

4 Litigation Center, JALS-RL, Suite 713, 901 North Stuart Street, Arlington,

5 Virginia 22203-1837.

6

7 Q. BY WHOM AND IN WHAT CAPACITY ARE YOU EMPLOYED?

8 A. I am employed by the Regulatory Law Office, United States Army Office of The

9 Judge Advocate General, Department ofthe Army, as a Staff Accountant and

10 Financial Advisor.

11

12 Q. PLEASE SUMMARIZE YOUR PAST WORK EXPERIENCE.

13 A. Prior to assuming my present position in October 1987,1 had been employed by the

14 United States Army Infonnation Systems Command as a Systems Accountant,

15 responsible for the development and fielding of a cost chargeback system for the

16 VIABLE Project Management Office. From 1978 to 1983,1 held various positions

17 with the United States Computer Systems Command, including Staff Accountant,

18 Chief Accounting Operations, and Contracting Officer. Prior to accepting civilian

19 employment with the Department of the Army, I held a variety of positions with RCA

20 at its Dunmore, Pennsylvania plant. I also served a tour with the United States Air

21 Force in Vietnam.

22

23 Q. PLEASE STATE YOUR EDUCATIONAL BACKGROUND.

1 A. I received a Bachelor of Science degree with a major in accounting from the

2 University of Scranton. I've attended numerous professional development courses

3 which include Price and Cost Analysis, U.S. Army Financial Management, and

4 Computer Performance and Capacity Management. I have also attended numerous

5 Regulatory Studies Programs and seminars.

6

7 Q. WHAT ARE THE RESPONSIBILITIES AND DUTIES ASSOCIATED WITH

8 YOUR PRESENT POSITION?

9 A. As Staff Accountant and Financial Advisor with the Regulatory Law Office, I analyze

10 testimony, exhibits, and supporting data submitted by utilities to regulatory bodies in

11 justification of rate increases/decreases; advise office attorneys in accounting matters;

12 draft proposed cross-examination of company witnesses; prepare statements and

13 exhibits for use in regulatory proceedings; and present testimony before utility

14 commissions to protect the consumer interests of the Federal Government.

15

16 Q. HAVE YOU PREVIOUSLY TESTIFIED IN RATE PROCEEDINGS BEFORE

17 REGULATOY COMMISSIONS?

18 A. Yes. I participated in numerous regulatory proceedings in the states of Arizona,

19 Florida, Georgia, Indiana, Kansas, Kentucky, Maryland, Missouri, New Jersey, New

20 York, North Carolina, Pennsylvania, South Carolina, Texas plus the District of

21 Columbia. I have also participated in proceedings before the FERC and ICC. These

22 proceedings involved gas, electric, water, wastewater, telephone, and railroad. A list

1 of the various proceedings in which I have filed testimony is outlined on DOD

2 Exhibit TJP-9.

3

4 Q. WOULD YOU OUTLINE THE SUBJECT MATTER OF THE EXPERT

5 TESTIMONY YOU HAVE PRESENTED BEFORE REGULATORY

6 COMMISSIONS?

7 A. My testimony has addressed the overall revenue requirements, depreciation, capital

8 structure, cost of capital, valuation, integrated resource planning, rate design,

9 incentive rates, rate base and appropriate tariffs of communications, electric, gas, and

10 water utilities.

11

12 Q. WHO ARE YOU REPRSENTING IN THIS PROCEEDING?

13 A. I am presenting testimony on behalf of the consumer interest of the Department of

14 Defense and all Other Federal Executive Agencies (hereinafter called "DOD")- The

15 Secretary of Defense has been delegated authority by the General Services

16 Administration to provide representation of the consumer interest of federal civilian

17 agencies in this proceeding.

18

19 Q. WHAT IS THE PURPOSE OF YOUR DIRECT TESTIMONY IN THIS

20 PROCEEDING?

21 A. The magnitude of PPL Electric Utilities Corporation proposed rates warrants

22 intervention to protect the consumer interests of the Federal government. My purpose

23 is to review PPL's rate base filing for its electric operations and provide

1 recommendations to the Pennsylvania Public Utility Commission (PPUC or

2 Commission) that may help mitigate the impact on the DOD. In order to develop my

3 recommendations, I reviewed the prefiled testimony and exhibits of the Company; the

4 responses to data request submitted by the Office of Trial Staff, the Office of

5 Consumer Advocate, and other parties. I believe my testimony identifies a number of

6 legitimate base rate adjustments that the Commission may wish to consider.

7

8 Q. PLEASE SUMMARIZE YOUR TESTIMONY IN THIS PROCEEDING.

9 A. My testimony demonstrates that the base rate increase of $164,438,000 is overstated

10 and should be reduced. My review of the Company's filing indicates that a revenue

11 increase of no more than $131,574,000 may be authorized. It should be noted that

12 because of limited time and resources a comprehensive analysis of all phases of the

13 Company's operation could not be accomplished at this time. Therefore, items not

14 specifically addressed in this filing does not constitute an endorsement of

15 PPL's position.

16

17 Q. HOW DID YOU ARRIVE AT YOUR RECOMMENDED REVENUE

18 RECOMMENDATION?

19 A. My revenue requirement recommendation is supported by a number of operating

20 income adjustments and a $64M reduction of the Company's Proposed Measure of

21 Value for the Future Test Year. In quantifying my revenue requirement

22 recommendation I used the return on equity (ROE) for PPL electric found reasonable

23 by DOD witness Mr. Kenneth L. Kincel Of 10.75%.

1 Q. MR. PRISCO, PLEASE LIST THE BASE RATE ADJUSTMENTS YOU ARE

2 RECOMMENDING IN YOUR DIRECT TESTIMONY.

3 A. Recommended adjustments to PPL's filing are listed below:

4 Operating Income Adjustments

5 • Adjustment to PPL's pro forma unbilled revenues.

6 • Adjustment to social programs.

7 • Adjustment to remediation work.

8 • Adjustment to injuries and damages.

9 • Adjustment to self funded health insurance.

10

11 Q. WHAT IS THE OVERALL RATE OF RETURN AND THE

12 CAPITALIZATION YOU ARE UTILIZING IN THIS PROCEEDURING?

13 A. I made no adjustment to the capitalization proposed by the Company. However, in

14 determining the overall cost of capital, as previously stated, I used the return on

15 equity (ROE) recommended in the testimony of DOD witness Mr. Kenneth Kincel of

16 10.75%. The utilization of PPL's capitalization and DOD's ROE results in an overall

17 rate of return of 8.46%. The calculation of the overall cost of capital is provided on

18 DOD Exhibit TJP- 2. DOD Exhibit TJP-1 provides the calculation of net operating

19 revenues required by PPL of $150,424,000 (line 5).

20

21

22 Q. WHY DO YOU BELIEVE AN ADJUSTMENT TO THE COMPANY'S

23 "UNBILLED REVENUES" IS NECESSARY?

1 ' A. The Company eliminated $2,395,000 of unbilled revenues from the test year. I

2 believe this is not appropriate since the Company is using a future test period which

3 utilizes estimated budget figures to determine revenues, expenses, plant additions.

4 The Company's estimate of unbilled revenues should be as accurate as any ofthe

5 other estimates used in the future test period and should be included in revenues.

6 The elimination of unbilled revenues creates a mismatch between revenues and

7 expenses for the accounting period. PPL reports unbilled revenues through the end of

8 an accounting period for financial and tax purposes. They are only eliminated for

9 regulatory purposes only. DOD Exhibit TJP-4 reverses the revenue effect of the

10 Company's adjustment to unbilled revenues.

11

12 Q. WHAT ADJUSTMENT ARE YOU RECOMMENDING TO THE

13 COMPANY'S PRO FORMA SOCIAL PROGRAMS ADJUSTMENT?

14 A. I have made two adjustments to the social costs requested by PPL. I have eliminated

15 the customer supplied funding for the Sustainable Energy Fund and the Community

16 Betterment Initiative.

17

18 Q. WHY HAVE YOU ELIMINATED PPL'S REQUEST FOR $1,000,000 IN

19 FUNDS FOR THE "COMMUNITY BETTERMENT INITIATIVE?"

20 A. The Company and its customers are already supporting a number of conservation

21 oriented social programs to help lower income individuals pay electric billings or help

22 them to lower their billings. A customer should have the opportunity to support

23 whatever charitable or social program the customer believes is worthwhile. Including

1 social programs in the electric distribution costs of service upon which rates are based

2 forces ratepayers to support programs the Company believes are beneficial. The

3 Company and its shareholders are certainly at liberty to fund any new programs. I

4 have eliminated the customer funded portion for this new social program from the

5 overall cost of the utility. (DOD Exhibit TJP-5).

6

7 Q. PLEASE EXPLAIN WHY YOU HAVE ELIMINATED THE FUNDING FOR

8 THE SUSTAINABLE ENERGY FUND (SEF)?

9 A. The Department of Defense and the Other Federal Executive Agencies support life-

10 cycle cost effective conservation measures as described in Executive Order 13123,

11 Sec 203 (published in Federal Register on June 8,1999 (FR Vol. 64, 109). The

12 programs currently being undertaken by PPL have not been shown to meet these

13 criteria and should be eliminated.

14

15 Q. MR. PRISCO, DO YOU HAVE FURTHER REASONS FOR ELIMINATING

16 THE FUNDING PROVIDED FOR THE SEF?

17 A. Yes. There presently appears to be adequate funding accrued by PPL available for

18 the SEF to sustain its current rate of operation for several years. Eliminating

19 prospective excess funding of the SEF could help mitigate a little ofthe impact of the

20 current rate increase. DOD Exhibit TJP-5

21

1 Q. WHY HAVE ARE YOU ELIMINATING $3,025,000 FOR REMEDIATION

2 WORK AT VARIOUS LOCATIONS OWNED OR FORMERLY OWNED BY

3 PPL?

4 A. PPL's response to Office of Trial Staff interrogatory OTS-RE-144 states:

5 In 2003, PPl Electric reviewed the estimated cost of site remediation, including 6 Superfund sites, substations and pole sites, former coal gas manufacturing 7 facilities and former generating facilities. The estimated future site remediation 8 costs exceeded the loss contingency that previously had been accrued by $3,025 9 million. Therefore, based on AFAS 5 guidance, that amount was charged to

10 income to bring the loss contingency to the proper level.

11 Current ratepayers should not have to incur the brunt of these remediation expenses.

12 First of all it should be determined if ratepayers are responsible for the

13 remediation cost. Some of these sites date back to the 1800's. The Company has

14 sold some of the properties and may still be held responsible. However if the

15 Company made a profit on these sales, the profit should be used to mitigate the cost

16 of any remediation expense. The Company also claims in their response to OTS-

17 RE-146 that the distribution operations rather than generation was responsible for

18 the remediation because it was more related to the distribution operations. Unless

19 this determination is made by the Commission it should not automatically be

20 adopted. It would appear that manufacturing of gas would be more similar to

21 generating electricity than transporting an end product. If it is ultimately

22 determined that these costs should be bom by the distribution customers the costs

23 should be amortized over several years, considering the fact that the problem has

24 existed in some cases over 100 years. See DOD Exhibit TJP-6.

25

26 Q. WHY HAVE YOU MADE AN ADJUSTMENT TO THE COMPANY'S

1 INJURIES AND DAMAGES ESTIMATE?

2 A. The Company's response to Office of Trial Staff interrogatory OTS-RE-100 identifies

3 Claims in 2003 of $1,169,000 and in 2004 of $1,517,000. I believe that the

4 historical amount from 2003 would be appropriate because it is based on historical

5 data and not on speculation. The Company will have fewer employees which should

6 actually reduce the cost from the previous year. I have reduced the companies

7 injuries and damages estimate by $368,000 to the 2003 actual level. See DOD

8 Exhibit TJP-7.

9 Q. MR. PRISCO PLEASE EXPLAIN YOUR ADJUSTMENT TO PPL'S SELF

10 FUNDED HEALTH INSURANCE PROGRAMS?

11 A. The Self Funded Health Insurance Programs have been accumulating a large reserve

12 over the past few years. The Company's response to the Office of Consumer

13 Advocate Interrogatory No. 31 identifies a liability reserve of $3,573,000 at the end

14 of 2004. I am recommending that $3,000,000 of that amount be returned to

15 ratepayers and amortized over a three year period. This will reduce the current

16 annual accrual for the self funded health insurance programs by $1,000,000. See

17 DOD Exhibit TJP-8.

18

19 Q. PLEASE EXPLAIN YOUR ADJUSTMENT TO THE COMPANY'S

20 PROPOSED MEASURES OF VALUE.

21 A. PPL included in the test year the total of all capital additions estimated in its future

22 test year budget. I recommend that only the average or one half of the new additions

23 be allowed. This is based on the principle that only about half of the additions will be

1 used and usefully for providing service to the test year number of customers.

2 Therefore, I have eliminated $64,684,000 from the Company's measures of value on

3 DOD Exhibit TJP-3.

6 Q. PPL IS REQUESTING THE COMMISSION APPROVE A DISTRIBUTION

7 SYSTEM IMPROVEMENT CHARGE (DSIC) WHICH WOULD PROVIDE A

8 MECHANISM THAT WOULD ALLOW THE COMPANY TO RECOVER,

9 BETWEEN FORMAL RATE CASES, THE CARRYING COSTS ON

10 CERTAIN CAPITAL INVESTMENTS IN DISTRIBUTION FACILITES. DO

11 YOU AGREE WITH THE COMPANY'S RECOMMENDATION?

12 A. No. Allowing the Company to adjust one specific element of a rate proceeding

13 results in single issue ratemaking. Plant in service should match a predicted level of

14 customers to be served during the period rates will be in effect. Adding plant and not

15 adjusting the level of customers and/or other items addressed during a rate proceeding

16 creates an imbalance between all the elements that were considered during a fully

17 litigate rate proceeding. All the various rate items were taken together to produced a

18 rate that was considered to be fair and equitable by the Commission. The DISC

19 mechanism would create an imbalance by adjusting only one element of many and it

20 should be rejected by the Commission.

21

22 Q. MR. PRISCO DOES THIS CONCLUDE YOUR TESTIMONY?

23 A. Yes.

10

AFFIDAVIT OF THOMAS J . PRISCO

COUNTY OF ARLINGTON

COMMONWEALTH OF VIRGINIA SS:

Before me, the undersigned Notary Public i n and f o r the County of A r l i n g t o n , Commonwealth of V i r g i n i a , t h i s day p e r s o n a l l y appeared Thomas J. Prisco, Systems Accountant, U.S. Army Legal Services Agency, t o me p e r s o n a l l y known, who st a t e d under oath t h a t the foregoing d i r e c t testimony and e x h i b i t s were prepared by him or under h i s d i r e c t s upervision and c o n t r o l ; t h a t he has knowledge of the matters set f o r t h i n sa i d testimony and e x h i b i t s ; and th a t such matters are t r u e and c o r r e c t to the best of h i s knowledge, i n f o r m a t i o n , and b e l i e f .

Subscribed and sworn t o before me t h i s 25th day of June, 2004, i n the County of A r l i n g t o n , Commonwealth of V i r g i n i a .

CL Notary Public

My Commission Expires:

B E F O R E THE PENNSYLVANIA PUBLIC U T I L I T Y COMMISSION

In the Matter of:

Pennsylvania Public Utility Commission, et al.

v.


Docket No. R-00049255 and C0001-5

Exhitits

of Thomas J . Prisco

David A. McCormick, Attorney Regulatory Law Office

U.S. Army Legal Services Agency JALS-RL

90i N. Stuart Street, Room 713 Office of Judge Advocate General

Arlington, VA 22203-1837

FOR

THE UNITED STATES DEPARTMENT OF DEFENSE AND OTHER ALL FEDERAL EXECUTIVE AGENCIES

Dated: June 25, 2004 Filing Due: June 29, 2004

DOD EXHIBIT TJP-1

PPL ELECTRIC UTILITIES CORPORATION CALCULATION OF REVENUE REQUIREMENT

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2004

1 PPL Measures of Value $1,842,744

2 DOD Adjustment to Plant in Service (64,684)

3 Adjusted Measures of Value $1,778,060

4 Rate of Return (DOD Exhibit TJP-2) 8.46%

5 Operating Income Required (line 3 * line 4) $150,424

DOD Revenue Adjustments 6 Unbilled Revenues (DOD Exhibit TJP-4) $2,395 7 Social Programs (DOD Exhibit TJP-5) 4,689 8 Remediation Work (DOD Exhibt TJP-6) 3,025 9 Injuries and Damages (DOD Exhibit TJP-7) 348

10 Self Funded Health Insurance (DOD Exh TJP-8) 1,000 $11,457 11 Tax Adjusted (line 10 * .451686) (5,175)

12 DOD Revenue Adjustment $6,282

13 PPL T&D Revenue at Present Rates 71,998

14 Total Operating Revenue $78,280

15 Operating deficiency (line 5 - line 14) $72,144

16 Conversion Factor 54.83%

17. Revenue requirement (line 15 / line 16) $131,574

DOD/FEA EXHIBIT TJP-2

PPL ELECTRIC UTILITIES CORPORATION CALCULATION OF COST OF CAPITAL

AS OF DECEMBER 31, 2004

PPL CAPITALIZATION WEIGHTED COST Electric CAPITALIZATION RATIOS RATE OF CAPITAL

A B C D E

1 Long Term Debt $1,362.5 51.30% 6.44% 3.30% 2 Preferred Stock 48.7 1.83% 6.19% 0.11% 3 Common Equity 1,244.7 46.87% 10.75% 5.04%

4 TOTAL $2,655.9 100.00% 8.46%

•


PPL ELECTRIC UTILITIES CORPORATION ADJUSTMENT TO PPL ELECTRIC PLANT IN SERVICE

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003 (Thousands of Dollars)

1 Projected 2004 Capital Buget for Electric Utilities and Facilities Management $167,459

2 PPUC Jurisdictional 129,168

3 DOD Average Plant in Service (line 2 / 2) $64,584

4 DOD Adjustment to Measures of Value ($64,684)


PPL ELECTRIC UTILITIES CORPORATION ADJUSTMENT TO PPL PRO-FORMA UNBILLED REVENUES RECOMMENDATION


1 PPL Adjustment for Unbilled Revenues ($2,395)

2 Eliminate PPL Adjustment for Unbilled Revenues

3 DOD Adjustment to PPL Pro Forma Revenues $2,395


PPL ELECTRIC UTILITIES CORPORATION ADJUSTMENT TO PPL PRO-FORMA SOCIAL PROGRAMS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2004

(Thousands of Dollars)

1 PPL Adjustment for Social Programs $4,776

2 Eliminate Community Betterment Initiative (1,000)

3 Elimination of the Sustaninable Energy Fund Requirement (3,689)

4 DOD Recommended Expense Adjustment $87

5 Adjustment to Pro Forma Social Programs $4,689



PPL ELECTRIC UTILITIES CORPORATION ADJUSTMENT FOR REMEDIATION WORK


1 PPL Cost of Remediation Expense $3,025

2 Recommended Amount 0

3 Adjustment for Remediation Expenses (3,025)



PPL ELECTRIC UTILITIES CORPORATION ADJUSTMENT FOR INJURIES AND DAMAGES


1 PPL O&M Expense Claims for Injuries and Damages Future Test Year $1,517

2 PPL O&M Expense Claims for Injuries and Damages Historic Test Year 1,169

3 Adjustment for Remendation Expenses ($348)

4 DOD Adjustment to PPL Pro Forma Revenues $348


PPL ELECTRIC UTILITIES CORPORATION ADJUSTMENT TO PPL SELF FUNDED HEALTH INSURANCE PROGRAMS


1 PPL Funding for Self Funded Health Insurance Programs $18,838

2 DOD Recommended Adjustment (Excess Reserve $3M / 3 Year Amortization) (1,000)

3 PPL Accrual Amount $17,838


PROCEEDING APPEARANCES OF THOMAS J. PRISCO BEFORE

REGULATORY TRIBUNALS

DOD Exhibit TJP-9 Page 1 of 6

COMPANY PROCEEDING JURISDICTION ACTION SUBJECT

MOUNTAIN STATES TELEPHONE AND TELEGRAPH COMPANY

Docket No. E-I051-88-146

ART/ONA TESTIMONY Revenue Requirements

TUCSON EI ECTRIC POWER COMPANY Docket No. U1993-90-270

ARIZONA SETTLEMENT NEGOTIATION

Assist Counsel

TUCSON ET ECTRIC POWER COMPANY Docket No. U1933-95-317

ARIZONA SETTT EMENT NEGOTIATION

Assist Counsel

POTOMAC ET ECTRIC POWER COMPANY

Case No. 912 DISTRICT OF COLUMBIA

TESTIMONY Revenue Requirements


Case No. 929 DISTRICT OF COLUMBIA

TESTIMONY Revenue Requirements

INVESTIGATION OF ALTERNATIVE POWER POOLING SOLUTIONS

Docket No. RM 94-20-000

F.E.R.C. TESTIMONY Wholesale Transmission

NOI, PROPOSED RUT F MAKING, CAPACITY RESER-VATION, OPEN ACCESS TRANSMISSION TARIFFS


F.E.R.C. TESTIMONY Comments Rate Design

RECOVERY OF STRANDED COSTS BY PUBLIC AND TRANSMITTING UTILITIES


F.E.R.C. TESTIMONY Electric Deregulation

UNITED GAS PIPELINE COMPANY (KOCH)

Docket No. RS-92-26-000

F.E.R.C. SH1TI EMENT NEGOTIATION

Assist Counsel

DEMAND SIDE OPTIONS AND CONSERVATION RULES

Docket No. 900834-EI

FLORIDA TECHNICAL ASSISTANCE

Assist Counsel

ATLANTA GAS LIGHT COMPANY Docket No. 4451-U GEORGIA TESTIMONY Revenue Requirements





ECONOMIC DEVELOPMENT INCENTIVE POLICY (GAS, ELECTRIC, TELECOMMUNICATIONS)

Docket No. 4697-U GEORGIA TESTIMONY Rate Design

NOI, NATURAL GAS COMPETITION AND DEREGULATION ACT OF 1997 FILING REQUIREMENT

Docket No. 7656-U GEORGIA TESTIMONY Comments Rate Design

UNITED CITIES GAS COMPANY Docket No. 4188-U GEORGIA TESTIMONY Revenue Requirements

WHEELING & LAKE ERIE RAILROAD COMPANY, LINE ABANDONMENT

Docket No. AB-277 (Sub No. 2X)

LC.C. Settled, Prepared Valuation Study

Assist Counsel

INDIANAPOLIS POWER AND LIGHT COMPANY

Case no. 39,938 INDIANA TESTIMONY Revenue Requirements

KANSAS GAS SERVICE A DIVISION OF ONEOK, INC.

KCC Docket No. 03-KGSG-602-RTS

KANSAS TESTIMONY Revenue Requirements

SOUTHERN STAR CENTRAL GAS PIPELINE, INC.

KCC Docket No. 99-GIMG-068-GIG

KANSAS SETTLEMENT Ad Valorem Tax Refunds

LOUISVILLE Gas & Electric Docket No. 2003-00433

KENTUCKY TESTIMONY PENDING

Revenue Requirements

LOUISVILLE GAS AND ELECTRIC COMPANY

Case No. 2000-080 & 2000-137

KENTUCKY TESTIMONY * Rate Design





LOUISVILLE GAS AND ET ECTRIC COMPANY

Case No. 10,064 KENTUCKY TESTIMONY Revenue Requirements

BALTIMORE GAS AND ELECTRIC COMPANY

Case No. 8190 MARYLAND TESTIMONY Revenue Requirements

BALTIMORE GAS AND ET ECTRIC COMPANY

Case No. 8278 MARYLAND SETTLEMENT NEGOTIATION

1




BALTIMORE GAS AND ELECTRIC COMPANY

Case No. 8697 MARYLAND TESTIMONY ±



Case No. 8780 MARYLAND TESTIMONY SETTLEMENT

. 1



Case No. 8794 MARYLAND TESTIMONY SE1TLEMENT



Case No. 8829 MARYLAND TESTIMONY Revenue Req ROR Rate Design

BALTIMORE GAS AND ET ECTRIC COMPANY MERGER WITH POTOMAC ELECTRIC POWER CO.

Case No. 8725 MARYLAND TESTIMONY 2

Revenues and Rate Design

COMMISSION'S INQUIRY INTO PROVISION AND REGULATION OF ELECTRIC SERVICE

Case No. 8738 MARYLAND TESTIMONY Comments, Assist Counsel





INVESTIGATION OF ET ECTRIC SERVICE COMPETITION AND REGULATORY POLICIES

Case No. 8678 MARYLAND TESTIMONY Electric Deregulation




Case No. 8466 MARYLAND SETTT EMENT NEGOTIATION

Assist Counsel



Assist Counsel



Assist Counsel

WASHINGTON GAS LIGHT COMPANY


WASHINGTON GAS LIGHT COMPANY Case No. 8959 MARYLAND TESTIMONY n Revenue Requirements SOUTHWESTERN BELL TELEPHONE

COMPANY Case No. TC 89-14

MISSOURI TESTIMONY _ i


JERSEY CENTRAL POWER AND LIGHT COMPANY

BRC Docket No. ER 89110912J.

NEW JERSEY TESTIMONY i i


NEW JERSEY AMERICAN WATER COMPANY

BRC Docket No. WR92090908J

NEW JERSEY TESTIMONY Revenue Requirements

NEW JERSEY AMERICAN WATER COMPANY

BRC Docket No. WR 91081399J

NEW JERSEY SETTLEMENT NEGOTIATION

_ i

Assist Counsel

NIAGARA MOHAWK POWER Case Nos. NEW YORK TESTIMONY Revenue




COMPANY PROCEEDING JURISDICTION ACTION S U B J E C T

CORPORATION 94-E-0098; 94-E-0099, and 94-E-100

Requirements and Price Caps

NIAGARA MOHAWK POWER CORPORATION

Docket Nos. 96-E-0134 and 135

NEW YORK TESTIMONY ^ Revenue Requirements INVESTIGATION OF SELF GENERATION

AND ECONOMIC INCENTIVE RATES RULE MAKING

Docket No. E-100 (Sub 73)

NORTH CAROLINA

TESTIMONY Rate Design

INVESTIGATION INTO EI ECTRIC POWER COMPETITION

Docket No. 1-94-0032

PENNSYLVANIA TESTIMONY Electric Deregulation

PENNSYLVANIA POWER AND LIGHT COMPANY


PENNSYLVANIA TESTIMONY ^ Revenue Requirements PENNSYLVANIA POWER AND LIGHT

COMPANY, RET ATT, ACCESS PILOT PROGRAM

Docket No. P-00971183

PENNSYLVANIA TESTIMONY Comments, Assist Counsel

PG ENERGY Docket No. R 0098-4280

PENNSYLVANIA TESTIMONY Revenue Requirements Settlement

PENNSYLVANIA POWER AND LIGHT COMPANY, RESTRUCTURING PROCEEDING


PENNSYLVNAIA TESTIMONY Revenue Requirements

ENERGY POLICY ACT OF 1992 SECTION 115 CONSERVATION EFFORTS OF GAS UTILITIES

Docket No. 83-730-G

SOUTH CAROLINA

TESTIMONY Demand Side Management

INTEGRATED RESOURCE PLANNING Docket No. SOUTH TESTIMONY Demand Side





RULE MAKING FOR GAS UTILITIES

91-677-G CAROLINA Management

EL PASO ELECTRIC COMPANY Docket No. 12,700 TEXAS TESTIMONY Revenue Requirements

Documents

Paul ssell ounsel ppl - PUC · 2015. 8. 1. · Paul Associate Gen ssell ounsel PPL Two North Ninth Street Allentown, PA 18101-1179 Tel. 610.774.4254 Fax 610.774.6726 [email protected]