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PA Bulletin, Doc. No. 03-1766

NOTICES

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Cancellation Order

[33 Pa.B. 4524]

Public Meeting held
August 21, 2003

Commissioners Present:  Terrance J. Fitzpatrick, Chairperson; Robert K. Bloom, Vice Chairperson; Aaron Wilson, Jr.; Glen R. Thomas; Kim Pizzingrilli

Essential.com, Inc. Letter-Application to Abandon EGS License; A-110120

Cancellation Order

   Now before the Commission is a July 1, 2003, letter filed by Essential.com, Inc. (Essential) requesting that its electric generation supplier (EGS) license be abandoned. The letter states that Essential filed for bankruptcy relief in the United States Bankruptcy Court for the District of Massachusetts on June 29, 2001. Shortly thereafter, Essential ceased all EGS operations. Consequently, Essential requests to have its EGS license cancelled. We will treat this correspondence as an abandonment application. We note that by order entered October 29, 2002, the Commission cancelled Essential's authority to provide telecommunications services at A-310853 for failure to file its 2000 Annual Report. In addition, by order entered November 25, 2002, the Commission cancelled Essential's natural gas supplier (NGS) license at A-125024 for failure to file its 2001 Annual Report. The EGS license, which is the subject of this order, is the only remaining authority granted by the Commission to Essential.

   A brief recitation of the history of Essential's EGS license is in order. On August 10, 1999, Essential filed an application for a license. The application was approved and a license granted by Commission order entered January 13, 2000. On February 8, 2001, Essential filed a petition to reduce the amount of its security bond from $250,000 to 10% of its gross receipts. By order entered March 23, 2001, the Commission denied the petition and directed Essential to maintain its bond level of $250,000. Essential filed for bankruptcy shortly after the March 23, 2001, denial, and ceased doing business as an EGS in this Commonwealth.

   Additionally, an investigation by Commission staff found that Essential has no filing history with the Department of Revenue with regard to its gross receipts taxes and has not reported its gross receipts to the Commission on a quarterly basis. Commission records also show that Essential owes $5,653 for its 2001 Annual Assessment. A proof of claim was not filed to recover the $5,653 assessment, because at the time of the bankruptcy filing the debt was not owed. The assessment bill was dated August 17, 2001, making the debt a post-petition debt, not recoverable through the bankruptcy proceeding. Once Essential filed for bankruptcy, it no longer provided any EGS services.

   By letter dated June 26, 2003, Commission staff contacted Essential's attorney seeking information regarding Essential's bankruptcy status and confirmation whether Essential had ceased doing business in this Commonwealth. By response dated July 1, 2003, Essential's attorney confirmed that Essential had indeed filed for Chapter 11 bankruptcy in June 2001 and had ceased all operations regarding its EGS license in this Commonwealth. In essence, the July 1, 2003, letter requested that the Commission grant abandonment of Essential's EGS service and cancel its EGS license.

   Because Essential is no longer operating as an EGS, we find no valid reason to deny Essential's request to abandon service and cancel its EGS license at A-110120. We will however, direct the Bureau of Administrative Services' Fiscal Office to refer the outstanding assessment amount of $5,653 to the Office of Attorney General for collection as they deem appropriate. We take this action because Essential filed for bankruptcy under Chapter 11 reorganization. Should Essential emerge from bankruptcy and decide to again provide services in this Commonwealth, payments of outstanding amounts due to the Commonwealth should be a condition of receiving any certificate or license; Therefore,

It Is Ordered That:

   1.  The letter-application to abandon filed by Essential.com, Inc., dated July 1, 2003, is hereby granted.

   2.  The EGS license held by Essential.com at A-110120 is hereby cancelled.

   3.  The Secretary strike the name of Essential.com, Inc. from all active-utility lists maintained by the Annual Report Section of the Secretary's Bureau and the Assessment Section of the Bureau of Administrative Services.

   4.  Notice of this Cancellation Order shall be published in the Pennsylvania Bulletin.

   5.  The Bureau of Administration Services' Fiscal Office is hereby directed to write off the outstanding assessment of $5,653 and refer that obligation to the Office of Attorney General for collection.

JAMES J. MCNULTY,   
Secretary

[Pa.B. Doc. No. 03-1766. Filed for public inspection September 5, 2003, 9:00 a.m.]


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