NOTICES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
Biennial Report to the General Assembly and Governor Pursuant to Section 1415; Doc. No. M-00041802F0003
[36 Pa.B. 4414]
[Saturday, August 5, 2006]Public Meeting
held July 20, 2006Commissioners Present: Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson; Bill Shane; Kim Pizzingrilli; Terrance J. Fitzpatrick
Final Order By The Commission:
On March 22, 2006, the Commission entered a Tentative Order seeking comments to its initial proposal for the content of the Biennial Report to the General Assembly and the Governor pursuant to Section 1415. The Tentative Order was published in the Pennsylvania Bulletin on April 8, 2006. Comments were sought by May 8, 2006, and Reply Comments were sought by May 23, 2006.
The primary purpose of the Final Order is to establish the data collection methods and data elements that the Commission will require on an interim basis from the utilities for the purpose of evaluating the effect of the implementation of Chapter 14 on residential collections as required by 66 Pa.C.S. § 1415. Second, this Order will set forth our proposals for the content of the Commission's Biennial Report as also required by § 1415.
BACKGROUND On November 30, 2004, Governor Edward G. Rendell signed into law SB 677, now known as Act 201. This Act went into effect on December 14, 2004. The Act amended Title 66 by adding Chapter 14 (66 Pa.C.S. §§ 1401--1418) (Responsible Utility Customer Protection). The legislation is applicable to electric distribution companies, water distribution companies and larger natural gas distribution companies (those having annual operating income in excess of $6 million).
Chapter 14 of Title 66 imposes requirements on the Commission at § 1415 pertaining to reporting to the General Assembly and the Governor every two years. The first report is due no later than December 14, 2006 and the final report is due in December, 2014. The reports are to review the implementation of the provisions of Chapter 14 and include, but are not limited to:
1. The degree to which the Chapter's requirements have been successfully implemented.
2. The effect upon the cash working capital or cash flow, uncollectible levels and collection of the affected public utilities.
3. The level of access to utility services by residential customers including low-income customers.
4. The effect upon the level of consumer complaints and mediations filed with and adjudicated by the Commission. (Mediations are currently known as payment arrangement requests under § 1415.)
Chapter 14 directs public utilities affected by the Chapter to provide data, as required by this Commission, to complete the reports. The Commission's report may also contain recommendations to the Governor and the General Assembly about legislative or other changes which the Commission deems appropriate.
The provisions of Chapter 14 generally apply to electric, water, and natural gas distribution utilities under § 1403. Chapter 14 includes the Philadelphia Gas Works, a city natural gas distribution operation, within the category of natural gas distribution utilities. The category specifically excludes natural gas distribution utilities with operation revenues of less than $6 million per year except where the public utility voluntarily petitions the Commission to be included or where the public utility seeks to provide natural gas supply services to retail gas customers outside its service territory. Natural gas distribution utilities that are not connected to an interstate gas pipeline are similarly excluded from the provisions of Chapter 14 under § 1403.
On March 22, 2006 the Commission entered a Tentative Order at this Docket for the purpose of evaluating the impact of implementing Chapter 14. In the Tentative Order, the Commission proposed to require larger utilities to provide more information than smaller utilities in recognition of resource restriction that smaller utilities are more likely to face. Specifically, we proposed that larger utilities be required to fully comply with the data reporting requirements while smaller utilities are required to report only a limited number of collection data variables. We proposed that larger utilities, subject to full reporting to the Commission pursuant to § 1415, are electric, gas and water distribution utilities with annual operating revenues greater than or equal to $200 million. The electric distribution utilities that would be subject to the Chapter 14 evaluation reporting requirements using this criterion are Allegheny Power Company, Duquesne Light Company, Metropolitan Edison Company, PECO Energy Company, Pennsylvania Electric Company, Penn Power Company and PPL Electric Utilities. The natural gas distribution utilities that would be subject to the Chapter 14 evaluation reporting requirements as proposed are Columbia Gas Company, Dominion Peoples, Equitable Gas Company, National Fuel Gas Distribution Corporation, PECO Energy Company, PG Energy Company, Philadelphia Gas Works and UGI Utilities. The water distribution utilities that would be subject to the Chapter 14 evaluation reporting requirements are Aqua Pennsylvania, Inc. and Pennsylvania American Water Company.
The Commission proposed that the smaller utilities covered by Chapter 14 are required to report only a limited number of residential collection data variables. This abbreviated list of collection variables includes the number of residential customers, annual residential billings, annual gross residential write-offs, the number of terminations and the number of reconnections. However, we asked all of the smaller companies to review the full list of collection data variables and provide comments on their ability to provide the data on a variable by variable basis.
REPORT CHAPTERS 1. Degree to Which the Requirements of Chapter 14 Have Been Successfully Implemented
The first area that the Commission is to report to the General Assembly and the Governor is the degree to which the Chapter's requirements have been successfully implemented. The Commission's initial proposal was that we provide a summary of the implementation of the Chapter 14 proceedings by both the Commission and the utilities. We also proposed to report on the deficiencies and violations of the utilities in the implementation of the Act. Finally, we proposed to survey Protection From Abuse agencies to determine the impact of Chapter 14 on that customer segment.
2. Residential Collections
The second area that the Commission is to report to the General Assembly and the Governor is the effect the Chapter has on cash working capital or cash flow, uncollectible levels and residential collections of the affected utilities. The Commission sought comments on five collection data issues associated with the utility collection reporting requirements including the content of the list of collection data variables to be included under the reporting requirements, the frequency of utility reporting under the reporting requirements, the periodicity1 of the reporting on a variable by variable basis, the accounting protocol on a variable by variable basis, the due dates for the utility reporting under the reporting requirements, and the number of years of collection data to be included in the first Biennial Report.
3. Level of Access to Utility Service
The third area that the Commission is to report to the General Assembly and the Governor is the impact that Chapter 14 has had on the level of access to utility services by residential customers, including impacts on low income customers. In the Tentative Order, the Commission indicated that it receives limited information that pertains to termination from utilities through the annual Cold Weather Survey (CWS) pursuant to our regulations at 52 Pa. Code § 56.100. The Commission sought comments about the effectiveness of the CWS to assist in measuring access to utility service. We opined that there may be several potential measures of access to utility service that are not currently reported to, or gathered by, the Commission that may be relevant. We sought comments on whether the Chapter 14 evaluation should consider implementing these new measures.
4. Effect on the Level of Consumer Complaints and Payment Arrangement Requests Filed and Adjudicated with the Commission
The fourth area that the Commission is required to report to the General Assembly and the Governor is the effect of Chapter 14 on the level of consumer complaints and payment arrangement requests filed and adjudicated with the Commission. In the Tentative Order, the Commission stated that it can readily provide data including the number of consumer complaints, the number of payment arrangement requests, the number of non-CAP (Customer Assistance Program) customers turned away from the Commission seeking a payment arrangement request, the number of CAP customers who were denied a payment arrangement by the Commission, the number of payment arrangement requests that the Commission took in but dismissed without a decision for payment terms and the number of customers who made a payment agreement with the Commission that were under a Protection From Abuse Order (PFA). We sought comments about these and other ways to measure the effect on the level of consumer complaints and payment arrangement requests filed and adjudicated with the Commission.
Written comments were filed by the following interested parties: Energy Association of Pennsylvania (EAPA); Office of Consumer Advocate (OCA); a joint filing from Community Legal Services, Inc. and Pennsylvania Utility Law Project (CLS/PULP); Duquesne Light Company (Duquesne); a joint filing from the three FirstEnergy Companies including Metropolitan Edison Company, Pennsylvania Electric Company, and Penn Power Company (FirstEnergy); PECO Energy Company (PECO), PPL Electric Utilities Corporation (PPL Electric); Columbia Gas of Pennsylvania, Inc. (Columbia); Dominion Peoples (Dominion); Equitable Gas Company (Equitable); National Fuel Gas Distribution Corporation (NFG); Philadelphia Gas Works (PGW); PPL Gas Utilities Corporation (PPL Gas); and Aqua Pennsylvania, Inc. (Aqua). Reply Comments were filed by the following interested parties: EAPA; OCA; a joint filing from CLS/PULP; PECO, PPL Electric; and PGW.
It should be noted that while every position espoused by each of the parties, whether in Comments or in Reply Comments, may not be expressly detailed herein, each submittal was duly considered in the preparation of this Order and Annex A. Any position not expressly adopted herein is rejected without prejudice to future consideration as the parties request or the Commission deems appropriate. The summary of the parties Comments and Reply Comments is presented below and is divided into the four main areas or Biennial Report chapters as set forth in Chapter 14. Any general comments we received will precede the four report chapters. The four main chapters are further broken out into sections to allow for a more-detailed presentation and summary of the issues.
DISCUSSION Summary of Comments and Reply Comments Regarding the Biennial Report to the General Assembly and Governor Pursuant to Section 1415
The summary of comments and reply comments is presented below and is divided into the four main areas or Biennial Report chapters as set forth in Chapter 14 and listed above. The four main chapters are further broken out into sections to allow for a more-detailed presentation and summary of the issues. General comments precede each of the four chapters.
Biennial Report Chapters Chapter 1--Degree to Which the Requirements of Chapter 14 Have Been Successfully Implemented
The first area that the Commission is to report to the General Assembly and the Governor is the degree to which the Chapter's requirements have been successfully implemented. In the Tentative Order, the Commission proposed to provide a summary of the implementation of the Chapter 14 proceedings by both the Commission and the utilities. Next, we proposed to report on the deficiencies and violations of the utilities in the implementation of the Act. Finally, we proposed to survey Protection From Abuse agencies to determine the impact of Chapter 14 on that customer segment.
COMMENTS AND REPLY COMMENTS TO Chapter 1--Degree to Which the Requirements of Chapter 14 Have Been Successfully Implemented
Summary of the Implementation of Chapter 14
PECO contends that the Commission can meaningfully report ''the degree to which the Chapter's requirements have been successfully implemented'' by reporting the status of implementation orders and other efforts, and by reporting certain data like terminations and reconnections into the categories of non-low income and low income. PECO agrees that a summary statement of the work accomplished to date on the implementation of Chapter 14, as well as the tasks that remain to fully implement Act 201, will be useful to include as a basis for the initial report.
EAPA argues that the Commission's handling of the reporting requirement on measuring the degree to which the Chapter's requirements have been successfully implemented is problematic because without a Chapter 56 rulemaking, the Commission has not completed the implementation of the Act.
Reporting on Deficiencies and Violations
PECO further contends in both its Comments and Reply Comments that the utilities and the Commission are still in the process of implementing Chapter 14 so it is too early to assess the deficiencies and violations. PPL supports PECO's contentions in its comments.
PPL Electric comments that the Commission entered a Second Implementation Order on September 10, 2005, but did not require utilities to submit another Implementation Plan. As a result, there may be a slight knowledge gap regarding the implementation of Chapter 14 provisions presented in the Second Implementation Order. PPL Electric suggests that the Commission may want to confirm that utilities have addressed any new implementation provisions presented in the Second Order.
EAPA opines that there is no legislative mandate to chronicle deficiencies and violations by the public utilities in implementing Chapter 14. Given the fact that the Commission has not set forth a rulemaking to replace the old Chapter 56 regulations, the industry can hardly be held accountable to a standard yet to be established. Duquesne, PPL Electric, and PPL Gas encourage the Commission to begin a formal rulemaking proceeding to reconcile Chapter 56 and Chapter 14 regulations. PPL Electric and PPL Gas also indicate that, as a result, utilities do not have clear direction on all the implementation requirements.
Protection From Abuse Survey
PECO requests that any survey of Protection From Abuse (PFA) agencies include the utilities as part of an open forum in which the utilities also have the opportunity to present their approach to the determination of the impact of Chapter 14 on this customer segment. PPL Electric and PPL Gas support a survey of PFA agencies and recommends that the Commission survey utilities as well to identify how many customers have contacted utilities regarding PFA Orders.
With respect to a survey of PFA agencies, EAPA suggests that rather than survey unidentified agencies, request that the Pennsylvania Coalition Against Domestic Violence provide information and guidance and along with the initiation of a Chapter 56 rulemaking, that will ensure the protections afforded by the Legislature are in place.
Columbia contends that Chapter 14 does not apply to victims under a PFA order. While some companies have been applying Chapter 56-type protections to these customers on a voluntary basis, regulations concerning Protection From Abuse orders should be promulgated so as to give customers and utilities guidance in dealing with Protection From Abuse orders.
RESOLUTION FOR CHAPTER 1--Degree to Which the Requirements of the Chapter Have Been Successfully Implemented
We agree with PECO that the Commission can adequately prepare a summary of the implementation of Chapter 14 proceedings for the Biennial Report and we will do so. We disagree with EAPA and the utilities that argued against reporting on deficiencies and violations of Chapter 14. We agree with PECO that the compliance data will be limited for inclusion in the initial Biennial Report. Nevertheless, we intend to include a summary of the compliance data that is available. We believe it is essential that this Commission provides such feedback to the General Assembly and the Governor and we will include such documentation in the Biennial Report. As for a survey of PFA agencies, we agree with EAPA that the utilities should provide additional guidance to the identified agencies. In this respect, we ask that the utilities provide an annual notification to such agencies and that the notice makes all pertinent information available to the identified agencies and PFA victims. We ask that the annual PFA notification be standardized and that the content of the PFA notice be developed during the collaborative process that will be completed by September 30, 2006.
Chapter 2--Residential Collections
The second area that the Commission is to report to the General Assembly and the Governor is the effect the Chapter has on cash working capital or cash flow, uncollectible levels and residential collections of the affected utilities. In the Tentative Order, the Commission sought comments on five specific collection data issues associated with the utility collection reporting requirements including: (1) the content of the list of collection data variables to be included under the reporting requirements, (2) the frequency of utility reporting under the reporting requirements, (3) the periodicity of the reporting on a variable by variable basis, (4) the accounting protocol on a variable by variable basis, and (5) the due dates for the utility reporting under the reporting requirements.
In addition, collections-related comments were received about the following: the number of years of past data to include in the initial Biennial Report; the manner in which the Commission will formalize the collection data requirement; the availability of the collection data to the public at large; and the need for a collaborative process to resolve data definitional issues through the development of a Data Dictionary.
The following summary of the collections chapter is segmented into six primary sections that address all of the collections issues mentioned above. The six consolidated primary sections are as follows: (1) the establishment of the list of collection data variables; (2) the reporting procedural issues such as the number of years of historical data to be included in the initial Biennial Report, the frequency of utility reporting to the Commission, and the reporting due dates for the initial and subsequent reporting to the Commission; (3) the establishment of a collaborative process to develop the Data Dictionary, clarify data definitions, the periodicity of the data variables, the accounting protocols for the data variables, and the data transfer methodology for both the historical data and future data; (4) the formalization of the collection data variables in the Chapter 56 rulemaking; (5) the process for making the collections data available to the public; and (6) suggestions for legislative changes.
Specific resolution(s) will be included at the end of each of the primary sections (2) through (6).
For section (1), the establishment of the list of collection data variables, the discussion includes numerous subsections, the last of which is the specific list of collection data variables that is carried over from the Tentative Order. A general resolution of the generic issues and comments appears on page 23, immediately preceding the subsection containing the specific list of the collection data variables. Most importantly, a resolution is provided at the end of each of the 11 primary data categories within section (1). (See next paragraph for the list of the 11 primary data categories).
Section 1--Establishment of the List of Collection Data Variables
In the Tentative Order, the Commission proposed a list of potential collection data variables for inclusion in these reporting requirements. These variables were listed in Appendix A of the Tentative Order. Overall, this initial list was designed to allow for a more complete collection analysis than current collection reporting has produced. We received extensive comments on these proposed collections data variables in addition to a number of new proposed variables. The initial list of collection variables had been compiled into 11 primary data categories including the number of customers, collection operating expenses, billings and payments, write-offs, arrearages, terminations and reconnections, security deposits, reconnection fees, late payment fees, field visit fees and Universal Service program costs.
The summarization of the comments regarding the establishment of the list of collection data variables is broken out into the following subsections: general comments; comments that offer support for the requirement of collections data; comments that suggest new or additional reporting requirements would be burdensome; comments that offer support for the use of existing collection data reporting requirements; a list of proposed new collection data variables; and specific comments regarding the 54 collection data variables proposed by the Commission in its Tentative Order.
In order to facilitate the discussion of the specific collection data variables that the Commission proposed in its Tentative Order, the collection data variables are repeated in this Order in the same manner, including the variable number, and in the same sequence that they appeared in the Tentative Order.
COMMENTS AND REPLY COMMENTS OF THE PARTIES TO CHAPTER 2--Residential Collections--Section 1--Establishment of the List of Collection Data Variables
General Comments to Section 1
PECO believes that a key element to assessing the success on the implementation of Chapter 14 will be to develop a universally understood definition of ''successful implementation.'' This can be done by mapping each data to a specific measure of success.
PPL Electric and PPL Gas suggest an iterative process through which the Commission would establish its baseline data variables for the December 2006 Report, and then carefully consider other data variables that would add further value and insight to future reports. PPL Electric and PPL Gas ask that opportunities to reduce and/or consolidate the number of proposed collection data variables should be identified. Finally, PPL Electric recommends that the Commission take steps to reduce the number of variances from the Data Dictionary by selecting data variables that all utilities can provide.
Support for Collection Data Variables
The OCA states that the new collection data requirements reflect some of the necessary additional data needed to respond to the statutory directives concerning these Biennial Reports. The OCA has identified additional data points for the Commission to collect to analyze the impact of Chapter 14.
With the exception of the Security Deposit variables, Collection Data Variables #26 through #28 from the Tentative Order, FirstEnergy anticipates it will be able to provide within a reasonable timeframe the information for all proposed variables going forward.
Burdensome Reporting Requirements or Duplicative Reporting of Data
EAPA concludes that many of the 54 data elements sought by the Commission are duplicative of data already provided, not possible to collect, not necessary for consideration in reporting to the General Assembly as outlined in the statute, and create an unnecessary burden on the utilities.
EAPA argues that once the reporting requirements are set, depending upon the company, it could take from six months to a year to adjust programming to be in compliance provided there is no other change sought. EAPA also contends that various mergers may prohibit investment in data initiatives at this time by the companies affected by the mergers. Moreover, EAPA contends that additional programming costs will be paid for by ratepayers, will not reduce uncollectibles, and cannot facilitate the statutory purpose of cost containment for consumers under § 1402.
PGW argues that much of the information requested in the data requests are already being reported and it would be costly and confusing to require the same reporting here. Further, it is important to keep in mind that each data submission imposed on a utility not only requires the utility to incur administrative costs, but also creates another imposition on the time and attention of the utility's management, time that would otherwise be devoted to seeking to utilize the tools provided by Act 201 to improve collections and reduce uncollectibles. EAPA supports PGW in its Reply Comments by offering that the Commission is arguably prevented from imposing any new requirements upon PGW that will in any way worsen its financial ability to function.
PGW states that the Commission's order requests data that far exceeds that which it is authorized to request under Section 1415. The Commission's Appendix A demands raw data that would permit it to analyze every possible permutation of a utility's operations and interactions with its customers, without focusing on the individual items specified in the Section. The Commission is demanding information that goes well beyond anything that the legislature has directed or contemplated, and would appear clearly in excess of this statutory authority. In its Reply Comments, CLS/PULP argues that the Commission should reject these baseless claims. In order to assess utility performance in areas of cash working capital or cash flow, uncollectible levels and collections, and the level of access of residential customers, including low income customers, to utility service, the Commission has correctly recognized that it needs a wider range of data than is currently available. CLS/PULP further elaborates that EAPA and company comments are replete with complaints that systems limitations, time constraints, alleged burdens on company resources and allegedly premature or redundant data requests should excuse imposition of any new reporting requirements at this time.
PPL Electric and PPL Gas urge the Commission to obtain timely and insightful data, but should avoid overly burdensome data collection requests. NFG contends that although a few new data elements may be warranted, asking utilities to capture and report on 33 new data elements by the end of the year is neither necessary nor practical. Aqua reports that total compliance with the collections data would be a significant burden to the company and the requirement to report historical data would sometimes be impossible.
In its Reply Comments, PECO indicates that there are significant difficulties to completing the necessary programming changes to capture and collect new data elements. PECO further agrees that the Commission needs data to fulfill its reporting requirements in such a way to avoid redundancy and unnecessary reporting as well as not to create an undue burden on utilities.
In its Reply Comments, PPL Electric points out that if the proposed collection data variables suggested by the OCA and PULP/CLS are required, the total data set would increase from the Commission's initial proposal of 54 data variables to 109 data variables. It would be very unlikely that utilities could effectively and timely respond to 109 different data variables, with many proposed variables to be segmented by various Income Levels. PPL concludes that attempting to provide data for 109 variables is both unnecessary and overly burdensome. The company submits that the Commission can reduce the number of proposed data variables without adversely affecting the quality and integrity of the Biennial Report.
Use of Existing or Current Reporting Requirements
Duquesne, EAPA, PECO, PPL Electric and PPL Gas believe that much of the collections data necessary to prepare the initial report required by the General Assembly has already been provided to the Commission. EAPA further contends that there is already sufficient data to measure any historical trends. PPL Electric encourages the Commission to evaluate current utility reporting and identify critical knowledge gaps and request new data only for those knowledge gaps.
With the support of PGW, EAPA submits that the following four data elements will adequately measure the effect which Chapter 14 has had on cash working capital or cash flow: (1) uncollectible levels, and collections including total residential billing and total arrears at year end (§ 56.231 and Annual Financial Reports); (2) payment arrangements in terms of dollar amount and number of arrangements (BCS Payment Plan and Annual Financial Reports); (3) gross residential write-offs at year end (BCS Annual Bill Survey and Annual Financial Report); and (4) Deposits.
EAPA urges the Commission to rely upon existing reports to collect data, to eliminate the re-collection of historical data or the collection of new data points other than in the area of deposits, to recognize that data cannot be assembled prior to the June 1, 2006 date stated in the Tentative Order, and to start the process of a formal Chapter 56 rulemaking and the creation of a Data Dictionary.
EAPA states that prudency and cost containment necessitate interim data collection that maximizes use of existing reports as opposed to establishing interim guidelines requiring new system and computer programming for information prior to the development of a Data Dictionary.
EAPA's arguments against imposing additional reporting requirements includes the high current volume of pending formal actions before the Commission including, but not limited to, issues such as the five merger requests and the implementation of the Alternative Energy Portfolio Standards. EAPA opines that FERC and Commission annual reports, together with other PUC reports, provide sufficient requisite data for both current and historical information.
In its Reply Comments, EAPA believes that the Commission has sufficient data to respond to the 2006 Legislative request. However, if the Commission wants more data, EAPA would respectfully urge that such data be collected on an ongoing basis starting with the beginning of 2007 and that this additional data be used for the 2008 report. While EAPA believes that no new data is necessary, if the Commission concludes otherwise, EAPA would ask for an expedited decision so that systems can be upgraded to meet the Commission's timetable to the Legislature.
Columbia, NFG, PECO, PPL Electric and PPL Gas believe that the Commission should base the 2006 Report on data that is already collected and reported by public utilities. PECO further supports this position in its Reply Comments. NFG further proposes that the Commission should not request new data until the General Assembly and Governor provide feedback to the Commission regarding the first Biennial Report, including what specific and more-detailed information on aspects of Chapter 14 they desire. Columbia is concerned that data variables are identified prior to the creation of a Data Dictionary. Each of the variables has multiple valid interpretations, and without a dictionary to clarify what is being requested by each variable, the Commission will be collecting inconsistent data that cannot be combined to present a comprehensive and meaningful picture of the impact of Chapter 14 on Pennsylvania's utilities and their responsible customers. Thus, the only solution is to rely on existing reports. Columbia further recommends using existing reports to satisfy the Commission's reporting obligation and then revising them as part of the Data Dictionary and regulation promulgation process that will be done pursuant to Chapter 14.
PPL Electric opines that the Commission should not abandon its efforts to collect historical data, but instead, suggests that the PUC be judicious in identifying data variables by which it can obtain complete information for specific periods of time from all of the utilities.
PGW writes that it has no ability to provide any of the required historic data prior to 2004, the point at which it became fully regulated by the PUC. Moreover, the company doesn't have the resources or the funds, accounting to hundreds of thousands of dollars in new expenditures, to engage in the process of extracting from its customer billing records many of the thirty-three different new data points that the PUC is requesting. PGW opines that the company has already supplied the necessary data on which a useable pre-Act 201 trend line can be constructed. PGW further contends that the best way for the Commission to fulfill its evaluation and reporting responsibilities under the Act is to focus on and compile existing data that are absolutely necessary to satisfy the Commission's legislative mandate.
If the Commission believes that adequate data elements exist for evaluation purposes within existing data reported by other industries under Section 56.231, than Aqua would argue that no additional reporting burden should be requested.
Aqua offers a limited number of Collection Data Variables including the following: annual utility customer billings, annual gross write-offs, arrears at year-end, payment arrangements at year-end, and payment arrangement dollars at year-end.
In its Reply Comments, in reference to the utilities' calls for reliance solely on existing data provided in other reports to the Commission to assess the impact of Chapter 14 or for limiting the data variables and the historic data collection period, the OCA contends that these limitations are inappropriate given the breadth of the changes implemented pursuant to Chapter 14. The limitation of the collection data to only existing information from current reporting requirements in place before the enactment of Chapter 14 will not capture all of the impacts of Chapter 14. The list of data variables provided by the Commission provides a reasonable foundation for these data collection efforts. As modified and supplemented by its recommendation's in it Comments, the OCA believes that the data and information will allow the Commission to provide a more complete and thorough report on the impact of Chapter 14 on consumers, the utilities, and the public.
In its Reply Comments, PPL Electric opines that the Commission is able to assess the impacts of Chapter 14 through a variety of existing reports and activities including the 52 Pa. Code § 56.231 monthly reports, monthly payment agreement reports, consumer complaints received, Universal Service and Energy Conservation Reporting Requirements, annual Cold Weather Surveys, and informal investigations of utilities' policies and practices.
Comments Regarding the Specific Proposed Collection Data Variables
General Comments
PPL Electric provided comments on each of the proposed 54 Collection Data Variables and supports the provision of four years of data for historical analysis and the four year limit is supported by PPL Gas. Also, PPL Electric offers guidance for the defining of the Collection Data Variables in the Data Dictionary.
PPL Electric suggests that each data variable should be reviewed to determine the ability of the utility to obtain the data, the amount of historical information that may be available, whether the variable can be consolidated with existing variables and the value of the variable in evaluating the impact of Chapter 14. In its Reply Comments, PECO supports PPL's suggestions.
Columbia asks that data Collection Data Variables currently reported elsewhere be removed from Chapter 14 reporting requirements. Also, Columbia recommends that definitions for all of the Collection Data Variables be addressed in the Data Dictionary.
Suggestions for Modifications to Proposed Collection Data Variables or New Collection Data Variables
In order to assess the impact of allowing winter termination for customers with household income above 250% of the Federal Poverty Level (FPL), the OCA suggests that the Commission collects information for customers with incomes above 250% of the FPL including the number of accounts that have made no payments in the winter months to determine if there has been a decline, the payments-to-bill index for the winter months, the number of customers and the amount of ''bills behind,'' and the current bill coverage ratio during the winter months.
The OCA opines that winter termination poses numerous risks for customers, even those with higher incomes. In order to determine if allowing winter termination of customers with incomes over 250% of the FPL has had an impact on the health and safety of these customers or the public, the Commission should also collect the following information: the number of households terminated in the winter, the number of households that had occupants over 65 years old, children under 12 years of age, or occupants who were disabled; the number of households issued a winter termination notice, or terminated in the winter, the number that submitted a medical certification; the length of time the homes were without utility service; the options used by households after service has been disconnected; and the source of payment funds to get reconnected.
The OCA points out that Chapter 14 also significantly changed the rules regarding payment plans and additional data may be needed to determine the impact of these changes. The data includes the average value of arrears subject to payment plans, the percent contribution of arrears subject to payment plans to total arrears, the number of payment plans that are successfully completed by income category and the average length of a payment plan.
The OCA recommends that the Commission collect information from the utilities on changes in collection practices so that the results can be properly analyzed, including information regarding changes in prices or rates that affect total bills. In its Reply Comments, PPL Electric disagrees arguing that the Commission's role is to address and balance the needs of consumers and utilities by ensuring that jurisdictional utilities adhere to both the spirit and intent of Commission regulations, orders and policy statements. Overseeing and managing day-to-day operations is the responsibility of the utilities.
The OCA suggests that the Commission should seek data regarding the number of applicants that were required to pay the arrears or unpaid balance for another customer to establish service, the total dollar amount of previously unpaid charges that were collected from an applicant on behalf of another customer of record, and the total number of applicants that were denied service due to non-payment by a customer of record other than the applicant.
PPL Electric and PPL Gas recommend adding two variables; namely, the total number of customers receiving LIHEAP cash and crisis grants and the corresponding dollar amounts of the grants. Both PPL companies contend that these new data elements are warranted because LIHEAP plays an important role in supporting utilities' low income programs.
The OCA requests that the Commission collect some of the required data variables by income level such as terminations. The OCA opines that Chapter 14 treats payment agreements differently for customers with different incomes. Consequently, the OCA recommends that items #3-10, 17-34, and 36-44 from Appendix A in the Tentative Order be provided into three Income Levels: 150% of FPL and below, 150% to 250% of FPL, and over 250% of FPL.
CLS/PULP submits that Chapter 14 requires that the Commission's Biennial Report must assess the impact of Chapter 14 upon each of the four Income Levels as defined in the Act. The legislature recognized that Chapter 14 provisions had the potential to jeopardize the ability of low and lower income households to maintain utility service. For this reason, the collection data variables intended to address access issues should be broken down according to the Income Levels set forth in the Act. In some cases, data must also be broken out according to whether the customers are participants in a CAP.
In its Reply Comments, EAPA argues that much of the information which OCA and CLD/PULP wish to collect for the Biennial Report would not demonstrate the effect of Chapter 14 on access to utility service. EAPA believes that the cost of collections is already excessive without additional report requirements and the cost involved with additional reporting would exacerbate an already excessive and untenable collections situation.
In its Reply Comments, PGW argues that the additional requests for new data from the OCA and CLS/PULP are outside the scope of the PUC's reporting requirements, and additional requests would be burdensome and would cost the company hundreds of thousands of dollars, and would tie up management and IT personnel for months, thereby making it almost impossible for PGW to conduct regular business. Consequently, PGW respectfully urges the Commission to reject these requests.
In its Reply Comments, the OCA argues that the Commission's Report does not have to be limited to the four categories under § 1415(1), but instead the Commission has the discretion to propose any other analyses and information it feels would be valuable to the users of the report and to suggest any legislative or other changes to Chapter 14 that it deems necessary.
GENERAL RESOLUTION FOR CHAPTER 2--Residential Collections--Section 1--Establishment of the List of Collection Data Variables
EAPA and various utilities suggested that the Commission use existing data wherever possible while cautioning that additional data requests would be potentially burdensome. The OCA and CLS/PULP offered support for the list of Collection Data Variables proposed in the Tentative Order, suggested a number of modifications to those variables, and presented proposals for new variables. We agree with EAPA and the utilities that we should use existing data whenever possible. Further, we are concerned that the imposition of new collection data variables could be burdensome, and it is with this concern in mind that we have agreed to pare down the proposed list of collection data variables. However, we agree with the OCA and PULP/CLS that reconnection data should be broken out into the four Income Levels implemented by the Commission under Chapter 14. Finally, we feel that several new collection data variables are essential for allowing the Commission to meet its legislative charge of reporting on the effect of Chapter 14 upon the cash working capital or cash flow, uncollectible levels and collection of the affected public utilities.
Specific Comments about the Collection Data Variables Proposed in the Tentative Order
GENERAL COMMENT APPLICABLE TO THIS ENTIRE SUBSECTION
With the support of PGW, EAPA submits that four data elements will adequately measure the effect which Chapter 14 has had on cash working capital or cash flow: uncollectible levels and collections including total residential billing and total arrears at year end (§ 56.231 and Annual Financial Reports), payment arrangements in terms of dollar amount and number of arrangements (BCS Payment Plan and Annual Financial Reports), gross residential write-offs at year end (BCS Annual Bill Survey and Annual Financial Report) and Deposits.
I. Number of Customers
1. The total number of residential customers
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Number of Customers
PPL Electric and PPL Gas support Collection Data Variable #1, the Number of Residential Customers, and the company can provide four years of historical data. Columbia points out definitional issues with this variable and concludes that the data element needs to be better defined in the Data Dictionary.
RESOLUTION--Number of Customers
We will include this variable in the Interim Guidelines and resolve definitional issues expressed by Columbia in the development of the Data Dictionary in the Collaborative Process.
II. Collection Operating Expenses
2. The total dollar amount of annual collection operating expenses
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Collection Operating Expenses
For Variable #2, Annual Collection Operating Expenses, PPL Electric recommends using the same definition as in the Universal Service reporting requirements and, along with Columbia and PPL Gas, further proposes that the data be submitted annually and not semi-annually. Columbia and PPL Gas point out definitional issues with this variable and conclude that the data element needs to be better defined in the Data Dictionary.
RESOLUTION--Collection Operating Expenses
We agree with PPL Electric and we will use the same definition from the Universal Service reporting requirements. We also agree with the three utilities that ask for annual reporting rather than semi-annual reporting for this variable, which is also consistent with Universal Service reporting. We will include this variable in the Interim Guidelines and resolve definitional issues expressed by the utilities in the development of the Data Dictionary in the Collaborative Process.
III. Billings and Payments
3. The total dollar amount of annual residential billings
4. The total dollar amount in customer payments including all payments made on behalf of the customer
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Billing and Payments
For Variable #3, Annual Residential Billings, Columbia and PPL Gas point out definitional issues with this variable and conclude that the data element needs to be better defined in the Data Dictionary. Columbia, further proposes that this data be submitted annually and not semi-annually.
For Variable #4, Customer Payments, Columbia, PPL Electric, and PPL Gas point out definitional issues with this variable and conclude that the data element needs to be better defined in the Data Dictionary.
RESOLUTION--Billing and Payments
We will include Residential Billings in the Interim Guidelines and resolve definitional issues expressed by the utilities in the development of the Data Dictionary in the Collaborative Process.
We agree with EAPA and we will exclude Customer Payments from the Interim Guidelines because we believe that it is not a primary measure of collections performance that supports our legislative charge of reporting on the effect of Chapter 14 upon the cash working capital or cash flow, uncollectible levels and collection of the affected public utilities.
IV. Write-Offs
5. The total dollar amount of gross residential write-offs
6. The total dollar amount of residential recoveries
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Write-Offs
Columbia points out definitional issues with Variable #5, Gross Residential Write-Offs, and concludes that the data element needs to be better defined in the Data Dictionary. Columbia, further proposes that this data be submitted annually and not semi-annually.
PPL Electric and PPL Gas suggest that Net Write-Offs be reported in lieu of Gross Write-Offs and Recoveries. Columbia points out definitional issues with the gross write-offs variable and concludes that this data element needs to be better defined in the Data Dictionary. Columbia, further proposes that write-offs data be submitted annually and not semi-annually.
RESOLUTION--Write-Offs
We believe that Gross Residential Write-Offs is an essential collections data variable that will allow us to satisfy our legislative charge of reporting on the effect of Chapter 14 upon the cash working capital or cash flow, uncollectible levels and collection of the affected public utilities. We will include Gross Write-Offs in the Interim Guidelines and resolve definitional issues expressed by the utilities in the development of the Data Dictionary in the Collaborative Process. We agree with Columbia and we will require annual reporting. However, we do not believe that the Amount of Recoveries is essential to our legislative charge and we will not require this variable in the Interim Guidelines.
V. Arrearages
7. The total number of active residential accounts in arrears and not on a payment agreement
8. The total dollar amount in arrears for active residential accounts in arrears and not on a payment agreement
9. The total number of active residential accounts in arrears and on a payment agreement
10. The total dollar amount in arrears for active residential accounts in arrears and on a payment agreement
11. The total number of active residential accounts in arrears and in CAP
12. The total dollar amount in arrears for active residential accounts in arrears and in CAP
13. The total number of active CAP recipients who have pre-program arrearages that have not yet been fully written-off
14. The total dollar amount in arrears for active CAP recipients who have pre-program arrearages that have not yet been fully written-off
15. The total number of active residential accounts that have current billings not yet due
16. The total dollar amount for active residential accounts that have current billings not yet due
17. The total number of inactive residential accounts in arrears
18. The total dollar amount in arrears for inactive residential accounts in arrears
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Arrearages
In regards to Collection Data Variables #7 through #8, CLS/PULP state that Chapter 14 recognizes two kinds of payment agreements, i.e., agreements under § 1405 for customers whose service is on, and agreements under § 1407, which establish the terms for reconnection of service. Because the standards are different between § 1405 and § 1407, each of these variables, 7 through 10, should be reported accordingly in two parts. Further, these data variables should be broken down out according to Income Levels.
In Collection Data Variables #7 through #12, Columbia points out definitional issues with each variable and concludes that the data elements need to be better defined in the Data Dictionary.
In Collection Data Variables #11 through #14, CLS/PULP opines that it is important for the Commission to require clear distinctions between pre-program arrearages, and arrears accumulated by CAP participants while they were in a CAP program. Meanwhile, NFG says that it is unclear how these data elements on active CAP accounts is necessary or relevant to the Commission's biennial report on the effectiveness of Chapter 14, given the limited references to CAP in Chapter 14.
PPL Electric and PPL Gas comment that providing Variables #11 and #12, The Total Number and Dollars of Active Residential Accounts in Arrears and in CAP, will be difficult and require some computer programming, but could provide the data on a going-forward basis. In addition, the PPL companies ask for definitional clarifications.
PPL Electric and PPL Gas contend that while Variables #13 and #14, regarding pre-program arrearages for CAP recipients, could be provided with difficulty on a going-forward basis. The companies further opine that they are not convinced that these two variables would help to explain or to provide insights regarding the effects of Chapter 14. Columbia points out definitional issues with each variable and concludes that the data elements need to be better defined in the Data Dictionary. Columbia, further proposes that this data be submitted annually and not semi-annually.
PPL Electric and PPL Gas believe that data regarding Collection Data Variables #15 and #16, Residential Accounts not yet Due, may not reveal any key insights or trends regarding the impact of Chapter 14 and request that the Commission consider deleting these variables. Columbia and NFG argue that this data is simply not useful or relevant to Chapter 14.
PPL Electric states that the company can provide Collection Data Variables #17 and #18, referring to Inactive Residential Accounts in Arrears, on a going-forward basis. NFG points out that since companies write off bad debt at different times, the data will be inconsistent and make it difficult to compare one company to another. Columbia also notes definitional issues with each variable and concludes that the data elements need to be better defined in the Data Dictionary.
RESOLUTION--Arrearages
In agreement with EAPA, we will include data currently provided through the § 56.231 reporting and the monthly Payment Agreement reporting, Variables #7 through #10. We agree with the utilities that argued that Variables #11 through #16 may be difficult to obtain and did not significantly add to our legislative charge of reporting on the effect of Chapter 14 upon the cash working capital or cash flow, uncollectible levels and collection of the affected public utilities. Most importantly, we recognize that each of these categories comprises a small part of the Cash Working Capital data set, but we do not believe the added expense and burden is worth the minimal impact these data variables have on measuring the impact of Chapter 14 on collections. Despite the concerns of several of the utilities, we will include Variables #17 and #18, related to arrearages associated with accounts that have been terminated or discontinued, the arrearage has yet to be written off, and the final bill for these accounts is also past due. These former customers are no longer active accounts, i.e., in receipt of the utility service, but have not yet been written off. As companies have increased collection activity including an increase in the number of terminations since the passage of Chapter 14, we believe that this particular category of arrearage among the Cash Working Capital set of arrearages is significant. We will resolve definitional issues expressed by the utilities in the development of the Data Dictionary in the Collaborative Process. We view the provision of this data as required on a going-forward basis while we view the submission of historical data as optional.
VI. Terminations and Reconnections
Terminations
19. The total number of terminations for non-payment of arrearages as defined at § 1406(a)(1) or § 1406(a)(2)
20. The total number of terminations for non-payment of security deposits as defined at § 1406(a)(3)
21. The total number of terminations for non-payment of both an arrearage and a security deposit as defined at either § 1406(a)(1) or § 1406(a)(2) and § 1406(a)(3)
22. The total number of terminations for other reasons including failure to permit access, unauthorized use of service, fraud, meter tampering, and safety as defined at § 1406(a)(4), § 1406(c)(1)(i), § 1406(c)(1)(ii), § 1406(c)(1) (iii), and § 1406(c)(1)(iv)
Reconnections
23. The total number of reconnections for customer payment
24. The total number of reconnections for medical certification
25. The total number of reconnections for reasons other than customer payment or medical certification
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Terminations and Reconnections
CLS/PULP recommends that Variable #19, Terminations for Non-Payment, be divided into three parts and also broken out by income level. The three categories included non-CAP customers not on a payment agreement, non-CAP customers who failed to comply with a payment agreement, and CAP customers who failed to comply with the terms of their CAP plan. Columbia suggests that this data variable be defined in the Data Dictionary as presently reported on the § 56.231 reports.
CLS/PULP suggest additional data be collected for CAP customers who are terminated including, the total dollar amount in arrears for terminated CAP accounts, the total number of terminated CAP customers who get reconnected for reasons other than a medical certification, the total number of CAP customers who were granted stays of termination based on a medical certification, the total number of CAP customers who get reconnected based on the provision of a medical certification, and the total number of CAP customers who received utility granted extensions or stays resulting in cure of a CAP default.
PPL Electric and PPL Gas comment that they can provide Variable #19, Terminations for Non-Payment of Arrearages, for a period of four years.
For Collection Data Variable #20, Termination for Non-payment of a Security Deposit as defined at § 1406(a)(1) or § 1406(a)(2), CLS/PULP contends that this variable should be broken out into Income Levels. PPL Electric cannot distinguish between non-payment of arrearages and non-payment of a security deposit and, since the company rarely terminates for only non-payment of a security deposit, the company recommends that the Commission delete this data variable. Columbia recommends deleting this variable because it is not meaningful for purposes of Chapter 14 reporting. PPL Gas reports that this data is not available without additional computer programming.
CLS/PULP requests that Variable #21, Terminations for Non-payment of both an Arrearage and a Security Deposit be divided into two parts and by Income Level. The first part is the number of terminations for non-payment of both an arrearage not subject to a payment agreement and a security deposit and the second part is the number of terminations for non-payment of a payment agreement and a security deposit. PPL cannot distinguish between non-payment of arrearages and non-payment of a security deposit and, since the company rarely terminates for only non-payment of a security deposit, the company recommends that the Commission delete this data variable.
CLS/PULP recommends that Variable #22, terminations for reasons other than for non-payment of arrearages or security deposits, should be divided into three parts: (1) terminations for failure to permit access as defined at § 1406(a)(4); (2) terminations for unauthorized use based on § 1406(c)(1)(i), § 1406(c)(1)(iii), or § 1406(c)(1)(iv); and (3) terminations based on fraud or material misrepresentation of the customer's identity for the purpose of obtaining service. As a complement to Data Variable #22, the Commission should also include a variable which provides the number of complaints filed with the Commission in which Section 1406(c)(1)(ii) was an issue, the number of complaints granted, and the number of complaints denied. Columbia points out definitional issues with each variable and concludes that the data elements need to be better defined in the Data Dictionary.
PPL Electric reports that the company can provide Collection Data Variables #22-25 and has up to four years of historical data. PPL Gas reports that the company can provide Collection Data Variables #22-24 and has up to four years of historical data.
CLS/PULP suggests that Collection Data Variable #23, Number of Reconnections for Customer Payment, should be divided into three variables and broken out by Income Level. The new variables include the total number of non-CAP reconnections for full payment of the outstanding balance, the number of non-CAP reconnections based on amortization of the outstanding balance, and the total number of CAP reconnections. Columbia points out definitional issues with this variable and concludes that it needs to be better defined in the Data Dictionary.
CLS/PULP recommends that Collection Data Variable #24, Number of Reconnections for Medical Certification, be divided into two variables and broken out by Income Level. The new variables include the total number of stays of termination and the total number of reconnections based on the provision of medical certification.
Columbia recommends that Collection Variable #25, Reconnections for Reasons other than Customer Payment of Medical Certification, be better defined in the Data Dictionary. Columbia further offers that the Data Dictionary should contain consistent definitions for this data variable and data variable #22, Terminations for Other Reasons (excludes termination for any type of non-payment). PPL Gas reports that it can begin to capture this data on a forward basis beginning January 1, 2006.
In its Reply Comments, PPL Electric recommends that the Commission should consider collecting household income data for reconnection of service data variables #23 through #25 because reconnection is an event where the utility is likely to be able to update household income with the customer.
RESOLUTION--Termination and Reconnections
Overall, the comments support the provision of termination and reconnection data. We initially proposed four categories for the reporting of termination data. We share the concerns of PPL Electric over distinguishing between the two non-payment categories, non-payment of an arrearage and non-payment of a security deposit. Thus, we propose to consolidate variables #19 through #21 into a single variable that simply captures terminations for non-payment, without the distinction. We also propose to include Variable #22, which includes terminations for any reason other than for non-payment. As for reconnections, we agree with CLS/PULP and PPL Electric that we should require the additional sorting into the four Income Levels2 . Income Level data is widely available from customers at the time the customer/applicant meets the terms for restoration of service with the utility. We will resolve definitional issues expressed by the utilities for both termination and reconnection data variables in the development of the Data Dictionary in the Collaborative Process.
VII. Security Deposits
26. The total number of applicants that are billed a security deposit for new service
27. The total dollar amount of security deposits billed to applicants for new service
28. The total dollar amount of security deposits paid by applicants for new service
29. The total number of customers that are billed a security deposit for current/existing service while service is still on
30. The total dollar amount of security deposits billed to customers for current/existing service while service is still on
31. The total dollar amount of security deposits paid by customers for current/existing service while service is still on
32. The total number of applicants or customers that are billed a security deposit as a condition of reconnection
33. The total dollar amount of security deposits billed to applicants or customers as a condition of reconnection
34. The total dollar amount of security deposits paid by applicants or customers as a condition of reconnection
35. The total dollar amount of security deposits on-hand
36. The total number of customers that had dollars in previously collected security deposits applied to unpaid account balances
37. The total dollar amount in previously collected security deposits applied to unpaid account balances
38. The total dollar amount in security deposit interest paid to customers
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Security Deposits
In the Security Deposit variables #26 though #28, Columbia points out definitional issues with these variables and concludes that they need to be better defined in the Data Dictionary. Columbia further opines that Collection Data Variables #26 through #31, #34 and #35 be dropped because the data will not provide insight into the success of Chapter 14. Columbia contends that the Security Deposit related Variables #32 and #33 provide meaningful information that will enable a relevant analysis of the impact of Chapter 14 across all companies. Columbia also points out definitional issues with Variables #36 and #37 and concluding again that they need to be better defined in the Data Dictionary.
EAPA agrees that more data is needed to understand the use of customer deposits, Collection Data Variables #26 through #38, in reducing uncollectible levels going forward. EAPA and PGW suggest an abbreviated list including the total amount of customer deposits, total amount of customer deposits with interest used to offset bad debt, and total amount of interest paid on customer deposits. Some deposit provisions in Chapter 56 were superseded by Chapter 14 and, as a result, there is no intrinsic value to historical data on security deposits. The industry agrees that it would be helpful to undertake the cost of collecting data on customer deposits going forward. NFG states offers that since the rules regarding security deposits were changed by Chapter 14, some additional reporting on security deposits may be warranted.
CLS/PULP offers that Collection Data Variables #26 through #42 and #45 through 48 should be broken out by Income Level. In its Reply Comments, PPL Electric states that it can not provide this data by Income Level and the company does not charge security deposits for customers with household incomes below 250% of the FPL.
For the Collection Data Variables #26 through #38 involving Security Deposits, PPL Electric and PPL Gas have limited historical data and opine that some of the security deposit data variables are necessary while others are not necessary. The PPL companies propose to reduce the list of Security Deposit variables down to six, including (1) the total number of applicants billed a security deposit, (2) the total dollar amount of security deposits billed for applicants, (3) the total number of customers billed a security deposit, (4) the total dollar amount of security deposits billed for customers, (5) the total number of security deposits held as of December 31, and (6) the total dollar amount of security deposits held as of December 31. The first four of the six variables can be submitted monthly while the last two variables can be submitted annually. FirstEnergy points out that the Security Deposit variables are the most challenging since the companies did not request a security deposit from applicants prior to Chapter 14.
For Variable #38, Security Deposit Interest Paid to Customers, Columbia suggests that this variable be combined with Variable #35. Columbia points out definitional issues with this variable and concludes that it needs to be better defined in the Data Dictionary. Columbia advocates annual reporting rather than semi-annual reporting.
RESOLUTION--Security Deposits
Generally, EAPA, Columbia, PPL Electric and PPL Gas offer support for gathering data regarding security deposits. The commentators expressed various definitional concerns and suggestions were made to either maintain, consolidate, revise or delete various individual variables. Overall, we support the approach suggested by PPL Electric. We agree with PPL Electric that variables #26 and #32 should be combined into a single variable and that the corresponding and related variables #27 and #33 should also be combined into a single variable. In this way, the utility does not need to distinguish beyond an initial determination that the person is an applicant. There were no specific objections or revisions proposed to variables #29 and #30, regarding data about security deposits from customers and we will include these two variables in our Interim Guidelines. Variables #28, #31 and #34 reflect the amount of the security deposit payments made by either applicants or customers. We will exclude these three variables along with variables #36 through #38 because we believe that each of these variables is not a primary measure of collections performance that supports our legislative charge of reporting on the effect of Chapter 14 upon the cash working capital or cash flow, uncollectible levels and collection of the affected public utilities. Finally, we agree with PPL Electric that Variable #35, regarding the amount of security deposits on hand, should be included and that we should also require the corresponding number of security deposits that are on-hand as of year-end. We will resolve definitional issues expressed by the utilities for the security deposit data variables in the development of the Data Dictionary in the Collaborative Process.
VIII. Reconnection Fees
39. The total number of customers that were billed a reconnection fee as a condition of reconnection
40. The total dollar amount of reconnection fees billed to customers as a condition of reconnection
41. The total number of customers who paid reconnection fees as a condition of reconnection
42. The total dollar amount of reconnection fees paid by customers as a condition of reconnection
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Reconnection Fees
For Variable #39 and #40, related to Reconnection Fees, Columbia points out definitional issues with these variables and concludes that they need to be better defined in the Data Dictionary. Columbia advocates annual reporting rather than semi-annual reporting.
PPL Electric and PPL Gas can provide Reconnection data in Variables #39 through #42 for a period of four years. Both PPL companies recommend monthly totals be submitted on an annual basis. Despite these specific comments, both PPL companies recommend eliminating these variables because they have limited value in explaining the impact of Chapter 14 on utilities' overdue receivables. NFG argues that it is not necessary to provide information regarding Reconnection data because the amounts and number of reconnection fees have little relevance to the implementation of Chapter 14.
In reference to the Reconnection Fee variables #41 and #42, Columbia requests that utilities should be permitted to certify that have no accounts meeting this reporting criteria instead of being expected to invest in the expensive programming changes necessary to produce a report consistently filled with zeros.
CLS/PULP offers that Collection Data Variables #26 through #42 and #45 through #48 should be broken out by Income Level.
EAPA states that variables seeking new information on Reconnection Fees and Late Payment Fees in Collection Data Variables #39 through #44 are not responsive to the issues outlined in § 1415 for the Biennial Report.
RESOLUTION--Reconnection Fees
We agree with EAPA and NFG that it is not necessary to provide information regarding Reconnection data because the amounts and number of reconnection fees have little relevance to the implementation of Chapter 14.
IX. Late Payment Fees
43. The total dollar amount in late payment fees billed to customers
44. The total dollar amount of late payment fees paid by customers
COMMENTS AND REPLY COMMENTS OF THE PARTIES--Late Payment Fees
CLS/PULP recommends that Collection Data Variable #43, Dollar Amount in Late Payment Fees, be divided into two variables and broken out by Income Level. The new variables include the total number of customers assessed a late payment fee and the total dollar amount of late payment fees billed. PPL Electric and PPL Gas can provide this data up to four years.
CLS/PULP recommends that Collection Data Variable #44, Dollar Amount of Late Payment Fees Paid by Customers, be divided into two variables and broken out by Income Level. The new variables include the total number of customers who paid a late payment changes and the total dollar amount of late payment charges paid. PPL Electric submits that it can not provide this data.
PPL Gas recommends adding the total number of customers to Collection Data Variables #43 and #44, regarding the amount of late payment fees billed and late payment fees paid.
NFG argues that data regarding Late Payment fees fails to show the effectiveness to which § 1409 has been implemented by the Commission. Columbia argues that this data is simply not useful or relevant to Chapter 14.
EAPA states that variables seeking new information on Reconnection Fees and Late Payment Fees in Collection Data Variables #39 through #44 are not responsive to the issues outlined in § 1415 for the Biennial Report.
RESOLUTION--Late Payment Fees
We agree with EAPA and Columbia that variables seeking new information on Late Payment Fees in Collection Data Variables #43 and #44 is not responsive to the issues outlined in Chapter 14 for the Commission's Biennial Report.
X. Field Visit Fees
45. The total number of customers billed a field visit fee
46. The total dollar amount of field visit fees billed to customers
47. The total number of customers that paid a field visit fee
48. The total dollar amount of field visit fees paid by customers
[Continued on next Web Page] _______
1 The quality, state, or fact of being regularly recurrent. Webster's New Collegiate Dictionary 852 (1977)
2 Chapter 14 has various sections that refer to a customer's relationship to the Federal Poverty Level. For example, § 1405(b) describes the length of payment agreement a customer is eligible for based upon the customer's relationship to the poverty level. For administrative efficiency, the Bureau of Consumer Services has categorized these distinctions into four ''Income Levels'':
LEVEL ONE: household income less than 150436000f the Federal Poverty Level.
LEVEL TWO: household income at or above 150but not exceeding 2500f the Federal Poverty Level.
LEVEL THREE: household income at or above 251but not exceeding 30014100005000f the Federal Poverty Level.
LEVEL FOUR: household income at or exceeding 30114100000000f the Federal Poverty Level.
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
