1. 1 Pennsylvania Public Utility Commission Organizational Structure & Responsibilities Ahmed Kaloko, Ph.D. Chief Economist Commonwealth of Pennsylvania

2. 2 Pennsylvania Public Utility Commission Office of the Chairman and Commissioners Consists of five statutory members appointed by the Governor for staggered five-year terms Must be approved by a majority of all members of the Senate Commissioners provide policy guidance and direction to the Commission on matters affecting utility rates and services, as well as Commission personnel, budget, fiscal, and administrative matters Each Commissioner maintains a personal support staff of five people One additional administrative aide for Chairman provides for continuity when the incumbent changes.

3. 3 PUC Budget: Fiscal Year A. EXECUTIVE BUDGET State Funds Federal Funds Personnel Operating Fixed Assets Total State Funds Total Federal Funds B. PHILADELPHIA TAXICAB MEDALLION BUDGET Personnel Operating Fixed Assets Total C. REVENUE Total

4. 4 PUC Organization and Staff n Five full-time Commissioners n PUC authorized complement of 500 employees n Staff include attorneys, rate and financial analysts, auditors, economists, engineers, motor vehicle and railroad specialists, safety inspectors and enforcement officers. n The staff work together with administrative, fiscal, computer, stenographic and clerical personnel in 11 offices and bureaus. n PUC headquarters in Harrisburg with regional offices in Philadelphia, Pittsburgh, Scranton, and Altoona.

5. 5 Office of the Executive Director (OED) n Coordinates the activities of the Bureaus, except the prosecutory functions of the Office of Trial Staff. n It is the management link between the Commissioners and the 11 offices and bureaus. n It has administrative control and supervision over all Commission offices and bureaus. n It is responsible for preparation of the budget, fiscal controls, assessment process, planning activities and overall PUC management. n Within the OED is the Communications, Press and Personnel Offices, and Community Relations Liaison.

6. 6 Director of Legislative Affairs The Director is the Commission’s link with the General Assembly, Congress, the Administration and the National Association of Regulatory Utility Commissioners (NARUC).

7. 7 The Secretary’s Bureau n The Secretary signs all official actions and decisions issued. n The Bureau coordinates the development of PUC Public Meeting Agenda and the Secretary attends all Public Meetings to ensure the Agenda is completed and that the Minutes are properly recorded and subsequently maintained. n The PUC’s Office of Prothonotary is organized within the Secretary’s Bureau and it has responsibility to centralize and professionalize the Commission’s files, dockets, and records. n The Prothonotary is responsible for servicing all official PUC actions and the dissemination of appropriate information. n The Prothonotary can reject a utilities’ filing if the filing is inadequate. n This office has a computerized Case Management System which can provide daily, weekly, and monthly case status reports. It performs scheduling and monitors compliance orders.

8. 8 Office of Special Assistants (OSA) n OSA is the PUC’s advisory support bureau and is the focal point and coordinator of the preparation of final PUC Orders. n OSA provides both technical and legal advice to the PUC. n The Office reviews decisions by Administrative Law Judges; Recommended Decisions; Exceptions; Petitions; reconsiderations; modifications or clarifications of PUC final orders. n The Office prepares polling sheets and advisory memoranda in general rate increase proceedings or other proceedings. n Reviews and makes recommendations on unprotested telecommunications applications under Chapter 11 of the PUC Code.

9. 9 Law Bureau n The Director of the Law Bureau is also the PUC’s Chief Counsel. n The Law Bureau’s program functions reflect the extensive responsibility of the PUC itself. n The Law Bureau is a multi-function staff consisting of a prosecutory function, an advisory function, a representational function and enforcement function. n The Law Bureau provides legal support to other Commission bureaus and the PUC directly on a wide variety of regulatory matters involving electric, natural gas, telephone, water and common carriers. n The Law Bureau has prosecutory authority in non-rate case proceedings such as complaints. n This office can intervene in cases before federal forums in which communications and energy issues affect Pennsylvania.

10. 10 Office of Trial Staff (OTS) n OTS is responsible for and assists in the development, challenge, and representation on the record of all matters in the public interest in all PUC proceedings except those involving transportation, safety, eminent domain, siting, service issues having no impact on rates, and ability to pay. n The Director of OTS can petition the PUC, or may be directed by the PUC, to intervene to protect the public interest in the expected proceeding. n The Director of OTS is also the Chief Prosecutor of the PUC. He directs and supervises a permanently assigned staff of legal and technical employees. n The Director reports to the Commission for all prosecutory functions. He reports to the PUC through the OED for all administrative matters. n In a given year, this office can litigate up to 26 cases involving $36 million. n During the electric restructuring cases, OTS participated in all the cases involving over $18 billion.

11. 11 Office of Administrative Law Judge (OALJ) n OALJ provides fair, prompt conflict resolution by independent ALJs. n ALJs preside at formal hearings in contested matters before the PUC. n They gather all the facts relating to individual cases and prepare written decisions outlining the issues in the case and recommending a resolution to the dispute. n ALJs are supported by a bureau staff of administrators, secretaries, analysts, engineers, and attorneys with expertise in the regulation of electric, natural gas, telephone, water and transportation utilities.

12. 12 Bureau of Conservation, Economics & Energy Planning (CEEP) n CEEP conducts studies and research in a variety of matters within the PUC’s jurisdiction and advises the PUC in order to facilitate regulation in the best interest of all parties concerned (Electric Competition, Gas Deregulation, Water Utility Regulation). n CEEP performs economic policy and planning functions for the PUC. n Provides recommendations concerning utility mergers and acquisitions, market power and antitrust issues. n Analyzes rate impact analysis on consumers. n Develops Economic Development Programs for the PUC. n Develops Performance-Based Ratemaking. n Provides information to the legislature and the public. n CEEP is the market monitoring unit of the PUC.

13. 13 Bureau of Fixed Utility Services (BFUS) n BFUS is a multi-purpose organization providing technical support to the PUC on rate and tariff matters in electric, gas, telephone and water utilities. n BFUS is the principal advisor to the PUC on technical matters. n Provides technical prosecutory services to OTS and Law Bureau. Staff performing this function report to the Prosecutory Supervisor. n Reviews tariffs, securities certificates, and affiliated interest agreements filed by utilities. n Reviews a variety of applications filed by utilities, including the licensing of competitive electric suppliers. n Review telephone emergency 911 system plans. n Lead bureau for emergency actions pertaining to utilities.

14. 14 Bureau of Audits n Responsible for the conduct of audit activity of the electric, natural gas, telephone and water utilities. n Performs energy and fuel audits of 50 gas and steam heat utilities (for billing accuracy) n Performs Original Cost Audit (OC), Continuing Property Records audits (CPR [five-year audit]) and compliance audits. n Performs Management Audits and Management Efficiency Investigation (cost containment audit and efficiency) n The audits are mandated for 33 large and medium-sized utilities n The audits for the 19 large utilities are performed by outside consultants or bureau staff.

15. 15 Bureau of Consumer Services (BCS) n BCS has two important Divisions n The Field Services Division is responsible for handling complaints filed against electric, gas, telephone, steam heat, water and sewage. n Investigators arbitrate billing, credit and problems. Staff can issue binding decisions for informal disputes. n BCS has Residential Termination Unit available to consumers toll free. n The Research and Information Division is responsible for monitoring and evaluating utilities’ customer services practices and program. n Ensures utilities comply with customer service regulations as well as regulations pertaining to the Low Income Usage Reduction Program (LIURP) and Customer Assistance Program (CAP) n Consumer Services Information System (CSIS) tracks trends in compliant frequency, utility terminations, collections of accounts, and utility behavior.

16. 16 Bureau of Transportation & Safety (T&S) n T&S is responsible for regulation of various aspects of railroad safety, gas safety, and motor carrier safety and service in Pennsylvania. n The Motor Carrier Services Division is involved in all areas of motor carrier transportation regulation (trucks, buses, taxis, and limousines). n The Technical Review Section reviews violations and prepares all informal and formal enforcement action regarding motor carriers. n The Rail Safety Division is responsible for the administration and processing of formal and informal rail safety complaints and safety inspections for compliance with the Federal Railroad Administration’s track, operating practice and freight car standards. n The Gas Safety Division acts as an agent for the Office of Pipeline Safety, U.S. Department of Transportation.

17. 17 Bureau of Administrative Services Director is responsible for planning, organizing and directing a comprehensive administrative services/support program for the Commission. The Director supervises the preparation of the PUC budget and fiscal, assessment and Medallion, contracts/accounts and travel, supply and services and Management Information Services functions. Servers as principal advisor to the Executive Director for administrative matters in the operation of the PUC. Confers with office/bureau directors and managers concerning the administrative needs of the PUC. Determines goals, objectives and work priorities for the administrative services function and evaluates effectiveness. Determines information systems priorities.