1. Commissioner Norman J. Kennard September 26, 2018
State of Consumer Affairs at the Pennsylvania Public Utility Commission
Commissioner Norman J. Kennard
September 26, 2018

2. “A Guide to Utility Ratemaking”
“This rewritten version replaces the 35-year-old original. Everything is different – the economy, technology, the state of utility infrastructure and the art of regulation. What is unchanged is the inventiveness and dedication of the employees of this Commission who rise to the challenge every day.”

3. Tax Cuts and Jobs Act
Total Estimated Tax Savings - $421 Million Annually
Industry
Total Credit to Customers
Per Year (Est.)
Average Monthly Bill Distribution Charge Reduction (Est.)
Electric
$277 Million
5.11%
Natural Gas
$106 Million
4.92%
Water/Wastewater
$40 Million
2.21%

4. PWSA Jurisdiction Compliance Plan must address:
Future implementation of a stormwater tariff
Plan to address lead levels in the water supply and the replacement of lead service lines
Metering plan identifying unmetered accounts and plans to meter all customers
Plans to convert to the Uniform Standards of Accounts
A Self-Certification Form for Security Planning and Readiness
Plans to fully comply with Chapter 14 and Chapter 56
BCS access to PWSA customer service management information system
Filing due Sept. 28th

5. Alternative Ratemaking
Tentative Implementation Order (Aug. 23, 2018)
Mechanism approval through 66 Pa. C.S. § 1308(d) (voluntary changes in rates)
Notice requirements to customers
Proposed Policy Statement
Comments due October 22, 2018
Reply Comments due November 20, 2018

6. Methodologies Decoupling Performance incentive mechanisms (PIMs)
Ensure recovery of fixed costs
Embraces demand-side management initiatives
Performance incentive mechanisms (PIMs)
Offer utilities an earnings opportunity tied to success in delivering cost-effective energy savings
Formula rates
Reduces utility financial risk by ensuring a reasonable ROE
Multi-year rate plans
Fewer rate cases

7. Energy Affordability Study
Utilities assume that CAP bills that fall anywhere in the Commission’s energy burden ranges are affordable
Example: PECO’s CAP targets the maximum energy burden levels

8. Methodology & Next Steps
PUC, in collaboration with Penn State, is currently:
Collecting new data from utilities to determine current energy burden levels
Surveying other state public utility commissions to determine affordability levels
Reviewing other studies that examined energy burden levels, LIHEAP, collections activities, CAPs, utility service termination rates, customer payment behavior, and customer arrearages
Next Steps:
PUC expects to issue an Order with its findings this Fall

9. Universal Service Study
Universal Service Workgroup will meet on:
Thursday, September 27th
8:30 to 10:30 a.m.
Sheraton Harrisburg-Hershey in Harrisburg
Meeting topic: proposal to change the review of Universal Service and Energy Conservation Plans (USECPs) to a five-year schedule (currently, utility USECPs are reviewed once every three years)   
PUC expects to see an Order with recommendations in 1st Quarter 2019

10. Failure to Appear Matters
Strydio, Anderson, and Marable
Joint Motion of Commissioners Kennard and Sweet (July 12, 2018)
Facts: Complainants failed to appear at scheduled hearing
Complainants provided no reason why they failed to contact the OALJ to explain their absence or to seek a continuance
Excuse raised for the first time in Exceptions
Analysis: Once the record is closed, complainants must provide a compelling explanation why he/she failed to raise her excuses in a timely fashion with the ALJ
Determination: Complaints dismissed

11. DSIC Investment

12. Natural Gas Pipeline Investment

13. Leveraging Smart Meter Investment
Currently, 2/3 of existing analog meters have been replaced by smart meters
Over $1 billion in investment
Completion goal of 2021
Benefits of smart meter technology:
Power restoration
System resiliency
Grid modernization
DER

14. Broadband Pennsylvania Broadband Investment Incentive Program
Broadband mapping and speed test initiative:

15. Pole Attachments
Rulemaking to assert Commission jurisdiction over pole attachments and create a forum for dispute resolution
Adopts the Federal Communications Commission’s (FCC) regulations over pole attachments in totality

16. Thank You
Questions?