xgf RE: January 21,2015 Todd M. Swanson, Esq., Counsel, Peoples Gas WV LLC Steptoe & Johnson PLLC PO Box 1588 Charleston, WV

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1 201 Brooks Street, P.O. Box 812 ~h~ri~s~on, West Virg~nia Phone: (304) Fax: (304) January 21,2015 Electronic Service Only Todd M. Swanson, Esq., Counsel, Peoples Gas WV LLC Steptoe & Johnson PLLC PO Box 1588 Charleston, WV RE: Peoples Gas WV LLC Dear Mr. Swanson: The Staff Memorandum issued today was served via on the above-listed parties. Any responses must be submitted to the Executive Secretary s Office in writing within 10 days of this date, unless directed otherwise. You will not receive a copy of the Staff Memorandum by regular mail. Your failure to respond in writing to the utility s answer, Staffs recommendations, or other documents may result in a decision in your case based on your original filing and the other documents in the case file, without further hearing or notice. When you provide an address, you will automatically receive electronic docket notifications as documents are filed in this proceeding. The notifications allow recipients to view a document within an hour from the time the filing is processed. If you have not done so, you are encouraged to file the Electronic Mail Agreement, previously mailed to you, which allows the Commission to serve all issued in this matter via electronic docket notification. Please note - the Public Service Commission does not accept electronic filings Sincerely, IFkg Enc. - Memo xgf Ingrid Ferrell, Director Executive Secretary Division

2 INITIAL AND FINAL JOINT STAFF MEMORANDUM TO: INGRID FERRELL Executive Secretary DATE: January 21,2015 SUBJECT: Peoples Gas WV LLC Tariff filing to expand service territory Staff of the Public Service Commission recommends that the Commission enter an order approving the request of Peoples Gas WV LLC to change its tariff to reflect its proposal to expand its service territory and for waiver of hrther notice, hearing, and filing requirements. In an Order entered on November 8,2013 in Peoples Gas WV LLC, Case No G-PC, the Commission approved, pursuant to W.Va. Code $ , the joint petition of PNG Companies, LLC and Equitable Gas Company, LLC (as amended by the terms of a Joint Stipulation and Agreement for Settlement) for permission for PNG to acquire Equitable s retail natural gas operations in West Virginia. The proposed acquisition was part of a larger transaction in which PNG sought to acquire Equitable s retail natural gas operations in Pennsylvania and Kentucky. In Paragraph 10 b. of the Joint Stipulation, Peoples Gas WV committed to work with the other parties... to make a tariff filing within one (1) year of closing [of the transaction] to expand its service territory... by at least one (1) adjacent county or portion thereof, which will be limited to an area that Peoples Gas WV determines that it will be able to serve in a responsible manner. The parties also agreed that [wlithin six (6) months following the issuance by the Cominission of a Final Order in the Initial [tariffl Filing, Peoples Gas WV will... [consider] the possibility of further expansion of its service territory. In its filing in this case, Peoples Gas LLC proposed to extend service to approximately forty-five households along Route 76 near Galloway in northwest Barbour County, West Virginia that would be able to switch froin an alternate fuel to natural gas if the proposed tariff change is approved. Peoples stated that it will notify those households of the possibility of a line extension, which would be made pursuant to the provisions of Rule 5.5 of the Commission s Rules for the Government of Gas Utilities and Gas Pipeline Sufety. In its filing, Peoples also offered its belief that the extension would not require a certificate of public convenience and necessity.

3 Peoples further indicated that it had determined that the proposed expansion would not violate the Commission s prohibition on utility-on-utility competition, having determined through conversations with representatives of Dominion Hope and Mountaineer Gas that neither company took issue with the filing and thus that no other utilities have facilities in the area where the conversion would take place. Peoples requested that the Commission waive any further notice, hearing and filing requirements based on its assertion that its filing complies with its obligations established in the Joint Stipulation and Agreement for Settlement in Case No , and enter an order approving the proposed expansion of its service territory as soon as possible. In the attached Znitial and Final memoranda, Eric DeGruyter and David Pauley of the Commission s Engineering and Utilities Divisions both recommend approval of the proposed tariff change for the expansion of Peoples Gas WV, LLC s service territory, as well as its request for the specified waivers. Both also state that a certificate of convenience and necessity is not required under the circumstances. The Legal Division concurs with Technical Staffs findings and recommendations and recommends that the Commission enter an order approving the proposed tariff change and the requested waivers of further notice, hearing, and filing requirements. DASIbg Attachment cws (v b7$& H:\tsade\Cases-Z014\0ther Casesveoples Gas-Initial and FInal Joint Staff Memo.doc

4 INITIAL AND FINAL ENGINEERING DIVISION STAFF MEMORANDUM Date: January 12,ZO 15 To: From: Subject: David A. Sade, Staff Attorney, Legal Division Eric degruyter, * echnical Analyst, Engineering Division Peoples Gas WV LLC Tariff filing to expand service territory The subject case involves a request by Peoples WV LLC (Peoples) for approval of a tariff change which will facilitate Peoples expansion of natural gas service into an additional county. By terms of a stipulation and agreement and Commission Order in Case No G-PC, Peoples was required to make a tariff filing within one year to expand its service territory by at least one adjacent county or portion thereof, if Peoples Gas WV can reasonably serve the new area. Within six months of a final Commission Order on that initial tariff filing, Peoples Gas WV will consider further expanding where it provides service. This filing, in Staffs opinion, satisfies the first of the two-part requirement. Peoples is proposing to expand into Northern Barbour County by installing a main extension from its existing distribution system to potentially 45 residential customers who currently do not have natural gas service available to them. The extension would be made in accordance with the Commission s Rule 5.5 of the Rules and Regulations for the Government of Gas Utilities and Gas Pipeline Safety. In order to do this, a change to its existing tariff is necessary to add Northern Barbour County to the list of counties served. Peoples proposes to file Notice in a Barbour County newspaper and make individual contact with each potential customer. Accordingly, Peoples requests that no further notice be required and that any hearing be waived.

5 December 12,20 15 Page 2 Engineering Staff does not believe a certificate of convenience and necessity is required, recommends that the requested waivers be granted and that the tariff change be approved. Edls

6 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA UTILITIES DIVISION INITIAL AND FINAL MEMORANDUM FROM: David Pauley, Utilities Analyst Supervisor Utilities Division DATE: January 12,2015 SUBJECT: CASE NO G-T PEOPLES GAS WV LLC Tariff filing to expand service territory On December 17, 2014, Peoples Gas WV LLC (Peoples) made a tariff filing to expand its service territory as defined on the cover sheet of its tariff by at least one adjacent county or portion thereof. By final order in Case No G-PC, dated November 8, 2013, the Commission approved the acquisition of the West Virginia assets of Equitable Gas Company, LLC and the operation of those assets in a new wholly owned subsidiary of PNG to be known as Peoples Gas WV LLC. As provided for in the joint stipulation in that case, Peoples agreed to make a tariff filing within one year of closing to expand its service territory as defined on the cover sheet of its tariff by at least one adjacent county or portion thereof, subject to certain conditions. By this filing, Peoples proposes to extend service to certain households along Route 76 near Galloway in northwest Barbour County, West Virginia that are prospects for conversion from an alternate fuel to natural gas. Peoples will individually notify the approximate 45 households about the possibility of a line extension. The extension would be made pursuant to the provisions of Rule 5.5 of the Commission's Rules for the Government of Gas Utilities and Gas Pipeline Safety. Peoples believes that this extension will not require a certificate of public convenience and necessity. Included with the petition is a First Revised Tariff Cover Sheet reflecting the addition of Northern Barbour to the list of counties served. A Report on Tariff Change (Tariff Form 2) is attached. Also provided is a copy of the public notice for Barbour County that was to be published on December 22, Peoples asserts there are no issues with utility-on-utility competition as both Dominion Hope and Mountaineer Gas have been contacted and have no issue with the extension.

7 Utilities Division Initial and Final Memorandum January 12,2015 Page 2 Peoples requests that the Commission waive further notice, hearing and filing requirements in this matter and enter an order approving the expansion of its service territory as soon as practicable. The Utilities Division recoinmends approval of the requested waivers, hearings and filing requirements in this matter and the approval of the expansion of Peoples service territory. DLP:s