Copies of this document have been served on the Presiding Officer and parties to this matter as indicated on the enclosed Certificate of Service.

Transcription

1 K&L GATES K&L Gates UP 17 North Second Street, 18th Floor Harrisburg,PA January 4, 2011 Via Hand Deliverv i vv^lgates o X) rn 73 3> d c:.dc 3»» [ ~D 3C CO ro r\3 m o rn rn o Rosemary Chiavetta, Secretary Pennsylvania Public Utility Commission Commonwealth Keystone Bldg., 2nd Floor 400 North Street Harrisburg, PA Re: Application of Peregrine Keystone Gas Pipeline, LLC for Approval on a Nonexclusive Basis to Begin to Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration, and Transportation or Conveying Service by Pipeline to the Public in All Municipalities Located in Greene and Fayette Counties and in East Bethlehem Township in Washington County, Pennsylvania. Docket No. A Dear Secretary Chiavetta: Enclosed please find an original and three copies of Peregrine Keystone Gas Pipeline, LLC's answer to petition to intervene of FirstEnergy Solutions Corp. for filing in the above-captioned matter. Copies of this document have been served on the Presiding Officer and parties to this matter as indicated on the enclosed Certificate of Service. Very truly yours Daniel P. Delaney PA Attorney I.D. 2395i Counsel for Peregrirre Keystone, as Pipeline, LLC Enclosures c: Hon. Susan D. Colwell, Administrative Law Judge (w/enc.) Parties of Record (w/enc.) HA vl

2 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION THE HONORABLE SUSAN D. COLWELL PRESIDING Application of Peregrine Keystone Gas Pipeline, LLC for Approval on a Nonexclusive Basis to Begin to Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration, and Transportation or Conveying Service by Pipeline to the Public in All Municipalities Located in Greene and Fayette Counties and in East Bethlehem Township in Washington County, Pennsylvania. Docket No. A ANSWER OF PEREGRINE KEYSTONE GAS PIPELINE, LLC TO PETITION TO INTERVENE OF FIRSTENERGY SOLUTIONS CORP. Pursuant to Section 5.66 of the Pennsylvania Public Utility Commission's ("Commission's") regulations, 52 Pa. Code 5.66, Peregrine Keystone Gas Pipeline, LLC ("Peregrine" or "Applicant"), files this answer to the Petition to Intervene of FirstEnergy Solutions Corp. ("FES"): INTRODUCTION On September 17, 2010, Peregrine filed an Application with the Commission for approval on a non-exclusive basis to begin to offer, render, furnish or supply natural gas gathering, compression, dehydration, transportation or conveying service by pipeline to the public in all municipalities located in Greene and Fayette Counties, Pennsylvania, and in East Bethlehem Township in Washington County, Pennsylvania. The Application was docketed by the Commission Secretary at A ("the Application"). On October 2, 2010, notice of Peregrine's Application was published in the Pennsylvania Bulletin, 40 Pa. B (October 2, 2010). As directed by Secretarial letter dated September 21, 2010, public notice of the application was published in The HA vl

3 Tribune-Review on September 24, 2010, and in The Observer-Reporter on September 25, 2010, newspapers of general circulation in the proposed service territory. Protests and petitions to intervene were required to be filed with the Commission and served on Peregrine on or before November 1, On December 15, 2010, FES filed its petition to intervene. FES' petition to intervene is late. The averments of FES' petition fail to establish good cause for its late filing under decisions ofthe Commission and its intervention should be denied as untimely. In the event the Presiding Officer permits the late intervention, FES' participation should be limited to the issue raised in its intervention petition which appears to be the impact of construction of Peregrine's facilities upon the transmission and distribution lines of West Penn Power Company. ANSWER 1. Denied. Peregrine lacks sufficient knowledge or information to form a belief as to the truth of the allegation and, so, it is denied. 2. Denied. Peregrine lacks sufficient knowledge or information to form a belief as to the truth of the allegation and, so, it is denied. By way of further response, Peregrine asserts that none of the facilities identified in this paragraph of FES' petition are located in Peregrine's proposed service area. 3. Admitted. 4. Admitted, except for the allegation that "[t]his proposed service territory lies within the service territory of West Penn Power Company." Peregrine lacks sufficient knowledge or information to form a belief as to the truth ofthis allegation and, so, it is denied. 5. Admitted. By way of further response, as directed by Secretarial letter dated September 21, 2010, public notice of the application was published in The -2-

4 Tribune- Review on September 24, 2010, and in The Observer-Reporter on September 25, 2010, newspapers of general circulation in the proposed service territory. 6. Admitted. 7. Admitted. 8. Admitted. 9. Admitted. 10. Denied. Peregrine lacks sufficient knowledge or information to form a belief as to the truth of the allegation and, so, it is denied. This paragraph also contains conclusions of law to which no response is required. To the extent a response is required, the allegations are denied. There is no information in Peregrine's application that states or indicates that West Penn's transmission or distribution facilities will be affected by Peregrine's proposed pipeline. Peregrine denies any other allegations in this paragraph. 11. Denied. Peregrine lacks sufficient knowledge or information to form a belief as to the truth of the allegation and, so, it is denied. The paragraph also contains conclusions of law to which no response is required. To the extent a response is required, the allegations are denied. By way of further response, the Commission has certificated (and therefore regulated) intrastate pipeline utilities providing gathering and related services in two other precedential cases. See Application of Ardent Resources, Inc., Docket No. A (Opinion and Order entered April 16, 2007) and Application of Allegheny Land and Exploration, Inc., Docket No. A (Opinion and Order entered March 7, 2005). The Commission has determined that it has jurisdiction over gas dehydration service in Peoples Independent Producers Group v. The Peoples Natural Gas Company, d/b/a Dominion, Docket Nos. C and P (Opinion and Order entered September 13, 2005). Peregrine denies that any FES facilities located in "the Marcellus Shale region of Pennsylvania" will be affected by any -3-

5 facilities proposed by Peregrine in its application since none are located in Peregrine's proposed service territory. 12. Denied. Peregrine lacks sufficient knowledge or information to form a belief as to the truth ofthe allegation and, so, it is denied. This paragraph also contains a conclusion of law to which no response is required. Peregrine denies any other allegations in this paragraph. 13. Denied. This paragraph contains a conclusion of law to which no response is required. To the extent a response is required, the allegations are denied. 14. Denied. Peregrine lacks sufficient knowledge or information to form a belief as to the truth of these allegations and, so, they are denied. Peregrine submits that the allegations contained in this paragraph of the FES petition do not establish good cause for the late filing of its intervention petition pursuant to Section 5.74(b)(1) of the Commission's regulations or Commission decisions. In In Re Penn Access Corp., Commission Dkt. No: A , 1992 Pa. PUC Lexis 56 (1992), the Commission stated that it will allow a late intervention when the allegations of a petition satisfy a four part test to show "good cause." The elements of the test are: (1) the petitioner has a reasonable excuse for missing the intervention or protest due date; (2) the proceeding is contested at the time of the filing of a petition for intervention; (3) the grant of intervention will not delay the orderly progress of the case; and (4) the grant of intervention will not broaden significantly the issues or shift the burden of proof. FES admits in this paragraph that it is familiar with Commission proceedings and monitors notices in the Pennsylvania Bulletin and news reports in Western Pennsylvania. No explanation is provided why FES did not file a timely intervention petition as a result of the notices ofthe application published in the Pennsylvania Bulletin on October 2, 2010, or the notices published on September 21, 2010 and September 24, 2010 in newspapers of general circulation in the proposed service area. The granting ofthe late intervention will broaden the issues in the proceeding to include the potential impact of -4-

6 the application on the facilities of West Penn Power Company, which no other intervener or protestant has raised. In In Re Application of Touch of Class Limo, Inc., Commission Dkt. No. A , 1995 Pa. PUC Lexis 62 (1995), Administrative Law ("ALJ") Judge Michael C. Schnierle held that all four of these conditions should be met before a late filed protest should be permitted. ALJ Schnierle's decision became final by operation of law. The Commission has held that the same test should apply to intervention petitions. 1 FES' late filed petition to intervene fails two parts of the four part test used to show good cause in In Re Penn Access Corp. and should be denied. If the Presiding Officer decides to grant this late filed intervention, Peregrine respectfully requests that FES' intervention be limited pursuant to Section 5.75(b) to the issue identified in its intervention petition which is the impact of Peregrine's facilities upon the transmission and distribution facilities of West Penn Power located in the proposed service area. 15. Denied. The case has been assigned to Administrative Law Judge Susan D. Colwell. 16. Denied. This paragraph contains a conclusion of law to which no response is required. To the extent a response is required, the allegations are denied. CONCLUSION WHEREFORE, for all the foregoing reasons, Peregrine Keystone Gas Pipeline, LLC respectfully requests the Presiding Officer to issue an order which: 1. Denies FES' petition to intervene as untimely, or alternatively, 2. To the extent that the Presiding Officer permits the late filed intervention, that FES* intervention be limited to the issues identified in its intervention petition 1 The Commission has interpreted "the good cause" standard of Section 5.74 related to interventions as analogous to the "good cause" standard of Section related to protests. See In Re Penn Access Corp., 1992 Pa. PUC Lexis 56 at *8. -5-

7 pursuant to Section 5.75(b) of the Commission's regulations, 52 Pa. Code 5.75(b); and 3. Grant whatever additional relief is just and reasonable. Respectfully submitted, K&L Gates LLP 17 North Second Street; 18 th Floor Harrisburg, PA (717) (717) (Fax) Dated: January 4, 2011 Daniel P. Delaney PAAttorney I.D George A. Bibikos PA Attorney I.D. 912/9 Counsel for Peregri Pipeline, LLC one Gas -6-

8 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION Application of Peregrine Keystone Gas Pipeline, LLC for Approval on a Nonexclusive Basis to Begin to Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration, and Transportation or Conveying Service by Pipeline to the Public in all Municipalities located in Greene and Fayette Counties and in East Bethlehem Township in Washington County, Pennsylvania. Docket No. A VERIFICATION I, D. Loren Fuller, hereby state that the facts set forth in the foregoing are true and correct to the best of my knowledge, information and belief and that I expect to be able to prove the same at a hearing held in this matter. I understand that the statements herein are made subject to the penalties of 18 Pa. C.S (relating to unsworn falsification to authorities). Date: / /U // i n D. Loren Fuller Peregrine Keystone Gas Pipeline, LLC " ' ona HA vl

9 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION Application of Peregrine Keystone Gas Pipeline, LLC for Approval on a Nonexclusive Basis to Begin to Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration, and Transportation or Conveying Service by Pipeline to the Public in All Municipalities Located in Greene and Fayette Counties and in East Bethlehem Township in Washington County, Pennsy vania. Docket No. A CERTIFICATE OF SERVICE I hereby certify that I have this day served a true and correct copy of the foregoing document upon the individuals listed, in accordance with the requirements of Section 1.54 (relating to service by a party). Brian J. Clark, Esq. Shawn N. Gallagher, Esq. Buchanan Ingersoll & Rooney, PC 213 Market Street, 3rd Floor Harrisburg, PA Audrey Daly, Esq. Saul Ewing LLP 2 North 2nd Street, 7th Floor Harrisburg, PA Adeolu Bakare, Esq. Office oftrial Staff PA Public Utility Commission P.O. Box 3265 Harrisburg, PA HA-25I454 vl

10 James A. Mullins, Esq. Office of Consumer Advocate Forum Place, Sth Floor 555 Walnut Street Hamsburg, PA Brian J. Knipe, Esq. Buchanan Ingersoll & Rooney PC 17 North Second Street, 15th Floor Harrisburg, PA Russell L. Schetroma, Esq. Steptoe & Johnson PLLC 201 Chestnut Street, Suite 201 Meadville, PA Theodore J. Gallagher, Esq. NiSource Corporate Services Company 121 Champion Way, Suite 100 Canonsburg, PA Kurt L. Krieger, Esq. Steptoe & Johnson PLLC Chase Tower - Eighth Floor PO. Box 1588 Charleston WV James OToole, Jr. Buchanan Ingersoll & Rooney PC Two Liberty Place 50 S. 16th Street Suite 3200 Philadelphia, PA Evelyn A. Hovanec 680 Coolspring Street Hopwood, PA James E. Rosenberg 555 Davidson Road Grindstone, PA Marigrace Butela 1601 W. Crawford Avenue Connellsville, PA Via U.S. Mail Via U.S. Mail Via U.S. Mail -2-

11 Veronica Coptis 3 N. Silver Street Mt. Pleasant, PA Via U.S. Mail K&L Gates LLP 17 North Second Street, 18 th Floor Harrisburg, PA (717) (717) (Fax) dan.delaney@klgates.com Daniel P. Delaney PA Attorney I.D Counsel for Peregrine Keystj Gas Pipeline, LLO. Dated: January 4,