COmpNWEALTH OF PENNSYLVAI PENNSYWANIA PUBLIC UTILITY COMMISSION Office Of Administrative Law Judge P.O. BOX3265, Harrisburg, PA

Transcription

1 COmpNWEALTH OF PENNSYLVAI PENNSYWANIA PUBLIC UTILITY COMMISSION Office Of Administrative Law Judge P.O. BOX3265, Harrisburg, PA December 21, 1999 IN REPLY PLEASE REFER TO OUR FILE In Re: R (See letter dated 11/02/99) Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Corporation Application of National Fuel Gas Distribution Corporation for Approval of Natural Gas Choice and Competition Act Restructuring Filing. NOTICE This is to inform you that a Public Input Hearings on the above-captioned case will be held as follows: Ty e: Public Input Hearing Date: Time: Location: Presiding: Tuesday, January 25, :00 p.m. City of Erie Municipal Building Council Chambers 626 State Street Erie, Pennsylvania Point of Contact: Diane Sidun Telephone: (814) Fax: (814) Administrative Law Judge Larry Gesoff 1103 Pittsburgh State Office Building 300 Liberty Avenue Pittsburgh, PA Telephone: (412) Fax: (412) EEF r-qcumenl FOLDER

2 If you are a 4fcson with a disability, aqjfc^ou wish to attend the hearing^^e may be able to make arr^krements for your special needs. Please call Norma Lewis at the Public Utility Commission:. Scheduling Office: AT&T Relay Service number for persons who are deaf or hearing impaired: pc: Chairman Quain Vice Chairman Bloom Commissioner Rolka Commissioner Browne11 Commissioner Wilson Judge Gesoff Charles McDonald - BPL 111 Eric Levis - BPL 101 Verna Edmonds - BPL Office of Trial Staff (2) Consumer Advocate Small Business Advocate Bill Barrett - FUS Norma Lewis Stephen L. Springer, Scheduling Beth Plantz Docket Section Calendar File Officer

3 One Commerce Square 417 Walnut street Harrisburg, PA Fax Q g g ^ ^ John H. Isom 99 0En29 AH 8: 15 RECEIVED S.T'.T/'-iTA^V'S BUREAU Vtorgan, Lewis & Bockius LLP C O U N S V. I. O R S A T I. A W December 28, 1999 VIA HAND DELIVERY Edmund J. Berger, Esquire Officio of Consumer Advocale 555 Walnut Street Foi'um Place, 5th Floor HanisbumPA J DOCUMENT FOLDER OCKETE DEC Re: National Fuel Gas Dislribution Corponition. Docket No. R Dear Mr. Berger: Enclosed please find an original and four copies of National Fuel Gas Dislribulion Corporation's Intcrrogalories and Requests for Procluclion of Documents to Ihe Office of Consumer Advocate - Set 1. Yours truly, John 1-1. Isom JHI/jl cc: James J. McNulty, Secretary (letter only) Certificate of Service EEF lla:8boq5.] Philadelptiia War.hinnt'in New York Lew Anp.elos Miami H.'imshiiii: I'ittshuri'.h Pnncctori Loniion Hfiiiisch; rmnktud tokyo Sin[';i iori:,'ik;iria (ASMX:I.IH:I1 Uflicf;)

4 r MCNEES, WALLACE & NURICK iscpnvfd ATTORNEYS AT LAW IOO PINE STREET P. O. BOX 1166 HARRISBURG. PA p J! Q TELEPHONE 1717) '*,A niidrall FAX ( SECRETARY S BUREAU CHARIS M. BURAK DlRBCTDlAL: (717) ADDKE&S: CBURAKISMWN, NXOM ^ //^ yl/ / fanuary 4, 2000 Edmund J. Berger, Esquire Office of Consumer Advocate 555 Walnut Street Forum Place, 5 lh Floor Harrisburg, PA VIA HAND DELIVERY Re: Application of National Fuel Gas Distribution Corporation for Approval of a Restructuring Plan; Docket No. R Dear Mr. Berger: Enclosed is the first set of interrogatories by NFG Industrial Intervenors ("NFGII") to the Office of Consumer Advocate in the above-referenced proceeding. For your convenience, we have also enclosed a copy of the interrogatories on computer diskette in Word Perfect 6.1 format. Please provide responses to these questions within ten (10) calendar days pursuant to Administrative Law Judge Gesoffs Second Prehearing Order of October 25, Please endeavor to forward the responses in an organized manner as they are completed. It is not necessary to await completion of all responses prior to forwarding those completed more quickly. Please send one (1) copy of your responses to the undersigned. In addition, please provide one (1) copy of your responses and attachments/diskette to Mr. Richard Baudino J. Kennedy & Associates 570 Colonial Park Drive Suite 305 Roswell, GA Please communicate any objections or questions that you may have with reference to these requests as soon as possible. In addition, to the extent OCA has previously provided NFGII with information relevant to any of these requests as informal discovery, please indicate the date such information was provided, the manner in which it was provided, and whether any additional COLUMBUS. OH WASHINGTON. D.C.

5 r Edmund J. Berger, Esquire January 4, 2000 Page 2 information exists to supplement your prior response. Thank you for your attention to this matter. Very truly yours, MCNEES, WALLACE & NURICK Charis M. Burak c: James J. McNulty, Secretary (Transmittal Letter and Certificate of Service only - Via Hand Delivery) Certificate of Service

6 CERTIFICATE OF SERVICE I hereby certify that I am this day serving a copy of the foregoing document upon the persons indicated below (in the manner indicated), properly addressed as follows: John Isom, Esq. Morgan Lewis 8c Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA (Candace Melillo, Esq. Office of Trial Staff Pa. Public Utility Commission 901 North Seventh Street Harrisburg, PA Edmund Berger, Esq. Office of Consumer Advocate Forum Place, 5 lh Floor 555 Walnut Street Harrisburg, PA Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Sol Suite Locust Street Harrisburg, PA VIA HAND DELIVERY DOCUMENT EQIUER Steven C. Gray, Esq. Office of Small Business Advocate 300 N. Second Street, Suite 1102 Harrisburg, PA Daniel Delaney, Esq. Kirkpatrick & Lockhart LLP Payne-Shoemaker Building 240 North Third Street Harrisburg, PA John A. Wilson, Executive Director Community Action Association of PA 222 Pine Street Harrisburg, PA VIA FACSIMILE & FIRST CLASS MAIL John J. Gallagher, Esq. LeBoeuf, Lamb, Green and MacRae, LLP Suite 300 cn m 200 North Third Street o TO P.O. Box m Harrisburg, PA CDd m C o Joelle Ogg, Esq. John & Hengerer 1200 l?* Street, NW, Suite 6( Washington, DC Craig Goodman, Esq. National Energy Marketers Association 3333 K Street NW, Suite 425 Washington, DC Usher usni Fogel, Esq. Loland Fogel Koblenz & Petroccione ibia Place A1E/MNY mo Delia Stroud, Esq. PECO Energy Co Market Street, S23-1 Philadelphia, PA

7 r Certificate of Service Docket No. R S Page 2 Jay Dawson, Esq. T.W. Phillips Gas & Oil Co. 205 N. Main Street Butler, PA Scott J. Rubin, Esq. 3 Lost Creek Drive Selinsgrove, PA Kenneth C. Springirth 4720 Cliff Drive Erie. PA FIRST CLASS MAIL Charis M. Burak Dated this 4th day of January, 2000, in Harrisburg, Pennsylvania.

8 ^1 DMMONWEALTH OF PENNSYLVANIA IRWIN A, POPOWSKY Consumer Advocate OFFICE OF CONSUMER ADVOCATE 555 Walnut Street 5th Floor, Forum Place Harrisburg, Pennsylvania (717) FAX (717) January 7, 2000 LP John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA % CP" cr: TO c: r_n Re: PA PUC v. National Fuel Gas Dislrubution Corporation Docket No. R Dear Jack: Enclosed pleasefindthe Office of Consumer Advocate's responses to Interrogatories, Set I, addressed to the Office of Consumer Advocate. Also enclosed is a copy of the Certificate of Service for these responses, which has been filed with Secretary McNulty of the Pennsylvania Public Utility Commission. Verv trulv vours. Barrett C. Sheridan Assistant Consumer Advocate Enclosures cc: All parties of record James J. McNulty. Sec, (Certificate of Service Only) Mr: Richard Baudino

9 r CERTIFICATE OF SERVICE Rc: Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Corporation Docket No. R I hereby certify that 1 have this day served a true copy of the foregoing documents, OCA Responses to NFG's Interrogatories, Set I, upon parties of record in this proceeding in accordance with the requirements of 52 Pa. Code 1.54 (relating to service by a participant), in the manner and upon the persons listed below: Dated this 7"' day of January, m SERVICE BY INTER-OFFICE MAIL O Kandace F. Melillo, Esq. Office of Trial Staff Pitnick Bldg. 901 North 7 lh Street, Rear Harrisburg, PA c coc TO rn c cri i Wayne Williams PA Public Utility Commission Bureau of Consumer Services P.O. Box 3265 Harrisburu, PA SERVICE IN PERSON John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA NFG

10 r SERVICE BY FIRST CLASS MAIL, POSTAGE PREPAID Bernard A. Ryan, Esq. Steven C. Gray, Esq. Small Business Advocate Office of Small Business Advocate Commerce Bldg. Suite 1102, 300 North Second Street Harrisburg, PA Daniel P. Delaney, Esq. James P. Melia, Esq. Kirkpatrick & Lockhart, LLP 240 N. Third Street Harrisburg, PA Texas Eastern Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Solis-Cohen, LLP 212 Locust Street, Suite 300 Harrisburg, PA John A. Wilson, Executive Dr. Community Action Association of PA 222 Pine Street Harrisburg, PA Scott J. Rubin, Esq. 3 Lost Creek Dr. Selinsgrove, PA 17S70 Mr. Robert D. Knecht Industrial Economics Inc Massachusetts Ave. Cambridge, MA Delia W. Stroud PECO Energy Company 2301 Market Street. S23-1 Philadelphia, PA Usher Fogel Roland, Fogel, Koblenz & Petroccione, LLP 1 Columbia Place Albany, NY PPA and SCMC John J. Gallagher, Esq. LeBoeuf, Lamb, Greene & MacRae 200 North Third Street, Suite. 300 P.O. Box Harrisburg, PA Statoil Energy Services, Inc. TXU Energy Trading Company Robert A. Weishaar, Jr., Esq. Charis M. Burak, Esq. McNees, Wallace & Nurick 100 Pine Street P.O. Box 1166 Harrisburg, PA NFG Industrial Intervenors Kenneth Springirth 4720 Cliff Drive Erie, PA Barrett C. Sheridan, Erin L. Horting Assistant Consumer Advocates Edmund J. Berger Senior Assistant Consumer Advocate Counsel for Office of Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA {717)

11 MMONWEALTH OF PENNSYLVANI IRWIN A. POPOWSKY Consumer Advocate OFFICE OF CONSUMER ADVOCATE 555 Walnut Street 5th Floor, Forum Place Harrisburg, Pennsylvania (717) FAX (717) John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA CUME H? nuary 7 ' 2000 FOLDER cn rri o m DO- CZ m 3> CD zx CO o Re: PA PUC v. National Fuel Gas Dislrubution Corporation Docket No. R Dear Jack: Enclosed please Find the Office of Consumer Advocate's responses to Interrogatories, Set I, addressed to the Office of Consumer Advocate. Also enclosed is a copy of the Certificate of Service for these responses, which has been filed with Secretary McNulty of the Pennsylvania Public Utility Commission. Very truly yours. Barrett C. Sheridan Assistant Consumer Advocate Enclosures cc: All parties of record James J. McNulty, See. (Certificate of Service Only) Mr. Richard Baudino 56170

12 r CERTIFICATE OF SERVICE Re: Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Corporation Docket No. R I hereby certify that I have this day served a true copy of the foregoing documents, OCA Responses to NFG's Interrogatories, Set I, upon parties of record in this proceeding in accordance with the requirements of 52 Pa. Code 1.54 (relating to service by a participant), in the manner and upon the persons listed below: Dated this 7',1 day of January, SERVICE BY INTER-OFFICE MAIL Kandace F. Melillo, Esq. Office of Trial Staff Pitnick Bldg. 901 North 7,h Street, Rear Harrisburg, PA Wayne Williams PA Public Utility Commission Bureau of Consumer Services P.O. Box 3265 Harrisburg, PA DOCUMEN 'OLDER m o TO rn to cz TO m 7> o i t CO cn cn SERVICE IN PERSON 'OCKETE") John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA NFG

13 SERVICE BY FIRST CLASS MAIL, POSTAGE PREPAID Bernard A. Ryan, Esq. Steven C. Gray, Esq. Small Business Advocate Office of Small Business Advocate Commerce Bldg. Suite 1 102, 300 North Second Street Harrisburg, PA Daniel P. Delaney, Esq. James P. Melia, Esq. Kirkpatrick & Lockhart, LLP 240 N. Third Street Harrisburg, PA Texas Eastern Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Solis-Cohen, LLP 212 Locust Street, Suite 300 Harrisburg, PA John A. Wilson, Executive Dr. Community Action Association of PA 222 Pine Street Harrisburg, PA Scott J. Rubin, Esq. 3 Lost Creek Dr. Selinsgrove, PA Mr. Robert D. Knecht Industrial Economics Inc Massachusetts Ave. Cambridge, MA Delia W. Stroud PECO Energy Company 2301 Market Street. S23-1 Philadelphia, PA Usher Fogel Roland, Fogel, Koblenz & Petroccione, LLP 1 Columbia Place Albany, NY PPA and SCMC John J. Gallagher, Esq. LeBoeuf, Lamb, Greene & MacRae 200 North Third Street, Suite 300 P.O. Box Harrisburg, PA Statoil Energy Services, Inc. TXU Energy Trading Company Robert A. Weishaar, Jr., Esq. Charis M. Burak, Esq. McNees, Wallace & Nurick 100 Pine Street P.O. Box 1166 Harrisburg, PA NFG Industrial Intervenors Kenneth Springirth 4720 Cliff Drive Erie, PA Barrett C. Sheridan, Erin L. Horting Assistant Consumer Advocates Edmund J. Berger Senior Assistant Consumer Advocate Counsel for Office of Consumer Advocate ace 555 Walnut Street 5th Floor, Forum PI Harrisburg, PA (717) '5-1766

14 i' MONWEALTH OF PENNSYLVANIA IRWIN A. POPOWSKY Consumer Advocate OFFICE OF CONSUMER ADVOCATE 555 Walnut Street 5m Floor, Forum Place Harrisburg, Pennsylvania (717) FAX (717) January 7,2000 John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA co pi o rn --if. TP- co- c: TO i-n C 1 cn cn Re: PA PUC v. National Fuel Gas Dislrubution Corporation Docket No. R Dear Jack: Enclosed please find the Office of Consumer Advocate's responses to Interrogatories, Set 1, addressed to the Office of Consumer Advocate. Also enclosed is a copy of the Certificate of Service for these responses, which has been filed with Secretary McNulty of the Pennsylvania Public Utility Commission. Very truly yours. Barrett C. Sheridan Assistant Consumer Advocate Enclosures cc: All parties of record James J. McNulty, Sec. (Certificate of Service Only) Mr. Richard Baudino '5617(1

15 CERTIFICATE OF SERVICE Re: Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Corporation Docket No. R I hereby certify that I have this day served a true copy of the foregoing documents, OCA Responses to NFG's Interrogatories, Set I, upon parties of record in this proceeding in accordance with the requirements of 52 Pa. Code 1.54 (relating to service by a participant), in the manner and upon the persons listed below: Dated this 7,h day of January, Kandace F. Melillo, Esq. Office of Trial Staff Pitnick Bldg. 901 North 7,h Street, Rear Harrisburg, PA Wayne Williams PA Public Utility Commission Bureau of Consumer Services P.O. Box 3265 Harrisburg, PA SERVICE BY INTER-OFFICE MAIL m m _ T3 U- CP" cr: TO m pc cn cn SERVICE IN PERSON John H. Isom. Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA NFG

16 SERVICE BY FIRST CLASS MAIL. POSTAGE PREPAID Bernard A. Ryan, Esq. Steven C. Gray, Esq. Small Business Advocate Office of Small Business Advocate Commerce Bldg. Suite 1102, 300 North Second Street Harrisburg, PA Daniel P. Delaney, Esq. James P. Melia, Esq. Kirkpatrick & Lockhart, LLP 240 N. Third Street Harrisburg, PA Texas Eastern Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Solis-Cohen, LLP 212 Locust Street, Suite 300 Harrisburg, PA John A. Wilson, Executive Dr. Community Action Association of PA 222 Pine Street Harrisburg, PA Scott J. Rubin, Esq. 3 Lost Creek Dr. Selinsgrove, PA Mr. Robert D. Knecht Industrial Economics Inc Massachusetts Ave. Cambridue, MA Delia W. Stroud PECO Energy Company 2301 Market Street, S23-I Philadelphia, PA Usher Fogel Roland, Fogel, Koblenz & Petroccione, LLP 1 Columbia Place Albany, NY PPA and SCMC John J. Gallagher, Esq. LeBoeuf, Lamb, Greene & MacRae 200 North Third Street, Suite 300 P.O. Box Harrisburg, PA Statoil Energy Services, Inc. TXU Energy Trading Company Robert A. Weishaar, Jr., Esq. Charis M. Burak, Esq. McNees, Wallace & Nurick 100 Pine Street P.O. Box I 166 Harrisburg, PA NFG Industrial Intervenors Kenneth Springirth 4720 Cliff Drive Erie. PA Barrett C. Sheridan, Erin L. Horting Assistant Consumer Advocates Edmund J. Berger Senior Assistant Consumer Advocate Counsel for Office of Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA I (717)

17 COMMONWEALTH OF PENNSYLVANIA IRWIN A. POPOWSKY Consumer Advocate OFFICE OF CONSUMER ADVOCATE 555 Walnut Street 5th Floor, Forum Place Harrisburg, Pennsylvania r FAX (717) paoca@ptd.net January 11,2000 James J. McNulty, Secretary PA Public Utility Commission Room B-20, North Office Bldg. Harrisburg, PA Rc: Kenneth Springirth v. CO m o ro i TJ TO * i CD- TO m o o % ' ' ' o rn -^n CD O ^> d National Fuel Gas Distribution Corporation Docket No. C PA PUC v. National Fuel Gas Distribution Corporation Docket No. R C0001 Dear Secretary McNulty: Enclosed please find for filing an original and three (3) copies of the Office of Consumer Advocate's Answer to the First Interim Order in the above-captioned proceeding. Copies have been served upon all parties of record as shown on the attached Certificate of Service. Sincerely, Enclosures cc: All parties of Record Hon. Larry Gesoff, ALJ Kathy O'Neill Erin L. Horting Assistant Consumer Advocate

18 BEFORE THE// 0 J //A PENNSYLVANIA PUBLIC UTILITY COMMISSJO PENNSYLVANIA PUBLIC UTILITY COMMISSION v. Docket No. R NATIONAL FUEL GAS DISTRIBUTION CORPORATION tn CP CP DOCUMEN! FOLDER THE OFFICE OF CONSUMER ADVOCATE'S ANSWER TO THE FIRST INTERIM ORDER, IN THE NATURE OF A RULE TO SHOW CAUSE 5 i-c? co- * O On December 21,1999, Administrative Law Judge Larry Gesoff issued his First Interim Order in the Nature of a Rule to Show Cause ("Show Cause Order") inviting the Community Action Association of Pennsylvania ("CAAP") to submit in writing an explanation as to why its Petition to Intervene should not be stricken. In particular, the Show Cause Order took notice of the Commission's decision in the case of Pennsylvania Public Utility Commission v. Columbia Gas of Pennsylvania, Inc. at Docket No. P , entered December 17, 1999 ("Columbia Order") as raising questions as to whether CAAP should be permitted to participate in this proceeding. In the Columbia Order, the Commission affirmed Administrative Law Judge Weismandel's Initial Decision denying GAAP's intervention in the Columbia proceeding. Specifically, the Commission found that CAAP was not represented by counsel and, because it did not properly present its claim in the form of an exception under 52 Pa. Code 1.23(a)(2), that CAAP violated the 52 Pa. Code 1.22(a) requirement that a corporation be represented by CD CD

19 counsel in adversarial proceedings. Columbia Order at 5-6. The Commission determined, arguendo, that even if GAAP's claim had been artfully pleaded, the PUC would, nonetheless, not exercise its discretion to permit intervention under 1.23(a)(2) because of the timing of GAAP's intervention in light of the limitations of Columbia's procedural schedule and the OCA's participation in the case. Columbia Order at 6-7. The Office of Consumer Advocate strongly supports the efforts of CAAP to present the Commission with testimony in this proceeding and other proceedings which is relevant and probative of the issues of universal service and energy conservation and other concerns specifically raised by the Natural Gas Choice and Competition Act ("the Act"), as signed into law on June 22, Pa. C.S et seq. CAAP is a community action group which provides low-income residential utility customers with counseling, advice, payment assistance and energy conservation services. Mr. Gene Brady's pre-filed testimony on behalf of CAAP emphasizes the characteristics of low-income customers that place them at greater risk of harm than other customer groups in a restructured natural gas industry and their special needs in terms of programs and policies. Mr. Brady also presents specific proposals for LIRA (or CAP), LIURP, and a renewable energy pilot program. The OCA respectfully submits that GAAP's Petition to Intervene should not be stricken such that the effect is to deprive CAAP of all voice and opportunity to be heard in this proceeding on the important issues addressed in GAAP's timely, pre-filed written testimony. The OCA submits that CAAP should be permitted to present testimony into the evidentiary record in this proceeding for the following reasons:

20 I. GAAP's Participation In This Proceeding Will Not Unduly Disadvantage Any Party A review of the chronology of this case makes clear that GAAP's participation in this proceeding will not disadvantage any party's due process rights. First, National Fuel Gas Distribution Corporation ("NFG"or "Company") filed its proposed Restructuring Plan on October 1, 1999, consistent with the schedule established for implementation of the Act. The OCA filed its Formal Complaint on October 15, On October 25, 1999, CAAP filed a Petition to Intervene in the restructuring proceeding. This petition was granted by Administrative Law Judge Larry Gesoff on November 18, 1999 in the Third Prehearing Order. On December 16, 1999, consistent with the procedural schedule established for this proceeding, CAAP served the ALJ and all active parties with the pre-filed written testimony of Mr. Gene Brady. Mr. Brady is a member of the Board of Directors of CAAP. Hearings are not scheduled until February 15 to 18, 2000, allowing interested parties time to conduct discovery and file responsive testimony to the pre-filed written direct of all participants, including that of CAAP. Additionally, this procedural schedule permits all participants, including NFG, OCA, and CAAP time to engage in settlement discussions. Thus, the OCA submits that this proceeding concerning NFG's restructuring filing is substantially different as to schedule and timing from the facts which the Commission relied upon in upholding ALJ Weismandel's October 26, 1999 denial of GAAP's Petition to Intervene in the Columbia proceeding. See Columbia Order at 6. In the Columbia Order, the Commission determined that exercise of its discretion to permit CAAP to participate in Columbia's restructuring proceeding as the Commission had previously allowed CAAP to participate in

21 electric restructuring proceedings was not appropriate, given the limitations of the Columbia procedural schedule. Id. In contrast to Columbia, CAAP has moved to intervene in an earlier stage in this proceeding and has met the procedural schedule established by the ALJ. II. GAAP's Participation Will Assist The Commission In Its Evaluation Of NFG's Restructuring Filing. The Act identifies numerous evidentiary findings and determinations which the Commission must address in its review of the Company's restructuring filing in this proceeding. The OCA submits that the participation of CAAP and submission of testimony by CAAP into the evidentiary record will provide the Commission with testimony useful in meeting the Commission's statutory obligations under the Act. For example, Section 2203 of the Act establishes standards for restructuring of the natural gas utility industry. 66 Pa.C.S Subparts (6) through (10) address matters related to universal service, including the scope, level and availability of services to assist low-income customer to afford natural gas services. 66 Pa.C.S. 2203(6) to (10). Section 2203(7) requires that: The commission shall, at a minimum continue the level and nature of the consumers protections, policies and services within its jurisdiction that are in existence as of the effective date of this chapter to assist low-income retail gas customers to afford natural gas services. 66 Pa.C.S. 2203(7). The Act recognizes the importance of community based organizations which have experience in administering or delivering those services currently. Section 2203(8) requires the Commission "to encourage the use of community-based organizations that have the technical and administrative experience to be the direct providers..." of such universal service programs. 66 Pa.C.S. 2203(8).

22 Against this statutory backdrop, the OCA submits that GAAP's willingness and determination to provide the Commission with the benefit of its experience through the presentation of the written testimony should be neither disregarded nor deterred. According to his pre-filed testimony, Mr. Brady has over twenty years of experience with the Commission on Economic Opportunity and ten years experience with the Pennsylvania Weatherization Providers Task Force. Mr. Brady offers through his testimony a unique perspective and base of experience not reflected in any other participant's testimony. III. The Office Of Consumer Advocate's Participation Cannot And Should Not Preclude GAAP's Participation. The OCA's presence may not be used as a basis for excluding another consumer from participation in a utility proceeding. The Consumer Advocate's authorizing provisions specify that: "Nothing contained herein shall in any way limit the right of any consumer to bring a proceeding before either the commission or a court." 71 P.S (a); Barasch v. Pa. Pub. Util. Comm'n, 119 Pa. Commw. 81, 546 A.2d 1296, 95 P.U.R.4th 528 (1988). modified on denial of reargument bv. 119 Pa. Commw. 81, 550 A.2d 257 (Pa. Commw.). Even though the OCA and CAAP have proffered pre-filed written testimony on the issue of universal service, the OCA submits that the interests represented by OCA and CAAP may not always be congruent, nor do OCA and CAAP have access to the exact same base of experience on which to shape testimony. The simple fact that the OCA has filed a Formal Complaint and is an active participant cannot preclude ALJ Gesoff and the Commission from permitting CAAP to participate, including the submission of testimony into the evidentiary record. By statute, the Office of the Consumer Advocate has authority to represent the interests of Pennsylvania's

23 consumers. 71 P.S , et seq. The interests which OCA represents include all consumers. In contrast, GAAP's focus is specifically on providing services and promoting the interests of low-income consumers and efficient use of energy. As such, the fact of the OCA's participation in this proceeding cannot serve as a bar to GAAP's participation. IV. ALJ Gesoff Properly Exercised Regulatory Discretion To Permit CAAP To Participate In This Proceeding. On November 18, 1999, ALJ Gesoff issued his Third Prehearing Order granting GAAP's Petition to Intervene. Although ALJ Gesoff followed in part the reasoning of ALJ Weismandel's Initial Decision in Columbia, the Third Prehearing Order outlined two courses of action open to CAAP. Specifically, the Third Prehearing Order directed CAAP to obtain counsel to represent it or, if CAAP continued without counsel, that CAAP officers would still be permitted to testify on its behalf, subject to limitations as to other activities in the proceeding. Third Prehearing Order at 3-4. The OCA submits that given the facts of this case, ALJ Gesoff s Third Prehearing Order appropriately resolved this matter. The situation at issue in this proceeding is distinguishable from that in Columbia which is the basis of ALJ Gesoff s Show Cause Order. In this proceeding, ALJ Gesoff already determined that GAAP's continued participation, without counsel but subject to restrictions, is an appropriate course of events in the context of this proceeding. Third Prehearing Order at 3-4. The OCA submits that ALJ Gesoff properly acted to construe the Commission's Rules of Administrative Practice and Procedure liberally to promote the resolution of NFG's gas restructuring. Section 1.2 of the Commission's regulations states: This subpart shall be liberally construed to secure the just, speedy

24 and inexpensive determination of every action or proceeding to which it is applicable. The Commission or presiding officer at any stage of an action or proceeding may disregard an error or defect of procedure which does not affect the substantive rights of the parties. 52 Pa. Code 1.2(a). As recited in the Third Prehearing Order, ALJ Gesoff took the precaution of checking with counsel for NFG as to their position on GAAP's efforts to intervene, prior to entry of the Third Prehearing Order. Third Prehearing Order at 3. NFG did not oppose GAAP's participation under the terms outlined by the ALJ. Id. The OCA submits that ALJ Gesoff s determination that CAAP might present testimony was clearly within his authority to apply the exception in Section 1.23(a) which permits a corporation to be represented at a hearing without counsel before the Commission or ALJ "[a]s otherwise permitted by the Commission in a specific case." 52 Pa. Code 1.23(a)(2). The OCA submits that the Commission's reasons for denying CAAP participation in Columbia are not present here.

25 WHEREFORE, the Office of Consumer Advocate respectfully requests that the presiding officer and the Commission permit CAAP to continue to participate as set forth in ALJ Gesoff s Third Prehearing Order, and be permitted to submit testimony into the evidentiary record for the reasons stated above. Respectfully submitted, Office of Attorney General Office of Consumer Advocate 555 Walnut Street, Forum Place, 5th Floor Harrisburg, Pennsylvania (717) Dated: January 11, wpd Erin L. Horting A, Barrett C. Sheridan Assistant Consumer Advocates Counsel For: Irwin A. Popowsky Consumer Advocate

26 CERTIFICATE OF SERVICE Re: Pennsylvania Public Utility Commission «. v. National Fuel Gas Distribution Corporation Docket No. R I hereby certify that I have this day served a true copy of the foregoing documents, OCA Answer to the First Interim Order, upon parties of record in this proceeding in accordance with the requirements of 52 Pa. Code 1.54 (relating to service by a participant), in the manner and upon the persons listed below: Dated this 1 l, h day of January, Kandace F. Melillo, Esq. Office of Trial Staff Pitnick Bldg. 901 North 7 lh Street, Rear Harrisburg, PA Wayne Williams PA Public Utility Commission Bureau of Consumer Services P.O. Box 3265 Harrisburg, PA SERVICE BY INTER-OFFICE MAIL John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA NFG

27 SERVICE BY AND FIRST CLASS MAIL. POSTAGE PREPAID Bernard A. Ryan, Esq. Steven C. Gray, Esq. Small Business Advocate Office of Small Business Advocate Commerce Bldg. Suite 1102, 300 North Second Street Harrisburg, PA Daniel P. Delaney, Esq. James P. Melia, Esq. Kirkpatrick & Lockhart, LLP 240 N. Third Street Harrisburg, PA Texas Eastern Usher Fogel Roland, Fogel, Koblenz & Petroccione, LLP 1 Columbia Place Albany, NY PPA and SCMC John J. Gallagher, Esq. LeBoeuf, Lamb, Greene & MacRae 200 North Third Street, Suite 300 P.O. Box Harrisburg, PA Statoil Energy Services, Inc. TXU Energy Trading Company Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Solis-Cohen, LLP 212 Locust Street, Suite 300 Harrisburg, PA John A. Wilson, Executive Dr. Community Action Association of PA 222 Pine Street Harrisburg, PA Robert A. Weishaar, Jr., Esq. Charis M. Burak, Esq. McNees, Wallace & Nurick 100 Pine Street P.O. Box 1166 Harrisburg, PA NFG Industrial Intervenorsto rn o Kenneth Springirth 4720 Cliff Drive Erie, PA CP CD 5 o Scott J. Rubin, Esq. 3 Lost Creek Dr. Selinsgrove, PA Mr. Robert D. Knecht Industrial Economics Inc Massachusetts Ave. Cambridge, MA Delia W. Stroud PECO Energy Company 2301 Market Street, S23-1 Philadelphia, PA CP" Barrett C. Sheridan Erin L. Horting Assistant Consumer Advocates Edmund J. Berger Senior Assistant Consumer Advocate Counsel for Office of Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA (717) XT CD

28 Joseph L. Vullo Attorney at Law 1460 Wyoming Avenue Forty Fort, PA Phone: Fax: January f^rnn r- n James J. McNulty, Secretary Pennsylvania Public Utility Commission North Office Building Commonwealth and North Streets Harrisburg, PA RE: National Fuel Gas Distribution Company Docket Number: R RECEIVED JAN PA PUBLIC wm-eomimssiom Dear Secretary McNulty: Enclosed please find for filing an original and three (3) copies of my Notice of Appearance relative to the above-referenced matter. This notice is filed in response to Administrative Law Judge Larry GesofFs First Interim Order in the Nature of a Rule to Show Cause, dated December 21, Please update the Service List in this case to reflect the names and addresses in the attached notice. Sincerely, Joseph l^yullo, Esquire Attorn4 for CAAP. Inc. V DOCUMENT FOLDER

29 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMtSSlQN PENNSYLVANIA PUBLIC UTILITY COMMISSION, et al. v. DOCKET NO: R NATIONAL FUEL GAS DISTRIBUTION CORPORATION NOTICE OF APPEARANCE m i ^ 2000 Please enter my appearance in the above-designated matter -wttiahlr 6 BUREAU the Community Action Association of Pennsylvania. I hereby certify that I am authorized to accept service on behalf of said Intervenor in this matter. On the basis of this Notice, I hereby request that a copy of each document hereinafter issued by the Pennsylvania Utility Commission and/or filed by any other Party in this matter be served on (i) the undersigned, at the address set forth below, as well as on (ii) Eugene Brady, Executive Director of CEO, at P.O. Box 1127, Wilkes-Barre, PA , phone ; fax ; hebegebe@sunlink.net. Date: / JJ/do DOCKETED JAN Respectfully submitted 7 JosephcJ^Vullo, Esquire PA Attorney ID # Wyoming Avenue Forty Fort, PA Phone: (570) p p. p i \> r[ut Fax: (570) UULU V lt \ I FOLDER

30 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PENNSYLVANIA PUBLIC UTILITY COMMISSION, et al. v. DOCKET NO: R NATIONAL FUEL GAS DISTRIBUTION CORPORATON CERTIFICATE OF SERVICE I hereby certify that I have this day served a true and correct copy of the foregoing Notice, upon parties of record in this proceeding in accordance with the requirements of 52 Pa. Code 1.54 in the manner and upon the persons liste^ E^> j \/ E D SERVICE BY & FEDERAL EXPRESS Honorable Larry Gesoff Administrative Law Judge PA Public Utility Commission 1103 State Office Building 300 Liberty Avenue Pittsburgh, PA Gesoff@puc.state.pa.us JAN PA PUBLIC UTILITY CGMMISSiOV SECRETARY'S BUftEAU SERVICE BY & I s1 CLASS MAIL Bernard A. Ryan, Jr., Esquire Steven C. Gray, Esquire Office of Small Business Advocate Suite 1102, Commerce Building 300 N. Second Street Harrisburg, PA bernard ryan@dced.state.pa.us steven gray@dced.state.pa.us Kandace F. Meillo, Esquire PA Public Utility Commission, Office of Trial Staff Pitnick Building 901 N. 7th Street, Rear, P.O. Box 3265 Harrisburg, PA melillo@puc.state. pa.us

31 Jay W. Dawson, Esquire T.W. Phillips Gas and Oil Co., 205 N. Main Street Butler, PA Doreen F. Wrick Texas Eastern Transmission Corporation 1284 Soldiers Field Roadq Boston, MA Barrett C. Sheridan, Esquire Edmund J. Berger, Esquire Erin L. Horting, Esquire Office of Consumer Advocate Forum Place, 5th Floor 555 Walnut Street Harrisburg, PA Daniel P. Delaney, Esquire James P. Melia, Esquire Kirkpatrick & Lockhart, LLP 240 North Third Street Harrisburg, PA Craig G. Goodman, Esquire President National Energy Marketers Association 3333 K Street, N.W., Suite 425 Washington, DC cgoodman@energymarketers.com Scott J. Rubin, Esquire 3 Lost Creek Drive Selinsgrove, PA sjrubin@ptd.net Robert D. Knecht Industrial Economics Incorporated 2067 Massachusetts Avenue Cambridge, MA rdk@indecon.com Joelle K. Ogg, Esquire JOHN & HENGERER th Street, NW Suite 600 Washington, DC jogg@jhenergy.com Delia W. Stroud PECO Energy Company 2301 Market Street, S23-1 Philadelphia, PA dstroud@peco-energy.com Thomas Catlin Exeter Associates, Inc. Suite Prosperity Drive Silver Springs, MD tocat@exeterassociates.com Robert A. Weishaar, Jr., Charis M. Burak McNees, Wallace & Nurick 100 Pine Street P.O. Box 1166 Harrisburg, PA rweishaa@mwn.com cburak@mwn.com Louis D. D'Amico, Executive Director 234 State Street Harrisburg, PA i ogaofpa@desupernet. net

32 Richard J. Kruse Texas Eastern Transmission Corporation 5400 Westheimer Court P.O. Box 1642 Houston, TX Roger Colton Fisher, Sheehan and Colton Public Finance & General Economics 34 Warwick Road Belmont, MA rcolton Usher Fogel, Esquire Roland, Fogel, Koblenz & Petroccione, LLP 1 Columbia Place Albany, NY rfkcl2207@aol.com Keith Sappenfield Reliant Energy Retail, Inc Louisiana, 42nd Floor P.O. Box 1409 Houston, TX keith-sappenfield@relaintenergy.com Barbara R. Alexander 16 Wedgewood Drive Winthrop, ME barbalex@ctel.net Daniel Clearfield, Esquire Debra M. Kriete, Esquire Kevin J. Moody, Esquire Wolf, Block, Schorr and Solis-Cohen LLP 212 Locust Street, Suite 300 Harrisburg, PA dclearfield@wolfblock.com dkri ete@ wo 1 fb 1 o ck. com fblock. com John Gallagher LeBoeuf, Lamb, Greene & MacRae L.L.P. 200 North Third Street, Suite 300 P.O. Box Harrisburg, PA jxgallag@llgm.com John H. Isom, Esquire Michael W. Gang, Esquire Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA isom4022@mlb.com Kenneth C. Springirth 4720 Cliff Drive Erie, PA kcspringirth@juno.com January 11,2000 Joseph L. Esquire PA Attorney ID # Wyoming Avenue Forty Fort, PA Phone: (570)

33 CERTIFICATE OF SERVICE Re: Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Coiporation Docket No. R I hereby certify that I have this day served a true copy of the foregoing documents, OCA Responses to NFGII Interrogatories, Set I, upon parties of record in this proceeding in accordance with the requirements of 52 Pa. Code 1.54 (relating to service by a participant), in the manner and upon the persons listed below: Kandace F. Melillo, Esq. Office of Trial Staff Pitnick Bldg. 901 North 7,,, Street, Rear Harrisburg, PA Dated this 18 th day of January, Wayne Williams PA Public Utility Commission Bureau of Consumer Services P.O. Box 3265 Harrisburg, PA SERVICE BY INTER-OFFICE MAIL DOCUMENT FOLDER cn m o m > - cr CDcr m (OCfCETEft JA N24? 000 " o CD CO CD CD t >t o IT; SERVICE BY FIRST CLASS MAIL. POSTAGE PREPAID John H. Isom, Esq. Morgan, Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA NFG Bernard A. Ryan, Esq. Steven C. Gray, Esq. Small Business Advocate Office of Small Business Advocate Commerce Bldg. Suite 1102, 300 North Second Street Harrisburg, PA 17101

34 Daniel P. Delaney, Esq. James P. Melia, Esq. Kirkpatrick & Lockhart, LLP 240 N. Third Street Harrisburg, PA Texas Eastern Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Solis-Cohen, LLP 212 Locust Street, Suite 300 Harrisburg, PA John A. Wilson, Executive Dr. Community Action Association of PA 222 Pine Street Harrisburg, PA Scott J. Rubin, Esq. 3 Lost Creek Dr. Selinsgrove, PA Mr. Robert D. Knecht Industrial Economics Inc Massachusetts Ave. Cambridge, MA Delia W. Stroud PECO Energy Company 2301 Market Street, S23-1 Philadelphia, PA Usher Fogel Roland, Fogel, Koblenz & Petroccione, LLP 1 Columbia Place Albany, NY PPA and SCMC John J. Gallagher, Esq. LeBoeuf, Lamb, Greene & MacRae 200 North Third Street, Suite 300 P.O. Box Harrisburg, PA Statoil Energy Services, Inc. TXU Energy Trading Company Robert A. Weishaar, Jr., Esq. Charis M. Burak, Esq. McNees, Wallace & Nurick 100 Pine Street P.O. Box 1166 Harrisburg, PA NFG Industrial Intervenors Kenneth Springirth 4720 Cliff Drive Erie, PA Eugene Brady Executive Director of CEO P.O. Box 1127 Wilkes-Barre, PA Joseph L. Vullo, Esq Wyoming Ave. Forty Fort, PA L.^/qtrW Barrett C. Sheridan Erin L. Horting Assistant Consumer Advocates Edmund J. Berger co m o TO m ZD- CZ TO m > - c; Senior Assistant Consumer Advocate CO 3C CD CD Counsel for Office of Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA (717) *54766 O rn

35 MCNEES, WALLACE & NURICK ATTORNEYS'AT LA Y OLDER IOO PINE STREET P. O. BOX 1166 HARRISBURG. PA moe^m TELEPHONE 1717) FAX CHARIS M. 1 BURAK DlRliCr DIAL: (717) ADDRILSS: cmjrak@mwn.com January 19, 2000 James J. McNulty, Secretary Pennsylvania Public Utility Commission Room B-20, North Office Building Harrisburg, PA VIA HAND DELIVERY Re: Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Corporation; Docket No. R Dear Secretary McNulty: Enclosed for filing with the Commission, please find an original and three (3) copies of a Motion to Strike on behalf of NFG Industrial Intervenors ("NFGII"), an intervenor and active participant in the above-referenced proceeding. As evidenced by the attached Certificate of Service, parties to this proceeding have been duly served. Please date stamp the extra copy of this letter and kindly return for our filing purposes. Thank you for your attention to this matter. Very truly yours, McNEES, WALLACE & NURICK By Charis M. Burak Counsel to NFG Industrial Intervenors CMB/map Enclosures c: Administrative Law Judge Larry Gesoff (via facsimile and first class mail) Certificate of Service COLUMBUS, OH WASHINGTON. D.C.

36 CERTIFICATE OF SERVICE I hereby certify that I am this day serving a copy of the foregoing document upon the persons indicated below (in the manner indicated), properly addressed as follows; Michael Gang, Esq, Morgan Lewis & Bockius LLP One Commerce Square 417 Walnut Street Harrisburg, PA Kandace Melillo, Esq. Office of Trial Staff Pa. Public Utility Commission 901 North Seventh Street Harrisburg, PA Edmund Berger, Esq. Office of Consumer Advocate Porum Place, 5 Ih Floor 555 Walnut Street Harrisburg, PA Daniel Clearfield, Esq. Debra M. Kriete, Esq. Kevin J. Moody, Esq. Wolf, Block, Schorr and Solis-Cohen, LLP Suite Locust Street Harrisburg, PA VIA HAND DELIVERY Steven C. Gray, Esq. Office of Small Business Advocate 300 N. Second Street, Suite 1102 Harrisburg, PA Daniel Delaney, Esq. Kirkpatrick & Lockhart LLP Payne-Shoemaker Building 240 North Third Street Harrisburg, PA VIA FACSIMILE & FIRST CLASS MAIL John J. Gallagher, Esq. LeBoeuf, Lamb, Green and MacRae, LLP Suite North Third Street P.O. Box Harrisburg, PA oo rn J m ~-i -1 CO- o cr TO rn > cz '-3 CT) r i.'r CO cn Joelle Ogg, Esq. John & Hengerer ,h Street, NW, Suite 600 Washington, DC Craig Goodman, Esq. National Energy Marketers Association 3333 K Street, NW, Suite 425 Washington, DC Usher Fogel, Esq. Roland Fogel Koblenz & Petroccione 1 Columbia Place Albany, NY Delia Stroud, Esq. PECO Energy Co Market Street, S23-] Philadelphia, PA

37 Certificate of Service Docket No. R Page 2 Jay Dawson, Esq. T.W. Phillips Gas & Oil Co. 205 N. Main Street Butler, PA Scott J. Rubin, Esq. 3 Lost Creek Drive Selinsgrove, PA Joseph L. Vullo, Esq Wyoming Avenue Forty Fort, PA Kenneth C. Springirth 4720 Cliff Drive Erie, PA FIRST CLASS MAIL Charis M. Burak Dated this 19th day of January, 2000, in Harrisburg, Pennsylvania.

38 PENNSYLVANIA PUBLIC UTHD^ COMMISSION BEFORE THE PENNSYLVANIA PUBLIC UTILITY COM Ml v. JAN Docket No. R NATIONAL FUEL GAS DISTRIBUTION CORPORATION MOTION TO STRIKE ON BEHALF OF NFG INDUSTRIAL INTERVENORS UULU FOLDER TO THE HONORABLE, THE PENNSYLVANIA PUBLIC UTILITY COMMISSION: Pursuant to 52 Pa. Code Section 5.103(a), NFG Industrial Intervenors ("NFGII") hereby move to strike page 28, lines and page 29, lines 1-25 of the Direct Testimony of Jerome D. Mierzwa, 1 submitted on behalf of the Office of Consumer Advocate ("OCA"). II\ 2 1. In accordance with the Natural Gas Choice and Competition Act ("C&npetitibn Act"), 3 National Fuel Gas Distribution Corporation ("NFGD" or "Company") submitted*its rn See Appendix A. 2 NFGII recognizes that the OCA has not yet moved Mr. Mierzwa's testimorf^into the record. Accordingly, NFGII suggests that the Pennsylvania Public Utility Commission may wish to view this Motion as a "Motion to Strike in limine." NFGII realizes that motions to strike testimony are generally made during a hearing when the opposing party moves the testimony into the record; however, NFGII has fded this Motion prior to evidentiary hearings in order to provide for administrative efficiency and in the interest of fairness to the OCA. NFGII does not want to burden Administrative Law Judge Gesoff, or the other parties to this proceeding, on the first day of hearings with this issue when it could be addressed at the present time. Moreover, by filing this Motion prior to the hearings, NFGII insures that any element of surprise will be eliminated, while also allowing the OCA adequate preparation time for response. } See 66 Pa. C.S. 2201, et. seq. COcr m -c: 3> CO cn

39 restructuring filing with the Pennsylvania Public Utility Commission ("PUC" or "Commission") on October 1, NFGII filed a Petition to Intervene in the proceeding on October 27, 1999, which was granted by presiding Administrative Law Judge Gesoff ("ALJ Gesoff). 2. On December 16, 1999, the Office of Consumer Advocate ("OCA") served the prepared Testimony of Jerome D. Mierzwa, marked OCA Statement No. 1. Mr. Mierzwa's testimony addresses NFGD's Energy Select Program design, including the Program's capacity assignment and supplier delivery requirements. NFGD's proposal requires Energy Select customers to pay for certain retained capacity, which is necessary for operational purposes and to maintain system reliability. Suppliers serving Energy Choice customers are also required to flow a portion of their gas under these retained capacity arrangements. Mr. Mierzwa proposes to modify NFGD's proposal by shifting some of the costs of the retained capacity for NFGD's Energy Select Program to large transportation customers. See OCA Statement No. 1, Direct Testimony of Jerome D. Mierzwa, p Mr. Mierzwa suggests this reallocation notwithstanding that costs of capacity retained for large transportation customers are recovered through Monthly Metered Transportation ("MMT") and Daily Metered Transportation ("DMT") charges. Historically, these charges have been subject to modification only in the context of Section 1307(f) Purchased Gas Cost proceedings. Mr. Mierzwa's proposal violates the anti-costshifting provisions of the Competition Act. According to the standards governing the Commission's actions in approving each natural gas distribution company's restructuring filings, the "commission shall require that restructuring of the natural gas utility industry be implemented in a manner that does not unreasonably

40 discriminate against one customer class for the benefit of another." 4 Mr. Mierzwa's proposal, however, would require NFGD to reallocate a portion of the costs required for the implementation of the Energy Select Program to large transportation customers, even though large transportation customers already pay for their portion of upstream capacity costs through MMT and DMT charges. Additionally, the Competition Act clearly provides that the purpose of restructuring proceedings is to "require natural gas distribution companies to unbundle natural gas supply services such that separate charges for the services can be set forth in tariffs and on retail gas customers' bills." 5 The unbundling of existing bundled sales charges is necessary to allow smaller customers access to competitive suppliers; however, as noted previously, the Competition Act does not intend for those costs to be reallocated to longstanding transportation customers. Mr. Mierzwa's proposal to reallocate costs from Energy Select Program customers to large transportation customers is in direct violation of the Competition Act. 3. The Commission has previously addressed the scope of natural gas distribution companies' restructuring proceedings under the Competition Act, and has signified to the parties that the PUC "expects that restructuring proceedings shall not be a vehicle for conducting base rate cases." Natural Gas Choice and Competition Act Filing Requirements. Docket No. M (July 16, 1999), p. 4. The PUC reaffirmed its position regarding the purpose of the restructuring proceedings in its Order extending the procedural schedule in Columbia's, 4 66 Pa. C.S. 2203(5) Pa. C.S. 2203(3).