ML19322C227
| ML19322C227 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 09/29/1978 |
| From: | Cashell L FEDERAL ENERGY REGULATORY COMMISSION |
| To: | FEDERAL ENERGY REGULATORY COMMISSION |
| References | |
| TASK-TF, TASK-TMR NUDOCS 8001160652 | |
| Download: ML19322C227 (5) | |
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UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION r
ELECTRIC RATES:
Suspension, Intervention, Hearing Before Commissioners: Charles B.
Curtis, Chairman; Don S.
Smith, Georgiana Sheldon, Matthew Holden, Jr., and George R. Hall.
Pennsylvania Electric Company
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Docket No. ER78-494 ORDER ACCEPTING RATES FOR FILING, SUSPENDING PROPOSED RATE INCREASE, ALLOWING INTERVENTIONS, DENYING MOTION AND ESTABLISHING PROCEDURES (Issued September 29, 1978)
On July 18, 1978, Pennsylvania Electric Company (Penelec) submitted for filing revised rates applicable to one partial and eleven full requirement 3 customers. If The filing was declared deficient in a letter dated August 14, 1978, and was completed on September 1,_1976.
The proposed rate revision woulRrrerease ' revenues oy,
approximately $7,587,000 based on the twelve-month test period ending June 30, 1979.
This would constitute approximately a 27% increase of the rates currently in effect.
The original July 18th submittal requested an ef fective date of August 16, 1978. Jhn co m mber 1st transmittal ~
letter accompanying the curing documents indicated that
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Penelec continues to propose an 'RtmtstJ Mh effective date.
In neither case would the date proposed satisfy the Commission's 30 day notice requirement; in neither case did Penelec request a waiver of 18 CFR 35.3 notice requirements.
However, considering the intention evidenced in the September 1st letter, the Commission will view the submittal as containing 1/ See Attachment A.
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- Docket No. ER78-494
_an implic t request for waiver of the notice requirements.
i issue 3 on July 26, 1978,with pro-Notice of the filing was
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1978.
tests or petitions to intervene due on or before August 4, On Augus t 4, 1978, Alleghenyllactri c Cooperative, Inc.,
(Pe Eltfoners)
Borough of Berlin and Borougn or S'ethport m
In tendered for filing a Protest and Petition to Intervene.
support of their petition, Petitioners state that they are customers of Penelec and that their interests will be directly affected by the instant filing and can not be represented adequately by existing parties.
Petitioners contend that the proposed rates are unjust, unreasonable and unduly discriminatory, and that the filing They allege error in Penelec's cost-of-should be reiected.
service c61culati6ns, asserting in particular that Penelec has functionalized general plant contrary to " appropriate ratemdRDig practTces End hmim^3h precedent" by applying gross plant ratios; that Commission precedent requires theand that Pe use of labor ratios; accordingly.
On August 8, 1978, Penelec submitted an Answer to Penelec Petition to Intervene and Motion to Reject and Suspend.
argues that the cost of service is not excessive and that the motion to reject should be denied.
In particular, Penelec asserts that the proper method for functionalizing general plant is an open question and that the Commission has approved both plant ratios and wage ratios.
Light Company, Opinion No. 20, In Minnesota Power &
1978,in Docket Nos. E-9499 et al., we held issued August 3, 389-399 in the that " General Plant as covered by Accounts Commission's Uniform System of Accounts for Public Utilities and Licenses, should be properly allocated on the basis of labor costs", and that "the company's plant allocation method is not reasonable."
We also "requirfed) that labor ratios be
.in succeeding cases",
used in allocating general plant.
In a subsequent order 2/, we indicated that supra at 16-17.
the use of labor ratios in functionalizIng general plant was a " general rule" and held that the burden on the applicant was" to l
" Order Accepting Rates For Filing, Rejecting Rate For 2/
Filing, Waiving Notice, Suspending Rate Increases, Grant issued Summary Disposition and Granting Interventions",
l on August 25, 1978, in Docket No. ER78-513, Public Service l
Company of Indiana.
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t 3-Docket No. ER78-494 show that the labor ratios are unreasonable as applied to the company, not merely that its alternative method might be reasonable".
Penelec -- like all other future _ applicants --
bears this same burden in the instant case.
Our review indicates that the rates filed by Penelee have not been shown to be just and reasonable and may be unjust, unreasonable, unduly discriminatory, preferential, or other-wise unlauful.
In light of this review and (1) the fact that both the Petitioners' motion and Penelec's answer were filed prior to Staf f's finding of deficiency and the subsequent submission of curing documents and (2) the determination that Petitioners' allegations present questions of law and fact more appropriately considered at hearing, the Commission will deny the Petitioners' motion to. reject the filing, accept the submittal for filing and suspend the proposed rates for two months.
Accordingly, the rates will go into effect as of December 1, 1978, subject to refund.
The Commission finds that participation in this pro-ceeding by the Petitioners may be in the public interest.
The Commission orders:
(A)
The rates proposed by Pennsylvania Electric Company are hereby accepted for filing and suspended for two months, to become effective as of December 1, 1978, subject to refund.
(B)
Pennsylvania Electric Company is hereby directed to file within 30 days of the issuance of this order a schedule of adjustments to its filed cost of service study, such adjust-ments being designed to show in detail the effects of utilizing labor ratios to functionalize general plant in the determina-tion of the allocated wholesale costs of service.
(C)
Waiver of the Commission's notice requirements is hereby denied.
(D)
The Petitioners, Allegheny Electric Cooperative, Inc..
Borough of Berlin and Borough of Smethport are hereby permitted to intervene in this proceeding subject to the Rules and Regulations of the Commission; Provided, however, that parti-cipation by such intervenors shall ba 11mited to matters set forth in their petition to intervene; Provided further, that the admission of such intervenors shall not be construed as recognition by the Commission that they m.ight be aggrieved because of any order or orders of the Commission entered in this proceeding.
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4-Docket No. ER78-494 Petitioners' motion for rejection of the filing (E) 2 is hereby denied.
(F)
Pursuant to the authority contained in and subject to the jurisdiction conferred upon the Federal Energy Regulatory Commission by Section 402 (A) o #. tee DOE Act and by the Federal Power Act and pursuant to the Commission's Rules of Practice and Procedure and the Regulations under the Federal Power Act (18 CFR, Chapter I), a public hearing shall be held concerning the justness and reasonableness of the rates proposed by the Pennsylvania Electric Company in this proceeding.
(G)
The Staff shall prepare and serve top sheets on all parties on or before January 30, 1978.
(E )
A Presiding Administrative Law Judge to be designated by the Chief Administrative Law Judge for that purpose (see, Delegation of Authority, 18 CFR 3.6 (d) ) shall convene a conference in this proceeding to be held within ten (10) days after the serving of top sheets in a hearing room of the Federal Energy Regulatory Commission, 825 North Capitol
- Street, N.E., Washington, D.C. 20426.
Said Law Judge is authorited to establish all procedural dates and to rule upon all motions (except motions to consolidate and sever and motions to dismiss), as provided for in the Commission's Rules of Practice and Procedure.
(I)
The Secretary shall cause prompt publication of this order to be made in the Federal Register.
i By the Commissi;n.
(S E A L)
Lois D. Cashell, Acting Secretary.
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Attachment A Pennsylvania Electric Company Docket No. ER78-494 Description Designation (1)
Third Revised Sheet No. 2 and Table of Contents and 4th Revised Sheet Nos. 13 and Revised Rate - RP 14 under FPC Electric.Tarif f,
Orig. Vol. No. 1 (Supersedes 2nd Revised Sheet No. 2 and 3rd Revised Sheet Nos.13 and 14)
Exhibit B - Rate for (2)
Supplement No. 14 to Rate Schedule FPC No. 70 Supplemental Power and (Supersedes Supplement No. 10)
Energy (3)
Supplement No. 15 to Exhibit C - Rate For Rate Schedule FPC No. 70 Wheeling (Supersedes Supplement No. 11)
Customers Allegheny Electric Cooperative, West Penn Power Company Inc. (partial requirements)
Windber Electric Corpora-Berlin Borough tion East Conemaugh Borough Wellsborough Electric Elkland Electric Company Company Girard Borough Hooversville Borough Rockingham Light, Reat &
Power Conpany 4
Smethport Borough Summerhill Borough i
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