in reply please refer to our file document folder104 spruce street - cressona pa 17929 lisa a gasper...
TRANSCRIPT
COMMONWEALTH OF PENNSYLVANIA PENNSYLVANIA PUBLIC UTILITY COMMISSION P.O. BOX 3265, HARRISBURG, PA 17105-3265
ISSUED: February 10, 2003
KENNETH ZIELONIS ESQ STEVENS & LEE PC PO BOX 11670 HARRISBURG PA 17108-1670
DOCUMENT FOLDER
IN REPLY PLEASE REFER TO OUR FILE
R-00027552 et al
Pennsylvania Public Utility Commission, et al V
Borough of Schuylkill Haven - Water Department
TO WHOM IT MAY CONCERN:
Enclosed is a copy of the Recommended Decision of Administrative Law Judge Herbert Smolen.
An original and nine (9) copies of signed exceptions to the decision, if any, MUST BE FILED WITH THE SECRETARY OF THE COMMISSION 2 N D FLOOR, KEYSTONE BUILDING, 400 NORTH STREET, HARRISBURG, PA OR MAILED TO P.O. BOX 3265, HARRISBURG, PA 17105-3265; a copy in the hands of the Office of Special Assistants, Third Floor; and a copy in the hands of each party of record no later than February 18, 2003 by 4:30 P.M. 52 Pa. Code § 1.56(b) cannot be used to extend the prescribed period for the filing of exceptions or reply exceptions.
Replies to exceptions, if any, must be served on the Secretary of the Commission, in the manner described above, no later than February 24, 2003 by 4:30 P.M. as well as served upon the parties. A certificate of service shall be attached to the filed exceptions.
Exceptions and reply exceptions shall obey 52 Pa. Code 5.533 and 5.535, particularly the 40-page limit for exceptions and the 25-page limit for replies to exceptions. Exceptions should be clearly labeled as "EXCEPTIONS OF (name of party) - (protestant, complainant, staff, etc.)".
Any reference to specific sections of the Administrative Law Judge's Recommended Decision shall include the page number(s) of the cited section of the decision.
Parties are also requested to provide the Commission's Office of Special Assistants with a copy of exceptions/reply exceptions on a computer disk, 3 1/2" in size, in Microsoft Word 6.0 format. If Word 6.0 is not available, either WordPerfect 5.1 or ASCII format is acceptable.
James . McNulty . Secretary
Ends. Certified Mail Receipt Requested TAB
See Attached List for Additional Parties
, KENNETH ZIELONIS ESQUIRE * STEVENS & LEE PC
POBOX 11670 HARRISBURG PA 17108-1670
HERYL R ZIMMERMAN 47 SCHUYLKILL STREET CRESSONA PA 17929
'AVID E ZIMMERMAN 57 SOUTH 3RD STREET CRESSONA PA 17929
JOHN ZVORSKY 51 ASH STREET CRESSONA PA 17929-1325
CINDY KEELEY 44 CEDAR STREET CRESSONA PA 17929
FORREST S SCHWARTZ 128 POTTSVILLE STREET CRESSONA PA 17929
GARY GIBSON SR 49 WILLOW STREET CRESSONA PA 17929
DORIS E RUNKLE 49 ASH STREET CRESSONA PA 17929
SCHUYLKILL PRODUCTS INC 121 RIVER STREET CRESSONA PA 17929
DEBORAH A POTHERING 84 NORTH SILLYMAN STREET CRESSONA PA 17929
EVELYN M MATTHEWS 29 SOUTH THIRD STREET CRESSONA PA 17929
JUNE WAGNER 15 GRAEFF STREET CRESSONA PA 17929
MRS HAROLD STARR 80 CHERRY STREET CRESSONA PA 1929 '
JEANNE AND LESTER LYNCH 8 RIVER STREET CRESSONA PA 17929
ELIZABETH E KRAMMES 43 FRONT STREET CRESSONA PA 17929
JEAN MINTZ PO BOX 26 CRESSONA PA 17929
IRWIN A POPOWSKY ESQUIRE OFFICE OF CONSUMER ADVOCATE 555 WALNUT STREET 5TH FLOOR FORUM PLACE HARRISBURG PA 17101-1923
ERIN L GANNON ESQUIRE CHRISTINE MALONE HOOVER ESQUIRE OFFICE OF CONSUMER ADVOCATE 555 WALNUT STREET 5TH FLOOR FORUM PLACE HARRISBURG PA 17101-1923
CAROL F PENNINGTON ESQUIRE OFFICE OF SMALL BUSINESS ADVOCATE SUITE 1102 COMMERCE BUILDING 300 NORTH SECOND STREET HARRISBURG PA 17101
JOYCE B MILLER 154 POTTSVILLESTREET REAR CRESSONA PA 17929
ALBERT HOLZER 81 FRONT STREET CRESSONA PA 17929
THOMAS JMORAM 111 109 RAILROAD STREET CRESSONA PA 17929
MARTIN J AND KATHLEEN M MALIS 13 CHARLES STREET CRESSONA PA 17929
• JOSEPH J GASPER 104 SPRUCE STREET
- CRESSONA PA 17929
LISA A GASPER 104 SPRUCE STREET CRESSONA PA 17929
JOANN GERBER 4 POTTSVILLE STREET CRESSONA PA 17929
CHARLES W HELPER ETAL 68 SPRUCE STREET CRESSONA PA 17929
CHARLES DANIEL SHIELDS ESQUIRE PA PUC - OTS
. PO BOX 3265 HARRISBURG PA 17105-13265
DANIEL P DELANEY ESQUIRE KIRKPATRICK &' LOCKHART LLP PAYNE SHOEMAKER BUILDING 240 NORTH THIRD STREET HARRISBURG PA 17101-1507
CHARLES A GOULDING JR 55 SOUTH THIRD STREET CRESSONA PA 17929
LEO AND NANCY SCHWARTZ 150 CHESTNUT STREET CRESSONA PA17929
GLENN HEISLER 189 SCHUYLKILL STREET CRESSONA PA 17929
BRIAN KALCIC EXCEL CONSULTING SUITE 720-T 225 S MERAMEC AVE ST LOUIS MO '63105
BARBARA G MILLER RD 4 BOX 4453-A POTTSVILLE PA 17901
ROBERT BARR SILLYMAN STREET CRESSONA PA 17925
THOMAS R LISELLA ESQUIRE BOWE LISELLA & BOWE PO BOX 290 TAMAQUA PA 18252-0290
BEFORE THE PENNSYLVANIA PUBLIC UTHJTY COMMISSION
Pennsylvania Public Utility Commission, et al.
v.
Borough of Schuylkill Haven - Water Department
Docket Number
R-00027552, et al.
RECOMMENDED DECISION
Before HERBERT SMOLEN
Administrative Law Judge
HISTORY OF THE PROCEEDING
On August 29, 2002, the Borough of Schuylkill Haven - Water Department
(Sch. Haven - Water or Respondent or Company) filed Supplement No. 38 to Tariff Water -
Pa. P.U.C. No. 3 (Supplement No. 38), to become effective October 31, 2002, containing
proposed rates calculated to produce an increase in jurisdictional annual operating revenues
of $548,356 or approximately 91% above the overall level of pro forma revenues under
existing jurisdictional rates. Accompanying Supplement No. 38, Sch. Haven - Water filed
the detailed supporting information required by the Commission's Regulations (52 Pa. Code
§53.52 et seg.) for both the historic test year ended December 31, 2001 and the future test
year ending December 31, 2002.
By Order entered October 25,2002, the Commission instituted an
investigation to determine the lawfulness, justness, reasonableness of the rates, rules and
regulations contained in Supplement No. 38. Pursuant to Section 1308(d) of the Public
Utility Code, 66 Pa. C.S. § 1308(d), Supplement No. 3 8 was suspended by operation of law
until May 31, 2003. The Commission assigned the matter to the Office of Administrative
Law Judge for disposition and the preparation of a Recommended Decision.
On or about September 24, 2002, the Commission's Office of Trial Staff
(OTS) filed a Notice of Appearance. On or about October 2, 2002, the Office of Consumer
Advocate (OCA) filed a Formal Complaint and a Public Statement (Docket No. R-
00027552C0016). On or about October 11,2002, the Office of Small Business Advocate
(OSBA) filed a Notice of Intervention. On or about October 23, 2002, the Township of
North Manheim and the Borough of Cressona (the Municipals) filed a Formal Complaint
(Docket No. R-00027552C0025). Additionally, a number of individual jurisdictional
customers filed Formal Complaints in this proceeding (Docket Nos. R-00027552C0001 to
COO 15, COO 17 to C0024 and C0026 to C0027).
. On November 21, 2002, a telephonic prehearing conference was held.
Participating thereat were counsel for Sch. Haven - Water, the Commission's Office of Trial
Staff (OTS), the Office of Consumer Advocate (OCA), the Office of Small Business
Advocate (OSBA) and the Municipals. Sch.. Haven - Water, OTS, OCA, OSBA and the
Municipals filed Prehearing Memoranda identifying potential issues and listing anticipated
witnesses in the proceeding. At the prehearing conference a procedural schedule was
established including the scheduling of a Public Input Hearing. Subsequently, a Prehearing
Conference Order was issued. In addition, counsel for the various parties at the November
21,2002 telephonic prehearing conference represented that they were willing to enter into
settlement negotiations to attempt to achieve a comprehensive settlement of this matter.
A Public Input Hearing was held in the Borough of Schuylkill Haven on
December 10, 2002. All active parties except the OSBA were in attendance and represented
by counsel. All active parties participated fully in the Public Input Hearing. In addition, 12
jurisdictional and nonjurisdictional customers provided sworn testimony at this Public Input
Hearings. A complete record was developed at the Public Input Hearing. The Joint Parties
have agreed that no water quality issues were raised which would warrant the application of
Section 526 of the Public Utility Code in this proceeding.
In addition to providing the supporting data required by the Commission's
regulations, the parties have indicated that Sch. Haven - Water responded to over ninety
(90) written and oral interrogatories, many consisting of multiple subparts, propounded by
the other active parties; and in conjunction with Sch. Haven - Water's consultant, the parties
have also reported that informal discovery conferences were conducted by representatives
of the Municipals to review the filing and obtain additional information.
In accordance with Commission regulations, the parties explored the
possibility of full settlement of this matter. After conducting a number of conferences and
upon review of the 123 page transcript of the Public Input Hearing, all the active parties
have agreed to a full settlement and on December 26, 2002, filed a Joint Petition Settlement.
A true and correct copy of said Petition is attached to this Recommended Decision and
marked Attachment I . Together with the Joint Petition, Sch. Haven - Water, OTS, OCA,
OSBA and the Municipals submitted Statements in support of the settlement.. These
Statements are attached to the Joint Petition as Appendices F, G, H and I , respectively. • A
copy of said Petition was sent to all Complainants by the OCA on December 30, 2002
together with a letter, attached to the Joint Petition as Appendix E, informing Complainants
of various options and advising, inter alia, of the necessity of a written response to the
Administrative Law Judge to be received by him by January 15,2003. Of the individual
Complainants, six responded by joining in the Settlement and one expressed continued
opposition to it, but did not request a hearing on his Complaint. The responses are attached
to this Recommended Decision as Attachment II.
DISCUSSION
Description of the Jurisdictional Water Service
The Borough of Schuylkill Haven is a duly incorporated municipal
corporation and is authorized to own and operate property for the provision of water service
to the public for compensation. Pursuant to Section 1301 of the Pennsylvania Public Utility
Code, 66 Pa. C.S. § 1301, water service rendered by Sch. Haven - Water outside its
corporate limits to jurisdictional customers is subject to rate regulation by the Commission.
Sch. Haven - Water furnishes jurisdictional water service to residential, commercial and
industrial customers located within portions of the geographic limits of the Township of
North Manheim and the Borough of Cressona.
Terms and Conditions of the Proposed Settlement
The parties to the Settlement have agreed to the following terms and
conditions, all of which are set forth in the Joint Petition for Settlement (Attachment I hereto
attached):
a. Sch. Haven - Water shall be permitted to increase rates to jurisdictional customers to produce additional annual revenues of $385,790 in lieu of the as-filed amount of $548,356;
b. Sch. Haven - Water shall implement the increase in jurisdictional rates in two (2) phases. Rates shall be increased $243,980 upon the entry of a Commission Order approving this Joint Petition, (the "Phase I " rates). The remaining increase in rates (the "Phase 11" rates) shall be implemented upon Sch. Haven - Water's filing with the Commission a copy of the Operating permit issued the Pennsylvania Department of Environmental Protection for a new water treatment plant that must be constructed by Sch. Haven - Water. Phase 11 rates shall consist of a $46,202 increase to base rates and a Penn VEST
surcharge of $95,608. The Perm VEST surcharge will apply only to volumetric rates.
c. Jurisdictional rates shall be designed so that each jurisdictional rate class receives a reduction from as-filed rates and each class contributes its increased proportional share of revenues to produce the agreed upon total revenues under this full settlement in a ratio as close as possible as that provided under the as-filed rate design proposal, as shown and described in more detail in Appendix A attached to the Joint Petition. The jurisdictional rate design agreed upon by the Parties is shown in Appendix B attached to the Joint Petition. The jurisdictional revenues produced by that rate design are shown in the proposed tariff contained in Appendix C attached to the Joint Petition.
d. Sch. Haven - Water agrees that upon approval and implementation of the above rates, it shall not file a water tariff or tariff supplement that would constitute a general base rate case under Section 1308(d) of the Public Utility Code, 66 Pa. C.S. §1308(d), or any successor statutory provision of similar purpose, any earlier than twelve (12) months after Commission approval of the Joint Settlement or until Phase II rates are placed into effect, whichever is later. If a legislative body, the judiciary or an administrative agency, including the Commission, enacts any fundamental changes in policy or statute that affects Sch. Haven - Water's cost of service, the Joint Petition shall not prevent Sch. Haven - Water from filing a tariff or tariff supplements to the extent necessitated by such action. In addition, this provision shall not preclude Sch. Haven - Water from seeking extraordinary rate relief under Section 1308(e) of the Public Utility Code, 66 Pa. C.S. § 1308(e). In addition, this provision shall not prohibit Sch. Haven - Water from filing a tanff or tariff supplements if Sch. Haven - Water demonstrates that its debt service coverage ratio on its outstanding debt falls to or below 1.15x. Nothing in this subsection is intended to preclude any party from taking any position related to any possible filing as discussed herein.
e. Sch. Haven - Water shall be permitted to implement a tariff supplement authorizing Sch. Haven - Water to negotiate rates for industrial customers and new customers to the system subject to the following conditions: (1) Sch. Haven - Water will
not make a claim for any revenue shortfall between base rate cases; (2) Sch. Haven - Water will provide the OCA and the OSBA with copies of any service agreements filed pursuant to the negotiated rate subject to appropriate confidentiality protections; (3) the OCA and the OSBA reserve the right to challenge any service agreements filed pursuant to the negotiated rate; and (4) the OCA and the OSBA reserve the right to challenge Sch. Haven - Water's prospective recovery of any revenue shortfall in subsequent base rate proceedings. Such tariff is attached as Appendix D to the Joint Petition.
f. Sch. Haven - Water agrees that it shall identify and develop an appropriate additional rate block to apply to consumption falling within its current zero to 100,000 gallon per month rate block, and to include a proposal for such in its next general rate proceeding. The parties reserve the right to challenge the appropriateness of any proposed rate design.
The parties to the Joint Petition for Settlement have also agreed as follows:
1. That Sch. Haven - Water's Exhibit No. 1 (which is a complete copy of
its rate filing, i.e., Supplement No. 38 and the supporting schedules) be admitted into the
record and that once admitted, that an adequate evidentiary record will have been developed
in the proceeding for the purposes of settlement.
2. That upon Commission approval of the Joint Petition in Full
Settlement of Rate Investigation and the entry of an Order indicating such approval, Sch.
Haven - Water shall be permitted to file a tariff supplement incorporating the rates set forth
in Appendixes C and D attached to the Joint Petition, to become effective upon one day's
notice.
3. That the Joint Petition is conditioned upon the Commission's approval
of the full settlement. The Joint Petitioners have respectfully requested that the presiding
Administrative Law Judge issue a Recommended Decision and that the Commission enter
an Order, incorporating a revenue requirement increase of $385,790 and incorporating the
remaining components of the Joint Petition into the Commission's ultimate disposition of
this proceeding.
4. The Joint Petitioners believe that the Joint Petition is fair, just,
reasonable, nondiscriminatory, and lawful and should be approved in its entirety by the
presiding Administrative Law Judge and the Commission as being in the public interest;
that the Joint Petition results in a just and reasonable level of revenue increase that
represents a reduction from Sch. Haven - Water's as-filed revenue increase; that the Joint
Petition provides for rate stability as Sch. Haven - Water agrees not to file another general
water rate case with the Commission any earlier than twelve months from the date of
Commission approval of the Joint Petition; that this provides customers with rate stability,
assuming full litigation of the next proceeding, until well into 2004, almost two years from
the anticipated implementation of new rates in this proceeding.
5. The Joint Petitioners recognize that the Joint Petition does not bind
formal Complainants that have not joined therein. The Joint Petition and the Appendices
attached thereto, including the Statements in Support, are simultaneously being served upon
the customer Complainants who are not active parties to the proceeding. The letter attached
as Appendix E to the Joint Petition will accompany the Joint Petition being sent to the
customer Complainants. This letter specifically provides the latest date that customer
Complainants may file comments to the Joint Petition and advises the customer
Complainants of their right to file exceptions and/or reply exceptions. Nothing in the Joint
Petition is intended to limit in any way any non-signatory party's rights. The Joint
Petitioners have requested the Administrative Law Judge to act expeditiously on this Joint
Petition. Statements in Support of the Joint Petition are attached as Appendix F (Sch.
Haven- Water), Appendix G (OCA), Appendix H (OSBA) and Appendix I (Municipals) to
the Joint Petition. The signature of the OTS prosecutor affixed to the Joint Petition reflects
the Office of Trial Staff position that the settlement is in the public interest and that the
recommended level of rates is just and reasonable.
6. The Joint Petition is proposed by the Joint Petitioners to settle fully the
instant case and is made without any admission against or prejudice to any positions which
any Joint Party might adopt during subsequent litigation, including further litigation'in this
case if the Joint Petition is rejected by the presiding Administrative Law Judge, the
Commission or withdrawn by any of the Joint Petitioners as provided below. The Joint
Petition is conditioned upon the Commission's approval of all the terms and conditions
contained therein. If the Commission should fail to grant such approval or should modify
the terms and conditions therein, the Joint Petition may be withdrawn upon written notice to
the Commission and all parties within three business days of the Commission's action by
any of the Joint Petitioners and, in such event, shall be of no force and effect. In the event
that the Commission does not approve the Joint Petition and Sch. Haven - Water or any of
the Joint Petitioners elects to withdraw as provided above and the proceeding continues to
further hearings, the Joint Petitioners reserve their respective rights to submit direct
testimony as well as rebuttal and surrebuttal testimony and to conduct full cross-
examination, briefing and argument in this proceeding regarding the issues which are the
subject of the Joint Petition.
7. If the Administrative Law Judge, in his Recommended Decision,
recommends that the Commission adopt the Joint Petition as proposed, the Joint Petitioners
agree to waive the filing of Exceptions. The Joint Petitioners, however, do not waive their
rights to file Exceptions with respect to any modifications to the terms and conditions of the
Joint Petition, or any additional matters proposed by the Administrativ e Law Judge in his
Recommended Decision. The Joint Petitioners reserve the right to file Reply Exceptions to
any Exceptions that may be filed.
Upon consideration of the Joint Petition for Settlement and the accompanying
Statements in support filed by the parties, it is recommended that the Commission approve
the proposed Settlement as being in the public interest for the following reasons:
1. This is the first general rate increased filed by Sch. Haven - Water
since 1998. The filing of Supplement No. 38 was required, inter alia, by a need to recover
increases in operating expenses since the last rate case and the need to include in rates new
facilities currently used in providing service to the public and prospective facilities that (1)
must be constructed to comply with existing environmental standards imposed by the
United States Environmental Protection Agency and by the Pennsylvania Department of
Environmental Protection (PaDEP).
2. Sch. Haven - Water has agreed to accept a rate increase for
jurisdictional customers of $385,790. This increase represents a substantial reduction from
Sch. Haven - Water's original filing.
3. The rate increase will be implemented in two phases. Phase 1 rates are
designed to produce approximately $243,980 in additional revenues from jurisdictional
customers and is designed to recover the cost of facilities currently used to render water
service but not currently included in rates and to recover the increase in the cost of operating
the systems. Phase II rates are designed to produce approximately $141,808 in additional
revenue from jurisdictional customers and will consist of a base rate increase of $46,202 and
a Penn VEST loan surcharge of $95,608. Phase I rates will be implemented after
Commission approval of the Joint Petition. Phase II rates will be placed in effect when the
Borough files a copy of the Operating Permit from the Pennsylvania Department of
Environmental Protection (PaDEP) indicating that the new water treatment facility has been
completed pursuant to requirements.
4. Resolution of the rate investigation by settlement rather than by full
litigation will avoid the substantial expense and time associated with full litigation. This
saving in rate case expense best serves ratepayers. Further settlement avoids the uncertainty
inherent in litigation thus serving the best interest of ratepayers. Finally, the settlement
proposed by all the parties is fair and reasonable. It allows the Borough to include in rates
capital expenditures currently used to render service that is not included in existing rates. It
provides that new facilities constructed by the Borough will be included in rates once
another state agency has assured itself that the facilities have been constructed and are
operating. The proposed settlement provides for a Penn VEST surcharge for a new water
treatment plant that must be constructed to meet Borough's obligation to provide safe and
adequate service and to meet environmental requirements.
5. The Joint Petition is a result of compromises by all parties and is in the
public interest.
6. Under the proposed Settlement, Sch. Haven - Water cannot file
another general rate increase any earlier than twelve (12) months after Commission
approval of the Joint Settlement or until Phase II rates are placed into effect, whichever is
later - unless the Company demonstrates- that its debt service coverage ratio on outstanding
debt falls to or below 1.15x. The proposed stay-out provision should prevent another rate
increase before the second half of 2004, assuming the Company files as soon as the stay-out
expires and assuming the next case is fully litigated. Thus, Sch. Haven - Water's
jurisdictional ratepayers will be assured of some level of rate stability.
7. The terms and conditions of the proposed settlement represent a fair
and reasonable resolution of the issues and claims arising in this proceeding. The proposed
Settlement provides for an increase of $385,790 to annual revenues, reduced from the
$548,356 annual increase proposed in Sch. Haven - Water's original filing. In addition, as
aforesaid, the Commission and all parties will benefit by the reduction in rate case expense
i n
and the conservation of resources made possible by adoption of the Settlement in lieu of full
litigation.
8. Sch. Haven - Water has agreed to add another rate block to
consumption falling within its zero and 100,000 gallons per month rate block as part of its
rate design proposal in its next rate case. This will benefit small commercial customers
because such a rate block will describe their usage more accurately.
RECOMMENDED ORDER
THEREFORE,
IT IS RECOMMENDED (Subject to Commission Review and Approval):
1. That the Borough of Schuylkill Haven - Water Department shall not
place into effect the rates contained in Supplement No. 38 to Tariff Water - Pa. P.U.C. No.
3, as originally filed.
2. That the Borough of Schuylkill Haven - Water Department's Exhibit
No. 1 (Supplement No. 38 and supporting schedules) is hereby admitted into the record,
pursuant to the agreement of the active parties.
3. That the terms and conditions set forth in the Joint Petition for
Settlement filed by the Borough of Schuylkill Haven - Water Department, the Office of
Trial Staff, the Office of Consumer Advocate, the Office of Small Business Advocate, the
Township of North Manheim and the Borough of Cressona are approved.
4. That the Borough of Schuylkill Haven - Water Department is
authorized to submit a tariff supplement designed to produce an increase in annual operating
11
revenues of not more than $385,790 in two phases, in lieu of the $548,356 originally
requested, as follows:
(a) Phase I rates shall be designed to produce an increase in annual
operating revenues of not more than $243,984 and
(b) Phase II rates shall be designed to produce an increase in annual
operating revenues of not more than $141,808.
(c) The said tariff supplement will become effective upon one day's notice
following Commission approval of the Joint Petition for Settlement.
The said tariff supplement shall provide for implementation of Phase I
rates upon said one day's notice, and that Phase II rates shall be placed
in effect when the Borough of Schuylkill Haven - Water Department
files with the Commission a copy of the Operating Permit issued by
the Pennsylvania Department of Environmental Protection for the new
water treatment plant to be constructed by the Borough of Schuylkill
Haven - Water Department.
5. That the Borough of Schuylkill Haven - Water Department shall not
file a water tariff or tariff supplement that would constitute a general base rate increase
under Section 1308(d) of the Public Utility Code, 66 Pa. C.S. § 1308 (d), or any successor
statutory provision of similar purpose, any earlier than twelve (12) months after
Commission approval of the Joint Settlement or until Phase II rates are placed in effect,
whichever is later, except under the limited circumstances set forth in Paragraph 10.d. of the
Joint Petition for Settlement.
6. That if any of the terms and conditions of the Settlement are
disapproved or modified by the Commission, any party may withdraw from the Settlement
Agreement by notifying the other signatory parties and the Commission of its intent to do so
within three (3) business days of the entry of the Commission's Order.
12
7. That the Commission's rate investigation in Docket No. R-00027552
be terminated and the record closed.
8. That the Complaints in Docket Nos. R-00027552C0001 through and
including R-00027552C027are hereby granted in part and dismissed in part consistent with
the Recommended Decision; and the records therein closed.
January 31. 2003
Date HERBERT SMOLEN Administrative Law Judge
13
ATTACHMENT I
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
Pennsylvania Public Utility Commission, et. al.
v.
Borough of Schuylkill Haven-Water Department
Docket Nos. R-00027552, et. al.
JOINT PETITION IN FULL SETTLEMENT OF RATE INVESTIGATION
TO THE HONORABLE HERBERT SMOLEN ADMINISTRATIVE LAW JUDGE:
The Borough of Schuylkill Haven -Water Department ("Sch. Haven - Water"), the
Office of Trial Staff ("OTS"), the Office of Consumer Advocate ("OCA"), the Office of Small
Business Advocate ("OSBA") and the Township of North Manheim and the Borough of Cressona
(•'Municipals"), comprising all of the active parties to the above-captioned proceeding, (hereinafter
collectively referred to as the "Joint Petitioners"), hereby submit this Joint Petition in Full
Settlement Of Rate Investigation ("Joint Petition'^to the presiding Administrative Law Judge and
respectfully request that the A U and the Commission:
1. Approve this Joint Petition submitted by the Joint Petitioners as set forth herein; and
2. Recommend that the Commission terminate its Investigation at Docket Nos. R-00027552 and R-00027552C0016 and R-00027552C0025 and mark these dockets closed and terminate as satisfied these Formal Complaints filed by the OCA and the Municipals.
In support of the Joint Petition, the Joint Petitioners state as follows:
1. The Sch. Haven-Water is a duly incorporated municipal corporation and is
authorized to own and operate property for the provision of water service to the public for
compensation. Pursuant to Section 1301 of the Pennsylvania Public Utility Code, 66 Pa. C.S. §
1301, water service rendered by Sch. Haven-Water outside its corporate limits to jurisdictional
customers is subject to rate regulation by the Commission. Sch. Haven-Water furnishes
jurisdictional water service to residential, commercial and industrial customers located within
portions of the geographic limits of the Township of North Manheim and the Borough of Cressona.
2. On August 29, 2002, Sch. Haven - Water filed Supplement No. 38 to Tariff Water-
Pa. P.U.C. No. 3 ("Supplement No. 38"), to become effective October 31, 2002. Supplement No.
38 proposed rates designed to produce an increase in jurisdictional annual operating revenues of
$548,356 or approximately 91% above the overall level of pro forma revenue under existing
jurisdictional rates. Accompanying Supplement No. 38, was the detailed supporting infonnation
required by the Commission's regulations regarding general rate increases. Sch. Haven - Water
presented data based upon its level of operations during the historic period twelve months ended
' December 31", 2001 and pro forma future test period twelve months ended December 31, 2002, as
adjusted for known and measurable changes.
3. On October 25, 2002, the Commission entered an Order suspending the proposed
rates contained in Supplement No. 38 and instituting an investigation into the justness and
reasonableness of the rates, rules and regulations proposed in Supplement No. 38. Pursuant to
Section 1308(d) of the Code, 66 Pa. C.S. § 1308(d), the Commission's Order suspended Supplement
No. 38 by operation of law for a period of seven (7) months until May 31, 2003. The Commission
assigned the matter to the Office of Administrative Law Judge for disposition and preparation of a
Recommended Decision.
4. On or about September 24, 2002, OTS filed its Notice of Appearance. On or about
October 2,2002, the OCA filed a Formal Complaint and a Public Statement in the matter (Docket
No. R-00027552C0016). On or about October 11, 2002, the OSBA filed a Notice of Intervention.
On or about October 23,2002, the Municipals filed a Formal Complaint in this proceeding (Docket
No. R-00027552C0025). Additionally, a number of individual jurisdictional customers filed
Formal Complaints in this proceeding (Docket Nos. R-00027552C0001 to COO 15, C0017 to C0024
and C0026 to C0027).
5. On November 21, 2002, Administrative Law Judge ("ALJ"), Herbert Smolen
conducted a telephonic Prehearing Conference with the principal parties participating from
Harrisburg. At this Prehearing Conference, Sch. Haven - Water, the OTS, the OCA, the OSBA and
the Municipals were represented by their respective counsel. Sch. Haven - Water, the OTS, the
OCA, the OSBA and the Municipals filed Prehearing Memoranda identifying potential issues and
listing anticipated witnesses in the proceeding. At the Prehearing Conference, a procedural
schedule was established for the proceeding. Subsequently, ALJ Smolen memorialized the
schedule and the consolidation of complaints through the issuance of an Interim Order. Counsel for
the various parties at the November 21, 2002 telephonic Prehearing Conference, represented that
they were willing to enter into settlement negotiations to attempt to achieve a comprehensive
settlement of this matter.
6. In addition to providing the supporting data required by the Commission's
regulations, Sch. Haven - Water responded to over ninety (90) written and oral interrogatories,
many consisting of multiple subparts, propounded by the other active parties. In conjunction with
Sch. Haven - Water's consultant, informal discovery conferences were also conducted by
representatives of the Municipals to review the filing and obtain additional information.
7. Sch. Haven - Water asks that Sch. Haven - Water Exhibit No. 1, a complete copy of
Sch. Haven - Water's rate filing, i.e., Supplement No. 38 and supporting schedules be admitted into
3
the record. The Joint Petitioners are in agreement that once the above Sch. Haven - Water prepared
Exhibit is entered into the record, an adequate evidentiary record will be developed in this
proceeding for purposes of settlement.
8. A Public Input session was held in the Borough of Schuylkill Haven on December
lOj 2002 before ALJ Smolen. All active parties except the OSBA were in attendance and
represented by counsel. All active parties participated fully in the Public Input session. In addition,
12 jurisdictional and nonjurisdictional customers provided sworn testimony at this Public input
session. A complete record was developed at the Public Input session. The Joint Parties are in
agreement that no water quality issues exist which would warrant the application of Section 526 of
the Code in this_proceeding.
9. In accordance with Commission regulations, the parties to this proceeding explored
the possibility of a full settlement of this matter. After conducting a number of conferences and
upon review of the 123-page transcript of the Public Input Session, all the active parties have agreed
to the full settlement contained herein. While the Joint Petitioners acknowledge that they have not
sought, nor would they be able, to agree upon the specific rate case adjustments which support their
respective conclusions, they are in full agreement that this Joint Petition is in the interest of Sch.
Haven - Water and its jurisdictional customers.
10. The terms of the Joint Petition are as follows:
a. Sch. Haven - Water shall be permitted to increase rates to jurisdictional customers to produce additional annual revenues of $385,790 in lieu of the as-filed amount of $548,356;
b. Sch. Haven - Water shall implement the increase in jurisdictional rates in two (2) phases. Rates shall be increased $243,980 upon the entry of a Commission Order approving this Joint Petition, (the "Phase I rates). The remaining increase in rates (the "Phase II rates) shall be implemented upon Sch. Haven - Water's filing with the Commission a copy of the Operating permit issued the Pennsylvania Department of Environmental Protection for a new water treatment plant that must be constructed by Sch. Haven - Water. Phase II rates shall consist of a $46,202 increase to base rates and a PennVEST
surcharge of $95,608. The PennVEST surcharge will apply only to volumetric rates.
c. Jurisdictional rates shall be designed so that each jurisdictional rate class receives a reduction from as-filed rates and each class contributes its increased proportional share of revenues to produce the agreed upon total revenues under this Hill settlement in a ratio as close as possible as that provided under the as-filed rate design proposal, as shown and described in more detail in Appendix A attached hereto. The jurisdictional rate design agreed upon by the Parties is shown in Appendix B attached hereto. Thejurisdictional revenues produced by that rate design are shown in the proposed tariff contained in Appendix C attached hereto.
d. Sch. Haven - Water agrees that upon approval and implementation of the above rates, it shall not file a water tariff or tariff supplement that would constitute a general base rate case under Section 1308(d) of the Public Utility Code, 66 Pa. C.S. § 1308(d), or any successor statutory provision of similar purpose, any earlier than twelve (12) months after Commission approval of this Joint Settlement or until Phase IT rates are placed into effect, whichever is later. If a legislative body, the judiciary or an administrative agency, including the Commission, enacts any fundamental changes in policy or statute that affects Sch. Haven - Water's cost of service, this Joint Petition shall not prevent Sch. Haven - Water from filing a tariff or tariff supplements to the extent necessitated by such action. In addition, this provision shall not preclude Sch. Haven - Water from seeking extraordinary rate relief under Section 1308(e) of the Public Utility Code, 66 Pa. C.S. § 1308(e). In addition, this provision shall not prohibit Sch. Haven - Water from filing a tariff or tariff supplements if Sch. Haven - Water demonstrates that its debt service coverage ratio on its outstanding debt falls to or below 1.15x. Nothing in this subsection is intended to preclude any party from taking any position related to any possible filing as discussed herein.
e. Sch. Haven - Water shall be permitted to implement a tariff supplement authorizing Sch. Haven - Water to negotiate rates for industrial customers and new customers to the system subject to the following conditions: (1) Sch. Haven - Water will not make a claim for any revenue shortfall between base rate cases; (2) Sch. Haven -Water will provide the OCA and the OSBA with copies of any service agreements filed pursuant to the negotiated rate subject to appropriate confidentiality protections; (3) the OCA and the OSBA reserve the right to challenge any service agreements filed pursuant to the negotiated rate; and (4) the OCA and the OSBA reserve the right to challenge Sch. Haven - Water's prospective recovery of any revenue shortfall in subsequent base rate proceedings. Such tariff is attached as Appendix D hereto.
The Borough agrees that it shall identify and develop an appropriate additional rate block to apply to consumption falling within its current zero to 100,000 gallon per month rate block, and to include a proposal for such in its next general rate proceeding. The parties reserve the right to challenge the appropriateness of any proposed rate design.
11. That upon Commission approval of this Joint Petition in Full Settlement of Rate
Investigation and the entry of an Order indicating such approval, Sch. Haven - Water shall be
permitted to file a tariff supplement incorporating the rates set forth in Appendixes C and D hereto,
to become effective upon one day's notice.
12. This Joint Petition is conditioned upon the Commission's approval of this full
settlement. The Joint Petitioners respectfully request that the presiding Administrative Law Judge
issue a Recommended Decision and that the Commission enter an Order, incorporating a revenue
requirement increase of $385,790 and incorporating the remaining components of this Joint Petition
into the Commission's ultimate disposition of this proceeding.
13. The Joint Petitioners believe that this Joint Petition is fair, just, reasonable,
nondiscriminatory, and lawful and should be approved in its entirety by the presiding
Administrative Law Judge and the Commission as being in the public interest. The Joint Petition
results in a just and reasonable level of revenue increase that represents a reduction from Sch.
Haven - Water's as-filed revenue increase. Further, the Joint Petition provides for rate stability as
Sch. Haven - Water agrees not to file another general water rate case with the Commission any
earlier than twelve months from the date of Commission approval of this Joint Petition. This
provides customers with rate stability, assuming full litigation of the next proceeding, until well into
2004, almost two years from the anticipated implementation of new rates in this proceeding.
14. The Joint Petitioners recognize that this Joint Petition does not bind formal
Complainants that have not joined herein. The Joint Petition and the attached Appendixes hereto,
including any Statements in Support, are simultaneously being served upon the customer
Complainants who are not an active party to this proceeding. The letter attached as Appendix E will
also accompany the Joint Petition sent to the customer Complainant. This letter specifically
provides the latest date that the customer Complainant may file comments to this Joint Petition and
advises the customer Complainant ofher right to file exceptions and/or reply exceptions. Nothing
herein is intended to limit in any way any non-signatory party's rights. The Joint Petitioners request
the Administrative Law Judge to act expeditiously on this Joint Petition. Statements in Support of
the Joint Petition are attached as Appendix F (Sch. Haven- Water), Appendix G (OCA), Appendix
H (OSBA) and Appendix I (Municipals). The signature of the OTS prosecutor affixed hereto
reflects the Office of Trial Staff position that the instant settlement is in the public interest and that
the recommended level of rates is just and reasonable.
15. This Joint Petition is proposed by the Joint Petitioners to settle fully the instant case
and is made without any admission against or prejudice to any positions which any Joint Party
might adopt during subsequent litigation, including further litigation in this case if this Joint Petition
is rejected by the presiding Administrative Law Judge, the Commission or withdrawn by any of the
Joint Petitioners as provided below. This Joint Petition is conditioned upon the Commission's
approval of all the terms and conditions contained herein. If the Commission should fail to grant
such approval or should modify the terms and conditions herein, this Joint Petition may be
withdrawn upon written notice to the Commission and all parties within three business days of the
Commission's action by any of the Joint Petitioners and, in such event, shall be of no force and
effect. In the event that the Commission does not approve the Joint Petition and Sch. Haven - Water
or any of the Joint Petitioners elects to withdraw as provided above and the proceeding continues to
further hearings, the Joint Petitioners reserve their respective rights to submit direct testimony as
well as rebuttal and surrebuttal testimony and to conduct full cross-examination, briefing and
argument in this proceeding regarding the issues which are the subject of this Joint Petition.
7
16. I f the Administrative Law Judge, in his Recommended Decision, recommends that
the Commission adopt the Joint Petition as herein proposed, the Joint Petitioners agree to waive the
filing of Exceptions. The Joint Petitioners, however, do not waive their rights to file Exceptions
with respect to any modifications to the terms and conditions of this Joint Petition, or any additional
matters proposed by the Administrative Law Judge in his Recommended Decision. The Joint
Petitioners reserve the right to file Reply Exceptions to any Exceptions that may be filed.
8
WHEREFORE, the Joint Petitioners, by their respective counsel, respectively request as
follows:
1. That Administrative Law Judge Herbert Smolen and the Commission approve this
Joint Petition of the Borough of Schuylkill Haven, the Office of Trial Staff, the Office of Consumer
Advocate, the Office of Small Business Advocate, the Township of North Manheim and Borough of
Cressona in Full Settlement of Rate Investigation including all terms and conditions hereof;
2. That the Administrative Law Judge Herbert Smolen and the Commission approve
and incorporate the Joint Petition contained herein in the Recommended Decision and Order,
respectively, in ultimately determining the final disposition of this proceeding.
3. That upon Commission approval of this Joint Petition of the Borough of Schuylkill
Haven, the Office of Trial Staff, the Office of Consumer Advocate, the Office of Small Business
Advocate, the Township of North Manheim and Borough of Cressona in Full Settlement of Rate
Investigation and the entry of an Order indicating such approval, that Sch. Haven - Water be
permitted to file a tariff supplements incorporating the rates set forth in Appendixes C and D hereto
to become effective upon one day's notice.
4. That upon Commission approval of this Joint Petition of the Borough of Schuylkill
Haven, the Office of Trial Staff, the Office of Consumer Advocate, the Office of Small Business
Advocate, the Township of North Manheim and Borough of Cressona in Full Settlement of Rate
Investigation and the entry of an Order indicating such approval, that the Formal Complaints of the
Office of Consumer Advocate at Docket No. R-00027552C0016 and of the Township of Manheim
and the Borough of Cressona at Docket No. R-00027552C0016 be marked satisfied and closed_by
the Commission's Secretary, and that the Commission's Rate Investigation in this Docket be marked
closed by the Commission's Secretary.
Respectfully submitted.
Dated: December 26, 2002 BOROUGH OF SCHUYLKILL HAVEN-WATER DEPARTMENT
B y : J ^ W ^
Kenneth Zietems, Esq. STEVENS & LEE Attorneys for Borough of Schuylkill Haven- Water Fund
OFFICE OF TRIAL STAFF
By: Charles Daniel Shields, Esq.
Prosecutor
OFFICE OF CONSUMER ADVOCATE
By: Christine Maloni Hoover, Esq. Senior Assistant Consumer Advocate Erin Gannon, Esq. Assistant Consumer Advocate
OFFICE OF SMALL BUSINESS ADVOCATE
By: Carol E. Pennington, Esq. Acting Small Business Advocate
BOROUGH OF CRESSONA AND NORTH MANHEIM TOWNSHIP
By: Daniel P. Delaney, Esq KIRKPATRICK & LOCKHART
Attorneys for Cressona Borough and North Manheim Township
10
Dated: January 3, 2003
Respectfully submittedj
BOROUGH OF SCHUYLKILL HAVEN-WATER DEPARTMENT
By:
Kenneth Zielonis, Esq. STEVENS & LEE Attorneys for Borough of Schuylkill Haven- Water Fund
Charles Daniel Shields, Esq. Prosecutor
OFFICE OF CONSUMER ADVOCATE
By: Christine Maloni Hoover, Esq. Senior Assistant Consumer Advocate Erin Gannon, Esq. Assistant Consumer Advocate
OFFICE OF SMALL BUSINESS ADVOCATE
By: Carol E. Pennington, Esq. Acting Small Business Advocate
BOROUGH OF CRESSONA AND NORTH MANHEIM TOWNSHIP
By: Daniel P. Delaney, Esq KIRKPATRICK & LOCKHART
Attorneys for Cressona Borough and North Manheim Township
Respectfully submitted,
Dated: December 26, 2002 BOROUGH OF SCHUYLKILL HAVEN-WATER DEPARTMENT
By:
Kenneth Zielonis, Esq. STEVENS & LEE Anomeys for Borough of Schuylkill Haven- Water Fund
OFFICE OF TRIAL STAFF
By: Charles Daniel Shields, Esq.
Prosecutor
OFFICE OF CONSUMER ADVOCATE
By: Christine Maloni Hoover, Esq. Senior Assistant Consumer Advocate Erin Gannon, Esq. Assistant Consumer Advocate
OFFICE OF ADVOCATE
SMALL BUSINESS
By: Carol E. Pennington, Esq. Acting Small Business Advocate
BOROUGH OF CRESSONA AND NORTH MANHEIM TOWNSHIP
Bv: Daniel P. Delaney, Esq KIRKPATRICK & LOCKHART
Attorneys for Cressona Borough and North Manheim Township
10
Respectfiilly submitted.
Dated: December 26, 2002 BOROUGH OF SCHUYLKILL HAVEN-WATER DEPARTMENT
By:
Kenneth Zielonis, Esq. STEVENS & LEE Attorneys for Borough of Schuylkill Haven- Water Fund
OFFICE OF TRIAL STAFF
By: Charles Daniel Shields, Esq.
Prosecutor
OFFICE OF CONSUMER ADVOCATE
By: Christine Maloni Hoover, Esq. Senior Assistant Consumer Advocate Erin Gannon, Esq. Assistant Consumer Advocate
OFFICE OF SMALL BUSINESS ADVOCATE
By: (^dsL*^. Carol Jg/Tennington, Es Acting Small Business Advocate
BOROUGH OF CRESSONA AND NORTH MANHEIM TOWNSHIP
By: Daniel P. Delaney, Esq KIRKPATRICK & LOCKHART
Attorneys for Cressona Borough and North Manheim Township
10
Respectfully submitted,
Dated: December 26. 2002 BOROUGH OF SCHUYLKILL HAVEN-WATER DEPARTMENT
By:
Kenneth Zielonis, Esq. STEVENS & LEE Attorneys for Borough of Schuylkill Haven- Water Fund
OFFICE OF TRIAL' STAFF
By: Charles Daniel Shields, Esq.
Prosecutor
OFFICE OF CONSUMER ADVOCATE
By: Christine Maloni Hoover. Esq. Senior Assistant Consumer Advocate Erin Gannon, Esq. Assistant Consumer Advocate
OFFICE OF SMALL BUSINESS ADVOCATE
By: Carol E. Pennington. Esq. Acting Small Business Advocate
BOROUGH OF CRESSONA AND NORTH M AN H EI MiTO WN8HIP
Daniel P. Delaney. KIRKPATRICK^: LOCKHART
Attorneys for Cress£t»e'Dorough and North ManhetrrfTownship
10
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
PENNSYLVANIA PUBLIC UTILITY COMMISSION, ET. AL.
V.
BOROUGH OF SCHUYLKILL HAVEN- WATER * DEPARTMENT *
DOCKET NO. R-00027552
CERTIFICATE OF SERVICE
I hereby certify that on this 26th day of December 2002, I have served true and correct copies of the Joint Petition in Full Settlement of Rate Investigation by Hand Delivery or First Class Mail upon the persons named below:
Hon. Herbert Smolen Administrative Law Judge 1302 Philadelphia State Office Building 1400 West Spring Garden Street Philadelphia, PA 19130
Erin Gannon, Esq. Senior Assistant Consumer Advocate Office of Consumer Advocate Forum Place, 5th Floor 555 Walnut Street Harrisburg, PA 17101-1921
Daniel P. Delaney, Esq. Kirkpatrick & Lockhart Payne Shoemaker Building 240 North Third Street Harrisburg, PA. 17101-1507
Charles Daniel Shields, Esq. Senior Prosecutor Office of Trial Staff PA. Public Utility Commission PA. Keystone Building P.O. Box 3265 Harrisburg, PA 17120-3265
Carol Pennington, Esq. Acting Small Business Advocate Office of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street Harrisburg, PA. 17101
Kenneth Zielonis, Esq
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
PENNSYLVANIA PUBLIC UTILITY COMMISSION , ET. AL.
V. DOCKET NO. R-00027552
BOROUGH OF SCHUYLKILL HAVEN- WATER * DEPARTMENT *
CERTIFICATE OF SERVICE
I hereby certify that on this 26th day of December 2002, I have served true and correct copies of the Joint Petition in Full Settlement of Rate Investigation by Hand Delivery or First Class Mail upon the persons named below:
Hon. Herbert Smolen Administrative Law Judge 1302 Philadelphia State Office Building 1400 West Spring Garden Street Philadelphia, PA 19130
Erin Gannon, Esq. Senior Assistant Consumer Advocate Office of Consumer Advocate Forum Place, 5th Floor 555 Walnut Street Harrisburg, PA 17101-1921
Daniel P. Delaney, Esq. Kirkpatrick & Lockhart Payne Shoemaker Building 240 North Third Street Harrisburg, PA. 17101-1507
Charles Daniel Shields, Esq. Senior Prosecutor Office of Trial Staff PA. Public Utility Commission PA. Keystone Building P.O. Box 3265 Harrisburg, PA 17120-3265
Carol Pennington, Esq. Acting Small Business Advocate Office of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street Harrisburg, PA. 17101
Deborah A. Pothering 84 North Sillyman Street Cressona, PA 17929
June Wagner 15 Graeff Street Cressona, PA 17929
Evelyn M. Matthews 29 South Third Cressona, PA 17929
Elizabeth E. Krammes 43 Front Street Cressona, PA 17929
Gail L. Hepler 68 Spruce Street Cressona, PA 17929
Chad and Jennifer Hepler 66 Spruce Street Cressona, PA 17929
Joseph J. Gasper 104 Spruce Street Cressona, PA 17929
Lisa A. Gasper 104 Spruce Street Cressona, PA 17929
Albert Holzer 81 Front Street Cressona, PA 17929-1316
Martin L. and Kathleen M. Malis 13 Charles Street Cressona, PA 17929
Mary Miller 35 Pottsville Street Cressona, PA 17901
Cheryl R. Zimmerman 47 Schuylkill Street Cressona, PA 17929
Schuylkill Products, Inc. 121 River Street Cressona, PA 17929
John Zvorsky 51 Ash Street Cressona, PA 17929-1325
Forrest S. Schwartz 128 Pottsville Street Cressona, PA 17929
Gary Gibson, Sr. 49 Willow Street Cressona, PA 17929
Cindy Keeley 44 Cedar Street Cressona, PA 17929
Doris E. Runkle 49 Ash Street Cressona, PA 17929
David E. Zimmerman 57 S. 3rd Street Cressona, PA 17929
Mrs. Harold Starr 80 Cherry Street Cressona, PA 17929
Jeanne and Lester Lynch 8 River Street Cressona, PA 17929
Susan Cziprusz 35 Pottsville Street Cressona, PA 17901
Francis R. Fryer 106 Crosscreek Drive Pottsville, PA 17901
Forrest and Edna Schwartz 128 Pottsville Street Cressona, PA 17929
Ethel and John Darosh 35 N. Fourth Street Cressona, PA 17929
Ellen Bittle and Brian Hepler 72 Spruce Street Cressona, PA 17929
Jo Ann Gerber 4 Pottsville Street Cressona, PA 17929
Lillian Moody 2479 Panther Valley Road Pottsville, PA 17901
Jean Mintz P.O. Box 26 Cressona, PA 17929-0026
Thomas J. Moran, III 109 Railroad Street Cressona, PA 17929-1403
Charles A. Goulding, Jr. 55 South Third Street Cressona, PA 17929
Viola Strouse 613 Orchard Avenue Schuylkill Haven, PA 17972
Charles W. Hepler 68 Spruce Street Cressona, PA 17929
Joyce B. Miller 154 Pottsville Street - Rear Cressona, PA 17929
Date: l^ec X ^ c , c ' ? - Kenneth Zielonis
APPENDIX A
BOROUGH OF SCHUYLKILL HAVEN - WATER FUND
Summary of Current and Settlement PaPUC Rates Outside Borouoh Limits
Current Outside PaPUC Rates Step 1 Settlement Outside PaPUC Rates Step 2 Settlement Outside PaPUC Rates Customer Charae Customer Charqe Customer Charqe
Meter.Size Monthly Quarterly Meter Size Quarterly Meter Size Monthly Quarterly 5/8" $3.67 $11.00 5/8" $5.21 $15.61 5/8" $5.50 $16.49 3/4" $3.67 $11.00 3/4" $5.21 $15.61 3/4" $5.50 $16.49 1" $3.67 $11.00 1" $5.21 $15.61 1" $5.50 $16.49 1 1/2" $4.67 $14.00 1 1/2" $6.63 $19.87 1 1/2" $7.00 $20.98 2" $5.67 $17.00 2" $8.05 $24.13 2" $8.50 $25.48 3" $6.67 $20.00 3" $9.47 $28.39 3" $10.00 $29.98 4" $7.67 $23.00 4" . $10.89 $32.65 4" $11.50 $34.48 6" $9.67 $29.00 6" $13.73 $41.17 6" $14.49 $43.47 8" $10.67 $32.00 8" $15.15 $45.42 8" $15.99 $47.97 10" $10.67 $32.00 10" $15.15 $45.42 10" $15.99 $47.97 12" $10.67 $32.00 12" $15.15 $45.42 12" $15.99 $47.97
Residential Volumetric Rate nsr 1.000 aallons Residential Volumetric Rate oer 1.000 aallons Residential Volumetric Rate oer 1. 000 aallons All Volumes $4.5269 All Volumes $6.4260 All Volumes $6.7854
Comm.-lndustrial-Public/Other Comm.-lndustrial-Public/Other Comm.-lndustrial-Public/Other Volumetric Rate par 1.000 aallons Volumetric Rate per 1.000 aallons Volumetric Rate per 1.000 aallons
Comm. Large Comm. Large Comm. Large Pubi/Other Industrial Publ/Other Industrial Publ/Other Industrial
First 100,000 $4.5269 $4.5269 First 100,000 $6.4260 $6.4260 First 100,000 $6.7854 $6.7854 Next 400,000 $4.0883 $4.0883 Next 400,000 $5.8034 $5.8034 Next 400,000 $6.1280 $6.1280 Over 500,000 $2,6189 $1.7032 Over 500,000 $3.7148 $2.4177 Over 500,000 $3.9225 $2.5530
PennVest Surcharge Rate To All Usage Customers Volumetric Rate per 1.000 gallons Alt Volumes $0.6289
Fire Protection Public Fire Prot.
Private Fire Prot.
Fire Protegtion $66.28 Public Fire Prot.
$85.00 Private Fire Prot.
$66.28
$120.66
Fire Protection Public Fire Prot.
Private Fire Prot.
$66.28
$127.41
APPENDIX B
BOROUGH OF SCHUYLKILL HAVEN • WATER FUND Sunvrary Pfoot of Ravonuo Pio Forma Twelve Months Ended 12/31/02 Al Current and Selitemenl Rales Sleo 1, Steo 2, & PennVest Surcdsige
Customers Outsiria Borouoh of Schuylkill Haven Limils
Surpmarv Qulsidn • Res. Cusl
5/8" CusloW Qiarg* 21*' Cuslomei Cnargo 11/?" Cuslorrar Charge Tolal Customer Charfle
Volumeirlr; Chafnn All Volumes Total Residenlial Revenues
SumrraryOuiskfo-Corrm Cuji
5/6' Customer Charge W Cuslomer Charge 1" Cusionw CtTarge 1 MZ' Customt Chatgt 2" Cuslcxtw Charge Total Customer Charge
VoluTOltlc Charge First 100.000 Next 400,000 Over 500.000 Total Volumetric Charge Tolal Commercial
Summary Outsidn • Snail Ind. Ct.n Meter Sifie
y r r 1 1/2' 2* 6*
Custonwr Charge Cuslomei Charge Custottwt Claige Customer Charge Customer Cliarge Customer Charge
Pro ForfTp 2002 Adjusted Currehl Slep t Pro Forma 2002 Settlement Sett. Pro Forma Increase Bala Revenues 'Bexamifis S1561 549.015.40 Si*.475.40 Sl5.6t 249.76 73.76 S19.87 79.48 2348
40.115,000 40,115,000
S4.5269 3181,598 59 "^215,368,59.
Rati; SB 4260
S49.344.64 SI 4,572.64
Revenues $257,778.89 &76,t62.40
'A 41.91% 41.91% 41.93% 41.91%
No.
Tolal Cusl oner Charge
Vdumeiric Ctiarce First 100.000 Naxi 400.000 Over 500,000 Total Volumetric Chatgs Total Ouisiae - Small Inaustrial Custotror
cusl Ha. Bills RFllB Raiq RnvemiP* 248 S11.00 S2.72B.00 S1561 53.871.23 ST, 143 28
12 46 S11.0C 528 00 SI 5.61 749.2B 221,28 8 32 $11.00 352.00 SI 5 61 499.5! 147.52 e 24 SI 4,00 33B.DO 519.87 476.83 140.88
i i 44 $17-00 748.00 S24.13 1.061.72 313.72 99 398 $4,692 00 S6.658.63 SI.966.68
41.95% 41,94%
3k 41.91% 41.91% 41.91% 41.93% 41,94% 41.92%
Sett. Rate $16.49 S 16.49 $20.98
Bale SS.T8W
SaMos 1i;831,000 6.117.000
0
17,948,000
Balfi Bmmiei Sai£ S£tBDU£i Revenues % S4.5269 53,557.75 S8.4260 S76.026.01 527.458.28 41,95% S4.0883 25.008.13 S5.8034 35,499.40 10.491.27 41.95% 52.6169 0.00 S3.7V48 0.00 003
S73,565 88 583,257.88
tl11,525.41 S32.959.53 41.95% 5118,184.09 S34.92S.21 41.85%
Step 2 Pro Forma 2002 Selllemem Pro Forma EexfiOUflS S51.778.60
263 64 63.92
Increase Revenues
S2.763 20 1406 4.44
552,126.36 S2.7B1.72
& 5.64% 5.84% 5 59% 5.64%
Current to Step 2 tnctease Penn Vast Surcharge
517,238.80 87.84 _27.02
SI 7.354.36
49.91% 49.91% 49.89% 49.91 %
Sett. PKS Fo<n\i Revenues
Current lo Slap 2 Including PannVest Smchareo ^
pevenues Ji SI7^3B,60 49.91%
87.84 49,91% 27.92 49.86%
S272,196.32 514,417.33 5.59% S90.599.73 49 89% $0.6289 525.228.32
S17.354.36 49.91%
5115,828.05 83.78% 5324.322.68 517,19905 5.60% S107.954.09 49.89% $25,228.32 S133.1B2.41 61.55%
Raw Revenues 34 Rale Revenufli Revenues % 516.49 $4,089.52 $218 24 5.64% 51.361.52 49 91% 51,361.52 49.91% $1649 791.52 42.24 5.64% 263.52 49.91% 283 52 49.91% $16.49 527.68 23.16 5.64% 175.68 49.91% 175.66 43.91% S20.98 503.52 26.84 5 59% 167.57 49.68% 167.52 4986% S25.48 1,121.12 59.40 5.59% 373.12 49.88% 373.12 49.88%
S7.033.36 S374.6B 5.63% $2,341.36 49.90% 52.341.36 49.90%
Baia RfiVBOIIM i i Rflvenues a SB.7854 580,278.07 84,252,06 5 59% $28,720.32 49.69% S0.S289 $7,440.52 534,160.84 63.78% $8.1280 37,484 98 1,935.58 5.59% 12.476.85 49.69% 50.8289 3,646.98 16.323.83 6527% $3,9125 000 0.00 0.00 $0.6289 0.00 0 00
S117.763.05 $6,237.84 5 59% S30,1B7.17 49.69% $11,287,50 550.484.87 64.26% 5124,796.41 S6.B12,32 5.59% . 541,536.53 4 9.89% S11.287.50 $52,828.03 63.45%
MB, Bills Rain Revenues Bale Revflnufi* ReYfttliSS 31 Bals RevRnuBs RftVftnupf; i i Bamues 34 Ratp Revenup^ pftv&nuiin % 3 12 $11.00 $132.00 S 15.61 S 187.32 $55.32 41.91% 516.49 5197.88 SI 0,56 5.64% $65.88 40.91% 565.88 49.91% 1 4 $11.00 4J 00 SI 5.81 62,44 1844 41.91% 516.49 65.96 3.52 5.64% 21.S6 49,01% 21.96 49.91% 2 8 $11.WJ 68 00 $1581 124.83 36.66 41.91% SI649 131.92 7.04 564% 43.92 49.91% 43.92 49.91% 1 4 SHOO 56.00 $19.67 79.46 23.4B 41,93% 520.98 83.92 444 5.59% 27.92 49.60% 27.92 49.88% 4 16 S17.00 272.00 524.13 366 09 114 OS 41.94% 525.43 407.63 21.60 5.59% 135.66 49.83% 135.68 49.88% 1 4 $29.00 116 00 S41.17 ISI 63 48.68 41.97% S43.47 173.88 9,20 5.59% 57 86 49.90% 57,83 49.00'/.
12 48 _ 1706 00 51.004.88 $296 68 41.93% Si.061.24 556 36 5 81% $353 24 49.89% S353 24 49.89%
Gaj'gns 1.972.000 1.715.000
19; 180.000
Raia 54 5269 $4 0333 S7 61S9
22.867.X0
RevenufT Bm Ravanues 31 Bala BavfiQUSS 54 BaxfiGHtia •A 8.927 05 58 4260 512,672 07 53.745 02 41.95% 56.7654 S13,1BQ.8! ST08 74 $4.45376 49.69% 50.8289 $1.240 19 55.693,85 83.78% 7.011 43 S5 8034 9.952 63 2.941 40 41.85% $6.1260 10.509 52 558.69 5 59% 3,493.09 49.89% 50.6289 1.076,56 4,576,65 85 27%
50.197 14 53.71*8 71.249 88 21.057 72 41 95% S3 9725 75233 55 3,933 69 5 59% 25,041.41 49.69% $0.6269 12.062.30 37.1Q3.71 73 92% $66.130 62 S93.874 76 577.744 i * 41.85%
41.95% $99,123 86 55.249.12 5 53%
5 59% 532.993 26 4969%
49 89% 514.361 05 547,374.31 71,64%
71.41% 568,838 87 st;*.a;9 64 41.85% 41.95% 5103.135.12 S5.3C5 48
5 53% 5 59% 533.346 50
4969% 49 89% 514.361.05 S47.727.55
71,64% 71.41%
BOROUGH OF SCHUYLKILL HAVEN - WATER FUND SLUwrary Proof o! Ravonue Pro Fotma Twelve Months Endea.\2>31/02 At Current and SelllBment Rales Step 1, Slep 2. & PennVest Surciarfle
C| ulnmais OutsMfl aornuah of SctnnitkiH Havnn 1 imi?
Sumffiarv OulS|pe • Lo. Ipt). Cu5t No. M ^ r Size Q m . tiO. B'SS 4' Cusiomer Chaice 2 24 6" Customer Charoe l 12 10* Cusiomer Charfie _0 0 Tom Cuslomer Charges 3 36
PfQ fowy 3002 Atltiiste(iCjrfenf Cur ronl Bale
S7.Q7 S9 67
S10 67
VpliirpalrlcCharap First 100.000 Neil 400,000 Over 500.000 Total Vdumelrlc Charge Tolal Outskla • Large Indusliial Customers
"allons 3,600,000
14.400,000 37,615,000
"KeTsooo
Per Study Revenues
$164.06 116.04
000 5300.12
Step 1 Pro Forrra 2002 Selltemen! Sell. Pro Forma Jncrease Bala Qexfiouai SIO 89 S261.36 SI 3.73 164.76 S15.15 000
BiiSDUB5 577.28 48.72 0 00
41.88% 41.99%
Sett, Bala t l l .50 Si4,4g 515.99
Slep 2 Pro Forma 2002 Settlement Pro Forma BfiX£QU££
5278.00 (73.88
0.00
Jncreasa Current to Slep z Increase Revenues
514.64 8.12 0.00
'A 5.60% 5,54%
5426.12 S126 00 41.93% S449.8B 523.76 5.58%
Fteyepnes 591.92 57.84 0.00
S149.76
% 49.93% 49.84%
49.90%
PennVest Surcharge Sett. Pro Forna Rate Revenues
Currenl lo Slep 2 'ncludi'ng PennVest Surcharge Inc.
Bflyanues S91.92 57.84 000
BalS Revenues fiajs Reytnues Bfiismita 'A S4 5269 16,296.84 S6.4260 523,133.60 58.836.76 41.95% S4CB83 58.871.52 55,3034 83.586.96 24,607.44 41.95% 51.7032 84,406.51 52.4177 91.425.33 _27,01883 41.95%
S139.574 87" $139,874.99'
1196.127.89 558,553.02 41.95% 558,679.Oj' 41.95% $196.554 01
&21S Revemies Rgvaniwij $8.7854 524,427.44 11,29384 $8.1280 88.243.20 4.674 24 $2.5530 96,541.70 5.116.37
5209.21Z.34~~ S11.084.45" 5209 662.22 511.106.21
% 5.59% 5.59% 5.60% 5,59% 5.59%
Rayenues 2i 58.130.60 4969% 29,371.68 49.89% 32,135.19 49.89%
$B9,63?.'47~ 49.89% 569,787,23 49.89%
50.6269 $0.6289 50.6289
frimmawOiilsirtB-PiihliWlnsl Cusl
Cut to mer Charge Customer Charge Customer Charge Customer Charge Cusamor Chargfi Customer charge Customer Charga Custome/ Charge
No.
52.284.04 510,394 64 9,056.16 38,427.84
23,761.85 55,917.04 $35.102.05 S 104.739.52 S35!l 02.05 5104,889.25'
5'8-3/4" r I 1/2-2-3' 4' 10* TolSI Ptituwinsliiunonal
Volumetric Chatge First 100.000 New 400.000 Over 500.000 Tolal Volumslrlc Charge ToW Public/lnsliiutlonal
Total Outside Meiered Revenues
Fire ProtecllohOuKiaB Fire Hydrants - Public
Fire HydrantsrSprlnWers Private
ToOf Outside Revenues
'A 49.93% 49.64%
5149.76 49.90%
83.78% 65.27% 66.82% 75.04% 74.99%
Cusl. No, Bills Bale Revermes Rale Revenues Baxenues i i Paiti Revenues 3i Revenues i i Rale Bamums fcaenaes 34 i i 44 $11.00 5484.00 SI 5.61 5636.84 $202.84 41.01% S16.49 5725.58 S38.72 5.64% $241.56 49.91% $241,58 49.91%
l 4 $11,00 44.80 SI 5.61 62.44 18 44 41.91% $16.49 65 98 3 52 5.64% 21.95 49.91% 21.96 49.91% a 12 $11.00 132.00 515.61 187.32 5532 41.91% $16.49 197.88 10.56 5.64% 65.66 49.91% 65.89 49.91% 3 12 S 14,00 166.00 519.67 238.44 70.44 41.93% 520.98 251.76 13.32 5.59% 83.76 49.88% 83.76 48.86% 3 12 S17.00 204.00 $24.13 269.56 85.56 41.94% $25.48 305.76 16.20 5.59% 101.76 49.83% 101.76 49.88% 1 4 S20.00 80.00 $28 39 113.55 33.se $29.93 119,92 6.3B 5 60% 39.92 49.90% 39,92 49.90% 1 4 $23.00 92.00 $32.35 130 60 38.30 41.98% S34.48 137.92 7.32 5 60% 45.92 40.91% 45.82 49.91% 0 0 532.00 0.00 S45.42 0.09 O.00 547.97 0.00 o.oo 0.00 000
23 92 $1,204.00 51.708.76 5504.76 41.92% St.804.76 S96.00 5.62% $600.78 49.90% 5600.78 49.90%
Rallrm* Rate Rale Re ve tii ms Revel) ire s 54 Bale BBMnues ppvenue^ 'A Revnnues 5i 2,719,000 $4.5269 12.303 64 56.4260 517.472.29 55.163 65 41.95% S6.7854 $16,440.50 5977,21 5.59% 58,140.66 49.69% 50.8269 51.709.03 S7.850 84 83.78%
St.OBBl 9.419.44 $5 8034 13,371.03 3,951,59 41.95% $3.1260 14,1)8.91 747.88 559% 4.699.47 49.89% $0.8289 1,446.99 6.148.46 65.27% 10,258,000 52.8169 26.838.93 S3.7148 38.098.99 11.260.06 41.95% 53.9225 40,229.16 2,130.17 5 59!! 13,39023 49.89% 50.6289 8,450,00 19.640.23 73.92%
S46.567.01 $66.942 31 $20,375.30 41.95% S72.797.S7 S3.955.26 5.59% 524.230 56 49.89% 59.608.87 533.839.53 69.68% 15.279.000 S49.771.01 $70,651.07 S20.88O.06 41.95% $74,602.33 $3,951.26 5.59% 524,831.32 49.88% 59.608,97 534.440.29 69.20%
152.024.000 5558.111.09" 5789,392.44 5233.281 35 41.95% 5833.586.76 $44,178.32 5.60% S277.457.67 49.89% $95,607.89 5373,065.56 67.06%
NO No. units Uruis Billed Bale RevfiniiP'L Bale BfiUfiOUfiS Rexsnues 'A Bala Bfuieoues 'A Rayflnues l i Rale Sex&iuas
86 344 586 28 522.800 32 $63.23 522,800 32 SO.OO 0 00% 566.28 522,80032 SO.OO 0.00% SO.OO O.0D% Sex&iuas
SO.OO 0.00%
75 300 585.00 525.500.00 $120.66 533.19800 510.593,00 41.95% $127.41 $36,223.00 $2,025,00 5 59% 512,723.00 49 89% $12,723.00 49.89%
5904.411.41 S848.390.76 SZ43.979 3S 40.37% $694,592 08 546.201 3? 5.45% S2&0.180.87 4801% S95.507 89 5385.78858 63.83%
APPENDIX C
Supplement No. 40 to Tariff Water-PA PUC No. 3
BOROUGH OF SCHUYLKILL HAVEN WATER DEPARTMENT
Rates, Rules And Regulations Governing The Distribution Of Water
In The Borough of Cressona, And
North Manheim Township, Schuylkill County, Pennsylvania
N O T I C E
This Tariff Increases Rates
ISSUED: , 2003 EFFECTIVE: , 2003
BY: Jack Travis Borough of Schuylkill Haven Water Department 12 West Main Street Schuylkill Haven, PA 17972
Water Department Borough of Schuylkill Haven
Supplement to No. 40 to Tariff Water - PA PUC No. 3
24th Revised Page No. 2 Cancelling 23rd Revised Page No. 2
LIST OF CHANGES MADE BY THIS SUPPLEMENT
This filing increases jurisdictional rates by 5385,790 or 64%. The increase shall
be implemented in two phases. Volumetric rates, customer charges and private fire hydrant rates
are increased, a PENNVest surcharge applicable to all customers is imposed and a new
competitive tariff rate is created.
Issued: ,2003 Effective: ,2003
Supplement No. 40 to Tariff Water - PA PUC No. 3
Water Department 22nd Revised Page No. 4 Borough of Schuylkill Haven Cancelling 21st Revised Page No. 4
SCHEDULE OF RATES AND CHARGES
Section 1. METER RATES
Section 2. APPLICATION OF SCHEDULE (Phase 1 Rates)
This Schedule is applicable to all metered rate customers outside the Borough limits, including municipal authorities for resale purposes.
Section 3. CONSUMPTION CHARGE shall be applied to all consumption in the customer's billing period.
Residential $71000 gallons
Usage All Volumes $6.4260 (I)
All Other Customers Except Large Industrial $/1000 gallons
Usage in Gallons MONTHLY QUARTERLY (C) First 33,333 100,000 $6.4260 (I) Next 133,333 400,000 $5.8034 (I) All over 166,667 500,000 $3.7148 (I)
Large Industrial Customers $/1000 gallons
Usage in Gallons MONTHLY First 100,000 $6.4260 • (I) Next 400,000 $5.8034 (I) All over 500,000 $2.4177 (1)
Residential Residential shall apply to customers who receive water exclusively for residential purposes. Residential customers have monthly or quarterly billing periods. (C)
All Other Customers Except Large Industrial Commercial shall apply to customers who receive water for business including not for profit business and government offices purposes, including businesses operated from residences. All commercial customers have monthly or quarterly billing periods. (C)
Public/Other shall apply to public and private schools, hospitals, and all other customers not otherwise classified. All customers in this classification have monthly or quarterly billing periods. (C)
Large Industrial Industrial shall apply to customers who receive water used for agricultural or manufacturing business purposes. Large Industrial rates shall apply to those industrial customers consuming greater than 500,000 gallons per month. All Large Industrial customers have monthly billing periods.
(I) Indicates Increase (C) Indicates Change
Issued: , 2003 Effective: 2003
Water Department Borough of Schuylkill Haven
Supplement No. 40 to Tariff Water - PA PUC No. 3
1st Revised Page No. 4a Canceling Original Page No. 4a
SCHEDULE OF RATES AND CHARGES
Section 1. METER RATES
Section 2. APPLICATION OF SCHEDULE (Phase 2 Rates)
This Schedule rs applicable to ail metered rate customers outside the Borough limits, including municipal authorities for resale purposes.
Section 3. CONSUMPTION CHARGE shall be applied to all consumption in the customer's billing period.
Residential
Usage All Volumes
All Other Customers Except Large Industrial
Usage in Gallons MONTHLY First 33,333 Next 133,333 All over 166,667
Large Industrial Customers
Usage in Gallons MONTHLY First 100,000 Next 400,000 All over 500,000
$/1000 gallons
$6.7854
$71000 gallons
QUARTERLY 100,000 400,000 500,000
$6.7854 $6.1280 $3.9225
$71000 gallons
$6.7854 $6.1280 $2.5530
Regidential Residential shall apply to customers who receive water exclusively for residential purposes. All residential customers have monthly or quarterly billing periods.
AH Other Customers Except Large Industrial Commercial shall apply to customers who receive water for business including not for profit business and government offices purposes, including businesses operated from residences. All commercial customers have monthly or quarterly billing periods.
(I)
(C) (I) (I) (1)
(I) (I) (I)
(C)
(Q
Public70ther shall apply to public and private schools, hospitals, and all other customers not otherwise classified. All customers in this classification have monthly or quarterly billing periods. (C)
Large Industrial Industrial shall apply to customers who receive water used for agricultural or manufacturing business purposes. Large Industrial rates shall apply to those industrial customers consuming greater than 500,000 gallons per month. All Large Industrial customers have monthly billing periods.
(I) Indicates Increase (C) Indicates Change'
Issued: , 2003 Effective: ,2003
Water Department Borough of Schuylkill Haven
Supplement No. 40 to Tariff Water - PA PUC No. 3
20th Revised Page No. 5 Cancelling 19th Revised Page No. 5
SCHEDULE OF RATES AND CHARGES
Section 1. CUSTOMER CHARGE (I) (Phase 1 Rates)
Each customer shall be billed the monthly customer charge set forth below based on the size of the meter installed to serve the customer.
Size of Meter Monthlv Charae Ouarterlv Charae 5/8 inch S5.21 $15.61 3/4 inch $5.21 $15.61 1 inch $5.21 $15.61 1 \ inch $6.63 $19.87 2 inch $8.05 $24.13 3 inch $9.47 $28.39 4 inch $10.89 $32.65 6 inch $13.73 $41.17 8 inch $15.15 $45.42 10 inch $15.15 $45.42 12 inch $15.15 $45.42
Section 2. APPLICATION OF SCHEDULE
This schedule applies to all public and private fire protection service rendered outside the Borough limits.
Section 3. PUBLIC FIRE PROTECTION PER MONTH
Fire hydrants, each $22.10
Section 4. PRIVATE FIRE PROTECTION (Phase 1 Rates)
(1) Fire hydrants, each
(2) Sprinkler systems, each
Sections. LATE PAYMENT CHARGE
Residential customers only Other than Residential customers
PER MONTH $40.22 (I)
$40.22 (I)
PER QUARTER
$66.28
PER QUARTER $120.66 (I)
(C)
$120.66 (I)
If not paid within 30 days from mailing of bill:
1.25% per billing period 5.00% per billing period
(C)
(D Indicates Increase
Issued: 2003 Effective: ,2003
Water Department Borough of Schuylkill Haven
Supplement No. 40 to Tariff Water - PA PUC No. 3
1st Revised Page No. 5a Canceling Original Page No. 5a
SCHEDULE OF RATES AND CHARGES
Section 1. CUSTOMER CHARGE (I) (Phase 2 Rates)
Each customer shall be billed the monthly customer charge set forth below based on the size of the meter installed to serve the customer.
Size of Meter Monthlv Charge Ouarterlv Charei 5/8 inch $5.50 $16.49 3/4 inch $5.50 $16.49 I inch $5.50 $16.49 1 % inch $7.00 $20.98 2 inch $8.50 $25.48 3 inch $10.00 $29.98 4 inch $11.50 $34.48 6 inch $14.49 $43.47 8 inch $15.99 $47.97 10 inch $15.99 $47.97 12 inch $15.99 $47.97
Section 2. APPLICATION OF SCHEDULE
limits. This schedule applies to all public and private fire protection service rendered outside the Borough
Section 3. PUBLIC FIRE PROTECTION PER MONTH
Fire hydrants, each $22.10
Section 4. PRIVATE FIRE PROTECTION (Phase 2 Rates)
(1) Fire hydrants, each
(2) Sprinkler systems, each
Sections. LATE PAYMENT CHARGE
Residential customers only Other than Residential customers
PER MONTH $42.47 (I)
PER QUARTER
$66.28
PER QUARTER $127.41 (I)
(Q
$42.47 (I) $127.41 (I)
I f not paid within 30 days from mailing of bill:
1.25% per billing period 5.00% per billing period
(C)
(I) Indicates Increase
Issued: ,2003 Effective: , 2003
Supplement No. 40 to Tariff Water - PA PUC No. 3
Water Department Borough of Schuylkill Haven Original Page No. 5c
PENNVEST SURCHARGE (C)
There shall be imposed upon all customers a volumetric surcharge of $ /1000 gallons to recover PENNVest debt service costs, calculated as follows:
Computation and Application of PENNVest Surcharge Rate
The PENNVest Surcharge Rate shall be computed to the nearest one-hundredth cent (0.01 cent) and shall be applied to each 1,000 gallons of volumetric water billed to each customer's bill for a one (1) year period during the billing periods of through provided, however, that such rate may be revised on an interim basis subject to approval of the Pennsylvania Public Utility Commission upon determination that the effective rate will result in material over- or undercollections i f not revised. Such interim change shall become effective thirty (30) days from the date of filing unless otherwise denied or modified by the Commission.
Definitions "PSR" - PENNVest Surcharge Rate determined to the nearest one-hundredth cent (0.01 cent)
to be applied to each 1,000 gallons of water supplied. "D" - the number of dollars, determined as the total jurisdictional PENNVest debt service payments (principal and interest) for the future months within the billing period. "E" - experienced net over- or undercollection of the total jurisdictional PENNVest debt service payments (principal and interest) as of the end of the twelve (12) month period ending with 60 days prior to the future billing period. "S" - projected 1,000 gallons of water to be billed to customers during the future billing period.
"PENNVest Debt Service" - the jurisdictional principal and interest payments required to be paid to PENNVest for the designated PENNVest loan applicable to the PENNVest Surcharge Rate calculation.
"Billing Year" - The twelve month period beginning with the original date when the 1 st monthly payment is due on the applicable PENNVest loan; and, then the same twelve month periods thereafter until the PENNVest loan is fully repaid.
Calculation PSR- (D+E)/S
Filing with Pennsvlvania Public Utility Commission:
The preliminary filing of the PSR will be made 60 days prior to the effective date. A final filing based upon actual data together with revisions to data in the preliminary filing shall be made 30 days prior to the effective date. The application of the PSR shall be subject to continuous review by the Commission at such intervals as the Commission shall determine.
(C) Indicates Change
Issued: , 2003 " Effective: , 2003
APPENDIX D
Supplement No. 40 to Tariff Water - PA PUC No. 3
Water Pepartment Borough of Schuylkill Haven Original Page No. 5b
RIDER CS-COMPETIT1VE SERVICE (C) Applicability.
Throughout the territory served under this tariff.
Availability. This rider is available to an existing customer or prospective customer that: (1) purchases or intends to purchase water from the Company for any purpose; (2) enters into a Service Agreement for a term of not less than 2 years; . (3) during the original and any renewal terms of the Service Agreement, agrees to purchase a
minimum of 750,000 gallons of water per month at a daily load factor of not less than 0.60; and (4) has a viable competitive alternative to service from the Company, intends to select that alternative
to the detriment of the Company and its other customers but for this tariff and agrees that for the term of its Service Agreement hereunder and any renewals thereof lo only use the Company's water for the entirety of its water needs.
The Company shall require documentation to establish, to the company's satisfaction, the existence of a competitive alternative. Such documentation may include, but is not limited to, an affidavit of the customer or, if the customer is a corporation, an affidavit of one or more of its corporate officers.
Rate. The rate(s) to be charged qualifying customers under this rider will be as set forth in the Service
Agreement, provided, however, that such rate(s): (1) shall not exceed the Maximum Rate; (2) shall not be less than the Minimum Rate; and (3) shall be subject to an Escalation Clause, as hereafter defined.
Maximum Rate: The Maximum Rate shall be the charges specified in the Company's Rate Schedule that would otherwise apply to the qualifying customer absent this rider.
Minimum Rate: The minimum rate shall be sufficient to recover: (1) the Production Cost of Water; (2) the fixed costs (depreciation and pre-tax return) associated with the facilities necessary to serve the customer; and (3) some portion of the fixed costs of the Company's other facilities. For purposes of this rider, the Production Cost of Water shall be the variable cost the company incurs to produce additional treated water, which consists of expenses for electric power, chemicals and purchased water (where applicable).
Escalation Clause: The rate set forth in the Service Agreement shall be subject to an Escalation Clause, during the original and any renewal terms of the Service Agreement, based upon changes in published price indices and /or changes in the Company's cost of service, as the Company and the qualifying customer shall agree.
Filing With The Pennsylvania Public Utility Commission/Confidentiality: Service Agreements entered into between the Company and qualifying customers under this rider shall be filed with the Commission on a confidential basis within thirty (30) days of their execution and shall not be subject to disclosure except by Petition made to and granted by the Commission pursuant to the Commission's regulations.
(C) Indicates Change
Issued: , 2003 Effective: , 2003
APPENDIX E
COMMONWEALTH OF PENNSYLVHNlA
IRWIN A. POPOWSKY Consumer Advocate
OFFICE OF CONSUMER ADVOCATE 559 Walnut Street 5th Floor, Foium Place
Hanisburg, Pennsyjvenla 17101-1923 (717)783-5040
December 30, 2002
Re: Pa. Public UtiUty Comraisfon v. i-WaterDept, Borough of Schuylldll Have L
Docket Nos. R-00027552, R-00027552C0001-C0027
Dear Customer Complainant:
I am writing to inform you of a settlement that has been reache 1 parties in the above-referenced case. This settlement, which is attached, is also bijing Administrative Law Judge (AU) in this proceeding for his review.
Borough of SchuyUdll Haven - Water Department (BSH or Compahy) of Consumer Advocate COCA), the Office of Trial Staff (OTS), the Office of SlnaU Advocate (OSBA), and the Township of North Manheim and Borough of Cresson have signed a Joint Petition for Settlement (Settlement) in order to resolve the i this case. In the Settlement, these parties request that the Pennsylvania Commission (PUC) approve an increase of the annual revenues of the Company of $385,790. Under this proposal, BSH will start to recover part of the increase through base rates when the Joint Petition ia approved and BSH will start remainder of the increase after the new water treatment plant is put into servict phase of the increase will consist of a 546,202 increase to base rates and a sure recover $95,608. This proposed two-step increase would take the place of the Cc request for an increase of $548,356.
AJ J BSH will submit this Settlement, signed by all of the parties li
Administrative Law Judge Herbert Smolen. After a review of this infonnation, prepare a written Recommended Decision, which you will receive at a later time, that the Commission adopt, modify, or reject the Settlement. The PUC will the i ruling on whether or not the increase will be approved.
FAX (717) 783-7152 E-Mail: [email protected]
by the other sent to the
, the Office Business
(Municipals) sues raised in ublic Utility
in the amount or $243,980, recover the The second
arge that will mpany's filed
ted above, to Smolen will
rfceommending make a final
Page 2 of3
Please review the attached copy of the Settlement. Because yAu are a Formal Complainant in this case, you have an opportunity to respond to the Settlemept in any of the following ways:
sig ledpagt < r
If you agree with the teems of the Settlement, you may join in the Settlement signing the Signature Page (enclosed with this letter) and returning the to A U Smolen. Your Signature Page must be received by the A U on January 15, 2003. Please understand that returning the Signature P signify that you do not wish to continue with your Formal Complaint an< PUC should consider your Formal Complaint to be withdrawn.
by ;e
before ige will that the
If you do not want to join in the Settlement, but will not actively oppos 3 it, you may communicate your position to in writing to A U Smolen or the OC L Your correspondence must be received by the A U or OCA by Jauuary 15s 20P3. You may also contact the OCA by telephone, toll-free, at (800) 684-6560.
If you do not want to join in the Settlement and would like to obj ect to or cbmment on the Settlement, you may write a letter to A U Smolen sharing those oqjections or comments. The AU must receive your letter by January 15,2003.
You may request a hearing on your Formal Complaint, regardless of your position on the Settlement. The AU has discretion to schedule a hearing or to ;onsider your complaint without a hearing. Either way, AU Smolen will han He your Formal Complaint as part of his Recommended Decision. If you dc want a hearing on your complaint, the AU must receive your written request by January 15,2003.
coi ununicate
This is your opportunity to express your opimons on the Settlenlent case to AU Smolen before he issues his Recommended Decision. Please know required to do any of the above - these actions are voluntary. However, if you a response, you must send the signature page to the address below or comments and/or objections to AU Smolen or the OCA. Your coirespondence ifiust by Wednesday, January 15 , 2003.
The AXJ's address is;
Honorable Herbert Smolen, ALJ Pennsylvania Public Utility Commission 1302 Philadelphia State Office Building 1400 West Spring Garden Street Philadelphia, PA 19130
and the rate that you are not
c loose to submit your
be received
Page 3 of 3
Your rights, as a Formal Complainant, to file Exceptions anfi/or Exceptions to the AU's Recommended Decision when issued are not affected b unless you sign on to the Settlement by sending in your signed Signature Page or you do not object to the Settlement either through written comments to the ALJ you sign onto the Settlement or express that you do not object to the Settlemen permitted to file Exceptions to the Recommended Decision if it is approved by Al
Please carefully review the Settlement and the attached statemen s in support. If you have any questions, please contact me at (717) 783-5048 or toll-free at Thank you for your time and interest with regard to this matter.
a Reply to the Settlement, rcm express that or the OCA. If you will not be
J Smolen.
300) 684-6560.
Very truly yours,
Erin L. Gannon Assistant Consumer Advocate
cc: Honorable Herbert Smolen, ALJ Kenneth Zielonis, Esq. Charles D. Shields, Esq. Carol F. Pennington, Esq. Daniel P. Delaney, Esq.
00072173.WPD
SIGNATURE PAGE
Please sign this sheet if you would like to join in the Joint Petition for Settlement Borough of Schuylkill Haven - Water Department, the Office of Consumer Adv* of Trial Staff, the Office of Small Business Advocate, and the Township of North Manheim and Borough of Cressona in this case, Pennsylvania Public Utility Commission Schuylkill Haven - Water Department, Docket Nos, R-00027552, R-0002755
v. Borough of 12C0001-C0027.
I have read the terms of the Settlement Agreement and wish to join in it IT am willing to withdraw my Formal Complaint in this matter if the Public Utility Commission approves the Settlement without modification.
Please Print Your Full Name
Please Write Your Address Here:
Please Sign Your Full Name
Docket Number of Your Complaint: 1MH)Q27552ri<m
signed by cote, the Office
APPENDIX F
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
Pennsylvania Public Utility Commission, et. al.
v.
Borough of Schuylkill Haven Water Department
Docket Nos. R-00027552, et. al.
STATEMENT OF THE BOROUGH OF SCHUYLKILL HAVEN - WATER DEPARTMENT
IN SUPPORT OF JOINT PETITION FOR FULL SETTLEMENT
OF RATE INVESTIGATION
The Borough of Schuylkill Haven-Water Department, ("Borough"), hereby files this
Statement in Support of Joint Petition for Settlement of Rate Investigation at Docket No. R-
00027552, et ah The Borough specifically supports the Joint Petition as being in the best interests
of the Borough and its customers, and, therefore, as being in the public interest. Moreover, the
Borough requests that Your Honor and the Commission expeditiously approve the Joint Petition in
I ' U I I i j o i L i i s i i i t ^ i i L \JX i v l a w t m i l l i o n "
On August 29, 2002, the Borough filed Supplement No. 38 to Tariff Water-Pa.
P.U.C. No. 3 ("Supplement No. 38"), to become effective October 31, 2002. Supplement No. 38
proposed rates designed to produce an increase in jurisdictional annual operating revenues of
$548,356 or approximately 91% above the overall level of pro forma revenue under existing
jurisdictional rates. This is the first general rate increase filed by the Borough since 1998. The
filing of Supplement No. 38 was required, inter alia, by a need to recover increases in operating
expenses since the last rate case and the need to include in rates new facilities currently used in
providing service to the public and prospective facilities that (1) must be constructed to comply
with existing environmental standards imposed by the United States Environmental Protection
Agency and by the Pennsylvania Department of Environmental Protection, ("PaDEP").
The Borough has agreed to accept a rate increase for outside jurisdictional
customers of $385,790. This increase represents a substantial reduction from the Borough's original
filing. The reduction was acceptable to the Borough when coupled with the earlier effective date
than if the case had been fully litigated.
This rate increase will be phased-in over two phases. Phase I rates are designed to
produce approximately $243,980 in additional revenues from outside, jurisdictional customers.
This increase is designed to recover the cost of facilities currently used to render water service but
not currently included in rates and to recover the increase in the cost of operating the systems.
Phase n rates are designed to produce approximately $141,808 in additional revenue from outside
customers and will consist of a base rate increase and a PennVEST loan surcharge. Phase I rates
-will-be-implemented-after-Gom shall be placed-
in effect once the Borough files a notice the PaDEP indicating that the new water treatment which
is the subject of the Phase H project has been completed to that agencies' requirements as it may
have jurisdiction.
Resolution of this rate investigation by settlement rather than by full litigation will
avoid the substantial expense and time associated with full litigation. This saving in rate case
expense best serves ratepayers. Further settlement avoids the uncertainty inherent in litigation thus
serving the best interest of ratepayers. Finally, the settlement proposed by all the parties is fair and
reasonable. It allows the Borough to include in rates capital expenditures currently used to render
service that are not included in existing rates. It provides that new facilities constructed by the
Borough will be included in rates once another state agency has assured itself that the facilities have
been constructed and are operating. And it provides for a PENNVest surcharge for a new water
treatment plant that must be constructed to meet the Borough's obligation to provide safe and
adequate service and to meet environmental requirements.
Appendix G
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
Pennsylvania Public Utility Commission, et al.
v.
Borough of Schuylkill Haven -Water Department
Docket No. R-00027552, et al.
STATEMENT OF THE OFFICE OF CONSUMER ADVOCATE IN SUPPORT OF JOINT PETITION FOR SETTLEMENT
The Office of Consumer Advocate of the Commonwealth of Pennsylvania
(OCA), one of the signatory parties" to the Joint Petition for Settlement (Settlement), finds the
terms and conditions of the Settlement to be in the public interest for the following reasons:
I. INTRODUCTION
On August 29, 2002, Borough of Schuylkill Haven-Water Department (BSH or
Company) filed Supplement No. 38 to Tariff Water - Pa.P.U.C. No. 3, to be effective October
31, 2002, requesting an increase in revenues of approximately 91%. If approved in full, the
Company's proposal would have increased its revenues by $548,356.
The Commission's Office of Trial Staff (OTS) filed its Notice of Appearance
on September 24, 2002. The OCA filed a formal complaint on October 2, 2002. On or about
October 11, 2002s the Office of Small Business Advocate (OSBA) filed a Notice of
Intervention. The Township of North Manheim and Borough of Cressona (Municipals) filed
a Formal Complaint on October 23, 2002. Twenty-six customers also filed Formal
Complaints. On October 25, 2002, the Pennsylvania Public Utility Commission (PUC or
Commission) entered an order suspending the general rate increase filing until May 31, 2003,
pursuant to 66 Pa. C.S. § 1308(d), and assigned the proceeding to the Office of Administrative
Law Judge.
A prehearing conference, with Administrative Law Judge (ALJ) Herbert
Smolen presiding, was held on November 21, 2002, in which the Company, OCA, OSBA,
OTS, and the Municipals (Settlement Parties) participated. Pursuant to the schedule
developed during the prehearing, a Public Input Hearing was held in the Borough of
Schuylkill Haven on December 10, 2002. Twelve jurisdictional and non-jurisdictional
customers provided testimony.
During the course of preparing for the litigation of this proceeding, the
Settlement Parties undertook numerous informal settlement discussions which resulted in the
Joint Petition for Settlement. The OCA submits that the proposed Settlement is in the public
interest for the reasons discussed below.
I I . REVENUES
The proposed Settlement provides for an overall annual revenue increase not in
excess of $385,790, or 63.9%. The proposed increase would be implemented in two steps.
First, base rates would increase by $243,980, or 40.4% (Phase I). Then, after the new water
treatment plant is on-line, base rates would increase by an additional $46,202 and a PennVest
surcharge of $95,608 (applicable only to volumetric rates) would go into effect (Phase II).
The second phase would increase revenues by approximately 16.7%. Based on the OCA's
analysis of BSH's filing, the proposed increase under the Settlement represents an amount
which, in the OCA's view, would be within the range of the likely outcomes in the event of
full litigation of the case.
Under the Company's rate request, the net annual bill for a residential
customer using 52,000 gallons of water per year would have increased from $279.40 per year
to $542.80. However, under the proposed Settlement, a residential customer using 52,000
gallons of water per year would pay $396.59 per year, an increase of 41.9%, during Phase I .
After Phase n rates go into effect, the same customer's annual bill would increase to $418.80,
or an additional 5.6%, not including the PennVest surcharge that would also apply to
volumetric rates.
III. STAY-OUT PROVISION
Under the proposed Settlement, BSH cannot file another general rate increase
before any earlier than twelve (12) months after Commission approval of this Joint Settlement
or until Phase II rates are placed into effect, whichever is later - unless the Company
demonstrates that its debt service coverage ratio on outstanding debt falls to or below 1.15x.
The proposed stay-out provision should prevent another rate increase before the second half
of 2004, assuming the Company files as soon as the stay-out expires and assuming the next
case is fully litigated. "Thus, BSH's ratepayers will be assured of some level of rate stability.
IV. CONCLUSION
The terms and conditions of the proposed settlement of this rate proceeding
represent a fair and reasonable resolution of the issues and claims arising in this proceeding. I f
approved, the proposed Settlement would provide for an increase of $385,790 to annual
revenues, reduced from the $548,356 annual increase proposed in the Company's filing. In
addition, the ratepayers will benefit from the stay-out. Finally, the Commission and all parties
would benefit by the reduction in rate case expense and the conservation of resources made
possible by adoption of the Settlement in lieu of full litigation.
WHEREFORE, for the foregoing reasons, the Office of Consumer Advocate
submits that the proposed Settlement is in the best interests of the public and of Borough of
Schuylkill Haven - Water Department customers.
Respectfully submitted,
Erin L. Gannon Assistant Consumer Advocate Christine Maloni Hoover Senior Assistant Consumer Advocate
Counsel for: Irwin A. Popowsky Consumer Advocate
Office of Consumer Advocate 555 Walnut Street, 5 th Floor, Forum Place Harrisburg, PA 17101-1923
. O l 7^ 7R3-5nAR
Dated: December 26, 2002 00072163.doc
APPENDIX H
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
PENNSYLVANIA PUBLIC UTILITY COMMISSION
BOROUGH OF SCHUYLKILL HAVEN WATER FUND
Docket No. R-00027552
OFFICE OF SMALL BUSINESS ADVOCATE STATEMENT IN SUPPORT OF
JOINT PETITION FOR SETTLEMENT OF RATE INVESTIGATION
The Small Business Advocate i s authorized and d i r e c t e d t o represent the
i n t e r e s t s of the small business consumers of u t i l i t y services i n the Commonwealth
of Pennsylvania under the p r o v i s i o n s of the Small Business Advocate Act, 73 Pa.
C.S. 399.41 et sea. Pursuant t o t h a t s t a t u t o r y a u t h o r i t y , the O f f i c e of Small
Business Advocate ("OSBA") intervened i n Docket No. R-00027552, the October 11,
2002 base rates f i l i n g of Borough of S c h u y l k i l l Haven - Water Fund ( " S c h u y l k i l l
Haven" or the "Company"). The OSBA a c t i v e l y p a r t i c i p a t e d i n the n e g o t i a t i o n s
t h a t l e d to the proposed settlement, and i s a s i g n a t o r y t o the Settlement
P e t i t i o n ("Settlement") f i l e d on December 26, 2002.
The OSBA submits t h a t the settlement i s i n the p u b l i c i n t e r e s t , i n c l u d i n g
the i n t e r e s t s of small business customers, f o r the f o l l o w i n g reasons:
1. The revenue requirement permitted under the settlement f o r
j u r i s d i c t i o n a l customers i s $385,790 which i s 71 percent of the
$548,356 which was o r i g i n a l l y requested by S c h u y l k i l l Haven.
2. The r a t e increase i s t o be implemented i n two phases', the second of
which p e r t a i n s t o the operation of a new water treatment p l a n t .
This ensures t h a t the second p a r t of the increase w i l l not be
charged u n t i l the new treatment p l a n t i s a c t u a l l y i n s e r v i c e .
3. S c h u y l k i l l Haven has agreed t o a stayout of twelve months from the
date of Commission approval of t h i s Settlement. This w i l l give
customers a greater amount of. r a t e s t a b i l i t y than they would have
otherwise.
4 . S c h u y l k i l l Haven has agreed t o add another r a t e block t o consumption
f a l l i n g w i t h i n i t s zero and 100,000 ga l l o n s per month r a t e block as
p a r t of" i t s r a t e design proposal i n i t s next r a t e case. This w i l l
b e n e f i t small•commercial customers because such a r a t e block w i l l
describe t h e i r usage more accurately.
For the reasons set f o r t h i n the Settlement i t s e l f , as w e l l as the a d d i t i o n a l
f a c t o r s t h a t are enumerated i n t h i s statement, the OSBA supports the proposed
Settlement and r e s p e c t f u l l y requests t h a t the ALJ and the Commission approve the
Settlement P e t i t i o n i n i t s e n t i r e t y .
R e s p e c t f u l l y submitted,
Carol F. Pennington Acting Small Business C&^vocate
Date: December^, , 2002
APPENDIX I
B E F O R E THE PENNSYLVANIA PUBLIC UTILITY COMMISSION ADMINISTRATIVE LAW JUDGE H E R B E R T SMOLEN PRESIDING
Pennsylvania Public Utility Commission
v.
Borough of Schuylkill Haven Water Department
North Manheim Township and Borough of Cressona
v.
Borough of Schuylkill Haven Water Department
Docket No. R-00027552
Docket No. R-00027552C0025
STATEMENT IN SUPPORT OF JOINT SETTLEMENT PETITION.
North Manheim Township and the Borough of Cressona ("the Municipals")
hereby file this statement in support of the Joint Petition in Full Settlement of the above
captioned rate investigation. The Municipals filed a complaint on October 25, 2002
challenging the justness and reasonableness of the rates proposed by the Borough of
Schuylkill Haven ("Schuylkill Haven") which are the subject of the above captioned rate
investigation. The Municipals have engaged in formal and informal discovery and
participated in settlement discussions among the parties in an effort to resolve this
matter without the expense and uncertainty of full litigation.
HA-127945 vi 0605300-0601
The Municipals support the proposed settlement as a reasonable compromise of
all of the parties' positions. Schuylkill Haven has agreed to accept a lesser revenue
increase than originally requested in its filing. Schuylkill Haven has also agreed to a
modest stay-out provision which will permit Schuylkill Haven's water customers some
rate stability following the imposition of the increased rates identified in the Joint
Settlement Petition. The Municipals have agreed to forego litigation in this proceeding
of the issues identified in the October 25, 2002 complaint.
As demonstrated in the testimony of Township and Borough residents presented
at the public input hearing of December 10, 2002, many of Schuylkill Haven's water,
customers are elderly and living on fixed incomes. Increased water rates are a hardship
on these customers and should be permitted by the Public Utility Commission
("Commission") only on a limited and infrequent basis. The Municipals support this
settlement only for purposes of resolving the instant proceeding and is made without
any admission against or prejudice to any positions that the Municipals might adopt
during subsequent litigation involving rates and service provided by Schuylkill Haven,
including in this case if this proposed settlement is rejected by the Presiding Officer and
Commission. Although the Municipals do not agree to any specific rate case
adjustments reflected in the proposed rates, the Municipals agree that this settlement
reflects a reasonable compromise of alt of the parties' positions and should be adopted
by the Presiding Administrative Law Judge and the Commission.
Respectfully submitted,
Kirkpatrick & Lockhart LLP 240 North Third Street Harrisburg, PA 17101-1507 (717) 231-4500 (717) 231-4501 (Fax) [email protected]
Daniel P. Delaney
Counsel for NortJl^MEaoMrm Township and Borough of Cressona
Dated: January 7, 2003
ATTACHMENT II
SIGNATURE PAGE
Please sign this sheet if you would like to join in the Joint Petition for Settli ment signed by Borough of Schuylkill Haven - Water Department, the Offlceof Consumer Adv. ofTrialStaff, the Ofjfice of Small Business Advocate, and the Township ofNort Borough of Cressona in this case, Pennsylvania Public Utility Commissior Schuylkill Haven - Water Department, Docket Nos. R-00027552, R~0002755
I have read the terms of the Settlement Agreement and wish to jam in it. withdraw my Formal Complaint in this matter if the Public Utility Commissi m Settlement without modification.
Please Sign Your Full^ame
T am willing to approves the
Please Print Your Full Name
Please Write Your Address Here:
Docket Number of Your Complaint: R.nnniT irnn
^ 3 2003
JIJSLiC UTILITY COMMiSSJOM PHILADELPHiA OFFICE
•DM/NISTRATION LAW JUDGE
caU, theOffice i Manheim and v. Borough of C0001-C0027.
SIGNATURE PAGE
Please sign this sheet if you would like to join in the Joint Petition for Setth ment signed by Borough of Schuylkill Haven - Water Department, the Offlceof Consumer Adv, cote, the Office ofTrialStaff, the Office ofSmall Business Advocate, and the Township ofNort i Manheim and Borough of Cressona in this case, Pennsylvania Public Utility Commissior v. Borough of Schuylkill Haven - Water Department, Docket Nos. R-00027552, R-000275S !C0OO1-COO27.
I have read the terms of the Settlement Agreement and wish to join in it J am willing to withdraw my Formal Complaint in this matter if the Public Utility Commission approves the Settlement without modification.
le^sePri Please Print Your Full Name
Please'Write Your Address Here:
Plea/e Sign Your Full Name
Docket Number of Your Complaint: R^Qflfl27552CnO
,EC
JAN 8 2003
ai fC UTILITY COMMiSSiOM PHILADELPHIA OFFICE
••^WISTRATiOW LAW JUDGE
SIGNATURE PAGE
Please sign this sheet if you would like to join in the Joint Petition for Setth ment Borough of Schuylkill Haven - Water Department, the Office of Consumer Adv. 'cate}
ofTrialStaff, the Officeoj'SmallBusiness Advocate, and the Township of Nort i Borough of Cressona in this case, Pennsylvania Public Utility Commission Schuylkill Haven - Water Department, Docket Nos. R-00027552, R-0002755
signed by the Office
Manheim and v. Borough of
bC000l-C0027.
I have read the terms of the Settlement Agreement and wish to join in it T am willing to withdraw my Formal Complaint in this matter if the Public Utility Commissi <n approves the Settlement without modification.
Please Print Your Full Name
Please Write Your Address Here:
ease Sign Y^tfrTWl Name
Pocket Number of Your Complaint: iKflnni75*2rnn
:r • i f i l iTY COMMlo-
SIGNATURE PAGE
Please sign this sheet if you would like to join in the Joint Petition for Setth ment Borough of Schuylkill Haven - Water Department, the Office ofConsumerAdvocate, of Trial Staff, the Office of SmallBusiness Advocate, and the Township of Nort Borough of Cressona in this case, Pennsylvania Public Utility Commission Schuylkill Haven - Water Department, Docket Nos. R-00027552, R-000275WC0001
I have {read the terms of the Settlement Agreement and wish to join in it IT am willing to withdraw my Formal Complaint in this matter if the Public Utility Commission approves the Settlement without modification.
USX A fiaspe-f d. Please iPrint Your Full Name
Please-Write Your Address Here:
Please Sign Your FuU Name
CfCSSantt , PA
Docket Number of Your Complaint: TMt0027552C0ft
1 V U;:
signed by ; the Office
i Manheim and v. Borough of
-C0027.
9
•
SIGNATURE PAGE
Please sign this sheet if you would like to join in the Joint Petition for Settlement signed by Borough of Schuylkill Haven - Water Department, the Office of Consumer Adv, ofTrialStaff the Office of SmallBusiness Advocate, and the Township of Nort i Manheim and Borough of Cressona in this case, Pennsylvania Public Utility Commission Schuylkill Haven - Water Department, Docket Nos. R-00027552, R-000275S \C000l-C0027*
1 have read the terms of the Settlement Agreement and wish to join in it withdraw my Formal Complaint in this matter if the Public Utility Commission Settlement without modification.
Please Print Your Full Name
Please Write Your Address Here:
please Sign Your Full Name
/ 3 CU/ULES ST
Docket Number of Your Complaint: B^noniT^irnn
I:"^. IT™* / < " ^
JAN 9 2003
SLiC UTILITY COMMISSiCN PHILADELPHIA OFFICE
•MINISTRATION LAW JUDGF
cote, the Office
v. Borough of
f am willing to approves the
January 6,2003
Honorable Herbert Smolen, ALJ Pennsylvania Public Utility Commission 1302 Philadelphia State Office Building 1400 West Spring Garden Streel Philadelphia, Pa. 19130
Dear Honorable Judge Smolen, No new infonnation has been presented to the public since the public input hearing was held on December 10.2002. What has changed? Why can the Schuylkill Haven Water Department now proceed with their building program wilh less money? Why did they need $548,356.00 then, but now can do the same wilh only $385,790.00? What has Changed in their new plan of operation? Have they scaled down their original building plans?
Have they looked into renovating their existing facility? Are they going to change their bookkeeping methods? Will Schuylkill Haven Water Department be able to just file for rate increases twelve months after the implementation of the new rates? •Do we sliUjneed to build a facility capable of producing six million gallons per day when consumption is only 1.3 million gallons per day? In closing, I do not want to join in the settlement. I do not have the means to actively oppose them, but 1
strongly object to this settlement.
Sincerely.
David E. Zimmerman
P', . o
JAN 8 2003
LiBLIO UTILITY COMMISSION PHILADELPHIA OFFICE
•V:i.V$TRATlON LAW JUDGE
& /
R-000275'52, R-OOb27552COO0^^t a l . P e n n s y l v a n i a P u b l i A f c t i l i t y Commiss ion v Borough o f S c h u y l k i l l Haven Water Depa r tmen t
KENNETH ZIELONIS ESQUIRE STEVENS & LEE PC PO BOX 11670 HARRISBURG PA 17108-1670
CHERYL R ZIMMERMAN C0001 47 SCHUYLKILL STREET CRESSONA PA 17929
DAVID E ZIMMERMAN C00Q2 57 SOUTH 3RD STREET CRESSONA PA 17929
JOHN ZVORSKY C0003 51 ASH STREET CRESSONA PA 17929-1325
CINDY KEELEY C0004 44 CEDAR STREET CRESSONA PA 17929
FORREST S SCHWARTZ C0005 128 POTTSVILLE STREET CRESSONA PA 17929
GARY GIBSON SR C0006 49 WILLOW STREET CRESSONA PA 17929
DORIS E RUNKLE C0007 49 ASH STREET CRESSONA PA 17929
SCHUYLKILL PRODUCTS INC C0008 121 RIVER STREET CRESSONA PA 17929
DEBORAH A POTHERING C0009 84 NORTH SILLYMAN STREET CRESSONA PA 17929
MRS HAROLD STARR C0012 80 CHERRY STREET CRESSONA PA 1929
EVELYN M MATTHEWS C0010 29 SOUTH THIRD STREET CRESSONA PA 17929
JEANNE AND LESTER LYNCH 'C0013 8RIVER STREET CRESSONA PA 17929
JUNE WAGNER ^ C0011 c? 15 GRAEFF STREETS CRESSONA PA 17929
O
ELIZABETH E KRAMMES C0014 43 FRONT STREET CRESSONA PA 17929
m
m
JEAN MINTZ C0015 PO BOX 26 CRESSONA PA 17929
IRWIN A POPOWSKY ESQUIRE CO016 OFFICE OF CONSUMER ADVOCATE 555 WALNUT STREET 5TH FLOOR FORUM PLACE HARRISBURG PA 17101-1923
ERIN.L GANNON ESQUIRE CHRISTINE MALONE HOOVER ESQUIRE OFFICE OF CONSUMER ADVOCATE 555 WALNUT STREET 5TH FLOOR FORUM PLACE HARRISBURG PA 17101-1923
CAROL F PENNINGTON ESQUIRE OFFICE OF SMALL BUSINESS ADVOCATE SUITE 1102 C0MMERCE;BU1LDING 300 NORTH SECOND STREET HARRISBURG PA 17101
JOYCE B MILLER C0017 154 POTTSVILLESTREET REAR CRESSONA PA 17929
ALBERT HOLZER C0018 81 FRONT STREET CRESSONA PA 17929
-A UMENl FOLDER
THOMAS J MORAN III C0019 109 RAILROAD STREET CRESSONA PA 17929
MARTIN J AND KATHLEEN M MALIS C0020 13 CHARLES STREET CRESSONA PA 17929
ft OSEPH J GASPER C0021 104 SPRUCE STREET CRESSONA PA 17929
LISA A GASPER C0022 104 SPRUCE STREET CRESSONA PA 17929
JOANN GERBER C0023 4 POTTSVILLE STREET CRESSONA PA 17929
CHARLES W HELPER ET AL C0024 68 SPRUCE STREET CRESSONA PA 17929
CHARLES DANIEL SHIELDS ESQUIRE PA PUBLIC UTILITY COMMISSION OFFICE OF TRIAL STAFF PO BOX 3265 HARRISBURG PA 17105-13265
DANIEL P DELANEY ESQUIRE C0025 KIRKPATRICK & LOCKHART LLP PAYNE SHOEMAKER BUILDING 240 NORTH THIRD STREET HARRISBURG PA 17101-1507
CHARLES A GOULDING JR C0026 55 SOUTH THIRD STREET CRESSONA PA 17929
LEO AND NANCY SCHWARTZ C0027 150 CHESTNUT STREET CRESSONA PA17929
GLENN HEISLER C0028 189 SCHUYLKILL STREET CRESSONA PA 17929