spelled-out in Appendix A at the conclusion of this Order. We shall review each item in turn. (a) Eligible Property Peoples’ Petition Peoples designates the same property as DSIC-eligible as it included in its LTIIP, including piping, couplings, gas service lines, valves, risers, and meters. Details of Peoples’ DSIC-eligible property are discussed thoroughly in the LTIIP section of this Order. Eligible property for NGDCs is defined in Section 1352, 66 Pa. C.S. § 1351(2). As noted in the LTIIP discussion above, Peoples proposes to include its investment in customer-owned gas service lines in its DSIC. Replacing these service lines is an integral part of Peoples’ strategy for improving the safety and quality of its distribution system. The bare-steel customer-owned service lines have been subject to the same elements that affect the physical integrity of the company-owned mains that are being replaced. Peoples asserts that replacing the customer-owned service lines as part of its SMP will result in lower overall costs for the replacement program, in addition to achieving time efficiencies and minimizing service down times. While the customer owns these service lines, it is necessary for Peoples to undertake replacement of them on its own in order to maintain the speed and efficiency of its replacement strategy. The Commission previously approved a petition by Columbia Gas of Pennsylvania Inc. (Columbia), at Docket No. P00072337 and granted by Commission Order entered May 19, 2008, to allow replacement of all customer-owned service lines at the Company’s cost where doing so is necessitated by Columbia’s main replacement and upgrade program. The cost of replacement of customer-owned service lines has been
proceeding. The language on the bill insert was developed through feedback from the Commission and other interested parties. In addition to the bill insert, Peoples vows to notify customers through their Peoples View newsletter, which is mailed to customers along with their monthly billing statement. Peoples also says it will post the newsletter, bill insert, and other pertinent information regarding the DSIC on its website. The Commission agrees that this is consistent with the notice requirements set forth in the Model Tariff, Act 11, and the Final Implementation Order. Bills Rendered or Service Rendered The Final Implementation Order directed utilities to bill customers for the DSIC on a bills rendered basis versus a service rendered basis, based on current practice and procedure for water companies. (See 66 Pa. C. S. § 1358). Peoples’ proposed tariff did not specify whether billing for the DSIC would be on a bills rendered or a service rendered basis. Therefore, in accordance with the Final Implementation Order, we direct Peoples to modify the language in the proposed tariff to specify that customers would be billed for the DSIC on a bills rendered basis. Section 1355 – Commission Review Section 1355 provides that the Commission shall, after notice and opportunity to be heard, approve, modify or reject a utility’s proposed DSIC and initial tariff. The Bureau of Technical Utility Services has reviewed Peoples’ proposed DSIC and proposed tariff Supplement No. 11 and has determined that the filing contains all necessary items identified in Section 1353.
Tariff Sufficiency Modifications On pages 3, 3a, 4, and 4b, the issued date listed in the bottom corner of the page needs to match the issued date displayed on the title page. On the List of Changes page (page No. 2), the first statement reading, “In addition to the net charges provided for in this Tariff, a charge of 0.71% will apply consistent with the Commission Order dated xx/xx/xx at Docket No. _________ approving the DSIC.” needs to be included as the first statement made on the RIDER K DSIC page (page No. 74). On page No. 74, the Effective Date should read: “The DSIC will become effective for bills rendered on and after 7/1/2013.” On page No. 74, under the Computation of the DSIC section, within the table the column entitled “Date to which DSIC-Eligible Plant Additions Reflected” should reflect the full range of dates (i.e. “March 1 through May 31”). On page No. 75, under the Quarterly Updates section, the Commission’s Bureau of Audits should be added as a party to be served. On page No. 75, under “2. Audit/Reconciliation” of the Customer Safeguards section, the fourth line that reads, “The revenue received during the DSIC…..” should be changed to, “The revenue received under the DSIC…..” On page No. 76, under “4. Customer Notice” of the Customer Safeguards section, the last word in the first line, “no”, should be changed to “on”. On page No. 76, under “6. Earnings Reports” of the Customer Safeguards section, on the second line the word “report” should be changed to “reports”.