IN REPLY PLEASE REFER TO OUR FILE DOCUMENT FOLDER104 SPRUCE STREET - CRESSONA PA 17929 LISA A GASPER 104 SPRUCE STREET CRESSONA PA 17929 ... ROBERT BARR SILLYMAN STREET CRESSONA PA

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








Respectfully submitted,


By:

Kenneth Zielonis, Esq. STEVENS & LEE Anomeys for Borough of Schuylkill Haven- Water Fund



Prosecutor



OFFICE OF ADVOCATE

SMALL BUSINESS



Bv: Daniel P. Delaney, Esq KIRKPATRICK & LOCKHART


10

Respectfiilly submitted.


By:




Prosecutor




By: (^dsL*^. Carol Jg/Tennington, Es Acting Small Business Advocate




10


Dated: December 26. 2002 BOROUGH OF SCHUYLKILL HAVEN-WATER DEPARTMENT

By:


OFFICE OF TRIAL' STAFF


Prosecutor


By: Christine Maloni Hoover. Esq. Senior Assistant Consumer Advocate Erin Gannon, Esq. Assistant Consumer 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


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


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: lêc 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



1st Revised Page No. 4a Canceling Original Page No. 4a


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



20th Revised Page No. 5 Cancelling 19th Revised Page No. 5


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



1st Revised Page No. 5a Canceling Original Page No. 5a


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


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


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


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


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.


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


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.


North Manheim Township and Borough of Cressona

v.


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.


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 Fullâme

T am willing to approves the



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.



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 Sign Your Full Name

/ 3 CU/ULES ST

Docket Number of Your Complaint: B^noniTîrnn

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

Documents

IN REPLY PLEASE REFER TO OUR FILE DOCUMENT FOLDER104 SPRUCE STREET - CRESSONA PA 17929 LISA A GASPER 104 SPRUCE STREET CRESSONA PA 17929 ... ROBERT BARR SILLYMAN STREET CRESSONA PA