Transcript Nuclear Power: A Changing Regulatory Role

Mary Beth O’Hara Osborne
Director of Regulatory Affairs
Sept. 17, 2014
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$68 + million budget for the 2014-15 FY
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Funded by assessments on utilities, not PA tax
dollars; however some federal funding
reimbursements do exist

Regulates nearly 8,000 entities

Created by General Assembly in 1937
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Duties given by statute – Public Utility Code, Title 66,
Pa. Consolidated Statutes
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We have about 500 employees at the PUC,
who are based in Harrisburg, but have
regional offices in Philadelphia, Pittsburgh
and Scranton
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Original Purpose: to protect consumers from
monopolies
 Imposing unreasonably high rates, or
 Providing inadequate service
 Safety was and is of primary importance
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Changes in the laws over the last nearly 20
years have placed PUC in the role of
overseeing competition in marketplace
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The Office of Competitive Market Oversight
(OCMO) has recently become a Bureau
within the Executive Director’s Office
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OCMO is headed by Kirk House and
Dan Mumford
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The Director of Regulatory Affairs Oversees 262
positions in the following Bureaus:
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Technical Utility Services
Bureau of Audits
Bureau of Consumer Services
Office of Administrative Law Judge
Office of Special Assistants
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
Serves as the principal technical advisory bureau
regarding fixed utility and transportation
regulatory matters

Advises on technical issues for electric, natural
gas, water/wastewater and telecommunications

Offers policy recommendations on rates, tariffs,
regulatory matters, applications processes and
emergency operations
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 Performs financial, management, operational and
specialized audits of regulated utility companies
 Reviews adjustment clause rate filings and 1307(e)
reconciliation statements
 Provides recommendations to refund over-
collected costs and to improve accounting and
operational procedures to save utilities, consumer
money
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 Responds to and investigates informal complaints
from residential and small commercial customers
made against regulated utility companies and, in
some instances, electric and gas supply companies
 Serves as intermediary between utilities and
consumers to:
▪
▪
▪
▪
Resolve complaints
Develop payment arrangements
Provide utility-related information
Monitor utility compliance with PUC regulations
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Fulfills a judicial role by hearing cases,
mediating cases through alternative dispute
resolution process and issuing decisions
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Provides fair and prompt resolution of
contested proceedings, including consumer
complaints, rate filings, investigations, billing
disputes and applications
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Serves as an advisory support bureau
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Provides legal and technical advice primarily
regarding challenges to ALJ decisions and policy
issues
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Drafts opinions and orders for consideration at
Public Meetings disposing of Exceptions filed in
response to OALJ decisions and also, pursuant to
motions adopted at Public Meeting
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Reviews petitions for relief
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 Strategic Planning
▪ Succession planning
 Management Structure
▪ Streamlining/Efficiencies
▪ Reducing caseload in a timely manner without
sacrificing quality work
 Aligning Goals and Objectives
▪ Facilitating collaboration and communication between
and among Bureaus and Offices to handle work well
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 Managing the increased workload of Bureau of
Consumer Services, Secretary’s Bureau, Office of
Administrative Law Judge and potentially Office of
Special Assistants, with budget challenges
▪ Causes of Workload Increase
▪ Polar Vortex
▪ Variable Rates
▪ Budget Challenges
▪ Operating under zero growth budget and a
projected shortfall due to increased labor
costs, federal funding reimbursements which
are flat-lined at decades-old levels
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 Winter 2014
▪ Higher prices in wholesale market = higher prices
for customers with variable-rate contracts (uplift
charges) with competitive suppliers and fixedrate customers whose contracts expired
▪ This led to significantly higher call and intake
volume (30% - 40%).
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 Case and Call Volume
▪ In 2014 (through 9/16/2014) BCS has taken in
65,000 cases to investigate as compared
with 70,410 for the entire year of 2013.
▪ Of these 65,000 cases, close to 10,000
have been variable rate, supplier, or
general competition and contract related
as compared with approximately 2,100
cases for the entire year of 2013.
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 It is hoped that cases can be resolved to the
customer’s satisfaction at the BCS and
company level
 To facilitate case closures, BCS is working
with companies to develop an Informal
Complaint Resolution Program (more on
this later)
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▪ Decisions to informal complaints are mailed to
the Complainant by BCS along with an “Intent
to Appeal” form.
▪ If the Complainant timely sends this to the
Secretary, the Secretary’s Bureau then sends
out a formal complaint form, and the
complainant has 20 days to file a formal
complaint appealing the BCS decision. This is a
requirement of 52 Pa. Code Section 56.172.
▪ In FY 2013-14, the Secretary’s Bureau received
700 formal EGS-related complaints
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For Fiscal Year 2013-14, OALJ had approximately
3,000 active cases/assignments
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While ALJs make decisions based solely upon the
record, the written product is subject to quality
review
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All Initial Decisions and Recommended Decisions
are reviewed for legal and technical sufficiency
before issuance
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Decisions are then served by the Secretary’s
Bureau on all parties of record
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Internal and statutory deadlines control the
timing of many decisions by an ALJ
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A party may challenge the ALJ’s decision by filing
Exceptions, which are then handled by the OSA
which prepares an Order for consideration by the
Commission at Public Meeting
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Consumer
calls BCS
BCS
initiates
complaint;
notifies
utility
Utility
response
(30 days)
BCS
investigator
rules on
complaint
Utility/
consumer
can appeal
BCS decision
through
formal
complaint
process
BCS accepts
as inquiry (no
criteria for
complaint,
however,
contact with
BCS is
recorded)
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Secretary’s
Bureau receives
filing
Secretary’s
Bureau
assigns it to
the OALJ
OSA drafts Order
for Commission
to vote on at
Public Meeting
Commission
adopts OSA’s
draft order
Bureau of
Investigation &
Enforcement
intervenes in
case
Secretary assigns
it to Office of
Special Assistants
Hearings are
held and OALJ
issues decision
Exceptions are
filed with
Secretary
Secretary’s
Bureau issues
order
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
Targeted major gas/electric utilities with
highest case volume, but all companies other
than suppliers may participate
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Upon a case being opened by BCS intake staff,
the utility is notified electronically within
15-30 minutes via existing BCS Data Exchange
Process
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 The company contacts the complainant in
an effort to resolve the issue:
▪ No restrictions. Company chooses which
cases to contact
▪ When BCS has the phone and software
capability to support the function, the
companies may choose to transition to a
warm transfer via phone rather than calling
the complainant after the case opening
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 BCS receives confirmation from the
complainant that the matter is resolved to
his/her satisfaction and BCS closes the case
 Benefits to the company:
▪ No utility report required, just an email or
voice mail confirmation to close the case
▪ The case will not be evaluated by an
investigator for infractions, but may be
randomly selected for compliance review for
UCARE Report
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 Methods of contact:
▪ Company contacts our voice message system with the
complainant on the line and they record their
resolution/satisfaction. The voice file is attached to
the case and the case is closed.
▪ An email confirmation may be sent to the complainant
by the company, with a copy to the BCS service
account. BCS generates its own email to the consumer
and closes the case. If the BCS email rejects, a letter is
sent to the complainant via U.S. postal service. (Fax
and snail mail also accepted)
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Benefits to BCS:
 Faster case resolution
 All processes are clerical and administrative in nature
 Much of this is designated for automated routing to
clerical support staff
 Process routes activity away from inbound telephone
traffic to lighten the load
 Allows BCS Policy Staff to maintain its random case
selection and evaluation to meet case analysis and
UCARE reporting requirements
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To promote:
 Positive changes to customer processes
 Promote customer satisfaction
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Goal:
 Satisfied resolution of complaint
 Customer retention
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“Look at a day when you are supremely satisfied
at the end. It's not a day when you lounge
around doing nothing; it's a day you've had
everything to do and you've done it.”
― Margaret Thatcher
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FISH! Philosophy
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