Public Service Commission of West Virginia

BEFORE THE WEST V I R G I N I A P U B L I C SERVICE COMMISSION
CASE N O .
99-0188-G-42T
B L U E F I E L D GAS COMPANY
Rule 42-T a p p l i c a t i o n t o i n c r e a s e g a s r a t e s
and c h a r g e s .
TRANSCRIPT O F PROCEEDINGS h a c a n d t e s t i m o n y
adduced a t t h e a d m i n i s t r a t i v e h e a r i n g i n t h e above
r e f e r e n c e d m a t t e r , held on J u n e 1 7 , 1 9 9 9 a t 7 : 2 0 P . M .
in
C o u n c i l Chambers, 2 0 0 Rogers S t r e e t , B l u e f i e l d , Mercer
C o u n t y , West V i r g i n i a b e f o r e THOMAS TRENT, A d m i n i s t r a t i v e q ”
*L
L a w J u d g e , p u r s u a n t t o n o t i c e duly g i v e n t o a l l i n t e r e s t
parties.
REBECCA L. BAKER
Certified Court Reporter
P. 0. Box 7822
Cross Lanes, West Virginia 25356
Phone: (304) 759-2471
Attending Reporter:
- - --
-a--
.mr&
I
-
Philip S. Dye, C.C.R.
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APPEARANCES:
ON BEHALF OF THE APPLICANT:
MICHAEL A. ALBERT, ESQUIRE
Jackson & Kelly
1600 Laidley Tower
P.O. Box 553
Charleston, West Virginia 25322
ON BEHALF OF COMMISSION STAFF:
CASSIUS H. TOON, ESQUIRE
Staff Attorney
West Virginia Public Service Commission
P.O. Box 812
Charleston, West Virginia 25323
I N D E X
Witnesses
Direct
Cross
Redir.
Recr.
ALJ
NONE
Public Comment
Violet Hill
4, 10
Ray Ball
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Carol Wade
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Patricia Murray
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Exhibits
Marked/Received
NONE
Reporter’s Certificate ...........................
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JUDGE TRENT: Ladies and gentlemen, my
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name is Tom Trent.
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duly appointed by the Public Service Commission and
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authorized by the Commission to conduct hearings, take
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evidence and issue recommended decisions in matters
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pending before the Commission.
I’m an Administrative Law Judge
We’re here today in Case Number 99-0188,
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a rate filing on the part of Bluefield Gas Company.
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They’re asking for a 2.41 rate increase over current
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rates for their 4,200 customers in Mercer County, West
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Virginia.
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appears for Bluefield Gas?
1’11 now take appearance of Counsel.
MR. ALBERT: Your Honor, Michael Albert
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of Jackson
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Charleston, West Virginia, 25322.
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Who
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Kelly, 1600 Laidley Tower, P . O . Box 553,
JUDGE TRENT: Thank you, Mr. Albert.
appears for Staff?
MR. TOON: Cass Toon, Staff Attorney,
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appearing on behalf of Commission Staff, and I have
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with me Darrell Preece of the Energy Section of the
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Utilities Division.
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Who
JUDGE TRENT: Does anyone appear for the
Consumer Advocate Division?
(No response)
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JUDGE TRENT: Hearing no response, are
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there any Intervenors that wish to make their presence
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known?
( N o response)
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JUDGE TRENT: Hearing no response, ladies
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and gentlemen, the purpose of this hearing this
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afternoon and this evening is to take statements of
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public protest.
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will occur tomorrow morning at 1O:OO in this same
The evidentiary portion of the hearing
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location.
We’re here pursuant to a Procedural Order
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issued March 17, 1999 and due publication.
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like to make a statement of public protest?
Who would
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MS. HILL: Well, we wondered - -
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JUDGE TRENT: Ma’am, raise your hand, be
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recognized and give me your full name.
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MS. HILL: Violet Hill.
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JUDGE TRENT: Violet Hill?
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MS. HILL: V-i-o-l-e-t.
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JUDGE TRENT: All right, you may
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continue.
MS. HILL: We question the part where one
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application is getting the opportunity to raise the
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rates three different times in three different years.
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Would not one rate increase be enough?
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JUDGE TRENT:
Is t h a t t h e --
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MS. H I L L : Yes.
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J U D G E TRENT:
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MS. H I L L : Yes.
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J U D G E TRENT: A l l r i g h t .
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-- i s t h a t your s t a t e m e n t ?
e l s e who w i s h e s t o make a s t a t e m e n t ?
I s t h e r e anyone
Yes, s i r .
MR. BALL: My name is Ray B a l l .
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Talking
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about t h e r a t e i n c r e a s e , t h e y have gas l e a k s a l l o v e r
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town, i t d o n ’ t seem l i k e t h e y ’ r e d o i n g t o o much t o
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that.
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town t h e y w o u l d n ’ t be n e e d i n g a l l t h e s e r a t e h i k e s t h a t
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t h e y ’ r e p u t t i n g i n f o r , and f o r t h e l a s t t h r e e y e a r s i n
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a r o w , when i t g e t s down a r o u n d t e n a b o v e z e r o a n d on
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down, t h e r e ’ s n o t e v e n enough g a s i n o u r l i n e t o keep
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my g a s f u r n a c e .
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k e r o s e n e h e a t e r s t o keep u s f r o m f r e e z i n g t o d e a t h ,
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t h e y h a d s o much g a s l e a k a g e i n my a r e a .
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guys down t h e r e when i t ’ s r e p o r t e d - - i t ’ s b e e n
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r e p o r t e d , Lord, I d o n ’ t know how many t i m e s .
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If t h e y w a s n ’ t l e a k i n g a l l t h e g a s o u t a l l o v e r
I h a d t o l i g h t up two o r t h r e e
They s e n d
The guys come down a n d c h e c k i t a n d t h e y
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s a y , i t n e e d s a new l i n e up t h r o u g h here, s a i d , i t ’ s
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r o t t e d so bad t h a t j u s t p a t c h i n g it i s n o t going t o do
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i t , a n d i t ’ s l i k e t h a t a l l over town.
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J U D G E TRENT: Yes s i r , where do you l i v e ?
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MR. BALL:
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I’m on t h e c o r n e r of H i g h l a n d
Avenue a n d Lynn S t r e e t .
J U D G E TRENT: Have you p e r s o n a l l y
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r e p o r t e d t h e s e l e a k s t o t h e Company?
MR. BALL: I go o v e r t h e r e a n d p a y my
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m o n t h l y b i l l t h r o u g h t h e window a n d r e p o r t i t a n d
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t h e y ’ d s a y h e r e t h a t t h e y c o u l d n ‘ t do nothing, it has
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t o come o u t o f Roanoke ’ c a u s e t h a t ’ s where t h e Gas
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Company t h a t owns i t i s , a n d t h e y g o t t o g i v e t h e o r d e r
They c a n ’ t do i t on t h e i r own.
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t o do t h i s a n d t h a t .
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I ’ v e r e p o r t e d them f o r t h e l a s t t h r e e y e a r s a n d
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n o t h i n g ’ s b e e n done down t h e r e .
J U D G E TRENT: Have you r e p o r t e d t h e l o w
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gas pressure as well?
MR. BALL: N o , t h e y come down, c h e c k e d
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They t o l d m e one t i m e t h a t i t
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i t , and t h e y s a i d t h a t .
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d i d n ’ t h a v e enough t o go a r o u n d , a n d a t t i m e s t h e y ’ d
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h a d t o p u l l g a s away from t h e h o s p i t a l o v e r h e r e a n d
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t h e h o s p i t a l h a d t o go on t h e i r s e c o n d a r y back-up
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s y s t e m t o t r y t o s p r e a d t h e g a s a r o u n d t o go a r o u n d t h e
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b e s t it could.
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J U D G E TRENT: A n y t h i n g e l s e , s i r ?
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MR. BALL: And some o f t h e p e o p l e t h a t
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work a t t h e h o s p i t a l a r o u n d l i k e t h a t , h a d t o b e a t t h e
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h o s p i t a l , t h e y c a n ’ t be a t home t o keep l i g h t i n g t h e i r
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p i l o t l i g h t b a c k a n d t h i s and t h a t a n d t h e o t h e r o v e r
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and over and over, and mine’s e l e c t r o n i c , and I f i g u r e
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l a t e r on i t ’ s g o i n g t o c o s t m e a l o t of money.
That e l e c t r o n i c keeps l i g h t i n g and
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t h e r e ’ s no g a s , t h e r e , you know, when i t g e t s , l i k e I
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s a y , b e l o w t e n d e g r e e s , t h e r e ’ s no g a s t h e r e f o r i t t o
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b u r n , i t j u s t c l i c k s on t o l i g h t a n d t h e r e ’ s no g a s
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t h e r e and it j u s t c l i c k , c l i c k , c l i c k a l l n i g h t l o n g
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s o m e t i m e s , I h a v e t o j u s t c u t i t o f f t o g e t some s l e e p ,
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g o t t o g e t up a t f i v e o ’ c l o c k i n t h e m o r n i n g t o go t o
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work, a n d I j u s t h a v e t o b u r n , l i k e I s a y , t h r e e
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k e r o s e n e h e a t e r s t r y i n g t o keep u s f r o m f r e e z i n g t o
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d e a t h when i t g e t s r e a l c o l d .
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t h r e e y e a r s , a n d I ’ v e g o t no h e l p y e t .
J U D G E TRENT: A l l r i g h t ,
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I’ve been doing t h a t f o r
else?
sir.
Anyone
Yes, ma’am.
MS. WADE: My name i s C a r o l Wade.
J U D G E T R E N T : C a r o l Wade?
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MS. WADE: Uh-huh.
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J U D G E TRENT: You may c o n t i n u e .
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MS. WADE: N o w t h i s p a s t w i n t e r , I h a d
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p r o b l e m s w i t h my g a s f u r n a c e a n d I c a l l e d t h e m o u t
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there and it went o u t t h e c o l d e s t n i g h t of t h e y e a r ,
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b u t anyway, my p i l o t l i g h t went o u t a n d t h e y t o l d m e
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t h a t I n e e d e d p a r t s f o r my h e a t e r , f o r my w a t e r h e a t e r
a n d f o r my -- m a i n l y t o keep t h e p i l o t l i g h t g o i n g a n d
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a l l t h a t i n my f u r n a c e , t o o , my p i l o t would g o o u t .
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And t h e y t o l d m e t h a t I n e e d e d p a r t s f o r my w a t e r
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h e a t e r , which I went o u t a n d p u r c h a s e d .
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any good.
I h a d t o c a l l t h e m b a c k f r o m t h e Gas
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I t d i d n o t do
Company, t h e y came o v e r a n d t h e y would l i g h t my p i l o t
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l i g h t a g a i n , and t h e y f i n a l l y t o l d m e t h a t it wasn’t
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a n y t h i n g a c t u a l l y wrong w i t h my f u r n a c e , t h a t i t was
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b e c a u s e o f t h e w a t e r i n t h e l i n e s b e c a u s e a l l of t h e
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gas l i n e s had h o l e s and l e a k i n g i n t h e r e .
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now, t h e y d i d come i n a n d t h e y d i d r e p a i r t h o s e l i n e s
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d u r i n g t h e w i n t e r l a s t y e a r , a n d on my s t r e e t , I l i v e
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a t 1123 Greenbrier Street.
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J U D G E TRENT:
A t my h o u s e ,
D i d that straighten the
p r o b l e m up?
MS. WADE: A s f a r a s - - now I h a v e n ’ t h a d
any problem s i n c e t h e n , b u t I d i d have t h a t problem and
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I g o t t h e p a r t s a n d g o t my a r e a t h a t t h e y t o l d m e t o
f i x and t h e n , l i k e I s a i d , t h e y f i n a l l y t o l d m e t h a t it
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w a s n ’ t t h a t , n e c e s s a r i l y , my p r o b l e m , t h a t i t was
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b e c a u s e w a t e r was g e t t i n g i n t h e l i n e f r o m t h e l e a k s
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and all.
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JUDGE TRENT: But then they came and
replaced your line?
.
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MS. WADE: Yes.
JUDGE TRENT: All right.
Anyone else?
Yes ma’am, in the back.
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MS. MURRAY: My name’s Patricia Murray,
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and my complaint is, last winter when it was really
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cold and my furnace cut off, I have a new furnace and
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it cut off, it’s electronic, but I called -- this was
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like on a Saturday night, and I didn’t know they didn‘t
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have anybody, that I couldn’t find anybody where they
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had emergency service or something like this, and I
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don’t know anything about gas, and the lady told me
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that answered a number - - I had to call out of town to
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Roanoke or someplace, and they gave me a number I could
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call here in Bluefield.
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She told me that if I got the guy to
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come out and check my furnace, I would have to pay him
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$75.00.
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says,
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his own.
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something, and I told her, I don’t have $75.00 at 11:OO
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on Saturday night and it’s cold and I have a disabled
I said, well, can you put it on my b i l l ?
no, you have to pay him cash.
She
He does this on
This is like, I guess, his side job or
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So finally, after I couldn’t get him
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child up in here.
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to come out without me having $75.00, I had to call a
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guy that I know does that kind of work, and he came
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Sunday morning and did it for me, a neighbor came and
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did it for me, and I think if we’re going to be raising
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and all this, we need to have some kind of emergency
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service or somebody that we don’t need to pay somebody
%
$75.00 to come out
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that I had turned the furnace off, so I would have to
--
they thought it was my fault,
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pay them $75.00 to have this one man they have that
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will do it for the whole area, he works for the Gas
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Company, but if you have a problem and they think it’s
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your fault, you have to pay him $75.00 out of your
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pocket, and I don’t think that‘s fair.
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JUDGE TRENT: All right.
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MS. HILL: Yes, sir.
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Anyone else?
I don’t understand
-- well, do I need to identify myself again?
1%
JUDGE TRENT: Yes ma’am, you do, b u t - -
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and basically you get one bite at the apple, so try to
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finish up this time.
MS. HILL: Violet Hill.
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I don’t
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understand the change in billing from cubic feet to
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Btu’s.
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What is the difference there?
J U D G E TRENT: Okay, I can’t answer your
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q u e s t i o n s , b u t t h e r e a r e p e o p l e here from t h e Company
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who w i l l now a d d r e s s some of t h e s e i s s u e s i f t h e y want
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to.
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e v i d e n t i a r y p o r t i o n of t h e h e a r i n g .
5
e l s e who h a s a n y o t h e r s t a t e m e n t s t h e y w i s h t o make?
If n o t , t h e y ’ l l a d d r e s s t h e m i n t h e m o r n i n g a t t h e
Is t h e r e anyone
(No r e s p o n s e )
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JUDGE TRENT: All r i g h t .
7
M r . A l b e r t , do
8
you want t o r e s p o n d t o t h e q u e s t i o n s t h a t h a v e b e e n
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raised?
MR. ALBERT: Your Honor, w i t h r e s p e c t t o
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t h e change i n b i l l i n g from c u b i c f e e t t o w h a t r s c a l l e d
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t h e r m b i l l i n g , w e w i l l n o t be d o i n g t h a t , s o t h e r e w i l l
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n o t be a c h a n g e i n t h e b i l l i n g .
JUDGE TRENT: T h a t ’ s b e e n d r o p p e d , M s .
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Hill,
is that a l l right?
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MS. HILL: F i n e .
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JUDGE TRENT: T h a t a n s w e r s t h a t o n e ,
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doesn’t i t ?
MS. HILL: Yes.
MR. ALBERT: And w i t h r e s p e c t t o t h e
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o t h e r s , w e ‘ l l go b a c k a n d look a t t h e r e c o r d s a n d make
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a r e s p o n s e tomorrow.
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JUDGE TRENT: I s o r t of p i c k e d up t h r o u g h
t h e g r a p e v i n e t h a t t h i s c a s e h a s b e e n s e t t l e d between
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1
S t a f f , t h e CAD a n d t h e Company, i s t h a t c o r r e c t ?
2
MR. ALBERT: Well, CAD i s n o t i n t h e
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c a s e , Your Honor, b u t S t a f f a n d t h e Company h a v e - -
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we’re s t i l l p u t t i n g t h e f i n a l w o r d - s m i t h i n g
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s t i p u l a t i o n , b u t there’s c e r t a i n l y an agreement i n
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principle.
J U D G E TRENT: And i t i n v o l v e s ,
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on t h e
i n part, a
moratorium?
MR. ALBERT: T h a t ’ s c o r r e c t , Your Honor.
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J U D G E TRENT: So t h a t a n s w e r s t h e
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q u e s t i o n a b o u t t h r e e i n c r e a s e s i n t h r e e y e a r s , ma’am.
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H o p e f u l l y t h i s one w i l l be good f o r a w h i l e .
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anything else?
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p u t on t h e r e c o r d ?
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Does S t a f f h a v e a n y t h i n g t h e y want t o
MR. TOON: S t a f f h a s n o t h i n g t o p u t on a t
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Okay,
this time,
Your Honor.
J U D G E TRENT: Does t h e Company h a v e
a n y t h i n g e l s e t h e y want t o a d d ?
MR. ALBERT: Your Honor, i n f a i r n e s s ,
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w i t h r e s p e c t t o t h e - - a n d I ’ m n o t s u r e Mrs. H i l l ,
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t h i s i s what s h e ‘ s t a l k i n g a b o u t o r n o t , b u t t h e
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framework t h a t we’ve a g r e e d t o i s a n i n i t i a l r a t e a n d
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two s t e p - r a t e s i n s u b s e q u e n t y e a r s t h a t a r e v e r y
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moderate s t e p - r a t e s a n d a r e p e g g e d d i r e c t l y t o c e r t a i n
if
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1
levels of construction, jurisdictional construction
that would be done for a line replacement program.
JUDGE TRENT: But those are set ahead of
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time?
MR. ALBERT: That’s correct.
They’re set
in this proceeding.
JUDGE TRENT: So they’ll be identified
a
when this proceeding - - this application goes into
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effect, then everyone will know what they’re going to
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be paying for at least three years?
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MR. ALBERT: Exactly.
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JUDGE TRENT: All right. Anything else
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to go on the record here tonight?
(No response)
JUDGE TRENT : We’ re adjourned.
Anyone
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who wants to is welcome to attend the hearing in the
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morning where all of this will be discussed again.
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REPORTER'S CERTIFICATE
STATE OF WEST V I R G I N I A ,
COUNTY OF MERCER,
to wit:
I , P h i l i p S . Dye, C e r t i f i e d C o u r t R e p o r t e r and
S u b c o n t r a c t o r f o r Rebecca L . B a k e r ,
Official Court
R e p o r t e r f o r t h e West V i r g i n i a P u b l i c S e r v i c e
Commission, do h e r e b y c e r t i f y t h a t t h e f o r e g o i n g i s , t o
t h e b e s t o f my s k i l l a n d a b i l i t y ,
a t r u e and a c c u r a t e
t r a n s c r i p t of a l l t h e p r o c e e d i n g s a s s e t f o r t h i n t h e
caption thereof.
P h i l i b S . Dye,jC.C.R.
Notary Public