PENNSYLVANIA PUBLIC UTILITY COMMISSION Implementation of Act 129 of 2008; Organization of Bureaus and Offices [41 Pa.B. 4732]
[Saturday, August 27, 2011]Public Meeting held
August 11, 2011Commissioners Present: Robert F. Powelson, Chairperson; John F. Coleman, Jr., Vice Chairperson; Wayne E. Gardner; James H. Cawley; Pamela A. Witmer
Implementation of Act 129 of 2008; Organization of Bureaus and Offices; Doc. No. M-2008-2071852 Final Procedural Order By the Commission
The Commission has undertaken an internal review of Commission operations to determine the best ways to use the enhanced operational flexibility given to us by the General Assembly through its enactment of Act 129 of 2008 (Act 129 or Act). As described below, the Commission has now completed its internal review and herein adopts changes to its organizational structure so that we may better perform our duties under the Public Utility Code.
Background
On October 15, 2008, Governor Rendell signed Act 129 into law. The legislation required electric distribution companies to adopt and implement cost-effective energy efficiency and conservation plans to reduce energy demand and consumption within the service territory of electric distribution companies in the Commonwealth. However, the Act also makes changes to the statutory structure of the Commission by eliminating the statutory requirement that the Commission maintain certain Commission bureaus.
In particular, the Act, effective November 14, 2008, repealed section 306 of the Public Utility Code, 66 Pa.C.S. § 306, which created the Commission's Office of Trial Staff (OTS). It also repealed sections 308(c) and 308(e), which recognized the Bureau of Conservation, Economics and Energy Planning (CEEP) and the Office of Special Assistants (OSA) in the statute. 66 Pa.C.S. §§ 308(c) and (e). However, Act 129 also added language which gives the Commission greater flexibility to establish bureaus and assign staff through new section 308.2. 66 Pa.C.S. § 308.2.
The General Assembly, in amending the Public Utility Code, provided the Commission with greater operational flexibility to respond to the rapidly changing utility environment of the twenty-first century. This enhanced operational flexibility gives the Commission the ability to realign Commission bureaus and offices to meet the needs of a changing utility regulatory environment, to properly align resources and duties, to provide for greater accountability, and to recruit the best staff to meet its current responsibilities and challenges.
Shortly after passage of Act 129, we began an internal review of Commission operations to determine the best ways to use the enhanced operational flexibility given to us by the General Assembly. By order adopted November 6, 2008, the Commission provided that until such time as the Commission completes its internal review and takes formal action to alter the composition of its bureaus and offices, and to avoid any gap in necessary staff functions, the status quo will be maintained as to the duties, responsibilities and functions of these bureaus and offices.
Additionally, not long after Act 129 was enacted, the Commission convened an internal group of senior staff to identify the key functions performed by each bureau. Following that process, the Commission issued a Request for Proposals and hired Public Financial Management, Inc. (PFM) to conduct a comprehensive review of the organizational structure and offer recommendations for changes.
PFM began its review in September 2009 and provided a draft report with recommendations to the Commission in March 2010. During its review, PFM interviewed Commissioners and senior staff, as well as many external stakeholders; surveyed all PUC employees; and consulted with comparable agencies in other jurisdictions. Key recommendations offered by PFM included a reduction in the number of direct reports to the Director of Operations, the incorporation of a strategy and planning function at a senior staff level, and the creation of a chief operations office to lead the delivery of services within the PUC. PFM also recommended that all prosecutory functions be performed by a single bureau.
Following a review of PFM's recommendations, the Commission developed its own draft plan for reorganization, which was shared with senior staff in January 2011. The Commission then formed a Reorganization Implementation Planning Team, which prepared an Implementation Plan that was released to all employees in June 2011.
Discussion
The Commission has now completed its internal review and, through this Order, is placing the Implementation Plan containing PFM's key recommendations noted above into operation. Specifically, the Commission is creating an Executive Director position, which is responsible for the overall operations and the strategy and planning functions of the Commission. The Commission is also creating the positions of Director of Regulatory Operations and the Director of Administration. The Director of Regulatory Operations is responsible for oversight of the bureaus performing regulatory functions (other than the Office of Administrative Law Judge) and the Director of Administration leads the delivery of services within the PUC. By creating the Bureau of Investigation and Enforcement, the Commission is moving all prosecutory functions into one bureau. These positions, their duties and the new bureaus are described in more detail below. Additionally, a new organization chart is attached to this order.
Bureau of Technical Utility Services
The Bureau of Technical Utility Services (TUS) bureau will consist of all staff currently assigned to the Bureau of Fixed Utility Services and the Bureau of Conservation, Economics and Energy Planning. As such, it will perform all of the functions presently fulfilled by those bureaus. It will also consist of technical staff currently assigned to two divisions in the Bureau of Transportation and Safety: (1) the existing Motor Carrier Compliance Office, which processes motor carrier applications and tariff filings, and (2) the existing Railroad Safety Division, which handles rail crossing applications and performs equipment and track inspection duties. Some support staff assigned to these divisions will also be transferred to the Bureau of TUS.
The Bureau of TUS will serve as the principal technical advisory bureau to the Commission. It will offer substantive and policy recommendations to the PUC on fixed and transportation utility regulatory matters including, but not limited to, rates, tariff filings, applications, security certificates, affiliated interest agreements, financial reviews, economic analyses, Act 129 implementation plans, alternative energy programs, transportation and fixed utility regulatory compliance, rail crossings and rail safety inspections, and service quality, safety and reliability. The Bureau of TUS shall also undertake such other related duties as may be assigned by the Commission consistent with 66 Pa.C.S. § 308.2(a).
Bureau of Investigation and Enforcement
The Bureau of Investigation and Enforcement (BI&E) will consist of all staff currently assigned to the Office of Trial Staff. As such, it will continue to perform all of the prosecutory functions presently fulfilled by that bureau. The bureau's duties will also include other prosecutory functions, including service and ratemaking issues of fixed and transportation utilities. Legal staff will be transferred from the Law Bureau to BI&E. Also, the Gas Safety Division staff and the Motor Carrier Enforcement Division staff (excluding the Compliance Office) will be transferred to BI&E. Motor Carrier Enforcement Division staff to be transferred to BI&E includes the Chief of the Division, the Motor Carrier Safety Coordinator, the Enforcement Managers and the Enforcement Officers, and some support staff.
BI&E will serve as the prosecutory bureau for purposes of representing the public interest in ratemaking and service matters before the Office of Administrative Law Judge and enforcing compliance with the state and federal motor carrier safety and gas safety laws and regulations. The bureau will also handle, before the Office of Administrative Law Judge, rail safety enforcement proceedings that are referred by the Bureau of TUS and defense of Commission assessment cases.1
As a result of the changes described above, the Bureau of Investigation and Enforcement shall have standing and authority, through its attorneys, to participate in all Commission proceedings and to initiate enforcement actions and prosecutions in the public interest. The Office of Trial Staff shall no longer exist as a separate bureau. Also, the Bureau of Investigation and Enforcement will not be required to submit a public meeting report to the Commission regarding proposed rate increases, as was required by the former 66 Pa.C.S. § 306(b)(2). Lastly, the prohibition against commingling of functions set forth in 66 Pa.C.S. § 308.2(b) shall apply to all BI&E employees who are engaged in prosecutory functions.
In regard to pending Commission proceedings, any obligation of the parties to those proceedings to serve motions, discovery, briefs or other documents on the former OTS shall continue and shall be served on BI&E; conversely, any duties of the former OTS to file briefs, testimony or other documents shall now be the responsibility of BI&E. Also, any references and corresponding duties in the Commission's regulations to the former OTS, especially as to service of petitions, applications, rate case filings and other documents, shall be to applicable to BI&E.
Delegation of Authority
From time to time, we have delegated authority to various bureaus within the Commission. These functions are usually ministerial in nature and do not require a vote of the Commission to implement. These delegated functions are set forth within the PUC Procedures Manual. Until such time as the PUC Procedures Manual has been revised to reflect the changes being made by this order, we want to ensure that there is no lapse in the performance of these functions. Therefore, we shall also designate that any authority delegated to a bureau which no longer exists as a result of this order shall be transferred to the bureau in which the former bureau has been subsumed.
Director of Regulatory Operations
In order to facilitate the operation of the Commission as reconfigured by the creation of these new bureaus and, to better separate administrative and regulatory duties, we shall designate that the Director of Operations shall now become the Director of Regulatory Operations. This director's duties are summarized immediately below. The position of Director of Administrative Services shall henceforth be known as the Director of Administration. This director's duties are summarized in the next section. The persons in both of these positions will perform duties similar to those currently required with some changes. They will now report to a new Executive Director whose duties are also set forth below.
The Director of Regulatory Operations shall be responsible for the day-to-day oversight of all bureaus and offices of the Commission charged with the interpretation, application, investigation and enforcement of policies, laws, regulations, programs and standards involving the Commission regulation of public utilities and Commission licensed entities with the exception of the Office of Administrative Law Judge (OALJ). The Director of Regulatory Operations shall be responsible for planning, organizing, coordinating, directing and overseeing the Commission's regulatory operational staff to ensure effective accomplishment of assigned workloads and achievement of organizational objectives. The director's duties involve the establishment of regulatory goals and objectives, implementation of Commission policy and statutory requirements, and evaluation of existing regulatory programs for efficiency and effectiveness. As noted above, the Director of Regulatory Operations reports directly to and is accountable to the Executive Director on the regulatory functions of the PUC.
With regard to BI&E, the Director of Regulatory Operations will be responsible for administrative matters only, including coordination of staffing needs involving other bureaus for prosecutory actions, and may not direct or intervene in any prosecution initiated or conducted by the Bureau of Investigations and Enforcement. This director is also responsible for Commission response to requests for ex parte relief under 52 Pa. Code § 3.2.
Director of Administration
Henceforth, the Director of Administrative Services shall be known as the Director of Administration. This director is responsible for planning, organizing, directing and overseeing the Commission's administrative and fiscal operational staff to ensure effective accomplishment of assigned workloads and achievement of organizational objectives. The director's duties involve the establishment of administrative organizational goals and objectives, the development and implementation of effective administrative policies and procedures to effect achievement of established goals and objectives, and evaluation of existing administrative programs for efficiency and effectiveness. The Director of Administration reports directly to and is accountable to the Executive Director on the administrative and fiscal functions of the organization.
Executive Director
Overseeing the policy development and implementation and daily operations of the Commission shall be the Executive Director. The Executive Director will be responsible for fulfilling the statutory duties set forth in 66 Pa.C.S. § 305(a) (Director of operations, secretary, employees and consultants). As such, the Director of Regulatory Operations and the Director of Administration shall report to the Executive Director, as described above. The Executive Director is responsible for planning, organizing, directing and controlling the overall operations of the Commission through his or her subordinate directors and managers.
The Executive Director shall also develop long range strategic plans and policies to address the current and future needs of the Commission. The Executive Director will establish a strategy and planning committee that includes the Director of Administration, the Director of Regulatory Operations, and other senior management staff to assist with the development of the long range strategic plan and appropriate policies. In conjunction with these duties this director will implement programs, policies, and protocols and monitor operations to ensure compliance with the Commission-approved strategic plan and policies. The offices of Communications and Legislative Affairs shall report directly to the Executive Director. The Office of Administrative Law Judge shall report to the Executive Director for administrative purposes only.
Other Bureaus and Offices
All bureaus and offices established by statute shall continue to exist and operate within the Commission. Those not designated by statute, but which are not being folded into one of the new bureaus shall also continue to operate as before. Those bureaus and offices which shall continue are listed as follows:
Office of Administrative Law Judge (OALJ)—The OALJ shall continue to be responsible for the conduct of hearings, preparation of initial decisions and the recommended decision in proceedings involving complaints, applications, rate matters and other cases involving disputes as to facts and law as per 66 Pa.C.S. § 304 (Administrative Law Judges).
Office of the Secretary—The Commission Secretary shall continue to be responsible for maintaining the official record of all Public Meetings, Commission votes and proceedings before the Commission per 66 Pa.C.S. § 305(b).
Law Bureau—The Law Bureau shall continue to provide the Commission with legal review and advice regarding petitions, applications and other matters before the Commission, and representation before state and federal regulatory agencies and state and federal courts, consistent with 66 Pa.C.S. § 308(b) (Bureaus and offices) and 66 Pa.C.S. § 308.2(a) and to initiate enforcement actions, on behalf of the Commission before courts of law, to restrain violations of the Public Utility Code, or of Commission regulations or orders, consistent with 66 Pa.C.S. 308(b) (Bureaus and offices), 66 Pa.C.S. 503 (Enforcement proceedings by Chief Counsel), and 66 Pa.C.S. 308.2(a).
Consumer Services—The Bureau of Consumer Services shall continue to investigate consumer complaints regarding utility service, acting as a liaison between consumers and utilities as well as assisting the Commission in its formulation of policy regarding consumers and the billing and other matters relative to their service provided by regulated utilities consistent with 66 Pa.C.S. § 308(d).
Audits—The Commission's Bureau of Audits shall continue its responsibility of performing audits of utility books, accounts and management pursuant to the Public Utility Code as well as providing the Commission with advice on accounting matters, consistent with 66 Pa.C.S. § 308.2(a).
Office of Special Assistants—The Office of Special Assistants will continue to be responsible for review of exceptions, interlocutory orders, petitions for rehearing, reconsideration and clarification, and drafting proposed orders for the Commission's consideration, and such other duties as may be required, consistent with 66 Pa.C.S. § 308.2(a).
Prior Commission Orders
All directives in prior Commission orders or Secretarial Letters that name any previously existing bureau, office or position, shall now apply to the new bureaus, offices and positions that have that same function.
In order to adapt to the changed nature of the regulated service provided by utilities and licensees under the Public Utility Code and the various new responsibilities and duties which have been placed upon the Commission by the Legislature in recent years, we find that the previously-described changes to the organization of the Commission are in the public interest and will better position the Commission to perform its duties under the Public Utility Code. Accordingly, by this order, pursuant to our general powers and those contained in 66 Pa.C.S. § 308.2(a), we shall make the aforementioned changes in the PUC's internal structure; Therefore,
It Is Ordered That:
1. The Commission establishes a new bureau to be called the Bureau of Technical Utility Services consisting of all staff currently assigned to the Bureau of Fixed Utility Services, the Bureau of Conservation, Economics and Energy Planning and other staff as described herein.
2. The Commission establishes a new bureau to be called the Bureau of Investigation and Enforcement consisting of all staff currently assigned to the Office of Trial Staff and other staff as described herein.
3. Attorneys and technical staff within BI&E have standing and authority to participate in all Commission proceedings and to initiation enforcement actions and prosecutions in the public interest.
4. Authority previously delegated by the Commission to any bureau or office which no longer exists as a result of this order shall be transferred to the bureau or office in which the former bureau has been subsumed.
5. The Bureau of Fixed Utility Services, the Bureau of Conservation, Economics and Energy Planning, the Office of Trial Staff, and the Bureau of Transportation and Safety are hereby abolished.
6. The Director of Operations shall now be known as the Director of Regulatory Operations with the duties described herein.
7. The Director of Administrative Services shall be known as the Director of Administration with the duties described herein.
8. The position of Executive Director is hereby established with the duties described herein, including the statutory duties set forth in 66 Pa.C.S. § 305(a).
9. All directives in prior Commission orders or Secretarial Letters that name any previously existing bureau, office or position, shall now apply to the new bureaus, offices and positions that have that same function.
10. All utilities, common carriers and other persons having business with the Commission shall continue to serve complaints, petitions, tariffs, reports and other documents and information with the bureaus, offices and positions as required by our regulations and orders.
11. This order shall be effective on August 11, 2011.
12. A copy of this Final Procedural Order be published in the Pennsylvania Bulletin.
ROSEMARY CHIAVETTA,
Secretary
[Pa.B. Doc. No. 11-1487. Filed for public inspection August 26, 2011, 9:00 a.m.] _______
1 The prosecutions, informal investigations and defense of Commission assessment cases currently assigned to Law Bureau will be reassigned to BI&E on a case by case basis and as an appropriate number of Law Bureau attorneys are transferred to BI&E to perform its functions. In the meantime, Law Bureau will continue to handle these matters before the Commission.
