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PUC Continues Evaluation Of Gas Pipeline Company As Public Utility
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The Public Utility Commission this week took action on the Laser Northeast Gathering Co. (Laser Northeast) application to receive a certificate of public convenience as a public utility.
The Commission voted 3-2 to approve a motion by Commissioner Wayne E. Gardner to remand the case of Laser Northeast to the Commission’s Office of Administrative Law Judge for the purpose of determining whether the granting of a certificate of public convenience is necessary or proper for the service, accommodation, convenience or safety of the public.
Laser Northeast is seeking authorization to offer natural gas gathering and transporting or conveying service by pipeline to various townships in Susquehanna County. Vice Chairman John F. Coleman, Jr. offered a statement on the case, with Commissioner James H. Cawley offering a dissenting statement.
“I believe that the acceptance of these settlement terms would not be an unlawful expansion of the Commission jurisdiction,” said Commissioner Gardner in his motion. Commissioner Gardner went on to state that, “I believe that the settlement terms should be remanded to the OALJ for further development of the record regarding whether they are in the public interest.”
“I agree with the decision to remand this case to the Office of Administrative Law Judge for the reasons expressed in the motion,” said Vice Chairman John F. Coleman, Jr. “On the threshold issue of whether Laser is a public utility, I agree that the proposed service clearly meets the statutory definition of public utility.”
“Whether to grant or deny a certificate of public convenience, conferring public utility status, is within the sound discretion of the Commission, with the public interest being paramount, not that of the corporate applicant, and “public utility” status only a secondary consideration, said Commissioner James H. Cawley his statement. “The Public Utility Code must be strictly construed when pipelines are involved, because a certificate also confers the power of eminent domain, which upsets the negotiating balance between landowners and pipeline operators over rights-of-way or easements, with grave implications for the individual Pennsylvanians and their communities given the enormity of shale gas extraction underway in the state. The upset of this balance is not in the public interest and is sufficient reason to deny Laser’s application.”
In response to the action, Thomas F. Karam, Chairman and CEO of Laser Northeast said, "We are gratified by and agree with the decision made today by the commission. Laser has operated and will continue to operate in a manner consistent with the duties and responsibilities of a public utility company, the settlement we achieved among diverse stakeholders including landowners and landowner groups is in the public interest as it strikes a balance by voluntarily restricting eminent domain, agreeing to best operating and safety practices that exceed regulatory minimums, and establishes landowner protections and benefits that are comprehensive and aimed at addressing the comments and concerns raised at public hearings. Laser has also worked diligently with landowners to reach mutually acceptable terms and will continue to follow that operating philosophy."
On January 19, 2010, Laser Northeast filed an application for a certificate of public convenience authorizing it to offer natural gas gathering and transporting service by pipeline in certain townships in Susquehanna County.
The company proposed to build a natural-gas gathering and transportation pipeline in Susquehanna County that would extend into Broome County, New York, to a tie-in with an interstate pipeline called the Millennium Pipeline.
The Commission issued an administrative law judge’s recommended decision on December 1, 2010, in which the ALJ disapproved the settlement and denied the application because she found that the service in question was not public utility service and that the applicant did not satisfy its burden of proving entitlement to a certificate of public convenience.
The ALJ also ruled that the pipeline was being designed to serve only a specific group and not the entire public. Exceptions and reply exceptions have been filed.
Two public input hearings were held in Susquehanna County on July 7, 2010. Evidentiary hearings were held on August 23 and 24, 2010. On September 10, 2010, Laser Northeast , the Commission’s Office of Trial Staff, Silver Lake Association, Vera Scroggins and William C. Fischer filed a non-unanimous Joint Petition for Settlement.
Pipeline's Status Returned To PUC
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5/23/2011 |
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