BEFORE THE

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Petition of PECO Energy Company for Approval :

of its Default Service Program : P-2012-2283641

PECO Energy Company Universal Service and :

Energy Conservation Plan for 2013-2015 : M-2012-2290911

PREHEARING ORDER #2

On January 3, 2013, a Secretarial letter was issued to address procedural issues in the above captioned PECO Energy Company, Inc. (“PECO”) proceedings.

On February 28, 2012, PECO Energy Company (PECO or the Company) filed the above-captioned Universal Service and Energy Conservation Plan (USECP or Plan) in accordance with the Commission’s regulations at 52 Pa. Code §§ 54.71-54.78, relating to electric universal service and energy conservation requirements and at 52 Pa. Code §§ 62.1-62.8, relating to natural gas universal service and energy conservation requirements. Subsequently, on October 25, 2012, PECO filed an Amended USECP.

Additionally, the Commission in the Petition of PECO Energy Company for Approval of its Default Service Program II (DSP II) proceeding ordered that PECO and the Office of Competitive Market Oversight (OCMO) develop a plan to allow CAP customers to purchase their generation supply from Electric Generation Suppliers (EGSs) by January 1, 2014. DSP II Order, Docket No. P-2012-2283641, at Ordering ¶ 18 (Order entered October 12, 2012).

On October 12, 2012, PECO filed Supplement No. 55 to Tariff Electric- Pa. P.U.C. No.4 Effective January 1, 2013 Updating CAP Discount Rates and Maximum Discounts Provided Under Terms of the Settlement, Docket No. R-2010-2161575 (Section D/Statement I) and Tariff Electric- Universal Service Fund Charge- Section 1307 Final Annual Rate Adjustment for 2012. The Commission approved the filings on December 20, 2012 and November 8, 2012, respectively.

On October 31, 2012, PECO also filed its APPRISE six year evaluation in compliance with 52 Pa. Code § 54.76.

On November 8, 2012, the Commission issued a Tentative Order (“TO”) seeking comments on specific aspects of PECO Energy Company Universal Service and Energy Conservation Plan for 2013-2015 (“Universal Services Plan” or “USEC Plan”) at Docket M-2012-2290911.

On November 15, 2012, H. Gil Peach and Associate, LLC filed Comments in response to the Tentative Order. On November 28, 2012, the OCA; PECO; Tenant Union Representative Network (TURN), and Action Alliance of Senior Citizens of Greater Philadelphia (Action Alliance) ) (collectively referred to as TURN, et. al); The Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA); Pennsylvania Coalition Against Domestic Violence (PCADV); and Face to Face filed Comments.

Reply Comments were filed on December 10, 2012 by TURN, et. al, PECO and

OCA.

Upon review of the comments and reply comments, the Commission noted that some interested parties share the Commission’s concerns and some have requested the opportunity to participate in an evidentiary proceeding before an Administrative Law Judge (“ALJ”) to more fully review and analyze relevant data. Additionally, other comments suggest that these issues might be capable of being addressed through a collaborative process.

To ensure that critical decisions about the structure of PECO’s CAP Plan are made before PECO has to file the Shopping Plan (which, due to the extension of time, is now on or around May 1, 2013), the Commission plans to adopt a Final Order on the CAP Plan by April 4, 2013. Therefore, the CAP Plan was assigned to the Office of Administrative Law Judge to conduct any necessary evidentiary hearings and briefing, and certify the record (if any) to the Commission by March 1, 2013.

The Commission stated that concurrently with the hearing process described above, between now and March 1, 2013, the Commission encourages PECO to engage the other parties in collaborative discussions about the CAP Plan. To the extent any consensus resolutions are achieved, PECO is directed to file a revised CAP Plan or settlement agreement with the Commission by March 1, 2013.

This matter was assigned to Administrative Law Judge Cynthia Williams Fordham.

A Prehearing Order was sent to parties on January 9, 2013.

The following parties filed prehearing memoranda: PECO; OCA; OSBA; TURN, et al; CAUSE PA; PCADV; RESA; PAIEUG; Dominion Retail and Interstate Gas; and First Energy Solutions Corp.

Petitions to Intervene were filed by CAUSE-PA and PCADV. Since no objections have been received, the petitions are granted.

Andrew Tubbs, Esquire, sent correspondence advising the presiding officer that PPL EnergyPlus LLC will not be participating in this phase of the proceeding.

A telephonic prehearing conference was held on January 15, 2013. Counsel for the following parties participated: PECO; OCA; OSBA; TURN, et al; CAUSE PA; PCADV; RESA; PAIEUG; Dominion Retail and Interstate Gas; and First Energy Solutions Corp.

During the prehearing conference, the following modifications were made to the discovery regulations:

A. Answers to written interrogatories be served in-hand within seven (7) calendar days of service of the interrogatories. After February 4, the answers should be served within three (3) calendar days.

B. Objections to interrogatories be communicated orally within three (3) calendar days of service; unresolved objections be served to the ALJ in writing within five (5) days of service of interrogatories. After February 4, the objections should be communicated within one (1) calendar day of service.

C. Motions to dismiss objections and/or direct the answering of interrogatories be filed within three (3) calendar days of service of written objections.

D. Answers to motions to dismiss objections and/or direct the answering of interrogatories be filed within three (3) calendar days of service of such motions.

E. Responses to requests for document production, entry for inspection, or other purposes be served in-hand within seven (7) calendar days.

F. Requests for admission be deemed admitted unless answered within seven (7) calendar days or objected to within five (5) calendar days of service.

A question was raised regarding identifying additional issues after the prehearing conference. My ruling is that additional issues can be raised in the direct testimony which will be filed on February 4, 2013. If a party is not able to fully address the issue that is raised, the party should indicate that in its reply testimony and/or brief. No additional issues can be raised in the reply testimony or the brief.

The following procedural schedule was established:

Prehearing Conference January 15, 2013

All Parties’ Direct Testimony Monday, February 4, 2013 e-mail by 4:00 p.m. (follow with hard copy first class mail)

All Parties’ Rebuttal Testimony Tuesday, February 12, 2013 e-mail by 4:00 p.m. (follow with hard copy first class mail)

Hearings for cross-examination Thursday February 14 – Hearing day for “c” issues on the “relationship to CAP shopping” issues

Friday February 15 and Tuesday February 19 – Hearing days for “a” issues (affordability, cost, and structure) and “b” issues (other program design), as well as “c” issues (relationship to CAP shopping) if not done on February 14.

Briefs Due February 27 – Briefs to ALJ

ALJ certifies record to Commission March 1 –

Due to scheduling conflicts, the cost allocation witnesses will be available on February 19, 2013.

Any documents filed in this proceeding should be served on me at the Philadelphia office and the active participants. 52 Pa. Code § 154(a) and (d). My address is:

Administrative Law Judge Cynthia Williams Fordham

Pennsylvania Public Utility Commission

801 Market Street, Suite 4063

Philadelphia, PA 19107

Telephone: (215) 560-2105

Fax: (215) 560-3133

Since documents can be submitted to the presiding officer and the participants by e-mail, e-mail addresses will be included on the counsel service list. Please check the list for omissions and errors and contact my office to make corrections. My e-mail address is .

ORDER

THEREFORE,

IT IS ORDERED:

1.  That the petition to intervene filed by The Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA); Pennsylvania Coalition Against Domestic Violence (PCADV) are granted.

2. That the Commission’s regulations concerning discovery are modified as stated in the body of this Order.

3. That the procedural schedule is:

Prehearing Conference January 15, 2013

All Parties’ Direct Testimony Monday, February 4, 2013 e-mail by 4:00 p.m. (follow with hard copy first class mail)

All Parties’ Rebuttal Testimony Tuesday, February 12, 2013 e-mail by 4:00 p.m. (follow with hard copy first class mail)

Hearings for cross-examination Thursday February 14, Friday February 15 and Tuesday February 19 in Philadelphia

Briefs Due February 27 – Briefs to ALJ

4. That the parties shall comply with the procedural rules and regulations discussed herein.

Date: January 18, 2013 ______

Cynthia Williams Fordham

Administrative Law Judge

6

P-2012-2283641 – PETITION OF PECO ENERGY COMPANY FOR APPROVAL OF ITS DEFAULT SERVICE PROGRAM & M-2012-2290911. Created 1/7/2013 (Revised)

SERVICE LIST

Elizabeth Rose Triscari, Esquire Ward L. Smith, Esquire

Office of Small Business Advocate Assistant General Counsel – Exelon

300 North Second Street, Suite 1102 2301 Market Street, S23-1

Harrisburg, PA 17101 Philadelphia, PA 19101

717-783-2525 215-841-6863

Representing PECO

Christy M. Appleby, Esquire Daniel Clearfield, Esquire

Candis A. Tunilo, Esquire Deanne M. O’Dell, Esquire

Amy Hirakis, Esquire Edward G. Lanza, Esquire

Office of Consumer Advocate Eckerts, Seamans, Cherin & Mellott, LLC

5th Floor, Forum Place 213 Market Street, 8th Floor

555 Walnut Street Suite 500 Harrisburg, PA 17101-1248

Harrisburg, PA 17101-1923 717-232-7162

717-783-5048

Representing Retail Energy Supply

Association

Kenneth M. Kulak, Esquire Thu B. Tran, Esquire

Morgan, Lewis & Bockius LLP Robert W. Ballenger, Esquire

1701 Market Street Josie Pickens, Esquire

Philadelphia, PA 19103-2921 Community Legal Services, Inc.

215-963-5382 1424 Chestnut Street

Philadelphia, PA 19102

Representing PECO 215-981-3777

Representing TURN, et al

6

Charis Mincavage, Esquire Todd S. Stewart, Esquire

Adeolu A. Bakare, Esquire Hawke, McKeon & Sniscak LLP

McNees, Wallace & Nurick 100 North Tenth Street

100 Pine Street P O Box 1778

P.O. Box 1166 Harrisburg, PA 17105-1778

Harrisburg, PA 17108 717-236-1300

717-237-5437

Representing Dominion Retail, Inc. &

Interstate Gas Supply Inc.

Representing PAIEUG

Amy M. Klodowski, Esquire Harry S. Geller, Esquire

FirstEnergy Solutions Corp. Patrick M. Cicero, Esquire

800 Cabin Hill Drive Pennsylvania Utility Law Project

Greensburg, PA 15601 118 Locust Street

724-838-6765 Harrisburg, PA 17101

717-232-2719

Representing First Energy Solutions Corp

Representing CAUSE PA

Brian J. Knipe, Esquire Amy E. Hamilton, Esquire

Buchanan, Ingersoll and Rooney PC Noel Trask, Esquire

409 North Second Street, Suite 500 Exelon Business Services Co.

Harrisburg, PA 17101 300 Exelon Way

717-237-4820 Kennett Square, PA 19348

610-765-6649

Representing First Energy Solutions Corp

Representing ExGen

Melanie J. Elatieh, Esquire Steven Larin

UGI Corporation Acting Executive Director

460 North Gulph Road Nationalities Service Center

King of Prussia, PA 19406 1216 Arch Street, 4th Floor

610-992-3750 Philadelphia, PA 19107

Representing UGI Energy Link

H. Gil Peach, Ph.D. Will Gonzalez, Executive Director

H. Gil Peach & Associates, LLC CEIBA

16232 NW Oak Hills Drive 149 W. Susquehanna Avenue

Beaverton, Oregon 97006 Philadelphia, PA 19122

503-645-0716 215-634-7245

6

Veronica Ludt, Legal Center Director Maripat Pileggi, Esquire

109 E. Price Street Community Legal Services, Inc.

Philadelphia, PA 19144 1424 Chestnut Street

215-438-1390 (Legal Center) Philadelphia, PA 19102

Representing Face to Face 215-981-3788

Representing ACHIEVA, et al.

Laurie Baughman, Esquire Natasha Kelemen, Executive Director

Elizabeth Marx, Esquire Pennsylvania Immigration &

3605 Vartan Way, Suite 101 Citizenship Coalition

Harrisburg, PA 17110 2100 Arch Street, 7th Floor

717-545-6400 Philadelphia, PA 19103

215-832-0527

Representing Pennsylvania Coalition

Against Domestic Violence (PCADV)

6