BEFORE THE

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Joint Application of Columbia Water Company :

and Marietta Gravity Water Company :

FOR APPROVAL OF: 1) the transfer of the : A-2012-2282219

rights, service obligations, water system and assets : A-2012-2282221

used and useful in the operation of the water :

system of Marietta Gravity to Columbia Water; :

2) the abandonment of service by Marietta Gravity; :

and 3) all other approvals or certificates appropriate, :

including the approval of Security Certificates :

ORDER CANCELLING PREHEARING CONFERENCE

SCHEDULED FOR APRIL 3

I. BACKGROUND

On January 5, 2012, Columbia Water Company (Columbia Water) and Marietta Gravity Water Company (Marietta Gravity) (collectively, Joint Applicants) filed a Joint Application with the Pennsylvania Public Utility Commission (Commission) seeking the approval of the transfer of rights, service obligations, water system and assets used and useful in the operation of the water system of Marietta Gravity to Columbia Water; the abandonment of service by Marietta Gravity; and, all other approvals or certificates appropriate, customary, or necessary under the Public Utility Code (Code) to carry out the transactions described in the Joint Application.

Notice of the Joint Application was published in the Pennsylvania Bulletin on January 28, 2012, with a deadline for filing protests of February 7, 2012, established by the Commission.

On February 7, 2012, the City of Lancaster (City) filed a Protest to the Joint Application, alleging, inter alia, that it stood ready, willing, and able to purchase the assets of Marietta Gravity, which it believed to be in its growth area, and could provide better service to the customers of Marietta Gravity and at substantially lower rates, than Columbia Water.

On February 23, 2012, the Office of Consumer Advocate (OCA) filed a Notice of Intervention and Public Statement.

On February 24, 2012, Joint Applicants filed Preliminary Objections to the City’s Protest, based primarily upon the City’s purported lack of standing to protest the Joint Application.

On February 27, 2012, this matter was assigned to me for hearings and a decision, and an Initial Prehearing Conference was scheduled for Friday, March 30, 2012, at 10:00 a.m., in Hearing Room #3, Commonwealth Keystone Building. As is my practice, I issued a Prehearing Conference Order setting forth the procedural and other requirements for the prehearing and also inquiring about notice to Marietta Gravity’s customers of the proposed abandonment and transfer, pursuant to 52 Pa. Code §3.501.

On March 2, 2012, the Prehearing Conference was changed from March 30, 2012, to Tuesday, April 3, 2012, at the unopposed request of Joint Applicants’ counsel, and this change was confirmed in Prehearing Conference Order #2, dated March 5, 2012.

On March 8, 2012, the City filed an Answer to Preliminary Objections, which disputed the Joint Applicants’ contentions about the City’s lack of standing.

On March 9, 2012, Joint Applicants filed a Motion to Stay Discovery. An Answer opposing the Motion to Stay was filed by the City on March 14, 2012.

On March 14, 2012, the Commission’s Bureau of Investigation and Enforcement (I&E) filed a Notice of Appearance.

On March 15, 2012, Joint Applicants filed a Motion for Judgment on the Pleadings or, in the alternative, Summary Judgment.

On March 16, 2012, I issued an Order Granting Motion of Columbia Water Company and Marietta Gravity Water Company to Stay Discovery.

On March 20, 2012, I received a telephone call from counsel for the City inquiring about whether I was considering cancelling the Prehearing Conference scheduled for April 3, 2012, due primarily to the scheduling difficulties associated with uncertainty about future rulings. Counsel noted that the time for responding to the Motion for Judgment on the Pleadings/Summary Judgment would not expire until April 4, 2012, and therefore, there would not be a ruling on at least the Motion for Judgment on the Pleadings/Summary Judgment by the date of the scheduled Prehearing Conference.

I recognized that, if either the Preliminary Objections or Motion for Judgment on the Pleadings/Summary Judgment was granted, the City would be dismissed as a party, subject to that ruling being reversed by the Commission. In the event the dismissal was upheld, the Joint Application could be handled internally under modified procedures, and the scheduling of a Prehearing Conference for the purpose of setting a litigation schedule would be unnecessary. If, on the other hand, the City was not dismissed as a party in that both the Preliminary Objections and Motion for Judgment on the Pleadings/Summary Judgment were denied, then the prehearing conference could be rescheduled.

I determined it appropriate to elicit opinions from the parties on the issue of cancellation of the Prehearing Conference on April 3 before taking further action. Therefore, on March 20, 2012, I emailed all parties and provided until close of business on March 22, 2012, for the parties to provide input on the cancellation issue.

On March 21, 2012, I issued an Order Denying Preliminary Objections of Columbia Water Company and Marietta Gravity Water Company to the Protest filed by the City of Lancaster. In so doing, I noted that the Motion for Judgment on the Pleadings/Summary Judgment was pending, but not yet ripe for a ruling, and that the issue of standing was appropriately addressed in that Motion.

On March 21, 2012, after I had issued the Order Denying Preliminary Objections, all parties responded to me via email indicating that they did not oppose cancellation of the April 3 Prehearing Conference. Counsel for Marietta Gravity requested that a scheduling order also be issued, in the event the Motion for Judgment on the Pleadings/Summary Judgment is denied, so that the case could be promptly restarted.

II. DISCUSSION

In consideration of the difficulties with scheduling pending a ruling on the outstanding Motion, and given that no party objects to the cancellation, I have determined that the April 3 prehearing conference should be cancelled, pending my ruling on the Motion for Judgment on the Pleadings/Summary Judgment. The prehearing conference will be promptly rescheduled if that Motion is denied.

III. ORDERING PARAGRAPHS

THEREFORE,

IT IS ORDERED:

1. That the Prehearing Conference now scheduled for Tuesday, April 3, 2012, in this matter is hereby cancelled, and any future rescheduling will await a ruling on the Motion for Judgment on the Pleadings or, in the Alternative, Summary Judgment, filed by Columbia Water Company and Marietta Gravity Water Company.

2. That in the event a future prehearing conference is necessary, the parties will be provided notice of the day, date, time and location of the rescheduled prehearing conference.

Dated: March 22, 2012 ______

Kandace F. Melillo

Administrative Law Judge

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A-2012-2282219 & A-2012-2282221 - JOINT APPLICATION OF THE COLUMBIA WATER COMPANY AND MARIETTA GRAVITY WATER COMPANY FOR APPROVAL OF: 1) THE TRANSFER OF THE RIGHTS, SERVICE OBLIGATIONS, WATER SYSTEM AND ASSETS USED AND USEFUL IN THE OPERATION OF THE WATER SYSTEM OF MARIETTA GRAVITY TO COLUMBIA WATER; 2) THE ABANDONMENT OF SERVICE BY MARIETTA GRAVITY; AND 3) ALL OTHER APPROVALS OR CERTIFICATES APPROPRIATE, INCLUDING THE APPROVAL OF SECURITY CERTIFICATES.

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CHRISTINE MALONI HOOVER

ERIN L GANNON
OFFICE OF CONSUMER ADVOCATE
5TH FLOOR FORUM PLACE
555 WALNUT STREET
HARRISBURG PA 17101-1923
717.783.5048

RICHARD A KANASKIE ESQUIRE
PA PUC BUREAU OF INVESTIGATION AND ENFORCEMENT
PO BOX 3265
HARRISBURG PA 17105-3265
717.783.6184

STEVEN C GRAY ESQUIRE
OFFICE OF SMALL BUSINESS ADVOCATE
SUITE 1102 COMMERCE BUILDING
300 NORTH SECOND STREET
HARRISBURG PA 17101
717.783.2525

THOMAS J SNISCAK ESQUIRE
WILLIAM E LEHMAN ESQUIRE

HAWKE MCKEON & SNISCAK LLP
100 NORTH TENTH STREET
HARRISBURG PA 17101
717.236.1300
(REPRESENTING COLUMBIA WATER COMPANY)

DANIEL P DELANEY ESQUIRE

GEORGE A BIBIKOS ESQUIRE

K&L GATES LLP

17 NORTH SECOND STREET

18TH FLOOR

HARRISBURG PA 17101-1507

717.231.4500

(REPRESENTING MARIETTA GRAVITY WATER COMPANY)

DANIEL CLEARFIELD ESQUIRE

EDWARD G LANZA ESQUIRE

CARL SHULTZ ESQUIRE
ECKERT SEAMANS CHERIN & MELLOTT LLC
213 MARKET STREET

8TH FLOOR
HARRISBURG PA 17101
717.237.6000

(REPRESENTING CITY OF LANCASTER)
MARIETTA BOROUGH OFFICE
111 EAST MARKET STREET
MARIETTA PA 17547

MARIETTA BOROUGH PLANNING COMMISSION
111 EAST MARKET STREET
MARIETTA PA 17547

EAST DONEGAL TOWNSHIP OFFICE
190 ROCK POINT ROAD
MARIETTA PA 17547

EAST DONEGAL PLANNING COMMISSION
190 ROCK POINT ROAD
MARIETTA PA 17547

LANCASTER COUNTY COMMISSIONERS OFFICE
150 NORTH QUEEN STREET

SUITE 715
LANCASTER PA 17603
LANCASTER COUNTY PLANNING COMMISSION
150 NORTH QUEEN STREET
SUITE 320
LANCASTER PA 17608-3480
HELLAM TOWNSHIP OFFICE
44 WALNUT SPRINGS ROAD
HELLAM PA 17406

HELLAM TOWNSHIP PLANNING COMMISSION
44 WALNUT SPRINGS ROAD
HELLAM PA 17406

YORK COUNTY COMMISSIONERS OFFICE
28 E MARKET STREET
YORK PA 17401

YORK COUNTY PLANNING COMMISSION
28 EAST MARKET STREET

ROOM 216
YORK PA 17401

EAST DONEGAL TOWNSHIP SEWER AUTHORITY
190 ROCK POINT ROAD
MARIETTA PA 17547

EAST DONEGAL TOWNSHIP MUNICIPAL AUTHORITY
C/O ROBERT HIESTAND

117 SOUTH RIVER STREET
PO BOX 92
MAYTOWN PA 17550

MARIETTA-DONEGAL JOINT SEWER AUTHORITY
50 FURNACE ROAD
MARIETTA PA 17547

DEPARTMENT OF ENVIRONMENTAL PROTECTION
SOUTH CENTRAL REGION OFFICE
909 ELMERTON AVENUE
HARRISBURG PA 17110-8200

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