1 BEFORE THE PUBLIC UTILITIES COMMISSION OF OHIO 2 - - - 3 In the Matter of the Regulation: Case Nos. of the Purchased Gas Adjustment: 16-206-GA-GCR 4 Clauses Contained within the : 16-209-GA-GCR Rate Schedules of: : 16-212-GA-GCR 5 : Brainard Gas Corporation, : 6 Northeast Ohio Natural Gas : Corporation, Orwell Natural : 7 Gas Company and Related Matters: : 8 In the Matter of the : Uncollectible Expense Riders : 9 of: : 10 Northeast Ohio Natural Gas : Case Nos. Corporation, Orwell Natural : 16-309-GA-UEX 11 Gas Company and Related : 16-312-GA-UEX Matters. : 12 In the Matter of The : 13 Percentage of Income Payment : Case No. Plan Rider of Northeast Ohio : 16-409-GA-PIP 14 Natural Gas Corporation and : Related Matters. : 15 - - - 16 PROCEEDINGS 17 Before Nick Walstra and Patricia A. Schabo, 18 Attorney Examiners, held at the Public Utilities 19 Commission of Ohio, 180 East Broad Street, 20 Hearing Room No. 11-C, Columbus, Ohio, on 21 Monday, June 19, 2017, at 10:00 A.M. 22 - - - 23 Armstrong & Okey, Inc. 222 East Town Street, 2nd Floor 24 Columbus, Ohio 43215 (614) 224-9481 - (800) 223-9481 25 - - - ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 2 1 APPEARANCES: 2 Bricker & Eclker 3 By Mr. Devin D. Parram 100 South Third Street 4 Columbus, Ohio 43215 5 On behalf of the Companies. 6 Mr. Ajay Kumar 7 Assistant Consumers' Counsel 10 West Broad Street, Suite 1800 8 Columbus, Ohio 43215 9 On behalf of the Residential Utility Customers of the Companies. 10 11 Mr. Werner L. Margard Assistant Attorney General 12 30 East Broad Street, 16th Floor Columbus, Ohio 43215 13 On behalf of the Staff of the 14 Public Utilities Commission of Ohio. 15 16 17 18 19 - - - 20 21 22 23 24 25 ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 3 1 INDEX TO EXHIBITS 2 - - - 3 COMPANY EXHIBITS MARKED ADMT 4 1 Stipulation and 7 9 Recommendation 5 2 Direct Testimony of 7 9 6 Martin K. Whelan 7 3 Notice of Publication 8 9 8 COMMISSION ORDERED EXHIBITS 9 1 Staff Report for Brainard Gas 6 9 10 Corporation, Northeast Ohio Natural Gas Corporation and 11 Orwell Natural Gas Company. 12 2 Staff Report for Orwell 6 9 Natural Gas Company 13 3 Staff Report for Northeast 6 9 14 Ohio Natural Gas Corporation 15 4 Staff Report for Northeast 6 9 16 Ohio Natural Gas Corporation 17 5 Management Performance Audit 6 9 18 5A Confidential Version of 6 9 Management Performance Audit 19 20 OCC EXHIBITS 21 1 Letter dated June 12, 2017 10 10 from OCC 22 - - - 23 24 25 ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 4 1 Monday Morning, 2 June 19, 2017. 3 - - - 4 ATTORNEY EXAMINER WALSTRA: The 5 Public Utilities Commission of Ohio has called 6 for hearing at this time and place Case Nos. 7 16-206-GA-GCR, 16-209-GA-GCR, 16-212-GA-GCR, 8 16-309-GA-UEX, 16-312-GA-UEX, 16-409-GA-PIP, 9 being in the Matter of the Regulation of the 10 Purchased Gas Adjustment Clauses Contained 11 within the Rate Schedules of Brainard Gas 12 Corporation, Northeast Ohio Natural Gas 13 Corporation, Orwell Natural Gas company, and 14 Related Matters. 15 I am Nick Walstra and with me is 16 Trish Schabo, we are the Attorney Examiners 17 assigned by the Commission to hear this case. 18 I will begin by taking appearances 19 of the parties. The Company. 20 MR. PARRAM: Good morning your 21 Honors. On behalf of Brainard Gas Corporation, 22 Northeast Ohio Natural Gas Corporation, Orwell 23 Natural Gas Company, my name is Devin Parram 24 with the law firm of Bricker & Eckler, 100 South 25 Third Street, Columbus, Ohio 43215. ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 5 1 ATTORNEY EXAMINER: Thank you. 2 OCC. 3 MR. KUMAR: Thank you, your Honor. 4 On behalf of the residential customers of 5 Orwell, Northeast and Brainard, the Office of 6 the Ohio Consumers' Counsel, by Bruce Weston, 7 and me, Ajay Kumar, 10 West Broad Street, Suite 8 1800, Columbus, Ohio. 9 ATTORNEY EXAMINER WALSTRA: Thank 10 you. 11 MR. MARGARD: On behalf of the Staff 12 of the Public Utilities Commission of Ohio, Mike 13 DeWine, Ohio Attorney General; William Wright, 14 Section Chief of the Public Utilities Section, 15 by Assistant Attorney General Werner L. Margard, 16 30 East Broad Street, 16th Floor, Columbus, 17 Ohio. 18 ATTORNEY EXAMINER: Thank you. I 19 understand there has been a stipulation filed in 20 this case. 21 MR. MARGARD: There has, your Honor, 22 but as a preliminary matter I would like to mark 23 and offer for admission exhibits. Specifically 24 I would like to mark as Commission Ordered 25 Exhibit No. 1 the financial audit of the three ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 6 1 companies that was filed on February 24, 2017. 2 As Commission Ordered Exhibit No. 2 3 the audit of the uncollectible expense mechanism 4 for Orwell Natural Gas Company, filed in the 5 docket on February 24th, 2017. 6 As Commission Ordered Exhibit No. 3, 7 the audit of the uncollectible expense mechanism 8 for Northeast Ohio Natural Gas Company, filed on 9 February 24, of 2017. 10 And as Commission Order Exhibit No. 11 4 the audit of the Percentage Income Payment 12 Plan for Northeast Ohio Natural Gas filed on 13 February 24th, 2017. 14 Your Honor, although I don't have 15 copies with me today because they are 16 voluminous, for purposes of economy and 17 efficiency, I would like to have marked as 18 Commission ordered Exhibit No. 5 the Management 19 Performance Audit of the companies performed by 20 Raymond that was filed in this case on the 27th 21 of February, 2017. 22 In addition, your Honor, as 23 Commission Ordered Exhibit I will call it 5-A 24 the confidential version of that document that 25 was filed on March 1st of 2017. ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 7 1 ATTORNEY EXAMINER WALSTRA: So 2 marked. 3 (EXHIBITS MARKED FOR IDENTIFICATION) 4 ATTORNEY EXAMINER: Mr. Parram. 5 MR. PARRAM: Yes. Thank you, your 6 Honor. As you indicated the companies and 7 the staff have entered into a stipulation which 8 was filed on May 12th, 2017 in this case. 9 I would like to have that marked as 10 Company Exhibit 1. 11 ATTORNEY EXAMINER WALSTRA: So 12 marked. 13 (EXHIBIT HEREBY MARKED FOR 14 IDENTIFICATION PURPOSES) 15 MR. PARRAM: And we have a witness, 16 Martin K. Whelan, who filed pre-filed direct 17 testimony on June 2nd. I would like to have 18 that marked as Company Exhibit 2. 19 Mr. Whelan's testimony is in support 20 of the stipulation. 21 ATTORNEY EXAMINER: So marked. 22 (EXHIBIT HEREBY MARKED FOR 23 IDENTIFICATION PURPOSES) 24 MR. PARRAM: And also we filed on 25 June 14th, last week, 2017, the notice of ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 8 1 publication that I would like to have marked as 2 Company Exhibit 3. 3 ATTORNEY EXAMINER WALSTRA: So 4 marked. 5 (EXHIBIT HEREBY MARKED FOR 6 IDENTIFICATION PURPOSES) 7 MR. PARRAM: And, Your Honors, it's 8 my understanding, conferred with counsel for 9 Staff and OCC, it's my understanding that they 10 have no questions for Mr. Whelan, and are 11 agreeable to stipulate the admission of Company 12 Exhibit 2, Mr. Whelan's pre-filed direct 13 testimony. But, Mr. Whelan is here available if 14 the Bench has any questions for Mr. Whelan. 15 ATTORNEY EXAMINER WALSTRA: Okay. 16 Is that everybody's understanding? 17 MR. MARGARD: It is. 18 MR. KUMAR: It is. 19 ATTORNEY EXAMINER WALSTRA: Okay. 20 Mr. Margard, would you like to move your 21 exhibits? 22 MR. MARGARD: If you have no need of 23 Mr. Whelan's testimony, your Honor, I will 24 proceed to move for the admission of Commission 25 Ordered Exhibit -- ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 9 1 ATTORNEY EXAMINER WALSTRA: I do not 2 have any questions. 3 MR. MARGARD: Thank you. 1 through 4 5 and 5-A. 5 ATTORNEY EXAMINER WALSTRA: Okay. 6 Any objections? 7 MR. PARRAM: No, your Honor. 8 ATTORNEY EXAMINER WALSTRA: Okay. 9 They will be admitted. 10 (EXHIBITS ADMITTED INTO EVIDENCE) 11 MR. PARRAM: Your Honor, I would 12 also move the admission of Company Exhibits 1, 2 13 and 3, your Honor. 14 ATTORNEY EXAMINER WALSTRA: Okay. 15 Any objections? 16 MR. MARGARD: None. 17 ATTORNEY EXAMINER WALSTRA: Okay. 18 They will be admitted. 19 (EXHIBITS ADMITTED INTO EVIDENCE) 20 MR. KUMAR: Your Honor, I also have 21 an exhibit I would like marked. 22 ATTORNEY EXAMINER WALSTRA: Okay. 23 MR. KUMAR: I do have a letter from 24 June 12th that we filled in the docket. Would 25 you like a copy? ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 10 1 ATTORNEY EXAMINER WALSTRA: No, I 2 should be okay. 3 MR. KUMAR: I would like that marked 4 as OCC Exhibit 1. 5 ATTORNEY EXAMINER WALSTRA: So 6 marked. 7 (EXHIBIT MARKED FOR IDENTIFICATION 8 PURPOSES) 9 MR. KUMAR: And I move for the 10 admission of that letter. 11 ATTORNEY EXAMINER WALSTRA: Any 12 objections? 13 MR. PARRAM: No, your Honor. 14 MR. MARGARD: No, your Honor. 15 ATTORNEY EXAMINER WALSTRA: It will 16 be admitted. 17 (EXHIBIT HEREBY ADMITTED INTO 18 EVIDENCE) 19 ATTORNEY EXAMINER WALSTRA: Anything 20 further to come before the Bench? 21 MR. PARRAM: No, your Honor. 22 ATTORNEY EXAMINER WALSTRA: Okay. 23 The Commission will take it under advisement. 24 And we are adjourned. Thank you. 25 - - - ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481 11 1 (At 10:10 A.M. the hearing was 2 concluded) 3 - - - 4 CERTIFICATE 5 I do hereby certify that the foregoing 6 is a true and correct transcript of the proceedings taken by me in this matter on June 7 19, 2017, and carefully compared with my original stenographic notes. 8 9 __________________________ Michael O. Spencer, 10 Registered Professional Reporter. 11 - - - 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ARMSTRONG & OKEY, INC., Columbus, Ohio (614)224-9481