Transparency Bill Would Shine Light on Tens Of Millions in Fees Paid for Pa Insurance Department’s Outside Consultants

This month, the Pennsylvania legislature is considering measures to shine a bright light on the untold millions of dollars the Pennsylvania Insurance Department (“Department”) is charging Pennsylvania-based insurance companies to pay for the Department’s outside consultants.  Under a bill that has passed the House and is awaiting action by the Senate, the Department would be required to disclose how much insurance companies are paying for the Department’s consultants to conduct examinations of the companies. The consultant fees absorbed by the Pennsylvania-based companies are believed to be in excess of tens of millions of dollars each year, but the exact amount remains a mystery because they are paid directly to the consultants and not accounted for in the Insurance Department’s budget or elsewhere. Industry trade groups have been calling for transparency about these exponentially increasing costs, arguing that there is already no cap on them, and without even knowing how much is being charged to the companies for these contracted regulatory functions, there cannot be complete accountability for the costs and efficiencies of the Department’s work.  These undisclosed expenses are ultimately passed down to consumers and, to the extent they contribute to a more expensive regulatory system than in other states, may have the effect of making Pennsylvania insurance companies less competitive than their out-of-state neighbors.

Continue reading
99 Hits

Kevin McKeon Discusses Medical Marijuana Appeals at PBI Program

On October 18, 2017, Kevin McKeon, partner at Hawke McKeon & Sniscak, LLP and co-founder of Pennsylvania Appellate Advocate, joined the Pennsylvania Bar Institute for its CLE program, “Next Steps for Medical Marijuana in PA: Evolving Issues in a Growing Industry”. Mr. McKeon discussed the status of Pennsylvania’s medical marijuana program and related appeals pending before the Pennsylvania Department of Health, Office of Open Records, and Commonwealth Court.

Continue reading
87 Hits

Legislation “Pipeline”

There are three bills before the Pennsylvania General Assembly that could impact basic services that many Pennsylvanians take for granted. All three involve jurisdiction over pipes that run underground in the Commonwealth.  The first two bills before the Pennsylvania General Assembly concern whether the Pennsylvania Public Utility Commission (“PUC”) or the municipalities/authorities will ultimately get to set rates and reasonable service standards for water and sewer service provided by municipalities.  The third bill before the General Assembly came into the spotlight on October 10, 2017 when Rep. Barrar filed a resolution, strongly urging the PUC to deny Laurel Pipeline’s Application to reverse the flow of its Philadelphia-to-Pittsburgh pipeline from the current westerly flow to easterly. 

Continue reading
180 Hits

DOH Denied My Medical Marijuana Permit Application. Now what?

At 1 PM today, the Pennsylvania Department of Health plans to announce the recipients of the first twelve permits to grow and process medical marijuana.  A live stream of the event is available at http://pacast.com/players/live_doh.asp.  Most applicants will be denied permits, because the odds are steep – only about one applicant in fifteen will be successful (except in Southeastern PA where only about one applicant in thirty will be successful). 

Continue reading
364 Hits

HIKO Energy v. PUC:  Divided Commonwealth Court Upholds $1.8 Million Civil Penalty


In HIKO Energy, LLC v. Pennsylvania PUC, No. 5 C.D. 2016, slip op. (June 8, 2017), a divided Commonwealth Court affirmed the Public Utility Commission’s (PUC) civil penalty of approximately $1.84 million against HIKO Energy, LLC (HIKO), an electric generation supplier (EGS) which, during the polar vortex effects of the winter of 2014, intentionally charged 5,700 customers a rate that exceeded their “guaranteed” introductory rate on nearly 15,000 invoices at the express direction of its management and chief executive officer (CEO).  The PUC’s policy for evaluating litigated and settled proceedings involving violations of the Public Utility Code (Code), which exposes companies who are unwilling or unable to negotiate a settlement to greater penalties, resulted in a penalty far greater than those imposed on EGSs that settled complaints stemming from the 2014 polar vortex.  The Court’s decision endorses both the PUC policy and its result, and underscores the importance of retaining counsel with the experience to negotiate early settlements in complaints alleging serious Code violations. 

Continue reading
493 Hits

Christopher Knight of HMS Discusses Insurance Regulatory Issues at PAMIC’s Market Regulation Seminar


FOR IMMEDIATE RELEASE

Continue reading
444 Hits

Pennsylvania Marijuana Grower Industry Must Be Energy Savvy

The energy-intensive marijuana industry is having a significant impact on electricity usage in states where it is legalized.  Some states worry that this drastic increase in electricity demand will negatively impact both their infrastructure and carbon footprint while increasing costs. Some state and local governments have reacted to these electricity usage impacts by implementing new taxes, fees, and other regulatory measures.  However, the naturally energy-intensive process for growing marijuana is sometimes exacerbated by each state’s own regulations.  For instance, Pennsylvania, which legalized medical marijuana in 2016, requires growers to contain their entire grow operation indoors.  While the Pennsylvania Act is specific about how growers must run their operations, this Act is frighteningly silent on how Pennsylvania will cope with the corresponding energy drain on local infrastructure or on how such increase in electricity usage might impact Pennsylvania’s carbon footprint.  But whether Pennsylvania, or any other state, has considered the impact of these energy issues or not, it is absolutely critical for every marijuana grower to consider the impact its energy consumption has on its overall operation.  To reduce operating costs and hence gain a competitive advantage, marijuana operators, especially grower/processors, should seek ways to reduce both the price of energy and the amount they use.  Pennsylvania’s energy industry provides a plethora of creative ways to achieve both of these goals and more.

Continue reading
694 Hits

Thomas Sniscak of Hawke, McKeon & Sniscak LLP Speaks before a Packed Audience about Marcellus Shale at the Keystone Energy Forum

FOR IMMEDIATE RELEASE:

January 12, 2017

Thomas J. Sniscak participated as a speaker at the Keystone Energy Forum on January 12, 2017.  He spoke on the many critical issues facing the Marcellus shale industry from both the federal and state levels.  In his presentation Attorney Sniscak addressed the eminent domain and public right-of-way issues related to the siting of pipelines within the Marcellus Shale areas of Pennsylvania.

Continue reading
800 Hits

Department of the Interior Finalizes Stream Protection Rule for Coal Mining Industry


Today the Department of the Interior (Department), announced that it has finalized regulations that it has been working on since 2009,[1] which aim to “protect streams, fish, wildlife, and related environmental values from the adverse impacts of surface coal mining operations and provide mine operators with a regulatory framework to avoid water pollution and the long-term costs associated with water treatment”[2] by overhauling 30-year-old regulations.  Highlights include:

Continue reading
802 Hits

EPA Waives Clean Air Act Requirements for Colonial Pipeline after Explosion

The Colonial Pipeline explosion that occurred on Monday, October 31, 2016, was catastrophic, killing one worker and shooting flames 100 feet high.  The explosion, which was caused during an effort to fix a line breach also injured four additional workers, and crippled gasoline supplies to the northeast.  This explosion on the Colonial Pipeline and the resulting severing of gasoline supply to the northeast caused the Environmental Protection Agency (EPA) to issue a waiver of the federal RFG (reformulated gasoline) requirements as promulgated under the Clean Air Act (CAA). 

Continue reading
1466 Hits

Commonwealth Court Denies PA PUC Authority to Rule on the Meaning of “Customer-Generator” under AEPS

 

            In Sunrise Energy v. FirstEnergy Corp. and West Penn Power Company,[1] the Pennsylvania Commonwealth Court affirmed the lower court’s ruling, in a 5-2 decision, that the Pennsylvania Public Utility Commission does not have primary, let alone exclusive, authority to adjudicate claims arising under the Alternative Energy Portfolio Standards Act[2] (“AEPS”) because the General Assembly failed to delegate such authority to the Commission.

Continue reading
927 Hits

PA Supreme Court Further Demolishes Act 13 in Robinson Township Remand Appeal


On September 28, 2016, the Pennsylvania Supreme Court (Court) ruled[1] on a Commonwealth Court remand decision[2] of the Robinson Township 2013 Court decision,[3] where the Court held key provisions of Act 13[4] (the statute implementing major changes in Pennsylvania’s oil and gas laws and the ability of local government to regulate this industry) were unconstitutional (HMS Blog).  In the 2016 Robinson Township decision, the Court:  (1) upheld the Commonwealth Court’s holding that provisions related to Public Utility Commission (PUC) review of local ordinances are unseverable from unconstitutional provisions and thus unenforceable, and (2) held four additional provisions of Act 13, including the grant of eminent domain, unconstitutional. 

Continue reading
1341 Hits

Uber Update – PUC Upholds $11M Penalty


Last week, the Public Utility Commission (PUC) sustained the $11 million fine it imposed against ride-sharing service Uber, voting 4-1 to deny reconsideration of its May 2016 order imposing this penalty against Uber for its unprecedented number of violations of PUC regulations, including operating without PUC authority via a certificate of public convenience.  

Continue reading
949 Hits

PUC Requests Comments on Taxi Regulations


            On August 11, 2016, The PUC acting pursuant to Act 85 of 2016, which requires the PUC to promulgate new regulations in response to changes in the industry, requested public comment on ride sharing companies such as Uber and Lyft.  Uber and Lyft have spurred and created controversy  in both the Public Utility Commission (PUC)  and Commonwealth Courts.  The PUC requested comments include “specific suggestions for any proposal, including suggested regulatory language, with appropriate citations to current regulations that address the particular comment.  Additionally, comments must provide the underlying rationale to support any suggested temporary regulations.”  Comments are due 30 days from publication in the Pennsylvania Bulletin, which is published each Saturday.  The rulemaking is docketed at L-2016-2556432.

Continue reading
1520 Hits

Despite Drilling Downturn, PA Natural Gas Production Grows


       On August 1, 2016, The Pennsylvania Department of Environmental Protection (DEP) released its 2015 Oil and Gas Annual Report (Report).[1]  In additional to natural gas production details, the Report provides information on natural gas data trends in Pennsylvania and details on DEP inspections.  2015 was a difficult year for the natural gas industry as it faced record inventory levels, declining prices, and decreases in newly drilled wells.[2]  DEP confirms Pennsylvania was not immune to the national downturn in natural gas drilling with only 1,070 newly drilled wells in 2015 – more than a 50% decrease from the 2,163 new wells drilled in 2014.[3]

Continue reading
1080 Hits

Commission Sets Precedent to Extend Uber’s and Lyft’s Authority to Operate in Pennsylvania


            On June 30, 2016, at its most recent public meeting, the Pennsylvania Public Utility Commission (“Commission”) set a precedent important to Pennsylvania Uber (operating in Pennsylvania under its subsidiary Raiser-PA) and Lyft users alike by granting Yellow Cab Company of Pittsburgh, Inc. (“Yellow Cab”), a temporary extension of one year of operating authority to provide Transportation Network Service (“TNC”) in Pennsylvania.[1] Although Yellow Cab may no longer be a household name like Uber and Lyft, the service that it provides is identical. In fact, Yellow Cab was the first Transportation Network Service (“TNC”) or app-based transportation provider that was granted temporary authority to operate in Pennsylvania.[2] But under the Commission’s regulations, TNC authority is considered “experimental” and therefore is temporary and only valid for two years.[3] Yellow Cab was granted authority to operate beginning in July 2014 and without the Commission’s June 30th Order, it would have been required to cease operating on July 1, 2016.

Continue reading
1215 Hits

IRRC Shoots Down AEPS Regulations a Second Time


When Pennsylvania’s Independent Regulatory Review Commission (“IRRC”) voted unanimously at its June 30, 2016 meeting to disapprove for a second time the Pennsylvania Public Utility Commission’s (“PUC”) recent efforts to modify its regulations implementing the Alternative Energy Portfolio Standards(“AEPS”) Act,[1] it was aware that its action would at most place a speed bump in the PUC’s path, but it disapproved the regulations anyway. 

Continue reading
1410 Hits

North American Leaders Announce Climate, Clean Energy, and Environment Partnership


On June 29, 2016, President Obama, Prime Minister Trudeau, and President Nieto announced the North American Climate, Clean Energy, and Environment Partnership at the North American Leaders Summit.  According to President Obama, the “ambitious and enduring” Partnership will see the United States, Canada, and Mexico “work toward the common goal of a North America that is competitive, that encourages clean growth, and that protects our shared environment.”[1]

Continue reading
1167 Hits

PIPES Act Update


Yesterday, President Obama signed into law the “Protecting our Infrastructure of Pipelines and Enhancing Safety” (PIPES) Act.  This bi-partisan bill was the culmination of efforts by both the Energy and Commerce Committee and the Transportation and Infrastructure Committee.  This Act is intended to increase the efficiency and transparency of the Pipeline and Hazardous Materials Safety Administration (PHMSA) while enlarging safety inspections and audits of the natural gas pipeline industry.

Continue reading
1301 Hits

The Uncertain Future of Net Metering in Pennsylvania


     On June 2, 2016 the Independent Regulatory Review Commission (“IRRC”) appropriately voted 5-0 to disapprove the Pennsylvania Public Utility Commission’s (“PUC”) attempt to modify its regulations implementing the Alternative Energy Portfolio Standards (“AEPS”) Act, 73 P.S. §§1648.1, et seq.  The IRRC’s rejection was based primarily on its view that the PUC’s proposed regulations would exceed its statutory authority by limiting net-metering of electricity to entities with alternative energy systems sized to generate no more than 200% of their annual consumption.  The IRRC went on to state that if the PUC decides to proceed with the rulemaking by deleting this limit, it “should ensure that other provisions of the regulation do not limit a customer-generator’s ability to net-meter excess generation it produces.”  The IRRC also found that the PUC had failed to show any need for the modifications and suggested that because the PUC’s proposal appeared to be a change in policy of such a substantial nature consultation with the General Assembly was warranted.

Continue reading
1295 Hits