PENNSYLVANIA

PUBLIC UTILITY COMMISSION

Harrisburg, PA 17105-3265

Public Meeting held June 27, 2002

Commissioners Present:

Glen R. Thomas, Chairman

Robert K. Bloom, Vice Chairman

Aaron Wilson, Jr.

Terrance J. Fitzpatrick

Kim Pizzingrilli

Pennsylvania Public Utility Commission
v. / R-00016941
Trigen-Philadelphia Energy Corporation

O R D E R

BY THE COMMISSION:

We adopt as our action the Recommended Decision of Administrative Law Judge Cynthia Williams Fordham dated May 24,2002; THEREFORE,

IT IS ORDERED:

1. That the Joint Petition for Settlement of Rate Investigation submitted by Trigen-Philadelphia Energy Corporation, the Office of Trial Staff, the Office of Small Business Advocate, the University of Pennsylvania, the Pennsylvania Hospital of the University of Pennsylvania Health System, the Presbyterian Medical Center of the University of Pennsylvania Health System, Thomas Jefferson University, Thomas Jefferson University Hospital and Atlantic American Properties Management, Inc. at Docket No. R-00016941 is approved.

2. That the Company is authorized to file a tariff supplement to its Tariff Steam PA. P.U.C. No. 3 to establish new steam rates, on one day’s notice, that will produce an increase in annualized base rate revenues of no more than $3,300,000. The first $2,200,000 of the increase in annualized base rate revenues shall become effective July 1, 2002, and the remaining $1,100,000 of the increase will become effective July 1, 2003.

3. That all amounts previously recovered under the State Tax Adjustment Surcharge (“STAS”) are rolled into base rates and that the STAS shall be maintained to provide only for any future legislative changes in the state tax rates.

4. That the Company agrees not to file a tariff supplement before July 1, 2004, which would constitute a rate increase under Section 1308 of the Public Utility Code; provided, that this provision has no application to changes in the State Tax Adjustment Surcharge or computation of the Steam Cost Rate; that if any change in federal or state law, Commission order or regulation results in a change in fundamental regulatory policy affecting the Company’s rates, the Company will not be precluded from filing a tariff supplement or supplements limited to a direct response to such change or changes. The stay-out provision does not prohibit the Company from submitting a compliance filing at the conclusion of this rate proceeding.

5. The Company will be permitted to implement the settlement rates set forth in Appendix A, effective respectively on July 1, 2002 and July 1, 2003, on one day’s notice following the entry of the Commission’s final order approving the Joint Petition.

6. That the intervention of the Office of Small Business Advocate is withdrawn.

7. That the interventions of the University of Pennsylvania, the Pennsylvania Hospital of the University Pennsylvania Health System, Presbyterian Medical Center University of Pennsylvania Health System, Atlantic American Properties Management, Inc., Thomas Jefferson University and Thomas Jefferson University Hospital are withdrawn.

8. That the intervention of the City of Philadelphia is dismissed.

9. That the Commission investigation at Docket No. R-00016941 is terminated and marked closed.

BY THE COMMISSION,

James J. McNulty

Secretary

(SEAL)

ORDER ADOPTED: June 27, 2002

ORDER ENTERED: June 28, 2002