Beverly A. Sikora

Beverly A. Sikora Assistant General Counsel BGE Legal Department 2 Center Plaza, 12th Floor 110 West Fayette Street Baltimore, Maryland 21201

Telephone 410.470.1410 Fax 443.213.3206 www.bge.com [email protected]

April 16, 2021

Via Electronic Filing

Andrew S. Johnston, Executive Secretary

Public Service Commission of Maryland

William Donald Schaefer Tower

6 St. Paul Street, 16th Floor

Baltimore, Maryland 21202-6806

Re: PSC Case No. 9646 (Pay It Forward Pilot Program)

Dear Mr. Johnston:

Attached for filing in the above-referenced case, please find the Direct Testimony of John

L. Hays on behalf of Baltimore Gas and Electric Company (BGE or Company), which was

electronically filed this date.

Pursuant to the Commission’s March 16, 2020 Notice of Waiver and Relaxed Filing

Requirements, the Company will not provide paper copies of this filing.

Sincerely,

Beverly A. Sikora

Beverly A. Sikora

BAS:meg

Attachments

cc: Parties CN 9646

http://www.bge.com/

mailto:[email protected]

Exhibit JLH-1

(Proposed Redline and Clean Supplement 476 Tariff Pages)

Baltimore Gas and Electric Company – Gas 27

P.S.C. Md. – G-9 (Suppl. 476472) Filed 04/16/2112/28/2020– Effective 01/01/20221

Schedule D continued

5. GENERAL TERMS

5.1 Minimum Charge: Customer Charge

5.2 Late Payment Charge: Standard (Part 2, Sec. 7.5)

5.3 Payment Terms: Standard (Part 2, Sec. 7)

5.4 Term of Contract with BGE: The Customer’s initial term of contract with

BGE for Delivery Service is 1 year, and thereafter until terminated by at least 30

days notice from the Customer to BGE.

6. RIDERS APPLICABLE: This Schedule is subject to Riders applicable as

listed below:

1. Gas Efficiency Charge

2. Gas Commodity Price

4. Budget Billing

5. Smart Meter Opt-Out

7. Gas Choice and Reliability Charges

8. Monthly Rate Adjustment

10. Billing in Event of Service Interruption

11. Unaccounted – For Gas Factor

12. Gas Administrative Charge

13. Gas Extension Pilot

15. Multi-Year Plan (“MYP”) Adjustment Rider

16. STRIDE (Strategic Infrastructure Development and Enhancement)

Surcharge

17. Prepaid Pilot

18. Base Distribution Revenue Offset Rider

40 Gas – Baltimore Gas and Electric Company

P.S.C. Md. -- G-9 (Suppl 476472) Filed 12/28/202004/16/21-- Effective

01/01/20212

Schedule C continued


listed below:


3. Standby Service Price

4. Even Monthly Payment Plan




9. Demonstration and Trial Installations


11. Unaccounted - For Gas Factor



14. Economic Development

15. Multi Year Plan (“MYP”) Adjustment Rider

16. STRIDE (Strategic Infrastructure Development

and Enhancement) Surcharge



P.S.C. Md. G-9 (Suppl 476472) Filed 04/16/202112/28/2020–

Effective 01/01/20221

Schedule IS continued

thereto is not less than 50 therms per hour at any such location. Additional

metering installations used for less than 1 year are subject to charges for

installation and removal, less salvage, upon removal by the Company.

5.6 DEFINITIONS:

(a) Transportation Gas: All gas to which the Customer takes title at

or before the Company’s City Gate.

(b) Daily Imbalance: The difference between the Customer’s daily

use and daily delivery of Gas to the Company’s City Gate.

(c) AMR: – an automated meter reading device suitable for daily

interface between a Customer and the Company’s data collection and

processing system.

(d) Gas Production Day: A Gas Day when the Company anticipates

engaging in peak shaving activities. The Company will endeavor to notify

the Customer of expected peak shaving activity.

(e) Gas Day: A 24-hour period beginning at 10:00 a.m. Eastern Time.

(f) Non-Compliant Therms: Gas usage above contracted hourly

OFDS volumes, if any, or all gas usage during a distribution system

interruption if no contracted OFDS.

(g) Enrollment Period: The timeframe when a Customer may

request an hourly volume for OFDS or cancel existing OFDS, which

always ends on July 31.

5.7 METERING EQUIPMENT:

An AMR owned and maintained by the Company suitable for daily

interface with the Company’s data collection and processing system is

required. The Customer pays the estimated installed cost of the AMR,

plus any additional facilities necessary, under the provisions of Part 2,

Sec. 8.5. Sixty (60) days notice is required for installation of the AMR.

Service under this Option will commence upon installation of the AMR.

5.8 INFORMATION FEE:

All Customers served under this Schedule shall pay a monthly

Information Fee of $65.


listed below:







16. STRIDE (Strategic Infrastructure Development and Enhancement) Surcharge


63-A Gas – Baltimore Gas and Electric Company

P.S.C. Md. -- G-9 (Suppl 476472) Filed 04/16/2021 12/28/2020 – Effective

01/01/20221

Schedule ISS continued



processing system.















plus any additional facilities necessary, under the provisions of Part 2, Sec.

8.5. Sixty (60) days notice is required for installation of the AMR. Service

under this Option will commence upon installation of the AMR.


All Customers served under this Schedule shall pay a monthly Information

Fee of $65.


listed below:






15. Multi-Year Plan (“MYP”) Adjustment Rate




Baltimore Gas and Electric Company – Gas 64-M

P.S.C. Md. -- G-9 (Suppl 476472) Filed 04/16/202112/28/2020– Effective

01/01/20212

Schedule EG continued

5.6.5 Gas Production Day: A Gas Day when the Company anticipates engaging

in peak shaving activities. The Company will endeavor to notify the

Customer of expected peak shaving activity.

5.6.6 Gas Day: A 24-hour period beginning at 10:00 a.m. Eastern Prevailing

Time.

5.6.7 Non-Compliant Therms: Gas usage above contracted hourly OFDS

volumes, if any, or all gas usage during a distribution system interruption

if no contracted OFDS or any unapproved gas usage.

5.6.8 Enrollment Period: The timeframe when a Customer may request an hourly

volume for OFDS or cancel existing OFDS, which always ends on July 31.

5.7 Metering Equipment: An AMR owned and maintained by the Company

suitable for daily interface with the Company’s data collection and processing

system is required. The Customer pays the estimated installed cost of the AMR, plus

any additional facilities necessary, under the provisions of Part 2, Sec. 8.5. Sixty

(60) days notice is required for installation of the AMR. Service under this Option

will commence upon installation of the AMR

5.8 Information Fee All Customers served under this Schedule shall pay a monthly


6. Riders Applicable: This schedule is subject to Riders applicable as listed below: 9. Demonstration and Trial Installations






16. STRIDE (Strategic Infrastructure Development and

Enhancement) Surcharge

Gas -- Baltimore Gas and Electric Company

P.S.C. Md. – G-9 (Suppl 476472) Filed 12/28/202004/16/21– Effective 01/01/20221

80

"Excess Service", is installed by the Company at the Customer's expense and is owned and maintained by him. The route shall be the shortest practicable route lying entirely within the property of the Customer.

5. GENERAL TERMS:

5.1 The Customer assumes the responsibility for the detection of any defect or leak on his premises, and agrees in the event of any failure of the service due to irregular supply, leakage, high or low pressure, to notify the Company immediately.

5.2 Minimum Charge: …………………………………… Customer Charge

5.3 Late Payment Charge: ………………………Standard. (Part 2, Sec. 7.5)

5.4 Payment Terms………………………………… Standard (Part 2, Sec. 7)

5.5 Term of Contract: One year; thereafter until terminated by at least 10

days notice from the Customer. The Customer shall pay all costs of connection and disconnection, if service is used less than 1 year.

6. RIDERS APPLICABLE: This Schedule is subject to Riders applicable as listed below:



4. Budget Billing


7. Gas Choice and Reliability Charge










Baltimore Gas and Electric Company - Gas

P. S. C. Md. -- G-9 (Suppl. 476472) Filed 12/28/202004/16/21– Effective 01/01/20221

81

RIDER INDEX




4. Budget Billing


6. (Reserved for Future Use)







13. Gas Extension Pilot(Reserved for future use)




Surcharge

17. Prepaid Pilot


Schedule Riders Applicable

D . . . . . . . . . . . .. 1, 2, 4, 5, 7, 8, 10, 11, 12, 13, 15, 16,

17, 18

C . . . . . . . . . . . . 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15,

16, 18

IS . . . . . . . . . . . . . 9, 10, 11, 13, 14, 15, 16, 18

ISS . . . . . . . . . . . . . 9, 10, 11, 13, 14, 15, 16, 18

EG . . . . . . . . . . . . . 9, 10, 11, 13, 14, 15, 16

PLG . . . . . .. . . . . . . 2, 10, 11, 15

GRANTORS . . . .. . . . . . . . . 1, 2, 4, 5, 7, 8, 10, 11, 12, 13, 15, 16,

18

Baltimore Gas and Electric Company – Gas 92-D

P.S.C. Md. – G-9 (Suppl. 476359) Filed 4/29/201104/16/21 – Effective 6/1/20110/1/201/01/2022

c. Dividing D.2.b. by the BGE estimated sales quantities for the upcoming twelve-months ended

October 31 to determine the rate to be added to the Gas Commodity Price (Rider 2).

E. The Uncollectible Expense component of the GAC is determined, in the following manner:

1. Using test year data from the most recently approved base rate case calculate the ratio of Gas

Commodity Revenue to Total Gas Revenue from End Users.

2. Applying that ratio to Gas Uncollectible Expense from the most recently approved base rate case

to determine the Uncollectible Expense associated with the Gas Commodity.

3. Calculating the Gas Uncollectible Expense Gross-Up Rate by dividing the Uncollectible Expense

Associated with the Gas Commodity by the total Gas Commodity Revenues.

4. Applying the Gas Uncollectible Expense Gross-Up Rate calculated in C.3 to the sum of the Gas

Commodity Price (Rider 2) and the amounts calculated in A.3.c, B.2.d., C.2.c., and D.2.c.

5. There is no true-up for this component.

F. The PSC Assessment component of the GAC is determined in the following manner:

1. Adding the components of this Rider to the Gas Commodity Price (Rider 2).

a. Credit and Collection Expense as calculated in A;

b. Commodity Billing Charge as calculated in B;

c. Storage Inventory Carrying Costs as calculated in C;

d. Commodity Cash Working Capital as calculated in D; and

e. Uncollectible Expense as calculated in E.

2. Grossing up the sum determined in F.1. by the PSC Assessment rate in effect the month the Gas

Commodity Price (Rider 2) is filed.


G. Revenues associated with the GAC adder, using test year data from the most recently approved base

rate case, are excluded from the Rider 8 – Monthly Rate Adjustment target base revenues, subject to an

adjustment to reflect the difference between the rate charged to suppliers for using BGE’s bill and the

revenues reflected in test year data from the most recently approved base rate case.

H. BGE will file the calculation of the Gas Administrative Charge by October 1 of each year with the

revised rates be added to the Rider 2 Gas Commodity Price with November billings, pending

Commission approval. In addition, the GAC charges shall be updated following the issuance of a final

order in any general gas base rate proceeding to reflect the approved test year amounts for the various

cost and revenue items necessary to calculate the GAC components as well as to reflect the allocations

between rate classes based on the cost of service study used by BGE to set rates. BGE shall submit its

revised GAC calculation no later than the first day of the second month after final Commission approval

so that the GAC charges can be applied to the monthly Gas Commodity Price no later than the first day

of the third calendar month after issuance of a final Commission order in the general gas base rate

proceeding. For those components with true-up mechanisms, the actual amounts to true-up will be

based on the components that were applied to each monthly Gas Commodity Price.

13. Reserved for future use

Baltimore Gas and Electric Company – Gas 92-E

P.S.C. Md. – G-9 (Suppl. 476) Filed 04/16/21 – Effective 01/01/2022


A. Availability: This rider is applicable to gas extensions under Section 8.2 that can lead to the

connection of additional customers beyond the customer(s) initially associated with the gas extension.

The availability of funds from the Growth Pool shall be on a first come, first served basis. This rider

will have an initial term of three years (36 months).

B. Definitions:

1. Growth Pool: the aggregate amount by which the results of the economic tests performed under

this rider, including subsequent growth beyond the initially connecting customers, exceed the after tax

return on the Company’s aggregate Main and Service Line investment equal to its currently

authorized rate of return. The initial Growth Pool balance shall be limited to $10 million, with any

grants from the Maryland Energy Administration (MEA) being additive to this amount. MEA grants

shall be dispersed to eligible projects prior to applying the Growth Pool, on a first come, first served

basis.

2. Community Conversion Project: a project that includes a Main Line extension and includes

converting existing residential dwellings to natural gas service within a residential development.

3. Net Impact: as determined under the economic test in Section 8.2, the net present value difference

between the expected Revenue Stream and the estimated costs that are specific to and are only related

to a connecting customer, such as the individual service line and meter.

4. Revenue Stream: the net present value of expected revenue as determined under the economic test

in Section 8.2.

C. Application

1. To the extent that funds are available from the Growth Pool, the Company may offset a new

extension’s cost where the new extension can lead to additional customer growth, subject to the

following limits:

a. For all projects, the maximum individual project offset is limited to $500,000 if one initially

connecting customer; the maximum project offset is $1 million if two or more large

commercial customers initially connect.

b. In addition, for public schools, other government buildings, and non-profit corporations the

individual project offset limit is calculated using five times the Net Impact of the initially

connecting customer(s). This offset does not apply to Main Line extensions that are installed

within a Community Conversion Project. For all other projects the offset limit is calculated

using five times the Net Impact of the initially connecting customer(s) or the impact of the

estimated expected Revenue Stream of potential additional growth from the project,

whichever is lower. Potential additional growth from new construction is limited to identified

potential growth that could occur within five years of project completion.

c. In addition, for a Community Conversion Project, the offset is limited to the difference

between the Net Impact of all the dwellings within the project scope and the Net Impact of the

initially connecting customers. However, the Company requires both that two or more

initially connecting customers and that at least 20% of the community initially participate. In

addition, to be eligible the Contribution in Aid of Construction (CIAC) must be $2,000 or less

when calculated at 100% participation.

Baltimore Gas and Electric Company – Gas 92-F


D. Reporting

1. The Company shall provide the Public Service Commission Staff and the Office of People’s

Counsel with semiannual reports that provide the monthly Growth Pool activity, in addition to

highlighting any monthly changes that may occur as the result of excess revenues from new

extensions being added to the Growth Pool or as offsets to the Growth Pool are applied to eligible

projects. The reports shall also include environmental and economic benefits where they can be

identified.

2. The Company will track projects under this rider independently so they may be evaluated separately

from other plant additions and expenses.

3. The Company will produce a filing six months following the conclusion of the 36-month period

that (1) evaluates the successes or failures of the program, (2) justifies the continuance of the

program in its present form, and (3) includes discussion on the following topics:

a. initial connections made under the Pay It Forward Pilot program

b. the costs of those connections and the applied Growth Pool funds

c. secondary connections to the gas system following initial Pay It Forward connections

d. any additional expected connections

e. the fuel source that any new connections previously relied on so that environmental impacts

can be estimated

f. any additional information needed to analyze the impact of the pilot program


P.S.C. Md. – G-9 (Suppl. 476) Filed04/16/21– Effective 01/01/2022

Schedule D continued

5. GENERAL TERMS

5.1 Minimum Charge: Customer Charge

5.2 Late Payment Charge: Standard (Part 2, Sec. 7.5)

5.3 Payment Terms: Standard (Part 2, Sec. 7)

5.4 Term of Contract with BGE: The Customer’s initial term of contract with

BGE for Delivery Service is 1 year, and thereafter until terminated by at least 30

days notice from the Customer to BGE.


listed below:



4. Budget Billing










Surcharge

17. Prepaid Pilot


40 Gas – Baltimore Gas and Electric Company

P.S.C. Md. -- G-9 (Suppl 476) Filed 04/16/21-- Effective 01/01/2022

Schedule C continued


listed below:



4. Even Monthly Payment Plan










15. Multi Year Plan (“MYP”) Adjustment Rider





P.S.C. Md. G-9 (Suppl 476) Filed 04/16/2021– Effective 01/01/2022

Schedule IS continued

thereto is not less than 50 therms per hour at any such location. Additional

metering installations used for less than 1 year are subject to charges for

installation and removal, less salvage, upon removal by the Company.

5.6 DEFINITIONS:

(a) Transportation Gas: All gas to which the Customer takes title at

or before the Company’s City Gate.

(b) Daily Imbalance: The difference between the Customer’s daily

use and daily delivery of Gas to the Company’s City Gate.



processing system.















plus any additional facilities necessary, under the provisions of Part 2,

Sec. 8.5. Sixty (60) days notice is required for installation of the AMR.

Service under this Option will commence upon installation of the AMR.


All Customers served under this Schedule shall pay a monthly



listed below:







16. STRIDE (Strategic Infrastructure Development and Enhancement) Surcharge


63-A Gas – Baltimore Gas and Electric Company

P.S.C. Md. -- G-9 (Suppl 476) Filed 04/16/2021 – Effective 01/01/2022

Schedule ISS continued



processing system.















plus any additional facilities necessary, under the provisions of Part 2, Sec.

8.5. Sixty (60) days notice is required for installation of the AMR. Service

under this Option will commence upon installation of the AMR.


All Customers served under this Schedule shall pay a monthly Information

Fee of $65.


listed below:






15. Multi-Year Plan (“MYP”) Adjustment Rate




Baltimore Gas and Electric Company – Gas 64-M

P.S.C. Md. -- G-9 (Suppl 476) Filed 04/16/2021– Effective 01/01/2022

Schedule EG continued

5.6.5 Gas Production Day: A Gas Day when the Company anticipates engaging

in peak shaving activities. The Company will endeavor to notify the

Customer of expected peak shaving activity.

5.6.6 Gas Day: A 24-hour period beginning at 10:00 a.m. Eastern Prevailing

Time.

5.6.7 Non-Compliant Therms: Gas usage above contracted hourly OFDS

volumes, if any, or all gas usage during a distribution system interruption

if no contracted OFDS or any unapproved gas usage.

5.6.8 Enrollment Period: The timeframe when a Customer may request an hourly

volume for OFDS or cancel existing OFDS, which always ends on July 31.

5.7 Metering Equipment: An AMR owned and maintained by the Company

suitable for daily interface with the Company’s data collection and processing

system is required. The Customer pays the estimated installed cost of the AMR, plus

any additional facilities necessary, under the provisions of Part 2, Sec. 8.5. Sixty

(60) days notice is required for installation of the AMR. Service under this Option

will commence upon installation of the AMR

5.8 Information Fee All Customers served under this Schedule shall pay a monthly


6. Riders Applicable: This schedule is subject to Riders applicable as listed below: 9. Demonstration and Trial Installations








Gas -- Baltimore Gas and Electric Company

P.S.C. Md. – G-9 (Suppl 476) Filed 04/16/21– Effective 01/01/2022

80

"Excess Service", is installed by the Company at the Customer's expense and is owned and maintained by him. The route shall be the shortest practicable route lying entirely within the property of the Customer.

5. GENERAL TERMS:

5.1 The Customer assumes the responsibility for the detection of any defect or leak on his premises, and agrees in the event of any failure of the service due to irregular supply, leakage, high or low pressure, to notify the Company immediately.

5.2 Minimum Charge: …………………………………… Customer Charge

5.3 Late Payment Charge: ………………………Standard. (Part 2, Sec. 7.5)

5.4 Payment Terms………………………………… Standard (Part 2, Sec. 7)

5.5 Term of Contract: One year; thereafter until terminated by at least 10

days notice from the Customer. The Customer shall pay all costs of connection and disconnection, if service is used less than 1 year.

6. RIDERS APPLICABLE: This Schedule is subject to Riders applicable as listed below:



4. Budget Billing


7. Gas Choice and Reliability Charge










Baltimore Gas and Electric Company - Gas

P. S. C. Md. -- G-9 (Suppl.476) Filed 04/16/21– Effective 01/01/2022

81

RIDER INDEX




4. Budget Billing


6. (Reserved for Future Use)











Surcharge

17. Prepaid Pilot


Schedule Riders Applicable

D . . . . . . . . . . . .. 1, 2, 4, 5, 7, 8, 10, 11, 12, 13, 15, 16,

17, 18

C . . . . . . . . . . . . 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15,

16, 18

IS . . . . . . . . . . . . . 9, 10, 11, 13, 14, 15, 16, 18

ISS . . . . . . . . . . . . . 9, 10, 11, 13, 14, 15, 16, 18

EG . . . . . . . . . . . . . 9, 10, 11, 13, 14, 15, 16

PLG . . . . . .. . . . . . . 2, 10, 11, 15

GRANTORS . . . .. . . . . . . . . 1, 2, 4, 5, 7, 8, 10, 11, 12, 13, 15, 16,

18

Baltimore Gas and Electric Company – Gas 92-D


c. Dividing D.2.b. by the BGE estimated sales quantities for the upcoming twelve-months ended

October 31 to determine the rate to be added to the Gas Commodity Price (Rider 2).

E. The Uncollectible Expense component of the GAC is determined, in the following manner:

1. Using test year data from the most recently approved base rate case calculate the ratio of Gas

Commodity Revenue to Total Gas Revenue from End Users.

2. Applying that ratio to Gas Uncollectible Expense from the most recently approved base rate case

to determine the Uncollectible Expense associated with the Gas Commodity.

3. Calculating the Gas Uncollectible Expense Gross-Up Rate by dividing the Uncollectible Expense

Associated with the Gas Commodity by the total Gas Commodity Revenues.

4. Applying the Gas Uncollectible Expense Gross-Up Rate calculated in C.3 to the sum of the Gas

Commodity Price (Rider 2) and the amounts calculated in A.3.c, B.2.d., C.2.c., and D.2.c.


F. The PSC Assessment component of the GAC is determined in the following manner:

1. Adding the components of this Rider to the Gas Commodity Price (Rider 2).

a. Credit and Collection Expense as calculated in A;

b. Commodity Billing Charge as calculated in B;

c. Storage Inventory Carrying Costs as calculated in C;

d. Commodity Cash Working Capital as calculated in D; and

e. Uncollectible Expense as calculated in E.

2. Grossing up the sum determined in F.1. by the PSC Assessment rate in effect the month the Gas

Commodity Price (Rider 2) is filed.


G. Revenues associated with the GAC adder, using test year data from the most recently approved base

rate case, are excluded from the Rider 8 – Monthly Rate Adjustment target base revenues, subject to an

adjustment to reflect the difference between the rate charged to suppliers for using BGE’s bill and the

revenues reflected in test year data from the most recently approved base rate case.

H. BGE will file the calculation of the Gas Administrative Charge by October 1 of each year with the

revised rates be added to the Rider 2 Gas Commodity Price with November billings, pending

Commission approval. In addition, the GAC charges shall be updated following the issuance of a final

order in any general gas base rate proceeding to reflect the approved test year amounts for the various

cost and revenue items necessary to calculate the GAC components as well as to reflect the allocations

between rate classes based on the cost of service study used by BGE to set rates. BGE shall submit its

revised GAC calculation no later than the first day of the second month after final Commission approval

so that the GAC charges can be applied to the monthly Gas Commodity Price no later than the first day

of the third calendar month after issuance of a final Commission order in the general gas base rate

proceeding. For those components with true-up mechanisms, the actual amounts to true-up will be

based on the components that were applied to each monthly Gas Commodity Price.

Baltimore Gas and Electric Company – Gas 92-E



A. Availability: This rider is applicable to gas extensions under Section 8.2 that can lead to the

connection of additional customers beyond the customer(s) initially associated with the gas extension.

The availability of funds from the Growth Pool shall be on a first come, first served basis. This rider

will have an initial term of three years (36 months).

B. Definitions:

1. Growth Pool: the aggregate amount by which the results of the economic tests performed under

this rider, including subsequent growth beyond the initially connecting customers, exceed the after tax

return on the Company’s aggregate Main and Service Line investment equal to its currently

authorized rate of return. The initial Growth Pool balance shall be limited to $10 million, with any

grants from the Maryland Energy Administration (MEA) being additive to this amount. MEA grants

shall be dispersed to eligible projects prior to applying the Growth Pool, on a first come, first served

basis.

2. Community Conversion Project: a project that includes a Main Line extension and includes

converting existing residential dwellings to natural gas service within a residential development.

3. Net Impact: as determined under the economic test in Section 8.2, the net present value difference

between the expected Revenue Stream and the estimated costs that are specific to and are only related

to a connecting customer, such as the individual service line and meter.

4. Revenue Stream: the net present value of expected revenue as determined under the economic test

in Section 8.2.

C. Application

1. To the extent that funds are available from the Growth Pool, the Company may offset a new

extension’s cost where the new extension can lead to additional customer growth, subject to the

following limits:

a. For all projects, the maximum individual project offset is limited to $500,000 if one initially

connecting customer; the maximum project offset is $1 million if two or more large

commercial customers initially connect.

b. In addition, for public schools, other government buildings, and non-profit corporations the

individual project offset limit is calculated using five times the Net Impact of the initially

connecting customer(s). This offset does not apply to Main Line extensions that are installed

within a Community Conversion Project. For all other projects the offset limit is calculated

using five times the Net Impact of the initially connecting customer(s) or the impact of the

estimated expected Revenue Stream of potential additional growth from the project,

whichever is lower. Potential additional growth from new construction is limited to identified

potential growth that could occur within five years of project completion.

c. In addition, for a Community Conversion Project, the offset is limited to the difference

between the Net Impact of all the dwellings within the project scope and the Net Impact of the

initially connecting customers. However, the Company requires both that two or more

initially connecting customers and that at least 20% of the community initially participate. In

addition, to be eligible the Contribution in Aid of Construction (CIAC) must be $2,000 or less

when calculated at 100% participation.

Baltimore Gas and Electric Company – Gas 92-F


D. Reporting

1. The Company shall provide the Public Service Commission Staff and the Office of People’s

Counsel with semiannual reports that provide the monthly Growth Pool activity, in addition to

highlighting any monthly changes that may occur as the result of excess revenues from new

extensions being added to the Growth Pool or as offsets to the Growth Pool are applied to eligible

projects. The reports shall also include environmental and economic benefits where they can be

identified.

2. The Company will track projects under this rider independently so they may be evaluated separately

from other plant additions and expenses.

3. The Company will produce a filing six months following the conclusion of the 36-month period

that (1) evaluates the successes or failures of the program, (2) justifies the continuance of the

program in its present form, and (3) includes discussion on the following topics:

a. initial connections made under the Pay It Forward Pilot program

b. the costs of those connections and the applied Growth Pool funds

c. secondary connections to the gas system following initial Pay It Forward connections

d. any additional expected connections

e. the fuel source that any new connections previously relied on so that environmental impacts

can be estimated

f. any additional information needed to analyze the impact of the pilot program

Documents

Beverly A. Sikora