Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
STATE OF NEW JERSEY Board of Public Utilities
Agenda Date: 9/22/17 Agenda Item: 20
44 South Clinton Avenue, 3RD Floor, Suite 314 Post Office Box 350
Trenton, New Jersey 08625-0350 www.nj.gov/bpu/
IN THE MATTER OF THE PETITION OF ATLANTIC ) CITY ELECTRIC COMPANY FOR APPROVAL OF ) AMENDMENTS TO ITS TARIFF TO PROVIDE FOR AN ) INCREASE IN RATES AND CHARGES FOR ELECTRIC ) SERVICE PURSUANT TO N.J.S.A. 48:2-21 AND ) N.J.S.A. 48:2-21.1 AND FOR OTHER APPROPRIATE ) RELIEF (2017) )
Parties of Record:
ENERGY
DECISION AND ORDER ADOPTING INITIAL DECISION AND STIPULATION OF SETTLEMENT
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Phillip J. Passanante, Esq., and Wendy Stark, Esq. and Colleen Foley, Esq. (Saul Ewing) LLP on behalf of Atlantic City Electric Company, Petitioner Stefanie A. Brand, Esq., Director, Division of Rate Counsel Bradford M. Stern, Esq., and Martin C. Rothfelder, Esq., for Unimin Corporation Donald R. Wagner, Esq., Stevens & Lee, for Wal-Mart Stores East, L.L.C. and Sam's East, Inc.
BY THE BOARD:
On March 30, 2017, pursuant to N.J.S.A. 48:2-21 and N.J.A.C. 14:1-5.12, Atlantic City Electric Company ("ACE" or "Company"), a public utility of the State of New Jersey subject to the jurisdiction of the New Jersey Board of Public Utilities ("Board"), filed a petition for approval of an increase in its current base rates for electric service of approximately $70.2 million, excluding Sales and Use Tax ("SUT") ($7 4.8 million including SUT), to be effective for electric service provided on or after April 30, 2017. The Company also requested a return on equity ("ROE"') of 10.10%. According to the petition, the primary reason for the requested increase is that the Company's current base rate·s do not: (i) provide sufficient operating revenues to reflect increased investment in the Company's rate base, meet operating expenses, taxes, and fixed charges, and maintain its financial viability; and (ii) provide a· fair opportunity to earn a reasonable rate of return on the fair value of the Company's property. The Company's petition was based on five (5) months of actual data and seven (7) months of estimated data.
Agenda Date: 9/22/17 Agenda Item: 2D
Additionally, the Company requested the authority to: (i) create a regulatory asset to record the costs to achieve merger synergy savings to amortize those costs over a five (5) year period; (ii) incorporate the results of ACE's Costs of Service Study and consider the unitized rate of return for each customer rate class in the allocation of overall revenue requirements among rate classes; and (iii) modify certain charges, including monthly customer charges and provide format changes to tariff sheets delineating the pricing for certain schedules.
The Company also states it did not use the Peak and Average Coincident Peak method ("P & A method") to develop its proposed rates in this proceeding. ACE further sought approval of its proposed System Renewal Recovery Charge ("SRRC").
The Company sought to implement its proposed rates to become effective for service rendered on or after April 30, 2017, but in no event after December 30, 2017. By Order effective April 30, 2017, the Board suspended the proposed rates until August 30, 2017, and on July 26, 2017 the Board further suspended the implementation of rates until December 30, 2017.
On April 5, 2017 this matter was transmitted to the Office of Administrative Law ("OAL") where it was assigned to Administrative Law Judge ("ALJ") Elia A. Pelios. A telephone pre-hearing conference was held by ALJ Pelios on May 23, 2017. A Pre-Hearing Order and Procedural Schedule was issued on June 19, 2017. On June 26, 2017, the OAL notified the parties that the case had been reassigned to ALJ Jacob S. Gertsman.
On July 24, 2017 ALJ Gertsman granted Wal-Mart Stores East, LP and Sam's East, Inc. ("WalMart") and Unimin Corporation ("Unimin") Intervenor status, while Public Service Electric and Gas Company ("PSE&G"), Jersey Central Power an.d Light. Company ("JCP&L"), and the Builders League of South Jersey ("BLSJ") were granted Participant status.
On July 24, 2017, ACE filed an update to the petition to include nine (9) months of actual data and three (3) months of estimated data. The July update modified the Company's request to reflect a net annual increase in base rates for electric service of $72.6 million ($77.4 million, including SUT).
On August 1, 2017, Direct Testimony was filed by Rate Counsel and Wal-Mart.1
On August 30, 2017, the Company filed its a further update to the petition, including revised schedules demonstrating the Company's actual results for the twelve (12) month test year. The August update reflected a revenue requirement of $84.6 million ($90.2 million, including SUT).
Two (2) public hearings were held in Mays Landing, New Jersey on June 28, 2017 at 3:30 p.m. and 5:30 p.m. with ALJ Gertsman presiding. Several members of the public attended, including various New Jersey companies and organizations, and spoke in favor of the petition. All comments were transcribed by the Court reporter and are part of the record. The Board did not receive any written comments with regard to the petition.
1 Rate Counsel filed Direct Testimony by Andrea Crane, Matthew Kahal, David Peterson, Susan Baldwin, and Max Chang and Charles Salamone. Wal-Mart filed the Direct Testimony of Steve Chriss.
2 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
STIPULATION
Agenda Date: 9/22/17 Agenda Item: 20
After discovery and comprehensive settlement discussion, on September 8, 2017, the Company, Board Staff, Wal-Mart, and Rate Counsel (collectively, "Signatory Parties") reached a stipulation of settlement ("Stipulation"),2 the key elements of which are as follows:
1. For the purposes of this proceeding only, the Signatory Parties agree that the Company's rate base is deemed to be $1,316,150,936 with a test year ending on July 31, 2017. The Signatory Parties further agree that this rate base amount does not reflect any particular ratemaking adjustment proposed by any Signatory Party for incorporation into the overall revenue requirement calculation.
2 .. The Signatory Parties agree that, for the purposes of resolving this proceeding, the Company shall have an overall rate of return of 7.60 percent, which is based on a capital structure consisting of 50.47 percent equity with a cost rate of 9.60 percent, and 49.53 percent long-term debt with a cost rate of 5.56 percent.
3. The Signatory Parties stipulate that a revenue increase for the Company of $43 million (exclusive of SUT, or $45,848,750 inclusive of SUT) is an appropriate resolution of this matter, and is just and reasonable.
4. The Signatory Parties acknowledge that the stipulated revenue increase reflects consideration of a consolidated income tax adjustment.
5. The Signatory Parties agree and recommend that the Board should authorize the Company to implement new rates, based upon an increase in distribution base rate revenues of $43 million (exclusive of SUT). The Signatory Parties agree that this increase in base rate revenues should be implemented as indicated on the attached proof of revenues and rate design schedules (included as Exhibit A to the Stipulation) implementing the terms of the Stipulation. Tariff pages implementing these rates will be submitted upon Board approval of the Stipulation. The tariff pages will reflect a change in the monthly customer charge for Rate Schedule RS (residential service) from $4.44 to $5.00 (including SUT). Based on the rate design in Exhibit A of the Stipulation, the overall annual average monthly impact of this rate change on the total bill for a typical residential customer using 716 kWh per month is $5.52 or 4.03 percent (inclusive of SUT or $5.17 or 3.85 percent exclusive of SUT). The agreement on rate de.sign is for settlement purposes only, and does not indicate Board Staff's or Rate Counsel's agreement to the Company's functionalization, classification, and allocation of costs or to the Company's cost of service methodology presented in its Petition and testimonies filed in this matter.
6. The Signatory Parties acknowledge that the Board has resolved the Company's requests regarding its economic development pilot program, including Rider SCD and Rider RP, in a separately docketed proceeding, and that no further action. on the Company's request is required in this base rate case.
2 Although summarized in this Order, the detailed terms of the Stipulation control, subject to the findings and conclusions of the Order.
3 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda Date: 9/22/17 Agenda Item: 2D
7. The Company will continue to comply with the requirement ordered by the Board in BPU. Docket No. ER0302011 O to file the Company's base rate requests including an alternative distribution rate design based on a Cost of Service Study using a Peak and Average Coincident Peak Method.
8. The Company hereby agrees to withdraw its request to implement an SRRC. At the time the Company initiated this base rate proceeding, it did not have the benefit of considering either the infrastructure investment straw proposal prepared by the Staff of the Board, or the resulting draft regulations, approved for publication by the Board in the New Jersey Register and currently subject to comment. In light of those important policy initiatives undertaken by the Board, the Company has concluded it would be appropriate to reconsider its SRRC proposal, and to make a future infrastructure investment filing following the Board's action on the draft regulations.
9. The Signatory Parties agree and recommend that the Board approve the Company's tariff for electric service which has been revised and corrected to reflect the comments of Board Staff regarding a number of administrative corrections, and to include language proposed by Board Staff regarding the Company's tariff provisions addressing Net Energy Metering. The Signatory Parties further acknowledge that the Company will be required to file a complete conformed tariff upon the Board's final resolution of this proceeding.
10. The Signatory Parties acknowledge that the Company is responsible for determining the prudent level of system investment that is needed to meet its service obligations to customers, to satisfy reliability and minimum spending commitments agreed to in the Exelon Merger which include the commitment to continue the programs identified and the reporting requirements in the Reliability Improvement Plan ("RIP") through 2021, and to operate its system in a safe and reliable manner consistent with sound engineering practice. The Signatory Parties also acknowledge Rate Counsel has recommended that accelerated reliability spending under the existing RIP should be phased out, such that the ongoing reliability capital and O&M spend at the Company in the future is at the level necessary to meet the reliability commitments under the merger agreement and to meet its service obligations to customers. The Petitioner agrees to prepare a proposal for phasing out the accelerated reliability spending in the RIP, consistent with its obligation to provide safe, adequate and proper service and to meet its Exelon Merger commitments, and to present that plan in the Company's next base rate case. Nothing in this paragraph shall preclude the Company from filing a proposal for an infrastructure investment tracker mechanism, as. referenced in Paragraph 8 of the Stipulation.
11. The Signatory Parties agree there are numerous reasons, including the economic challenges faced by southern New Jersey, why the Petitioner continues to experience customer complaint levels in excess of 1,500 complaints annually. To understand and address the many factors contributing to this problem, ACE will continue to meet quarterly with representatives from Board Staff and Rate Counsel in connection with the Company's Customer Service Improvement Plan, and will include in those meetings discussion of this issue, exploration of options for addressing this concern, and reporting on the results of the Company's efforts. The Signatory Parties also acknowledge that the Board has commenced a management audit of the Company, the scope of which also includes customer service matters.
4 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda Date: 9/22/17 Agenda Item: 2D
12. The Signatory Parties acknowledge that the rate design proposed in the Stipulation will result in no increase to Rate Schedule TGS-Transmission General Service.
13. The Signatory Parties agree and recommend that the Petitioner should be authorized to create a regulatory asset which includes the following costs to achieve synergy savings incurred in the Exelon Merger: (1) costs to achieve in the amount of $3,315,770 incurred in the period beginning March 23, 2016 through July 31, 2016; (2) costs to achieve in the amount of $4,929,176 during the August 1, 2016 through July 31, 2017 test year period in this proceeding; and (3) costs to achieve incurred on or after August 1, 2017. For the purposes of the Stipulation, the Parties agree that the regulatory asset created in this Paragraph will not be included in rate base at this time. Any future rate treatment for the regulatory asset will be determined in the next base rate case filed by the Company. The Company agrees that, among other things, it will not recover merger transaction costs, or any imprudently incurred costs. The Company further agrees that it will not seek to recover costs to achieve, including the amount deemed a regulatory asset herein until it has demonstrated that the synergy savings exceed the costs to achieve. The Company will make this showing in its next filed base rate case, and acknowledges that it bears the burden of proof. The Signatory Parties expressly acknowledge that the terms of the Stipulation are non-precedential, and expressly reserve their right to support or oppose any request by the Company in the future to recover its claimed costs to achieve.
14. The Signatory Parties agree that the Company should be permitted to create a regulatory asset in the amount of $5,577,392 to reflect costs related to three Major Storm Events (the June, 2016 Storm [$1,708,455], the January, 2017 Storm [$1,727,933], and the March, 2017 Winter Storm Stella [$2,141,004)), which will be recovered in base rates via a three year amortization with no rate base treatment of the unamortized balance.
On September 8 2017, BLSJ, Unimin, PSE&G filed correspondence indicating that they did not object/took no position on the terms to the Stipulation. On September 11, 2017, JCP&L filed similar correspondence.
On September 12, 2017 ALJ Gertsman issued an initial decision accepting the terms of the Settlement.
DISCUSSION AND FINDINGS
In evaluating a proposed settlement, the Board must review the record, balance the interests of the ratepayers and the shareholders, and determine whether the settlement represents a reasonable disposition of the issues that will enable the Company to provide its customers in this State with safe, adequate and proper service at just and reasonable rates. In re Petition of Pub. Serv. Elec. & Gas, 304 N.J. Super. 247 (App. Div.), cert. denied, 152 N.J. 12 (1997). The Board recognizes that the parties worked diligently to negotiate a compromise that attempts to meet the needs of as many stakeholders as possible. The Board further recognizes that the Stipulation represents a balanced solution considering the many complex issues that were addressed during the proceeding.
Therefore, based on the Board's review and consideration of the record in this proceeding, the Board HEREBY FINDS the Initial Decision and Stipulation to be reasonable, in the public interest and in accordance with the law. Accordingly, the Board HEREBY ADOPTS the
5 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda. Date: 9/22/17 Agenda Item: 2D
attached Initial Decision and Stipulation in their entirety, and HEREBY INCORPORATES their terms a_nd conditions as though fully set forth herein, subject to any terms and conditions set forth in this Order.
As a result of the Stipulation,· a typical residential customer using 716 kWh monthly will experience an increase in the monthly bill of $5.52 or 4.3 per cent inclusive of SUT and $5.17 or 3.85 percent exclusive of SUT.
The rates approved by this Order will become effective for service rendered on and after October 1, 2017.
The Company is HEREBY DIRECTED to file tariff sheets consistent with this Order by October 1, 2017.
The Company's rates remain subject to audit by the Board. This Decision and Order shall not preclude the Board from taking any actions deemed to be appropriate as a result of any Board audit.
This Order shall be effective on September 29, 2017.
DA TED: C\ \ '2... '2.. \ \1 BOARD OF PUBLIC UTILITIES BY:
// RICHARD S. MROZ PRESIDENT
-------
0J~~ ANNESLOMON COMMISSIONER
ATTEST:
~IVUKULA COMMISSIONER
6
I HERBY CERTIFY that the within dot11ment Is a true <OP!' ct the orlQlnal In the fit .. ct the Board of Publlcumtlll
cil.L.+a
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda Date: 9/22/17 Agenda Item: 20
IN THE MATIER OF THE PETITION OF ATLANTIC CITY ELECTRIC COMPANY FOR APPROVAL OF AMENDMENTS TO ITS TARIFF TO PROVIDE FOR AN INCREASE IN
RATES AND CHARGES FOR ELECTRIC SERVICE PURSUANT TO N.J.S.A. 48:2-21 AND N.J.S.A. 48:2-21.1 AND FOR OTHER APPROPRIATE RELIEF (2017)
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Atlantic City Electric Company Philip J. Passanante, Esq. Associate General Counsel ACE-92DC42 500 North Wakefield Drive Post Office Box 6066 Newark, DE 19714-6066 [email protected]
Roger E. Pedersen Manager, NJ Regulatory Affairs External Issues and Compliance ACE- 63ML38 . 5100 Harding Highway Mays Landing, NJ 08330 [email protected] ·
Colleen A. Foley, Esq. Saul Ewing LLP One Riverfront Plaza Suite 1520 Newark, NJ 07102 [email protected]
Wendy E. Stark, Esq. Deputy General Counsel Pepco Holdings, Inc. - EP1132 701 Ninth Street, NW Washington DC 20068-0001 westark@pepcoholdinqs:com
Mindy L. Herman Director Regulatory Services Pepco Holdings, Inc. - EP9020 701 Ninth Street, NW Washington DC 20068-0001 [email protected]
SERVICE LIST
7
Division of Rate Counsel 140 East Front Street, 4th Floor Post Office Box 003 Trenton, NJ 08625-0003
Stefanie A. Brand, Esq. Director [email protected]
Ami Morita, Esq. [email protected]
Diane Schulze, Esq. [email protected]
Brian Lipman, Esq. [email protected]
Brian Weeks, Esq. [email protected]
James Glassen, Esq. [email protected]
Kurt Lewandowski, Esq. [email protected]
Maura Caroselli, Esq. [email protected]
Lisa Gurkes [email protected]
Board of Public Utilities 44 South Clinton Avenue, 3rd Floor Suite 314 Post Office Box 350 Trenton, NJ 08625-0350
Irene Kim Asbury, Esq. Secretary of the Board [email protected]
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
STATE OF NEW JERSEY Board of Public Utilities
Agenda Date: 9/22/17 Agenda Item: 20
44 South Clinton Avenue, 3RD Floor, Suite 314 Post Office Box 350
Trenton, New Jersey 08625-0350 www.nj.gov/bpu/
IN THE MATTER OF THE PETITION OF ATLANTIC ) CITY ELECTRIC COMPANY FOR APPROVAL OF ) AMENDMENTS TO ITS TARIFF TO PROVIDE FOR AN ) INCREASE IN RATES AND CHARGES FOR ELECTRIC ) SERVICE PURSUANT TO N.J.S.A. 48:2-21 AND ) N.J.S.A. 48:2-21.1 AND FOR OTHER APPROPRIATE ) RELIEF (2017) )
Parties of Record:
ENERGY
DECISION AND ORDER ADOPTING INITIAL DECISION AND STIPULATION OF SETTLEMENT
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Phillip J. Passanante, Esq., and Wendy Stark, Esq. and Colleen Foley, Esq. (Saul Ewing) LLP on behalf of Atlantic City Electric Company, Petitioner Stefanie A. Brand, Esq., Director, Division of Rate Counsel Bradford M. Stern, Esq., and Martin C. Rothfelder, Esq., for Unimin Corporation Donald R. Wagner, Esq., Stevens & Lee, for Wal-Mart Stores East, L.L.C. and Sam's East, Inc.
BY THE BOARD:
On March 30, 2017, pursuant to N.J.S.A. 48:2-21 and N.J.A.C. 14:1-5.12, Atlantic City Electric Company ("ACE" or "Company"), a public utility of the State of New Jersey subject to the jurisdiction of the New Jersey Board of Public Utilities ("Board"), filed a petition for approval of an increase in its current base rates for electric service of approximately $70.2 million, excluding Sales and Use Tax ("SUT") ($74.8 million including SUT), to be effective for electric service provided on or after April 30, 2017. The Company also requested a return on equity ("ROE"') of 10.10%. According to the petition, the primary reason for the requested increase is that the Company's current base rate·s do not: (i) provide sufficient operating revenues to reflect increased investment in the Company's rate base, meet operating expenses, taxes, and fixed charges, and maintain its financial viability; and (ii) provide a· fair opportunity to earn a reasonable rate of return on the fair value of the Company's property. The Company's petition was based on five (5) months of actual data and seven (7) months of estimated data.
Agenda Date: 9/22/17 Agenda Item: 20
Additionally, the Company requested the authority to: (i) create a regulatory asset to record the costs to achieve merger synergy savings to amortize those costs over a five (5) year period; (ii) incorporate the results of ACE's Costs of Service Study and consider the unitized rate of return for each customer rate class in the allocation of overall revenue requirements among rate classes; and (iii) modify certain charges, including monthly customer charges and provide format changes to tariff sheets delineating the pricing for certain schedules.
The Company also states it did not use the Peak and Average Coincident Peak method ("P & A method") to develop its proposed rates in this proceeding. ACE further sought approval of its proposed System Renewal Recovery Charge ("SRRC").
The Company sought to implement its proposed rates to become effective for service rendered on or after April 30, 2017, but in no event after December 30, 2017. By Order effective April 30, 2017, the Board suspended the proposed rates until August 30, 2017, and on July 26, 2017 the Board further suspended the implementation of rates until December 30, 2017.
On April 5, 2017 this matter was transmitted to the Office of Administrative Law ("OAL") where it was assigned to Administrative Law Judge ("ALJ") Elia A. Pelios. A telephone pre-hearing conference was held by ALJ Pelios on May 23, 2017. A Pre-Hearing Order and Procedural Schedule was issued on June 19, 2017. On June 26, 2017, the OAL notified the parties that the case had been reassigned to ALJ Jacob S. Gertsman.
On July 24, 2017 ALJ Gertsman granted Wal-Mart Stores East, LP and Sam's East, Inc. ("WalMart") and Unimin Corporation ("Unimin") Intervenor status, while Public Service Electric and Gas Company ("PSE&G"), Jersey Central Power an.d Light Company ("JCP&L"), and the Builders League of South Jersey ("BLSJ") were granted Participant status.
On July 24, 2017, ACE filed an update to the petition to include nine (9) months of actual data and three (3) months of estimated data. The July update modified the Company's request to reflect a net annual increase in base rates for electric service of $72.6 million ($77.4 million, including SUT).
On August 1, 2017, Direct Testimony was filed by Rate Counsel and Wal-Mart.1
On August 30, 2017, the Company filed its a further update to the petition, including revised schedules demonstrating the Company's actual results for the twelve (12) month test year. The August update reflected a revenue requirement of $84.6 million ($90.2 million, including SUT).
Two (2) public hearings were held in Mays Landing, New Jersey on June 28, 2017 at 3:30 p.m. and 5:30 p.m. with ALJ Gertsman presiding. Several members of the public attended, including various New Jersey companies and organizations, and spoke in favor of the petition. All comments were transcribed by the Court reporter and are part of the record. The Board did not receive any written comments with regard to the petition.
1 Rate Counsel filed Direct Testimony by Andrea Crane, Matthew Kahal, David Peterson, Susan Baldwin, and Max Chang and Charles Salamone. Wal-Mart filed the Direct Testimony of Steve Chriss.
2 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
STIPULATION
Agenda Date: 9/22/17 Agenda Item: 2D
After discovery and comprehensive settlement discussion, on September 8, 2017, the Company, Board Staff, Wal-Mart, and Rate Counsel (collectively, "Signatory Parties") reached a stipulation of settlement ("Stipulation"),2 the key elements of which are as follows:
1. For the purposes of this proceeding only, the Signatory Parties agree that the Company's rate base is deemed to be $1,316,150,936 with a test year ending on July 31, 2017. The Signatory Parties further agree that this rate base amount does not reflect any particular ratemaking adjustment proposed by any Signatory Party for incorporation into the overall revenue requirement calculation.
2 .. The Signatory Parties agree that, for the purposes of resolving this proceeding, the Company shall have an overall rate of return of 7.60 percent, which is based on a capital structure consisting of 50.47 percent equity with a cost rate of 9.60 percent, and 49.53 percent long-term debt with a cost rate of 5.56 percent.
3. The Signatory Parties stipulate that a revenue increase for the Company of $43 million (exclusive of SUT, or $45,848,750 inclusive of SUT) is an appropriate resolution of this matter, and is just and reasonable.
4. The Signatory Parties acknowledge that the stipulated revenue increase reflects consideration of a consolidated income tax adjustment.
5. The Signatory Parties agree and recommend that the Board should authorize the Company to implement new rates, based upon an increase in distribution base rate revenues of $43 million (exclusive of SUT). The Signatory Parties agree that this increase in base rate revenues should be implemented as indicated on the attached proof of revenues and rate design schedules (included as Exhibit A to the Stipulation) implementing the terms of the Stipulation. Tariff pages implementing these rates will be submitted upon Board approval of the Stipulation. The tariff pages will reflect a change in the monthly customer charge for Rate Schedule RS (residential service) from $4.44 to $5.00 (including SUT). Based on the rate design in Exhibit A of the Stipulation, the overall annual average monthly impact of this rate change on the total bill for a typical residential customer using 716 kWh per month is $5.52 or 4.03 percent (inclusive of SUT or $5.17 or 3.85 percent exclusive of SUT). The agreement on rate design is for settlement purposes only, and does not indicate Board Staff's or Rate Counsel's agreement to the Company's functionalization, classification, and allocation of costs or to the Company's cost of service methodology presented in its Petition and testimonies filed in this matter.
6. The Signatory Parties acknowledge that the Board has resolved the Company's requests regarding its economic development pilot program, including Rider SCD and Rider RP, in a separately docketed proceeding, and that no further action on the Company's request is required in this base rate case.
2 Although summarized in this Order, the detailed terms of the Stipulation control, subject to the findings and conclusions of the Order.
3 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda Date: 9/22/17 Agenda Item: 2D
7. The Company will continue to comply with the requirement ordered by the Board in BPU Docket No. ER03020110 to file the Company's base rate requests including an alternative distribution rate design based on a Cost of Service Study using a Peak and Average Coincident Peak Method.
8. The Company hereby agrees to withdraw its request to implement an SRRC. At the time the Company initiated this base rate proceeding, it did not have the benefit of considering either the infrastructure investment straw proposal prepared by the Staff of the Board, or the resulting draft regulations, approved for publication by the Board in the New Jersey Register and currently subject to comment. In light of those important policy initiatives undertaken by the Board, the Company has concluded it would be appropriate to reconsider its SRRC proposal, and to make a future infrastructure investment filing following the Board's action on the draft regulations.
9. The Signatory Parties agree and recommend that the Board approve the Company's tariff for electric service which has been revised and corrected to reflect the comments of Board Staff regarding a number of administrative corrections, and to include language proposed by Board Staff regarding the Company's tariff provisions addressing Net Energy Metering. The Signatory Parties further acknowledge that the Company will be required to file a complete conformed tariff upon the Board's final resolution of this proceeding.
10. The Signatory Parties acknowledge that the Company is responsible for determining the prudent level of system investment that is needed to meet its service obligations to customers, to satisfy reliability and minimum spending commitments agreed to in the Exelon Merger which include the commitment to continue the programs identified and the reporting requirements in the Reliability Improvement Plan ("RIP") through 2021, and to operate its system in a safe and reliable manner consistent with sound engineering practice. The Signatory Parties also acknowledge Rate Counsel has recommended that accelerated reliability spending under the existing RIP should be phased out, such that the ongoing reliability capital and O&M spend at the Company in the future is at the level necessary to meet the reliability commitments under the merger agreement and to meet its service obligations to customers. The Petitioner agrees to prepare a proposal for phasing out the accelerated reliability spending in the RIP, consistent with its obligation to provide safe, adequate and proper service and to meet its Exelon Merger commitments, and to present that plan in the Company's next base rate case. Nothing in this paragraph shall preclude the Company from filing a proposal for an infrastructure investment tracker mechanism, as. referenced in Paragraph 8 of the Stipulation.
11. The Signatory Parties agree there are numerous reasons, including the economic challenges faced by southern New Jersey, why the Petitioner continues to experience customer complaint levels in excess of 1,500 complaints annually. To understand and address the many factors contributing to this problem, ACE will continue to meet quarterly with representatives from Board Staff and Rate Counsel in connection with the Company's Customer Service Improvement Plan, and will include in those meetings discussion of this issue, exploration of options for addressing this concern, and reporting on the results of the Company's efforts. The Signatory Parties also acknowledge that the Board has commenced a management audit of the Company, the scope of which also includes customer service matters.
4 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda Date: 9/22/17 Agenda Item: 2D
12. The Signatory Parties acknowledge that the rate design proposed in the Stipulation will result in no increase to Rate Schedule TGS-Transmission General Service.
13. The Signatory Parties agree and recommend that the Petitioner should be authorized to create a regulatory asset which includes the following costs to achieve synergy savings incurred in the Exelon Merger: (1) costs to achieve in the amount of $3,315,770 incurred in the period beginning March 23, 2016 through July 31, 2016; (2) costs to achieve in the amount of $4,929,176 during the August 1, 2016 through July 31, 2017 test year period in this proceeding; and (3) costs to achieve incurred on or after August 1, 2017. For the purposes of the Stipulation, the Parties agree that the regulatory asset created in this Paragraph will not be included in rate base at this time. Any future rate treatment for the regulatory asset will be determined in the next base rate case filed by the Company. The Company agrees that, among other things, it will not recover merger transaction costs, or any imprudently incurred costs. The Company further agrees that it will not seek to recover costs to achieve, including the amount deemed a regulatory asset herein until it has demonstrated that the synergy savings exceed the costs to achieve. The Company will make this showing in its next filed base rate case, and acknowledges that it bears the burden of proof. The Signatory Parties expressly acknowledge that the terms of the Stipulation are non-precedential, and expressly reserve their right to support or oppose any request by the Company in the future to recover its claimed costs to achieve.
14. The Signatory Parties agree that the Company should be permitted to create a regulatory asset in the amount of $5,577,392 to reflect costs related to three Major Storm Events (the June, 2016 Storm [$1,708,455], the January, 2017 Storm [$1,727,933], and the March, 2017 Winter Storm Stella [$2,141,004]), which will be recovered in base rates via a three year amortization with no rate base treatment of the unamortized balance.
On September 8 2017, BLSJ, Unimin, PSE&G filed correspondence indicating that they did not objecUtook no position on the terms to the Stipulation. On September 11, 2017, JCP&L filed similar correspondence.
On September 12, 2017 ALJ Gertsman issued an initial decision accepting the terms of the Settlement.
DISCUSSION AND FINDINGS
In evaluating a proposed settlement, the Board must review the record, balance the interests of the ratepayers and the shareholders, and determine whether the settlement represents a reasonable disposition of the issues that will enable the Company to provide its customers in this State with safe, adequate and proper service at just and reasonable rates. In re Petition of Pub. Serv. Elec. & Gas, 304 N.J. Super. 247 (App. Div.), cert. denied, 152 N.J. 12 (1997). The Board recognizes that the parties worked diligently to negotiate a compromise that attempts to meet the needs of as many stakeholders as possible. The Board further recognizes that the Stipulation represents a balanced solution considering the many complex issues that were addressed during the proceeding.
Therefore, based on the Board's review and consideration of the record in this proceeding, the Board HEREBY FINDS the Initial Decision and Stipulation to be reasonable, in the public interest and in accordance with the law. Accordingly, the Board HEREBY ADOPTS the
5 BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
--------
Agenda Date: 9/22/17 Agenda Item: 20
attached Initial Decision and Stipulation in their entirety, and HEREBY INCORPORATES their terms a.nd conditions as though fully set forth herein, subject to any terms and conditions set forth in this Order.
As a result of the Stipulation, a typical residential customer using 716 kWh monthly will experience an increase in the monthly bill of $5.52 or 4.3 per cent inclusive of SUT and $5.17 or 3.85 percent exclusive of SUT.
The rates approved by this Order will become effective for service rendered on and after October 1, 2017.
The Company is HEREBY DIRECTED to file tariff sheets consistent with this Order by October 1,2017.
The Company's rates remain subject to audit by the Board. This Decision and Order shall not preclude the Board from taking any actions deemed to be appropriate as a result of any Board audit.
This Order shall be effective on September 29, 2017.
DATED: C\ \ '2... -Z.. \ \1 BOARD OF PUBLIC UTILITIES BY:
~D~~ ANNESLOMON COMMISSIONER
ATTEST:
RICHARD S. MROZ PRESIDENT
' M C
~IVUKULA COMMISSIONER
6
I HEREBY Cl:RTIFV tllat the within documeot Is a true copy of the orilo the files of lhe Board cf PubHc lltlllla
QJ...L~
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Agenda Date: 9/22/17 Agenda Item: 2D
IN THE MATIER OF THE PETITION OF ATLANTIC CITY ELECTRIC COMPANY FOR APPROVAL OF AMENDMENTS TO ITS TARIFF TO PROVIDE FOR AN INCREASE IN
RATES AND CHARGES FOR ELECTRIC SERVICE PURSUANT TO N.J.S.A. 48:2-21 AND N.J.S.A. 48:2-21.1 AND FOR OTHER APPROPRIATE RELIEF (2017)
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Atlantic City Electric Company Philip J. Passanante, Esq. Associate General Counsel ACE-92DC42 500 North Wakefield Drive Post Office Box 6066 Newark, DE 19714-6066 [email protected]
Roger E. Pedersen Manager, NJ Regulatory Affairs External Issues and Compliance ACE- 63ML38 . 5100 Harding Highway Mays Landing, NJ 08330 [email protected] ·
Colleen A Foley, Esq. Saul Ewing LLP One Riverfront Plaza Suite 1520 Newark, NJ 07102 [email protected]
Wendy E. Stark, Esq. Deputy General Counsel Pepco Holdings, Inc. - EP1132 701 Ninth Street, NW Washington DC 20068-0001 westark@pepcoholdinqs:com
Mindy L. Herman Director Regulatory Services Pepco Holdings, Inc. - EP9020 701 Ninth Street, NW Washington DC 20068-0001 [email protected]
SERVICE LIST
7
Division of Rate Counsel 140 East Front Street, 4th Floor Post Office Box 003 Trenton, NJ 08625-0003
Stefanie A Brand, Esq. Director [email protected]
Ami Morita, Esq. [email protected]
Diane Schulze, Esq. [email protected]
Brian Lipman, Esq. [email protected]
Brian Weeks, Esq. [email protected]
James Glassen, Esq. [email protected]
Kurt Lewandowski, Esq. [email protected]
Maura Caroselli, Esq. [email protected]
Lisa Gurkes [email protected]
Board of Public Utilities 44 South Clinton Avenue, 3rd Floor Suite 314 Post Office Box 350 Trenton, NJ 08625-0350
Irene Kim Asbury, Esq. Secretary of the Board [email protected]
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Andrea Crane The Columbia Group P.O. Box 810 Georgetown, CT 06829 [email protected]
Max Chang Robert Fagen Synapse Energy Economics, Inc. 485 Massachusetts Ave., Suite 2 Cambridge, MA 02139 [email protected]
Gregory Booth Shannon King PowerServices, Inc. 1616 East Millbrook Road Suite 210 Raleigh, NC 27609 [email protected] [email protected]
Matthew I. Kahal 1108 Pheasant Crossing Charlottesville, MA 22901 [email protected]
David Peterson Chesapeake Regulatory Consultants Inc. 10351 Southern Maryland Blvd Suite 202 Dunkirk, MD 20754-950ci [email protected]
Susan M. Baldwin P.O. Box 392 Newburyport, MA 01950 [email protected]
PSE&G- Participant PSEG Services Corporation 80 Park Plaza, T5G Newark, NJ 07102 Joseph Accardo, Esq. [email protected]
8
Agenda Date: 9/22/17 Agenda Item: 2D
Paul E. Flanagan, Esq. Executive Director [email protected]
Cynthia Covie, Esq. Chief Counsel Cynthia. [email protected]
Bethany Rocque-Romaine, Esq. [email protected]
Megan Lupo. Esq. [email protected]
Thomas Walker, Director Division of Energy [email protected]
Stacy Peterson, Deputy Director Division of Energy [email protected]
Scott Sumliner Division of Energy [email protected]
Andrea Reid Division of Energy [email protected]
Oneil Hamilton Division of Energy [email protected]
Bart Kilar Division of Energy [email protected]
Mark Beyer, Chief Economist [email protected]
Jackie O'Grady Office of the Economist [email protected]
Dr. Son Lin Lai Office of the Economist [email protected]
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
Unimin- Intervenor Brad Stern, Esq. Martin Rothfelder, Esq. Law Office of Brad Stern 22 Lake View Hollow Cherry Hill, NJ 08003 [email protected] [email protected]
Wal-Mart - Intervenor Donald R. Wagner, Esq. Stevens and Lee 111 N. Sixth Street Reading, PA 19601 [email protected]
JCP&L - Participant Lauren Lepkoski, Esq. 2800 Pottsville Pike P.O. Box 16001 Reading, PA 19612-6001 [email protected]
Builders League of South Jersey, Inc. Steven S. Goldenberg, Esq. Fox Rothschild LLP 997 Lenox Drive, Building 3 Lawrenceville, NJ 08648-2311 [email protected]
9
Agenda Date: 9/22/17 Agenda Item: 2D
Christine Lin [email protected]
Division of Law & Public Safety 124 Halsey Street Post Office Box 45029 Newark, NJ 07101-45029
Caroline Vachier, DAG [email protected]
Alex Moreau, DAG [email protected]
Veronica Beke, DAG [email protected]
Geoffrey Gersten, DAG [email protected]
BPU DOCKET NO. ER17030308 OAL DOCKET NO. PUC 04989-2017
STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES
IN THE MATTER OF THE PETITION OF ATLANTIC CITY ELECTRIC COMP ANY FOR APPROVAL OF AMENDMENTS TO ITS TARIFF TO PROVIDE FOR AN INCREASE IN RATES AND CHARGES FOR ELECTRIC SERVICE PURSUANT TO N.J.S.A. 48:2-21 AND N.J.S.A. 48:2-21._1 AND FOR OTHER APPROPRIATE RELIEF (2017)
APPEARANCES:
BPU DOCKET NO. ERl 7030308 OAL DOCKET NO. PUC 04989-2017
STIPULATION OF SETTLEMENT
Wendy E. Stark, Esq., Vice President & General Counsel, Clark M. Stalker, Esq., Associate General Counsel, Philip J. Passanante, Esq., Assistant General Counsel, and Colleen A. Foley, Esq. (Saul Ewing LLP), on behalf of Atlantic City Electric Company, Petitioner
Alex Moreau and Veronica Beke, Deputy Attorneys General (Christopher S. Parrino, Attorney General of New Jersey), on behalf of the Staff of the Board of Public Utilities
Stefanie A. Brand, Esq., Director, Brian 0. Lipman, Deputy Rate Counsel, Ami Morita, Esq., Deputy Rate Counsel, Diane Schulze, Esq., Assistant Deputy Rate Counsel, .Tames W. Glassen, Esq., Assistant Deputy Rate Counsel, Kurt Lewandowski, Esq., Assistant Deputy Rate Counsel, Maura Caroselli, Assistant Deputy Rate Counsel and Brian Weeks, Esq., Deputy Rate Counsel, on behalf of the Division of Rate Counsel
Bradford M. Stem, Esq. and Martin C. Rothfelder, Esq., Rothfelder Stern, L.L.C., on behalf of Intervenor, Unimin Corporation
Donald R. Wagner, Esq., Stevens & Lee, on behalf of the Wal-Mart Stores East, LP and Sam's East, Tnc.
Joseph F. Accardo, Jr., Esq., on behalf of Participant, Public Service Electric and Gas Company
Lauren M. Lepkoski, Esq., on behalf of Participant, Jersey Central Power & Light Company
Steven S. Goldenberg, Esq., Fox Rothschild, LLP, on behalf of Participant, the Builders League of South Jersey, Inc.
TO THE HONORABLE BOARD OF PUBLIC UTILITIES:
The parties to this proceeding are as follows: Atlantic City Electric Company (the
"Company," "Petitioner" or "ACE"), the Division of Rate Counsel ("Rate Counsel"), the Staff of
the New Jersey Board of Public Utilities ("Board Staff' or "Staff'), Intervenor, Unimin
Corporation ("Unimin"), Intervenors, Wal-Mart Stores East, LP and Sam's East, Inc. (together,
"Wal-Mart"), Participant, Public Service Electric and Gas Company ("PSE&G"), Participant,
Jersey Central Power & Light Company ("JCP&L"), and Participant, the Builders League of
South Jersey, Inc. ("BLSJ"). The New Jersey Board of Public Utilities shall be referred to in this
Stipulation of Settlement (the "Stipulation") as the "Board" or the "BPU." As used in this
Stipulation, the term "Signatory Parties" refers to the Petitioner, Board Staff, Rate Counsel, and
Wal-Maii.
PROCEDURAL HISTORY
Petitioner is a corporation organized and existing under the laws of the State of
New Jersey, subject to the jurisdiction of the New Jersey Board of Public Utilities (the "Board"),
with a regional office located at 5100 Harding Highway, Mays Landing, New Jersey 08330. On
March 30, 2017, the Company filed a Verified Petition with the Board pursuant to N.J.S.A. 48:2-~
21 and N.J.S.A. 48:2-21.1 seeking a net annual increase in the Company's base rates for electric
distribution service of approximately $70.2 million, excluding New Jersey Sales and Use Tax
("SUT"), and to make other tariff changes. 1 The Company filed its Petition based on a test year
ending July 31, 2017, consisting of five months of actual results and seven months offorecasted
Specifically, the Company sought an increase in distribution rates of $70,160,580 ($74,808,719, including SUT).
-2-
data, adjusted for certain known and measurable changes. On August 29, 2017, the Petitioner
filed revised schedules reflecting the Company's actual results for the 12-month test year period,
adjusted for known and measurable changes.
On April 5, 2017, the Board transmitted the matter to the Office of Administrative
Law as a contested case, and Administrative Law Judge (" ALJ") Elia A. Pelios was assigned to
hear the case. A telephone Pre-Hearing Conference was convened by ALJ Pelios on May 23,
2017, and a Pre-Hearing Order was issued on June 19, 2017. On June 26, 2017, the parties were
notified that the case had been reassigned to ALJ Jacob S. Gertsman.
On May 8, 2017, PSE&G filed a Motion to Participate. On May 9, 2017, JCP&L
filed a Motion to Participate. On May 12, 2017, Unimin filed a Motion to Intervene. By letter
dated May 16, 2017, the Company indicated that it did not oppose the granting of these tbree
Motions.
On June 8, 2017, Wal-Mart filed a Motion to Intervene. On June 16, 2017, BLSJ
filed a Motion to Intervene. On June 26, 2017, the Company filed a letter indicating it did not
object to the granting of Wal-Mart's Motion. At that time, the Company also indicated that it
opposed the granting of BLSJ's Motion to Intervene, but would not object to granting BLSJ
participant status. BLSJ replied to the Company's opposition on July 19, 2017.
On July 24, 2017, ALJ Gertsman issuid a series of orders granting the Motions to
Participate of PSE&G and JCP&L, and the Motions to Intervene ofUnimin and Wal-Mart. Also
on July 24, 2017, ALJ Gertsman issued an order denying BLSJ's Motion to Intervene, but
granting BLSJ participant status.
By way of an Order effective April 30, 2017, the Board suspended untjjAugust
30, 2017, the implementation of the changes the Company sought to make to its. base rates. The
.3.
Board further suspended the implementation of rates until December 30, 2017, in an Order
effective August 30, 2017.
After proper notice, two public hearings were held in Mays Landing, New Jersey
at 3:30 P.M. and 5:30 P.M. on June 28, 2017, with AL.T Gertsman presiding. Several members
of the public appeared at the hearings, and spoke in favor of the Company's proposed increase.
No members of the public spoke in opposition to the Company's proposed increase. All
comments were transcribed and made a part of the record.
Discovery was conducted, and Direct Testimony was filed by Rate Counsel and
Wal-Mart on August 1, 2017.2 Thereafter, multiple settlement discussio_ns were held. The
Company, Board Staff, Rate Counsel, and Wal-Mart (collectively, the "Signatory Parties" and
each a "Signatory Party") have come to an agreement on the matters set forth in this Stipulation.
Unimin, PSE&G, JCP&L, and BLSJ while not Signatory Parties, have indicated that they do not
object to, or will take no position on, the terms of this Stipulation. Therefore, the Signatory
Patties hereto agree and stipulate as follows:
1. For the purposes of this proceeding only, the Signatory Parties agree that the
Company's rate base is deemed to be $1,316,150,936 with a test year ending on July 31, 2017.
The Signatory Parties further agree that this rate base amount does not reflect any paiticular
ratemaking adjustment proposed by any Signatory Party for incorporation into the overall
revenue requirement calculation.
2. The Signatory Parties agree that, for the purposes of resolving this proceeding, the
Company shall have an overall rate of return of 7.60 percent, which is based on a capital
2 Rate Counsel filed Direct Testimony by Andrea Crane, Matthew Kahal, David Peterson, Susan Baldwin, and Max Chang and Charles Salamone, Wal-Mart filed the Direct Testimony of Steve Chriss.
-4-
structure consisting of 50.47 percent equity with a cost rate of 9.60 percent, and 49.53 percent
long-term debt with a cost rate of 5.56 percent.
3. The Signatory Parties stipulate that a revenue increase for the Company of $43
million (exclusive of SUT, or $45,848,750 inclusive of SUT) is an appropriate resolution of this
matter, and is just and reasonable.
4. The Signatory Parties acknowledge that the stipulated revenue increase reflects
consideration of a consolidated income tax adjustment.
5. The Signatory Parties agree and recommend that the Board should authorize the
Company to implement new rates, based upon an increase in distribution base rate revenues of
$43 million (exclusive of SUT). The Signatory Parties agree that this increase in base rate
revenues should be implemented as indicated on the attached proof of revenues and rate design
schedules (included as Exhibit A) implementing the terms of this Stipulation. Tariff pages
implementing these rates will be submitted upon Board approval of this Stipulation. The tariff
pages will reflect a change in the monthly customer charge for Rate Schedule RS (residential
service) from $4.44 to $5.00 (including SUT). Based on the rate design in Exhibit A, the overall
annual average monthly impact of this rate change on the total bill for a typical residential
customer using 716 kWh per month is $5.52 or 4.03 percent (inclusive of SUT or $5.17 or 3.85
percent exclusive of SUT). This agreement on rate design is for settlement purposes only, and
does not indicate Board Staffs or Rate Counsel's agreement to the Company's functionalization,
classification, and allocation of costs or to the Company's cost of service methodology presented
in its Petition and testimonies filed in this matter.
6. The Signatory Parties acknowledge that the Board has resolved the Company's
requests regarding its economic development pilot program, including Rider SCD and Rider RP,
-5-
in a separately docketed proceeding, and that no further action on the Company's request is
required in this base rate case. 3
7. The Company will continue to comply with the requirement ordered by the Board
in BPU Docket No. ER03020110 to file the Company's base rate requests including an
alternative distribution rate design based on a Cost of Service Study using a Peak and Average
Coincident Peak Method.
8. The Company hereby agrees to withdraw its request to implement a System
Renewal Recovery Charge (the "SRRC"). At the time the Company initiated· this base rate
proceeding, it did not have the benefit of considering either the infrastructure investment straw
proposal prepared by the Staff of the Board, or the resulting draft regulations, approved for
publication by the Board in the New Jersey Register and currently subject to comment.4 In light
of those important policy initiatives undertaken by the Board, the Company has concluded it
would be appropriate to reconsider its SRRC. proposal, and to make a future infrastructure
investment filing following tl1e Board's action on the draft regulations.
9. The Signatory Parties agree and recommend that the Board approve the
Company's tariff for electric service which has been rev1Sed and corrected to reflect the
comments of Board Staff regarding a number of administrative corrections, and to include
language proposed by Board "Staff regarding the Company's tariff provisions addressing Net
Energy Metering. The Signatory Parties further acknowledge that the Company will be required
to file a complete conformed tariff upon the Board's final resolution of this proceeding.
3 See I/MIO the Application of Atlantic City Electric Company to Amend its Pilot Redevelopment Program Service Tariff Rider RP and Its Pilot Small Commercial Development Tariff Rider SCD to Revise and Expand the Eligibility Criteria for Customer Participation Therein, BPU Docket No. ER 17010007, Order Amendh1g Riders (dated May 31, 2017). 4 The proposed infraslructt1re investment and recovery rules are pending at the Board as BPU Docket No. AX! 7050469, Proposal No. PRN 2017-164.
-6-
10. The Signatory Parties acknowledge that the Company is responsible for
determining the prudent level of system investment that is needed to meet its service obligations
to customers, to satisfy reliability and minimum spending commitments agreed to in the Exelon
Merger which include the commitment to continue the programs identified and the reporting
requirements in the Reliability Improvement Plan ("RIP") through 2021, and to operate its
system in a safe and reliable manner consistent with sound engineering practice. The Signatory
Parties also acknowledge Rate Counsel has. recommended that accelerated reliability spending
under the existing RIP should be phased out, such that the ongoing reliability capital and O&M
spend at the Company in the future is at the level necessary to meet the reliability commitments
under the merger agreement and to meet its service obligations to customers. The Petitioner
agrees to prepare a proposal for phasing out the accelerated reliability spending in the RIP,
consistent with its obligation to provide safe, adequate and proper service and to meet its Exelon
Merger commitments, and to present that plan in the Company's next base rate case. Nothing in
this paragraph shall preclude the Company from filing a proposal for an infrastructure
investment tracker mechanism, as referenced in Paragraph 8 above.
11. The Signatory Parties agree there are numerous reasons, including the economic
challenges faced by southern New Jersey, why the Petitioner continues to experience customer
complaint levels in excess of 1,500 complaints annually. To understand and address the many
factors contributing to this problem, ACE will continue to meet quarterly with representatives
from Board Staff and Rate Counsel in connection with the Company's Customer Service
Improvement Plan, and will include in those meetings discussion of this issue, exploration of
-7-
options for addressing this concern, and reporting on the results of the Company's efforts.5 The
Signatory Parties also acknowledge that the Board has commenced a management audit of the
Company, the scope of which also includes customer service matters.
12. The Signatory Parties acknowledge that the rate design proposed in this
Stipulation will result ih no increase to Rate Schedule TGS-Transmission General Service.
13. The Signatory Parties agree and recommend that the Petitioner should be
authorized to create a regulatory asset which includes the following costs to achieve synergy
savings incurred in the Exelon Merger: (I) costs to achieve in the amount of$3,315,770 incurred
in the period beginning March 23, 2016 through July 31, 2016; (2) costs to achieve in the amount
of $4,929,176 during the August 1, 2016 through July 31, 2017 test year period in this
proceeding; and (3) costs to achieve incurred on or after August 1, 2017. For the purposes of this
Stipulation, the Parties agree that the regulatory asset created in this Paragraph will not be
included in rate base at this time. Any future rate treatment for the regulatory asset will be
detennined in the next base rate case filed by the Company. The Company agrees that, among
other things, it will not recover merger transaction costs, or any imprudently incurred costs. The
Company further agrees that it will not seek to recover costs to achieve, including the amount
deemed a regulatory asset herein until it has demonstrated that the synergy savings exceed the
costs to achieve. The Company will make this showing in its next filed base rate case, and
acknowledges that it bears the burden of proof. The Signatory Parties expressly acknowledge
that the terms of this Stipulation of Settlement are non-precedential, and expressly reserve their
5 . The Signatory Parties acknowledge that the quarterly meetings may take place in-person or via
telephone conference, and may be scheduled to coincide with other meetings between the Company, Board Staff and Rate Counsel.
-8-
right to support or oppose any request by the Company in the future to recover its claimed costs
to achieve.
14. The Signatory Parties agree that the Company should be permitted to create a
regulatory asset in the amount of $5,577,392 to reflect costs related to three Major Storm Events
(the June, 2016 Storm [$1,708,455], the January, 2017 Storm [$1,727,933], and the March, 2017
Winter Storm Stella [$2,141,004]), which will be recovered in base rates via a three year
amortization with no rate base treatment of the unamortized balance.
15. Each Signatory Party agrees to use its best efforts to ensure that this Stipulation
· shall be presented to the Board for approval at the Board's September 22, 2017 public agenda
meeting. Each Signatory Party also understands that a Board order adopting this Stipulation will
become effective upon the service of said Board order or upon such date after the service thereof
as the Board may specify, in accordance with N.J.S.A. 48:2-40,
16. This Stipulation shall be binding on the Signatory Parties upon the effective date
of a Board Order approving this Stipulation. This Stipulation shall bind the Signatory Parties in
this matter only and shall have no precedential value. This Stipulation contains. terms, each of
which is interdependent with the others and essential in its own right to the signing of this
Stipulation. Each term is vital to the agreement as a whole, since the Signatory Parties expressly
and joinTiy state that they would not have signed the Stipulation had any term been modified in
any way. Since the Signatory Parties have compromised in numerous areas, each is entitled to
certain procedures in the event that any modifications whatsoever are made to the Stipulation. If,
upon consideration of this Stipulation, the Board were to modify any of the tem1s described
above, each Signatory Paiiy must be given the right to be placed in the position it was in before
this Stipulation was entered into. It is essential that each Signatory Party be afforded the option,
-9-
prior to the implementation of any new rate resulting from any modification of this Stipulation,
either to modify its own position to accept the proposed change(s) or to resume the proceeding as
if no agreement had been reached. This proceeding, under such circumstances, would resume at
the point where it was terminated. The Signatory Parties agree that these procedures are fair to
all concerned, and therefore, they are made an integral and essential element of this Stipulation.
None of the Signatory Parties shall be prohibited from or prejudiced in arguing a different policy
or position before the Board in any other proceeding, as such agreements pertain only to this
matter and to no other matter.
17. This Stipulation represents the full scope of the agreement between the parties.
This Stipulation may only be modified by a further written agreement executed by all the parties
to this Stipulation.
-10-
18. This Stipulation may be executed in as many counterparts as there are Signatory
Parties of this Stipulation, each of which counterparts shall be an original, but all of which shall
constitute one and the same instrument.
September 8. 2017 Date
5,*r:okc ~ ZD tr Dat
Date
Date
ATLANTIC CITY ELECTRIC COMPANY
By: ~.:;(.~ Colleen A. Fo~ Saul Ewing LLP Attorney for Petitioner
CHRISTOPHER S. PORRINO ATTORNEY GENERAL OF NEW JERSEY Attorney for the Staff of the Board of Public Utilities
By: AfuxMoeau Deputy Attorney General
STEFANIE A. BRAND, ESQ. DIRECTOR- DIVISION OF RA TE COUNSEL
By: Stefanie A. Brand, Esq. Director, Division of Rate Counsel
WAL-MART STORES EAST, LP/SAM'S EAST, INC.
By: Donald R. Wagner, Esq. Stevens & Lee Attorney for lntervenors, Wal-Mart Stores East, LP and Sam's East, Inc.
-11-
18. This Stipulation may be executed in as many counterparts as there are Signatory
Parties of this Stipulation, each of which counterparts shall be an original, but all of which shall
constitute one and the san1e instrnment.
September , 2017 Date
Date
Date
Date
ATLANTIC CITY ELECTRIC COMPANY
By: Colleen A. FoTey,;q. Saul Ewing LLP Attorney for Petitioner
CHRISTOPHER S. PORRINO ATTORNEY GENERAL OF NEW JERSEY Attorney for the Staff of the Board of Public Utilities
By: Alex Moreau Deputy Attorney General
STEFANIE A. BRAND, ESQ. DIRECTOR- DIVISION OF RATE COUNSEL
By ~.&i:u,e1r"''• 9ire~\or, D.ivisi;?'of Rate Counsel '
WAL-MART STORES EAST, LP/SAM'S EAST, INC.
By: Donald R. Wagner, Esq. Stevens & Lee Attorney for lntervenors, Wal-Mart Stores East, LP and Sam's East, Inc.
-11-
18. This Stipulation may be executed in as many counterparts as there are Signatory
Parties of this Stipulation, each of which counterparts shall be an original, but all of which shall
constitute one and the same instrument.
September 8 • 2017 Date
Date
Date
September 8, 2017 Date
ATLANTIC CITY ELECTRIC COMP ANY
By: Colleen A. Foley;<sq. Saul Ewing LLP Attorney for Petitioner
CHRISTOPHER S. PORRINO ATTORNEY GENERAL OF NEW JERSEY Attorney for the Staff of the Board of Public Utilities
By: Alex Moreau Deputy Attorney General
STEFANIE A. BRAND, ESQ. DIRECTOR- DIVISION OF RATE COUN$EL
By: Stefanie A. Brand, Esq. Director, Division of Rate Counsel
WAL-MART STORES EAST, LP/SAM'S EAST, INC.
By:
Attor y for htervenors, Wal-Mart Stores East, LP and Sam's East, Inc.
-11-
EXHIBIT A
PROOF OF REVENUES & RATE DESIGN
-12-
Adantie City Electric Company Development of Proposed Distribution !Qte Rate Cius Allocation of Distribution Revem.MI Requirements
Revenue Requirement Revenue Allocation
TABLE 3 Rate SeheduftSp4!Cffie Revenue Increase Alloeatioo
Rale Scheoo!e
Annualized Current OisllibtJtion Rever.ue Revenue Change (S) Proposed Revenue
Revenoo Crn!nge based 011 Annualized Cum,n\ Revenue (%)
43,000,000
]El&
$ 380,031.443 $ s 43,000000 s $ 423,031,443 '
11.3%
72.08% 9.0% 0.1%
MONTHLY MONTHLY GENERALSERV GENERALSERV
RESJDENTlAl SECONDARY PRIMARY
216,062,579 S 66,376,950 $ 1,639,845 $ "-:i0.99f3:jl1 ,S 3,as5,7M-. S sa:~ s
247,058,716 $ n,232,559 ' 1,698,193 ' 14.3% 5,6% 32%
14.7% 2.1% 0.0%
ANNUAL ANNUAL 1RANSM1SS10N GENERAL SEf!V GENERAL SERV GENERALSERV
SECONDA.RY PRIMARY SUB -TRANSMJSSION
58,503,820 S 10,954,728 $ 3,608,547 $ &~092 S 863JJ4j $ ' 64,837,912 $ 11,838,569 S 3,808,.547 S
10.8% "" M%
0.0%
TRANSMISSION GENERALSERV "TRA.<ISMJSS!ON
3,145,999 $
s 3,145,998 $
0,0%
ExhibilA ?age 1 of12
2.0%
STREET LIGHTING SERVJCE
16,775,396 S ~1,8'13 s
17,647,269 S
5.2%
0.0%
DIRECT DISTR1Bl1T10N .CONNECTION
563,579 {fil
563,579
'·""
Atbntle City E!Ktric Com~ny DeveloprnentofProl)OSOO Distribution Rats Rate ~n Worksheet
ReteSctiedule Datriblllion Fu!ldm!at Revenue Requirements Total (Wfo SU'T) Distnblltion Functional Revenue Requiramen:S Tot.I ttll Sl.11}
,,., .. CUSTOMER
SUM'Rrst750KWh SUM'> 750 K'M1
WIN
TOTAL ENERGY
TOTAL REVENUE
3
'"~" Ois:tribl.lfion Billing Determirnmts ·~~ (includ!ng SUTI
5,818,880 S. 4.44 $
1.129.153,949 S 0.050245 S 7$4,158,441 ' O,OS7764 S
2,223.359,616 S o.~6361 • 4,136,672,006
' curre11.t Distribution ,_
fwfoSUT)
$ s
4,15 S
0.0(7013 $ ,....,.. ' 0.043379 $
!
RS 247,058,716 264,044,003
5 caleulated Rate Cbss
RtV8<1UI! under Curnnt Olsa1bution Rates
(WloSUTI
24.U8,352
53,084,915 ..(2.382,19S
96,447,117
191,914,227
~
Prop~ Oisttlmtlon Recawry under Propo:sed · ..... Distribution Rates (wloSlffi (wfoSU1)
... s 27,222.830 '
s O,OSUS3 $ 00.808,328 $ $ 0.001911 s 48,543,033 S
0.049690 $ 110,478,739 S
' 219,535,100
247,057.931
• Pro~INfRatt
!Including SUT)
5.00 S
O,OS7555 S· 0.066167 S
0.053100 $
' '
' Reeoveiy under Proposed
Oiwiblltion lt:ltes Gncluding sun
29.og.(,.,(00
64,SS6,4S6 51,885,412
118.073.736
234,947,603
2~12iP03
zooo
10
Distnlwtion Ible Change
• ,,. , .. , .. , ..
"'"'' Page2of12
Atlalllit Cly Elec:trlc Company Devalopment of Proriosed D1stroution Rate Rale Design Worksheet
Rate Schedule MGS SECONDARY rt<Stliiulion Functional Rf)V()llue Re(luirem\!rtls Total f,:N/o sun S 72,232,659 Oisbibufion Fundional Riwenue Re<tuiremenls Total {w/ SUT) $ 77,196,654
BLOCK Billing Dttl!rminants
CUSTOMER SJ!!lle Phase Ser.'ice 3P)lze$er,iet,
DEMAND CHARGE • All kWs
'"-' 'Mnler
REACTIVE DEMAND
ENERGY CHARGE Summer Winter
TOTAL
Ptm;ind Charne Rare Qe5Jqn Demand Chaf!le at Full Coot (w/o SUT) Prooosed Distriboion Rate lnaease Oemarx:I Chame at 1,5 times proposed dass Increase %
summer
W•"' Y91mnPlric Charoo Bale Ptsinn Current Average Vo!ume!rie Rate (SA:.Wh) Ratio of Summer Rate to Awfl!pe Ralio of Willier Rate to Allflraiie
Proposed Volurneb1c Dislribution Revenue
Prop,o,sedAwr.iAe Volumelric Role (Sll:Wh)
ProPOSCd Winter Volumetric Rate <SMMil Proi:,oS9d SummerVa>tumelllc Rate (SMM!l
511.451 s 167,914 S
2,413,771 • 3,614,652 S
63,515 S
519,763,298 S 714,057,570 S
1~~US0i!67
5 6 1 Calculated Rate
CUIHl\t Current Cl.is.s Revenue Proposed Oistnbution D~ribution underCument Distribution Re<:oveiy un<Hr Propo$ed
""'' 5.64 ' .7.05 S
1,90 $ 1,56 S
.. , s
O.OSCMl4 ' 0.045558 $
""'' {w!oSUTJ
"' ,., 1,76 ,.., 0.43
0.047190 0.042627
5,49 ,,. ·$ 201 S 1.65
' O.o«549 1 ,059263037 0.956856495
Distribution ~es (lldoSIJTI
2,700.461 1,108,232
4,296,513 5,277,392
27,311
24,527.GSO 30,439.411
' sp1uso
.... Distribution Rat!$ fwloSUT\ twfosun
' ... ' 4.1:W,676 S
' "' ' 1,578,961 S
s 201 s 4.851,681) S s 1.55 S 5,964,176 S
s 0.47 S. 29,621 $
s 0,047797 S 24,6'!3,110 $ s O.D43175 $ 30,830,930 $
• 72.23).176
s ~1n
55,673,523 (:Pfoposed Total Distribution Revenue- (CustomerRevemm .. 0;imand Revenue))
S 0,045122
s 0.047797 f.;Prooose,;J AVl.ll>IQe Rate x Summer to Avel'S!le Ratio) $ O.D43175 (=Pr~ Averasie RatexWinterto Ailer~e Ralio)
'
• Proposed Rate
finelu<fing svn
6,64 $ 10.05 S
2.15 S 1.76 $
0.50 '
0.051083 $ O.D4G144 S
' $
9 10
ReGOV1try under PropOSed Distribution Di51rrbution
Rates Rate Change (lncludfl\Q sµn %
4,.(18,937 53.2" 1,687,536 "-"' 5,189,608 13.2% 6,361,788 12.8%
31,757 .,,. 26,551,069 1.3~ 32,950,857 '·"' 71,191,551
7,103
Exhib!IA Pag!30f12
Atl~ntlc Citv' Ele,;tri,:: Company 0-lOPment of Proposed Oisln"bution Rate Ratetlesi!lnWotl<stlet!t
Rate Sdl&dute MGS PRIMARY Oisbibulion Functioool Revenue Rll!uir,msrrts Total twlo sun s 1,696,193 Distribl.!lion Functioool Revenue Recit.irall\flflls Total wsun $ 2,028,694
2
BLOCK Bming DekmiMRtS:
CUSTOMER Sifl!lle Phase Servioe 3 Ptiase Service
DEMAND CHARGE SUM>3KW WIN>3KW
RcACTI\IE DEMAND
ENERGY CHARGE SUM<300KWh 'MN<300KWh
TOTAL
P..flE!Dd Cha!V" Bf!le Prikm Demand Cllame at f'ulf Cost (wlri sun Proposed Oisln'bution Rate Increase Demana' C!lame at 1.5 times prooosed class lnouse %
Summer Wonter
Volumetri.; Ch;mre Rite i>.ta'lll Current~rai;e Votumebic: Rete ($1kWhl Ratio of Summer Rate to Averepe Ralio of Winter Rate to AveraAe
Prol)OSed Volumetric Oi$1ribu'lion Re-venue
Pl'oposed AYelalll! Volumwic:: Rat@ {Stt;.Whl
Prooosed WinterVolum'!tric Rate (!,{,(Wh) Ptope,sed SumrnerVolumetrieRate lS/k.Wb}
"' $ 643 $
66,919 S 124,552 $
43,73$ S
16,299,110 $ 21,591,6-42 S
37.H0753
' cu~nt
Distn'bution ..... 5.32 S ... s
1.53 $ 1.19 $
o.43 $
0.(l,fS258 $ 0.(),(3956 $
s s
4
Cu~nt Distribution
Ratu fw/oSUT)
.f.98 S 6.21 $
1.43 S 1.11 $
0.40 S
0.042347 S 0.041128 S
'·" 4.&%
1.53 1.19
'
' caleutated ILttf: Class Rew,nue underCu!TE'nt
Dlstn1Mion Rates fwloSUD
3,312
"'" 96,55"
13!:1.253
17 .....
690,216 688,021
1,839.145
.
• 7 • Proposed Recovery under
DistnDutlon Proposed Distribution
"''"' Ratu Propo~Rate (wfoSIJJ} (wlosun C111dudln9 sup
s 1,(,33 S 9,532 S 15.32 $ $ 1557 $ 10,011 • 1a6" s
' 1.53 $ 105,445 S .... ' $ 1.19 S 148.217 :S 1.27 $
s 0.42 :S 18.3$9 S OAS $
S 0,043108 $ 702,630 $ 0.046072 $ S 0.04100!! s 903~0 S 0.044746 $
• 1~9!!,195 ' 12) s
S 0.041652 1.010085873 0.987,(19572
1,006.618 {EProPOSOO Total Oisbibution Rl!'1enue - (Cuslllm&r Revenue +Demand Revenue))
0.042401
$ 0,0431Cll (=PrcPOSed A-.eraQe Rate x Summer to AveralJI! Ratio) S 0.041868 (:Propc,sed Avef3!IO RatexWinlerlO AwraAa Raliol
'
' 10
Re<:DYf!ryunder Proposed Dism'bution Distribution
Rates Rate Chang11 finciudingsun •
10,188 166.0% 10,700 150.6%
113,026 72' 158,181 .,.
19.681 4.7%
750,933 1.8% 966,140 1.6%
2tG28:'" (1S4)
ExhhlA ?age.fof12
Al:lantlc City Eled.ric Comiqny Development of Proposed Dis1nbu6on Rate Rat.e OesQn Worksh.!at
Rate Schedule AGS Secc»,IOARY Disln"bullon Fundio~I Revenue Requiremel!IS Total (W/0 sun S 64,337.912 Oislnbullon Fonctional ReVtJnueRequiremelllsTolill (WISUT) S 69.29S,S18
BLOCK
CUSTOMER
DEMAND CHARGE
REACTIVE QEJ,WjD
TOTAL REVENUE
91mrn!'rChame Mt Pr:dnn
Billing Determinants
43,0$9 S
6,315,199 S-
48<"4.
cust Chaf'lle at Full~ cwto sun .
Proposed 06tri!lufion Rate Increase
Customer Cha!Jl!r at Prooosed Jnc;rea'"' %
PrOl>OS9d Ctlstomer Chafll&
°'""" Di:strtbution Ratu
151.25
.e.tl2
051
(Minimum of Full Cost Chari:ie or Chama at% i'lcrease)
PfllOOSl!d Customer Chaille Revenue
Proposed Demand Related Revenue
Dem,ind Relaled Rever.ue Increase ($)
Demand Related Revenue lnereage (%)
' s
' 5 C:alcultted Rne Class Cum!nt
D<Wibution
"''" (wtoSUT)
141.52 S
6.25 s 0.63 $
s
159.23
10.8'1,
156.84
156.64
6,758,079
Revenlke under CUmmt Distribution
Ratu ..,.S1JT)
8,097.955
~100,383
305.477
~50li!;20
S 513,079,833
s 5,673,969
10.8%
'
' 5
5
' Prcliminary Distribution
""' IW/oSltT)
156.84 $
9.14 $
0.70 $
'
7
Recovery under Preliminary
Disttlbutian ~es Proposed Rate (wfo sun finc:klding sun
6,758,079 S 167.62 S
57,720,914 S 9.n s
339,419 S. 0.75 S
64~11d12 ' (19,500) s
" Rec:overy lfflder
Proposed Distriblltion Oisui,ution R.rtes ~Change
onc:klding sun ~
1m.f,78 '"' 61.$99,489 10.8%
:m,863 11.9%
59!3!~730
(9,78&)
""°'A Page5of12
. Atlantic City Electric Company DevelOl)lllem of Proposed Distril:noon Rate Rate Desiiln Worl\sheet
Rate Sdilldute AGS PRIMP.RY Dis:lrib!Jtion Functional Revenue RequhmentsTotal (.w/o $Lil) s 11.83l3.569 DistnMon Functional RC\ll!llue Requirements Total (wlSun s 12,652,471
2 3 ' 5 Calculated Rate Class
B~f,ng BLOCK Determinants
CUSfOMER 1.495 S
OEMANO CHARGE 1,479,2112 $
REACTI\IE DEMAND 312.586 $
TOTAL REVENUE
Cust6rrl@r cturoe R;rtt QMign
custCharae .rt Fun cest (w/osun
Prol)OSed Dislribtrtion Rale tnere81;8
Cusl<lme, Ch3f!l& .rt Proll0$00 lncreasa !4
PropoSed CUstomer Chari:ie (Mnimum of FuU Cost Chame or Charge at% increase)
F'rpopsed Cuslomer Chal!'le Revenue
Prol)l)SOO Demalld Related RCWllue
Demand Ralated RevenueJnCfease ($)
Demand Related Revenue lncreaso (%)
c, ..... Distribution -
56025 $
7.24 S
0~ S
$
$
s
c, ..... Revenue under Distribution Cu/Tent Di5triblltion ..... -(wfoSUT] (wloSUT]
SH.Hote.1
S2421 ' 763,694
6.77 $ 10,014,742
0.50 $ 156293
' 10~721
680.95 ... 560.50
$'6.$0
8'6,818
10,001,652
820.617 ...
'
• 7 • Pn!linlinary Recowtiy under Oi.stribution Pttliminary .... Oistn"bution Rat-es Proposed Ro1te ,-,,sun fwJosun fincb:lin!;I sun
s """ . MS,9111 $ 605.45 $
' • 7.32 $ 10,628,347 $ '-" ' ' 0'4 S 1611,79el S 0.50 '
•S 11.~0&1 • s ''" •
' '° R,co~ryunder
PropMed Distn1ltrtion Distribution !Wu Rllte Change
(includin!;I sun •
905,148 .,. 11,567,986 aos
1111.299.72 9.4%
"'''-'" 1,965
Exhibit A ~6of12
Atlantic: City e~ COmpany Dtwlopment of Prooosed Oistibution Rate Raia ~n Worksheet
Ral9Sehedute TGS SOB TRANSMISSION Distribu5on Function:al R01VOOue Rfl!liirnmants Total (w/o sun ' 3,808,547 Oistibuion Funcliotlal Revenue Re,qu'rements Total (w/ sun s 4,070,385
2 ' ' s Cakulat<1d Rate Clau
Cum,nt Cum!nt Rewn~und<!r BINing Oistribution DistriblrtJon Current Distribution
BLOCK 0tt<1nnin:alnts - ..... ..... (w!'oStm {wtosun
~Note1
CUSTOMER <5000KW
'" s 137.29 S 128.46 ~ 41.621
5000-9000 KW n ' 4,546.92 $ 4,254.43 ~ 30$,319 ,.,.,l(W n ' $,253.86 $ 7,722.91 $ "'"" OEMANOCHA.'l:GE <SOOOKW 344,678 S "" s ,., s 1,271,862 5000 • 9000 KW 2'2,360 $ 3.03 $ 2.84 s 830.302 ,.,.,l(W 471,166 $ ,.,, $ 1.42 S 669.056
REACTlVE OBMNO <SOOOKW 100.308 S "" ' °'' • 54,217 5000. 9000 KW
""" s 0.54 $ 0.51 ' "·"' >9000KW 96,166 S "" . 0.51 $ 50,075
TOTAL REVENUE • li;!08~7
'
' P~limillary Oismbutlon -(wfoSUTI
• 129A6 S $ 4,254.43 $ s 7,722.91 $
• "'' $ • '-" s s '-"' . s 0.51 $ s 05' • s 0.51 •
'
7 • 9 " Racawry under Recovery undtr
P~liminary P~Oistribution Oistn"bution Distribution Rates Proposed Rate Rates Rate Change
(wloSUTJ fmcluding sun rincluding sun •
41,621 • 137.2$ S "'·"' 0.0% 306,318 $ 4~92 $ 327.:m "" 556,050 $ 8,25:J.66 S 594.278 0.0%
1.271,a52 $ 3.94 $ . 1.358,031 0.0% 830,302 S 3.03 $ 685,651 0.0% 6(19,056 S 1.52 S 716,172 0.0%
54,217 S "" s 57,406.32 , .. 29,046 $ "" . 30,7S4.62 0.0% 50,075 S "" ' ""'" 0.0%
l.lO!!S47 $ ~67~7.l
ExhibitA Page7of12
Atla.ntic Cit)' Eledrlc Company Dev,,,lomicnt of Pteposed Oistn'bulion Rate Rm DesiAn.WO<kmeet
Rate Sdiedu~ TGS TRANSMISSION DislribUion Function;! Revenue ReQUlcements TQ!al (wfo sun ' 3,145,998 Pn:IJ)OSed Ctlstomer Ch~rne RE!<:OYelV ' 3,145,998 Proposed DMlandJEne!JIVCharne Recovery ' Disbi>ukln Functional Rewnue Requirements Total (wfSUTI • '""""'
' ' ' 5 ~kutated Rate Class
c=m ........ Rtvtnue undtr BcTl'lg Dis«ributit)I! Oistribtrllon Current Oistfi>ution
BLOCK Oetenninants .... ... 6 -1w1osun (w/oSLIT} . Hoh-1
CUSTO!.ER <5000KW ., $ 133.60 $ 125.01 • 7'01 5000. 9000 KW " ' -4-,'124.86 S 4,1-4-0.22 S 248,413 >9000KW " ' 20,Cl&l.75 $ 18,789.01 ' 1,578,277
DEMAND CHARGE <SOOOKW 813,519 $ 3.07 S 2.87 S 2.(lj,310 SOOO. 9000 KW 352,209 • ,,, ' 221 ' na,382 >OOOOKW 846,213 S 0.15 S 0.14 S 118,-4-70
RcACTM:D~ll <SOOOKW 57,993 $ 0.52 S 0.49 $ 28,.t17 5000 -9000 KW 97,594 s 0.52 S 0.-4-9 $ 47,821 >9000KW 184,508 S 0.52 ·S o.49 $ "'·""
TOTAL REVENUE ' 3145.9:SB
'
• ; ' Pn.rminary RtCOW!I)' 11ndtr Oistnlxrtion Prefmi11ary ... Distribution Ratu Proposed Rate
(wfo SlJT) (wloSUTI firu:[udlng SlJT)
' 125.01 ' 7.501 ' 133.60 $
' 4. 140.22 $ 2-4-8,-4-13 .S -4-,-4-2-4-.86 S S 18,789.01 $ 1,578,277 $ 20,0l!0.75 $
5 2.87 S 2.(lj.310 S 3.07 $
' 221 $ n,.,., ' ,.,. $
s 0.14 S 118,-4-70 S 0.1S S
$ 0.49 S 28,417 S 0.52 5
' 0.49 S 47,821 S 0,52 S
' 0.-4-9 S 90,«>9 S 052 S
' 311~98 '
' 10
Racaveryundtr Propowd DiSll'ibution Distribllticn
Rates Rat@ Cbangt lindulfnii SIJT]
• 8,016 0.0%
"'"' 0.0% 1,688,783 "'"'
265,613 0.0,. 831,213 0.0%
"'"" 0.()%
30,156 0.(1% 50,7,«I '·"' ,,.,..
'·"'
3.'50i!S9
Exhibit.A Page8C1f12
< • ;\i
·"----------··-__________ " ______ _
j 1ji~~i~q~iBs~s~~~~~~~~~';!!~8z~~~~~s~~ij~mi~ga~~i~~i~~~~~~~~al ! , (~~~~&~U*~i!i!Oiij~~~~~g,~~UH!l!i*iU~i!HU~i\H~W~~ij~m, .I! i;; ... ·,.;g8r.i't ~~llfr;~_~g~~~:!d~i!.,;~Wi S"'fHf.!f~Ri~!i~~~W!'1S~"11iSrJ°~t~a~~~ - .,.__ ~ ""
•"'•R••·---~ ................................. W .. WWRRRR ... RWW..,RRR ..................... R ... m .... , ...•....••...... ,, ....... ,_.,,.-, .. ,,.,-, .... . - oo..,1,1 1113,,_..,:J_;,;_ -,~ .. ;:l(tj_ !:1<1J/;;1)'..,.1ili1~\ii'l"'r-<•H::-&.,,,._ ~l'I
~..: ,.;,: .,;-·';!!".- <d<'i-· ,: "' "'
I •
... .,,, ......................... ~ ...... .,. ................. .,. ................................................ ., .................... ... ijE=w~~n~~~~~~rn~ij~~~s~~;~~sa~~~~~m~~~~~~~~~i~~i~~~~mm~~ B u~~!~s~~~~~~~~~an•~~~,~~••~~•~,R~=~~~R~~~R~-~~~~Ri~~~ "' f.,. ........................ ., ................................... ...; ................................ .;. ... .:..,;,.,..,..;. ..... .;. ......... ...
Ji 2~~i~t~~=~iao~,2~~s~sa~s~s2~!'il~~~as~as=!llsi~=mas~sm~*~••~ ahU~!~~~!~~~~m!~;s~J~t~!~~~~~~;1~~~~!ij~fiii!f~,i~~l~'~~~
,( !il- 1"-j,<'-l*o"!-6!~111 «'qJ> l«~-- 1<1--- ... --;J... .. __ .,, '" ,.._ ,: "i. ::
"'"'"~w ................ ~~ .............................. RM .................... ~~~----"'"'•"'"'_ ............ 1 !~!""•~····~ •• ~~fi!•••~•·a~m·•·i •• i~,lli;,~~~ •• ;,;;.,:~•.~.~ 'I): - ,__ u,..:~o,·,,;<4f',.., ..:,...... "' !!if
i • iJ~2~S~~S~~O~S~~8S$8GijS~im~S$~~~~~~S~~~~~~~~~ffl~~~~~i~R! c!J t;,; "'eZ·:!! .,.!! ~ AllllZ~J::i ~:;:; =:::: f<l:!'.! fH3 =~•=':l l<l~ \!! ~~~~ ~(:: ~ ~~;;i~ !ll:t';(i;. \:!~!Q :ilt" ~ !;i;i
1 ................................................................................................................................... ... lj ~20:::~~~~~s~~~~ijR~~~~s~~~!Q~~~ss~s~~R~~Jm~~~m~i~G~~s~~ J
1~s~~~P~Nq~=R:::::=~=R~,.~=d~d~~~~•~f~(::~eA~~~~=~~i=~"=AR~
............................... ..; ..... ., ....................................................... .:. .................... -...... .:. .. ..
... ..................... ..
• !'"8"""""! ~ 1 urn,~--~-~•t;a · !",U~•r. • -"ij [
.................. ~, .... ..
BIi "'"' ..
],ill~· ,t 1~!
...
Atlantic City Electric COOIP'lnY LEO Slr<!i!ll.inhtina Rate DeSQl1
"" Cobra HNd ~ Equivalent Ugh! Size (#a~}
sow 70W mow ,sow ,sow ,sow
Disllibulion 3'r.;ttm Fc<ed CM me ' 2.83 S 2.83 ' 2.83 $ 2.'3 ' ,.., s 2.83
Moolhlv Ll!lht Fci:ture f"l(eO Chame ' s:n s .,. ' 6-35 s .,, s ..,, ' 18.39"
MonlhlyO&M Charge· Non-lulrinaire Overhead/VndellJrOond L.....Ql! $ 0.25 ~ L......!@. ~ ~
Total ChalW!. Overhead ' 8.85 S 9.17 S 9.43 ' 10.01 $ 11,48 • 21.47
Regulato[}' ~nt .LJJ& L...Sm.. L...2:.Q! s o.ro !.____!!Q! L_Q,Q§_
Total Rate 'Mll10111 sur ' .... 9.20 $ 9.45 S 10.03 S 11.52 ' 21.53
Total Ral!!'o\ih sur {8.875%) • 9.49 $ 9.8) S 10.10 S 10.72 S 12.31 s ""
'
PosiToe Shot84x Eqt!Haltnl ~M Sitt {Walls} Eqllr,'2Je¢Ui,M~~-tt$l
row ,oow ,oow ,sow 250W
' 2.83 S 2'3 s 283 $ 2.83 S Z,3 s 8.68 S 926 S 7.32 S 829 $ ... s 0.2S ~ ~$ 025~
s 11.76 $ "-" S 10.'IO S 11.37 $ 11.89
~~ $ 0.03 $ O.G3 !.......Ml
• 11.7!1 $ ''-" $ 10.43 $ 1UO S 11,92
' 12.61 ' '"' S 11.14 $ 12.18 $ 12.74
TufD!!!:£!
,oow ,sow
' zs, s ,., ' 16.71 S 15.71
~~
' 19.79 S 19.79
~~
s 19.85 S 19.85
' 21.21 ' 21.21
,sow
• 2.83 $
FIQOG!J.ghting
250W 400W
&tiibltA P~ge10of12
,ooow
2.83 ' 283 $ 2.83 $ 11.50 S 12.09 S 14.36 $ 15.06
~~~~
S 14.511 $ 15.17 $ 17.44 S 18.14
LJ!:9± LQ&i ~ L.Q&
$ H,62 S 15.22 S 17.49 S 18.19
$ 15.62 S 18 26 S 18.&9 S 19.44
Atlan6c: Citv Electric Company LEO Snetlie)mrlg Ible 0&$igr1
o,J.
Distrl>utio!I System F"o:ed Charge
Monthly O&M Cha/ge ~ Non-Lumi'lare
TotalO\arge
Regulatory A5SeSSmenl.
Total Rll1e wihcut SUT
Tota1Ra!ewilllSUT(M7S%)
"""""' EquM!]ent light Sb:e (Walls) sow 70W 100W 150W 2'0W 283 s ,.., . ,,, ' .., ' "''
L.....Q:fi~~~~
"" . 3.08 S "' ' 3.08 3 ,., .L...M1 !........!M!1 L-M!. L____Qfil !.._____Qfil
3.0S 3 3.09 S "' ' 3.0S $ '·" ,.,, ' ,.,, ' 3.30 S 3;!0 $ ""
- P05lT22 Eqij,~! Ug!:I Siu (Wall"I)
150W ,ow ,oow • ..,
' ,.., ' ,,, ' 025 L_____Q& ~
' "" ' 3.08 $ '·" • O.Ot ~:1...__..Q,!!!_
$ ,., • ,.,, . '·" ' "' s 3.30 $ "'
..... , Tearl)fnp Et¢,'alent Ught Sli:e (\,V~!I$) 100W 1SOW ,.,w 100W ,sow
' "" ' 2.83 $ ,,, s 2.83 S ,.., ~L.2,?i~ ~~
' , .. s 3..09 $ ,,. ' 3.08 $ '·" !......Qfil. L..M! !....Ml L...___Qfil L-9.!ll.
• "' . ,.,, ' '°' s "' ' '·" s 3.30 S 3.30 $ ,.,,
' ,.,,, ' ,.,,,
1SOW
' "-" . flooclJ!:gh!!!l:!l:
250W <OOW
E>:l~"bltA Psge11 ot12
1000W "-" . ,.., . 283
~~ S 025 S 0.25
s 3.D8 S 3.09 $ 3.oa $ 3.06
LQ,Q!_ 1.......M!. 1.......W.. L£&
' 3.0, • ,.o, s 3.09 $ '·" ' ,.,, s 3.30 $ 3.30 $ ,.,,
08/13/2017 03:28 . '2 ••1- " '""M :;p. I . ,I;·/ J: )Cl
,,.;,., .,,,, t··•,f'-. r •... -
SEP 1 2 2017
State of New Jersey OFFICE OF ADMINISTRATIVE LAW
INITIAL DECISION
SETTLEMENT
OAL DKT. NO. PUC 04989-17 AGENCY DKT. NO. ER17030308
IN THE MATTER OF THE PETITION OF ATLANTIC CITY ELECTRIC COMPANY
FOR APPROVAL OF AMENDMENTS TO ITS TARIFF TO PROVIDE FOR AN INCREASE
IN RATES AND CHARGES FOR ELECTRIC SERVICE PURSUANT TO N.J.S.A. 48;2-21
AND N.J.S.A. 48:2-21.1,AND FOR OTHER APPROPRIATE RELIEF (2017).
P.h.iJin,.. I_P;issao;:rotp_p..s;socia!.E'l.J'-.eoP.mLf' .oum1eL.f'lr..n¢W.00Rr.A+raaticJ",iht,.F.!ectrir.~
Company (Wendy Stark, General Counsel)
Colleen A. Foley, Esq., fer petitioner Atlantic City Electric Company (Saul Ewing,
attorneys)
Alex Moreau, Geoffrey Gersten, and Veronica Beke, Deputies Attorney General, for
11:!~pond1:ml, B0c11d of Publi<,; Ulililll:!:; (Cl11il;lupl11::1 S. Puni11u, ALLorriE:ly General
of New Jersey, attorneys)
Ami Morita and Lisa Gurkas, Assistant Deputies Rate Counsel, for Division of Rate
Counsel (StefanieA. Brand, Director)
New Jersey is an Equal Opportunity Employer
Sep.12.2017 3: '.3PM No. 6360 P. 2/35 OAL DKi. NO. PUC 04989-17
Bradford M. Stern, Esq., for Intervenor Unimin Corporation (Rothfelder stern,
- attorneys)
Donald R. Wagner, Esq., for Intervenor Wal-Mart stores East, LP, and Sam's East,
Inc. (stevens & Lee, attorneys)
Joseph F. Accardo, Jr., DepLJty General Counsel, for Participant PSE&G (Tamara L.
Linde, Executive Vice-President and General Counsel)
Lauren M. Lepkoski, Esq., for Participant JCP&L (FirstEnergy) (Leila L. Vespoli,
Executive Vice-President and General CoLJnsel)
Steven S. Goldonborg, Esq., for Partioipant Builder's League of South Jersey (Fox
Rothschild, attorneys) .
Record Closed: September 11, 2017 Decided: September 12, 2017
BEFORE JACOl3 S. GERTSMAN, ALJ:
This proceeding involves a petition by the Atlantic City Electric Company
(Company) to increase its rates and charges for electric service, and other relief, with the
Bor:lrd of Public Utilities. The petition was transmitted to the Office of Administrative Law
on April 12, 2Q17, for det:rrninatio,, as a contested case, and assigned to the Honorable
Ella A. Pellos, ALJ, who conducted the initial case management conference. The matter
was reassigned to the undersigned. Dufy-noticed public hearings were held in Mays
Landing, New Jersey, on June 28, 2017. Several members of the pLJblic appeared at the
hearings, and spoke in favor of the Company's proposed increase. No members of the ,
public spoke in opposition to the Company'& proposed increase. All comments were
transcribed and made a part of the record.
2
Sip, 12. 2017 3: '3PM OAL DKT. NO, PUC 04989-17
No. 6360 P. 3/35
A motion to intervene was filed on behalf of Unimin Corporation on May 12, 2017,
arn.l Wal-Mart stores East, LP, Sam's East; Inc., (collectively Wal-Mart) on June 8, 20·17.
Both ~nimin Corporation and Wal-Mart were granted intervenor status.
A· motion to intervene was filed on behalf of Builder's League of South Jersey
(BLS) on June 16, 2017. Petitioner filed a response in opposition to the motion to
intervene while. supporting participant statlls. BLS was denied intervenor status and
granted participant status.
A motion to participate was filed on behalf of Public Service Electric and Gas
Company (PSE&G) 011 May 8, 2017, and oh behalf of Jersey Central Power and Light
Company/First Energy (JCP&L) on May 9, 2017. Both PSE&G and JCP&L were granted
participant status.
The parties filed on September 11,. 2017, a Stipc1lation of' Settlement (J-1) which
resolves all issues in this proceeding. Said Stipulation of Settlement has been signed by
petitioner, respondent Board of Public Utilities, Division of Rate counsel and Wal-Mart stores
East, LP, Sam's East, Inc. It indicates the terms of settlement, and is attached and fully . . incorporated herein.
I have reviewed the terms of settlement and I FIND:
1. The parties have voluntarily agreed to the settlement as evidenced by their ~
signatures or their represent<:!tives' ~ignatures on the attached document.
2. · The settlement fully d[sposes of all issues in controversy between the parties
and is consistent with the law.
I hereby FILE my initial decision with the BOARD OF PUBLIC UTILITIES for
conside1·ation.
3
Sep.12.2017 3: 'r3PM No. 6360 P. 4/35 OAL DKT. NO. PUC 04989-17
This recommended decision rnay be adopted, modified or rejected by the BOARD
OF PUBLIC UTILll 11::S, which by law ls author~ed to mal<e a final decision in this matter. It
tile Board of Public Utilities does not adopt, modify or reject this decision within forty-five
days and unles~ such time limit is otherwise extended, this recommended decision shall .
become a final decision in accordance with N.J.S.A. 52:14B-10.
September 12, 2017
DATE
Date Received atAgency: -d "/,,., .
Date Mailed to rarties:
Ind
4
Sep.12.2017 3:13PM No. 6360 P. 5/35 OAL DKT. NO. PUC 04989-17
APPENDIX
EXHIBITS
Jointly Submitted: J-1 Slipul;,i(iorl ur Si:,llli:,m~nt
Letters Expressing Lack of Objection to J-1:
l-1 Submitted by Intervenor Unimin Corporation 1-? 811hmittP.rl hy P.irtir:ip.int PSF&G
l-3 Submitted by Participant Builder's League of South Jersey 1-4 Submitted by Participant .JCP&L
5
Sep, 12. 2017 3: !3PM No. 6360 P. 6/35, .
. STATE OF NEW JERSEY
BOARD OF PUBLIC UTILITIES
IN THE MATTER OF THE PETITION
,· .
ZOil SEP I I A 10, 2 5
OF ATLANTIC CI'rY ELECTnlC
~1T.:~:·E Of:- H!:Yl ,Jft~Sf::Y G?f !GE CF t~LJM/N L~\W
DrUDOCimT NO. ER170303118 , : COMP ANY FOR APPROVAL OF AMENDMENTSTOITSTARlFFTO PROVIDE FOR AN INCREASE IN RATES AND CHARGES FOR ELECTlUC SERVICE PURSUANT TO N.J.S.A, 48:2-21 AND N.J.S.A, 48:2-21.1 AND FOR OTHER APPROPRIATE RELmF (2017)
APPEARANCES:
OAL l>OCKET NO, PUC 04989·2017
. STIPULATION OF SETTLEMENT
\Vendy E. Stark, Esq., Vice President & General Con11sel, Clark M. Stalkel', Esq., Associate General Counsel, Philip J, Passanante, Esq., Assistant General Counsel, and Colleen A. Foley, Esq. (Saul Ewing LlP), on behalf of Atla11tic City Electric Compa11y, Petitioner
Alex Moreau and Veronica :Seke, Deputy Attomeys General (Christopher S. Porrino, Attomey General of New Jersey), on behalf of the Staff of 1:he Bofttd of Public Utilities
Stefanie A. Brand, Esq,, blrector, :Brian O. Lipman, Depnty Rate Counsel, Ami Morita, Esq., Deputy Rate Cotmsel, bia11e Schul:i:e, Esq., Assistant Deputy Rate Counsel, James W. Glassen, Esq., Assistant beputy Rate Counsel, Knrt Lewandowski, Esq., Assistant Deputy Rate CoU11sel, Maiua Caroselli, Assistant Depnty Rate Counsel and Bl'ian Weeks, . Esq., Deputy Rate Counsel, on behalf of the Division of Rate Counsel
BTadford M. Stern, Esq, and Mal'tin C. Rothfelder, Esq., Rothfelder Stern, L.L.C., on behalf of Intervenor, Unintin Corporatim,
Donald R, Wagner, Bsq,, Stevens & Lee, on behalf of the Wal-Mait Stores East, LP and Sam's East, Inc,
Joseph F. Accardo, Jr,, Esq:, on behalf of Participant, Public Service Electric and Gas Company ·
Lauren M. Lepkosld, Bsq., on behalf of Participant, Jersey Central Power & Light Company
S;P· 12. 2017 3: 14PM No. 6360 P. 7/35 '
Steven S. Goldenberg. Esq., Fox Rothschild, LLP, on behalf of Participant, the Builders League of South Jersey, Ilic.
TO THE HONORABLE BOARD. OF PUBLIC UTILITIES:
The pa1iies to this proceeding are as follows: Atlantic City Electric Company (the
"Company," ''Petitioner" or "ACE"), the Division of Rate Counsel ("Rate Counsel"), the Staff' of
the New Jersey Board of Public Utilities ("Board Staff' or "Staff'), Intervenor, Unin1in
Corporation C'Unimin"), lntervenors, Wal-Mart Stores East, Ll? and Sam's East, lnc. (together,
"Wal-Mart"), Participant, Public Service :Electric and Gas Company (''PSE&G"), Participant,
Jersey Central Po:wer & Light Company (''JCP&L"), and Participant, the B1Jiklers League of
South Jersey, Inc. ("BT.SJ"). The New .Terney.Board ofPuhlic Ut\liti.e.~ shall be referred to in this
Stip,1latio11 of Settlement (the "Stipulation") as the "Boru-d" or the "BPU." As used in this
Stipulation, the te11n "Signatory Parties" refers to the Petitioner, Boru-d Staff, Rate Counsel, and
W~l-Mal't.
FROC:El>DRAL BISTORY
Petitioner is a corporation organized and existing under the laws of the State of
New Jersey, subject to the j'm-isdiction of the New Jersey Board of Public Utilities (the "Boatd"),
with a regional offi.c.e located at 5100 Harding Highway, Mays Landing, New Jersey 08330. On
March 30, 2017, the Company filed ·a Verified Petition with the Boru:d pursuant to N.J.S.A. 48:2-
21 and N.J.SA. 48:2-21.1 seeking a net aroma! increase in the Company's base rates for electric
distribution service of approximately $70.2 million, excluding New Jersey Sales and Use Tax
("SUT''), and to make other tariff changes.1 The Company :filed its Petition based on a test year
ending July 31, 2017, consisting of five months of actual results and seve11 months of forecasted
1 Specifically, the Company sought an increase in distribution rates of $70,160,580 ($74,808,719, including SU'l).
-2-
St-P· 12. 2017 3: =4PM No. 6360 P. 8/35
data. adjusted for ce1tain known and measurable cha11ges. On August 29, 2011, the Petitioner
filed revised schedules reflecting the Company's actual results for the 12-month test year period,
adjusted for lmown and measurable changes.
On April 5, 2017, the Board transmitted the matter to the Oftloo of Admi.nistrutive
Law as a contested case, and Administrative Law Judge ("ALJ") Elia A. Pelios was assigned to
hear the case. A telephone Pre-Hearing Conference was convened by ALJ Pelios on May 23,
2017, and a Pre-Hearing Order was issued on June 19, 2017. On June 26, 2017, the parties were
notified that the case had been reassigned to ALJ Jacob S. Ge1tsman.
On May 8, 2017, PSE&G filed a Motion to Pal'ticipate. On May 9, 2017, JCP&L
filed a Motion to Participate. On May 12, 2017, Uninlin filed a Motion to lntervene. By letter
dated May 16, 2017, the Company h1dicated that it did not oppose the granting of these three
Motions,
On .Time 8, 2017, Wal-Mart filed a Motion to fatervene. On June 16, 2017, BLSJ
filed a Motion to _Intervene. On June 26, 2017, tlle Company filed a Jetter indicating it did not
object to the granti11g of Wal-Mru:t's Motion. At that time, the Company also indicatecl that it
opposed the granting of BLSJ's Motion to Intervene, but would not object to granting BLSJ
participant status, BLSJ replied to the Comp1111y's opposition on July 19, 2017.
On July 24, 2017, AT.T Oe1-tsman issned a se1·1es of orders gmnfing the Motions to
Participate of PSE&G and JCP&L, and the Motions to Intervene ofUnimin and Wal-Mart. Also·
on July 24, 2017, AL.T Gertsman issued an order denying BLSJ's Motion to Intervene, but
granting BLSJ paitlcipaat status.
By way of an Order effective April 30, 2017, the Board suspended until August
30, 2017, the implementation of the changes the Company sought to make to its base rates. The
~ .... ,-
S.,P, 12. 2017. 3: 14PM No. 6360 P. 9/35
Board further suspended the implementation of rates until December 30, 2017, in an Order
effective August 30, 2017.
Afte!' proper notice, two public heatings were held in Mays Landing, New Jersey
01t 3:30 P.M. and 5:30 P.M. on June 28, 2017, with ALJ Ge1tsmanpresiding. Several members
of the public appeared at the hearings, and spoke in favor of the Company's proposed increase.
No members of the public spoke in opposition to the Company's proposed increase. All
comments were transcribed and made a part of the record.
Discovery was conducted, and Direct Testimony was filed by Rate Counsel and
Wal-Mart 011 August 1, 2017.2 Thereafter, multiple settlement discussions were held. The
Company, Board Staff, Rate Counsel, and Wal-Mart (collectively, the "Signatory Parties" nnd
each a "Signatory Party") have come to an agreement on the matters set forth in this Stipulation.
Unimin, PSE&G, JCP&L, and BLSJ while not Signato1·y Parties, have indicated that they do not
object to, or will take no position on, the terms of this Stip1\lation. Therefore, the Signatory
Parties !1ereto agree and stipulate as follows:
1. For the purposes of this proceeding only, the Signatory Parties agree that the
' Company's rate ·base.is deemed to be $1,316,150,936 with a test year ending on July 31, 2017,
The Signatory Parties ftlrther agree that this rate base amount does not reflect any pai·ticular
ratemaking adjustment proposed hy any Signatory Party for incm·porAtinn ·into the overall
revenue Tequirement calculation,
2. The Signatory Pai'ties agree that, for the pmposes of resolving this proceeding, the
Co:tnpm1y shall have· an overall rate of return of 7.60 percent, which i8 ba8t:tl on a capital
2 Rate Counsel filed b!reet Testimony by Andrea Crane, Matthew Kahal, David Peterson, Susan Baldwin, and Max Chang and Charles Salnmone. Wal-Mart filed the birect Testimony of Steve C!U'iss .
. 4.
·'
S~p. 12. 2017 3: 14PM No. 6360 P. ,0/35
stn1ctlll'e consisting of 50.47 percent equity with a cost rate of 9.60 percent, and 49.53 percent
long-term debt with a cost rate of' 5.56 percent.
3. The Signatory Parties stipulate that a revenue increase for the Companr of' $43
rnHHon (e:s:clusive of SUT, or $45,848,750 inclusive of SUT) is an appropriate resolution of this
matter, and is just and reasonable.
4. The Signatory Parties acknowledge that the stipulated revenue increase reflects
consideration of a consolidated income tax adjustment.
5. The Signatory Parties agree and recommend that the Board should authorize the
Company to implement new rates, based t,pon an increase in distribution base rate revenues of
$43 million (exclusive of SUT). The Signatory Parties agree that this increase in base rate
revenues should be implemented as indicated on the attached proof of revenues and rate design
schedules (included as E:drlbit A) implementing the tem1s of this Stipulation. Tariff pages
implementing these rates will be submitted upon Board approval of this Stipulation. The tariff
pages will reflect a change in tl1e monthly customer charge for Rate Schedule RS (residential
service) from $4.44 to $5.00 (including SUT). Based on the rate design in Exlrlbit A, the overall
annual average monthly impaet of this rate change on the total bill f'01: a typical residential
customer using 716 kWh per month is $5.52 or 4.03 percent (inclusive of SUT or $5.17 or 3.85
percent exclusive of SUT). This agreement on rate design fa for ~ettlement pm·roses only, And
does not indicate Board Staff's or Rate Counsel's agreement to the Company's fimctionalization,
classification, and allocation of costs or to the Company's cost of service methodology presented
in its Petition and testimonies filed in this matter.
6. The Signatory Parties acknowledge that tho Board has resolved the Company's
requests regarding its economic development pilot program, including Rider SCD and Rider RP,
-5-
S<P, 12. 2017 3: 14PM No. 6360 P. '. 1/35 .
in a separately docketed proceeding, and that no further action 011 the Company's request is
required in this base rate case.3
7. The Company wlll continue to comply with the requirement ordered by the Board
in DPU Docket No. BROJ020110 to file the Company'~ bMc rate request$ lnchiding an
illternattve distributfon rate design based on a Cost of Service Study using a Peak and Average
Coincident Peak Method.
8. The Company hereby agl'ees to withdraw its request to implement a System
Renewal Recoveiy Charge (the "SRRC"). At the time the Company initiated this base rnte
proceeding, it did not have the benefit of co11sidering either the infrastructure investment s1ra:w
proposal prepared by the Staff of the Board, or the resulting draft regulations, approved. for
publication by the Board in the New Jersey Register and cu1Tently subject to comment.'1 In light
of those impmtant policy initiatives undei.iaken by the Boiu·d, the Company has concli.lded it
would be appropriate to reconsider i1s SRRC proposal, and to make a fotm:e infrastructure
investment filing following the Board's action on the draft regulations.
9. The Signatory Parties agree and recommend that the Board approve the
Company's tariff for electric service wl1ich has been revised and cor!'ected to reflect the
comments of Board Staff regarding a number of administrative cotrections, and to include
fangnagr\ p·rn11nsec'! hy Rnard Stjjff 1·ee;ardfne the C.nmpany's tariff provisions addre.~sing Net
Energy Mete1ing. The Signatory Parties fmther acknowledge that the Company will be required
to file a complete confo1med tariff upon the Board's final resolution of this proceeding.
3 See 1/MIO the Application of Atlantic City Electric Company to Amend its Pilot Redevelopment Progl'am Service Tariff Ride1· RP and !JJ· Pilot Smalt CommerciCt! 1)evelopment Tariff Ridel' SCD to Revise Ctnd Expand the Eligibility Cl'iter/a for Cu~omer Participation Therein, BPU Docket No. ER17010007, Order Amending Riders (dated May 31, 2017). 4 The pl'oposed itlfrastructure investment and recovery rules are pending at the Board as BPU Docket No. AXl 7050469, Proposal No. PRN 2017-164. ·
-6-
Se v, 12. 2017 3: '4 PM No. 6360 P. 12/3!5 ' .
I 0. The Signatory Parties acknowledge that the Company is respo!1llible fo1·
detennining the p1·udent level of system it1vestment that is needed to meet its servke obligations
to customers, to satisfy reliability and minimum spending commitments agreed to in the Exelon
Merger whlcl1 inclll<le the commitment to continlle the progrnms identified and the 1·eporth1g
requirements in the :Reliability Improvement Plan ("RIP") through 2021, and tt) operate its
system in a safe and reliable manner consistent v.>ith sound engineering practice, The Signatory
Parties also acknowledge Rate Counsel has recommended th1,t accele1·ated reliability spending
tUlder the existing RIP should be phased ont, such that the 011going reHability capital and O&M
spend at the Company in the fotnre is at the level necessary to meet the reliability commitments
under the merger agreement and to meet its service obligations to customers. The Petitionel'
agrees to prepare a proposal fol' phasing ont the accelerated reliability spending it1 the RJP,
consistent with its obligation to provide safe, adequate and proper service nnd to meet its Exelon
Merger commitments, and to present that plan ih the Company's next base rate case. Nothing in
this paragl'aph shall preclude the Company from filing a pmposal for an infrastmcture
investment tracker mechanism, as referenced in Paragraph 8 above . . 11. The Signatory Parties agree there a,.e numerous reasons, including the economic
challenges faced by sonthern New Jersey, why the Petitioner continues to experience customer
complaint levels in exces~ of l.500 complait1ts annually. To understand and address the many
factors contributing to this problem, ACE will continue to meet quarterly with representatives
from Board Staff nnd .Rate, Counsel in com1ection with the Company's Customer Service
lru.provement l'lan, and will include in those mee:tings discussion of this issue, exploration of
-7-
S.ep. 12. 201i 3: ',5PM No. 6360 P. 13/35
oµtions for addressing this concern, and reporting on the results of the Company's efforts.5 The
Signatory Parties also acknowledge that the Board has co1nmenced a management audit of the
Company, the scope of which also includes customer service matters.
12, The SigMtory P11tties ncknowledge thnt the rnte design proposed in this
Stipulation will tesult ht no increase to Rate Schedule TGS-Transmission General Service.
13, The Signatory Patties agree and recommend that the :Petitioner should be
authorized to create a regulatory asset which includes the following costs to achieve synergy
savings incuJTed in the Exelon Merger: (1) costs to achieve in the runount of$3,315,770 incurred
in the period beginning March 23, 2016 through July 31, 2016; (2) costs to achieve in the amount
of $4,929,176 durilig the August 1, 2016 through July 31, 2017 test year pe1-iod in this
proceeding; and (3) costs to achieve incuJ.Ted on or after August 1, 2017. For the purposes of this
Stip11Iation, the Parties agree that the regulatory asset created in this Paragraph will not be
included in r(tte base at this time. Any futw:e rate treatment for the regulatory asset will be
dete1mined in the next base rate case filed by the Company. The Company agrees that, among
other tirings, it will not recover mergei:· transaction costs, or any impmdently incurred costs, The_
Compally further agrees that it will not seek to r~cover costs to achieve, including the amount
deemed a regulatory asset herein until it has demonstrated that the synergy savings exceed the
costs to achieve. The Company will make this showing in its next filed ba~e rate case, and
acknowledges .that it bears the burden of proof. The Signatory :Parties expressly acknowledge
that the terms of this Stipulation of Settlement are non-preoedential, and expressly reserve their
5 The Signato1y Parties acknowledge that the quarterly meetings may take place in-person 01· via telephone conference, and may be scheduled to coincide with other meetings between the Company, Hoard l':itaff and "Kate Counsel.
-8-
S_,p. 12. 2017 3: !5PM No. 6360 P. 14i35
ri_ght to suppo1i or oppose any request by the Company in the future to recover its claimed costs
to achieve.
14, The Signatory Pru.ties agree that the Company should be permitted to create a
regulatory asset in the amount of$5,577,392 to reflect costs related to three Majol' Storm Events
(the June, 20I6 Storm ($1,708,455], the Januaty, 2017 Storm [$1,727,933], and the March, 2017
Winter Storm Stella [$2,141,004]), which will be recovered in base rates via a three year
amortization with no rate base treatment of the unamoitizect balance.
15. Each Signatory Party agrees to \\se its best efforts to ensure that this Stipulation
shall be presented to the Board for approval at the Board's Septembei· 22, 2017 public agenda
meeting. Each Signatory Party also understands that a Board order adopting this Stipulation will
become effective upon the service of said Board order or upon such date after the service thereof
as the Board may specify, in accordance with N.J.S.A. 48:2-40.
16. This Stipulation shall be binding on the Signatory :Parties upon the effective date
of" a Board Order approving this Stipulation. This Stipulation shall bind the Signatory .:Parties in
this matter 011ly and shall have no precedentiaI value. This Stipulation contairu; terms, each of
which is interdepe11clent with the others and essential in its own right to the signing of this
Stipulation. Each term is vital to the agreement as a whole, since the Signatory Parties expressly
and jointly state that they would not have signed the Stipulation had any tenn been m.oditied in
any way. Since the Signatory Parties have compromised in munei:ous al.'eas, each is entitled to
certain procedures in the event that any modifications whatsoever are made to the Stipnlation, If,
upon considcrl\tion of this Stipulation, the Doard wcto to modify any of the tem~s descl"ibed
above, each Signatory Party must be given the right to be placed in the position it wa$ in b~fore
this Stipulation was entered into. It is essential that each Signatory Pmty be afforded the option,
-9-
,:--·, ·· ..
Seii. 12. 2017 3: '.5PM No. 6360 P. ; 5/35
prior to the implementation of any new rate resulting from any modification of this Stipulation,
either to modify its own position to ~ccept the proposed change(s) or to resume the proceeding as
if no agreeme11t had been reached, This proceeding, under snch circrnnsta11ces, would resume at
the point where it waf.< tem1inrited. The Signc,tory Pruties agree that these procedures are foir to
all concerned, and therefore, they are made an integral and essential element of this Stipulation.
None of the Signatory Parties shall be prohibited from or prejudiced in arguing a different policy
or position before the l:loa1·d in any other proceeding, as such agreements pertain only to this
matter and to n.o other matter.
17. This Stipulation 1·epresents the full scope of the agreement between the parties.
TJris Stipulation may only be modified by a further written agreement executed by all the parties
to this Stipulatio11.
-10-
S.ep. 12. 2017 3: :5PM No. 6360 P. 16/35
18, This Stip\tlatio11 may be executed in as many counterparts as there are Signatory
Parties of this Stipulation, each of which counterparts shall be an original, but all of which shall
constitute one and the same insM1ment.
September 8, 2017 Dul"
Date
Date
ATLANTIC CITY ELECT.RIC COMPANY
By; u/lJ,._ ::>I Cul!t:t:n A. Fult:y, -~q. Saul Ewlng LLP Attorney for Petitioner
CHR1STOPHER S. PORRINO Ail'O:RNEY GENERAL OF NEW J"En.S:EY Attorney for the Staff of the Board of Public Utilities
By: Alex Mo enu . Deputy Attorney Gene1•al
STEFANIE A. BRAND, ESQ. DIRECTOR- DIVISION OF RATE COUNSEL
By: · St~fanie A, Brand, Esq, Director, Division of Rate Counsel
WAL-MART STORES EAST, LP/SAM'S EAST, INC:
By: Donald R, Wagne1·, Esq. Stevens & Lee Attorney for Intcrvenors, Wal-M111t Stores East, LP !lll.d Sam's East, Inc.
-11·
~ep, 12. 2017 3: 15P~ No. 6360 P. 17/35
18. This Stipula;ion may be executed in as many counterparts as there are Signatory
Parties of this Stipulation, each of which counterpat'ts shall be an original, ~ut all of which shall
co11stit11te one and the same lnstmment.
September , 2017 Onte
Date
Date
Date
A 1'LANTlC CITY ELECTRIC COMP ANY
/In :.../. ~ .
By: --=C4UA-~'-'-'AC-'-, ·~~-------Colleen A, F oley,'1isq.-Saul Ewing LLP Attorney for Petitioner
CHRISTOFHBR S. PORIUNO ATTORNEY GENERAL OF NEW JERSEY Attorney for the Staff of the Board of Public Utilities
By; Alex Moreau Deputy Attorney Genet'al
STEFAN1EA. BRAND,ESQ., DIRECTOR- OIVISION OF RATE COUNl,EL
By: ~
, ;Al-/ I /..(OR.IT-},, '=:'SQ. 1 of Rate Counsel '
WAL-MART STORES EAST, LP/SAM'S EAST, INC.
By: Donald R. Wagner, Esq. Stevens & Lee Attomey for Intervenors, Wal-Ma11 Stores East, LP and Sam's East, Inc.
-11-
Sip. 12. 2017 3: 15PM . . No. 6360 P. i 3/35
18. This Stipulation maybe executed in as many counterparts as there are Signato1y
Parties of this Stipulation, each ofwhich counterparts shall be an original, bnt all of which shall
constittlte one and the same instrument.
September 8, 2017 Date
Date
Date
September 8, 2017 Date
/
ATLANTIC CITY ELECTRIC CO:MP ANY
By: Colleen A Foley,sq. Saal Ewing LLP Attorney for Petitioner
CHRISTOPHER S. PORRINO ATTOIUmY GENERAL OF NEW JERSEY Attomey for the Staff of the Board ofPnblic Utilities
By: Alex Moreau Deputy Attomey General
STEFANIE A. BRAND, ESQ. DIRECTOR- DIVISION OF RATE COUNSEL
By: Stefanie A. Brand, Esq, Dit"ector, Division of Rate Counsel
WAL-MART STORES EAST, LP/SAM'S EAST, INC.
By:
-11-
S.ep. 12. 2017 3: 15PM . ' .
EXHIBIT A
PROOF OF REVENUES & RATE DESIGN
-12-
No. 6360 P. i 9/35
s ~ p, 12. 2017 !l No. 6360 P. 20/35 .. a d
-<l:! ~ ..
t;;ow !- ~ 1.113!::! ~ t ca: 5:6: t; ~111
~., 'l't
! a5:~ ,., ! iii)f>; " Ii· ;.i ri
m~ """
~ I~~ " . "' .. ! i'
:;
"if' " 0 " iliiii! t'-o(!ltj'
m ~ • . ~ ..
~ ~!~ ~"'!_ ~ ~1~ iHHi
,! ., r
%
~ ...... ~ ~it ii r;i t:! I ~ ... ~11 &HHf
:;f 3 w
" ...... " ~~iii ~~s
.. ;; i:. iii i
~ %~
~~ ., " w
iii " ....
! ~If $ ~~a ~ u r
i I F!
"" ~
I ~ !l§J .. :i
liJ r
......
i!: • I
~ I ~
" -l t Ii I I ~
~ J; I .§ ~
~1 &
i ' • ~. • 1 '!L, r ] .• ~11 ~€N
11 • sfJ ,, i~- . :! •• i
• < ii ~ ~ ip 1 ;! 1~ l ~ 1.~ ! ·d ~ ~ ,~! Iii';! ;f
~iE ; ·8.51!G
!U
' . :.,p. 12. 2017 3: 16PM No. 6360 P. 2 li35
l' j::.';t u ~ in !
. JJ. ii. ii ;; • a 3. l!.
j i~ i t, ~ N .11 R ~ •i r • .. • • . • • s~ ~ 5!~ i ~ a; u no
H . H . •- lil'.: t Ill! 1'. 8 -• ~ il ~ " !•i ll.!!.!l.11. !I ..
~i"- ... ,... Cl . .. ti
"' oo•r :;:; " N
!i'a • l1 .. ... .. .. .
• u. 5 m1; I i ;~ I • •• • ~-- "PJ u "''.:I e ~ • . ~a u! 1'I :t ~, ~ •:1; r• ~ !· i ;; .
~I i:U f " ·r u C
ll~
•• • •• • • • VHj u ~J ~ :; u. a~ ~ JI •• C
• •• • ·~1 • ~ H i §~ ~~~ ~
u l, ii C
jj • ....... • u N
f g r . !
M i Ji i Jj n ~ gi ! JI ~1 i
:;
. - ,~ dip if; I !!: it~! ~- ~ z
6)• ••• I S! z ~ u ~3 ij~ ,~ w 1~11 .. ~ i "" z i! ! ~&~ ii!! d ijr, ~ ~ ~
S"p, 12. 2017 3: 16PM No. 6360 P. 22/35
•
... .. - .....
N
S,p. 12. 2017 3: '.6PM
• I C . ~ ,;
'' ii I if ~ l "" """ "" j"
!~ ~~ -It• i.~ ~· E•• . ~!! ~ n
... .., I/lo((/ w
No. 6360 P. 23/3~
Sep, 12. 2017 3: 16PM No. 6360 P. 24/35
• .111!' • ~ ~ ~
it ~ ~
Q<
a HU i; • I r ... ! i .. ,u i §Z!i ii rt
:1 "' • . .. .• ·s ~ ~ ~ ~- e ;, u IJ • • .
" iris ! :: e r ·-,!i!w t ~ i Jli1 e ~ .. ri
a • • • . . • ;:.:ii:; 5 ~ ~ ~;: ii iii •o . . •
UI M ti C: .. i='° . ... ~ ~Tfl• ~ § IC
jt-. 1 !: g • ~ ~
111 . "' o) 111, "
~1 T pi~ ~ ~ !! s ~ 1
E -wl Q
~~ii !Iii ,6 t 11,•
•• . • • W' ""'VtlhW-111
ig ~. Jj! ij ! $ 2 a ~
Iii " /JU • .. • " ii I~ ii ~F
H 5 ~ H ~ r,
. ~i ~i . ii ii .. ·~ ' ~M:1! C:A:
I ·~ ~1 11 tl I w
I!~ ~Ju. ~ , z
I ~ fH fH 0 i • I ~ Ju d:i ~ 0 .i:~i:'! «bb u 0 ~
S_,p. 12. 2017 3: 16PM No. 6360 P. 25/35
' j =, :,: ~ :,=. ;I';
!~ ';i ~ ;
~i · ii'a o a N
r -~Ii ~ ~ ij --~ ,i .. ~ ~ '1 ~ ~ .. e i .... ,,
" ~ Is ; ~ ~
Ji .... w
··· ru~ I i I f Jhi &I " " • . . . .
• •1js § ~ ~ -nll • ~ . Ui ~
w .. "
·u·ai~ ~: ;{ !
~ !I~ :r It a 11 K ~ JI ~
. :; ac I :fl • ~ 0 .. " " ·- ~ ~-j[ ~ ~ ~ I ,. ~ • * Cf I'- -r.
~·~ i! :; " i I ; ; ~a QI i iii i iii §
WW w w ~ • .. . W 0 W
t .. H! j i& :;; ~ d
~\ls ~i ;ii . " " I iii « .if q R « • "" ~ H m,· - ,. ~ • I H • ~ l'I • ~
•ii ~ ' ; ,a [ J u Q
[II ~i~jf l' :!;;! - 1 I I ff If ii 1- U p1 u
i I !! w ~ i ~ i~ . ~ ~ i ,t'.~ ma
1111S:i i',t!:i I ~ ~-1 '2">
lilt Hi ; • e i g B .~. ! t ! 0 I ,H "Cl ... I.! i ~ iiiH}lJJ U! d~ ij 0 CJ E. u f;i I:.
Sep.12.2017 3: i6PM
!i!ll~ >iii~ ~ij~ =1 'fiji ![ik ~!ii - l.::;1, &t
"'..,.,. ... Ill.., VI._, "I'
!i.U ~ ~~: :l"
--~ ii~ !~~ ~·-
..... ~ ........ ... ......
No. 6360 P. 26/35
$,p. 12. 2017 3: '6PM No. 6360 P. 27/35
~ Ji • Utl g~~ ~!~ u ... . .. . 'SI[ i!~ i~sl al$:S • >gi ;rn; ! fl f ~:, ~=a
cl i i • . .. -·· -·· • ·s 113r:i ij~~ ~~~ &. ~, :i~-... ._.i 11 .... .. ..... ...
~ in~ ·"t lt~& !l.li~
~ ;;i ... :IS t;' 81 ru ~J ~~~ ·~
I ...... ••• ••• . ~Ui "~- ~l:il'i ~!;! J• i >l~f:I
.... <r.,l'I, d ~ .. t'! ·-~ ••• ... ...... .:; .... ~ ...
li~~ ;!~ it!
1 8§jSij ! !3' i.~ ... i?- ?.~~ . . l1i .... ••• ••• ..... l ... 1:;c: ;i::: =~- ~-~ SI~~ ~i. r.!:'!~ n·~ 8.,,, A!'" ~~! ...
··~· •f ;; l
0'6'~•11 ••• ••• . .. li " pl j"li $~~ ~~~ I! ~
8)2 3f ! ~" :!'- ••• ••• ... !l J • .,e Slilll ~Ii ~-~ Q zd! ..
~~if-!! i H ·i
I ··r·· j • c, • .! p r . u• 0 11~~ .I- - .~
• J£! • ~ ! i w 0 I • 'ii;? ~i«i} !l I ! ~
~
• a fh f• 8~j ;!~~ ilih ~d~ ~ ··~. ~~11 li~i i;o ~ !H ni I J~J
S,p. i2. 2017 3: :6PM
...
J
i~l~~~~~~i~:~:~~~~~~~~*~~~E~~~;~~~i;~~a~=ai~~~~,.~~~~~~~ '° ............ O'I., W"<'l l't"" ft N ....... II l+ft .. "'" ...... °" .... .,. .. "'-"tM ... ,t l+ WI ..... !,tit M ... 111 l• ..... Vi
11!~t5~~~~fi~~~~~~~~~~,~:~~a~g~~~g~~~~~,:~~~~~~~ii~~~a~~ l ~ ................................ l'l ......... lt,l+o,l ... ltlt ............................................ ,,_".,..,. .. ~,.,. ...
lij~>.3~e.~~fle.fl•§lff!§•~~·~~H•~•••••"•••ij••••••••~;,~•~~-~-~~' "' .:ui,.;;u,;~iju ~dafiU gij~!U~f.!!~n~i~·•istui~ •• ~-,, ... 1 ·~··ut•• ~~2!!~•i,,t•.~'~6r ~~t§ir~i~!~&~i!~~ii~~~~ ~. ~· ............ .., ............................ "., ..... ,\ ........ i. ..... .,. ...... ..,. ................................. ...
t!••~&~M·•~tllA!•!.•••n,•.~~·•·11.,;~s~~~.!~!~~.a~~~tij~ ".... i,;.... ... .. 1! .... a... ..-i'f.r ~ ~}·~
·J. ,i
1~ §~~~~~~=ia~~~~~~~=;~~~g~~,~Jg;:ij~§~~~~~~;~~~~a~i~~~~ ......... _ ......... ~""~"'-"""""""'--- ..... ~ .......... ., .......... r .................. """""""""'
Ji. ~~~~~Eiii;Ji~~~irn,afi~~~~~ ~,~~a~:~=~:~~ ~~=~1~~~~:~~~~n~ ........................................ ) ............ "' .. ..,".., ........................ .,. ..................... """"""""
No. 6360 P. 28/35
!UiUH!i~!i I ~R~iP:~ ~e~'! , "'"" .. "'"'""'""""" ~g1•~r•,· d-'..::1
........... ~ ............ ... ................... ...
ii~~~u1i11~a ~ .·~~ij~~• ·~ H' ............. .,.i. ......
:l~~~ij~r~~· ~tlo,..
I 1. i~,~~!~!!~2 ll£ .................... ...
5?;~!~~!=~:
Ja! .. w ...... .u. ......
~ ~::!':t~':t~l1ij
i j
I I 11;;~;;nu
1 ! ~ i •• ~~~Ue!&
f U~Mijiif<~~ ill
'
..
~; P. 12. 2017 3 : '. 6 PM No. 6360 • P. 29i35
~~ "' ~~ ~ . :I j 1]S! i ;I $
i -· " - • I ~!/ ~
'l :I .
~ t, ~ .. -] "' fl~ llj " :I ~ ~ ~ ii ~
"" - • . -"' ~~ :I ~ :I ~ Ji !! ... • • •
f ., .
~ ~
:I • r, r'.fii " !! li
0 •• • • • ~ ~;i ~I
. :I ii ~
,, .... ~ ~
-- --i· ~~ :I • j ~ " t~ ... = ~
df:a: ~~ ~ g ~1 ~ a •-s !9.-•• •• • . " • ii~ -" ~ ~ ~ ; • tj ~~ ~
•• • .. " i~ ~~ ~, ~
~I ~ 3 !$ ~
• • .. ., . • • " ih ~! ~ ~ j 14 ~ r , . = •• . - --
t ~ ~~ :I ~ :I ~ ~ ! €1 a
' ~ ... • • • ~ ~s j ~ :I ~ B ~
-· ;; q" j • j: r. e~ •• • • ;;. •• " • H : . !~ j s !I ~ 0
]a.~ ~ ~ i, •• • • • •
h •a ~ ~ ~ ~ .. i\r;e: ••
•• .. .. • ;; l!R ~1 ~ j ~ ! ~ NO . ... . .. .. •h
] j ~ • i 6
• ~ • ts ;! ' ll~ ~~ ~ " ~j ~~ ~ i I 5 ! ~. J
€ ~ • § il. .. ~ f ~ ji! • I o! "' i ~ ,; "l! ~ ~ • • ·'$ !t ~ 6 I ~ II. Js iil H I & :;; 1 ·- i'
~eP, 12. 2017 3: 17PM
~i !.:: ~a •1 = 'I ~ ~ ;& ir-1 d P d ..S •I
i1. ........ "' ,., "' "
•• h ~~
i'.i H if !I ~~
.ij ~1 ~ ~1 ~ ~ ;N :0 l'I D "' n ............... J •o ., a -, • a ... ~c,I .:; ri ~ .:i ~
w .,, ,,., .... v, "'
?~ ~, 8 ~, a ff =i:N • ft C, ... M .. "' t, ... ... ...,.
i ;,~ lll ~ ~- • ~ ! ... ~ ... d #I l'i
.... "' ri . ... "'
•• ?JI ~ ~1 ~ • .. §it: d l'I Ill " t'I
I .., .., .., ..., ..., ....
,a ~1 • "I g ~ ~"" c, ri d ri ,.;
....... '(< .....
il!il :ii ~ ~, 5 ! !.,.. 1Z "Z' VI ,n W 1/1 l'I 0
~ij·~ ~1 8. j· ~ ~ :;§~N C ~• ,., 3J i,) "' ... ..... ....
,~~ ~1 ~ ·~, ~ ii "' "' ...........
?O ~1 ~ ~ • ~ §t,1 0 ~ 3 ~ j.i
IA 'II "" .., "'
i t " ~ z ~ ~ ~ i s ~ J ~ ii Iii
" . . .; • ii i 0 ~ ! i ~ ~ f 'll ~ ~ ! g :!
" «
No. 6360 P. 30/35 '
•
S,p. 12. 2017 3: 17PM No. 6360 P. 31/35
'
,·
S,1>. 12. 2017 3: i7PM No. 6360 P. 32/35
.,...
Ms,tin C. Rothfelder, Esq. (Admitted In NJ, NY, NH, PA,. MO)
Attorneys at Law ~~·i-.1\TE n;=- 1:r.r·J ,.[~[·{fi~Y··· 1 1
.:- \~~~~to?J:J'J"{iJt bi,? 'H
407 Greenwood Ave., Unit #301 Trenton, NJ 08809-2158 Tel: (609) 394-1000 [email protected]
Please reply to Che1·ry HIii
September 8, 2017
'Vfli,T~Jecppy iind' Fhist.Qfiis, Mij) Colleen A, Foley, Esq11ir~ Saul Ewilig LLP · One Riverfront Plaza, Suite 1520 Newark,New Jersey07102
(Admitted In NJ, PA)
22 Lakeview Hollow Cher,y Hill, NJ 06003
Tel: 856-520-6806 Fax: 858-375-2151
Re: In the Matter of the Petition of Atlantill City Electric Company !'or App1•ovnl of .Amendment~ to Jt, Tak'lrr iu Pt,,vhle fur un Increase Ill Rates 1md Charges for Electric Service Pui·suant to N.J,S.A. 48:2-21 and N.J.S.A. 48:2-21.l, and for Other Approp1•iate Relief (2017) OAL Docket No. PUC 4989-171 Bl>'U Docket No. ElU7030308
Dear Ms, Foley:
On behalf of Unhuin Corporation, we advise you that we have reviewed the Stipulation of Settlement provided 011 this date, and while not signing the stipulation, we have .tio objectil>n to it.
Vory tnily yours,
Bradford M. Stem
cc/ Counsel of Record (via e-mail)
1~1
Sep.12.2017 3: ·,,PM
Jo~eph F. AccRrdo, Jr, Deputy General Co~n,ol
Lllw Otptrfment. PSEG Scrtlcet Cori1or11tion -80 P•rkPl!12a-TI, Newark, Now Jersey 07102-4194 M; 97~·430,JBI I ~ 071-~4s.1,n7 email: .J•!ilhli\qJaihiJ!g@pi~G«»Ifi
$eptember 8, 2017
Tn the Matter of the Petition of Atlantic City Elecnic Company for
Appro'Val of Amendments to Its 'l'ariffro Provide for an Increese in Rates and Charges for Elecn-ic Service Pursuantto.N..IS.A. 4R:2-?.l and NJ.8 . .A. 48:2-21.l,
and for Othei· Appropriate Relief (2017)
BPU Docket No. ERl 7030308 OAL Dock-et No. PUC-04989· l 7
VL4 ELECT1l.ONIC AND OVERNIGHT .MA1L
Honorable Elia A. Pelios Adminiatrative Law Jadge Office of Administrative Law P .0. Box 049 Trenton, New Jersey 08625-0049
Dear H011orable Polios;
No. 6360 P. 33/35
OPStO Sn,,itlw CmJJ//mlil/11
Thi~ letter, of which 3 ndditional QOpies are enclosed, is to ndviao that I'L1blio Scrvicoill,;,otric and Gas Com.()uny ("PSE&G"), a participant in this proceeding, hag 110 objection to the Stipulation of Settlement between the Parties which Wa$ provided to PSE&O via e-mail by Atlantic City Electric Company counsel on the morning of September 8, 2017 dated 011 that date, and which we anticipate will be tlled on or nbout that date.
Copies of this Jettru• ~rP. J,,.,ir,g forwarded thi• date vln electronic mail to all persons whooe name nppenr on the attached distrib\ltion list.
c Attached Service List (E-Mail Only)
Respectfully submitted,
~--/ (} __ (// t1 (/ ~;r;#~;
Sep. 12. 201i 3: 17PM No. 6360 e. 34/35
D Fox Rothschild LLP
ATTORNEYS "T L.\W
Princeton Pil<e Corporate Center 9!H I l!lnn); nrlvi,.. RtilldlnS ::\ L.awrencovlll•, NJ 08648•23:\1 Tel 609.896,3600 Fax G09.898.146ll www.roxrotllsohUd.com
Colleen A. Foley, Esq. Saul Ewing LLP One Riverfront Plaza, Suite 1520 'NewArk,'N .. w Jersey 07102
September 8, 2017
Stevens. Goldenberg r)lr41')t DfN· OOQ.896,4586
Emall Address: sf!olclenbet"[email protected]
Re: IIM/0 Petition of Atlnutic City Electric Company for Approval of Amendments to its Tariff to Provide for an focrease in Rates and Charges for ElcQtric Service Pursuant to N.J.S.A, 48:2-21 a11d N.J,S.A, 48:2-21 .l and fo1• Other Appropriate Relief
OAL Docket No. PUC 4989-17; :a:PU Docket No. ERi 7030308
Dear Ms. Foley:
TJ1is is to advise that the Builder's l:,eague of South Jersey takes no position 1-egardingthe Stipulation of Settlement entered by the parties in this proceeding, other tha11 to express its disappointme11t that Atlantic City Electl'ic Company was unwilling to ame-nd Section 9,7 of the Terms and Conditions of !Service in its 'J'aritr, which adcr;tesses appo1tlonment of cost responsibility for the relocation of utility assets, to conform with applicable law.
SSG,jfp cc: Distribution List
ACT!VE\S087I l66.•l ·9/&/J7
V~erytt1dyyo11ts, .
. . . .
Steven S. Goldenberg
,· .
S,p. 12. 2017 3:'.7PM
Lll11ren M. Lepkb$X1, E,q, (610) 921-6203 (.130) 3/S-9263 (Fm.j
September 11, 2017
VlA :EMAIL AND UPS OVERNIGHT DELIVERY
Administrative Law Judge Jacob S. Gertsinan Office of Atlministraliw Law 3444 Quakerbl'idge Road Quakerbridge Plnza, Building 9 Mercerville, NJ 08619
No. 6360 P. 35/35
= , ... -. ,_.,~ ,.-M ; •• , yw t: \}-: "r :,,'"' ~ J
znn SEP 12 A_ 11: 22 ,w • I
STATf OF NE\V')EgS.Ef ~. OF fiCC OF· AOMll•l -l'. /\W ;
· Re: In the Mattei· of the Petition of Atlantic City :Electric Conwany for Approval of Amendment to Its Tariff to Provide fo1• >UI. lncre1tse in Rates and Charges for Electric Service Pursuant to N.J.S.A, 48:2-21 aiul N.J.S.A, 48-2-21.0, and for Other Appropriate Relief (2017) BPU Docket No. ER17030308 OAL Docket No. PlJC 4989-17
Dear Judge Gertsman:
On behalf (Jf Jersey Central Power & Light Company ("JCP&L"), I respectfully advise that JCP&L has reviewed the Stipulation of Settlement pro'Vided and, while not signing the stipulation, JCL&L has no objection to it
. Very truly yours,
c7 /Ii. ~ Lauren M. Lepkoski
krak cc: Cou11selofRecord (via email)