state of new jersey...an increase in its current base rates for electric service of approximately...

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


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.



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.



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


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



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)


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]


STATE OF NEW JERSEY Board of Public Utilities


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


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.


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.


STIPULATION


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.



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.



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


--------


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~



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)


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]


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


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]


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


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]


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-



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


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 '


By: Donald R. Wagner, Esq. Stevens & Lee Attorney for lntervenors, Wal-Mart Stores East, LP and Sam's East, Inc.

-11-



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


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


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


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


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 '


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.


Date

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


By: Stefanie A. Brand, Esq, Dit"ector, Division of Rate Counsel


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

[email protected]

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)

state of new jersey...an increase in its current base rates for electric service of approximately...

Documents