STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
DOCKET NO. E-2, SUB 1142
DOCKET NO. E-2, SUB 1131
DOCKET NO. E-2, SUB 1103
DOCKET NO. E-2, SUB 1153
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
In the Matter of
DOCKET NO. E-2, SUB 1142
Application of Duke Energy Progress, LLC
For Adjustment of Rates and Charges
Applicable to Electric Service in North
Carolina
DOCKET NO. E-2, SUB 1131
Application
of Duke Energy Progress, LLC
•
for an Accounting Order to Defer 2016
Incremental Storm Damage Expenses

AGREEMENT AND
STIPULATION OF PARTIAL
SETTLEMENT

DOCKET NO. E-2, SUB 1103
Joint Petition of Duke Energy Progress,
LLC and Duke Energy Carolinas, LLC for
an Accounting Order to Defer
Environmental Compliance Costs
DOCKET NO. E-2, SUB 1153
Petition of Duke Energy Progress, LLC for an )
Order Approving a Job Retention Rider

Duke Energy Progress, LLC ("DEP" or the "Company") and the Public Staff,
North Carolinas Utilities Commission (the "Public Staff'), collectively referred to
herein as the "Stipulating Parties," through counsel and pursuant to G.S. 62-69,
respectfully submit the following Agreement and Stipulation of Partial Settlement

 ("Stipulation") for consideration by the North Carolina Utilities Commission
("Commission") in the above captioned docket.
I. BACKGROUND

A.

On June 1, 2017, DEP filed an application ("Application") for a

general rate increase, pursuant to G.S. 62-133 and -134 and Commission Rule
R1-17, along with direct testimony and exhibits requesting a non-fuel base rate
increase of approximately 14.9 percent in retail revenues, or approximately $477.5
million. The filing was based upon a 10.75 percent return on equity ("ROE") and a
53 percent equity component of the capital structure.
B.

On July 10, 2017, the Commission issued an order consolidating the

general rate proceeding in Docket No. E-2, Sub 1142 with DEP's requests to defer
incremental storm damage expenses in Docket No. E-2, Sub 1131 and certain
environmental compliance costs regarding coal combustion residuals in Docket
No. E-2, Sub 1103. On August 29, 2017, the Commission issued an order
consolidating the general rate proceeding with DEP's request to implement a job
retention rider in Docket No. E-2, Sub 1153.
C.

On September 15, 2017, the Company filed supplemental direct

testimony and exhibits. On October 20, 2017, the intervenors in this proceeding,
including the Public Staff, filed testimony. On November 6, 2017 and November
17, 2017, respectively, the Company filed rebuttal testimony and exhibits and
second supplemental testimony and exhibits.

2

 D.

The parties to this proceeding have conducted substantial discovery

on the issues raised in the Application, as well as on the direct, supplemental and
rebuttal testimonies of the Company and the direct testimony of the Public Staff.
Prior to the evidentiary hearing originally scheduled to begin November 20, 2017,
the Stipulating Parties reached a partial settlement with respect to most of the
revenue requirement issues presented by the Company's Application, including
those arising from the supplemental and rebuttal testimonies and exhibits. The
Stipulating Parties agree and stipulate as follows:
II. UNRESOLVED ISSUES
The Stipulating Parties have not reached a compromise on the following
issues ("Unresolved Issues"):
a.

Coal ash costs — The Stipulating Parties did not reach an

agreement regarding cost recovery of the Company's coal ash costs,
recovery amortization period and return during the amortization
period, allocation issues associated with coal ash costs, ongoing
costs to be included in rates, and whether certain coal ash costs are
recoverable under G.S. 62-133.2.
b.

Storm costs — The Stipulating Parties do not agree on the

amount of the Company's requested deferred storm costs to be
recovered, and the amortization period of any such recovery.

3

 Resolution of this issue will also affect the adjustment to normalize
storm expenses.
c.

Job Retention Rider - As described in more detail below, the

Parties agree that the Company's proposed Job Retention Rider
generally complies with the Commission's guidelines adopted in
Docket No. E-100, Sub 73, but two issues remain to be decided upon
by the Commission: (1) whether companies involved in the
transportation or preservation of a raw material or a finished product
(e.g., pipeline customers) should qualify; and (2) how or if the Job
Retention Rider should be funded after the expiration of the initial
year's $3.5 million shareholder contribution.
III. REVENUE REQUIREMENT ISSUES RESOLVED BETWEEN THE PARTIES
The revenue requirement effect of this Stipulation is shown in Settlement
Exhibit 1, Schedule 1, which provides sufficient support for the annual revenue
required on the issues agreed to in this Stipulation.1 No Stipulating Party waives
any right to assert a position in any future proceeding or docket before the
Commission or in any court, as the adjustments of Settlement Exhibit 1, Schedule
1 are strictly for purposes of compromise and are intended to show a rational basis
for reaching the agreed-upon revenue requirement without either party conceding
any specific adjustment. The Stipulating Parties agree that settlement on these

1 The total increase in base rate revenues and the resulting average increase will not be
determined until the Commission rules on the Unresolved Issues.

4

 issues will not be used as a rationale for future arguments on contested issues
brought before the Commission. The areas of agreement reflected in Settlement
Exhibit 1, Schedule 1 are as follows:
A.

Revenues approved for DEP in this proceeding should be adjusted

to provide DEP, through sound management, the opportunity to earn an ROE of
9.9 percent. This ROE will be applied to the common equity component of the
Company's ratemaking capital structure consisting of 52% equity and 48% longterm debt. The embedded cost of debt agreed to by the Parties as appropriate
and reasonable for purposes of this proceeding is 4.05%. The weighted overall
rate of return resulting from the above inputs is 7.09%.
B.

The Company shall update its post-test year additions to plant in

service and accumulated depreciation calculation to reflect the period from the
beginning of the Company's test year through October 31, 2017.
C.

The Company shall update its post-test year additions to include

Asheville construction work in progress (CWIP) through October 31, 2017.
D.

The Company shall annualize revenues and include the effects of

inflation through October 31, 2017.
E.

The Company shall update its labor costs through September 30,

F.

The Public Staff withdraws its recommended adjustment to the

2017.

Company's proposed revenue requirement related to vegetation management
5

 costs. The Company also withdraws its filed position included in the second
supplemental testimony of witness Bateman filed November 17, 2017. The effect
of this is that the Stipulating Parties agree with the Company's original position
filed in this case.
G.

The Company will amortize Harris Combined Construction and

Operating License Application (COLA) costs over an eight-year period.
H.

The Public Staff accepts the Company's modifications to the

calculation of DEBS allocations to DEP as a result of the Piedmont Natural Gas
merger and changes related to other affiliated entities.
I.

The impact of the Company's lost industrial revenues due to

Hurricane Matthew should be adjusted as shown on Settlement Exhibit 1,
Schedule 1.
J.

The excess deferred income taxes (EDIT) that the Company

collected pursuant to the Commission's May 13, 2014 order in Docket No. M-100,
Sub 138 should be returned to customers through a levelized rider that will expire
at the end of a four-year period.
K.

The incremental operating expenses for the Customer Connect

project should be removed from the Company's revenue requirement as
recommended by the Public Staff. Instead, the Company should be authorized to
establish a regulatory asset to defer and amortize expenses associated with the
Customer Connect project. The Company should be allowed to accrue and

6

 recover AFUDC on the regulatory asset until the DEP Core Meter-to-Cash release
(Releases 5-8) of the Customer Connect project goes into service or January 1,
2022, whichever is sooner, at which time a 15-year amortization shall begin. In
order to provide the Commission and other interested parties with information
concerning the status of development, spending, and the accomplishments to
date, the Stipulating Parties will develop the reporting format and the content of
that report within 90 days of the Commission's order approving the Stipulation, with
the reports to be filed in this docket for the next five years on December 31 of each
year or until Customer Connect is fully implemented, whichever is later.
L.

The Stipulating Parties agree to remove 50 percent of the corporate

aviation O&M expense.
M.

The Company accepts the Public Staffs proposed adjustment to

executive compensation to remove 50 percent of the compensation of the five
Duke Energy executives with the highest amounts of compensation, and to remove
50 percent of the benefits associated with those five executives.
N.

Certain costs associated with outside services should be removed

as recommended by the Public Staff in the amount shown on Settlement Exhibit
1. This amount does not include costs incurred for certain legal services related
to coal ash, which are included in the Unresolved Issues.
0.

The Company accepts the Public Staffs proposed adjustment to

remove costs to achieve the Duke-Piedmont merger.

7

 P.

The Company's depreciation rates should be based on the rates set

forth in the Company's most recent depreciation study, subject to application of the
following inputs: (1) a 10 percent contingency; (2) a 10-year remaining life for the
meters that are being retired pursuant to the Company's AMI program; (3) 70-R2
for Account 356; (4) -10% future net salvage for Account 366; (5) a 17-year life for
new AMI meters; and (6) a 20-year amortization period for Accounts 391 and 397.
Q.

Company employee incentives should be adjusted to remove the

cost of the Short Term Incentive Plan based on the Company's earnings per share
for employees who qualify for the Company's Long Term Incentive Plan.
R.

The Company shall reduce the amount of coal inventory included in

working capital. Further, an increment rider should be approved to manage the
transition, effective on the same date as new base rates approved in this
proceeding and continuing until inventory levels reach a 35-day supply to allow the
Company to recover the additional costs of carrying coal inventory in excess of a
35-day supply (priced at $76.11 per ton). The rider will terminate the earlier of (a)
January 30, 2020 or (b) the last day of the month in which the Company's actual
coal inventory levels return to a 35-day supply on a sustained basis. For this
purpose, three consecutive months of total coal inventory of 37 days or below will
constitute a sustained basis. The Company reserves the right to request an
extension of the January 30, 2020 date. The Company will adjust this rider
annually, concurrently with DEP's DSM/EE Rider, REPS Rider, JAAR Rider, and
Fuel Adjustment Rider, and any over- or under-collection of costs experienced as

8

 a result of this rider shall be trued up in that annual rider filing. For purposes of the
coal inventory rider, the Stipulating Parties agree that interest on any under- or
over-collection shall be set at the Company's net-of-tax overall rate of return, as
approved by the Commission in this proceeding. In addition, the Company will
conduct an analysis in consultation with the Public Staff demonstrating the
appropriate coal inventory level given market and generation changes since the
Company's rate case in Docket No. E-2, Sub 1023. The analysis shall be
completed by December 31, 2018.
S.

The Sutton CT Blackstart project costs should be adjusted by

reducing rate base by $2.788 million (NC Retail), along with depreciation expense
and other cost of capital effects. This adjustment will be permanent for ratemaking
and regulatory accounting purposes only. DEP and the Public Staff acknowledge
that DEP in no way concedes that it was imprudent, unreasonable, inefficient, or
uneconomical in executing the Sutton CT project, but has agreed to the adjustment
included in this Stipulation to resolve an otherwise contentious issue.
T.

The Company accepts the Public Staff's adjustment to end-of-life

nuclear materials and supplies reserve expense, reduced as described in the
rebuttal testimony of Company witness Gillespie, and will take appropriate action
to manage its Materials and Supplies inventory (nuclear and non-nuclear) to the
current practices and procedures utilized by Duke Energy Carolinas, LLC with the
goal to ensure that proper levels of inventory are on hand within 24 months after
the entry of the Commission's rate case order.

9

 U.

The Mayo Zero Liquid Discharge (ZLD) project costs should be

adjusted by reducing rate base by $10.393 million (N.C. Retail), along with
depreciation expense and other cost of capital effects. This adjustment will be
permanent for ratemaking and regulatory accounting purposes. DEP and the
Public Staff acknowledge that DEP in no way concedes that it was imprudent,
unreasonable, inefficient, or uneconomical in executing the Mayo ZLD project, but
has agreed to the adjustment included in this Stipulation to resolve an otherwise
contentious issue.
V.

The Company's sponsorships and donations expense should be

reduced by the amount paid to the U.S. Chamber of Commerce.
W.

The Company accepts the Public Staff's recommended adjustments

to lobbying and Board of Directors' expenses.
IV. OTHER AREAS OF AGREEMENT
The parties also agree to the following, which are not reflected on
Settlement Exhibit 1, Schedule 1:
A.

DEP shall host a technical workshop during the second quarter of

2018 regarding the Company's NC Power/Forward grid investments to explain the
need for and ongoing benefits of grid investments, and to hear feedback from
stakeholders in attendance. The Company shall report the results of the workshop
to the Public Staff and the Commission. Participation by or attendance of the
Public Staff at the NC Power/Forward workshop shall not estop the Public Staff

10

 from investigating or making recommendations regarding any element of the
Company's North Carolina Power/Forward program in a future rate case or
pursuant to applicable statutes or Commission Rules. The holding of the technical
workshop does not preclude the Commission from considering or reviewing
aspects of the Power/Fon/yard program in separate dockets as it determines
appropriate or as requested by other parties nor does it preclude Public Staff
participation in such dockets.
B.

The Parties have reached agreement on the Company's proposal for

a Job Retention Rider as described by Company witness Wheeler in his direct and
rebuttal testimony, except for the Unresolved Issues.
C.

The total of the approved base fuel and fuel related cost factors, by

customer class, will be as set forth in the following table (amounts are 0/kWh
excluding regulatory fee):

Total Base Fuel (matches
approved fuel rate
effective December 1,
2016,
in Sub 1107

Res

SGS

1.993

2.088

MGS
2.431

LGS

Lighting

2.253

0.596

Billed fuel rates shall be adjusted to reflect changes to fuel rates approved
by the Commission in Docket No. E-2, Sub 1146, effective December 1, 2017.
D.

DEP has based its filing in this docket on the Summer Coincident

Peak ("SCP") methodology for cost allocation between jurisdictions and among

11

 customer classes. The Public Staff does not oppose the Company's cost of
service study and allocation methodology for purposes of settlement in this case
only, with the exception of allocation of coal ash costs, which is included within the
Unresolved Issues.
E.

The Public Staff and the Company agree that DEP shall prepare and

file a lead-lag study in its next general rate case.
F.

The Stipulating Parties agree on the following with regard to

assignment of the revenue increase and the accompanying rate schedules to be
filed by the Company in compliance with the Commission's order and other rate
design matters proposed by DEP:
1.

To the extent possible, the Company shall assign the

approved revenue increase consistent with the principles regarding
revenue apportionment described in the testimony of Public Staff
witness Floyd.
2.

The rate class revenue requirement for DEP rate schedules

shall be modified to reflect the adjustments in revenues set forth in
Settlement Exhibit 1, and shall further be defined once the
Commission resolves all issues in this proceeding.
3.

The Parties agree that the Company shall implement the rate

design proposed by Company witness Wheeler within his direct

12

 testimony, filed contemporaneously with the Company's Application
in this docket, as adjusted by this Stipulation, modified as follows:
The Stipulating Parties agree that the Company

a.

may increase its Basic Customer Charge for Schedule
RES to $14.00 per month. The Stipulating Parties further
agree that the Company may increase its Basic Customer
Charges for Schedules R-TOUD and R-TOU to $16.85 per
month.
b.

The Stipulating Parties agree that the Company will

maintain the current differential between the on- and offpeak energy rates in all of its time-of-use rate schedules
when assigning the revenue requirement approved in this
proceeding.
c.

The Stipulating Parties agree that the rates set forth

in the minimum bill provisions of the MGS class schedules
shall be set at the class approved unit energy and demand
cost as proposed by the Company, but shall also be
adjusted to reflect all riders applicable to service under the
schedule.
d.

To ensure a more equitable impact on the MGS

class, the Stipulating Parties agree that the revenue

13

 increase applicable under Schedules MGS and SGS-TOU
should strive to achieve approximately the same
percentage increase in revenues under each schedule.
G.

The Stipulating Parties will cooperate in providing pre-filed testimony

to explain and support this Stipulation. The Parties agree that DEP's Application
and the testimony and exhibits of the Stipulating Parties will provide sufficient
support for the annual revenue requirement agreed to in this Stipulation.
1.

Settlement Exhibit 1 attached to this Stipulation sets forth the

gross revenues, operating revenue deductions, rate base, and rate
of return that the Stipulating Parties agree are appropriate for use for
base rates in this proceeding. The Stipulating Parties accept and will
not challenge these amounts. These amounts will be impacted by
the Commission's decision on the Unresolved Issues which will
impact gross revenues, revenue deductions and rate base.
2.

Within 30 days after the Commission's issuance of an order

approving this Stipulation, but no later than ten business days after
the Effective Date of the new rates, DEP will file for Commission
approval five copies of all rate schedules designed to comply with the
paragraphs above, accompanied by calculations showing the
revenues that will be produced by the rates for each schedule. These
calculations shall include a schedule comparing the revenue
produced by the filed schedules during the test period with the

14

 revenue that will be produced under the proposed settlement
schedules (in the format of Company witness Wheeler Exhibit 2), and
a schedule illustrating the rates of return by class based on the
revenues produced by the rates for each schedule (in the format of
Company witness Bateman Exhibit 2).
3.

The effective date of the rate change ("Effective Date") shall

be the date the Commission issues an order regarding the requested
rate increase ("Approval Order"), provided the Commission issues
the Approval Order by February 1, 2018. If the Approval Order is
issued later than February 1, 2018, the Company reserves its rights
to implement temporary rates under bond pursuant to G.S. 62-135
on or after February 1, 2018.
4.

Any temporary rates the Company could implement under

G.S. 62-135 will be designed to produce revenues no more than the
revenue requirement agreed upon in this Stipulation.
H.

The Stipulating Parties further agree that JRR revenue credits shall

be recovered through a rider from all retail customers concurrent with JRR
implementation, which is anticipated to occur approximately six months following
the Commission's decision. Rider JRR and the JRR Recovery Rider revenues
shall be reported to the Commission annually and the Recovery Rider shall be
reviewed and will be subject to adjustment annually coincident with the December
fuel adjustment to match anticipated recovery revenues and true-up any past over-

15

 or under-recovery. Due to the uncertain date of implementation, compliance tariffs
shall be filed prior to implementation of the JRR Recovery Rider and customers
shall be notified by bill insert or message upon implementation.
I.

The Stipulating Parties agree that the overall quality of electric

service provided by DEP is adequate.
V. AGREEMENT IN SUPPORT OF SETTLEMENT; NON-WAIVER.

A.

The Stipulating Parties shall act in good faith and use their best

efforts to recommend to the Commission that this Stipulation be accepted and
approved. The Stipulating Parties further agree that this Stipulation is in the public
interest because it reflects a give-and-take of contested issues and results in rates
that are just and reasonable. The Stipulation reasonably balances customer
interests in mitigating rate impacts with investor interests in providing for
reasonable recovery of investments, thereby providing the necessary level of
revenue requirement (as to the stipulated issues) to allow the Company to maintain
its financial strength and credit quality and continue to provide high quality electric
utility services to its customers. The Stipulating Parties intend to support the
reasonableness of this Stipulation in any hearing before the Commission and any
proposed order or brief in this docket.
B.

Neither this Stipulation nor any of the terms shall be admissible in

any court or Commission except insofar as the Commission is addressing litigation
arising out of the implementation of the terms herein or the approval of this

16

 Stipulation. This Stipulation shall not be cited as precedent by any of the Parties
with regard to any issue in any other proceeding or docket before this Commission
or in any court.
C.

The provisions of this Stipulation do not reflect any position asserted

by any of the Stipulating Parties, but reflect instead the compromise and settlement
between the Stipulating Parties as to all of the issues covered hereby. No
Stipulating Party waives any right to assert any position in any future proceeding
or docket before this or any other Commission and in any court.
D.

This Stipulation is a product of negotiation among the Stipulating

Parties, and no provision of this Stipulation shall be strictly construed in favor of or
against any Party.
VI. RECEIPT OF TESTIMONY AND WAIVER OF CROSS- EXAMINATION
Except for testimony and exhibits related to the Unresolved Issues, the prefiled testimony and exhibits of the Stipulating Parties may be received in evidence
without objection, and each Party waives all right to cross examine any witness
with respect to such pre-filed testimony and exhibits. If, however, questions are
asked by any Commissioner, or if questions are asked or positions are taken by
any person who is not a Party, then any Party may respond to such questions by
presenting testimony or exhibits and cross-examining any witness with respect to
such testimony and exhibits.

17

 VII. STIPULATION BINDING ONLY IF ACCEPTED IN ITS ENTIRETY
This Stipulation is the product of negotiation and compromise of a complex
set of issues, and no portion of this Stipulation is or will be binding on any of the
Parties unless the entire Agreement and Stipulation of Settlement is accepted by
the Commission. If the Commission rejects any part of this Stipulation or approves
this Stipulation subject to any change or condition, or if the Commission's approval
of this Stipulation is rejected or conditioned by a reviewing court, the Stipulating
Parties agree to meet and discuss the applicable Commission or court order within
five business days of its issuance and to attempt in good faith to determine if they
are willing to modify the Stipulation consistent with the order. No Party shall
withdraw from the Stipulation prior to complying with the foregoing sentence. If
any Party withdraws from the Stipulation, each Party retains the right to seek
additional procedures before the Commission, including cross-examination of
witnesses, with respect to issues addressed by the Stipulation and shall not be
bound or prejudiced by the terms and conditions of the Stipulation.

18

 VIII. COUNTERPARTS

This Stipulation may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute on and the same
instrument. Execution by facsimile signature shall be deemed to be, and shall have the
same effect as, execution by original signature.
The foregoing is agreed and stipulated this the

day of November, 2017.

Duke Energy Progress, LLC
By:
David B. Fountain
North Carolina President
Public Staff — North Carolina Utilities
Commission
By:
Christopher J. Ayers
Executive Director

 VIII. COUNTERPARTS
This Stipulation may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute on and the same
instrument. Execution by facsimile signature shall be deemed to be, and shall have
the same effect as, execution by original signature.
The foregoing is agreed and stipulated this the

day of November, 2017.

Duke Energy P ogress, LLC
By:
David B. Fountain
North Carolina President
Public Staff — North Carolina Utilities
Commission
By:
Christopher J. Ayers
Executive Director

 CERTIFICATE OF SERVICE
I certify that I have served a copy of the foregoing Agreement and
Stipulation of Partial Settlement on all parties of record in accordance with
Commission Rule R1-39, by United States mail, postage prepaid, first class; by
hand delivery; or by means of facsimile or electronic delivery upon agreement of
the receiving party.
This the 22nd day of November, 2017.
Electronically submitted
/s/ Dianna Downey

 Duke Energy Progress
Docket No. E-2, Sub 1142
North Carolina Retell Operations
REVENUE IMPACT OF ADJUSTMENTS
For the Test Year Ended December 31, 2016
(in Thousands)
Line
No.

Item

Settlement Exhibit 1
Schedule 1

Public Staff
Amount

Company
Amount

$477,495 ir
(57,958) V
419,537

$477,495
(57,958)
419,537

Change in equity ratio from 53.00% to 52.00% equity
Change in debt cost rate from 4.170% to 4.050%
Change in return on equity from 10.75% to 9.90%
Update plant and accumulated depreciation to August 31, 2017
Update revenues to August 31, 2017
Adjust distribution vegetation management
Adjust Harris COLA annual amortization
Adjust allocations by DEBS to DEP
Adjust for lost Industrial revenues due to Hurricane Matthew
Remove EDIT refund from base rates for treatment as a rider
Remove Customer Connect expanses
Adjust aviation expenses
Adjust executive compensation
Adjust outside services
Remove Duke-Piedmont costs to achieve (CTAs)
Adjust depreciation rates
Adjust incentives
Adjust coal inventory
Adjust Sutton CT blackstart plant cost
Adjust EOL nuclear materials & supplies reserve expense
Adjust Mayo ZLD plant cost
Adjust sponsorships & donations
Adjust lobbying expense
Adjust Board of Directors expense
Adjust Inflation to August 31, 2017
Adjust salaries and wages
Adjust Asheville base load CWIP

(10,492)
(4,681)
(57,081)
(3,102)
(3,464)
0
(3,409)
(160)
(1,696)
37,884 5/
(7,973)
(300)
(239)
(80)
(3,831)
(15,380)
(4,908)
(847)
(396)
(274)
(1,342)
(26)
(601)
(1,395)
6,213
4,653
1,598

(10,492)
(4,681)
(57,081)
(3,102)
(3,464)
0
(3,409)
(160)
(1,696)
37,884
(7,973)
(300)
(239)
(80)
(3,831)
(15,380)
(4,908)
(847)
(396)
(274)
(1,342)
(26)
(601)
(1,395)
6,213
4,653
1,598

Total Settled Issues

(71,329)

(71,329)

Recommended Revenue Requirement after Settled Issues

348,208

348,208

1
2
3

Revenue requirement increase per Company application
Revenue Impact of Company update
Revenue requirement Increase per Company after updates

4

Revenue impact of adjustments: 3/
Settled Issues

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

32

Unsettled Issues
33
34
35

36
37
38
39

Adjust storm costs
Remove ongoing environmental costs
Adjust deferred environmental costs

(21,164)
(129,529)
(53,385)

1,436

Total Unsettled Issues

(204,078)

1,436

Other Adlustments
Interest Synch
Adjust cash working capital under present rates
Adjust cash working capital under proposed rates
Rounding
Total Other Adjustments

40

Total revenue impact of unsettled Issues and other adjustments

41

Recommended Increase In revenue requirement

42
43
44

Recommended increase In base rate revenue requirement (L41)
Annual EDIT Rider recommended for four year period
Recommended revenue requirement for first four years (L42 + L43)

382
(2,159)
3
(1,774)
(205,852)

157
92
(1,361)

(1,112)
324

142,356 at

348,532

$142,356
(42,577) 5/
$99,779

$348,532
(42,577)
$305,955

11 Bateman Exhibit 1, Page 2, Line 8.
2/ Based on updated Bateman Exhibit 1 reflecting supplemental adjustments, including correction to
cash working capital, provided by Company.
3/ Calculated based on Settlement Exhibit 1, Schedules 2, 3, 4, 5, and backup schedules.
4/ Settlement Exhibit 1, Schedule 5, Line 5.
5/ Under the stipulation the EDIT regulatory liability be refunded through a four year rider. As a result,
the Public Staff has removed the amounts included by the Company in the calculation of its revenue
requirement associated with the EDIT refund, and instead has calculated a separate rider that will
credit customers for the EDIT refund over a four year period. The calculation of the annual EDIT rider
Is shown on Settlement Exhibit 2.