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TRANSCRIPT
Andrew J. McNally Assistant General Counsel
609.909.7033 – Telephone 609.393.0243 – Facsimile [email protected]
atlanticcityelectric.com
Mailing Address: 92DC42 PO Box 6066 Newark, DE 19714-6066
Overnight Delivery: 500 N. Wakefield Drive Newark, DE 19702
May 7, 2020
VIA ELECTRONIC MAIL [email protected] [email protected]
Aida Camacho-Welch Secretary of the Board Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, New Jersey 08625-0350
RE: In the Matter of the Petition of Atlantic City Electric Company Concerning the Initial Setting of the Regional Greenhouse Gas Initiative Recovery Charge (“Rider RGGI”) Associated with the New Jersey Solar Transition Incentive Program BPU Docket No.
Dear Secretary Camacho-Welch:
On behalf of Atlantic City Electric Company (“ACE”), enclosed herewith for filing is an electronic copy of a Petition, along with the supporting attachments in the above-referenced matter. A draft Public Notice is also attached to the Petition as Attachment C.
Consistent with the Order issued by the Board in connection with In the Matter of the New Jersey Board of Public Utilities’ Response to the COVID-19 Pandemic for a Temporary Waiver of Requirements for Certain Non-Essential Obligations, BPU Docket No. EO20030254, Order dated March 19, 2020, these documents are being electronically filed with the Secretary of the Board and the New Jersey Division of Rate Counsel. No paper copies will follow.
ACE respectfully requests that the Board retain jurisdiction of this matter and render a decision thereon so that rates can be put into effect by September 1, 2020.
ER20050344
Aida Camacho-Welch May 7, 2020 Page 2
Thank you for your consideration and courtesies. Feel free to contact me with any questions or if I can be of further assistance.
Respectfully submitted,
Andrew J. McNally
Enclosure
cc: Service List
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IN THE MATTER OF THE PETITION OF ATLANTIC CITY ELECTRIC COMPANY CONCERNING THE INITIAL SETTING OF THE REGIONAL GREENHOUSE GAS INITIATIVE RECOVERY CHARGE (“RIDER RGGI”) ASSOCIATED WITH THE NEW JERSEY SOLAR TRANSITION INCENTIVE PROGRAM
STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES
BPU DOCKET NO.
PETITION1
ATLANTIC CITY ELECTRIC COMPANY (“ACE” or the “Company”), a public
utility engaged in the transmission and distribution of electric energy to residential, commercial,
and industrial customers, across a service territory comprising eight counties located in southern
New Jersey and including approximately 556,000 customers,2 respectfully requests that the Board
of Public Utilities (“BPU” or the “Board”) accept this Petition as the Company’s proposal for cost
recovery and the establishment of its initial annual Rider Regional Greenhouse Gas Initiative
Transition Renewable Energy Certificate (“TREC”) Recovery Charge (“Rider RGGI TREC
charge”). The Company submits this Petition pursuant to the Board’s Orders issued in connection
with BPU Docket No. QO19010068 (the “TREC Orders”). The Company hereby seeks approval
of the proposed Rider RGGI TREC charge for the period September 1, 2020 to August 31, 2021
and cost recovery contained herein.
1 In light of exigencies created by the COVID-19 pandemic and the Executive Orders issued pursuant thereto, this Petition is being submitted under Certification in lieu of an Affidavit of Verification.
2 ACE is a direct, wholly owned subsidiary of Pepco Holdings LLC (“PHILLC”), a limited liability company under the laws of the State of Delaware. PHILLC is, in turn, a wholly owned subsidiary of PH Holdco LLC (“PHLLC”), a limited liability company, existing under the laws of the State of Delaware. PHLLC is, in turn, 99.9% owned by Exelon Energy Delivery Company, LLC (“EEDC”), a Delaware limited liability company, existing under the laws of the State of Delaware. EEDC is, in turn, a limited liability company wholly owned by Exelon Corporation.
ER20050344
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I. INTRODUCTION AND BACKGROUND
1. On May 23, 2018, the Clean Energy Act of 2018 (“Clean Energy Act” or “Act”)
was signed into law. The Clean Energy Act required that the Board adopt rules and regulations to
terminate the Solar Renewable Energy Certificate Programs (“SREC”, ”SRP” or “Legacy SREC
Programs”) upon the Board’s determination that 5.1 percent of the kilowatt-hours (“kWh”) sold in
the State by each electric power supplier and each basic generation supplier has been produced by
solar electric power generators connected to the distribution system (the “5.1 percent Milestone”).
2. By Order dated December 6, 2019 (the “December 6, 2019 Order”), the Board
created the Transition Incentive Program (the “TREC Program”), designed to bridge the gap
between the Legacy SREC Program and a to-be-determined Successor Program. The TREC
Program is designed to provide a transition for projects submitted to the Board prior to the adoption
of the Successor Solar Incentive Program. This includes projects that applied to the Legacy SREC
Programs after October 29, 2018, that have yet to commence commercial operations, and that
remain in the SRP pipeline at the time the 5.1 percent Milestone is achieved.3
3. The December 6, 2019 Order required the New Jersey Electric Distribution
Companies (“EDCs”) to work with Staff to jointly procure an administrator (“TREC
Administrator”) to acquire the TRECs on behalf of the EDCs and assist with the retirement of
TRECs for the benefit of load serving entities. The EDCs were ordered to purchase all TRECs
that are created by solar projects in the TREC program at a fixed price, to be set by future Board
Order. The December 6, 2019 Order further provided that:
3 By Order dated April 6, 2020 in BPU Docket No. QO19010068, the Board determined that the 5.1% Milestone would be achieved by April 30, 2020. Note, also that the Board, in its March 27, 2020 Order in Docket No. QO18070698 (the “March 27, 2020 Order”), provided an exception from inclusion in the TREC Program. In pertinent part, the March 27, 2020 Order states “[f]or example, projects that applied to the Board for SREC eligibility pursuant to Subsection t on or before October 29, 2018 and were approved for conditional certification, which provides a two-year registration length, maintain their eligibility for SRECs regardless of when the state attains the 5.1 percent Milestone.” See March 27, 2020 Order, at 3.
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[T]he EDCs may recover reasonable and prudent costs for TRECs procurement and TREC Administrator fees. Recovery shall be based on each EDC’s proportionate share of retail electric sales. Each EDC shall make an annual filing for its costs and the recovery method, which shall be subject to approval by the Board.4
4. During the process of working with Staff the EDCs were provided a schedule of
estimated TREC procurement costs prepared by Staff (“TREC Procurement Schedule”). The
TREC Procurement Schedule provided that the EDCs will make periodic payments for the
procurement of TRECs based on TRECs generated following initiation of the TREC Program. As
of the date of this filing, the TREC program has not yet been initiated.
5. In accordance with the December 6, 2019 Order, ACE shall recover its portion of
the costs to procure the TRECs generated by projects in the TREC Program and the TREC
Administrator’s fees, as well as any other direct costs associated with its’ obligations for
participation in the TREC Program, through a separate component of its Rider RGGI tariff.
6. After issuance of the December 6, 2019 Order, the EDCs began working together
on the joint procurement of a TREC Administrator. As of the date of this filing, the EDCs are in
the process of evaluating bids received for the Request for Proposal (“RFP”) for the TREC
Administrator. For purposes of this filing, the EDCs have agreed that a reasonable estimate of the
projected annual costs for the TREC Administrator fees is estimated to be $900,000 annually
(“TREC Administrator Fee”).
7. Additionally, by Order dated March 9, 2020 in Docket No. QO19010068 (the
“March 9, 2020 Order”) the Board determined that the appropriate base compensation for solar
developers in the Transition Incentive program should be set at $152 per TREC. As noted in the
March 9, 2020 Order, the specific value of a TREC earned would be calculated by multiplying the
“factor” assigned to each TREC project with the base compensation for the appropriate year.
4 December 6, 2019 Order, at 34.
4
8. Annexed hereto as Attachment A is ACE’s calculation of the annual total revenue
requirement necessary to recover its portion of the costs of the TREC program, including the
estimated TREC Administrator Fee for the first year of the TREC program. As noted above, for
purposes of this calculation, the estimated TREC Administrator Fee for the initial program year is
$900,000. In accordance with the December 6, 2019 Order, ACE’s share of the program costs is
based on its percentage allocation of retail electric billed sales during calendar year 2019. The
estimated TREC procurement costs are based on the TREC Procurement Schedule provided by
Staff. Based on the foregoing, the Company’s projected revenue requirement for the period July
1, 2020 through August 31, 2021 (“the initial program year”) is $4,468,211.
9. Based on the Company’s projected revenue requirement of $4,468,211, ACE
proposes to set the rate for the TREC component of its Rider RGGI recovery charge at $0.000559
per kWh (the “initial TREC charge”), to be effective September 1, 2020. The initial TREC charge
shall recover program costs incurred for the initial program year. Following the initial program
year, all subsequent program years shall be for the period September 1st through August 31st of
the following year. For each subsequent program year thereafter, the Company shall file a petition
seeking to reconcile any over/under recovery from the prior program year and set the TREC charge
for the succeeding program year. As with other programs included in ACE’s Rider RGGI tariff,
namely ACE’s SREC I and SREC II programs (the “SREC programs”)5, revenues received from
the TREC Program will be applied to reduce the costs to be recovered through the RGGI Rider
TREC charge. As with the SREC programs, ACE proposes that the interest rate on over and under
recoveries will be the interest rate based on two-year constant maturity Treasuries as published in
the Federal Reserve Statistical Release on the first day of each month (or the closest day thereafter
5 Currently, ACE’s Rider RGGI also includes its Residential Controllable Smart Thermostat Program, which is scheduled to be terminated as of May 31, 2020.
5
on which rates are published), plus sixty basis points, but will not exceed the overall rate of return
for ACE as authorized by the Board. The interest rate will be reset each month and its calculation
will be based on the net of tax beginning and ending average monthly balance. ACE will accrue
simple interest with an annual roll-in at the end of each year.
II. BASIS FOR RELIEF
10. By this Petition, the Company seeks approval by the Board of a proposed initial
tariff provision in the Rider RGGI associated with the TREC Program.6
11. As noted in Attachment A, ACE will incur a total annual revenue requirement for
the initial TREC Program year of $4,468,211, inclusive of its proportionate share of the estimated
TREC procurement costs and the Administrator Fee. Based upon calculations performed by the
EDCs, ACE’s proportionate percentage of total electric retail sales in 2019 has been determined
to be 12.36 percent.
12. Based upon ACE’s total annual revenue requirement for the initial TREC Program
year of $4,468,211 ACE proposes to establish its initial TREC charge to be $0.000559 per kWh.
For an average residential customer using approximately 679 kWh per month, the implementation
of the TREC charge represents an increase of approximately $0.38 or 0.29% on a total monthly
bill. Included herewith as Attachment B is the proposed initial Rider RGGI tariff page for the
TREC Program.
III. PUBLIC NOTICE AND SERVICE
13. Inasmuch as the Company is seeking a new tariff charge for the TREC Program,
there will be an increase in the overall rates and charges on customers resulting from the
implementation of the TREC Program. Accordingly, the Company is required to publish and serve
6 It should be noted that the TREC Program that is the subject of the instant Petition is not associated with -- and has no impact on – the SREC Financing Programs (SREC I and SREC II) that were previously approved by the Board.
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a Public Notice, which shall set forth the dates and times for public hearings in the Company’s
service area pursuant to N.J.A.C. 14:1-5.12(b)1 and 3, (c) and (d). Due to the COVID-19
pandemic, the Company proposes that telephonic hearings on the Petition be conducted at a date
and times to be agreed upon by the parties, and to be included in the Public Notice. A copy of the
Company’s proposed Public Notice is included herewith as Attachment C.
14. Notice of this filing along with any and all schedules, exhibits, and attachments,
shall be sent to the Department of Law and Public Safety, 25 Market Street, P.O. Box 112, Trenton,
New Jersey 08625, and to the Director of the Division of Rate Counsel, 140 East Front Street, P.O.
Box 003, Trenton, New Jersey 08625, by electronic mail only. Electronic copies of the Petition,
along with all schedules, exhibits, and attachments, shall be sent to the persons identified in the
Service List attached hereto. This is consistent with the Order issued by the Board in connection
with In the Matter of the New Jersey Board of Public Utilities’ Response to the COVID-19
Pandemic for a Temporary Waiver of Requirements for Certain Non-Essential Obligations, BPU
Docket No. EO20030254 (March 19, 2020).
IV. COMMUNICATIONS
15. Communications and correspondence regarding this matter should be sent to
Petitioner’s counsel at the following address:
Andrew J. McNally, Esquire Assistant General Counsel Atlantic City Electric Company – 92DC42 500 North Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 Phone: (609) 909-7033 [email protected]
and
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Philip J. Passanante, Esquire Assistant General Counsel Atlantic City Electric Company – 92DC42 500 North Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 Phone: (609) 909-7034 [email protected]
with copies to the following representatives of the Company:
Susan DeVito Director, Pricing and Regulatory Services Pepco Holdings LLC – 92DC56 500 North Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 [email protected]
Thomas M. Hahn Principal Rate Analyst Atlantic City Electric Company – 63ML38 5100 Harding Highway Mays Landing, NJ 08330 [email protected]
and
Heather Hall Manager, Regulatory Affairs – New Jersey Pepco Holdings LLC – 92DC56 500 North Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 [email protected]
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WHEREFORE, the Petitioner, ATLANTIC CITY ELECTRIC COMPANY,
respectfully requests that the Board of Public Utilities issue an Order as follows:
A. approving the Company’s proposed participation in the TREC Program, as well as
its proposals regarding the timing and methodology for recovery of its just and
reasonable program costs associated with its participation in the TREC Program, as
more fully set forth herein. The Company further requests that the Board accept
and approve the setting of its initial TREC Rider RGGI charge at $0.000559 per
kWh for recovery of its TREC Program’s direct costs; and
B. granting such other or further relief as may be necessary to implement the purposes
stated herein.
Respectfully submitted,
ATLANTIC CITY ELECTRIC COMPANY
Dated: May 7, 2020 ______________________________ Andrew J. McNally Assistant General Counsel Atlantic City Electric Company – 92DC42 500 N. Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 Phone: 609.909.7033 Fax: 609.393.0243 [email protected]
Philip J. Passanante Assistant General Counsel Atlantic City Electric Company – 92DC42 500 N. Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 Phone: 609.909.7034 [email protected]
May 6, 2020
Attachment A
Attachment APage 1 of 3
ATLANTIC CITY ELECTRIC COMPANYRGGI Recovery ChargeTransition Renewable Energy Certificate (TREC) Solar Program
SECTION I FORECASTED YEAR RECOVERY SCHEDULE
Table 1 - Forecasted Program Year Monthly ACE Delivered Sales (MWH)
Sep-20 1,007,961Oct-20 543,657Nov-20 582,417Dec-20 621,099Jan-21 737,005Feb-21 690,017Mar-21 681,000Apr-21 572,431May-21 566,136June-21 655,893July-21 911,112Aug-21 968,315
8,537,043
Table 2 - TREC Forecasted Program Year Revenue Requirement(ACE's Share -12.18%)
(1) (2) (3) (4)= Col 2 +Col 3
Monthly TREC Administrator RevenueMonth TREC Costs Fee Requirement
Jul-20 8,599$ 9,273$ 17,872$ Aug-20 64,319$ 9,273$ 73,593$ Sep-20 117,874$ 9,273$ 127,147$ Oct-20 129,198$ 9,273$ 138,471$ Nov-20 135,840$ 9,273$ 145,113$ Dec-20 153,826$ 9,273$ 163,099$ Jan-21 228,032$ 9,273$ 237,305$ Feb-21 290,223$ 9,273$ 299,496$ Mar-21 405,781$ 9,273$ 415,054$ Apr-21 471,756$ 9,273$ 481,029$ May-21 526,604$ 9,273$ 535,877$ June-21 608,303$ 9,273$ 617,576$ July-21 602,039$ 9,273$ 611,312$ Aug-21 595,993$ 9,273$ 605,266$
4,338,386$ 129,825$ 4,468,211$
SECTION II RGGI RECOVERY CHARGE (TREC COMPONENT) CALCULATION
Forecasted Revenue Requirement (Jul20-Aug21) 4,468,211$
Retail Sales - kwh 8,537,042,858$/KWH Surcharge 0.000523$ BPU Assessment 0.000001$ $/KWH Surcharge with SUT 0.000559$
Attachment APage 2 of 3
ATLANTIC CITY ELECTRIC COMPANYNJ EDC TREC ForecastTransition Renewable Energy Certificate (TREC) Solar Program
Annual Administrator Fee $900,000TREC $/MWh $152.00
12.36%
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
Program Assumption
Program Assumption
Program Assumption
Col 2 * Col 3Program
AssumptionProgram
AssumptionProgram
Assumption
([Factor Col 5] * Col 5 + [Factor Col 6] * Col 6 + [Factor Col 7] * Col 7) *
[TREC Price] * Col 4
Prior Col 10 + Col 8
Sum of Col 4 per Col 9
Program Assumption
Col 8 + Col 12Col 13 * [ACE
Share] per Month
Calendar
New TI Project
Capacity by Month's End
Effective Generating
CapacityProduction
Estimate TRECs Created
Sub t, Sub r Roof & NM
NR Roof Comm Solar
Sub r Grnd, Resi Grnd & roof,NM NR
GrndTREC Procurement
Payments
Cumulative TREC Cost / Energy Year
TRECs / Energy Year
TREC Administrator
Fee
TRECProcurement
Payment + Administrator
Fee
Month
TREC Procurement Payments +
Administrator Fee -
ACE ShareYear Month (MWdc) (MWdc) (MWh/MW) (MWh) 1.00 0.85 0.6 ($) EY ($) (MWh) ($) ($)
1 2020 July 30 5 123 615 36% 0% 64% $69,549 21 $69,549 $75,000 $144,549 1 Jul-20 $17,8722 August 40 40 115 4,600 36% 0% 64% $520,205 21 $589,754 $75,000 $595,205 2 Aug-20 $73,5933 September 35 80 100 8,000 46% 0% 54% $953,344 21 $1,543,098 $75,000 $1,028,344 3 Sep-20 $127,1474 October 30 110 84 9,240 36% 0% 64% $1,044,933 21 $2,588,031 $75,000 $1,119,933 4 Oct-20 $138,4715 November 35 145 67 9,715 36% 0% 64% $1,098,650 21 $3,686,681 $75,000 $1,173,650 5 Nov-20 $145,1136 December 30 180 58 10,440 46% 0% 54% $1,244,114 21 $4,930,795 $75,000 $1,319,114 6 Dec-20 $163,0997 2021 January 30 220 72 15,840 34% 12% 54% $1,844,283 21 $6,775,078 $75,000 $1,919,283 7 Jan-21 $237,3058 February 20 240 84 20,160 34% 12% 54% $2,347,269 21 $9,122,347 $75,000 $2,422,269 8 Feb-21 $299,4969 March 30 270 102 27,540 40% 12% 47% $3,281,887 21 $12,404,234 $75,000 $3,356,887 9 Mar-21 $415,054
10 April 20 290 113 32,770 34% 12% 54% $3,815,477 21 $16,219,710 $75,000 $3,890,477 10 Apr-21 $481,02911 May 20 310 118 36,580 34% 12% 54% $4,259,083 21 $20,478,793 175,500 $75,000 $4,334,083 11 May-21 $535,87712 June 15 325 118 38,350 46% 12% 47% $4,919,845 22 $4,919,845 $75,000 $4,994,845 12 Jun-21 $617,57613 July 15 340 123 41,820 34% 12% 54% $4,869,186 22 $9,789,031 $75,000 $4,944,186 13 Jul-21 $611,31214 August 20 360 115 41,400 34% 12% 54% $4,820,285 22 $14,609,316 121,570 $75,000 $4,895,285 14 Aug-21 $605,266
Notes: 1Allocations for certain months intentionally do not add to 100%.
Column (1): Program assumption from BPU Staff that represents the solar capacity (MWdc) that is available to generate TRECs at the end of each month.Column (2): Program assumption from BPU Staff that represents the effective solar generation capacity (MWdc) that is available throughout each month.Column (3): The amount of solar generation output that is expected from each MWdc of Effective Generating Capacity (MWh/MWdc). It is based upon data sourced from PVWatts® Calculator (“PVWatts”),
which is an interactive website made available by the National Renewable Energy Laboratory (NREL). BPU Staff utilized PVWatts by entering typical system parameters for NJ solar facilities and using PVWatts output to develop the monthly Production Rate Estimates.
Column (4): The monthly quantity of TRECs created by TREC eligible solar generation facilities. It is calculated based upon Effective Generation Capacity (Column 2) multiplied by the Production Estimate (Column 3).Column (5): The respective allocation percentage of the monthly generation amount from the classification of TREC eligible solar generation systems and their associated TREC Factor.Column (6): The respective allocation percentage of the monthly generation amount from the classification of TREC eligible solar generation systems and their associated TREC Factor.Column (7): The respective allocation percentage of the monthly generation amount from the classification of TREC eligible solar generation systems and their associated TREC Factor.Column (8): The sum product of monthly TRECs Created (Column 4) and the Solar System Allocation Percentages and their corresponding TREC Price Multipliers (Columns 5, 6 & 7).Column (12): The monthly expense for the TREC Administrator to manage and implement the TREC Program on behalf the NJ EDCs.Column (13): The sum of the TREC Procurement Payment (Column 8) and the TREC Administrator Fee (Column 12).Column (14): ACE’s share of the TREC Procurement Payments + Administrator Fee.
NJ EDC TREC Forecast
TREC Revenue Requirements
Solar System Allocation Percentages and TREC Price Multipliers1
ACE Share
Attachment APage 3 of 3
ATLANTIC CITY ELECTRIC COMPANYEDC 2019 Actual Billed Sales (kWh) Transition Renewable Energy Certificate (TREC) Solar Program
1 2 3 4 5 6 7 8 9 10 11 122019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019
January February March April May June July August September October November December Total
PSE&G 3,472,005,204 3,351,621,056 3,202,163,059 2,923,580,867 2,822,983,863 3,248,911,858 4,133,299,028 4,325,839,886 3,745,915,833 3,151,586,382 2,927,014,413 3,336,064,044 40,640,985,493 57.12%JCP&L 1,812,110,003 1,679,817,468 1,575,269,797 1,390,698,301 1,355,704,052 1,571,256,544 2,050,540,188 2,262,213,672 1,951,237,791 1,568,621,399 1,372,331,356 1,599,589,737 20,189,390,308 28.37%ACE 749,418,969 678,560,889 655,578,040 586,121,430 592,639,954 701,061,303 955,470,107 1,040,966,487 917,258,921 667,991,887 596,450,488 656,071,962 8,797,590,437 12.36%RECO 127,661,261 114,237,067 104,885,088 109,253,614 110,132,430 123,975,834 168,634,790 173,412,533 141,636,572 117,380,024 114,699,379 119,500,727 1,525,409,319 2.14%
Total 6,161,195,437 5,824,236,480 5,537,895,984 5,009,654,212 4,881,460,299 5,645,205,539 7,307,944,113 7,802,432,578 6,756,049,117 5,505,579,692 5,010,495,636 5,711,226,470 71,153,375,557 100.00%
Attachment B Clean
Attachment B Page 1 of 1
ATLANTIC CITY ELECTRIC COMPANY BPU NJ No. 11 Electric Service - Section IV Revised Sheet Replaces Revised Sheet No. 64
RIDER RGGI
Regional Greenhouse Gas Initiative Recovery Charge
A. Applicability
This Rider is applicable to Rate Schedules RS, MGS Secondary, MGS Primary, AGS Secondary, AGS Primary, TGS, DDC, SPL and CSL. Amounts billed to customers shall include a charge to reflect regional greenhouse gas initiative program costs. Except where indicated otherwise, Rider “RGGI” will be determined annually based on projections of program costs (including an adjustment for variances between budgeted and actual prior year expenditures) and forecasts of kilowatt hour sales. The charge (in dollars per kilowatt hour) will be computed by dividing the total annual amount to be recovered for by forecasted retail sales (in kilowatt hours). RGGI Programs Residential Controllable Smart Thermostat Program (RCSTP) ($/kWh) $0.000000 This charge component is intended to recover costs associated with the Residential Controllable Smart Thermostat Demand Response Program. Solar Renewable Energy Certificate (SREC) ($/kWh) $0.000334 This charge component is intended to recover net costs associated with the Solar Renewable Energy Certificate Program. Solar Renewable Energy Certificate (SREC II) ($/kWh) $0.000000 This charge component is intended to recover net costs associated with the Solar Renewable Energy Certificate II Program. Transition Renewable Energy Certificate (TREC) ($/kWh) $0.000559 This charge component is intended to recover net costs associated with the Solar Transition Incentive Program. Date of Issue: Effective Date: Issued by:
Attachment B Redlined
Attachment B Page 1 of 1
ATLANTIC CITY ELECTRIC COMPANY BPU NJ No. 11 Electric Service - Section IV Seventeenth Revised Sheet Replaces Sixteenth Revised Sheet No. 64
RIDER RGGI
Regional Greenhouse Gas Initiative Recovery Charge
A. Applicability
This Rider is applicable to Rate Schedules RS, MGS Secondary, MGS Primary, AGS Secondary, AGS Primary, TGS, DDC, SPL and CSL. Amounts billed to customers shall include a charge to reflect regional greenhouse gas initiative program costs. Except where indicated otherwise, Rider “RGGI” will be determined annually based on projections of program costs (including an adjustment for variances between budgeted and actual prior year expenditures) and forecasts of kilowatt hour sales. The charge (in dollars per kilowatt hour) will be computed by dividing the total annual amount to be recovered for by forecasted retail sales (in kilowatt hours). RGGI Programs Residential Controllable Smart Thermostat Program (RCSTP) ($/kWh) $0.000000 This charge component is intended to recover costs associated with the Residential Controllable Smart Thermostat Demand Response Program. Solar Renewable Energy Certificate (SREC) ($/kWh) $0.000334 This charge component is intended to recover net costs associated with the Solar Renewable Energy Certificate Program. Solar Renewable Energy Certificate (SREC II) ($/kWh) $0.000000 This charge component is intended to recover net costs associated with the Solar Renewable Energy Certificate II Program. Transition Renewable Energy Certificate (TREC) ($/kWh) $0.000559 This charge component is intended to recover net costs associated with the Solar Transition Incentive Program. Date of Issue: February 19, 2019 Effective Date: March 1, 2020 Issued by: David M. Velazquez, President and Chief Executive Officer – Atlantic City Electric Company Filed pursuant to Board of Public Utilities of the State of New Jersey directives associated with the BPU Docket Nos. ER19060697 AND ER19070816 Issued by:
Attachment C
Attachment C Page 1 of 2
NOTICE OF FILING AND PUBLIC HEARINGS
TO CUSTOMERS OF ATLANTIC CITY ELECTRIC COMPANY
In the Matter of the Verified Petition of Atlantic City Electric Company concerning the
Initial Setting of the Regional Greenhouse Gas Initiative Recovery Charge (“Rider RGGI”) Associated with the New Jersey Solar Transition Incentive Program (2020)
BPU Docket No. _________________
PLEASE TAKE NOTICE that, on or about May 7, 2020, Atlantic City Electric Company (“ACE” or the “Company”) filed a Petition (the “Petition”) with the New Jersey Board of Public Utilities (the “Board” or “BPU”) to establish an initial Rider Regional Greenhouse Gas Initiative Transition Renewable Energy Certificate (“TREC”) Recovery Charge (“Rider RGGI TREC Charge”). ACE’s Rider RGGI TREC charge is intended to allow the Company to recover its costs and expenses incurred as a result of its compliance with the Board’s Orders in BPU Docket No. QO19010068 establishing the TREC Program. The TREC Program was created by the Board to foster the continued development of solar renewable power generation in the State of New Jersey. As filed, the Petition proposed to set the initial Rider RGGI TREC charge to become effective on and after September 1, 2020 reflecting projected program costs and revenues for the period July 1, 2020 through August 31, 2021. The Company’s projected program revenue requirement of $4,468,211 is primarily based upon forecasts developed by the Staff of the Board. The proposed Rider RGGI TREC charge for all rate classes is $0.000559 per kWh. The approximate impact of the proposed increase on a typical residential customer’s monthly bill, subject to Board approval of the proposed change to Rider RGGI, is demonstrated in Table 1.
TABLE 1
IMPACT OF RIDER RGGI CHANGE ON RESIDENTIAL ELECTRIC BILLS
Monthly kWh Use
Present Bill
Proposed Bill
Proposed Increase ($)
Proposed Increase (%)
100 $24.11 $24.17 $0.06 0.25% 300 $60.80 $60.97 $0.17 0.28% 500 $97.50 $97.78 $0.28 0.29% 750 $143.35 $143.77 $0.42 0.29% 1000 $190.94 $191.50 $0.56 0.29% 2000 $381.26 $382.38 $1.12 0.29% 2500 $476.42 $477.82 $1.40 0.29% 3000 $571.59 $573.26 $1.67 0.29%
Based upon the Company’s filing, a typical residential customer using 679 kWh per month would see an increase in the customer’s monthly bill of $0.38 or 0.29%.
Attachment C Page 2 of 2
It is important to note that the resolution of this Petition and the reconciliation of these accounts will not result in any profit to the Company. The Board has the statutory and regulatory authority to approve and establish the reconciliation of these accounts and charges at levels it finds just and reasonable. Therefore, the BPU may determine and establish these charges at levels other than those proposed by ACE. This Petition was filed with the Board and copies were also served upon Rate Counsel. Copies of the Petition are posted on ACE’s website at www.atlanticcityelectric.com/PublicPostings. The following date, time(s), and location for virtual public hearings have been scheduled on the Petition so that members of the public may present their views:
Date: , 2020 Date: , 2020 Time: ___________ Time: ___________ Dial-in Number: 1-855-470-3100 Passcode: 617161#
Dial-in Number: 1-855-470-3100 Passcode: 617161#
Due to the COVID-19 pandemic, a telephonic hearing on the Petition will be conducted at the date and times listed above by a hearing officer designated by the Board. Representatives of the Board’s Staff and the Division of Rate Counsel will participate via phone in the public hearing. Members of the public are invited to listen and participate by phone via the above designated dial-in number and passcode and may express their views on this filing. Such comments will be made a part of the final record of the proceeding to be considered by the Board. Customers may also file written comments with the Secretary of the Board of Public Utilities at 44 South Clinton Avenue, 9th Floor, Trenton, New Jersey 08625-0350 or [email protected], whether or not they participate in the public hearings.
Dated: __________, 2020 Atlantic City Electric Company
IN THE MATTER OF THE PETITION OF ATLANTIC CITY ELECTRIC COMPANY CONCERNING THE INITIAL SETTING OF THE REGIONAL GREENHOUSE GAS INITIATIVE RECOVERY CHARGE (“RIDER RGGI”) ASSOCIATED WITH THE NEW JERSEY SOLAR TRANSITION INCENTIVE PROGRAM
STATE OF NEW JERSEY
BOARD OF PUBLIC UTILITIES
CERTIFICATION OF SERVICE
ANDREW J. MCNALLY, of full age, certifies as follows:
1. I am an attorney at law of the State of New Jersey and I am Assistant General
Counsel to Atlantic City Electric Company, the Petitioner in the within matter, with which I am
familiar.
2. I hereby certify that, on the date below, I caused the within Petition and the
supporting attachments thereto, to be filed with the New Jersey Board of Public Utilities through
its eFiling Portal. I also caused an electronic copy to be sent to the Board Secretary’s office at
3. I further certify that, on the date below, I caused a complete copy of the Petition
and the supporting schedules, attachments and/or exhibits thereto, to be sent by electronic mail to
each of the parties listed in the attached Service List.
4. Consistent with the Order issued by the Board in connection with In the Matter of
the New Jersey Board of Public Utilities’ Response to the COVID-19 Pandemic for a Temporary
Waiver of Requirements for Certain Non-Essential Obligations, BPU Docket No. EO20030254,
Order dated March 19, 2020, only electronic copies of this Petition have been served on persons
on the service list.
5. I further and finally certify that the foregoing statements made by me are true. I
am aware that, if any of the foregoing statements made by me are willfully false, I am subject to
punishment.
Dated: May 7, 2020 ANDREW J. MCNALLY
In the Matter of the Petition of Atlantic City Electric Company Concerning the Initial Setting of the Regional Greenhouse Gas Initiative Recovery Charge (“Rider RGGI”) Associated with the
New Jersey Solar Transition Incentive Program BPU Docket No.
Service List
BPU Aida Camacho-Welch Secretary of the Board Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected] [email protected]
Abraham Silverman, Esquire Chief Counsel Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Stacy Peterson Director, Division of Energy Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Rachel Boylan, Esquire Legal Specialist Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Ilene Lampitt, Esquire Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Paul Lupo Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Stephan Luma Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Andrea Hart Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
B. Scott Hunter Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Christine Lin Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Ryan Moran Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
Jackie O’Grady Board of Public Utilities 44 South Clinton Avenue, 9th Floor P.O. Box 350 Trenton, NJ 08625-0350 [email protected]
DIVISION OF LAW Pamela L. Owen, Esquire Division of Law Hughes Justice Complex 25 Market Street P.O. Box 112 Trenton, NJ 08625 [email protected]
Jenique Jones Division of Law Hughes Justice Complex 25 Market Street P.O. Box 112 Trenton, NJ 08625 [email protected]
RATE COUNSEL Stefanie A. Brand, Esquire Director Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected]
Maura Caroselli, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected]
Ami Morita, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected]
Felicia Thomas-Friel, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected]
Sarah Steindel, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected]
Brian O. Lipman, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected]
ER20050344
James Glassen, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected] Kurt Lewandowski, Esquire Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected] Shelley Massey Division of Rate Counsel 140 East Front Street, 4th Floor P.O. Box 003 Trenton, NJ 08625-0003 [email protected] ACE Andrew J. McNally, Esquire Atlantic City Electric Company 92DC42 500 N. Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 [email protected] Philip J. Passanante, Esquire Atlantic City Electric Company 92DC42 500 N. Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 [email protected] Susan DeVito Director Pricing & Regulatory Services 92DC56 Pepco Holdings, LLC 500 N. Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 [email protected] Thomas M. Hahn Principal Rate Analyst 63ML36 Atlantic City Electric Company 5100 Harding Highway Mays Landing, NJ 08330 [email protected]
Heather Hall Manager, Regulatory Affairs NJ Atlantic City Electric Company 92DC56 500 N. Wakefield Drive P.O. Box 6066 Newark, DE 19714-6066 [email protected]