john c. frain cc: paula carmody, office of people’s counsel … · maryland program filing plan...
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John C. Frain Director Regulatory Strategy & Revenue Policy P.O. Box 1475 Baltimore, Maryland 21203-1475
Telephone 410.470.1169 Fax 410.470.8022 www.bge.com [email protected]
Via Electronic Filing
November 20, 2017
Mr. David J. Collins
Executive Secretary
Public Service Commission of Maryland, 16th Flr.
William Donald Schaefer Tower
6 St. Paul Street, 16th Floor
Baltimore, Maryland 21202 - 6806
Re: Supplement No. 439 to P.S.C. Md. G-9: Rider 1 – Gas Efficiency Charge
Dear Mr. Collins:
Baltimore Gas and Electric Company (“BGE” or the “Company”) hereby files Supplement No. 439
to P.S.C. Md. G-9. This Supplement revises the residential Gas Efficiency Charge for Gas Rate Schedule D
from $0.0438 per therm to $0.0469 per therm, effective with January 2018 billings. As a result, the average
monthly Gas Efficiency Charge for a typical residential gas customer using 57 therms per month will
increase from $2.50 per month to $2.67 per month. The increase to the Charge is primarily the result of
adding a new year of amortization expenses at a higher spend level while dropping off an early year of
amortization expense at a lower spend level. This filing also includes the 2018 forecasted costs associated
with BGE’s September 1, 2017 proposed 2018-2020 EmPower Maryland program filing currently pending.
Attached are the documents supporting the development of the proposed $0.0469 per therm Charge
and the “red-lined” and “clean” Rider 1 tariff pages including the proposed Charge.
BGE respectfully requests consideration of the Rider 1 Charge at the December 13, 2017
Administrative Meeting. If the Commission issues an order on the proposed 2018-2020 EmPOWER
Maryland program filing plan that impacts the proposed Rider 1 Charge, BGE will update this filing to
incorporate any necessary edits.
Respectfully Submitted,
John C. Frain
Attachments
Cc: Paula Carmody, Office of People’s Counsel
Supplement No. 439
(Redline)
Baltimore Gas and Electric Company – Gas 83
P.S.C. Md. – G-9 (Suppl. 439428) Filed 11/20/201711/21/2016 – Effective with January20182017 Billings
RIDERS
1. Gas Efficiency Charge
Rates for service under the Company’s rate schedules are subject to the Charge to recover EligibleCosts (hereinafter defined) applicable to that rate schedule incurred by the Company for conservation programdesign and for specific conservation programs approved for inclusion in the Charge by the Commission. TheCharge is calculated for a 12-month cost recovery period beginning January 1 of each year, using theprocedures described below.
Calculation of Efficiency ChargeThe Charge for the 12-month period beginning January 1 of each year is determined for each rate
schedule by dividing Eligible Costs expected to be allocated to the schedule for the 12-month period by thetherm sales expected for that rate schedule over the 12-month period. Subject to prior Commission approval,the Charge may be revised at any time to include additional conservation programs or to otherwise adjust forsignificant changes in Eligible Costs. Details concerning the calculation of the Charge are filed with andapproved by the Commission prior to their use in billing.
The Charge effective with January 20182017 billings is as follows:
Rate Schedule Rate ($ per therm)D 0.04690.0438
Eligible CostsTotal costs eligible for recovery in a 12-month Charge period are the program design costs and
the implementation costs of programs approved by the Commission incurred from the following costcategories:
(1) Program Costs. These include program design costs, and implementation costs such as customereducation, marketing, rebates and buy-downs, capital, measurement and verification (M&V) andevaluation for approved conservation programs. The regulatory asset is amortized over fiveyears and earns a return at the rate of the Company’s most recent authorized Gas System rate ofreturn.
(2) Imbalances. For each rate schedule, Imbalances are the differences between cumulative costseligible for recovery and revenues collected through the Charge as of December 31 of each year.The estimated Imbalance includes 9 months of actual and 3 months of estimated data. AnImbalance is debited or credited against the costs eligible for recovery during the 12-monthsbeginning January 1. During its disposition, an Imbalance earns interest at the rate of theCompany’s most recent authorized Gas System rate of return. Such rate is adjusted for taxes,when the Imbalance represents an under-collection of costs to the Company.
Supplement No. 439
(Clean)
Baltimore Gas and Electric Company – Gas 83
P.S.C. Md. – G-9 (Suppl. 439) Filed 11/20/2017 – Effective with January 2018 Billings
RIDERS
1. Gas Efficiency Charge
Rates for service under the Company’s rate schedules are subject to the Charge to recover EligibleCosts (hereinafter defined) applicable to that rate schedule incurred by the Company for conservation programdesign and for specific conservation programs approved for inclusion in the Charge by the Commission. TheCharge is calculated for a 12-month cost recovery period beginning January 1 of each year, using theprocedures described below.
Calculation of Efficiency ChargeThe Charge for the 12-month period beginning January 1 of each year is determined for each rate
schedule by dividing Eligible Costs expected to be allocated to the schedule for the 12-month period by thetherm sales expected for that rate schedule over the 12-month period. Subject to prior Commission approval,the Charge may be revised at any time to include additional conservation programs or to otherwise adjust forsignificant changes in Eligible Costs. Details concerning the calculation of the Charge are filed with andapproved by the Commission prior to their use in billing.
The Charge effective with January 2018 billings is as follows:
Rate Schedule Rate ($ per therm)D 0.0469
Eligible CostsTotal costs eligible for recovery in a 12-month Charge period are the program design costs and
the implementation costs of programs approved by the Commission incurred from the following costcategories:
(1) Program Costs. These include program design costs, and implementation costs such as customereducation, marketing, rebates and buy-downs, capital, measurement and verification (M&V) andevaluation for approved conservation programs. The regulatory asset is amortized over fiveyears and earns a return at the rate of the Company’s most recent authorized Gas System rate ofreturn.
(2) Imbalances. For each rate schedule, Imbalances are the differences between cumulative costseligible for recovery and revenues collected through the Charge as of December 31 of each year.The estimated Imbalance includes 9 months of actual and 3 months of estimated data. AnImbalance is debited or credited against the costs eligible for recovery during the 12-monthsbeginning January 1. During its disposition, an Imbalance earns interest at the rate of theCompany’s most recent authorized Gas System rate of return. Such rate is adjusted for taxes,when the Imbalance represents an under-collection of costs to the Company.
Supplement No. 439
ATTACHMENT
EXH. 1 ATT.1
TOTALRATE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURES
PROGRAM SCHEDULE (2012) (2013) (2014) (2015) (2016) (2017) (2012) - (2017)(1) (1a) (1b) (1c) (1d) (1e) 2
SOURCE: (1) + (1a) + (1b) + (1c) + (1d) + (1e)
Residential - EE&C D 13,539,484$ 12,533,934$ 16,218,395$ 12,937,280$ 14,721,838$ 14,874,622 84,825,554
6TH YR AMORT. 5TH YR AMORT. 4TH YR AMORT.3RD YR AMORT.2ND YR AMORT.1st YR AMORT. TOTAL AMORTIZED UNAMORTIZEDRATE FOR 2012 FOR 2013 FOR 2014 FOR 2015 FOR 2016 FOR 2017 AMORTIZED COSTS ADJ. BALANCE
PROGRAM SCHEDULE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURES FOR TAXES 12/31/2017(3) (3a) (3b) (3c) (3d) (3e) 4 5 6
SOURCE: (3) + (3a) + (3b)+ (3c)+ (3d) + (3e) (4) /(1-0.021877) (2) - (4)
- (Prior Yrs. Amortization)Residential - EE&C D 1,331,419$ 2,506,787$ 3,243,679$ 2,587,456$ 2,944,368$ 1,494,275$ 14,107,983$ 14,423,526$ 36,238,668$
BALTIMORE GAS AND ELECTRIC COMPANYCOMPUTATION OF 2017 GAS AMORTIZED PROGRAM EXPENDITURES
EXPENDITURES
AMORTIZED EXPENDITURES
EXH.1 ATT.2
BEGINNING ENDING AVG BAL NET
RATE BALANCE BALANCE AVERAGE OF DEFERRED
PROGRAM SCHEDULE 1/1/2017 12/31/2017 BALANCE TAXES RETURN
(1) (2) (3) (4) (5)
SOURCE: Exh.1-Att.1, Col. 6 [(1)+(2)] / 2 (3) x 0.596375 (4) x 0.1104
Residential - EE&C D 35,217,429$ 36,238,668$ 35,728,048$ 21,307,315$ 2,352,328$
BALTIMORE GAS AND ELECTRIC COMPANYCOMPUTATION OF 2017 GAS PROGRAM EARNINGS
EXH. 1 ATT.3
AMORTIZED TOTAL
RATE CALENDAR PROGRAM TRUE UP PRIOR YEAR RECOVERABLE GROSS CARRYING NET
PROGRAM SCHEDULE REVENUES COSTS RETURN 2016 IMBALANCE EXPENSES IMBALANCE COSTS IMBALANCE(1) (2) (3) (4) (5) (6) (7) (8) (9)
SOURCE:
2017 Actuals Through
Sept, Forecast Oct-Dec Exh.1-Att.1, Col. 5Exh.1-Att.2, Col. 5 Prior Year Filing (2) + (3) + (4) + (5) (6) - (1) (7) + (8)
Exh.2-Att.3, Col. 3
Residential - EE&C D 16,406,027$ 14,423,526$ 2,352,328$ (44,512)$ 1,222,947$ 17,954,289$ 1,548,262$ 85,464$ 1,633,726$
BALTIMORE GAS AND ELECTRIC COMPANYCOMPUTATION OF 2017 GAS PROGRAM IMBALANCES
EXH.2 ATT.1
TOTAL
RATE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURES
PROGRAM SCHEDULE (2013) (2014) (2015) (2016) (2017) (2018) (2013) - (2018)
(1) (1a) (1b) (1c) (1d) (1e) 2
SOURCE: Exh.1-Att.1, Col.1aExh.1-Att.1, Col.1b Exh.1-Att.1, Col.1c Exh.1-Att.1, Col.1d Exh.1-Att.1, Col.1e (1) + (1a) + (1b) + (1c) + (1d) + (1e)
Residential - EE&C D 12,533,934$ 16,218,395$ 12,937,280$ 14,721,838$ 14,874,622$ 17,431,679$ 88,717,748$
6th YR AMORT. 5th YR AMORT. 4TH YR AMORT. 3RD YR AMORT. 2ND YR AMORT. 1ST YR AMORT. TOTAL AMORTIZED UNAMORTIZED
RATE FOR 2013 FOR 2014 FOR 2015 FOR 2016 FOR 2017 FOR 2018 AMORTIZED COSTS ADJ. BALANCE
PROGRAM SCHEDULE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURES FOR TAXES 12/31/18
(3) (3a) (3b) (3c) (3d) (3e) (4) (5) (6)
SOURCE: (3) + (3a) + (3b) + (3c) + (3d) + (3e) (4) /(1-0.021877) (2) - (4)
- (Prior Yrs. Amortization)
Residential - EE&C D 1,198,012$ 3,243,679$ 2,587,456$ 2,944,368$ 2,974,924$ 1,888,227$ 14,836,666$ 15,168,507$ 38,833,681$
BALTIMORE GAS AND ELECTRIC COMPANY
COMPUTATION OF 2018 GAS AMORTIZED PROGRAM EXPENDITURES
EXPENDITURES
AMORTIZED EXPENDITURES
EXH.2 ATT.2
BEGINNING ENDING AVG BAL NET
RATE BALANCE BALANCE AVERAGE OF DEFERRED
PROGRAM SCHEDULE 1/1/2018 12/31/2018 BALANCE TAXES RETURN
(1) (2) (3) (4) (5)
SOURCE: Exh.1-Att.2, Col. 2 Exh.2-Att.1, Col. 6 [(1)+(2)] / 2 (3) x 0.596375 (4) x 0.1104
Residential - EE&C D 36,238,668$ 38,833,681$ 37,536,174$ 22,385,636$ 2,471,374$
BALTIMORE GAS AND ELECTRIC COMPANY
COMPUTATION OF 2018 GAS PROGRAM EARNINGS
EXH. 2, ATT. 3
TOTAL
RATE RECOVERABLE
PROGRAM SCHEDULE AMORTIZATION RETURN IMBALANCE DOLLARS
(1) (2) (3) (4)
SOURCE: Exh.2-Att.1, Col. 5 Exh.2-Att.2, Col. 5 Exh.1-Att.3, Col. 9 (1) + (2) + (3)
Residential - EE&C D 15,168,507$ 2,471,374$ 1,633,726$ 19,273,607$
BALTIMORE GAS AND ELECTRIC COMPANY2018 GAS EFFICIENCY ELIGIBLE COSTS
Exhibit 3
2018
ANNUAL
TOTAL BILLING EFFICIENCY
RATE RECOVERABLE DETERMINANTS RATE
PROGRAM SCHEDULE COSTS (DTH) ($/THERM)
(1) (2) (3)
SOURCE: Exh.2-Att.3, Col. 4 (1) / [(2) x 10]
2018 Gas Efficiency Charge with SEM Costs
Residential - EE&C D 19,273,607$ 41,085,713 0.0469
BALTIMORE GAS AND ELECTRIC COMPANYCOMPUTATION OF 2018 GAS EFFICIENCY CHARGE