Agenda Date: 7/30/08Agenda Item: vilA

STATE OF NEW JERSEYBoard of Public Utilities

Two (;ateway CenterNe\o\'ark, NJ 07102

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CUSTOMER ASSISTANCE

MAH, INC., T/A/ SEAVILLE TAVERN,Petitioner

) ORDER ADOPTING INITIAL DECISIONSETTLEMENT

11

v.

ATLANTIC CITY ELECTRIC COMPANY,Respondent

BPU DOCKET NO. EC07100787UGAL DOCKET NO. PUC 10485-07

(SERVICE LI:ST ATTACHED)

BY THE BOARD:

On October 12, 2007, Mah, Inc., t/a Seaville Tavern (Petitioner) filed a petition with the Boarddisputing the bill of Atlantic City Electric Colmpany (Respondent) for electric servil:es.

After the filing of Respondent's answer and counterclaim, the Board transmitted this matter tothe Office of Administrative Law (OAL) for hearing and initial disposition as a contested casepursuant to N.J.S.A. 52:14B-1 m §§g". and t-.J.J.S.A. 52:14F-1 m ~ This matter was assignedto Administrative Law Judge (ALJ) Douglas H. Hurd. I

While this matter was pending at the OAL, jthe parties engaged in negotiations arId entered intoand executed a Settlement Agreement and Mutual Release that was submitted to the ALJ. ByInitial Decision issued on June 26, 2008, arid submitted to the Board on July 3, 21J08, to whichthe settlement and a Stipulation of Dismissal with Prejudice were attached and rr.lade partthereof, ALJ Hurd found that the agreement was voluntary, that its terms fully dislposed of allissues in controversy and that it met the requirements of N.J.A.C. 1 :1-19.1. The pertinentportions of the agreement provide that: (1) 1the Petitioner shall pay to the Respon,jent over aperiod of nineteen (19) months the sum of $38,300.00 in full payment of the displJted charges;(2) Payments shall be made in eighteen (18) equal monthly installments in the arnount of$2,127.00 beginning July 2008 and one monthly installment in the amount of $1'~.00 inDecember 2009; (3) Respondent shall remove any reference to the disputed charges fromPetitioner's monthly service bill and, in addition to Petitioner's actual monthly charges, each

month's installment payment shall be shown as a separate line item entitled "Oe1:erred PaymentArrangement" or "OPA"; and (4) both parties have released the other from any obligations,claims, and causes of action that may result from or with respect to the disputed charges.

After review of the Initial Decision and the agreements attached thereto, the Board HEREBYFINDS that the terms of the Stipulation of Dismissal and the Settlement AgreemE~nt and MutualReiease represent a fair and reasonable resolution of all outstanding contested i:ssues.Accordingly, the Board HEREBY ADOPTS the Initial Decision and the agreements of the partiesin their entirety and, as a result of said agreements, HEREBY DISMISSES the petition in thismatter with prejudice.

BOARD OF PUBLIC UTILITIESBY:

DATED:

c9:=~ ""1YI ~ 1:~~JEANNE M. FOX I

PRESIDENT -,I

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COMMISSIONERCOMMISSIONER-

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A TTEST~

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BPU Docket No. E(:;O7100787UGAL Docket No. PlJC10485-07

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MAti, INC., TIA SEVILLE TAVERNv.

ATLANTIC Cllrv ELECTRIC COMPANY

BPU DOCKET NO. EC07100787UOAL DOCKET NO. PUC 10485-07

SI=RVICE LIST

Stacey A. Mitchell, Esq.Cozen O'Conner457 Haddonfield Road, Suite 300Cherry Hill, New Jersey 08002-2220

Philip J. Passanante, Esq.Atlantic City Electric Company800 King Street, 5th FloorP.O. Box 231Wilmington, Delaware 19899-0231

Eric Hartsfield, DirectorJulie Ford-WilliamsDivision of Customer AssistanceBoard of Public UtilitiesTwo Gateway CenterNewark, New Jersey 07102

Cynthia L. Miller, DAGDivision of Law124 Halsey StreetP.O. Box 45029Newark, New Jersey 07102

3 13PU Docket No. EIC07100787UGAL Docket No. PIJC10485-07

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INITIAL DECISrON ~

SETTb~ME~T

OAL DKT. NO. PUG 10485-07

AGENCY DKT. NO. ECO7100787U

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MAH, INC. T/A SEAVILLE TAVERN,

Petitioner,

v.

ATLANTIC CITY ELECTRIC COMPANY,

Respondent.

Stacey A. Mitchell, Esq., for petitioner (Cozen O'Connor, attorneys)

Renee E. SugJia. Esq., for respondent

Record Closed: June 24, 2008 Decided: June 26, 2008

BEFORE DOUGLAS H. HURD, ALJ:

This matter was transmitted to the Office of Administrative Law on De(;ember 26,

2007, for determination as a contested case, pursuant to N.J.S.A. 52:148-1 to -15 and

N.J.S.A. 52:14F-1 to -13. I

The parties have agreed to a settlement and have prepared a Stipulation of

Dismissal indicating the terms thereof, which is attached and fully incorporate!d herein.

New ./erst)' i,v aPl F.ql;Ql Oppal'tli7liry Employe,

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I have reviewed the record and the terms of settlement and FIND:

1 The parties have voluntarily agreed to the settlement as evidenced by their

signatures or their representatives' signatures.

2 The settlement fully disposes of all issues in controversy and is consistent with

the taw.

I CONCLUDE that this agreement meets the requirements of N~J.A.Q~ 1:1-19.1

and that the settlement should be approved. I approve the settlement and therefore

ORDER that the parties comply with the settlement terms and that these proceedings

be concluded.

I hereby FILE my initial decision with the BOARD OF PUBLIC- UTILITIES for

consideration.

2

UAL UK , .NO. PUC 10485-07

This recomme~ded. decision may be adopted, modified or rej,ected by the

BOARD OF PUBLIC UTilITIES, which by law is authorized to make a firisl decision in

this matter. If the Board of Public Utilities does not adopt, modify or rejec1: this decision

within forty-ftve (45) days and unless such time limit is otherwise e:dended, this

recommended decision shall become a final decision in accordance \with N.~.S~:

52:148-10.

June 26. 2008_-DATE

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OFFICE OF ADMINISTRA TI'/E LAWDATE

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SUITE 300 LlBERTYVIEW 457 HADDONFII:LD ROAD P.O. BOX 5459 CHERRY HIll, NJ 08002-2220

B56.910.5000 800.989.0499 856.910.5075 FAX www.cozen.com

June 20, 2008 Stacy A. MitchellDirect Phone 856.910.5006smjtchell@cozen.comVIA FEDERAL EXPRESS

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Office of the ClerkOffice of Administrative Law33 Washington Street, 15th FloorNewark, New Jersey 07102

Re: MAH, Inc. t/a Seaville Tavern v. Atlantic City Electric CompanyBPU Docket No. EC0710087UOAL Docket No. PUCC 10485-20(.7S

Dear Sir/Madam:

Enclosed please find an original and two (2) copies of the Stipulation of Diisrnissal in theabove matter. Please return a copy stamped "Filed" and return it in the postage paid envelope

provided.

Should you have any questions conc(:ming the enclosed, please feel free to contact me

directly.

Very truly yours,./1

ill!COZEN

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By:

SAM/vfcc: Hon. Douglas H. Hurd

Gerald M. McBrideRenee E. Suglia, Esquire

CIiERRY_IiILL\4483 1 5\1 216598.000

STATE OF NEW JERSEYBOARD OF PUBLIC UTILITIES

MAR, INC., tla SEA VILLE TAVERN BPU DOCKET NO. ECO710087U

Petitioner, OAL DOCKET NO. PUCCC 10485-20078

v.

STIPULATION OF D:[SMISSALATLANTIC CITY ELECTRIC CaMP ANY

Respondent. c>I= .= ~.CQ _.

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J>= 0"-1-Stacy A. Mitchell, Esquire (Cozen O'Connor, attorneys) for Petitioner, Iv[AH, In~t/a -"rr, r--'.:

.-J 1>cSeaV111e Tavern o~!:::!U ::C;-,.'-'

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Philip J. Passanante, Esquire, Assistant General Counsel and Renee E. Suglia, Esquire,;.~: Assistant Counsel for Atlantic City Electric Company g! ~

APPEARANCES:

TO THE HONORABLE BOARD OF PUBLIC UTILITIES:

The Atlantic City Electric Company ("ACE" or "Respondent"), a regulated public

utility corporation of the State of New Jersey, provides the transmission and distribution of

electricity to its customers within its service teITitory,

2. On September 24, 2007, MAR, Inc. tJa Seaville Tavern ("Seavill(:" or

"Petitioner") filed a Petition with the New Jersey Board of Public Utilities (the "Board")

requesting a folmal hearing to contest a $55,448 invoice received from ACE that related to

electric services allegedly provided to the Seaville Tavern located at Route 50 & Old Bridge

Road, Seaville, New Jersey 08230.

3 The matter was transmitted to the Office of Administrative Law ("OAL") on

December 31, 2007 for hearing as a contested case. The proceeding was assigne:d Docket No

CHERRY _HILL\445230\] 2 ]6598.000

ECO710087U by the Board and Docket No. PUCCC lO485-2007S by the GAL. The

Administrative Law Judge ("AU") assigned to the matter was the Honorable Dc,uglas H. Hurd.

The parties to this proceeding include Petitioner, Seaville and Re~;pondent, ACE.4.

After several settlement discussions and two conferences with AU Hurd, the5.

parties have agreed to settle the underlyin~: dispute in accordance with the SettleJment Agreement

and Mutual Release attached hereto and incorporated by reference as Exhibit "A".

This Stipulation shall be binding on the parties on approval of the Board. This6.

Stipulation shall bind the parties in this matter only and shall have no precedential value.

This Stipulation contains terms, each of which is interdependent '"1Iith the others7

and essential in its own right to the signin~: of this Stipulation. Each term is vital to the

agreement as a whole, since the parties expressly and jointly state that they would not have

signed the agreement had any tenD been modified in any way. Since the parties have

compromised in numerous areas, each is entitled to certain procedures in the eve:nt that any

modifications whatsoever are made to this Stipulation.

If any modification is made to this Stipulation, the signatory parties each must be8.

given the right to be placed in the position is was in before the Stipulation was entered into.

The pending proceedings having b(~en amicably settled by and between Petitioner, MAH,

INC. tla Seaville Tavern, and Respondent, Atlantic City Electric Company. It is hereby

stipulated and agreed that Petitioner's Petition is DISMISSED WITH PREJUDICE as against

Respondent, Atlantic City Electric Company without costs against either party.

[SIGNATURES APPEAR ON NEXT PAGE]

2CHERRY _HILL\445230\1 216598.000

COZEN O'CONNORAttorneys for Petitioner,MAR, Inc. tla Seaville Tavern

ATLANTIC CITY ELECTRIC COMPANYRespondent

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.:2.CHERRY_HILL\445230\1 216598.000

Settlement Agreement and Mutual Release

THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (the "'Agreement"), is

made this.dA!!: day of June, 2008 (the "Effective Date") by and between MAH, Inc. tla Seaville

Tavern ("Seaville") and Atlantic City Electric Company ("ACE").

WHEREAS, ACE is a regulated public utility corporation of the State of New Jersey that

provides for the transmission and distribution of electricity to its customers within its service

territory, and

WHEREAS, ACE has provided electric services to Seaville at Route 50,&; Old Bridge

Road, Seaville, New Jersey 08230 (the "Business Premises") up to and includinl~ the present

time, and

WHEREAS, on September 24,2007 Seaville filed a Petition with the New Jersey Board

of Public Utilities (the "Board") against ACE requesting a fonnal hearing to contest a $55,448

invoice received from ACE for electric services allegedly rendered to the Busin(:ss Premises for

the period of time up to and including December 2006 (the "Disputed Charges"), and

WHEREAS, on November 16, 2007, ACE filed an Answer and Counterc:laim against

Seaville responding to the Petition and raising allegations of, inter alia, breach of contract,

quantum meruit and unjust enriclunent., and

WHEREAS, on December 7, 2007 Seaville filed its Answer to Counterclaim, and

WHEREAS, it is the intention of the parties to resolve all outstanding iss;ues in this

matter cUITently pending before the Board, and

CHERRY_}ULL\448150\1 216598.000

"NOW THEREFORE, in consideration of the mutual promises and undertakings

contained herein, the receipt and sufficiency of which are mutually acknowledged, the parties

hereto agree as follows:

A. Seaville shall pay to ACE, pursuant to a nineteen (19) month deferred payment

tenn, the sum of$38,300.00 as payment in full for the Disputed Charges. Payments shall be

made in eighteen (18) equal monthly installments in the amount of$2,127 .00 beginning July

2008, and one monthly installment in the amount of$14.00 in December 2009.

B. ACE shall remove any reference to the Disputed Charges from Seaville's monthly

electric service invoice. In addition to Seaville's actual monthly electric charges, ACE shall

reflect each month's installment payment on Seaville's monthly electric service invoice as a

separate line item entitled "Deferred Payment Arrangement" or "DP A".

-c. Seaville hereby releases ACE, its affiliates, successors and assigns and all of their

shareholders, directors, officers, employees and attorneys from any and all manner of

obligations, claims and causes of action arising out of, resulting from or with respect to the

Disputed Charges in this matter.

D. ACE hereby releases Seaville and all of its respective heirs, affiliates, successors

and assigns, and all of their directors, officers, employees and attorneys from any and all manner

of obligations, claims and causes of action arising out of, resulting from or with respect to the

Disputed Charges in this matter.

E.

This is a settlement of a disputed claim. The parties acknowledge that the tenns

of this Agreement do not constitute a discharge of indebtedness or cancellation of debt as defined

by the Internal Revenue Code and/or its implementing regulations. No IRS Form 1099-C will be

filed by ACE with respect to this settlement.

~CHERRY_HILL\448150\1 216598.000

This Agreement may be executed in counterparts, each of which shall be anF.

original and all of which when taken together shall constitute a single agreement with the same

effect as if the signatures thereto and hereto were upon the same instrument. It is agreed that an

original, photocopy or fax copy of a signature may serve as an original.

This Agreement shall be binding upon and inure to the benefit of the partiesG.

hereto, and their respective heirs, successors and assigns.

This Agreement constitutes the entire agreement among the partie:s hereto withH.

respect to the subject matter he"reof.

This Agreement has been entered into, is deemed to be performed in and isI

subject to the laws of the State of New Jersey.

IN WITNESS WHEREOF and intending to be legally bound hereby, the parties have

hereunto set their hands and seals as of the Effective Date.

MAH, INC. T/A SEA VILLE TAVERN

B y :_.l~~~~£ i 111. f1J ( u>.L

GERALD M. McBRIDEVice President/Chief Financial Officer

CHERRY_HILL\448 I 50\1 216598.000

ATLANTIC CITY ELECTRIC COMPANY!a PHI Company

BY:_~~~11:&:ttl ~ 1kJ~ltCharlotte DeVaultSenior AnalystPepco Holdings, Inc.5 Collins Dr., 84CP22Carneys Point, NJ 08069(856) 351-7616

.4CHERRY_HILL\448150\1 216598.000

STATE OF NEW JERSEY :

j,fJ. J.-: SS.COUNTY 0 FNUf-u ~~~.-ZJ A- -:

On thi~ _..1£_- day O~OO8' before me, a Notary Public, the undersigned

officer, personally appeared, Gerald M. McBride, Vice President and Chief Financial Officer for

MAH, Inc. tJa Seaville Tavern, a New Jersey corporation authorized to do business in the State

of New Jersey and being authorized to do so, executed the foregoing instrument for the purpose

therein contained by signing his name on behalf of MAH, Inc. tla Seaville Tavern.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal

wCAiHE~~NE M. JON~8

fiI5OTARY PUBUt Of NEW SEWCom~ explr9$ 511Jr:J1~~

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