S T A T E OF M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * *

Transcription

1 S T A T E OF M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * In the matter of the application of ) DTE ELECTRIC COMPANY ) for reconciliation of its Power Supply Cost ) Case No. U-009 Recovery Plan (Case No. U-) for the ) -month period ending December, 0 ) ) QUALIFICATIONS AND DIRECT TESTIMONY OF DIANE M. MARTIN MICHIGAN PUBLIC SERVICE COMMISSION December, 0

2 QUALIFICATIONS OF DIANE M. MARTIN CASE NUMBER U-009 PART I Q. Please state your name and business address. A. My name is Diane M. Martin. My business address is 09 West Saginaw Hwy., Lansing, Michigan 9. Q. By whom are you employed and in what capacity? A. I am employed by the Michigan Public Service Commission (MPSC or Commission) as an auditor in the Act 0 Reconciliations section of the Energy Operations Division. Q. Please briefly describe your educational background. A. I earned a Bachelor of Business Administration Degree (BBA) with a major in accounting from the University of Michigan-Flint in August 0. Q. Have you received additional training since joining the MPSC? A. Yes, In August of 0 and 0, I completed the National Association of Regulatory Utility Commissions (NARUC) regulatory studies program hosted by the Institute of Public Utilities (IPU) at Michigan State University. In October 0, I completed the IPU advanced regulatory studies program. Additionally, I have attended numerous training sessions on rate case auditing, ratemaking and other regulatory issues. Q. Would you please describe your professional background? A. In February 0, I accepted a position with the MPSC as an auditor in the Smart Grid section within the Electric Reliability Division. I joined the Act 0 Reconciliations section in March 0 as an auditor for power supply cost recovery (PSCR), gas cost recovery (GCR), and Cooperative Times Interest Earned ratio (TIER) reconciliation cases. Prior to employment with the

3 QUALIFICATIONS OF DIANE M. MARTIN CASE NUMBER U-009 PART I Commission, I held various accounting and operational positions within the private and higher education sectors. Q. Please discuss your experience with the MPSC. A. I have served as the lead auditor, case coordinator, or performed audit work in the following cases: Case No. Company Description U-0-R Alpena Power Company PSCR Reconciliation U--R UP Power Company PSCR Reconciliation U--R Thumb Electric PSCR & TIER U-0 Consumers Energy Revenue Decoupling Mechanism (RDM) U-090-R Alpena Power Company PSCR Reconciliation U-09-R UP Power Company PSCR Reconciliation U-0-R Thumb Electric PSCR & TIER U--R Northern States Power GCR Reconciliation U-9-R Alpena Power Company PSCR Reconciliation U-9-R UP Power Company PSCR Reconciliation U--R Thumb Electric PSCR & TIER U--R Northern States Power GCR Reconciliation U-0 Consumers Energy Gas Interim Refund Residual Balance U-0-R Wisconsin Public Service GCR Reconciliation U-9-R Indiana Michigan Power PSCR Reconciliation U-9-R SEMCO Energy Gas Co. GCR Reconciliation U-9-R Northern States Power GCR Reconciliation

4 QUALIFICATIONS OF DIANE M. MARTIN CASE NUMBER U-009 PART I 9 0 U- Consumers Energy Residual Balance Reconciliation U-90-R Wisconsin Public Service GCR Reconciliation U-90-R DTE Electric PSCR Reconciliation U-9-R Consumers Energy GCR Reconciliation U-0 Consumers Energy RDM U-00 Wisconsin Public Service GCR Reconciliation U-00 UP Power Company PSCR Reconciliation Q. Have you previously filed testimony before the MPSC? A. Yes, I have filed testimony before the MPSC in the following cases: Case Number Company Subject/Type U- Consumers Energy RE Plan Cost Reconciliation U-9-R SEMCO Energy Gas Co. GCR Reconciliation U--R SEMCO Energy Gas Co. GCR Reconciliation U--R SEMCO Energy Gas Co. GCR Reconciliation U--R UP Power Company PSCR Reconciliation U-9-R UP Power Company PSCR Reconciliation

5 DIRECT TESTIMONY OF DIANE M. MARTIN CASE NUMBER U-009 PART II Q. What is the purpose of your testimony? A. The purpose of my testimony is to present the MPSC Staff s (Staff) calculation of DTE Electric Company s (DTE Electric or the Company) power supply cost recovery (PSCR) reconciliation for the -month period ended December, 0. Q. Are you sponsoring any exhibits in this proceeding? A. Yes, I am sponsoring the following exhibit: Exhibit Title S- Power Supply Cost Recovery Calculation Q. Was this exhibit prepared by you or under your direction? A. Yes. Q. Please explain Exhibit S-. A. Exhibit S- presents Staff s cumulative PSCR under recovery calculation for the twelve-month period of January, 0 through December, 0. Q. Is Staff s cumulative PSCR under recovery the same as the amount filed by the Company in Exhibit A- Revised? A. No, Staff calculated a total PSCR under recovery of $,,9, inclusive of interest, for the 0 PSCR reconciliation period. Exhibit A- Revised shows a cumulative under recovery of $,0,0, inclusive of interest, resulting in a $, difference. Q. Can you explain the difference? A. Yes. There were erroneous calculations in the PSCR transmission expense on line, columns (e) and (f) of Company Exhibit A- Revised. Q. How were the mathematical inaccuracies in Exhibit A- Revised ascertained?

6 DIRECT TESTIMONY OF DIANE M. MARTIN CASE NUMBER U-009 PART II A. The starting point for Staff s PSCR calculation was DTE Electric s Exhibit A- Revised. First, Staff verified the mathematical accuracy of the Company s exhibit by recreating the exhibit from an Excel file of Exhibit A- Revised, obtained from the Company through audit request DMM-, item a. Staff added formulas to the cells in lines of the worksheet that perform a mathematical calculation, thus, discovering the two miscalculations. Q. Did Staff make an adjustment to the Company s filed 0 PSCR under recovery? A. Yes. The Company s PSCR transmission expense filed in Exhibit A- Revised, line, columns (e) and (f) is $9,,. and $9,,09. respectively. Staff corrected the April and May 0 PSCR transmission expense as shown in Exhibit S-, line, columns (d) and (e) to $0,0,9. and $,,00. respectively. Q. Did Staff discover any other mathematical inaccuracies in Exhibit A- Revised? A. No. Q. What effect does the adjustment to the PSCR transmission expense have on the total cumulative PSCR under recovery balance? A. The adjustment to April and May 0 transmission expense increases power supply costs by $,99. The adjustments also affect the interest calculation throughout the remaining PSCR reconciliation period, decreasing total interest by $,. The result is a $, increase to the total cumulative under recovery balance. Q. What is Staff s recommendation for the PSCR period ended December, 0?

7 DIRECT TESTIMONY OF DIANE M. MARTIN CASE NUMBER U-009 PART II A. Staff recommends that the Commission approve Staff s adjustments to the under recovery and determine that the result of DTE Electric s 0 PSCR reconciliation is a net cumulative under recovery of $,,9, inclusive of interest. Staff also recommends that the Commission order this amount to be the beginning balance for DTE Electric s 0 PSCR reconciliation. Q. Does this conclude your testimony? A. Yes.

8 S T A T E OF M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * In the matter of the application of ) DTE ELECTRIC COMPANY ) for reconciliation of its Power Supply Cost ) Case No. U-009 Recovery Plan (Case No. U-) for the ) -month period ending December, 0 ) ) EXHIBIT OF DIANE M. MARTIN MICHIGAN PUBLIC SERVICE COMMISSION

9 MICHIGAN PUBLIC SERVICE COMMISSION Case No.: U-009 DTE Electric Company Exhibit: S- 0 PSCR Reconciliation Witness: D. Martin Power Supply Cost Recovery Calculation Page: of Line January February March April May June July August September October November December Total No. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) Total System Sales kwh,,9,9,,,9,0,90,,0,,,,,,,,9,9,0,,9,,0,0,0,,,,0,0,09,00,,,00,,, Adjustment for R0 kwh,0,,9,9,0,,9, (,9,),, (,,),9,0 (,,),0, (,,09),9,9, Adjusted Total System Sales kwh,,00,0,,9,,,,9,0,,,,,0,,0,0,,0,,0,,09,,,9,9,9,0,9,,9,,90,99,,0,09 Less Non PSCR Sales: Unmetered kwh,,,, ,,0 R0 kwh,9,99 0,09,,90,,9,99,0, 9,9,0,0,,,9,,9,,,0,,,0,,, PSCR Sales kwh,,,9,00,,9,0,0,,9,0,9,,9,9,9,0,0,0,,0,0,0,,9,,,9,0,,0,9,,,9, 0,,99, 9 Adjusted Sales (from line above) kwh,,00,0,,9,,,,9,0,,,,,0,,0,0,,0,,0,,09,,,9,9,9,0,9,,9,,90,99,,0,09 0 Less: Total Sales of Direct Assignment Customers kwh,9,99 0,09,,90,,9,99,0, 9,9,0,0,,,9,,9,,,0,,,0,,, Adjusted Total Sales kwh,,0,9,00,,,0,0,,9,0,9,,9,9,9,0,0,0,,0,0,0,,9,,,9,0,,0,9,,,9, 0,9,, PSCR Allocation Factor Fuel Costs for Electric Generation $,, $,0, $,09,99 $,0, $,, $ 9,00, $,, $,0, $,0, $ 9,0,9 $,, $,,0 $,, Purchased and Net Interchange Power $,,9 $ 9,, $,, $,,9 $,, $,, $,, $,9,9 $,,9 $,9,9 $,0, $,9, $,, Total Power Supply Expenses $ 9,, $,0,0 $ 99,,00 $,9, $,90, $,, $ 0,, $ 9,9, $ 0,0, $ 9,9, $,99,9 $ 0,, $,,9, Less: Total Expenses of Direct Assignment Customers $,9,0 $,,0 $,,09 $,9,0 $,, $,, $,, $,9,0 $,9, $,90, $,00,9 $,,0 $,9, 9 Net Power Supply Expense $ 90,9, $,, $ 9,,9 $,90, $,,0 $,,0 $ 99,,0 $ 9,90, $ 0,09, $,09, $,9,9 $ 0,,9 $,0,,9 0 Applicable PSCR Energy Expense $ 90,0, $,,0 $ 9,,9 $,90, $,,0 $,,0 $ 99,,0 $ 9,90, $ 0,09, $,09, $,9,9 $ 0,,9 $,0,, Transmission Expense ($,,.) $,99,. $,9,. $,09,9.9 $,99,. $,,9.0 $,,9. $,0,. $,90,.9 $,,.0 $,,0. $,0,. $09,,0 PSCR Transmission Allocation Factor Applicable PSCR Transmission Expense [] ($,00,0.) $,9,9.9 $,0,. $0,0,9. $,,00. $,00,99. $,,.00 $,,. $,,9. $,0,.99 $,,. $,9,. $9,, Total Applicable PSCR Expense $,, $ 0,,0 $,00, $ 0,99,0 $ 0,9, $,,0 $,, $,00, $,,0 $,9,90 $ 0,0, $,, $,9,0, 9 Base Cost (U-) Mills/kWh Loss Multiplier (U-) Base Cost including Multiplier Mills/kWh PSCR Sales (from line 9 above) kwh,,,9,00,,9,0,0,,9,0,9,,9,9,9,0,0,0,,0,0,0,,9,,,9,0,,0,9,,,9, 0,,99, Base Power Supply Revenues $,0,99 $ 00,, $ 0,,9 $ 9,, $ 0,0,9 $,, $,9,99 $,,9 $,, $ 0,9,0 $ 0,, $,0,9 $,9,,00 PSCR Factor Mills/kWh..... (0.0) (0.0) (0.0) (.) (.) (.) (.) PSCR Revenues $,0,0 $,,9 $,9,0 $,, $,,0 $ (,0,0) $ (,,) $ (,,0) $ (,99,0) $ (,9,) $ (,,9) $ (,,9) $ (,0,9) MI Green Power Credit $ - $ - $ - $ - $ (9,) $ (,99) $ (,9) $ (,9) $ (,0) $ (,) $ (,) $ (,0) $ (9,9) Total Revenues $,,0 $ 0,9,0 $,9, $ 0,0,0 $ 0,,0 $,, $,9, $,00, $ 0,, $ 99,, $ 9,0,0 $ 0,,9 $,,, 9 0 Monthly Over (Under) Recovery $ 9,, $,0, $ (,,9) $,0, $,,99 $,,0 $ (,,0) $ (,000,) $ (9,90,) $ (,,) $ (,0,09) $ (,0,) $ (,,) Balance from case U-90-R $ (,9,) $ (,9,) Monthly Beginning Balance $ (,9,) $,, $ 0,0, $,, $,, $,, $,, $,99,9 $,99,0 $,0, $,,00 $ (9,,9) Over (Under) Recovery Ending Balance $,, $ 0,0, $,, $,, $,, $,, $,99,9 $,99,0 $,0, $,,00 $ (9,,9) $ (,,9) $ (,,9) Over (Under) Recovery Average Balance $,00, $,,0 $,0,9 $,0, $,0,9 $,,99 $,,0 $,9, $ 0,00, $,99, $ (,,) $ (,9,9) Annual Interest Rate 0.000% 0.% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%.%.% Monthly Interest Rate Interest $,00 $, $,0 $,0 $,0 $ 90,09 $ 9,0 $,90 $, $ 0,9 $ (,) $ (,) $,9,0 9 0 Cumulative Over (Under) Recovery $,, $ 0,9,9 $,0, $,9, $,0, $ 0,,0 $,, $,,09 $,,9 $,,09 $ (,00,0) $ (,,9) $ (,,9) [] Staff corrected erroneous calculations in the April (d) and May (e) transmission expense in Case No.U-009, Exhibit A- Revised, line.

10 STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMISSION In the matter of the application of DTE Case No. U-009 ELECTRIC COMPANY for Reconciliation (e-file paperless) of its Power Supply Cost Recovery Plan (Case No. U-) for the -month period ending December, 0. / STATE OF MICHIGAN ) ) ss COUNTY OF EATON ) PROOF OF SERVICE Jennifer M. Brooks, being first duly sworn, deposes and says that on December, 0, she served a true copy of MPSC Staff Qualifications and Direct Testimony and Exhibit - Martin upon the following parties via only: Administrative Law Judge Hon. Sally Wallace Administrative Law Judge Michigan Public Service Comm. 09 W. Saginaw Hwy., rd Floor Lansing, MI 9 wallaces@michigan.gov Michigan Environmental Council Chiristopher M. Bzdok Lydia Barbash-Riley 0 E Front Street Traverse City, MI 9 chris@envlaw.com lydia@envlaw.com

11 Association of Businesses Advocating Tariff Equity Sean P. Gallagher E. Cesar E. Chavez Avenue Lansing, MI 90 Stephen A. Campbell 00 Woodward Avenue, Suite 00 Detroit, MI Attorney General Bill Schuette Joel King W Ottawa Street Lansing, MI 909 Kingj@michigan.gov DTE Electric Company Jon P. Christinidis DTE Energy One Energy Plaza, WCB Detroit, MI jon.christinidis@dteenergy.com mpscfilings@dteenergy.com Residential Customer Group Don L. Keskey Brian W. Coyer University Office Place Albert Avenue, Suite East Lansing, MI donkeskey@publiclawresourcecenter.com bwcoyer@publiclawresourcecenter.com Sebastian Coppola Attorney General Witness sebcoppola@corplytics.com Jennifer M. Brooks Subscribed and sworn to before me this st day of December, 0. Lisa Felice, Notary Public State of Michigan, Eaton County My Commission Expires: //00