Re: Rockland Electric Company, Docket No. EL18-111

Transcription

1 Margaret Comes Associate Counsel Rockland Electric Company 4 Irving Place, Room 1815-S, New York, NY Tel.: comesm@coned.com May 14, 2018 Hon. Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C Dear Ms. Bose: Re: Rockland Electric Company, Docket No. EL Pursuant to the Commission s Order to Show Cause ( OSC ) of March 15, 2018, 1 Rockland Electric Company ( RECO ) submits this proposed revision to its stated transmission rate and revenue requirement to reflect the recent change in the federal corporate income tax rate ( Filing ). 2 Included in this Filing are the following: this Cover Letter; Attachment A Marked Tariffs; Attachment B Clean Tariffs; and, Attachment C - Prepared Direct Accounting Panel Testimony with supporting exhibits RECO-1 and RECO-2. In support of this filing, RECO submits the testimony and associated exhibits of the accounting panel of John de la Bastide and Wenqi Wang, ( Accounting Panel ). 3 I. BACKGROUND A. Description of RECO and its Affiliates RECO is an electric-only utility that provides transmission, retail distribution, and provider of last resort service to approximately 73,000 customers in northern New Jersey. As a New Jersey utility, RECO is subject to the retail jurisdiction of the New Jersey Board of Public Utilities. RECO s service territory includes parts of three counties that border New York Bergen, Passaic, and Sussex but the majority of its customers (more than 59,000) reside in Bergen County. RECO classifies its Bergen County service territory as its Eastern Division, its Passaic County service territory as its Central FERC 61,224 (2018) ( OSC ). 2 Pursuant to Order 714, this Filing is being submitted by PJM Interconnection, LLC ( PJM ) on behalf of RECO as part of an XML filing package that conforms with the Commission s regulations. PJM has agreed to make all filings on behalf of PJM Transmission Owners in order to retain administrative control over the PJM Tariff. Thus, RECO has requested PJM submit these amendments to Attachment H-12 and Schedules 7 and 8 in the Etariff system as part of PJM s electronic Intra PJM Tariff. 3 See Attachment C.

2 Kimberly D. Bose May 14, 2018 Page 2 Division, and its Sussex County service territory as its Western Division. As discussed below, RECO is a PJM transmission owner because it has turned over operational control of its Eastern Division transmission assets to PJM. RECO s Central and Western Divisions, which are not geographically contiguous to its PJM service area, along with Orange and Rockland Utilities, Inc. ( O&R ), are members of the New York Independent System Operator, Inc. ( NYISO ). RECO is a wholly owned subsidiary of O&R, 4 which in turn is a wholly owned subsidiary of Consolidated Edison, Inc. ( CEI ), the parent company of Consolidated Edison Company of New York, Inc. ( Con Edison ). 5 O&R is an electric and gas utility and a transmission owner in the NYISO s control area. O&R serves more than 225,000 electric customers and more than 130,000 gas customers in three New York counties: Rockland, Orange, and Sullivan. Two of these counties, Rockland and Orange, border RECO s service territory. In 2015, O&R s peak load was 1009 MW. RECO has no operating employees; O&R provides all of RECO s administrative and operating services. Legal and other corporate services are provided to RECO by Con Edison. In addition, since the RECO and O&R transmission systems have historically been operated as a single system, O&R continues to design and operate them as a single integrated system ( Integrated Transmission System ) from its control center in Spring Valley, New York. In 2015, the peak load of the Integrated Transmission System was 1405 MW. B. RECO s 2017 Transmission Rate Filing On January 26, 2017, pursuant to section 205 of the Federal Power Act, RECO submitted tariff revisions ( 2017 Rate Filing ) proposing to update its stated annual transmission revenue requirement ( ATRR ) and transmission rates. The Staff of the New Jersey Board of Public Utilities ( NJBPU ) intervened and the New Jersey Division of Rate Counsel ( NJ Rate Counsel ) protested various aspects of RECO s Rate Filing. The Parties and Trial Staff were able to reach a negotiated resolution of the proceeding resulting in a black box Settlement Agreement. On September 6, 2017, RECO submitted an Offer of Settlement, which included the Settlement Agreement, and the Offer of Settlement was approved by the Commission on November 29, RECO s Compliance Filing with revised tariff sheets was accepted by the Commission on March 30, O&R also owned Pike County Light & Power Company, an electric and gas utility located in Pennsylvania until Con Edison is a regulated public utility that provides electric service in New York City and most of Westchester County, gas service in parts of New York City, and steam service within the borough of Manhattan. Con Edison serves approximately 3.3 million electric customers, 1.1 million gas customers, and 1,700 steam customers. Con Edison is a transmission owner in the NYISO s control area, a load serving entity, and a distribution provider in New York City and parts of Westchester County. 6 Letter Order, ER and -002 (November 29, 2017). 7 Letter Order, ER and -002 (March 30, 2018).

3 Kimberly D. Bose May 14, 2018 Page 3 As a result of the 2017 Rate Filing and Settlement Agreement, and as reflected in Attachment H-12 of the PJM Open-Access Transmission Tariff ("PJM OATT"), RECO s annual transmission revenue requirement ( TRR ) currently is $17,724,263 and its TRR rate currently is $ 44,799/MW per year. II. RECO S PROPOSED REDUCED TRANSMISSION REVENUE REQUIREMENT AND RATES To reflect the reduction in the federal corporate tax rate, the Company is proposing a decrease increase in: (a) the Attachment H-12 transmission revenue requirement ( TRR ) from $17,724,263 to $16,833,707 and (b) the Network Integration Transmission Service rate from $44,799 per megawatt per year to $42,458 per megawatt per year. As explained in more detail by the Accounting Panel, the Company is using the same methodology used in its 2017 Rate Filing. The Company started with the TRR of $19,661,232 that was proposed in its 2017 Rate Filing, which included $2,016,186 related to income taxes. The Company then adjusted the TRR for known and assumed components of the final black box settlement. The resulting change in revenue requirement requires a change in Schedules 7 and 8 of the PJM OATT, which are included in this filing. III. EFFECTIVE DATE RECO understands from its reading of the OSC that the Commission will set the effective date of the new transmission rates, and therefore, RECO has not included an effective date in the Filing. IV. SERVICE PJM has served a copy of this filing on all PJM Members and on all state utility regulatory commissions in the PJM Region by posting this filing electronically. In accordance with the Commission s regulations, 8 PJM will post a copy of this filing to the FERC filings section of its internet site, located at the following link: with a specific link to the newly-filed document, and will send an on the same date as this filing to all PJM Members and all state utility regulatory commissions in the PJM Region 9 alerting them that this filing has been made by PJM and is available by following such link. If the document is not immediately available by using the referenced link, the document will be available through the referenced link within 24 hours of the filing. Also, a copy of this filing will be available on the Commission s elibrary website located at the following 8 See 18 C.F.R 35.2(e) and (f)(3). 9 PJM already maintains, updates, and regularly uses lists for all PJM members and affected state commissions.

4 Kimberly D. Bose May 14, 2018 Page 4 link: in accordance with the Commission s regulations and Order No V. CORRESPONDENCE AND COMMUNICATIONS RECO requests that all correspondence and communications with respect to this filing be sent to, and the Secretary include on the official service list, the following persons: John de la Bastide Margaret Comes Director Financial Services Law Department Orange and Rockland Utilities, Inc. Consolidated Edison 1 Blue Hill Plaza Company of New York, Inc. Pearl River, NY Irving Place Room 1815-S (845) (212) delabastidej@oru.com comesm@coned.com VI. REQUEST FOR WAIVERS RECO requests that the Commission waive the requirements of 18 C.F.R to the extent necessary to accept this filing. Finally, RECO requests a waiver of any other Commission rule or regulation as may be necessary to permit the proposed Tariff revisions to be accepted by the Commission and made effective as requested. VII. CONCLUSION For the reasons discussed above and in the attached testimony, RECO respectfully requests that the Commission approve the following: RECO s proposed decrease in the Attachment H-12 transmission revenue requirement ( TRR ) from $17,724,263 to $16,833,707: the Network Integration Transmission Service rate from $44,799 per megawatt per year to $42,458 per megawatt per year; and, the Attachment H-12, Schedule 7, and Schedule 8 Tariff sheets included in this filing. Dated: May 14, 2018 New York, New York Respectfully submitted, ROCKLAND ELECTRIC COMPANY /s/ Margaret Comes Associate Counsel

5 CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing document on the official service list compiled by the Secretary in this proceeding. Dated at New York, New York this 14th day of May, /s/ Margaret Comes

6 Attachment A Marked Tariffs

7 SCHEDULE 7 Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service 1) The Transmission Customer shall pay each month for Reserved Capacity at the sum of the applicable charges set forth below for the Point of Delivery: Summary of Charges (in $/kw) Point of Delivery Yearly Charge Monthly Charge Weekly Charge Daily On-Peak 1 Charge Daily Off-Peak 2/ Charge Border of PJM AE Zone BG&E Zone Delmarva Zone JCPL Zone MetEd Zone Penelec Zone PECO Zone PPL Zone: Total charge is the sum of the components PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * Pepco Zone PSE&G Zone AP Zone Rockland Zone / 4/ ComEd Zone * PPL Electric Utilities Corporation s and UGI Utilities respective component of the total charge is posted on the PJM Internet website. Page 1

8 Point of Delivery Yearly Charge Monthly Charge AEP East Zone 5/ Monthly Charge X 12 Attachment H-14 Weekly Charge Daily On- Peak 1 Charge Daily Off- Peak 2/ Charge Yearly Charge / 52 Weekly Charge / 5 Weekly Charge / 7 Dayton Zone Duquesne Zone Dominion Zone 6/ ATSI Zone DEOK Zone EKPC Zone Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Effective December 1, 2004, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 7 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. obtained pursuant to requests submitted on or after November 17, 2003, for service commencing on or after April 1, Effective April 1, 2006, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 7 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. 1/ Monday Friday except the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 2/ Saturday and Sunday and the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 3/ Each month, revenue credits will be applied to the gross charge in accordance with section 8 below to determine the actual charge to the Transmission Customer. 4/ The charges for the ComEd zone are posted on PJM s website. In addition to other rates set forth in this schedule, customers within the ComEd zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $1,523,039, divided by the 1 CP demand for the ComEd zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily Rate - $/kw/day = Weekly Rate divided by 5. Page 2

9 In order to ensure that the charge does not result in either an over-recovery or under-recovery of ComEd s start-up costs, PJM will institute an annual true-up mechanism in the month of May of each of the years In May of each of those years, PJM will compare the amount collected under this charge for the previous 12 months with the target annual amount of $1,523,039 and calculate any credits or surcharges that would be needed to ensure that $1,523,039 is collected for each year. Any credit or surcharge will be assessed in the June bills for years , consistent with the above methodology. 5/ The rates for firm point-to-point transmission service in the AEP Zone will be charged at the yearly, monthly, weekly or daily rate equivalent to the rate effective in such period under Attachment H-14. In addition to other rates set forth in this schedule, customers within the AEP East Zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $2,362,185, plus any applicable true-up adjustment, divided by the 1 CP demand for the AEP East Zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily Rate - $/kw/day = Weekly Rate divided by 5. For the period November 1, 2005 through March 31, 2006, the rate shall be $8.94/MW-month; for the period April 1 through December 31, 2006, the rate shall be $8.60/MW-month, thereafter, the rate will be subject to the following true-up: In order to ensure that the charge does not result in either over-recovery or underrecovery of AEP s start-up costs, PJM will institute an annual true-up mechanism and implement revised charges as of January 1st of each of the years In January of each of those years, PJM will compare the amount collected under this charge for the previous year or part thereof with the target annual amount of $2,362,185 and calculate the rates that would be needed, given the expected billing demands, to collect $2,362,185, adjusted for any prior year over-collection or under-collection. In the final year that the rate is collected, PJM will calculate the rate to collect five-twelfths of the annual amount ($984,244), plus or minus any prior year true up amount, by May 31 of that year, and shall charge such rate until that amount is collected, whether that date be before or after May 31, / The service period charges rounded to four decimal places for the Dominion Zone are as follows: Page 3

10 Yearly Charge - $/kw/year = the formula rate for Network Integration Transmission Service as described in Attachment H-16 and Attachment H- 16A divided by 1000 kw/mw Monthly Charge - $/kw/month. = Yearly Charge divided by 12; Weekly Charge - $/kw/week = Yearly Charge divided by 52; Daily On-Peak Charge - $/kw/day = Weekly Charge divided by 5; Daily Off-Peak Charge - $/kw/day = Weekly Charge divided by 7. On a monthly basis, revenue credits shall be calculated based on the sum of VEPCO s share of revenues collected during the month from Schedule 7 and Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A. The sum of these revenue credits will appear as an adjustment to the to the gross monthly service period charges produced by the above formula. 2) The total demand charge in any week, pursuant to a reservation for Daily On-Peak Delivery, or Daily Off-Peak Delivery shall not exceed the Weekly Delivery rate specified in section (1) above for weekly service times the highest amount in kilowatts of Reserved Capacity and any additional transmission service, if any, in any day during such week. 3) Discounts: Three principal requirements apply to discounts for transmission service as follows: (1) any offer of a discount made by the Transmission Provider must be announced to all Eligible Customers solely by posting on the OASIS, (2) any customer-initiated requests for discounts (including requests for use by one s wholesale merchant or an Affiliate s use) must occur solely by posting on the OASIS, and (3) once a discount is negotiated, details must be immediately posted on the OASIS. For any discount agreed upon for service on a path, from point(s) of receipt to point(s) of delivery, the Transmission Provider must offer the same discounted transmission service rate for the same time period to all Eligible Customers on all unconstrained transmission paths that go to the same point(s) of delivery on the Transmission System. 4) Congestion, Losses and Capacity Export: In addition to any payment under this Schedule, the Transmission Customer shall pay Redispatch Costs as specified in Section 27 of the Tariff. The Transmission Customer shall be responsible for losses as specified in the Tariff. Any Transmission Customer that is a Capacity Export Transmission Customer, shall pay any applicable charges, and receive any applicable credits, for such a customer pursuant to Attachment DD. 5) Other Supporting Facilities and Taxes: In addition to the rates set forth in section (1) of this schedule, the Transmission Customer shall pay charges determined on a case-by-case basis for facilities necessary to provide Transmission Service at voltages lower than those shown in Attachment H for the applicable Zone(s) and any amounts necessary to reimburse PJMSettlement for any amounts payable as sales, excise, Btu, carbon, value-added or similar Page 4

11 taxes (other than taxes based upon or measured by net income) with respect to the amounts payable pursuant to the Tariff. 6) Transitional Revenue Neutrality Charge: In addition to the rates set forth in section (1) of this schedule and any other applicable charges, the Transmission Customer shall also pay for Reserved Capacity for delivery at the border of the PJM Region a non-discountable charge of $3.60/kw/year, $0.30/kw/mo., $0.0692/kw/week, $0.0099/kw/day-off-peak, or $0.0138/kw/dayon-peak. PJM shall distribute all revenues from the Transitional Revenue Neutrality Charge to Allegheny Power. The charge provided for under this section (6) shall terminate effective as of the day on which the sum total of the revenues collected by this charge, the Transitional Revenue Neutrality Charge under Schedule 8, and the Transitional Market Expansion Charge under Schedule 11 equal $84,993,360. 7) Transmission Enhancement Charges. In addition to the rates set forth in Section (1) of this Schedule and any other applicable charges, the Transmission Customer shall also pay any Transmission Enhancement Charges for which it is designated as a Responsible Customer under Schedule 12 appended to the Tariff. 8) Determination of monthly charges for ComEd Zone: On a monthly basis, revenue credits shall be calculated based on the sum of ComEd s share of revenues collected during the month from: (i) the PJM Border Rate under Schedule 7; (ii) Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A; (iii) Seams Elimination Charge/Cost Adjustment/Assignment ( SECA ) revenues allocable to ComEd under the Tariff; and (iv) any Point-To-Point Transmission Service where the Point of Receipt and the Point of Delivery are both internal to the ComEd Zone. On this basis, the sum of these revenues will appear as a reduction to the gross monthly rate stated above on a Transmission Customer s bill in that month for service under this schedule. 9) Determination of monthly charges for AEP Zone: On a monthly basis, revenue credits shall be calculated based on the sum of AEP s share of revenues collected during the month from: (i) the PJM Border Rate under Schedule 7; (ii) Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A; and (iii) Firm Point-To-Point Transmission Service where the Point of Delivery is internal to the AEP Zone. The sum of these revenue credits will appear as an adjustment (reduction) to the gross monthly rate stated above on a Transmission Customer s bill in that month for service under this schedule. 10) Resales: The rates and rules governing charges and discounts stated above shall not apply to resales of transmission service, compensation for which shall be governed by section 23.1 of the Tariff. Page 5

12 SCHEDULE 8 Non-Firm Point-To-Point Transmission Service 1) The Transmission Customer shall pay for Non-Firm Point-To-Point Transmission Service up to the sum of the applicable charges set forth below for the Point of Delivery: Summary of Charges Point of Delivery Monthly Charge ($/kw) Weekly Charge ($/kw) Daily On- Peak 1/ Charge ($/kw) Daily Off- Peak 2/ Charge ($/kw) Hourly On-Peak 3/ Charge ($/MWh) Hourly Off- Peak 4/ Charge ($/MWh) Border of PJM AE Zone BG&E Zone Delmarva Zone JCPL Zone MetEd Zone Penelec Zone PECO Zone PPL Zone: Total charge is the sum of the components PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: 0.11 UGI: * PPL: * AEC: 0.05 UGI: * Pepco Zone PSE&G Zone AP Zone Rockland Zone / 6/ ComEd Zone * PPL Electric Utilities Corporation s and UGI Utilities respective component of the total charge is posted on the PJM Internet website. Page 6

13 AEP East Zone 7/ Nov. 1, 2005 AEP East Zone 7/ Attachment H-14 Monthly Charge X 12 / 52 Weekly Charge / 5 Weekly Charge / 7 Daily On- Peak Charge / 16 SECA Ended W-JF Line In Dayton Zone Dayton Zone Duquesne Zone Duquesne Zone Dominion Zone 8/ Dominion Zone 8/ ATSI Zone ATSI Zone Attachment H-21 Rate Pursuant to Attachment H-21 Attachment H-21 Rate Pursuant to Attachment H-21 Rate Pursuant to Attachment H-21 DEOK Zone DEOK Zone Attachment H-22 Attachment H-22 Attachment H-22 Rate Pursuant to Attachment H-22 Rate Pursuant to Attachment H-22 EKPC Zone EKPC Zone Attachment H-24 Attachment H-24 Attachment H-24 Rate Pursuant to Attachment H-24 Rate Pursuant to Attachment H-24 1/ Monday - Friday except the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 2/ Saturday and Sunday and the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 3/ 7:00 a.m. up to the hour ending 11:00 p.m. 4/ 11:00 p.m. up to the hour ending 7:00 a.m. 5/ Each month, revenue credits will be applied to the gross charge in accordance with Paragraph 9 below to determine the actual charge to the Transmission Customer. 6/ The charges for the ComEd zone are posted on PJM s website. In addition to the other rates set forth in this schedule, customers within the ComEd zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $1,523,039, divided by the 1 CP demand for the ComEd zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily rate - $/kw/day = Weekly Rate divided by 5. In order to ensure that the charge does not result in either an over-recovery or underrecovery of ComEd s start-up costs, PJM will institute an annual true-up mechanism in the month of May of each of the years In May of each of those years, PJM will compare the amount collected under this charge for the previous 12 months with the target annual amount of $1,523,039 and calculate any credits or surcharges that would be Page 7

14 needed to ensure that $1,523,039 is collected for each year. Any credit or surcharge will be assessed in the June bills for years , consistent with the above methodology. 7/ The rates for non-firm point-to-point transmission service in the AEP Zone will be charged at the monthly, weekly, daily or hourly rate equivalent to the rate effective in such period under Attachment H-14. In addition to other rates set forth in this schedule, customers within the AEP East Zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $2,362,185, plus any applicable true-up adjustment, divided by the 1 CP demand for the AEP East Zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily Rate - $/kw/day = Weekly Rate divided by 5. For the period November 1, 2005 through March 31, 2006, the rate shall be $8.94/MWmonth; for the period April 1 through December 31, 2006, the rate shall be $8.60/MWmonth, thereafter, the rate will be subject to the following true-up: In order to ensure that the charge does not result in either over-recovery or underrecovery of AEP s start-up costs, PJM will institute an annual true-up mechanism and implement revised charges as of January 1st of each of the years In January of each of those years, PJM will compare the amount collected under this charge for the previous year or part thereof with the target annual amount of $2,362,185 and calculate the rates that would be needed, given the expected billing demands, to collect $2,362,185, adjusted for any prior year over-collection or under-collection. In the final year that the rate is collected, PJM will calculate the rate to collect five-twelfths of the annual amount, ($984,244), plus or minus any prior year true up amount, by May 31 of that year, and shall charge such rate until that amount is collected, whether that date be before or after May 31, Effective December 1, 2004, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 8 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. obtained pursuant to requests submitted on or after November 17, 2003, for service commencing on or after April 1, Effective April 1, 2006, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 7 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. 8/ The service period charges rounded to four decimal places for the Dominion Zone are as follows: Page 8

15 Monthly Charge - $/kw/month = the formula rate for Network Integration Transmission Service as described in Attachment H-16 and Attachment H-16A divided by 12 divided by 1000 kw/mw; Weekly Charge - $/kw/week = 12 times Monthly Charge divided by 52; Daily On-Peak Charge - $/kw/day = Weekly Charge divided by 5; Daily Off-Peak Charge - $/kw/day = Weekly Charge divided by 7; Hourly On-Peak Charge - $/MWh = Daily On-Peak Charge / 16 hours *1000 kw/ MW; Hourly Off-Peak Charge - $/ MWh = Daily Off-Peak Charge / 24 hours *1000 kw/ MW. 2) The total demand charge in any week, pursuant to a reservation for Daily On-Peak Delivery or Daily Off-Peak Delivery, shall not exceed the Weekly Delivery rate specified in section (1) above for weekly service times the highest amount in kilowatts of Reserved Capacity and any additional transmission service, if any, in any day during such week. 3) Hourly delivery: The basic charge shall be that agreed upon by the Parties at the time this service is reserved and in no event shall exceed the amounts set forth above for a Point of Delivery. The total demand charge in any day, pursuant to a reservation for Hourly delivery, shall not exceed the rate specified in section (1) above for daily service times the highest amount in kilowatts of Reserved Capacity in any hour during such day. In addition, the total demand charge in any week, pursuant to a reservation for Hourly or Daily delivery, shall not exceed the rate specified in section (1) above for weekly service times the highest amount in kilowatts of Reserved Capacity in any hour during such week. 4) Discounts: Three principal requirements apply to discounts for transmission service as follows: (1) any offer of a discount made by the Transmission Provider must be announced to all Eligible Customers solely by posting on the OASIS, (2) any customer-initiated requests for discounts (including requests for use by one s wholesale merchant or an Affiliate s use) must occur solely by posting on OASIS, and (3) once a discount is negotiated, details must be immediately posted on the OASIS. For any discount agreed upon for service on a path, from point(s) of receipt to point(s) of delivery, the Transmission Provider must offer the same discounted transmission service rate for the same time period to all Eligible Customers on all unconstrained transmission paths that go to the same point(s) of delivery on the Transmission System. 5) Congestion, Losses and Capacity Export: A Transmission Customer desiring Non- Firm Point-to-Point Transmission Service may elect to pay transmission congestion charges. If the Transmission Customer so elects, it shall either (a) if the applicable Transmission Congestion Charge as calculated pursuant to Attachment K is positive, pay the higher of the applicable Transmission Congestion Charge or the applicable rate under section (1) above, or (b) if the Page 9

16 applicable Transmission Congestion Charge as calculated pursuant to Attachment K is negative, pay or be credited the sum of the applicable Transmission Congestion Charge and the rate under section (1) above. The Transmission Customer shall be responsible for losses as specified in the Tariff. Any Transmission Customer that is a Capacity Export Transmission Customer, shall pay for any applicable charges, and receive any applicable credits, for such a customer pursuant to Attachment DD. 6) Other Supporting Facilities and Taxes: In addition to the charges set forth in section (1) of this schedule, the Transmission Customer shall pay charges determined on a case-by-case basis for facilities necessary to provide Transmission Service at voltages lower than those shown in Attachment H for the applicable Zone(s) and any amounts necessary to reimburse the Transmission Provider for any amounts payable as sales, excise, Btu, carbon, value-added or similar taxes (other than taxes based upon or measured by net income) with respect to the amounts payable pursuant to the Tariff. 7) Transmission Enhancement Charges: In addition to the rates set forth in Section (1) of this Schedule and any other applicable charges, the Transmission Customer shall also pay any Transmission Enhancement Charges for which it is designated as a Responsible Customer under Schedule 12 appended to the Tariff. 8) Determination of monthly charges for ComEd Zone: On a monthly basis, revenue credits shall be calculated based on the sum of ComEd s share of revenues collected during the month from: (i) the PJM Border Rate under Schedule 7; (ii) Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A; (iii) Seams Elimination Charge/Cost Adjustment/Assignment ( SECA ) revenues allocable to ComEd under the Tariff; and (iv) any Point-To-Point Transmission Service where the Point of Receipt and the Point of Delivery are both internal to the ComEd Zone. On this basis, the sum of these revenues will appear as a reduction to the gross monthly rate stated above on a Transmission Customer s bill in that month for service under this schedule. 9) Resales: The rates and rules governing charges and discounts stated above shall not apply to resales of transmission service, compensation for which shall be governed by section 23.1 of the Tariff. Page 10

17 ATTACHMENT H-12 Annual Transmission Rates -- Rockland Electric Company for Network Integration Transmission Service 1. The annual transmission revenue requirement is $17,724,26316,833,707 and the rate for Network Integration Transmission Service is $44,79942,548 per megawatt per year. 2. The rate stated in section 1 above shall be effective until amended by the Regional Transmission Owner(s) within the Zone or modified by the Commission. 3. In addition to the rate set forth in section 1 above, the Network Customer purchasing Network Integration Transmission Service shall pay for transmission congestion charges, in accordance with the provisions of the Tariff, and any amounts necessary to reimburse the Regional Transmission Owners for any amounts payable by them as sales, excise, Btu, carbon, value-added or similar taxes (other than taxes based upon or measured by net income) with respect to the amounts payable pursuant to the Tariff. Page 11

18 Attachment B Clean Tariff Records

19 SCHEDULE 7 Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service 1) The Transmission Customer shall pay each month for Reserved Capacity at the sum of the applicable charges set forth below for the Point of Delivery: Summary of Charges (in $/kw) Point of Delivery Yearly Charge Monthly Charge Weekly Charge Daily On-Peak 1 Charge Daily Off-Peak 2/ Charge Border of PJM AE Zone BG&E Zone Delmarva Zone JCPL Zone MetEd Zone Penelec Zone PECO Zone PPL Zone: Total charge is the sum of the components PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * Pepco Zone PSE&G Zone AP Zone Rockland Zone / 4/ ComEd Zone * PPL Electric Utilities Corporation s and UGI Utilities respective component of the total charge is posted on the PJM Internet website. Page 1

20 Point of Delivery Yearly Charge Monthly Charge AEP East Zone 5/ Monthly Charge X 12 Attachment H-14 Weekly Charge Daily On- Peak 1 Charge Daily Off- Peak 2/ Charge Yearly Charge / 52 Weekly Charge / 5 Weekly Charge / 7 Dayton Zone Duquesne Zone Dominion Zone 6/ ATSI Zone DEOK Zone EKPC Zone Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Attachment H-21 Attachment H-22 Attachment H-24 Effective December 1, 2004, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 7 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. obtained pursuant to requests submitted on or after November 17, 2003, for service commencing on or after April 1, Effective April 1, 2006, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 7 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. 1/ Monday Friday except the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 2/ Saturday and Sunday and the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 3/ Each month, revenue credits will be applied to the gross charge in accordance with section 8 below to determine the actual charge to the Transmission Customer. 4/ The charges for the ComEd zone are posted on PJM s website. In addition to other rates set forth in this schedule, customers within the ComEd zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $1,523,039, divided by the 1 CP demand for the ComEd zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily Rate - $/kw/day = Weekly Rate divided by 5. In order to ensure that the charge does not result in either an over-recovery or under-recovery of ComEd s start-up costs, PJM will institute an annual true-up Page 2

21 mechanism in the month of May of each of the years In May of each of those years, PJM will compare the amount collected under this charge for the previous 12 months with the target annual amount of $1,523,039 and calculate any credits or surcharges that would be needed to ensure that $1,523,039 is collected for each year. Any credit or surcharge will be assessed in the June bills for years , consistent with the above methodology. 5/ The rates for firm point-to-point transmission service in the AEP Zone will be charged at the yearly, monthly, weekly or daily rate equivalent to the rate effective in such period under Attachment H-14. In addition to other rates set forth in this schedule, customers within the AEP East Zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $2,362,185, plus any applicable true-up adjustment, divided by the 1 CP demand for the AEP East Zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily Rate - $/kw/day = Weekly Rate divided by 5. For the period November 1, 2005 through March 31, 2006, the rate shall be $8.94/MW-month; for the period April 1 through December 31, 2006, the rate shall be $8.60/MW-month, thereafter, the rate will be subject to the following true-up: In order to ensure that the charge does not result in either over-recovery or underrecovery of AEP s start-up costs, PJM will institute an annual true-up mechanism and implement revised charges as of January 1st of each of the years In January of each of those years, PJM will compare the amount collected under this charge for the previous year or part thereof with the target annual amount of $2,362,185 and calculate the rates that would be needed, given the expected billing demands, to collect $2,362,185, adjusted for any prior year over-collection or under-collection. In the final year that the rate is collected, PJM will calculate the rate to collect five-twelfths of the annual amount ($984,244), plus or minus any prior year true up amount, by May 31 of that year, and shall charge such rate until that amount is collected, whether that date be before or after May 31, / The service period charges rounded to four decimal places for the Dominion Zone are as follows: Yearly Charge - $/kw/year = the formula rate for Network Integration Transmission Service as described in Attachment H-16 and Attachment H- 16A divided by 1000 kw/mw Page 3

22 Monthly Charge - $/kw/month. = Yearly Charge divided by 12; Weekly Charge - $/kw/week = Yearly Charge divided by 52; Daily On-Peak Charge - $/kw/day = Weekly Charge divided by 5; Daily Off-Peak Charge - $/kw/day = Weekly Charge divided by 7. On a monthly basis, revenue credits shall be calculated based on the sum of VEPCO s share of revenues collected during the month from Schedule 7 and Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A. The sum of these revenue credits will appear as an adjustment to the to the gross monthly service period charges produced by the above formula. 2) The total demand charge in any week, pursuant to a reservation for Daily On-Peak Delivery, or Daily Off-Peak Delivery shall not exceed the Weekly Delivery rate specified in section (1) above for weekly service times the highest amount in kilowatts of Reserved Capacity and any additional transmission service, if any, in any day during such week. 3) Discounts: Three principal requirements apply to discounts for transmission service as follows: (1) any offer of a discount made by the Transmission Provider must be announced to all Eligible Customers solely by posting on the OASIS, (2) any customer-initiated requests for discounts (including requests for use by one s wholesale merchant or an Affiliate s use) must occur solely by posting on the OASIS, and (3) once a discount is negotiated, details must be immediately posted on the OASIS. For any discount agreed upon for service on a path, from point(s) of receipt to point(s) of delivery, the Transmission Provider must offer the same discounted transmission service rate for the same time period to all Eligible Customers on all unconstrained transmission paths that go to the same point(s) of delivery on the Transmission System. 4) Congestion, Losses and Capacity Export: In addition to any payment under this Schedule, the Transmission Customer shall pay Redispatch Costs as specified in Section 27 of the Tariff. The Transmission Customer shall be responsible for losses as specified in the Tariff. Any Transmission Customer that is a Capacity Export Transmission Customer, shall pay any applicable charges, and receive any applicable credits, for such a customer pursuant to Attachment DD. 5) Other Supporting Facilities and Taxes: In addition to the rates set forth in section (1) of this schedule, the Transmission Customer shall pay charges determined on a case-by-case basis for facilities necessary to provide Transmission Service at voltages lower than those shown in Attachment H for the applicable Zone(s) and any amounts necessary to reimburse PJMSettlement for any amounts payable as sales, excise, Btu, carbon, value-added or similar taxes (other than taxes based upon or measured by net income) with respect to the amounts payable pursuant to the Tariff. Page 4

23 6) Transitional Revenue Neutrality Charge: In addition to the rates set forth in section (1) of this schedule and any other applicable charges, the Transmission Customer shall also pay for Reserved Capacity for delivery at the border of the PJM Region a non-discountable charge of $3.60/kw/year, $0.30/kw/mo., $0.0692/kw/week, $0.0099/kw/day-off-peak, or $0.0138/kw/dayon-peak. PJM shall distribute all revenues from the Transitional Revenue Neutrality Charge to Allegheny Power. The charge provided for under this section (6) shall terminate effective as of the day on which the sum total of the revenues collected by this charge, the Transitional Revenue Neutrality Charge under Schedule 8, and the Transitional Market Expansion Charge under Schedule 11 equal $84,993,360. 7) Transmission Enhancement Charges. In addition to the rates set forth in Section (1) of this Schedule and any other applicable charges, the Transmission Customer shall also pay any Transmission Enhancement Charges for which it is designated as a Responsible Customer under Schedule 12 appended to the Tariff. 8) Determination of monthly charges for ComEd Zone: On a monthly basis, revenue credits shall be calculated based on the sum of ComEd s share of revenues collected during the month from: (i) the PJM Border Rate under Schedule 7; (ii) Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A; (iii) Seams Elimination Charge/Cost Adjustment/Assignment ( SECA ) revenues allocable to ComEd under the Tariff; and (iv) any Point-To-Point Transmission Service where the Point of Receipt and the Point of Delivery are both internal to the ComEd Zone. On this basis, the sum of these revenues will appear as a reduction to the gross monthly rate stated above on a Transmission Customer s bill in that month for service under this schedule. 9) Determination of monthly charges for AEP Zone: On a monthly basis, revenue credits shall be calculated based on the sum of AEP s share of revenues collected during the month from: (i) the PJM Border Rate under Schedule 7; (ii) Network Integration Transmission Service to Non-Zone Network Load under Attachment H-A; and (iii) Firm Point-To-Point Transmission Service where the Point of Delivery is internal to the AEP Zone. The sum of these revenue credits will appear as an adjustment (reduction) to the gross monthly rate stated above on a Transmission Customer s bill in that month for service under this schedule. 10) Resales: The rates and rules governing charges and discounts stated above shall not apply to resales of transmission service, compensation for which shall be governed by section 23.1 of the Tariff. Page 5

24 SCHEDULE 8 Non-Firm Point-To-Point Transmission Service 1) The Transmission Customer shall pay for Non-Firm Point-To-Point Transmission Service up to the sum of the applicable charges set forth below for the Point of Delivery: Summary of Charges Point of Delivery Monthly Charge ($/kw) Weekly Charge ($/kw) Daily On- Peak 1/ Charge ($/kw) Daily Off- Peak 2/ Charge ($/kw) Hourly On-Peak 3/ Charge ($/MWh) Hourly Off- Peak 4/ Charge ($/MWh) Border of PJM AE Zone BG&E Zone Delmarva Zone JCPL Zone MetEd Zone Penelec Zone PECO Zone PPL Zone: Total charge is the sum of the components PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: UGI: * PPL: * AEC: 0.11 UGI: * PPL: * AEC: 0.05 UGI: * Pepco Zone PSE&G Zone AP Zone Rockland Zone / 6/ ComEd Zone * PPL Electric Utilities Corporation s and UGI Utilities respective component of the total charge is posted on the PJM Internet website. Page 6

25 AEP East Zone 7/ Nov. 1, 2005 AEP East Zone 7/ Attachment H-14 Monthly Charge X 12 / 52 Weekly Charge / 5 Weekly Charge / 7 Daily On- Peak Charge / 16 SECA Ended W-JF Line In Dayton Zone Dayton Zone Duquesne Zone Duquesne Zone Dominion Zone 8/ Dominion Zone 8/ ATSI Zone ATSI Zone Attachment H-21 Rate Pursuant to Attachment H-21 Attachment H-21 Rate Pursuant to Attachment H-21 Rate Pursuant to Attachment H-21 DEOK Zone DEOK Zone Attachment H-22 Attachment H-22 Attachment H-22 Rate Pursuant to Attachment H-22 Rate Pursuant to Attachment H-22 EKPC Zone EKPC Zone Attachment H-24 Attachment H-24 Attachment H-24 Rate Pursuant to Attachment H-24 Rate Pursuant to Attachment H-24 1/ Monday - Friday except the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 2/ Saturday and Sunday and the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 3/ 7:00 a.m. up to the hour ending 11:00 p.m. 4/ 11:00 p.m. up to the hour ending 7:00 a.m. 5/ Each month, revenue credits will be applied to the gross charge in accordance with Paragraph 9 below to determine the actual charge to the Transmission Customer. 6/ The charges for the ComEd zone are posted on PJM s website. In addition to the other rates set forth in this schedule, customers within the ComEd zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $1,523,039, divided by the 1 CP demand for the ComEd zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily rate - $/kw/day = Weekly Rate divided by 5. In order to ensure that the charge does not result in either an over-recovery or underrecovery of ComEd s start-up costs, PJM will institute an annual true-up mechanism in the month of May of each of the years In May of each of those years, PJM will compare the amount collected under this charge for the previous 12 months with the target annual amount of $1,523,039 and calculate any credits or surcharges that would be Page 7

26 needed to ensure that $1,523,039 is collected for each year. Any credit or surcharge will be assessed in the June bills for years , consistent with the above methodology. 7/ The rates for non-firm point-to-point transmission service in the AEP Zone will be charged at the monthly, weekly, daily or hourly rate equivalent to the rate effective in such period under Attachment H-14. In addition to other rates set forth in this schedule, customers within the AEP East Zone shall be charged for recovery of RTO start-up costs at the following rates, each computed to four decimal places: Annual Rate - $/kw/year = $2,362,185, plus any applicable true-up adjustment, divided by the 1 CP demand for the AEP East Zone for the prior calendar year; Monthly Rate - $/kw/month. = Annual Rate divided by 12; Weekly Rate - $/kw/week = Annual Rate divided by 52; Daily Rate - $/kw/day = Weekly Rate divided by 5. For the period November 1, 2005 through March 31, 2006, the rate shall be $8.94/MWmonth; for the period April 1 through December 31, 2006, the rate shall be $8.60/MWmonth, thereafter, the rate will be subject to the following true-up: In order to ensure that the charge does not result in either over-recovery or underrecovery of AEP s start-up costs, PJM will institute an annual true-up mechanism and implement revised charges as of January 1st of each of the years In January of each of those years, PJM will compare the amount collected under this charge for the previous year or part thereof with the target annual amount of $2,362,185 and calculate the rates that would be needed, given the expected billing demands, to collect $2,362,185, adjusted for any prior year over-collection or under-collection. In the final year that the rate is collected, PJM will calculate the rate to collect five-twelfths of the annual amount, ($984,244), plus or minus any prior year true up amount, by May 31 of that year, and shall charge such rate until that amount is collected, whether that date be before or after May 31, Effective December 1, 2004, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 8 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. obtained pursuant to requests submitted on or after November 17, 2003, for service commencing on or after April 1, Effective April 1, 2006, the charge for Points of Delivery at the Border of PJM and the Transitional Revenue Neutrality Charge under this Schedule 7 shall not apply to any Reserved Capacity with a Point of Delivery of the Midwest Independent Transmission System Operator, Inc. 8/ The service period charges rounded to four decimal places for the Dominion Zone are as follows: Page 8