/s/ John L. Carley Assistant General Counsel

John L. Carley Assistant General Counsel Law Department July 28, 2016 Christopher Psihoules, DAG Division of Law 124 Halsey Street, 5 th Floor P.O. Box 45029 Newark, NJ 07101 Christine M. Juarez, Esq. Division of Rate Counsel 140 East Front Street, 4 th Floor P.O. Box 003 Trenton, NJ 08625 Re: In the Matter of the Verified Petition of Rockland Electric Company for Approval of Changes in Electric Rates, Its Tariff for Electric Service, And Its Depreciation Rates, Approval of an Advanced Metering Program; And for Other Relief BPU Docket No. ER16050428 OAL Docket No. PUC Dear Mr. Psihoules and Ms. Juarez: On behalf of Rockland Electric Company, enclosed please find a copy of the Company s 6+6 update to its base rate filing. The updated revenue requirement is $8.522 million compared to $9.644 million as filed. Although we have not yet received the Notice of Transmittal from the Board of Public Utilities, the Company is providing this update to the parties to expedite the processing of this matter. The parties are being provided copies of this update by email (and mail to party designees) in accordance with their designations to date as set forth on the attached Service List. We will file the update with the Office of Administrative Law following transmittal and the assignment of an Administrative Law Judge. Very truly yours, Enclosure c: Attached Service List Irene Kim Asbury (one copy via mail) /s/ John L. Carley Assistant General Counsel Rockland Electric Company 4 Irving Place Room 1815-S New York NY 10003 212 460 2097 212 677 5850 fax comesm@coned.com

ROCKLAND ELECRIC COMPANY EXHIBITS 6+6 Update Tab No. Exhibits No. Subject 1 P-2 Electric Cost of Service 2 P-3 Electric Rate Base 3 P-4 Capitalization and Cost of Capital

Exhibit P-2 ROCKLAND ELECTRIC COMPANY INDEX OF SCHEDULES Cost of Service for the Twelve Months Ended December 31, 2016 for Operating Income, Rate Base and Rate of Return Witness - Accounting Panel Schedule Title of Schedules Summary Cost of Service for the Twelve Months Ended December 31, 2016 (Pages 1-5) Including Adjustment Summary 1 Adjustment to Reflect Weather Normalization of Sales and Revenues Adjustment to Reflect removal of Smart Grid Surcharge 2 Adjustment to Revenues and Expenses to Reflect Revenue Annualization of Added Customers 3 Adjustment to Other Operating Revenues to Reflect Three Year Average 4 Adjustment to Operation and Maintenance Expenses to Reflect Change in Distribution Wages and Salaries 5 Adjustment To Operation and Maintenance Expenses to Reflect Change in Employee Health and Benefit Insurance Costs 6 Adjustment To Operations and Maintenance Expenses to Reflect Change in Employee Pension Costs 7 Adjustment To Operations and Maintenance Expenses to Reflect change in Post Retiree Expenses Other Than Pension Costs ("OPEBs") 8 Adjustment to Operation and Maintenance Expenses to Reflect Interest on Customer Deposits 9 Adjustment to Operation and Maintenance Expenses to Reflect Rate Case Cost Amortization 10 Adjustment to Operation and Maintenance Expenses to Eliminate EEI Lobbying Expense 11 Adjustment to Operation and Maintenance Expenses to Reflect Actual Customer Uncollectible Write-Off Experience

Exhibit P-2 ROCKLAND ELECTRIC COMPANY INDEX OF SCHEDULES Cost of Service for the Twelve Months Ended December 31, 2016 for Operating Income, Rate Base and Rate of Return Schedule Title of Schedules 12 Adjustment to Operation and Maintenance Expenses to Reflect Operations 13 Adjustment to Operation and Maintenance Expenses to Equalize Return Component of Intercompany Billings 14 Adjustment to Operation and Maintenance Expenses to Extend the Deferred Costs Amortizations 15 Adjustment to Operation and Maintenance Expense to Eliminate Current Deferred Costs Amortizations 16 Adjustment to Depreciation Expense to Reflect Annualization of Test Year Depreciation and Impact of Proposed Rate Changes 17 Adjustment to Depreciation Expense to Reflect Depreciation Expense for Post Test Year Additions for System Reliability at Proposed Depreciation Rates 18 Adjustment to Deprecation Expense For the Amortization of Negative Salvage Credits 19 Adjustment to Update Provision for Salvage Cost Based on a Three Year Cumulative Average of Actual Cost for the thirty three months ending December 31 2015. 20 Adjustment to Taxes Other Than Income Taxes to Reflect Increases in Payroll Taxes 21 Calculation of State Income Tax Expense 22 Calculation of Federal Income Tax Expense 23 Calculation of Interest Synchronization

ROCKLAND ELECTRIC COMPANY Electric Cost of Service Elimination of Electric Transmission Revenues, Expenses & Rate Base For the Twelve Months Ended December 31, 2016 ($000s) Exhibit P-2 Summary Page 1 of 5 Total (excl. Total Transmission Transmission) 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12/31/2016 12/31/2016 12/31/2016 Operating Revenues: Sales of Electricity $182,381 $13,577 $168,804 Other Operating Revenues 440-440 Total Operating Revenues 182,821 13,577 169,244 Operating Expenses: Purchased Power Supply Expense Purchased Power Expense 88,454-88,454 Distribution Power Supply (210) (210) FERC Power Supply Billings 12,032 12,032 - Deferred Purchased Power (268) - (268) Other Operation and Maintenance Expenses Transmission Expenses 2,184 2,184 - Distribution Expenses 17,062-17,062 Customer Accounts Expenses 5,388-5,388 Customer Service and Informational Expenses 10,242-10,242 Sales Promotion Expenses 2-2 Administrative & General Expenses 25,470 2,527 22,943 Total Operating Expenses 160,355 16,743 143,612 Depreciation and Amortization Expense 8,898 766 8,132 Taxes Other than Income Taxes 1,941 83 1,858 Total Operating Revenue Deducts 171,193 17,592 153,602 Operating Income Before Income Taxes 11,628 (4,014) 15,642 State Income Tax 527 (402) 929 Federal Income Tax 2,074 (1,524) 3,598 Operating Income After Income Taxes $9,026 ($2,089) $11,115 Rate Base $211,349 $16,681 $194,668

ROCKLAND ELECTRIC COMPANY Electric Distribution Cost of Service For the Twelve Months Ended December 31, 2016 ($000s) Exhibit P-2 Summary Page 2 of 5 Electric 12 Mos. Ended Distribution 12 Mos. Ended 12/31/2016 12 Mos. Ended Adjustments 12/31/2016 Proposed As Adjusted For 12/31/2016 Reference Amount As Adjusted Rate Change Add'l Revenue (1) (2) (3) (4) = (1+3) (5) (6) Operating Revenues: Sales of Electricity $168,804 (1) $ 237 169,217 $8,522 $177,739 (2) 177 Other Operating Revenues 440 (3) 13 453 453 Total Operating Revenues 169,244 427 169,670 8,522 178,192 Operating Expenses: Purchased Power Supply Expense Purchased Power 88,244-88,244 88,244 FERC Power Supply Billings - - - - Deferred Purchased Power (268) - (268) (268) Other Operation and Maintenance Expenses 55,636 (2) 41 57,764 13 57,777 (4) 598 (5) 90 (6) 107 (7) 332 (8) 6 (9) 200 (10) (5) (11) 15 (12) 573 (13) 63 (14) (22) (15) 130 Total Operating Expenses 143,612 2,128 145,740 13 145,753 Depreciation and Amortization Expense 8,132 (16) 547 7,916 7,916 (17) 157 (18) (1,293) (19) 373 Taxes Other than Income Taxes 1,858 (20) 32 1,890 1,890 Total Operating Revenue Deducts 153,602 1,944 155,546 13 155,559 Operating Income Before Income Taxes 15,642 (1,518) 14,125 8,509 22,634 State Income Tax 929 (21), (23) (137) 793 766 1,559 Federal Income Tax 3,598 (22), (23) (560) 3,038 2,710 5,748 Operating Income After Income Taxes $11,115 ($821) $10,294 $5,033 $15,327 Rate Base $194,668 $1,830 $196,498 $196,498 Rate of Return 5.71% 5.24% 7.80%

ROCKLAND ELECTRIC COMPANY Computation of Distribution Revenue Requirement For the Twelve Months Ended December 31, 2016 ($000s) Exhibit P-2 Summary Page 3 of 5 Revenue Requirement Change Rate Base (Per Exhibit P-2 Summary, Page 2) $196,498 Rate of Return (Per Exhibit P-4) 7.80% Total Return Required 15,327 Earned Return (Per Exhibit P-2 Summary, Page 2) 10,294 Additional Return Required 5,033 Divided By: Retention Factor* 59.06% Additional Revenue Requirement $8,522 * Calculation of Retention Factor: % Additional Revenue 100.00% $8,522 Uncollectibles @ 0.151% 0.15% 13 99.85% 8,509 New Jersey Corporate Business Tax @ 9.0% 8.99% 766 90.86% 7,743 Federal Income Tax @ 35% 31.80% 2,710 59.06% $5,033

ROCKLAND ELECTRIC COMPANY Exhibit P-2 Summary Page 4 of 5 Adjustment Number Adjustments to the Cost of Service For the Twelve Months Ended December 31, 2016 Electric Retail Rates (Test Year) ($000s) Description Amount (1) Adjustment to Reflect Weather Normalization of Sales and Revenues $435 Adjustment to Eliminate Smart Grid Surcharge (198) (2) Adjustment to Revenues and Expenses to Reflect Revenue Annualization of Added Customers Additional Revenue 177 Additional Customer Cost 41 (3) Adjustment to Other Operating Revenues to Reflect Three Year Average 13 (4) Adjustment to Operation and Maintenance Expenses to Reflect Increase In Distribution Wages and Salaries 416 Additional Employees 182 (5) Adjustment To Operation and Maintenance Expenses to Reflect Change in Employee Health and Benefit Insurance Costs 90 (6) Adjustment To Operation and Maintenance Expenses to Reflect Change in Employee Pension Costs 107 (7) Adjustment To Operations and Maintenance Expenses to Reflect Change in Post Retiree Expenses Other Than Pension Costs ("OPEBs") 332 (8) Adjustment to Operation and Maintenance Expenses to Reflect 6 Interest on Customer Deposits (9) Adjustment to Operation and Maintenance Expenses to Reflect 200 Rate Case Cost Amortization (10) Adjustment to Operation and Maintenance Expenses to Eliminate (5) EEI Lobbying Expense (11) Adjustment to Operation and Maintenance Expenses to Reflect 15 Actual Customer Uncollectible Write-Off Experience (12) Adjustment to Operation and Maintenance Expenses to Reflect 573 Operations

ROCKLAND ELECTRIC COMPANY Exhibit P-2 Summary Page 5 of 5 Adjustment Number Adjustments to the Cost of Service For the Twelve Months Ended December 31, 2016 Electric Retail Rates (Test Year) ($000s) Description Amount (13) To Equalize Return Component of Intercompany Billings 63 (14) Adjustment to Reflect Regulatory Amortizations in Rate Year (22) (15) Adjustment to Eliminate Regulatory Amortizations from Test Year 130 (16) Adjustment to Depreciation Expense to Reflect Annualization of Test Year Depreciation and Impact of Proposed Rate Changes 547 Current FIT - Tax Depreciation Flow Thru 547 Current FIT - Tax Depreciation Normalization Deduction (1,094) Deferred FIT - Tax Depreciation (383) (17) Adjustment to Depreciation Expense to Reflect Depreciation Expense for Post Test Year Additions for System Reliability at Proposed Depreciation Rates 157 Current FIT - Tax Depreciation Flow Thru Deduction 157 Current FIT - Tax Depreciation Normalization Deduction (314) Deferred FIT - Tax Depreciation (110) (18) Adjustment to Deprecation Expense For the Amortization of (1,293) Negative Salvage Credits (19) Adjustment to Update Provision for Salvage Cost 373 Based on a Three Year Cumulative Average of Actual Cost for the thirty three months ending December 31 2015. (20) Adjustment to Taxes Other Than Income Taxes 32 to Reflect Increases in Payroll Taxes (21) Calculation of State Income Tax Expense (137) (22) Calculation of Federal Income Tax Expense (560) (23) Calculation of Interest Synchronization 50

Exhibit P-2 Schedule 1 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (1) To Revenues For the Twelve Months Ended December 31, 2016 Adjustment to Reflect Weather Normalization of Sales and Revenues: Actual Volumes (MWh) Weather Norm (MWh) Delivery Average Price (cents/kwh) Weather Revenue Impact ($000) Month / Year January 2016 129,346 (716) 5.080 ($36.4) February 117,651 (2,036) 5.150 (104.9) March 113,939 (4,071) 5.198 (211.6) April 107,891 386 5.284 20.4 May 125,222 1,749 5.311 92.9 June 146,397 (3,577) 5.453 (195.0) July - - August - - September - - October - - November - - December - - Incremental weather related revenues 740,446 (8,265) ($434.6) Normalize -- To eliminate weather related sales $434.6 Rounded $435 Source: Reco 8B Reports by month - total KWh / 1000 Adjustment to remove Smart Grid - Surcharge from Revenues Month / Year January 2016 33 February 33 March 33 April 33 May 33 June 33 July August September October November December Eliminate Smart Grid Surcharge (198)

Exhibit P-2 Schedule 2 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (2) To Revenues and Expenses For the Twelve Months Ended December 31, 2016 Adjustment to Reflect Revenue Annualization for Additional Customers: Service Classification Residential Secondary (SC 1, 3, 5) (SC 2) Customers at December 31, 2016 64,449 8,636 Average Customers for Test Year 64,397 8,598 Increase in Number of Customers 52 38 Average Annual Usage per Customer 11,423 72,499 Additional Usage (kwh) 598,756 2,742,879 Average Delivery Rate $ 0.06493 $ 0.05044 Additional Revenue 38,877 138,351 $ 177,228 Annual Cost Per Customer Per ECOS Study $ 294.36 $ 666.84 Additional Customer Cost 15,429 25,229 40,658 Increase in Operating Income Before Income Tax $ 136,570 Rounded $ 137,000

Exhibit P-2 Schedule 3 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (3) To Other Operating Revenues For the Twelve Months Ended December 31, 2016 Adjustment to Other Operating Revenues to Reflect Three Year Average: Twelve months ending Rounded Account Description December-13 December-14 December-15 Average 451 Misc. Service Revenue $ (29,708) $ (20,990) $ (31,954) $ (28,000) 454 Electric Rents (168,256) (291,354) (380,692) (280,000) 456 Other Misc. Revenues 9,073,850 6,131,388 7,743,816 7,650,000 Total 8,875,885 5,819,044 7,331,170 7,342,000 Normalizing Adjustments 451 Misc. Service Revenue - - - 454 Electric Rents - - - 456 Other Operating Revenues - - - Eliminate Other True-up (1,804,730) 1,123,972 - Eliminate RGGI True-up (36,215) (86,637) (596,006) Eliminate TBC Revenue Adj. (7,370,123) (7,319,656) (7,294,412) Total (9,211,069) (6,282,322) (7,890,418) Adjusted 451 Misc. Service Revenue (29,708) (20,990) (31,954) (28,000) 454 Electric Rents (168,256) (291,354) (380,692) (280,000) 456 Other Misc. Revenues (137,219) (150,934) (146,602) (145,000) Total (335,183) (463,278) (559,249) (453,000) Flip sign to show the revenues as a positive number 453,000 Other Operating Revenues for the Twelve Months Ending December 31, 2016 440,000 Adjustment $13,000 Rounded 13,000

Exhibit P-2 Schedule 4 Page 1 of 2 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (4) To Distribution Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to O&M Expense to Reflect Increases in Wages and Salaries: Wage and Salary Increases: (a) Weekly Paid Employees Consolidated wage increase effective June 1, 2016 = $1,840,028 Portion applicable to RECO O&M Expense: $1,840,028 x 5 / 12 x 7.99% $61,258 (b) Weekly Paid Employees Consolidated wage increase effective June 1, 2017 = $2,116,178 Portion applicable to RECO O&M Expense: $2,116,178 x 12 / 12 x 7.99% $169,083 (c) Monthly Paid Employees Consolidated wage increase effective April 1, 2016 = $1,770,005 Portion applicable to RECO O&M Expense: $1,770,005 3 / 12 x 7.99% $35,356 (d) Monthly Paid Employees Consolidated wage increase effective April 1, 2017 $1,877,798 Portion applicable to RECO O&M Expense: $1,877,798 x 12 / 12 7.99% $150,036 Adjustment $415,733 Rounded ($000) $416

Exhibit P-2 Schedule 4 Page 2 of 2 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (4) To Distribution Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to O&M Expense to Reflect Increases in Wages and Salaries for Additional Employees: Wage and Salary Increase: (a) Weekly Paid Employees: Adjustment to reflect the cost of 3 additional weekly paid employees. The amounts indicated are the portion of the labor costs charged to RECO O&M expense. Additional Labor Costs charged to RECO O&M expense: January 2017 - September 2017 $63,443 (b) Monthly Paid Employees: Adjustment to reflect the cost of 9 additional monthly employees The amounts indicated are the portion of the labor costs charged to RECO O&M expense. Additional Labor Costs charged to RECO O&M expense: January 2017 - September 2017 $118,629 Adjustment $182,072 Rounded ($000's) $182

Exhibit P-2 Schedule 5 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (5) To Other Operation & Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment To Other Operation & Maintenance Expense To Reflect Increases in Employee Health and Benefit Insurance Costs: Increase in Employee Salaries & Wages $766,678 ( $1,840,028 x 5/12 ) Per Exh. P-2, Sch. 4, Page 1 $2,116,178 ( $2,116,178 ) " $442,501 ( $1,770,005 x 3/12 ) " $1,877,798 " $182,072 Per Exh. P-2, Sch. 4, Page 2 $5,385,227 Employee health and benefit insurance expense and 401K based on increase in employees: $5,385,227 x 0.2084 = $1,122,535 Portion of Employee Health and Benefit Expense applicable to RECO: $1,122,535 x 0.0799 = $89,691 Adjustment for Increase In Benefit Insurance Cost $89,691 Rounded $90,000

Exhibit P-2 Schedule 6 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (6) To Other Operation & Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment To Other Operations & Maintenance Expense To Reflect Increases In Employee Pension Costs: SFAS 87 Pension Expense (12 Months Ended 12/31/17) 7,787,800 Less: Capitalized / Recovered Pension Costs ( 25% ) (1,947,000) Pension Expense - 12 Months Ending 12/31/17 5,840,800 SFAS 87 Pension Expense (12 Months Ending 12/31/16) 7,629,741 Less: Capitalized / Recovered Pension Costs ( 25% ) (1,907,435) Pension Expense - 12 Months Ending 12/31/16 5,722,306 Adjustment for SFAS 87 Pension Cost 118,494 % Allocated To Distribution 90.08% Total Adjustment for SFAS 87 Pension Cost $ 106,740 Rounded $ 107,000

Exhibit P-2 Schedule 7 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (7) To Other Operation & Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment To Other Operations & Maintenance Expense To Reflect Increases In Post Retiree Expenses Other Than Pension Costs ("OPEBs"): SFAS 106 OPEB Expense (12 Months Ended 12/31/17) 355,000 Less: Capitalized / Recovered OPEB Costs ( 25% ) (89,000) OPEB Expense - 12 Months Ending 12/31/17 266,000 SFAS 106 OPEB Expense (12 Months Ending 12/31/16) (138,000) Less: Capitalized / Recovered OPEB Costs ( 25% ) 35,000 OPEB Expense - 12 Months Ending 12/31/16 (103,000) Adjustment for SFAS 87 OPEB Cost 369,000 % Allocated To Distribution (based on payroll) 90.08% Total Adjustment for SFAS 106 OPEB Costs $ 332,397 Rounded $ 332,000

ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (8) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Exhibit P-2 Schedule 8 Adjustment to Operation and Maintenance Expenses to Reflect Interest on Customer Deposits: Operation and Maintenance Expenses: Customer Deposit Monthly Average Balance (Exhibit P-3, Schedule 10) $ 5,056,000 x 2016 Customer Deposit Rate 0.11% Interest on Customer Deposits for the Twelve Months Ended December 31, 2016 $ 5,562 Rounded $ 6,000 Rounded ($000s) $ 6

Exhibit P-2 Schedule 9 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (9) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to Operation and Maintenance Expenses to Reflect Rate Case Cost Amortization: Operation and Maintenance Expenses: Estimated Rate Case Costs $600,000 Annual Amortization $600,000 / 3 $200,000 Less: January 2016 - December 2016 rate case expense - Total Adjustment for Rate Case Cost Expense $200,000 Rounded $200,000 Federal Income Taxes: Current F.I.T. - Addback Amortization $200,000 Deferred F.I.T. - Amortization of Deferred Tax ($70,000)

ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (10) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Exhibit P-2 Schedule 10 Adjustment to Eliminate Miscellaneous Expenses: Operation & Maintenance Expenses: EEI Lobbying Charges (2016 Billing) $ (5,771) Electric Distribution Allocation 90.08% Total $ (5,198) Rounded $ (5,200) Rounded ($000s) $ (5)

ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (11) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Exhibit P-2 Schedule 11 Adjustment to Operation and Maintenance Expenses to Reflect Actual Customer Uncollectible Write-Off Experience: Operation and Maintenance Expenses: Year Bad Debt Write-Offs Billed Revenues UB Percentage July 2011 - Dec 2011 $ 195,378 $ 113,374,015 0.172% 2012 260,524 190,577,744 0.137% 2013 237,011 183,571,054 0.129% 2014 212,961 179,078,714 0.119% 2015 432,822 194,130,345 0.223% Jan - Jun 2016 85,542 81,917,335 0.104% 5 Year Average $ 1,424,238 $ 942,649,207 0.151% x Adjusted Revenues Twelve Months Ended December 31, 2016 182,794,708 Average Customer Uncollectible Expenses 276,182 Customer Uncollectible Expense Twelve Months Ended December 31, 2016 261,169 Net Adjustment $ 15,013 Rounded $ 15,000 Rounded ($000s) $ 15

Exhibit P-2 Schedule 12 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (12) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to Operation and Maintenance Expenses to Reflect Distribution Operation Costs Operation and Maintenance Expenses: Cyber Security Requirements $ 25,000 IT Infrastructure Expansion 41,000 Digital Customer Experience 81,000 Conductor to Sky Overhead Removal Costs 390,000 No Fee Credit Card Program 35,500 Total $ 572,500 Rounded $573,000 Rounded ($000s) $573

Exhibit P-2 Schedule 13 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (13) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to Adjustment to Operation and Maintenance Expenses to Equalize ROE in JOA Agreement Joint Operating Agreement Rents Return on Customer & A&G @ Equity Distribution 89.94% Total 10.40% $ 47,122 $ 46,985 94,107 10.20% 31,716 31,624 63,340 9.75% (a) - - - 9.50% $ (18,124) (18,073) (36,197) (a) The return on equity embedded in JOA billings between RECO and O&R

Exhibit P-2 Schedule 14 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (14) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to Operation and Maintenance Expenses to Reflect Regulatory Deferrals in Rate Year Deferred Balances as of June 30, 2016 14775 Transformer installation $ 118,434 24478 Previously authorized amortizations - refunds (758,061) (a) 15245 Long-Term Capacity Agreement Pilot Program (LCAPP) 6,399 15209 Smart Grid 429,633 15171 Previously authorized rate case cost recovery 62,573 (b) Total Rate Case Cost to be Recovered (141,022) Add: July 2016 - January 2017 Amortization Expense Transformer installation (63,772) Previously authorized amortizations - refunds 408,187 Long-Term Capacity Agreement Pilot Program (LCAPP) (3,445) Smart Grid (231,341) Previously authorized rate case cost recovery (33,694) July 2016 - January 2017 amortization expense 75,935 Total Adjustment for Amortization Expense (65,087) Amortization over 3 years ($21,696) Rounded ($22,000) (a) includes various audit costs, propery taxes, pensions amd OPEBs (b) balance is net of $21,444 of costs related to this rate filing

Exhibit P-2 Schedule 15 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (15) To Operation and Maintenance Expenses For the Twelve Months Ended December 31, 2016 Adjustment to Operation and Maintenance Expenses to Reflect Elimination of Regulatory Deferrals in Test Year Operation and Maintenance Expenses: Annual Amounts Transformer installation (109,323.33) Previously authorized amortizations - refunds 699,748.33 Long-Term Capacity Agreement Pilot Program (LCAPP) (5,906.33) Smart Grid (396,584.33) Previously authorized rate case cost recovery (57,760.33) Total Adjustment for Expiring amortizations 130,174.00 Rounded $130,000 Federal Income Taxes: Current F.I.T. - Addback Amortization $130,000 Deferred F.I.T. - Amortization of Deferred Tax ($46,000)

Exhibit P-2 Schedule 16 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (16) To Depreciation Expense For the Twelve Months Ended December 31, 2016 Adjustment to Annualize Depreciation and Reflect Revised Depreciation Rates: Annualization of Book Depreciation at Current Rates Annualized Book Depreciation at Current Rates $8,417,615 Book Depreciation Included in the Test Year Ended December 31, 2016 8,132,175 Annualization Adjustment $285,440 Annualization of Book Depreciation at Proposed Rates Distribution Plant at December 31, 2016 (Per Exhibit P-3 Summary) $323,157,649 Composite Proposed Depreciation Rate (excludes Transmission) 2.014% Composite Existing Depreciation Rate (excludes Transmission) 1.933% Net Change resulting from proposed depreciation rates 0.081% Annualization Adjustment $261,229 Total $546,669 Rounded $547,000 Federal Income Taxes: Change in Schedule Tax Depreciation Deduction Flow Thru Tax Depreciation $547,000 Normalized Tax Depreciation ($1,094,000) Deferred F.I.T. - Tax Depreciation ($383,000)

Exhibit P-2 Schedule 17 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (17) To Depreciation Expense For the Twelve Months Ended December 31, 2016 Adjustment to Annualize Depreciation and Reflect Revised Depreciation Rates: Post Test Year Additions -- Book Depreciation at Current Rates Post Test Year Plant Additions (Per Exhibit P-3, Schedule 1) $8,395,745 Post Test Year Plant Retirements (Per Exhibit P-3, Schedule 1) 587,000 Net Change in Plant $7,808,745 Composite Existing Depreciation Rate (excludes Transmission) 1.933% Annualization Adjustment $150,941 Annualization of Book Depreciation at Proposed Rates Distribution Plant at December 31, 2016 (Per Exhibit P-3 Summary) $7,808,745 Composite Proposed Depreciation Rate (excludes Transmission) 2.014% Composite Existing Depreciation Rate (excludes Transmission) 1.933% Net Change resulting from proposed depreciation rates 0.081% Annualization Adjustment $6,312 Total $157,254 Rounded $157,000 Federal Income Taxes: Change in Schedule Tax Depreciation Deduction Flow Thru Tax Depreciation $157,000 Normalized Tax Depreciation ($314,000) Deferred F.I.T. - Tax Depreciation ($110,000)

Exhibit P-2 Schedule 18 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (18) To Depreciation Expense For the Twelve Months Ended December 31, 2016 Adjustment to Deprecation Expense For the Amortization of Negative Salvage Credits Deferred Net Salvage Balance @ June 30, 2016 RE - E- 399010 - UNALLOC RES VARIAT 381,112 RE - E- 399020 - UNALL RES NET SVG 371,945 RE - E- 399040 - UNALLO RES-NET SVG (53,223) RE - E- 399050 - UNALLO RES-NET SVG 219,154 RE - E- 399060 - UNALLO RES-NS 2013 1,030,054 Balance @ 6.30.2016 1,949,042 Amortization Expense from July 2016 thru January, 31, 2017 Annual July 2016 - Jan 2017 Amortization Amortization (7 Months) RE - E- 399010 - UNALLOC RES VARIAT (381,333) (222,444) RE - E- 399020 - UNALL RES NET SVG (343,333) (200,278) RE - E- 399040 - UNALLO RES-NET SVG 49,128 28,658 RE - E- 399050 - UNALLO RES-NET SVG - - RE - E- 399060 - UNALLO RES-NS 2013 (950,820) (554,645) Annual Amortization in Rates (1,626,358) Total Amortizations July 16 thru January 2017 (948,709) Total Deferred Unallocated Net Salvage Balance @ Jan 31, 2017 1,000,333 Annual amortization expense for remaining balance over 3 Years 333,444.39 Annual amortization included in base rates (Case ER13111135) (1,626,358) Total Depreciation Adjustment: (1,292,914) Rounded (1,292,900) Rounded ($000s) ($1,293)

Exhibit P-2 Schedule 19 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (19) To Depreciation Expense For the Twelve Months Ended December 31, 2016 Adjustment to update provision for salvage cost, based on a three year cumulative average of actual cost for the thirty three months ending December 31 2015. 3-Year Average Net Removal Costs (Per Exhibit P-6) 1,024,400 Less: Net Removal Costs Allowed (Case ER13111135) 820,800 Additional Net Removal Costs Allowed $203,600 Difference in Actual Spending versus Rate Allowance from August 2014 thru June 2016 Actual Net Salvage Charged 2,081,221 Rate Allowance ($820,800 /12) x 23 Months $1,573,200 Unrecovered Net Salvage 508,021 Difference Amortized over 3 Years $169,340 Total Additional Cost of Removal Requested $372,940 Rounded $373,000

Exhibit P-2 Schedule 20 ROCKLAND ELECTRIC COMPANY Statement in Support of Adjustment No. (20) To Taxes Other Than Income Taxes For the Twelve Months Ended December 31, 2016 Adjustment to Reflect Increases in Payroll Taxes: Payroll increase prior to allocation to electric operations: $766,678 ( $1,840,028 x 5/12 ) Per Exh. P-2, Sch. 4, Page 1 $2,116,178 ( $2,116,178 ) " $442,501 ( $1,770,005 x 3/12 ) " $1,877,798 ( $1,877,798 ) " $182,072 Per Exh. P-2, Sch. 4, Page 2 $5,385,227 Effective Payroll Tax Rate: 7.53% Payroll tax increase prior to allocation to electric operations: $5,385,227 x 0.0753 = $405,508 Portion of Payroll Taxes applicable to Operation and Maintenance Payroll $405,508 x 0.0799 = $32,400 Rounded $32,400

Exhibit P-2 Schedule 21 Page 1 of 2 ROCKLAND ELECTRIC COMPANY Calculation of State CBT For The Twelve Months Ending December 31, 2016 ($000s) Transmission & Electric Distribution Transmission Distribution 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12/31/2016 12/31/2016 12/31/2016 OPERATING INCOME BEFORE INCOME TAXES $11,628 ($4,014) $15,642 LESS: INTEREST EXPENSE 5,770 455 5,314 BOOK INCOME BEFORE INCOME TAXES 5,858 (4,470) 10,328 PERMANENT ITEMS: - - - TOTAL PERMANENT ITEMS - - - Temporary Items Materials and Supplies Deduction (149) (15) (134) AFUDC Borrowed Funds State (150) (15) (135) Hedging Realized and Deferred Loss - - - BGS / ECA Undercollection State (268) - (268) Supplemental Pension State 122 12 109 Smart Grid Maintenance Costs 396 40 356 Avoided Interest Capitalized State 297 30 268 OPEB Cost Retiree - Funding v. Expense - State (529) (53) (476) Pension Funding - State (2,218) (223) (1,995) Repair Allowance (5,864) (590) (5,274) Rate Case Cost (319) - (319) Reserve for Deferred Costs (2) - (2) Storm Damage Deferred On Books State 7,162-7,162 Revenue Subject to Refund - Transformers - - - Book Depreciation Normalized 9,150 1,018 8,132 Stock Plans 113 11 101 Tax Depreciation Deduction (12,193) (1,227) (10,966) Unallowable Book Pension Expense - State 1,974 199 1,775 CIAC State 118-118 CIAC Tax Gross Up 1-1 Cost of Removal Normalized State (1,375) (138) (1,237) Change of Accounting Section 263A State (1,758) (177) (1,581) Total for Temporary Items (5,493) (1,129) (4,364) Flow-thru Items Bad Debts State - Total for Flow-thru Items - - - Taxable Income or (Loss) 365 (5,598) 5,964 Current SIT @ 9% 33 (504) 537 Deferred SIT 494 102 393 Total SIT 527 (402) 929

Exhibit P-2 Schedule 21 Page 2 of 2 ROCKLAND ELECTRIC COMPANY Calculation of Electric Distribution - State CBT For The Twelve Months Ending December 31, 2016 ($000s) 12 Mos. Ended Distribution Adjustments 12 Mos. Ended 12/31/2016 12 Mos. Ended ----------------------------- 12/31/2016 Proposed As Adjusted For 12/31/2016 Reference Amount As Adjusted Rate Change Add'l Revenue...... OPERATING INCOME BEFORE INCOME TAXES $15,642 ($1,518) $14,125 $8,509 $22,634 LESS: INTEREST EXPENSE 5,314 (23) - 5,314-5,314 BOOK INCOME BEFORE INCOME TAXES 10,328 (1,518) 8,810 8,509 17,319 PERMANENT ITEMS: - - - TOTAL PERMANENT ITEMS - - - Temporary Items Materials and Supplies Deduction (134) (134) (134) AFUDC Borrowed Funds State (135) (135) (135) Hedging Realized and Deferred Loss - 0 0 BGS / ECA Undercollection State (268) (268) (268) Supplemental Pension State 109 109 109 Smart Grid Maintenance Costs 356 356 356 Avoided Interest Capitalized State 268 268 268 OPEB Cost Retiree - Funding v. Expense - State (476) (476) (476) Pension Funding - State (1,995) (1,995) (1,995) Repair Allowance (5,274) (5,274) (5,274) Rate Case Cost (319) (319) (319) Reserve for Deferred Costs (2) (2) (2) Storm Damage Deferred On Books State 7,162 7,162 7,162 Revenue Subject to Refund - Transformers - 0 0 Book Depreciation Normalized 8,132 (16-19) (216) 7,916 7,916 Stock Plans 101 101 101 Tax Depreciation Deduction (10,966) (10,966) (10,966) Unallowable Book Pension Expense - State 1,775 1,775 1,775 CIAC State 118 118 118 CIAC Tax Gross Up 1 1 1 Cost of Removal Normalized State (1,237) (1,237) (1,237) Change of Accounting Section 263A State (1,581) (1,581) (1,581) Total for Temporary Items (4,364) (4,364) (4,364) Flow-thru Items - - - Total for Flow-thru Items - - - Taxable Income or (Loss) 5,964 (1,518) 4,446 8,509 12,955 Current SIT @ 9% 537 (137) 400 766 1,166 Deferred SIT 393-393 - 393 Total SIT 929 (137) 793 766 1,559

Exhibit P-2 Schedule 22 Page 1 of 2 ROCKLAND ELECTRIC COMPANY Calculation of Federal Income Tax For The Twelve Months Ending December 31, 2016 ($000s) Transmission & Electric Distribution Transmission Distribution 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12/31/2016 12/31/2016 12/31/2016 OPERATING INCOME BEFORE INCOME TAXES $11,628 ($4,014) $15,642 INTEREST EXPENSE $5,770 $455 $5,314 BOOK INCOME BEFORE FIT 5,858 (4,470) 10,328 PERMANENT ITEMS: TOTAL PERMANENT ITEMS Temporary Items Materials and Supplies Deduction (149) (15) (134) DSM Program Fed (85) - (85) Hedging Realized and Deferred Loss - - - BGS / ECA Undercollection Fed (268) - (268) Supplemental Pension Fed 122 12 110 Smart Grid Maintenance Costs 396 39 357 OPEB Cost Retiree - Funding v. Expense - Fed (529) (52) (476) Pension Funding - Federal (2,225) (221) (2,004) Repair Allowance (5,864) (582) (5,283) Rate Case Cost (312) - (312) Reserve for Deferred Costs (2) - (2) Storm Damage Deferred On Books State 7,162-7,162 Stock Plans 113 11 101 Tax Depreciation - Norm. - ACRS (14,754) (1,464) (13,290) Unallowable Book Pension Expense - Fed 1,974 196 1,778 CIAC Fed 118-118 CIAC Tax Gross Up 1-1 Change of Accounting Section 263A Fed (1,758) (174) (1,584) Total for Temporary Items (16,060) (2,249) (13,811) Flow-thru Items AFUDC Borrowed Funds Fed (239) (24) (215) Avoided Interest Capitalized Fed 387 38 348 Book Depreciation Flow-Through 9,150 1,018 8,132 Tax Depreciation Deduction - Flow Through (7,707) (765) (6,943) Cost of Removal (1,375) (136) (1,239) Total for Flow-thru Items 215 131 84 Taxable Income Before Deductions (9,987) (6,588) (3,400) Less : State Tax Deduction 33 (504) 537 Taxable Income or (Loss) (10,020) (6,084) (3,936) Current FIT @ 35% (3,507) (2,129) (1,378) Deferred Federal Tax Expense-Plant 7,884 782 7,102 Deferred Federal Tax Expense-Non Plant (2,251) (171) (2,080) Total Deferred FIT 5,633 611 5,022 Investment tax credit - FERC 255 / Natural Acct 23010 (51) (5) (46) Total FIT $2,074 ($1,524) $3,598

Exhibit P-2 Schedule 22 Page 2 of 2 ROCKLAND ELECTRIC COMPANY Calculation of Electric Distribution Federal Income Tax ($000s) 12 Mos. Ended Distribution Adjustments 12 Mos. Ended 12/31/2016 12 Mos. Ended ----------------------------- 12/31/2016 Proposed As Adjusted For 12/31/2016 Reference Amount As Adjusted Rate Change Add'l Revenue (1) (2) (3) (4) = (1+3) (5) (6) OPERATING INCOME BEFORE INCOME TAXES $15,642 ($1,518) $14,125 $8,509 $22,634 INTEREST EXPENSE $5,314 (23) 50 5,364-5,364 BOOK INCOME BEFORE FIT 10,328 (1,568) 8,760 8,509 17,269 PERMANENT ITEMS: - - - - TOTAL PERMANENT ITEMS - - - - Temporary Items Materials and Supplies Deduction (134) - (134) (134) DSM Program Fed (85) - (85) (85) Hedging Realized and Deferred Loss - - - - BGS / ECA Undercollection Fed (268) - (268) (268) Supplemental Pension Fed 110-110 110 Smart Grid Maintenance Costs 357-357 357 OPEB Cost Retiree - Funding v. Expense - Fed (476) - (476) (476) Pension Funding - Federal (2,004) - (2,004) (2,004) Repair Allowance (5,283) - (5,283) (5,283) Rate Case Cost (312) - (312) (312) Reserve for Deferred Costs (2) - (2) (2) Storm Damage Deferred On Books State 7,162-7,162 7,162 Stock Plans 101-101 101 Tax Depreciation - Norm. - ACRS (13,290) - (13,290) (13,290) Unallowable Book Pension Expense - Fed 1,778-1,778 1,778 CIAC Fed 118-118 118 CIAC Tax Gross Up 1-1 1 Change of Accounting Section 263A Fed (1,584) - (1,584) (1,584) Total for Temporary Items (13,811) - (13,811) - (13,811) Flow-thru Items AFUDC Borrowed Funds Fed (215) - (215) (215) Avoided Interest Capitalized Fed 348-348 348 Book Depreciation Flow-Through 8,132 (16-19) (216) 7,916 7,916 Tax Depreciation Deduction - Flow Through (6,943) 184 (6,758) (6,758) Cost of Removal (1,239) - (1,239) (1,239) Total for Flow-thru Items 84 (32) 52-52 Taxable Income Before Deductions (3,400) (1,599) (4,999) 8,509 3,510 Less : State Tax Deduction 537-537 766 1,303 Taxable Income or (Loss) (3,936) (1,599) (5,536) 7,743 2,208 Current FIT @ 35% (1,378) (560) (1,937) 2,710 773 Deferred Federal Tax Expense-Plant 7,102-7,102-7,102 Deferred Federal Tax Expense-Non Plant (2,080) - (2,080) - (2,080) Total Deferred FIT 5,022-5,022-5,022 Investment tax credit - FERC 255 / Natural Acct 23010 (46) - (46) - (46) Total FIT $3,598 ($560) $3,038 $2,710 $5,748

Exhibit P-2 Schedule 23 ROCKLAND ELECTRIC COMPANY CALCULATION OF INTEREST SYNCHRONIZATION FOR THE TWELVE MONTHS ENDING DECEMBER 31, 2016 ($ 000s) Transmission & Electric 12 Mos. Ended Distribution Transmission Distribution 12 Mos. Ended 12/31/2016 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12/31/2016 Proposed As Adjusted For INTEREST SYNCHRONIZATION 12/31/2016 12/31/2016 12/31/2016 Adjustment As Adjusted Rate Change Add'l Revenue RATE BASE $211,349 $16,681 $194,668 $1,830 $196,498 $196,498 TOTAL WEIGHTED AVG COST OF DEBT 2.73% 2.73% 2.73% 2.73% 2.73% 2.73% 2.73% INTEREST SYNCHRONIZATION LEVEL $5,770 $455 $5,314 $50 $5,364 $0 $5,364

ROCKLAND ELECTRIC COMPANY EXHIBIT P-3 INDEX OF SCHEDULES ELECTRIC RATE BASE WITH SUPPORTING SCHEDULES Schedule Title of Schedules Witness Summary Electric Rate Base Accounting Panel 1 Electric Plant in Service " 2 Electric Plant Held for Future Use " 3 Non-Interest Bearing Construction Work in Progress " 4 Accumulated Provision for Depreciation of " Electric Plant in Service 5 Accumulated Provision for Depreciation of " Electric Plant Held for Future Use 6 Working Capital Requirements " 7 Deferred Regulatory Assets/Liabilities " 8 Net Pension/OPEBs " 9 Storm Reserve 10 Customer Deposits " 10 Customer Advances for Construction 11 Accumulated Deferred Income Taxes " 12 Major Plant Additions Electric Infrastructure Panel 13 Consolidated Tax Adjustment Accounting Panel

ROCKLAND ELECTRIC COMPANY EXHIBIT P-3 ELECTRIC RATE BASE SUMMARY AT DECEMBER 31, 2016 ($ 000s) Actual Less: Distribution Balance at Transmission Balance at As Schedule 12/31/16 12/31/16 12/31/16 Adjustments Adjusted No. UTILITY PLANT Electric Plant in Service $ 355,719 $ 32,561 $ 323,158 $ 7,809 $ 330,966 1 Electric Plant Held for Future Use 209-209 - 209 2 Construction Work in Progress Not Taking Interest 3,396 337 3,059-3,059 3 TOTAL UTILITY PLANT 359,323 32,898 326,425 7,809 334,234 UTILITY PLANT RESERVES Accum. Provision for Depreciation of Electric Plant in Service (84,582) (9,096) (75,486) (3,387) (78,873) 4 Accum. Provision for Depreciation of Electric Plant Held for Future Use - - - - - 5 TOTAL UTILITY PLANT RESERVES (84,582) (9,096) (75,486) (3,387) (78,873) NET PLANT 274,741 23,802 250,939 4,422 255,361 ADDITIONS TO NET PLANT Working Capital Requirements 14,270 409 13,861-13,861 6 Deferred Regulatory Balances 4,993-4,993-4,993 7 TOTAL ADDITIONS TO NET PLANT 19,264 409 18,855-18,855 DEDUCTIONS FROM NET PLANT Net Pension/OPEB Liability - - - - - 8 Storm Reserve 1,072-1,072-1,072 9 Customer Deposits 5,056-5,056-5,056 10 Customer Advances for Construction 611-611 - 611 10 Accum. Deferred Federal Income Tax 72,153 7,157 64,996 2,592 67,588 11 Consolidated Tax Adjustment 3,764 373 3,391-3,391 13 TOTAL DEDUCTIONS FROM NET PLANT 82,656 7,530 75,126 2,592 77,718 ELECTRIC RATE BASE $ 211,349 $ 16,681 $ 194,668 $ 1,830 $ 196,498

ROCKLAND ELECTRIC COMPANY Exhibit P-3 ELECTRIC PLANT IN SERVICE Schedule 1 AT DECEMBER 31, 2016 Workpaper ($ 000s) Total T&D Transmission Distribution Beginning Balance at June 30, 2016 (Actual) Direct $ 314,703 $ 31,217 $ 283,486 General Plant (Allocated) 8,161 809 7,351 Beginning Balance at June 30, 2016 (Actual) 322,864 32,027 290,837 Additions Direct 30,214 420 29,794 Summit Avenue Transferred from Future Use 2,054-2,054 General Plant (Allocated) 1,246 124 1,123 Total Additions 33,515 544 32,971 Retirements Direct 590 3 587 General Plant (Allocated) 69 7 62 Total Retirements 660 10 650 Ending Balance at December 31, 2016 $ 355,719 $ 32,561 $ 323,158 Post Test Year Adjustments Additions Direct 7,681 205 7,476 General Plant (Allocated) 1,021 101 920 Total Additions 8,702 307 8,396 Retirements Direct 590 3 587 General Plant (Allocated) 0 0 - Total Retirements 590 3 587 Total Adjustments 8,112 303 7,809 Total As Adjusted $ 363,830 $ 32,864 $ 330,966

ROCKLAND ELECTRIC COMPANY ELECTRIC PLANT HELD FOR FUTURE USE AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 2 Total T&D Transmission Distribution Beginning Balance at June 30, 2016 (Actual) $ 2,263 $ - $ 2,263 Adjustment for Summit Avenue (2,054) - (2,054) Ending Balance at December 31, 2016 $ 209 $ - $ 209

ROCKLAND ELECTRIC COMPANY NON-INTEREST BEARING CONSTRUCTION WORK IN PROGRESS AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 3 Month Amount Jan-16 Actual $ 1,700 Feb-16 Actual 1,290 Mar-16 Actual 2,117 Apr-16 Forecast 1,392 May-16 Forecast 2,386 Jun-16 Forecast 3,269 Jul-16 Forecast 3,565 Aug-16 Forecast 4,903 Sep-16 Forecast 6,642 Oct-16 Forecast 5,787 Nov-16 Forecast 6,949 Dec-16 Forecast 748 Twelve Month Total $ 40,748 Monthly Average $ 3,396 Ratio of Distribution Plant to total T&D Plant 90.08% Distribution Balance $ 3,059

ROCKLAND ELECTRIC COMPANY ACCUMULATED PROVISION FOR DEPRECIATION ELECTRIC PLANT AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 4 Total T&D Transmission Distribution Beginning Balance at June 30, 2016 (Actual) $ (80,715) $ (8,590) $ (72,125) Distribution Plant Allocation for Depreciation 89.36% Additions Direct (3,038) (358) (2,680) General Plant (Allocated) (1,489) (158) (1,331) Total Additions (4,527) (516) (4,011) Retirements Direct (590) (3) (587) General Plant (Allocated) (70) (7) (63) Total Retirements (660) (10) (650) Ending Balance at December 31, 2016 $ (84,582) $ (9,096) $ (75,486) Post Test Year Adjustments Additions Direct (3,306) (361) (2,945) General Plant (Allocated) (1,152) (123) (1,029) Total Additions (4,458) (484) (3,974) Retirements Direct (590) (3) (587) General Plant (Allocated) - - - Total Retirements (590) (3) (587) Total Adjustments (3,868) (481) (3,387) Total As Adjusted $ (88,450) $ (9,577) $ (78,873)

ROCKLAND ELECTRIC COMPANY ACCUMULATED PROVISION FOR DEPRECIATION ELECTRIC PLANT HELD FOR FUTURE USE AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 5 Total T&D Transmission Distribution Beginning Balance at June 30, 2016 (Actual) $ - $ - $ - Adjustments - - - Ending Balance at December 31, 2016 $ - $ - $ -

ROCKLAND ELECTRIC COMPANY ELECTRIC WORKING CAPITAL REQUIREMENTS AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 6 PAGE 1 OF 4 T&D Transmission Distribution Description Total Allocation Allocation Net Cash Working Capital $ 9,818 $ 113 $ 9,705 Prepayments 1,579 11 1,568 Materials and Supplies 2,873 285 2,588 Total $ 14,270 $ 409 $ 13,861

ROCKLAND ELECTRIC COMPANY SUMMARY OF CASH WORKING CAPITAL ALLOWANCE REQUIRED FOR COST OF SERVICE TWELVE MONTHS ENDED DECEMBER 31, 2016 Exhibit P-3 Schedule 6 Page 2 of 4 T&D Distribution T&D Distribution (Lead) / Dollar Dollar Reference Amount Amount Lag Days Days Days Revenue Recovery Sch. 1 $ 182,821,000 $ 169,670,474 39.2 $ 7,164,173,061 $ 6,648,845,791 Sales tax Sch. 1 10,969,260 10,180,228 39.2 429,850,384 398,930,747 193,790,260 179,850,702 7,594,023,445 7,047,776,538 Purchased Power Expenses: BGS Sch. 2 81,986,153 81,986,153 35.0 2,872,931,447 2,872,931,447 O&R Sch. 2 18,289,515 6,257,470 45.0 823,028,168 281,586,152 Deferred Purchased Power Expense Sch. 8 (267,986) (267,986) - - - Salaries & Wages Sch. 3 10,790,498 9,784,348 8.1 87,197,329 79,066,693 Pensions Sch. 4 5,840,800 5,261,417 - - - OPEBs Sch. 5 266,000 239,614 79.5 21,147,000 19,049,308 Employee Welfare Expenses Sch. 6 2,753,153 2,480,040 2.6 7,187,824 6,474,792 Joint Operating Expense Sch. 2 5,913,036 4,817,143 45.0 266,086,620 216,771,457 Uncollectible Accounts Accrual Sch. 7 276,182 276,182 39.2 10,822,710 10,822,710 Material & Supplies issues Sch. 8 144,502 125,367 - - - Other O&M Sch. 9 27,333,253 27,750,453 23.5 642,578,698 652,386,694 Amortizations: Sch. 8 Storm Reserve 6,413,091 6,413,091 - - - Rate Case Costs 200,000 200,000 - - - BPU Assessment 438,372 438,372 - - - Regulatory Deferrals (22,000) (22,000) - - - Depreciation & Amortization Sch. 8 8,897,870 7,916,275 - - - Taxes Other Than Income Taxes Sch. 10 1,940,788 1,889,981 (1.2) (2,268,163) (2,208,785) New Jersey Sales Tax (UTUA) Sch. 11 10,969,260 10,180,228 (51.3) (562,174,575) (521,736,706) Income Taxes: Federal Income Tax Sch. 12 (3,507,125) (1,937,489) 37.5 (131,517,183) (72,655,824) Deferred Federal Income Tax Sch. 8 5,632,647 5,021,760 - - - Investment Tax Credit Sch. 8 (51,348) (46,254) - - - Corporate Business Tax (State) Sch. 13 527,215 792,909 (46.8) (24,647,286) (37,068,491) Return on Invested Capital Sch. 8 9,026,384 10,293,626 - - - Total Requirement $ 193,790,260 $ 179,850,702 19.5 4,010,372,589 3,505,419,448 $ - $ - Net Lag 19.7 $ 3,583,650,856 $ 3,542,357,091 Net Requirement (Net Lag / 365 ) $ 9,818,222 $ 9,705,088

EXHIBIT P-3 SCHEDULE 6 PAGE 3 OF 4 ROCKLAND ELECTRIC COMPANY ELECTRIC WORKING CAPITAL REQUIREMENTS PREPAYMENTS AT DECEMBER 31, 2016 ($ 000s) Local Property State Sales BPU Month Taxes Taxes Assessment Total Jan-16 (Actual) 159 (1,039) (41) $ (921) Feb-16 (Actual) 106 (947) (73) (914) Mar-16 (Actual) 54 (923) 329 (540) Apr-16 (Actual) 158 (829) 292 (379) May-16 (Actual) 105 5,355 256 5,716 Jun-16 (Actual) 53 5,025 219 5,296 Jul-16 Forecast 62 4,802 204 5,068 Aug-16 Forecast 106 3,250 163 3,519 Sep-16 Forecast 54 1,796 123 1,973 Oct-16 Forecast 160 776 82 1,017 Nov-16 Forecast 108 (147) 41 2 Dec-16 Forecast 55 (950) 0 (895) Twelve Month Total $ 1,179 $ 16,169 $ 1,595 $ 18,943 Monthly Average $ 98 $ 1,347 $ 133 $ 1,579 Ratio of distribution plant to total T&D plant 90.08% N/A N/A Distribution Balance $ 88 $ 1,347 $ 133 $ 1,568

ROCKLAND ELECTRIC COMPANY ELECTRIC WORKING CAPITAL REQUIREMENTS MATERIALS AND SUPPLIES AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 6 PAGE 4 OF 4 Month Total Jan-16 (Actual) $ 2,723 Feb-16 (Actual) 2,728 Mar-16 (Actual) 2,778 Apr-16 (Actual) 2,836 May-16 (Actual) 2,864 Jun-16 (Actual) 2,826 Jul-16 Forecast 3,020 Aug-16 Forecast 3,018 Sep-16 Forecast 3,001 Oct-16 Forecast 2,961 Nov-16 Forecast 2,955 Dec-16 Forecast 2,766 Twelve Month Total $ 34,476 Monthly Average $ 2,873 Ratio of distribution plant to total T&D plant 90.08% Distribution Balance $ 2,588

ROCKLAND ELECTRIC COMPANY DEFERRED REGULATORY BALANCES AT DECEMBER 31, 2016 ($ 000s) Long-Term Previously Refund Previously Capacity Agreement Smart Authorized Transformer Authorized Pilot Program Grid Rate Case Recovery of Installation Amortizations/Refunds (LCAPP) Undercollection Cost Recovery Storm Costs Deferred Regulatory Balances 14775 24478 15245 15209 15171 15186 Total Beginning Balance at June 30, 2016 (Actual) $ 118 $ (758) $ 6 $ 430 $ 63 $ 11,725 $ 11,584 Plus: Spending Thru December 2016 - - - - - - $ - Less: Amort. July 2016 Thru December 2016 (55) 350 (3) (198) (29) (3,207) $ (3,141) Ending Balance at December 31, 2016 64 (408) 3 231 34 8,518 $ 8,442 Less Deferred Taxes @ 40.85% (26) 167 (1) (95) (14) (3,480) $ (3,449) Ending Balance at December 31, 2016 $ 38 $ (241) $ 2 $ 136 $ 20 $ 5,038 $ 4,993 Effective tax rate 40.85% EXHIBIT P-3 SCHEDULE 7

ROCKLAND ELECTRIC COMPANY NET PENSION/OPEB ACCRUED LIABILITY TWELVE MONTHS ENDING DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 8 June 30, 2016 - December 31, 2016 OPEB Accrued Liability: Balance at June 30, 2016 $ - There is no balance on RECO's books. Add: July 2016 - December 2016 FAS 106 Expense Current Accruals 106 Pay-As-You-Go - Amounts Funded (106) Subtotal - Balance at December 31, 2016 $ - Pension Deferral/Liability: Balance at June 30, 2016 $ - Add: July 2016 - December 2016 FAS 106 Expense Current Accruals (5,410) Amounts Funded 5,410 Subtotal - Balance at December 31, 2016 $ - Net Pension/OPEB Liability Before Income Tax $ - Less Federal & State Income Tax @ 40.85% - Net Pension/OPEB Liability - Deduction $ - Portion Applicable to Delivery Service 90.08% Net Pension / OPEB Liability -

ROCKLAND ELECTRIC COMPANY STORM RESERVE AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 9 Storm Reserve (Acct 21947) Beginning Balance at June 30, 2016 (Actual) $ (1,438) Accruals (July - Dec 2016) (375) Projected Storm Charges (July - Dec 2016) - Ending Balance at December 31, 2016 $ (1,813) Less Deferred Taxes (40.85%) 740 Net Storm Reserve $ (1,072)

ROCKLAND ELECTRIC COMPANY CUSTOMER ADVANCES FOR CONSTRUCTION AND CUSTOMER DEPOSITS EXHIBIT P-3 SCHEDULE 10 Workpaper ($ 000s) Customer Advances For Customer Month Construction (1) Deposits (2) Jan-16 (Actual) 626 5,096 Feb-16 (Actual) 644 5,161 Mar-16 (Actual) 610 5,706 Apr-16 (Actual) 610 5,843 May-16 (Actual) 610 5,993 Jun-16 (Actual) 582 5,891 Jul-16 Forecast 543 4,145 Aug-16 Forecast 602 4,189 Sep-16 Forecast 602 4,231 Oct-16 Forecast 633 4,395 Nov-16 Forecast 633 5,075 Dec-16 Forecast 633 4,943 Twelve Month Total $ 7,328 $ 60,667 Monthly Average $ 611 $ 5,056

ROCKLAND ELECTRIC COMPANY ACCUMULATED DEFERRED INCOME TAXES AT DECEMBER 31, 2016 ($ 000s) EXHIBIT P-3 SCHEDULE 11 Beginning Balance as of Jan 1, 2016 Transmission Distribution Allocation Allocation Total T&D 9.92% 90.08% Statutory Tax Depreciation $ 32,432 $ 3,217 $ 29,215 Section 263A Deduction for Capitalized Overheads 15,818 1,569 14,249 Materials and Supplies 271 27 244 Contribution in Aid of Construction (1,010) (100) (910) AFUDC 156 15 141 Cost of Removal 2,802 278 2,524 OPEB Capitalized 19 2 17 Repair Allowance 12,668 1,257 11,411 Total 63,157 6,265 56,892 Additions / Amortizations (2016) Statutory Tax Depreciation $ 4,216 418 3,798 Section 263A Deduction for Capitalized Overheads 78 8 70 Materials and Supplies (9) (1) (8) Contribution in Aid of Construction 132 13 119 AFUDC (8) (1) (7) Cost of Removal 70 7 63 OPEB Capitalized (1) - (1) Repair Allowance 4,517 448 4,069 Total 8,995 892 8,103 Ending Balance at December 31, 2016 $ 72,153 $ 7,157 $ 64,996 Post Test Year Adjustments (Jan - June 2017) Statutory Tax Depreciation $ 1,474 146 1,328 Section 263A Deduction for Capitalized Overheads 116 12 104 Materials and Supplies (3) - (3) Contribution in Aid of Construction 61 6 55 AFUDC (3) - (3) Cost of Removal (33) (3) (30) OPEB Capitalized (0) - (0) Repair Allowance 1,267 126 1,141 Total 2,879 287 2,592 Total As Adjusted $ 75,032 $ 7,444 $ 67,588 63,157 8,995 2,879