STATE OF NEW JERSEY

BOARD OF PUBLIC UTILITIES

Rockland Electric Company Docket No.

Exhibits

Volume I

ROCKLAND ELECTRIC COMPANY

EXHIBITS

VOLUME I

Tab No.

Exhibit No.

Subject

1

Verified Petition

2

Petition Exhibits

3

P-1

Historical Financial Statements

4

P-2

Electric Cost of Service

5

P-3

Electric Rate Base

6

P-4

Capitalization and Cost of Capital

7

P-5

Rate Designs

8

P-6

AMI Quarterly Metric Report

STATE OF NEW JERSEY

BOARD OF PUBLIC UTILITIES

I/M/O the Verified Petition of

Rockland Electric Company for Approval of

Changes in Electric Rates, Its Tariff for Electric Service, and Its

Depreciation Rates; and for Other Relief

VERIFIED PETITION

May 3, 2019

STATE OF NEW JERSEY

BOARD OF PUBLIC UTILITIES

I/M/O THE VERIFIED PETITION OF

)

ROCKLAND ELECTRIC COMPANY FOR

)

APPROVAL OF CHANGES IN ELECTRIC

)

VERIFIED PETITION

RATES, ITS TARIFF FOR ELECTRIC SERVICE, )

AND ITS DEPRECIATION RATES;

)

AND FOR OTHER RELIEF

)

Rockland Electric Company ("RECO," the "Company," or "Petitioner") a corporation of the State of New Jersey, which is subject to the jurisdiction of the Board of Public Utilities ("Board") and which has its principal offices at One Lethbridge Plaza, Suite 32 - Second Floor, Route 17 North, Mahwah, New Jersey 07430, respectfully petitions the Board as follows:

1.Petitioner is engaged in the retail distribution of electric energy and the provision of electric Basic Generation Service for residential, commercial and industrial purposes within the State of New Jersey. The Board has jurisdiction over Petitioner's electric distribution rates pursuant to and accordance withN.J.S.A48:2-2-1et. seq. Petitioner provides electric distribution service to approximately 73,000 customers in an area which extends from eastern Bergen County at the Hudson River to western Passaic County and small communities in Sussex County, New Jersey.

2.The rates and charges for electric service furnished by Petitioner and the conditions upon which the same are furnished are set forth in Petitioner's tariff designated B.P.U. No. 3 - Electricity.

3.Petitioner's current electric distribution rates are not just and reasonable because they do not produce an adequate, reasonable return on the Company's invested

1

capital that is dedicated to the service of the Company's electric distribution customers and do not provide sufficient revenues to recover the Company's investment in rate base, operating expenses, financing costs and taxes. In Petitioner's last electric base rate case (i.e., Docket No. ER16050428), as decided by the Board's Order Approving Stipulation dated February 22, 2017 ("2017 RECO Base Rate Order"), the Board increased Petitioner's electric base distribution rates by $1.7 million, or 0.7 percent. Since the Board's adjustment of rates over two years ago in the 2017 RECO Base Rate Order, Petitioner has continued to invest in its electric distribution system so as to provide for safe, adequate and proper electric service to the Company's electric customers, and Petitioner requires additional revenues to recover the costs of such investments. Among other investments, the Company has implemented the Advanced Metering Infrastructure ("AMI") Program approved by the Board in its Decision and Order, dated August 23, 2017, in BPU Docket No. ER16060524 ("AMI Order"). Petitioner's current rates do not provide for any recovery of or a return on these AMI investments. Petitioner is also seeking recovery for significant incurred and deferred costs relating to winter storms Riley and Quinn that struck RECO's service territory in March 2018. Petitioner faces increased taxes, rising interest rates that have increased its financing costs, inflationary pressures that have increased the cost of labor and materials, additional vegetation management (i.e., tree trimming) expenses, and decreasing sales revenues as a result of customers implementing energy efficiency and conservation strategies to lower their average electric energy consumption. While the Company has experienced the above- described rising costs and lower sales since its last base rate case, during the same period

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Con Edison Inc. published this content on 03 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 May 2019 20:52:08 UTC