ConEdison : 2019 RECO Electric Rate Case Testimony – Volume I – May 3, 2019

STATE OF NEW JERSEY

BOARD OF PUBLIC UTILITIES

Rockland Electric Company Docket No.

Direct Testimony

Volume I

ROCKLAND ELECTRIC COMPANY

TESTIMONY

TAB NO.	NAME
1	Accounting Panel
2	Depreciation Panel
3	Capital Budget and Plant Addition Panel
4	Electric Rate Panel
5	Income Tax Panel
6	Keith C. Scerbo
7	James H. Vander Weide
8	Yukari Saegusa

ROCKLAND ELECTRIC COMPANY

DIRECT TESTIMONY OF

ACCOUNTING PANEL

NJBPU Docket No. _____________

1Q. Would each member of the Accounting Panel ("Panel") please state his name

2and business address.

3A. John de la Bastide, One Blue Hill Plaza, Pearl River, New York 10965.

4Kyle Ryan, 4 Irving Place, New York, NY 10003.

5Wenqi Wang, 4 Irving Place, New York, NY 10003.

6Q. By whom are you employed and in what capacity?

7A. (de la Bastide) I am employed by Orange and Rockland Utilities, Inc. ("Orange

8and Rockland" or "O&R"), the parent company of Rockland Electric Company

9("RECO" or the "Company"), where I hold the position of Director - Financial

10Services.

11(Ryan) I am employed by Consolidated Edison Company of New York, Inc.

12("Con Edison" or "CECONY"), a utility affiliate of O&R and RECO, where I hold

13the position of Department Manager of Regulatory Filings.

14(Wang) I am employed by CECONY, where I hold the position of Department

15Manager of Regulatory Accounting and Revenue Requirements.

16Q. Please briefly outline your educational and business experience.

17A. (de la Bastide) I graduated from Hofstra University in 1985 with a Bachelor of

18Business Administration in Accounting. I was employed by Con Edison for 30

19years. Between 1986 and 1996, I was promoted to various supervisory

20positions in Corporate Accounting. In 1998, I was promoted to the position of

21Section Manager, Employee Benefits. In 2001, I was promoted to Department

22Manager, Financial Forecasting, in Corporate Accounting and have held

23various positions as Department Manager in Corporate Accounting and

24Electric Operations. I became Department Manager, Benefits and

ACCOUNTING PANEL

1Compensation, in March 2007. In June 2011, I was promoted to Director of

2Compensation. In November 2016, I became an employee of Orange and

3Rockland and assumed the role of Director of Financial Services. I have

4submitted testimony before the New Jersey Board of Public Utilities ("Board"

5or "BPU") and the New York Public Service Commission ("NYPSC").

6(Ryan) I graduated from the University ofWisconsin-Madison in 2006 after

7earning a Bachelor of Business Administration in Accounting and a Masters of

8Accountancy. I began my employment with Con Edison in 2012 as a Senior

9Accountant in the Accounting Research and Procedures section and was

10promoted to Department Manager of the section in 2014. I assumed my

11current position as Department Manager of Regulatory Filings in June 2017.

12Prior to joining Con Edison, I worked for Ernst & Young in Minneapolis,

13Minnesota from 2006 to 2012, ultimately reaching the position of Audit

14Manager. I am a licensed CPA in New York and Minnesota.

15(Wang) In June 1999, I received a Bachelor of Science Degree in Accounting

16from the University at Albany, State University of New York. I began my

17employment with Con Edison in July 1999 as a Management Intern. I worked

18in the Corporate Accounting Department from July 2000 until April 2014

19primarily in the General Accounts section starting as a Staff Accountant, then

20as Supervisor and ultimately reaching the Department Manager level. In May

212014, I assumed my current position as Department Manager of Regulatory

22Accounting and Revenue Requirements.

23Q. Have you previously submitted testimony before the Board?

24A. (de la Bastide) Yes, I submitted testimony on behalf of the Company as part of

25the Accounting and Rate Panel in RECO's Storm Hardening Proceeding, BPU

26Docket No. ER14030250, RECO's Storm Hardening Base Rate Adjustment

2

ACCOUNTING PANEL

1Proceeding, BPU Docket No. ER18101114, and RECO's Low Income Audit

2and RECO's Low Income Audit and Direct Install Energy Efficiency III

3Program, BPU Docket No. ER17080869.

4(Ryan) No.

5(Wang) I submitted testimony in RECO's last base rate proceeding, BPU

6Docket No. ER16050428.

7Q. What is the purpose of your direct testimony in this proceeding?

8A. Our direct testimony first provides background information on RECO and an

9overview of the Company's base rate case filing. We then address the

10following exhibits, all of which were prepared under the Panel's supervision

11and direction:

12P-1Historical Financial Statements;

13P-2Electric Cost of Service; and

14P-3Electric Rate Base.

15We also discuss the storm hardening related upgrade projects that we

16propose for finalization of base rate recovery in this proceeding. Finally, we

17will discuss one modification to the current provisions governing the

18Company's deferral of major storm costs and RECO's proposal for"No-Fee"

19Debit/Credit Card Transactions.

20Q. Are you familiar with RECO's books and records, including the Board-

21approved Joint Operating Agreement ("JOA") between O&R and RECO?

22A. Yes. We are familiar with RECO's books and records, including the JOA,

23which has been approved by the Board. Pursuant to the JOA, certain costs,

24including but not limited to salary and payroll taxes, are allocated from O&R to

25RECO.

26BACKGROUND

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