PSC draft order

CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 STATEOFNEWYORK PUBLI CSERVI CECOMMI SSI ON At asessi onof t hePubl i cSer vi ce Commi ssi onhel di nt heCi t yof COMMI SSI ONERSPRESENT: CASE14- E- 0270- Pet i t i onRequest i ngI ni t i at i onof aPr oceedi ng t oExami neaPr oposal f or Cont i nuedOper at i onoft heR. E. Gi nnaNucl ear Power Pl ant , LLC. ORDERAPPROVI NGESTABLI SHMENTOFTEMPORARYRATES ( I ssuedandEf f ect i ve) BYTHECOMMI SSI ON:I NTRODUCTI ON Thi sor der appr ovest heest abl i shment of at empor ar y r at esur char gef or Rochest er GasandEl ect r i cCor por at i on( RG&E or t heCompany) f or col l ect i onof r evenues, subj ect t or ef und,t oof f set t hepot ent i al cost sof aRel i abi l i t ySuppor t Ser vi ces Agr eement ( RSSAor Agr eement ) bet weenRG&EandR. E. Gi nna Nucl ear Power Pl ant , LLC( Gi nna) , i f t heRSSAi sul t i mat el y appr ovedbyt heCommi ssi on. I nl i ght of t hepot ent i al r at e i mpact st heAgr eement maycause, t hepubl i ci nt er est r equi r esa t empor ar yr at ef or t hi spur pose, pendi ngt heCommi ssi on sf i naldet er mi nat i onont hepet i t i onf i l edbyRG&Ei nt hi scaseon CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 2-Febr uar y13, 2015seeki ngappr oval of t heRSSAwi t hr el at edcostr ecover y( RSSAPet i t i on) .PROCEDURALBACKGROUND I nt heOr der Di r ect i ngNegot i at i onof aRel i abi l i t y Suppor t Ser vi ceAgr eement andMaki ngRel at edFi ndi ngsi ssued November 14, 2014( November Or der ) , t heCommi ssi ondet er mi ned t hat t hecont i nuedoper at i onof t heR. E. Gi nnaNucl ear PowerPl ant wasnecessar yt opr eser vet her el i abi l i t yof t heNewYor k bul kel ect r i ct r ansmi ssi onsyst emandt hel ocal Rochest erel ect r i cdi st r i but i onsyst em.1TheCommi ssi oni nst r uct edGi nna t hat i t maynot ceaseoper at i onswi t hout t heCommi ssi on' s wr i t t enper mi ssi on2anddi r ect edRG&Et onegot i at eanRSSAwi t h Gi nna.3 OnFebr uar y13, 2015, RG&Ef i l edt heRSSAPet i t i on,accompani edbyaf ul l yexecut edRSSA, r equest i ngt heCommi ssi on accept t heRSSAwi t hout modi f i cat i on. RG&Easkedt oi mpl ement a sur char gemechani smt or ecover f r omi t sr at epayer sal l amount s payabl et oGi nnaunder t heAgr eement . TheCompanyadvi sedt hatt hepr oposedsur char geconst i t ut edamaj or r at echangef or whi ch anevi dent i ar yhear i ngwasr equi r ed. Subsequent t ot hef i l i ng of t heRSSAPet i t i on, pr ocesseswer eest abl i shedbyt he pr esi di ngadmi ni st r at i vel awj udgest ocommencer evi ewof t he RSSAanddevel opar ecor dt oi nf or mt heCommi ssi on' sdeci si on maki ng.OnJ une4, 2015, RG&Ef i l edapet i t i onaski ngt he Commi ssi ont oest abl i shat empor ar yr at esur char get hat woul d 1Case14- E- 0270, Or der Di r ect i ngNegot i at i onof aRel i abi l i t y Suppor t Ser vi ceAgr eement andMaki ngRel at edFi ndi ngs( i ssued November 14, 2014) , pp. 15- 16.2November Or der , p. 22.3November Or der , p. 27.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 3-begi nr ecover yof t hecost sof t heRSSA, subj ect t or ef und,pendi ngaf i nal Commi ssi ondeci si onont heRSSAPet i t i on( t he Tempor ar ySur char gePet i t i on) . TheCompanyr equest st hat r at es bei mpl ement edonAugust 1, 2015andasser t ssuchsur char ge shoul dbeadopt edonanemer gencybasi spur suant t oSAPA 202( 6) .4 Anevi dent i ar yhear i ngont heTempor ar ySur char ge Pet i t i onwashel donJ ul y2, 2015, at whi chal l par t i eswer e af f or dedt heoppor t uni t yt ocal l wi t nessesandcr oss- exami net he wi t nessesof ot her s. RG&Epr esent edapanel of wi t nessest hatwasexami nedbysever al par t i es. Noot her wi t nesseswer e of f er ed.Pr i or t ot heest abl i shment of aschedul eont he Tempor ar ySur char gePet i t i on, Mul t i pl eI nt er venor s( MI ) andt he Ut i l i t yI nt er vent i onUni t of t heDi vi si onof Consumer Pr ot ect i on of t heDepar t ment of St at e( UI U) f i l edl et t er si nopposi t i ont o t hepet i t i ononJ une9andJ une11, 2015, r espect i vel y. I ni t i albr i ef swer ef i l edJ ul y13, 2015byRG&E, Depar t ment of Publ i c Ser vi ceSt af f ( St af f ) , MI , UI U, Al l i ancef or aGr eenEconomy ( AGREE) andCi t i zens' Envi r onment al Coal i t i on( CEC) .5Repl y br i ef swer ef i l edonJ ul y20, 2015byRG&EandUI U. PARTI ES POSI TI ONS Asset f or t hmor ef ul l ybel ow, t her ear et hr ee posi t i onst akenbyt hepar t i esi nt hi spr oceedi ng. RG&E cont endst hepubl i ci nt er est r equi r est hei mpl ement at i onof a 4Asdi scussedbel ow, t heCommi ssi onf i ndst hi sact i ont obe subsumedwi t hi nt henot i ceof pr oposedr ul emaki ngpr evi ousl y publ i shedi nt heSt at eRegi st er f or t heRSSAPet i t i on, SAPA 14- E- 0270SP2.5AGREEandCECf i l edaj oi nt br i ef .CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 4-t empor ar yr at esur char get oavoi dt heef f ect sof r at e compr essi on. MI , UI U, AGREEandCEC( Opponent s) denyr at e compr essi oni sani ssuei nt hi spr oceedi ngandopposet he est abl i shment of at empor ar yr at esur char ge. Thosepar t i es ar guet hat RG&Ehasappr oxi mat el y$155mi l l i oni nr egul at or y l i abi l i t i es, or cust omer cr edi t s,6f or t hebenef i t of cust omer s oni t sbooksandt hat suchcust omer cr edi t sshoul dbeappl i edt o cost sar i si ngf r omt heRSSA. St af f pr oposesamodi f i ed t empor ar yr at esur char ge, cal cul at edont heassumpt i ont hat some of t hecr edi t swi l l beusedt oof f set apor t i onof RSSAcost s.Pur suant t ot het er msof t heRSSA, RG&Emust payGi nna aMont hl yFi xedAmount of appr oxi mat el y$17. 5mi l l i on, r educed bycer t ai nr evenuesr ecei vedbyGi nnat hr ought hesal eofener gy, capaci t y, andanci l l ar yser vi cesi nt hewhol esal e mar ket . Whi l et het er mof t heAgr eement i sef f ect i veApr i l 1,2015, andpayment obl i gat i onspur suant t ot heRSSAbegi nt o accr ueont hat dat e, RG&E sobl i gat i ont omakesuchpayment st o Gi nnai snot t r i gger edunl essandunt i l t heRSSAi sappr ovedby bot ht heFeder al Ener gyRegul at or yCommi ssi on( FERC) andt he Commi ssi on.7TheRSSApr ovi dest hat oncet hoseappr oval sar e r ecei ved, RG&Emust commencet opayGi nnat heMont hl yFi xed Amount , pl usaDef er r edCol l ect i onAmount . TheDef er r ed Col l ect i onAmount i sequal t ot heamount RG&Ewoul dot her wi se havehadt opayGi nnai f t her egul at or yappr oval shadbeen secur edbyApr i l 1, 2015t hr ought hedat et heappr oval sar e r ecei ved, pl usi nt er est .8TheRSSAr equi r est heDef er r ed 6Hear i ngExhi bi t 6. Thecust omer cr edi t scompr i semoni es i dent i f i edasPosi t i veBenef i t Adj ust ment s, Asset Sal eGai ns anddef er r al s.7RSSA, at 2. 1( a) ( i ) and( i i ) .8RSSA, at 4. 1( b) .CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 5-Col l ect i onAmount t obepai di nequal mont hl yi nst al l ment s, such t hat t hef i nal payment i smadeont hei nvoi cer el at i ngt oMar ch 2017.9 I ni t sTempor ar ySur char gePet i t i on, RG&Eopi nest hatwhi l et her egul at or yaut hor i t i esar er evi ewi ngt heRSSA Pet i t i on, t heDef er r edCol l ect i onAmount i sgr owi ngand accumul at i ngi nt er est , r ai si ngt heconcer nof r at ecompr essi on.10 I t asser t st hat , becauseFERChasappr ovedi npar t t heRSSA,11 t hecost sof t her el i abi l i t yser vi cesGi nnai spr ovi di ngundert heRSSAar ebei ngt r ackedf r omApr i l 1, 2015. TheCompany st at est hat eachmont ht heDef er r edCol l ect i onAmount gr ows l ar ger and, i f col l ect i onf r omr at epayer si sdel ayed, t her ewi l lbeashor t er t i meper i odavai l abl et opaybackamount sowedi ft heRSSAi sul t i mat el yappr oved, whi chwi l l haveasi gni f i canti mpact onr at epayer s.RG&Econt endst hat t hi sr at ecompr essi onshoul dbe mi t i gat edbyi ni t i at i ngcol l ect i onof f undsf r omr at epayer s commenci ngAugust 1, 2015byi mpl ement i ng, onat empor ar ybasi s,t hesur char gemechani smpr oposedi ni t sRSSAPet i t i on. The Companyasser t st hat i nst i t ut i onof at empor ar ysur char gei si n t hepubl i ci nt er est t oal l evi at er at eshockandsuggest st hatr at epayer sar epr ot ect edbecauseanymoni escol l ect edf r omr at epayer sbyt het empor ar yr at esur char gewoul dber ef undedi ft heCommi ssi ondoesnot ul t i mat el yaccept t heRSSA.RG&Eur gest heCommi ssi ont oappr ovet het empor ar y r at esur char gei t pr oposeswi t hout of f set t i nganyRSSAcost s 9RSSA, at 4. 1( b) .10 I t est i mat est heDef er r edCol l ect i onAmount at near l y $25mi l l i ont hr oughJ ul y2015.11 FERCDocket No. ER- 15- 1047- 000, R. E. Gi nnaNucl ear PowerPl ant , LLC, 151FERC61, 023( i ssuedApr i l 14, 2015) .CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 6-wi t hcust omer cr edi t s. RG&Ear guesagai nst appl yi ngt hese cr edi t st ot heRSSAcost sandi nf avor of t hesur char ge, t o ensur et hat cashr ecover yi smat chedwi t hcashout l ays. I t says t hat useof t hecust omer cr edi t swoul dweakeni t scashposi t i on whenRG&Ewi l l bebot hmaki ngnet payment st oGi nnaandspendi ng casht oconst r uct t heGi nnaRet i r ement Tr ansmi ssi onAl t er nat i ve ( GRTA) pr oj ect , consi st i ngof upgr adest ot heRG&Ebul kel ect r i c anddi st r i but i onsyst emst hat wi l l al l owRG&Et oobt ai n suf f i ci ent power f r omot her sour ceswi t hout r el i anceonGi nna.RG&Eal sost at est heCommi ssi onshoul davoi dusi ngshor t - t er mmi t i gat i onmeasur est hat coul dst r essi t sbal ancesheet and cr edi t qual i t ywhen, i t ar gues, cr edi t qual i t ywi l l becr uci alt ot hesuccessof i ndust r yr est r uct ur i ngt hr ought he Commi ssi on' sRef or mi ngt heEner gyVi si on( REV) pr oceedi ng.12I n addi t i on, i t cont endst hat r egul at or yasset andl i abi l i t y t r eat ment shoul dbesymmet r i cal andaddr essedaspar t of a f or mal r at epr oceedi ng.13Fi nal l y, RG&Ear guesr at edesi gn opt i onsshoul dbepur suedt oaddr essi ssueswi t hRSSAbi l l i ng whi chwoul dbef or ecl osedi f t hecr edi t swer eusedi nt hi s pr oceedi ng.St af f concur swi t hRG&Et hat t empor ar yr at eswoul d ser vet hepubl i ci nt er est bymi t i gat i ngt her at ei mpact sof t he RSSAi f i t i sul t i mat el yappr ovedbyt heCommi ssi on. Al t hough payment sar enot bei ngmadet oGi nnayet , St af f asser t st hatFERChasal r eadyaccept edt heRSSAand, t her ef or e, i t i spr udentt ot akest epsnowt opr ot ect cust omer sagai nst t hepossi bl er at e i mpact si f t heCommi ssi onal soappr ovest heRSSA. St af f ar gues 12 Case14- M- 0101, Ref or mi ngt heEner gyVi si on.13 Hear i ngExhi bi t 10. I ndeed, RG&Epr oposest ousecust omercr edi t si nt hecont ext of i t sr ecent l yf i l edel ect r i cr at e pr oceedi ng, Case15- E- 0285.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 7-t hi sr emai nsent i r el ypossi bl egi vent heCommi ssi on sNovemberOr der f i ndi ngar el i abi l i t yneedf or cont i nuedoper at i onofGi nna sf aci l i t yanddi r ect i ngRG&Et onegot i at eanRSSA. St af far guest hat t heconsi der abl eamount RG&EmayoweGi nnaby December 2015, compar edt oRG&E' sannual del i ver yr evenueof$436mi l l i on, i ssuf f i ci ent j ust i f i cat i onf or adopt i ngt empor ar y r at est opr ot ect cust omer s.14Accor di ngt oSt af f , i t sanal ysi s demonst r at est hat , absent t empor ar yr at es, t heest i mat edr at e compr essi onwoul daddappr oxi mat el y$3. 8mi l l i onper mont ht o cust omer bi l l s, r esul t i ngi nanaver agedel i ver ybi l l i mpact ,f r omr at ecompr essi onal one, of 10. 4per cent .15 St af f pr oposesat wo- pr ongedappr oacht omi t i gat i ng r at ecompr essi onandt her at ei mpact sof t heRSSAgener al l y.Fi r st , St af f pr oposesappl yi ngappr oxi mat el y$25mi l l i onofcust omer cr edi t st oof f set t heDef er r edCol l ect i onAmountaccr uedbet weent heApr i l 1, 2015RSSAef f ect i vedat eand Sept ember 1, 2015, wheni t suggest st empor ar yr at esshoul dbe est abl i shed. Second, St af f pr oposest hei mpl ement at i onof a t empor ar yr at esur char geat al evel basedont hepr oj ect edf i r stf ul l - year r evenuer equi r ement f or t heGRTA.16Poi nt i ngt o 14SeeSt af f I ni t i al Br i ef ( I B) , p. 9. St af f est i mat esRG&Ewi l loweGi nnaappr oxi mat el y$52mi l l i onbyDecember 1, 2015.At t achment Aest i mat est hedebt at $56. 9mi l l i onbyDecember31, 2015.15 St af f I B, p. 13andAt t achment A. St af f est i mat edat ot albi l l i mpact f r omcompr essi onal oneof bet ween8and10 per cent .16 At t het i mei t f i l edi t sbr i ef , St af f di dnot haveanest i mat e of t hepr oj ect edf i r st f ul l - year r evenuer equi r ement .Subsequent l y, St af f movedt oent er RG&E' sr esponset oan i nt er r ogat or y, nowi dent i f i edasHear i ngExhi bi t 7, t hat shows t hepr oj ect edf ul l f i r st - year r evenuer equi r ement f or t heGRTA andFi f t hBay- St at i on80pr oj ect . Theest i mat edf i r st yearr evenuer equi r ement f or t hepr oj ect i s$22. 613mi l l i on.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 8-t est i monypr e- f i l edbyRG&Ei ni t sr ecent l y- f i l edr at ecase,17 St af f sayst heGRTAi sdesi gnedandi nt endedt opr ovi deal ong-t er msol ut i ont ot her el i abi l i t yneedcr eat edbyt her et i r ementof t heGi nnaf aci l i t y. St af f ar guest hat set t i ngt empor ar y r at esat al evel commensur at ewi t ht her evenuer equi r ementef f ect sof t hef i r st f ul l year of GRTAser vi cewi l l r educet he r at ei mpact sof t heRSSAoncust omer sandsmoot ht het r ansi t i on f r ompayi ngt heRSSAcost st opayi ngt heGRTAcost s. I tcont endst hat suchar at edesi gnwi l l pr ot ect r at epayer sagai nstbi l l vol at i l i t y. Si ncet heGRTAcost sandRSSAcost sdonotmat chexact l y, St af f pr oposescust omer cr edi t sal sobeusedt o of f set t hedi f f er encebet weent het wo. St af f ar guest hat useofcr edi t st oof f set par t of t heRSSAwoul dbeanaccept ed r at emaki ngappr oach, wher eone- t i mecr edi t sar emat chedwi t h one- t i mecost s.Opponent sopi net hat t her at eef f ect sof t heRSSAand i t sDef er r edCol l ect i onAmount pr ovi si onsar enot aguar ant eed out comei nt hi spr oceedi ng. Theyst r esst hat nopayment sar e cur r ent l yduet oGi nnaandcl ai mt hat payment smaynever become due. RG&E' sasser t i onof r at ecompr essi on, t heymai nt ai n, i s dependent ont her egul at or yaut hor i t i esappr ovi ngt heRSSAi n i t spr esent f or m, anout comet heyf i nddubi ous, gi vent he numer ouspar t i esr ai si ngwhat t heychar act er i zeascr edi bl e i ssuesr el at i ngt ot hepr oposedRSSA. I nf act , MI poi nt sout ,FERCal r eadyr ej ect edt heRSSAi npar t .18MI f ur t her cont ends 17 Case15- E- 0285, Rochest er GasandEl ect r i cCor por at i on-Rat es, Di r ect Test i monyof El ect r i candHydr oCapi t alExpendi t ur esPanel , p. 25( May20, 2015) ( descr i bi ngt heGRTA pr oj ect ashavi ngbeeni ni t i at edi nor der t omai nt ai n r el i abi l i t yabsent t hecont i nuedoper at i onof t heGi nna nucl ear power pl ant ) .18 MI I B, p. 3r ef er enci ngFERCDocket No. ER15- 1047- 000, supr a,151FERC61, 023( i ssuedApr i l 14, 2015) .CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 9-t hat r at ecompr essi onmaynot mat er i al i zei nt hi spr oceedi ng becauset heRSSAcont ai nspr ovi si onsal l owi ngt er mi nat i onof t he cont r act byGi nnat hr oughAugust 1, 2015andbyRG&Eor Gi nnai fFERCor t heCommi ssi onmodi f i esor i mposescondi t i onst he par t i esdeemt obeadver sei nappr ovi ngt heRSSA.UI U, AGREEandCECar guet hat t ot heext ent r at e compr essi oni saconcer ni nt hi spr oceedi ng, i t i soneof RG&E s ownmaki ng, si nceRG&Esought appr oval of t heRSSAi nl at e Febr uar y, 2015knowi ngt heRSSAhadanApr i l 1, 2015ef f ect i ve dat e. Thi s, t heyopi ne, wasent i r el yunr eal i st i c, gi vent he magni t udeof t her at ei ncr easer equest ed. Theycont endt hat t he Companymust haveknowni t wascr eat i ngt her i skof r at e compr essi ongi vent hesef act sandt hat r at epayer sshoul dnothavet opayt hecost sof RG&E' s" baddeal . "19 Opponent sasser t t hat eveni f t heRSSAwer eappr oved,r at ecompr essi oncanbeavoi ded, sot her ei snoneedt oset a t empor ar yr at esur char ge. Opponent sci t et heappr oxi mat el y$155 mi l l i onof cr edi t st hat RG&Eowesi t scust omer sandi nsi st t hatt hesecr edi t scoul dbeappl i edt ot heDef er r edCol l ect i onAmountt oavoi danyr at ecompr essi on. MI asser t st hei deaof r at e compr essi oni si nconcei vabl egi vent heamount RG&Epr esent l y owescust omer s, whi chdwar f sanycl ai medr at ecompr essi on.Opponent smai nt ai ni t woul dbeunr easonabl et oal l owRG&Et o col l ect mor emoneyf r omr at epayer sandi nsi st t hat RG&Eshoul d f i r st r epayi t scust omer s. I nf act , UI Uar guest hat t he pr i nci pl eof i nt er gener at i onal equi t ydi ct at est hat cr edi t s shoul dber et ur nedt or at epayer sasqui ckl yaspr act i cabl e. UI U agr eeswi t hSt af f t hat t heRSSApayment sr epr esent t het ypeofone- t i mecost t hat l endsi t sel f t omi t i gat i ont hr ought heuseofcr edi t s. I t st at est hat whi l eRG&Emaypr ef er t ouset he 19 AGREE/ CECI B, pp. 5- 6.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 10-cr edi t si nt hecont ext of i t sr at ecase, i t i si mpor t ant not t o maskt het r uecost of ener gyt hr ought heuseof one- t i me cr edi t s. I t al soasser t st hat col l ect i ngaddi t i onal moni esf r omcust omer si nt hef or mof asur char gei nt hi spr oceedi ngwoul dbe unj ust andunr easonabl e. Opponent snot et hat t heCommi ssi onhas aut hor i zedt heuseof cust omer cr edi t st opayf or RSSAcost s r ecover abl ef r omcust omer si not her i nst ances, andi t coul dand shoul ddosoi nt hi scase.20Opponent sal socl ai mr at e compr essi oncanbeavoi dedbyal t er i ngt het er msof t heRSSAand spr eadi ngout t hepayment of t heDef er r edCol l ect i onAmount overal onger t i meper i odt hanpr escr i bedi nt heRSSAor by st r uct ur i ngr at est or ecover t hecost sof t heDef er r ed Col l ect i onAmount over aper i odof t i mel onger t hant heRSSA cont r act t er m.UI Uar guest hat RG&Ehasnot advancedasat i sf act or y r at i onal ef or i t sopposi t i ont oappl yi ngt hecust omer cr edi t s.I t st at est hat whi l eRG&Ecl ai msuseof cr edi t swoul dweakeni t s cashposi t i on, ever ycashexpendi t ur eRG&Emakesweakensi t s cashposi t i on, but onl yext r aor di nar ysi t uat i onswar r ant t he i mposi t i onof at empor ar ysur char ge. Thi ssi t uat i on, i t opi nes,i snot suchanext r aor di nar ysi t uat i on. I t st at est hat t ot he ext ent RG&Ei snot seeki ngat empor ar ysur char gef or t heGRTA andi spayi ngout di vi dendst oshar ehol der s, i t cannot becash-st r apped. I nr esponset oRG&E' sasser t i ont hat cr edi t qual i t y maybei mpact edbyuseof cust omer cr edi t s, UI Ust at est hat no evi dencehasbeenpr ovi dedt hat useof suchcr edi t swoul dpose t her i skof af f ect i ngcr edi t qual i t yor t hat i t mayi mpact 20 MI J une9, 2015l et t er , p. 3; MI I B, p. 6; UI UJ une11, 2015 l et t er , p. 2. Ref er enci ngCases12- E- 0201and12- G- 0202,Ni agar aMohawkPower Cor por at i ond/ b/ aNat i onal Gr i d- Rat es,Or der Appr ovi ngEl ect r i candGasRat ePl ansi nAccor dwi t h J oi nt Pr oposal ( i ssuedMar ch15, 2013) , p. 15.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 11-RG&E' sabi l i t yt opar t i ci pat ei nREV- i ndust r yr est r uct ur i ng, as t heCompanysuggest s.Opponent sar guet hat at empor ar yr at esur char gewoul d put addi t i onal st r essonr at epayer pocket booksandcont endt hatasur char gei snot i nt hepubl i ci nt er est . Theyst at et hat t he economyi nRG&E' sser vi cet er r i t or yi snot st r ongandcust omer s wi l l not bewel l ser vedbypayi ngcost snowwhent hosecost sar e uncer t ai nandcoul dbeof f set byt heuseof cr edi t s. UI Uar gues suchat empor ar ysur char gewoul dcausesi gni f i cant andi mmedi at e har mt ol ow- i ncomecust omer sandcust omer sal r eadyt aki ng ser vi ceunder def er r edcol l ect i onagr eement s. MI char act er i zes t her at ei mpact sof t hepr oposedRSSA, andt her ef or et he r equest edt empor ar yr at es, asst agger i ng, st at i ngt hat S. C. 8 cust omer swi l l exper i encedel i ver yr at ei ncr easesof bet ween23 per cent and50per cent i n2015.21Opponent spoi nt t oRG&E s admi ssi ont hat i t di dnot consi der t hepot ent i al economi ci mpactof t her equest edt empor ar ysur char geonr at epayer sasevi dence t hat i t hasf ai l edt omeet i t sbur denof showi ngt het empor ar y r at esar ei nt hepubl i ci nt er est . Theycl ai mi t i snot possi bl e t odet er mi newhet her t empor ar yr at eswi l l pr omot et hepubl i c i nt er est whent heCompanyhasnot consi der edpot ent i al cust omeri mpact s.AGREEandCECal soasser t t hat t headopt i onof a t empor ar yr at esur char gewoul d" unf ai r l ycr eat eaneasi er pat h t ot her at er ecover yt heut i l i t yul t i mat el yseekst hr ought hi s case. " Theyr ai set heconcer nt hat whi l eRG&Ei sseeki nga si gni f i cant r at ei ncr easei nest abl i shi ngt empor ar yr at es, i t s pr ef er encef or est abl i shi ngsuchr at est hr oughanemer gencySAPA pr ocessdoesnot al l owf or publ i ccomment . Theycl ai mRG&Ehas not suf f i ci ent l yexpl ai nedhowt hepr oposedt empor ar yr at es 21 MI I B, p. 7.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 12-woul dbest r uct ur edandi mpl ement ed, andshoul dber equi r edt o pr ovi deadet ai l edaccount i ngandexpl anat i onof t het empor ar y r at ei t seeks. Theyur get hat not empor ar yr at esur char gebe i nst i t ut edpr i or t oaf i nal deci si onof t heRSSAbyt he Commi ssi on.RG&Eur gest heCommi ssi ont or ej ect t hepr oposal sofot her par t i esandt oi nst i t ut et het empor ar yr at esur char geas pr oposed. RG&Econt endsar gument st hat t heRSSAal l owsRG&Eand Gi nnat ot er mi nat et hecont r act asabasi sf or denyi nga t empor ar yr at esur char geshoul dbedi smi ssedaddr essi ngoneofMI ' sar gument , because, RG&Ear gues, t heyf ai l t ot akei nt o consi der at i oncer t ai nt i mi ngi ssuesci t i ngt ocer t ai n t er mi nat i onr i ght sexpi r i ngAugust 1, 2015.22Mor eover , RG&E ar gues, anyt empor ar yr at ewoul dbei mpl ement edaf t er t hat dat e,subj ect t or ef und. TheCommi ssi onshoul dr ej ect St af f ' s pr oposal t oset at empor ar yr at esur char geat al evel basedon t hef i r st year r evenuer equi r ement f or t heGRTA, RG&Esays,cont endi ngt hat St af f ' sr ecommendat i onl acksar at i onal basi s.RG&Ecl ai mst hesur char geshoul dbeset at al evelr epr esent at i veof t hecost si ncur r edf or r el i abi l i t yser vi ces pr ovi dedpur suant t ot heRSSA, not t her evenuer equi r ementassoci at edwi t haf ut ur ecapi t al pr oj ect . RG&Ecl ai mst hatwhi l et heGRTAwi l l pr ovi decust omer benef i t s, i t shoul dnot be usedagai nst RG&Et oof f set t hecost sof pr ovi di ngr el i abi l i t y under t heRSSA.RG&Econt endst hat ar gument sposedbyUI U, AGREEand CECt hat t heCommi ssi oncoul dmodi f yt het er msof t heRSSAt o el i mi nat er at ecompr essi onconcer ns, suchaschangi ngt he 22 OnJ ul y31, 2015RG&Ef i l edasecondamendment t oi t sRSSA t hat changedt hedat ebywhi chGi nnacanuni l at er al l y t er mi nat et heAgr eement f r omAugust 1, 2015t oAugust 17,2015.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 13-ef f ect i vedat e, di sal l owi ngr et r oact i vepayment s, or ext endi ng t her epayment of t heDef er r edCol l ect i onAmount , shoul dbe r ej ect ed. I t st at est hat t heCommi ssi onhaspr evi ousl yal l owed f or f ul l r ecover yof RSSAcost sover t hesamet i meper i odt hatser vi cei sbei ngpr ovi dedunder t heagr eement andsuchact i on shoul dbeassumedi nt hi si nst ance.23I nanyevent , i t st at es,i f t heCommi ssi ondoesul t i mat el ymodi f yt heRSSA, r at epayer s ar epr ot ect edbecauseanyaut hor i zedt empor ar ysur char gewoul d besubj ect t or ef und.RG&Echal l engesar gument sr ai sedbyMI andUI Ut hat a t empor ar yr at esur char gei snot i nt hepubl i ci nt er est duet o r esul t ant bi l l i mpact s. I t opi nest hat " t hesol epur poseoft empor ar yr at esi st omi t i gat er at ecompr essi onandi t s r esul t ant negat i ver at ei mpact oncust omer s, "24ar gui ngt hat a det ai l edbi l l i mpact anal ysi si snot necessar yt odemonst r at e t hat i mpl ement at i onof t empor ar yr at esi si nt hepubl i c i nt er est . DI SCUSSI ON Weappr oachRG&E sr equest wi t hsever al goal sf or emosti nmi nd. Thesaf et yandr el i abi l i t yof t heel ect r i csyst emi s of pr i mar yi mpor t ance, asi sensur i ngt hat r at epayer spayno mor et hani sj ust andr easonabl e. Ani mpor t ant el ement of j ustandr easonabl er at esi spr i cest abi l i t yandt heavoi danceof 23 RG&ERepl yBr i ef ( RB) , p. 9. Ref er enci ng: Case12- E- 0577,Exami nat i onof Repower i ngAl t er nat i vest oUt i l i t yTr ansmi ssi on Rei nf or cement s- Dunki r k, Or der Addr essi ngRepower i ngI ssues andCost Al l ocat i onandRecover y( i ssuedJ une13, 2014) ; Case 12- E- 0400, supr a, Or der Deci di ngRel i abi l i t yI ssuesand Addr essi ngCost Al l ocat i onandRecover y( i ssuedJ anuar y16,2012) andOr der Regar di ngCompl i anceFi l i ng( i ssued Sept ember 20, 2013) .24RG&ERB, p. 11.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 14-r at eshockt oconsumer sf r omsudden, si gni f i cant i ncr eases.Fur t her mor e, wehavet her esponsi bi l i t yt oensur et hat ut i l i t i es ar ef ai r l ycompensat edf or t hecost snecessar yt opr ovi desaf e andr el i abl eser vi cei nor der t omai nt ai nt hei r f i scal heal t h.Thepat hwechooseher ei st heonet hat best meet st hese obj ect i ves, becausei t pr ot ect sconsumer sf r omr at eshockand i nst eadpr ovi despr i cest abi l i t y, bot hnowandi nt henearf ut ur e, whi l eaf f or di ngRG&Et her esour cesnecessar yt omai nt ai n r el i abl eser vi ce.Wehavecar ef ul l yr evi ewedt heevi denceandar gument s submi t t edi nr esponset ot heTempor ar ySur char gePet i t i onand f i ndt hat t hepubl i ci nt er est r equi r est hat at empor ar y sur char gebeest abl i shed, subj ect t or ef und, whi l et heRSSA Pet i t i oni spendi ngbef or eus.25Of t hevar i ouspr oposal sand ar gument s, weconcl udet hat t heSt af f pr oposal r epr esent san el egant sol ut i ont ot hecompl exsi t uat i onbef or eus. Wewi l lt her ef or edi r ect RG&Et obegi nt osur char gei t scust omer s, at a l evel consi der abl yl ower t hanRG&Epr oposed, but onet hat bestappr oxi mat es, at t hi st i me, t hel i kel yl ong- t er mcost sofaddr essi ngr el i abi l i t yi nt heser vi cet er r i t or yt hr ought heGRTA pr oj ect . Doi ngsobest meet sour goal s, bypr ovi di ngsome i mmedi at er at er el i ef t oRG&Ewhi l esmoot hi ngout t hei mpact on cust omer sasmuchaspossi bl e. 25Wedonot ant i ci pat et hat r at epayer swoul dr ecei vear ef undi n t hef or mof abi l l cr edi t or r ebat echeck, eveni nt heeventt hat amount scol l ect edunder t hesur char gear ef oundt obe owedt or at epayer s. Rat her , amount scol l ect edpur suant t ot he t empor ar ysur char gewi l l l i kel yber econci l edandaccount ed f or i nt hecont ext of addr essi ngt heRSSAoni t smer i t si n t hi scaseor i nset t i ngnewr at esi nRG&E spendi ngel ect r i c r at ecase, Case15- E- 0285, andsuchf undswoul dbeappl i edt o cost st hat r at epayer swoul dot her wi sehavet obear .CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 15-PSL114gr ant sust heaut hor i t yt oest abl i sh t empor ar yr at eswhi l eaper manent r at ecasei spendi ngwhenwe ar e" of opi ni ont hat t hepubl i ci nt er est sor equi r es. "26A deci si ont ogr ant t empor ar yr at esi sdi scr et i onar y, andbasedon abal anci ngof t hespeci f i cconsi der at i onspr esent i neach,uni quecase.27Theci r cumst ancespr esent edher ear ecer t ai nl y uni que. I nNovember , wef oundt hat Gi nna' scont i nuedoper at i on i snecessar yt ot her el i abi l i t yof RG&E' sel ect r i csyst emand di r ect edRG&Et onegot i at eacont r act wi t hGi nnat oensur esuch cont i nuedoper at i on.28Ther esul t i ngRSSAi st hesour ceof t he Def er r edCol l ect i onAmount whi ch, i nt ur n, i st hebasi sf orRG&E' sTempor ar ySur char gePet i t i on. However , becauseRG&Ei s not cur r ent l ypayi ngGi nna, i t i snot seeki ngt empor ar yr el i efdi r ect l yf or i t sownbenef i t , but r at her asser t st hat such r el i ef i snecessar yt opr ot ect cust omer sf r omt her at e compr essi ont hat i soccur r i ngwhi l et heRSSAPet i t i oni spendi ng bef or eus.Basedont her ecor devi dence, weconcl udet hatpot ent i al cost sr el at edt ot heRSSAar emount i ngandt hat t hey coul dr esul t i nunaccept abl er at eshockt ocust omer s, i f and whent heRSSAi sappr oved. St af f ' sanal ysi sdemonst r at est hatt heRSSApayment s, wi t hout anycompr essi on, havet hepot ent i alt osi gni f i cant l yi ncr easecust omer s aver ageannual del i ver y bi l l s; onanannual basi st hei mpact coul daver age11. 2 26PSL114; seePSL66( 12) ( h) , 72; seeal so100Par kAve. ,I nc. v. Publ i cSer vi ceCom. , 37AD2d404, 405- 407( 3dDept .1971) .27SeeCase13- G- 0136, Nat i onal Fuel GasDi st r i but i onCor por at i on - Rat es, Or der Set t i ngTempor ar yRat es, p. 11( i ssuedJ une14,2013) .28November Or der , pp. 24- 25.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 16-per cent .29Fur t her , St af f est i mat est hat t hecompr essi onef f ectcoul daddanaddi t i onal 10. 4per cent t ocust omer s del i ver y bi l l si f sur char geaut hor i t yi sdel ayedunt i l J anuar y2016.30I n consi der at i onof t hepot ent i al del i ver ybi l l i mpact st hat coul d exceed20per cent , weconcl udet hat i t i sappr opr i at et oappr ove sur char gecol l ect i onnow. Whi l ewear eawar et hat at empor ar y r at esur char gewi l l i mposeamor ei mmedi at ebur denoncust omer s t hanwoul doccur i f weawai t t heout comeof t heRSSAPet i t i on,wear esat i sf i edt hat at empor ar yr at ei ncr ease, subj ect t o f ur t her r econci l i at i on, i snecessar yt osmoot ht hepot ent i ali mpact of t heRSSAcost s.I nopposi t i ont ot heTempor ar ySur char gePet i t i on, MIandUI Uar guet hat t hei mposi t i onof at empor ar ysur char gei s unnecessar ybecauseRG&Ei snot yet obl i gat edt omakepayment s t oGi nnaandt husi snot suf f er i nganycashf l owpr obl emasa r esul t of i t sobl i gat i onsunder t heRSSA. UI Uaddst hat r at e compr essi oni si l l usor ybecausewecoul dmodi f yt het er msof t he RSSA, i ncl udi ngt heApr i l 1, 2015ef f ect i vedat e, pr i or t o appr oval .31Wear enot per suadedbyt hesear gument s. The cont i ngenci esi mpact i ngt heRSSAar enot suf f i ci ent t oal l ayourconcer nsabout r at ecompr essi ongi vent hemagni t udeof t he Def er r edCol l ect i onAmount l oomi ngont hehor i zon. Al t hought he accumul at i ngl i abi l i t yi scont i ngent uponour appr oval of t he RSSA, wecannot i gnor eonepot ent i al out comeof our r evi ewoft her ecor di nt hepr oceedi ng, t hat asol ut i oni snecessar yt o pr eser ver el i abi l i t yf or cust omer si nRochest er andwemay appr ovet heRSSA. I f wel at er dor eacht hat det er mi nat i on, 29 SeeSt af f I B, At t achment A. Aver ageof 2016RG&EEl ect r i c Del i ver yRevenuespayment wi t hout compr essi on.30 St af f I B, p. 13andAt t achment A.31 UI URB, p. 1; UI UI B, p. 4.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 17-t her emaybeaser i ousr esul t i ngi mpact onr at epayer si f and whenRG&Ebecomesobl i gat edt or ei mbur seGi nnaf or ser vi ce commenci ngasof Apr i l 1, 2015.I ndeed, al t hought hescopeandnat ur eof RG&E' s ul t i mat el i abi l i t yt oGi nnai suncer t ai n, gi vent hat t heRSSA maynot beappr ovedi ni t scur r ent f or mor at al l , t he r easonabl ecost sof t her el i abi l i t yser vi ceobl i gat i ont hat was i mposeduponGi nnai nNovember ul t i mat el ymust ber ecover edi n somef ashi on. I t i spossi bl et hat t heycoul dbeevenmor e si gni f i cant t hant hosecont empl at edbyt heRSSA.32Fai l i ngt o t akeanyact i onnowbasedont heuncer t ai nt i eswoul dbeshor t -si ght ed.Opponent sar guet heTempor ar ySur char gePet i t i on shoul dbedeni edbasedont hebi l l i mpact st hat i mposi ngt he pr oposedt empor ar ysur char gewoul dhaveoncust omer s. Gi vent he pur poseof t het empor ar yr at esur char ge, however , weagr eewi t h RG&Et hat adet ai l edbi l l i mpact anal ysi si snot necessar yi n t hi ssi t uat i on. I ndeed, i t i st heconcer nr egar di ngbi l l i mpact s oncust omer st hat war r ant st empor ar yr el i ef becausei t wi l lmi t i gat et hemor epr of oundbi l l i mpact st hat woul dbecausedi n t hef ut ur ebyr at ecompr essi on. St af f ' sanal ysi sdemonst r at es t hat r at ecompr essi on, absent at empor ar ysur char ge, woul dadd appr oxi mat el y$3. 8mi l l i onper mont ht ocust omer del i ver ybi l l s,r esul t i ngi nadel i ver ybi l l i mpact , f r omr at ecompr essi on al one, of 10. 4per cent .33 Weal soar enot per suadedbyt hear gument sofOpponent st hat t heexi st enceof r egul at or yl i abi l i t i es, orcust omer cr edi t s, t hat RG&Ecoul dappl yt oof f set t heDef er r ed Col l ect i onAmount r ender sat empor ar yr at ei ncr easeunnecessar y. 32 St af f I B, pp. 7- 8andn. 8.33St af f I B, At t achment A.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 18-Weagr eet hat useof t hecr edi t st oof f set asi gni f i cant por t i on of t heRSSAcost si sawi secour seof act i on. Mat chi ngt he cr edi t swi t haone- t i mecost suchast heRSSAi sgoodr at emaki ng pr act i ce, avoi di ngt hedi st or t i ont hat canoccur i nr at esi fone- t i mecr edi t sar eappl i edt oon- goi ngcost s. Mor eover , we ar emi ndf ul of t heequi t yar gument sur gi ngust or et ur nt he cr edi t sascl osel yaspossi bl ei nt i met ot hesamer at epayer son whosebehal f t heyaccr ued. Never t hel ess, wear eal sosensi t i ve t ot hef act t hat t heuseof al l r egul at or yl i abi l i t i esat one t i mecoul dhaveanegat i vei mpact onRG&E' scashf l ow. I t i san over - si mpl i f i cat i ont oassumet hat t heexi st enceof cust omercr edi t snegat est heneedt ocol l ect f undsf r omcust omer st o mi t i gat et hepot ent i al RSSAcost s. Rat her , webel i eveonl y par t i al useof t hecr edi t si swar r ant ed, coupl edwi t hamor e modest sur char get obegi nsomecol l ect i onf r omcust omer snow.Asi gni f i cant f act or i nour deci si oni st hel ar gercont ext of Gi nna sl ackof pr of i t abi l i t yandpr oposed r et i r ement . Al t hought heRSSAi ni sol at i onr epr esent saone-t i mecost , i t doesnot , i nandof i t sel f , sol vet hepr obl emofGi nna' sr et i r ement . Rat her , RG&E' sf i l i ngsi nt hi scase, as wel l asi not her docket spendi ngbef or eus, r eveal i t spl ansf ort heGRTAast hel ong- t er msol ut i ont oachi ever el i abl eser vi ce i nt heabsenceof anoper at i ngGi nnaf aci l i t y. Becauseof t he l oomi ngcost t oi mpl ement t heGRTA, asput f or t hi nRG&E' sr at e f i l i ng, r at epayer sar el i kel yt oexper i encer at ei ncr easesi n t henear f ut ur e, evenwi t ht heuseof cr edi t st oof f set t he RSSA. Ther ef or e, al t houghamor t i zi ngt hecost sof t heRSSAoveral onger per i odof t i memi ght , under di f f er ent ci r cumst ances,smoot hpot ent i al r at ei mpact s, her ei t woul dpr ovi del i t t l e benef i t , i f t hef ut ur epayment sar et obeaddedont osubst ant i alGRTAcost s, cr eat i ngasi gni f i cant bur denf or f ut ur er at epayer s.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 19-St af f ' spr oposal t oest abl i shat empor ar ysur char ge t hat i sbasedonRSSAcost swhi char et henpar t i al l yof f set wi t h cust omer cr edi t spr ovi desanappr opr i at ebal anceamongt he concer nover near - t er mbi l l i mpact soncust omer s, t he demonst r at edneedt oaddr essr at ecompr essi on, RG&E scashf l ow andcr edi t qual i t y, andt hel onger - t er mi mpact sonr at epayer soft heGi nnaf aci l i t y spot ent i al r et i r ement . Speci f i cal l y,ut i l i zi ngcust omer cr edi t st oof f set t hat por t i onof t he Def er r edCol l ect i onAmount t hat hasaccr uedt odat ewi l lmi t i gat er at ecompr essi onwhi l ehavi ngnonegat i veef f ect on r at evol at i l i t yi nt hef ut ur e. Accor di ngl y, weant i ci pat et hat ,i nanyor der appr ovi ngt heRSSA, wewoul ddi r ect RG&Et oappl y cust omer cr edi t st oof f set t hat por t i onof t heDef er r ed Col l ect i onAmount t hat r epr esent sl i abi l i t yt oGi nnabegi nni ng Apr i l 1, 2015andendi ngAugust 31, 2015. Wewi l l askRG&Et o pr ovi deuswi t ht hebal anceof t heDef er r edCol l ect i onAmount as of August 31, 2015.St af f ' spr oposal t oest abl i sht het empor ar ysur char ge at al evel desi gnedt ocover t heGRTAcost s, asopposedt ot he f ul l cost sassoci at edwi t ht heRSSA, si mi l ar l yst r i kest he appr opr i at ebal anceamongal l t hecompet i ngconsi der at i onsand i si nt hepubl i ci nt er est . Al t houghat i ssuei nt hi spr oceedi ng ar et heRSSAcost s, andnot GRTA, wedonot accept RG&E' s posi t i ont hat useof t heGRTAamount l acksar at i onal basi s.Ut i l i zi ngt heGRTAamount t of i xat empor ar yr at esur char gewi l lper mi t t her ecover yof some, but not al l , RSSAcost sf r omcust omer snow. TheGRTAamount pr ovi desagoi ng- f or war d r el i abi l i t ycost t hat i sl i kel yt ober el evant onal onger - t er mbasi st hant heRSSAcost s. Suchat empor ar ysur char gewi l lcol l ect ar easonabl ymodest amount f r omr at epayer si nt henear -t er mwhi l eaddr essi ngt her at ecompr essi oni ssue. Wet her ef or e di r ect RG&Et oest abl i shat empor ar ysur char geat al evelCASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 20-desi gnedt ocol l ect , onanannual basi s, t heGRTAest i mat ed f i r st f ul l - year r evenuer equi r ement ( $22. 613mi l l i on) .34Thi s l evel of t empor ar yr at esr esul t si nani mmedi at e5. 2per centaver agedel i ver yr at ei ncr ease,35compar edt ot het ot al i mpact oft heRSSApl uscompr essi on, assumi ngnoappl i cat i onof cr edi t s,whi chcoul dequat et oanaver agedel i ver ybi l l i ncr easeof mor e t han20per cent .36Si ncet het empor ar ysur char gecol l ect i ons f r omcust omer swi l l commencepr i or t oRG&E spayment st oGi nna,RG&Eshal l accumul at esuchcol l ect i onsasar egul at or yl i abi l i t y i nani nt er est bear i ngaccount .37I ncompl i ancewi t ht hi sor der ,RG&Emust f i l ei t spr oposedaccount i ngf or t hesur char gemoni es col l ect edpr i or t omaki ngpayment st oGi nna, i ncl udi ngi nt er est .St af f al sopr oposest hat addi t i onal cr edi t sbe ear mar kednowt oof f set t hedi f f er encebet weent het empor ar y r at esur char geandt hef ul l RSSAcost s. Thi saspect of St af f ' s pr oposal i snot adopt ed, at t hi st i me. Unt i l RG&Ei sact ual l y maki ngpayment st oGi nna, t her ei snoneedf or i t t ochangei t s account i ngent r i esf or t hesecr edi t s. However , i t i sourexpect at i ont hat , i f andwhenanRSSAbecomesoper at i veand payment sbegi nt of l owf r omRG&Et oGi nna, t hel evel of t he t empor ar yr at esur char geweor der her ewi l l cont i nuet o 34 Hear i ngExhi bi t 7.35 5. 2per cent r epr esent st he$22. 613mi l l i onf i r st f ul l - yearcost of t heGRTAasest i mat edbyRG&Ei nHear i ngExhi bi t 7 di vi dedbyRG&E' sannual del i ver yr evenuesof $436mi l l i on.36St af f I B, At t achment A.37 I nt er est shal l beaccr uedont hi sr egul at or yl i abi l i t yorcust omer cr edi t at t heCommi ssi on- appr ovedot her cust omerpr ovi dedcapi t al r at e. Wet r adi t i onal appl yt hepr et axcostof capi t al onr egul at or ydef er r al sf or RG&E. However , duet o t heant i ci pat edshor t - t er mnat ur eandmagni t udeof t hi s def er r al , wef i ndt heot her cust omer pr ovi dedcapi t al r at e appr opr i at e.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 21-r epr esent t heappr opr i at ebal ancebet weenRG&E sneedf or cash andt hesubst ant i al cr edi t sRG&Eowest oi t scust omer s. At t hatpoi nt , RG&Ewoul dr ecover t hedi f f er encebet weent hemont hl y payment st oGi nnaandi t smont hl ysur char ger ecover i esby appl i cat i onof cust omer cr edi t sf or asl ongasmont hl yRSSA payment sar emade. Cont i nui ngt hesur char geat al evelappr oxi mat i ngt heGRTAcost sf or t heyear st hat t heRSSAi si n ef f ect woul dcr eat east eadypat t er nof col l ect i onof r at esf r omr at epayer s, smoot hi ngout t hepeaksandval l eyst hat woul d r esul t f r omf ul l i mpl ement at i onof RG&E spr oposedsur char ge f ol l owedbyt headdi t i onof t heGRTAt or at ebaseanda cor r espondi ngbaser at ei ncr ease. At t hi st i me, nei t her t he exact amount of RSSAcost snor t heexact amount of GRTAcost si s known, andf i nal number smust awai t bot hf ur t her r egul at or y pr oceedi ngsher eandat FERCaswel l asact ual r esul t s.38Fornow, t het empor ar ynat ur eof t hesur char geal l owsf orr econci l i at i on.Fi nal l y, wenot et hat , whi l eRG&Eur gedust oconsi deri t st empor ar yr at epet i t i ononanemer gencybasi spur suant t o SAPA202( 6) , wedonot f i ndi t necessar yt ouset hat pr ocedur e i nt hi si nst ance. I nt hi scase, t hei ssuesr ai sedi nr el at i on t ot heTempor ar ySur char gePet i t i onar eal l i ssuesi mpl i cat edby t heRSSAPet i t i on. Consequent l y, i nt er est edpar t i eshave r ecei vedsuf f i ci ent not i ceof our pot ent i al act i onst hr ought he not i ceof pr oposedr ul emaki ngr egar di ngt heRSSApet i t i ont hatwaspubl i shedi nt heSt at eRegi st er onMar ch4, 2015.39 38 Gi vent heuncer t ai nt i esat t endi ngt hepr ocessbef or eFERC, and t heef f ect devel opment sat FERCmayhaveont hei ssuest hatr emai nundeci dedher e, appeal sf r omt heAdmi ni st r at i veLaw J udges May14, 2015Rul i ngonScopeof I ssueswi l l not be addr essedat t hi st i me.39 SAPA14- E- 0270SP2.CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 22- CONCLUSI ON Theevi denceof si gni f i cant del i ver yr at ei mpact si n addi t i ont or at ecompr essi onduet oRG&E' spr oj ect edl i abi l i t y under t heRSSAwar r ant st hei mposi t i onof at empor ar yr at e sur char ge, subj ect t or ef und. Thesur char geshoul dbef i xedatal evel appr oxi mat i ngt heGRTAcost sasdi scussedher ei n. The appr opr i at edi sposi t i onof anyt empor ar yr at escol l ect edt hatar edet er mi nedt ohavebeeni nexcessof j ust andr easonabl e l evel swi l l beaddr essedi nt heper manent r at esphaseof t hi s pr oceedi ng. TheCommi ssi onor der s:1. Rochest er GasandEl ect r i cCor por at i on( RG&E) i s di r ect edt of i l et ar i f f changesasar enecessar yt oef f ect uat e t het empor ar ysur char geaspr ovi dedi nt hi sor der onnot l ess t hanoneday' snot i ce, t ogoi nt oef f ect onat empor ar ybasi son Sept ember 1, 2015.2. RG&Eshal l submi t acompl i ancef i l i ngwi t ht he Secr et ar ybySept ember 30, 2015pr ovi di ngt heDef er r ed Col l ect i onAmount asof August 31, 2015asdef i nedbyt heRSSA.3. RG&Eshal l f i l ewi t ht heSecr et ar ybySept ember 1,2015i t spr oposedaccount i ngf or t hesur char gemoni escol l ect ed,i ncl udi ngi nt er est .4. TheSecr et ar yi nher sol edi scr et i onmayext end t hedeadl i nesset f or t hi nt hi sor der . Anyr equest f or an ext ensi onmust bei nwr i t i ng, must i ncl udeaj ust i f i cat i onf ort heext ensi on, andmust bef i l edat l east onedaypr i or t ot he af f ect eddeadl i ne.5. Thi spr oceedi ngi scont i nued. Byt heCommi ssi on,CASE14- E- 0270Dr af t Di scussi onDocument , August 2015Sessi on,Publ i cl yRel easedAugust 13, 2015 - 23- KATHLEENH. BURGESS Secr et ar y