BACKGROUND & EXPERIENCE PROFILE GLENN A. WATKINS … · schedule gaw-1 page 1 of 3 background &...
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Schedule GAW-1 Page 1 of 3 BACKGROUND & EXPERIENCE PROFILE GLENN A. WATKINS VICE PRESIDENT/SENIOR ECONOMIST TECHNICAL ASSOCIATES, INC. EDUCATION 1982 - 1988 M.B.A., Virginia Commonwealth University, Richmond, Virginia 1980 - 1982 B.S., Economics; Virginia Commonwealth University 1976 - 1980 A.A., Economics; Richard Bland College of The College of William and Mary, Petersburg, Virginia POSITIONS Jul. 1995-Present Vice President/Senior Economist, Technical Associates, Inc. Mar. 1993-1995 Vice President/Senior Economist, C. W. Amos of Virginia Apr. 1990-Mar. 1993 Principal/Senior Economist, Technical Associates, Inc. Aug. 1987-Apr. 1990 Staff Economist, Technical Associates, Inc., Richmond, Virginia Feb. 1987-Aug. 1987 Economist, Old Dominion Electric Cooperative, Richmond, Virginia May 1984-Jan. 1987 Staff Economist, Technical Associates, Inc. May 1982-May 1984 Economic Analyst, Technical Associates, Inc. Sep. 1980-May 1982 Research Assistant, Technical Associates, Inc. EXPERIENCE I. Public Utility Regulation A. Costing Studies -- Conducted, and presented as expert testimony, numerous embedded and marginal cost of service studies. Cost studies have been conducted for electric, gas, telecommuni- cations, water, and wastewater utilities. Analyses and issues have included the evaluation and development of alternative cost allocation methods with particular emphasis on ratemaking implications of distribution plant classification and capacity cost allocation methodologies. Distribution plant classifications have been conducted using the minimum system and zero- intercept methods. Capacity cost allocations have been evaluated using virtually every recognized method of allocating demand related costs (e.g., single and multiple coincident peaks, non- coincident peaks, probability of loss of load, average and excess, and peak and average). Embedded and marginal cost studies have been analyzed with respect to the seasonal and diurnal distribution of system energy and demand costs, as well as cost effective approaches to incorporating energy and demand losses for rate design purposes. Economic dispatch models have been evaluated to determine long range capacity requirements as well as system marginal energy costs for ratemaking purposes. B. Rate Design Studies -- Analyzed, designed and provided expert testimony relating to rate structures for all retail rate classes, employing embedded and marginal cost studies. These rate structures have included flat rates, declining block rates, inverted block rates, hours use of demand blocking, lighting rates, and interruptible rates. Economic development and special industrial rates have been developed in recognition of the competitive environment for specific customers. Assessed alternative time differentiated rates with diurnal and seasonal pricing structures. Applied Ramsey (Inverse Elasticity) Pricing to marginal costs in order to adjust for embedded revenue requirement constraints.
Transcript of BACKGROUND & EXPERIENCE PROFILE GLENN A. WATKINS … · schedule gaw-1 page 1 of 3 background &...
Schedule GAW-1 Page 1 of 3
BACKGROUND & EXPERIENCE PROFILE
GLENN A. WATKINS VICE PRESIDENT/SENIOR ECONOMIST TECHNICAL ASSOCIATES, INC. EDUCATION
1982 - 1988 M.B.A., Virginia Commonwealth University, Richmond, Virginia 1980 - 1982 B.S., Economics; Virginia Commonwealth University 1976 - 1980 A.A., Economics; Richard Bland College of The College of William and Mary,
Petersburg, Virginia POSITIONS
Jul. 1995-Present Vice President/Senior Economist, Technical Associates, Inc. Mar. 1993-1995 Vice President/Senior Economist, C. W. Amos of Virginia Apr. 1990-Mar. 1993 Principal/Senior Economist, Technical Associates, Inc. Aug. 1987-Apr. 1990 Staff Economist, Technical Associates, Inc., Richmond, Virginia Feb. 1987-Aug. 1987 Economist, Old Dominion Electric Cooperative, Richmond, Virginia May 1984-Jan. 1987 Staff Economist, Technical Associates, Inc. May 1982-May 1984 Economic Analyst, Technical Associates, Inc. Sep. 1980-May 1982 Research Assistant, Technical Associates, Inc.
EXPERIENCE I. Public Utility Regulation
A. Costing Studies -- Conducted, and presented as expert testimony, numerous embedded and marginal cost of service studies. Cost studies have been conducted for electric, gas, telecommuni-cations, water, and wastewater utilities. Analyses and issues have included the evaluation and development of alternative cost allocation methods with particular emphasis on ratemaking implications of distribution plant classification and capacity cost allocation methodologies. Distribution plant classifications have been conducted using the minimum system and zero-intercept methods. Capacity cost allocations have been evaluated using virtually every recognized method of allocating demand related costs (e.g., single and multiple coincident peaks, non-coincident peaks, probability of loss of load, average and excess, and peak and average).
Embedded and marginal cost studies have been analyzed with respect to the seasonal and diurnal distribution of system energy and demand costs, as well as cost effective approaches to incorporating energy and demand losses for rate design purposes. Economic dispatch models have been evaluated to determine long range capacity requirements as well as system marginal energy costs for ratemaking purposes.
B. Rate Design Studies -- Analyzed, designed and provided expert testimony relating to rate
structures for all retail rate classes, employing embedded and marginal cost studies. These rate structures have included flat rates, declining block rates, inverted block rates, hours use of demand blocking, lighting rates, and interruptible rates. Economic development and special industrial rates have been developed in recognition of the competitive environment for specific customers. Assessed alternative time differentiated rates with diurnal and seasonal pricing structures. Applied Ramsey (Inverse Elasticity) Pricing to marginal costs in order to adjust for embedded revenue requirement constraints.
Schedule GAW-1 Page 2 of 3
GLENN A. WATKINS
C. Forecasting and System Profile Studies -- Development of long range energy (Kwh or Mcf) and demand forecasts for rural electric cooperatives and investor owned utilities. Analysis of electric plant operating characteristics for the determination of the most efficient dispatch of generating units on a system-wide basis. Factors analyzed include system load requirements, unit generating capacities, planned and unplanned outages, marginal energy costs, long term purchased capacity and energy costs, and short term power interchange agreements.
D. Cost of Capital Studies -- Analyzed and provided expert testimony on the costs of capital and
proper capital structures for ratemaking purposes, for electric, gas, telephone, water, and wastewater utilities. Costs of capital have been applied to both actual and hypothetical capital structures. Cost of equity studies have employed comparable earnings, DCF, and CAPM analyses. Econometric analyses of adjustments required to electric utilities cost of equity due to the reduced risks of completing and placing new nuclear generating units into service.
E. Accounting Studies -- Performed and provided expert testimony for numerous accounting studies
relating to revenue requirements and cost of service. Assignments have included original cost studies, cost of reproduction new studies, depreciation studies, lead-lag studies, Weather normalization studies, merger and acquisition issues and other rate base and operating income adjustments.
II. Transportation Regulation
A. Oil and Products Pipelines -- Conducted cost of service studies utilizing embedded costs, I.C.C. Valuation, and trended original cost. Development of computer models for cost of service studies utilizing the "Williams" (FERC 154-B) methodology. Performed alternative tariff designs, and dismantlement and restoration studies.
B. Railroads -- Analyses of costing studies using both embedded and marginal cost methodologies.
Analyses of market dominance and cross-subsidization, including the implementation of differential pricing and inverse elasticity for various railroad commodities. Analyses of capital and operation costs required to operate "stand alone" railroads. Conducted cost of capital and revenue adequacy studies of railroads.
III. Insurance Studies
Conducted and presented expert testimony relating to market structure, performance, and profitability by line and sub-line of business within specific geographic areas, e.g. by state. These studies have included the determination of rates of return on Statutory Surplus and GAAP Equity by line - by state using the NAIC methodology, and comparison of individual insurance company performance vis a vis industry Country-Wide performance.
Conducted and presented expert testimony relating to rate regulation of workers compensation, automobile, and professional malpractice insurance. These studies have included the determination of a proper profit and contingency factor utilizing an internal rate of return methodology, the development of a fair investment income rate, capital structure, cost of capital.
Other insurance studies have included testimony before the Virginia Legislature regarding proper regulatory structure of Credit Life and P&C insurance; the effects on competition and prices resulting from proposed insurance company mergers, maximum and minimum expense multiplier limits, determination of specific class code rate increase limits (swing limits); and investigation of the reasonableness of NCCI=s administrative assigned risk plan and pool expenses.
Schedule GAW-1 Page 3 of 3
GLENN A. WATKINS
IV. Anti-Trust and Commercial Business Damage Litigation
Analyses of alleged claims of attempts to monopolize, predatory pricing, unfair trade practices and economic losses. Assignments have involved definitions of relevant market areas(geographic and product) and performance of that market, the pricing and cost allocation practices of manufacturers, and the economic performance of manufacturers' distributors.
Performed and provided expert testimony relating to market impacts involving automobile and truck dealerships, incremental profitability, the present value of damages, diminution in value of business, market and dealer performance, future sales potential, optimal inventory levels, fair allocation of products, financial performance; and business valuations.
MEMBERSHIPS AND CERTIFICATIONS
Member, Association of Energy Engineers (1998) Certified Rate of Return Analyst, Society of Utility and Regulatory Financial Analysts (1992) Member, American Water Works Association National Association of Business Economists Richmond Association of Business Economists National Economics Honor Society
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Adju
stm
ents
3/
Perio
d6.
66%
Requ
irem
ent
Ope
ratin
g In
com
e &
Rat
e of
Ret
urn
1O
pera
ting
Reve
nues
Sale
s $1
55,3
81,7
87-$
83,7
51,0
87$7
1,63
0,70
0$2
39,8
38$7
1,87
0,53
8$7
05,8
00$7
2,57
6,33
8
Oth
er R
even
ue$2
6,10
7,27
0-$
25,6
71,9
82$4
35,2
88$4
35,2
88$4
35,2
88To
tal O
pera
ting
Reve
nue
$181
,489
,057
-$10
9,42
3,06
9$7
2,06
5,98
8$2
39,8
38$7
2,30
5,82
6$7
05,8
00$7
3,01
1,62
6
Ope
ratin
g ex
pens
es2
O
pera
tion
and
Mai
nten
ance
Exp
ense
s$1
47,3
52,4
05-$
112,
950,
451
$1,7
35,7
03$3
6,13
7,65
7-$
2,68
8,27
1$3
3,44
9,38
6$3
3,44
9,38
63
D
epre
ciat
ion
and
Amor
tizat
ion
Expe
nses
$12,
502,
265
-$22
,370
$1,8
88,3
75$1
4,36
8,27
0-$
1,52
2,04
6$1
2,84
6,22
4$1
2,84
6,22
44
T
axes
Oth
er T
han
Inco
me
$6,8
42,8
64-$
1,97
4,62
9$0
$4,8
68,2
35$7
20$4
,868
,955
$2,1
17$4
,871
,072
7St
ate
Inco
me
Taxe
s (Cu
rr +
Def
erre
d)$6
70,4
81$5
81,1
81-$
388,
630
$863
,032
$484
,812
$1,3
47,8
44$6
1,22
0$1
,409
,065
8Fe
dera
l Inc
ome
Taxe
s (Cu
rr +
Def
erre
d)$2
,230
,907
$2,3
66,4
31-$
1,42
7,43
2$3
,169
,906
$1,7
80,7
09$4
,950
,615
$224
,862
$5,1
75,4
77IT
C-$
56,5
61$0
-$56
,561
-$56
,561
-$56
,561
Inte
rest
on
Cust
. Dep
osits
$3,9
77$0
$3,9
77$3
,977
$3,9
779
Tota
l Ope
ratin
g Ex
pens
es$1
69,5
46,3
38-$
111,
999,
838
$1,8
08,0
16$5
9,35
4,51
6-$
1,94
4,07
6$5
7,41
0,44
0$2
88,2
00$5
7,69
8,63
9
AFU
DC In
com
e$2
59,4
86$0
$17,
300
$276
,786
-$27
6,78
6$0
$0
Net
Ope
ratin
g In
com
e$1
2,20
2,20
5$2
,576
,769
-$1,
790,
716
$12,
988,
258
$1,9
07,1
28$1
4,89
5,38
6$4
17,6
00$1
5,31
2,98
7
10Ra
te B
ase
$251
,449
,196
$23,
221,
138
$274
,670
,334
-$44
,745
,726
$229
,924
,608
$229
,924
,608
11
Rate
of R
etur
n4.
85%
4.73
%6.
48%
6.66
%
Rate
Bas
eG
ross
Pla
nt$4
79,5
19,1
46$2
2,83
8,60
7$5
02,3
57,7
53-$
29,9
26,3
99$4
72,4
31,3
54Le
ss: D
epr.
Rese
rve
-$20
0,62
5,67
4$4
,401
,670
-$19
6,22
4,00
4-$
1,94
6,05
6-$
198,
170,
060
Net
Pla
nt in
Ser
vice
$278
,893
,472
$27,
240,
277
$306
,133
,749
-$31
,872
,455
$274
,261
,294
CWIP
$10,
231,
437
-$1,
136,
366
$9,0
95,0
71-$
9,09
5,07
1$0
Cash
Wor
king
Cap
ital
$12,
498,
707
-$32
,021
$12,
466,
686
-$6,
451,
201
$6,0
15,4
85M
ater
ials
& S
uppl
ies
$14,
419,
211
$0$1
4,41
9,21
1$0
$14,
419,
211
Prep
aid
Bala
nces
$17,
641,
760
$421
,733
$18,
063,
493
-$44
6,99
5$1
7,61
6,49
8Ac
cum
Def
erre
d In
com
e Ta
xes
-$78
,404
,438
-$3,
272,
485
-$81
,676
,923
$3,1
21,1
96-$
78,5
55,7
27U
nam
ortiz
ed IT
C-$
489,
224
$0-$
489,
224
-$48
9,22
4Cu
stom
er D
epos
its-$
3,34
1,72
9$0
-$3,
341,
729
-$3,
341,
729
Cust
omer
Adv
ance
s$0
$0$0
-$1,
200
-$1,
200
Tota
l Rat
e Ba
se$2
51,4
49,1
96$2
3,22
1,13
8$2
74,6
70,3
34-$
44,7
45,7
26$2
29,9
24,6
08
1/ P
er D
PL S
ched
ule
(JCZ
-S)-1
and
12+
0 U
pdat
ed W
P #6
and
#7.
2/ P
er S
ched
ule
GAW
-3.
3/ P
er S
ched
ule
GAW
-4.
Del
mar
va P
ower
& L
ight
--- G
asO
AG A
djus
ted
Rate
of R
etur
n St
atem
ent
Doc
ket N
o. 1
2-54
6
Schedule GAW-3
Taxes State FederalO&M Depr./Amort Other than Income Income AFUDC
Revenue Expense Expense Income Tax Tax Income Earnings1 Emp. Assoc. Exp. -$31,452 $2,736 $10,050 $18,6652 Reg. Comm. Exp. $241,180 -$20,983 -$77,069 -$143,1283 Salaries & Wages Exp. $640,689 -$55,740 -$204,732 -$380,2174 Exec. Incentive Comp. -$843,110 $73,351 $269,416 $500,3445 Exec. Other Comp. -$14,918 $1,298 $4,767 $8,8536 Uncollectible $301,917 -$26,267 -$96,478 -$179,1737 Injuries & Damages -$16,208 $1,410 $5,179 $9,6198 Medical/Dental/Vision Care $310,059 -$26,975 -$99,079 -$184,0059 Reliability Plant Add. $417,200 -$36,296 -$133,316 -$247,587
10 Bloom Related Investment -$2,261 $197 $723 $1,34211 AMI Plant Investment $700,266 -$60,923 -$223,770 $17,300 -$398,27312 Meter Reading Exp. $1,147,546 -$99,837 -$366,698 -$681,01113 Loss/Gain On Refinancing $209,897 -$18,261 -$67,073 -$124,56314 Investment Tax Credit $50,470 -$50,47015 Affiliate Credit Facilities $118,094 -$10,274 -$37,737 -$70,08316 Tax On OPEB Medicare $11,907 -$1,036 -$3,805 -$7,06617 Depreciation Annualization $382,802 -$33,304 -$122,324 -$227,17418 Interest Sync. -$77,726 -$285,486 $363,21219 Cash Working Capital
Total $1,735,703 $1,888,375 $0 -$388,630 -$1,427,432 $17,300 -$1,790,716
Gross Accumulated Materials Cash Other TotalPlant In Depr./Amort. Deferred & Working Additions/ RateService Reserve CWIP Income Taxes Supplies Capital Deductions Base
1 Emp. Assoc. Exp.2 Reg. Comm. Exp. -$171,456 $421,733 $250,2773 Salaries & Wages Exp.4 Exec. Incentive Comp.5 Exec. Other Comp.6 Uncollectible7 Injuries & Damages8 Medical/Dental/Vision Care9 Reliability Plant Add. $15,167,530 $3,391,400 -$1,822,678 $16,736,252
10 Bloom Related Investment -$386,936 $2,261 $78,195 -$306,48011 AMI Plant Investment $8,058,013 -$846,548 -$1,136,366 -$676,650 $5,398,44912 Meter Reading Exp.13 Loss/Gain On Refinancing $2,031,341 -$825,842 $1,205,49914 Investment Tax Credit15 Affiliate Credit Facilities $182,203 $182,20316 Tax On OPEB Medicare $23,815 -$9,682 $14,13317 Depreciation Annualization -$382,802 $155,628 -$227,17418 Interest Sync.19 Cash Working Capital -$32,021 -$32,021
Total $22,838,607 $4,401,670 -$1,136,366 -$3,272,485 $0 -$32,021 $421,733 $23,221,138
Source: Schedule (JCZ-S)-3 through (JCZ-S)-20.
Delmarva Power & Light --- GasDPL Proposed Adjustments
Docket No. 12-546
DPLAdjustment
Oprerating Income
Rate Base
DPLAdjustment
Sche
dule
GAW
- 4
Com
pany
Taxe
sSt
ate
Fede
ral
Sche
dule
O&
MD
epre
ciat
ion
Oth
er th
anIn
com
eIn
com
eAF
UD
CIte
m
Ref
Reve
nue
Expe
nse
Expe
nse
Inco
me
Tax
Tax
Inco
me
Reve
nue-
- Cus
t Gro
wth
$239
,838
$720
$20,
803
$76,
410
Regu
lato
ry C
omm
issio
n ( R
ate
Case
) Exp
ense
(JCZ-
S)-4
-$80
,433
$6,9
98$2
5,70
2
Sala
ries,
Wag
es &
FIC
A-$
640,
689
$55,
740
$204
,732
Non
-Exe
cutiv
e In
cent
ive
Com
pens
atio
n-$
391,
450
$34,
056
$125
,088
Med
ical
/Den
tal/V
ision
Car
e Ex
pens
es-$
310,
059
$26,
975
$99,
079
Fore
cast
ed A
dditi
ons t
o Re
liabi
lity
Plan
t in
Serv
ice
-$41
7,20
0$3
6,29
6$1
33,3
16
AMI P
lant
-$99
1,44
7$8
6,25
6$3
16,8
17
Met
er R
eadi
ng-$
1,14
7,54
6$9
9,83
7$3
66,6
98
Affil
iate
Cre
dit F
acili
ties
-$11
8,09
4$1
0,27
4$3
7,73
7
Depr
ecia
tion
Annu
aliza
tion
-113
,399
$9,8
66$3
6,23
7
CWIP
/ AFU
DC In
com
e-$
276,
786
Inte
rest
Syn
chro
niza
tion
97,7
1135
8,89
2
Tota
l Ope
ratin
g In
com
e Ad
just
men
ts$2
39,8
38-$
2,68
8,27
1-$
1,52
2,04
6$7
20$4
84,8
12$1
,780
,709
-$27
6,78
6
Com
pany
Gro
ssAc
cum
ulat
edM
ater
ials
Cash
Tota
lSc
hedu
lePl
ant I
nD
epre
ciat
ion
Def
erre
d &
Wor
king
Oth
erCu
stom
erRa
teIte
m
Ref
Serv
ice
Rese
rve
CWIP
Inco
me
Taxe
sSu
pplie
sCa
pita
lAd
ditio
nsAd
vanc
esBa
se
Regu
lato
ry C
omm
issio
n (R
ate
Case
) Am
ortiz
atio
n(JC
Z-S)
-4-$
250,
278
-$25
0,27
8
Fore
cast
ed A
dditi
ons t
o Re
liabi
lity
Plan
t in
Serv
ice
-$15
,167
,530
-$3,
391,
400
$1,8
22,6
78-$
16,7
36,2
52
AMI P
lant
-$14
,758
,869
$1,4
45,3
44$1
,298
,518
-$12
,015
,007
Affil
iate
Cre
dit F
acili
ties
-$18
2,20
3-$
182,
203
CWIP
-$9,
095,
071
-$9,
095,
071
Cash
Wor
king
Cap
ital
-$6,
451,
201
-$6,
451,
201
Prep
aid
Insu
ranc
e-$
14,5
14-$
14,5
14
Cust
omer
Adv
ance
s-$
1,20
0-$
1,20
0
Tota
l Rat
e Ba
se A
djus
tmen
ts-$
29,9
26,3
99-$
1,94
6,05
6-$
9,09
5,07
1$3
,121
,196
$0-$
6,45
1,20
1-$
446,
995
-$1,
200
-$44
,745
,726
Sour
ce:
Sche
dule
s GAW
-5 th
roug
h G
AW-1
9.
Del
mar
va P
ower
& L
ight
--- G
asSu
mm
ary
of O
AG A
djus
tmen
tsD
ocke
t No.
12-
546
Ope
ratin
g In
com
e
Rate
Bas
e
Schedule GAW - 5
RG-R RG-RSH GG TotalI. Customer Growth
Bills Per Books 119,891 1,252,285 112,082DPL YE Customer Bills 119,400 1,261,464 112,524Growth In Bills -491 9,179 442
II. Weather Normalized Usage Before GrowthTotal Weather Normalized Usage (CCF) 2,437,335 74,925,821 37,973,032Actual Bills 119,891 1,252,285 112,082Average Use Per Bill 20.33 59.83 338.80
III. Additional Usage Due to Customer Growth (CCF) -9,982 549,191 149,748
IV. Incremental Usage Rate $0.45802 $0.36754 $0.28421
V. Incremental Revenue -$4,572 $201,850 $42,560 $239,838
Regulatory Tax @0.30% $720
Source: Response to PSC-RR-15.
Delmarva Power & Light --- GasUsage Charge Revenue --- Customer Growth
Docket No. 12-546
Schedule GAW - 6
Operating IncomeDPL Requested Cost of Capital Consultant in Rates $92,600OAG Allowed Expense $46,300 1/Adjustment -$46,300
DPL Requested External Legal Fees in Rates $315,000OAG Allowed Expense $120,000 2/Adjustment -$195,000
Total OAG Rate Case Expense Adjustment -$241,300
Amortization period (yrs) 3
OAG Expense Adjustment -$80,433
Rate Base
Company Requested Capitalization of Rate Case Expense $250,278
OAG Rate Base Adjustment to Reflect Expense Normalization -$250,278
1/ Upper limit of reasonable COC services. 2/ Highest external legal fees from Docket Nos. 11-528,10-237, and 9-414 (rounded up) Per response to PSC-RR-22.
Delmarva Power & Light --- GasRate Case ExpenseDocket No. 12-546
Schedule GAW-7
OAGAdjustment
Remove DPL Forecasted Wages Increases (Jan. 2013 - June 2014) -$607,550
Remove DPL Forecasted FICA Increases (Jan. 2013 - June 2014) -$33,139
Total OAG Adjustment -$640,689
Calculated Per DPL WP#4.1.
Docket No. 12-546Salary, Wages, & FICA Adjustment
Delmarva Power & Light --- Gas
Schedule GAW-8
Remove Non-Executive Incentive Compensation Attributable to Financial Performance -$363,632 1/
Remove FICA & Mcare Employer Contribution @ 7.65% -$27,818
Total OAG Adjustment -$391,450
1/ Per response to PSC-RR-29.
Delmarva Power & Light --- GasNon-Executive Financial Performance Incentive Compensation
Docket No. 12-546
Schedule GAW - 9
Remove Out Of Period (2013) Forecasted Expense Escalations -$310,059 1/
1/ Per Schedule (JCZ-S)-10 and 10.1.
Medical/Dental/Vison care ExpensesDocket No. 12-546
Delmarva Power & Light --- Gas
Schedule GAW-10
Rate BaseEliminate Out of Period Additions (2013) to Plant 1/Gross Plant -$15,167,530Depreciation Reserve -$3,391,400Net Plant -$18,558,930
ADIT $1,822,678
Total Rate Base Adjustment -$16,736,252
Operating IncomeEliminate Out of Period (2013) Depreciation Expense 1/ -$417,200
1/ Per Schedule (JCZ-S)-11.
Delmarva Power & Light --- GasForecasted Additions to Reliability Plant in Service
Docket No. 12-546
Schedule GAW-11
Rate BaseEliminate Amounts Reflected In Books As Of 12/31/12 1/
Gross Plant -$6,700,856Depr. Reserve $598,796Net Plant -$6,102,060
CWIP -$1,136,366
ADIT $621,868
Eliminate Out of Period Proforma Adjustments 1/Gross Plant -$8,058,013Depr. Reserve $846,548Net Plant -$7,211,465
CWIP $1,136,366
ADIT $676,650
Total OAG adjustmentGross Plant -$14,758,869Depr. Reserve $1,445,344Net Plant -$13,313,525
CWIP $0
ADIT $1,298,518
Operating IncomeEliminate Amounts Reflected In Books As Of 12//31/12
Depreciation -$291,181
Eliminate Out of Period Proforma AdjustmentDepreciation -$700,266
Total OAG adjustmentDepreciation -$991,447
1/ Per DPL 12+0 Update WP #12.1
Delmarva Power & LightAMI Plant
Docket No. 12-546
Schedule GAW-12
Eliminate DPL Adjustment To Increase 2012 Meter Reading Expense -$1,147,546 1/
1/ Per Confidential Response & Attachment (b) to AG-A-45.
Delmarva Power & Light --- GasMeter Reading
Docket No. 12-546
Schedule GAW-13
Eliminate Costs Associated With Affiliate (PHI) Credit Facility
Operating IncomeEliminate Claimed Expenses -$118,094
Rate BaseEliminate Unamortized Balance of Affiliate (PHI) Start-UpCost Investment Reflected in DPL Application -$182,203
Affiliate Credit Facilities CostsDocket No. 12-546
Delmarva Power & Light --- Gas
Schedule GAW - 14
DPL Gas ServiceIMU Company Total
Jan-12 $7,596 $13,912 $21,508Feb-12 $7,596 $13,977 $21,573Mar-12 $7,596 $13,980 $21,575Apr-12 $7,596 $13,980 $21,576May-12 $7,596 $13,980 $21,576Jun-12 $7,596 $13,980 $21,576Jul-12 $8,811 $13,980 $22,791
Aug-12 $10,159 $13,980 $24,139Sep-12 $10,378 $13,980 $24,358Oct-12 $12,442 $13,980 $26,422Nov-12 $16,393 $13,980 $30,373Dec-12 $19,735 $13,980 $33,715
Total 2012 $123,493 $167,688 $291,181
DPL Annualization (Based on Dec-12) $236,820 $167,760 $404,580
DPL AMI Depreciation Annualization Adjustment $113,327 $71 $113,399
Eliminate AMI Depreciation Annualization -$113,327 -$71 -$113,399
Source: Response to PSC-RR-41.
Delmarva Power & Light --- GasDepreciation Annualization
Docket No. 12-546
AMI related 2012 Per Books Depreciation
Schedule GAW-15
Revenue (Lead) Net % CWCAmount Lag Days Lag Days Lag Days 365 Days Requirement
DPL Cash Working Capital Request:O&M Expense
Purchased Fuel $104,699,352 63.20 40.71 22.49 6.162% $6,451,201Deferred Fuel $8,501,663 63.20 63.20 0.00 0.000% $0Other Production $2,741,284 63.20 17.33 45.87 12.567% $344,501Transmission $1,669,915 63.20 17.33 45.87 12.567% $209,860Distribution $10,943,398 63.20 17.33 45.87 12.567% $1,375,270Other O&M $18,796,672 63.20 17.33 45.87 12.567% $2,362,201Total O&M Expense $147,352,284 $10,743,033
OtherUtility Taxes $1,974,629 63.20 35.88 27.32 7.485% $147,800FICA $531,806 63.20 12.03 51.17 14.019% $74,555Federal Unemployment $5,978 63.20 76.38 (13.18) -3.611% ($216)State Unemployment $22,340 63.20 76.38 (13.18) -3.611% ($807)Property Taxes $4,302,584 63.20 (90.50) 153.70 42.110% $1,811,800SIT $630,076 63.20 (17.30) 80.50 22.055% $138,962FIT $2,206,259 63.20 58.95 4.25 1.164% $25,689Interest Expense $5,945,890 63.20 90.26 (27.06) -7.414% ($440,810)IOCD $3,977 63.20 182.50 (119.30) -32.685% ($1,300)Preferred Dividends $0 63.20 45.63 17.57 4.814% $0Total Other $15,623,539 $1,755,673Total $162,975,823 $12,498,707
Eliminate Purchased Gas Costs -$6,451,201
Source: DPL 12+0 Update WP #4.
Item
Delmarva Power & Light --- GasCash Working Capital
Docket No. 12-546
Schedule GAW-16
Prepaid Insurance Included In DPL Rate Base $14,514 1/
Eliminate Prepaid Insurance As It Is Also Reflected In CWC -$14,514 2/
1/ Per DPL 12+0 Update WP #3. 2/ Per Response to PSC-RR-10.
Delmarva Power & Light --- GasPrepaid InsuranceDocket No. 12-546
Schedule GAW-17
DPL Customer Advances Reflected In Updated Filing $0
DPL Correction 1/ -$1,200
1/ Per PSC-RR-11.
Delmarva Power & Light --- GasCustomer AdvancesDocket No. 12-546
Schedule GAW-18
DPL Requested CWIP Inclusion In Rate BasePer Books $10,231,437DPL Adjustment 11 -$1,136,366Net DPL Requested CWIP $9,095,071
Eliminate CWIP From Rate Base -$9,095,071
DPL AFUDC Income In RequestPer Books $259,486DPL Adjustment 11 $17,300Net DPL Requested CWIP $276,786
Eliminate AFUDC Income Credit -$276,786
Delmarva Power & Light --- GasConstruction Work In Progress
Docket No. 12-546
Schedule GAW-19
OAG Rate Base Adjustments -$44,745,726 1/
Weighted Cost of Debt 2.51%
OAG Interest Adjustment -$1,123,118
State Income Tax Effect $97,711
Federal Income Tax Effect $358,892
1/ Per Schedule GAW-4.
Delmarva Power & LightInterest Synchronization
Docket No. 12-546
