Summary of July 24th Open Meeting

August 2, 2017

The Public Service Commission of the District of Columbia (Commission) approved seven items before the Commission at its July 24th Open Meeting.

The matters include:

1. ASMT 2017, Assessments for Fiscal Year 2017: These Orders assess public utility companies, competitive local exchange carriers, competitive natural gas suppliers, and competitive electric providers for their percentages of the Commission’s and the Office of the People’s Counsel’s Fiscal Year 2017 appropriated budget. Each company is directed to deposit its share of the appropriated budget to the District of Columbia Treasury within 30 days of the date of receipt of the Orders.

2. Formal Case No. 892, In the Matter of the Joint Application of Broadview Networks, Inc., ATX Licensing, Inc., A.R.C. Networks, Inc., Eureka Telecom, Inc., Broadview Networks Holdings, Inc. and Windstream Holdings, Inc. for Approval to Transfer Indirect Control of the Broadview Licensees: This Order approves the Joint Application of Broadview Networks, Inc., ATX Licensing, Inc., A.R.C. Networks, Inc., Eureka Telecom, Inc., Broadview Networks Holdings, Inc., and Windstream Holdings, Inc., for the transfer of indirect control of Broadview Licensees to Windstream.

3. Formal Case No. 1115, Application of Washington Gas Light Company for Approval of a Revised Accelerated Pipe Replacement Program: This Order approves the Final Agreed-Upon Procedures (AUP) filed by Washington Gas Light Company on May 15, 2017. The AUP auditors shall begin the engagement immediately.

4. Formal Case No. 1119, In the Matter of the Joint Application of Exelon Corporation, Pepco Holdings, Inc., Potomac Electric Power Company, Exelon Energy Delivery Company, LLC and New Special Purpose Entity, LLC for Authorization and Approval of Proposed Merger Transaction: This Order grants the Office of the People’s Counsel for the District of Columbia’s (OPC) Motion for Leave to submit Comments on Pepco’s Root-Cause Analysis Report (Pepco’s Report) and accepts OPC’s Comments. The Commission further directs that all concerns with Pepco’s Report be addressed by Pepco, OPC, and Commission Staff at future PIWG meetings, and Pepco shall supplement the Report and file it with the Commission within 90 days from the date of this Order.

5. Formal Case No. 1142, In the Matter of the Merger of AltaGas Ltd. and WGL Holdings, Inc.: This Order establishes the Public Interest Factors to be considered in this merger proceeding. The Public Interest Factors are included in Appendix A to this Order. The Commission also establishes the procedural schedule, which is attached as Appendix B to this Order. To take into account the adopted procedural schedule, the Commission waives certain deadlines in the Commission’s Rules of Practice and Procedure for this proceeding. For this proceeding only, the Commission delegates to the General Counsel the authority to issue orders on uncontested procedural matters. Finally, the Commission provides further guidance relating to filing requirements and the evidentiary hearing and this case shall be classified as an “other investigation” for purposes of D.C. Code § 2 34-912.

6. Formal Case No. 1143, In the Matter of the Commission’s Consideration of a Demand Management Program for Electric Vehicle Charging in the District of Columbia: This Order grants the Petition to Intervene of the Apartment and Office Building Association of Metropolitan Washington, Tesla, Inc., the District of Columbia Government, Greenlots, Sierra Club, and DC Solar United Neighborhoods. All intervenors are entitled to participate fully in this proceeding.

7. Formal Case No. 1139, In the Matter of the Application of the Potomac Electric Power Company (Pepco) to Increase Existing Retail Rates and Charges for Electric Distribution Services: This Order authorizes reduces Pepco’s rate request to $36.888 million, which cuts Pepco’s request by 52%. For the typical residential consumer, this will increase the monthly bill by $2.09. However, the $2.09 increase will be fully offset for all residential customers, including Master Meter Class (Apartment Building customers), with the use of $15 million of Merger-provided Customer Base Rate Credits (CBRC) resulting in a $0 increase for two years. Similarly, the Commission is utilizing $2.3 million of the CBRC to give significant rate relief for certain small commercial class customers. This decision reduces Pepco’s requested return on equity (ROE) from 10.60% to 9.5% which provides a fair and appropriate return, and will allow Pepco to obtain any necessary capital investment and maintain its investment-grade credit rating which is important because in deciding any rate case the Commission must consider both the interests of ratepayers and the needs of a private investor-owned utility to attract investors and raise capital. Having a financially healthy utility that can attract investors and acquire debt at low interest rates is in the best interest of all District ratepayers.