Morgan Lewis MAR March 27, 2014 VIA FEDERAL EXPRESS

Transcription

1 Morgan, Lewis & Bockius LLP 1701 Markel Street Philadelphia, PA Tel: Fax: Morgan Lewis C O U N S E L O R S AT LAW Thomas P. Gadsden Partner tgadsden@morganlewis.com March 27, 2014 VIA FEDERAL EXPRESS Rosemary Chiavetta, Secretary Pennsylvania Public Utility Commission Commonweallh Keystone Building 400 North Street ' Harrisburg, PA MAR PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU Re: Joint Petition of Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company for Approval of Their Default Service Programs Docket Nos. P , P P and P Dear Secretary Chiavetta: Enclosed for filing is an original Joint Petition for Partial Settlement ("Joint Petition") in the above-captioned matter. A CD containing the Joint Petition in PDF format is also enclosed. Pursuant to 52 Pa. Code 1.11(a)(2), the enclosed Joint Petition shall be deemed Filed on March 27, 2014, which is the date it was deposited with Federal Express as shown on the Federal Express delivery receipt. As evidenced by the attached Certificale of Service, copies of the Joint Petition are being served on Administrative Law Judge Susan D. Colwell, and all parties of record. Also enclosed is an additional copy of this letter, which we request be date-stamped as evidence of filing and returned to us in the stamped, prc-addrcsscd envelope provided. Sincerely, Thomas P. Gadsden TPG/lp Enclosures Almaty Beijing Boston Brussels Chicago Dallas Dubai' Frankfurt Harrisburg Houston Irvine London Los Angeles Miami Moscow New York Palo Alto Paris Philadelphia Pittsburgh Princeton San Francisco Tokyo Washington Wilmington DU 1/7X 'In associalion wiih Mohammed Buhashem Ao'vocates 4 Legal Consullanls

2 BEFORE THE, PENNSYLVANIA PUBLIC UTILITY COMMISSION JOINT PETITION OF METROPOLITAN EDISON COMPANY, PENNSYLVANIA ELECTRIC COMPANY, PENNSYLVANIA POWER COMPANY AND WEST PENN POWER COMPANY FOR APPROVAL OF THEIR DEFAULT SERVICE PROGRAMS DOCKET NOS. P I368 P P P JOINT PETITION FOR PARTIAL SETTLEMENT VOLUME I OF II MAR 27 ZOH March 27, 2014

3 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION JOINT PETITION OF METROPOLITAN EDISON COMPANY, PENNSYLVANIA ELECTRIC COMPANY, PENNSYLVANIA POWER COMPANY AND WEST PENN POWER COMPANY FOR APPROVAL OF THEIR DEFAULT SERVICE PROGRAMS DOCKET NOS. P P P P I378 JOINT PETITION FOR PARTIAL SETTLEMENT Joint Petition for Partial Settlement VOLUME I Exhibit A Exhibit B Exhibit C Exhibit D West Penn Power Company GS-30 Rate Schedule Bidding Rules for Fixed-Price and Hourly-Priced Auctions to Procure Default Service Products Under Default Service Program DSP-HI for Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company Procurement Schedule (Residential and Commercial Classes) Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company Default Service Supplier Master Agreement VOLUME II Exhibit E-1 Exhibit E-2 Metropolitan Edison Company Price to Compare Default Service Rider Pennsylvania Electric Company Price to Compare Default Service Rider

4 Exhibit E-3 Pennsylvania Power Company Price to Compare Default Service Rider Exhibit E-4 West Penn Power Company Tariff No. 39 Price to Compare Default Service Rider Exhibit F-l Exhibit F-2 Exhibit F-3 Metropolitan Edison Company Hourly Pricing Default Service Rider Pennsylvania Electric Company Hourly Pricing Default Service Rider Pennsylvania Power Company Hourly Pricing Default Service Rider Exhibit F-4 West Penn Power Company Tariff No. 39 Hourly Pricing Default Service Rider Exhibit F-5 West Penn Power Company Tariff No. 37 Hourly Pricing Default Service Rider Exhibit G-l Exhibit G-2 Exhibit G-3 Metropolitan Edison Company Default Service Support Rider Pennsylvania Electric Company Default Service Support Rider Pennsylvania Power Company Default Service Support Rider Exhibit G-4 West Penn Power Company Tariff No. 39 Default Service Support Rider Exhibit G-5 West Penn Power Company Tariff No. 37 Default Service Support Rider Exhibit II I Exhibit H-2 Metropolitan Edison Company Electric Generation Supplier Coordination Tariff Page Nos and Appendix A Pennsylvania Electric Company Electric Generation Supplier Coordination Tariff Page Nos and Appendix A -H-

5 Exhibit H-3 Exhibit H-4 Statement A Statement B Statement C Statement D Statement E Statement F Statement G Statement 11 Statement 1 Pennsylvania Power Company Electric Generation Supplier Coordination Tariff Page Nos and Appendix A West Penn Power Company Electric Generation Supplier Coordination Tariff Page Nos. 24, 27, 29 and Appendix A Statement in Support of Joint Petition for Partial Settlement of Metropolitan Edison Company, Pennsylvania Electric Company, Penn Power Company and West Penn Power Company Statement in Support of Joint Petition for Partial Settlement of the Bureau of Investigation and Enforcement Statement in Support of Joint Petition for Partial Settlement of the Office of Consumer Advocate Statement in Support of Joint Petition for Partial Settlement of the Office of Small Business Advocate Statement in Support of Joint Petition for Partial Settlement of the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania Statement in Support of Joint Petition for Partial Settlement of Exelon Generation Company, LLC Statement in Support of Joint Petition for Partial Settlement of First Energy Solutions Corp. Statement in Support of Joint Petition for Partial Settlement of the Met- Ed Industrial Users Group, the Penelec Industrial Customer Alliance, the Penn Power Users Group and West Penn Power Industrial Intervenors Statement in Support of Joint Petition for Partial Settlement of the Retail Energy Supply Association -///-

6 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION JOINT PETITION OF METROPOLITAN EDISON COMPANY, PENNSYLVANIA ELECTRIC COMPANY, PENNSYLVANIA POWER COMPANY AND WEST PENN POWER COMPANY FOR APPROVAL OF THEIR DEFAULT SERVICE PROGRAMS DOCKET NOS. P P P P JOINT PETITION FOR PARTIAL SETTLEMENT MAR 2 7 Z014 PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU March 27,2014

7 TABLE QF CONTENTS Page I. BACKGROUND 2 II. TERMS AND CONDITIONS OF SETTLEMENT 5 A. Procurement And Implementation Plans 5 (1) Term 5 (2) Procurement Groups 6 (3) Residential And Commercial Class Procurement 6 (4) Industrial Class Procurement 8 B. Supplier Master Agreement 9 C. Alternative Energy Portfolio Standards Act 10 D. Contingency Plans 10 (1) Full Requirements 10 (2) AEPS Requirements 11 E. Independent Evaluators 11 F. Rate Design And Cost Recovery 12 (1) Price To Compare Default Service Rate Rider 12 (2) Hourly Pricing Default Service Rider 13 (3) Default Service Support Rider 14 (4) Solar Photovoltaic Requirements Charge Rider 15 (5) Reconciliation 15 (6) Allocation Of Default Service Administrative Costs 16 (7) Time-of-Use Rates 16 (8) Supplier Tariff Changes 16 G. Customer Referral Program 16 (1) Program Administration 16 (2) Stakeholder Process 17 (3) Cost Recovery 18 H. Affiliate Relations 19 I. Request For Waivers 19 III. THE SETTLEMENT IS IN THE PUBLIC INTEREST 19 IV. ADDITIONAL TERMS AND CONDITIONS 20 -/-

8 EXHIBITS AND STATEMENTS IN SUPPORT Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E-1 Exhibit E-2 Exhibit E-3 West Penn Power Company GS-30 Rate Schedule Bidding Rules for Fixed-Price and Hourly-Priced Auctions to Procure Default Service Products Under Default Service Program DSP-III for Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company Procurement Schedule (Residential and Commercial Classes) Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company Default Service Supplier Master Agreement Metropolitan Edison Company Price to Compare Default Service Rider Pennsylvania Electric Company Price to Compare Default Service Rider Pennsylvania Power Company Price to Compare Default Service Rider Exhibit E-4 West Penn Power Company Tariff No. 39 Price to Compare Default Service Rider Exhibit F-l Exhibit F-2 Exhibit F-3 Metropolitan Edison Company Hourly Pricing Default Service Rider Pennsylvania Electric Company Hourly Pricing Default Service Rider Pennsylvania Power Company Hourly Pricing Default Service Rider Exhibit F-4 West Penn Power Company Tariff No. 39 Hourly Pricing Default Service Rider Exhibit F-5 West Penn Power Company Tariff No. 37 Hourly Pricing Default Service Rider Exhibit G-l Exhibit G-2 Metropolitan Edison Company Default Service Support Rider Pennsylvania Electric Company Default Service Support Rider -u-

9 Exhibit G-3 Pennsylvania Power Company Default Service Support Rider Exhibit G-4 West Penn Power Company Tariff No. 39 Default Service Support Rider Exhibit G-5 West Penn Power Company Tariff No. 37 Default Service Support Rider Exhibit H-l Exhibit H-2 Exhibit H-3 Exhibit H-4 Metropolitan Edison Company Electric Generation Supplier Coordination Tariff Page Nos and Appendix A Pennsylvania Electric Company Electric Generation Supplier Coordination Tariff Page Nos and Appendix A Pennsylvania Power Company Electric Generation Supplier Coordination Tariff Page Nos and Appendix A West Penn Power Company Electric Generation Supplier Coordination Tariff Page Nos. 24, 27, 29 and Appendix A Statement A Statement in Support of Joint Petition for Partial Settlement of Metropolitan Edison Company, Pennsylvania Electric Company, Penn Power Company and West Penn Power Company Statement B Statement in Support of Joint Petition for Partial Settlement ofthe Bureau of Investigation and Enforcement Statement C Statement in Support of Joint Petition for Partial Settlement of the Office of Consumer Advocate Statement D Statement in Support of Joint Petition for Partial Settlement of the Office of Small Business Advocate Statement E Statement in Support of Joint Petition for Partial Settlement of the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania Statement F Statement in Support of Joint Petition for Partial Settlement of Exelon Generation Company, LLC Statement G Statement in Support of Joint Petition for Partial Settlement of First Energy Solutions Corp.

10 Statement H Statement I Statement in Support of Joint Petition for Partial Settlement ofthe Met-Ed (ndustrial Users Group, the Penelec Industrial Customer Alliance, the Penn Power Users Group and West Penn Power Industrial Intervenors Statement in Support of Joint Petition for Partial Settlement of the Retail Energy Supply Association

11 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION JOINT PETITION OF METROPOLITAN EDISON COMPANY, PENNSYLVANIA ELECTRIC COMPANY, PENNSYLVANIA POWER COMPANY AND WEST PENN POWER COMPANY FOR APPROVAL OF THEIR DEFAULT SERVICE PROGRAMS DOCKETNOS. P-20I P P P JOINT PETITION FOR PARTIAL SETTLEMENT TO THE HONORABLE SUSAN D. COLWELL, ADMINISTRATIVE LAW JUDGE: Metropolitan Edison Company ("Met-Ed"), Pennsylvania Electric Company ("Penelec"), Pennsylvania Power Company ("Penn Power") and West Penn Power Company ("West Penn") (collectively, "the Companies"); the Bureau of Investigation and Enforcement ("I&E"); the Office of Consumer Advocate ("OCA"); the Office of Small Business Advocate ("OSBA"); the Met-Ed Industrial Users Group ("MEIUG"), the Penelec Industrial Customer Alliance ("PICA"), the Penn Power Users Group ("PPUG") and West Penn Power Industrial Intervenors ("WPPII") (collectively, "Industrial Intervenors"); the Retail Energy Supply Association ("RESA"); Exelon Generation Company, LLC ("ExGen"); FirstEnergy Solutions Corp. ("FES"); and the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania ("CAUSE-PA") (collectively, the "Joint Petitioners"), by their respective counsel, submit this Joint Petition For Partial Settlement ("Settlement") of all but one issue in the above-captioned proceeding and request that the Administrative Law Judge approve the Settlement without modification. 1 The item reserved for litigation involves whether the Companies should assume PJM Interconnection, 1 Dominion Retail, Inc. d/b/a Dominion Energy Solutions and Interstaie Gas Supply, Inc. (collectively, "Dominion/IGS"), Direcl Energy Services, LLC ("Direct Energy"), Duquesne Light Energy, LLC ("DLE"), NextEra Energy Services Pennsylvania, LLC and NextEra Energy Power Marketing, LLC (collectively, "NextEra"), the Pennsylvania State University ("PSU") and Washington Gas Energy Services, Inc. ("WGES"), which are parties to this proceeding, have authorized the Joint Petitioners to represent that they do not oppose the Settlement.

12 L.L.C. ("PJM") charges for Network Integration Transmission Service ("NITS") for all customer load (shopping and non-shopping customers) and recover those costs on a non-bypassablc basis." In support of this Settlement, the Joint Petitioners state as follows: I. BACKGROUND 1. On November 4, 2013, the Companies filed the above-captioned petition (the "DSP III Petition") requesting that the Pennsylvania Public Utility Commission (the "Commission") approve their proposed default service programs (the "Programs") for the period June 1, 2015 through May 31, 2017 in accordance with the Electricity Generation Customer Choice and Competition Act, 66 Pa.C.S ct seq. (the "Competition Act"). 2. The Programs set forth in the Companies' DSP III Petition were designed to satisfy their obligation to furnish adequate and reliable service to default service customers at the least cost over time by procuring a prudent mix of long-term, short-term and spot market generation supplies. As explained in the DSP III Petition, the Companies proposed very limited changes to their existing, Commission-approved default service programs Accompanying their DSP III Petition, the Companies filed the supporting data required by 52 Pa. Code 53.52, as well as the prepared direct testimony and accompanying 2 The Joint Petitioners agree that the NITS charges reserved for litigation consist of the following PJM billing line items: (1) 1100and2100: Network Integration Transmission Service; (2) 1101 and2101: Low-Voltage Network Integration Transmission Service; (3) 1102 and 2102: Network Integration Transmission Service (exempt); (4) 1104 and 2104: Network Integration Transmission Service Offset; and (5) 1106 and 2106: Non-Zone Network Integration Transmission Service. 3 On August 16, 2012, the Commission issued an Opinion and Order approving the Companies' current default service programs, with certain modifications, and also directing the Companies to submit new proposals for various elements of their Retail Market Enhancement ("RME") Programs. See Docket Nos. P (Met-Ed), P (Penelec), P (Penn Power), and P (West Penn) (collectively, the "DSP II Proceeding"). In response lo the August 16 Order, the Companies submitted a Revised Default Service Plan Compliance Filing and also Revised RME Proposals. The Compliance Filing was approved by Secretarial Letter issued November 8, The Revised RME Proposals were approved, with modifications, by Order entered February 15, The Companies filed their Second Revised RME Proposals to address the February 15 Order as well as a separate Order entered on April 4, 2013 suspending the implementation of Retail Opt-In Programs. The Commission approved the Second Revised RME Proposals by Order entered May 23, 2013.

13 exhibits of: Kevin M. Siedt (Met-Ed/Penclcc/Penn Power/West Penn Statement No. 1); Robert B. Reeping (Met-Ed/Pcnclec/Penn Power/West Penn Statement No. 2) and James D. Reitzcs (Met-Ed/Penelec/Penn Power/West Penn Statement No. 3). 4. The Companies notified their customers of the filing ofthe DSP III Petition by publishing notices in major newspapers serving their respective service areas, which described the Programs and informed customers about where to obtain copies of the filing and the procedure for submitting comments or complaints with the Commission, and issued a press release. The notices referred interested persons to the Companies' websites, where a copy of the entire filing was available for review. In addition, the Companies served their DSP III Petition on the OCA, the OSBA, I&E, PJM, the Industrial Intervenors, RESA, PSU and all electric generation suppliers ("EGSs") registered to provide service in their respective service territories. 5. On November 7, 2013, Administrative Law Judge Susan D. Colwell (the "ALJ") issued a Prehearing Conference Order scheduling a Prehearing Conference for December 4, Petitions to Intervene were filed by CAUSE-PA, Direct Energy, Dominion/IGS, DLE, Exelon, FES, the Industrial Intervenors, PSU, RESA, NextEra, and WGES. The OCA filed a Notice of Intervention and Answer. The OSBA filed a Notice of Appearance, Notice of Intervention, Public Statement and Answer. CAUSE-PA and the Industrial Intervenors also filed Answers to the DSP III Petition. I&E filed a Notice of Appearance evidencing its participation in this proceeding. 7. A Prehearing Conference was held on December 4, 2014, at which a schedule was established for the submission of testimony and the conduct of hearings. Specifically, and 3

14 consistent with Commission practice, a schedule was adopted whereby all case-in-chief, rebuttal and surrebuttal testimony would be submitted in writing in advance of hearings. Evidentiary hearings were scheduled for March 4-7, 2014, at which all testimony and exhibits would be placed in the record and all witnesses presented for cross-examination, if any, thereon. The ALJ thereafter issued a Scheduling Order establishing this schedule. 8. On January 16, 2014, Dominion/IGS, Industrial Intervenors, FES, RESA, OSBA and OCA submitted a total of seven written statements and accompanying exhibits. On February 7, 2014, the Companies, Exelon, Industrial Interveners, RESA, and OCA submitted nine statements constituting their rebuttal testimony in this case. On February 21, 2014, the Companies, Dominion/IGS, FES, Industrial Intervenors, RESA, OSBA and OCA submitted nine surrebuttal statements. 9. After the submission of written testimony, the parties engaged in discussions to try to achieve a settlement of some or all ofthe issues in this case. As a result of those negotiations, the Joint Petitioners were able to reach the Settlement set forth herein and agree to revised default service programs consistent with the Companies' DSP III Petition, as modified herein ("Revised DSP Programs"). 10. At the March 6, 2014 hearing, the parties advised the ALJ that a settlement of all but one issue had been achieved. 4 In addition, the Companies, Exelon, the Industrial Intervenors and RESA submitted five written rejoinder statements. Following cross examination of the Companies' witness Kevin M. Siedt on the one remaining issue, the ALJ admitted, by stipulation, all other previously filed statements of testimony and exhibits. ''Based on the parlies' representation that settlement discussions were ongoing, the ALJ canceled the hearings scheduled for March 4-5, 2014.

15 II. TERMS AND CONDITIONS OF SETTLEMENT 11. The Settlement consists of the following tenns and conditions: A. Procurement And Implementation Plans (1) Term 12. The Companies' Revised DSP Programs shall each have a term of two years, beginning June 1, 2015 and ending May 31, 2017 ("DSP III Term"). 13. In the event of the passage of legislation that has the effect of fundamentally changing the provision of default service in Pennsylvania in a manner that materially impacts the remainder ofthe Revised DSP Programs, the Companies will, within fifteen business days ofthe enactment of such legislation, confer with the Joint Petitioners. 14. After obtaining the Joint Petitioners' input, the Companies will, if necessary to comply with such legislation, petition the Commission for authorization to suspend or modify any procurement solicitation events scheduled, but not yet conducted, under the Revised DSP Programs, or seek such other declaratory guidance as deemed appropriate, in order to implement the new default service policy consistent with the directives of the legislation. In such event, the Companies will seek input and approval from the Commission on the provision of default service for the remainder ofthe Revised DSP Programs. Nothing within this paragraph creates any additional rights in the parties to petition to modify or terminate contracts that have been executed prior to the enactment of such legislation.

16 (2) Procurement Groups 15. The Companies' default service customers shall be divided into three classes for purposes of default service procurement: the residential class, the commercial class, and the industrial class. 16. The Companies will maintain the same residential and commercial class definitions that were approved by the Commission in the DSP II Proceeding. 17. Met-Ed, Penelec and Penn Power will maintain the same industrial class definitions that were approved by the Commission in the DSP II Proceeding. 18. The Joint Petitioners agree that the West Penn industrial class definition that was approved by the Commission in its DSP II Proceeding is reasonable, subject to the following revision. The West Penn industrial class shall include customers with interval meters that are served under Rate Schedule GS-30 and have billing demands that are equal to or exceed 400 kw. Administrative costs associated with expansion of the West Penn industrial class will be included in the default service rates established pursuant to West Pemfs Hourly Pricing Default Service Rider ("HPS Rider"). 19. Attached as Exhibit A is a revised West Penn Rate Schedule GS-30 to reflect the expansion of the industrial procurement class set forth in this Settlement. Exhibit A has been reviewed and found acceptable by the Joint Petitioners. (3) Residential And Commercial Class Procurement 20. The Companies will procure 100% of the supply required to serve residential and commercial default service customers during the DSP IH Term through a descending clock auction ("DCA") for full requirements service. Winning suppliers will bid on 6

17 "tranches" corresponding to a percentage of the actual residential and commercial default service customer load and be responsible for fulfilling all the associated requirements of a load serving entity ("LSE") under their agreements with PJM, including energy, capacity, transmission, 5 ancillary services, PJM administrative expenses, as well as providing all necessary alternative energy credits described in Paragraphs 33 and 34, infra, for compliance with Pennsylvania's Alternative Energy Portfolio Standards ("AEPS") Act. 73 P.S et seq. 21. Winning suppliers will schedule the delivery of these products to the Met-Ed Zone [PJM designation "METED"] for Met-Ed products, the Penelec Zone [PJM designation "PENELEC"] for Penelec products, the Penn Power Zone [PJM designation "Penn Power Aggregate"] for Penn Power products and the West Penn Zone [PJM designation "APS"] for West Penn products in PJM. A winning supplier must be a LSE within PJM and comply with all regulations, business rules, scheduling protocols and all other aspects of doing business within PJM. 22. The Joint Petitioners agree to the rules for the DCA attached to the Joint Petition as Exhibit B. Exhibit B is a revised version of Companies' Exhibit RBR-2 to reflect the procurement plan and products set forth in this Settlement. 23. Each residential class tranche is a full requirements, load-following product that consists of a 95% fixed price portion and a 5% variable price spot portion. The 5% spot portion will be priced at the hourly PJM real-time zonal locational marginal price ("LMP") for each Company plus a $20 per megawatt-hour ("MWh") adder to cover the costs of other 5 These transmission requirements exclude Regional Transmission Expansion Plan ("RTEP") charges. Expansion Cost Recovery Charges ("ECRCs"), Reliability Must Run {"RMR") charges and other charges associated with generation deactivation. 7

18 supply components associated with serving the contracted load, including capacity, ancillary services, AEPS compliance, and other costs. The fixed price portion will be established through the Companies' DCA. 24. Contracts for 50% of the residential class load will have tenns of twelve months, and contracts for the remaining 50% will have terms of twenty-four months. 25. The full requirements contracts for the commercial class will include a fixed price for 100% ofthe supply and will be procured through DCAs in the same manner and at the same time as the residential class. 26. The commercial class full requirements product mix will be comprised of three month contracts (28%), twelve month contracts (36%) and twenty-four month contracts (36%). 27. The procurement tcrms and schedule for the residential and customer class contracts are set forth in Exhibit C. (4) Industrial Class Procurement 28. The industrial class product is an hourly-priced service product based upon PJM real-time zonal hourly market prices. Suppliers will bid for the right to serve a portion of the hourly-priced service load for twelve-month terms (commencing on either June 1, 2015 or June 1, 2016). Winning suppliers will be paid the winning price bid in the hourly-priced auction, the hourly PJM real time zonal LMP, and a fixed adder of $4/MWh to capture the estimated costs of other supply components, including capacity, ancillary services, AEPS compliance and other costs.

19 29. The Companies will procure default service supply for the industrial class load through two separate auctions for twelve-month contracts in January 2015 and January B. Supplier Master Agreement 30. Attached as Exhibit D to the Joint Petition is the fonn of the Supplier Master Agreement ("SMA") that each Company will execute with wholesale suppliers that are successful bidders in the Companies' default service supply procurements. The SMA is based on the latest draft of the uniform supplier master agreement developed by the Commission's Office of Competitive Market Oversight ("OCMO") procurement collaboration working group. 31. Residential and Commercial SMAs will include provisions that adjust the price paid to default service suppliers for each MWh of load by a seasonal billing factor. One factor applies in the summer months (June-August) and the other seasonal billing factor applies in the non-summer months (September-May). The seasonal billing factors do not apply to threemonth products. The seasonal billing factors set forth in the Residential and Commercial SMAs shall be updated to reflect the average energy price differential across all four Companies' PJM Zones for the twelve month period ending August 31, If the nonsummer average energy price is equal to or greater than the summer average, the seasonal billing factors will be set equal to Exhibit D is a revised version of the Companies' Exhibit KMS-1 to reflect clarifications to the seasonal billing factors and reduction in the fixed adder for hourly-priced service set forth in this Settlement. Exhibit D has been reviewed and found acceptable by the Joint Petitioners.

20 C. Alternative Energy Portfolio Standards Act 33. For all customer classes, the Companies' non-solar AEPS requirements will be fulfilled by default service suppliers through the full-requirements contracts. Winning full requirements suppliers in the Met-Ed, Penelec and Penn Power service territories will be required to supply alternative energy credits ("AECs") to satisfy all Tier I (except solar photovoltaic) and Tier II AEPS requirements associated with the load they serve, including the increasing annual percentage requirements. In the West Penn service territory, default service suppliers will be responsible for all Tier I and Tier II AEPS requirements (including solar photovoltaic requirements) less any AECs that are allocated to the suppliers on a load-ratio basis from existing long-term purchases made by West Penn. All other AEPS requirements shall be those in effect at the time the SMAs are executed for that load. 34. Met-Ed, Penelec and Penn Power will conduct a request for proposals ("RFP"), consistent with the procurement process approved in the DSP II Proceeding, to solicit bids for the provision of a fixed number of solar photovoltaic alternative energy credits ("SPAECs") based on each Company's most recent distribution load forecasts. The Joint Petitioners agree to the use of the RFP rules for SPAEC procurements and the agreement, which each winning supplier in the Met-Ed, Penelec and Penn Power service territories will be required to execute, set forth in Companies' Exhibit RBR-4. D. Contingency Plans (1) Full Requirements 35. The Joint Petitioners agree that the Companies will continue utilizing the contingency plans approved in the DSP II Proceeding. Specifically, in the event that the default service load for any class is not fully subscribed or if the Commission rejects the bid 10

21 results from a solicitation, the Companies will rcbid the unfilled tranches in the next scheduled procurement for which there is sufficient calendar time to include the tranches. For any unfilled tranches still remaining, the Companies will purchase the necessary physical supply for the remaining tranches for that class through PJM-administered markets. The Companies will not enter into hedging transactions to attempt to mitigate the associated price or volume risks to serve such unfilled tranches. 36. The Joint Petitioners agree that, in the event a winning bidder defaults prior to the start of or during the delivery period, the Companies will offer the unfilled tranches to the other qualified suppliers. If this is unsuccessful and a minimum of thirty calendar days exists prior to the start of the delivery period, the tranches will be bid out in a separate solicitation. If insufficient time exists to conduct an additional solicitation, or ifthe supplemental solicitation is unsuccessful, the Companies will supply the tranches using PJM-administered real-time markets. (2) AEPS Requirements 37. The Joint Petitioners agree that in the event that a SPAEC solicitation held by Met-Ed, Penelec or Penn Power is not fully subscribed, the Commission rejects the bid results from a solicitation, or any winning supplier defaults before or during a delivery period, Met- Ed, Penelec or Penn Power will conduct short-term procurements at market prices to ensure AEPS compliance until such time as the Commission approves an alternative mechanism. E. Independent Evaluators 38. The Joint Petitioners agree to the appointment of CRA International, Inc. d/b/a/ Charles River Associates ("CRA") as the independent third-party evaluator for the Companies' default service procurements. 11

22 39. The Joint Petitioners agree to the appointment of The Brattle Group as the independent third-party evaluator for SPAEC procurements. F. Rate Design And Cost Recovery (1) Price To Compare Default Service Rate Rider 40. The Companies will continue to recover the cost of default service for the residential and commercial classes through their Price to Compare Default Service Rate Riders ("PTC Riders") approved by the Commission in the DSP II Proceeding. Default service rates established pursuant to the PTC Riders will continue to consist of a single per-kwh energy charge, which changes quarterly. These rates will continue to recover: (1) generation costs, transmission costs (excluding RTEP charges, ECRCs and other non-market based ("NMB") costs described in Paragraph 48, infra), and ancillary service costs; (2) supply management and administrative costs, as provided in 52 Pa. Code ; and (3) applicable taxes. In addition, the default service rates will include a quarterly reconciliation component, or "E factor," to recoup or refund, as applicable, under or over-collections from prior periods. 41. The time for filing PTC Rider rates with the Commission will be changed from thirty days prior to the effective date of such rate changes to the later of forty-five days prior to the effective date or seven days after the last supply auction. 42. The Joint Petitioners agree that the Companies shall be pennitted to file the PTC Riders set forth in Exhibits E-1 through E-4 to the Joint Petition to become effective as of June 1, 2015, subject to resolution ofthe issue related to NITS. 6 6 'Hie electric service tariff riders and supplier tariffs attached to this Joint Petition do not change the Companies' current treatment of PJM charges for NITS. For default service, these costs are embedded in the Companies' Price- 12

23 (2) Hourly Pricing Default Service Rider 43. The Companies will continue to use the HPS Rider approved by the Commission in the DSP II Proceeding to recover the cost of default service for industrial class customers. The HPS Rider may also be elected, on a voluntary basis, by qualifying commercial customers that have interval metering in place. Default service rates established pursuant to the HPS Rider will continue to be based upon the PJM hourly LMP for each Company's respective PJM-designated transmission zone plus associated costs, such as capacity, ancillary services, PJM administrative expenses and costs to comply with AEPS requirements that are incurred to provide HPS. The default service rates also will include an E-factor to reconcile costs and revenues on a quarterly basis. 44. The definition of HPAHC shall be renamed HPom and will represent an estimate ofthe cost to default service suppliers in providing ancillary services and other supply components. HPom will be set equal to $0,004 per kwh and will be adjusted for losses. 45. The time for filing HPS Rider rates with the Commission will be changed from thirty days prior to the effective date of such rate changes to the later of forty-five days prior to the effective date or seven days after the last supply auction. 46. The Joint Petitioners agree that the Companies shall be pennitted to file the HPS Riders set forth in Exhibits F-l through F-5 to the Joint Petition to become effective as of June 1, 2015, subject to resolution of the issue related to NITS. to-compare ("PTC"). EGSs serving shopping customers, as LSEs, bear these costs. The Companies will address any Commission determinations regarding NITS in a subsequent compliance filing. 13

24 (3) Default Service Support Rider 47. Each Company's tariff will include a Default Service Suppiy Rider ("DSSR") that imposes non-bypassable charges to recover the same categories of costs approved by the Commission in the DSP II Proceeding, with the modifications described below. The Joint Petitioners agree that the Companies shall be pennitted to file the DSSRs set forth in Exhibits G-l through G-5 to the Joint Petition to become effective as of June I, 2015, subject to resolution ofthe issue related to NITS. (a) Non-Market Based ("NMB") Charges 48. The NMB transmission charge component of the DSSR shall be revised to include the following costs (collectively, "New NMB Charges"): (1) PJM charges associated with reliability must run ("RMR") unit declarations and deactivation of plants for which charges are set after the approval of the Revised DSP Programs by the Commission; (2) historical out of market tie line, generation and retail customer meter adjustments; and (3) unaccounted for energy. 49. Wholesale default service suppliers and EGSs, however, will continue to be responsible for PJM charges associated with RMR generating unit declarations and deactivation of plants designated before the Commission's approval of the Revised DSP Programs, as those charges may change over time. 50. The Joint Petitioners agree that the New NMB Charges will no longer be recovered through the default service rates established pursuant to the PTC and HPS Riders and, instead, will be recovered through the Companies' non-bypassable DSSRs. The New NMB Charges will be allocated based on the customer class aggregate Net System Peak Load 14

25 ("NPSL") and will be charged to residential and commercial customers on an energy basis and to industrial customers on a demand basis. (b) Uncollectible Expense 51. Effective June 1, 2015, the uncollectible expense associated with the provision of hourly-priced service to industrial customers will no longer be recovered through the DSSR and will instead be recovered under the default service rates established pursuant to the HPS Riders. 52. At the time of West Penn's next base rate case, the Companies commit to propose the unbundling of all default service-related uncollectible accounts expense and uncollectible accounts expense associated with the West Penn Purchase of Receivables program in a manner substantially similar to the unbundling of those expenses for Met-Ed, Penelec and Penn Power. (4) Solar Photovoltaic Requirements Charge Rider 53. To recover the costs attributable to complying with solar AEPS requirements, the Companies will continue to use the non-bypassable Solar Photovoltaic Requirements Charge Rider ("SPVRC Rider") approved by the Commission in the Companies' DSP 11 Proceeding. (5) Reconciliation 54. The Companies will maintain the same E-factor reconciliation mechanisms that were approved by the Commission in their DSP II Proceeding. 15

26 (6) Allocation Of Default Service Administrative Costs 55. The Companies' default service administrative costs (i.e., primarily the costs of conducting procurement auctions and RFPs, as well as the regulatory costs associated with these proceedings) will be allocated to and recovered from the various customer classes in accordance with each class' percentage of non-shopping load (in kwhs) provided in Companies' Exhibit KMS-2R. (7) Timc-of-Use Rates 56. The Companies currently offer an optional time-of-use ("TOU") pricing rate to residential customers and will continue to do so in the manner approved by the Commission in the Companies' DSP 11 Proceeding. 57. The Joint Petitioners agree that Penn Power and West Penn will continue to use their TOU Riders approved by the Commission in the Companies' DSP II Proceeding. (8) Supplier Tariff Changes 58. As shown on Exhibits H-l through H-4 to this Joint Petition, the treatment of the New NMB Charges has been clarified and an appendix listing PJM billing line items, indicating whether they are the responsibility of the EDC or the EGS, will be added to each Company's Supplier Tariff. G. Customer Referral Program (1) Program Administration 59. The currently-effective Customer Referral Program ("CRP") as set forth in Companies' Exhibit KJVIS-16, including the cost recovery mechanisms approved by the 16

27 Commission in the Companies' DSP II Proceeding, will continue until the earlier of: (1) six months following a Commission Order modifying the CRP as a result of a settlement reached through the stakeholder process outlined in Paragraphs below; (2) a Commission Order modifying the CRP as a result of a statewide investigation of standard offer customer referral programs; or (3) May 31, The Companies will establish a CRP-dcdicated webpage providing infonnation to suppliers about the program, frequently asked questions and the current CRP prices. 61. Within ninety days of the Commission's approval ofthe Settlement, the Companies will add the following messages and disclosures to all customer service representative scripts and written documents regarding the CRP: The initial discount of 7% is based on the current PTC; o The PTC will change quarterly with the next change in [month]; o The percentage savings a customer will experience will vary as the PTC changes; and The CRP rate may be higher or lower than the next PTC. (2) Stakeholder Process 62. The Companies will convene a stakeholder process and will hold at least three stakeholder meetings during the period November 2014 through January To facilitate discussion at the stakeholder meetings, the Companies will provide participants the following infonnation: (1) CRP scripts; (2) customer enrollment 17

28 figures and CRP prices for the period August 1, 2013 to July 31, 2014; (3) statistics regarding EGS participation in the CRP from inception through the enrollment period beginning December 1, 2014; (4) a report of all informal or formal complaints related to the CRP filed with the Commission during the period August 1, 2013 through November 30, 2014; and (5) retention rates of the Companies' customers acquired by EGSs through the CRP. 64. The stakeholder meetings will address, at a minimum, the following issues: EGS recommendations that would improve administration of the CRP; EGS proposed changes to the CRP product composition that might improve the customer experience as well as increase EGS participation; and The OCA's and CAUSE-PA's recommended changes to the CRP scripts, administrative process and product composition that might improve the customer experience as well as increase EGS participation. 65. Any changes or modifications agreed upon by all parties at the stakeholder meetings will be presented to the Commission by the Companies in a petition to modify the CRP, and the Companies shall implement the modifications contained therein within six months of final approval of such petition by the Commission. (3) Cost Recovery 66. The Joint Petitioners agree that the Companies continue to have the right to full and current cost recovery for all costs associated with the CRP.

29 H. Affiliate Relations 67. Pursuant to Section 2807(c)(3.1 )(iii)(b) ofthe Public Utility Code, the Joint Petitioners request that the Commission approve the SMAs as affiliated interest agreements as required under 66 Pa.C.S I. Request For Waivers 68. The Commission's regulations (52 Pa. Code ) and Policy Statement (52 Pa. Code ) provide that default service providers should design procurement classes based upon peak loads of 0-25 kw, kw, and 500 kw and greater, but default service providers may propose to depart from these specific ranges, including to "preserve existing customer classes." If necessary, the Joint Petitioners respectfully request that the Commission grant the Companies a waiver of 52 Pa. Code to allow their customer grouping to be as delineated in Section II.A.2, supra. 69. To the extent necessary, the Joint Petitioners also respectfully request that the Commission grant the Companies a waiver of 52 Pa. Code and with regard to inclusion of ceitain transmission-related costs in the PTC so that they may recover RTEP, ECRC, and the New NMB Charges through the Companies' non-bypassable DSSR rather than the PTC as explained in Section II.F, supra. III. THE SETTLEMENT IS IN THE PUBLIC INTEREST 70. The Companies, I&E, the OCA, the OSBA, CAUSE-PA, Exelon, FES, the Industrial Intervenors, and RESA have prepared, and attached to this Joint Petition, Statements in Support identified as Attachments A through I, respectively, setting forth the bases on which they believe the Settlement is in the public interest. 19

30 71. The Joint Petitioners submit that the Settlement is in the public interest for the following additional reasons: Substantial Litigation And Associated Costs WiU Be Avoided. The Settlement amicably and expeditiously resolves a number of important and contentious issues. The administrative burden and costs to litigate these matters to conclusion would be substantial. The Settlement Is Consistent With Commission Policies Promoting Negotiated Settlements. The Joint Petitioners arrived at the Settlement tcrms after conducting extensive discovery and engaging in in-depth discussions over several weeks. The Settlement terms and conditions constitute a carefully crafted package representing reasonable negotiated compromises on the issues addressed herein. Thus, the Settlement is consistent with the Commission's rules and practices encouraging negotiated settlements (see 52 Pa. Code 5.231, and ), and is supported by a substantial record. IV. ADDITIONAL TERMS AND CONDITIONS 72. The Joint Petitioners agree that this Settlement, subject to the Commission resolution ofthe issue reserved for briefing, represents the default service procurement plan for all of the Companies' customer classes for the Revised DSP Program tenn. The Companies shall be entitled to recover all costs incurred by them under their procurement plan as set forth in this Settlement, and the Joint Petitioners agree that they shall neither challenge nor seek disallowance of such costs (including pursuant to 66 Pa.C.S. 2807(c)(3.8) and (3.9)), provided that the Companies' procurements are made in accordance with the approved plan and there has been no fraud, collusion, or market manipulation with regard to the contracts entered into under the plan. 20

31 73. This Settlement is proposed by the Joint Petitioners to settle the instant case and is made without any admission against, or prejudice to, any position which any Joint Petitioner might adopt during subsequent litigation of this case or any other case. It is understood, however, that paragraph 72 shall be binding upon the Joint Petitioners should the Settlement be approved. 74. This Settlement is conditioned upon the Commission's approval ofthe terms and conditions contained herein without modification. If the Commission should disapprove the Settlement or modify the tenns and conditions herein, this Settlement may be withdrawn upon written notice to the Commission and all active parties within five business days following entry of the Commission's Order by any of the Joint Petitioners and, in such event, shall be of no force and effect. In the event that the Commission disapproves the Settlement or the Company or any other Joint Petitioner elects to withdraw as provided above, the Joint Petitioners reserve their respective rights to fully litigate this case, including but not limited to presentation of witnesses, cross-examination and legal argument through submission of Briefs, Exceptions and Replies to Exceptions. 75. If the Administrative Law Judge, in her Recommended Decision, recommends that the Commission adopt the Settlement as herein proposed without modification, the Joint Petitioners agree to waive the filing of Exceptions. However, the Joint Petitioners do not waive their rights to file Exceptions with respect to any modifications to the terms and conditions of this Settlement, or any additional matters proposed by the Administrative Law Judge in her Recommended Decision (including the ALJ's detennination regarding the separately briefed issue concerning the collection of NITS charges). The Joint Petitioners also reserve the right to file Replies to any Exceptions that may be filed. 21

32 WHEREFORE, the Joint Petitioners, by their respective counsel, respectfully request that Administrative Law Judge Colwell enter a Recommended Decision and the Commission enter an Order: 1. Approving the Settlement and the Companies' Revised DSP Programs as set forth herein, including all tenns and conditions thereof, subject to the resolution of the issue reserved for briefing; 2. Finding that the Companies' Revised DSP Programs include prudent steps necessary to negotiate favorable generation supply contracts; 3. Finding that the Companies' Revised DSP Programs include prudent steps necessary to obtain least cost generation supply contracts on a long-term, short-term and spot market basis; 4. Finding that the Companies' Revised DSP Programs include prudent steps necessary to negotiate favorable generation supply contracts and to obtain least cost generation supply contracts on a long-term, short-term and spot market basis; 5. Finding that neither the Companies nor their affiliates have withheld from the market any generation supply in a manner that violates federal law; 6. Granting a waiver of 52 Pa. Code , to the extent necessary, to permit the Companies to procure generation for procurement classes as set forth in the Revised DSP Programs; 7. Approving the selection of CRA as the independent third-party evaluator and auction manager for all DCAs; 8. Approving the selection of The Brattle Group as the independent third-party evaluator and RFP manager for the separate SPAEC procurements; 22

33 9. Approving the fonn SMA attached to the Joint Petition as an affiliated interest agreement pursuant to 66 Pa.C.S. 2102; 10. Granting a waiver of 52 Pa. Code , to the extent necessary, to pennit the Companies to recover RTEP, ECRC, and the New NMB Charges through the non-bypassable DSSR. 11. Authorizing the electric service tariff riders and new supplier tariff appendices attached to the Joint Petition to become effective as of June 1, Tenninating the proceeding at Docket Nos. P , et al. following a Commission decision on the issue of collection of NITS charges reserved by the parties. Respectfully submitted, Dated: March 27, 2014 Tori L. Giesler (Pa. No ) Lauren Lepkoski (Pa. No ) FirstEnergy Service Company 2800 Pottsville Pike P.O. Box Reading, PA Thomas P. Gadsden, Esquire (Pa. No ) Brooke E. McGlinn (Pa. No ) Morgan, Lewis & Bockius LLP 1701 Market Street Philadelphia, PA Counsel for Metropolitan Edison Company, Pennsylvania Electric Company, Pennsytvania Power Company and West Penn Power Company 23

34 Aron J. Krist ine li. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, 5"' Floor Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Sniall Business Advocate Office of Small Business Advocate Commerce Building. Suite North Second Street Harrisburu. PA Counsel for Office of Small Business Ad vocal e Susan I:. Bruce Charis Mincavagc Vasiliki Kuramlrikas Teresa K. Schinillberger McNees Wallace & Nurick. LLC 100 Pine Street P.O. Box 1166 Harrisburg. PA I710X-1166 Charles D. Shields- Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Conmiission Commerce Keystone Building 400 North Street, 2iul Floor P.O Harrisburg, PA Counsel for MEHJG/l'lCA/Pl'UC/Wmi Counsel for the. liureuu of fnvesligaiion and Enforcement Daniel Clearfield DeanneO'Dcll Carl R. Sluiltz Eckert Seamans Cherin & Mellott, P.C. 213 Market Street, Nth Floor P.O. Box 124S Harrisburg, PA Counsel for Retail Ener^ Supply Association Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 1 IS Locust Street Hamsburg, PA Counsel for CAUSE-l'A Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Conslitutioti Way, Suite 500C Baltimore, MD Counsel for Exelon Generalion Company, LLC David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Harrisburg. PA Counsel for Hrst Energy Solutions Corp. 24

35 Aron J. Beatty Kristine E. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, 5,h Floor Counsel for Office of Consumer Advocate Damel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street Counsel for Office ofsmall Business Advocate Susan E. Bruce' Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees Wallace & Nurick, LLC 100 Pine Street P.O.Box 1166 Harrisburg, PA Counsel for MEIUG/PICA/PPUG/WPP11 Charles D. Shields Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O.3265 Harrisburg, PA Counsel for the Bureau of Investigation and Enforcement Daniel Clearfield DeanneO'Dcll Carl R. Shultz. Eckert Seam : ans.;cherin & Mellott, P.C. 213 Market Street, 8th Floor P.O.Box Harrisburg, PA Counsel for Retail Energy Supply Association Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street. Counsel for CA USE-PA Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for Exelon Generation Company, LLC Counsel for FirstEnergy Solutions Corp. 24 i

36 Aron J. Beatty Kristine E. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, 5 l1 ' Floor Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street Counsel for Office of Small Business Advocate Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees Wallace & Nurick, LLC 100 Pine Street P.O, Box 1166 Harrisburg, PA Counsel for MEIUG/PICA/PPUG/WPPII Charles D. Shields Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O Harrisburg, PA Counsel for the Bureau of Investigation and Enforcement Daniel Clearfield Deanne O'Dell Carl R. Shultz Eckert Seamans Cherin & Mellott, P.C. 213 Market Street, 8th Floor P.O. Box 1248 Harrisburg, PA Counsel for Retail Energy Supply Association Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street Counsel for CAUSE-PA Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for Exelon Generation Company, LLC Counsel for FirstEnergy Solutions Corp. 24

37 Aron J. Beatty Kristine E. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, 5 th Floor Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street ^^//o(><^^q/'5m^/cft^^^ Susan E. Bruce Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees Wallace & Nurick, LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA Counsel for MEIUG/PICA/PPUG/WPPII Charles Daniel Shields Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O Harrisburg, PA Counsel for fhe Bureau of Investigation and Enforcement Daniel Clearfield Deanne O'Dell Carl R. Shultz Eckert Seamans Cherin & Mellott, P.C. 213 Market Street, 8th Floor P.O. Box 1248 Hamsburg, PA Counsel for Retail Energy Supply Association Hairy S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street Counsel for CA USE-PA Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for Exelon Generation Company, LLC Counsel for FirstEnergy Solutions Corp.

38 Aron J. Beatty Kristine E. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, 5 lh Floor Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street Counsel for Office of Small Business Advocate Susan E. Bruce Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees Wallace & Nurick, LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA Counsel for MEIUG/PICA/PPUG/WPPII M chill Daniel Clearfield Deanne O'Dell Carl R. Shultz Eckert Seamans Cherin & Mellott, P.C. 213 Market Street, 8th Floor P.O. Box 1248 Harrisburg, PA Counsel for Retail Energy Supply Association Charles D. Shields Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O Harrisburg, PA Counsel for the Bureau of Investigation and Enforcement Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street Counsel for CA USE-PA Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for Exelon Generation Company, LLC Counsel for FirstEnergy Solutions Corp. 24

39 Aron J. Beatty Kristine E. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, Floor Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street Counsel for Office of Small Business Advocate Susan E. Bruce Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees Wallace & Nurick, LLC 100 Pine Street P.O. Box 1166 Hamsburg, PA Counsel for MEIUG/PICA/PPUG/WPPII Charles D. Shields Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O.3265 Harrisburg, PA Counsel for the Bureau of Investigation and Enforcement Daniel Clearfield Deanne O'Dell Carl R. Shultz Eckert Seamans Cherin & Mellott, P.C. 213 Market Street, 8th Floor P.O. Box 1248 Harrisburg, PA Counsel for Retail Energy Supply Association Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street Counsel for CA USE-PA Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD Counsel for Exelon Generation Company, LLC David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for FirstEnergy Solutions Corp.

40 Aron J. Beatty Kristine E. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnut Street Forum Place, 5 lh Floor Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street Counsel for Office of Small Business Advocate Susan E. Bruce Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees Wallace & Nurick, LLC 100 Pine Street P.O, Box 1166 Harrisburg, PA Counsel for MEIUG/PICA/PPUG/WPPII Charles D. Shields Senior Prosecutor Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O Harrisburg, PA Counsel for the Bureau of Investigation and Enforcement Daniel Clearfield Deanne O'Dell Carl R. Shultz Eckert Seamans Cherin & Mellott, P.C. 213 Market Street, 8th Floor P.O. Box 1248 Harrisburg, PA Counsel for Retail Energy Supply Association Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street Counsel for CA USE-PA Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD Counsel for Exelon Generation Company, LLC David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for FirstEnergy Solutions Corp.

41 Aron J, Beatty Kristine V.. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnul Street Forum Place, Floor Harrisburg. PA Counsel for Office of Consumer Advocate Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Commerce Building, Suite North Second Street Counsel for Office of Small liusiness Advocate Susan B. Bruce Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNccs Wallace & Nurick, LLC 100 Pine Streel P.O. Box 1166 Harrisburg, PA Counsel for MEIUG/PICA/PPUG/WPPII Charles D. Shields Senior Prosecutor Bureau oi" Investigation & Enforcement Pennsylvania Public Ulility Commission Commerce Keystone Buikling 400 North Street, 2nd Floor P.O Harrisburg, PA Counsel for (he liureuu of Investigation and Enforcement Daniel Clearfield Deanne O'Dell Carl R. Shultz Eckert Seamans Cherin & Mellott, P.C. 213 Markel Street, 8th Floor P.O. Box 1248 Harrisburg, PA 17) Marry S. Geller Patrick M. Cicero Pennsylvania Utility Law Project 118 Locust Street Counsel for Retail Energy Supply Association Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suite 500C Baltimore, MD Ditfid P. Zambit Cozen O'Conn 305 North Front Street, Hamsburg, PA 1710 Counsel for Exelon Generation Company LLC Counsel for FirstEnergy Solutions Corp.

42 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION JOINT PETITION OF METROPOLITAN EDISON COMPANY, PENNSYLVANIA ELECTRIC COMPANY, PENNSYLVANIA POWER COMPANY AND WEST PENN POWER COMPANY FOR APPROVAL OF THEIR DEFAULT SERVICE PROGRAMS DOCKET NOS. P P P P CERTIFICATE OF SERVICE I hereby certify and affirm that I have this day'served a copy ofthe Joint Petition for Partial Settlement on the following persons in the matier specified in accordance with the requirements of 52 Pa. Code 1.54: VIA ELECTRONIC MAIL AND FEDERAL EXPRESS The Honorable Susan D. Colwell Administrative Law Judge Pennsylvania Public Utility Commission Commonweallh Keystone Building P.O. Box North Street Harrisburg, PA scolwell@pa.uov P A P U MAR U ^ p J^ITY COMMISSION SECRETARY'S BUREAU VIA ELECTRONIC MAIL AND FIRST-CLASS MAIL Daniel G. Asmus Assistant Small Business Advocate Office of Small Business Advocate Suite 1102, Commerce Building 300 North Second Street dasmusfsjpa.uov Aron J. Beatty Kristine \L. Robinson Assistant Consumer Advocates Office of Consumer Advocate 555 Walnul Street 5th Floor, Forum Place abeatlv@paoca.oru krobinsonfoipaoca.oru I)»1/7825I991.1

43 Charles D. Shields Senior Prosecutor Bureau oftnvesligation & Enforcement Pennsylvania Public Utility Commission Commerce Keystone Building 400 North Street, 2nd Floor P.O.3265 Harrisburg, PA chshi'eldsfatoa.uov Susan B. Bruce Charis Mincavagc Vasiliki Karandrikas Teresa K. Schmittberger McNees, Wallace & Nurick, LLC 100 Pine Streel P.O. Box 1166 Harrisburg, PA vkarandrikasfstmwn.com Counsel for MEIUG/PICA/P!> UG and WPPII Divesh Gupta Assistant General Counsel Exelon Business Services Corp. 100 Constitution Way, Suile 500C Baltimore, MD Counsel for Exelon Generation Company, LLC David Fein Vice President. Slale Government Affairs- East Exelon Corp. 10 Soulh Dearborn Street, 47lh Floor Chicago, IL david.feinfgiexcloncorp.com Counsel for Exelon Generation Company, LLC Daniel Clearfield Deanne M. O'Dell Carl R. Shullz Eckert Seamans Cherin & Mellott, LLC 213 Markel Street 8th Floor P.O. Box Counsel for RESA and Direct Energy Services, LLC Todd S. Stewart Hawke, McKeon & Sniscak LLP P.O. Box N. Tenth Street Harrisburg, PA Counsel for Dominion Retail, Inc. and Interstate Gas Supply, Inc. Dill/

44 Harry S. Geller Patrick M. Cicero Pennsylvania Utility Law Projecl 118 Locust Street Counsel Jar CAUSE-PA Brian J. Knipe FirstEnergy Solutions Corp. 76 Soulh Main Street Akron, OH Counsel for FirstEnergy Solutions Corp. Amy M. Klodowski FirstEnergy Solutions Corp. 800 Cabin Hill Drive Greensburg, PA Counsel for FirstEnergy Solutions Corp. David P. Zambito Cozen O'Connor 305 North Front Street, 4th Floor Counsel for FirstEnergy Solutions Corp. Linda R. Evers Stevens & Lee 111 North Sixth Street P.O. Box 679 Reading, PA Counsel for WGES and Duquesne Light Energy LLC Steven L. Huntoon Senior Attorney NextEra Energy Resources, LLC 801 Pennsylvania Avenue, N.W., Suile 220 Washington, D.C Counsel for NextEra Energy Resources, LLC Thomas J. Sniscak William E. Lehman Hawke, McKeon & Sniscak LLP P.O. Box North Tenth Street Hamsburg, PA Counsel for Pennsylvania State University Michael A. Gruin Stevens & Lee 17 North Second Street, 16th Floor Harrisburg. PA Counsel for WGES and Duquesne Light Energy LLC PUI/

45 Robert D. Knecht Indusirial Economics, Inc Massachusetts Avenue Cambridge, MA rdkfgjndccon.com Consultant for OSBA Matthew I. Kahal Steven L. Estomin Thomas S. Catlin Exeter Associates, Inc Little Paluxcnt Parkway Suite 300 Columbia, MD mkahalfoiexeterassociatcs.com Consultants for OCA Barbara Alexander Consumer Affairs Consultant 83 Wedgewood Drive Winthrop, ME Consultant for OCA Thomas P. Gadsden (Pa. No ) Kenneth M. Kulak (Pa. No ) Brooke E. McGlinn (Pa. No ) Morgan, Lewis & Bockius LLP 1701 Market Street Philadelphia, PA (bus) (lax) Counsel for Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company Daled: March 27, )111/

46 7 r0 ORIGIN ID = REDA <2IS) nftslrood MORGAN LEUIS & BOCKIUS LLP 1701 H rt RKET STREET PHILADELPHIA, PA UNITED STATES US SHIP DATE: 27riAR14 ACTWGT = G.B LB CAD: 06B4922/CAFE2704 BILL SENDER ROSEMARY CHIAVETTA PENNSYLVANIA PUBLIC UTILITY COMMISS COMMONWEALTH KEYSTONE BUILDING P.O. BOX 3265 HARRISBURG PA 1710!) REF: )15 FedEx Express S FRI - 28MAR 10:30A PRIORITYOVERNIGHT EN MDTA PA-US MDT