Statement No.2 BEFORE THE PENNSYLVANIA …...2011/12/20 · PENNSYLVANIA ELECTRIC COMPANY DOCKET...

Met-Ed/Penelec/Penn Power/West Penn Statement No.2

BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

METROPOLITAN EDISON COMPANY DOCKET NO. P-2011-2273650

PENNSYLVANIA ELECTRIC COMPANY DOCKET NO. P-2011-2273668

PENNSYLVANIA POWER COMPANY DOCKET NO. P-2011-2273669

WEST PENN POWER COMPANY DOCKET NO. P-2011-2273670

DEFAULT SERVICE PROGRAMS June 1,2013 to May 31,2015

Direct Testimony of

Raymond E. Valdes

List of Topics Addressed

Rate Class and Rate Design Plan Tariff Riders

Time-of-Use and Real-Time Rates Reconciliation Tariff Changes·

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DIRECT TESTIMONY OF RAYMOND E. VALDES

Introduction and Purpose of Testimony

Please state your name and business address.

My name is Raymond E. Valdes, and my business address is 800 Cabin Hill Drive,

Greensburg, Pennsylvania 15601.

By whom are you employed and in what capacity?

I am employed by Allegheny Energy Service Corporation as Advisor for Rates and

Regulatory Affairs - Pennsylvania. As a result of the merger between Allegheny Energy,

Inc. and FirstEnergy Corp. ("FirstEnergy"), Allegheny Energy Service Corporation is

now an affiliate of FirstEnergy. The Pennsylvania Rates and Regulatory Affairs

Department, which comprises personnel in the FirstEnergy Service Company and the

Allegheny Energy Service Corporation, provides regulatory support for FirstEnergy's

Pennsylvania electric distribution companies ("EDCs"): Metropolitan Edison Company

("Met-Ed"), Pennsylvania Electric Company ("Penelec"), Pennsylvania Power Company

("Penn Power"), and West Penn Power Company ("West Penn"), each of which may be

referred to as "Company" and/or in combination as "Companies". I report to the

Director, Rates and Regulatory Affairs - Pennsylvania, and I am responsible for the

development, coordination, preparation and presentation of retail tariffs; the development

of retail electric rates, rules and regulations; the development and preparation of default

service plans; the development and preparation of certain accounting and financial data;

and the development and preparation of certain reports to the Pennsylvania Public Utility

Commission ("Commission") for all of the Companies.

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What is your educational and professional background?

I earned a Bachelor of Science degree in electrical engineering from the University of

Pittsburgh. I have nearly 21 years of experience with Allegheny Energy Service

Corporation and its predecessor companies. My work experience is more fully described

in Appendix A.

On whose behalf are you testifying in this proceeding?

I am testifying on behalf of the Companies in support of the Joint Petition filed on

November 17,2011 for approval of their Default Service Programs ("DSPs") for the

period from June 1,2013 through May 31, 2015.

Please describe the purpose of your testimony.

My testimony describes the following elements of the Companies' proposed DSPs and

the related competitive procurement process that is the subject of this proceeding: (i) the

proposed rate class and rate design plan; (ii) the Price to Compare Default Service Rate

Rider; (iii) the Hourly Pricing Default Service Rider; (iv) the Default Service Support

Rider including the proposed Non-Market Based Services Transmission Charges; (v) the

Solar Photovoltaic Requirements Charge Rider; (vi) Time-of-Use ("TOU") and Real

Time Pricing Rates; (vii) reconciliation; and (viii) various tariff changes.

What exhibits are you sponsoring?

I am sponsoring Met-Ed/Penelec/Penn Power/West Penn Exhibits REV-I through REV-

21, which are described later in my testimony.

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Rate Class and Rate Design Plan

In their DSPs, the Companies propose to procure default service supplies separately

for each of three retail customer classes. What are the three customer classes

proposed in the DSPs and what rate schedules and tariffs comprise each customer

class?

The three procurement customer classes proposed by the Companies are identified as the

"Residential Customer Class", the "Commercial Customer Class", and the "Industrial

Customer Class". The rate schedules and tariffs that comprise each customer class are set

forth below for each Company.

Residential Customer Class

Met-Ed Tariff No. 51

• Rate RS (residential service) • Rate RT (residential time-of-day service) • Rate OS (volunteer fire company and non-profit ambulance

service, rescue squad and senior center service)

Penelec Tariff No. 80

• Rate RS (residential service) • Rate RT (residential time-of-day service) • Rate OS (volunteer fire company and non-profit ambulance

service, rescue squad and senior center service)

Penn Power Tariff No. 35

• Rate RS (residential service) • Rate RS (residential service with Optional Controlled Service

Rider) • Rate RH (residential service) • Rate RH (residential service with Water Heating Option) • Rate WH (residential controlled water heating service) • Rate OS (special provision for volunteer fire companies, non

profit senior citizens centers, non-profit rescue squads and nonprofit ambulance services)

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West Penn Power No. 39

• Rate 10 (residential service) • Rate 20 (special provision for volunteer fire companies, non

profit senior citizens centers, non-profit rescue squads and nonprofit ambulance services)

Commercial Customer Class


• Rate OS-Small (general service secondary - non-demand metered)

• Rate OS-Medium (general service secondary - demand metered)

• Rate MS (municipal service) • Borderline Service • Street Lighting Service, Ornamental Street Lighting, and

Outdoor Lighting Service


• Rate OS-Small (general service secondary - non-demand metered)

• Rate OS-Medium (general service secondary - demand metered)

• Rate H (all electric school, church and hospital service) • Borderline Service • High Pressure Sodium Vapor Street Lighting Service,

Municipal Street Lighting Service, and Outdoor Lighting Service


• Rate OS (general service - small) • Rate OS (general service - small with Optional Controlled

Service Rider) • Rate OM (general service - medium) • Rate OM (general service - medium with Optional Controlled

Service Rider) • Rate WH (non-residential controlled water heating service) • Rate PNP (public or non-profit organization service) • Rate OH (with and without Cooling Capabilities) • Rates PLS, SV, SVD, and SM (street and area outdoor

lighting)

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West Penn Tariff No. 39

• Rate 20 (general service) • Rate 22 (church and school service) • Rate 23 (athletic field lighting service) • Rate 24 (fair and carnival service) • Rate 30 (general power service - small) • Rates 51, 52, 53, 54, 55, 56, 57, 58, and 71 (street and area

outdoor lighting)

Industrial Customer Class


• Rate OS-Large (general service secondary - time-of-day service)

• Rate OP (general service - primary) • Rate TP (transmission power service)


• Rate OS-Large (general service secondary - time-of-day service)

• Rate OP (general service - primary) • Rate LP (large primary service)


• Rate OP (general service - primary) • Rate OT (general service - transmission) • Rate OS Special Rule OSDS


• Rate 30 (general power service -large) • Rate 40 (primary power service) • Rate 41 (primary power service) • Rate 44 (interruptible primary power service) • Rate 46 (primary power service) • Rate 86 (alternative generation service)


• West Penn Tariff No. 37 applies only to the Pennsylvania State University's University Park campus ("Penn State")

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What common characteristics establish the parameters of the Residential Customer

Class?

The class definition is straight-forward because all members of the Residential Customer

Class are billed on rate schedules that are explicitly identified as applying to "residential"

customers or on the residential service billing provision that, by its terms, applies to

volunteer fire companies, non-profit senior citizens centers, non-profit rescue squads, and

non-profit ambulance services.

What common characteristics establish the parameters of the Commercial

Customer Class?

Customers in the Commercial Customer Class are billed on one of the previously

identified Commercial Customer Class rate schedules. For Met-Ed and Penelec, this

class, for the most part, encompasses customers that receive service at secondary voltage

and did not have a registered demand equal to or greater than 400 kilowatts ("k W") in

two consecutive months. For Penn Power, this class encompasses customers that receive

service at secondary voltage. For West Penn, this class encompasses customers that, for

the most part, receive service at secondary voltage and did not have a billed demand

equal to or greater than 500 kW.

What common characteristics establish the parameters of the Industrial Customer

Class?

Customers in the Industrial Customer Class are billed on one of the previously identified

Industrial Customer Class rate schedules and on the rates set forth in West Penn Tariff

No. 37, which applies to Penn State. For Met-Ed and Penelec, this class consists of

customers that: (1) receive service at secondary voltage and have registered demands

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that equal or exceed 400 kW in two consecutive months; or (2) receive service at primary

or transmission voltage. For Penn Power, customers in this class are those that receive

service at primary or transmission voltage. For West Penn, this class consists generally

of customers that: (1) receive service at secondary voltage and have billed demands that

equal or exceed 500 kW; or (2) receive service at primary or transmission voltage.

Are the Companies proposing any changes to the rate schedules and tariffs that

comprise each customer class?

Met-Ed, Penelec and Penn Power are not proposing any changes. For these Companies,

the rate schedules that comprise each customer class in the proposed DSPs are identical

to the existing groupings of rate schedules in their current DSPs.

However, West Penn proposes to consolidate two existing classes into a single

Commercial Customer Class. Under West Penn's current DSP, there are four customer

classes, which are denominated "Service Types". Service Type 1 0 is identical to West

Penn's proposed Residential Customer Class, and Service Type 40 is identical to West

Penn's proposed Industrial Customer Class. However, Service Type 20 consists of all

rate schedules that would be included in the proposed Commercial Customer Class

except Rate 30 (general power service - small). Currently, West Penn's customers

receiving service under Rate 30 that have billing demands below 500 kW constitute the

separate procurement group identified as Service Type 30.

Why does West Penn propose to consolidate Service Types 20 and 30 into the

proposed Commercial Customer Class?

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West Penn's currently effective DSP is the result ofa settlement that the Commission

approved by its final Order entered July 25, 2008, at Docket No. P-00072342. In that

proceeding, West Penn proposed four customer procurement groups denominated Service

Types 10,20,30 and 40. However, Service Type 30 as proposed by West Penn

comprised all customers served on West Penn's Rate 30 without distinctions based on

peak billing demands. However, as part of the settlement of that DSP proceeding, West

Penn agreed that Rate 30 customers with billing demands of 500 kW or more would be

included in Service Type 40 rather than Service Type 30. As a result, Service Type 30

became much smaller. Additionally, the customers that remain in Service Type 30 have a

load profile and default service rates that are similar to customers in Service Type 20.

Consequently, there is no reason to retain Service Type 30 as a separate customer class,

and it is appropriate to consolidate Service Types 20 and 30 into the proposed

Commercial Customer Class. This class consolidation will also align West Penn's

customer classes with those of Met-Ed, Penelec and Penn Power, and will simplify West

Penn's customer class structure for wholesale suppliers.

Please describe the design of the Companies' default service rates for each of their

proposed customer classes.

The default service rates for Met-Ed's, Penelec's and Penn Power's Residential and

Commercial Customer Classes and for Service Types 10,20 and 30 for West Penn

currently consist of a single per kilowatt-hour ("kWh") energy charge, which changes

quarterly. As I will explain later, the Companies are proposing to revise the beginning

and ending dates of each quarterly period used to calculate changes in these rates.

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For Met-Ed's, Penelec's and Penn Power's Industrial Customer Class and West Penn's

Service Type 40, default service rates are currently based upon the PJM Interconnection

L.L.c. 's ("PJM") hourly locational marginal price ("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 Alternative

Energy Portfolio Standards ("AEPS") requirements, which are incurred to provide

hourly-priced service. The Companies are not proposing any changes to the design of the

default service rates for any class, although they are proposing changes in the categories

of costs that are recovered in those rates.

What costs would the Companies recover under the default service rates they are

proposing in this case?

As proposed, the default service rates would recover: (1) generation costs, certain

transmission costs and ancillary service costs as described by Dean W. Stathis in Met

Ed/Penelec/Penn Power/West Penn Statement No.4; (2) the Market Adjustment Charge

that the Companies propose to add to their default service rates, as described by Charles

V. Fullem in Met-Ed/Penelec/Penn Power/West Penn Statement No.7; (3) supply

management and administrative costs, as provided in 52 Pa. Code § 69.1808; and (4)

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.

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Price to Compare Default Service Rate Rider

How are default service rates charged to non-shopping customers that are part of

Met-Ed's, Penelec's and Penn Power's Residential and Commercial Customer

Classes and West Penn's Service Types 10,20 and 30?

The Residential and Commercial Customer Class default service rates of all the

Companies except West Penn are charged through a Price to Compare Default Service

Rate ("PTC") Rider that is part of each Company's tariff and that sets forth rates for

default service that are incorporated in the applicable rate schedules encompassed in each

of the Residential and Commercial Customer Classes. West Penn currently imposes a

Generation Charge, an Energy Cost Adjustment (essentially an "E" Factor adjustment)

and a Transmission Service Charge ("West Penn TSC") for default service provided to

non-shopping customers in Service Types 1 0, 20 and 30. Those three charges, plus any

associated State Tax Adjustment Surcharge ("STAS"), constitute West Penn's price to

compare. As I will explain later in my testimony, West Penn is proposing to adopt a PTC

Rider like those employed by Met-Ed, Penelec and Penn Power including changes to the

PTC Rider that those Companies are proposing in this case.

What changes are Met-Ed, Penelec and Penn Power proposing to their PTC Riders?

Met-Ed, Penelec, and Penn Power are proposing the changes to their PTC Riders that are

enumerated below. All of these changes are reflected in the proposed PTC Riders that

are set forth in Met-Ed/Penelec/Penn Power/West Penn Exhibits REV-l through REV-3.

1. The PTC Riders currently provide that: (1) PTC rates are to be calculated

at the end of each Default Service Quarter; (2) the Default Service

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Quarters consist of the three months ending January 31, April 30, July 31

and October 31; and (3) the PTC rates thus calculated will become

effective for prospective three-month periods beginning on the first day of

the second calendar month following the end of each respective Default

Service Quarter (i.e., March 1, June 1, September 1 and December 1).

Met-Ed, Penelec and Penn Power are recommending two changes. First,

they propose to advance the Default Service Quarters by one month (i.e.,

to the three months ending December 31, March 31, June 30 and

September 30). Second, they propose that the PTC rates thus calculated

become effective on the first day of the third calendar month following

the end of each respective Default Service Quarter. Consequently, the

effective dates of re-calculated PTC rates will remain March I, June I,

September 1 and December 1, but customers and electric generation

suppliers ("EGSs") will have additional time to consider and respond to

each new set of quarterly PTC rates.

The seasonal weighting factors will be eliminated from the PTC Rider.

However, the seasonal weighting factors will remain in the Companies'

proposed Supplier Master Agreements and the PTC Rider will continue to

reflect the underlying weighted cost of power. Removing the seasonal

weighting factors from the PTC Rider eliminates redundancy and

administrative burden.

PJM's Network Integration Transmission Service ("NITS"), Regional

Transmission Expansion Plan ("RTEP") and Expansion Cost ("Expansion

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1 Cost") charges will no longer be recovered under the rates set forth in the

2 PTC Rider, for the reasons discussed by Mr. Fullem and as I will discuss

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4 4. A Market Adjustment Charge (as also discussed by Mr. Fullem) and a cost

5 of credit component are being added to the PTC Rider rates.

6 5. The time for filing PTC Rider rates with the Commission is being changed

7 from 10 days prior to the effective date of the rate changes to 30 days prior

8 to the effective date.

9 6. Finally, minor changes to the text of the PTC Riders are proposed so that

10 the PTC Rider can be used for all the Companies including West Penn.

11 12 Q. Please explain West Penn's proposal to adopt a PTC Rider.

13 A. As I previously explained, West Penn currently recovers the cost of furnishing default

14 service to customers in Service Types 10, 20 and 30 by imposing a Generation Charge,

15 an Energy Cost Adjustment and the West Penn TSC, which, in combination and

16 including any associated STAS, constitutes West Penn's price to compare. West Penn

17 proposes that, effective June 1,2013, it will adopt a PTC Rider for its Tariff No. 39

18 modeled on the PTC Riders of Met-Ed, Penelec and Penn Power, including the revisions

19 to those Companies' PTC Riders proposed in this case. The PTC Rider will replace West

20 Penn's Tariff No. 39 Generation Charge and the Energy Cost Adjustment but not the

21 West Penn TSC because the costs recovered under the West Penn TSC will be recovered,

22 on and after June 1,2013, under the non-bypassable Default Service Support Rider,

23 which West Penn also proposes to adopt in this case, as explained later in my testimony.

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West Penn's proposed PTC Rider is set forth in Met-Ed/Penelec/Penn Power/West Penn

Exhibit REV -4.

West Penn's adoption of the PTC Rider will make the default service rate design and

default service cost recovery mechanism uniform across all the Companies. It will also

satisfy a condition of the partial settlement in the proceeding for Commission approval of

the merger of FirstEnergy Corp. and Allegheny Energy Inc. ("FE/Allegheny Merger

Settlement"). Specifically, Paragraph 38 of the Commission-approved Joint Petition For

Partial Settlement ("Joint Settlement") in that case (Docket Nos. A-2010-2176520 and A-

2010-2176732) states:

In their default service filings for the period beginning June 1, 2013, each post-merger FirstEnergy EDC will propose that the structure of the Price-To-Compare ("PTC") for each of the four post-merger EDCs will utilize the same PTC structure. Any PTC included on customer bills for the post-merger FirstEnergy EDCs will be calculated as a customer specific PTC for the current month of service.

Is the design of the PTC Rider rates for the Residential Customer Class consistent

with the Commission's default service regulations and the Public Utility Code?

Yes. The Commission's regulations at Section 54.187(c) state that default rates may not

use a declining block structure. Also, while the regulations at Section 54.187(h) require

that default rates charged to all rate classes with maximum registered peak loads of 25

kW or less (which includes the Residential Customer Class) change at least quarterly or

more frequently, the Public Utility Code at Section 2807(e)(7) provides that these

residential rates should change no more frequently than quarterly. The Companies'

proposed PTC Rider rates for the Residential Customer Class employ a flat per-kWh

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design and those rates will change quarterly. Therefore, the PTC Riders are consistent

with both the Commission's default service regulations and the Public Utility Code.

Is the design of PTC Rider rates for the Commercial Customer Class consistent with

the Commission's default service regulations?

Yes. The PTC Rider rates for the Commercial Customer Class are consistent with the

rate design provisions of the Commission's regulations at Section 54.1 87(c) prohibiting a

declining block structure because they employ a flat per-kWh design.

The Commission's regulations also provide that the default service rates for customers

with a maximum registered peak load of up to 500 kW should be adjusted no less

frequently than quarterly, but provide that default service providers may propose, for

Commission approval, a different grouping of customers based on a dividing line other

than 500 kW in order to avoid splitting existing customer and rate classes. Accordingly,

when Met-Ed, Penelec and Penn Power proposed the DSPs that are currently in effect,

they sought approval of Commercial Customer Classes that differed somewhat from the

500 kW threshold recommended in the Commission's regulations. The Commission

approved settlements in each Company's prior DSP proceeding in which the Commercial

Customer Class for Met-Ed and Penelec was defined to generally include customers with

peak monthly demands that do not exceed 400 kW, and for Penn Power was defined to

include all customers served at secondary voltage on specified rate schedules that apply

generally to commercial customers. The Commercial Customer Class definitions

approved as part of the existing DSPs preserve the existing customer and rate classes for

Met-Ed, Penelec and Penn Power. Consequently, in this case, those Companies request

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that the Commission approve the continued use of their existing Commercial Customer

Class definitions and the concomitant quarterly adjustment procedures.

The Commercial Customer Class that West Penn proposes consists of customers with

billing demands that are less than 500 k W, and this delineation coincides with the

principal recommendation set forth in the Commission's regulations.

Have the Companies proposed any "switching" restrictions on customers that

obtain default service under the PTC Rider?

No. Consistent with the terms of their current DSPs, the Companies' proposed DSPs will

not require customers to remain on default service for a minimum term nor will they

impose any restrictions on switching to an EGS or from an EGS to default service.

However, switching may only occur on a meter reading date in accordance with the

Companies' meter reading cycles and in conformance with the enrollment criteria of the

Companies' supplier tariffs.

Hourly Pricing Default Service Rider

How are default service rates charged to non-shopping customers that are part of

Met-Ed's, Penelec's and Penn Power's Industrial Customer Class and West Penn's

Service Type 40?

The Industrial Customer Class default service rates of all the Companies except West

Penn are charged through an Hourly Pricing ("HP") Default Service Rider that is part of

each Company's tariff. This Rider applies to the Industrial Customer Class, but it may

also be elected, on a voluntary basis, by qualifying commercial customers that have smart

metering technology in place. West Penn currently has an Hourly-Priced Default Service

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Rider in its tariffs to recover the cost of providing hourly-priced service to Service Type

40 customers. West Penn's Hourly-Priced Default Service Rider differs in certain

material respects from the HP Default Service Rider used by Met-Ed, Penelec and Penn

Power. As I will explain later in my testimony, West Penn proposes to adopt an HP

Default Service Rider like the one used by Met-Ed, Penelec and Penn Power including

the changes to that rider that Met-Ed, Penelec and Penn Power are proposing in this case.

What changes are Met-Ed, Penelec and Penn Power proposing to their HP Default

Service Riders?

Met-Ed, Penelec, and Penn Power propose to revise the HP Default Service Riders in the

manner shown in Met-Ed/Penelec/Penn Power/West Penn Exhibits REV-5 through REV-

7: (1) to add a cost of credit component; (2) to make minor textual changes so that the HP

Default Service Rider can be used for all the Companies including West Penn; and (3) to

remove the provision for recovering under the HP Default Service Rider NITS charges

and any direct transmission owner charges imposed by P JM as a result of a Company

providing hourly pricing service. The change noted in item (3) is being proposed because

the NITS charges that would no longer be recovered under the HP Default Service Rider

would, instead, be recovered under the Companies' Default Service Support Rider, as I

will explain later in my testimony. The reasons for this change are discussed in Mr.

Fullem's direct testimony.

Please explain West Penn's proposal to adopt the HP Default Service Rider.

West Penn proposes to adopt an HP Default Service Rider similar to the one proposed by

Met-Ed, Penelec and Penn Power in this case so that the rate design for hourly pricing

service will be consistent across all Companies.

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West Penn's tariffs currently include an Hourly-Priced Default Service Rider that: (1)

provides an hourly-priced product based upon day-ahead LMPs, rather than real-time

LMPs offered by Met-Ed, Penelec, and Penn Power for each of their respective P1M

designated transmission zones; and (2) prices capacity on a per-megawatt ("MW") day

basis instead of the per-kWh basis employed in the HPCap-AEPS-Other Charge imposed by Met

Ed, Penelec, and Penn Power. Effective 1une 1,2013, West Penn will adopt an HP

Default Service Rider that employs the same kinds of charges, calculated in the same

manner as set forth in the HP Default Service Riders of Met-Ed, Penelec, and Penn

Power (i.e., using real-time LMPs for West Penn's P1M-designated transmission zone,

pricing capacity on a per-kWh basis pursuant to an HPCap-AEPS-OtherCharge, adding a cost of

credit component, and eliminating NITS charges and any direct transmission owner

charges imposed by P1M as a result of providing hourly pricing service).

Additionally, the pages of West Penn's tariffs that set forth its current Energy Cost

Adjustment will be eliminated because the reconciliation mechanism will be embedded in

the calculation of the charges imposed under the HP Default Service Rider. West Penn's

proposed HP Default Service Riders are set forth in Met-Ed/Penelec/Penn Power/West

Penn Exhibits REV-8 and REV-9.

What are the other principal components of the HP Default Service Rider and how

are they determined?

The component designated "HP Anc" is an element of the HPEnergy Charge designed to recover

the cost of ancillary services that will be billed by P 1M to the default service generation

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suppliers. The proposed HP Anc rate is identical to the existing rate for Met-Ed, Penelec,

and Penn Power.

The component designated "HPCap-AEPS-Other Charge" is designed to compensate the winning

default generation supplier for: (1) the capacity required to meet PJM's capacity

obligation; (2) the cost for AEPS compliance; (3) any differences between the fixed rate

the Companies are paying for ancillary services and the rate the winning suppliers expect

to pay PJM for those services; and (4) other items, which may include, but are not limited

to, supplier administrative costs or customer shopping risk. The HPCap-AEPS-Other Charge will

be set through the competitive procurement process used to secure the hourly priced

default service supply.

The component designated "HP Administrative Charge" is designed to recover the administrative

costs associated with providing default service, as explained by Richard A. D'Angelo in

Met-Ed/Penelec/Penn Power/West Penn Statement No.1.

The component designated HP Reconciliation Charge (or "EHP") is designed to reconcile

costs and revenues, as I will explain later in my testimony where I discuss the

reconciliation mechanisms in each of the Companies' riders.

How often will the components of the HP Default Service Rider change, when will

those changes become effective and when will the proposed changes and supporting

data be filed with the Commission?

All components, with the exception of EIiP and the HP Cap-AEPS-Other Charge, will remain

unchanged for the duration of the proposed DSPs beginning June 1,2013. Consistent

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with the proposed change to the reconciliation timeframe for the PTC Rider, the EHP

component of the HP Default Service Rider is proposed to change quarterly based upon

Default Service Quarters (ending December 31, March 31, June 30 and September 30) so

that EHP rates may become effective on the first day of the third calendar month following

the end of each respective Default Service Quarter (March 1, June 1, September 1 and

December 1). The proposed EHP rate and supporting documentation will be filed with the

Commission 30 days before the effective date of each rate change.

Will the Companies offer a fixed price default service option for the Industrial

Customer Class under their proposed DSPs?

No, they will not. Met-Ed and Penelec offered a fixed-price option to their Industrial

Customer Class for the one-year period from January 1, 2011 through December 31,

2011, which was available on a first come-first served basis for the first 50 MW of load

that elected this service on an "opt-in" basis. That limited, fixed-price offer was

envisioned solely as a transitional service that, by it terms, expires on December 31,

2011. West Penn also offered a fixed-price option to Service Type 40 customers for the

one-year period from January 1, 2011 through December 31, 2011, which was envisioned

solely as a transitional service that, by it terms, expires on December 31, 2011. The

limited, transitional nature of such offerings was reinforced by the FE/Allegheny Merger

Settlement (Paragraph 34 of the Joint Petition), which embodied the settling parties'

understanding that the Industrial Customer Class would receive only hourly-priced

default service:

In the next default service procurement plan for each of the postmerger FirstEnergy EDCs, Joint Applicants will not oppose a proposal or argument of any party that seeks to require that the

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default service structure shall be hourly pricing for the large commercial and industrial customer class currently receiving default service on an hourly pricing basis, as such class is currently defined according to the existing, approved default service plans for West Penn, Met-Ed, Penelec and Penn Power, respectively.

Additionally, the Industrial Customer Class, for the most part, consists of customers with

peak loads of 500 kW and above who, under the Commission's default service

regulations (52 Pa. Code §54.187(j)), must be charged default service rates that "shall be

adjusted on a monthly basis, or more frequently," which rules out a quarterly fixed-price

offering. While there are some customers within the Industrial Customer Class with peak

loads below 500 kW, the Commission has previously approved the existing definition of

the Industrial Customer Class and has approved offering that class only hourly priced

service. The Commission's approval was consistent with, and authorized under, the

Commission's regulation at 52 Pa. Code § 54.187(i), which permits default service rates

for customers with peak loads between 25 kW and 500 kW to change "on a quarterly

basis, or morefrequently" (emphasis added). Finally, significant portions of the

Industrial Customer Class for Met-Ed, Penelec and Penn Power, and the Industrial

Customer Class as proposed for West Penn in this case, are already shopping for electric

power, as evidenced by the following shopping statistics as of December 14, 2011:

Met-Ed Penelec Penn Power West Penn

Percentage of Industrial Accounts Being Served By EGSs

81% 81% 99% 91%

Although the Companies will not offer fixed-price default service to customers within the

Industrial Customer Class, those customers can choose - and, in large numbers, have

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been choosing - to purchase generation service under a variety of EGSs' generation

service offerings, which can include fixed-price alternatives.

Is the design of the rates set forth in the HP Default Service Rider consistent with

the Commission's default service regulations?

Yes. For the reasons I previously explained, the hourly-priced service offered under the

HP Default Service Rider is consistent with the Commission's regulations at 52 Pa. Code

§§ 54.187(i) and G), other applicable provisions of those regulations, the FE/Allegheny

Merger Settlement and the Commission's prior approval of the Companies' customer

class definitions and service offerings.

Have the Companies proposed any switching restrictions on customers that receive

the HP Default Service Rider as their source of default service?

No. Consistent with their current DSPs, the Companies' proposed DSPs will have no

minimum terms or switching restrictions associated with the HP Default Service Rider.

However, switching may only occur on a meter reading date in accordance with the

Companies' meter reading cycles and in conformance with the enrollment criteria of the

Companies' supplier tariffs.

Default Service Support Rider

Which Companies currently have a Default Service Support ("DSS") Rider and

what costs do they recover through the DSS?

Met-Ed, Penelec, and Penn Power currently have DSS Riders in their respective tariffs,

which impose non-bypassable charges to recover various categories of costs. For Met-Ed

and Penelec, the DSS Rider recovers the following four categories of costs: (1) the

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remaining balance of transmission costs that Met-Ed and Penelec were permitted to defer,

amortize over 10 years and recover pursuant to the Commission's final Order in their

2006 transition base rate cases at Docket Nos. R-00061366 and R-00061367; (2) the final

reconciliation of transmission costs and revenues, as of December 31, 2010, under the

Companies' Transmission Service Charge ("TSC") Riders, which were also approved in

their 2006 transition base rates cases; (3) the generation-related portion of uncollectible

accounts expense; and (4) retail enhancement costs. Penn Power's DSS Rider recovers

the following four categories of costs: (1) uncollectible accounts expense associated with

default service; (2) Midwest ISO ("MISO") Transmission Expansion fees, PJM

integration fees, and MISO exit fees associated with Penn Power's move from MISO to

PJM; (3) customer education expenses; and (4) beginning June 1,2013, PJM RTEP costs.

What changes do Met-Ed and Penelec propose to their DSS Riders?

Met-Ed and Penelec propose to continue to recover under their DSS Riders the

amortization of the 2006 deferred transmission service charges, default service-related

uncollectible accounts expense, and retail enhancement costs (including costs to cover

programming expenses and implementation costs associated with competitive market

enhancements approved by the Commission). The DSS Riders are being revised to

include four additional components: (1) costs for customer education (excluding costs

being recovered by the Consumer Education Program Cost Recovery Rider); (2) costs

incurred for the proposed EDC Opt-In Aggregation Program (as described by Mr.

Fullem); (3) costs incurred for the proposed Customer Referral Program (as also

described by Mr. Fullem); and (4) a Non-Market Based ("NMB") Services Transmission

Charge, which will recover certain transmission costs. (I will discuss the nature and

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content ofthe NMB Services Transmission Charge later in my testimony.) Also, minor

changes to the text of the DSS Riders are proposed so that the DSS Rider can be used for

all the Companies.

Met-Ed's and Penelec's TSC costs and revenues as of December 31, 2010, have been

fully reconciled. In addition, the marginal transmission line loss charges that Met-Ed and

Penelec recovered under their TSC Rider and the Commission disallowed by its Order

entered March 3, 2010 at Docket Nos. M-2008-2036188 et al. (the "TSC Order") will be

fully refunded by May 31, 2013. Consequently, Met-Ed's and Penelec's proposed DSS

Riders will no longer contain a TSC reconciliation component. However, Met-Ed and

Penelec have asked the Pennsylvania Supreme Court to review the Commission's TSC

Order and the Commonwealth Court's opinion and order that affirmed it. They are

awaiting the Pennsylvania Supreme Court's decision as to whether it will accept that

appeal. In addition, Met-Ed and Penelec have filed a Complaint in the United States

District Court for the Eastern District of Pennsylvania challenging the TSC Order and

related matters and seeking an order directing the PUC to permit them to recover PIM

imposed marginal transmission line loss charges. That case is pending, and it is not

known when a decision might be rendered. Consequently, Met-Ed and Penelec reserve

the right to recover any and all previously disallowed marginal transmission line loss

charges that they may, hereafter, be authorized to recover based on decisions of either the

Pennsylvania Supreme Court or the United States District Court, whether that recovery is

through their DSS Riders or otherwise.

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What are the changes that Penn Power is proposing to its DSS Rider?

Penn Power's proposed DSS Rider will continue to recover default service-related

uncollectible accounts expense; Federal Energy Regulatory Commission ("FERC")

approved charges imposed by MISO and PJM in connection with Penn Power's transfer

from MISO to PJM, including MISO Transmission Expansion fees, PJM integration fees,

and MISO exit fees; and customer education costs. Like Met-Ed and Penelec, Penn

Power will also revise its DSS Rider to include a NMB Services Transmission Charge to

recover certain transmission costs, as I will explain later in my testimony. In addition,

Penn Power's DSS Rider is being revised to recover costs associated with the proposed

EDC Opt-In Aggregation Program, the proposed Customer Referral Program, and

programming expenses and implementation costs associated with competitive market

enhancements approved by the Commission (including consultant fees and other costs to

develop and implement the Time-Of-Use Default Service Rider). Also, minor changes to

the text of the DSS Rider are proposed so that the DSS Rider can be used for all the

Companies.

Does West Penn propose to adopt a DSS Rider?

Yes. West Penn proposes to adopt a DSS Rider to both Tariff Nos. 37 and 39 to become

effective on June 1,2013. West Penn's DSS Rider will include an NMB Services

Transmission Charge and will recover the cost of customer education (excluding costs

being recovered by the Consumer Education Charge rider), costs associated with the

proposed EDC Opt-In Aggregation Program and the proposed Customer Referral

Program (for Tariff No. 39), and programming expenses and implementation costs

associated with competitive market enhancements approved by the Commission

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(including consultant fees and other costs to develop and implement the Time-Of-Use

Default Service Rider for the Residential Customer Class).

What rate design is employed in the Companies' DSS Riders?

The proposed DSS Riders will employ a flat per-kWh rate design for the Residential and

Commercial Customer Classes and a demand-based rate design for the Industrial

Customer Class. The demands of customers in the Industrial Customer Class will be

determined in the same way they are determined under the applicable distribution rate

schedule or, as to Penn State, Tariff No. 37. This rate design is consistent with the

current metering capabilities of the various customer classes.

When will DSS Rider rates change?

Under the DSS Riders, the rates will change annually, on June 1 of each year, unless the

Commission directs or approves otherwise. Copies of the DSS Riders for each of the

Companies are set forth in Met-Ed/Penelec/Penn Power/West Penn Exhibits REV- 10

through REV-14.

Earlier, you referred to the NMB Services Transmission Charge that the Companies

propose to include in their respective DSS Riders. Please explain what the NMB

Services Transmission Charge is.

The NMB Services Transmission Charge, which is proposed to become a component of

the Companies' proposed DSS Riders, is designed to recover charges PJM imposes for:

(1) NITS; (2) RTEPs; and (3) Expansion Costs. The nature of these costs and the

reasons for recovering them on a non-bypassable basis through the DSS Rider are

explained fully by Mr. Fullem. In summary, the Companies propose to acquire NMB

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services on behalf of both their default service suppliers and EOSs serving load in their

service areas; remove the associated costs from their price to compare; and recover NMB

service costs as a non-bypassable charge imposed, on a competitively neutral basis, on all

shopping and non-shopping customers as part of their DSS Riders. In conjunction with

its adoption of a DSS Rider containing the NMB Services Transmission Charge, West

Penn will eliminate the West Penn TSC because the costs West Penn currently recovers

under its TSC contains NITS, RTEPs and Expansion Cost charges. As a result, effective

June 1,2013, the DSS Riders for the Companies will provide the means for reconciling,

and recouping or refunding as applicable, any NITS, RTEP and Expansion Cost balances

on the Companies books as of May 31, 2013.

How will the Companies allocate the NMB Services Transmission Charges to each

customer class?

In order to have rates accurately align with cost causation, each Company will allocate

NMB Services Transmission Charges to each customer class (i.e., residential, commercial

and industrial) using the customer class network service peak load ("NSPL") in

proportion to the total NSPL for all customer classes. The NSPL is the contribution to

the metered demand coincident with the PJM-designated transmission zone peak hour for

the twelve-month period ending October 31 of the prior year. Allocating NMB Services

Transmission Charges by customer class instead of by rate schedule is consistent with the

approach the Companies use to reconcile their default service generation-related costs.

Additionally, allocating NMB Services Transmission Charges by customer class on a

demand basis is consistent with the methodology PJM uses to allocate transmission

related demand costs to load serving entities operating in PJM. Met-Ed/Penelec/Penn

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Power/West Penn Exhibits REV - 10 through REV -14 set forth the calculation of NMB

Services Transmission Charges that will be included in the Companies' DSS Rider rates

based upon forecasted costs and a reconciliation of prior period costs.

Is the proposal to include the NMB Services Transmission Charge in the DSS Rider

rather than the price to compare consistent with the Commission's default service

regulations?

Yes, it is. Although the Commission's regulations at 52 Pa. Code §§ 54.182 and

54.187( d) contemplate that the price to compare will include "transmission" costs

incurred to provide default service, those provisions are part of the regulations' broader

purpose to assure that the price to compare includes the same categories of costs that

EGSs are incurring to offer competitive generation service. If EGSs must incur

transmission costs to deliver power to the load zone of a customer's EDC, then that

EDC's price to compare should include comparable costs. However, the Companies'

proposal to include the NMB Services Transmission Charge in the DSS Rider serves the

same purpose because the Companies will acquire and pay for NMB service on behalf of

EGSs as well as their own default service suppliers and recover the costs on a

competitively neutral basis from all shopping and non-shopping customers.

Consequently, the Companies' proposal assures a level playing field for default service

and competitive service offered by EGSs. In fact, as Mr. Fullem explains, the

Companies' proposal should be viewed favorably by EGSs as a means of enhancing

competition because NMB services are difficult to predict and cannot be "hedged."

Relieving EGSs of these costs will make it incrementally easier for them to offer

competitive pricing for generation service. Accordingly, the Companies' proposal is

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consistent with the purpose and intent of the Commission's regulations. However, if the

Commission deems it necessary to do so, it should grant the Companies a waiver of any

applicable regulations in order to implement their proposal and include the NMB

Services Transmission Charges in their DSS Riders.

Solar Photovoltaic Requirements Charge Rider

Are the Companies proposing additional long-term solar procurement contracts as

part of their DSPs?

Yes, they are. As explained by Mr. Stathis (Met-Ed/Penelec/Penn Power/West Penn

Statement No.4), the Companies propose to purchase a fixed amount of Solar

Photovoltaic Alternative Energy Credits ("SP AECs") over a 10-year period. More

specifically, the Companies propose to purchase enough SPAECs to satisfy 40% of the

solar requirements for load served by both default service generation suppliers and EGSs

serving load in the Companies' service territories for the period of their DSPs. The

Companies also propose to recover the costs of the SP AECs through a Solar Photovoltaic

Requirements Charge Rider ("SPVRC Rider").

Do any of the Companies currently have a SPVRC Rider in effect?

Yes. Met-Ed, Penelec, and Penn Power currently have a SPVRC Rider in effect that

applies to all delivery service customers. The SPVRC Rider provides for a flat rate per

kWh that applies to all rate schedules. Because the amount of SPAECs to be purchased

is expressed on the basis of a percentage of metered kWh sales, the cost per kWh is the

same for secondary, primary, and transmission voltage service customers. The rate

changes annually on June 1 to recover: (1) the annual cost of the SP AECs purchased

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through the solar request for proposal ("RFP"); (2) the cost of any SP AECs purchased in

the spot market to match the amount needed; and (3) administrative costs. From this

amount, the Companies would deduct the net proceeds they receive from selling excess

SP AECs into the spot market.

Are the Companies proposing any changes to the existing SPVRC Rider?

Yes. Met-Ed, Penelec, and Penn Power propose that, effective June 1,2013, their

SPVRC Riders include a carrying cost for banked SP AECs. The banked SP AECs will

accrue carrying costs, computed and compounded monthly, based upon the costs to

procure the SP AECs. Carrying costs will be calculated at the legal statutory rate pursuant

to 41 P.S. § 202 (currently six percent), using the average of the current month's

beginning and ending balances. Also, minor changes to the text of the SPVRC Riders are

proposed so that the SPVRC Rider can be used for all the Companies including West

Penn.

Does West Penn currently have an SPVRC Rider?

No. West Penn's currently effective DSP does not have a provision to procure SPAECs

for load served by EGSs and default service generation suppliers and, therefore, West

Penn does not have an SPVRC Rider, or comparable cost recovery mechanism, in its

tariffs. However, to maintain consistency across all Companies, West Penn proposes to

adopt an SPVRC Rider similar to the proposed SPVRC Riders for Met-Ed, Penelec, and

Penn Power.

The proposed SPVRC Riders for all the Companies are set forth in Met-Ed/Penelec/Penn

Power/West Penn Exhibits REV-IS through REV-19.

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1 VII. TOU and Real-Time Pricing Rates

2 Q. Do the Companies offer an optional TOU or real-time pricing rate for residential

3 customers as required by Act 129 of 2008?

4 A. Yes. As explained by Mr. Fullem, the existing TOU offerings by the Companies, as well

5 as the proposed Residential Time of Use Default Service Riders to be effective June 1,

6 2013 for Penn Power and West Penn, satisfy Act 129's requirement that EDCs offer an

7 optional TOU rate for residential customers.

8 Q. Do the Companies offer an optional TOU or real-time pricing rate for commercial

9 customers as required by Act 129 of 2008?

10 A. Yes. Qualifying commercial customers with smart metering technology may

11 affirmatively request, on a voluntary basis, to take default service on the HP Default

12 Service Rider. Qualifying commercial customers that do not select an EGS or do not

13 affirmatively request the HP Default Service Rider will be served under the PTC Rider.

14 Q. Do the offerings of an optional TOU or real-time pricing rate for residential and

15 commercial customers fulfill any other obligations?

16 A. Yes. The voluntary TOU and real-time rate offerings previously described, as well as the

17 HP Default Service Rider for the Industrial Customer Class, also satisfy the commitment

18 set forth in Paragraph 24 of FEI Allegheny Merger Settlement, which states:

19 Consistent with Act 129 of 2008, the post-merger FirstEnergy 20 EDCs will have voluntary time of use rates available to residential 21 customers who have smart meters installed, and voluntary real time 22 rates available for any commercial or industrial customers that 23 have smart meters installed so long as the EDCs remain the default 24 service suppliers.

25 VIII. Reconciliation

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Do the PTe Riders include a reconciliation mechanism?

Yes. The PTC Riders currently include and, as proposed, will maintain a reconciliation

mechanism denominated the "E" factor. The E factor is recalculated at the end of each

Default Service Quarter and, under the proposed PTC Rider, will be reflected in the rate

change that takes effect at the beginning of the third month following the end of each

Default Service Quarter.

At the end of each month during the DSPs, each Company will prepare, separately by the

Residential Customer Class and Commercial Customer Class, a reconciliation of costs

and revenues that conforms to the formula for computing the E factor.

The reconciliation between costs and revenues represents the over-collection or under

collection, as applicable, for the month, which will be recorded in the appropriate deferral

accounts on each Company's regulated books. Separate computations and balances will

be maintained for the Residential Customer Class and Commercial Customer Class.

Interest will accrue on the cumulative over-collection or under-collection balances, also

calculated separately by Residential Customer Class and Commercial Customer Class for

each Company, as provided in the definition of the term DS1nt in the PTC Rider. The

applicable interest rate will be applied to the average of: (1) the beginning of the month

balance of cumulative over-collection or under-collection (including prior accrued

interest); and (2) the end of the month balance of cumulative over-collection or under

collection (including prior accrued interest). In accordance with the Commission's

regulations at 52 Pa. Code § 54.187, interest will be computed at the legal rate specified

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in 41 P.S. § 202 for net under-collections, and interest will be computed at the legal rate

plus two percent for net over-collections.

The cumulative over-collections or under-collections recorded on each Company's books

at the end of each Default Service Quarter for the Residential Customer Class and

Commercial Customer Class will be used to compute the new E factors. The E factors

will recoup any cumulative net under-collections or refund any cumulative net over

collections, including accrued interest, on a per kWh basis over the three-month billing

period of the PTC rates that become effective on the first day of the third month after the

end of each Default Service Quarter. The quarterly recalculation of the E factor could

produce either an additional charge or a credit, which is to be included in the calculation

of the PTC rates charged during the effective period.

Does the HP Default Service Rider include a reconciliation mechanism?

Yes. The HP Default Service Rider currently includes and, as proposed, will maintain a

reconciliation mechanism referred to as the "EHP" factor. At the end of each month

during the DSPs, each Company will prepare a reconciliation of costs and revenues that

conforms to the formula for computing the EHP factor.

As indicated in the HP Default Service Rider, the difference between costs and revenues

represents the over-collection or under-collection, as applicable, for the month which will

be recorded in the appropriate deferral accounts on each Company's books. Interest will

accrue on the cumulative over-collection or under-collection balances, calculated in

accordance with the definition of the term DSHPlnt in the HP Default Service Rider. The

applicable interest rate will be applied to the average of: (1) the beginning of the month

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balance of cumulative over-collection or under-collection (including prior accrued

interest); and (2) the end of the month balance of cumulative over-collection or under

collection (including prior accrued interest). In accordance with the Commission's

regulations at 52 Pa. Code § 54.187, interest on under-collections will be computed at the

legal rate specified in 41 P.S. § 202, and interest on over-collections will be computed at

the legal rate plus two percent.


at the end of each Default Service Quarter will be used to compute the new EHP factor.

The EHP factor will recoup any cumulative net under-collections or refund any

cumulative net over-collections, including cumulative interest, on a per kWh basis over

the three-month billing period of the new EHP that becomes effective on the first day of

the third month after the end of each Default Service Quarter. The quarterly recalculation

of the EHP factor could produce either an additional charge or a credit, which is to be

included in the calculation of the HP Service Charges during the effective period.

Does the SPVRC Rider include a reconciliation mechanism?

Yes. The SPVRC Rider currently includes and, as proposed, will maintain a

reconciliation mechanism referred to as the "E" factor. The E factor will be recalculated

annually and will take effect each year on January 1.

At the end of each month, each Company will prepare a reconciliation of costs and

revenues that conforms to the formula for computing the E factor. The reconciliation

between costs and revenues represents the over-collection or under-collection, as

applicable, for the month, which will be recorded in the appropriate deferral accounts on

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each Company's regulated books. Interest will accrue on the cumulative over-collection

or under-collection balances for each Company. The applicable interest rate will be

applied to the average of: (1) the beginning of the month balance of cumulative over

collection or under-collection (including prior accrued interest); and (2) the end of the

month balance of cumulative over-collection or under-collection (including prior accrued

interest). Interest will be computed at the legal rate specified in 41 P.S. § 202 for net

under-collections and for net over-collections.


annually will be used to compute the new E factor. The E factor will recoup any

cumulative net under-collections or refund any cumulative net over-collections, including

accrued interest, on a per kWh basis to become effective on the first day of the calendar

year. The annual recalculation of the E factor could produce either an additional charge

or a credit, which is to be included in the calculation of the SPVRC rates charged during

the effective period.

What are the benefits of reconciling actual costs and revenues as the Companies

propose in the various riders?

The reconciliation of actual costs to actual revenues and the calculation of the E and EHP

factors will keep the Companies' recovery of costs in sync with market prices and sales

volumes throughout the DSPs. The adjustments through the respective reconciliation

components of the riders will allow for full and timely recovery of actual costs, neither

more nor less. The risks to the Companies of over-collecting or under-collecting costs

because of variations in sales volumes due to weather conditions and migration of

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customers between shopping and non-shopping status are also minimized. Furthermore,

the reconciliation features provide a reasonable means for the Companies to reflect in

rates any additional costs they would incur in the event of supplier defaults.

Tariff Changes

Is West Penn proposing any modifications to its retail electric service tariffs to

accommodate its proposed DSPs?

Yes. Please refer to Met-Ed/Penelec Penn Power/West Penn Exhibits REV-20 and REV-

21, which show the tariff changes proposed for West Penn. These changes include

revising existing definitions, adding new definitions and new riders, and the movement of

charges to new locations in West Penn's tariffs to make West Penn's default service tariff

provisions similar to those of Met-Ed, Penelec and Penn Power.

Do comparable modifications need to be made to the Met-Ed, Penelec, and/or Penn

Power tariffs?

No, because the changes proposed to West Penn's retail electric tariffs, discussed above,

are designed to make its tariff provisions that are relevant to the Default Service Program

consistent with similar provisions in the Met-Ed, Penelec and Penn Power tariffs. With

regard to Met-Ed, Penelec and Penn Power, the tariff changes being proposed, other than

those discussed previously, consist of (1) some minor textual changes to provide

uniformity among the Met-Ed, Penelec and Penn Power PTC, HP Default Service, DSS

and SPVRC Riders (as they are presented in the exhibits that accompany my direct

testimony); and (2) a change to add "Non-Market Based Services Transmission Charges"

35

1

2

3

4

Q.

5 A.

6 Q.

7

8 A.

9 Q.

10 A.

to the definition sections of the Companies' respective tariffs, which would be included

in these Companies' compliance filings.

Do the Companies have any generation contracts with any retail customers in their

respective service territories?

No, they do not.

What is the proposed effective date of the tariff changes described in your

testimony?

All tariff changes are proposed to become effective on June 1, 2013.

Does this complete your direct testimony?

Yes, it does.

36

Met-Ed/Penelec/Penn Power/West Penn Statement No.2 Witness: Raymond E. Valdes Appendix A Page 1 of2

Resume: Education and Experience of Raymond E. Valdes

Education:

1990 Bachelor of Science Degree in Electrical Engineering University of Pittsburgh

Experience:

1991 - 1996 1996 - 1999 1999 - 2005 2005 - 2007 2007 - 2011

2011 - present

Power Services Engineer - Allegheny Energy Service Corporation Engineer, Rates - Allegheny Energy Service Corporation Regulatory Specialist - Allegheny Energy Service Corporation Senior Consultant - Allegheny Energy Service Corporation General Manager, Retail Pricing Services - Allegheny Energy Service Corporation Advisor - Allegheny Energy Service Corporation (now an affiliate of FirstEnergy)

Prepared and presented testimony in the following rate-related cases:

Pennsylvania Public Utility Commission Cases: Docket Nos. P-00072349

R-00072753 R-00072754 P-00072342 P-2008-2021608 M-2009-2093218 M-2009-2123951 P-2010-2158084 M-2011-2237573 P-2011-2218683 P-2011-2224781

Pennsylvania Senate:

Met-Ed/Penelec/Penn Power/West Penn Statement No.2 Witness: Raymond E. Valdes Appendix A Page 2 of2

Pennsylvania Senate Consumer Protection and Professional Licensure Committee November 20, 2007

Maryland Public Service Commission Cases: Case Nos. 8738

8797 8908 9037 9056 9064 9091 9111 9153 9166 9175 9228 9233

West Virginia Public Service Commission Cases: Case No. 06-0960-E-42T

09-1352-E-42T 11-0452-E-PC

Ohio Public Utilities Commission Cases: Case No. 04-1047-EL-ATA

05-765-EL-UNC

Virginia State Corporation Commission Case: Case No. PUE-2007-00085

2

METROPOLITAN EDISON COMPANY

Met-Ed/Penelec/Penn Power/West Penn Exhibit REV-1 Page 1 of 8

RIDERS

RIDERN

Electric Pa. P.U.C. No. 51 (Supp._) __ Revised Page 180 Superseding __ Revised Page 180

PRICE TO COMPARE DEFAULT SERVICE RATE RIDER

A Price to Compare Default Service Rate ("PTCDefault") shall be applied to each kWh of Default Service that Met-Ed delivers to Customers under this rider as determined to the nearest one-thousandth of a cent per kWh. The PTCDefault rate shall be billed to Customers receiving Default Service from the Company under this rider. The rates shall be calculated according to the provisions of this rider.

For service rendered June 1,2013 through August 31, 2013, the PTCDefault rates billed by Customer Class are as follows: (C)

Issued:

Commercial Customer Class (Rate GS-Small, Rate GS-Medium, Rate MS, Borderline Service, Street Lighting Service, Ornamental Street Lighting, and Outdoor Lighting Service):

$X.XXXXX per kWh

Residential Customer Class (Rate RS, Rate RT, and Rate GS - Volunteer Fire Company, Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate):

$X.XXXXX per kWh

(C) Change

------- Effective: June 1,2013

(C)

(C)


Rider N (continued)

Met-Ed/Penelec/Penn PowerlWest Penn Exhibit REV-1 Page 2 of 8

RIDERS

Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 181 Superseding __ Revised Page 181

The PTCDefault rates by Commercial or Residential Customer Class will be calculated at the end of each Default Service Quarter (three months ending March 31 s\ June 30t\ September 30th, and December 31 st) to be effective for the three-month period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1 S\ September 1 S\ December 1 S\ and March 1 st). The PTCDefault rate shall be calculated by Customer Class in accordance with the formula set forth below: (C)

PTCDefault = [(PTCcurrent + E)] X [1 1(1 - T)]

PTCCurrent = (PTCcurrent Cost Component X PTC Losscurrent) + PTC Adm + PTCMAC

E = [((DSExp1 + DSExp2) - PTCRev+ DS1nt )/DSSales]

Where:

PTCCurrent = The current cost component of the PTCDefault rate grossed up for line losses calculated by Commercial or Residential Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider.

The computation of the PTCcurrent component of the PTCDefault rate by Commercial or Residential Customer Class will use the following procedures:

PTCCurrent Cost Component = The current cost component of the PTCDefault rate calculated by Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider. This rate will be determined, by Customer Class, using the projected weighted cost of Default Service supply acquired by the Company to serve Default Service load and will include any AEPS expenses that may be incurred by the Company related to amendments to the AEPS Act that may occur subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan. The cost of Default Service supply will include the costs the Company incurs from any block and spot

(C)

(C)

purchases as required by the terms of the Default Service Supply Plan. (C)

(C) Change

Issued: Effective: June 1, 2013


METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp. ~ __ Revised Page 182 Superseding __ Revised Page 182

Rider N (continued)

PTCAdm =

PTCMAc =

E=

Issued:

RIDERS

PTC LossCulTent = Distribution line losses for energy that are determined by the applicable Loss Factors specified below:

Customer Class Commercial Customer Class Residential Customer Class

Loss Factor 1.0515 1.0515

An administrative fee for applicable administration costs by Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider.

A Market Adjustment Charge to be applied to each kWh of Default Service delivered to Retail Customers under this rider. The PTCMAc is $0.00500 per kWh for the Commercial and Residential Customer Class.

The Price to Compare Default Service Reconciliation Rate component by Customer Class. The rate determined to the nearest one-thousandth of a cent per kWh by Customer Class shall be applied to each kWh of Default Service delivered to retail Customers by Customer Class under this rider.

(C) Change

Effective: June 1,2013 -------

(C)

(C)

(C)



RIDERS


THIS P AGE INTENTIONALLY LEFT BLANK

(C) Change

Issued: ------ Effective: June 1, 2013

(C)


METROPOLIT AN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 184 Superseding __ Revised Page 184

RIDERS

Rider N (continued)

DSExp1 = An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31,2015, including but not limited to: (C)

• Incremental start-up administrative costs including metering and billing costs incurred and other costs as necessary to provide service to retail Default Service Customers

• Other start-up costs incurred to develop and implement the competitive bid process for the retail Default Service Supply Plan for retail Default Service including legal, customer notice, and consultant fees

• The incremental administrative start-up costs associated with the portfolio procurements of the supply needed from block and spot purchases (C)

Interest will be calculated monthly on the average of the beginning and the end of month balances of these costs and included in the determination of the monthly amortized amount. The monthly interest rate will be based upon the 41 P.S. § 202 statutory rate.

DSExp2 = The cumulative costs to provide Default Service incurred by the Company for the respective Customer Class through the end of the previous Default Service Quarter, including but not limited to the following: (C)

(C) Change

Issued: Effective: June 1,2013


METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 185 Superseding __ Revised Page 185

Rider N (continued)

Issued:

RIDERS

• Payments made to winning bidders • Any net energy costs associated with the portfolio

procurements of the supply needed from block and spot purchases. These net energy costs will reflect the net proceeds from sales in the wholesale energy market of any excess energy purchased by the Company to provide Default Service that exceeds actual energy used. (C)

• Any P JM related charges including capacity, operating reserve, transmission-related costs other than Non-Market Based Services Transmission Charges, and ancillary services associated with the portfolio procurements of the supply needed from block and spot purchases (C)

• An allocated portion of administrative costs associated with the portfolio procurements of the supply needed from block and spot purchases (C)

• An allocated portion of incremental administrative costs including metering and billing costs incurred and other costs as necessary to provide service to retail Default Service Customers (C)

• An allocated portion of any contingency plan implementation costs incurred as a result of supplier( s) default either prior to or during the supply period

• An allocated portion of other costs incurred to develop and implement the competitive bid process for Retail Default Service including legal, customer notice, and consultant fees

• AEPS expenses incurred by the Company related to amendments to the AEPS Act occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs that are recovered through the Company's Solar Photovoltaic Requirements Charge Rider

(C) Change

Effective: June 1,2013



Rider N (continued)

PTCRev =

DS1nt =

Issued:

RIDERS

• The net AEPS expenses incurred by the Company associated with the portfolio procurements of the supply needed from block and spot purchases. These net AEPS expenses will reflect the net proceeds of sales of AEPS credits purchased that exceed the AEPS credits needed to meet AEPS requirements. (C)

• The cost of credit when the Company is considered by PJM to be the load serving entity (C)

The cumulative revenues billed to Retail Customers by Customer Class for Default Service under the Default Service Supply Plan, excluding Market Adjustment Charge revenues and excluding applicable Pennsylvania gross receipts tax, through the end of the most recent Default Service Quarter

(C) (C)

billed under the respective Customer Class PTCOefault rates. (C)

The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter by Customer Class. Interest will be calculated monthly on the average balance of 1) the respective month's beginning balance of prior months' cumulative over or under collection ofPTCRev compared to the sum of the amortized portion of DSExp1 costs and DSExp2 costs incurred to date, including (C)

(C) Change

Effective: June 1, 2013 -------


METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 187

Rider N (continued)

DSSales=

T=

Superseding __ Revised Page 187 RIDERS

cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection ofPTCRev compared to the amortized portion ofDSExpl costs and DSExp2 costs incurred to date, including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and based upon the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections. (C)

The Company's projected Default Service kWh sales to Retail Customers by Customer Class for the three-month billing period that the E rate component of the PTCDefault rate will be in effect.

The Pennsylvania gross receipts tax rate in effect during the billing month expressed in decimal form as reflected in the Company's base rates.

Each change in the PTCDefault rates will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised PTCDefault rates. (C)

At the conclusion of the duration ofthis reconciliation rider, the Company is authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission.

Application of the PTCDefault rates shall be subject to annual review and audit by the Commission.

(C) Change


PENNSYLVANIA ELECTRIC COMPANY



RIDERS

RIDERN PRICE TO COMPARE DEFAULT SERVICE RATE RIDER

A Price to Compare Default Service Rate ("PTCDefault") shall be applied to each kWh of Default Service that Penelec delivers to Customers under this rider as determined to the nearest one-thousandth of a cent per kWh. The PTCDefault rate shall be billed to Customers receiving Default Service from the Company under this rider. The rates shall be calculated according to the provisions of this rider.

For service rendered June 1,2013 through August 31,2013, the PTCDefault rates billed by Customer Class are as follows: (C)

Issued:

Commercial Customer Class (Rate GS-Small, Rate GS-Medium, Rate H, Borderline Service, High Pressure Sodium Vapor Street Lighting Service, Municipal Street Lighting Service, and Outdoor Lighting Service):

$X.XXXXX per kWh


$X.XXXXX per kWh

(C) Change


(C)

(C)



Electric Pa. P.U.C. No. 80 (Supp. _) __ Revised Page 186 Superseding __ Revised Page 186

RIDERS

Rider N (continued)

The PTCDefault rates by Commercial or Residential Customer Class will be calculated at the end of each Default Service Quarter (three months ending March 31 st, June 30t\ September 30th, and December 31 st) to be effective for the three-month period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1 st, September 1 st, December 1 st, and March 1 st). The PTCDefault rate shall be calculated by Customer Class in accordance with the formula set forth below: (C)

Issued:


PTCCUlTent = (PTCcurrent Cost Component X PTC Losscurrent) + PTC Adm + PTCMAC

E = [((DSExp1 + DSExp2) - PTCRev+ DS1nt )/DSSales]

Where:

PTCCurrent = The current cost component of the PTCDefault rate grossed up for line losses calculated by Commercial or Residential Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider.


PTCCurrent Cost Component = The current cost component of the PTCDefault rate calculated by Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider. This rate will be determined, by Customer Class, using the projected weighted cost of Default Service supply acquired by the Company to serve Default Service load and will include any AEPS expenses that may be incurred by the Company related

(C) Change


(C)

(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ __ Revised Page 187 Superseding __ Revised Page 187

Rider N (continued)

Issued:

RIDERS

to amendments to the AEPS Act that may occur subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan. The cost of Default Service supply will include the costs the Company incurs from any block and spot purchases as required by the terms of the Default Service Supply Plan.

PTC Losscurrent = Distribution line losses for energy that are determined by the applicable Loss Factors specified below:

Customer Class Commercial Customer Class


(C) Change

Loss Factor 1.0573

1.0573


(C)

(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.c. No. 80 (Supp. ~ __ Revised Page 188

Rider N (continued)

PTCMAc =

Issued:




(C) Change


(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. -.-J __ Revised Page 189

Rider N (continued)

E=

DSExp1 =

Issued:


The Price to Compare Default Service Reconciliation Rate component by Customer Class. The rate determined to the nearest one-thousandth of a cent per kWh by Customer Class shall be applied to each kWh of Default Service delivered to retail Customers by Customer Class under this rider.

An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31, 2015, including but not limited to:


• Other start-up costs incurred to develop and implement the competitive bid process for the retail Default Service Supply Plan for retail Default Service including legal, customer notice,

(C)

and consultant fees (C) • The incremental administrative start-up costs associated with

the portfolio procurements of the supply needed from block and spot purchases (C)

(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.c. No. 80 (Supp. ~ __ Revised Page 190

Rider N (continued)

DSExp2 =


Interest will be calculated monthly on the average of the beginning and the end of month balances of these costs and included in the detennination of the monthly amortized amount. The monthly interest rate will be based upon the 41 P.S. § 202 statutory rate.

The cumulative costs to provide Default Service incurred by the Company for the respective Customer Class through the end of the previous Default Service Quarter, including but not limited to the following:

• Payments made to winning bidders • Any net energy costs associated with the portfolio

procurements of the supply needed from block and spot purchases. These net energy costs will reflect the net proceeds from sales in the wholesale energy market of any excess energy purchased by the Company to provide Default Service that

(C)

exceeds actual energy used. (C)

(C) Change

Issued: ------- Effective: June 1, 2013


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ __ Revised Page 191

Rider N (continued)

Issued:


• Any PJM related charges including capacity, operating reserve, transmission-related costs other than Non-Market Based Services Transmission Charges, and ancillary services associated with the portfolio procurements of the supply needed from block and spot purchases (C)



• An allocated portion of any contingency plan implementation costs incurred as a result of supplier( s) default either prior to or during the supply period

• An allocated portion of other costs incurred to develop and implement the competitive bid process for Retail Default Service including legal, customer notice, and consultant fees

• AEPS expenses incurred by the Company related to amendments to the AEPS Act occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs that are recovered through the Company's Solar Photo voltaic Requirements Charge Rider


• The cost of credit when the Company is considered by P JM to be the load serving entity (C)

(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp._) __ Revised Page 192

Rider N (continued)

PTCRev =

DS1nt =

Issued:


The cumulative revenues billed to Retail Customers by Customer Class for Default Service under the Default Service Supply Plan, excluding Market Adjustment Charge revenues and excluding applicable Pennsylvania gross receipts tax, through the end of the most recent Default Service Quarter

(C) (C)

billed under the respective Customer Class PTCDefault rates. (C)

The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter by Customer Class. Interest will be calculated monthly on the average balance of 1) the respective month's beginning balance of prior months' cumulative over or under collection ofPTCRev compared to the sum of the amortized portion of DSExp1 costs and DSExp2 costs incurred to date, including cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection ofPTCRev compared to the amortized portion ofDSExp1 costs and DSExp2

costs incurred to date, including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and based upon the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections. (C)

(C) Change

------- Effective: June 1, 2013


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. ~ __ Revised Page 193

Rider N (continued)

DSSales=

T=




Each change in the PTCDefault rates will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised PTCDefault rates. (C)

At the conclusion of the duration of this reconciliation rider, the Company is authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission.


(C) Change

Issued: Effective: June 1,2013 -------


Pennsylvania Power Company Canceling

Supplement No. _ to Electric Pa. P. U. C. No. 35

Revised Sheet No. 71.1 Revised Sheet No. 71.1


A Price to Compare Default Service Rate ("PTCDefault") shall be applied to each kWh of Default Service that Penn Power delivers to Customers under this rider as determined to the nearest onethousandth of a cent per kWh. The PTCDefault rate shall be billed to Customers receiving Default Service from the Company under this rider. The rates shall be calculated according to the provisions of this rider. (C)

For service rendered June 1, 2013 through August 31, 2013, the PTCDefault rates billed by Customer Class are as follows: (C)

Issued:

Commercial Customer Class (Rate Schedules GS (excluding GS Special Rule GSDS), GS Optional Controlled Service Rider, PNP, GM, GM Optional Controlled Service Rider, PLS, SV, SVD, SM, OH With Cooling Capabilities, OH Without Cooling Capabilities, and WH Non-Residential):

$X.XXXXX per kWh

Residential Customer Class (Rate Schedules RS; RS Optional Controlled Service Rider; RH; RH Water Heating Option; WH; and GS Special Provision for Volunteer Fire Companies, Non-Profit Senior Citizen Centers, Non-Profit Rescue Squads, and NonProfit Ambulance Services):

$X.XXXXX per kWh

(C) Change


(C)

(C)

(C)

Met-Ed/Penelec/Penn PoweriWest Penn Exhibit REV-3 Page 2 of 8




Price to Compare Default Service Rate Rider (Continued)

The PTCDefaull rates by Commercial or Residential Customer Class will be calculated at the end of each Default Service Quarter (three months ending March 31 S\ June 30th, September 30th, and December 31 SI) to be effective for the three-month period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1 S\ September 1 S\ December 1 S\ and March 1 SI). The PTCDefault rate shall be calculated by Customer Class in accordance with the formula set forth below: (C)

Where:

PTCCurrent =

Issued:


PTCCurrent = (PTCcurrent Cost Component X PTC LosSCurrenl) + PTCAdm + PTCMAC

E = [( (DS Exp1 + DSExp2 ) - PTCRev + DS1nt )/DSsales]

The current cost component of the PTCDefaull rate grossed up for line losses calculated by Commercial or Residential Customer Class determined to the nearest onethousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider.


PTCCurrent Cosl Component = The current cost component of the PTCDefault rate calculated by Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Retail Customers under this rider. This rate will be determined, by Customer Class, using the projected weighted cost of Default Service supply acquired by the Company to serve Default Service load and will include any AEPS expenses that may be incurred by the Company related to amendments to the AEPS Act that may occur subsequent to the effective date of the Supplier Master Agreement for

(C)

(C)

(C)

(C)

the Default Service Supply Plan. (C)

(C) Change






PTCMAc =

Issued:


The cost of Default Service supply will include the costs the Company incurs from any block and spot purchases as required by the terms of the Default Service Supply Plan. (C)

PTC Losscurrent = Distribution line losses for energy that are determined by the applicable Loss Factors specified below: (C)

Customer Class

Commercial Customer Class


Loss Factor

1.0661

1.0661



(C) Change

(C)

(C)

(C)

------ Effective: June 1, 2013

Pennsylvania Power Company

Issued: -------


Canceling



(C)

THIS PAGE INTENTIONALLY LEFT BLANK

(C) Change

Effective: June 1, 2013





E=

DSExp1 =

Issued:


The Price to Compare Default Service Reconciliation Rate component by Customer Class. The rate determined to the nearest one-thousandth of a cent per kWh by Customer Class shall be applied to each kWh of Default Service delivered to Retail Customers by Customer Class under this rider.

An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31,2015, including but not limited to:

• Incremental start-up administrative costs including metering and billing costs incurred and other costs as necessary to provide service

(C)

(C)

(C)

to retail Default Service Customers (C)


• The incremental administrative start-up costs associated with the portfolio procurements of the supply needed from block and spot purchases


(C) Change


(C)

(C)





DSExp2 =

Issued:


The cumulative costs to provide Default Service incurred by the Company for the respective Customer Class through the end of the previous Default Service Quarter, including but not limited to the following: (C)

• Payments made to winning bidders (C) • Any net energy costs associated with the portfolio procurements of

the supply needed from block and spot purchases. These net energy costs will reflect the net proceeds from sales in the wholesale energy market of any excess energy purchased by the Company to provide Default Service that exceeds actual energy used. (C)

• Any PJM related charges including capacity, operating reserve, transmission-related costs other than Non-Market Based Services Transmission Charges, and ancillary services associated with the portfolio procurements of the supply needed from block and spot purchases (C)



• An allocated portion of any contingency plan implementation costs incurred as a result of supplier(s) default either prior to or during the supply period (C)

• An allocated portion of other costs incurred to develop and implement the competitive bid process for Retail Default Service including legal, customer notice, and consultant fees (C)

• AEPS expenses incurred by the Company related to amendments to the AEPS Act occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs that are recovered through the Company's Solar

(C) (C)

Photovoltaic Requirements Charge Rider (C)

(C) Change






Issued:



• The cost of credit when the Company is considered by PJM to be the load serving entity (C)

The cumulative revenues billed to Retail Customers by Customer Class for Default Service under the Default Service Supply Plan, excluding Market Adjustment Charge revenues and excluding applicable Pennsylvania gross receipts tax, through the end of the most recent Default Service Quarter billed under the respective Customer Class PTCDefault rates.

The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter by Customer Class. Interest will be calculated monthly on the average balance of 1) the respective month's beginning balance of prior months' cumulative over or under collection of PTCRev compared to the sum of the amortized portion of DSExp1 costs and DSExp2 costs incurred to date, including cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection of PTCRev compared to the amortized portion of DSExp1 costs and DSExp2 costs incurred to date, including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and based upon the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections.

(C) Change


(C)

(C)





DSSales=

T=




Each change in the PTCDefault rates will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised PTCDcfault

(C)

(C)

rates. (C)

At the conclusion of the duration of this reconciliation rider, the Company is authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission. (C)


(C) Change



Supplement No. _ to Electric-Pa. P. U. C. No. 39

Original Page No. _ WEST PENN POWER COMPANY


A Price to Compare Default Service Rate ("PTCoefault") shall be applied to each kWh of Default Service that the Company delivers to Customers under this rider as determined to the nearest one-thousandth of a cent per kWh. The PTCOefault rate shall be billed to Customers receiving Default Service from the Company under this rider. The rates shall be calculated according to the provisions of this rider.

For service rendered June 1, 2013 through August 31,2013, the PTCOefault rates billed by Customer Class are as follows:

Residential Customer Class (Rate Schedule 10):

$ X.XXXXX per kWh

Commercial Customer Class (Rate Schedules 20, 22, 23, 24, 30 (smal!), 51, 52, 53, 54, 55, 56, 57, 58 and

ill

$ X.xXXXX per kWh

The PTCOefault rates by Residential or Commercial Customer Class will be calculated at the end of each Default Service Quarter (three months ending March 31 S

\ June 30th , September 30th

, and December 31st

) to be effective for the three-month period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1S

\ September'1 S\ December 1S

\ and March 1st). The PTCOefault rate shall be calculated by Customer Class in accordance with the formula set forth below:

Where:

PTCOefault = [(PTCcurrent + E)] X [1/ (1-T)]

PTCcurrent = (PTCCurrent Cost Component X PTC Losscurrent) + PTCAdm + PTCMAC

E = [((DSExP1 + DSExp2) - PTCRev + DSlnt) I DSsales]

PTCcurrent = The current cost component of the PTCOefault rate grossed up for line losses calculated by Residential or Commercial Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to retail Customers under this rider.

The computation of the PTCcurrent component of the PTCOefault rate by Residential or Commercial Customer Class will use the following procedures:

(C) Indicates Change

Issued ______ _ Effective June 1, 2013

(C)




PRICE TO COMPARE DEFAULT SERVICE RATE RIDER (Continued)

PTCcurrent Cost Component = The current cost component of the PTCOefault rate calculated by Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to retail Customers under this rider. This rate will be determined, by Customer Class, using the projected weighted cost of Default Service supply acquired by the Company to serve Default Service load and will include any AEPS expenses that may be incurred by the Company related to amendments to the AEPS Act that may occur subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan. The cost of Default Service supply will include the costs the Company incurs from any block and spot purchases as required by the terms of the Default Service Supply Plan.

PTC Losscurrent = Line losses for energy that are determined by the applicable Loss Factors specified below:

Customer Class Residential Customer Class Commercial Customer Class

Loss Factor 1.0910 1.0899

PTCAdm = An administrative fee for applicable administration costs by Customer Class determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to retail Customers under this rider.

PTCMAC = A Market Adjustment Charge to be applied to each kWh of Default Service delivered to retail Customers under this rider. The PTCMAc is $0.00500 per kWh for the Residential and Commercial Customer Class.

E = The Price to Compare Default Service Reconciliation Rate component by Customer Class. The rate determined to the nearest one-thousandth of a cent per kWh by Customer Class shall be applied to each kWh of Default Service delivered to retail Customers by Customer Class under this rider. Reconciliation amounts by Customer Class that are not fully refunded or recovered as of May 31, 2013 will be included in the Price to Compare Default Service Reconciliation Rate component.

DSExp1 = An allocated portion of the incremental start-up costs incurred by the Company through May


31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31,2015, including but not limited to:



• The incremental administrative start-up costs associated with the portfolio procurements of the supply needed from block and spot purchases


(C)




PRICE TO COMPARE DEFAULT SERVICE RATE RIDER (Continued)

Interest will be calculated monthly on the average of the beginning and the end of month balances of these costs and included in the determination of the monthly amortized amount. The monthly interest rate will be based upon the 41 P .S. § 202 statutory rate.

= The cumulative costs to provide Default Service incurred by the Company for the respective Customer Class through the end of the previous Default Service Quarter, including but not limited to the following:


Issued ______ _

• Payments made to winning bidders • Any net energy costs associated with the portfolio procurements of the

supply needed from block and spot purchases. These net energy costs will reflect the net proceeds from sales in the wholesale energy market of any excess energy purchased by the Company to provide Default Service that exceeds actual energy used.

• Any PJM related charges including capacity, operating reserve, transmission-related costs other than Non-Market Based Services Transmission Charges, and ancillary services associated with the portfolio procurements of the supply needed from block and spot purchases

• An allocated portion of administrative costs associated with the portfolio procurements of the supply needed from block and spot purchases

• An allocated portion of incremental administrative costs including metering and billing costs incurred and other costs as necessary to provide service to retail Default Service Customers

• An allocated portion of any contingency plan implementation costs incurred as a result of supplier(s) default either prior to or during the supply period

• An allocated portion of other costs incurred to develop and implement the competitive bid process for retail Default Service including legal, customer notice, and consultant fees

• AEPS expenses incurred by the Company related to amendments to the AEPS Act occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs that are recovered through the Company's Solar Photovoltaic Requirements Charge Rider

• The net AEPS expenses incurred by the Company associated with the portfolio procurements of the supply needed from block and spot purchases. These net AEPS expenses will reflect the net proceeds of sales of AEPS credits purchased that exceed the AEPS credits needed to meet AEPS requirements.

• The cost of credit when the Company is considered by PJM to be the load serving entity

Effective June 1, 2013

(C)




PRICE TO COMPARE DEFAULT SERVICE RATE RIDER (Concluded)

PTCRev = The cumulative revenues billed to retail Customers by Customer Class for Default Service under the Default Service Supply Plan, excluding Market Adjustment Charge revenues and excluding applicable Pennsylvania gross receipts tax, through the end of the most recent Default Service Quarter billed under the respective Customer Class PTCOefault rates.

DSlnt = The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter by Customer Class. Interest will be calculated monthly on the average balance of: 1) the respective month's beginning balance of prior months' cumulative over or under collection of PTCRev compared to the sum of the amortized portion of DSExp1 costs and DSExp2 costs incurred to date, including cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection of PTCRev compared to the amortized portion of DSExp1 costs and DSExp2 costs incurred to date, including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and based upon the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections.

DSSaies = The Company's projected Default Service kWh sales to retail Customers by Customer Class for the three-month billing period that the E rate component of the PTCOefault rate will be in effect.

T = The Pennsylvania gross receipts tax rate in effect during the billing month expressed in decimal form as reflected in the Company's base rates.

Each change in the PTCOefault rates will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised PTCOefault rates.


Application of the PTCOefault rates shall be subject to annual review and audit by the Commission.



(C)



RIDERS

RIDER 0 HOURLY PRICING DEFAULT SERVICE RIDER

AVAILABILITY:

The charges billed under this rider are applicable to all Customers on Rate Schedules GSLarge, GP, and TP who elect to take Default Service from the Company. These charges are also applicable to Customers on Rate Schedules GS-Small and GS-Medium on a voluntary basis who meet the metering requirements of this rider. Rates shall be billed under this rider on the next scheduled meter reading date after electing Default Service. (C)

All GS-Small and GS-Medium Customers electing service under this rider must have Smart Meter technology installed as part of the Company's Smart Meter Plan filed with and approved by the Commission.

Hourly Pricing Service Charges:

Customers participating in the Hourly Pricing Default Service Rider will be billed for usage based on the following calculation: (C)

Hourly Pricing Service Charges = (HP Energy Charge + HP Cap-AEPS-Other Charge + HP Administrative

Charge + HP Reconciliation Charge) X [1 / (1-T)] (C)

HP Energy Charge per kWh:

Issued:

n

HP Energy Charge = E (kWht X (LMPt + HP Anc) X HP Loss Multiplier)

(=1

Where:

n = Total number of hours in the billing period

t = An hour in the billing period

LMP = the "Real Time" PJM load-weighted average Locational Marginal Price for the ME Transmission Zone.

HP Anc = $0.00200 per kWh for ancillary services

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp._) __ Revised Page 189

Rider 0 (continued)

HP Loss Multipliers:


GS-Small 1.0515 GS-Medium 1.0515 GS-Large 1.0515 GP 1.0171 TP 1.0007

These HP Loss Multipliers exclude transmission losses.

HP Cap-AEPS-Other Charge:

$X.XXXXX per kWh representing the costs paid by the Company to the Supplier for Capacity, AEPS costs, and any other costs incurred by the Supplier multiplied by the HP Loss Multipliers. This charge is subject to quarterly adjustments. (C)

HP Administrative Charge:

$X.XXXXX per kWh representing the administrative costs incurred by the Company associated with providing Hourly Pricing Service. (C)

(C)

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp. ~ __ Revised Page 190

Rider 0 (continued)

HP Reconciliation Charge:


The HP Reconciliation Charge Rate ("EHP") shall be applied to each kWh of Default Service that Met-Ed delivers to Customers under this rider as determined to the nearest onethousandth of a cent per kWh. The EHP rate shall be included as a non-bypassable component billed to Customers receiving Default Service from the Company under this rider. The rate shall be calculated according to the provisions of this rider.

For service rendered June 1,2013 through August 31,2013, the EHP rate is as follows: (C)

HP Reconciliation Charge Rate = $X.XXXXX per kWh (C)

The EHP rate will be calculated at the end of each Default Service Quarter (three months ending March 31 S\ June 30t\ September 30th, and December 31 st) to be effective for the threemonth period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1 S\ September 1 S\ December 1 S\ and March 1 SI). The EHP rate shall be calculated in accordance with the formula set forth below: (C)

EHP = ((DSHPExpJ + DSHPExp2) - PTCHPRev + DSHPlnl)/DSHPSales (C)

Where:

EHP = The rate determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Customers under this rider.

DSHPExpJ =

Issued:

An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31, 2015 including but not limited to:

(C) Change


(C)


METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp.--,> __ Revised Page 191

Rider 0 (continued)

DSHPExp2 =


• Incremental start-up administrative costs including metering and billing costs incurred and other costs as necessary to provide service to Retail Default Service Customers

• Other start-up costs incurred to develop and implement the competitive bid process for the Retail Default Service Supply Plan including legal, customer notice, and consultant fees.


The cumulative costs to provide Hourly Pricing Default Service incurred by the Company through the end of the previous Default Service Quarter including but not limited to the following:

• Payments made to winning bidders • AEPS expenses incurred by Met-Ed related to amendments to

the AEPS Act and/or related laws or regulations occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs recovered through the Company's Solar Photovoltaic Requirements Charge Rider



• An allocated portion of other costs incurred to develop and implement the competitive bid process for retail Default Service including legal, customer notice, and consultant fees.

• The cost of credit when the Company is considered by P JM to

(C)

be the load serving entity (C)

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp. ~ __ Revised Page 192

Rider 0 (continued)


PTCHPRev = The cumulative revenues, excluding applicable Pennsylvania gross receipts tax, through the end of the most recent Default Service Quarter billed to Hourly Pricing Default Service Customers under this rider including the applicable EHP rates.

DSHPlnt = The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter. Interest will be calculated monthly on the average balance of 1) the respective month's beginning balance of prior months' cumulative over or under collection of PTCHPRev compared to the sum ofthe amortized portion of DSHPExpl costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning ofthe month; and 2) the respective month's ending balance of cumulative over or under collection of PTCHPRev compared to the amortized portion of DSHPExpl costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections.

DSHPSales = The Company's projected Hourly Pricing Default Service kWh sales to Retail Customers for the three-month billing period that the EHP rate will be in effect.

(C)

(C)

Gross Receipts Tax: (C)

Issued:


(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp._) __ Revised Page 193

Rider 0 (continued)


General: (C)

Each change in the EHP rate as well as other rates within this rider will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised rates. (C)


Application of the EHP rate shall be subject to annual review and audit by the Commission.

Adjustment for Meter Location:

Where the Company meters distribution secondary voltage service on the primary side of the transformers, the demand and energy registrations shall each be reduced by two and one-half percent (2.5%). Where the Company meters service supplied at voltages higher than the distribution secondary voltage on the secondary side of the transformers, either compensating -metering equipment will be used to correct for transformer losses or the demand and energy meter registration shall each be increased by two and one-half percent (2.5%).

Metering:

The Customer is responsible for providing a working dedicated telephone line for metering purposes at each metering point or shall pay the Company any and all expenses for providing communications to the interval equipment at the Customer's location(s). Maintenance

(C)

of the meter(s) will be the responsibility of the Company, which will own the meter(s). (C)

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 194

Issued:



(C) Change

------ Effective: June 1,2013

(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp._) __ Revised Page 194 Superseding __ Revised Page 194

RIDERS

RIDER 0 HOURLY PRICING DEFAULT SERVICE RIDER

AVAILABILITY:

The charges billed under this rider are applicable to all Customers on Rate Schedules GSLarge, GP, and LP who elect to take Default Service from the Company. These charges are also applicable to Customers on Rate Schedules GS-Small and GS-Medium on a voluntary basis who meet the metering requirements of this rider. Rates shall be billed under this rider on the next scheduled meter reading date after electing Default Service. (C)

All GS-Small and GS-Medium Customers electing service under this rider must have Smart Meter technology installed as part of the Company's Smart Meter Plan filed with and approved by the Commission.


Customers participating in the Hourly Pricing Default Service Rider will be billed for usage based on the following calculation: (C)

Hourly Pricing Service Charges = (HP Energy Charge + HP Cap-AEPS-Other Charge + HP Administrative

Charge + HP Reconciliation Charge) X [1 I (1-T) ] (C)


Issued:

n

HP Energy Charge = E (kWhl X (LMPt + HP Anc) X HP Loss Multiplier)

t=1

Where:



LMP = the "Real Time" PJM load-weighted average Locational Marginal Price for the PN Transmission Zone.

HP Anc = $0.00200 per kWh for ancillary services

(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. --.J __ Revised Page 195 Superseding __ Revised Page 195

RIDERS

Rider 0 (continued)

HP Loss Multipliers: GS-Small 1.0573 GS-Medium 1.0573 GS-Large 1.0573 GP 1.0234 LP 1.0035

These HP Loss Multipliers exclude transmission losses.


$X.XXXXX per kWh representing the costs paid by the Company to the Supplier for Capacity, AEPS costs, and any other costs incurred by the Supplier multiplied by the HP Loss Multipliers. This charge is subject to quarterly adjustments. (C)


$X.XXXXX per kWh representing the administrative costs incurred by the Company associated with providing Hourly Pricing Service. (C)

(C)

(C) Change





RIDERS Rider 0 (continued)


The HP Reconciliation Charge Rate ("EHP") shall be applied to each kWh of Default Service that Penelec delivers to Customers under this rider as determined to the nearest onethousandth of a cent per kWh. The EHP rate shall be included as a non-bypassable component billed to Customers receiving Default Service from the Company under this rider. The rate shall be calculated according to the provisions of this rider.

For service rendered June 1,2013 through August 31, 2013, the EHP rate is as follows: (C)


The EHP rate will be calculated at the end of each Default Service Quarter (three months ending March 31 st, June 30t\ September 30th, and December 31 st) to be effective for the threemonth period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1 st, September 1 st, December 1 st, and March 1 st). The EHP rate shall be calculated in accordance with the formula set forth below: (C)

Where:

EHP =

DSHPExpl =

EHP = ((DSHPExpl + DSHPExp2) - PTCHPRev + DSHPlnt)/DSHPSales (C)

The rate determined to the nearest one-thousandth of a cent per kWh to be applied to each kWh of Default Service delivered to Customers under this rider.

An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31, 2015 including but not limited to:



(C) Change

(C)



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ __ Revised Page 197

Rider 0 (continued)

DSHPExp2 =




• Payments made to winning bidders • AEPS expenses incurred by Penelec related to amendments to

the AEPS Act and/or related laws or regulations occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs recovered through the Company's Solar Photovoltaic Requirements Charge Rider




• The cost of credit when the Company is considered by PJM to

(C)

be the load serving entity (C)

Issued:


(C) Change


(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. ~ __ Revised Page 198 Superseding __ Revised Page 198

RIDERS

Rider 0 (continued)

DSHPlnt = The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter. Interest will be calculated monthly on the average balance of 1) the respective month's beginning balance of prior months' cumulative over or under collection of PTCHPRev compared to the sum of the amortized portion of DSHPExpl costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning ofthe month; and 2) the respective month's ending balance of cumulative over or under collection ofPTCHPRev compared to the amortized portion of DSHPExpl costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections. (C)

DSHPSales = The Company's projected Hourly Pricing Default Service kWh sales to Retail Customers for the three-month billing period that the EHP rate will be in effect. (C)



General: (C)




(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ __ Revised Page 199 Superseding __ Revised Page 199

RIDERS

Rider 0 (continued)

Adjustment for Meter Location:

Where the Company meters distribution secondary voltage service on the primary side of the transformers, the demand and energy registrations shall each be reduced by two and one-half percent (2.5%). Where the Company meters service supplied at voltages higher than the distribution secondary voltage on the secondary side of the transformers, either compensating -metering equipment will be used to correct for transformer losses or the demand and energy meter registration shall each be increased by two and one-half percent (2.5%).

Metering:

The Customer is responsible for providing a working dedicated telephone line for metering purposes at each metering point or shall pay the Company any and all expenses for providing communications to the interval equipment at the Customer's location(s). Maintenance of the meter(s) will be the responsibility ofthe Company, which will own the meter(s).

(C) Change


(C)

(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. ~ __ Revised Page 200 Superseding __ Revised Page 200

RIDERS


(C) Change

Issued: ------ Effective: June 1,2013

(C)





Issued:

HOURLY PRICING DEFAULT SERVICE RIDER

AVAILABILITY: (C)

The charges billed under this rider are applicable to all Customers who elect to take Default Service from the Company and are receiving service under Rate Schedules GP, GT, or GS if such GS Customers also are under Special Rule GSDS. These charges are also applicable to Customers on Rate Schedules GS and GM on a voluntary basis who meet the metering requirements of this rider. Rates shall be billed under this rider on the next scheduled meter reading date after electing Default Service. (C)

All GS and GM Customers electing service under this rider must have Smart Meter technology installed as part of the Company's Smart Meter Plan filed with and approved by the Commission. (C)


Customers participating in the Hourly Pricing Default Service Rider will be billed for usage based on the following calculation:

Hourly Pricing Service Charges = (HP Energy Charge + HP Cap-AEPS-Other Charge + HP Administrative Charge + HP

(C)

Reconciliation Charge) X [1 / (1-T)] (C)

HP Energy Charge per kWh: n

HP Energy Charge = E (kWht X (LMPt + HP Anc) X HP Loss Multiplier)

Where:



LMP = the "Real Time" PJM load-weighted average Locational Marginal Price for the Penn Power Transmission Zone.

HP Ane = $0.00200 per kWh for ancillary services

HP Loss Multipliers: GS-Small GS-Medium GP GT

1.0515 1.0515 1.0171 1.0007

These HP Loss Multipliers exclude transmission losses. (C) Change






Issued:

Hourly Pricing Default Service Rider (Continued)


$x.xxxxx per kWh representing the costs paid by the Company to the Supplier for Capacity, AEPS costs, and any other costs incurred by the Supplier multiplied by the HP Loss Multipliers. This charge is subject to quarterly adjustments. (C)


$x.xxxxx per kWh representing the administrative costs incurred by the Company associated with providing Hourly Pricing Service.

(C) Change


(C)

(C)





Issued:



Where:

The HP Reconciliation Charge Rate (,'EHP") shall be applied to each kWh of Default Service that Penn Power delivers to Customers under this rider as determined to the nearest one-thousandth of a cent per kWh. The EHP rate shall be included as a nonbypassable component billed to Customers receiving Default Service from the Company under this rider. The rate shall be calculated according to the provisions of this rider. (C)

For service rendered June 1,2013 through August 31, 2013, the EHP rate is as follows: (C)


The EHP rate will be calculated at the end of each Default Service Quarter (three months ending March 31 S\ June 30th

, September 30th, and December 31 st) to be effective for the

three-month period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1 S\ September 1 S\ December 1 S\ and March 1 st).

The EHP rate shall be calculated in accordance with the formula set forth below: (C)

EHP = (DSHPExpl + DSIIPExp2) - PTCHPRev + DSIIPlnt)/DSHPSales (C)


DSHPExpl = An allocated portion of the incremental start-up costs incurred by the Company through May 31,2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31, 2015 including but not limited to:



Interest will be calculated monthly on the average of the beginning and the end of month balances of these costs and included in the determination of the monthly amortized amount. The monthly interest rate will be based upon the 41 P.S. §

(C)

202 statutory rate. (C) (C) Change






Issued:

DSHPExp2 =



• Payments made to winning bidders • AEPS expenses incurred by Penn Power related to amendments to

the AEPS Act and/or related laws or regulations occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs recovered through the Company's Solar Photovoltaic Requirements Charge

(C)

R~cr ~




• The cost of credit when the Company is considered by PlM to be the

(C)

load serving entity (C)

(C) Change

(C) (C)






PTCHPRev~

DSHPIllt =

DSHPSales=


The cumulative revenues, excluding applicable Pennsylvania gross receipts tax, through the end of the most recent Default Service Quarter billed to Hourly Pricing Default Service Customers under this rider including the applicable EHP rates.

The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter. Interest will be calculated monthly on the average balance of 1) the respective month's beginning balance of prior months' cumulative over or under collection ofPTCHPRev compared to the sum of the amortized portion of DSHPExpI costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection of PTCHPRev compared to the amortized portion of DSHPExpl costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections.

The Company's projected Hourly Pricing Default Service kWh sales to Retail Customers for the three-month billing period that the EHP rate will be in effect.

(C)

(C)



General: (C)

Issued:


At the conclusion of the duration of this reconciliation rider, the Company is authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission. (C)


(C) Change



WEST PENN POWER COMPANY


AVAILABILITY:


Original Page No. _

The charges billed under this rider are applicable to all Customers on Rate Schedules 30 (large), 40, 41, 44, 46, and 86 who elect to take Default Service from the Company. These charges are also applicable to Customers on Rate Schedules 20, 22, 23, 24, and 30 (small) on a voluntary basis who meet the metering requirements of this rider. Rates shall be billed under this rider on the next scheduled meter reading date after electing Default Service.

All Rate Schedules 20, 22, 23, 24, and 30 (small) Customers electing service under this rider must have smart meter technology installed as part of the Company's smart meter plan filed with and approved by the Commission.



Hourly Pricing Service Charges = (HPEnergy Charge + HPCap-AEPS-Other Charge + HP Administrative Charge + HPReconciliation Charge) X [1/ (1-T)]


11

HPEnergyCharge = L [kWht x (LMPt + HPAnc) X HPLoss Multipliers] 1=1

Where:


= An hour in the billing period

LMP = the "Real Time" PJM load-weighted average Locational Marginal Price for the APS Transmission Zone

= $0.00200 per kWh for ancillary services

HPLoss Multipliers:


Issued ______ _

Rates 20, 22, 23, 24, and 30 (small) Rate 30 (large) Rates 40,41,44,46, and 86

1.0899 1.0678 1.0356


(C)




HOURLY PRICING DEFAULT SERVICE RIDER (Continued)


$X.XXXXX per kWh representing the costs paid by the Company to the supplier for capacity, AEPS costs, and any other costs incurred by the supplier multiplied by the HPLoss Multipliers. This charge is subject to quarterly adjustments.


$X.XXXXX per kWh representing the administrative costs incurred by the Company associated with providing Hourly Pricing Service.


The HP Reconciliation Charge Rate ("EHP") shall be applied to each kWh of Default Service that the Company delivers to Customers under this rider as determined to the nearest one-thousandth of a cent per kWh. The EHP rate shall be included as a non-bypassable component billed to Customers receiving Default Service from the Company under this rider. The rate shall be calculated according to the provisions of this rider, and shall be calculated and applied equally to Customers under this rider and the Tariff No. 37 Hourly Pricing Default Service Rider. Reconciliation amounts that are not fully refunded or recovered as of May 31, 2013 will be included in the EHP rate.

For service rendered June 1, 2013 through August 31, 2013, the EHP rate is as follows:

HP Reconciliation Charge Rate = $X.XXXXX per kWh

The EHP rate will be calculated at the end of each Default Service Quarter (three months ending March 31 st, June 30th, September 30th , and December 31 st) to be effective for the three-month period beginning on the first day of the third calendar month following the end of that Default Service Quarter (June 1st. September 1st. December 1st. and March 1 st). The EHP rate shall be calculated in accordance with the formula set forth below:

Where:

EHP = ((DSHPExp1 + DSHPExp2) - PTCHPRev + DSHPlnt) / DSHPSales


DSHPExp1 = An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31, 2015 including but not limited to:


• Other start-up costs incurred to develop and implement the competitive bid process for the retail Default Service Supply Plan including legal, customer notice, and consultant fees


Issued ______ _ Effective June 1,2013

(C)






DSHPExp2 = The cumulative costs to provide Hourly Pricing Default Service incurred by the Company through the end of the previous Default Service Quarter including but not limited to the following:

• Payments made to winning bidders • AEPS expenses incurred by the Company related to amendments

to the AEPS Act and/or related laws or regulations occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs recovered through the Company's Solar Photovoltaic Requirements Charge Rider






DSHPlnt = The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter. Interest will be calculated monthly on the average balance of: 1) the respective month's beginning balance of prior months' cumulative over or under collection of PTCHPRev compared to the sum of the amortized portion of DSHPExp1 costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection of PTCHPRev compared to the amortized portion of DSHPExp1 costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and the 41 P.S. § 202 statutory annual rate plus two percent for (over) collections.

DSHPSales = The Company's projected Hourly Pricing Default Service kWh sales to retail Customers for the three-month billing period that the EHP rate will be in effect.



(C)




Original Page No. _

HOURLY PRICING DEFAULT SERVICE RIDER (Concluded)

Gross Receipts Tax:


General:

Each change in the EHP rate as well as other rates within this rider will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised rates.





(C)




AVAILABILITY:


Original Page No. _

The charges billed under this rider are applicable to all Customers who elect to take Default Service from the Company. Rates shall be billed under this rider on the next scheduled meter reading date after electing Default Service.



Hourly Pricing Service Charges = (HPEnergy Charge + HPCap-AEPS-Other Charge + HPAdministrative Charge + HPReconciliation Charge) X [1 / (1-T)]


II

HPEnergyCharge = I. [kWht x (LMPt + HPAnc) X HPLoss MultiPlier] t=!

Where:


= An hour in the billing period

LMP = the "Real Time" PJM load-weighted average Locational Marginal Price for the APS Transmission Zone

= $0.00200 per kWh for ancillary services

HPLoss Multiplier = 1.0356


$X.XXXXX per kWh representing the costs paid by the Company to the supplier for capacity, AEPS costs, and any other costs incurred by the supplier multiplied by the HPLoss Multiplier. This charge is subject to quarterly adjustments.


$X.XXXXX per kWh representing the administrative costs incurred by the Company associated with providing Hourly Pricing Service.



(C)


WEST PENN POWER COMPANY Supplement No. _ to Electric-Pa. P. U. C. No. 37

Original Page No. _



The HP Reconciliation Charge Rate ("EHP") shall be applied to each kWh of Default Service that the Company delivers to Customers under this rider as determined to the nearest one-thousandth of a cent per kWh. The EHP rate shall be included as a non-bypassable component billed to Customers receiving Default Service from the Company under this rider. The rate shall be calculated according to the provisions of this rider, and shall be calculated and applied equally to Customers under this rider and the Tariff No. 39 Hourly Pricing Default Service Rider. Reconciliation amounts that are not fully refunded or recovered as of May 31,2013 will be included in the EHP rate.

For service rendered June 1, 2013 through August 31, 2013, the EHP rate is as follows:

HP Reconciliation Charge Rate = $X.XXXXX per kWh

The EHP rate will be calculated at the end of each Default Service Quarter (three months ending March 31 s\ June 30th , September 30th , and December 31 st) to be effective for the three-month period beginning on the first dar of the third calendar month following the end of that Default Service Quarter (June 1st, September 1S

\ December 1s, and March 1st). The EHP rate shall be calculated in accordance with the formula set forth below:

Where:

EHP = ((DSHPExp1 + DSHPExp2) - PTCHPRev + DSHPlnt) / DSHpsales


DSHPExp1 = An allocated portion of the incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's Default Service Supply Plan to provide Default Service amortized over the twenty-four (24) month period ending May 31, 2015 including but not limited to:


• Other start-up costs incurred to develop and implement the competitive bid process for the retail Default Service Supply Plan including legal, customer notice, and consultant fees

Interest will be calculated monthly on the average of the beginning and the end of month balances of these costs and included in the determination of the monthly amortized amount. The monthly interest rate will be based upon the 41 P .S. § 202 statutory rate.



(C)



Original Page No. _


DSHPExp2 = The cumulative costs to provide Hourly Pricing Default Service incurred by the Company through the end of the previous Default Service Quarter including but not limited to the following:

• Payments made to winning bidders • AEPS expenses incurred by the Company related to amendments

to the AEPS Act and/or related laws or regulations occurring subsequent to the effective date of the Supplier Master Agreement for the Default Service Supply Plan excluding such costs recovered through the Company's Solar Photovoltaic Requirements Charge Rider






DSHPlnt = The cumulative amount of carrying charges calculated on a monthly basis through the end of the most recent Default Service Quarter. Interest will be calculated monthly on the average balance of: 1) the respective month's beginning balance of prior months' cumulative over or under collection of PTCHPRev compared to the sum of the amortized portion of DSHPExp1 costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month; and 2) the respective month's ending balance of cumulative over or under collection of PTCHPRev compared to the amortized portion of DSHPExp1 costs and DSHPExp2 costs incurred to date including cumulative interest calculated thereon through the beginning of the month. The monthly interest rate will be based upon the 41 P.S. § 202 statutory annual rate for under collections and the 41 P .S. § 202 statutory annual rate plus two percent for (over) collections.

DSHPSales = The Company's projected Hourly Pricing Default Service kWh sales to retail Customers for the three-month billing period that the EHP rate will be in effect.

Gross Receipts Tax:




(C)



HOURLY PRICING DEFAULT SERVICE RIDER (Concluded)

General:


Original Page No. _

Each change in the EHP rate as well as other rates within this rider will be filed with the Commission thirty (30) days prior to the effective date of the rate changes. The Company shall file details in support of the revised rates.





(C)



RIDERS

RIDERR

Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 203 Superseding Original Page 203

DEFAULT SERVICE SUPPORT RIDER

A Default Service Support (DSS) rate shall be applied to DSS Sales delivered by Met-Ed to Delivery Service Customers under this rider as determined to the nearest one-thousandth of a cent per kWh or cent per kW, as applicable. The DSS rate shall be billed to Customers receiving Delivery Service from the Company under this rider. The DSS rates shall be calculated according to the provisions of this rider. The DSS Rider shall be non-bypassable. (C)

(C)

(C) Change

Issued: Effective: June 1,2013 ------


Rider R (continued)


RIDERS


The DSS rates by rate schedule shall be calculated annually in accordance with the formula set forth below:

DSS rate = [UE + TSC1 + NMB + RE + CEC + OAP + CRP] X [1/ (l-T)]

The components of the formula are defined below:

Default Service Related Uncollectibles

UE = A default service-related unbundled uncollectible accounts expense charge, determined by Customer Class and stated to the nearest one-thousandth of a cent per kWh or cent per kW, as applicable, to be applied to DSS Sales delivered by Met-Ed to Delivery Service Customers under this rider. The UE reflects the generation-related portion of the uncollectible account expense based on the cost of service study in the Company's base rate case at Docket No. R-00061366 and the additional uncollectible accounts expense incurred by the Company as a result of providing Default Service under this tariff. This component ofthe DSS rate in this non-bypassable rider is non-

(C)

(C)

reconcilable. (C)

Issued:

The unbundled uncollectible accounts expense associated with Default Service and a purchase of receivables program allocated to Delivery Service Customers on a nonbypassable, non-reconcilable basis will be Customer Class specific and will be adjusted annually on June 1 of each year based on the projected price of Default Service. Adjustments, if necessary, will be made to the uncollectible percentage in a future distribution base rate case or the start of the next Default Service Program, whichever occurs earlier. (C)

The unbundled generation related uncollectibles as determined from the cost of service study in the Company's base rate case at Docket No. R-00061366, combined with the calculated incremental uncollectible accounts expense based on the projected price of Default Service, represents the appropriate fully unbundled non-reconcilable uncollectible accounts expense to be recovered in DSS rates. The calculated incremental uncollectible expense is based on the historical relationship of uncollectible accounts expense to total revenues for the twelve months ended December 31, 2006, utilizing the top sheets from the Company's rate case compliance filings at Docket No. R-00061366. This ratio is applied to the change in the Company's revenues that would result from the

change experienced in default service prices. Incremental uncollectible accounts expense divided by the projected DSS Sales yields an adjustment to the retail price of Default Service supply to be included in DSS rates. (C)

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 205 Superseding Original Page 205

RIDERS Rider R (continued)

The UE charges by Customer Class to be included in DSS rates are as follows:

Industrial Customer Class (Rate GS - Large, GP and Rate TP):

$XXXXXX per kW

Commercial Customer Class (Rate GS-Small, Rate GS-Medium, Rate MS, Borderline Service, Street Lighting Service, Ornamental Street Lighting and Outdoor Lighting Service):

XXXX cents per kWh


X.XXX cents per kWh

2006 Deferred Transmission Service Charges

TSC] = [(TSCD - E) / S] X Rate Schedule Adjustment Factor

Where:

TSC] = The charge to be applied to Delivery Service Customers under this rider to recover the 2006 Transmission Service Charge Deferral ("TSCD"), including carrying charges, which was approved by the Commission in its final order at Docket No. R-00061366, authorizing the Company to amortize such deferral over a 10 year period beginning January 11, 2007 and ending on December 31,2016. The 10 year amortization ofthe 2006 TSCD that was not fully recovered under the Transmission Service Charge Rider is being recovered under this DSS Rider which replaced the TSC Rider. The TSC] rate will be adjusted on June 1 of each year based on the Company's latest sales forecast

(C)

(C)

(C)

available at the time. (C)

TSCD = The balance of the 2006 TSCD including carrying charges, that, as of March 31, 2013 remains to be amortized over the remaining months of the amortization period. (C)

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp._) ~~ Revised Page 206 Superseding Original Page 206


E = The over or under-collection of the TSCD that results from billing the TSC1 during the DSS Reconciliation Year (an over-collection is denoted by a positive E and an undercollection by a negative E), including applicable interest. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.

S= The Company's total DSS Sales to Delivery Service Customers projected for the DSS Computational Year.

Non-Market Based Services Transmission Charges

NMB = (NMBc - E) / S

Where:

NMB = The charge to be applied to Delivery Service Customers served under this rider for

(C)

(C)

(C)

Non-Market Based Services Transmission Charge costs incurred by the Company. (C)

NMBc = Forecasted NMB costs applicable to the Company's DSS Sales. Forecasted NMB costs shall include costs for FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Point-to-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through the Company's Price To Compare Default Service Rate Rider. Forecasted NMB costs are allocated to each Customer Class based upon each Customer Class's contribution to the metered demand coincident with the Met-Ed Zone peak hour. (C)

E = The over or under-collection of the NMBc that results from billing of the NMB during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers. (C)

S=

Issued:

The Company's total DSS Sales per Customer Class to Delivery Service Customers projected for the DSS Computational Year.

(C) Change

Effective: June 1,2013 -----~

(C)



RIDERS



(C) Change

Issued: ----- Effective: June 1,2013

(C)


Rider R (continued)


RIDERS


The NMB rates billed to Customers by Rate Schedule are shown below. The TSC1 rates billed to Customers shall be adjusted by the following Rate Schedule Adjustment Factors shown below: (C)

Rate Schedule Adjustment TSC1 NMB (C)

Rate Schedule Factors Rate Rate

Rate Schedule RT & GS Volunteer Fire Company and Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate - TOD 0.9086 X.XXX (C) X.XXX (C)

Rate Schedule RS & GS Volunteer Fire Company and Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate - Non-TOD 1.0759 X.XXX(C) X.XXX (C) Rate Schedule GS - Small 1.0560 X.XXX(C) X.XXX (C)

Rate Schedule GS - Medium 1.0560 X.XXX(C) X.XXX (C)

Rate Schedule GS - Large 0.9939 $X.XXXXX (C) $X.XXXXX (C)

Rate Schedule GP 0.9332 $X.XXXXX (C) $X.XXXXX (C)

Rate Schedule TP 0.8911 $X.XXXXX (C) $X.XXXXX (C)

Rate Schedule MS 0.9702 X.XXX (C) X.XXX(C)

Rate Schedule OL 0.6712 X.XXX(C) X.XXX (C)

Rate Schedule ST 0.6721 X.XXX (C) X.XXX(C)

Rate Schedule BRD 0.9550 X.XXX(C) X.XXX (C)

The above rates are listed as a cent per kWh, with the exception of Rate Schedules GS -Large, GP and TP which are listed as a dollar per kW. (C)

(C) Change

Issued: ----- Effective: June 1,2013


Rider R (continued)

Retail Enhancements


RIDERS

Electric Pa. P.u.e. No. 51 (Supp. ~ __ Revised Page 209 Superseding Original Page 209

RE = [ (REe - E) / S]

Where:

RE = The charge to be applied to Delivery Service Customers served under this rider for the

(C)

Retail Enhancement Costs incurred by the Company. (C)

REc = The Retail Enhancement Costs incurred by the Company to cover programming expenses and implementation costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection of the REc that results from billing ofthe RE during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.

S=

Issued:


(C) Change

Effective: June 1, 2013 ------

(C)

(C)


METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp._) __ Revised Page 210 Superseding Original Page 210

RIDERS

Rider R (continued)

The RE rates by Customer Class to be included in DSS rates are as follows:


$X.XXXXX per kW


X.XXX cents per kWh


X.XXX cents per kWh

Customer Education Charges

CEC = (CECc - E) / S

Where:

CEC = The charge to be applied to Delivery Service Customers served under this rider for

(C)

(C)

(C)

(C)

(C)

(C)

Customer Education Charges incurred by the Company. (C)

CECc = Customer Education costs for the specific Customer Class to cover customer education costs associated with competitive market enhancements approved by the Commission, excluding costs being recovered by the Consumer Education Program Cost Recovery ~~ ~

(C) Change

Issued: Effective: June 1,2013 ------


Rider R (continued)


RIDERS

Electric Pa. P.U.C. No. 51 (Supp. ~ Original Page 21 OA

E = The over or under-collection of the CECc that results from the billing ofthe CEC during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers. (C)

S=

Issued:


The CEC rates by Customer Class to be included in DSS rates are as follows:


$X.XXXXX per kW


X.XXX cents per kWh


X.XXX cents per kWh

(C) Change

------ Effective: June 1,2013

(C)

(C)

(C)

(C)

(C)


Rider R (continued)

Opt-In Aggregation Program


RIDERS

Electric Pa. P.u.e. No. 51 (Supp._) Original Page 21 OB

OAP = (OAPe - E) / S

Where:

OAP = The charge to be applied to Residential Customer Class Delivery Service Customers

(C)

(C)

served under this rider for Opt-In Aggregation Program costs incurred by the Company. (C)

OAPe = Opt-In Aggregation Program costs for the Residential Customer Class to cover opt-in aggregation costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection of the OAPe that results from the billing ofthe OAP during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Residential Customer Class Delivery Service Customers.

S= The Company's total retail kWh sales to Residential Customer Class Delivery Service Customers projected for the DSS Computational Year.

The OAP rate for the Residential Customer Class to be included in DSS rates is as

(C)

(C)

follows: (C)

Issued:


X.XXX cents per kWh

(C) Change


(C)


Rider R (continued)

Customer Referral Program


RIDERS

Electric Pa. P.u.e. No. 51 (Supp. ~ Original Page 21 OC

CRP = (CRPc - E) / S

Where:

CRP = The charge to be applied to Residential Customer Class Delivery Service Customers

(C)

(C)

served under this rider for Customer Referral Program costs incurred by the Company. (C)

CRPc = Customer Referral Program costs for the Residential Customer Class to cover customer referral costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection of the CRPc that results from the billing of the CRP during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Residential Customer Class Delivery Service Customers.


The CRP rate for the Residential Customer Class to be included in DSS rates is as

(C)

(C)

follows: (C)

Issued:

Residential Customer Class (Rate RS, Rate RT, and Rate OS ~ Volunteer Fire Company, Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate):

x.xxx cents per kWh

(C) Change

------ Effective: June 1, 2013

(C)


Rider R (continued)

Gross Receipts Tax


RIDERS

Electric Pa. P.u.e. No. 51 (Supp. ~ Original Page 21 OD


All capitalized terms not otherwise defined in this Rider shall have the definitions specified in Section 2 of this Tariff. For purposes of this Rider, the following additional definitions shall apply:

1. DSS Sales - The kWh or kW of billed demand delivered during a billing month to all Delivery Service Customers, as applicable to each Rate Schedule billed under the DSS ru~ ~

2. DSS Computational Year - The 12-month period from June 1 through the following May 31. (C)

3. DSS Reconciliation Year - The 12-month period ending March 31 immediately preceding the DSS Computational Year. (C)

(C) Change



Rider R (continued)


RIDERS

Electric Pa. P.U.C. No. 51 (Supp. ~ Original Page 211

The Company shall recalculate its DSS Rates annually and, based on that recalculation, shall file with the Commission, by May 1 st of each year, revised Rates to become effective on June 1 st of the same year unless the Commission orders otherwise. The revised DSS rates shall remain in effect for a period of one year, unless revised on an interim basis subject to the approval ofthe Commission. Upon determining that its DSS Rates, ifleft unchanged, would result in material over or under-collection of all costs incurred, or expected to be incurred, for DSS during the then current DSS Reconciliation Year, the Company may request that the Commission approve one or more interim revisions to its DSS Rates to become effective thirty (30) days from the date of filing, unless the Commission orders otherwise.

At the conclusion of the period during which this DSS Rider is in effect, the Company shall be authorized to recover or refund at any time, any remaining differences between recoverable costs and revenues billed under this rider by charges or credits to be applied to customer's bills under such mechanism the Commission may approve, but uncollectibles, which are non-reconcilable under the terms of this rider, shall not be included in the final reconciliation.

Application of the DSS rates shall be subject to annual review and audit by the Commission.





RIDERS

RIDERR DEFAULT SERVICE SUPPORT RIDER

A Default Service Support (DSS) rate shall be applied to DSS Sales delivered by Penelec to Delivery Service Customers under this rider as determined to the nearest one-thousandth of a cent per kWh or cent per kW, as applicable. The DSS rate shall be billed to Customers receiving Delivery Service from the Company under this rider. The DSS rates shall be calculated according to the provisions of this rider. The DSS Rider shall be non-bypassab1e. (C)

(C)

(C) Change

Issued: ------- Effective: June 1,2013


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. _) __ Revised Page 210 Superseding Original Page 210


The DSS rates by rate schedule shall be calculated annually in accordance with the formula set forth below: (C)

DSS rate = [DE + TSC1 + NMB + RE + CEC + OAP + CRP] X [1/ (l-T)] (C)


Default Service Related Dncollectibles

Issued:

DE = A default service-related unbundled uncollectible accounts expense charge, determined by Customer Class and stated to the nearest one-thousandth of a cent per kWh or cent per kW, as applicable, to be applied to DSS Sales delivered by Penelec to Delivery Service Customers under this rider. The DE reflects the generation-related portion of the uncollectible account expense based on the cost of service study in the Company's base rate case at Docket No. R-00061366 and the additional uncollectible accounts expense incurred by the Company as a result of providing Default Service under this tariff. This component ofthe DSS rate in this non-bypassable rider is non-reconcilable. (C)


The unbundled generation related uncollectibles as determined from the cost of service study in the Company's base rate case at Docket No. R-0006l367, combined with the calculated incremental uncollectible accounts expense based on the projected price of Default Service, represents the appropriate fully unbundled non-reconcilable uncollectible accounts expense to be recovered in DSS rates. The calculated incremental uncollectible expense is based on the historical relationship of uncollectible accounts expense to total revenues for the twelve months ended December 31, 2006, utilizing the top sheets from the Company's rate case compliance filings at Docket No. R-0006l367. This ratio is applied to the change in the Company's revenues that would result from the change experienced in default service prices. Incremental uncollectible accounts expense divided by the projected DSS Sales yields an adjustment to the retail price of Default Service supply to be included in DSS rates. (C)

(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. ~ __ Revised Page 211 Superseding Original Page 211

RIDERS

Rider R (continued)


Industrial Customer Class (Rate GS - Large, GP and Rate LP):

$x.xxxxx per kW

Commercial Customer Class (Rate GS-Small, Rate GS-Medium, Rate MS, Borderline Service, Street Lighting Service, Ornamental Street Lighting and Outdoor Lighting Service):

x.xxx cents per kWh


x.xxx cents per kWh

2006 Deferred Transmission Service Charges

TSC1 = [(TSCD - E) / S] X Rate Schedule Adjustment Factor

Where:

TSC1 = The charge to be applied to Delivery Service Customers under this rider to recover the 2006 Transmission Service Charge Deferral ("TSCD"), including carrying charges, which was approved by the Commission in its final order at Docket No. R-00061366, authorizing the Company to amortize such deferral over a 10 year period beginning January 11, 2007 and ending on December 31,2016. The 10 year amortization ofthe 2006 TSCD that was not fully recovered under the Transmission Service Charge Rider is being recovered under this DSS Rider which replaced the TSC Rider. The TSC1 rate will be adjusted on June 1 of each year based on the Company's latest sales forecast

(C)

(C)

(C)

available at the time. (C)

TSCD = The balance of the 2006 TSCD including carrying charges, that, as of March 31, 2013 remains to be amortized over the remaining months of the amortization period. (C)

(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.c. No. 80 (Supp. ~ __ Revised Page 212 Superseding Original Page 212


E = The over or under-collection ofthe TSCD that results from billing the TSC] during the DSS Reconciliation Year (an over-collection is denoted by a positive E and an undercollection by a negative E), including applicable interest. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.

S= The Company's total DSS Sales to Delivery Service Customers projected for the DSS Computational Year.



Where:

NMB = The charge to be applied to Delivery Service Customers served under this rider for

(C)

(C)

(C)

Non-Market Based Services Transmission Charge costs incurred by the Company. (C)

NMBc = Forecasted NMB costs applicable to the Company's DSS Sales. Forecasted NMB costs shall include costs for FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Point-to-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through the Company's Price To Compare Default Service Rate Rider. Forecasted NMB costs are allocated to each Customer Class based upon each Customer Class's contribution to the metered demand coincident with the Penelec Zone peak hour. (C)

E = The over or under-collection of the NMBc that results from billing of the NMB during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers. (C)

S=

Issued:


(C) Change


(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.c. No. 80 (Supp. ~ __ Revised Page 213 Superseding Original Page 213

RIDERS


(C) Change

Issued: ------ Effective: June 1,2013

(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ __ Revised Page 214 Superseding Original Page 214

RIDERS

Rider R (continued)

Issued:

The NMB rates billed to Customers by Rate Schedule are shown below. The TSC] rates billed to Customers shall be adjusted by the following Rate Schedule Adjustment Factors shown below: (C)

Rate Schedule Adjustment TSC1 NMB (C)

Rate Schedule Factors Rate Rate

Rate Schedule R T & OS Volunteer Fire Company and Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate - TOD 0.7358 X.XXX(C) XXXX (C) Rate Schedule RS & OS Volunteer Fire Company and Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate - Non-TOD 1.0650 X.XXX(C) X.XXX(C) Rate Schedule OS - Small 1.1353 X.XXX(C) X.XXX(C)

Rate Schedule OS - Medium 1.1353 X.XXX (C) XXXX(C)

Rate Schedule OS - Large 1.0238 $XXXXXX (C) $XXXXXX (C)

Rate Schedule OP 0.9453 $XXXXXX (C) $XXXXXX (C)

Rate Schedule LP 0.8219 $XXXXXX (C) $X.XXXXX (C)

Rate Schedule H 0.7403 X.XXX(C) X.XXX(C)

Rate Schedule OL 0.4288 X.XXX(C) X.XXX(C)

Rate Schedule ST 0.4291 X.XXX(C) X.XXX(C)

Rate Schedule BRD 0.7197 X.XXX(C) X.XXX(C)

The above rates are listed as a cent per kWh, with the exception of Rate Schedules OS-Large, OP and LP which are listed as a dollar per kW. (C)

(C) Change

Effective: June 1, 2013 ------


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. ~ __ Revised Page 215 Superseding Original Page 215

RIDERS

Rider R (continued)

Retail Enhancements

RE = [ (REe - E) / S]

Where:


(C)


REc = The Retail Enhancement Costs incurred by the Company to cover programming expenses and implementation costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection of the REc that results from billing of the RE during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.

S=

Issued:


(C) Change


(C)

(C)



RIDERS

Rider R (continued)



$X.XXXXX per kW


X.XXX cents per kWh


X.XXX cents per kWh



Where:

CEC = The charge to be applied to Delivery Service Customers served under this rider for

(C)

(C)

(C)

(C)

(C)

(C)

(C)

Customer Education Charges incurred by the Company. (C)

CECc = Customer Education costs for the specific Customer Class to cover customer education costs associated with competitive market enhancements approved by the Commission, excluding costs being recovered by the Consumer Education Program Cost Recovery Rider. (C)

(C) Change




Electric Pa. P.U.C. No. 80 (Supp._) Original Page 216A

RIDERS

Rider R (continued)

E = The over or under-collection of the CECc that results from the billing ofthe CEC during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers. (C)

S=

Issued:




$X.XXXXX per kW


X.XXX cents per kWh


X.XXX cents per kWh

(C) Change


(C)

(C)

(C)

(C)

(C)

(C)

Met-Ed/Penelec/Penn Power/West Penn Exhibit REV-11 Page10of13

PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ Original Page 216B

RIDERS

Rider R (continued)


OAP = (OAPe - E) I S

Where:


(C)

(C)


OAPe = Opt-In Aggregation Program costs for the Residential Customer Class to cover opt-in aggregation costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection of the OAPe that results from the billing of the OAP during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Residential Customer Class Delivery Service Customers.


The OAP rate for the Residential Customer Class to be included in DSS rates is as

(C)

(C)

follows: (C)

Issued:

Residential Customer Class (Rate RS, Rate RT, and Rate OS - Volunteer Fire Company, Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate):

X.XXX cents per kWh

(C) Change


(C)


PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ Original Page 216C

RIDERS

Rider R (continued)



Where:


(C)

(C)


CRP c = Customer Referral Program costs for the Residential Customer Class to cover customer referral costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection of the CRPc that results from the billing ofthe CRP during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Residential Customer Class Delivery Service Customers.


The CRP rate for the Residential Customer Class to be included in DSS rates is as

(C)

(C)

follows: (C)

Issued:

Residential Customer Class (Rate RS, Rate RT, and Rate OS - Volunteer Fire Company, Non-Profit Ambulance Service, Rescue Squad and Senior Center Service Rate):

X.XXX cents per kWh

(C) Change


(C)

Met-Ed/Penelec/Penn Power/West Penn Exhibit REV-11 Page12of13

PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp. ~ Original Page 2l6D

RIDERS

Rider R (continued)

Gross Receipts Tax


All capitalized terms not otherwise defined in this Rider shall have the definitions specified in Section 2 of this Tariff. For purposes of this Rider, the following additional definitions shall apply:

1. DSS Sales - The kWh or kW of billed demand delivered during a billing month to all Delivery Service Customers, as applicable to each Rate Schedule billed under the DSS Rider. (C)

2. DSS Computational Year - The 12-month period from June 1 through the following May 31. (C)

3. DSS Reconciliation Year - The 12-month period ending March 31 immediately preceding the DSS Computational Year. (C)

(C) Change

Issued: Effective: June 1, 2013 -------




RIDERS

Rider R (continued)

The Company shall recalculate its DSS Rates annually and, based on that recalculation, shall file with the Commission, by May 1 st of each year, revised Rates to become effective on June 1 st ofthe same year unless the Commission orders otherwise. The revised DSS rates shall remain in effect for a period of one year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that its DSS Rates, ifleft unchanged, would result in material over or under-collection of all costs incurred, or expected to be incurred, for DSS during the then current DSS Reconciliation Year, the Company may request that the Commission approve one or more interim revisions to its DSS Rates to become effective thirty (30) days from the date of filing, unless the Commission orders otherwise.

At the conclusion of the period during which this DSS Rider is in effect, the Company shall be authorized to recover or refund at any time, any remaining differences between recoverable costs and revenues billed under this rider by charges or credits to be applied to customer's bills under such mechanism the Commission may approve, but uncollectibles, which are non-reconcilable under the terms of this rider, shall not be included in the final reconciliation.

Application of the DSS rates shall be subject to annual review and audit by the Commission.




Revised Sheet No. 62.1 ---Pennsylvania Power Company Canceling Revised Sheet No. 62.1


A Default Service Support (DSS) rate shall be applied to DSS Sales delivered by the Company to Delivery Service Customers under this rider as determined to the nearest onethousandth of a cent per kWh or cent per kW, as applicable. The DSS rate shall be billed to Customers receiving Delivery Service from the Company under this rider. The DSS rates shall be calculated according to the provisions ofthis rider. The DSS Rider shall be non-bypassable. (C)

The Residential Customer Class consists of Rate Schedules RS; RS Optional Controlled Service Rider; Rl-I; RH Water Heating Option; WH; and GS Special Provision for Volunteer Fire Companies, Non-Profit Senior Citizen Centers, Non-Profit Rescue Squads, and Non-Profit

(C)

Ambulance Services (C)

The Commercial Customer Class consists of Rate Schedules GS (excluding GS Special Rule GSDS), GS Optional Controlled Service Rider, PNP, GM, GM Optional Controlled Service Rider, PLS, SV, SVD, SM, OH With Cooling Capabilities, OH Without Cooling Capabilities, and WH Non-Residential (C)

The Industrial Customer Class consists of Rate Schedules GP, GT, and GS with Special Rule GSDS (C)

(C) Change





Default Service Support Rider (Continued)

The DSS rates by rate schedule shall be calculated annually in accordance with the formula set forth below:

DSS rate = [UE + MPI + CEC + NMB + RE + OAP + CRP] X [1 / (1-T)]


Default Service Related Uncollectibles

UE = A default service-related unbundled uncollectible accounts expense charge, determined by Customer Class and stated to the nearest one-thousandth of a cent per kWh or cent per kW, as applicable, to be applied to DSS Sales delivered by the Company to Delivery Service Customers under this rider. The UE reflects the generation-related portion of the uncollectible account expense based on historical data in the Company's restructuring case at Docket No. R-00924149 and the additional uncollectible accounts expense incurred by the Company as a result of providing Default Service under this tariff. This component of the DSS rate in this non-bypassable rider is

(C)

non-reconcilable. (C)

Issued:



Residential Customer Class:

X.XXX cents per kWh (C)

Commercial Customer Class:

X.XXX cents per kWh (C)

Industrial Customer Class:

$X.XXXXX per kW (C)

(C) Change






MTEP and MISO Exit Fees and P JM Integration Charges

Where: MPI = ««MPIExp1 + MPIExp2) - E) X Adjustment Factor) / S)

MPI=

MPIExp1 =

MPIExp2 =

E=

S=

The charge to be applied to each Delivery Service Customer served under this Tariff for the Midwest Independent System Operator ("MISO") Transmission Expansion Plan ("MTEP") charges and MISO and PJM charges associated with the transition from MISO to PJM approved by FERC.

The Company's cost of the MTEP charges assessed on the Company pursuant to the Open Access Transmission Tariff ("OATT") ofMISO.

The Company's (i) charges assessed under MISO's OATT that are associated with the Company's exit from the MISO control area and (ii) charges assessed under the PJM OATT that are associated with the Company's integration into the PJM control area. All such MISO exit fees and PJM integration fees charges approved by FERC shall not exceed $3.5 million, excluding carrying charges. The Company shall recover these charges plus applicable carrying charges over a minimum five year period.

The over or under collection of MTEPs and MISO exit fees and PJM integration charges that result from the billing of the MPI portion ofthe DSS during the DSS Reconciliation Year (an over collection is denoted by a positive E and an under collection by a negative E), including applicable interest. Interest shall be computed monthly based upon 41 P.S. § 202, the legal statutory interest rate, from the month the over or under collection occurs to the month that the over collection is refunded to or the under collection is recovered from Delivery Service Customers.

The Company's total DSS Sales to Delivery Service Customers projected for the DSS Computational Year.

The MPI shall be adjusted by the following Customer Class Adjustment Factors, as shown:

Customer Class

Residential

Commercial

Industrial (C) Change

Adjustment

Factor

.4126

.3101

.2773

Issued: ______ _ Effective: June 1, 2013

(C)

(C)





The MPI charges, by Customer Class, to be included in DSS rates are as follows:


x.xxx cents per kWh


x.XXX cents per kWh


$x.xxxxx per kW

(C)

(C)

(C)


Where: CEC=

CECc=

E=

S=

Issued:

CEC = ((CECc - E) / S)

The charge to be applied to Delivery Service Customers served under this rider for Customer Education Charges incurred by the Company.

Customer Education costs for the specific Customer Class to cover customer education costs associated with competitive market enhancements approved by the Commission.

The over or under-collection of the CECc that results from the billing of the CEC during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an undercollection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.


(C) Change

(C)

(C)

(C)

(C)








XXXX cents per kWh


XXXX cents per kWh


$XXXXXX per kW


Where:

Issued:

NMB (NMBc - E) / S

NMB=

NMBc=

The charge to be applied to Delivery Service Customers served under this rider for Non-Market Based Services Transmission Charge costs incurred by the Company.

Forecasted NMB costs applicable to the Company's DSS Sales. Forecasted NMB costs shall include costs for FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Point-to-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through the Company's Price To Compare Default Service Rate Rider. Forecasted NMB costs are allocated to each Customer Class based upon each Customer Class's contribution to the metered demand coincident with the Penn Power Zone peak hour.

(C) Change


(C)

(C)

(C)

(C)

(C)

(C)

(C)




Original Sheet No. 62.5A

E=

S=


The over or under-collection of the NMBc that results from billing of the NMB during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or undercollection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.


The NMB rates by Customer Class to be included in DSS rates are as follows:


x.XXX cents per kWh


X.XXX cents per kWh


$x.xxxxx per kW

Retail Enhancements

RE = [ (REe - E) / S]

Where:


(C)

(C)

(C)

(C)

(C)

(C)

(C)


REc = The Retail Enhancement Costs incurred by the Company to cover programming expenses and implementation costs associated with competitive market enhancements approved by the Commission. Includes consultant fees and other costs to develop and implement the Time-Of-Use Default Service Rider, which shall be allocated to the Residential Customer Class. (C)


(C) Change


(C)



Supplement No. _ to Electric Pa. P. u. C. No. 35

Original Sheet No. 62.5B

S=





XXXX cents per kWh


XXXX cents per kWh


$XXXXXX per kW


OAP = (OAPc - E) / S

Where:


(C)

(C)

(C)

(C)

(C)

(C)

(C)


OAPc = Opt-In Aggregation Program costs for the Residential Customer Class to cover opt-in aggregation costs associated with competitive market enhancements approved by the Commission. (C)

E = The over or under-collection ofthe OAPc that results from the billing of the OAP during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Residential Customer Class Delivery Service Customers.

S=

Issued:

The Company's total retail kWh sales to Residential Customer Class Delivery Service Customers projected for the DSS Computational Year.

(C) Change


(C)

(C)




Original Sheet No. 62.5C


The OAP rate for the Residential Customer Class to be included in DSS rates is as follows:


x.XXX cents per kWh



Where:


(C)

(C)

(C)

(C)


CRPc = Customer Referral Program costs for the Residential Customer Class to cover customer referral costs associated with competitive market enhancements approved by the Commission. (C)



The CRP rate for the Residential Customer Class to be included in DSS rates is as follows:


X.XXX cents per kWh

(C) Change


(C)

(C)

(C)

(C)





Gross Receipts Tax


Other Information

All capitalized terms not otherwise defined in this Rider shall have the definitions specified in the Definitions of Terms section of this Tariff. For purposes ofthis Rider, the following additional definitions shall apply:

1. DSS Sales - The kWh or kW of billed demand delivered during a billing month to all Delivery Service Customers, as applicable to each Rate Schedule billed under the DSS rider.

2. DSS Computational Year - The 12-month period from June 1 through the following May 31.

3. DSS Reconciliation Year - The 12-month period ending March 31 immediately preceding the DSS Computational Year.

(C) Change


(C)





Original Sheet No. 62.7

The Company shall recalculate its DSS Rates annually and, based on that recalculation, shall file with the Commission, by May 1 sl of each year, revised DSS Rates to become effective on June 1 Sl of the same year unless the Commission orders otherwise. The revised DSS rates shall remain in effect for a period of one year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that its DSS Rates, if left unchanged, would result in material over or under-collection of all costs incurred, or expected to be incurred, for DSS during the then current DSS Reconciliation Year, the Company may request that the Commission approve one or more interim revisions to its DSS Rates to become effective thirty (30) days from the date of filing, unless the Commission orders otherwise.

At the conclusion of the period during which this DSS Rider is in effect, the Company shall be authorized to recover or refund, at any time, any remaining differences between recoverable costs and revenues billed under this rider by charges or credits to be applied to customers bills under such mechanism as the Commission may approve, but uncollectibles, which are non-reconcilable under the terms of this rider, shall not be included in the final reconciliation.

Application ofthe DSS rates shall be subject to annual review and audit by the Commission.



Supplement No. to Electric-Pa. P. U. C. No. 39

Original Page No. WEST PENN POWER COMPANY

(C)


A Default Service Support ("DSS") Rate shall be applied to DSS Sales delivered by the Company to Delivery Service Customers under this rider as determined to the nearest one-thousandth of a cent per kWh or cent per billed demand, as applicable. The DSS Rate shall be billed to Customers receiving Delivery Service from the Company under this rider. The DSS Rates shall be calculated according to the provisions of this rider. The DSS Rider shall be non-bypassable.

The DSS Rates by Rate Schedule shall be calculated annually in accordance with the formula set forth below:

DSS Rate = [NMB + RE + CEC + OAP + CRP] X [1 / (1-T)]



NMB = (NMBc — E) / S

Where:

NMB = The charge to be applied to Delivery Service Customers served under this rider for Non-Market Based Services Transmission Charge costs incurred by the Company.

NMBc = Forecasted NMB costs applicable to the Company's DSS Sales. Forecasted NMB costs shall include costs for FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Point-to-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through the Company's Price To Compare Default Service Rate Rider. Forecasted NMB costs are allocated to each Customer Class based upon each Customer Class's contribution to the metered demand coincident with the APS Zone peak hour.

E = The over or under-collection of the NMBc that results from billing of the NMB during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.

S = The Company's total DSS Sales per Customer Class to Delivery Service Customers projected for the DSS Computational Year.


Issued Effective June 1, 2013




(C)

DEFAULT SERVICE SUPPORT RIDER (Continued)

The NMB rates by Customer Class to be included in DSS Rates are as follows:


$ X.XXXXX per kWh


$ X.XXXXX per kWh


$ X.XXXXX per kW or kVA (billed demand as determined by the controlling Rate Schedule)

Retail Enhancements

RE = (REc — E) / S

Where:

RE = The charge to be applied to Delivery Service Customers served under this rider for the Retail Enhancement Costs incurred by the Company.

REc = The Retail Enhancement Costs incurred by the Company to cover programming expenses and implementation costs associated with competitive market enhancements approved by the Commission. Includes consultant fees and other costs to develop and implement the Time-Of-Use Default Service Rider, which shall be allocated to the Residential Customer Class.








(C)


The RE rates by Customer Class to be included in DSS Rates are as follows:


$ X.XXXXX per kWh


$ X.XXXXX per kWh




CEC = (CECc — E) / S

Where:

CEC = The charge to be applied to Delivery Service Customers served under this rider for Customer Education Charges incurred by the Company.

CECc = Customer Education costs for the specific Customer Class to cover customer education costs associated with competitive market enhancements approved by the Commission, excluding costs being recovered by the Consumer Education Charge surcharge.

E = The over or under-collection of the CECc that results from the billing of the CEC during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.







(C)


The CEC rates by Customer Class to be included in DSS Rates are as follows:


$ X.XXXXX per kWh


$ X.XXXXX per kWh




OAP = (OAPc — E) / S

Where:

OAP = The charge to be applied to Residential Customer Class Delivery Service Customers served under this rider for Opt-In Aggregation Program costs incurred by the Company.

OAPc = Opt-In Aggregation Program costs for the Residential Customer Class to cover opt-in aggregation costs associated with competitive market enhancements approved by the Commission.

E = The over or under-collection of the OAPc that results from the billing of the OAP during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Residential Customer Class Delivery Service Customers.

S = The Company's total retail kWh sales to Residential Customer Class Delivery Service Customers projected for the DSS Computational Year.

The OAP rate for the Residential Customer Class to be included in DSS rates is as follows:


$ X.XXXXX per kWh






(C)



CRP = (CRPc — E) / S

Where:

CRP = The charge to be applied to Residential Customer Class Delivery Service Customers served under this rider for Customer Referral Program costs incurred by the Company.

CRPc = Customer Referral Program costs for the Residential Customer Class to cover customer referral costs associated with competitive market enhancements approved by the Commission.


S = The Company's total retail kWh sales to Residential Customer Class Delivery Service Customers projected for the DSS Computational Year.

The CRP rate for the Residential Customer Class to be included in DSS rates is as follows:


$ X.XXXXX per kWh

Gross Receipts Tax







(C)

DEFAULT SERVICE SUPPORT RIDER (Concluded)

All capitalized terms not otherwise defined in this Rider shall have the definitions specified in the Definitions section of this Tariff. For purposes of this Rider, the following additional definitions shall apply:

1. DSS Sales — The kWh, kW of billed demand, or kVA of billed demand, delivered during a billing month to all Delivery Service Customers, as applicable to each Rate Schedule billed under the DSS Rider.

2. DSS Computational Year — The 12-month period from June 1 through the following May 31.

3. DSS Reconciliation Year — The 12-month period ending March 31 immediately preceding the DSS Computational Year.

The Company shall recalculate its DSS Rates annually and, based on that recalculation, shall file with the Commission, by May 1st of each year, revised rates to become effective on June 1st of the same year unless the Commission orders otherwise. The revised DSS Rates shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that its DSS Rates, if left unchanged, would result in material over or under-collection of all costs incurred, or expected to be incurred, for DSS during the then current DSS Reconciliation Year, the Company may request that the Commission approve one or more interim revisions to its DSS Rates to become effective thirty (30) days from the date of filing, unless the Commission orders otherwise.

At the conclusion of the period during which this DSS Rider is in effect, the Company shall be authorized to recover or refund at any time, any remaining differences between recoverable costs and revenues billed under this rider by charges or credits to be applied to Customer's bills under such mechanism the Commission may approve.

Application of the DSS Rates shall be subject to annual review and audit by the Commission.





Original Page No. _


A Default Service Support ("DSS") Rate shall be applied to DSS Sales delivered by the Company to Delivery Service Customers under this rider as determined to the nearest one-thousandth of a cent per kVA. The DSS Rate shall be billed to Customers receiving Delivery Service from the Company under this rider. The DSS Rates shall be calculated according to the provisions of this rider. The DSS Rider shall be non-bypassable.

The DSS Rate shall be calculated annually in accordance with the formula set forth below:

DSS Rate = [NMB + RE + CEC] X [1/ (1-T)]



Where:


NMB = The charge to be applied to Delivery Service Customers served under this rider for Non-Market Based Services Transmission Charge costs incurred by the Company.

NMBc = Forecasted NMB costs applicable to the Company's DSS Sales. Forecasted NMB costs shall include costs for FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Point-toPoint Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through the Company's Price To Compare Default Service Rate Rider. Forecasted NMB costs are allocated to the Industrial Customer Class based upon the Industrial Customer Class's contribution to the metered demand coincident with the APS Zone peak hour.

E = The over or under-collection of the NMBc that results from billing of the NMB during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P.S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.

S = The Company's total Delivery Service billed demand for the Industrial Customer Class projected for the DSS Computational Year.

The NMB rates to be included in DSS Rates are as follows:


$ X.XXXXX per kV A



(C)



Original Page No. _


Retail Enhancements

Where:

RE = (REc - E) / S

RE = The charge to be applied to Delivery Service Customers served under this rider for the Retail Enhancement Costs incurred by the Company.

REc = The Retail Enhancement Costs incurred by the Company to cover programming expenses and implementation costs associated with competitive market enhancements approved by the Commission.

E = The over or under-collection of the REc that results from billing of the RE during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P .S. § 202, from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.


The RE rates to be included in DSS Rates are as follows:


$ X.XXXXX per kVA


Where:


CEC = The charge to be applied to Delivery Service Customers served under this rider for Customer Education Charges incurred by the Company.

CECc = Customer Education costs for the Industrial Customer Class to cover customer education costs associated with competitive market enhancements approved by the Commission, excluding costs being recovered by the Consumer Education Charge surcharge.

E = The over or under-collection of the CECc that results from the billing of the CEC during the DSS Reconciliation Year, including applicable interest. An over-collection is denoted by a positive E and an under-collection by a negative E. Interest shall be computed monthly at the legal statutory interest rate stated in 41 P .S. § 202 from the month the over or under-collection occurs to the month that the over-collection is refunded to or the under-collection is recovered from Delivery Service Customers.



(C)



DEFAULT SERVICE SUPPORT RIDER (Concluded)


Original Page No. _


The CEC rates to be included in DSS Rates are as follows:


$ X.XXXXX per kV A

Gross Receipts Tax


All capitalized terms not otherwise defined in this Rider shall have the definitions specified in the Definitions section of this Tariff. For purposes of this Rider, the following additional definitions shall apply:

1. DSS Sales - The kVA of billed demand, delivered during a billing month to all Delivery Service Customers.

2. DSS Computational Year - The 12-month period from June 1 through the following May 31.

3. DSS Reconciliation Year - The 12-month period ending March 31 immediately preceding the DSS Computational Year.

The Company shall recalculate its DSS Rates annually and, based on that recalculation, shall file with the Commission, by May 1st of each year, revised rates to become effective on June 1st of the same year unless the Commission orders otherwise. The revised DSS Rates shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that its DSS Rates, if left unchanged, would result in material over or under-collection of all costs incurred, or expected to be incurred, for DSS during the then current DSS Reconciliation Year, the Company may request that the Commission approve one or more interim revisions to its DSS Rates to become effective thirty (30) days from the date of filing, unless the Commission orders otherwise.

At the conclusion of the period during which this DSS Rider is in effect, the Company shall be authorized to recover or refund at any time, any remaining differences between recoverable costs and revenues billed under this rider by charges or credits to be applied to Customer's bills under such mechanism the Commission may approve.

Application of the DSS Rates shall be subject to annual review and audit by the Commission.



(C)


METROPOLITAN EDISON COMPANY Electric Pa. P.u.e. No. 51 (Supp. ~ __ Revised Page 198 Superseding Original Page 198

RIDERS

RIDERQ SOLAR PHOTOVOLTAIC REQUIREMENTS CHARGE RIDER

A Solar Photovoltaic Requirements Charge ("SPVRC"), determined to the nearest onethousandth of a cent per kWh, shall be applied to each kWh delivered during a billing month to all Delivery Service Customers not qualifying for Solar Photovoltaic ("SPV") self generation exclusion. The SPVRC shall be non-bypassable.

Issued:

The SPVRC shall be calculated annually in accordance with the formula set forth below:

SPVRC = [( SPVRCc - E)/ S] X [1/ (1- T)]

SPVRCc ~ SPVRCExpl + SPVRCExp2 + SPVRCExp3 + SPVRCExp4

Where:

SPVRC = The charge in cents per kWh to be applied to each kWh delivered to Delivery Service Customers served under this tariff.

SPVRCc = Solar Photovoltaic Requirements Charge Costs calculated in accordance with the formula shown above.

E = The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an under-collection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202, from the month in which the over or under-collection occurs to the month in which the over-collection is refunded to or the under-collection is recovered from all Delivery Service Customers.

SPVRCExpl = A projection of the costs incurred to acquire the Solar Photovoltaic Alternative Energy Credits ("SP AECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's SPY obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations"). (C)

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.U.c. No. 51 (Supp. ~ __ Revised Page 199 Superseding Original Page 199

RIDERS

Rider Q (continued)

Issued:

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPY obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the SPY obligations imposed by the AEPS Laws And Regulations. (C)

SPVRCExp3 = Incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's compliance with 40% of the SPY obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31,2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the Spy obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances of these costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202. (C)

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SP AECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SP AECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its SPY obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SPAECs, computed and compounded monthly at the legal rate determined pursuant to 41 P.S. §

S=

202 based upon the cost to acquire the banked SP AECs. (C)

The Company's projected kWh sales to Delivery Service Customers for the SPVRC Computational Year less Excluded Sales.

(C) Change



METROPOLITAN EDISON COMPANY Electric Pa. P.U.C. No. 51 (Supp. ~ __ Revised Page 200 Superseding Original Page 200

Rider Q (continued)

T=

RIDERS

Excluded Sales = Projected net Delivery Service kWh sales for the SPVRC Computational Year to qualifying SPY self generating Customers, which shall be excluded from the SPVRC for the SPVRC Computational Year if the SPY self generating Customer satisfies the criteria set forth in "Qualifications for exclusion from SPVRC for Self Generation" as set forth below.

The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates.

All capitalized terms not otherwise defined in this Rider shall have the definitions specified in the Definitions of Terms section of this tariff. For purposes of this rider, the following additional definitions shall apply:

1. SPVRC Computational Year - The 12-month period from June 1 through the

(C)

(C)

following May 31. (C) 2. SPVRC Reconciliation Year - The 12-month period ending March 31 immediately

preceding the SPVRC Computational Year.

The SPVRC shall be filed with the Commission by May 1 st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, ifleft unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission. (C)

(C) Change



Rider Q (continued)


RIDERS

Electric Pa. P.U.c. No. 51 (Supp. ~ __ Revised Page 201 Superseding Original Page 201

Qualifications for exclusion from SPVRC for providing SP AECs to the Company from a Customer owned Spy generator:

1. The exclusion is available to Customers served on Rate Schedules OS Large, OP, and TP.

2. Customer must submit an application to the Company in advance of the SPVRC Computational Year requesting a waiver of the SPVRC. As part of the initial application, the Customer must have an executed interconnection agreement with the Company pursuant to applicable interconnection regulations, must have installed qualifying SPY panels in an amount adequate to cover 40% of the SP AEC requirements for the Customer's expected net Delivery Service kWh, and must have installed qualifying metering on site to record the cumulative electricity production from its qualifying Spy panels in order to verify the SP AEC value determined pursuant to Act 213, Section 3 (A)(3)(e)(3). Upon the Company's approval ofthe Customer's application, this Rider shall not be applicable as long as the Customer continues to meet the qualifications for exclusion. (C)

3. The Company will make an estimate of the Customer's SP AECs to be transferred to the Company based on the Company's determination of the Customer's most recent 12 months of net Delivery Service kWh. The amount of SP AECs will be rounded up to the nearest whole number. This value will be communicated to the Customer before the SPVRC Computational Year.

4. After the close of the SPVRC Computational Year, the Company will bill the Customer for the SP AECs necessary to extinguish the Customer's obligation. No later than 45 days after the end of the SPVRC Computational Year, the Customer must transfer the specified self generated SP AECs into the Company' s OATS account to demonstrate compliance for the recently completed SPVRC Computational Year.

5. Upon receipt of all required SP AECs, the Company will continue to exclude the qualifying Customer from being billed the SPVRC.

(C) Change


(C)


Rider Q (continued)


RIDERS


Penalty for non-compliance from Customers who qualify for the exclusion

If the Customer fails to meet the obligation spelled out in Paragraph 4, then the Customer shall pay to the Company, the market cost incurred by the Company to replace the SP AECs not delivered by the Customer.

The Company shall file an annual report of collections under this Rider within sixty (60) days following the conclusion of each SPVRC Reconciliation Year.

At the conclusion ofthe period during which this Rider is in effect, the Company shall be authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission.

Application of this non-bypassable SPVRC shall be subject to annual review and audit by the Commission.




RIDERS

RIDERQ

SOLAR PHOTOVOLTAIC REQUIREMENTS CHARGE RIDER


Issued:


SPVRC = [( SPVRCc - E)/ S] X [1 / (1 - T)]

SPVRCc = SPVRCExpl + SPVRCExp2 + SPVRCExp3 + SPVRCExp4

Where:

SPVRC = The charge in cents per kWh to be applied to each kWh delivered to Delivery Service Customers served under this tariff.


E = The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an under-collection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202, from the month in which the over or under-collection occurs to the month in which the over-collection is refunded to or the under-collection is recovered from all Delivery Service Customers.

SPVRCExpl = A projection of the costs incurred to acquire the Solar Photovoltaic Alternative Energy Credits ("SP AECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's SPY obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations"). (C)

(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.U.C. No. 80 (Supp._) __ Revised Page 205 Superseding Original Page 205

RIDERS

Rider Q (continued)

Issued:

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPY obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the SPY obligations imposed by the AEPS Laws And Regulations. (C)

SPVRCExp3 = Incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's compliance with 40% of the SPY obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31,2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the SPY obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances of these costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202. (C)

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SP AECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SP AECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its Spy obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SPAECs, computed and compounded monthly at the legal rate determined pursuant to 41 P.S. §

S=

202 based upon the cost to acquire the banked SPAECs. (C)


(C) Change



PENNSYLVANIA ELECTRIC COMPANY Electric Pa. P.u.e. No. 80 (Supp. -.-J __ Revised Page 206 Superseding Original Page 206

Rider Q (continued)

T=

RIDERS

Excluded Sales = Projected net Delivery Service kWh sales for the SPVRC Computational Year to qualifying Spy self generating Customers, which shall be excluded from the SPVRC for the SPVRC Computational Year if the SPY self generating Customer satisfies the criteria set forth in "Qualifications for exclusion from SPVRC for Self Generation" as set forth below.

The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates.

All capitalized terms not otherwise defined in this Rider shall have the definitions specified in the Definitions of Terms section of this tariff For purposes of this rider, the following additional definitions shall apply:

1. SPVRC Computational Year - The 12-month period from June 1 through the

(C)

following May 31. (C) 2. SPVRC Reconciliation Year - The 12-month period ending March 31 immediately

preceding the SPVRC Computational Year.

The SPVRC shall be filed with the Commission by May 1 st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, ifleft unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission. (C)

(C) Change





RIDERS

Rider Q (continued)

Qualifications for exclusion from SPVRC for providing SP AECs to the Company from a Customer owned SPY generator:

1. The exclusion is available to Customers served on Rate Schedules GS Large, GP, and LP.

2. Customer must submit an application to the Company in advance of the SPVRC Computational Year requesting a waiver of the SPVRC. As part of the initial application, the Customer must have an executed interconnection agreement with the Company pursuant to applicable interconnection regulations, must have installed qualifying SPY panels in an amount adequate to cover 40% of the SP AEC requirements for the Customer's expected net Delivery Service kWh, and must have installed qualifying metering on site to record the cumulative electricity production from its qualifying SPY panels in order to verify the SP AEC value determined pursuant to Act 213, Section 3 (A)(3)(e)(3). Upon the Company's approval ofthe Customer's application, this Rider shall not be applicable as long as the Customer continues to meet the qualifications for exclusion. (C)

3. The Company will make an estimate of the Customer's SP AECs to be transferred to the Company based on the Company's determination of the Customer's most recent 12 months of net Delivery Service kWh. The amount ofSPAECs will be rounded up to the nearest whole number. This value will be communicated to the Customer before the SPVRC Computational Year.

4. After the close of the SPVRC Computational Year, the Company will bill the Customer for the SP AECs necessary to extinguish the Customer's obligation. No later than 45 days after the end of the SPVRC Computational Year, the Customer must transfer the specified self generated SP AECs into the Company's GATS account to demonstrate compliance for the recently completed SPVRC Computational Year.

5. Upon receipt of all required SP AECs, the Company will continue to exclude the qualifying Customer from being billed the SPVRC.

(C) Change


(C)



Electric Pa. P.U.C. No. 80 (Supp. ----.J Original Page 208

RIDERS

Rider Q (continued)


If the Customer fails to meet the obligation spelled out in Paragraph 4, then the Customer shall pay to the Company, the market cost incurred by the Company to replace the SP AEC' s not delivered by the Customer.


At the conclusion of the period during which this Rider is in effect, the Company shall be authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission.

Application of this non-bypassable SPVRC rate shall be subject to annual review and audit by the Commission.




Supplement No. _ to Electric Pa.P. U. C. No. 35




Issued:


Where:

SPVRC=

SPVRCc =

E=

SPVRC = [(SPVRCc - E)/ S] X [1/ (1 - T)]

SPVRCc = SPVRCExp1 + SPVRCExp2 + SPVRCExp3 + SPVRCExp4

The charge in cents per kWh to be applied to each kWh delivered to Delivery Service Customers served under this tariff.

Solar Photovoltaic Requirements Charge Costs calculated in accordance with the formula shown above.

The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an under-collection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202, from the month in which the over or under-collection occurs to the month in which the over-collection is refunded to or the undercollection is recovered from all Delivery Service Customers.

SPVRCExp1 = A projection of the costs incurred to acquire the Solar Photovoltaic Alternative Energy Credits ("SP AECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's Spy obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations"). (C)

(C) Change






Issued:

Solar Photovoltaic Requirements Charge Rider (Continued)

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPY obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the Spy obligations imposed by the AEPS Laws And Regulations. (C)

SPVRCExp3 = Incremental start-up costs incurred by the Company through May 31, 2013 in connection with the Company's compliance with 40% of the Spy obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31, 2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the Spy obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances ofthese costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202. (C)

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SPAECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SP AECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its Spy obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SP AECs, computed and compounded monthly at the legal rate determined pursuant to 41 P.S. § 202 based upon the cost to acquire the banked

S=

T=

SPAECs. (C)


Excluded Sales = Projected net Delivery Service kWh sales for the SPVRC Computational Year to qualifying SPY self generating Customers, which shall be excluded from the SPVRC for the SPVRC Computational Year if the SPY self generating Customer satisfies the criteria set forth in "Qualifications for exclusion from SPVRC for Self Generation" as set forth below.

The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates. .

(C) Change







All capitalized terms not otherwise defined in this rider shall have the definitions specified in the Definitions of Terms section of this tariff. For purposes of this rider, the following additional definitions shall apply:

1. SPVRC Computational Year - The 12-month period from June 1 through the following May 31.

2. SPVRC Reconciliation Year - The 12-month period ending March 31 immediately preceding the SPVRC Computational Year.

The SPVRC shall be filed with the Commission by May 1 st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, if left unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission. (C)

Qualifications for exclusion from SPVRC for providing SP AECs to the Company from a Customer owned SPY generator:

1. The exclusion is available to Customers served on Rate Schedules GP and GT.

2. Customer must submit an application to the Company in advance of the SPVRC Computational Year requesting a waiver of the SPVRC. As part of the initial application, the Customer must have an executed interconnection agreement with the Company pursuant to applicable interconnection regulations, must have installed qualifying SPY panels in an amount adequate to cover 40% of the SPAEC requirements for the Customer's expected net Delivery Service kWh, and must have installed qualifying metering on site to record the cumulative electricity production from its qualifying SPY panels in order to verify the SP AEC value determined pursuant to Act 213, Section 3 (A)(3)(e)(3). Upon the Company's approval of the Customer's application, this Rider shall not be applicable as long as the Customer continues to meet the qualifications for exclusion. (C)

3. The Company will make an estimate of the Customer's SPAECs to be transferred to the Company based on the Company's determination of the Customer's most recent 12 months of net Delivery Service kWh. The amount of SPAECs will be rounded up to the nearest whole number. This value will be communicated to the Customer before the SPVRC Computational Year.

(C) Change







4. After the close of the SPVRC Computational Year, the Company will bill the Customer for the SPAECs necessary to extinguish the Customer's obligation. No later than 45 days after the end of the SPVRC Computational Year, the Customer must transfer the specified self generated SPAECs into the Company's GATS account to demonstrate compliance for the recently completed SPVRC Computational Year.

5. Upon receipt of all required SPAECs, the Company will continue to exclude the qualifying Customer from being billed the SPVRC.


If the Customer fails to meet the obligation spelled out in Paragraph 4, then the Customer shall pay to the Company, the market cost incurred by the Company to replace the SP AECs not delivered by the Customer.


At the conclusion ofthe period which this Rider is in effect, the Company shall be authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as may be approved by the Commission for that purpose.


(C) Change


(C)





A Solar Photovoltaic Requirements Charge ("SPVRC"), determined to the nearest one-thousandth of a cent per kWh, shall be applied to each kWh delivered during a billing month to all Delivery Service Customers not qualifying for Solar Photovoltaic ("SPV") self generation exclusion. The SPVRC shall be non-bypassable.

The SPVRC shall be calculated annually in accordance with the formula set forth below, and shall include Tariff No. 37 and Tariff No. 39 for the purposes of calculating and applying the SPVRC:

Where:

SPVRC = [(SPVRCc - E) / S] X [1/ (1-T)]

SPVRCc = SPVRCExp1 + SPVRCExP2 + SPVRCExp3 + SPVRCExp4

SPVRC = The charge in cents per kWh to be applied to each kWh delivered to Delivery Service Customers served under this Tariff.


E = The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an undercollection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202, from the month in which the over or undercollection occurs to the month in which the over-collection is refunded to or the undercollection is recovered from all Delivery Service Customers.

SPVRCExp1 = A projection of the costs incurred to acquire the Solar Photovoltaic Alternative Energy Credits ("SPAECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's SPY obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations").

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPY obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the SPY obligations imposed by the AEPS Laws And Regulations.



(C)







Where:


SPVRCc = SPVRCExp1 + SPVRCExP2 + SPVRCExp3 + SPVRCExp4



E = The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an undercollection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P.S. § 202, from the month in which the over or undercollection occurs to the month in which the over-collection is refunded to or the undercollection is recovered from all Delivery Service Customers.

SPVRCExp1 = A projection of the costs incurred to acquire the Solar Photovoltaic Alternative Energy Credits ("SPAECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's SPY obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations").

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPY obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the SPY obligations imposed by the AEPS Laws And Regulations.



(C)




SOLAR PHOTOVOLTAIC REQUIREMENTS CHARGE RIDER (Continued)

SPVRCEXP3 = Incremental start-up costs incurred by the Company through May 31,2013 in connection with the Company's compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31, 2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances of these costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P .S. § 202.

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SPAECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SPAECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its SPV obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SPAECs, computed and compounded monthly at the legal rate determined pursuant to 41 P .S. § 202 based upon the cost to acquire the banked SPAECs.

S = The Company's projected kWh sales to Delivery Service Customers for the SPVRC

T

Computational Year less Excluded Sales.

Excluded Sales = Projected net Delivery Service kWh sales for the SPVRC Computational Year to qualifying SPV self generating Customers, which shall be excluded from the SPVRC for the SPVRC Computational Year if the SPV self generating Customer satisfies the criteria set forth in "Qualifications for exclusion from SPVRC for Self Generation" as set forth below.

= The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates.

All capitalized terms not otherwise defined in this rider shall have the definitions specified in the Definitions section of this Tariff. For purposes of this rider, the following additional definitions shall apply:





(C)





SPVRCEXP3 = Incremental start-up costs incurred by the Company through May 31,2013 in connection with the Company's compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31, 2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances of these costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P .S. § 202.

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SPAECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SPAECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its SPV obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SPAECs, computed and compounded monthly at the legal rate determined pursuant to 41 P .S. § 202 based upon the cost to acquire the banked SPAECs.

S = The Company's projected kWh sales to Delivery Service Customers for the SPVRC

T

Computational Year less Excluded Sales.


= The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates.






(C)




Original Page No. _


The SPVRC shall be filed with the Commission by May 1st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, if left unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission.

Qualifications for exclusion from SPVRC for providing SPAECs to the Company from a Customer owned SPV generator:

1. The exclusion is available to Customers served on Tariff No. 37 and Tariff No. 39 Rate Schedules 30 (large), 40, 41,44,46, and 86.

2. Customer must submit an application to the Company in advance of the SPVRC Computational Year requesting a waiver of the SPVRC. As part of the initial application, the Customer must have an executed interconnection agreement with the Company pursuant to applicable interconnection regulations, must have installed qualifying SPV panels in an amount adequate to cover 40% of the SPAEC requirements for the Customer's expected net Delivery Service kWh, and must have installed qualifying metering on site to record the cumulative electricity production from its qualifying SPV panels in order to verify the SPAEC value determined pursuant to Act 213, Section 3 (A)(3)(e)(3). Upon the Company's approval of the Customer's application, this rider shall not be applicable as long as the Customer continues to meet the qualifications for exclusion.

3. The Company will make an estimate of the Customer's SPAECs to be transferred to the Company based on the Company's determination of the Customer's most recent twelve (12) months of net Delivery Service kWh. The amount of SPAECs will be rounded up to the nearest whole number. This value will be communicated to the Customer before the SPVRC Computational Year.

4. After the close of the SPVRC Computational Year, the Company will bill the Customer for the SPAECs necessary to extinguish the Customer's obligation. No later than forty-five (45) days after the end of the SPVRC Computational Year, the Customer must transfer the specified self generated SPAECs into the Company's GATS account to demonstrate compliance for the recently completed SPVRC Computational Year.



If the Customer fails to meet the obligation spelled out in Paragraph 4, then the Customer shall pay to the Company, the market cost incurred by the Company to replace the SPAECs not delivered by the Customer.



(C)




Original Page No. _


The SPVRC shall be filed with the Commission by May 1st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, if left unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission.











(C)




Original Page No. _

SOLAR PHOTOVOLTAIC REQUIREMENTS CHARGE RIDER (Concluded)

The Company shall file an annual report of collections under this rider within sixty (60) days following the conclusion of each SPVRC Reconciliation Year.

At the conclusion of the period during which this rider is in effect, the Company shall be authorized to recover or refund any remaining amounts not reconciled at that time under such mechanism as approved by the Commission.




(C)




Original Page No. _

SOLAR PHOTOVOLTAIC REQUIREMENTS CHARGE RIDER (Concluded)






(C)



Original Page No. _




Where:


SPVRCc = SPVRCExp1 + SPVRCExp2 + SPVRCExP3 + SPVRCExp4



E = The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an undercollection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P .S. § 202, from the month in which the over or undercollection occurs to the month in which the over-collection is refunded to or the undercollection is recovered from all Delivery Service Customers.

SPVRCExp1 = A projection of the costs incurred to acquire the Solar Photovoltaic Altemative Energy Credits ("SPAECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's SPV obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations").

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPV obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the SPV obligations imposed by the AEPS Laws And Regulations.



(C)



Original Page No. _




Where:


SPVRCc = SPVRCExp1 + SPVRCExp2 + SPVRCExP3 + SPVRCExp4



E = The over or under-collection of SPVRC costs that results from billing the SPVRC during the SPVRC Reconciliation Year (an over-collection is denoted by a positive E and an undercollection by a negative E), including applicable interest. The E rate shall be applied to each kWh delivered to Delivery Service Customers. Interest shall be computed monthly at the legal rate determined pursuant to 41 P .S. § 202, from the month in which the over or undercollection occurs to the month in which the over-collection is refunded to or the undercollection is recovered from all Delivery Service Customers.

SPVRCExp1 = A projection of the costs incurred to acquire the Solar Photovoltaic Altemative Energy Credits ("SPAECs") to be retired during the SPVRC Computational Year obtained from winning bidders selected in the competitive procurement process to fulfill 40% of the Company's SPV obligations imposed by the AEPS Act and related laws and regulations, as the same may be amended from time to time ("AEPS Laws And Regulations").

SPVRCExp2 = Administrative costs projected for the SPVRC Computational Year associated with the competitive procurement process implemented to fulfill 40% of the Company's SPV obligations imposed by the AEPS Laws And Regulations. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with the SPV obligations imposed by the AEPS Laws And Regulations.



(C)



Original Page No. _


SPVRCExp3 = Incremental start-up costs incurred by the Company through May 31,2013 in connection with the Company's compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31, 2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances of these costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P .S. § 202.

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SPAECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SPAECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its SPV obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SPAECs, computed and compounded monthly at the legal rate determined pursuant to 41 P.S. § 202 based upon the cost to acquire the banked SPAECs.

S = The Company's projected kWh sales to Delivery Service Customers for the SPVRC Computational Year less Excluded Sales.


T = The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates.






(C)



Original Page No. _


SPVRCExp3 = Incremental start-up costs incurred by the Company through May 31,2013 in connection with the Company's compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations, which shall be amortized over the twenty-four (24) month period ending May 31, 2015. These administrative costs include, but are not limited to, consultant costs and other direct and indirect costs associated with the Company's administration of the competitive procurement process and compliance with 40% of the SPV obligations imposed by the AEPS Laws And Regulations. Interest will be calculated monthly on the average of the beginning of the month and the end-of-month balances of these costs and included in the determination of the monthly amortized amount. The interest shall be computed monthly at the legal rate determined pursuant to 41 P .S. § 202.

SPVRCExp4 = The net of: 1) proceeds resulting from the sale into the market of excess, unused SPAECs procured by the Company in the competitive procurement process; 2) the cost of any additional or supplemental SPAECs purchased by the Company in the market outside of the competitive bid process, as needed to meet 40% of its SPV obligations under the AEPS Laws And Regulations; and 3) the carrying cost of banked SPAECs, computed and compounded monthly at the legal rate determined pursuant to 41 P.S. § 202 based upon the cost to acquire the banked SPAECs.

S = The Company's projected kWh sales to Delivery Service Customers for the SPVRC Computational Year less Excluded Sales.


T = The Pennsylvania gross receipts tax rate in effect during the billing month expressed in the same decimal form used to express the Pennsylvania gross receipts tax rate that is employed in the Company's base rates.






(C)



Original Page No. _


The SPVRC shall be filed with the Commission by May 1 st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, if left unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission.











(C)



Original Page No. _


The SPVRC shall be filed with the Commission by May 1 st of each year. Changes to the SPVRC shall become effective on June 1 of each year unless otherwise ordered by the Commission, and shall remain in effect for a period of one (1) year, unless revised on an interim basis subject to the approval of the Commission. Upon determining that the SPVRC, if left unchanged, would result in material over or under-collection of all costs recoverable under the SPVRC Rider incurred or expected to be incurred during the then current SPVRC Computational Year, the Company may request that the Commission approve one or more interim revisions to the SPVRC to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission.











(C)



Original Page No. _

SOLAR PHOTOVOL TAlC REQUIREMENTS CHARGE RIDER (Concluded)






(C)



Original Page No. _

SOLAR PHOTOVOL TAlC REQUIREMENTS CHARGE RIDER (Concluded)






(C)




__ Revised Page No. 4-1 Canceling __ Revised Page No. 4-1

RULES AND REGULATIONS

The following Rules and Regulations govern the supply of service by West Penn Power Company.

DEFINITIONS

Certain words, when used in the Rules and Regulations, Rate Schedules, and Agreements of West Penn Power Company, shall have the following meanings:

"Advanced Metering": A Customer's billing meter as defined in 52 Pa. Code Chapter 57, Subchapter O. Advanced Meter Deployment.

"Allegheny Power": Trade name of West Penn Power Company under Fictitious Names Act.

"Alternative Energy Portfolio Standards (AEPS),,: Standards requiring that a certain amount of electric energy sold from alternative energy sources be included as part of the sources of electric utilities within the Commonwealth of Pennsylvania in accordance with the Alternative Energy Portfolio Standards Act, 73 P .S. § 1648.1 - 1648.8 ("AEPS Act") as may be amended from time to time. (C)

"Applicant": A natural person not currently receiving Service who applies for Residential Service, or any adult occupant whose name appears on the mortgage, deed or lease of the property for which the Residential Service is requested.

"Commercial Customer Class": Rate Schedules 20, 22, 23, 24, 30 (small), 51,52,53, 54, 55, 56, 57, 58 and 71. The Commercial Customer Class does not include the Rate Schedule 20 special provision for volunteer fire companies, non-profit senior citizens centers, non-profit rescue squads and non-profit ambulance services. (C)

"Commission": The Pennsylvania Public Utility Commission or any lawful successor thereto. (C)

"Competitive Energy Supply": The unbundled energy, capacity, transmission other than Non-Market Based Services Transmission Charges, AEPS requirements, and ancillary services provided by an Electric Generation Supplier pursuant to Customer Choice and Competition Act. (C)

"Company Charges": The sum of Fixed Distribution Charges, Variable Distribution Charges, non-bypassable surcharges and riders, and, if Default Service is taken from Company, Generation Charges for the provision of Default Service. (C)

"Customer": Any person, corporation, municipality, government agency, or other legal entity to whom the Company may furnish either residential or nonresidential service. Also, an end user of electricity. An EGS may act as an agent for an end use Customer upon written authorization to the Company, which authorization may be part of the notice of EGS selection. The agency relationship established between an EGS and an end use Customer does not impair the end use Customer's rights and continued receipt of important consumer protections contained in the Customer Choice and Competition Act relating to the EDC/Customer relationship.

"Customer Choice and Competition Act": The Electricity Generation Customer Choice and Competition Act, 66 Pa. C.S. §2801-2812 and Pennsylvania Public Utility Commission Orders pursuant thereto.

"Company": West Penn Power Company. West Penn Power Company trades and does business as Allegheny Power.

"Default Service": Service provided pursuant to a Default Service Program to a Default Service Customer. (C)

(C) Indicates Change Continued on Page No. 4-2








DEFINITIONS

Certain words, when used in the Rules and Regulations, Rate Schedules, and Agreements of West Penn Power Company, shall have the following meanings:




"Applicant": A natural person not currently receiving Service who applies for Residential Service, or any adult occupant whose name appears on the mortgage, deed or lease of the property for which the Residential Service is requested.

"Commercial Customer Class": Rate Schedules 20, 22, 23, 24, 30 (small), 51,52,53, 54, 55, 56, 57, 58 and 71. The Commercial Customer Class does not include the Rate Schedule 20 special provision for volunteer fire companies, non-profit senior citizens centers, non-profit rescue squads and non-profit ambulance services. (C)



"Company Charges": The sum of Fixed Distribution Charges, Variable Distribution Charges, non-bypassable surcharges and riders, and, if Default Service is taken from Company, Generation Charges for the provision of Default Service. (C)

"Customer": Any person, corporation, municipality, government agency, or other legal entity to whom the Company may furnish either residential or nonresidential service. Also, an end user of electricity. An EGS may act as an agent for an end use Customer upon written authorization to the Company, which authorization may be part of the notice of EGS selection. The agency relationship established between an EGS and an end use Customer does not impair the end use Customer's rights and continued receipt of important consumer protections contained in the Customer Choice and Competition Act relating to the EDC/Customer relationship.










RULES AND REGULATIONS (Continued)

"Default Service Customer": A Delivery Service Customer not receiving service from an EGS. (C)

"Delivery Service": Provision of distribution of electric energy and other services provided by the Company. (C)

"Delivery Service Customer": A Customer who takes Delivery Service. (C)

"Direct Access": Direct Access shall have the meaning as set forth in the Customer Choice and Competition Act.

"Dwelling": A house, apartment, or single meter multi-unit structure being supplied with residential service.

"Electric Distribution Company (EDC)": West Penn Power Company.

"Electric Generation Supplier (EGS)": EGS shall have the meaning as set forth in the Customer Choice and Competition Act.

"Electric Generation Supplier (EGS) Tariff': The Company's (EGS) Tariff, which governs the contractual arrangements between the Company and EGS' regarding the supply of the EGS' loads during the implementation of Direct Access.

"FERC": The Federal Energy Regulatory Commission

"Fixed Distribution Charge": A charge to recover the distribution costs, which are due to the presence of the Customer on the distribution system, regardless of the energy consumed or capacity required.

"Generation Charge": The Company's charge for electric supply service to Customers receiving Default

(C)

(C)

Service. (C)

"Industrial Customer Class": Rate Schedules 30 (large), 40,41,44,46,86 and Tariff No. 37.

"Kilovolt-ampere (kVA)": 1 ,000 volt-amperes

"Kilowatt (kW)": 1 ,000 watts

"Kilowatt-hour (kWh)": 1 ,000 watts for one (1) hour

"Month": The period between two consecutive monthly meter readings taken, as nearly as practicable, on the same date of each calendar month.

"Non-Market Based Services Transmission Charge": FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Pointto-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through

(C)

(C)

(C)

(C)

(C)

the Company's Price To Compare Default Service Rate Rider. (C)

"Nonpermanent Customer": Any person, partnership, corporation, municipality, government agency, or other legal entity to whom the Company may furnish Nonpermanent Service. (C) Indicates Change

Continued on Page No. 4-3











"Dwelling": A house, apartment, or single meter multi-unit structure being supplied with residential service.





"Fixed Distribution Charge": A charge to recover the distribution costs, which are due to the presence of the Customer on the distribution system, regardless of the energy consumed or capacity required.


(C)

(C)

Service. (C)

"Industrial Customer Class": Rate Schedules 30 (large), 40,41,44,46,86 and Tariff No. 37.

"Kilovolt-ampere (kVA)": 1 ,000 volt-amperes

"Kilowatt (kW)": 1 ,000 watts

"Kilowatt-hour (kWh)": 1 ,000 watts for one (1) hour

"Month": The period between two consecutive monthly meter readings taken, as nearly as practicable, on the same date of each calendar month.

"Non-Market Based Services Transmission Charge": FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Pointto-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through

(C)

(C)

(C)

(C)

(C)

the Company's Price To Compare Default Service Rate Rider. (C)

"Nonpermanent Customer": Any person, partnership, corporation, municipality, government agency, or other legal entity to whom the Company may furnish Nonpermanent Service. (C) Indicates Change








"Nonpermanent Service": Service which is connected for the entire year and where service is provided to a residential dwelling that is not used as a place of primary residence or nonresidential service that is used on a seasonal basis.

"Non-Profit Senior Citizen Center Service": A separately metered establishment consisting of a facility for the use of senior citizens coming together as individuals or groups and where access to a wide range of services to senior citizens is provided. The Customer of record at this establishment must be an organization recognized by the Internal Revenue Service as non-profit and recognized by the Department of Aging as an operator of a senior citizen center.

"Nonresidential Customer": Any person, partnership, corporation, municipality, government agency, or other legal entity to whom the Company may furnish service other than residential service.

"Nonresidential Service": Any service other than residential service.

"Pennsylvania Gross Receipts Tax": References to the Pennsylvania gross receipts tax or Pennsylvania gross receipts tax rate, or provisions that incorporate the same shall include the Revenue Neutral Reconciliation enacted by the Customer Choice and Competition Act.

"PJM": PJM Interconnection, L.L.C. or any successor organization/entity thereto.

"Residential Customer": Any person, partnership, corporation, municipality, government agency, or other legal entity to whom the Company may furnish residential service.

"Residential Customer Class": Rate Schedule 10. The Residential Customer Class includes the Rate Schedule 20 special provision for volunteer fire companies, non-profit senior citizens centers, non-profit rescue

(C)

squads and non-profit ambulance services. (C)

"Residential Service": Service supplied to a dwelling, including service provided to a commercial establishment if concurrent service is provided to a residential premises attached thereto. Service provided to a hotel or motel shall not be considered residential service.

"Revenue": Revenue or "Annual Revenue" when used with guarantee, guarantee of Revenue, Revenue guarantee or financing means the Revenue derived only from the Variable Distribution Charge or Distribution Charges that vary with billing determinants.

"Service": Any regulated supply of electricity by the Company, or provision to supply electricity, or any work or material fumished, or any obligation performed by the Company under its Rules and Regulations or Rate Schedules. Regulated charges for Service are published in the Rules and Regulations and Rate Schedules of this Tariff, including Distribution and Generation Charges, surcharges, and riders for each Rate Schedule. Charges for Service exclude Generation Charges when Customer receives Competitive Energy Supply. (C)


Continued on Page No. 4-3A


(C) (C) (C) (C)






"Nonpermanent Service": Service which is connected for the entire year and where service is provided to a residential dwelling that is not used as a place of primary residence or nonresidential service that is used on a seasonal basis.

"Non-Profit Senior Citizen Center Service": A separately metered establishment consisting of a facility for the use of senior citizens coming together as individuals or groups and where access to a wide range of services to senior citizens is provided. The Customer of record at this establishment must be an organization recognized by the Internal Revenue Service as non-profit and recognized by the Department of Aging as an operator of a senior citizen center.

"Nonresidential Customer": Any person, partnership, corporation, municipality, government agency, or other legal entity to whom the Company may furnish service other than residential service.

"Nonresidential Service": Any service other than residential service.



"Residential Customer": Any person, partnership, corporation, municipality, government agency, or other legal entity to whom the Company may furnish residential service.

"Residential Customer Class": Rate Schedule 10. The Residential Customer Class includes the Rate Schedule 20 special provision for volunteer fire companies, non-profit senior citizens centers, non-profit rescue

(C)

squads and non-profit ambulance services. (C)

"Residential Service": Service supplied to a dwelling, including service provided to a commercial establishment if concurrent service is provided to a residential premises attached thereto. Service provided to a hotel or motel shall not be considered residential service.


"Service": Any regulated supply of electricity by the Company, or provision to supply electricity, or any work or material fumished, or any obligation performed by the Company under its Rules and Regulations or Rate Schedules. Regulated charges for Service are published in the Rules and Regulations and Rate Schedules of this Tariff, including Distribution and Generation Charges, surcharges, and riders for each Rate Schedule. Charges for Service exclude Generation Charges when Customer receives Competitive Energy Supply. (C)


Continued on Page No. 4-3A


(C) (C) (C) (C)




__ Revised Page No. 4-3Arval Canceling __ Original Page No. 4-3A


"Universal Service": Policies, protections and services that help residential low-income Customers maintain electric service. The term includes Customer assistance programs, termination of service protections and policies and services that help low-income Customers to reduce or manage energy consumption in a cost-effective manner, such as the low-income usage reduction program, application of renewable resources and consumer education of defined programs.

"Variable Distribution Charges": Charges to recover the balance of distribution costs, not recovered in the Fixed Distribution Charge, which are stated as variable charges and based on the billing determinants to which they are most closely associated.

"Volunteer Fire Company Service": A separately metered establishment consisting of a building, sirens, a garage for housing vehicular fire fighting equipment, or a facility certified by the Pennsylvania Emergency Management Agency (PEMA) for fire fighter training. The use of electric service at this establishment shall be to support the activities of the volunteer fire company. Any fund raising activities at this establishment must be used solely to support volunteer fire fighting operations. The Customer of record at this establishment must be a predominantly volunteer fire company recognized by the local municipality or PEMA as a provider of fire fighting services.




(C)




__ Revised Page No. 4-3Arval Canceling __ Original Page No. 4-3A


"Universal Service": Policies, protections and services that help residential low-income Customers maintain electric service. The term includes Customer assistance programs, termination of service protections and policies and services that help low-income Customers to reduce or manage energy consumption in a cost-effective manner, such as the low-income usage reduction program, application of renewable resources and consumer education of defined programs.

"Variable Distribution Charges": Charges to recover the balance of distribution costs, not recovered in the Fixed Distribution Charge, which are stated as variable charges and based on the billing determinants to which they are most closely associated.

"Volunteer Fire Company Service": A separately metered establishment consisting of a building, sirens, a garage for housing vehicular fire fighting equipment, or a facility certified by the Pennsylvania Emergency Management Agency (PEMA) for fire fighter training. The use of electric service at this establishment shall be to support the activities of the volunteer fire company. Any fund raising activities at this establishment must be used solely to support volunteer fire fighting operations. The Customer of record at this establishment must be a predominantly volunteer fire company recognized by the local municipality or PEMA as a provider of fire fighting services.




(C)






The Company shall have no duty or liability with respect to electrical energy before it is delivered by an EGS to a point of delivery on the Company's electric distribution system. After its receipt of electric energy and capacity at the point of delivery, the Company shall have the same duty and liability for distribution service to Customers receiving Competitive Energy Supply as to those receiving Default Service from the Company. (C)

In all other circumstances, the liability of the Company to customers or other persons for damages, direct or consequential, including damage to computers and other electronic equipment and appliances, loss of business, or loss of production caused by any interruption, reversal, spike, surge or variation in supply or voltage, transient voltage, or any other failure in the supply of electricity shall in no event, exceed an amount in liquidated damages equivalent to the greater of $500 or two times the charge to the customer for the service affected during the period in which such interruption, reversal, spike, surge or variation in supply or voltage, transient voltage, or any other failure in the supply of electricity occurs. In addition no charge will be made to the customer for the affected service during the period in which such interruption, reversal, spike, surge or variation in supply or voltage, transient voltage, or any other failure in the supply of electricity occurs. A variety of protective devices and alternate power supplies that may prevent or limit such damage are available for purchase by the customer from third parties.

19. Metering

a. The Company shall provide all meters and metering equipment necessary to obtain the information required to bill its Customers. The Company may select and use any type of meters and metering equipment, provided it meets the accuracy requirements of the Public Utility Commission, except as provided in paragraph c. below.

b. At the Company's sole discretion, the kilowatt-hours and billing demands required for billing purposes may be determined by computations or by measurement in the case of installations having a fixed load or demand value controlled to operate for a definite number of hours in a billing period.

c. An advanced meter may be installed, maintained, and removed according to provisions in Appendix C of the Joint Petition for Full Settlement of West Penn Power Company's Restructuring Plan and Related Court Proceedings at Docket No. R-00973981.

An advanced meter is defined as a meter (1) capable of storing electric consumption data at specified time intervals of no greater than one-half hour and in conformance with applicable performance specifications, and (2) capable of remote meter reading.











19. Metering

a. The Company shall provide all meters and metering equipment necessary to obtain the information required to bill its Customers. The Company may select and use any type of meters and metering equipment, provided it meets the accuracy requirements of the Public Utility Commission, except as provided in paragraph c. below.

b. At the Company's sole discretion, the kilowatt-hours and billing demands required for billing purposes may be determined by computations or by measurement in the case of installations having a fixed load or demand value controlled to operate for a definite number of hours in a billing period.

c. An advanced meter may be installed, maintained, and removed according to provisions in Appendix C of the Joint Petition for Full Settlement of West Penn Power Company's Restructuring Plan and Related Court Proceedings at Docket No. R-00973981.

An advanced meter is defined as a meter (1) capable of storing electric consumption data at specified time intervals of no greater than one-half hour and in conformance with applicable performance specifications, and (2) capable of remote meter reading.









(h) Billing Errors. When the Company provides billing for Competitive Energy Supply on behalf of an EGS, Company shall not be responsible for billing errors resulting from incorrect price information received from an EGS.

(i) Billing Options. The Company will always bill the Customer for the Company's Fixed and Variable Distribution Charges, associated surcharges and riders, and Generation Charges (when the Company is providing Default Service). A Customer may request: (1) that its EGS provide a separate bill only for the Competitive Energy Supply; or (2) require its EGS to appoint the Company as the EGS' billing agent. When Company provides billing for the EGS, the Company will bill the Customer not only for Company Charges, but also for the Competitive Energy Supply. (C)

U) Residential and small business Customers are entitled to receive at no charge and a least once a year, historical billing data from whomever reads the meter for billing purposes. The Company will provide this information to Customers qualified to receive it upon request.

23. Payment of Bills

(a) Late payment charges will be applied as provided in Rate Schedules under which service is supplied if all previous bills have not been paid. If bills are paid by mail, the date of the postmark will be considered the date of payment. The period will not be extended because of the Customer's failure to receive a bill unless said failure is due to an act of the Company.

(b) The payment period shall be 30 days for bills rendered to The Commonwealth of Pennsylvania or any department or any institution thereof, and The United States of America or any department or any institution thereof.

(c) At the option of a Residential Customer receiving service under Rate Schedule 10 and not in arrears for payment of service, Residential Customer may request billing based upon one-twelfth of the Residential Customer's Company charges for the latest twelve months actual usage. Any difference between the average payments and the actual Company charges for the twelve-month average payment period will be amortized over the next twelve-month period. A late payment charge of 1.25% per month will be added to average payment bill not paid by the due date.

(d) When the due date for residential service occurs from the 21 st day of the month through the fifth day of the following month, the due date may be extended upon request to the sixth day of that month for Customers receiving Social Security or Federal Government Pension benefits on or about the first of the month.

(e) A "Current Billing Plus Plan" or "Budget Billing Plus Plan" is available to Residential Customers in arrears for payment of service. Bills will be rendered with an amortization of the arrearage. A late payment charge of 1.25% per month will be added to a Current Billing Plus or Budget Billing Plus bill not paid by the due date.

(f) Late payment charges will be frozen upon receipt of notice that Customer is eligible for LlHEAP funds and these late payment charges will not be increased for the remainder of the LlHEAP program year.

(g) Retumed Checks - If a check received in payment of a Customer's account is returned to the Company unpaid by the Customer's bank and cannot be redeposited by the Company for payment, a $10.00 charge for the returned check will be added to the Customer's account. Each Customer will be allowed a waiver of one returned check charge in a 12-month period.

24. Billing Adjustments

(a) In case of overpayment or underpayment of any Company Charges, there shall be a proper and prompt adjustment between the Company and the Customer. (C) Indicates Change








(h) Billing Errors. When the Company provides billing for Competitive Energy Supply on behalf of an EGS, Company shall not be responsible for billing errors resulting from incorrect price information received from an EGS.

(i) Billing Options. The Company will always bill the Customer for the Company's Fixed and Variable Distribution Charges, associated surcharges and riders, and Generation Charges (when the Company is providing Default Service). A Customer may request: (1) that its EGS provide a separate bill only for the Competitive Energy Supply; or (2) require its EGS to appoint the Company as the EGS' billing agent. When Company provides billing for the EGS, the Company will bill the Customer not only for Company Charges, but also for the Competitive Energy Supply. (C)

U) Residential and small business Customers are entitled to receive at no charge and a least once a year, historical billing data from whomever reads the meter for billing purposes. The Company will provide this information to Customers qualified to receive it upon request.

23. Payment of Bills

(a) Late payment charges will be applied as provided in Rate Schedules under which service is supplied if all previous bills have not been paid. If bills are paid by mail, the date of the postmark will be considered the date of payment. The period will not be extended because of the Customer's failure to receive a bill unless said failure is due to an act of the Company.

(b) The payment period shall be 30 days for bills rendered to The Commonwealth of Pennsylvania or any department or any institution thereof, and The United States of America or any department or any institution thereof.

(c) At the option of a Residential Customer receiving service under Rate Schedule 10 and not in arrears for payment of service, Residential Customer may request billing based upon one-twelfth of the Residential Customer's Company charges for the latest twelve months actual usage. Any difference between the average payments and the actual Company charges for the twelve-month average payment period will be amortized over the next twelve-month period. A late payment charge of 1.25% per month will be added to average payment bill not paid by the due date.

(d) When the due date for residential service occurs from the 21 st day of the month through the fifth day of the following month, the due date may be extended upon request to the sixth day of that month for Customers receiving Social Security or Federal Government Pension benefits on or about the first of the month.

(e) A "Current Billing Plus Plan" or "Budget Billing Plus Plan" is available to Residential Customers in arrears for payment of service. Bills will be rendered with an amortization of the arrearage. A late payment charge of 1.25% per month will be added to a Current Billing Plus or Budget Billing Plus bill not paid by the due date.

(f) Late payment charges will be frozen upon receipt of notice that Customer is eligible for LlHEAP funds and these late payment charges will not be increased for the remainder of the LlHEAP program year.

(g) Retumed Checks - If a check received in payment of a Customer's account is returned to the Company unpaid by the Customer's bank and cannot be redeposited by the Company for payment, a $10.00 charge for the returned check will be added to the Customer's account. Each Customer will be allowed a waiver of one returned check charge in a 12-month period.

24. Billing Adjustments

(a) In case of overpayment or underpayment of any Company Charges, there shall be a proper and prompt adjustment between the Company and the Customer. (C) Indicates Change








IV. Termination of Service After Prior Notice

Company will terminate service as authorized under Rule 27R-1. after issuing a written notice to the Customer at least 10 days prior to actual termination and personally contacting Customer or responsible adult occupant at least 3 days prior to actual termination. Personal contact shall mean contacting the Customer, in person or by telephone, where phone contact shall be deemed complete upon attempted calls on two separate days to the residence between the hours of 7 A.M. and 9 P.M. if the calls were made at various times each day.

During the calendar months of January, February, March and December, if personal contact cannot be made at the residence, Company will post Termination Notice at residence and affected Dwelling advising service will be discontinued in 48 hours from time and date of posting.

After required notice and prior to actual termination, Customer or occupant may contact Company and Company will fully explain:

A. Reasons for proposed termination.

B. Methods for avoiding termination by:

1. Making payment in full or otherwise eliminate grounds for termination. 2. Entering into settlement or amortization agreement.

C. Medical emergency procedures.

If settlement or payment arrangement not reached, Company will further explain:

D. Right to file dispute with Company and thereafter, informal complaint with Pennsylvania Public Utility Commission.

E. Procedures for resolving disputes and informal complaints.

F. Residential Customer's duty to pay any portion of Company Charges not in dispute.

At time of actual disconnection, Company will conspicuously post or deliver to responsible person at Residential Customer's residence and affected premises a notice or written statement containing address and telephone number of Company office where Residential Customer or Occupant may arrange to have service restored as well as "Medical Emergency Notice."

V. Days Termination is Prohibited

Termination is prohibited on Company holidays, Pennsylvania Public Utility Commission and bank holidays; day before those holidays, and Saturdays, and Sundays.




(C)






IV. Termination of Service After Prior Notice

Company will terminate service as authorized under Rule 27R-1. after issuing a written notice to the Customer at least 10 days prior to actual termination and personally contacting Customer or responsible adult occupant at least 3 days prior to actual termination. Personal contact shall mean contacting the Customer, in person or by telephone, where phone contact shall be deemed complete upon attempted calls on two separate days to the residence between the hours of 7 A.M. and 9 P.M. if the calls were made at various times each day.

During the calendar months of January, February, March and December, if personal contact cannot be made at the residence, Company will post Termination Notice at residence and affected Dwelling advising service will be discontinued in 48 hours from time and date of posting.

After required notice and prior to actual termination, Customer or occupant may contact Company and Company will fully explain:

A. Reasons for proposed termination.

B. Methods for avoiding termination by:

1. Making payment in full or otherwise eliminate grounds for termination. 2. Entering into settlement or amortization agreement.

C. Medical emergency procedures.

If settlement or payment arrangement not reached, Company will further explain:

D. Right to file dispute with Company and thereafter, informal complaint with Pennsylvania Public Utility Commission.

E. Procedures for resolving disputes and informal complaints.

F. Residential Customer's duty to pay any portion of Company Charges not in dispute.

At time of actual disconnection, Company will conspicuously post or deliver to responsible person at Residential Customer's residence and affected premises a notice or written statement containing address and telephone number of Company office where Residential Customer or Occupant may arrange to have service restored as well as "Medical Emergency Notice."

V. Days Termination is Prohibited

Termination is prohibited on Company holidays, Pennsylvania Public Utility Commission and bank holidays; day before those holidays, and Saturdays, and Sundays.




(C)





With the effective date appearing below,

(C)

the Energy Cost Adjustment Surcharge is hereby canceled.








(C)




Met-Ed/Penelec/Penn PowerlWest Penn Exhibit REV-20 Page 9 of46


AVAILABILITY

DOMESTIC SERVICE SCHEDULE 10



Available for single-phase service to a single-family residence served through one meter.

MONTHLY RATE (For a Single Residence)

DISTRIBUTION CHARGES

FIXED DISTRIBUTION CHARGE

$ 5.00 PER MONTH

VARIABLE DISTRIBUTION CHARGE

All kilowatt-hours ................................................................... $0.01874 per kilowatt-hour

DEFAULT SERVICE SUPPORT

$X.XXXXX per kWh for all kWh

The Company will provide and charge for Default Service Support to Customers taking Delivery Service in accordance with the provisions of the Default Service Support Rider, which charge shall apply to all kWh billed under this Rate Schedule.

SOLAR PHOTOVOL TAlC REQUIREMENTS CHARGE


The Company will provide and charge for Solar Photovoltaic Requirements to Customers taking Delivery Service in accordance with the provisions of the Solar Photovoltaic Requirements Charge Rider, which charge shall apply to all kWh billed under this Rate Schedule.

DEFAULT SERVICE CHARGES

For Customers receiving Default Service from the Company, the Price To Compare Default Service Rate Rider, Residential Customer Class rate applies.


Concluded on Page No. 6-2


(C)

(C)

(C)

(C) (C) (C)



AVAILABILITY

DOMESTIC SERVICE SCHEDULE 10



Available for single-phase service to a single-family residence served through one meter.

MONTHLY RATE (For a Single Residence)


FIXED DISTRIBUTION CHARGE

$ 5.00 PER MONTH

VARIABLE DISTRIBUTION CHARGE

All kilowatt-hours ................................................................... $0.01874 per kilowatt-hour








For Customers receiving Default Service from the Company, the Price To Compare Default Service Rate Rider, Residential Customer Class rate applies.




(C)

(C)

(C)

(C) (C) (C)



AVAILABILITY

GENERAL SERVICE SCHEDULE 20



Available for any purpose not included with the Availability of Schedule 10, Domestic Service, if all service at an establishment is supplied under this Schedule. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

MONTHLY RATE


Minimum kilowatts .................................................................. $1.33 per kilowatt Energy Charge (kWh)

First block kilowatt-hours ........................................................ $0.03113 per kilowatt-hour Second block (next 700) kilowatt-hours ................................. $0.01470 per kilowatt-hour Third block (next 7,500) kilowatt-hours .................................. $0.01332 per kilowatt-hour Additional kilowatt-hours ........................................................ $0.01300 per kilowatt-hour

The first energy block shall consist of 300 kilowatt-hours plus 30 kilowatt-hours for each one-half kilowatt of Customer's Demand in excess of 5 kilowatts. (C)

DEFAULT SERVICE SUPPORT (C)







For Customers receiving Default Service from the Company, the Price To Compare Default Service Rate Rider, Commercial Customer Class rate applies unless the Customer elects to receive Default Service from the Company under the Hourly Pricing Default Service Rider.




(C)

(C)

(C)



AVAILABILITY

GENERAL SERVICE SCHEDULE 20



Available for any purpose not included with the Availability of Schedule 10, Domestic Service, if all service at an establishment is supplied under this Schedule. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

MONTHLY RATE


Minimum kilowatts .................................................................. $1.33 per kilowatt Energy Charge (kWh)

First block kilowatt-hours ........................................................ $0.03113 per kilowatt-hour Second block (next 700) kilowatt-hours ................................. $0.01470 per kilowatt-hour Third block (next 7,500) kilowatt-hours .................................. $0.01332 per kilowatt-hour Additional kilowatt-hours ........................................................ $0.01300 per kilowatt-hour

The first energy block shall consist of 300 kilowatt-hours plus 30 kilowatt-hours for each one-half kilowatt of Customer's Demand in excess of 5 kilowatts. (C)












(C)

(C)

(C)



Minimum Charge

SCHEDULE 20 (Continued)



Minimum charges from above per kilowatt of Customer's Demand of the current month but not less than 50% of the kilowatt capacity necessary to serve Customer.

The kilowatt capacity necessary to serve Customer shall be the larger of the two: a) The highest Customer's Demand in the last 12 months, or b) The kilowatt capacity stated on the Electric Service Agreement (if an Agreement exists).

Tax Adjustment Surcharge

The Tax Adjustment Surcharge included in this Tariff applies to charges under this Schedule.

Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full by the due date. These charges are to be calculated on the overdue portions of the bill only. Such interest rate, when annualized, shall not exceed 15% simple interest per annum.




(C) (C) (C)



Minimum Charge




Minimum charges from above per kilowatt of Customer's Demand of the current month but not less than 50% of the kilowatt capacity necessary to serve Customer.

The kilowatt capacity necessary to serve Customer shall be the larger of the two: a) The highest Customer's Demand in the last 12 months, or b) The kilowatt capacity stated on the Electric Service Agreement (if an Agreement exists).



Late Payment Charge





(C) (C) (C)



AVAILABILITY



CHURCH AND SCHOOL SERVICE SCHEDULE 22

Available only to locations now served hereunder and to locations for which definite rate commitments have been made as of August 30, 1979. This Schedule is applicable for Churches, Public and Parochial school buildings and non-profit Colleges and Universities and associated buildings for any purpose if all service at an establishment is supplied under this Schedule. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

MONTHLY RATE


Minimum Charge .................................................................... $1.93 per connection Energy charge (kWh)

First Block (0-300 kilowatt-hours) ........................................... $0.03704 per kilowatt-hour Second Block (301-1200 kilowatt-hours) ............................... $0.03121 per kilowatt-hour Third Block (Over 1,200 kilowatt-hours) ................................. $0.02737 per kilowatt-hour












(C)

(C)

(C)

(C)



AVAILABILITY



CHURCH AND SCHOOL SERVICE SCHEDULE 22

Available only to locations now served hereunder and to locations for which definite rate commitments have been made as of August 30, 1979. This Schedule is applicable for Churches, Public and Parochial school buildings and non-profit Colleges and Universities and associated buildings for any purpose if all service at an establishment is supplied under this Schedule. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

MONTHLY RATE


Minimum Charge .................................................................... $1.93 per connection Energy charge (kWh)

First Block (0-300 kilowatt-hours) ........................................... $0.03704 per kilowatt-hour Second Block (301-1200 kilowatt-hours) ............................... $0.03121 per kilowatt-hour Third Block (Over 1,200 kilowatt-hours) ................................. $0.02737 per kilowatt-hour












(C)

(C)

(C)

(C)






CHURCH AND SCHOOL SERVICE SCHEDULE 22 (Continued)


SPACE HEATING

This Space Heating provision is available only to locations being served prior to October 31, 1972.

When Customer uses electric energy as the only means of space heating in his establishment, all use in the establishment will be billed as follows except as provided under Water Heating.


Minimum charge ..................................................................... $1.93 per connection Energy charge (kWh)

First Block (0-300 kilowatt-hours) ........................................... $0.03704 per kilowatt-hour Second Block (Over 300 kilowatt-hours) ................................ $0.02165 per kilowatt-hour





$X.xXXXX per kWh for all kWh







(C) (C)

(C)

(C)

(C)






CHURCH AND SCHOOL SERVICE SCHEDULE 22 (Continued)


SPACE HEATING

This Space Heating provision is available only to locations being served prior to October 31, 1972.

When Customer uses electric energy as the only means of space heating in his establishment, all use in the establishment will be billed as follows except as provided under Water Heating.


Minimum charge ..................................................................... $1.93 per connection Energy charge (kWh)

First Block (0-300 kilowatt-hours) ........................................... $0.03704 per kilowatt-hour Second Block (Over 300 kilowatt-hours) ................................ $0.02165 per kilowatt-hour












(C) (C)

(C)

(C)

(C)






At Customer's option energy used for space heating may be separately metered and billed as follows:

MONTHLY RATE (Separately Metered Space Heating)


Minimum charge ..................................................................... $2.12 per connection All kilowatt-hours .................................................................... $0.02267 per kilowatt-hour












(C) (C) (C)

(C)

(C)

(C)






At Customer's option energy used for space heating may be separately metered and billed as follows:

MONTHLY RATE (Separately Metered Space Heating)


Minimum charge ..................................................................... $2.12 per connection All kilowatt-hours .................................................................... $0.02267 per kilowatt-hour












(C) (C) (C)

(C)

(C)

(C)



WATER HEATING

Standard Heaters



SCHEDULE 22-(Continued)

Each water heater shall have a minimum tank capacity of 40 gallons. Water heaters shall be equipped with a pressure-temperature relief valve located in the top of the tank and an over-temperature cutoff switch or shall comply with applicable governmental regulations. The lower and upper heating elements shall not exceed 20 watts and 30 watts per gallon of tank capacity respectively or 5,500 watts each, whichever is greater. Heating elements shall be thermostatically controlled and shall be interlocked to prevent simultaneous operation of the lower and upper elements. The water heater, wiring and piping shall also conform to Company standards in all other respects.




(C) (C) (C)



WATER HEATING

Standard Heaters



SCHEDULE 22-(Continued)

Each water heater shall have a minimum tank capacity of 40 gallons. Water heaters shall be equipped with a pressure-temperature relief valve located in the top of the tank and an over-temperature cutoff switch or shall comply with applicable governmental regulations. The lower and upper heating elements shall not exceed 20 watts and 30 watts per gallon of tank capacity respectively or 5,500 watts each, whichever is greater. Heating elements shall be thermostatically controlled and shall be interlocked to prevent simultaneous operation of the lower and upper elements. The water heater, wiring and piping shall also conform to Company standards in all other respects.




(C) (C) (C)



AVAILABILITY



ATHLETIC FIELD LIGHTING SERVICE SCHEDULE 23

Available for connections served under provisions of this Schedule as of August 28, 1985 for outdoor lighting and for incidental use, through one meter for Athletic Fields sponsored by public or parochial schools, communities, civic organizations or other public institutions. The Customer's Demand for billing shall be 50 kilovoltamperes or more. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

MONTHLY RATE DISTRIBUTION CHARGES

Minimum Charge ........................................................................... $6.60 per connection Minimum kVA ................................................................................ $0.13 per kVA Energy Charge (kWh)

First block (20 kWh/kVA) ....................................................... $0.01569 per kilowatt-hour Second block (excess) ........................................................... $0.00648 per kilowatt-hour

The first energy block shall be a quantity of kilowatt-hours numerically equal to 20 hours' use of Customer's Demand. (C)












(C)

(C)

(C)



AVAILABILITY



ATHLETIC FIELD LIGHTING SERVICE SCHEDULE 23

Available for connections served under provisions of this Schedule as of August 28, 1985 for outdoor lighting and for incidental use, through one meter for Athletic Fields sponsored by public or parochial schools, communities, civic organizations or other public institutions. The Customer's Demand for billing shall be 50 kilovoltamperes or more. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

MONTHLY RATE DISTRIBUTION CHARGES


First block (20 kWh/kVA) ....................................................... $0.01569 per kilowatt-hour Second block (excess) ........................................................... $0.00648 per kilowatt-hour

The first energy block shall be a quantity of kilowatt-hours numerically equal to 20 hours' use of Customer's Demand. (C)












(C)

(C)

(C)



Minimum Charge

As specified above.




ATHLETIC FIELD LIGHTING SERVICE SCHEDULE 23 (Concluded)


Late Payment Charge


DETERMINATION OF CUSTOMER'S DEMAND

The Customer's Demand for any month shall be the maximum fifteen-minute kilovolt-ampere demand, but not less than 50 kilovolt-amperes.

GENERAL

Compensating for Transmission and Distribution Losses.

For service at less than 1,000 volts, multiplying Customers' on peak metered energy by 1.09333 and offpeak metered energy by 1.04808 produces the generation energy that must be delivered to the West Penn system. For service between 1,000 and 15,000 volts, the multipliers are 1.07447 and 1.04325 respectively.

Customer shall pay the net cost of connection and disconnection and facilities shall remain in place from season to season.

TERM One month or longer.



(C) (C) (C)



Minimum Charge

As specified above.




ATHLETIC FIELD LIGHTING SERVICE SCHEDULE 23 (Concluded)


Late Payment Charge



The Customer's Demand for any month shall be the maximum fifteen-minute kilovolt-ampere demand, but not less than 50 kilovolt-amperes.

GENERAL



Customer shall pay the net cost of connection and disconnection and facilities shall remain in place from season to season.

TERM One month or longer.



(C) (C) (C)



AVAILABILITY



FAIR AND CARNIVAL SERVICE SCHEDULE 24

Available for service through one meter for Fairs, Carnivals and other enterprises of a similar temporary nature such as Circuses, Chautauquas, Camp Meetings, Sport Events and Community Celebrations. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

WEEKLY RATE DISTRIBUTION CHARGES


First block (0 to 500) .............................................................. $0.02184 per kilowatt-hour Second block (over 500) ........................................................ $0.01542 per kilowatt-hour










Concluded on Page No.1 0-2


(C)

(C)

(C)

(C)



AVAILABILITY



FAIR AND CARNIVAL SERVICE SCHEDULE 24

Available for service through one meter for Fairs, Carnivals and other enterprises of a similar temporary nature such as Circuses, Chautauquas, Camp Meetings, Sport Events and Community Celebrations. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities.

WEEKLY RATE DISTRIBUTION CHARGES


First block (0 to 500) .............................................................. $0.02184 per kilowatt-hour Second block (over 500) ........................................................ $0.01542 per kilowatt-hour










Concluded on Page No.1 0-2


(C)

(C)

(C)

(C)



Minimum Charge

As prescribed above.

A week shall be 7 consecutive days.



__ Revised Page No.1 0-2 Canceling __ Revised Page No.1 0-2

FAIR AND CARNIVAL SERVICE SCHEDULE 24 (Concluded)


GENERAL

Customer shall pay in advance Company's estimated net cost of connection and disconnection, including poles, lines, transformers, meters and other necessary equipment.

Before connection is made, Customer shall deposit with Company an amount equal to the estimated weekly bill. After connection, bills shall be paid upon presentation.



TERM

One week or longer.



(C) (C)



Minimum Charge

As prescribed above.

A week shall be 7 consecutive days.



__ Revised Page No.1 0-2 Canceling __ Revised Page No.1 0-2

FAIR AND CARNIVAL SERVICE SCHEDULE 24 (Concluded)


GENERAL

Customer shall pay in advance Company's estimated net cost of connection and disconnection, including poles, lines, transformers, meters and other necessary equipment.

Before connection is made, Customer shall deposit with Company an amount equal to the estimated weekly bill. After connection, bills shall be paid upon presentation.



TERM

One week or longer.



(C) (C)





GENERAL POWER SERVICE SCHEDULE 30

Available for any purpose for loads totaling over 100 kilowatts at an establishment when all service at the establishment is supplied under this Schedule. Connections made before October 14, 1966, shall be for loads greater than 50 kilowatts. Loads over 1,500 kilowatts connected after August 28, 1985, will be served at voltages greater than 1,000 volts. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities. An Electric Service Agreement shall be executed.

Riders Available - Curtailable Service Rider and Experimental Shoulder-Peak Rider are available under this schedule.

MONTHLY RATE


Demand Charge (kW) Minimum kilowatts ...................................................................... $1.07 per kilowatt First Block kilowatts (0 to 1 00) .................................................... $0.98 per kilowatt Second Block kilowatts (Over 100) ............................................ $0.82 per kilowatt

Voltage discount (kW)

1,000 to 15,000 volts ................................................................. $0.20 per kilowatt Over 15,000 volts ....................................................................... $0.40 per kilowatt

Reactive kilovolt-ampere charge

Reactive kilovolt-ampere charge is applied to the Customer's reactive kilovolt-ampere capacity requirement in excess of 35% of the Customer's kilowatt capacity.

Billing reactive kilovolt-amperes ................................................. $0.40 per reactive kilovolt-ampere

Energy Charges (kWh) First Block (0 to 40,000) ............................................................. $0.00704 per kilowatt-hour Second Block (over 40,000) ....................................................... $0.00630 per kilowatt-hour


$X.XXXXX per kWh for all kWh for Rate Schedule 30 (small) Customers $X.XXXXX per kW for Rate Schedule 30 (large) Customers

The Company will provide and charge for Default Service Support to Customers taking Delivery Service in accordance with the provisions of the Default Service Support Rider, which charge shall apply to all kWh billed for Rate Schedule 30 (small) Customers and shall apply to all kW billed for Rate Schedule 30 (large) Customers.




(C)

(C)





GENERAL POWER SERVICE SCHEDULE 30

Available for any purpose for loads totaling over 100 kilowatts at an establishment when all service at the establishment is supplied under this Schedule. Connections made before October 14, 1966, shall be for loads greater than 50 kilowatts. Loads over 1,500 kilowatts connected after August 28, 1985, will be served at voltages greater than 1,000 volts. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities. An Electric Service Agreement shall be executed.

Riders Available - Curtailable Service Rider and Experimental Shoulder-Peak Rider are available under this schedule.

MONTHLY RATE


Demand Charge (kW) Minimum kilowatts ...................................................................... $1.07 per kilowatt First Block kilowatts (0 to 1 00) .................................................... $0.98 per kilowatt Second Block kilowatts (Over 100) ............................................ $0.82 per kilowatt




Reactive kilovolt-ampere charge is applied to the Customer's reactive kilovolt-ampere capacity requirement in excess of 35% of the Customer's kilowatt capacity.


Energy Charges (kWh) First Block (0 to 40,000) ............................................................. $0.00704 per kilowatt-hour Second Block (over 40,000) ....................................................... $0.00630 per kilowatt-hour


$X.XXXXX per kWh for all kWh for Rate Schedule 30 (small) Customers $X.XXXXX per kW for Rate Schedule 30 (large) Customers

The Company will provide and charge for Default Service Support to Customers taking Delivery Service in accordance with the provisions of the Default Service Support Rider, which charge shall apply to all kWh billed for Rate Schedule 30 (small) Customers and shall apply to all kW billed for Rate Schedule 30 (large) Customers.




(C)

(C)





GENERAL POWER SERVICE SCHEDULE 30 (Continued)

SOLAR PHOTOVOLTAIC REQUIREMENTS CHARGE




For Rate Schedule 30 (small) Customers receiving Default Service from the Company, the Price To Compare Default Service Rate Rider, Commercial Customer Class rate applies unless the Customer elects to receive Default Service from the Company under the Hourly Pricing Default Service Rider. For Rate Schedule 30 (large) Customers receiving Default Service from the Company, the Hourly Pricing Default Service Rider rates apply.

DETERMINATION OF RATE SCHEDULE 30 (SMALL) AND RATE SCHEDULE 30 (LARGE)

"Rate Schedule 30 (small)": Customers receiving service under this Rate Schedule with a kW demand less than 500 kW.

"Rate Schedule 30 (large)": Customers receiving service under this Rate Schedule with a kW demand greater than or equal to 500 kW.

The Company will categorize Customers as those with kW demands less than 500 kW and those with a kW demand greater than or equal to 500 kW. Such categorization shall be effective for a 12-month period beginning June of each year and will be determined from the kW demands billed during the calendar year preceding June. Customers shall not switch categorization between Rate Schedule 30 (small) and Rate Schedule 30 (large) during the period of June through May.




(C)

(C)

(C)

(C) (C) (C)





GENERAL POWER SERVICE SCHEDULE 30 (Continued)





For Rate Schedule 30 (small) Customers receiving Default Service from the Company, the Price To Compare Default Service Rate Rider, Commercial Customer Class rate applies unless the Customer elects to receive Default Service from the Company under the Hourly Pricing Default Service Rider. For Rate Schedule 30 (large) Customers receiving Default Service from the Company, the Hourly Pricing Default Service Rider rates apply.

DETERMINATION OF RATE SCHEDULE 30 (SMALL) AND RATE SCHEDULE 30 (LARGE)

"Rate Schedule 30 (small)": Customers receiving service under this Rate Schedule with a kW demand less than 500 kW.

"Rate Schedule 30 (large)": Customers receiving service under this Rate Schedule with a kW demand greater than or equal to 500 kW.

The Company will categorize Customers as those with kW demands less than 500 kW and those with a kW demand greater than or equal to 500 kW. Such categorization shall be effective for a 12-month period beginning June of each year and will be determined from the kW demands billed during the calendar year preceding June. Customers shall not switch categorization between Rate Schedule 30 (small) and Rate Schedule 30 (large) during the period of June through May.




(C)

(C)

(C)

(C) (C) (C)





PRIMARY POWER SERVICE SCHEDULE 40 (Continued)

To qualify for this transmission voltage service, the Customer must be billed for at least 10,000 kilowatts at least once in every 12-month period.

Transformer Charge

When Customer desires to take service under this Schedule at a voltage between 1,000 and 15,000 volts, Company shall provide one transformation at charges set forth above based on the highest on-peak or off-peak demand for the month, but not less than any such demand previously established during the Term of the Electric Service Agreement nor less than the capacity specified therein. This transformer charge does not apply for those connections supplied at 12,470 volts by a single transformation from an adjacent 138,000 volt line.


$X.xXXXX per kW

The Company will provide and charge for Default Service Support to Customers taking Delivery Service in accordance with the provisions of the Default Service Support Rider, which charge shall apply to all kW billed under this Rate Schedule.





For Customers receiving Default Service from the Company, the Hourly Pricing Default Service Rider rates apply.




(C)

(C)

(C)

(C)







Transformer Charge



$X.xXXXX per kW










(C)

(C)

(C)

(C)








Late Payment Charge



For service between 15,000 and 100,000 volts, multiplying Customers' on peak metered energy by 1.05091 and off-peak metered energy by 1.04128 produces the generation energy that must be delivered to the West Penn system. For service at other voltages, Customer should contact Company for loss factor.




(C) (C) (C)








Late Payment Charge







(C) (C) (C)







Transformer Charge



$X.XXXXX per kW










(C)

(C)

(C)

(C)







Transformer Charge



$X.XXXXX per kW










(C)

(C)

(C)

(C)








Late Payment Charge


Compensating for Transmission and Distribution Losses



Customer's Kilowatt Demand

The Customer's Demand for any month shall be the average of the Weekly Demands established during the calendar weeks ending within the billing month. No Weekly Demand shall be taken at less than 50% of the highest Weekly Demand of the month.

The Customer's Demand shall not be less than the highest of the following:

(a) 2,000 kilowatts. (b) 50% of the kilowatt capacity specified in the Electric Service Agreement. (c) 50% of the highest Customer's Demand established during the most recent ten-year period or during the term of the Electric Service Agreement whichever is the lesser time.




(C) (C) (C)








Late Payment Charge


Compensating for Transmission and Distribution Losses



Customer's Kilowatt Demand

The Customer's Demand for any month shall be the average of the Weekly Demands established during the calendar weeks ending within the billing month. No Weekly Demand shall be taken at less than 50% of the highest Weekly Demand of the month.

The Customer's Demand shall not be less than the highest of the following:

(a) 2,000 kilowatts. (b) 50% of the kilowatt capacity specified in the Electric Service Agreement. (c) 50% of the highest Customer's Demand established during the most recent ten-year period or during the term of the Electric Service Agreement whichever is the lesser time.




(C) (C) (C)



AVAILABILITY



PRIMARY POWER SERVICE SCHEDULE 44

Available only to locations now served hereunder and to locations for which definite rate commitments have been made as of December 31, 1998, under conditions stated below for interruptible power service at not less than 25,000 volts balanced three phase for loads of 5,000 kilovolt-amperes or greater to the extent that Company, in its sole judgment, determines that it has capacity for such service at the point of supply. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities. An Electric Service Agreement shall be executed.

Riders Available - Opportunity Power Rider and Experimental Shoulder-Peak Rider are available under this schedule.

MONTHLY RATE


Point of supply at generating stations All kilovolt-amperes ................................................................ $0.08 per kilovolt-ampere All kilowatt-hours .................................................................... $0.00030 per kilowatt-hour

Point of supply at transmission lines First 5,000 kilovolt-amperes ................................................... $0.09 per kilovolt-ampere Additional kilovolt-amperes .................................................... $0.08 per kilovolt-ampere All kilowatt-hours .................................................................... $0.00030 per kilowatt-hour

Penalty Charge

In addition to the above demand and energy charges, a charge of $7.00 per kVA will apply each time a Customer fails to interrupt when requested. The kVA subject to this charge shall be the maximum fifteenminute kilovolt-ampere demand during each interruption period beginning with the second full fifteen-minute period after commencement of an interruption by the Company and continuing through the fifteen-minute period immediately preceding termination of that interruption period.


$X.XXXXX per kV A

The Company will provide and charge for Default Service Support to Customers taking Delivery Service in accordance with the provisions of the Default Service Support Rider, which charge shall apply to all kVA billed under this Rate Schedule.






(C)

(C)

(C)



AVAILABILITY




Available only to locations now served hereunder and to locations for which definite rate commitments have been made as of December 31, 1998, under conditions stated below for interruptible power service at not less than 25,000 volts balanced three phase for loads of 5,000 kilovolt-amperes or greater to the extent that Company, in its sole judgment, determines that it has capacity for such service at the point of supply. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities. An Electric Service Agreement shall be executed.

Riders Available - Opportunity Power Rider and Experimental Shoulder-Peak Rider are available under this schedule.

MONTHLY RATE


Point of supply at generating stations All kilovolt-amperes ................................................................ $0.08 per kilovolt-ampere All kilowatt-hours .................................................................... $0.00030 per kilowatt-hour

Point of supply at transmission lines First 5,000 kilovolt-amperes ................................................... $0.09 per kilovolt-ampere Additional kilovolt-amperes .................................................... $0.08 per kilovolt-ampere All kilowatt-hours .................................................................... $0.00030 per kilowatt-hour

Penalty Charge

In addition to the above demand and energy charges, a charge of $7.00 per kVA will apply each time a Customer fails to interrupt when requested. The kVA subject to this charge shall be the maximum fifteenminute kilovolt-ampere demand during each interruption period beginning with the second full fifteen-minute period after commencement of an interruption by the Company and continuing through the fifteen-minute period immediately preceding termination of that interruption period.


$X.XXXXX per kV A







(C)

(C)

(C)





SCHEDULE 44--Continued





Late Payment Charge





Customer's Kilovolt-ampere Demand:

The Customer's kVA demand for any month shall be the on-peak demand plus 50% of the amount the offpeak demand exceeds 120% of the on-peak demand.

The on-peak demand shall be the maximum fifteen-minute kilovolt-ampere demand of the on-peak period plus 25% of the maximum instantaneous kilovolt-ampere operating peak in excess of 140% of the maximum on-peak fifteen-minute demand.




(C)

(C) (C) (C)





SCHEDULE 44--Continued





Late Payment Charge





Customer's Kilovolt-ampere Demand:

The Customer's kVA demand for any month shall be the on-peak demand plus 50% of the amount the offpeak demand exceeds 120% of the on-peak demand.

The on-peak demand shall be the maximum fifteen-minute kilovolt-ampere demand of the on-peak period plus 25% of the maximum instantaneous kilovolt-ampere operating peak in excess of 140% of the maximum on-peak fifteen-minute demand.




(C)

(C) (C) (C)



AVAILABILITY




Available only to locations now served hereunder and to locations for which definite rate commitments have been made as of December 31, 1998 for service at 25,000 volts or higher for loads of 30,000 kilovolt-amperes or greater, supplied at not more than five plant locations within a distance of eight miles. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities. An Electric Service Agreement shall be executed.

Riders Available - Opportunity Power, Curtailable Service and Experimental Shoulder-Peak Riders are available under this schedule.

MONTHLY RATE


Demand Charge (kVA) First Block (0 to 30,000) ............................................................. $0.302 per kilovolt-ampere Second Block (next 30,000) ...................................................... $0.298 per kilovolt-ampere Third Block (Over 60,000) ......................................................... $0.294 per kilovolt-ampere

Voltage discount (kVA)

First Block (0 to 10,000) ............................................................. $0.70 per kilovolt-ampere Second Block (Over 10,000) ...................................................... $0.22 per kilovolt-ampere

If requested, the Company will furnish service at voltages above 100,000 volts at each plant location if such service at that location is over 10,000 kilovolt-amperes, is provided at a single delivery point from the Company's transmission system, is the only service on that account, and if in the sole judgment of the Company, the necessary capacity is available. When such service is supplied and the Customer owns and maintains all required facilities, the above discounts will be allowed but in no case will the amount of the minimum bill be hereby reduced.

To qualify for this transmission voltage service, the Customer must be billed for at least 10,000 kilovoltamperes at least once in every 12-month period at each metering point.

Energy Charges (kWh) First Block (0 to 30,000,000 kWh) .............................................. $O.O0092 per kilowatt-hour Second Block (over 30,000,000 to 530 kWh/kVA) .................... $0.00089 per kilowatt-hour Third Block (over 530 kWh/kVA) ................................................ $0.00084 per kilowatt-hour


$x.xxxxx per kV A




(C)

(C)



AVAILABILITY




Available only to locations now served hereunder and to locations for which definite rate commitments have been made as of December 31, 1998 for service at 25,000 volts or higher for loads of 30,000 kilovolt-amperes or greater, supplied at not more than five plant locations within a distance of eight miles. Service shall not be available for Standby or Maintenance Service such as that required for Alternative Generation Facilities. An Electric Service Agreement shall be executed.

Riders Available - Opportunity Power, Curtailable Service and Experimental Shoulder-Peak Riders are available under this schedule.

MONTHLY RATE


Demand Charge (kVA) First Block (0 to 30,000) ............................................................. $0.302 per kilovolt-ampere Second Block (next 30,000) ...................................................... $0.298 per kilovolt-ampere Third Block (Over 60,000) ......................................................... $0.294 per kilovolt-ampere

Voltage discount (kVA)

First Block (0 to 10,000) ............................................................. $0.70 per kilovolt-ampere Second Block (Over 10,000) ...................................................... $0.22 per kilovolt-ampere

If requested, the Company will furnish service at voltages above 100,000 volts at each plant location if such service at that location is over 10,000 kilovolt-amperes, is provided at a single delivery point from the Company's transmission system, is the only service on that account, and if in the sole judgment of the Company, the necessary capacity is available. When such service is supplied and the Customer owns and maintains all required facilities, the above discounts will be allowed but in no case will the amount of the minimum bill be hereby reduced.

To qualify for this transmission voltage service, the Customer must be billed for at least 10,000 kilovoltamperes at least once in every 12-month period at each metering point.

Energy Charges (kWh) First Block (0 to 30,000,000 kWh) .............................................. $O.O0092 per kilowatt-hour Second Block (over 30,000,000 to 530 kWh/kVA) .................... $0.00089 per kilowatt-hour Third Block (over 530 kWh/kVA) ................................................ $0.00084 per kilowatt-hour


$x.xxxxx per kV A




(C)

(C)











Late Payment Charge









(C)

(C)

(C) (C) (C)











Late Payment Charge









(C)

(C)

(C) (C) (C)





AVAILABILITY

STREET LIGHTING SERVICE SCHEDULE 51

Available only to present Customers for installations now being served prior to June 6, 1997 for mercury vapor street lighting to municipalities and to unincorporated communities, for lighting public bridges and major highway interchanges, for other suitable readily-accessible locations as solely determined by the Company, and for connections existing as of August 28, 1985.

MONTHLY RATE


Nominal Lamp Size

8,150 Lumen -11,500 Lumen -21,500 Lumen -60,000 Lumen -

175 Watts .. 74 kWh .................................................. $7.25 250 Watts 103 kWh ................................................ $10.12 400 Watts 162 kWh ................................................ $12.24

1,000 Watts 386 kWh ................................................ $18.82








For Customers receiving Default Service from the Company, the Price To Compare Default Service Rate Rider, Commercial Customer Class rate applies.



Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days (30 days for governmental accounts) of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days (30 days for governmental accounts) of the date of the bill.



(C)

(C)

(C)

(C)





AVAILABILITY


Available only to present Customers for installations now being served prior to June 6, 1997 for mercury vapor street lighting to municipalities and to unincorporated communities, for lighting public bridges and major highway interchanges, for other suitable readily-accessible locations as solely determined by the Company, and for connections existing as of August 28, 1985.

MONTHLY RATE


Nominal Lamp Size


175 Watts .. 74 kWh .................................................. $7.25 250 Watts 103 kWh ................................................ $10.12 400 Watts 162 kWh ................................................ $12.24

1,000 Watts 386 kWh ................................................ $18.82











Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days (30 days for governmental accounts) of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days (30 days for governmental accounts) of the date of the bill.



(C)

(C)

(C)

(C)





AVAILABILITY

OUTDOOR LIGHTING SERVICE SCHEDULE 52

Available for existing high pressure sodium vapor outdoor lighting installed before June 6, 1997 and for existing mercury vapor installations installed prior to August 28, 1985.

MONTHLY RATE


Nominal Lamp Size

High Pressure Sodium Vapor

9,500 Lumen - 100 Watts .. 51 kWh .................................................. $9.28

Mercury Vapor

4,000 Lumen -8,150 Lumen -

21,500 Lumen -

100 Watts .. 45 kWh .................................................. $6.93 175 Watts .. 74 kWh .................................................. $7.78 400 Watts 162 kWh ................................................ $12.67











Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days (30 days for govemmental accounts) of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days (30 days for governmental accounts) of the date of the bill. (C) Indicates Change



(C)

(C)

(C)

(C)





AVAILABILITY

OUTDOOR LIGHTING SERVICE SCHEDULE 52

Available for existing high pressure sodium vapor outdoor lighting installed before June 6, 1997 and for existing mercury vapor installations installed prior to August 28, 1985.

MONTHLY RATE


Nominal Lamp Size


9,500 Lumen - 100 Watts .. 51 kWh .................................................. $9.28

Mercury Vapor

4,000 Lumen -8,150 Lumen -

21,500 Lumen -

100 Watts .. 45 kWh .................................................. $6.93 175 Watts .. 74 kWh .................................................. $7.78 400 Watts 162 kWh ................................................ $12.67











Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days (30 days for govemmental accounts) of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days (30 days for governmental accounts) of the date of the bill. (C) Indicates Change



(C)

(C)

(C)

(C)





AVAILABILITY

STREET AND AREA LIGHTING SCHEDULE 53

Available only for present Customers for installations being served prior to June 6, 1997 for high pressure sodium vapor street and area lighting to Customers for lighting roadways, parking lots, and other suitable readilyaccessible areas as solely determined by the Company.

MONTHLY RATE


Nominal Lamp Size

Overhead Service

9,500 Lumen -22,000 Lumen -

*50,000 Lumen -

100 Watts .. 51 kWh .................................................. $9.28 200 Watts .. 86 kWh ................................................ $12.36 400 Watts 167 kWh ................................................ $17.87

*Also available for floodlighting application.

Underground Service

Low Mount

9,500 Lumen - 100 Watts .. 51 kWh ................................................ $16.14

9,500 Lumen -22,000 Lumen -50,000 Lumen -


High Mount Single Luminaire Per Pole

100 Watts .. 51 kWh ................................................ $29.32 200 Watts .. 86 kWh ................................................ $31.40 400 Watts 167 kWh ................................................ $34.10

High Mount Each Additional Luminaire Per Pole








(C)

(C)





AVAILABILITY

STREET AND AREA LIGHTING SCHEDULE 53

Available only for present Customers for installations being served prior to June 6, 1997 for high pressure sodium vapor street and area lighting to Customers for lighting roadways, parking lots, and other suitable readilyaccessible areas as solely determined by the Company.

MONTHLY RATE


Nominal Lamp Size

Overhead Service

9,500 Lumen -22,000 Lumen -

*50,000 Lumen -


*Also available for floodlighting application.

Underground Service

Low Mount

9,500 Lumen - 100 Watts .. 51 kWh ................................................ $16.14



High Mount Single Luminaire Per Pole


High Mount Each Additional Luminaire Per Pole








(C)

(C)





STREET AND AREA LIGHTING SCHEDULE 53 (Continued)








Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days (30 days for Governmental accounts) of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days (30 days for Governmental accounts) of the date of the bill.

GENERAL


Multiplying Customers' calculated on peak lighting energy by 1.09333 and calculated off-peak lighting energy by 1.04808 produces the generation energy that must be delivered to the West Penn system.

The rating of lamps in lumens is for identification purposes only and shall approximate the manufacturer's standard rating. All lamps are lighted from dusk to dawn aggregating approximately 4,200 hours per year.

TERM

Standard Term

The initial term of the Agreement shall be five years except as provided in the paragraphs below. After the initial term, the Agreement shall remain in effect until cancelled by not less than 90 days prior written notice of cancellation.




(C)

(C)

(C) (C)





STREET AND AREA LIGHTING SCHEDULE 53 (Continued)








Late Payment Charge

The above net rates apply if the current bill is paid in full within 15 days (30 days for Governmental accounts) of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days (30 days for Governmental accounts) of the date of the bill.

GENERAL


Multiplying Customers' calculated on peak lighting energy by 1.09333 and calculated off-peak lighting energy by 1.04808 produces the generation energy that must be delivered to the West Penn system.

The rating of lamps in lumens is for identification purposes only and shall approximate the manufacturer's standard rating. All lamps are lighted from dusk to dawn aggregating approximately 4,200 hours per year.

TERM

Standard Term

The initial term of the Agreement shall be five years except as provided in the paragraphs below. After the initial term, the Agreement shall remain in effect until cancelled by not less than 90 days prior written notice of cancellation.




(C)

(C)

(C) (C)





AVAILABILITY


Available only to present Customers for installations now being served prior to June 6, 1997 for high pressure sodium vapor street lighting to municipalities and to unincorporated communities and for lighting major highway interchanges and other suitable readily-accessible locations as solely determined by the Company.

MONTHLY RATE


Nominal Lamp Size

9,500 Lumen 22,000 Lumen 50,000 Lumen












Late Payment Charge

The above net rates apply if the current bill is paid in full within 30 days of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 30 days of the date of the bill.

GENERAL


Multiplying Customers' calculated on peak lighting energy by 1.09333 and calculated off-peak lighting energy by 1.04808 produces the generation energy that must be delivered to the West Penn system. (C) Indicates Change



(C)

(C)

(C)

(C)





AVAILABILITY


Available only to present Customers for installations now being served prior to June 6, 1997 for high pressure sodium vapor street lighting to municipalities and to unincorporated communities and for lighting major highway interchanges and other suitable readily-accessible locations as solely determined by the Company.

MONTHLY RATE


Nominal Lamp Size

9,500 Lumen 22,000 Lumen 50,000 Lumen












Late Payment Charge


GENERAL


Multiplying Customers' calculated on peak lighting energy by 1.09333 and calculated off-peak lighting energy by 1.04808 produces the generation energy that must be delivered to the West Penn system. (C) Indicates Change



(C)

(C)

(C)

(C)





AREA LIGHTING SERVICE - UNDERGROUND DISTRIBUTION SCHEDULE 55

AVAILABILITY

Available only to present Customers for installations now being served prior to June 6, 1997 for highpressure sodium vapor lighting to municipalities for area lighting service from an underground distribution system. Also available for existing mercury vapor installations installed prior to January 8, 1989.

MONTHLY RATE


Nominal Lamp Size

Sodium Vapor Low Mount

9,500 Lumen - 100 Watts .. 51 kWh ................................................ $15.64

Sodium Vapor High Mount Single Luminaire Per Pole



Sodium Vapor High Mount Each Additional Luminaire Per Pole


Mercury Vapor

100Watts .. 51 kWh ................................................ $13.54 200 Watts .. 86 kWh ................................................ $15.62 400 Watts 167 kWh ................................................ $18.35

8,150 Lumen - 175 Watts .. 74 kWh ................................................ $15.49











(C)

(C)

(C)

(C)





AREA LIGHTING SERVICE - UNDERGROUND DISTRIBUTION SCHEDULE 55

AVAILABILITY

Available only to present Customers for installations now being served prior to June 6, 1997 for highpressure sodium vapor lighting to municipalities for area lighting service from an underground distribution system. Also available for existing mercury vapor installations installed prior to January 8, 1989.

MONTHLY RATE


Nominal Lamp Size

Sodium Vapor Low Mount

9,500 Lumen - 100 Watts .. 51 kWh ................................................ $15.64

Sodium Vapor High Mount Single Luminaire Per Pole



Sodium Vapor High Mount Each Additional Luminaire Per Pole


Mercury Vapor

100Watts .. 51 kWh ................................................ $13.54 200 Watts .. 86 kWh ................................................ $15.62 400 Watts 167 kWh ................................................ $18.35

8,150 Lumen - 175 Watts .. 74 kWh ................................................ $15.49











(C)

(C)

(C)

(C)





STREET LIGHTING SERVICE - CUSTOMER-OWNED EQUIPMENT SCHEDULE 56

AVAILABILITY

Available only to present Customers for installations now being served prior to June 6, 1997 for highpressure sodium vapor and mercury vapor street lighting to municipalities. This Schedule is not available to serve lighting systems in an area where there will be a mix of Company-owned and Customer-owned systems.

MONTHLY RATE


Type and Nominal Lamp Size

Installed on Customer-Owned

Pole

Installed on Company's Distribution

System

HPS ............. 9,500 Lumen .......... 100 Watts ................. 51 kWh .......... $ 3.57 each ....... $ 4.74 each HPS ........... 22,000 Lumen .......... 200 Watts ................. 86 kWh .......... $ 5.91 each ....... $ 7.10 each HPS ........... 50,000 Lumen .......... 400 Watts ............... 167 kWh .......... $ 9.64 each ...... $10.82 each MV ............. 8,150 Lumen .......... 175 Watts ................. 74 kWh .......... $ 3.97 each ....... $ 5.14 each MV ........... 11,500 Lumen .......... 250 Watts ............... 103 kWh .......... $ 5.34 each ....... $ 6.53 each MV ........... 21,500 Lumen .......... 400 Watts ............... 162 kWh .......... $ 6.87 each ....... $ 8.06 each MV ........... 60,000 Lumen ........ 1000 Watts ............... 386 kWh ........ $ 10.46 each ...... $11.65 each












(C)

(C)

(C)

(C)





STREET LIGHTING SERVICE - CUSTOMER-OWNED EQUIPMENT SCHEDULE 56

AVAILABILITY

Available only to present Customers for installations now being served prior to June 6, 1997 for highpressure sodium vapor and mercury vapor street lighting to municipalities. This Schedule is not available to serve lighting systems in an area where there will be a mix of Company-owned and Customer-owned systems.

MONTHLY RATE


Type and Nominal Lamp Size

Installed on Customer-Owned

Pole

Installed on Company's Distribution

System

HPS ............. 9,500 Lumen .......... 100 Watts ................. 51 kWh .......... $ 3.57 each ....... $ 4.74 each HPS ........... 22,000 Lumen .......... 200 Watts ................. 86 kWh .......... $ 5.91 each ....... $ 7.10 each HPS ........... 50,000 Lumen .......... 400 Watts ............... 167 kWh .......... $ 9.64 each ...... $10.82 each MV ............. 8,150 Lumen .......... 175 Watts ................. 74 kWh .......... $ 3.97 each ....... $ 5.14 each MV ........... 11,500 Lumen .......... 250 Watts ............... 103 kWh .......... $ 5.34 each ....... $ 6.53 each MV ........... 21,500 Lumen .......... 400 Watts ............... 162 kWh .......... $ 6.87 each ....... $ 8.06 each MV ........... 60,000 Lumen ........ 1000 Watts ............... 386 kWh ........ $ 10.46 each ...... $11.65 each












(C)

(C)

(C)

(C)





STREET LIGHTING SERVICE - CUSTOMER-OWNED EQUIPMENT SCHEDULE 56 (Continued)



Late Payment Charge





(C) (C)





STREET LIGHTING SERVICE - CUSTOMER-OWNED EQUIPMENT SCHEDULE 56 (Continued)



Late Payment Charge





(C) (C)

Met-Ed/Penelec/Penn Power/West Penn Exhibit REV-20 Page 38 of46


Supplement No. 204 to Electric-Pa. P. U. C. No. 39

Seventeenth Revised Page No. 23-3 Canceling Sixteenth Revised Page No. 23-3

OUTDOOR LIGHTING EQUIPMENT, MAINTENANCE, AND UNMETERED SERVICE



High Pressure Sodium - Rectangular Luminaire (Shoe Box) 30' Mounting Height

Single Luminaire Per Pole, with base2


100 watt .. 51 kWh ................................................ $39.59 200 watt .. 86 kWh ................................................ $40.76 400 watt 167 kWh ................................................ $42.34

Single Luminaire Per Pole, no base2



Each Additional Luminaire Per Pole



Metal Halide - Rectangular Luminaire (Shoe Box) 30' Mounting Height


11,600 Lumen -36,000 Lumen -

175 watt .. 74 kWh ................................................ $43.64 400 watt 157 kWh ................................................ $43.64

Single Luminaire Per Pole, no base


175 watt .. 74 kWh ................................................ $35.06 400 watt 157 kWh ................................................ $35.06

1000 watt 379 kWh ................................................ $52.65



175 watt .. 74 kWh ................................................ $20.74 400 watt 157 kWh ................................................ $20.74

1000 watt 379 kWh ................................................ $32.92

2 With base includes the installation of a non-concrete power installed foundation where soil conditions warrant its application.



Issued _____ _ Effective June 1, 2013

(C)

Met-Ed/Penelec/Penn Power/West Penn Exhibit REV-20 Page 38 of46



Seventeenth Revised Page No. 23-3 Canceling Sixteenth Revised Page No. 23-3

OUTDOOR LIGHTING EQUIPMENT, MAINTENANCE, AND UNMETERED SERVICE



High Pressure Sodium - Rectangular Luminaire (Shoe Box) 30' Mounting Height




Single Luminaire Per Pole, no base2






Metal Halide - Rectangular Luminaire (Shoe Box) 30' Mounting Height


11,600 Lumen -36,000 Lumen -

175 watt .. 74 kWh ................................................ $43.64 400 watt 157 kWh ................................................ $43.64

Single Luminaire Per Pole, no base


175 watt .. 74 kWh ................................................ $35.06 400 watt 157 kWh ................................................ $35.06

1000 watt 379 kWh ................................................ $52.65



175 watt .. 74 kWh ................................................ $20.74 400 watt 157 kWh ................................................ $20.74

1000 watt 379 kWh ................................................ $32.92

2 With base includes the installation of a non-concrete power installed foundation where soil conditions warrant its application.




(C)



OUTDOOR LIGHTING



EQUIPMENT, MAINTENANCE, AND UNMETERED SERVICE SCHEDULE 57 (Continued)











Late Payment Charge

Municipal Billing

The above net rates apply if the current bill is paid in full within thirty (30) days of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within thirty (30) days of the date of the bill.

Non-Municipal Billing

The above net rates apply if the current bill is paid in full within 15 days of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days of the date of the bill. The due date of outdoor lighting billed as a line item on a power bill is the same date as the power bill.




(C)

(C)

(C)

(C) (C)



OUTDOOR LIGHTING



EQUIPMENT, MAINTENANCE, AND UNMETERED SERVICE SCHEDULE 57 (Continued)











Late Payment Charge

Municipal Billing

The above net rates apply if the current bill is paid in full within thirty (30) days of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within thirty (30) days of the date of the bill.

Non-Municipal Billing

The above net rates apply if the current bill is paid in full within 15 days of the date of such bill and if all previous undisputed bills have been paid in full. A late payment charge of 1.25% per month of the unpaid balance of a bill will be made for failure to make payment in full within 15 days of the date of the bill. The due date of outdoor lighting billed as a line item on a power bill is the same date as the power bill.




(C)

(C)

(C)

(C) (C)




__ Revision Page No. 24-2 Canceling __ Revised Page No. 24-2

OUTDOOR LIGHTING MAINTENANCE AND UNMETERED SERVICE



Installed On Company's Distribution System



100 Watt .. 51 kWh .................................................. $4.74 200 Watt .. 86 kWh .................................................. $7.10 400 Watt 167 kWh ................................................ $10.82

Mercury Vapor


175 Watt .. 74 kWh .................................................. $5.14 250 Watt 103 kWh .................................................. $6.53 400 Watt 162 kWh .................................................. $8.06

1000 Watt 386 kWh ................................................ $11.65

Metal Halide



1000 Watt 379 kWh ................................................ $13.18

Incandescent


100 Watt .. 37 kWh .................................................. $5.96 200 Watt .. 71 kWh .................................................. $6.64 325 Watt 115 kWh .................................................. $7.64 450 Watt 158 kWh .................................................. $8.58

Note: The rating of the lamps in lumens is for identification and shall approximate the manufacturer's standard rating.




(C)




__ Revision Page No. 24-2 Canceling __ Revised Page No. 24-2




Installed On Company's Distribution System



100 Watt .. 51 kWh .................................................. $4.74 200 Watt .. 86 kWh .................................................. $7.10 400 Watt 167 kWh ................................................ $10.82

Mercury Vapor



1000 Watt 386 kWh ................................................ $11.65

Metal Halide



1000 Watt 379 kWh ................................................ $13.18

Incandescent


100 Watt .. 37 kWh .................................................. $5.96 200 Watt .. 71 kWh .................................................. $6.64 325 Watt 115 kWh .................................................. $7.64 450 Watt 158 kWh .................................................. $8.58

Note: The rating of the lamps in lumens is for identification and shall approximate the manufacturer's standard rating.




(C)


















(C)

(C)

(C)

(C) (C)


















(C)

(C)

(C)

(C) (C)





MERCURY VAPOR STREET AND HIGHWAY LIGHTING SERVICE SCHEDULE 71

AVAILABILITY

Available only to present Customers for installations now being served prior to August 26, 1978. This Schedule applies to lighting service sold for the lighting of public streets, public highways, and other public outdoor areas in municipalities, governmental units, and unincorporated communities where such service can be supplied from the existing general distribution system.

This Schedule is also applicable within private property which is open to the general public such as private walkways, streets, and roads when the property and buildings are under common ownership and when supply from the Company's distribution system is directly available and when lighting service is contracted for by the owner thereof.

MONTHLY RATE


Underground Supply Metal Pole

Nominal Lamp Size

Low Mounting

100 Watts 175 Watts

High Mounting

400 Watts

4,000 .. 45 kWh .................................................. $9.75 8,150 .. 74 kWh ................................................ $11.71

21,500 162 kWh ................................................ $23.17

All lamps are lighted from dusk to dawn every night or for approximately 4,200 hours per annum











(C)

(C)

(C)

(C)





MERCURY VAPOR STREET AND HIGHWAY LIGHTING SERVICE SCHEDULE 71

AVAILABILITY

Available only to present Customers for installations now being served prior to August 26, 1978. This Schedule applies to lighting service sold for the lighting of public streets, public highways, and other public outdoor areas in municipalities, governmental units, and unincorporated communities where such service can be supplied from the existing general distribution system.

This Schedule is also applicable within private property which is open to the general public such as private walkways, streets, and roads when the property and buildings are under common ownership and when supply from the Company's distribution system is directly available and when lighting service is contracted for by the owner thereof.

MONTHLY RATE


Underground Supply Metal Pole

Nominal Lamp Size

Low Mounting

100 Watts 175 Watts

High Mounting

400 Watts

4,000 .. 45 kWh .................................................. $9.75 8,150 .. 74 kWh ................................................ $11.71

21,500 162 kWh ................................................ $23.17

All lamps are lighted from dusk to dawn every night or for approximately 4,200 hours per annum











(C)

(C)

(C)

(C)





MONTHLY RATES


Demand Charge (kW)

Firm Standby Power

ALTERNATIVE GENERATION RIDER SCHEDULE 86 (Continued)

First Block kilowatts (0 to 1 00) .................................................... $0.264 per kilowatt Second Block kilowatts (Over 100) ............................................ $0.222 per kilowatt

Interruptible Standby Power First Block kilowatts (0 to 1 00) .................................................... $0.254 per kilowatt Second Block kilowatts (Over 100) ............................................ $0.212 per kilowatt

Maintenance Power All kilowatts ................................................................................. $0.212 per kilowatt




This charge shall apply to an individual connection with a total fifteen-minute kilowatt demand over 300 kilowatts. Prices listed above per reactive kilovolt-ampere of Customer's Reactive Kilovolt-Ampere Demand in excess of 35% of Customer's Power Billing Demand.


Energy Charge (kWh)

All kilowatt-hours ......................................................................... $0.00116 per kilowatt-hour


$X.XXXXX per kW








(C)

(C)

(C)





MONTHLY RATES


Demand Charge (kW)

Firm Standby Power


First Block kilowatts (0 to 1 00) .................................................... $0.264 per kilowatt Second Block kilowatts (Over 100) ............................................ $0.222 per kilowatt

Interruptible Standby Power First Block kilowatts (0 to 1 00) .................................................... $0.254 per kilowatt Second Block kilowatts (Over 100) ............................................ $0.212 per kilowatt

Maintenance Power All kilowatts ................................................................................. $0.212 per kilowatt




This charge shall apply to an individual connection with a total fifteen-minute kilowatt demand over 300 kilowatts. Prices listed above per reactive kilovolt-ampere of Customer's Reactive Kilovolt-Ampere Demand in excess of 35% of Customer's Power Billing Demand.


Energy Charge (kWh)

All kilowatt-hours ......................................................................... $0.00116 per kilowatt-hour


$X.XXXXX per kW








(C)

(C)

(C)











For service at less than 1,000 volts, multiplying Customers' on peak metered energy by 1.09333 and off-peak metered energy by 1.04808 produces the generation energy that must be delivered to the West Penn system. For service between 1,000 and 15,000 volts, the multipliers are 1.07447 and 1.04325, for service between 15,000 and 100,000 volts, the multipliers are 1.05091 and 1.04128 and for service at greater than 100,000 volts, the multipliers are 1.02354 and 1.01879 respectively.

Late Payment Charge





(C)

(C) (C) (C)











For service at less than 1,000 volts, multiplying Customers' on peak metered energy by 1.09333 and off-peak metered energy by 1.04808 produces the generation energy that must be delivered to the West Penn system. For service between 1,000 and 15,000 volts, the multipliers are 1.07447 and 1.04325, for service between 15,000 and 100,000 volts, the multipliers are 1.05091 and 1.04128 and for service at greater than 100,000 volts, the multipliers are 1.02354 and 1.01879 respectively.

Late Payment Charge





(C)

(C) (C) (C)






(C)

the Transmission Service Charge Rider is hereby canceled.








(C)






Issued _____ _



__ Revised Page No. 37-2 Canceling __ Page No. 37-2

(THIS PAGE INTENTIONALLY LEFT BLANK)

Reserved for Future Use


(C)



Issued _____ _



__ Revised Page No. 37-2 Canceling __ Page No. 37-2




(C)






DEFINITIONS

Certain words, when used in the Rules and Regulations, and Agreements of West Penn Power Company, shall have the following meanings:






"Company Charges": The sum of distribution charges, non-bypassable surcharges and riders, and, if Default Service is taken from Company, Generation Charges for the provision of Default Service. (C)

"Customer": The Pennsylvania State University. An EGS may act as an agent for the Customer upon written authorization to the Company, which authorization may be part of the notice of EGS selection. The agency relationship established between an EGS and the Customer does not impair the Customer's rights and continued receipt of important consumer protections contained in the Customer Choice and Competition Act relating to the EDC/Customer relationship.



















(C)

(C)

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(C)

"Industrial Customer Class": Tariff No. 37 and Tariff No. 39 Rate Schedules 30 (large), 40, 41, 44, 46, and M. ~

"Kilovolt-ampere (kVA)": 1 ,000 volt-amperes (C)

"Kilowatt-hour (kWh)": 1 ,000 watts for one (1) hour (C)

"Non-Market Based Services Transmission Charge": FERC-approved Network Integration Transmission Service, PJM Regional Transmission Enhancement Plan charges, PJM Expansion Cost Recovery, Non-Firm Pointto-Point Credits, as well as any other FERC-approved PJM transmission charges that will not be reconciled through the Company's Price To Compare Default Service Rate Rider. (C)




"Service": Any regulated supply of electricity by the Company, or provision to supply electricity, or any work or material furnished, or any obligation performed by the Company under its Rules and Regulations or Rate Schedules. Regulated charges for Service are published in this Tariff, including Distribution and Generation Charges, surcharges, and riders. Charges for Service exclude Generation Charges when Customer receives

(C)

Cornpetitive Energy Supply. (C)

(C)




1. Continuity of Service





The Company will use reasonable diligence in attempting to provide continuous service. The Company shall not be liable for any loss, cost, damage, or expense to Customer caused by any failure to supply electricity according to the terms of a contract, or by any interruption of the supply of electricity, reversal of the service, variation in voltage or by any other failure, when such failures are due to acts of God, public enemies, accidents, strikes, riots, wars, extraordinary repairs, operating necessities, orders of Court or other Governmental authority, or to any other acts or conditions reasonably beyond the control of the Cornpany.

In the event of an emergency threatening the integrity of its system, the Cornpany may without liability interrupt, curtail, or suspend service to Customer.

Additional Limitations on Liability in Connection with Direct Access. Other than its duty to deliver electric energy and capacity, the Company shall have no duty or liability to Custorner receiving Competitive Energy Supply arising out of or related to a contract or other relationship between Customer and an EGS.

The Company shall implement Customer selection of an EGS consistent with applicable rules of the Commission and shall have no liability to Customer receiving Competitive Energy Supply arising out of or related to switching EGSs, unless the Company is negligent in switching or failing to switch Customer.










3. Billing

(a) Billing Errors. When the Company provides billing for Competitive Energy Supply on behalf of an EGS, Company shall not be responsible for billing errors resulting from incorrect price information received from an EGS.

(b) Billing Options. The Company will always bill the Customer for the Company's distribution service charges, associated surcharges and riders, and Generation Charges (when the Company is providing Default Service). Customer may request: (1) that its EGS provide a separate bill only for the Competitive Energy Supply; or (2) require its EGS to appoint the Company as the EGS' billing agent. When Company provides billing for the EGS, the Company will bill the Customer not only for Company Charges, but also for the Competitive Energy Supply. (C)

4. Taxes on Contributions in Aid of Construction (CIAC) and Customer Advances (CAC)

Any CIAC, CAC or other like amounts received from the Customer which shall constitute taxable income as defined by the Internal Revenue Service will include a component to pay the state and federal income taxes associated with the CIAC or CAC.

5. Individualized Company Facilities and Services:

The Company may, at its sole discretion and upon Customer's request, furnish special, substitute, or additional facilities or services. When the Company provides facilities or services not normally supplied, or when the estimated or actual cost of such individualized, substitute, or additional facilities or services exceeds the estimated costs of the standard facilities or services that normally would be supplied by the Company without special charge, the Company may require special agreements and may establish minimum charges and facilities charges. At a minimum, rates or contract provisions shall be established on a case by case basis and shall be sufficient to recover all appropriate incremental costs of the service and a contribution to fixed costs.

The Company may modify or discontinue the provisions of this rule at any time, subject to any orders of the Pennsylvania Public Utility Commission. Unless otherwise ordered by the Pennsylvania Public Utility Commission, any contracts in effect prior to any such modification or discontinuance of the rule shall remain in effect under the existing term and conditions specified in the contract.

6. Changing Electric Generation Supplier

Company shall change Customer's Electric Generation Supplier only upon receipt of electronic notification from the chosen Electric Generation Supplier in accordance with the Pa. P.U.C. Rules and Regulations as described in the Final Orders on Standards for Electronic Data Transfer and Exchange Electric Distribution Companies and Electric Generation Suppliers, Docket No. M-00960890F0015 and on Establishing Standards for Changing a Customer's Electric Supplier, Docket No. L-00970121. Company will assign an energy flow start date for Customer's choice of Electric Generation Supplier received after January 15, 1999 to be equal to Customer's first normal meter reading date no sooner than 15 days after the date of processing. Changes in Customer's Electric Generation Supplier shall only be effective with Customer's normal meter reading date. (C)








(C)



Issued _____ _ Effective June 1,2013




$X.xX per kVA



The Company will provide and charge for Default Service Support to Customers taking Delivery Service in accordance with the provisions of the Default Service Support Rider, which charge shall apply to all kVA billed under this Tariff.



The Company will provide and charge for Solar Photovoltaic Requirements to Customers taking Delivery Service in accordance with the provisions of the Solar Photovoltaic Requirements Charge Rider, which charge shall apply to all kWh billed under this Tariff.




For service between 1,000 and 15,000 volts, multiplying Customers' on peak metered energy by 1.07447 and off-peak metered energy by 1.04325 produces the generation energy that must be delivered to the West Penn system.



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(C)

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(C)






Issued _____ _







(C)

Statement No.2 BEFORE THE PENNSYLVANIA …...2011/12/20 · PENNSYLVANIA ELECTRIC COMPANY DOCKET...

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Transcript of Statement No.2 BEFORE THE PENNSYLVANIA …...2011/12/20 · PENNSYLVANIA ELECTRIC COMPANY DOCKET...