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STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully...

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Agenda Date: 5/23/12 Agenda Item: 2E STATE OF NEW JERSEY Board of Public Utilities 44 South Clinton Avenue, 9th Floor Post Office Box 350 Trenton, New Jersey 08625-0350 www.ni.Qov/bpu/ ENERGY DECISION AND ORDER ADOPTING INITIAL DECISION APPROVING STIPULATION FOR FINAL BGSS RATES ) ) ) I ) ) ) IN THE MATTER OF THE PETITION OF SOUTH JERSEY GAS COMPANY TO REDUCE THE LEVEL OF ITS BASIC GAS SUPPLY SERVICE CHARGE FOR BGSS YEAR ENDING SEPTEMBER 30,2012 DOCKET NO. GR11060335 Ira G. Megdal, Esq. for petitioner South Jersey Gas Company (Cozen O'Connor) Stefanie A. Brand, Director, New Jersey Division of Rate Counsel BY THE BOARD: Per the generic Order of the New Jersey Board of Public Utilities ("Board") dated January 6, 2003, in Docket No. GX01050304 ("January BGSS Order"), each of New Jersey's four gas distribution companies ("GDC") submits to the Board by June 1 its annual Basic Gas Supply Service ("BGSS") gas cost filing for the BGSS year beginning October 1. In addition, the January BGSS Order authorizes each GDC to self-implement up to a 5% BGSS increase effective December 1 of the current year and February 1 of the following year with one month's advance notice to the Board and the Division of Rate Counsel ("Rate Counsel"). By this Order, the Board considers the recommendation to finalize BGSS rates previously approved on a provisional basis. There will be no change in South Jersey Gas Company ("SJG" or "Company") BGSS rates at this time as a result of a Board Decision in this matter. BACKGROUND In accordance with the above noted Order, on June 1, 2011, the Company filed with the Board its annual petition to establish new Periodic BGSS ("BGSS-P") rates for the period October 1, 2011, through September 30, 2012. The Company's petition sought a decrease to its BGSS-P charge from its then current charge of $0.6887 per therm including taxes to $0.6493 per therm including taxes, a reduction of $0.0394 per therm (including taxes) to be effective October 1, 2012. If approved, this change would decrease the monthly bill of a residential heating customer utilizing 100 therms of gas during a month by $3.94 or 2.9%. The petition also requested the following revisions: 1) setting the gas cost portion of the Company's 0-2 charge for Rate Schedule Large Volume Service ("LVS") at $13.4544 per Mcf
Transcript
Page 1: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

Agenda Date: 5/23/12Agenda Item: 2E

STATE OF NEW JERSEYBoard of Public Utilities

44 South Clinton Avenue, 9th FloorPost Office Box 350

Trenton, New Jersey 08625-0350www.ni.Qov/bpu/

ENERGY

DECISION AND ORDERADOPTING INITIAL DECISIONAPPROVING STIPULATIONFOR FINAL BGSS RATES

))) I

)))

IN THE MATTER OF THE PETITION OFSOUTH JERSEY GAS COMPANY TO REDUCETHE LEVEL OF ITS BASIC GAS SUPPLYSERVICE CHARGE FOR BGSS YEAR ENDINGSEPTEMBER 30,2012

DOCKET NO. GR11060335

Ira G. Megdal, Esq. for petitioner South Jersey Gas Company (Cozen O'Connor)Stefanie A. Brand, Director, New Jersey Division of Rate Counsel

BY THE BOARD:

Per the generic Order of the New Jersey Board of Public Utilities ("Board") dated January 6,2003, in Docket No. GX01050304 ("January BGSS Order"), each of New Jersey's four gasdistribution companies ("GDC") submits to the Board by June 1 its annual Basic Gas SupplyService ("BGSS") gas cost filing for the BGSS year beginning October 1. In addition, theJanuary BGSS Order authorizes each GDC to self-implement up to a 5% BGSS increaseeffective December 1 of the current year and February 1 of the following year with one month'sadvance notice to the Board and the Division of Rate Counsel ("Rate Counsel").

By this Order, the Board considers the recommendation to finalize BGSS rates previouslyapproved on a provisional basis. There will be no change in South Jersey Gas Company("SJG" or "Company") BGSS rates at this time as a result of a Board Decision in this matter.

BACKGROUND

In accordance with the above noted Order, on June 1, 2011, the Company filed with the Boardits annual petition to establish new Periodic BGSS ("BGSS-P") rates for the period October 1,2011, through September 30, 2012. The Company's petition sought a decrease to its BGSS-Pcharge from its then current charge of $0.6887 per therm including taxes to $0.6493 per thermincluding taxes, a reduction of $0.0394 per therm (including taxes) to be effective October 1,2012. If approved, this change would decrease the monthly bill of a residential heatingcustomer utilizing 100 therms of gas during a month by $3.94 or 2.9%.

The petition also requested the following revisions: 1) setting the gas cost portion of theCompany's 0-2 charge for Rate Schedule Large Volume Service ("LVS") at $13.4544 per Mcf

Page 2: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

(including taxes); 2) setting the gas cost portion of the Firm 0-2 charges at $15.2970 per Mcf(including taxes); 3) setting the Limited Firm 0-2 charges at $6.7272 per Mcf (including taxes)for Rate Schedule Electric Generation Service -Large Volume ("EGS-L V"); 3) setting the gascost portion of the 0-2 charge at $6.7272 per Mcf (including taxes) for Rate Schedule FirmElectric Service ("FES"); and 4) setting the monthly BGSS non-commodity rate applicable toRate Schedules GSG, GSG-L V, Electric Generation Service ("EGS"), L VS and EGS-L V at$0.1129 per therm (including taxes). These rate changes, if approved, would result in a $10.6(including taxes) million decrease in annual revenues to SJG.

After publication of notice in newspapers of general circulation in SJG's service territory, twopublic hearings in this matter were held on August 10, 2011, in Voorhees, New Jersey. Thepublic notice advised customers that the Board's January BGSS Order granted the Companythe discretion to self-implement an increase in its BGSS rates to be effective December 1, 2011and/or February 1, 2012, after prior notice to the Board and Rate Counsel, with each increasecapped at 5% of the total residential bill. The public notice also stated that the Company ispermitted to decrease its BGSS rate at any time upon two weeks notice to the Board and RateCounsel. No members of the public appeared to provide comments related to the Company's

filling.

On August 30, 2011, following review by and subsequent discussions among representatives ofSJG, Rate Counsel, and Board Staff, (collectively, "Parties"), the Parties executed a stipulationagreeing to set the requested BGSS rates on a provisional basis ("Provisional Rate Stipulation")with the rates subject to refund with interest on any net over recovered BGSS balance. Theprovisional rates reduced the Company's annual revenue request by $10.6 million. TheProvisional Rate Stipulation addressed establishing new provisional BGSS rates, recognizingthat additional time was needed for a complete review of the Cornpany's 2011 BGSS filing.

By Order dated September 22, 2011, the Board approved the Provisional Rates Stipulationwhich set the following rates: 1) a decrease in SJG's BGSS rate from $0.6887 per therm to$0.6493 per therm; 2) the gas cost portion of the 0-2 charge for Rate Schedule LVS at$13.4544 per Mcf (including taxes); 3) the Firm 0-2 charges at $15.2970 per Mcf (includingtaxes); 4) the gas cost portion of the Limited Firm 0-2 charges at $6.7272 per Mcf (includingtaxes) for Rate Schedule EGS-L V; 5) the gas cost portion of the 0-2 charge at $6.7272 per Mcf(including taxes) for Rate Schedule FES; and 6) the monthly BGSS non-commodity rateapplicable to Rate Schedules GSG, GSG-L V, EGS-L VS and EGS-L V at $0.1129 per therm(including taxes). Any net over-recovery of the BGSS balance at the end of the BGSS periodwas subject to refund with interest.

The matter was transferred to the Office of Administrative Law, and assigned to AdministrativeLaw Judge Gail M. Cookson.

Following further review and discussions, the Parties entered into the attached Stipulation forFinal BGSS Rates ("Stipulation") dated May 3, 2012 that provides for the Company's previouslyapproved provisional BGSS rates to be made final and permanent. Additionally, the Companycommits to continuing to provide the Parties with monthly reports in the form of Exhibits A and Bto the Stipulation, containing updated information on the BGSS NYMEX and on the per thermnet cost of gas.

On May 4, 2012, Administrative Law Judge Gail M. Cookson issued her Initial Decisionadopting the Stipulation and finding that the Parties have voluntarily agreed to the Stipulation,and that the Stipulation fully disposes of all issues in controversy and is consistent with the law.

Page 3: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

DISSUSSION AND FINDINGS

The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDSthat subject. to the terms and conditions set forth below, the Initial Decision and Stipulation arereasonable, in the public interest and in accordance with the law. Accordingly, the BoardHEREBY ADOPTS the Initial Decision and Stipulation in their entirety, and HEREBYINCORPORATES their terms and conditions as though fully set forth herein.

Accordingly, the Board HEREBY DIRECTS that the decrease in the Company's after-tax pertherm BGSS-P rate to $0.6493 including all applicable taxes be made final. Furthermore, theBoard HEREBY APPROVES the following after tax per therm rates on a final basis: 1) the gascost portion of the 0-2 charge for Rate Schedule LVS at $13.4544 per Mcf; 2) the Firm D-2charges at $15.2970 per Mcf ,and the gas cost portion of the Limited Firm 0-2 charges at$6.7272 per Mcf for Rate Schedule EGS-L V; 3) the gas cost portion the D-2 charge at $6.7272per Mcf for Rate Schedule FES; and 4) the monthly BGSS non-commodity rate applicable toRate Schedules GSG, GSG-L V, EGS-L VS and EGS-L V at $0.1129 per thermo

The Company is HEREBY DIRECTED to file the appropriate tariff sheets conforming to theterms and conditions of this Order within seven (7) business days from the date of this Order.

This Order shall be effective June 4, 2012.

The Company's BGSS rates remain subject to audit. This Decision and Order shall notpreclude nor prohibit the Board from taking any actions determined to be appropriate as a resultof any such audit.

BOARD OF PUBLIC UTiliTIESBY:

ROBERT M.

PRESIDENT/ \'I

LANNE M. FOX/' OMMISSIONER

l~EPH L. FIORDALISO

/luMMISSIONER'/

f) , U~N~~~~~~MISSIONER

NICHOLAS ASSELTACOMMISSIONER

I HEREBY CERTIFY III. the wlllli"ATTEST: ~ ~

KRISTI lZZOSECRETARY

2 DOCKET NO. GR11060335

Page 4: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

I/M/O The Annual Filing of South Jersey Gas CompanyTo Reduce the Level of its Basic Gas Supply Charge

BPU Docket GR11 060335

-Ira G. Megdal, Esq.Cozen O'ConnorLiberty View, Suite 300457 Haddonfield RoadCherry Hill, NJ 08002ime dal cozen.comDaniel J. Bitonti, Esq.Cozen O'ConnorLibertyView, Suite 300457 Haddonfield, RoadCherry Hill, NJ 08002dbitonti cozen.comRenee Farmer, ManagerRevenue RequirementsSouth Jersey Gas CompanyOne South Jersey Plaza, Rte. 54Folsom, NJ [email protected]

Jerome May, DirectorNJ Board of Public Utilities44 South Clinton AvenueP.O. Box 350Trenton, NJ 08625'erome.ma b u.state.n'.usShelia Delucia, ChiefNJ Board of Public Utilities44 South Clinton AvenueP.O. Box 350Trenton, NJ 08625shelia,delucia b u.state,n'.us

Beverly TyndellBoard of Public Utilities44 South Clinton AvenueP.O. Box 350Trenton, NJ 08625beverlv. [email protected]

Stefanie A. Brand, DirectorDivision of Rate Counsel31 Clinton Street, 11 th FI

P.O. Box 46005Newark, NJ 07101sbrand r a.state.n'.usFelicia Thomas-Friel, Esq.Division of Rate Counsel31 Clinton Street, 11th FIP.O. Box 46005Newark, NJ 07101Felicia, [email protected] .usHenry M. Ogden, Esq.Division of Rate Counsel31 Clinton Street, 11th FIP.O. Box 56005Newark, NJ 07101henry ,[email protected]

Andrea CraneThe Columbia Group, Inc.90 Grove Street, Suite 211Ridgefield, CT [email protected]

Babette Tenzer, DAGDepartment of Law & Public Safety124 Halsey Street, 5th FloorP.O. Box 45029Newark, NJ 07101Babette. [email protected]

Veronica Beke, DAGDepartment of Law & Public Safety124 Halsey Street, 5th FloorP.O. Box 45029Newark, NJ 07101Veronica. bekeCWdol.IDS .state.ni .us

Alex Moreau, DAGDepartment of Law & Public Safety124 Halsey Street, 5th FloorP.O. Box 45029Newark, NJ 07101Alex.moreau dol.1

Rosalie RomeoBoard of Public Utilities44 S. Clinton AvenueP.O. Box 350Trenton, NJ [email protected]

Kristi Izzo, SecretaryBoard of Public Utilities44 South Clinton AvenueP.O. Box 350Trenton, NJ 08625

~risti.izz?@_bpu.state.nj.us IJames W. Glassen I

I

Division of Rate Counsel31 Clinton Street, 11th FIP.O. Box 56005Newark. NJ 07101James. [email protected]

3 DOCKET NO. GR11060335

Page 5: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

State of New JerseyOFFICE OF ADMINISTRATIVE LAW

!N!lli~DECISIONSETTLE:MENT

IIMIO PETITION OF SOUTH JERSEY GAS

COMPANY TO REDUCE THE LEVEL OF

ITS BASE GAS SUPPLY SERVICE.

OAL DKT. NO. PUC 12270-11

AGENCY DKT. NO. GR11060335

IIMIO PETITION OF SOUTH JERSEY GAS

COMPANY TO CHANGE THE LEVEL OF

ITS CONSERVATION INCENTIVE PROGRAM

(CIP) FOR THE CIP YEAR ENDING SEPTEMBER

30,2012.

OAL DKT. NO. PUC 12271-11

AGENCY DKT. NO. GR11060337

Ira G. Megdal, Esq., and Daniel J. Bitonit, Esq., for petitioner South Jersey Gas

Company (Cozen O'Connor, attorneys)

Alex Moreau and Veronica Beke, Deputy Attorneys; General, for the Staff of the

Board of Public Utilities (Jeffrey S. Chiesa, Attorney General of New Jersey,

attorney)

Felicia Thomas-Friel, Deputy Rate Counsel, and Hen~' M. Ogden and James W.

Glassen, Assistant Deputies Rate Counsel, for Division of Rate Counsel

(Stefanie A. Brand, Director, attorney)

Record Closed: May 3,2012 Decided: May 4, 2012

BEFORE GAIL M. COOKSON, ALJ:

New Jersey is an Equal Opportunity Employer

Page 6: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

OAL DKT. NOS. PUG 12270-11 AND PUG 12271-11

On June 1, 2011, South Jersey Gas Company (Company) filed a petition with the

Board of Public Utilities (BPU) for approval of its annual Basic Gas Supply Service (BGSS)

rates and its annual Conservation Incentive Program (CIP) rates for the period October 1,

2011, through September 30, 2012. The Company provided public notice of its filing and

the opportunity for the public to be heard on the level of these clauses was held on August

10, 2011, in Voorhees, New Jersey. Both petitions proposed reductions in the rates of

service relating to these clauses of the Company's tariff. By Orders signed on September

22, 2011, the BPU approved Stipulations for Provisional Rates 1=or both the BGSS and CIP

rates. The files were transmitted to the Office of Administrative Law (GAL), on or before

October 11, 2011, for consolidation and hearing as a contested case pursuant to N.J.S.A.

52:14B-1 to-15 and N.J.S.A. 52:14F-1 to- 13. The cases were assigned to the

undersigned on October 27, 2011

A prehearing conference was convened telephonically on November 29,2011. The

hearings for the presentation of the pre-filed direct testimony and cross-examination of the

witnesses were set down for April 4 and 5, 2012. Over the COIJrSe of several case status

telephonic conferences, the parties reported during a scheduled telephone status call that

they were in the process of resolving the issues in dispute. Accordingly, the hearings were

adjourned to April 27, 2012. Prior to the conduct of those hearings, the parties reported

further progress on settlement but the need to conduct some additional financial due

diligence.

On May 3, 2012, I received electronically two fully-executed Stipulations of all

parties to this matter -one for the BGSS and one for the C;IP -with a request that I

enter an Initial Decision Settlement and transmit same to the Board. These agreements

more completely sets forth the terms and conditions of the settlement of all issues

raised by the filing of the Company but in sum, accept the provisional BGSS and CIP

rates as the final rates.

have reviewed the record and terms of the Stipulations and FIND

2

Page 7: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

OAL DKT. NOS. PUG 12270-11 AND PUG 12271-11

1. The parties have voluntarily agreed to the settlement as evidenced by the

signatures of the parties or their representatives.

2. The settlement fully disposes of all issues in controversy and is consistent

with law.

I CONCLUDE that the Stipulations meet the requirements of ~C. 1:1-19.1

and therefore, it is ORDERED that the matter be deemed dismissed with prejudice and

that these proceedings be and are hereby concluded

hereby FILE my initial decision with the BOARD OF PUBLIC UTILITIES for

consideration

This recommended decision may be adopted, mo(jified or rejected by the

BOARD OF PUBLIC UTilITIES, which by law is authorized to make a final decision in

this matter. If the Board of Public Utilities does not adopt, modify or reject this decision

within forty-five (45) days and unless such time limit is otherwise extended, this

recommended decision shall become a final decision in accordance with N.J.S.A.

52:148-10

May 4.2012DATE GAIL M. COOKSON, ALJ

Date Received at Agency:

Date Mailed to Parties

id

3

Page 8: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

~JCOZEN

O/CONNOR~A PENNSYLVANIA PROFESSIONAL CORPORATION

LlBERTYVIEW 457 HADDON FIELD ROAD SUITE 300 CHERRY !;ILL. NJ 08002

856.910.5000 1.800.989.0499 856.910.5075 FAX www.cozen.com

THOMAS McKAY, IIIATTORNEY RESPONSIBLE

FOR NJ PRACTICE

Daniel J. BitontiDirect Phone [email protected]

May 3, 2012

VIA E-MAIL (ILA.DHABLIW [email protected])

Honorable Gail M. Cookson, A.L.J.Office of Administrative Law33 Washington StreetNewark, NJ 07102

Re: In the Matter of the Petition of South Jersey Gas Company to Reduce the Levelof Its Basic Gas Supply Service Charge (BGSS)

BPU Docket No. GRll060335; OAL Docket No. PUC 12270-2011N

Dear Judge Cookson:

Enclosed please find the Stipulation of Settlement in the above-referenced matter executed byall the parties. We transmit to you for your review and look forward to the issuance of an InitialDecision. If we can be of any assistance in this process, please advise.

Respectfully,

COZEN O'CONNOR, PC

~..~'2...e--~~:~~;ZZ::-'BY: DANIELl. BITONTI

Dlli/lbsEnclosure

Electronic Service Listcc:

CHERRY_HILL\668509\1285335.000

Page 9: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

STATE OF NEW JERSEYOFFICE OF ADMINISTRATIVE LAW

BOARD OF PUBLIC UTILInES

IN THE MATTER OF THE PETITIONOF SOUTH JERSEY GAS COMPANYTO REDUCE ~ LEVEL OF ITS BASICGAS SUPPLY SERVICE CHARGE

.: BPU DOCKET NO. GRIIO60335: OAL DKT. NO. PUC 12270-2011N..

: STIPULATION FOR FINAL BGSS: RATES

.

.

APPEARANC£S:

Ira G. Megdal, Esquire and Daniel J. Bitonti, Esquire, (Cozen O'Connof, attorneys)fOf South Jersey Gas Company ("Petitioner")

Felicia Thomas-Friel, Esq., Deputy Rate Counsel and Henry M. Ogden, Esq. andJames W. Glassen, Assistant Deputies Rate Counsel, on behalf of the New Jersey Division ofRate Counsel ("Rate Counsel") (Stefanie A. Brand, Director)

Veronica Beke and Alex Moreau, Deputy Attorneys General, on behalf of the Staff ofthe Board of Public Utilities ("Staff") (Jeffrey S. Chiesa, Attorney General of the State of NewJersey).

TO: THE HONORABLE BOARD OF PUBLIC UTILITIES:

I. INTRODUCTION

1 This Stipulation is intended to make final the provisional Basic Gas Supply Service

("BGSS") rates previously approved by the Board in GRIIO60335 ("this Proceeding").

II. PROCEDURAL mSTORY

On June 1, 2011, South Jersey Gas Company ("South Jersey", "the Company") filed2.

a Petition ("Petition") for the period October 1, 2011 through September 30, 2012 ("BGSS

year") in Docket No. GRII 060335. That Petition requested that the Board of Public Utilities

("Board") approve a reduction in the level of the company's periodic Basic Gas Supply Service

CHERRY _HILL\665126\1 285335.000

Page 10: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

Charge ("BGSS") from its then current level of $0.6887 per thenn (including taxes) to $0.6493

per therm (including taxes), a reduction of $0.0394 per thermo A typical residential heating

customer using 100 therms per month would see a $3.94 or 2.9% decrease in their monthly bill.

The Petition also requested the Board to: (1) authorize that the gas cost portion of the

D-2 charge for the Rate Schedule L VS be set at $13.4544 per Mcf(including taxes); (2)

authorize that the gas portion of the Firm and Limited Finn 0-2 charges for Rate Schedule

EGS-LV be set at $15.2970 per Mcf, and $6.7272 per Mcf(including taxes), respectively; (3)

authorize that the gas portion of the D-2 charge for Rate Schedule FES be set at $6.7272 per

Mcf(including taxes); and (4) authorize the montWy non-commodity rate applicable to Rate

Schedules GSG, GSG-L V, EGS, L VS and EGS-L V be set at $0.1129 per thenn (including

taxes). These changes would result in a decrease in annual revenues of$10.6 million including

taxes.

4.

Two duly noticed public hearings for the Petition were held on August 10,2011, in

Voorhees, New Jersey.The public hearings were noticed in newspapers of general circulation

within South Jersey's service territory. No members of the public appeared to provide

comments relating to the Company's request to decrease its Periodic BOSS rates.

5.

By Board Order and Decision dated September 22,2011, the Board approved, on a

provisional basis, subject to refund with interest on any net over recovery, a provisional

decrease in South Jersey's BGSS rate to $0.6493 per thenn (including taxes) from $0.6887 per

thenn (including taxes). Additionally, in December 2011, the Company provided its Periodic

BGSS customers a $20 million dollar bill credit. The average residential heating customer had a

credit of $63 posted to their account.

-2-

CHERRY_HILL\665126\1 285335.000

Page 11: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

6.

On October 11,2011, the instant matter was transmitted to the Office of

Administrative Law and subsequently assigned to the Honorable Gail M. Cookson.

Administrative Law Judge (OAL Docket Number PUC 12270-2011N).

7. All discovery propounded upon Petitioner has been answered.

III. STIPULATED TERMS

8.

South Jersey, Board Staff and Rate Counsel (collectively the "Parties"), the only

parties to these proceedings, have discussed certain matters at issue in this proceeding. As a

result of those discussions, the Parties have determined that it would be reasonable and in the

public interest to make final the provisional BOSS rates previously approved in the September

22, 2011 Order.

9. The Parties accordingly STIPULATE AND AGREE that the BGSS rates

contained in the stipulation approved by the Board's Decision and Order approving Stipulation

for Provisional BOSS Rates in this docket, dated September 22,2011, should be made final.

There will be no change in South Jersey's rates as a result of this stipulation.

10. The Company agrees to continue to provide electronically to the Parties in this

proceeding, on a monthly basis, the following updated infonnation: 1) the BGSS NYMEX

Update Report (also known as S-SChart 1), attached hereto as Exhibit A; and 2) a monthly

report of unitized credits to the BGSS (ISG» Cogeneration» TSG-F» Off System Sales, Capacity

Releases, Gas to Electric and Supplier Refunds) and the associated dollar amounts (attached

hereto as Exhibit B). The chart reflected in Exhibit A is to be completed using information

from the first Friday of the month and submitted to the Parties the following Tuesday. The

chart reflected in Exhibit B is to be submitted to the Parties on approximately the 15th of the

following month.

-3-

CHERRY_HILL\665126\1 285335.000

Page 12: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

11 South Jersey will submit a Compliance Filing incorporating the rates made final

herein within 7 business days of a Board Order approving this Stipulation.

IV. MISCELLANEOUS

12. This Stipulation represents a mutual balancing of interests and, therefore, is

intended to be accepted and approved in its entirety. In the event this Stipulation is not adopted

in its entirety by the Board, then any party hereto is free to pursue its then available legal

remedies with respect to all issues addressed in this Stipulation as though this Stipulation had

not been signed.

13. It is specifically understood and agreed that this Stipulation represents a negotiated

final agreement and has been made exclusively for the purpose of this proceeding. Except as

expressly provided herein, South Jersey, Staff, and Rate Counsel shall not be deemed to have

approved, agreed to, or consented to any principle or methodology underlying or supposed to

underlie any agreement provided herein. Also, all rates are subject to Board audit.

14. The Parties further acknowledge that a Board Order approving this Stipulation will

become effective upon the service of said Board Order, or upon such date after the service

thereof as the Board may specify, in accordance with N.J.S.A. 48:2-40.

-4-

CHERRY_HILL\665126\1 285335.000

Page 13: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

WHEREFORE, the Parties hereto do respectfully submit this Stipulation for review and

issuance of an appropriate Initial Decision as well as a subsequent Board Order approving it in

its entirety, in accordance with the terms hereof, as soon as reasonably possible.

SOUTH JERSEY GAS COMPANY

-~~~Ira G. Meg~, Esq.Cozen O'Connor

By:

-5 -

CIIERRY_HILL\66SI26\I285335.000

Page 14: STATE OF NEW JERSEY - bpu.state.nj.us · DISSUSSION AND FINDINGS The Board, having carefully reviewed the Initial Decision and the Stipulation, HEREBY FINDS that subject. to the terms

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