Duquesne Light contends the Settlement was achieved after an extensive investigation of the operations and finances. There was informal discovery, and the Company’s Company responded to approximately 500 formal discovery requests. Five rounds of testimony were filed, including the direct testimony, and other direct testimony, Company’s parties’ rebuttal testimony, surrebuttal testimony and rejoinder testimony. Duquesne Light St. in Support, p. 2. The Company submits there is no opposition to the Settlement except for NRG challenge terms regarding Rider No. 18 should be included in any approval by Companies’ “that the Commission of a The Company urges the Settlement is just and reasonable, Id. settlement.” supported by substantial evidence and should be approved without modification. Id. 1. Revenue Requirement Duquesne asserts the proposed revenue increase of $49 million is reasonable and supported by substantial evidence for the following reasons. The distribution revenue increase of $48 million is approximately 66% of the proposed revenue increase of $72.732 million set forth in the rebuttal testimony. Company’s As explained by the Vice President of Strategy and Company’s External Affairs, Mr. David Bordo, the Company has undertaken considerable efforts to control costs, improve customer service and continue to provide highly reliable service to customers since the last base rate proceeding in 2010. (Duquesne Light St. Company’s No. 1, p. the costs of providing electric 4.) … Company’s distribution service have increased in many areas, including increased investment in facilities to maintain high levels of service and reliability, increased operation and maintenance (“O&M”) expenses related to vegetation management and increased costs for the cyber security initiatives. (Duquesne Light St. No. Company’s 2, pp. 4-5; Initial Brief, p. 21) Absent rate relief, Duquesne Light projected an overall return on rate base of approximately 5.67% for the fully projected future test year Duquesne Light Exh. No. 2, Schedule C-1, (“FPFTY”). (See
Duquesne Light contends the Settlement was achieved after an extensive investigation of the Company’s operations and finances. There was informal discovery, and the Company responded to approximately 500 formal discovery requests. Five rounds of testimony were filed, including the Company’s direct testimony, and other parties’ direct testimony, rebuttal testimony, surrebuttal testimony and rejoinder testimony. Duquesne Light St. in Support, p. 2. The Company submits there is no opposition to the Settlement except for NRG Companies’ challenge “that terms regarding Rider No. 18 should be included in any approval by the Commission of a settlement.” Id. The Company urges the Settlement is just and reasonable, supported by substantial evidence and should be approved without modification. Id. 1. Revenue Requirement Duquesne asserts the proposed revenue increase of $49 million is reasonable and supported by substantial evidence for the following reasons. The distribution revenue increase of $48 million is approximately 66% of the proposed revenue increase of $72.732 million set forth in the Company’s rebuttal testimony. As explained by the Company’s Vice President of Strategy and External Affairs, Mr. David Bordo, the Company has undertaken considerable efforts to control costs, improve customer service and continue to provide highly reliable service to customers since the Company’s last base rate proceeding in 2010. (Duquesne Light St. No. 1, p. 4.) … the Company’s costs of providing electric distribution service have increased in many areas, including increased investment in facilities to maintain high levels of service and reliability, increased operation and maintenance (“O&M”) expenses related to vegetation management and increased costs for the Company’s cyber security initiatives. (Duquesne Light St. No. 2, pp. 4-5; Initial Brief, p. 21) Absent rate relief, Duquesne Light projected an overall return on rate base of approximately 5.67% for the fully projected future test year (“FPFTY”). (See Duquesne Light Exh. No. 2, Schedule C-1,