1807 West Penn Power Company joint petition for settlement and for modification of the 1998 restructuring settlement
West Penn Power Company Joint Petition for Settlement and for Modification of the 1998 Restructuring Settlement [34 Pa.B. 5326] R-00039022 and R-00973981. West Penn Power Company. West Penn Power Company, by its counsel, and on behalf of the joint petitioners, filed a joint petition, set forth as follows, for settlement and for modification of the 1998 restructuring settlement, requesting, inter alia: (1) approval of the terms of the joint petition; (2) direction to West Penn Power Company to file a tariff supplement to become effective on 1 day's notice incorporating the schedule of rates and charges; and (3) approval of certain amendments to West Penn Power Company's 1998 restructuring settlement, consistent with the terms of this joint petition. The joint petition resolves issues relating to the company's stranded cost under-recoveries, by authorizing securitization of the stranded cost under-recovery and extending the stranded cost recovery period and corresponding rate cap period.
Written comments may be filed within 20 days after publication of this notice in the Pennsylvania Bulletin. Comments must be filed with the Secretary of the Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265. Copies of the entire filing are available for full inspection and copying at the Office of the Secretary between 8 a.m. and 4:30 p.m., Monday through Friday.
Petitioner: West Penn Power Company
Through and By Counsel: John F. Povilaitis, Ryan, Russell, Ogden and Seltzer, LLP, Suite 101, 800 North Third Street, Harrisburg, PA 17102-2025.
JAMES J. MCNULTY,
SecretaryPetition of West Penn Power Company for Issuance of a Further Supplement to Its Previous Qualified Rate Orders Under Sections 2808 and 2812 of the Public Utility Code; Doc. No. R-00039022
Application of West Penn Power Company for Approval of its Restructuring Plan under Section 2806 of the Public Utility Code; Doc. No. R-00973981
Joint Petition for Settlement and for Modification of the 1998 Restructuring Settlement
The active parties to the above-captioned proceeding, the Office of Consumer Advocate (''OCA''), the Office of Small Business Advocate (''OSBA''), the West Penn Power Industrial Intervenors (''WPPII'') and West Penn Power Company (''West Penn'' or ''the Company''), all of whom may be referred to in this Joint Petition either in their individual capacities or collectively as the ''Joint Petitioners,'' join in this Joint Petition for Settlement and for Modification of the 1998 Restructuring Settlement (''Joint Petition'') and respectfully request that, following notice to the parties in the 1998 restructuring proceeding at Docket No. R-00973981 and to customers, as well as an opportunity for affected stakeholders and customers to be heard, the Presiding Officer and the Pennsylvania Public Utility Commission (''Commission''): (1) approve the terms of this Joint Petition, (2) direct West Penn to file a Tariff Supplement to become effective on one day's notice incorporating the schedule of rates and charges attached hereto as Appendix A, and (3) approve certain amendments to West Penn's 1998 Restructuring Settlement, as defined herein, consistent with the terms of this Joint Petition. The Joint Petition resolves issues relating to the Company's Commission-recognized stranded cost under-recoveries, by securitizing the stranded cost under-recovery and extending the stranded cost recovery period and corresponding rate cap, consistent with the underlying intent of the 1998 Restructuring Settlement and Commission precedent. In support of their Joint Petition, the Joint Petitioners represent the following:
INTRODUCTION
1. West Penn is a public utility and Pennsylvania corporation authorized pursuant to Commission regulation to provide electric utility service in all or parts of 23 counties in Pennsylvania. It currently provides electric service to approximately 697,000 customers in Pennsylvania. Pursuant to the Electric Generation Competition and Customer Choice Act, West Penn filed with the Commission a restructuring proceeding in August of 1997 at Docket No. R-00973981 that resulted in a settlement among the parties to that proceeding. The settlement at Docket No. R-00973981 was approved by the Commission by Final Order entered November 19, 1998 (collectively hereinafter referred to as the ''1998 Restructuring Settlement'').
2. On November 25, 2003, West Penn filed a Petition for Issuance of a Second Supplement to its Previous Qualified Rate Orders under Sections 2808 and 2812 of the Public Utility Code. West Penn sought a supplemental qualified rate order (''QRO'') to securitize its remaining unsecuritized, unrecovered stranded costs allowed in its 1998 Restructuring Settlement, carrying costs, Company savings, transaction fees and expenses and to recover the supplemental intangible transition charge beyond December 31, 2008, which was to be the end point of West Penn's stranded cost recovery period and generation rate cap as set forth in the 1998 Restructuring Settlement. West Penn proposed securitizing approximately $115 million in transition bonds. By correspondence dated February 25, 2004, West Penn waived its request for expedited resolution of its supplemental QRO in anticipation of temporary financing being obtained to satisfy maturing debt.
3. The OCA, the OSBA and the WPPII each filed Answers to West Penn's Petition on December 15, 2003. In general, the OCA, OSBA and WPPII opposed West Penn's petition on the grounds, among several reasons, that it sought recovery of stranded cost beyond the stranded cost recovery period and generation rate cap period which were to conclude simultaneously in 2008, without providing for extension of the generation rate caps in 2009 and 2010.
4. The Joint Petitioners, via a Joint Motion to Admit Materials into the Evidentiary Record (Joint Motion), filed with this Joint Petition, have stipulated to the admission of testimony and further exhibits to the evidentiary record of this proceeding. In addition, WPPII submitted testimony, which stressed, inter alia, the importance of West Penn avoiding a scenario in which stranded costs in the form of a competitive transition charge (''CTC'') or ITC were still being collected from customers without rate cap protection. West Penn is also submitting testimony in support of the terms of the Joint Petition. Among other things, that testimony stresses the importance of avoiding a scenario in which West Penn would be recovering stranded costs in the form of a competitive transition charge (''CTC'') or ITC, but customers would be without rate cap protection. Other Joint Petitioners may submit statements in support of the Joint Petition. Pursuant to the Joint Motion, the record is to include:
a. Statement No. 1, Direct Testimony of John R. Howells and associated Exhibits JRH-1, JRH-2, JRH-3, JRH-4, JRH-5, JRH-6, JRH-7, JRH-8 (Attachment A).
b. Rebuttal Statement No. 1, Rebuttal Testimony of John R. Howells (Attachment B).
c. Petition of West Penn Power Company with Exhibits A, B and C (Attachment C).
d. West Penn Power Company Restructuring Settlement (Attachment D).
e. WPPII Statement No. 1, Direct Testimony of Victor Sawicki (Attachment E).
f. WPPII Statement No. 2, Direct Testimony of Michele Ponchione (Attachment F).
g. Exhibit titled West Penn ITC-2 Projected Annual Activity, (Attachment G).
h. Table depicting breakout of components of West Penn requested securitization (Attachment H).
i. Informal Data Requests Nos. 1, 2 and 3 of OSBA and West Penn responses (Attachment I).
j. Exhibit depicting Projected Shopping Credit Adjustments (Attachment J).
k. It is also agreed to by the parties that OCA shopping statistics may be considered part of the record.
5. The testimony of West Penn witness Howells (Statement No. 1) that accompanied the November 2003 Petition described the background of this proceeding. In its 1998 Restructuring Proceeding at Docket No. R-00973981, the Commission approved the parties' Joint Petition for Full Settlement by Order entered November 19, 1998. West Penn was authorized to recover $670 million in stranded costs. The Commission also authorized West Penn to securitize the full stranded cost amount of $670 million. The Commission's Order of November 19, 1998 was the Qualified Rate Order (QRO) necessary for securitization and issuance of transition bonds under Section 2812 of the Public Utility Code. (Howells St. No. 1, pp. 4-5). On April 23, 1999, West Penn requested that the Commission enter a Supplemental QRO to clarify the mechanics of the issuance and reconciliation of transition bonds. The Commission entered the Supplemental QRO August 12, 1999 at Docket No. R-00994649. (Howells St. No. 1, p. 5). In May of 1999 West Penn Funding LLC was formed as a special purpose entity for the sole purpose of purchasing and owning intangible transition property, and issuing transition bonds. West Penn Funding LLC was formed by West Penn Funding Corporation, a wholly owned subsidiary of West Penn. In November 1999 West Penn Funding issued $600 million of transition bonds. (Howells St. No. 1, pp. 6-7).
6. West Penn continued to attempt to recover the remainder of its non-securitized stranded costs through its CTC. Since the inception of its CTC, West Penn was underrecovering or not recovering its full authorized CTC. The reason for the underrecovery was that West Penn revenues were constrained by the rate cap and sales levels. Each year since the inception of its CTC in 1999, West Penn as part of its CTC reconciliation proceeding, requested that the Commission direct the deferral of the undercollected CTC amounts as a regulatory asset for full and complete recovery at a future date. The underrecovery in 1999 was $15.9 million. (Docket No. M-FACE9905). The underrecovery in 2000 was $6.4 million which, when added to the existing underrecovery of $15.9 million, resulted in cumulative underrecovery of $22.3 million. (Docket No. M-FACE0006). The underrecovery in 2001 was approximately $9.6 million which, when added to the existing underrecovery of $22.3 million, resulted in a cumulative underrecovery of $31.9 million. (Docket No. M-FACE-0109). The underrecovery in 2002 was approximately $16.9 million which, when added to the existing underrecovery of $31.9 million, resulted in a cumulative underrecovery of $48.8 million (Docket No. M-FACE0210). In West Penn's CTC Reconciliation Statement for 2003, West Penn showed an underrecovery of $16.1 million which, when added to the existing underrecovery of $48.8 million, resulted in a cumulative underrecovery in the amount of $64.9 million. (Docket M-FACE0308). On August 30, 2004, West Penn filed its CTC reconciliation for the 12 months ended July 31, 2004 showing a 12-month underrecovery of $13.2 million, for a total cumulative underrecovery of $78.1 million. The reconciliation and deferral filings and Orders were attached as Exhibits JRH-4 through JRH-8 in the Petition filed November 25, 2003. (Howells St. No. 1, pp. 7-8).
7. The Joint Petitioners have engaged in extensive settlement discussions with the procedural cooperation of the Office of Administrative Law Judge (''ALJ'') that have resulted in this mutually acceptable Joint Petition that all parties believe to be in the public interest and that all parties believe should be promptly approved by the Commission so that the benefits to the public achieved by this Joint Petition can be realized as soon as possible. Consistent with Section 2804(4)(ii) of the Competition Act, and the intent of the 1998 Restructuring Settlement Agreement, this Joint Petition satisfies the Intervenors' concerns that customers would not be exposed to unrestricted market prices for generation, while still being responsible for payment of stranded costs.
8. The terms of the Joint Petition reflect the fact that West Penn's need for additional time to recover the stranded costs established in the restructuring proceeding essentially means that the electric competition transition period must be extended for the Company. It is important to note that the Joint Petition does not address West Penn's post-transition POLR period, but rather the continued transition to the POLR period while West Penn continues to collect stranded costs from its ratepayers. In recognition of the extension of the transition period, the Joint Petition continues the same principles in the Company's 1998 Restructuring Settlement: stranded cost collection, distribution rate caps and gradually increasing generation rates subject to caps.
9. In trying to resolve these issues that arose from the 1998 Restructuring Settlement, the Joint Petitioners sought to reach a settlement that is consistent with the manner in which the parties to the 1998 Restructuring Settlement dealt with issues of stranded costs and generation rate caps. The 1998 Restructuring Settlement provided for stranded cost collection and generation rate caps ending simultaneously by December 31, 2008. The 1998 Restructuring Settlement also called for generation rate increases to occur in 2006 and 2008. Since West Penn has not been able to collect all of its stranded costs within the rates provided in the 1998 Restructuring Settlement, and has had to defer such stranded cost amounts, the Joint Petition provides for a longer period (through 2010) to collect the stranded costs and associated carrying charges previously approved in the 1998 Restructuring Settlement. As set forth below, the Joint Petition provides for additional increases in generation rates in 2007 and 2008. The Joint Petition also provides that during the extended period when these stranded costs are collected (from January 1, 2009 through 2010), West Penn's generation rates will be subject to a rate cap. Furthermore, the Joint Petition extends West Penn's distribution rate cap from December 31, 2005, as agreed in the 1998 Restructuring Settlement, through December 31, 2007, with an additional distribution rate cap in effect throughout 2009. Any distribution rate increase shall become effective no later than October 1, 2008. The 2007 generation rate increase is mitigated by the distribution rate cap extension throughout 2007, which is part of the Joint Petition.
10. The resolution of the issues raised by West Penn's request results in certain modifications and extensions of provisions of West Penn's 1998 Restructuring Settlement. Due to the request for modifications and extensions of the 1998 Restructuring Settlement, the Joint Petition has been served on all parties to the Company's restructuring proceeding at Docket No. R-00973981. West Penn is also providing notice to its customers of the Joint Petition proceeding by way of notices in its regular monthly customer bills during the next available month-long billing cycle. West Penn further requests Commission publication of the Joint Petition in the Pennsylvania Bulletin. West Penn requests that the Pennsylvania Bulletin notice establish a reasonable deadline for interventions. Customers and other parties with interest in the subject matter of the Joint Petition will thereby have full and adequate notice of these proposals. After full notice of the Joint Petition proposals has been provided, the Administrative Law Judge can determine whether hearings must be scheduled prior to the preparation of a Recommended Decision.
11. TERMS AND CONDITIONS
11a.) The Joint Petitioners agree that the Restructuring Settlement at Docket No. R-00973981, as approved by the Commission by Order entered November 19, 1998, should be amended to provide for changes in rates and rate caps, as set forth herein. The Joint Petitioners agree that the changes in rates and rate caps described in this Joint Petition are reasonable and in the public interest.
11b.) The generation rate cap, consisting of the CTC/ITC plus the generation rates, provided in Section B.3 of the 1998 Restructuring Settlement, shall continue without amendment for the years 2004, 2005, and 2006, including the system-wide generation rate increase to a West Penn system average rate of 4.135 cents/KWh for 2006, as set forth in Appendix A.1
11c.) The system average generation rate cap for year 2007 is amended to provide for an increase from a West Penn system average generation rate of 4.135 cents/kwh to a West Penn system average generation rate cap of 4.431 cents/KWh beginning in 2007. The system average generation rate cap increase to 4.41 cents/KWh anticipated in the 1998 Restructuring Settlement for 2008 is amended to be an increase to the system average generation rate cap of 4.743 cents/KWh beginning in 2008, as set forth in Appendix A. The percentage of the rate increase for 2008 under the Joint Petition is consistent with the percentage rate increase for 2008 established in the 1998 restructuring settlement.
11d.) The period of the generation rate cap shall be extended from the end of 2008 through 2009 and 2010, provided however, that the level of the system average generation rate cap shall increase to 5.587 cents/KWh in 2009 and to 6.061 cents/KWh in 2010, as set forth in Appendix A.
11e.) The cap on distribution charges through the end of the year 2005 as provided in Paragraph B.3 of the 1998 Restructuring Settlement is amended to provide that the cap on distribution charges is extended until December 31, 2007, for all retail customers. West Penn may file to increase distribution rates to become effective on or after January 1, 2008, provided such rates become effective prior to October 1, 2008. In addition, West Penn agrees to distribution rates for the year 2009 at the level of distribution rates in effect as of January 1, 2009. The changes to the distribution rate cap described in this Joint Petition do not apply to, nor do they affect, West Penn's transmission-related charges. West Penn may file to increase or decrease transmission-related charges to be effective at any time after December 31, 2005. West Penn further agrees that it will continue to meet or exceed the reliability requirements for distribution service contained in the applicable Commission regulations and orders.
11f.) West Penn agrees that it shall not recover through customer rates any charges from an automatic rate adjustment mechanism (a ''distribution system improvement charge'' or ''DSIC'') that provides rate recovery for fixed costs associated with delivery system improvement and relocation projects made prior to January 1, 2010, even if such DSICs are permitted by state statute. Should a jurisdictional government body direct that certain costs or category of costs may be recovered solely through a DSIC mechanism, the prohibition of DSIC recovery shall not apply. To the extent that West Penn seeks a DSIC mechanism, parties reserve the right to oppose West Penn's request.
11g.) West Penn shall securitize the currently remaining deferred portion of its CTC, including carrying charges, that has been deferred pursuant to Commission Orders each year from 1999 through 2003. West Penn shall also securitize the remaining unrecovered portion of its stranded costs. West Penn shall request additional deferral of its unrecovered 2004 CTC amounts in its annual CTC reconciliation proceeding for 2004. The currently remaining deferred portion of the CTC, plus the remaining unrecovered portion of stranded costs, is approximately $50 million. Together with Company savings and transaction fees and expenses, the total amount to be securitized is approximately $115 million. See Attachment H to the Joint Motion to Admit Materials into the Evidentiary Record. Consistent with the terms of the 1998 Restructuring Settlement, savings from securitization will be shared between West Penn and its customers on a 25%-75% basis, respectively.
11h.) West Penn shall be permitted to recover the ITC-2 resulting from the securitization of the approximate $115 million so long as the ITC-2 ends no later than December 31, 2010. The issuance of Series 2 transition bonds will terminate collection of CTC. Quarterly reconciliation, and potential monthly reconciliations in 2010, will ensure full collection of ITC-2 by December 31, 2010. Shopping credits will be adjusted as necessary pursuant to any necessary ITC-2 reconciliations.
11i.) The Joint Petitioners request that the Commission issue a Supplemental Qualified Rate Order requested by West Penn, as attached hereto as Joint Petition Appendix B. The Qualified Rate Order shall include the following Paragraphs:
1. West Penn is authorized to issue transition bonds up to $115 million, the ''Series 2 Bonds.'' At the issuance of the Series 2 Bonds, such Bonds shall be entitled to the benefits of the accounts established under the Indenture in connection with the issuance of the Series 1 Bonds. Amounts in the over-collateralization sub-account remaining after the repayment in full of the Series 1 Bonds will remain in the over-collateralization sub-account for the benefit of the Series 2 Bonds. In any event, amounts in such accounts shall be no less than the amounts required to achieve an AAA rating from the rating agencies. West Penn is authorized to charge customers a separate Intangible Transition Charge (''ITC-2'') in an amount sufficient to pay principal and interest on the Series 2 Bonds, plus provide credit enhancement by funding the accounts under the Indenture, and to pay servicing fees and other ongoing fees and costs related to Series 2 Bonds contemplated by the Indenture.
2. ITC-2 will be recovered from customers beginning when the Series 1 Bonds have been paid in full and ITC-1 ceases to be collected from customers (estimated to be mid-2008) until the Series 2 Bonds are paid in full, but no later than December 31, 2010. The Series 2 Bonds will be issued as ''accretion bonds.'' During the period from the issuance of the Series 2 Bonds until the beginning of the ITC-2 collection period, interest will not be paid currently but will accrue and be added to principal on a quarterly basis. Current interest payments and principal amortization will commence on a quarterly basis after the commencement of the ITC-2 collection period. Reconciliation of the ITC-2 recovery will occur at least annually, but may occur on a quarterly basis if deemed necessary by the Company or, during 2010, on a monthly basis if deemed necessary by the Company.
3. West Penn's ITC-2 business structure may use the existing business structure used for the issuance and recovery of its ITC-1 bonds, or in the discretion of West Penn, it may use a new or altered business structure. The existing business structure consists of West Penn Funding Corporation, which is a direct subsidiary of West Penn, and West Penn Funding LLC, which is owned by West Penn Funding Corporation. West Penn Funding LLC is the issuer of the transition bonds.
4. This Supplemental QRO is consistent with the QRO (and the First Supplemental QRO), and the QRO together with all Supplements have been validly adopted by the Commission and are irrevocable and, after the appeal period, are non-appealable, and no further regulatory approvals are required for the issuance of the Series 2 Bonds.
11j.) The Joint Petitioners also request that the Commission approve West Penn's proposed Intangible Transition Charge 2 tariff, attached as Joint Petition Appendix C.
11k.) West Penn agrees to a revenue neutral tariff rate design adjustment for customers at Rate Schedule 20, as attached hereto as Appendix D. The first adjustment is a modification of the hours use provision in the first block, which makes the tariff more equitable and which has minimal impact on other Rate 20 customers. The second adjustment mitigates the rate increases for the first block generation charge, which has the effect of reducing the relative rate increases for smaller and lower load factor customers in the Rate 20 class. These adjustments produce a shopping credit which is more consistent and more equitable among customers within the class.
12. Pursuant to Paragraph D.3 of the Restructuring Settlement, West Penn agreed to establish a sustainable energy fund (SEF), which West Penn agreed to fund with a payment of $11,425,721 on December 31, 1998. The purpose of that payment was to provide funding for the SEF through December 31, 2005, which was the end of the transmission and distribution rate cap period to which West Penn agreed as part of the Restructuring Settlement. Paragraph D.3 of the Restructuring Settlement further stated that, beginning January 1, 2006, the SEF would be funded from the Company's 1.73 cents per kWh transmission and distribution rate at .01 cents per kWh (less applicable gross receipts tax) on all power sold after that date, unless the Commission established new distribution rates. The settlement also stated that the .01 cents per kWh shall not automatically be considered a cost of service element upon expiration of the transmission and distribution rate cap. In order to provide funding of the SEF at no additional expense to ratepayers during the continuation of the distribution rate cap period proposed this Joint Petition, West Penn agrees that it shall make lump sum payments to the SEF at a level equal to the amount that the .01 cents per kWh charge would have accrued for the period from January 1, 2006, until a new distribution rate becomes effective. West Penn shall not be permitted to seek recovery of such payments for ratemaking purposes. West Penn's tariff, Supplement No. 140 to Electric-Pa. P. U. C. No. 39, Original Page No. 5-2, shall be amended effective January 1, 2006, to eliminate the 0.01 cents per kWh Sustainable Energy Surcharge (less applicable gross receipts tax) on all kWh's delivered to all customers. Elimination of this Surcharge shall not impact West Penn's current state jurisdictional distribution service rates. In its next distribution rate filing, West Penn shall have the option to request from the Commission recovery of future payments to the SEF as an expense for ratemaking purposes, for the period after a new distribution rate is effective. Nothing in this Joint Petition binds any of the parties, in any manner whatsoever, from taking any position in any other proceeding or forum on the issues of the recoverability from customers of an electric distribution company of payments to sustainable energy funds (including, but not limited to, the West Penn SEF), the operation and management of such funds, or the use of the payments made to such funds.
MISCELLANEOUS
13. The provisions of the 1998 Restructuring Settlement and Commission Orders relating thereto shall remain applicable except as specifically amended in the proceeding pursuant to this Joint Petition. In particular the rate cap exceptions provided in the 1998 Restructuring Settlement, which expressly incorporate the rate cap exceptions of Section 2804 of the Public Utility Code, shall remain applicable during the rate cap extensions provided in this Joint Petition.
14. This Joint Petition is conditioned upon the Commission's approval of the terms and conditions contained herein in their entirety. If the Commission should fail to grant such approval in whole or in part, or should it modify the terms and conditions contained herein, participation in this Joint Petition may be withdrawn by any Party upon written notice to the Commission and all Parties within five (5) business days. In the event the Commission does not approve the Joint Petition in its entirety or any Party elects to withdraw, the Parties reserve their respective rights to proceed in any manner allowable under the law. Should the Commission approve the Joint Petition and one or more elements of the Commission's order is reversed on appeal, each of the Joint Petitioners reserve their right to withdraw from the terms of the Joint Petition. Pending any appellate review of a Commission Order adopting the Joint Petition, the parties shall continue to implement the terms of the Joint Petition in good faith as feasible or appropriate.
15. This Joint Petition is proposed by the Joint Petitioners solely for the purpose of fully and completely settling this proceeding and is made without any admission by any party hereto as to any matter of fact or law, is without prejudice to any position advanced by any Party or Joint Petitioner on the record in this proceeding or other proceedings, and is without prejudice to any position that might be adopted or advocated during subsequent litigation before the Commission or elsewhere in this or any other proceeding. This Joint Petition is conditioned upon the Commission's approval of the terms set forth herein in a final order as aforesaid. In the event the Commission does not approve this Joint Petition and the proceeding continues before the Commission or elsewhere, the Joint Petitioners reserve all of their respective rights.
16. This Joint Petition may be executed in counterparts, and when all the Joint Petitioners have each executed a counterpart, they shall be bound hereby as if all of said Joint Petitioners had executed the same counterpart.
17. The Joint Petitioners agree to cooperate with one another and do those things and execute such documents as are reasonably necessary to effectuate the terms and intent of this Joint Petition.
18. If the ALJ, in a Recommend Decision, recommends that the Commission adopt the Joint Petition as herein proposed, the Joint Petitioners agree to waive the filing of Exceptions. However, the Joint Petitioners do not waive their rights to file Exceptions with respect to any modifications to the terms and conditions of this Joint Petition, or any additional matters proposed by the ALJ in the Recommended Decision. In the event Exceptions are filed, the Joint Petitioners reserve the right to file a Reply to those Exceptions.
19. The Joint Petitioners are in full agreement that this Joint Petition represents a fair, just and reasonable resolution of the matters that have been at issue in this proceeding. The benefits reflected in this Joint Petition, and the related concessions and compromises agreed to by each of the Joint Petitioners, are the result of a considerable effort to achieve a reasonable negotiated resolution involving complex matters. In arriving at this Joint Petition, the Joint Petitioners have balanced diverse interests in order to achieve a result that is reasonable and supportable. The Joint Petitioners urge the Administrative Law Judge and Commission to approve this Joint Petition in its entirety.
[Pa.B. Doc. No. 04-1807. Filed for public inspection September 24, 2004, 9:00 a.m.] _______
1 As used in this Joint Petition, the generation rate cap means the sum of the CTC, the ITC, and the generation rates.
