COMMONWEALTH OF VIRGINIA STATE CORPORATION COMMISSION AT RICHMOND, OCTOBER 30, 2015 ~ ORDER FOR NOTICE AND HEARING

Transcription

1 APPLICATION OF COMMONWEALTH OF VIRGINIA STATE CORPORATION COMMISSION AT RICHMOND, OCTOBER 30, 2015 ~ (a i/i A. CO VIRGINIA ELECTRIC AND POWER COMPANY CASE NO. PUE For aroval and certification for the roosed 2016 Solar Projects ursuant to D and of the Code of Virginia, and for aroval of a rate adjustent clause, designated Rider US-2, under A 6 of the Code of Virginia ORDER FOR NOTICE AND HEARING On October 1, 2015, Virginia Electric and Power Coany ("Doinion Virginia Power" or "Coany") filed with the State Cororation Coission ("Coission") an alication ("Alication") for aroval and certificates of ublic convenience and necessity ("CPCNs") to construct and oerate three utility scale solar electric generating facilities: (i) the Scott Solar Facility, a 17 egawatt ("MW") (noinal alternating current ("AC")) facility located in Powhatan County; (ii) the Whitehouse Solar Facility, a 20 MW AC facility located in Louisa County; and (iii) the Woodland Solar Facility, a 19 MW AC facility located in Isle of Wight County (collectively, "2016 Solar Projects" or "Projects"). The Coany requests aroval and a CPCN for each of the 2016 Solar Projects ursuant to and D of the Code of Virginia ("Code") and the Filing Requireents in Suort of Alications for Authority to Construct and Oerate an Electric Generating Facility ("Generation Rules").1 Through its Alication, the Coany also requests aroval of a rate adjustent clause ("RAC"), designated Rider US-2, ursuant to A 6 of the Code ("Subsection A 6") and the Rules '20 VAC et seq.

2 Governing Utility Rate Alications and Annual Inforational Filings ("Rate Case Rules").2 According to the Coany, the revenue requireent of the roosed RAC is based on a arket index-based rate echanis, as eritted by Subsection A 6. Doinion Virginia Power filed a Motion for Entry of a Protective Order and Additional Protective Treatent ("Motion for Protective Order"), as well as a roosed Protective Order with its Alication. Wl < H1 As roosed, the Projects would include ground-ounted, single-axis tracking solar anel arrays, and would interconnect using 34.5 kilovolt distribution-level facilities.3 If aroved, Doinion Virginia Power exects the roosed Projects to begin coercial oeration by Deceber 15, 2016, and that the roosed Projects would collectively rovide aroxiately 124 gigawatt-hours of energy roduction at an average caacity factor of aroxiately 25% in the first year of oeration.4 Doinion Virginia Power estiates the construction cost of the roosed Projects to be aroxiately $129.5 illion, excluding financing costs, or aroxiately $2,306/kilowatt ("kw") at the total 56 MW AC rating.5 According to Doinion Virginia Power, the roosed Projects are anticiated to take advantage of investent tax credits ("ITCs").6 Secifically, the Coany notes that according to the current federal tax code, aroxiately 91% of the caital 2 20 VAC et seq. 3 Alication 312, Id. at 3, Pre-filed Direct Testiony of Mark D. Mitchell at 12. The cost estiates attributable to each of the roosed Projects (excluding financing costs) are: $40.8 illion for the Scott Solar Facility, or aroxiately $2,399/kW at the 17 MW AC rating; $44.5 illion for the Whitehouse Solar Facility, or aroxiately $2,226/kW at the 20 MW AC rating; $44.2 illion for Woodland Solar Facility, or aroxiately $2,307/kW at the 19 MW AC rating. Id. at Alication at 14. 2

3 yi P exenditures on the roosed Projects would qualify for a 30% solar ITC if the Projects are in eg) service by Deceber 31, Doinion Virginia Power reresents that in conjunction with its own on-going solar roject develoent efforts, the Coany issued a request for roosals in July 2015 ("2015 RFP") designed to suort the Coany's evaluation of its Coany-develoed rojects and to consider and weigh ossible third-arty arket alternative solar rojects.8 The Coany asserts that its 2015 RFP eets the Subsection A 6 requireent to consider and weigh alternative otions, including third arty arket alternatives, in selecting roosed generating facilities.9 The Coany states that it has roosed a arket index-based rate echanis for Rider US-2 that is based on ower urchase agreeent ("PPA") rates for solar energy and intended to rovide custoers with a levelized rate (with escalation) coared to a traditional cost of service aroach.10 According to the Coany, in designing the arket index, it relied uon rices contained in certain PPA roosals bid by third arty develoers into the 2015 RFP.11 The Coany states that its roosed arket index aroach is unrecedented and that the Coany has subitted a rivate letter ruling ("PLR") request with the U.S. Internal Revenue Service 1 O ("IRS") to confir certain tax treatent associated with its arket index aroach. The Coany further states that its filing is contingent uon a favorable PLR fro the IRS.13 The 7 Pre-filed Direct Testiony of Ted Fasca at Alication at 8. 9 Id. at Id. at 13. " Id at 14. V-Id at Id. at 14. 3

4 Coaay rooses a arket index rate for Rider US-2 of $55.66/egawatt-hour ("MWh") for 14 the first year after coercial oeration, escalating at 2.5% annually for 20 years. The Coany rooses an initial rate year for Rider US-2 of Seteber 1, 2016 to Ha W P A August 31, 2017, although the Rider is not designed to becoe effective until Deceber 1, The initial total annualized Rider US-2 revenue requireent is $3,980,416, which will roduce aroxiately $2,985,312 in revenues during the initial rate year.16 The Coany states that the two key coonents of the revenue requireent for the Projects are the Projected Cost Recovery Factor and the Actual Cost True-u Factor.17 The Projected Cost Recovery Factor is the result of ultilying rojected kilowatt-hour ("kwh") outut fro each of the 2016 Solar Projects by the arket index rate, inus estiated revenue fro the sale of renewable energy certificates ("RECs").18 Doinion Virginia Power did not include a true-u aount in this case. However, if initiated in 2017 as exected by the Coany, Doinion Virginia Power reresents that the Actual Cost True-u ortion of the revenue requireent will either credit to, or recover fro, jurisdictional custoers the difference between actual revenues recovered through Rider US-2 during the rior calendar year and the actual MWh of energy roduced by the Projects, ultilied by the arket index rate.19 The Id. For test ower roduced rior to coercial oeration, the Coany has incororated a $10/MWh rice. Id. 15 Id. at Id. 17 Pre-filed Direct Testiony of Cory A. Seiders at Id. The Coany indicates that roceeds fro the sale of RECs associated with the Projects will be a direct benefit for custoers, and will not be included in the Coany's renewable energy ortfolio standard rogra. Alication at Alication at

5 True-u would also reflect any difference between rojected revenues fro the sale of RECs and i yi 20 actual onies received and carrying costs on over- or under-collection of revenues. ffi If the roosed Rider US-2 for the 2016 Rate Year is aroved, the iact on custoer bills would deend on the custoer's rate schedule and usage. The Coany asserts that ileentation of the roosed Rider US-2 on Deceber 1, 2016, will increase the onthly bill of a residential custoer using 1,000 kwh er onth by aroxiately $ In its Alication, Doinion Virginia Power requests artial waivers of certain Rate Case Rules and Generation Rules. First, the Coany requests artial waiver of the requireents of Rules 60 and 90 of the Rate Case Rules, with resect to Filing Schedule 45 (Return on Equity Peer Grou Benchark).22 In suort of its request, the Coany states that "ursuant to the rovisions of Va. Code and :1, a return on equity deterination is not to be ade in this roceeding" and that good cause exists to waive this filing requireent.23 Second, the Coany requests artial waiver of the requireents that ertain to fuel suly studies and arrangeents ("fuel requireents") and transission interconnection requireents, facilities, and iacts ("transission requireents").24 Secifically, the Coany requests waiver of Rate Case Rules 60 and 90, with resect to Filing Schedule 46 as to fuel and transission requireents. The Coany also requests waiver of the following Generation Rules: (i) 20 VAC (6)(b) as to roviding toograhic as of the roosed sites for the 20 Pre-filed Direct Testiony of Cory A. Seiders at Alication at Id at 2, Id. at Id. at 2, The Coany reresents that to the extent inforation siilar to that identified by the transission requireents is available at a distribution level, such inforation is rovided by the Coany. 5

6 2016 Solar Projects;25 (ii) 20 VAC (8) as to fuel requireents; (iii) 20 VAC (12)(b), (c), and (d) as to transission requireents; (iv) 20 VAC (2) as to fuel requireents; and (iv) 20 VAC (6) as to transission and fuel requireents.26 In (4 U5! Q suort of these requests for waivers, the Coany states that because the roosed 2016 Solar Projects would be connected to the Coany's distribution syste, no new transission facilities would be required. Accordingly, Doinion Virginia Power asserts that the transission requireents are not alicable to the roosed 2016 Solar Facilities.27 Doinion Virginia Power further asserts that because the fuel source for the roosed 2016 Solar Facilities is the?r sun, these fuel requireents are not alicable. Finally, the Coany requests, to the extent required, a "blanket waiver" to cover any cost of service-related filing requireents under the Rate Case and Generation Rules "that is not needed to suort the arket index being roosed for Rider US-2."29 As rovided by :21 D 2 of the Code, the Coission and the State Water Control Board ("Board") ust consult on wetland iacts rior to the siting of electric utility facilities that require a CPCN. As rovided by Section 3 of the Deartent of Environental Quality - State Cororation Coission Meorandu of Agreeent Regarding Consultation on Wetland Iacts, the Staff of the Coission ("Staff) has advised the Deartent of 25 Id. at 22. The Coany states that toograhical as do not currently exist for the Projects, however, aerial views and site location as are rovided for each of the Projects. (see Pre-filed Testiony of Mark D. Mitchell at Schedules 4 and 5). 26 Id. 27 Id. The Coany states that to the extent inforation siilar to that identified by the transission requireents is available at a distribution level, such inforation is rovided. Id. at 2 n Id. at Id. at 3. The Coany states that it has rovided inforation resonsive to the requireents of these Rules in a searate cost of service aendix for inforational uroses. Id. 6

7 y? P Environental Quality, acting on behalf of the Board, that Doinion Virginia Power filed its Alication in Case No. PUE and that the Board's consultation is required.30 In addition to the consultation on wetlands, :1 B and G of the < P Code direct the Coission and the Deartent of Environental Quality to coordinate the environental review of roosed generating lants and associated facilities. Additionally, A of the Code rovides for the Coission to receive and to consider reorts on the roosed facilities fro state environental agencies. Accordingly, the Staff has requested the Deartent of Environental Quality to coordinate an environental review of the roosed Project by the aroriate agencies and to rovide a reort on the review.31 NOW THE COMMISSION, uon consideration of this atter, is of the oinion and finds that Doinion Virginia Power should rovide ublic notice of its Alication; a ublic hearing should be scheduled for the urose of receiving testiony and evidence on the Alication; a rocedural schedule should be established to allow interested ersons an oortunity to file coents on the Alication or to articiate in this roceeding as a resondent; and the Staff should be directed to investigate the Alication and file testiony and exhibits containing its findings and recoendations thereon. Further, we find that a Hearing Exainer should be assigned to conduct all further roceedings in this atter on behalf of the Coission, including ruling on the Coany's Motion for Protective Order and filing a final reort containing the Hearing Exainer's findings and recoendations. 30 Letter fro Alisson P. Klaiber, Esquire, State Cororation Coission, dated Oct. 7, 2015, to David L. Davis, Deartent of Environental Quality, filed in Case No. PUE Letter fro Alisson P. Klaiber, Esquire, State Cororation Coission, dated Oct. 7, 2015, to Bettina Sullivan, Deartent of Environental Quality, filed in Case No. PUE

8 w H With resect to the Coany's waiver requests, we find as follows. First, we find that (d) Doinion Virginia Power's request for waiver of the requireents of 20 VAC and 20 VAC for filing Schedule 45 should be granted. Historically, we have granted the 0 H 60 Coany's requests for this waiver for uroses of judicial econoy in rate adjustent clause roceedings, as we have ade return on equity deterinations in biennial review roceedings. Because legal questions related to this issue are currently ending in the Coany's 2015 Biennial Review roceeding (as well as otentially other ending rate adjustent clause 32 roceedings), we grant the requested waiver without ruling uon the Coany's assertion in the Alication that, "[jursuant to the rovisions of Va. Code and :1, a return on equity deterination is not to be ade in this roceeding."33 We grant liited waiver of Rules 60 and 90 of the Rate Case Rules with resect to Filing Schedule 46 as to fuel and transission requireents and the Coany's request for waiver of the following Generation Rules: (i) 20 VAC (6)(b) as to toograhical as of roosed sites; (ii) 20 VAC (8) as to fuel requireents; (iii) 20 VAC (12)(b), (c) and (d) as to transission requireents; (iv) 20 VAC (2) as to fuel requireents; and (v) 20 VAC (6) as to transission and fuel requireents, for uroses of coencing this roceeding. However, we stress that by granting these aforeentioned waiver requests at this stage of the roceeding, we are not ruling on the relevance, if any, that inforation required by these 32 See Alication of Virginia Electric and Power Coany, For a 2015 biennial review of the rales, ters and conditions for the rovision of generation, distribution and transission services ursuant to A of the Code of Virginia, Case No. PUE Alication at 21. 8

9 rules ay have in this or any future Rider US-2 roceeding.34 With resect to its request for a ys H1 "blanket waiver" of cost of service-related filing requireents of the Rate Case and Generation Rules, the Coany states it has rovided such inforation in its Alication,35 and therefore, P we find it unnecessary to grant the requested waiver under the circustances. Accordingly, IT IS ORDERED THAT: (1) This atter is docketed and assigned Case No. PUE (2) As rovided by of the Code and 5 VAC , Procedure before hearing exainers, of the Coission's Rules of Practice and Procedure ("Rules of Practice"),36 a Hearing Exainer is aointed to conduct all further roceedings in this atter on behalf of the Coission as directed above and to file a final reort. (3) A ublic hearing on the Alication shall be convened on March 22, 2016, at 10 a.., in the Coission's Courtroo, Second Floor, Tyler Building, 1300 East Main Street, Richond, Virginia 23219, to receive into the record the testiony of ublic witnesses and the evidence of the Coany, any resondents, and Staff. Any erson desiring to offer testiony as a ublic witness at this hearing should aear in the Coission's courtroo fifteen (15) inutes rior to the starting tie of the hearing and identify hiself or herself to the Coission's Bailiff. (4) A coy of the ublic version of the Alication ay be obtained by subitting a written request to counsel for the Coany, Willia H. Baxter II, Esquire, Doinion Resources Services, Inc., Law Deartent, RS-2, 120 Tredegar Street, Richond, Virginia If 34 Aroval of this liited waiver does not rohibit the issue fro being revisited, if warranted. 35 Alication at VAC et seq. 9

10 accetable to the requesting arty, the Coany ay rovide the docuents by electronic eans. Coies of the ublic version of all docuents also shall be available for interested ersons to review in the Coission's Docuent Control Center, located on the first floor of the P git Tyler Building, 1300 East Main Street, Richond, Virginia, between the hours of 8:15 a.. and 5.., Monday through Friday, excluding holidays. Interested ersons also ay download unofficial coies fro the Coission's website: htt:// (5) On or before Deceber 1, 2015, the Coany shall cause the following notice and sketch as37 showing the locations of the roosed facilities (Attachents I, II, and III to this Order) to be ublished as dislay advertising (not classified) on one occasion in newsaers of general circulation throughout the Coany's service territory in Virginia: NOTICE TO THE PUBLIC OF THE APPLICATION OF VIRGINIA ELECTRIC AND POWER COMPANY FOR APPROVAL AND CERTIFICATION OF THREE UTILITY SCALE SOLAR PROJECTS IN VIRGINIA AND FOR APPROVAL OF A RATE ADJUSTMENT CLAUSE CASE NO. PUE-20I On October 1, 2015, Virginia Electric and Power Coany ("Doinion Virginia Power" or "Coany") filed with the State Cororation Coission ("Coission") an alication ("Alication") for aroval and certificates of ublic convenience and necessity ("CPCNs") to construct and oerate three utility scale solar electric generating facilities: (i) the Scott Solar Facility, a 17 egawatt ("MW") (noinal alternating current ("AC")) facility located in Powhatan County; (ii) the Whitehouse Solar Facility, a 20 MW AC facility located in Louisa County; and (iii) the Woodland Solar Facility, a 19 MW AC facility located in Isle of Wight County (collectively, "2016 Solar Projects" or "Projects"). The Coany requests aroval and a CPCN for each of the 2016 Solar Projects ursuant to and D of the Code of Virginia ("Code") and the Filing Requireents in Suort of Alications for Authority to Construct and Oerate an Electric Generating Facility. Through its Alication, the Coany also requests aroval of a rate adjustent clause 37 The as were filed with the Clerk of the Coission on October 14,

11 ("RAC"), designated Rider US-2, ursuant to A 6 of the Code ("Subsection A 6") and the Rules Governing Utility Rate Alications and Annual Inforational Filings. According to the Coany, the revenue requireent of the roosed RAC is based on a arket index-based rate echanis, as eritted by Subsection A 6. As roosed, the Projects would include ground-ounted, single-axis tracking solar anel arrays, and would interconnect using 34.5 kilovolt distribution-level facilities. If aroved, Doinion Virginia Power exects the roosed Projects to begin coercial oeration by Deceber 15, 2016 and that the roosed Projects would collectively rovide aroxiately 124 gigawatthours of energy roduction at an average caacity factor of aroxiately 25% in the first year of oeration. Doinion Virginia Power estiates the construction cost of the roosed Projects to be aroxiately $129.5 illion, excluding financing costs, or aroxiately $2,306/kilowatt at the total 56 MW AC rating. According to Doinion Virginia Power, the roosed Projects are anticiated to take advantage of investent tax credits ("ITCs"). Secifically, the Coany notes that according to the current federal tax code, aroxiately 91% of the caital exenditures on the roosed Projects would qualify for a 30% solar ITC if the Projects are in service by Deceber 31, Doinion Virginia Power reresents that in conjunction with its own on-going solar roject develoent efforts, the Coany issued a request for roosals in July 2015 ("2015 RFP") designed to suort the Coany's evaluation of its Coanydeveloed rojects and to consider and weigh ossible third-arty arket alternative solar rojects. The Coany asserts that its 2015 RFP eets the Subsection A 6 requireent to consider and weigh alternative otions, including third arty arket alternatives, in selecting roosed generating facilities. The Coany states that it has roosed a arket indexbased rate echanis for Rider US-2 that is based on ower urchase agreeent ("PPA") rates for solar energy and intended to rovide custoers with a levelized rate (with escalation) coared to a traditional cost of service aroach. According to the Coany, in designing the arket index, it relied uon rices contained in certain PPA roosals bid by third arty develoers into the 2015 RFP. The Coany states that its roosed arket index aroach is unrecedented and that the Coany has 11

12 1 w H subitted a rivate letter ruling ("PLR") request with the U.S. Internal Revenue Service ("IRS") to confir certain tax treatent associated with its arket index aroach. The Coany further H states that its filing is contingent uon a favorable PLR fro the IRS. The Coany rooses a arket index rate for Rider US-2 of $55.66/egawatt-hour ("MWh") for the first year after coercial oeration, escalating at 2.5% annually for 20 years. The Coany rooses an initial rate year for Rider US-2 of Seteber 1, 2016 to August 31, 2017, although the Rider is not designed to becoe effective until Deceber 1, The initial total annualized Rider US-2 revenue requireent is $3,980,416, which will roduce aroxiately $2,985,312 in revenues during the initial rate year. The Coany states that the two key coonents of the revenue requireent for the Projects are the Projected Cost Recovery Factor and the Actual Cost True-u Factor. The Projected Cost Recovery Factor is the result of ultilying rojected kilowatt-hour ("kwh") outut fro each of the 2016 Solar Projects by the arket index rate, inus estiated revenue fro the sale of renewable energy certificates ("RECs"). Doinion Virginia Power did not include a true-u aount in this case. However, if initiated in 2017 as exected by the Coany, Doinion Virginia Power reresents that the Actual Cost True-u ortion of the revenue requireent will either credit to, or recover fro, jurisdictional custoers the difference between actual revenues recovered through Rider US-2 during the rior calendar year and the actual MWh of energy roduced by the Projects, ultilied by the arket index rate. The True-u would also reflect any difference between rojected revenues fro the sale of RECs and actual onies received and carrying costs on over- or under-collection of revenues. If the roosed Rider US-2 for the 2016 Rate Year is aroved, the iact on custoer bills would deend on the custoer's rate schedule and usage. The Coany asserts that ileentation of the roosed Rider US-2 beginning on Deceber 1, 2016, will increase the residential custoer's onthly bill, based on a 1,000 kwh er onth, by $0.07. Interested ersons are encouraged to review the Alication and suorting docuents for the details of these and other roosals. TAKE NOTICE that the Coission ay arove revenues and adot rates, fees, charges, tariff revisions, and ters and conditions of service that differ fro those 12

13 Unl H aearing in the Coany's Alication and suorting docuents and ay aortion revenues aong custoer classes and/or rates in a anner differing fro that shown in the Coany's Alication and suorting docuents. The Coission entered an Order for Notice and Hearing in this roceeding that, aong other things, scheduled a ublic hearing on March 22, 2016, at 10 a.., in the Coission's Second Floor courtroo located in the Tyler Building, 1300 East Main Street Richond, Virginia 23219, to receive testiony fro ebers of the ublic and evidence related to the Alication fro the Coany, any resondents, and the Coission's Staff. Any erson desiring to testify as a ublic witness at this hearing should aear fifteen (15) inutes rior to the starting tie of the hearing and contact the Coission's Bailiff. A coy of the ublic version of the Alication ay be obtained by subitting a written request to counsel for the Coany, Willia H. Baxter II, Esquire, Doinion Resources Services, Inc., Law Deartent, RS-2, 120 Tredegar Street, Richond, Virginia If accetable to the requesting arty, the Coany ay rovide the docuents by electronic eans. Coies of the ublic version of the Alication and docuents filed in this case also are available for interested ersons to review in the Coission's Docuent Control Center, located on the First Floor of the Tyler Building, 1300 East Main Street, Richond, Virginia 23219, between the hours of 8:15 a.. and 5.., Monday through Friday, excluding holidays. Interested ersons also ay download unofficial coies fro the Coission's website: htt:// Any erson or entity ay articiate as a resondent in this roceeding by filing, on or before January 12, 2016, a notice of articiation. If not filed electronically, an original and fifteen (15) coies of the notice of articiation shall be subitted to Joel H. Peck, Clerk, State Cororation Coission, c/o Docuent Control Center, P.O. Box 2118, Richond, Virginia A coy of the notice of articiation as a resondent also ust be sent to counsel for the Coany at the address set forth above. Pursuant to Rule 5 VAC B, Particiation as a resondent, of the Coission's Rules of Practice and Procedure, any notice of articiation shall set forth: (i) a recise stateent of the interest of the resondent; (ii) a stateent of the secific action sought to the extent then known; and (iii) the factual and legal basis for the action. All filings shall refer to Case No. PUE For 13

14 H1 additional inforation about articiation as a resondent, any erson or entity should obtain a coy of the Coission's Order for Notice and Hearing. On or before March 15, 2016, any interested erson wishing to coent on the Alication shall file written coents on the Alication with the Clerk of the Coission at the address set forth above. Any interested erson desiring to file coents electronically ay do so on or before March 15, 2016, by following the instructions on the Coission's website: htt:// Coact discs or any other for of electronic storage ediu ay not be filed with the coents. All such coents shall refer to Case No. PUE <9 & a Ui The Coission's Rules of Practice and Procedure ay be viewed at htt:// A rinted coy of the Coission's Rules of Practice and Procedure and an official coy of the Coission's Order for Notice and Hearing in this roceeding ay be obtained fro the Clerk of the Coission at the address set forth above. VIRGINIA ELECTRIC AND POWER COMPANY (6) On or before Deceber 1, 2015, the Coany shall serve a coy of this Order for Notice and Hearing on the chairan of the board of suervisors and county attorney of each county and uon the ayor or anager (or equivalent official) and city or town attorney of every city and town in which the Coany rovides service in the Coonwealth of Virginia. Service shall be ade either by ersonal delivery or first class ail to the custoary lace of business or residence of the erson or entity served. (7) On or before January 8, 2016, the Coany shall file roof of the notice and service required by Ordering Paragrahs (5) and (6), including the nae, title, and address of each official served with Joel H. Peck, Clerk, State Cororation Coission, c/o Docuent Control Center, P.O. Box 2118, Richond, Virginia

15 (8) On or before March 15, 2016, any interested erson ay file written coents on 43s the Alication with the Clerk of the Coission at the address set forth in Ordering Paragrah (7). Any interested erson desiring to subit coents electronically ay do so on or before March 15, 2016, by following the instructions found on the Coission's website: w htt:// Coact discs or any other for of electronic storage ediu ay not be filed with the coents. All coents shall refer to Case No. PUE (9) On or before January 12, 2016, any erson or entity ay articiate as a resondent in this roceeding by filing a notice of articiation. If not filed electronically, an original and fifteen (15) coies of the notice of articiation shall be subitted to the Clerk of the Coission at the address set forth in Ordering Paragrah (7), and the resondent siultaneously shall serve a coy of the notice of articiation on counsel to the Coany at the address in Ordering Paragrah (4). Pursuant to Rule 5 VAC B, Particiation as a resondent, of the Coission's Rules of Practice, any notice of articiation shall set forth: (i) a recise stateent of the interest of the resondent; (ii) a stateent of the secific action sought to the extent then known; and (iii) the factual and legal basis for the action. Any organization, cororation or governent body articiating as a resondent ust be reresented by counsel as required by 5 VAC , Counsel, of the Rules of Practice. All filings shall refer to Case No. PUE (10) Within five (5) business days of receit of a notice of articiation as a resondent, the Coany shall serve uon each resondent a coy of this Order for Notice and Hearing, a coy of the ublic version of the Alication, and all ublic aterials filed by the Coany with the Coission, unless these aterials already have been rovided to the resondent. 15

16 P (11) On or before January 26, 2016, each resondent ay file with the Clerk of the Coission at the address set forth in Paragrah (7) and serve on the Staff, the Coany, and all other resondents, any testiony and exhibits by which the resondent exects to establish its case, and each witness's testiony shall include a suary not to exceed one age. If not filed electronically, an original and fifteen (15) coies of such testiony and exhibits shall be subitted to the Clerk of the Coission. In all filings, the resondent shall coly with the Coission's Rules of Practice, including, but not liited to: 5 VAC , Filing and service; 5 VAC , Coies and forat; and 5 VAC , Preared testiony and exhibits. All filings shall refer to Case No. PUE (12) The Staff shall investigate the Alication. On or before February 23, 2016, the Staff shall file with the Clerk of the Coission an original and fifteen (15) coies of testiony and exhibits and each Staff witness's testiony shall include a suary not to exceed one age. A coy thereof shall be served on counsel to the Coany and all resondents. (13) On or before March 8, 2016, the Coany ay file with the Clerk of the Coission any rebuttal testiony and exhibits that it exects to offer and each rebuttal witness's testiony shall include a suary not to exceed one age. The Coany shall serve a coy on the Staff and all resondents. If not filed electronically, an original and fifteen (15) coies of such rebuttal testiony and exhibits shall be subitted to the Clerk of the Coission at the address set forth in Ordering Paragrah (7). (14) The Coission's Rule of Practice 5 VAC , Interrogatories or requests for roduction of docuents and things, shall be odified for this roceeding as follows: resonses and objections to written interrogatories and requests for roduction of docuents shall be served within seven (7) calendar days after receit of the sae. In addition to the service requireents of a 16

17 5 VAC of the Rules of Practice, on the day that coies are filed with the Clerk of the cp Coission, a coy of the interrogatory or request for roduction shall be served electronically, or H1 by facsiile, on the arty to who the interrogatory or request for roduction is directed or the assigned Staff attorney, if the interrogatory or request for roduction is directed to Staff.38 Excet as odified above, discovery shall be in accordance with Part IV of the Coission's Rules of Practice, 5 VAC etseq. (15) We grant the Coany's request for artial waiver of the requireents of 20 VAC and 20 VAC for Filing Schedule 45 (Return on Equity Peer Grou Benchark) and Filing Schedule 46 as to fuel requireents and transission requireents, as set forth in this Order. (16) We grant the Coany's request for artial waiver of the following Generation Rules: (i) 20 VAC (6)(b) as to toograhical as of roosed sites; (ii) 20-VAC (8) as to fuel requireents; (iii) 20 VAC (12)(b), (c) and (d) as to transission requireents; (iv) 20 VAC (2) as to fuel requireents; and (v) 20 VAC (6) as to transission and fuel requireents, as set forth in this Order. (17) This atter is continued. AN ATTESTED COPY hereof shall be sent by the Clerk of the Coission to: Lisa S. Booth, Esquire, and Willia H. Baxter II, Esquire, Doinion Resources Services, Law Deartent, RS-2, 120 Tredegar Street, Richond, Virginia 23219; Kristian M. Dahl, Esquire, McGuireWoods LLP, One Jaes Center, 901 East Gary Street, Richond, Virginia ; and C. Meade Browder, Jr., Senior Assistant Attorney General, Office of the Attorney General, Division of Consuer Counsel, 900 East Main Street, Second Floor, Richond, Virginia 23219; 38 The assigned Staff attorney is identified on the Coission's website, htt:// virginia.gov/case. by clicking "Docket Search" and entering the case nuber, PUE , in the aroriate box. 17

18 and a coy shall be delivered to the Coission's Office of General Counsel and Divisions of Energy Regulation and Utility Accounting and Finance. 18

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