1 1 BEFORE THE PUBLIC UTILITIES COMMISSION OF OHIO 2 - - - 3 In the Matter of the Fuel : Adjustment Clauses for : Case No. 09-872-EL-FAC 4 Columbus Southern Power : Case No. 09-873-EL-FAC And Ohio Power Company. : 5 In the Matter of the : 6 Commission Review of the : Case No. 10-2929-EL-UNC Capacity Charges of Ohio : 7 Power Company and Columbus: Southern Power Company. : 8 In the Matter of the : 9 Application of Columbus : Southern Power Company and: 10 And Ohio Power Company for: Case No. 11-346-EL-SSO Authority to Establish a : Case No. 11-348-EL-SSO 11 Standard Service Offer : Pursuant to Section : 12 4928.143, Revised Code, in: the Form of an Electric : 13 Security Plan. : 14 In the Matter of the : Application of Columbus : Case No. 11-349-EL-AAM 15 Southern Power Company and: Case No. 11-350-EL-AAM Ohio Power Company for : 16 Approval of Certain : Accounting Authority : 17 In the Matter of the : 18 Application of Columbus : Southern Power Company for: 19 Approval of a Mechanism : To Recover Deferred Fuel : Case No. 11-4920-EL-RDR 20 Costs Ordered Under : Section 4928.144, Ohio : 21 Revised Code. : 22 23 24 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 2 1 In the Matter of the : Application of Ohio Power : 2 Company for Approval of a : Mechanism to Recover : Case No. 11-4921-EL-RDR 3 Deferred Fuel Costs : Ordered Under Section : 4 4928.114, Ohio Revised : Code. : 5 In the Matter of the : 6 Application of the Fuel : Adjustment Clauses for : 7 Columbus Southern Power : Case No. 11-5096-EL-FAC Company and Ohio Power : 8 Company and Related : Matters. : 9 In the Matter of the : 10 Fuel Adjustment Clauses : For Columbus Southern : Case No. 12-3133-EL-FAC 11 Power Company and Ohio : Power Company. : 12 In the Matter of the : 13 Fuel Adjustment Clauses : Case No. 13-572-EL-FAC For Ohio Power Company. : 14 In the Matter of the : 15 Fuel Adjustment Clauses : Case No. 13-1286-EL-FAC For Ohio Power Company. : 16 In the Matter of the : 17 Fuel Adjustment Clauses : Case No. 13-1892-EL-FAC For Ohio Power Company. : 18 In the Matter of the : 19 Application of Ohio Power : Company to Adopt a Final : 20 Implementation Plan for : Case No. 14-1186-EL-RDR the Retail Stability Rider: 21 22 23 24 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 3 1 In the Matter of the : Application of Ohio Power : 2 Company for Administration: of the Significantly : Case No. 15-1022-EL-UNC 3 Excessive Earnings Test : Pursuant to R.C. 4928.143 : 4 (F) and Ohio Adm. Code : 4901:1-35-10. : 5 In the Matter of the : 6 Application of Ohio Power : Company for Administration: 7 of the Significantly : Case No. 16-1105-EL-UNC Excessive Earnings Test : 8 Pursuant to R.C. 4928.143 : (F) and Ohio Adm. Code : 9 4901:1-35-10. : 10 - - - 11 PROCEEDINGS 12 Before Greta See and Sarah Parrot, Attorney 13 Examiners, at the Public Utilities Commission of 14 Ohio, 180 East Broad Street, Room 11A, Columbus, 15 Ohio, called at 10:00 a.m. on Tuesday, January 24th, 16 2017. 17 - - - 18 19 20 21 22 ARMSTRONG & OKEY, INC. 222 East Town Street, Second Floor 23 Columbus, Ohio 43215-4620 (614) 224-9481 - (800) 223-9481 24 Fax - (614) 224-5724 25 - - - ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 4 1 APPEARANCES: 2 American Electric Power Service Corporation By Steven T. Nourse, Esq. 3 1 Riverside Plaza, 29th Floor Columbus, Ohio 43215 4 Msmckenzie@aep.com 5 On behalf of Ohio Power Company. 6 Michael D. DeWine, Ohio Attorney General By John H. Jones, Esq. 7 Steve Beeler, Esq. Assistant Attorneys General 8 30 East Broad Street, 16th Floor Columbus, Ohio 43215 9 On behalf of the Staff of the PUCO. 10 Office of the Ohio Consumers' Counsel 11 By Maureen R. Willis, Esq. Assistant Consumers' Counsel 12 10 West Broad Street, Suite 1800 Columbus, Ohio 43215-3485 13 On behalf of the Office of the Ohio 14 Consumers' Counsel. 15 Matt Pritchard, Esq. McNees, Wallace & Nurick, LLC 16 Fifth Third Center 21 East State Street, 17th Floor 17 Columbus, Ohio 43215 18 On behalf of Industrial Energy Users of Ohio General Counsel. 19 Michael L. Kurtz, Esq. 20 Jody Cohn, Esq. Boehm, Kurtz & Lowry 21 36 East Seventh Street, Suite 1510 Cincinnati, Ohio 45202 22 On behalf of Ohio Energy Group. 23 24 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 5 1 APPEARANCES: (Continued) 2 Kimberly B. Bojko, Esq. 3 Carpenter, Lipps & Leland 280 North High Street, Suite 1300 4 Columbus, Ohio 43215 5 On behalf of the Ohio Manufacturers Association Energy Group, 6 Angela Paul Whitfield, Esq. 7 Carpenter, Lipps & Leland 280 North High Street, Suite 1300 8 Columbus, Ohio, 43215 9 On behalf of the Kroger Company. 10 Gretchen Petrucci, Esq. 11 Michael J. Settineri, Esq. Vorys, Sater, Seymour and Peas 12 52 East Gay Street Columbus, Ohio 43215 13 On behalf of Constellation Energy Group 14 - - - 15 16 17 18 19 20 21 22 23 24 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 6 1 INDEX 2 - - - 3 COMPANY'S CASE WITNESSES: PAGE 4 William A. Allen 5 Direct Examination by Mr. Nourse 30 Examination by Hearing Examiner Parrot 37 6 OCC'S CASE 7 WITNESSES: PAGE 8 Michael P. Haugh Direct Examination by Ms. Willis 41 9 Examination by Hearing Examiner Parrot 43 10 - - - 11 COMPANY EXHIBITS IDENTIFIED ADMITTED Joint Exhibit 1 - Global Settlement 36 40 12 101 - Prefiled Testimony of 30 40 13 William A. Allen 14 1 - REMAND Witness Allen testimony 22 45 Filed 10-4-2016 15 1 - AEP Witness Allen testimony 28 45 16 Case 15-1022 17 2 - AEP Witness Mitchell testimony 28 45 Case 15-1022 18 1 - Witness Allen testimony 28 45 19 Case 16-1105 20 2 - Witness Ross testimony 28 45 Case 16-1105 21 3 - Witness Ross supplemental 29 45 22 Testimony Case 16-1105 23 OCC EXHIBITS IDENTIFIED ADMITTED 24 1 - Direct Testimony of Witness 28 45 Duann 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 7 1 INDEX 2 - - - 3 OCC EXHIBITS IDENTIFIED ADMITTED 3 - Direct Testimony of Michael 28 45 4 Haugh 5 1 - REMAND Testimony of Michael 27 45 Haugh 6 2 - REMAND Testimony of Witness 27 45 7 Duann 8 OCC/OEG EXHIBITS 1 - REMAND Testimony of Witness 27 45 9 Kollen 10 OEG EXHIBITS 1 - Direct Testimony of Witness 29 45 11 Kollen 12 1A - Supplemental Testimony of 29 45 Witness Kollen 13 STAFF EXHIBITS IDENTIFIED ADMITTED 14 1 - Public Version - Report of 23 45 Management/Performance 15 11-30-2015 16 1A - Confidential Version - Report 23 45 Of Management/Performance 17 11-30-15 18 2 - Public Version - Report of 24 45 Management/Performance 19 Case 13-1892-EL-FAC filed 5-9-14 20 2A - Confidential Version - Report 24 45 21 Of Management/Performance Case 13-1892-EL-FAC filed 22 5-9-14 23 3 - Report of Management/Performance 24 45 Filed 10-6-2014 24 4 - Prefiled Testimony of 25 45 25 Joseph Buckley ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 8 1 Tuesday Morning Session, 2 January 24th, 2017 3 - - - 4 HEARING EXAMINER SEE: Let's go on the 5 record. Scheduled for hearing today before the 6 Commission at this time are a number of cases. 7 Case No.09-872-EL-FAC and Case No. 8 09-873-EL-FAC, being entitled In the Matter of the 9 Fuel Adjustment Clauses for Columbus Southern Power 10 Company and Ohio Power Company. 11 Case No. 10-2929-EL-UNC, entitled In the 12 Matter of the Commission Review of the Capacity 13 Charges of Ohio Power Company and Columbus Southern 14 Power Company. 15 Case Nos. 11-346-EL-SSO and Case No. 16 11-348-EL-SSO, being entitled In the Matter of the 17 Application of Columbus Southern Power Company and 18 Ohio Power Company for Authority to Establish a 19 Standard Service Offer Pursuant to Revised Code 20 Section 4928.143 in the Form of an Electric Security 21 Plan. 22 And Case Nos. 11-349-EL-AAM and 23 11-350-EL-AAM, In the Matter of the Application of 24 the Columbus Southern Power Company and Ohio Power 25 Company for Approval of Certain Accounting authority. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 9 1 Case Nos. 11-4920-EL-RDR, and Case No. 2 11-4921-EL-RDR, In the Matter of the Application of 3 Columbus Southern Power Company and Ohio Power 4 Company for Approval of Mechanisms to Recover 5 Deferred Fuel Costs as Ordered Under Revised Code 6 Section 4928.144. 7 Okay. Then Case No. 11-5906-EL-FAC, 8 being entitled In the Matter of the Application of 9 the Fuel Adjustment Clauses for Columbus Southern 10 Power Company and Ohio Power Company and Related 11 Matters. 12 And continuing, Case No. 13 12-3133-EL-FAC, Case No. 13-572-EL-FAC, Case No. 14 13-1286-EL-FAC, and Case No. 13-1892-EL-FAC, being 15 entitled In the Matter of the Fuel Adjustment Clauses 16 for Columbus Southern Power Company and Ohio Power 17 Company. And a few more. 18 Case No. 14-1186-EL-RDR, entitled In the 19 Matter of the Application of The Ohio Power Company 20 to Adopt a Final Implementation Plan for the Retail 21 Stability Rider, and Case No. 15-1022-EL-UNC and Case 22 No. 16-1105-EL-UNC, In the Matter of the Application 23 of The Ohio Power Company for Administration of the 24 Significantly Excessive Earnings Test for Revenue 25 Years 2014 and 2015. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 10 1 Now, I would like to take appearances of 2 the parties. 3 On behalf of Ohio Power Company. 4 MR. NOURSE: Thank you, your Honors. On 5 behalf of Ohio Power Company, Steven T. Nourse, 1 6 Riverside Plaza, 29th floor, Columbus, Ohio 43215. 7 HEARING EXAMINER SEE: And let's 8 continue around the table, please. 9 MR. PRITCHARD: Thank you, your Honors. 10 On behalf of IEU Ohio, Matt Pritchard with law firm 11 McNees, Wallace & Nurick, 21 East State Street, 12 Columbus, Ohio 423215. 13 HEARING EXAMINER SEE: And, 14 Mr. Pritchard, could you state who you represent? 15 MR. PRITCHARD: I represent the 16 Industrial Energy Users of Ohio. 17 MR. BEELER: Thank you. On behalf of 18 the Staff of Public Utilities Commission of Ohio, 19 Ohio Attorney General Mike DeWine, Steven Beeler and 20 John Jones, Assistant Attorneys General, 30 East 21 Broad Street, 16th floor, Columbus, Ohio. 22 MS. WILLIS: Thank you, your Honors. On 23 behalf of the residential customers of The Ohio Power 24 Company, Bruce J. Weston, Consumers' Counsel, Office 25 of the Consumers' Counsel, 10 West Broad Street, ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 11 1 Suite 1800, Columbus, Ohio 43215. Thank you. 2 MS. COHN: Good morning. On behalf of 3 the Ohio Energy Group, Michael Kurtz and Jody Cohn 4 from the firm of Boehm, Kurtz & Lowry, 36 East 5 Seventh Street, Suite 1510, Cincinnati, Ohio 45202. 6 MS. BOJKO: Good morning, your Honors. 7 On behalf of the Ohio Manufacturers Association 8 Energy Group, Kimberly B. Bojko with the law firm 9 Carpenter, Lipps & Leland, 280 North High Street, 10 Suite 1300 Columbus, Ohio 43215. 11 MS. WHITFIELD: Good morning. On behalf 12 of the Kroger Company, Angela Paul Whitfield with the 13 law firm of Carpenter, Lipps & Leland, 280 North High 14 Street, Suite 1300, Columbus, Ohio, 43215. 15 MS. PETRUCCI: Good morning. On behalf 16 of Constellation Energy Group, the law firm of Vorys, 17 Sater, Seymour and Peas, Michael J. Settineri and 18 Gretchen Petrucci, 52 East Gay Street, Columbus, Ohio 19 43215. 20 HEARING EXAMINER SEE: Okay. 21 Mr. Nourse, I think you indicated a 22 preference to take up the matter of the outstanding 23 testimony and aps for rehearing. 24 MR. NOURSE: Yes, your Honor. And I 25 was -- I did not do a thorough search of that. Let ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 12 1 me start with rehearings, I guess. 2 I think the parties did deal with the 3 PIR rehearing sort of being the most substantive 4 relative to the issues that we had resolved in the 5 Global Settlement. 6 And so I assume you're referring to some 7 other Applications for Rehearing that are pending in 8 some of the other proceedings. And I would suggest 9 perhaps we can just talk about them individually, if 10 you had questions about any particular rehearing 11 applications that are pending. 12 You know, I just would say at the 13 outset, obviously the signatory parties, we're here, 14 can discuss anyone's viewpoint on that. 15 When you go beyond the PIR Application 16 for Rehearing, it sort of goes beyond what we 17 specifically agreed to in the settlement. So I want 18 to make sure we're all on the same page there. 19 HEARING EXAMINER SEE: Okay. Just a 20 moment. So that -- the testimony in 11-4920 has been 21 addressed in the settlement. Let's look at the 22 testimony, the remand testimony filed by the parties 23 in the capacity case -- I'm sorry, when I say the 24 capacity case, 10-2929. 25 MR. NOURSE: Yeah, and -- ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 13 1 HEARING EXAMINER SEE: Hold on. Then go 2 ahead. Let's stick with the aps for rehearing then. 3 Let's address that one first and we'll finish that up 4 and move on. 5 MR. NOURSE: So I apologize, your 6 Honors, I did not do a search of pending rehearings 7 in the other proceedings. We tried to deal with the 8 most pertinent one, address the issues that that 9 addresses, the issues that we were resolving in the 10 PIR cases, 4920 and 4921, and so I apologize, I don't 11 have a list of the other rehearings that are pending. 12 If there are particular ones that you 13 would like to discuss or would like to have the 14 parties address, we can certainly do that. 15 HEARING EXAMINER SEE: Let's look at the 16 one in the RSR, Case No. 14-1186. There are 17 Applications for Rehearing pending that were filed by 18 IUE Ohio, OCC -- well, along with OHA and OMAEG. And 19 Krogers has an Application for Rehearing. Are those 20 Applications for Rehearing withdrawn? 21 MR. NOURSE: Your Honor, I'll make a 22 general statement, and then perhaps the parties that 23 have those rehearings can add in. 24 You know, what we did try to make clear 25 in the Global Settlement was that we were resolving ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 14 1 all the cases -- all the issues in the cases that we 2 were resolving, so it was intended to be a complete 3 settlement of those proceedings. 4 As I pointed out, we did deal with the 5 PIR rehearing specifically, but I guess my -- my 6 presumption, subject to statements by the other 7 parties, would be that once -- they could have 8 similar treatment. 9 In other words, they would be held in 10 abeyance pending the Commission's consideration of 11 the Global Settlement. And if the Global Settlement 12 is adopted, which does resolve all the issues in all 13 those cases, then by extension that would resolve the 14 rehearings as well. 15 HEARING EXAMINER SEE: Don't worry about 16 it. If you speak up a little I think we all can hear 17 you without the mic today. 18 MR. NOURSE: I have a problem with that 19 today. I'll try to -- 20 HEARING EXAMINER SEE: Grab one of the 21 other mics. Let's hear from IEU. 22 MR. PRITCHARD: Your Honor, Mr. Nourse's 23 representation would be correct in that it is IEU 24 Ohio's intent that the Global Settlement would 25 resolve all of IEU Ohio's outstanding issues in ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 15 1 14-1186. 2 Procedurally I don't know if you want to 3 address them in an order adopting the stipulation, or 4 if we would move to withdraw them once something's 5 been done, but we -- we intended this settlement to 6 resolve our issues in that case, and any rehearing in 7 any of these cases. 8 HEARING EXAMINER SEE: Okay. 9 Ms. Willis. 10 MS. WILLIS: Thank you, your Honors. 11 OCC's position would be as stated by Mr. Nourse, that 12 the aps for rehearing in 14-1186 be given the same 13 treatment where the Commission, upon delivering a 14 final, nonappealable order on the Global Settlement, 15 then the ap for rehearing would become moot and 16 considered withdrawn. 17 And that's consistent -- for your 18 Honors' reference, consistent with the treatment set 19 out on the PIR on Page 11 of the stipulation which is 20 attached -- by the way, is attached to Mr. Allen's 21 testimony. 22 HEARING EXAMINER SEE: And on behalf of 23 Krogers, Ms. Whitfield. 24 MS. WHITFIELD: Yes, your Honor, I would 25 concur with what everybody else has said at the ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 16 1 table, that the Global Settlement is intended to -- 2 would resolve the issues in the ap for rehearing, and 3 that would be moot assuming the Global Settlement is 4 approved. 5 HEARING EXAMINER SEE: We need you to 6 speak up. 7 MS. WHITFIELD: Sorry. Did you hear 8 that? 9 HEARING EXAMINER SEE: I heard it. 10 Ms. Bojko. 11 MS. BOJKO: Yes, your Honors. Thank 12 you. We would concur as well. We believe that the 13 Applications for Rehearing would be moot. Thank you. 14 HEARING EXAMINER PARROT: Anyone 15 authorized to speak on behalf of OHA? 16 MR. KURTZ: No, your Honors. But on 17 behalf of OEG, we agree. 18 HEARING EXAMINER SEE: Now, let's shift 19 focus to the -- 20 HEARING EXAMINER PARROT: Ms. Willis -- 21 MR. NOURSE: Can I clarify? I think the 22 discussion we just had was focused on the 1186 case, 23 perhaps, but I think it's probably fair to say that 24 the parties feel the same way about all pending 25 rehearings in all the proceedings. If I'm wrong, ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 17 1 someone can correct me there. 2 HEARING EXAMINER SEE: And I think 3 Ms. Willis did indicate that that was her 4 understanding for both cases. 5 MS. WILLIS: Yes. 6 HEARING EXAMINER PARROT: I just want to 7 be clear though. OCC has a pending Application for 8 Rehearing in the FAC docket, 11-5906, et al., and 9 that has to do with sort of a matter that's not 10 directly related, so I just want to get it on the 11 record today that it is OCC's intention to withdraw 12 that as well. That was filed on August 21st, 2015. 13 MS. WILLIS: Your Honors, yes, that 14 would be -- that would be our intention. It is 15 covered by the stipulations, so that would be our 16 intention. 17 HEARING EXAMINER PARROT: Thank you. 18 HEARING EXAMINER SEE: Now, let's shift 19 focus to the testimony that's been filed in some of 20 the dockets addressed in the Global Settlement 21 stipulation. 22 MR. NOURSE: And I'll just make a 23 general statement, your Honors, and certainly if you 24 have additional questions or other parties want to 25 weigh in, they are more than welcome, but I guess ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 18 1 we -- you know, we did not agree specifically in the 2 Global Settlement to put -- you know, to put all the 3 testimony in in all the cases that has been filed as 4 far as an evidentiary admission. 5 I do think the witnesses that are here 6 today are aware of the positions and the cases and 7 the filed positions. 8 Even though those testimonies in some 9 cases haven't been admitted into an evidentiary 10 record, they are still positions of record, and 11 certainly give context for the Global Settlement 12 terms, settlement terms as well as the -- you know, 13 the two witnesses that are here today to testify 14 about the three-part test and supporting the Global 15 Settlement consideration of the Commission. 16 So I don't think it's necessary, and I 17 don't think it's something we specifically agreed to. 18 Having said that, if it's your preference to do that, 19 you know, I don't think we -- the Company would have 20 an objection. 21 HEARING EXAMINER SEE: Anyone else wish 22 to weigh in on this matter? 23 MS. WILLIS: Yes, your Honor. With 24 respect to the testimony of Mr. Haugh submitted in 25 the 10-2929, we have two pieces of testimony this ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 19 1 morning that supports the settlement. 2 The prior piece of testimony by 3 Mr. Haugh provides a context for the settlement, and 4 justification for the residential benefits associated 5 with the stipulation. 6 So we would -- most certainly would like 7 that right now it is -- we don't intend to withdraw 8 that, we would like that admitted as an exhibit as 9 part of the process. So that we would move to have 10 that admitted this morning. 11 MR. NOURSE: And I'm sorry, I know 12 Mr. Beeler wants to say something. When I said I 13 didn't object, I assumed that you were either going 14 to not admit all the testimony because it's not 15 necessary, or -- or admit all the testimony and not 16 selected items. So thank you. 17 MR. BEELER: And for your Honors' 18 benefits, Staff was intending on moving in the audits 19 for the FAC cases and some testimony from the SEET 20 case from Staff. 21 HEARING EXAMINER SEE: Did anyone else 22 have any position on the testimony being submitted 23 that has been filed in these cases coming into the 24 record? 25 (No response.) ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 20 1 HEARING EXAMINER SEE: Okay. Well, I 2 think the Bench's preference is that it either -- 3 that it all come in, or that it all stay out. 4 Given that the dockets are at different 5 stages, then especially the testimony in the SEET 6 cases should come in, and the testimony in the remand 7 cases should come in, as well as the testimony in the 8 capacity case. 9 And I'm talking about, for example, not 10 just Staff's testimony in the SEET cases, but OEG's, 11 as well as the Company's. 12 MR. NOURSE: Right. So your Honors are 13 saying that in the SEET cases and the remand cases 14 and the capacity case, all filed testimony in those 15 dockets would be admitted into the record here today? 16 HEARING EXAMINER SEE: That has not 17 already been admitted into the record in the case, 18 yeah. 19 MR. NOURSE: Okay. Thank you. So there 20 is -- in the remand -- I'm sorry, in Case No. 21 10-2929, there is testimony that was filed by AEP and 22 then testimony filed by OCC, as well as a joint 23 testimony by OEG and OCC. 24 And there is testimony in Case No. 25 14-1186 filed also by AEP and OEG and OCC, and ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 21 1 jointly by OEG and OCC, same docket. 2 HEARING EXAMINER PARROT: It's the same 3 testimony. 4 HEARING EXAMINER SEE: And then there is 5 testimony by Mitchell, Allen, Ross and Allen, 6 Buckley, Duann -- Kollen, Allen, Duann, and again by 7 Collin, in the SEET cases. That would come into the 8 record in this case. 9 And then there's one other issue. There 10 are stipulations that were filed in the two SEET 11 dockets September 1st, 2016. 12 MR. NOURSE: Yes. 13 HEARING EXAMINER SEE: Mr. Nourse, what 14 was the intention with regard to those two 15 stipulations? 16 MR. NOURSE: I would say the SEET 17 stipulations should be held in abeyance pending the 18 Commission's consideration of the Global Settlement, 19 because the Global Settlement resolves -- proposes to 20 resolve all the issues in those SEET dockets with 21 additional parties also supporting. 22 So on the SEET stipulations I think we 23 would hold those in abeyance, and if the Global 24 Settlement is adopted they could be withdrawn or 25 considered withdrawn, as being superceded by the ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 22 1 Global Settlement. 2 MR. BEELER: And Staff agrees pending 3 Commission decision that the Global Settlement 4 supercedes the current stipulations. 5 HEARING EXAMINER SEE: Okay. Are there 6 any other matters that need to be addressed before we 7 get started with the witnesses this morning? 8 MR. NOURSE: Just one, your Honor. On 9 your same vein there of stipulations, we do have a 10 gridSMART stipulation which is slightly different in 11 the 1939 docket. 12 The parties, including parties that are 13 not part of this Global Settlement, had entered into 14 a settlement filed in the docket. We had a hearing 15 and briefing on it. 16 And there's just been one change to the 17 proposed resolution in that case in the Global 18 Settlement here, and that is to reallocate revenue 19 responsibility for the customer classes. So that was 20 noted in that 1939 docket, as you know, through a 21 filing, and it's noted here in the settlement. 22 So I don't think that settlement was 23 intended to be withdrawn as sort of supplemented or 24 amended, so I just wanted to make that clarification. 25 HEARING EXAMINER SEE: And had you ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 23 1 indicated there was correspondence filed by OCC and 2 the Company in that docket? 3 MR. NOURSE: Yes. 4 HEARING EXAMINER SEE: Okay. 5 MR. BEELER: And one more, your Honor. 6 I mentioned the Staff audit. I'm not sure when you 7 had the discussion about testimony coming in or not, 8 if the Staff audits from the FAC cases would come in, 9 or do you want me to do that separately? 10 HEARING EXAMINER SEE: Let's do that 11 separately. 12 MR. NOURSE: We have no objection to 13 that, your Honors. 14 HEARING EXAMINER SEE: Okay. 15 MR. BEELER: Want me to go ahead and do 16 it? 17 HEARING EXAMINER SEE: Go ahead. 18 MR. BEELER: Okay. Staff would request 19 to move into the record Staff Exhibits 1 and 1A, 20 which is the Report of Management/Performance and 21 financial audits of the FAC of Ohio Power Company 22 filed in dockets 11-5906-EL-FAC, 12-3133-EL-FAC, 23 13-0572-EL-FAC, 13-1892-EL-FAC, and 13-1286-EL-FAC. 24 And, your Honors, Staff Exhibit 1 would 25 be the public version and Staff Exhibit 1A would be ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 24 1 the confidential version. 2 HEARING EXAMINER SEE: And which report 3 was that, Mr. Beeler? And if you have the date 4 filed. 5 MR. BEELER: I do have the dates here. 6 It was the report filed on November 30th, 2015. 7 Sorry about that. 8 We would also ask for Staff Exhibits 2 9 and 2A to be moved in the record, and this is a 10 report filed on May 9th, 2014, and that is in Case 11 No. 13-1892-EL-FAC. And that's another Report of 12 Management/Performance and financial audits of the 13 fuel and Purchased Power Rider, and the alternative 14 energy rider of Ohio Power Company. 15 And then -- and again, that's -- Staff 16 Exhibit 2 would be the public version and Staff 17 Exhibit 2A would be the confidential version. 18 And finally, Staff Exhibit 3 is the 19 report filed on October 6, 2014, and that's a report 20 filed by Baker Tilly, and that's in Case No. 21 11-59-06-EL-FAC, Case No. 12-3133-EL-FAC, 22 13-572-EL-FAC, 13-1892-EL-FAC, and 13-1286-EL-FAC. 23 And I think we covered the testimony from the SEET 24 case. I think that's all in. 25 HEARING EXAMINER SEE: We didn't -- do ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 25 1 you want to mark -- 2 MR. BEELER: Sure. Staff Exhibit 4 3 would be the prefiled testimony of Joseph Buckley 4 filed on August 15th, 2016. 5 MR. NOURSE: Your Honors, I didn't think 6 we were going to mark all the testimony because we 7 have done -- agreed to admit all the testimony in all 8 those cases you referenced earlier. 9 MR. BEELER: That was my thoughts, too. 10 MR. NOURSE: I can see the audit 11 reports, they are kind of a unique animal. 12 MS. WILLIS: Your Honors, the -- 13 HEARING EXAMINER SEE: Hold on just a 14 second, please. Ms. Willis. 15 MS. WILLIS: Yes, perhaps suggesting 16 that we could take administrative notice of these 17 materials has the same effect, and that way we don't 18 have to go through and mark exhibits. 19 MR. NOURSE: I would concur. 20 HEARING EXAMINER SEE: I understand it's 21 time consuming, but let's go through -- we have 22 already started to mark the audit reports and 23 Mr. Buckley's testimony. Let's go through and go 24 ahead and mark the remaining testimony. 25 MR. NOURSE: Of Staff, your Honor? ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 26 1 HEARING EXAMINER SEE: Staff has only 2 moved in Mr. Buckley's, and I believe that is all 3 they would need to mark in any of the cases. 4 MR. NOURSE: I guess if you have a list 5 of them, your Honor. If you prefer to put them in, 6 maybe you can just assign numbers. I don't have a 7 list in front of me of all the testimony. 8 HEARING EXAMINER SEE: Okay. Let's try 9 this way. 10 HEARING EXAMINER PARROT: All right. 11 Let's take the remand docket, 10-2929, 11-346, 12 et al., and 14-1186. AEP filed testimony of Company 13 Witness Allen on October 4th, 2016, how would you 14 like to mark that, Mr. Nourse? 15 MR. NOURSE: Well, your Honor, I 16 don't -- there's a lot of exhibits in that case, as 17 you may well recall, and I don't have the numbers in 18 front of me. 19 HEARING EXAMINER PARROT: Let's identify 20 it as a remand exhibit. 21 MR. NOURSE: Well, okay. 22 HEARING EXAMINER PARROT: Does that 23 work? 24 MR. NOURSE: I'm open to any numbering 25 you want to do, but I guess remand -- ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 27 1 HEARING EXAMINER PARROT: Company AEP 2 Remand Exhibit No. 1. So marked. 3 (EXHIBIT MARKED FOR IDENTIFICATION.) 4 HEARING EXAMINER PARROT: Ms. Willis, 5 OCC filed the testimony of OCC Witnesses Duann and 6 Haugh on October 18th, 2016. Do you have a 7 preference? 8 MS. WILLIS: Let's mark Mr. Haugh's 9 testimony as OCC Remand 1, and Mr. Duann as OCC 10 Remand 2. 11 HEARING EXAMINER PARROT: So marked. 12 (EXHIBIT MARKED FOR IDENTIFICATION.) 13 HEARING EXAMINER PARROT: And then also 14 on that same date, October 18th, 2016, OCC/OEG filed 15 the testimony of OCC/OEG Exhibit -- I'm losing it -- 16 Witness Kollen. 17 MS. WILLIS: If we could mark those as 18 OCC/OEG Joint Remand Exhibit 1. 19 HEARING EXAMINER PARROT: So marked. 20 (EXHIBIT MARKED FOR IDENTIFICATION.) 21 HEARING EXAMINER SEE: Let's go to the 22 testimony filed in the SEET cases. AEP has the 23 testimony of Mr. Mitchell filed on June 1st. And 24 Mr. Allen in 15-10 -- in Case No. 15-1022. 25 MR. NOURSE: Thank you, your Honor. I ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 28 1 would mark those as AEP Exhibit Remand Exhibit No. 1 2 for Mr. Allen -- 3 HEARING EXAMINER SEE: I'm sorry, there 4 is no remand exhibits, there is no testimony in the 5 SEET dockets. 6 MR. NOURSE: My apologies. AEP Ohio 7 Exhibit 1 for Mr. Allen, Exhibit 2 for Mr. Mitchell. 8 Thank you. 9 (EXHIBIT MARKED FOR IDENTIFICATION.) 10 HEARING EXAMINER SEE: And in the Case 11 No. 16-1105, you have testimony filed on May 16th, 12 for Ross and Allen. 13 MR. NOURSE: Okay. Thank you, your 14 Honor. Please mark those as AEP Exhibit 1 for 15 Mr. Allen and Exhibit 2 for Mr. Ross. 16 (EXHIBIT MARKED FOR IDENTIFICATION.) 17 HEARING EXAMINER SEE: Okay. 18 Mr. Buckley's testimony has already been marked. 19 Mrs. Willis, you filed the testimony of Mr. Duann and 20 Supplemental Testimony for Mr. Duann. 21 MS. WILLIS: If your Honor, if we could 22 mark those as OCC Exhibit 1 for the direct of 23 Mr. Duann and OCC Exhibit 1A for the supplemental of 24 Mr. Duann. 25 (EXHIBIT MARKED FOR IDENTIFICATION.) ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 29 1 HEARING EXAMINER SEE: Thank you. And 2 OEG has the testimony of Mr. Kollen filed on August 3 15th and the testimony of Mr. Kollen supplemental 4 testimony filed on September 19th. 5 MS. COHN: Please mark the direct as OEG 6 Exhibit 1, and the supplemental as OEG Exhibit 1A. 7 (EXHIBIT MARKED FOR IDENTIFICATION.) 8 HEARING EXAMINER SEE: Commissioners, 9 did I miss AEP supplemental testimony filed by 10 Mr. Allen on September 13th in these dockets? 11 MR. NOURSE: I guess we'll make that 12 Exhibit 3, if that's okay. 13 (EXHIBIT MARKED FOR IDENTIFICATION.) 14 HEARING EXAMINER SEE: Okay. And there 15 were no objections to the admission of that 16 testimony. 17 Let's move to our first witness this 18 morning. 19 MR. NOURSE: Thank you, your Honor. AEP 20 Ohio calls William A. Allen. 21 HEARING EXAMINER SEE: Mr. Allen, if 22 you'd raise your right hand. Do you affirm that the 23 information you're about to give is true? 24 MR. ALLEN: Yes, I do. 25 HEARING EXAMINER SEE: Thank you. Have ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 30 1 a seat. Mr. Nourse. 2 MR. NOURSE: Your Honor, I'd like to 3 mark Mr. Allen's prefiled testimony for January 6th 4 as AEP Ohio Exhibit 101 to avoid any confusion with 5 Company Exhibits in the other cases. Do you need a 6 copy? 7 HEARING EXAMINER SEE: Yes. 8 (EXHIBIT MARKED FOR IDENTIFICATION.) 9 MS. WILLIS: Is that Remand Exhibit? 10 MR. NOURSE: No, it's AEP Ohio Exhibit 11 101. And I would note -- your Honors, I would note 12 that the Global Settlement is attached to this 13 testimony, and that is marked Exhibit WAA-GS1, 14 because the Global Settlement that was filed in the 15 docket -- 16 HEARING EXAMINER SEE: Okay. 17 - - - 18 William A. Allen 19 being first duly sworn, as prescribed by law, was 20 examined and testified as follows: 21 DIRECT EXAMINATION 22 By Mr. Nourse: 23 Q. Mr. Allen, do you have the document we 24 just marked in front of you? 25 A. I do. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 31 1 Q. And was this your prefiled testimony 2 prepared by you or under your direction? 3 A. Yes, it was. Yes, it is. 4 Q. And do you have -- Let's go with typos 5 and corrections next, and then I want to ask you some 6 additional questions. 7 A. I have one correction on Page 9 in 8 Footnote 2. The value of $63.42 should be $63.92, 9 and that's consistent with the value in the testimony 10 on Line 10 above. 11 Q. Okay. Any other typos or corrections? 12 A. No. 13 Q. Okay. Thank you. I'd also like to 14 reference the -- with respect to the RSR, Retail 15 Stability Rider, provisions in this settlement that 16 are part of Paragraph 3A starting on Page 8. And in 17 connection with 3A-2, in the subparts there, A 18 through D -- A through F, actually, there are some 19 references to specific rates for specific customer 20 classes. Do you see that? 21 A. I do. 22 Q. And I note in Paragraph 2A on Page 9 23 that the GS1 customers have a 24-month period for 24 collection of the RSR going forward. Is that your 25 understanding? ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 32 1 A. Yes, it is. 2 Q. And is it your understanding that unlike 3 the other general service customer schedules dealt 4 with in Paragraph 2D at the bottom of Page 9 that 5 involve a two-block rate structure that's listed 6 there and carrying over on Page 10, does that apply 7 to GS1 customers? 8 A. No, it does not. In drafting the 9 settlement the single block rate for the GS1 10 customers was inadvertently omitted, but it was 11 shared with all the parties as we worked through 12 the -- through the settlement process. 13 The rate -- the single block rate that 14 would apply to GS1 customers is 5.63 mils per 15 kilowatt-hour, or equivalently 0.00563 dollars per 16 kilowatt-hour. And the rate impacts included as 17 Exhibit A to the stipulation include those single 18 block rates for the GS1 customers. 19 Q. Okay. So on Exhibit A to the 20 stipulation, Page 1 for the Ohio Power rate zone, 21 Page 3 for the Columbus Southern Power rate zone, 22 reflect the rate that you just read into the record? 23 A. That's correct. 24 Q. Okay. Thank you. I'd also like to ask 25 you a clarifying question on Page 16 of the Global ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 33 1 Settlement. 2 A. Okay. 3 Q. A couple questions here relating to 4 Paragraph G, the BTCR pilot program. And the -- the 5 BTCR pilot is available to signatory and nonopposing 6 parties, correct? 7 A. That's correct. 8 Q. So if we look at Paragraph G2 and some 9 of the references that are in G2 to signatory 10 parties, those references actually apply to both 11 signatory and nonopposing parties; is that correct? 12 A. That's correct. And the nonopposing 13 parties are also listed on Page 17 as participating 14 members in the BTCR, the pilot. 15 Q. And just to clarify further, the -- on 16 Page 17 of the settlement, the first two complete 17 sentences on that page contain references to the 18 signatory parties. 19 And would you agree that the intent and 20 meaning of the stipulation in those two sentences is 21 to also reference nonopposing parties? 22 A. Yes, that's correct. 23 Q. Okay. Thank you. And then finally I'll 24 ask you a couple questions about -- to clarify or 25 break out the residential component of three of the ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 34 1 aspects in the settlement. 2 I note that your testimony already talks 3 about the -- the residential share, so to speak, of 4 the $100 million payment. Do you recall that? 5 A. Yes, I do. 6 Q. And then similarly, can I ask you with 7 respect to the -- with respect to the payment that 8 would be made for the SEET cases, $20.3 million in 9 total, can you tell me the residential share for that 10 number? 11 A. The residential share of the SEET credit 12 would be approximately $6.5 million. 13 Q. And by extension, the nonresidential 14 share would be the balance of the 20.3? 15 A. That's correct. 16 Q. Okay. And then similarly, with the 17 Phase-in Recovery Rider adjustment that starts on 18 Page 10, in Paragraph B and carries over to Page 11, 19 that $97.4 million adjustment, can you break out the 20 residential share of that? 21 A. The residential share for residential 22 customers in the Ohio Power rate zone would be 23 approximately $27.8 million, with the residual 24 benefitting the nonresidential customers in the Ohio 25 Power rate zone. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 35 1 Q. And then finally, with respect to the 2 gridSMART Phase II in Paragraph E that starts on 3 Page 14, the agreement there calls for an allocation 4 to residential customers of 45 percent, which is less 5 than the allocation that was recommended in the prior 6 stipulation in that case. Do you recall that? 7 A. Yes, I do. 8 Q. And could you address the -- the 9 incremental value, if you will, of -- for residential 10 customers of that provision? 11 A. Sure. The total revenue requirement for 12 the gridSMART program as proposed by the Company was 13 approximately $260 million over seven years. 14 Under the initial location that the 15 company had proposed in what was included in the 16 stipulation, the residential share of that revenue 17 requirement would have been approximately $160 18 million. 19 Under the updated allocation of 45 20 percent included in this stipulation, the residential 21 share of that revenue requirement would be $115 22 million, approximately, resulting in a net benefit of 23 this settlement of $45 million as compared to the 24 stipulation that had previously been filed in the 25 gridSMART II case. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 36 1 Q. Okay. 2 MR. NOURSE: Thank you, Mr. Allen. I 3 have no further questions, your Honor. I'd move for 4 admission of AEP Ohio Exhibit 101, Mr. Allen's 5 testimony, including Exhibit WAA-GS1, the Global 6 Settlement. 7 HEARING EXAMINER SEE: Mr. Nourse, did 8 you want to mark the stipulation separately? 9 MR. NOURSE: It you'd like me to, I 10 will. 11 HEARING EXAMINER SEE: That would be -- 12 that would be nice, Mr. Nourse. 13 MR. NOURSE: If it pleases your Honors, 14 I'll mark the stipulation as Joint Exhibit 1. Thank 15 you. 16 (EXHIBIT MARKED FOR IDENTIFICATION.) 17 HEARING EXAMINER SEE: Now if I could 18 just teach my family that response. Sorry. 19 MR. NOURSE: I have the same problem. 20 HEARING EXAMINER SEE: Any 21 cross-examination for this witness, Mr. Pritchard? 22 MR. PRITCHARD: None. 23 HEARING EXAMINER SEE: Ms. Willis? 24 MS. WILLIS: No. Thank you, your Honor. 25 HEARING EXAMINER SEE: Ms. Cohn? ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 37 1 MS. COHN: No, your Honor. 2 HEARING EXAMINER SEE: Ms. Bojko? 3 MS. BOJKO: No. Thank you, your Honor. 4 HEARING EXAMINER SEE: Ms. Whitfield? 5 MS. WHITFIELD: No. Thank you, your 6 Honor. 7 HEARING EXAMINER SEE: Ms. Petrucci? 8 MS. PETRUCCI: No. Thank you. 9 HEARING EXAMINER SEE: Mr. Beeler? 10 MR. BEELER: No questions. Thank you. 11 HEARING EXAMINER SEE: Bench have 12 questions for Mr. Allen? 13 HEARING EXAMINER PARROT: A few. 14 - - - 15 EXAMINATION 16 By Hearing Examiner Parrot: 17 Q. Mr. Allen, if you could kindly turn to 18 Page No. 6 of what we just marked as Joint Exhibit 1, 19 the Global Settlement agreement. 20 A. I'm there. 21 Q. And this is the recital section of the 22 agreement, and I'm specifically looking at the 23 paragraph that addresses Case No. 09-872 and 24 08-973-EL-FAC. And this paragraph is talking about a 25 coal reserve in West Virginia. Do you see that? ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 38 1 A. Yes. 2 Q. And so it's referenced here in this 3 paragraph, but it's not -- the coal reserve isn't 4 referenced anywhere else that I could see within the 5 Global Settlement agreement. 6 So I just would like you to tell me what 7 the understanding is of the signatory parties with 8 respect to this coal reserve. 9 A. The understanding is that the 10 Commission's prior order to refund a portion of that 11 amount to customers will be the final value assigned 12 to that. It was my understanding that there was 13 still an open issue around the ultimate value. We 14 have accepted that this resolves all issues. 15 Q. Thank you. Let's turn the page, Page 7. 16 Same part of that stipulation, towards the top of the 17 page there it refers to the FAC dockets, and I'll 18 start just with case 11-5906-EL-FAC, and then there's 19 several other companion cases there. And 20 specifically, the paragraph is referencing that the 21 Commission selected Energy Ventures Analysis to 22 perform an audit of the fuel adjustment clause 23 mechanism for 2012, '13, and '14. Do you see where I 24 am there? 25 A. I do. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 39 1 Q. We had two separate audit reports that 2 we have marked today, one of which I believe 3 addressed audit years 2012 and '13, and then the 4 second addressed 2014. And within both those audit 5 reports EVA offered for the Commission's 6 consideration various recommendations. 7 A. That's correct. 8 Q. Same kind of question there. What is 9 the signatory parties' intention with respect to 10 those audit recommendations? 11 A. The parties' position is that the 12 stipulation resolves all of the issues included in 13 those recommendations. 14 Q. Okay. Thank you. And this is sort of a 15 followup to that. The Commission had also indicated 16 that EVA would be asked to perform a final 17 reconciliation audit, and it's my understanding that 18 in the 2014 audit report EVA indicated that it didn't 19 yet have enough information at hand, there were too 20 many open issues for it to be able to perform that 21 audit. 22 Same kind of question. What is the 23 signatory parties' intention with respect to whether 24 there's any type of final audit done of the fuel 25 clause mechanism? ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 40 1 A. The signatory parties' position is that 2 this settlement is the final resolution of that case 3 as well. 4 HEARING EXAMINER SEE: Are there any -- 5 with that, are there any objections to the admission 6 of Joint Exhibit 1? 101 -- or AEP Exhibit 101, 7 direct testimony of Mr. Allen? 8 (No response.) 9 HEARING EXAMINER SEE: With that, 10 Exhibit 101 and Joint Exhibit 1 are admitted into the 11 record. 12 (EXHIBITS ADMITTED INTO EVIDENCE.) 13 MR. NOURSE: Thank you, your Honor. 14 HEARING EXAMINER SEE: Thank you, 15 Mr. Allen. 16 (Witness excused.) 17 HEARING EXAMINER SEE: Ms. Willis. 18 MS. WILLIS: Thank you, your Honor. OCC 19 would call Michael P. Haugh to the stand. 20 HEARING EXAMINER SEE: Do you affirm 21 that the information you're about to give, Mr. Haugh, 22 is true? 23 MR. HAUGH: Yes. 24 HEARING EXAMINER SEE: Thank you. Have 25 a seat. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 41 1 - - - 2 Michael P. Haugh 3 being first duly sworn, as prescribed by law, was 4 examined and testified as follows: 5 DIRECT EXAMINATION 6 By Ms. Willis: 7 Q. Good morning, Mr. Haugh. 8 A. Good morning. 9 Q. Can you state your name and your 10 business address for the record, please? 11 A. Sure. Michael Haugh, my address is 10 12 West Broad Street, Suite 1800, Columbus, Ohio 43215. 13 Q. And by whom are you employed and in what 14 capacity? 15 A. The Office of the Ohio Consumer's 16 Counsel as the Assistant Director of Analytical 17 Services. 18 MS. WILLIS: At this time, your Honors, 19 I would ask to be marked as OCC Exhibit No. 3 the 20 direct testimony of Michael P. Haugh. 21 HEARING EXAMINER SEE: So marked. 22 (EXHIBIT MARKED FOR IDENTIFICATION.) 23 By Ms. Willis: 24 Q. Mr. Haugh, do you have what has been 25 marked as OCC Exhibit No. 3 in front of you? ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 42 1 A. I do. 2 Q. Can you identify that, please? 3 A. That's my direct testimony in the cases 4 covered in this hearing. 5 Q. And do you have any additions, 6 deletions, or corrections to that testimony? 7 A. No. 8 HEARING EXAMINER SEE: Your Honors, I 9 have a few clarifying questions for Mr. Haugh. 10 By Ms. Willis: 11 Q. Mr. Haugh, you testified that there are 12 benefits to the residential customer that flow out of 13 the settlement in this case; is that correct? 14 A. That is, yes. 15 Q. Can you identify and quantify those 16 residential benefits for me? 17 A. Sure. Taking Mr. Allen's testimony on 18 the stand previously, that comes out to approximately 19 $141.4 million in total benefits to residential 20 customers. 21 Then take away the payments for the 22 Retail Stability Rider, which is approximately $43.7 23 million, comes out to a net impact for the 24 residential class of $97.7 million, not taking into 25 account the BTCR, which the -- the costs for that are ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 43 1 unknown at this point. 2 MS. WILLIS: Thank you, Mr. Haugh. 3 That's all the questions I have, your Honors. We 4 would move for the admission of OCC Exhibit No. 3 5 subject to cross-examination. 6 HEARING EXAMINER SEE: Cross-examination 7 for this witness, Ms. Petrucci? 8 MS. PETRUCCI: No questions. 9 HEARING EXAMINER SEE: Ms. Whitfield? 10 MS. WHITFIELD: No questions. 11 HEARING EXAMINER SEE: Ms. Bojko? 12 MS. BOJKO: No, thank you, your Honor. 13 HEARING EXAMINER SEE: Ms. Cohn? 14 MS. COHN: No questions, your Honor. 15 HEARING EXAMINER SEE: Mr. Pritchard? 16 MR. PRITCHARD: No questions, your 17 Honor. 18 HEARING EXAMINER SEE: Mr. Beeler? 19 MR. BEELER: No questions. Thank you. 20 HEARING EXAMINER SEE: Mr. Nourse? 21 MR. NOURSE: No. Thank you. 22 HEARING EXAMINER SEE: Okay. 23 - - - 24 EXAMINATION 25 By Hearing Examiner Parrot: ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 44 1 Q. I'm just going to follow up the same 2 line of questioning I had for Mr. Allen. I believe 3 you were in the room for Mr. Allen's responses just 4 now. 5 I asked him some questions about the 6 signatory parties' intention with respect to the West 7 Virginia coal reserve, audit recommendations made by 8 EVA in the 2012 and '13 and the 2014 audit reports, 9 as well as final reconciliation audit. 10 Is your understanding of the signatory 11 parties' understanding consistent with Mr. Allen's 12 testimony? 13 A. Yes, it is. 14 HEARING EXAMINER PARROT: Thank you, 15 Mr. Haugh. 16 HEARING EXAMINER SEE: Okay. With that, 17 are there any objections to the admission of OCC 18 Exhibit 3? 19 MR. NOURSE: No, your Honor. 20 HEARING EXAMINER SEE: Hearing none, OCC 21 Exhibit 3 is admitted into the record. 22 (EXHIBIT ADMITTED INTO EVIDENCE.) 23 HEARING EXAMINER SEE: Mr. Haugh, you 24 may step down. 25 (Witness excused.) ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 45 1 HEARING EXAMINER SEE: Okay. So all of 2 the exhibits marked in the various cases covered by 3 the Global Settlement stipulation are admitted into 4 the record. 5 (EXHIBITS ADMITTED INTO EVIDENCE.) 6 HEARING EXAMINER SEE: With that, is 7 there anything else? 8 MR. KURTZ: Your Honor, one comment. As 9 noted on Page 22 of the stipulation, the parties 10 request, urge, a Commission order by February 28th, 11 so that the significant rate reductions and so forth 12 and benefits can start to flow by March 1. So I just 13 want to remind the Bench of that provision. 14 HEARING EXAMINER SEE: So noted. Thank 15 you. 16 MR. NOURSE: The same thing I was going 17 to note, your Honor, and just offer if there's 18 anything the parties can do to be helpful, such as a 19 proposed order or any kind of assistance you need, 20 let us know. We're ready to help. 21 MS. WILLIS: We are also prepared to 22 waive briefing. And we are I guess assuming there 23 would be no briefing. I would suggest that we would 24 recommend no briefing for this case, and allow it to 25 expedite matters and allow things to go forward. ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 46 1 HEARING EXAMINER SEE: I assume the 2 other parties are in agreeance? 3 MS. COHN: Yes. 4 MS. BOJKO: Yes. 5 MS. WHITFIELD: Yes. 6 MS. PETRUCCI: Yes. 7 MR. NOURSE: Yes. 8 MR. PRITCHARD: Yes. 9 HEARING EXAMINER SEE: Okay. If there's 10 nothing for -- briefs are waived, and if there's 11 nothing further, hearing is adjourned. 12 (Thereupon, the hearing was 13 concluded at 11:00 a.m.) 14 - - - 15 16 17 18 19 20 21 22 23 24 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481 47 1 CERTIFICATE 2 I do hereby certify that the foregoing 3 is a true and correct transcript of the proceedings 4 taken by me in this matter on Tuesday, January 24th, 5 2016, and carefully compared with my original 6 stenographic notes. 7 8 ___________________________ 9 Valerie J. Grubaugh, Registered Merit Reporter 10 and Notary Public in and for the State of Ohio. 11 12 13 My commission expires August 11, 2021 14 15 16 17 18 19 20 21 22 23 24 25 ARMSTRONG & OKEY, NC., Columbus, Ohio (614)224-9481