108 Electric – Retail – Baltimore Gas and Electric Company 28. Small Generator Interconnection Standards Availability: For all residential and non-residential customers within the Company’s service territory seeking to interconnect energy generation resources to the electric distribution system. In accordance with COMAR 20.50.09: Small Generator Interconnection Standards, the Company has established protocols for the communication, metering, and interconnection with customers who are seeking to install a generation resource. This protocol will ensure the proper engineering and compliance with local, regional, and national codes. Cost: The Customer will be charged in accordance with interconnection levels as determined by COMAR 20.50.09. The following application fees apply: Level 1 - No charge; Level 2 - $50 plus $1 per kW of rated generating facility output; Level 3 - $100 plus $2 per kW of rated generating facility output; and Level 4 - $100 plus $2 per kW of rated generating facility output. Approval: After receiving a standard small generator interconnection agreement from the Company, the Customer will have the generation equipment installed and inspected by the local municipality. Upon receiving a certification of inspection from the municipality, the Customer will submit a certificate of completion to the Company. The company will then install the necessary meter equipment on the premises. The Company shall maintain a database to track the installation of new generation resources within the service territory and will submit reports to the Commission in accordance with COMAR 20.50.09. 29. Reserved for Future Use P.S.C. Md. – E-6 (Suppl.564) Filed 04/29/15 – Effective 06/01/15 Baltimore Gas and Electric Company – Electric – Retail 109 30. Demand Resource Surcharge Distribution Customers receiving service under Schedules R, RL, G, GU, GS, GL P, or T are subject to a Demand Resource Surcharge. This Surcharge recovers the Contract for Difference payments and associated incremental costs incurred through the issuance of Requests for Proposals (Gap RFPs) as provided in Maryland Public Service Commission Order No. 82511 in Case No. 9149, issued March 11, 2009. The Gap RFP secures a demand response resource commitment for the June 1, 2011 through May 31, 2016 power planning years with a two-year extension provision (June 1, 2016 – May 31, 2018). Contracts awarded through the Gap RFP are structured as a Contract for Differences, where the contract price of the demand response resource is compared against the PJM Reliability Pricing Model clearing price and actual delivered capacity for each power planning year. This difference, along with any approved incremental costs, determines the total annual Surcharge amount. Once the annual Surcharge amount is determined, it is allocated proportionately based on each Schedule’s Peak Load Contribution to the total peak load. A rate per kilowatt-hour is then derived based on each Schedule’s forecasted sales for the planning year. Any imbalance between the actual costs and Surcharge amount shall be reconciled annually over the subsequent planning year. A final, one-time reconciliation shall be conducted upon termination of all Gap RFP contracts. The current Demand Resource Surcharges are available on the BGE website at www.bge.com. 31. Electric Reliability Investment Initiative Charge The Electric Reliability Investment (“ERI”) initiative Charge recovers certain expenditures approved during Case No. 9326, Order No. 86060 or during future compliance filings. Calculation of Charge The ERI initiative Charge is calculated annually and is determined for each rate schedule by first allocating the revenue requirement (based on Eligible Costs as defined below) based on the NCP hourly peak loads (34 kV level) for each Schedule approved during Case No. 9326 in Order No. 86060 or any subsequent base rate case during the existence of Rider 31. The resulting amounts, plus any true-up amounts as determined below, are then divided by the estimated per kilowatt-hour billing determinants for each applicable Schedule. Details concerning the calculation of the ERI initiative Charge are filed with and approved by the Commission prior to their use in billing. The ERI initiative Charge shall be separately stated on the Customer’s monthly electric bill. (Continued On Next Page) P.S.C. Md. – E-6 (Suppl. 544) Filed 04/21/14 – Effective 06/01/14 110 Electric – Retail – Baltimore Gas and Electric Company Rider 31 continued Rate Schedule Rate R RL G/GU GS GL P $0.00018 $0.00014 $0.00016 $0.00006 $0.00014 $0.00014 per kWh per kWh per kWh per kWh per kWh per kWh Eligible Costs The revenue requirement for the ERI initiative Charge is based on eligible costs incurred by the Company associated solely with ERI initiative projects filed and approved by the Commission each year. They include the following categories: a) Depreciation and amortization, b) Operation and maintenance costs, c) Earnings on the net investment as determined by applying the Company’s most recent Electric authorized rate of return, adjusted for taxes, to the average investment balance net of deferred taxes, and d) Applicable taxes. True-up An annual true-up will be conducted to include: a) For each rate schedule, the Imbalance is the difference between cumulative costs eligible for recovery and revenues collected through the ERI initiative Charge each year. The estimated Imbalance includes the actual data available and 3 months of estimated data. An Imbalance is debited or credited against the costs eligible for recovery each year. During its disposition, an Imbalance accrues a return at the Company’s most recent authorized electric system rate of return. Such rate is adjusted for taxes, when the Imbalance represents an under-collection of costs to the Company. P.S.C. Md. – E-6 (Suppl.569) Filed 11/02/2015 – Effective 01/01/2016