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STATEOF SOUTH(CaptionCAROLINA)))))))))))))of Case)Re:ApplicationLLC,of Chem-Nucleara subsidiaryAdjustmentCostsCostsof EnergySolutions,in theandSystems,Levelsforof Allowablefor Identificationof AllowableBEFOREPUBLICTHESERVICECOMMISSIONOF SOUTHCOVERCAROLINASHEETDOCKET2000 . 300 - ANUMBER:(Please type or print)Submittedby:RobertAddress:T. demandedFax:803-753-3219Other:herein neither replacesfor use by the Public ServiceDOCKETING[]747803-799-980011390containedas required by law. This form is requiredbe filled out completely.Number:Telephone:29211The cover sheet and informationBarin petitionEmail:[email protected] supplements the filing and service of pleadingsCommissionof South CarolinaINFORMATION[]Requestone)(Checkfor itemNATUREto be placedfor the purposeof docketingand mustall that apply)on Commission'sOF ACTIONor other papers(Checkall ]Motion[]Request for n[]Resale etition[]Resale r titionfor Rulemaking[]Response[]Railroad[]Comments[]Petition for Rule to Show n[]Telecommunications[]Consent[]Petition to Intervene Out of 99860vlReviewOrderConsiderationto InterveneTestimonyOrderfor CertificationLetterto Discoveryto Petition

MCNAIRROBERTATTORNEYST. BOCKMANbbockman@mcnair,LAWFIRM,AND COUNSELORSnetwww.P.A.AT LAWrncnair.netPOSTBANK OF AMERICATOWER1301 GERVAISSTREET('OI 201SeptemberThe BOX11390CAROLINA27, 2007L.A. Terreniand AdministratorPost OfficePublicServiceCommissionBox 11649"Columbia,29211(803)799-9800(803) 753-3219SouthRE:Carolina329211Applicationof Chem-NuclearSystems,LLC, a Subsidiaryof Energy(SCPSC Docket No. 2000-366-A)(FY 2007-2008Proceeding)Solut ,6nsDear Mr. Terreni:NuclearPlease find enclosed for filing the original and ten (10) copies of the Applicationof ChemSystems, LLC, a subsidiaryof EnergySolutions,for Adjustmentin the Levels of AllowableCosts and for Identificationof AllowableCosts for Fiscal Year 2007-2008.We are filingApplicationin accordancewith S.C. Code Ann.§ 48-46-40(B)(4)(Supp.2006)andCommission'srules of practiceand procedure.thetheAs the Certificateof Service to the Applicationindicates,we have formally served a copy ofthe Applicationon those parties which S.C. Code Ann. § 48-46-40(B)(9)(Supp. 2006) designatesasparties to this proceeding.By copy of this letter, we are providinga copy of the Applicationto theappropriateofficials of the AtlanticCompactCommissionand the South CarolinaDepartmentofHealth and EnvironmentalControl which Section 48-46-40(B)(9)designatesas discretionaryparties,and we are providinga copy to the Chief of Staff of the Office of RegulatoryStaff.Shouldyou haveany questionswith respectto this filing,pleasedo not hesitateto contactme.Very truly yours,RobertT. BockmanEnclosuresMr. Dan F. ArnettCC:The HonorableFlorenceMax K. BataviaP. Belser,EsquireFrank R. Ellerbe, III, EsquireThe HonorableC. Earl HunterThe HonorableHenryD. McMasterHana Pokorna-Williamson,EsquireThe HonorableFrank W. ARLOTTE COLUMBIA GEORGETOWN*GREENVILLE*HILTONHEADISLANDMYRTLEBEACH RALEIGH

?BEFORETHE PUBLICSERVICESOUTHDocketIn Re:Applicationof Chem-NuclearCOMMISSIONOFNo. 2000-366-ASystems,and for Identification CAROLINA)LLC, a subsidiaryof EnergySolutions,Adjustmentin the Levels of AllowableCosts, -for ))of AllowableAPPLICATION)Costs)( for Fiscal Year 2007-2008))Pursuantto theNuclearSystems,submitsthis tylocatedwhichit requestsshowunto this honorableInterstateLow-Levelcodifiedas S.C. torof operatingto costsdeterminedwith facilityin thecosts"in thelevelsvicinity' 99 3( vl(Supp.("Chem-Nuclear"of certain"allowableSouthin this proceeding2006),Chem-or the "Company")of its regionalof Barnwell,theRadioactiveAnn.GovernorWaste§§ 48-46-10,48-46-40(B)(1)of the48-46-30(1)a regionalby standardCompactcosts"low-levelCarolina.andfor theradioactiveIn supportChem-Nuclearof thewouldrespectfullyCarolinasignedthe AtlanticAct"Act").disposalActa wablecosts"Underpracticesoperations."(theTheAct isCommission"toas amended.authorizesfacility."accountingof SouthImplementationet seq. (1976),for operatingSectionof the StatePage 1 of 13COLUMBIA§ 48-46-40(B)(4)Commission:6, 2000,costsAnn.for the operationby its ApplicationOn JuneCodeof EnergySolutions,"allowablerelief1.a subsidiaryfor adjustmentof certaindisposalof S.C.wasteas "coststhat definition,and regulatorythedisposalto a disposalsuch costsfindingsfacility"areinsitelimitedto be associated

3.Sectionof vitiesThatSectionwiththat "allowablenecessaryalso providesdisposalcosts"expresslyincludethe costsin the operationof a abledeterminedby[theincludeotherCommission]to beallowable."4.Chem-Nuclear"Facility")in Barnwellto identifythe "allowable5.whichThethe g. 61-63April(TitleBIA89983I(thehas the authorityof approximatelyleasessite includestrench097")235from the Southareasareas,("DHEC")hasLicenseof waste28,renewalLaw2000,for variousancillaryof LicenseA) (Supp.Facilitythe Southauthorizedat theforthereceipt,097 containsFacility.renewalof LicenseCourt.atby which097,The erandtechnicalCompany097.decision097, the Facilityis subjectto irmedappellateare endingDHEC'sSouthCarolinanumerousof Licenseandunderis currentlyPage 2 of 13('O[,L'Mconsistingoperations("Licenseat the Facility.of theto the requirementsS.C. Code097itsfor managementonpotentialfacilityof the Facility.the CompanyThe 235-acredisposalareas.Controlwasteto DHECrecommendedSouthLicenseof landwastethe Commissionoperationand whichtrenches,zoneEnvironmentalandownsareas and bufferHealtha tract(the sequently,for the Company'sCarolinaCompanylow-levelCarolina.is locatedBoardRadioactiveanda regionalSouthcosts"of SouthcompletedmanagementCounty,Facilityand Controlincludingoperatesanstaffby thereview.regulationsInin 24Ato the provisions

of sCommissionadoptedmostan agreement7.No.On aslost duringas hroughits ownsite may(Supp.applyidentifiedrequiresfor theStatesregulationsin SCPSCcategoriescategories.June30, 2007.2006)providesDocketof "allowableOrderNo. 2007-418the sum of 7,859,163The Orderfor totalalso approvedcosts."yearUponto authorizeto compensateof a lowof "allowableyear and for identificationCommissionfiscalthat an operatorin the levelsas "allowableof costsapprovalthethecosts"thatof suchsite operatorsiteoperatortoforyear.of this Applicationof the nfor adjustmentsfor the previousthe previousNo. 2007-418and identifiedendingapprovedand its Exhibits,in OrderNo.to the Collaborativethe Company2007-418,Reviewwhichhas used the costwereof the Company'sbasedon theOperationsandPlan ("OEP").Duringthe Company'srecently(12) monthsendingJunethe Company'sthat the Commission30, 2007),identifiedin OrderconcludedNo. 2007-418Page 3 of 13['MBIAthe Unitedcosts.previouslycosts"its Orderwithin10.('()lwhichin 10 CFR Part 61, and whichthemidentifiedcosts"§ 48-46-40(B)(4)disposalFor the purposescategoriesenforcesissued(12) months48-46-40(B)(4)"allowable9.andallowablehas f "allowableAnn.wastethat the Commissionapplication,thefor variableS.C. CodeCommissionoriginallythe CommissionOrder,of 209,766level radioactiveof Radioactiveprovisionscosts for the twelvecosts8.the7, 2007,identifiedfixed allowable("NRC")of thoseIn thatcertainDisposalwith the NRC.2000-366-A.costs"for Land899836IFiscalactualYear"allowablefor fixedcosts2006-2007costs"were(i.e., the twelvein those 8,677,764.categoriesBy this

Application,coststheCompanyfor FiscalfixedcostYear 2006-2007components40(B)(4).requeststheto permitidentifiedConsequently,Commissionthe Companyin Orderthe Companyto approveNo.levelsto be compensated2007-418,proposestheasan adjustmentof fixedallowablefor thoseallowableauthorizedbyof 818,601Section48-46-for allowablefixedcosts in this Application.11.irregularWithcosts, 570,460.theThetotal allowableCompanyrespectlaborCompanyincurredthe variabletheTherefore,theactualcostratesnumberto costsNo. 2007-418costsactuallyforFiscalin Orderas2006-2007ofexceededNo. 2007-418.as thecharacterizedYearexperienced 360,694are 19,859variablethe Companycostswhichareless thanby theunitsthatthe costsexperiencedNo.uponof variableCommissiondoes not requestOrderdependentin the categoryidentifiedofOrderirregularthe CompanyCommissionwhichthe levelConsequently,adjustmentforoftheallowableYear 2006-2007.respectandYear 2006-2007usingthatWithwhichcoststotalcosts of 209,766for bleCompanyirregularrequestsirregularto those2007-418volumeslaboridentifiedandinFiscalany adjustmentsof wastenon-laborby Orderin that Ordercharacterizedlaborthein FiscalNo. 2007-418,2006-2007for variableburied,costsfor categoriesYearasusingof wasteforeachandrate.and non-laborcostsin this Application.13.Withratesfor each typeeachtypeof wasteCompanycalculatedCompany'sactualrespectto vaultof wasteactuallya totalexperiencecosts,disposedburiedcostOrderNo. 2007-418at the Facility.in routineforroutinein FiscalYearUMBIA8998 6vlvaultsvaults2006-2007,Page 4 of 13COlBy ratesin FiscalofCompanycostto the volumesYear ea costof

1,551,381.73 163,674for an adjustmentoffor vault costs in this Application.14.TheadjustmentsCompanyhas attachedand identificationof theto this Applicationthreethree(3) categories(3) Exhibitspertainingof "allowablecosts"in detailCompany'sto thefor its disposaloperations.15.ExhibitadjustmentsAto thisfor the recoveryto reflectthe differencesof its actuallybetweenthe leveland the level of the Company'sprovidesExhibitYear 2006-2007,17.CompanyorganizedC erialIrregularof this egularfixedratesL MBIA899836Year 2006-2007.whichcostsNo. 2007-418ExhibitA alsoNo. 2007-418.the Companyincurredand variablefor FiscalYear2007-2008.Companycosts,Year2007-2008the descriptionstandardin Exhibitrequestsin Fiscallaborthat are knownC. The costscosts"accountingpracticesReviewin Exhibitdependentof "allowablecost rates that theidentificationas depictedwasteC.ratesand amountsin Sectionandas "allowableExhibitareC alsofor Fiscaland measurableof the OEP as the Commissionin this Docket.1in OrdercostsPage 5 of 13('O1and irregularirregularand variableas specifiedbyidentifiedin Ordercostsvariableproposednumber.as allowablecostin Fiscalcontainedtheof the CollaborativeNo. 2004-349werethefor fixed,costs"costsand approvalcosts for Fiscalwithof"allowable2007-2008,are 242,000,C are consistenttheyYeara total of 9,466,394coststhe total fixed costs,for identificationFiscalincurredthe actualby projectdescribesincurredcosts whichB describesExhibit18.costs"actuallythe rates for variable16.ApplicationYearat the timein thin Order

WHEREFORE,respectfullyprays1.unto this honorableTo review48-46-40(B)(4)A for ngasubsidiaryand issuethe levelsand identifyingand identifyingLLC,ofEnergySolutions,Commission:the Company'sYear 2006-2007,Year 2006-2007,Systems,as "allowableits Order,of "allowablethe levelscosts"costs"of irregularthosecostsunderS.C. Codeas depictedAnn.in Exhibitcostsin ExhibitB for Fiscaldepictedin ExhibitC for FiscalYear 2007-2008.2.For such otherand furtherreliefas is just and proper.RespectfullyRobertsubmitted,T. BockmanMcNair Law Firm, P.A.Post Office Box 11390Columbia,(803)AttorneysSeptember27, 2007Columbia,SouthCarolinaPage 6 of 13COlIIMBIA89983(ISouthCarolina29211799-9800for Chem-NuclearSystems,LLC§

EXHIBITFISCALFixed Costs:A:YEAR 2006-2007 818,601COSTSAdjustmentProposedFixed costs, subject to a 29% operating margin, were incurred in fiscal year 2006-2007 in the generalcategories of labor-related costs, non-labor costs, costs allocated from corporate functions, equipmentleases and support, depreciation and insurance. Fixed costs, not subject to a 29% operating margin, wereincurred in fiscal year 2006-2007 in the general categories of employee retention compensation,legal(license appeal) and intangible asset amortization. The following table compares the actual costs incurredto the costs identified as allowable in Commission Order No. 2007418:CommissionOrderNo. 2007418ActualCostsIncurredinFY 20062007Labor and Fringe 3,170,000 2,751,908Non-Labor 1,232,000 889,656 1,245,272 2,731,782 400,000 631,983Depreciation 225,000 229,334Insurance 787,254 650,043 7,059,526 7,884,706Employee retentioncompensation 99,637 68,061Legal (license appeal) 75,000 99,997Intangible assetamortization 625,000 625,000Subtotal (Fixed Costnot subject to 29%margin) 799,637 793,058 7,859,163 eases andSubtotal (Fixed Costsubject to 29% margin)Total Fixed CostsAdjustmentProposed 818,601The actual Fixed Costs incurred during fiscal year 2006-2007 were 8,677,764. This amount is 818,601more than the amount identified in Order Number 2007-418. Therefore, an adjustment of 818,601 isrequested in this category of costs.Page 7 of 13('OI.UMBIA8998361

VariableVariableCosts:Labor and Non-LaborCosts:No AdjustmentProposedCommission Order No. 2007-418 identified the following categories of rates for projecting VariableLabor and Non-Labor costs: vault purchase and inspection (per vault), ABC waste disposal (pershipment), slit trench operations (per slit trench offload), customer assistance (per shipment), and trenchrecords (per container).The following table illustrates the Variable Labor and Non-Labor costs that would be calculated using theVariable Labor and Non-Labor rates identified in Order No. 2007-418 and the number of units in eachcategory.UnitsVault Purchase & Inspection(per vault)284ABC Waste Disposal(per shipment)(total shipments, less slittrench shipments, lessirregularproject 71 .'72CalculatedCost 20,368.48266 1,009.56 268,542.9637 9,975.32 369,086.84303 264.67 80,195.01627 56.43 35,381.61shipments)Slit Trench Operations(per slit trench offload)CustomerVariable CostRate in OrderNo. 2007-418Assistance(per shipment)Trench records(per container)Total Projected Variableand Non-labor CostLabor 773,574.90The actual Variable Labor and Non-Labor costs experienced in the disposal of waste in fiscal year 20062007 resulted in a Total Variable Labor and Non-Labor Cost of 753,'716. This amount is 19,858.90less than the amount that would have been anticipated based on rates provided in Commission Order2007-418. Therefore, Chem-Nucleardoes not request an adjustment in this category of costs.Page 8 of 13COl[JMBIA8998361

Vault Costs: 163,674.50AdjustmentProposedThe following table illustrates the vault costs that would be calculated using the Variable Cost ratesidentified in Commission Order No. 2007-418 and the volumes of waste received in each respectivecategory.VolumeBuriedVariable CostRate in Order(cubic feet)No. 2007-418CalculatedCostClass Aaste11,477.05 35.00 401,696.75Class Baste11,013.78 36.72 404,426.00Class Cste8,555.52 36.15 309,282.05Slit Tren a waste2,126.20 128.07 272,302.43Irregularvaults as1,304.20N/AN/A3,130.00N/AN/Aomponents (inn irregular cost)Irregularomponents(RPV not in a vault)Total Vault CostTotalume 1,387,707.2337,606.74Tile total cost incurred for routine disposal vaults used during fiscal year 2006-2007Therefore, Chem-Nuclearrequests 163,674.50 adjustment in this category of cost.Page 9 of 13C()I.('MBIA89983(,;1was 1,551,381.73.

IrregularCosts: 360,694AdjustmentProposedThe followingtable summarizesthe Irregularcosts incurredin fiscal yearprojects.Exhibit B providesadditionaldescriptionsof each of these irregularincurredin fiscalyear2006-2007,as Irregularin CommissionOrder No. 2007-418 360,694increase in Irregular Costs.Costs,of 209,766.were izedbyThe total coststo the amountthereforerequestsidentifiedan adjustmentofBasis ForOrderAmountActualFY 06-07LaborActualFY 06-07Non-Labordar Component Disposal: 24 tie bolt boxes fromNorfolk Naval Shipyard, one shield from the PARRreactor, and the Reactor Pressure Vessel from DairylandPower 40,000 13,148.58 153,304.82 166,453.40Various Trenches (design, construct, and backfill):Trench 86, Trench 94, Trench 97, Slit Trench 29, SlitTrench 30, Slit Trench 31, Slit Trench 32, Slit Trench 33,and lit Trench 34. 60,000 67,685.99 113,595.8715181,281.86 14,766 548.57 1,286.99 1,835.56 18,314.25 1,484.58 19,798.83 41,003.40 12,497.26 53,500.66 29,843.78 6,681.30 36,525.08 41,652.60 2,348.56 44,001.16 840.80 22,848.27 23,689.07 1,348.93 8,781.66 10,130.59 15,000 16,715.30 16,528.28 33,243.58 209,766 231,102.20 339,357.59 570,459.79Irregularntaminationand CorrectiveDeep Well & MonitoringSiteCostmgineeringItemActionsWell abandonmentand DrawingUpdates 60,000llaneous Irregular Costs (Clay Cap EvaluationTrench 86, Fertilize Multi-layer Caps)LicenseRelRenewaland Appealcosts 20,000irs to Laboratoryased SecurityControlsOther Irregular costs (Waste TrackingDatabase Software, Site Assessments,sup[ rt)Total IrregularCostsSpecial Requests,and B&CB staffPage 10 of 13COLUMBIA89983(} ITotal CostFY 06-07

EXHIBITU.B:FISCALPROJECTNUMBERSYEAR 2006-2007 IRREGULARORGANIZEDBY nCOSTSNAME AND EXPLANATIONSand CorrectiveActions(Labor 548.57 and Non-labor 1,286.99)Includes costs related to decontaminationefforts and correctiveactions thatwere required as a result of waste received for disposal. During fiscal year2006-2007,costs incurred in these projects, although irregular and nonrecurring in nature, were within the scope of waste disposal operations work.188004.8001Site Engineering & Drawing Updates(Labor 41,003.40 and Non-labor 12,497.26)Labor and contractor costs for site engineering support and preparation andreproduction of site drawings. The engineering support and drawings wererequired for various analyses and reports submitted to SC DHEC.Included in this project in fiscal year 2006-2007 were three primary tasks: (1)design package updates tbr concrete disposal vaults, (2) Site drawing andcapacity updates, and (3) custom vault design review.188007.8001Irregular ComponentDisposal(Labor: 13,148.58 and Non-labor 153,304.82)Non-routine operations. Includes costs associated with disposal of items thatinvolve unusual handling requirements.Included are waste receipt andinspection, preparations to offload the shipping container or vehicle, placementof the irregular component in its disposal vault, disposal, survey andtransportation vehicle release and closeout. Irregular components disposed of infiscal year 2006-2007 included twenty-four boxes of components (Tie Bolts)from Norfolk Naval Shipyard; one box containing a shield from the PARRreactor decommissioningproject; and a Reactor Pressure Vessel from theDairyland Power plant at Lacrosse, WI. The amount billed to the customer fordisposal of these irregular components was over 2,000,000.188000.8007188000.8009Deep Well Abandonmentand Monitoring Well Abandonment(Labor 18,3114.25 and Non labor 1,484.58)Labor and contractor costs associated with abandonment of three deepenvironmental monitoring wells are included here. Also included are costs forabandoning twelve other environmentalmonitoring wells.188000.8008188004.8002MiscellaneousIrregular Costs (Trench 86 Clay Cap Evaluation and Multilayer cap fertilizer)(Labor 29,843.78 and Non-labor 6,681.30)Costs associated with work to evaluate the initial clay cover over waste inTrench 86. This evaluation includes survey for depth of cover, rework the claycap as required and installation of earthen berms to divert rain water. Alsoincluded here are costs for fertilizing multi-layer caps installed over completeddisposal trenches.Pagellofl3('()LUMBIA89'986' I

PROJECTNUMBERS188008.8001PROJECTNAME AND EXPLANATIONSIncreased Security Controls(Labor 1,348.93 and Non-labor 8,781.66)Costs associated with personnel and physical security enhancementsby SC DHEC to implement increased controls at the disposal site.as 01.8024Various Trench Constructionand Backfill Operations(Labor 67,685.99 and Non-labor 113,595.87)Trench construction activities in fiscal year 2006-2007 included design,construction and backfill (including use of free flowing sand where applicable)in Trench 86, Trench 94, Slit Trench 25, Slit Trench 26, Slit Trench 27, SlitTrench 28, Slit Trench 29, Slit Trench 30, Slit Trench 31, and Slit Trench er Irregular Costs (Waste Tracking Special Requests, Waste TrackingDatabase Software, Site Assessments, and B&CB Staff Requests)(Labor 16,715.30 and Non-labor 16,528.28)Included here are costs for specific special requests for waste disposal data fromgenerators, regulators and others acting in official capacities. Also included arespecial projects related to site performanceas directed by SC DHEC. Generallythese projects are related to regulatory or technical site performance.952183.8002Repairs to Barnwell Environmentaland Dosimetry Laboratory (BEDL)(Labor 840.80 and Non-Labor 22,848.27)Repairs to the BEDL in fiscal year 2006-2007 included replacement oflaboratory bench ventilation/fumehood, replacement of an air conditioning unit,roof leak repairs/resealing,and roof walkway 000.8010Appeal DHEC License, License Administration,SC AdministrativeLawCourt Order Implementation,and Alternate Trench ConstructionDesign(Labor 41,652.60 and Non-Labor 2,348.56)Non-routine activities by licensing department and others related to the appealprocess for the DHEC radioactive materials license renewal. Included here arecosts for CNS labor Legal expenses are included in fixed costs. Also includedhere are costs for implementingactions directed by the Administrative LawCourt Order related to the appeal of the license renewal.Page 12 of 13COL[YMBIA899 3(1

FISCALEXHIBIT C:YEAR 2007-2008We propose the following amounts be identifiedas allowableCOSTScosts for fiscal year 2007-2008:FIXEDFixed Costs to which 29% operatingCOSTSmargin is addedLabor and FringeNon-Labor 2,900,000 1,000,000Corporate AllocationsFees/G&A)Depreciation(Management 2,827,394 230,000 680,000InsuranceEquipmentLeases and SupportFixed Costs to which 29% operatingIntangible Asset AmortizationEmployee Retention CompensationLegal Support (license 654,000margin is not added 625,000 500,000 50,000appeal)Total FixedCosts 9,466,394IRREGULARCOSTSTrench Construction 60,000License AppealCorrective Action 20,000 2,000Site Engineering DrawingIrregular ComponentsMiscellaneous 50,000 40,000 40,000TotalIrregularCosts 212,000VARIABLEVariableLabor and Non-LaborCOSTSRatesVault Purchase and Inspection (per vault)ABC Waste Disposal (per shipment)Slit Trench Operations (includes laundry costs) (per slit trenchoffload)Customer Assistance (per shipment)Trench Records (per container) 116.06 1,128.34 8,412.28 295.26 73.81Variable Material Costs (Vault) based on actualfiscal year 2006-2007 rates plus supplier cost increaseClass A Waste (per cubic foot)Class B Waste (per cubic foot) 42.85 43.05Class (7 Waste (per cubic foot)Slit Trench Waste (per cubic foot)Page 13 of 13('()L[TMBI899836vl 43.09 138.88

BEFORETHE PUBLICSERVICEOF SOUTHDocketCOMMISSIONCAROLINANo. 2000-366-A, l.',IN RE:Applicationof Chem-NuclearLLC, a SubsidiaryAdjustmentSystems,)Solutionsfor )of Allowable)of Energyin the LevelsCosts and for Identificationof AllowableCostsCERTIFICATE:))"OF SERVICE)I, YvonneM. Sodowsky,Applicationo f Chem-Nuclearby causingsaid copiesprepaidand addressedColumbia,Esquirethat I havethis date servedLLC for FY 2007-2008with the UnitedStatesPostalPost Office29250-5757Columbia,The nceEsquirePostOfficeColumbia,W. FuscoCarolina260029211& Moore,Carolina29211C. Earl HunterPPC29202South Carolina29201FlorenceP. Belser, EsquireOffice of General CounselSouthBox 944SouthCarolinaPost 9Carolin2.69211odowsky1VIM AIRLAW FIRM, P.A.Post Office Box 11390Columbia,South Carolina(803) 753-31319September27, 2007Columbia,SouthCarolinaBoardBull StreetColumbia,III, EsquireMcFaddenand ControlSCDHECOffice of RegulatoryStaffPost Office Box 11263RobinsonMcMaster29211South CarolinaCommissionerR. Ellerbe,first class postageDarganSouth CarolinaThe HonorableFrankof recordBox 11549Mr. Dan ArnettSouthHenrySouth Carolina BudgetPost Office Box 12444South CarolinaColumbia,Service,partiesAttorney GeneralState of South CarolinaCommissionP. Belser,one (1) copy of theupon the followingThe HonorableMax K. BataviaAtlantic Compact1201 Main StreetSuite 826certifyas follows:South CarolinaThe HonorableSystems,to be depositedHana Pokoma-Williamson,Acting Consumer AdvocateState of South CarolinaPost Office Box 5757Columbia,do hereby29211)

40(B)(4). Consequently, the Company proposes an adjustment of 818,601 for allowable fixed costs in this Application. 11. With respect to those allowable costs which Order No. 2007-418 characterized as irregular costs, the Company incurred tot