20240620Notice_of_Application_Order_No_36229.pdf

Office of the Secretary
Service Date
June 20,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ROCKY MOUNTAIN ) CASE NO. PAC-E-24-04
POWER'S APPLICATION FOR )
AUTHORITY TO INCREASE ITS RATES ) NOTICE OF APPLICATION
AND CHARGES IN IDAHO )
NOTICE OF INTERVENTION
DEADLINE
ORDER NO. 36229
On May 31, 2024, PacificCorp dba Rocky Mountain Power ("Company") applied for
authority to increase its Idaho jurisdictional revenue requirement by $92.4 million, or
approximately 26.8 percent. The Company proposes the first increase of $66.7 million, or 19.4
percent,take effect on January 1,2025,and a second increase of$25.7 million,or 7.4 percent,take
effect on January 1, 2026.
The Commission now issues this Notice of Application and sets deadlines by which
interested persons may intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company estimates its existing rates would
generate an overall return on equity ("ROE") of about 1.10 percent during the test year.' The
Company thus requests a revenue requirement increase of $92.4 millionan increase of
approximately 26.8 percent—with a ROE of 10.30 percent. The proposed increase is based on a
historical test year ending December 31, 2023, "adjusted for known and measurable changes
through December 31, 2024, except for net power costs ("NPC"), which is based on a forecast for
2025[.]"Application at 3.
YOU ARE FURTHER NOTIFIED that the Company's Application proposes the following
increases to customer rates by schedule:
Effective January 1, 2025 Effective January 1, 2026
Residential— Schedule 1 17.9% 5.3%
Residential— Schedule 36 19.2% 6.0%
'The approved settlement in the Company's most recent rate case did not address ROE,capital structure,or return on
rate base.See Order No.35277.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36229 1

General Service— Schedule 6 20.5% 6.8%
General Service— Schedule 9 18.6% 6.5%
Irrigation— Schedule 10 22.5% 6.8%
General Service— Schedule 23 19.9% 6.4%
General Service— Schedule 35 20.8% 6.9%
Public Street Lighting 6.7% 0%
Contract— Schedule 400 18.5% 6.5%
Overall Increase 19.4% 6.3%
YOU ARE FURTHER NOTIFIED that this change in rates represents an Idaho-allocated
revenue requirement of$361.9 million, including $12.4 million for liability insurance proposed to
be collected in a new Electric Service Schedule No. 92 —Insurance Cost Adjustment, plus $11.1
million to fund the Company's proposed Catastrophic Fire Fund through a dedicated surcharge,
Electric Service Schedule No. 193.Id.
YOU ARE FURTHER NOTIFIED that the Company asserts that net power costs ("NPC")
for 2025 are $2.382 billion on a total-Company basis and $136.7 million on an Idaho-allocated
basis. Id. at 4. The Company represents this increase is mostly caused by higher regional power
and natural gas commodity prices. Id.
YOU ARE FURTHER NOTIFIED that the Company requests approval to include the
incremental additions to its rate base, including Gateway South transmission line, Gateway West
Segment DI transmission line, Rock Creek 1 wind facility, and Foote Creek 1I, III, and IV and
Rock River I repowering projects, for a total Idaho rate base of approximately $1.1 billion. Id.
YOU ARE FURTHER NOTIFIED that the Company seeks approval to modify the Energy
Cost Adjustment Mechanism("ECAM")to replace the 90/10 sharing band for NPC variances with
a 95/5 sharing band. The Company asserts the"90/10 sharing band is outdated as it does not reflect
how the Company dispatched resources, the uncertainty in being able to accurately forecast NPC,
and the Company's plan to join the EDAM."Id.2
2 In support of its request to change the sharing band percentages the Company also asserts that the ECAM is not
consistent with similar net power cost mechanisms in comparable states.Id.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36229 2

YOU ARE FURTHER NOTIFIED that The Company seeks to remove the renewable
energy certificate ("REC") revenue adjustment from the annual ECAM calculation and instead
provide a new voluntary renewable energy credit option tariff and a new REC revenue adjustment
tariff.Id.
YOU ARE FURTHER NOTIFIED that the Company is requesting approval of an
Insurance Cost Adjustment ("ICA") that will recover the costs for excess liability insurance
through a separate surcharge. The Company claims that"separating recovery for this expense will
enable the Company to annually procure insurance for third-party liability using the most
economical combination of commercial insurance and self-insurance through a new Insurance
Mechanism that the Company is developing."Id. The Company is also "proposing a Catastrophic
Fire Fund framework that will facilitate creation of a multi-state risk pool for potential catastrophic
events where third-party liabilities are in excess of the Company's insurance coverage." Id. The
Company contends that "without the requested increase in revenues and proposals to address
wildfire liability, it will be increasingly difficult for the Company to maintain its utility
infrastructure and continue to provide adequate, efficient,just, and reasonable service to its Idaho
customers."Id.
YOU ARE FURTHER NOTIFIED that the Company's Application includes written
testimony from several witnesses and exhibits explaining and defending the calculation of the
Company's proposed rate increase.
YOU ARE FURTHER NOTIFIED that the Company asserts it is providing notice of the
Application to its customers through bill inserts, and in some instances through personal contact.
The Company is also issuing a press release to local media organizations and providing copies of
the Application on its website and at local Company offices.
YOU ARE FURTHER NOTIFIED that the Application and supporting documentation
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission's office. These documents are also available on the
Commission's website at www.puc.idaho.gov. Click on the "Electric" icon, select"Open Cases,"
and then click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case. As such, the Company's intrastate revenue requirement, and every component
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36229 3

of it, both rate base and expense, are at issue. The Commission may grant, deny, or modify the
revenue requirement requested and may find a revenue requirement different from that proposed
by any parry is just, fair, and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that all of the Company's retail rates and charges,both
recurring and non-recurring, including those of special contract customers, are at issue, and every
component of every existing and proposed rate and charge is at issue. The Commission may
approve, reject, or modify the rates and charges proposed and may find that rates and charges
different from those proposed by any party are just, fair, and reasonable. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or modify
existing or proposed relationships between and among rates and charges within, between, or
among customer classes or rate groupings and may approve,reject, or modify existing or proposed
relationships among and between customer classes or rate groupings.
YOU ARE FURTHER NOTIFIED that the Commission may abolish,reduce,or create rate
blocks or categories of rates and charges, abolish, create, or reduce components of rates and
charges,abolish,reduce,or create customer classes or rate groupings,and abolish,reduce,or create
absolute or relative differences among and between existing classes or rate groupings of customers.
YOU ARE FURTHER NOTIFIED that the tariffs,practices,rules,and regulations,service,
instrumentalities, equipment, facilities, classifications, and customer relations of the utility are at
issue, and the Commission may address any of them in its order.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the
Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code
and specifically Idaho Code §§ 61-501, -502, -507, -520, -523, and-622.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties' rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission's Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36229 4

Persons who wish to intervene as a party must file a Petition to Intervene no later than 21
days after the date of service of this Order. Such persons shall also provide the Commission
Secretary with their email address to facilitate further communications. After the intervention
deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties
and assigns exhibit numbers to each parry. Once the Notice of Parties has issued, Commission
Staff shall informally confer with the Company and any intervening parties about how to further
process this case and shall then report back to the Commission on a proposed case schedule.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties' rights of participation and cross-examination do not have to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following people are designated as the
Company's representatives in this matter:
Mark Alder Joe Dallas
Rocky Mountain Power Carla Scarsella
1407 West North Temple, Suite 330 Rocky Mountain Power
Salt Lake City,Utah 84116 1407 W. North Temple, Suite 320
mark.alderkpacificorp.com Salt Lake City Utah 84116
[e-mail]
carla.scarsella(apacificorp.com
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a
Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline
has passed, the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that,after the Notice of Parties has issued,Commission Staff
shall confer with the parties regarding a procedural schedule for this matter including,if necessary,
a hearing in this matter.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 36229 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20th day of
June 2024.
ERIC ANDERSON, PRESIDENT
/HNZ—R. HAMMOND JR., COMMISSIONER
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EDWARD LODGE, COMMISSIONER
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Commission Secretary
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NOTICE OF APPLICATION
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