HomeMy WebLinkAbout20241009Notice_of_Suspension_Order_No_36350.pdf Office of the Secretary
Service Date
October 9,2024
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 SUSPENSION
AND CHARGES IN IDAHO )
ORDER NO. 36350
On September 13, 2024, Commission Staff("Staff')moved for an order suspending for 60
days the January 1, 2025, proposed effective date for the rate increases proposed by Rocky
Mountain Power, a division of PacifiCorp ("Company") in this case. Staff argued that the slow
pace of discovery and difficulty calendaring a technical hearing constituted good cause for the
suspension.
On September 20, 2024, the Company answered Staffs motion, challenging the assertion
that good cause existed for a suspension. Specifically, despite acknowledging delays in some of
its discovery responses, the Company cited the substantial number of production requests Staff
propounded(nearly 2,000 in a month and a half if sub-requests are counted)and that the extensions
it sought were to maintain accuracy and confidentiality of responses. Additionally, the Company
asserted that it should not be financially penalized for the difficulty scheduling a technical hearing,
alleging that each month of delay in implementing new rates beyond January 1, 2025, would cost
the Company around$2 million.
Staff and the Company presented their positions to the Commission at the Commission's
September 24, 2024, Decision Meeting.
Having reviewed the record,the Commission issues this interlocutory order suspending for
good cause shown the January 1, 2025, effective date for the Company's proposed rate increases.
Additionally, if a final order addressing the Company's request to increase rates does not issue on
or before January 1,2025,the Company is authorized to record a regulatory asset for later recovery
in the amount of the revenue requirement increase the Commission ultimately grants as more fully
described below.
COMMISSION FINDINGS AND DECISION
The Commission has authority to suspend the proposed effective date of any new rate. See
Idaho Code § 61-622. After initially suspending a new rate for 5 months and 30 days, the
NOTICE OF SUSPENSION
ORDER NO. 36350 1
Commission may extend the suspension by an additional 60 days for good cause shown. Id. Any
further suspension must be with the written consent of the party proposing the rate increase. Id.
In any general rate case, ample input from Staff and all other parties is crucial for the
Commission to properly evaluate whether a proposed rate increase is just and reasonable. The size
of the rate increase proposed in this case(an overall increase of almost 26 percent over two years),
makes this input even more important.
Additionally, calendaring a technical hearing to evaluate the testimony and
recommendations of the parties is important. Currently, there are three significant rate cases
pending before the Commission in addition to other matters that demand this Commission's time
and attention. If this case does proceed to a full technical hearing, we must ensure that the parties
have adequate time to prepare for it while also leaving sufficient time for the Commission to
deliberate and issue a final order before any proposed effective date for new rates. Consequently,
we End that the combination of the slow progress of discovery combined with the difficulty in
calendaring viable technical hearing date(s)constitutes good cause to suspend the January 1,2025,
effective date of the Company's proposed rate increases for a period of 60 days.
However, we are sensitive to the financial difficulty this suspension could impose on the
Company. Consequently,we find it fair,just, and reasonable to authorize to Company to record as
a regulatory asset the revenue requirement increase the Commission ultimately grants in this case.
This asset will accrue from January 1,2025,until new rates go into effect. The amount of this asset
will be calculated as follows. First the Company shall determine the annual price increase for all
net power cost("NPC") and non-NPC items. Only the ten percent of the NPC items subject to the
90/10 sharing band in the ECAM will be deferred. The combined annual impact of both the
deferred NPC and non-NPC items divided over the suspension period will be the regulatory asset
balance.
If a final order authorizing new rates for the Company issues after January 1, 2025, the
Company shall make a compliance filing calculating the amount of this regulatory asset within 30
days of the service date of the final order. No carrying charge is authorized for this regulatory
asset. If a final order authorizing new rates for the Company issues on or before January 1, 2025,
this authorization will be of no effect.
NOTICE OF SUSPENSION
ORDER NO. 36350 2
ORDER
IT IS HEREBY ORDERED that the January 1, 2025, effective date for the Company's
proposed rate increases is suspended for 60 days.
IT IS FURTHER ORDERED that the Company is authorized to record as a regulatory
asset the revenue requirement increase the Commission ultimately grants in this case from January
1, 2025, until new rates become effective in this case. The amount of this asset shall be calculated
as described above. If a final order authorizing new rates for the Company issues on or before
January 1, 2025, this authorization will be of no effect.
THIS IS AN INTERLOCUTORY ORDER, not a final and appealable Order of the
Commission. The period of reconsideration will not begin until the final order is issued.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 9th day of
October 2024.
ERIC ANDERSON, PRESIDENT
/01Hi!ZR. HAMMOND JR., COMMISSIONER
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EDWARD LODGE,/OM IONER
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NOTICE OF SUSPENSION
ORDER NO. 36350 3