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HomeMy WebLinkAbout20250508Staff Comments.pdf RECEIVED ADAM TRIPLETT Thursday, May 08, 2025 DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0318 IDAHO BAR NO. 10221 Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR A ) CASE NO. PAC-E-25-05 DEFERRED ACCOUNTING ORDER ) RELATED TO CHEHALIS COMPLIANCE ) COSTS ) COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its Attorney of record, Adam Triplett, Deputy Attorney General, submits the following comments. BACKGROUND On March 28, 2025, Rocky Mountain Power, a division of PacifiCorp, ("Company") applied to the Commission requesting an accounting order authorizing the Company to record a regulatory asset associated with the costs associated with the Company's 2024 Energy Cost Adjustment Mechanism (`SCAM") rate adjustment of approximately $2.33 million, representing the costs incurred by the Company to comply with the Washington Climate Commitment Act ("WCCA"). The Company's appeal of the Commission's Order Nos. 36207 and Order No. 36367, in which the Commission disallowed recovery of$2.3 million in costs the Company incurred to STAFF COMMENTS 1 MAY 8, 2025 comply with the WCCA in the Company's 2023 ECAM, is currently pending before the Idaho Supreme Court. The Company states it filed its 2024 ECAM and excluded WCCA compliance costs from its filing since the outcome of the appeal with the Idaho Supreme Court is unknown. This will allow that proceeding to conclude more efficiently. The Company proposes tracking its 2024 WCCA compliance costs in a separate deferral account. Once the Idaho Supreme Court issues its opinion in the appeal of Order Nos. 36207 and Order No. 36367, the Company will seek recovery of these costs if appropriate. The Company estimates Idaho's share of the WCCA compliance costs it incurred during the 2024 ECAM deferral period to be about $2.33 million. STAFF ANALYSIS Staff reviewed the Company's Application, including supporting testimony, documentation of WCCA compliance costs, and the procedural context surrounding the Company's pending appeal before the Idaho Supreme Court. Staff supports the Company's proposal to defer WCCA related costs in a separate regulatory deferral account until the Idaho Supreme Court issues a final decision. In addition to the Company's proposal, Staff recommends that no carrying charge be applied to the deferral balance. Removing the WCCA costs from the 2024 ECAM filing benefits all parties. If the WCCA costs were included for recovery in the Company's ECAM Application, Staff believes the Commission would likely deny recovery of these costs based on prior Commission directives that prohibit recovery of WCCA related expenses'. Removing the WCCA costs simplifies the case, reduces procedural complexity, and allows for a more efficient review process. Customers also benefit because removing WCCA costs reduces the rates in the ECAM and minimizes the Company's legal expenses by not having to appeal a second ECAM decision to the Idaho Supreme Court. Although not specifically addressed in the Company's Application, Staff would oppose any carrying charge on the deferral balance that the Company may request. By removing WCCA related costs from the ECAM, the Company benefits from cost savings by avoiding 1 Commission Order No. 36207 STAFF COMMENTS 2 MAY 8, 2025 certain administrative and regulatory expenses. Applying a carrying charge to the deferral balance would result in unwarranted financial benefit to the Company. STAFF RECOMMENDATION Staff recommends that the Commission approve the Company's proposal to exclude WCCA costs from the 2024 ECAM filing and to defer WCCA related costs in a separate regulatory deferral account until a final decision is issued by the Idaho Supreme Court. Additionally, Staff recommends that no carrying charge be applied to the deferral balance. Respectfully submitted this 8th day of May 2025. Adam Triplett Deputy Attorney General Technical Staff. Ty Johnson L\Utility\UMISC\COMMENTS\PAC-E-25-05 Comments.docx STAFF COMMENTS 3 MAY 8, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS DAY OF MAY 2025, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. PAC-E-25-05, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING: MARK ALDER DATA REQUEST RESPONSE CENTER ROCKY MOUNTAIN POWER E-MAIL ONLY: 1407 WEST NORTH TEMPLE STE 330 datarequest@pacificorp.com SALT LAKE CITY UT 84116 carla.scarsella(aificorp.com E-MAIL: mark.alder cr�pacificorp.com JOE DALLAS ROCKY MOUNTAIN POWER 825 NE MULTNOMAH, SUITE 2000 PORTLAND, OR 97232 E-MAIL: joseph.dallasgpacificorp.com PATRICIA JORDAN, S CRETARY CERTIFICATE OF SERVICE