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HomeMy WebLinkAbout20050506PAC response requests 50-63.pdf\"=0Lt... '; "'- '" fiJ 825 E. Multnomah Portland, Oregon 97232 (503) 813-5000 ~" \ t" . PACIFICORP r" t!J ""1 - C f1t?" '3'~ 2.c; 1u\1';) U\ 1 0 PACIFIC POWER UTAH POWER , ., " I i U l . \) L:~L; \ . . AJJ " '' \'~;' FS cor'H"\ \0 S ti\ L\\ May 5, 2005 SCOTT WOODBURY DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION 472 W Washington Boise, ID 83702-5983 RE:ID PAC-O5- IPUC Staff Production Data Requests 50- Please find enclosed an original and one copy ofPacifiCorp s Response to IPUC Staff Production Data Requests 50-63. Provided on the enclosed CD are Attachments IPUC 56, 57 and 63 (A-B). Provided on the enclosed Confidential CD is Confidential Attachment IPUC 55. If you have any questions, please call Barry Bell at (801) 220-4985. Sincerely, ~~~~ If, Bob Lively, Manager Regulation Enclosures cc:Katie Iverson/lIP A Jean'JeweU(3 copies) James Fell/Stoel Rives Service List CERTIFICATE OF SERVICE I hereby certify that I caused the foregoing document to be served on the following named person(s) on the date indicated below by overnight mail to said person(s) a true copy thereof, contained in a sealed envelope, addressed to said person(s) at their last known addressees) indicated below. :J+ ? ;t lLv~ LC C/~ p0.) Patricia A. Lopas Regulatory Coordinator Dated:/ 6 / tJ JOHN STEWARTPACIFICORP 201 S. MAIN STREET. SUITE 2300 SALT LAKE CITY, UT 84140 JAMES M. V AN NOSTRAND STOEL RIVES LLP 900 SW FIFTH AVE., SUITE 2600 PORTLAND, OR 97204 SCOTT WOODBURY IDAHO PUBLIC UTILITIES COMMISION 472 W. WASHINGTON BOISE, ID 83702-5983 KIRA PFISTERER IDAHO PUBLIC UTILITIES COMMISION 472 W. WASHINGTON BOISE, ID 83702-5983 RANDALL C. BUDGE RACINE, OLSON, NYE BUDGE&BAILEY, CHARTERED 201 E. CENTER POCA TELLO, ID 83204 JAMES R. SMITH MONSANTO COMPANY HIGHWAY 34 NORTH SODA SPRINGS, ID 83276 ERIC L. OLSEN RACINE, OLSON, NYE BUDGE&BAILEY, CHARTERED 201 E. CENTER POCATELLO, ID 83204 ANTHONY Y ANKEL 29814 LAKE ROAD BAY VILLAGE, OH 44140 CONLEY E. WARD GIVENS PURSLEY LLP 601 W. BANNOCK ST. BOISE, ID 83702 DENNIS E. PESEAU UTILITY RESOURCES, INC. 1500 LIBERTY ST. SE, SUITE 250 SALEM, OR 97302 R. SCOTT PASLEY ASSISTANT GENERAL COUNSEL J.R. SIMPLOTCOMPANY 999 MAIN ST. BOISE, ID 83702 DA VID HAWK DIRECTOR, ENREGY NATURAL RESOURCES J. R. S IMPLOT CO MP ANY 999 MAIN ST. BOISE, ID 83702 TIMOTHY 1. SHURTZ 411 S. MAIN FIRTH, ID 83236 BRADY M. PURDY A TTORNEY AT LAW 2019 N. 17TH STREET BOISE, ID 83702 P AC-05-1/PacifiCorp May 5 , 2005 IPUC Staff Production Request 50 IPUC Staff Production Request 50 In PacifiCorp s response to Staff Production Request No. 47, it is confirmed that meters are typically left on between occupants unless at the next meter reading/billing date there is no new occupant and usage has crossed the threshold of 400 kWh. Pacifi Corp has stated that at that point, the meter is disconnected. Who is billed for the electricity between the time that the meter is read for the occupant who closed the account and the point at which the meter is disconnected after crossing the 400 kWh threshold? Response to IPUC Staff Production Request 50 Due to efficiency considerations related to cost and work force deployment, meters are left on between occupants up to an established threshold of usage. PacifiCorp makes every attempt to bill the customer(s) responsible for the usage. Please note that the Company is revising Response No. 47 to reflect the fact that 1 000 kWh is the current usage threshold used by the Company instead of 400 kWh. (It's is undetermined at this time who will sponsor this response at hearing. P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request IPUC Staff Production Request During 2004, how many meters fall in this category where the occupant has closed the account but the meter is not disconnected? Response to IPUC Staff Production Request 51 In 2004, in PacifiCorp s Idaho service territory, 7 079 agreements were closed by the occupant and not disconnected. (It's is undetermined at this time who will sponsor this response at hearing. P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request 52 IPUC Staff Production Request 52 Chronologically, what is the process after the 400 kWh threshold is determined to have been crossed? Does the meter reader turn the meter off? Is a separate order generated and a different employee dispatched to turn off the meter? Response to IPUC Staff Production Request 52 Please note that the current threshold is 1 000 kWh, as noted in the response to IPUC Staff Production Request 50. When the 1 000 kWh usage threshold described above is reached, a separate using order is generated. At that point the order is put in queue to be scheduled for our employee to make a disconnect visit. The order will remain open for 20 days to allow the disconnect visit to take place. If a customer signs up in the interim, the order is voided. (It's is undetermined at this time who will sponsor this response at hearing. P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request 53 IPUC Staff Production Request 53 How is unbilled revenue booked? Response to IPUC Staff Production Request 53 Unbilled revenues are calculated by removing from the system input the amount of energy that will be included in bills during the specific calendar month. The amount that will not be billed is then distributed to the different states and classes using the latest numbers of customers and usage information and priced at current tariff levels. This is then booked into the revenue accounts by class and state. Unbilled revenue is booked to account 173 Accrued Utility Revenue and corresponding income accounts 301XXX based on customer class. 301109 - Unbilled Revenue - Residential 301209 - Unbilled Revenue - Commercial 301309 - Unbilled Revenue - Industrial 301459 - Unbilled Revenue - Irrigation/Farm 301609 - Unbilled Revenue - Public St/Hwy Lighting 301709 - Unbilled Revenue - Other Sales to Public Authority (Stan K. Watters will sponsor this response at hearing. P AC-05-1/PacifiCorp May 5 , 2005 IPUC Staff Production Request 54 IPUC Staff Production Request 54 During 2004, how many meters were disconnected after crossing the 400 kWh threshold? Response to IPUC Staff Production Request 54 Please note that the current threshold is 1 000 kWh, as noted in the response to IPUC Staff Production Request 50. During 2004, in PacifiCorp s Idaho service territory, 611 meters were disconnected where usage was above the established 000 kWh threshold. (I t' s is undetermined at this time who will sponsor this response at hearing. P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request 55 IPUC Staff Production Request 55 Please provide a current valuation of the three ancillary services that Monsanto provides to PacifiCorp. Show them individually and provide associated workpapers. Response to IPUC Staff Production Request 55 Please see Confidential Attachment IPUC 55 , on the enclosed CD, for the current valuation of the three ancillary services provided by Monsanto to PacifiCorp. This data is confidential and is provided subject to the terms and conditions of the protective agreement in this proceeding. While the data request was not specific regarding term, the aforementioned attachment assumes a starting date of January 1 st, 2007 and an ending date of December 31 st, 2011 , along with a forward price curve date of 4/25/05. As can be seen in this attachment, the value of non-spin reserves for this term, with 95 MWs, is $1.93/KW-mo, the value of 500 hours of curtailment for this term, with 67 MWs, is $3.26/KW-mo, and the value of system integrity for 1 hour per month for this term, with 172 MWs, is $.25/KW-mo. (Stan K. Watters will sponsor this response at hearing. IDAHO A C- O5- GENERAL RATE CASE ACIFICORP IPUC STAFF PRODUCTION DATA REQUEST CONFIDENTIAL ATTACHMENT IPUC CONFIDENTIAL (LEVEL YELLOW) ON THE ENCLOSED CD P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request 56 IPUC Staff Production Request 56 In Case No. UPL-01-16 the Commission established Monsanto contract rates at what it deemed to be full cost of service. In that case Monsanto s full cost of service as an uninterrupted customer was calculated to be $43 971 090 based on a 1999 test year. In the current case, the Company calculates Monsanto s full cost of service to be $53 885 831. A number of things have changed that have led to the cost of service difference. They are:a) Test year accounting data was 1999 and now is 2004.b) Jurisdictional and class allocators were based on 1999 data and now are based on 2004 data. Jurisdictional allocation methodology was "rolled-" and now is revised protocol" Please provide a series of jurisdictional allocation and cost of service model runs that capture the differences caused by each of these factors individually. If there are other factors that the Company believes to be significant in defining the change in cost of service, model runs that establish their value should also be provided. The model runs that capture the jurisdictional allocation methodology difference should be run last. Response to IPUC Staff Production Request 56 The Company concurs with the statement that "(i)n Case No. UPL-01-16 the Commission established Monsanto contract rates at what it deemed to be full cost of service." On page 8 of that Order, the Commission stated that the rates and charges approved therein "reasonably reflect the Company s cost of service to Monsanto going forward." The Company does not agree that "(i)n the current case, the Company calculates Monsanto s full cost of service to be $53 885 831." The cost of service study used by the Company in its direct testimony in this proceeding to allocate the requested rate increase to customer classes gives full effect to Final Order No. 29157, and any assumed departure from the findings in that Order would be pure speculation. The cost of service for this customer, for the duration of the contract for this customer - through December 31 , 2006 - has been determined by Final Order No. 29157, and that finding is binding for purposes of the cost of service in this proceeding. The Company, by operation of law, cannot presume that the cost of service for Monsanto is anything other than as determined by the Commission in Final Order No. 29157. Therefore the response below is provided for informational purposes only. To the extent the Company identifies any "other factors that the Company believes to be significant in defining the change in cost of service" in response to this data request, it is for discussion purposes only, as there can be no "change in cost of service" as a matter of law. P AC-05-I/PacifiCorp May 5 , 2005 IPUC Staff Production Request 56 Please see Attachment IPUC 56, on the enclosed CD, which contains the following: 1999 - Rolled-In with Special Contracts Situs (Basis for existing Monsanto contract) Idaho Results of Operations Report Tab Cost of Service Summary Tables Earned and Target Return Cost of Service Class Summary Cost of Service Detail FY 2004 - Rolled-In with Special Contracts Situs Idaho Results of Operations Report Tab Cost of Service Summary Tables Earned and Target Return Cost of Service Class Summary Cost of Service Detail FY 2004 - MSP Revised Protocol (Current filing) Idaho Results of Operations Report Tab Cost of Service Summary Tables Earned and Target Return Cost of Service Class Summary Cost of Service Detail The effects of the changes identified in (a) and (b) have been combined. It is neither reasonable nor appropriate to allocate total Company costs from one test period with jurisdictional and class loads from another test period because changes in loads is one of the causes of increased costs. Therefore, we have not computed these two effects separately. Their combined effect is determined by comparing the "1999" tabs with the "FY 04 (RI)" tabs. The effect of the changes identified in (c) is determined by comparing the "FY 04 (RI)" tabs with the FY 04 (MSP)" tabs. The primary factors contributing to the change in costs of service that could be allocable to Monsanto are increases in Net Power Costs and other Generation and Transmission O&M Expenses as well as the impact of the Embedded Cost Differential allocation adjustment. As shown in the table below, these three items account for over $10 million, or nearly $7.00 per MWh (7 mills per kWh), of the increase in cost of service that could be allocable to Monsanto. P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request 56 PacifiCorp Cost Of Service State of Idaho 12 Months Endin March 2004 12 Months Ending Dec 31, 1999 Diff 2004 - 1999 Idaho Idaho Idaho DESCRIP Jurisdiction Jurisdiction Jurisdiction Nonnalized Monsanto Nonnalized Monsanto Nonnalized Inc Monsanto Inc Rolled-ln Revised Protocol Contracts situs Contracts situs Net Power Costs 770,277 18,460,525 31,608,954 13,739,674 14,161.323 45%720,851 34% Embedded Cost Differential 354,324 705 267 354,324 705,267 Other G& T O&M 26,328,724 10,306,850 15,212,601 161,033 11,116,123 73%145.817 67% $/ MWH 12 Months Endin March 2004 12 Months Ending Dec 31, 1999 Diff 2004 . 1999 MWH 383,000 439,284 137,496 400,846 245,504 438 Net Power Costs $13.$12.$10.$9.$3.34%$3.31% Embedded Cost Differential $1.$1.18 $0.$0.$1.$1. OtherG&TO&M $7.$7.$4.$4.$2.61%$2.63% (David L. Taylor will sponsor this response at hearing. IDAHO O5- GENERAL RA TE CASE ACIFICORP IPUC STAFF PRODUCTION DATA REQUEST ATTACHMENT IPUC ON THE ENCLOSED CD AC- E-05-/PacifiCorp May 5, 2005 IPUC Staff Production Request 57 IPUC Staff Production Request 57 Please provide the cost of meter reading and billing for each of the rate schedules. Response to IPUC Staff Production Request 57 The requested information is provided as Attachment IPUC 57 on the enclosed CD. (David L. Taylor will sponsor this response at hearing. IDAHO A C- O5- GENERAL RATE CASE ACIFICORP IPUC STAFF PRODUCTION DATA REQUEST ATTACHMENT IPUC ON THE ENCLOSED CD P AC-05-1/PacifiCorp May 5, 2005 IPU C Staff Prod~ction Request 58 IPUC Staff Production Request 58 Please provide any analysis justifying the proposed increase in the monthly minimum bill Customer Service Charge for each of the schedules. Response to IPUC Staff Production Request 58 Schedule 1: The proposed increase in the minimum charge from $9.57 to $11. per month corresponds to the underlying changes in the proposed energy charges as shown in Attachment IPUC 58. For the other rate schedules: The Company proposed changes to the Customer Service Charges in order to simplify rate administration by rounding up the customer service charges to whole dollars. (William R. Griffith will sponsor this response at hearing. IDAHO PAC-O5- GENERAL RATE CASE ACIFICORP IPUC STAFF PRODUCTION DATA REQUEST ATTACHMENT IPUC Pa c i f i C o r p , S t a t e o f I d a h o At t a c h m e n t R e s p o n s e IP U C 5 8 Pr o p o s e d I n c r e a s e i n M i n i m u m C h a r g e f o r S c h e d u l e Sc h e d u l e 1 Pr e s e n t Pr o p o s e d Su m m e r Wi n t e r 2 Su m m e r Wi n t e r 2 Su m m e r Wi n t e r 2 Ra t e Ra t e Ra t e Ra t e % C h a n g e % C h a n g e Mi n i m u m C h a r g e $9 . $9 . $1 1 . $1 1 . 14 . 14 . En e r g y R a t e f o r a l l k W h 82 7 1 if , 7. 4 9 0 4 if , 10 . 4 9 0 9 if , 80 5 8 if , RM A r a t e f o r a l l k W h 69 7 2 if, 69 7 2 if , if , if , Ba s e d R a t e C h a n g e ( E n e r g y + R M A Ch a r g e ) 12 9 9 79 3 2 10 . 4 9 0 9 80 5 8 14 . 14 . 1. S u m m e r p e r i o d c o n s i s t s o f b i l l i n g m o n t h s M a y t h r o u g h O c t o b e r i n c l u s i v e . 2. W i n t e r p e r i o d c o n s i s t s o f b i l l i n g m o n t h s N o v e m b e r t h r o u g h A p r i l i n c l u s i v e . P AC-05-1/PacifiCorp May 5, 2005 IPUC Staff Production Request 59 IPUC Staff Production Request 59 Please provide the analysis that supports the seasonal price differential Schedule No.1. Include justification for the specific months included in each season and the specific rates as proposed. Response to IPUC Staff Production Request 59 As stated in Mr. Griffith's direct testimony, Exhibit No. 25, page 6, line 9 "the company proposed to implement the price increase on a uniform percentage basis while keeping the current ratios between summer/winter energy charges." The seasonal price differential ratio used by PacifiCorp in this filing has been in place since the approval of Tariff No. 13 effective March 21 1978. Consequently, no analysis was prepared for this case. (William R. Griffith will sponsor this response at hearing. P Ac-05-1/Pacificorp May 5 , 2005 IPUC Staff Production Request 60 IPUC Staff Production Request 60 Please provide an analysis that supports the time of use rate differentials on Schedule 36. Include justification for the time periods chosen and the specific rates proposed. Response to IPUC Staff Production Request 60 As stated in Mr. Griffith's direct testimony, Exhibit No. 25, page 6, line 9 "the company proposed to implement the price increase on a uniform percentage basis while keeping the current ratios between summer/winter energy charges and on- peak/off-peak energy charges for optional time of day Schedule 36." The time of use rate differential ratio has been applicable since the approval of Tariff No. 21 effective September 13 , 1984. The time periods for on-peak/off-peak have been applicable since the approval of Tariff No. 17 effective May 27, 1981. Consequently, no analysis was prepared for this case. (William R. Griffith will sponsor this response at hearing. P AC-05-1/PacifiCorp May 5 , 2005 IPUC Staff Production Request 61 IPUC Staff Production Request 61 Please provide the analysis that supports the seasonal price differential in Schedule Nos. 6, 6A, 8, 9, 10, 23 and 23A. Include justification for the specific months included in each season and the specific rates as proposed. Response to IPUC Staff Production Request 61 Schedule 6, 6A, 8 and 9: As stated in Mr. Griffith's direct testimony, page 7, line , " the company proposes to implement the price change uniformly to both energy and demand charges, while keeping the current seasonal ratios between summer and winter demand charges." The current seasonal price differential ratio has been applicable since the approval of Tariff No. 16 effective April 1 , 1980. Consequently, no analyses regarding Schedules 6, 6A, 8 and 9 were prepared for this case. Schedule 23 , 23A: As stated in Mr. Griffith's direct testimony, page 7, line 15 the company proposes to implement the price change uniformly to energy charges, while keeping the current seasonal ratios between summer and winter energy charges." The current seasonal ratio is calculated after combining the present RMA rates with the present base energy rates. The current seasonal price differential ratio has been applicable since the approval of Tariff No. 16 effective April 1 , 1980. Consequently, no analyses regarding Schedules 23 and 23A were prepared for this case. Schedule 10: As stated in Mr. Griffith's direct testimony, page 8, lines 11 through , " the company also proposes to implement the price change for schedule lOon a uniform percentage basis to both demand and energy charges in order to maintain current relationships between the energy blocks and the current ratio on-season to off-season average revenues." The present time period for the irrigation season has been applicable since the approval of Tariff No. 17 effective May 27, 1981. The current structure of the seasonal demand and energy charges has been applicable since June 8, 2002, pursuant to IPUC Order No. 29034 regarding Case No. PAC-02-1. Consequently, no analysis regarding Schedule 10 was prepared for this case. (William R. Griffith will sponsor this response at hearing. P AC-05-1/Pacificorp May 5, 2005 IPUC Staff Production Request 62 IPUC Staff Production Request 62 Please provide an analysis that supports the time of use rate differentials on Schedule Nos. 35 and 35A. Include justification for the time periods chosen and the specific rates proposed. Response to IPUC Staff Production Request 62 Schedule 35, 35A: The Company proposes to implement price changes for schedules 35 and 35A uniformly to both energy and on-peak demand charges while keeping the current on-peak and off-peak time periods. The current on- peak and off-peak time period has been applicable since the approval of Tariff No. 23 effective April 10, 1986. Consequently, no analyses regarding Schedules 35 and 35A were prepared for this case. (William R. Griffith will sponsor this response at hearing. P Ac-05-1/PacifiCorp May 5, 2005 IPUc Staff Production Request 63 IPUC Staff Production Request Please provide a bill frequency analysis for Service Schedules 1 and 36 for each month with incremental blocks of 100 kWh for usage from 0 to 1200 kWh; then 1200 to 1500 kWh; 1500 to 2000 kWh; 2000 to 2500 kWh; 2500 to 3000 kWh; 3000 to 4000 kWh; 4000 to 5000 kWh and over 5000 kWh. Include both numbers of bills in that block and energy use the block. Please provide this in Excel 2000 format. Response to IPUC Staff Production Request 63 Bill frequency analyses for Service Schedules 1 and 36 with the requested incremental blocks have been included as Attachment IPUC 63 A (Schedule 1) and Attachment IPUC 63 B (Schedule 36) on the enclosed CD. The analyses include both number of bills and energy used in each block. The detail data used in preparing to the above attachments was previously provided as Attachment lIP A 10 1 Supplemental. (William R. Griffith will sponsor this response at hearing. IDAHO P AC-O5- GENERAL RATE CASE ACIFICORP IPUC STAFF PRODUCTION DATA REQUEST ATTACHMENT IPUC 63 (A- ON THE ENCLOSED CD