20050513PAC 1st supp resp to request 35.pdf

825 N.E. Multnomah
Portland, Oregon 97232
[phone]
. PACIFICORP
PACIFIC POWER UTAH POWER
May 12, 2005
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SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
472 W Washington
Boise, ID 83702-5983
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RE:ID P AC-05-
IPUC Staff Production Data Requests 34-
Please find enclosed an original and one copy ofPacifiCorp s 1 st Supplemental Response to
IPUC Staff Production Data Request 35. Provided on the enclosed CD is Attachment IPUC 35 B
1 st Supplemental.
If you have any questions, please call Barry Bell at [phone].
Sincerely,
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Bob Lively, Manager
Re gulati on
Enclosures
cc:Katie Iverson/lIP A
Jean Jewell (3 copies)
James Fell/Stoel Rives
Service List
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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.
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PatrICIa A. Lopas
Regulatory Coordinator
Dated:
&/
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JEFF LARSON
PACIFICORP
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
POCA TELLO, 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
R. SIMPLOT COMPANY
999 MAIN ST.
BOISE, ID 83702
DA VID HAWK
DIRECTOR, ENREGY NA ruRAL RESOURCES
R. SIMPLOT COMPANY
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-l/PacifiCorp
March 12, 2005
IPUC Staff Production Request 35 1 st Supplemental Response
IPUC Staff Production Request 35
Please provide a Class-Cost-of-Service model run, based on the Revised Protocol
jurisdictional allocation, with Monsanto included as a separate customer class.
Provide a complete description and all the supporting calculations of how the
value of System integrity, Operating Reserves and Economic Curtailment are
calculated and credited. Include load data necessary to make the calculations and
any assumptions that differ from the Commission s findings in the Monsanto
contract case, PAC-01-, Order Nos. 29157 and 29206 and related Minute
Order dated May 23 2003.
1 st Supplemental Response to IPUC Staff Production Request 35
The response below is provided for informational purposes only. The
Commission in its Order in Case No. PAC-01-16 (Final Order No. 29157)
determined, as a matter of law, the cost of service applicable for electric service
provided to Monsanto. 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." To the extent the Company identifies "any
assumptions that differ from the Commission s findings in the Monsanto contract
case" in response to this data request, it is for discussion purposes only. 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.
The summary of the Class-Cost-of-Service study with Monsanto included as a
separate customer class is included as Attachment IPUC 35 A 1 st Supplemental.
An electronic copy of the full model is included as Attachment IPUC 35 B 1 st
Supplemental on the enclosed CD. Attachments IPUC 35 A and B are based on
the results of operations filed in Ted Weston Exhibit No.
In both the results of operations and in the Class-Cost-of-Service, the loads and
revenues associated with service to Monsanto were treated consistently with
Appendix D of the Revised Protocol which is included as Attachment IPUC 35 C
1 st Supplemental.
As shown in William R. Griffith's Exhibit 25 and Exhibit 29 , page 9, Monsanto
present revenues used in this case are $42.9 million which reflects all of its usage
priced at the firm service rate. The $4.51 per kW discount for ancillary services is
P AC-05-l/PacifiCorp
March 12, 2005
IPUC Staff Production Request 35 1 st Supplemental Response
included as a resource purchase in Net Power Costs and allocated to among all
states.
Consistent with reflecting Monsanto s revenues at the firm service equivalent
rate, Monsanto s loads are included at its full requirements level and do not reflect
any curtailments due to System Integrity, Operating Reserves, and Economic
Curtailment.
Any load reductions associated with Economic Curtailment or the call for
reserves are normalized back into the Idaho jurisdictional loads in the Results
Operations and back into Monsanto s loads in the Cost of Service study. See
Attachment IPUC 35 D 1 st Supplemental.
Assumptions that differ from the Commission s findings in the Monsanto contract
case, PAC-01-, Order Nos. 29157 and 29206 and related Minute Order are:
(1) The Commission s order in PAC-01-16 found that Monsanto s non-firm
load should be treated as a system customer pending the conclusion of the Multi-
State Process. In compliance with the now approved MSP Revised Protocol
Monsanto is now treated as an Idaho Situs customer. (2) The Commission s order
in PAC-16-01 also provided two cost-of-service adjustments, a 1 mill/kWh rate
of return adjustment and a 0.12 mill/kWh fuel shaping adjustment. Neither of
these adjustments are incorporated in the cost of service study provided in
response to this data request.
(David L. Taylor will sponsor this response at hearing.
IDAHO
PAC-O5-
GENERAL RATE CASE
ACIFICORP
IPUC STAFF PRODUCTION
DATA REQUEST
ATTACHMENT
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PacifiCorp
Exhibit UP&L (DL T-3S) Page 1
Docket No, 02-035-
Witness: David L. Taylor
Protocol Appendix D
Special Contracts
Special Contracts without Ancillary Service Contract Attributes
For allocation purposes Special Contracts without identifiable Ancillary Service Contract attributes are
viewed as one transaction.
Loads of Special Contract customers will be included in all Load-Based Dynamic Allocation Factors.
When interruptions of a Special Contract customer s service occur, the reduction in load will be reflected in
the host jurisdiction s Load-Based Dynamic Allocation Factors.
Actual revenues received from Special Contract customer will be assigned to the State where the Special
Contract customer is located.
See example in Table
Special Contracts with Ancillary Service Contract Attributes
For allocation purposes Special Contracts with Ancillary Service Contract attributes are viewed as two
transactions. PacifiCorp sells the customer electricity at the retail service rate and then buys the electricity
back during the interruption period at the Ancillary Service Contract rate.
Loads of Special Contract customers will be included in all Load-Based Dynamic Allocation Factors.
When interruptions of a Special Contract customer s service occur, the host jurisdiction s Load-Based
Dynamic Allocation Factors and the retail service revenue are calculated as though the interruption did not
occur.
Revenues received from Special Contract customer, before any discounts for Customer Ancillary Service
attributes of the Special Contract, will be assigned to the State where the Special Contract customer is
located.
Discounts from tariff prices provided for in Special Contracts that recognize the Customer Ancillary
Service Contract attributes of the Contract, and payments to retail customers for Customer Ancillary
Services will be allocated among States on the same basis as System Resources.
See example in Table 2
Buy-through of Economic Curtailment.
When a buy-through option is provided with economic curtailment, the load, costs and revenue associated
with a customer buying through economic curtailment will be excluded from the calculation of State
revenue requirements. The cost associated with the buy-through will be removed from the calculation of
net power costs, the Special Contract customer load associated with the buy-through will be not be included
in the calculation of Load-Based Dynamic Allocation Factors, and the revenue associated with the buy-
through will not be included in State revenues.
IDAHO
PAC-O5-
GENERAL RATE CASE
ACIFICORP
IPUC STAFF PRODUCTION
DATA REQUEST
ATTACHMENT
IPUC 35 1st SUPPLEMENTAL
COINCIDENTAL PEAKS
(less)
Adjustments for Buy Through of Curtailment (Reduction)
Non-FERC FERC
Month Day Time E. WY W. WY NET UT
Jan-1800
Feb-0800
Mar-0800
Apr-0800
May-1600
Jun-1500 (86)
Jul-1500 (89)
Aug-1600 (91)
Sep-1600 (92)
Oet-0800
Nov-1800
Dee-1800
(357.908)(358)
equals
Month
Jan-
Feb-
Mar-
Apr-
May-
Jun-
Jul-
Aug-
Sep-
Oet-
Nov-
Dee-
Check values
Month
Jan-
Feb-
Mar-
Apr-
May-
Jun-
Jul-
Aug-
Sep-
Oet-
Nov-
Dee-
Month
Jan-
Feb-
Mar-
Apr-
May-
Jun-
Jul-
Aug-
Sep-
Oet-
Nov-
Dee-
Day Time
1800
0800
0800
0800
1600
1500
1500
1600
1600
0800
1800
1800
METERED LOADSICP)
Non-FERC FERC
E. WY Total UT W. WY NET UT
525.890.145.935.051.366.157.26.026
2,407.701.163.930.830.416.147.22.808
238.627.137.920.553.390.145.21.532
178.583.137.830.2,445.375.118.22.2,422
920.599.49 150.859.646.533.112.21.625
101.671.152.861.556.594.109.40 33.524
359.773.155.901.038.573.120.34.49 004
020.41 666.40 155.920.924.498.125.38.885
154.744.41 115.874.520.416.122.46 34.3,485
233.677.115.847.579.395.121.21.601
160.47 657.46 125.919.998.418.148.26.025
343.719.132.931.45 001.417.45 151.24.026
13051 914 208644 208644
26644 8314 1688 10 735 38147 5395 1580 327 37820
COINCIDENTAL PEAK SERVED FROM COMPANY RESOURCES
Non-FERC I FERC
E. WY W. WY NET UT
525 891 146 936 052 367 157 026
2,407 702 164 931 831 416 148 808
239 628 137 921 553 390 146 532
178 583 138 831 2,445 375 119 422
921 599 150 860 646 533 112 625
102 672 153 862 470 594 109 3,437
360 774 155 902 950 573 121 915
020 666 156 920 833 498 125 794
155 744 115 875 3,428 416 122 393
234 678 116 847 580 396 121 559
160 657 126 920 999 418 148 973
343 719 133 931 002 417 151 977
26644 8314 1688 10 735 37 789 5395 1580 327 37,462
plus
Day Time
1800
0800
0800
0800
1600
1500
1500
1600
1600
0800
1800
1800
Adjustments for Ancilary Services Contracts (Add backs) excluding Buy Through
" "
Non-FERC FERC
W. WY NET UT
70.
70.
70.
70.
70.
70.
420.
equals
LOADS FOR JURISDICTIONAL ALLOCATION (CP)
Non-FERC FERC
Month Day Time W. WY NET UT
Jan-1800 525 891 146 936 052 437 157 026
Feb-0800 2,407 702 164 931 831 416 148 808
Mar-0800 239 628 137 921 553 390 146 532
Apr-0800 178 583 138 831 445 375 119 2,422
May-1600 921 599 150 860 646 603 112 625
Jun-1500 102 672 153 862 3,470 664 109 3,437
Jul-1500 360 774 155 902 950 643 121 915
Aug-1600 020 666 156 920 833 568 125 794
Sep-1600 155 744 115 875 3,428 486 122 393
Oet-0800 234 678 116 847 580 396 121 559
Nov-1800 160 657 126 920 999 418 148 973
Dee-1800 343 719 133 931 002 417 151 977
644 314 688 735 789 814.580 327 37,462
Day Time
1800
0800
0800
0800
1600
1500
1500
1600
1600
0800
1800
1800