20050614PAC response Monsanto req 6-10.pdf

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PAC F I CORP
PACIFIC POWER UTAH POWER
June 13, 2005
Randall C. Budge
Racine, Olson, Nye, Budge & Bailey, Chtd
O. Box 1391; 201 E. Center
Pocatello, ID 83204-1391
Katie Iverson
Brubaker & Associates
17244 W. Cordova Court
Surprise, Arizona 85387
James R. Smith
Monsanto Company
O. Box 816
Soda Springs, Idaho 83276
RE:ID PAC-05-
Monsanto Data Request 6-
,'of \Jr-'
' '"' ~"'.. '
f L
825 E. Multnomah
Portland, Oregon 97232
[phone]
Please find enclosed PacifiCorp s Response to Monsanto Data Request Responses to Monsanto
Number (6-10).
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7ilf't~ "! J " JUiJ !f
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4 At1 !J: 3 4
If)i~\rfO PUBLIC
U t fllTIES COMMiSSION
If you have any questions, please call Barry Bell at [phone].
Sincerely,
~~~
Bob Lively, Manager
Regulation
Enclosures
cc:James Fell/Stoel Rives
Je..d:ewell~(3 copies)
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 mailing to said person(s) a true copy thereof, contained
ina sealed envelope, addressed to said person(s) at their last known addressees) indicated below.
.Ii
\ ./ c/
Patrie' opas
Regulatory Coordinator
Dated: ~ 13
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, OH44140
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
TIMOTHY 1. SHURTZ
411 S. MAIN
FIRTH, ID 83236
BRADY M. PURDY
TTORNEY AT LAW
2019 N. 17TH STREET
BOISE, ID 83702
R. SCOTT PASLEY
ASSISTANT GENERAL COUNSEL
R. SIMPLOTCOMPANY
999 MAIN ST.
BOISE, ID 83702
DA VID HA WI(
DIRECTOR, ENREGY NATURAL RESOURCES
J .R. SIMPLOT COMPANY
999 MAIN ST.
BOISE, ID 83702
P AC-05-1/PacifiCorp
June 13 2005
Monsanto Data Request 6
Monsanto Data Request 6
According to PacifiCorp s Response to Staff Production Request 56
, "
there can be
no 'change in cost of service' as a matter of law " with respect to the cost of
service for Monsanto in this case.
a. Please describe precisely and in detail the factual basis and legal
authority which supports PacifiCorp s claim that there can be no change in cost of
service as a matter of law.
b. Please explain and provide all documents that support, refer or
relate to PacifiCorp s claim there can be no change in cost of service "as a matter
of law c. Was it PacifiCorp s belief there could be no change in cost of
service "as a matter of law" when it supported the Revised Protocol Stipulation?
Please explain.
Response to Monsanto Data Request 6
, b. PacifiCorp objects to this data request on the grounds that it calls for legal
conclusions and analyses that are beyond the scope of proper discovery. Without
waiving this objection, PacifiCorp responds by noting that its legal analysis of this
issue will be presented in its brief to the Commission to be filed on June 30, 2005
in accordance with the procedure agreed upon by the parties at the May 16, 2005
settlement conference.
c. The cost of service determined for Monsanto under Order No. 29157 is
unaffected by the implementation of Revised Protocol. See Response to
Monsanto 7.
(David L. Taylor will sponsor this response at hearing.
PAC-05-1/PacifiCorp
June 13 2005
Monsanto Data Request 7
Monsanto Data Request 7
According to PacifiCorp s Response to IPUC Staff Production Request 56
PacifiCorp claims that the cost of services for Monsanto has been determined by
Final Order No. 29157, and "that finding is binding for purposes of cost of service
in this proceeding.
a. Please explain and provide all documents that support, refer or
relate to PacifiCorp s claim that the finding is "binding" for purposes of cost of
service in this proceeding.
b. Please confirm or deny that Monsanto s cost of service determined
in Final Order No. 29157 was premised on the Rolled-In inter-jurisdictional
method. If denied, please explain.
c. Is it also PacifiCorp s belief that Final Order No. 29157 precludes
PacifiCorp from any change in cost of service to Monsanto related to the
transition to Revised Protocol inter-jurisdictional allocation method? If not, why
not?
d. Please confirm or deny that PacifiCorp s belief is that Monsanto
cost of service determined in Final Order No. 29157 is "binding" only in the class
cost of service study, but not for purposes of the inter-jurisdictional study.
e. Please provide the normalized results of operations for Idaho based
on the Revised Protocol assuming that all costs associated with Monsanto s loads
have been determined by Final Order No. 29157 and as such are "binding
Response to Monsanto Data Request 7
a. PacifiCorp objects to this data request on the grounds that it calls
for legal conclusions and analyses that are beyond the scope of proper
discovery. Without waiving this objection, PacifiCorp responds by noting
that its legal analysis of this issue will be presented in its brief to the
Commission to be filed on June 30, 2005 , in accordance with the
procedure agreed upon by the parties at the May 16, 2005 settlement
conference.
b. Monsanto s cost of service in Final Order No. 29157 was based on
the Rolled-In inter-jurisdictional allocation method with all special
contracts assigned on a situs basis.
PAC-05-1/PacifiCorp
June 13 2005
Monsanto Data Request 7c. Final Order No. 29157 fixed both Monsanto s contract rates and
the cost of service basis for those through December 31 , 2006. The cost of
service determined for Monsanto under that order is unaffected by any
transition to Revised Protocol.
d. Final Order No. 29157 did not fix any portion of Idaho s allocated
results of operations or any portion ofPacifiCorp s Idaho revenue
requirement. See also response to Monsanto 7(e).
e. Normalized results of operations for total Idaho jurisdiction do not
change regardless of whether Monsanto s cost of service in Order No.
29157 is considered binding or not. Results of operations are based on an
allocation of total Company costs. As such, there are no specifically
identifiable costs associated with Monsanto s loads, only Idaho s allocated
share of total Company costs. Idaho s allocated share is based on Idaho
normalized loads, including those of Monsanto.
(David L. Taylor will sponsor this response at hearing.
PAC-05-1/PacifiCorp
June 13,2005
Monsanto Data Request 8
Monsanto Data Request 8
According to PacifiCorp s Response to IPUC Staff Production Request 37
overall Company costs have increased which increases the cost of service for all
customer classes.a. Please confirm or deny that Company costs have increased for all
Idaho customers. If denied, please fully explain.
b. Over what period of time is PacifiCorp referring to when the
statement is made "overall company costs have increased"
c. Indicate whether PacifiCorp s costs have increased or decreased
each year since the last general rate case in Idaho.
d. Does PacifiCorp project costs will increase in 2005 and 2006?
, please explain what PacifiCorp believes will be the primary factors driving
such cost increases.
Does PacifiCorp anticipate filing a general rate case in Idaho in
2006?
Response to Monsanto Data Request 8
In the aggregate, costs have increased for all Idaho customers.
The Company is referring to years 1999 through 2004. The Company
response to IPUC 37 stated: "In the four years from 1999 to 2004, overall
Company costs have increased which increases the cost of service for all
customer classes.
Insofar as the request seeks data for the entire period 1986 through 1993,
PacifiCorp objects to this request on the grounds that the request is overly
broad and unduly burdensome. Without waiving these objections, the
following table is provided which shows total company unadjusted O&M
expenses for years 1994 through 2004. The increase in CY 1997 is due in
part to closure costs associated with the Glenrock Mine and the F AS 87/88
pension conversion to pay-as-you-go basis. Similarly, the increase in costs
in CY 1998 is due to costs associated with an early retirement program.
The increases in FY2003 and FY2004 are due to increases in insurance
costs, pension costs, costs related to health insurance, security and risk
costs, and development of infrastructure associated with an increase in
growth. These costs were normalized for the respective accounting
periods.
P AC-05-1/PacifiCorp
June 13, 2005
Monsanto Data Request 8
Period Total O&M Expense Increase / Decrease
excluding Net Power Costs over Prior Year
CY 1994 $566 406 624
CY 1995 $587 686 575 Increase
CY 1996 $610 160 169 Increase
CY 1997 $858 931 529 Increase
CY 1998 $786 521 554 Decrease
CY 1999 $703 314 924 Decrease
FY 2001 $607 521 517 Decrease
FY 2002 $635 468 713 Increase
FY 2003 $851 098 722 Increase
FY 2004 $873 996 975 Increase
PacifiCorp expects costs will increase in 2005 and 2006. PacifiCorp
believes the primary factors driving such cost increases will be power
costs, capital additions and wage and benefit increases.
Yes.
(J. Ted Weston will sponsor this response at hearing.
PAC-05-1/PacifiCorp
June 13 2005
Monsanto Data Request 9
Monsanto Data Request 9
PacifiCorp s Response to IPUC Staff Production Request 37 references the "Rate
Mitigation Adjustment, Schedule 94" and that this "altered the cost of service
relationships for those classes in this case as compared to PAC-01-16." Please
provide the necessary workpapers to understand how the RMA has altered the
cost of service relationships.
Response to Monsanto Data Request 9
Please see the two columns labeled "RMA Impact" in Attachment Monsanto 9.
The first column shows the test period annual revenue by rate schedule prior to
the RMA Adjustment. The next column shows how the RMA Adjustment altered
the cost of service relationships for each rate schedule.
(William R. Griffith will sponsor this response at hearing.
IDAHO
PAC-O5-
GENERAL RATE CASE
ACIFICORP
MONSANTO DATA REQUEST
ATTACHMENT MONSANTO 9
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P AC-05-1/PacifiCorp
June 13, 2005
Monsanto Data Request 10
Monsanto Data Request
According to PacifiCorp s Response to IPUC Staff Production Request 37, the
Company claims that "Because the cost of service for Monsanto is greater than
the current revenues produced, the revenue shortfall from Monsanto is included in
the cost of service for the other classes." Please provide the Company s estimate
of the "revenue shortfall from Monsanto" and all supporting workpapers or
references.
Response to Monsanto Data Request 10
This information was provided in PacifiCorp s response to IPUC Staff Production
Request 35.
(David L. Taylor will sponsor this response at hearing.