20060720Sorenson letter, Sterling reply.pdf

Sorenson Engineering
5203 South 11 th East
Idaho Falls, Idaho 83404
RECEIVED
200G JUL 20 AM 8: 06
IDAHO PUBLIC
UTILITIES COMMISSION
Phone: [phone]
Fax: [phone]
e-mail: ted ~tsorenson.net
July 17 2006
Idaho Public Utilities Commission
RE:Case No. PAC-06-6 Order No. 30078
Dear Commission:
This letter is written to request verification of the FERC Form 1 used by
PacifiCorp to calculate the average cost of fuel be:
Same data used by PacifiCorp to collect reimbursement
Audited by either Idaho Public Utilities Commission or Utah Public Utilities
Commission or other disinterested auditor.
In other words , I would just like to know that the data that goes into this is the
same data that is used by PacifiCorp for reimbursement of their costs.
Very truly yours
Ted S. Sorenson
TSS/ptj
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IDAHO
PUBLIC UTiliTIES
com mission
James E. Risch , Governor
O. Box 83720, Boise, Idaho 83720-0074
July 20, 2006
Paul Kjellander, President
Marsha H. Smith, Commissioner
Dennis S. Hansen, Commissioner
Ted S. Sorensen
5203 South 11 th East
Idaho Falls, ill 83404
RE:Case No. P AC-06-, Order No. 30078
Dear Mr. Sorenson:
Your J1ily 17, 20061etter to the Comri:risslonhas beeriforWafded to me for a reply.
First, with regard to the FERC Form 1 data used to compute the average cost offuel for
PacifiCorp s Carbon, Naughton, Huntington and Hunter plants, none ofthe data are directly used as
the basis for.setting rates for PacifiCorp. PacifiCorp s rates are set in a general rate case using adjusted
test year data and results from power supply modeling intended to replicate normal conditions.
Although it is possible that the test year selected in a general rate case could correspond to a particular
FERC Form 1 reporting year, it is not very likely. Furthermore, unlike data usedinanite case;FE~C
Form 1 reports actual, unadjusted data and may not represent "normal" conditions.
-- - ..- ....
Second, Form 1 is a report designed for the FERC to collect financialand operational
information from major electric utilities. Although the utility is required to provide the Commission
with a copy, the report is not prepared specifically for the Commission. The information is used as the
basis for financial audits but we do not verify each FERC Form 1 report. The Staff does, however;
regularly verify the utility's expenses and revenues for ratemaking purposes. FERC requires that the
Form 1 report be signed by an independent certified public accountant. In addition, reporting utilities
are considered to be under oath when submitting Form 1 reports, and are subject to criminal penalties
under Title 18, U.S. C. 1001 if they willfully submit false, fictitious or fraudulent information.
Nevertheless, if you believe that the average fuel costs have been computed incorrectly or are
based on inaccurate data, you are entitled to file a formal complaint. Contact the Commission
Secretary for instructions on filing a formal complaint, or utilize our web site link at
http://www.puc.state.id.us/scripts/polyform.dl1/cons.
Attached are the data and computations for the adjustment recently approved in Order No.
30078. Also attached are the data and computations for the two previous years.
Sincerely,;?J5~
Rick Sterling, P .E. /
cc: Terri CarlockLocated at 472 West Washington Street, Boise , Idaho 83702
Telephone: [phone] Facsimile: [phone]