20101122Monsanto Rebuttal 3 (1-7) to PAC.pdf

W. MARCUS W. NYE
RANDALL C. BUDGE
JOHN A. BAILEY, JR.
JOHN R. GOODELL
JOHN B. INGELSTROM
DANIEL C. GREEN
BRENT O. ROCHE
KIRK B. HADLEY
FRED J. LEWIS
ERIC L. OLSEN
CONRAD J. AIKEN
RICHARD A. HEARN, M.D.
LANE V. ERICKSON
FREDERICK J. HAHN, II
DAVID E. ALEXANDER
PATRICK N. GEORGE
SCOTT J. SMITH
JOSHUA D. JOHNSON
STEPHEN J. MUHONEN
CANDICE M. MCHUGH
CAROL TIPPI VOLYN
BRENT L. WHITING
JONATHON S. BYINGTON
DAVE BAGLEY
THOMAS J. BUDGE
JONATHAN M. YOLYN
MARK A. SHAFFER
JASON E. FLAIG
FERRELL S. RYAN, III
LAW OFFICES OF
RACINE OLSON NYE BUDGE Be BAILEY
CHARTERED
201 EAST CENTER STREET
POST OFFICE BOX 1391
POCATELLO, IDAHO 83204-1391
BOISE OFFICE
i 0 i SOUTH CAPITOL
BOULEVARD, SU1TE 208BOISE, IDAHO 83702
TELEPHONE: (208) 39S~0011
FACSIMILE:.[phone]
TELEPHONE [phone]
FACSIMILE [phone] IDAHO FALLS OFFICE
477 SHOUP AVENUE
SUITE 107
POST OFFICE BOX 50698
IDAHO FALLS, ID 83405
TELEPHONE: [phone]FACSIMILE: [phone]
ww.racinelaw.net
ALL OFFICES TOLL FREE
[phone]
SENDER'S E-MAIL ADDRESS:rcbilracinelaw.net
November 18, 2010
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"'4 LOUIS FpfNCINE (1917-2005)
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Mrs. Jean Jewell, Secretar
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-0074
Dear Jean:
Re: PAC-E-IO-07
Enclosed for fiing in td;~aSioned matter please find the original and three copies of
Monsanto Company's Second, 'hir and Fourth Rebuttal Data Requests to Rocky Mountain Power.
Than you for your assistance.Si~O.
RADALL C. BUDGE
RCB:rr
Enclosures
cc: Service List (via email)
,.t:\/
Randall C. Budge, ISB No. 1949
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
P.O. Box 1391; 201 E. Center
Pocatello, Idaho 83204-1391
Telephone: [phone]
Fax: [phone]
ZDin NOV 22 ~.M 8: 45
Attorneys for Intervenor Monsanto Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION
IN THE MATTER OF THE APPLICA nON OF )
ROCKY MOUNTAIN POWER FOR APPROVAL )
OF CHANGES TO ITS ELECTRIC SERVICE ) Case No. PAC-E-10-07
SCHEDULES AND A PRICE INCREASE OF $27.7 )
MILLION, OR APPROXIMATELY 13.7 PERCENT )
)
MONSANTO COMPAN'S THI SET OF REBUTTAL DATA REQUESTS
TO ROCK MOUNAI POWER
MONSANTO COMPANY, by and through their attorneys, hereby submits this Third Set
of Rebuttal Data Requests to Rocky Mountain Power, pursuant to Rule 225 of the Idaho Public
Utility Commission's Rules of Procedure, IDAPA 31.01.01, as follows:
The following questions relate to the rebuttl testimony of Bruce Willams:
MONSANTO REBUTTAL 3.1.
At page 5 of Mr. Wiliams' testimony, he states that PacifiCorp is investing more in doing
business than is generated from operations. He states that in the first six months of
2010, the Company invested $876 millon into capital expenditures while generating
only $779 millon of net cash flow from operations. Please provide the sources of cash
the Company relied on to supplement the amount of internal cash flow generation to
meet its capital expenditures in 2010.
MONSANTO COMPANYS THIRD SET OF REBUTTAL DATA REQUESTS TO RMP-1
MONSANTO REBUTTAL 3.2.
At pages 5 and 6 of Mr. Willams' testimony, he is critical of Mr. Gorman for relying on
data only up through June 30, 2010. Please provide complete copies of the most recent
FERC filings, and Securities and Exchange Commission filings, which show more
recent financial data for PacifiCorp and Rocky Mountain Power than that relied on by
Mr. Gorman.
MONSANTO REBUTTAL 3.3.
With respect to pages 6 and 7 of Mr. Willams' testimony, he states some concerns with
Mr. Gorman's use of off-balance sheet debt adjustments to his credit metric calculation.
With respect to this testimony, please answer the following:
a. Please identify the differences in off-balance sheet debt used by Mr. Gorman
and that estimated by Standard and Poor's.
b. To the extent any amount of this is related to post-retirement benefits or
pension expense, please answer the following:
i. Does the Company have discretion on how to make cash contributions
it makes to the trust funds for post-retirement benefis, and pension
expense?
ii. Does the amount of off-balance sheet debt reflect the difference
between the Company's obligation and the value of the trust fund
assets?
iii. Can the Company reduce the off-balance sheet debt for post-
retirement benefits and pension expense by increasing its cash
contributions to the trust fund assets?
MONSANTO COMPANY'S THIRD SET OF REBUTTAL DATA REQUESTS TO RMP - 2
The following questions relate to the rebuttl testimony of Dr. Samuel Hadaway:
MONSANTO REBUTTAL 3.4
Referring to page 3 of Dr. Hadaway's rebuttal testimony, he refers to the most recently
allowed return on equity in Idaho for Avista Corp. as 10.5%. Please state whether or
not that return on equity was a settlement or a litigated position. Please identify the
date the parties agreed to that return on equity finding.
MONSANTO REBUTTAL 3.5.
At page 10 of Dr. Hadaway's testimony, he cites certain deficiencies of the CAPM.
Please identify any proceeding in which Dr. Hadaway has filed in the last five years
where he has relied on the results of a CAPM study to support his recommended return
on equity. For each such proceeding, identify the name of the utility, the state
jurisdiction, the docket and the order date.
MONSANTO REBUTTAL 3.6.
Concerning pages 21 and 22 of Dr. Hadaway's testimony, please identify the number of
proceedings where Dr. Hadaway has recommended his methodology for supporting a
GOP growth forecast for use in a DCF study. For all these proceedings, please identify
any regulatory commission that has accepted his GOP growth forecast methodology.
MONSANTO REBUTTAL 3.7.
Please provide complete copies of all Dr. Hadaway's workpapers supporting his
updated return on equity estimates on an electronic spreadsheet with all formulas intact.
DATED this18th day of November, 2010.
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
x;~£i
RANDALL C. BUDGE
By
for
MONSANTO COMPANY'S THIRD SET OF REBUTTAL DATA REQUESTS TO RMP - 3
CERTIFICATE OF MALING
I HEREBY CERTIFY that on this 18th day of November, 2010, 1 served a true, correct
and complete copy of the foregoing document, to each of the following, via the method so
indicated:
Jean D. Jewell, Secretar (original and 7)
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
E-mail: jjewell~puc.state.id.us U.S. Mail
Ted Weston
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, Utah 84111
E-mail: ted.weston(ßpacificorp.com E-Mail
Paul J. Hickey
Hickey & Evans, LLP
1800 CareyAve., Ste 700
PO Box 467
Cheyenne, WY 82003
E-mail: phickey(ßhickevvans.com E-Mail
Mark C. Moench
Danel Solander
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, Utah 84111
E-mail: mark.moench(ßpacificorp.com
danel.solander(ßpacificorp.com
E-Mail
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, Oregon 97232
E-mail: datarequest(ßpacificorp.com
E-Mail
Scott Woodbur
Deputy Attorney General
Idaho Public Utilities Commission
P. O. Box 83720
Boise, Idaho 83720-0074 E-Mail
MONSANTO COMPANY'S THIRD SET OF REBUTTAL DATA REQUESTS TO RMP - 4
E-mail: scott. woodburv(ßpuc.idaho. gOY
Katie Iverson
Brubaker & Associates
17244 W. Cordova Cour
Surrise, Arizona 85387
E-mail: kiverson(ßconsultbai.com
E-Mail
James R. Smith
Monsanto Company
P. O. Box 816
Soda Springs, Idaho 83276
E-mail: jim.r.smith(ßmonsanto.com
E-Mail
Eric L. Olsen
Racine, Olson, Nye, Budge & Bailey
P.O. Box 1391
Pocatello, Idaho 83204-1391
E-mail: elo(ßracinelaw.net
E-Mail
Anthony Yanel
29814 Lake Road
Bay Vilage, Ohio 44140
E-mail: tony(ßyaneLnet
E-Mail
Tim Buller
Jason Hars
Agrium, Inc.
3010 Conda Road
Soda Springs, Idaho 83276
E-mail: tbuller(ßagrium.com
jahars(ßagrium.com
E-mail
Benjamin J. Otto
Idaho Conservation League
P. O. Box 844
Boise, Idaho 83702
E-mail: botto(ßidahoconservation.org
E-Mail
Dr. Don Reading
6070 Hil Road
Boise, ID 83703
E-mail: dreading(ßmindspring.com E-Mail
MONSANTO COMPANY'S THIRD SET OF REBUTTAL DATA REQUESTS TO RMP - 5
.
Melinda J. Davison
Davison Van Cleve, P.C.
333 SW Taylor, Suite 400Portland, Oregon 97204 E-Mail
E-mail: mjd(idvclaw.com
Ronald L. Wiliams
Wiliams Bradbur, P.C.
1015 W. Hays StreetBoise, Idaho 83702 E-Mail
E-mail: ron(iwiliamsbradbury.com
Brad M. Purdy
Attorney at Law
2019 N. 17th StreetBoise, Idaho 83702 E-Mail
E-mail: bmpurdy(ihotmail.com
~ßL
for RANDALL C. BUDGE
MONSANTO COMPANY'S THIRD SET OF REBUTTAL DATA REQUESTS TO RMP . 6