20130308PAC to Monsanto 10-035-124 DPU 57.1.docx

DPUData Request 57.1In reference to the information provided in attachment D of the November 1, 2012 hedging report, please explain the reason for the significant increase in the forecast electric requirement beginning in January 2017.
Response to DPUData Request 57.1The Company notes that the DPU is referencing Confidential Attachment D of the Semi-Annual Hedging Report, filed with the Public Service Commission of Utah on November 1, 2012.The data included in Confidential Attachment D is the source data used to create Figures 11 through 15 in the Semi-Annual Hedging Report. These figures represent the Company’s power and natural gas open positions for the forward 36-month trading period and are not impacted by the 2017 positions. The positions in 2017 are not used by the Company in any manner. In future reports these data will be truncated to cover only the 36-month forward trading period.The significant increase in forecast electricity requirements starting in January 2017 in Confidential Attachment D is due to a mismatch in deal lengths for owned generation and retail load in the energy trading system. The owned generation deals extend through 2018 while the load deals extend through 2016. After 2016 the electricity requirement position shows the length from owned generation but not the offsetting short from retail load.