HomeMy WebLinkAbout20170925Utah_Attachment OCS 3.2-2.pdfRevised Figure 1
Data Request OCS 3.2, Assuming 20% Federal Tax Rate
2019 2020 2021 2022
1
Total Company
Revenue Requirement -$1,109 $22,184 $12,137 -$959
2 Utah Allocated -$473 $9,445 $5,160 -$422
3 Utah EBA -$215 -$4,136 -$5,869 -$7,732
4 Utah Deferral -$257 $4,136 $5,869 $7,310
5 Net Customer Benefit -$473 $0 $0 -$422
Repowering Estimated Revenue Requirement Cost (Benefit)
$thousands
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
1 of 8
PacifiCorp Revised Exhibit RMP___(JKL-2)
Utah Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Wind Repowering - Example Annual RTM Deferral Calculation
Revenue Requirement
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)(m)(n)(o)(p)
$-ThousandsLine
No.Reference
Total
Company Factor Factor %Utah
Allocated
Total
Company Factor Factor %Utah
Allocated
Total
Company Factor Factor %Utah
Allocated
Total
Company Factor Factor %Utah
Allocated
Plant Revenue Requirement
1 Capital Investment Footnote 1 171,567 SG 42.6283%73,136 986,120 SG 42.6283%420,366 1,132,769 SG 42.6283%482,880 1,137,288 SG 42.6283%484,807
2 Depreciation Reserve Footnote 1 (939) SG 42.6283%(400) (23,511) SG 42.6283%(10,023) (59,031) SG 42.6283%(25,164) (96,879) SG 42.6283%(41,298)
3 Accumulated DIT Balance Footnote 1 (27,192) SG 42.6283%(11,592) (119,597) SG 42.6283%(50,982) (164,187) SG 42.6283%(69,990) (191,559) SG 42.6283%(81,659)
4 Net Rate Base sum of lines 1-3 143,435 61,144 843,011 359,361 909,551 387,726 848,850 361,850
5 Pre-Tax Rate of Return line 34 9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%
6 Pre-Tax Return on Rate Base line 4 * line 5 13,090 5,580 76,932 32,795 83,004 35,383 77,465 33,022
7 Wholesale Wheeling Revenue Footnote 4 - SG 42.6283%- - SG 42.6283%- - SG 42.6283%- - SG 42.6283%- 8 Operation & Maintenance Footnote 3 583 SG 42.6283%248 4,379 SG 42.6283%1,867 3,864 SG 42.6283%1,647 844 SG 42.6283%360
9 Depreciation Footnote 3 & 6 8,454 SG 42.6283%3,604 33,279 SG 42.6283%14,186 37,778 SG 42.6283%16,104 37,947 SG 42.6283%16,176
10 Property Taxes Footnote 3 - GPS 42.4704%- 7,506 GPS 42.4704%3,188 8,375 GPS 42.4704%3,557 8,115 GPS 42.4704%3,446
11 Wind Tax Footnote 3 60 SG 42.6283%26 206 SG 42.6283%88 251 SG 42.6283%107 251 SG 42.6283%107
12 Total Plant Revenue Requirement sum of lines 6-11 22,187 9,458 122,302 52,123 133,272 56,798 124,621 53,111
Net Power Cost
13 NPC Incremental Savings Footnote 3 (505) SG 42.6283%(215) (9,703) SG 42.6283%(4,136) (13,767) SG 42.6283%(5,869) (18,137) SG 42.6283%(7,732)
PTC Benefit
14 PTC Benefit Footnote 3 (17,405) SG 42.6283%(7,420) (69,048) SG 42.6283%(29,434) (81,995) SG 42.6283%(34,953) (82,052) SG 42.6283%(34,977) 15 PTC Benefit in Base Rates Footnote 3 - SG 42.6283%- - SG 42.6283%- - SG 42.6283%- - SG 42.6283%-
16 Net PTC sum of lines 14 and 15 (17,405) (7,420) (69,048) (29,434) (81,995) (34,953) (82,052) (34,977)
17 Gross- up for taxes line 16 * (line 32 - 1)(5,386) (2,296) (21,367) (9,108) (25,373) (10,816) (25,391) (10,824)
18 PTC Revenue Requirement sum of lines 16 and 17 (22,791) (9,715) (90,415) (38,542) (107,368) (45,769) (107,443) (45,801)
19 Rev. Requirement sum of lines 12, 13, 18 (1,109) (473) 22,184 9,445 12,137 5,160 (959) (422)
Adjustment for EBA Pass-through
20 NPC Incremental Savings line 13 (215) (4,136) (5,869) (7,732)
21 Percentage included in EBA (100%)UT EBA Sharing %100%100%100%100%
22 EBA Pass-through line 20 * line 21 (215) (4,136) (5,869) (7,732)
23 Rev. Reqt. after EBA Pass-through line 19 - line 22 (257) 13,581 11,029 7,310
24 Total Deferral - UT Share Footnote 5 (257) 4,136 5,869 7,310
25 Net Customer Benefit line 22 + line 24 (473) - - (422)
Deferral Balance - UT Share
26 Beginning Deferral Balance line 30 of previous year - (271) 4,157 7,742
27 Monthly Deferral Footnote 5 (257) 4,136 5,869 7,310 28 Deferral Collection Footnote 3 - 181 (2,681) (6,547)
29 Carrying Charge Footnote 3 (14) 111 398 567
30 Ending Deferral Balance sum of lines 26-29 (271) 4,157 7,742 9,073
31 Federal/State Combined Tax Rate JKL_4, line 5 23.632%
32 Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6 1.309433Deferred Balance Carrying Charge Footnote 2 6.00%EBA carrying charge rate under Electric Service Schedule 94
34 Pretax Return JKL_4, line 4 9.126%13-035-184 Capital Structure & Cost - Ordered
35 Property Tax Rate JKL_4, line 14 0.77%Property Tax Expense as a percent of Net plant from 13-035-184
36 Utah SG Factor JKL_4, line 15 42.6283%37 Utah GPS Factor JKL_4, line 16 42.4704%
Footnotes:
1) Capital balances equal the average of the monthly balances in JKL-3 with a one month delay
2) Carrying Charge (line 29) is applied to average monthly deferral balances
3) Equals the sum of each year's monthly values in JKL-3
4) Not Applicable for Repowering
5) The Company is proposing to cap the RTM until the next general rate case so that, after taking into account the
wind repowering benefits that will flow through the Company's EBA, it will not operate to surcharge customers
6) As stated in testimony, actual depreciation expense will be adjusted by the impact of the retired assets until the next depreciation study
2019 Repowering 2020 Repowering 2021 Repowering 2022 Repowering
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
2 of 8
PacifiCorp Revised Exhibit RMP___(JKL-3)
Utah Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Wind Repowering - Example Monthly RTM Deferral Calculation Page 1 of 5
Revenue Requirement
$-Thousands 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019
Line
No.Reference January February March April May June July August September October November December
Total Company
Plant Revenue Requirement
1 Capital Investment - - - - - - 154,212 154,212 154,212 611,361 984,807 984,807
2 Depreciation Reserve - - - - - - (428) (857) (1,285) (2,983) (5,719) (8,454)
3 Accumulated DIT Balance - - - - - - (50,202) (50,202) (75,302) (75,302) (75,302) (100,403) 4 Net Rate Base sum of lines 1-3 - - - - - - 103,582 103,154 77,624 533,075 903,786 875,950
5 Pre-Tax Rate of Return line 34 9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%
6 Pre-Tax Return on Rate Base Footnote 1 - - - - - - - 788 784 590 4,054 6,873
7 Wholesale Wheeling Revenue Footnote 2 - - - - - - - - - - - -
8 Operation & Maintenance - - - - - - 26 26 26 119 193 193
9 Depreciation Footnote 5 - - - - - - 428 428 428 1,698 2,736 2,736
10 Property Taxes Prior December (line 1 + line 2) x line 35 - - - - - - - - - - - -
11 Wind Tax - - - - - - 3 3 3 12 20 20 12 Total Plant Revenue Requirement sum of lines 6-11 - - - - - - 457 1,245 1,241 2,420 7,003 9,822
Net Power Cost
13 NPC Incremental Savings See Exhibit JKL-4 - - - - - - (22) (22) (22) (103) (167) (167)
PTC Benefit
14 PTC Benefit - - - - - - (769) (769) (769) (3,558) (5,770) (5,770)
15 PTC Benefit in Base Rates - - - - - - - - - - - -
16 Net PTC sum of lines 14 and 15 - - - - - - (769) (769) (769) (3,558) (5,770) (5,770)
17 Gross- up for taxes line 16 * (line 31 - 1)- - - - - - (238) (238) (238) (1,101) (1,786) (1,786) 18 PTC Revenue Requirement sum of line 16 and 17 - - - - - - (1,007) (1,007) (1,007) (4,659) (7,555) (7,555)
19 Rev. Requirement sum of lines 12, 13 and 18 - - - - - - (573) 215 212 (2,342) (720) 2,099
Adjustment for EBA Pass-through20 NPC Incremental Savings line 13 - - - - - - (22) (22) (22) (103) (167) (167)
21 Percentage included in EBA (100%)100%100%100%100%100%100%100%100%100%100%100%100%
22 EBA Pass-through line 20 * line 21 - - - - - - (22) (22) (22) (103) (167) (167)
23 Rev. Reqt after EBA Pass-through line 19 - line 22 - - - - - - (550) 237 234 (2,239) (553) 2,266
Utah Allocated
24 Total Deferral - UT Share Footnote 4 - - - - - - (235) 101 100 (954) (236) 966
25 Net Customer Benefit line 22 * line 36 + line 24 - - - - - - (244) 92 90 (998) (307) 895
Deferral Balance - UT Share
26 Beginning Deferral Balance line 30 of previous month - - - - - - - (235) (135) (35) (992) (1,234)
27 Monthly Deferral line 24 - - - - - - (235) 101 100 (954) (236) 966
28 Deferral Collection Footnote 3 - - - - - - - - - - - -
29 Carrying Charge (ln 26 + .5 * (ln 27 - ln 28)) * ln 33 - - - - - - (1) (1) (0) (3) (6) (4)
30 Ending Deferral Balance sum of lines 26-29 - - - - - - (235) (135) (35) (992) (1,234) (271)
31 Federal/State Combined Tax Rate JKL_4, line 5 23.632%32 Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6 1.3094
33 Deferred Balance Carrying Charge UT EBA rate; see JKL_2 line 33 6.00%
34 Pretax Return JKL_4, line 4 9.126%
35 Property Tax Rate JKL_4, line 14 0.77%
36 Utah SG Factor JKL_4, line 15 42.6283%
37 Utah GPS Factor JKL_4, line 16 42.4704%
Footnotes:
1) Pre-tax Return, line 6, is calculated as the rate of return (line 5) multiplied by the ending net rate base of the prior month (line 4) divided by 12
2) Not Applicable for Repowering
3) For illustrative purposes, collection of December's balance is assumed to be collected beginning the following May 1
4) The Company is proposing to cap the RTM until the next general rate case so that, after taking into account the
wind repowering benefits that will flow through the Company's EBA, it will not operate to surcharge customers
5) As stated in testimony, actual depreciation expense will be adjusted by the impact of the retired assets until the next depreciation study
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
3 of 8
PacifiCorp
Utah
Wind Repowering - Example Monthly RTM Deferral Calculation
Revenue Requirement
$-Thousands
Line
No.Reference
Total Company
Plant Revenue Requirement
1 Capital Investment
2 Depreciation Reserve
3 Accumulated DIT Balance4 Net Rate Base sum of lines 1-3
5 Pre-Tax Rate of Return line 34
6 Pre-Tax Return on Rate Base Footnote 1
7 Wholesale Wheeling Revenue Footnote 2
8 Operation & Maintenance
9 Depreciation Footnote 5
10 Property Taxes Prior December (line 1 + line 2) x line 35
11 Wind Tax12Total Plant Revenue Requirement sum of lines 6-11
Net Power Cost
13 NPC Incremental Savings See Exhibit JKL-4
PTC Benefit
14 PTC Benefit
15 PTC Benefit in Base Rates16 Net PTC sum of lines 14 and 15
17 Gross- up for taxes line 16 * (line 31 - 1)18 PTC Revenue Requirement sum of line 16 and 17
19 Rev. Requirement sum of lines 12, 13 and 18
Adjustment for EBA Pass-through20 NPC Incremental Savings line 13
21 Percentage included in EBA (100%)
22 EBA Pass-through line 20 * line 21
23 Rev. Reqt after EBA Pass-through line 19 - line 22
Utah Allocated
24 Total Deferral - UT Share Footnote 4
25 Net Customer Benefit line 22 * line 36 + line 24
Deferral Balance - UT Share
26 Beginning Deferral Balance line 30 of previous month
27 Monthly Deferral line 24
28 Deferral Collection Footnote 3
29 Carrying Charge (ln 26 + .5 * (ln 27 - ln 28)) * ln 33
30 Ending Deferral Balance sum of lines 26-29
31 Federal/State Combined Tax Rate JKL_4, line 532Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6
33 Deferred Balance Carrying Charge UT EBA rate; see JKL_2 line 33
34 Pretax Return JKL_4, line 4
35 Property Tax Rate JKL_4, line 14
36 Utah SG Factor JKL_4, line 15
37 Utah GPS Factor JKL_4, line 16
Revised Exhibit RMP___(JKL-3)Revised Exhibit RMP___(JKL-3)
Data Request OCS 3.3, Assuming 20% Federal Tax Rate Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Page 2 of 5
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020
January February March April May June July August September October November December
984,807 984,807 984,807 984,807 984,807 984,807 987,957 987,957 987,957 987,957 987,957 1,131,152
(11,190) (13,926) (16,661) (19,397) (22,132) (24,868) (27,613) (30,357) (33,102) (35,846) (38,591) (41,733)
(100,403) (100,403) (113,199) (113,199) (113,199) (125,995) (125,995) (125,995) (138,791) (138,791) (138,791) (151,587) 873,214 870,478 854,947 852,211 849,476 833,944 834,350 831,605 816,064 813,320 810,575 937,832
9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%
6,662 6,641 6,620 6,502 6,481 6,460 6,342 6,345 6,324 6,206 6,185 6,164
- - - - - - - - - - - -
361 361 361 361 361 361 361 361 361 361 361 406
2,736 2,736 2,736 2,736 2,736 2,736 2,745 2,745 2,745 2,745 2,745 3,142
625 625 625 625 625 625 625 625 625 625 625 625
17 17 17 17 17 17 17 17 17 17 17 19 10,401 10,380 10,359 10,241 10,220 10,199 10,090 10,093 10,073 9,954 9,933 10,358
(800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (900)
(5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (6,405)
- - - - - - - - - - - -
(5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (5,695) (6,405)
(1,762) (1,762) (1,762) (1,762) (1,762) (1,762) (1,762) (1,762) (1,762) (1,762) (1,762) (1,982) (7,457) (7,457) (7,457) (7,457) (7,457) (7,457) (7,457) (7,457) (7,457) (7,457) (7,457) (8,388)
2,143 2,123 2,102 1,984 1,963 1,942 1,833 1,836 1,815 1,697 1,676 1,070
(800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (900)
100%100%100%100%100%100%100%100%100%100%100%100%
(800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (900)
2,944 2,923 2,902 2,784 2,763 2,742 2,633 2,636 2,615 2,497 2,476 1,970
341 341 341 341 341 341 341 341 341 341 341 384
- - - - - - - - - - - -
(271) 69 412 756 1,102 1,472 1,843 2,217 2,593 2,970 3,350 3,731
341 341 341 341 341 341 341 341 341 341 341 384
- - - - 23 23 23 23 23 23 23 23
(1) 1 3 5 6 8 10 12 14 16 18 20
69 412 756 1,102 1,472 1,843 2,217 2,593 2,970 3,350 3,731 4,157
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
4 of 8
PacifiCorp
Utah
Wind Repowering - Example Monthly RTM Deferral Calculation
Revenue Requirement
$-Thousands
Line
No.Reference
Total Company
Plant Revenue Requirement
1 Capital Investment
2 Depreciation Reserve
3 Accumulated DIT Balance4 Net Rate Base sum of lines 1-3
5 Pre-Tax Rate of Return line 34
6 Pre-Tax Return on Rate Base Footnote 1
7 Wholesale Wheeling Revenue Footnote 2
8 Operation & Maintenance
9 Depreciation Footnote 5
10 Property Taxes Prior December (line 1 + line 2) x line 35
11 Wind Tax12Total Plant Revenue Requirement sum of lines 6-11
Net Power Cost
13 NPC Incremental Savings See Exhibit JKL-4
PTC Benefit
14 PTC Benefit
15 PTC Benefit in Base Rates16 Net PTC sum of lines 14 and 15
17 Gross- up for taxes line 16 * (line 31 - 1)18 PTC Revenue Requirement sum of line 16 and 17
19 Rev. Requirement sum of lines 12, 13 and 18
Adjustment for EBA Pass-through20 NPC Incremental Savings line 13
21 Percentage included in EBA (100%)
22 EBA Pass-through line 20 * line 21
23 Rev. Reqt after EBA Pass-through line 19 - line 22
Utah Allocated
24 Total Deferral - UT Share Footnote 4
25 Net Customer Benefit line 22 * line 36 + line 24
Deferral Balance - UT Share
26 Beginning Deferral Balance line 30 of previous month
27 Monthly Deferral line 24
28 Deferral Collection Footnote 3
29 Carrying Charge (ln 26 + .5 * (ln 27 - ln 28)) * ln 33
30 Ending Deferral Balance sum of lines 26-29
31 Federal/State Combined Tax Rate JKL_4, line 532Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6
33 Deferred Balance Carrying Charge UT EBA rate; see JKL_2 line 33
34 Pretax Return JKL_4, line 4
35 Property Tax Rate JKL_4, line 14
36 Utah SG Factor JKL_4, line 15
37 Utah GPS Factor JKL_4, line 16
Revised Exhibit RMP___(JKL-3)Revised Exhibit RMP___(JKL-3)
Data Request OCS 3.3, Assuming 20% Federal Tax Rate Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Page 3 of 5
2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021
January February March April May June July August September October November December
1,131,152 1,131,152 1,131,152 1,131,152 1,131,152 1,131,152 1,135,034 1,135,034 1,135,034 1,135,034 1,135,034 1,135,034
(44,876) (48,018) (51,161) (54,303) (57,445) (60,588) (63,742) (66,896) (70,050) (73,203) (76,357) (79,511)
(151,587) (151,587) (159,987) (159,987) (159,987) (168,388) (168,388) (168,388) (176,788) (176,788) (176,788) (185,188) 934,689 931,547 920,004 916,862 913,719 902,176 902,904 899,751 888,196 885,042 881,888 870,334
9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%
7,132 7,108 7,084 6,997 6,973 6,949 6,861 6,866 6,843 6,755 6,731 6,707
- - - - - - - - - - - -
322 322 322 322 322 322 322 322 322 322 322 322
3,142 3,142 3,142 3,142 3,142 3,142 3,154 3,154 3,154 3,154 3,154 3,154
698 698 698 698 698 698 698 698 698 698 698 698
21 21 21 21 21 21 21 21 21 21 21 21 11,315 11,291 11,268 11,180 11,156 11,132 11,056 11,061 11,037 10,949 10,925 10,901
(1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147)
(6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833)
- - - - - - - - - - - -
(6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833) (6,833)
(2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (2,114) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947) (8,947)
1,221 1,197 1,173 1,085 1,061 1,037 961 967 943 855 831 807
(1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147)
100%100%100%100%100%100%100%100%100%100%100%100%
(1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147) (1,147)
2,368 2,344 2,320 2,232 2,208 2,185 2,108 2,114 2,090 2,002 1,978 1,954
489 489 489 489 489 489 489 489 489 489 489 489
- - - - - - - - - - - -
4,157 4,691 5,227 5,766 6,307 6,484 6,661 6,839 7,018 7,198 7,378 7,560
489 489 489 489 489 489 489 489 489 489 489 489
23 23 23 23 (346) (346) (346) (346) (346) (346) (346) (346)
22 25 27 30 34 35 35 36 37 38 39 40
4,691 5,227 5,766 6,307 6,484 6,661 6,839 7,018 7,198 7,378 7,560 7,742
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
5 of 8
PacifiCorp
Utah
Wind Repowering - Example Monthly RTM Deferral Calculation
Revenue Requirement
$-Thousands
Line
No.Reference
Total Company
Plant Revenue Requirement
1 Capital Investment
2 Depreciation Reserve
3 Accumulated DIT Balance4 Net Rate Base sum of lines 1-3
5 Pre-Tax Rate of Return line 34
6 Pre-Tax Return on Rate Base Footnote 1
7 Wholesale Wheeling Revenue Footnote 2
8 Operation & Maintenance
9 Depreciation Footnote 5
10 Property Taxes Prior December (line 1 + line 2) x line 35
11 Wind Tax12Total Plant Revenue Requirement sum of lines 6-11
Net Power Cost
13 NPC Incremental Savings See Exhibit JKL-4
PTC Benefit
14 PTC Benefit
15 PTC Benefit in Base Rates16 Net PTC sum of lines 14 and 15
17 Gross- up for taxes line 16 * (line 31 - 1)18 PTC Revenue Requirement sum of line 16 and 17
19 Rev. Requirement sum of lines 12, 13 and 18
Adjustment for EBA Pass-through20 NPC Incremental Savings line 13
21 Percentage included in EBA (100%)
22 EBA Pass-through line 20 * line 21
23 Rev. Reqt after EBA Pass-through line 19 - line 22
Utah Allocated
24 Total Deferral - UT Share Footnote 4
25 Net Customer Benefit line 22 * line 36 + line 24
Deferral Balance - UT Share
26 Beginning Deferral Balance line 30 of previous month
27 Monthly Deferral line 24
28 Deferral Collection Footnote 3
29 Carrying Charge (ln 26 + .5 * (ln 27 - ln 28)) * ln 33
30 Ending Deferral Balance sum of lines 26-29
31 Federal/State Combined Tax Rate JKL_4, line 532Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6
33 Deferred Balance Carrying Charge UT EBA rate; see JKL_2 line 33
34 Pretax Return JKL_4, line 4
35 Property Tax Rate JKL_4, line 14
36 Utah SG Factor JKL_4, line 15
37 Utah GPS Factor JKL_4, line 16
Revised Exhibit RMP___(JKL-3)Revised Exhibit RMP___(JKL-3)
Data Request OCS 3.3, Assuming 20% Federal Tax Rate Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Page 4 of 5
2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022
January February March April May June July August September October November December
1,135,034 1,135,034 1,135,034 1,135,034 1,135,034 1,135,034 1,140,444 1,140,444 1,140,444 1,140,444 1,140,444 1,140,444
(82,665) (85,819) (88,973) (92,127) (95,281) (98,435) (101,605) (104,776) (107,946) (111,117) (114,287) (117,458)
(185,188) (185,188) (189,436) (189,436) (189,436) (193,683) (193,683) (193,683) (197,930) (197,930) (197,930) (202,178) 867,180 864,026 856,625 853,471 850,317 842,916 845,156 841,986 834,568 831,397 828,227 820,809
9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%9.126%
6,619 6,595 6,571 6,515 6,491 6,467 6,410 6,427 6,403 6,347 6,323 6,299
- - - - - - - - - - - -
70 70 70 70 70 70 70 70 70 70 70 70
3,154 3,154 3,154 3,154 3,154 3,154 3,171 3,171 3,171 3,171 3,171 3,171
676 676 676 676 676 676 676 676 676 676 676 676
21 21 21 21 21 21 21 21 21 21 21 21 10,540 10,516 10,492 10,436 10,412 10,388 10,348 10,365 10,341 10,285 10,261 10,237
(1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511)
(6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838)
- - - - - - - - - - - -
(6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838) (6,838)
(2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (2,116) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954) (8,954)
75 51 27 (29) (53) (77) (117) (100) (124) (180) (204) (228)
(1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511)
100%100%100%100%100%100%100%100%100%100%100%100%
(1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511) (1,511)
1,587 1,563 1,539 1,482 1,458 1,434 1,395 1,412 1,388 1,331 1,307 1,283
675 665 655 631 621 610 593 601 590 566 556 546
31 21 11 (13) (24) (34) (51) (44) (54) (78) (88) (98)
7,742 8,113 8,474 8,828 9,159 9,183 9,197 9,194 9,199 9,193 9,164 9,123
675 665 655 631 621 610 593 601 590 566 556 546
(346) (346) (346) (346) (645) (645) (645) (645) (645) (645) (645) (645)
41 43 45 47 49 49 49 49 49 49 49 49
8,113 8,474 8,828 9,159 9,183 9,197 9,194 9,199 9,193 9,164 9,123 9,073
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
6 of 8
PacifiCorp Revised Exhibit RMP___(JKL-3)Utah Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Wind Repowering - Example Monthly RTM Deferral Calculation Page 5 of 5
Revenue Requirement
Total Plant Revenue Requirement (Lines 1 -12, 34):
Exhibit JKL-3 shows the calculation of the RTM revenue requirement deferral described in my testimony. The calculation starts with total Company amounts on lines 1 -
23 to calculate the Utah specific amounts on lines 24 -30. To calculate the return on rate base associated with the wind repowering investment, net rate base
associated with the repowered wind resources is calculated on a monthly basis. The net rate base balance on line 4 includes the investment in repowered wind
resources, along with the associated impacts on the depreciation reserve and accumulated DIT Balance. The monthly beginning net rate base (the final amount from the
prior month) is then multiplied by the pre-tax Weighted Average Cost of Capital (“WACC”) from the last Utah general rate case on line 5 to determine the Company's pre-
tax return on rate base on line 6. The example uses the pre-tax WACC from Docket No. 09-035-15. The total plant revenue requirement is calculated by taking the return
on rate base shown on line 6 and adding the O&M expense, depreciation expense, property taxes and wind tax on lines 8 -11 to determine the total plant revenue
requirement on line 12. Wholesale wheeling revenue on line 7 is not used for wind repowering, but is needed for a similar calculation for the Gateway transmission and
wind expansion project.
Net Power Costs (Line 13):
The total company incremental NPC savings associated with repowered wind resources is shown on line 13. The incremental NPC savings associated with the
repowered wind projects are multiplied by one hundred percent on line 21 to determine the amount of the NPC savings that will be returned to customers through the
sharing band of the EBA.The calculation of NPC savings is described in Exhibit JKL-4.
PTC Benefits (Lines 14-18, 31, 32):
Lines 14-18 show the calculation of the PTC benefits associated with the repowered wind resources. The actual PTC sales are grossed-up for taxes using the net-to-
gross bump-up factor from the Company’s last general rate case (shown on line 32) to derive the PTC revenue requirement on line 18. The tax gross-up is necessary for
customers to get the full revenue requirement benefit of the PTCs and is calculated using the federal and state combined tax rate shown on line 31, which was also
included in the last general rate case.
Deferral Balance (Lines 19 –30):
The Utah share of the net deferral begins by calculating the total repowering project revenue requirement on line 19, which is the sum of Total Plant Revenue
Requirement on line 12, NPC Incremental Savings on line 13, and PTC Revenue Requirement on line 18. The EBA pass-through on line 22 is subtracted to provide the
Revenue Requirement after EBA Pass-through on line 23. Utah's share of the Total Deferral is dependent upon the amount of revenue requirement cost or benefit that
is determined in a particular year. If the Revenue Requirement after EBA Pass-through for any year on line 23 is negative, which means that the repowering project
provides a revenue requirement benefit greater than the benefit being passed through the EBA, then that year's deferral is equal to the additional benefit found on line 23. If the Revenue Requirement after EBA Pass-through for any year on line 23 is positive, the Company is proposing to cap the RTM until the next general rate case so
that, after taking into account the wind repowering benefits that will flow through the Company's EBA, it will not operate to surcharge customers. The Net Customer
Benefit (line 25) is the sum of the EBA Pass-through (line 22) and the Total Deferral -Utah Share (line 24). The carrying charge, shown on line 29 is calculated using the
Commission-authorized rate on line 33 and is consistent with the calculations used in the Company's other mechanisms such as the EBA. As described earlier, each
month the total-Company RTM revenue requirement will be calculated as illustrated on Exhibit JKL-3 to align with the resources included in the EBA. Once per year on a
calendar-year basis, the Company will sum the monthly RTM revenue requirement entries to prepare the annual RTM application for filing with the Commission on
March15, with an interim rate effective date that corresponds with the EBA application, May 1.
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
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PacifiCorp Revised Exhibit RMP___(JKL-4)
Utah Data Request OCS 3.3, Assuming 20% Federal Tax Rate
Wind Repowering - Capital Structure, Property Tax and Net Power Cost Description
Capital Structure and Property Tax Rate
13-035-184 Capital Structure & Cost
Effective 9/1/2014
Line
no.Capital Structure
Capital
Structure
Capital
Cost
Weighted
Cost Pre-Tax Cost
1 Debt 48.556%5.200%2.525%2.525%
2 Preferred 0.016%6.753%0.001%0.001%
3 Common 51.428%9.800%5.040%6.600%
4 TOTAL 7.566%9.126%
5 Hypothetical Consol. Tax Rate 23.632%Current Consolidated Tax Rate 37.951%
6 Tax Gross-up factor for PTC = (1/(1 - tax rate))1.3094
Property Tax Calculation as filed in Docket Number 13-035-184
7 Total Company 134,961,526
8 Utah GPS Factor 42.4704%
9 Utah Property Taxes 57,318,700
10 Utah Gross EPIS 10,912,081,614
11 Utah Accum. Depr.(3,234,910,020)
12 Utah Accum. Amort. (221,249,967)
13 Utah Net EPIS 7,455,921,626
14 Estimated Utah Property Tax Rate 0.769%
15 Utah SG Factor - Docket No. 13-035-184 42.6283%
16 Utah GPS Factor - Docket No. 13-035-184 42.4704%
Net Power Cost Incremental Savings Calculation and Definitions
Incremental Generation = Wind Plant Generation MWh – Base Wind Plant Generation MWh
Base Wind Plant Generation = Wind Plant Generation MWh / (1 + Project Generation Increase %)
𝑁𝑃𝐶 𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝑆𝑎𝑣𝑖𝑛𝑔𝑠
=[𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝐺𝑒𝑛𝐻𝐿𝐻× 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒𝐻𝐿𝐻−𝐼𝑛𝑡𝑒𝑔𝑟𝑎𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡𝑠 ]
+[𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝐺𝑒𝑛𝐿𝐿𝐻× 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒𝐿𝐿𝐻−𝐼𝑛𝑡𝑒𝑔𝑟𝑎𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡𝑠 ]
𝑅𝑇𝑀 𝑁𝑃𝐶 𝐵𝑒𝑛𝑒𝑓𝑖𝑡=𝑁𝑃𝐶 𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝑆𝑎𝑣𝑖𝑛𝑔𝑠× 𝐸𝐶𝐴𝑀 𝑆ℎ𝑎𝑟𝑖𝑛𝑔 𝐵𝑎𝑛𝑑
Where:
Incremental Generation = The increase in generation at the wind plant due to repowering
Project Generation Increase % = The percentage change in energy at the wind plant due to
repowering (See Confidential Exhibit RMP__TJH-3, page 2 of 2)
𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝐺𝑒𝑛𝐻𝐿𝐻= The increase in generation at the wind plant due to repowering during
heavy load hours
𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝐺𝑒𝑛𝐿𝐿𝐻= The increase in generation at the wind plant due to repowering during light
load hours
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒𝐻𝐿𝐻 = Heavy load hour monthly market price
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒𝐿𝐿𝐻 = Light load hour monthly market price Integration Costs = Wind integration costs from the most recent IRP
RTM NPC Benefit = The NPC repowering benefit absorbed by the Company in the ECAM as a result
of the sharing band
UT 17-035-39
DPU 3.2 Attachment DPU 3.2-2
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