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HomeMy WebLinkAbout20170925Utah_Attachment OCS 3.2-3.pdfRevised Figure 1 Data Request OCS 3.2, Assuming 25% Federal Tax Rate 2019 2020 2021 2022 1 Total Company Revenue Requirement -$2,522 $17,555 $5,809 -$8,088 2 Utah Allocated -$1,075 $7,472 $2,463 -$3,460 3 Utah EBA -$215 -$4,136 -$5,869 -$7,732 4 Utah Deferral -$860 $4,136 $5,869 $4,271 5 Net Customer Benefit -$1,075 $0 $0 -$3,460 Repowering Estimated Revenue Requirement Cost (Benefit) $thousands UT 17-035-39 OCS 3.2 Attachment OCS 3.2-3 1 of 8 PacifiCorp Revised Exhibit RMP___(JKL-2) Utah Data Request OCS 3.3, Assuming 25% 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 (32,685) SG 42.6283%(13,933) (143,752) SG 42.6283%(61,279) (197,349) SG 42.6283%(84,126) (230,249) SG 42.6283%(98,151) 4 Net Rate Base sum of lines 1-3 137,943 58,803 818,856 349,064 876,390 373,590 810,161 345,358 5 Pre-Tax Rate of Return line 34 9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566% 6 Pre-Tax Return on Rate Base line 4 * line 5 13,196 5,625 78,331 33,391 83,835 35,737 77,499 33,037 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 22,293 9,503 123,701 52,720 134,102 57,152 124,656 53,126 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)(6,905) (2,944) (27,395) (11,678) (32,531) (13,867) (32,554) (13,877) 18 PTC Revenue Requirement sum of lines 16 and 17 (24,311) (10,363) (96,443) (41,112) (114,526) (48,821) (114,606) (48,855) 19 Rev. Requirement sum of lines 12, 13, 18 (2,522) (1,075) 17,555 7,472 5,809 2,463 (8,088) (3,460) 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 (860) 11,608 8,332 4,271 24 Total Deferral - UT Share Footnote 5 (860) 4,136 5,869 4,271 25 Net Customer Benefit line 22 + line 24 (1,075) - - (3,460) Deferral Balance - UT Share 26 Beginning Deferral Balance line 30 of previous year - (880) 3,922 7,865 27 Monthly Deferral Footnote 5 (860) 4,136 5,869 4,271 28 Deferral Collection Footnote 3 - 587 (2,322) (6,551) 29 Carrying Charge Footnote 3 (20) 80 395 486 30 Ending Deferral Balance sum of lines 26-29 (880) 3,922 7,865 6,071 31 Federal/State Combined Tax Rate JKL_4, line 5 28.405% 32 Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6 1.396733Deferred Balance Carrying Charge Footnote 2 6.00%EBA carrying charge rate under Electric Service Schedule 94 34 Pretax Return JKL_4, line 4 9.566%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 OCS 3.2 Attachment OCS 3.2-3 2 of 8 PacifiCorp Revised Exhibit RMP___(JKL-3) Utah Data Request OCS 3.3, Assuming 25% 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 - - - - - - (60,341) (60,341) (90,511) (90,511) (90,511) (120,682) 4 Net Rate Base sum of lines 1-3 - - - - - - 93,443 93,014 62,416 517,866 888,577 855,671 5 Pre-Tax Rate of Return line 34 9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566% 6 Pre-Tax Return on Rate Base Footnote 1 - - - - - - - 745 741 498 4,128 7,083 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 1,202 1,198 2,327 7,077 10,032 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)- - - - - - (305) (305) (305) (1,412) (2,289) (2,289) 18 PTC Revenue Requirement sum of line 16 and 17 - - - - - - (1,074) (1,074) (1,074) (4,970) (8,059) (8,059) 19 Rev. Requirement sum of lines 12, 13 and 18 - - - - - - (640) 105 102 (2,745) (1,150) 1,806 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 - - - - - - (617) 127 124 (2,642) (982) 1,973 Utah Allocated 24 Total Deferral - UT Share Footnote 4 - - - - - - (263) 54 53 (1,126) (419) 841 25 Net Customer Benefit line 22 * line 36 + line 24 - - - - - - (273) 45 43 (1,170) (490) 770 Deferral Balance - UT Share 26 Beginning Deferral Balance line 30 of previous month - - - - - - - (264) (211) (159) (1,289) (1,715) 27 Monthly Deferral line 24 - - - - - - (263) 54 53 (1,126) (419) 841 28 Deferral Collection Footnote 3 - - - - - - - - - - - - 29 Carrying Charge (ln 26 + .5 * (ln 27 - ln 28)) * ln 33 - - - - - - (1) (1) (1) (4) (7) (6) 30 Ending Deferral Balance sum of lines 26-29 - - - - - - (264) (211) (159) (1,289) (1,715) (880) 31 Federal/State Combined Tax Rate JKL_4, line 5 28.405%32 Net to Gross Bump up Factor = (1/(1-tax rate))JKL_4, line 6 1.3967 33 Deferred Balance Carrying Charge UT EBA rate; see JKL_2 line 33 6.00% 34 Pretax Return JKL_4, line 4 9.566% 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 OCS 3.2 Attachment OCS 3.2-3 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 25% Federal Tax Rate Data Request OCS 3.3, Assuming 25% 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) (120,682) (120,682) (136,062) (136,062) (136,062) (151,442) (151,442) (151,442) (166,823) (166,823) (166,823) (182,203) 852,935 850,200 832,084 829,348 826,613 808,497 808,902 806,158 788,033 785,288 782,543 907,215 9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566% 6,821 6,799 6,777 6,633 6,611 6,589 6,445 6,448 6,426 6,282 6,260 6,238 - - - - - - - - - - - - 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 10,560 10,538 10,517 10,372 10,350 10,329 10,193 10,197 10,175 10,030 10,008 10,431 (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) (2,259) (2,259) (2,259) (2,259) (2,259) (2,259) (2,259) (2,259) (2,259) (2,259) (2,259) (2,541) (7,954) (7,954) (7,954) (7,954) (7,954) (7,954) (7,954) (7,954) (7,954) (7,954) (7,954) (8,947) 1,806 1,784 1,762 1,618 1,596 1,574 1,439 1,442 1,420 1,276 1,254 584 (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) 2,606 2,584 2,562 2,418 2,396 2,374 2,239 2,242 2,220 2,076 2,054 1,485 341 341 341 341 341 341 341 341 341 341 341 384 - - - - - - - - - - - - (880) (543) (204) 137 480 898 1,317 1,739 2,163 2,589 3,017 3,447 341 341 341 341 341 341 341 341 341 341 341 384 - - - - 73 73 73 73 73 73 73 73 (4) (2) (0) 2 3 5 7 9 11 14 16 18 (543) (204) 137 480 898 1,317 1,739 2,163 2,589 3,017 3,447 3,922 UT 17-035-39 OCS 3.2 Attachment OCS 3.2-3 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 25% Federal Tax Rate Data Request OCS 3.3, Assuming 25% 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) (182,203) (182,203) (192,300) (192,300) (192,300) (202,397) (202,397) (202,397) (212,494) (212,494) (212,494) (222,591) 904,073 900,931 887,691 884,549 881,406 868,167 868,895 865,741 852,490 849,336 846,182 832,931 9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566% 7,232 7,207 7,182 7,076 7,051 7,026 6,921 6,926 6,901 6,796 6,771 6,745 - - - - - - - - - - - - 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 11,415 11,390 11,365 11,260 11,234 11,209 11,115 11,121 11,096 10,990 10,965 10,940 (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) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (2,711) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) (9,544) 724 699 674 568 543 518 424 430 405 299 274 249 (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) 1,871 1,846 1,821 1,716 1,691 1,666 1,572 1,577 1,552 1,447 1,421 1,396 489 489 489 489 489 489 489 489 489 489 489 489 - - - - - - - - - - - - 3,922 4,506 5,092 5,680 6,272 6,468 6,664 6,862 7,060 7,260 7,461 7,662 489 489 489 489 489 489 489 489 489 489 489 489 73 73 73 73 (327) (327) (327) (327) (327) (327) (327) (327) 21 24 26 29 33 34 35 36 37 38 39 40 4,506 5,092 5,680 6,272 6,468 6,664 6,862 7,060 7,260 7,461 7,662 7,865 UT 17-035-39 OCS 3.2 Attachment OCS 3.2-3 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 25% Federal Tax Rate Data Request OCS 3.3, Assuming 25% 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) (222,591) (222,591) (227,697) (227,697) (227,697) (232,802) (232,802) (232,802) (237,907) (237,907) (237,907) (243,012) 829,777 826,623 818,364 815,210 812,057 803,798 806,038 802,867 794,591 791,421 788,250 779,975 9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566%9.566% 6,640 6,615 6,590 6,524 6,499 6,473 6,408 6,425 6,400 6,334 6,309 6,284 - - - - - - - - - - - - 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 10,561 10,536 10,511 10,445 10,420 10,395 10,346 10,363 10,338 10,272 10,247 10,222 (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) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (2,713) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (9,551) (501) (526) (551) (617) (642) (667) (716) (699) (724) (790) (815) (840) (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) 1,011 986 960 895 869 844 795 813 788 722 696 671 430 419 408 380 370 359 338 345 335 307 296 285 (215) (225) (236) (264) (275) (285) (306) (299) (310) (338) (349) (359) 7,865 8,009 8,143 8,267 8,363 8,122 7,868 7,593 7,323 7,042 6,730 6,407 430 419 408 380 370 359 338 345 335 307 296 285 (327) (327) (327) (327) (655) (655) (655) (655) (655) (655) (655) (655) 41 42 43 43 44 43 42 40 39 38 36 34 8,009 8,143 8,267 8,363 8,122 7,868 7,593 7,323 7,042 6,730 6,407 6,071 UT 17-035-39 OCS 3.2 Attachment OCS 3.2-3 6 of 8 PacifiCorp Revised Exhibit RMP___(JKL-3)Utah Data Request OCS 3.3, Assuming 25% 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 OCS 3.2 Attachment OCS 3.2-3 7 of 8 PacifiCorp Revised Exhibit RMP___(JKL-4) Utah Data Request OCS 3.3, Assuming 25% 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%0.002% 3 Common 51.428%9.800%5.040%7.040% 4 TOTAL 7.566%9.566% 5 Hypothetical Consol. Tax Rate 28.405%Current Consolidated Tax Rate 37.951% 6 Tax Gross-up factor for PTC = (1/(1 - tax rate))1.3967 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 OCS 3.2 Attachment OCS 3.2-3 8 of 8