20180227PAC to Staff 41-43.pdf

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1407 W North Temple, Suite 330
salt Lake city, Utah 84116
February 23, 2018
Diane Hanian
Idaho Public Utilities Comnrission
472W. Washington
Boise, ID 83702-5918
[e-mail]. gw (C)
RE: ID PAC-E-17-06
IPUC 5tr' Set Data Request (41-43)
Please find enclosed Rocky Mountain Power's Responses to IPUC 5th Set Data Requests 42-43
The response to IPUC 4l rvill be provided separately. Also providcd is Attachment IPIUC 43.
If you liave any questions, please l-eel free to call rne at [phone]
Sincerely,
J.roZfu/{-b^/a-
J. Ted Weston
Manager, Regulation
Enclosures
C.c.: Rr:nald L. Williams/PIIC fon@williafnsbradbury=oorl (C)
Brad Mull i nsl? IIC bnn ul I i n s@m rvanal )rti cs. corn (C)
Jinr Duke/PiIC i ilrke(eDidahoarr.corU (CXW)
Kyl e Williams/PIIC u,il liarn sk(0blui.edu (CXW)
Val Steiner/P I lC r.al. steiner(@.agriur:r. com (C)(W)
J am es R. Smitiv''Mon santo j irq. r. smith@rnonsan to. gom (CXW)
Bri an C. Collins/Brubaker & Associates bcol lins@,cousultbai. corn (CXW)
M auri ce Brubaker/Mon santo rn brub aker@-cons ultb ai. com (C X W)
Katie IversonlMonsanto [e-mail] (C)
Eric L. Olsen/IIPA eloGDechoharvk.com (C)
Anthony YankellllPA [e-mail] (C)
Randal I C. Budge/Monsanto rcb@racinelarv.n et (C)
Thomas .1. Budge/Monsanto [e-mail] (CXW)
PAC-E-17 -06 I Rocky Mountain Power
February 23.2018
IPUC 5th Set Data Request 42
IPUC Data Request 42
Please provide a copy of the master retrofit contract with General Electric and the
supply contract with Vestas mentioned in the Cornpliance filling on page 4.
Response to IPUC Data Request 42
Thc master retrofit contract and turbine supply contracts are considered highly
confidential and commercially sensitive. The Company requests special handling.
PIease contact Ted Weston [phone] to make arrangements for review.
Recordholder: Tirn Hemstreet
Sponsor: Tim Hemstreet
PAC-E- 17-06 I Rockv Mountain Power
Fcbruary 23. 2018
IPUC 5tr' Set Data Request 43
IPUC Data Request 43
In tlre Cornpliance Filing dated February 7,2018. Itenr 35 states that '"thc
Company proposes to separatcly defer the nct costs in cxccss of the cap associated
rvith thc Tax Act changes, and seek rccovery through an offset to the def'erral for
the impacts from the Tax Act." How will the Company identify the impacts that
will be deferred? I{olv will the amounts deferred be calculated? Please identify
in Exhibits 12 and l3 the amounts that would be detbrred due tei the Tax Act
changes.
Response to IPUC Data Request 43
The Company proposes to make an annual determination of the additional
resource tracking mechanism (RTM) deferral associated with Tax Reform that the
Company rvill defer and seek recovely of as part of the Tax Reform docket.
Please ref'er to Attachment IPUC 43, especially tabs "'lax l{etonn Deferral
Exhibit 12" and "Tax Refbrm Deferral Exhibit l3" for an examplc calculation of
how the additional Tax Reform defenal will be calculatcd.
The additional Tax Reforrn Delbrral is calculated by subtracting the cap benefit
using the previous 35 percent l'ederal tax rate fi"orn the cap benefit using the Tax
Retbnn 2l percent t'ederal tax rate. The cap benefit ditference is thc anrount to be
cleferred and addressed in the Tax Refonn docket.
'fhe ftillolving adjustmcnts werc madc to thc Compliance Filing results in order tt:
proviclc rcsults using a 35 percent federal tax rate:
(a) Calculated the pre-tax return on rate base and grosscd up procluction tax credit
(PTC) incolporating a 35 pcrcent federal tax rate.
(b) Recalculated accumulated doferrcd income tax (ADIT) incorporating a 35
pcrcent federal tax rate. For purpt'rses of the example in Attachrnent IPUC 43,
Exhibit l2 and Exhibit 13, ADIT was recalculated by multiplying ADIT in the
Cornpliance Filing by the old conrposite tax rate divided by the new
cornposite tax rate (0.37951 divided by 0.24587).
Reoordholder: Terrell Spackman
Sponsor: Joelle Steward