20200128PAC to Staff 1.pdf

ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
PACIFICORP
USE OF FACILITIES CHARGES - 12/31/18 BASIS
IDAHO DISTRIBUTION PLANT
Based on Incremental Cost of Capital
Line Company Provides Initial
No.Capital Investment annual monthly
1 Return on Capital 4.48%0.37%
2 Recovery of Capital 2.73%0.23%
3 State & Federal Income Taxes 1.00%0.08%
4 Local Property Taxes 0.60%0.05%
5 Operation & Maintenance 2.81%0.23%
6 Administrative & General 0.44%0.04%
7 Other Taxes 0.05%0.00%
8 Customer Accounts & Services 1.37%0.11%
TOTAL 13.48%1.12%
Customer Provides Initial
Capital Investment
9 Subtotal Lines 4 - 8 5.27%0.44%
10 Capital Replacement Annuity 1.06%0.09%
TOTAL 6.33%0.53%
TOTAL (lines 4,5,7,10)4.52%0.38%
MEMORANDUM ITEMS:
Combined Income Tax Rate 24.587%
Idaho
Attach IPUC 1.xlsx
Page 1 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
PACIFICORP
USE OF FACILITIES CHARGES - 12/31/18 BASIS
TRANSMISSION PLANT
Based on Incremental Cost of Capital
Line Company Provides Initial
No.Capital Investment annual monthly
1 Return on Capital 4.85%0.40%
2 Recovery of Capital 1.87%0.16%
3 State & Federal Income Taxes 1.07%0.09%
4 Local Property Taxes 0.65%0.05%
5 Operation & Maintenance 0.82%0.07%
6 Administrative & General 0.44%0.04%
7 Other Taxes 0.01%0.00%
TOTAL 9.71%0.81%
Customer Provides InitialCapital Investment
8 Subtotal Lines 4 - 7 1.92%0.16%
9 Capital Replacement Annuity 0.54%0.05%
TOTAL 2.46%0.21%
TOTAL (lines 4,5,7,9)2.02%0.17%
MEMORANDUM ITEMS:
Combined Income Tax Rate 24.587%
Financial Analysis
27-Jan-20
PACIFICORP
USE OF FACILITIES CHARGES - 12/31/18 BASIS
Attach IPUC 1.xlsx
Page 2 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
Based on Embedded Rate of Return
Line Company Provides Initial
No.Capital Investment annual monthly
1 Return on Capital 4.84%0.40%
2 Recovery of Capital 2.73%0.23%
3 State & Federal Income Taxes 1.04%0.09%
4 Local Property Taxes 0.61%0.05%
5 Operation & Maintenance 2.81%0.23%
6 Administrative & General 0.44%0.04%
7 Other Taxes 0.05%0.00%
8 Customer Accounts & Services 1.37%0.11%
TOTAL 13.89%1.16%
Customer Provides Initial
Capital Investment
9 Subtotal Lines 4 - 8 5.28%0.44%
10 Capital Replacement Annuity 0.84%0.07%
TOTAL 6.12%0.51%
4.31%0.36%
MEMORANDUM ITEMS:
Combined Income Tax Rate 24.587%
PACIFICORP
USE OF FACILITIES CHARGES - 12/31/18 BASIS
TRANSMISSION PLANT
Based on Embedded Rate of Return
Line Company Provides Initial
No.Capital Investment annual monthly
1 Return on Capital 5.22%0.44%
2 Recovery of Capital 1.87%0.16%
Idaho
Idaho
Attach IPUC 1.xlsx
Page 3 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
5 Operation & Maintenance 0.82%0.07%
6 Administrative & General 0.44%0.04%
7 Other Taxes 0.01%0.00%
TOTAL 10.14%0.85%
Customer Provides Initial
Capital Investment
8 Subtotal Lines 4 - 7 1.93%0.16%
9 Capital Replacement Annuity 0.40%0.03%
TOTAL 2.33%0.19%
TOTAL (lines 4,5,7,9)1.89%0.16%
MEMORANDUM ITEMS:
Combined Income Tax Rate 24.587%
Financial Analysis
Attach IPUC 1.xlsx
Page 4 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
INPUTS
Attach IPUC 1.xlsx
Page 5 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
(INCREMENTAL) - DISTRIBUTION
(INCREMENTAL) - TRANSMISSION
EMBEDDED ) - DISTRIBUTION
EMBEDDED ) - TRANSMISSION
Attach IPUC 1.xlsx
Page 6 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
OUTPUTS
Attach IPUC 1.xlsx
Page 7 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
Attach IPUC 1.xlsx
Page 8 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
Total FERC
Idaho Company Form 1 Difference FERC
A&G ACCT
A&G Salaries 920 4,167 4,167 72,266 68,099 17
Office Supplies and Expenses 921 584 584 9,971 9,387 2
Less Administrative Expenses Transferred 922 (1,840) (1,840) (31,910) (30,070) (8)
Outside Services Employed 923 1,055 1,055 19,891 18,836 4
Property Insurance 924 414 414 12,339 11,925 1
Injuries and Damages 925 728 728 16,740 16,012 3
Employee Pensions and Benefits 926 6,587 6,587 113,737 107,149 27
Franchise Requirements 927 - - - - -
Regulatory Commmission Expenses 928 1,145 1,145 22,484 21,339 2
Less Duplicate Charges 929 (7,417) (7,417) (128,630) (121,213) (31)
General Advertising 930.1 - - 1 1 -
Miscellaneous General Expenses 930.2 128 128 2,226 2,097 1
Rents 931 138 138 2,723 2,586 1 Total Operation A&G 5,689 5,689 111,837 106,148 20
Maintenance of General Plant 935 1,342 1,342 23,526 22,184 5 Total A&G Expenses 7,031 7,031 135,363 128,332 26
SOURCE: JARS O&M Expense
Average Plant in Service 1,601,919 27,783,221 18,935,256 (8,137,652) 6,590
SOURCE:JARS Electric Plant in Service (Average)
A&G Factor 0.44%0.03%0.71%
USE OF FACILITIES CHARGES - 12/31/18 BASIS
A&G as a % of Average Plant in Service (Allocated Basis)
SOURCE: JARS Reports (O&M Expense, Electric Plant in Service - Average)
In Thousands
Attach IPUC 1.xlsx
Page 9 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
Total FERC Pg 320-22
Description Idaho Company Form 1 Line Difference FERC
Steam Generation O&M $70,249 $70,249 $1,124,226 21 $1,053,976 $366
Less: Fuel (Acct 501)$51,813 $51,813 $815,216 5 $763,403 $264
$18,436 $18,436 $309,010 $290,574 $102
Nuclear Generation O&M $0 $0 $0 41 $0
Less: Fuel $0 $0 $0 25 $0
$0 $0
Hydro Generation O&M $2,421 $2,421 $38,998 59 $36,577 $13
Operation Expense O&M (Acct 935)$1,342 $1,342 $23,526 196 $22,184 $5
Other Production O&M $18,673 $18,673 $291,797 74 $273,124 $96
Less: Fuel (Acct 547)$15,603 $15,603 $239,132 63 $223,529 $79
$3,070 $3,070
Other Power Supply O&M $46,478 $46,478 $710,337 79 $663,859 $231
Less: Purchased Power (Acct 555)$39,487 $39,487 $667,434 76 $627,947 $219
$6,991 $6,991
Transmission O&M $12,327 $12,327 $206,506 112 $194,179 $68
Less: Wheeling (Acct 565)$8,059 $8,059 $135,022 96 $126,963 $45
$4,268 $4,268
Distribution O&M $9,803 $9,803 $197,259 156 $187,455 $0
Customer Accounts Exp.$4,753 $4,753 $83,662 164 $78,909 $0
Customer Svc. & Sales Exp.$351 $351 $96,100 171 & 178 $95,749 $81,882 Other
Total O&M Expense $51,435 $51,435
In Thousands
ONOMIC REGULATION JARS REPORTS (O&M EXPENSE, TAXES OTHER T
OTHER TAXES AS % OF O&M EXPENSE (ALLOCATED BASIS)
USE OF FACILITIES CHARGES - 12/31/18 BASIS
Attach IPUC 1.xlsx
Page 10 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
Other Taxes (Allocated)$873 $873
Other Taxes % of O&M 1.70%1.70%
Attach IPUC 1.xlsx
Page 11 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
State Debt Preferred Equity Common Equity
IDAHO 47.60%0.30%52.10%100.00%
TOTAL CO. 47.60%0.30%52.10%100.00%
FERC 48.19%0.02%51.79%100.00%
Cost of Capital - Embedded
After-TaxStateDebtPreferred Equity Common Equity WACC WACC
IDAHO 5.880%5.420%9.900%7.97%7.28%
TOTAL CO. 5.880%5.420%9.900%7.97%6.95%
FERC 5.216%6.753%9.800%7.59%6.64%
Capital Structure - Incremental**
Source Debt Preferred Equity Common Equity
PacifiCorp Intranet 48.37%0.02%51.61%
Cost of Capital - Incremental**
Pre-Tax After-Tax
Source Debt Preferred Equity Common Equity WACC WACC
PacifiCorp Intranet 5.16%6.75%9.75%7.53%6.58%
Net Plant in Service***
State Plant in Service Acc Depreciation Net Plant in Service Allocation
IDAHO 1,601,919 -552,020 1,049,898 100.0%
TOTAL CO. 1,601,919 -552,020 1,049,898 100.0%
FERC 6,590 -2,165 4,425
GRAND TOTAL 1,608,509 -554,185 1,054,323
**Incremental On Intranet
***Net Plant From 2018 JARS
Attach IPUC 1.xlsx
Page 12 of 18
ID - PAC-E-19-19IPUC 1 Attachment IPUC 1
In Thousands
62.0 340,313 6,939 2.04%48
62.0 340,313 6,939 2.04%50
Attach IPUC 1.xlsx Page 13 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
ENTER CALENDAR YEAR HERE ------2018
2018 Transmission O&M and A&G Expense Allocations
Basis: PacifiCorp 2018 FERC Form No.1.
Transmission O&M Expense Factor
Total Transmission O&M Expense [1]$206,505,944
Transmission of Electricity by Others [2]($135,021,597)
Cost of Providing Ancillary Services [3]($10,587,401)
Net Transmission O&M Expense $60,896,946
Total Transmission Plant in Service [4]
Beginning of Year $6,222,285,657
End of Year $6,353,044,980
Average Plant in Service $6,287,665,319
Transmission O&M Expense Factor (as % of Transmission Plant):
Less PBOP Expense Adjustment [6]$0Less Property Insurance [7]($12,338,561)
Less Regulatory Asset Amortizations [8]$0Less Regulatory Commission Expense [9]($22,484,361)
Less General Advertising Expense [10]($580)Less Membership Dues [11]($723,877)
Attach IPUC 1.xlsx
Page 14 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
$99,815,590
[12]8.69%
A&G Expense Allocated to Transmission by Wage & Salary Allocato $8,670,808
A&G Expense Allocated to Transmission By Gross Plant Allocator
Property Insurance $12,338,561
Multiply by Gross Plant Allocator [13]23.27%
A&G Expense Allocated to Transmission By Gross Plant Allocator $2,871,613
Direct Assigned A&G
Regulatory Commission Expense [14]$2,654,241
Total Transmission A&G $14,196,663
Total Transmission Plant in Service [4]
Beginning of Year $6,222,285,657
End of Year $6,353,044,980
Average Plant in Service $6,287,665,319
Transmission A&G Expense Factor (as % of Transmission Plant):
Attach IPUC 1.xlsx
Page 15 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
[7] 2018 FERC Form 1, Page 323, Line 185
[8] 2019 FERC Formula Rate: True-Up, Appendix A, Line 60
[9] 2018 FERC Form 1, Page 323, Line 189
[10] 2018 FERC Form 1, Page 323, Line 191
[11] 2019 FERC Formula Rate: True-Up, Appendix A, Line 63
[12] 2019 FERC Formula Rate: True-Up, Appendix A, Line 5
[13] 2019 FERC Formula Rate: True-Up, Appendix A, Line 12
[14] 2019 FERC Formula Rate: True-Up, Appendix A, Line 67
Attach IPUC 1.xlsx
Page 16 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
Property Taxes
Statistical Analysis
For the Property Tax Year 2018
Average Tax
Assessed Taxes %
State / Tribe Value Paid Rate
Idaho 675,585,786 6,414,325 0.95%
Notes: Centrally Assessed and Locally Assessed Property are included in calculations.
Average Ratio is Taxes Paid to Assessed Value.
Oregon Taxes Paid is net of 3% Discount
Includes Irrigation rebate amounts (UT & ID).
Includes Mining Taxes.
Attach IPUC 1.xlsx
Page 17 of 18
ID - PAC-E-19-19
IPUC 1 Attachment IPUC 1
2019 Insurable Values (12/31/2018 data)
ID Grand Total
Attach IPUC 1.xlsx
Page 18 of 18