20210921PAC to Bayer 135.pdf

ROCKY MOUNTAIN
P|OI'TIER
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Salt Lake City, Utah 84116
September 21,,2021
Randall C. Budge/Bayer randy @racineolson. com (C)
Thomas J. Budge/Bayer [e-mail] (WXC)
Brian C. CollinsiBayer bcollins@consu ltbai.com (WXC)
Maurice Brubaker/Bayer mbrubaker@.con su ltba i. com (C)
Kevin Higgins/Bayer [e-mail] (C)
Lance Kaufinan/Bayer I an ce@aee i sin s i eht. com (C)
James R. Smith/Bayer i im.r. smith@ic loud. com (C)
Mike Veile/Bayer [e-mail]
Courtney Higgins/Bayer chiegins@eners.v strat. com
Milli Picharo/Bayer [e-mail]
Neal Townsend/Bayer [e-mail]
RE: ID PAC-E-21-07
Bayer Set l2d'(135)
Please find enclosed Rocky Mountain Power's Response to Bayer 12ft Set Data Request 135.
Also provided is Attachment Bayer 135.
If you have any questions, please feel free to call me at [phone].
Sincerely,
-Jsl-J. Ted Weston
Manager, Regulation
Enclosures
C.c.: Jan Noriyuki/IPUC [e-mail] (C)
Ronald L. Williams/PIIC [e-mail]
Bradley G. Mullins/PIIC brmu I I ins@mwanalytics. com
Adam Gardner/PIIC AGardner@idahoan. com (W)
Kyle Williams/PIIC [e-mail] (W)
Val Steiner/PIIC val. steiner@.itafos.com (W)
Eric L. Olsen/IIPA [e-mail] (C)
Anthony Yankel/IIPA tonv@vankel. net (C)
Ben Otto/[CL [e-mail] (C)
Ronald L. Williams/PIIC ron @wi I I iamsbradbury. com
Bradley G. Mullins/PIIC brmu I I ins@mwanalyt ics. com
Adam Gardner/PIIC AGardner(Didahoan.com (W)
Kyle Williams/PlC [e-mail] (W)
Val Steiner/PIIC val. [e-mail] (W)
Eric L. Olsen/IIPA [e-mail] (C)
Anthony YankeUIIPA [e-mail] (C)
Brad Purdy [e-mail] (C)
PAC-E-21-07 / Rocky Mountain Power
September 21,2021
Bayer Data Request 135
Bayer Data Request 135
Follow-Up to RMP Response to Bayer Data Request No. 57. With respect
Attachment Bayer 57:
a. Please demonstate, in Excel format, how the interest expense amounts shown
in Attachment Bayer 57 were derived using the customer service deposit balances
shown in the attachment and the applicable customer deposit rates.
b. According to Case No. GNR-U-19-01, Order No. 34482, the 2020 customer
deposit rate was 2%o annually. Please reconcile this rate with the interest expense
amounts shown in Attachment Bayer 57 for 2020, which range from 0.89% to
1.24% monthly (derived by dividing the interest expense by the deposit balance),
c. According to CaseNo. GNR-U-20-04, OrderNo. 34866, the202l customer
deposit rate is l%o anrrually. Please reconcile this rate with the interest expense
amounts shown in Attachment Bayer 57 for January 2021 throughMarch202l,
which range from 0.41%to 0.59% monthly (derived by dividing the interest
expense by the deposit balance).
d. Please explain the note in Attachment Bayer 57 "**Changed to quarterly
interest calculation tn 2021." Does this mean that the interest expense is now paid
to customers on a quarterly rather than monthly basis?
e. Are the interest expense amounts shown in Attachment Bayer 57 directly
related to the Idaho Customer Service Deposit balances shown in this attachment?
lf not, please provide the actual monthly interest expense on Idaho Customer
Service Deposits for each month beginning January 2020 through the most recent
date available.
f. Please provide the actual interest expense on Idaho Customer Service Deposits
for 2020.
Response to Bayer Data Request 135
a) Attachment Bayer 57 is referring to the interest expense accrual balances.
Please refer to Attachment Bayer 135 for the actual interest expense amounts.
b) Attachment Bayer 57 is referring to the interest expense accrual balances.
Please refer to Attachment Bayer 135 for the actual interest expense amounts
recorded in the furancial statements. The Company applies the Commission
authorized customer deposit rate to customer deposits to calculate the interest
paid to customers. However due to the timing of when interest is paid to
customers (once a yetr), the timing of deposits received and refunded
throughout the year, and the use of an interest accrual methodology to convert
cash expense to accrual basis for furancial statement purposes, the interest rate
PAC-E-21-07 / Rocky Mountain Power
September 21,2021
Bayer Data Request 135
applied to customer deposits cannot be precisely derived when looking at flre
balances on a monthly basis.
c) Attachment Bayer 57 is referring to the interest expense accrual balances.
Please refer to Attachment Bayer 135 for the actual interest expense amounts
recorded in the financial statements. See response b for discussion of the rate
applied to customer deposits.
d) The accrual is now booked quarterly rather than monthly. However, the
customer service deposit interest expenses are booked monthly, and paid to
customers based on the anniversary date.
e) Please refer to Attachment Bayer 135 for the monthly tdaho Customer Service
Deposit balances and interest expenses.
0 Please refer to Attachment Bayer 135 for the actual Idaho interest expenses
for2020.
Recordholder:Heather Loechle
Sponsor:Steve McDougal
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