20220112PAC to Staff 1-2.pdf

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January 12,2022
Jan Noriyuki
Idatro Public Utilities Commission
472W. Washington
Boise, ID 83702-5918
[e-mail]. gov (C)
RE: ID PAC-E-21-21
IPUC Set I (1-2)
Please find enclored Rocky Mountain Power's Responses to IPUC l$ SetData Requests l-2.
If you have any questions, please feel free to coll me at (801)220.29$.
Sincerely,
--lsl-J. Ted Weston
Marugo, Regulation
Enclosures
PAC-E-21-21 / Rocky Mountain Power
January 12,2022
IPUC Data Request I
IPUC Data Request I
Please explain and show in detail how the Company tracks and accounts for
wheeling expense paid to Idaho Power for these transmission assets over the
period from October 1,2020, to September 30,2021, given the respective
agreements (Application-3, Section-8).
Response to IPUC Data Request 1
For clarification purposes, the Company interprets "these transmission assets" to
be referring to the transmission assets that were subject to the Joint Purchase and
Sale Agreement (JPSA), dated October 24,2014, as well as the Joint Ownership
and Operating Agreement (JOOA), also dated October 24,2014, between Idaho
Power Company (IPC) and PacifiCorp. These agreements were provided as
exhibits in Case IPC-E-14-41 / PAC-E-14-l I before the Idaho Public Utilities
Commission (IPUC). Based on this interpretation, the Company responds as
follows:
The capacity on the assets included in the above referenced JPSA is wholly
owned by each party, and as such, PacifiCorp does not pay IPC any wheeling
costs for use of the assets and the capacity that were part of the JPSA. As part of
the JPSA, PacifiCorp energy supply management (ESM) received 510 megawatts
(MW) of long-term firm (LTF) point-to-point (PTP) transmission service from
IPC. The costs for that service are paid for in accordance with IPC's open access
transmission tariff(OATT) rate (the current rate - at the time of preparing this
data request response - is $2,599.20 per megawatt-month ($/TvlW-month)).
PacifiCorp tracks transmission charges to FERC Account 565 (Transmission of
Electricity by Others) or wheeling expense. Once the Company receives an
invoice from IPC, the Company verifies that each invoice is accompanied by
sufficient supporting data; PacifiCorp then validates the invoice charges against
its own records to allow the identification of any potential discrepancies at the
transactional level and make any necessary corrections.
Recordholder:Rubi Duran / Rohan Chatterjee / Brian Fritz
To Be DeterminedSponsor:
PAC-E-21-21 / Rocky Mountain Power
January 12,2022
IPUC Data Request 2
IPUC Data Request 2
Please explain how OATT rates are generally determined and charged to
transmission customers. In addition, please provide the calculations for the change
in PacifiCorp's OATT rate as a result of the sale of transmission assets in Case
No. PAC-E-I4-I l.
Response to IPUC Data Request 2
For clarification purposes, the Company interprets "transmission assets" to be
refening to the transmission assets that were subject to the Joint Purchase and
Sale Agreement (JPSA), dated October 24,2014, as well as the Joint Ownership
and Operating Agreement (JOOA), also dated October 24,2014, between Idaho
Power Company (tPC) and PacifiCorp. These agreements were provided as
exhibits in Case IPC-E-1441 / PAC-E-I4-I I before the Idaho Public Utilities
Commission (IPUC). Based on the foregoing interpretation, the Company
responds as follows:
The Company's current transmission formula rate (included in PacifiCoqp's Open
Access Transmission Tariff(OATT)) was approved by the Federal Energy
Regulatory Commission (FERC) in Docket ERI l-3643. Charges for PacifiCorp's
Network Integration Transmission Service (NITS), Schedule 7 (Firm Point-to-
Point (PTP) Service), and Schedule 8 (Non-Firm (NF) PTP Service), are
determined by this formula rate, as well as ancillary service Schedule I
(Scheduling, System Control and Dispatch Service) included on Appendix B of
Attachment H-l of the Formula Rate template. The Formula Rate template
(Formula) is provided in Attachment H-l of PacifiCorp's OATT, and the Formula
Rate Implementation Protocols (Protocols) is provided in Attachment H-2 of
PacifiCorp's OATT (the Formula and the Protocols collectively, the Formula
Rate).
The Company's transmission formula rate is updated annually with the annual
transmission revenue requirement (ATRR) that represents the annual total cost of
providing firm transmission service over the test year. The majority of the data
inputs come from the annual FERC Form l. The ATRR calculation incorporates
all transmission system investments by the Company, a return on rate base,
income taxes, expenses (including operations and maintenance (O&M), and
certain revenue credits, among other specific elements and adjustments.
Transmission assets, including new transmission capital and transmission network
upgrades, are included in the ATR& weighted by months in service. The ATRR
is converted into a rate by dividing the ATRR by firm transmission demand (this
demand includes PacifiCorp's retail load and contracts) which makes up
approximately 80 percent of the demand). All third-party revenues for
transmission service (along with third-parly revenues for ancillary services) are
PAC-E-21-21 / Rocky Mountain Power
January 12,2022
IPUC Data Request 2
included as revenue credits in the calculation of rates in each of the Company's
state retail juri sdictions
PacifiCorp's annual tansmission formula filings, and the OATT billing
determinant used each year, are publicly available and can be accessed by
utilizing the following website link (specifically the PacifiCorp OASIS
TariffCompany Information folder) on PacifiCorp's Open Access Same-Time
lnformation System:
www. oatioasis.com/ppil
Navigate the "Documents" folders > PacifiCorp OASIS TariffCompany
Information > OATT Pricing > Year in question.
Note: The value of the assets purchased from IPC were included in PacifiCorp's
FERC Form I and incorporated as an input into the tansmission formula rate
annual update (on Attachment 5) published by May 15 of each year. The net
impact of the tansmission asset exchange increased PacifiCorp's transmission
invesfinent by less than $160,000. The rate impact due to the minor increase in
Transmission Plant in Service balance is negligible.
Recordholder: Brian Fritz / Eva Kwitnan
Sponsor:To Be Determined