20231130PAC to Staff Supplemental 1-4.pdf

1407 W North Temple, Suite 330 Salt Lake City, Utah 84116
November 30, 2023 Jan Noriyuki Idaho Public Utilities Commission 472 W. Washington
Boise, ID 83702-5918 [e-mail] (C) RE: ID PAC-E-23-23
IPUC Set 1 (1-4) Please find enclosed Rocky Mountain Power’s 1st Supplemental Responses to IPUC 1st Set Data Requests 2 and 4. Also provided is Attachment IPUC 4 1st Supplemental. If you have any questions, please feel free to call me at [phone].
Sincerely, ____/s/____ Mark Alder Manager, Regulation Enclosures

RECEIVED
Thursday, November 30, 2023 3:28:55 PM
IDAHO PUBLIC
UTILITIES COMMISSION
PAC-E-23-23 / Rocky Mountain Power November 30, 2023 IPUC Data Request 2 – 1st Supplemental
IPUC Data Request 2 Please provide supporting documentation and/or workpapers for each month's amortization values from January 2022 to September 2023 presented in Exhibit
No. 1.
1st Supplemental Response to IPUC Data Request 2
Further to the Company’s response to IPUC Data Request 2 dated November 28,
2023, the Company provides the following additional information: The guidance for accounting for income taxes in an interim period is Accounting Standards Codification (ASC) 740-270-30. As prescribed in ASC 740-270-30-4 through 30-6, the Company calculates an estimated annual effective tax rate
(AETR) for each interim period. The AETR is then applied to year-to-date (YTD)
ordinary income at the end of the interim period to determine the YTD income tax expense (or benefit) for the period. The amortization of the excess deferred income tax regulatory liability is an item included in the estimated AETR.

The YTD ratio discussed in the Company’s original response to IPUC Data Request 2 is a derivation of applying the AETR to the YTD and full year forecast of pre-tax book income. In other words, the YTD ratio can also be calculated after applying the AETR by taking the YTD income tax expense (or benefit) for the period, divided by the full year forecast of income tax expense (or loss).

The relevant sections of ASC 740 are included in their entirety below and are publicly available and can be accessed by utilizing the following website link and navigating to Expenses > 740 Income Taxes > 270 Interim Reporting.:

https://asc.fasb.org Recordholder: Deanna Fladstol
Sponsor: To Be Determined

PAC-E-23-23 / Rocky Mountain Power November 30, 2023 IPUC Data Request 4 – 1st Supplemental
IPUC Data Request 4 Monthly amortization amounts are based upon customer usage. Please clarify if the amortization ending balance through 2023 will total exactly $0. If so, please
explain how this will occur. If not, please explain how the Company proposes to
treat any unamortized balance. 1st Supplemental Response to IPUC Data Request 4

Further to the Company’s response to IPUC Data Request 4 dated November 28, 2023, the Company provides the following additional information: Please refer to Attachment IPUC 4 1st Supplemental which contains the actual monthly Idaho Schedule 197 credit revenues that have been returned to customers
from January 1, 2022 through October 31, 2023, and the estimated monthly Idaho
Schedule 197 credit revenues that shall be returned to customers from November 1, 2023 through January 31, 2024.

Recordholder: James Zhang Sponsor: To Be Determined