HomeMy WebLinkAbout20161003_5086.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM: CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: SEPTEMBER 30, 2016
SUBJECT: APPLICATION OF ROCKY MOUNTAIN POWER TO UPDATE BASE
NET POWER COSTS AND IMPLEMENT A RATE STABILITY PLAN,
CASE NO. PAC-E-16-12
On September 1, 2016, PacifiCorp dba Rocky Mountain Power filed an Application
requesting Commission authorization to adjust the level of net power costs (NPC) included in
base rates and set a new level of base NPC to be tracked in the Energy Cost Adjustment
Mechanism (ECAM). Application at 1. The Company also asks the Commission for an Order
approving a new level of base retail load and authorizing the Company to adjust the Load
Change Adjustment Rate (LCAR), Production Tax Credit (PTC) and Renewable Energy Credit
(REC) rates. Id. at 7; Wilding Direct at 4.
The Company’s Application, if approved, would decrease rates by an average of
approximately 0.4 percent. The Company asks that the Commission authorize this matter to be
processed by Modified Procedure and approve the new base NPC, new base retail load, and the
new LCAR, PTC and REC rates. As an alternative to updating rates, the Company proposes a
Rate Stability Plan, under which rates would remain unchanged. Application at 2. With this
Plan, instead of reducing rates, the Company would track the incremental revenue collection due
its decreased NPC and “utilize the incremental revenue collection to net against the Commission
approved depreciation deferral.” Id. (citing Order No. 32910). The Company asks that the
Commission issue an Order approving the Application by December 15, 2016, with an effective
date of January 1, 2017. Id. at 7. With its Application, the Company attached the Direct
Testimonies of Ted Weston and Michael Wilding, the proposed updated tariff sheets, and
DECISION MEMORANDUM 2
supporting workpapers for the proposed tariff sheets, including the proposed impacts by rate
schedule.
On September 13, 2016, the Commission issued an Order providing notice of the
Application, setting a deadline for interventions, and directing the Parties to confer about a
proposed schedule and report their proposal to the Commission. Order No. 33597. PacifiCorp
Idaho Industrial Customers; Monsanto Company; and Idaho Irrigation Pumpers Association, Inc.
timely filed Petitions to Intervene, which the Commission granted. Order Nos. 33599, 33600,
and 33601.
The Parties conferred informally and agreed that the Company’s Application be
processed by Modified Procedure, with comments due on November 17, 2016, and reply
comments, if any, due November 30, 2016. The Parties also agreed to meet to discuss negotiated
solutions on October 19, 2016.
STAFF RECOMMENDATION
Staff recommends that the Commission issue an Order directing that this Application
be processed by Modified Procedure, with comments due on November 17, 2016, and reply
comments, if any, due November 30, 2016, and stating that the Parties plan to meet to discuss
negotiated solutions on October 19, 2016.
COMMISSION DECISION
Does the Commission wish to issue an Order directing that this Application be
processed by Modified Procedure, with comments due on November 17, 2016, and reply
comments, if any, due November 30, 2016, and stating that the Parties plan to meet to discuss
negotiated solutions on October 19, 2016?
M:PAC-E-16-12_cc2