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HomeMy WebLinkAbout20170828_Camille1.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: CAMILLE CHRISTEN DEPUTY ATTORNEY GENERAL DATE: AUGUST 24, 2017 SUBJECT: THE APPLICATION OF ROCKY MOUNTAIN POWER TO INCREASE THE BPA REP CREDIT EFFECTIVE OCTOBER 2018 THROUGH SEPTEMBER 2019, CASE NO. PAC-E-17-10. On August 18, 2017, PacifiCorp dba Rocky Mountain Power applied to the Commission for authorization to increase the Bonneville Power Administration (BPA) residential and small farm energy credit rate. Application at 1. The Company indicates that this rate represents an increase in the annual credit of $648,000 to qualifying customers (that is, those customers will receive an additional decrease in their rates). Id. at 3-4. The Company requests that the new rate be effective October 1, 2017 through September 30, 2019, and requests that the Application be processed under Modified Procedure. Id. at 5. The Company explains that the residential and small farm energy credit rate results from an agreement between the Company and BPA regarding the Residential Exchange Program. Id. The Residential Exchange Program provides a share of the benefits of the federal Columbia River power system to the residential and small farm customers of the investor-owned utilities of the Pacific Northwest, including Rocky Mountain Power. Id. at 2. The Company’s current residential and small farm credit rate is $0.007762 per kWh. Id. at 3. The proposed credit rate is $0.008403 per kWh. Id. The proposed rate includes annual benefits from BPA of $6.7 million plus an additional undistributed balance in the Company’s Idaho residential exchange balancing account of $1.8 million annually. Id. Thus, the annual total credit to customers is $8.5 million, an increase of $648,000 over the current credit. Id. The DECISION MEMORANDUM 2 Company calculated the proposed credit rate of $0.008403 by dividing $8.5 million by the calendar year 2016 historical usage level of qualifying customers of 1.01 GWh. Id. at 4. STAFF RECOMMENDATION Staff recommends that the Commission issue a Notice of Application and Notice of Modified Procedure, with comments due September 20, 2017. The Company did not object to Staff’s proposal to not have a reply deadline in this case. COMMISSION DECISION Does the Commission wish to issue a Notice of Application and a Notice of Modified Procedure, with comments due September 20, 2017? M:PAC-E-17-10_cc