20120604_3743.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: JUNE 11, 2012

SUBJECT: APPLICATION OF ROCKY MOUNTAIN POWER FOR AUTHORITY
TO DECREASE THE CUSTOMER EFFICIENCY SERVICES RATE,
CASE NO. PAC-E-12-11

On May 30, 2012, PacifiCorp dba Rocky Mountain Power filed an Application
requesting authority to reduce its customer efficiency services rate (Schedule 191). Currently the
Schedule 191 rate is 3.4% and produces annual revenues of approximately $5.7 million. The
Company requests authority to decrease the rate to 2.1%, to generate approximately $3.5 million
per year. The Company believes the rate reduction is appropriate to align the Company’s
recovery of costs associated with future demand-side management (DSM) related expenditures,
and requests the new rate be effective July 1, 2012. The Company requested that its Application
be processed by Modified Procedure.
The Company asserts that although its DSM balance account was in deficit by
approximately $1 million as of April 30, 2012, the Company expects it will begin to over collect
on the Energy Efficiency Rider beginning August 2012. The Company’s Application provides a
summary review of each of its DSM programs along with expected levels of funding in the near
term. The Company does not propose to modify or decrease any of its DSM activities as part of
this Application. The Company states that it “will continue to review funding needs on a routine
basis to determine whether this proposed adjustment is sufficient to fund ongoing program
expenses and continue to recover the remaining balance owed the Company in the DSM
balancing account.” Application, p. 5.
DECISION MEMORANDUM 2
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, providing for a comment period through July 12, 2012, to process Rocky
Mountain’s Application. Because there is inadequate time to complete the process prior to July
1, the Company’s proposed effective date for the new rate, Staff also recommends the
Commission suspend the proposed effective date of July 1, 2012.
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Modified
Procedure, establishing a comment period through July 12, 2012, and Order suspending the
proposed July 1, 2012 effective date for the new customer efficiency rider rate?

Weldon B. Stutzman
Deputy Attorney General

bls/M:PAC-E-12-11_ws