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Home My WebLink About20050629Parties' Final Report.pdf!,;ECE1VED It. EO AMID: 232005 JUN STATE OF IDAHO ,iT I HJlV"fO PUBLICU J ILfTltS COf1MISSJON OFFICE OF THE ATTORNEY GENERAL LAWRENCE G. WASDEN June 29 , 2005 VIA HAND DELIVERY Jean D. Jewell Commission Secretary Idaho Public Utilities Commission PO Box 83720 Boise, ID 83720-0074 RE:The Parties' Final Report in Case No. IPC-O4- Dear Ms. Jewell: On behalf of the parties in the above referenced case, the Staff is filing an original and seven copies of the Final Report to the Commission. In Order No. 29505 the Commission initiated a proceeding following Idaho Power Company s 2004 rate case to allow interested parties to examine the Company s cost-of-service model. The attached Final Report outlines the issues examined by the parties and lists those cost-of-service issues where the parties reached consensus. Please contact me if you have any questions. Enclosures cc:Parties of Record (Electronic) bls/L Jewell IPCEO423 dh Contracts & Administrative Law Division, Idaho Public Utilities Commission O. Box 83720, Boise, Idaho 83720-0074, Telephone: (208) 334-0300, FAX: (208) 334-3762 , E-mail: Ipuc(Qjpuc.state.id. Located at 472 West Washington St., Boise, Idaho 83702 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE INVESTIGATION CONCERNING ISSUES RELATED TO IDAHO POWER COMPANY'S COST OF SERVICE STUDY. CASE NO. IPC-O4- THE PARTIES' FINAL REPORT On May 25, 2004, the Commission issued Order No. 29505 addressing substantive cost of service issues raised in Idaho Power Company s (Idaho Power; Company) 2004 general rate case, No. IPC-03-13. While the Commission found that Idaho Power s cost of service study was appropriate for allocating costs in that case, the Commission noted that several parties raised legitimate questions regarding the cost of service components that deserve additional investigation before Idaho Power s next general rate case. Order No. 29505 at 47. Therefore the Commission opened docket IPC-04-23 for the purpose of evaluating cost of service issues raised in the general rate proceeding. In Order No. 29505 the Commission wrote: Specifically, we direct Staff and interested parties to evaluate appropriate issues through a series of workshops (as needed), including: (1) how best to determine and weigh monthly generation and transmission allocators, (2) how to most accurately capture coincident peak demand responsibility, and (3) whether new growth is properly covering its cost of service. expect consensus investie:ation results and recommendations to be documented in final report and submitted to the Commission no later than (June 30, 2005).1 With respect to the issue of new growth and how its cost flows through the cost of service study, we also expect the parties to submit recommendations ree:ardine: any needed chane:es in Idaho Power s line extension rules that are identified by the investigation. Once the cost of service investigative report is received, the Commission can then determine how best to proceed addressing any recommended line extension tariff changes. THE INVESTIGATION The parties have held three workshops on November 3, 2004, December 14, 2004 and on February 25 2005. The minutes from those three workshops are attached to this report. 1 In Order No. 29744 the Commission extended the deadline for the report to April 29, 2005 , and in Staff Motion dated April 29, 2005, Staff requested an additional extension of the deadline to June 30, 2005. THE PARTIES' FINAL REPORT 1. The first workshop began with a discussion of the scope of issues to be covered in the workshops. It was agreed that the workshop should be confined to the issues defined in the Commission Order and to making the cost of service model and model inputs (load research data) more transparent. Idaho Power then provided an overview of their cost of service model along with a description of the Company s load research methodology to determine coincident peak responsibility. A summary of the legal constraints related to allocating incremental investment costs to new load growth was also given. 2. At the second workshop IPC distributed a spreadsheet showing "2003 Contribution in Aid of Construction (CIAC) Analysis . The analysis pointed out that the Schedule 19 CIAC percentage of investment was larger than the other schedules (64%). This is partly because there is a smaller allowance for that rate schedule. Irrigators (Schedule 24) and Small Commercial (Schedule 7) had the lowest CIAC amount at 28%. As an example of a marginal cost of service approach, the Company distributed and explained a two-page spreadsheet showing the marginal cost methodology used in Oregon to determine class specific revenue requirement and rate design.Additionally, the Company explained that maintenance of numerous thermal plants in the region occurs in March in order to take advantage of typically lower loads. The larger number of plants down for maintenance tends to drive the marginal cost of generation up in the month of March. Even though loads are down in that month, supply is down sufficiently to drive the price up. The Irrigators distributed a 39-page document titled , " Irrigator Comments . Their first point was that energy and revenue are normalized and demand should also be "normalized" U sing the average of five or ten years of monthly peak demand numbers may reduce the effect of any anomalies that exist in a test year due to extreme conditions. The Irrigators presented their proposal for normalization of the monthly demand in the final workshop. Although the parties did not come to consensus on a demand normalization methodology during the workshop, further discussion between the Irrigators and Idaho Power following the final workshop has resulted in a proposal to which the parties agree. The proposal agreed upon by the parties would simply use the median demand ratios over the most recent five-year period to determine normalized demands for allocation purposes. Irrigators then discussed growth issues, which they believe are principally driven by a 200% increase in distribution plant over the last 23 years. They suggested that distribution THE PARTIES' FINAL REPORT plant, which is related to growth by other customers, not be allocated to the Irrigation class. At the final workshop the Irrigators made a growth allocation proposal for distribution plant, which distinguished between new/growth and old/non-growth. New/growth costs would be defined as the increase in distribution plant over the last 20 years and would be allocated on the basis of the percentage of new energy consumption by class over the last 20 years. Old/non-growth costs would be allocated on energy usage 20 years ago. In the discussion that followed it was suggested that the number of customers or the non-coincident peak might be better than energy for allocation of distribution plant. There was also concern that this methodology might not comply with Supreme Court precedent. This proposal was not accepted by all the parties. 3. In the final workshop, the Company provided a report on the experience of other utilities in dealing with growth issues. It reported that Con-Edison had a similar issue but no solution and other utilities had no experience in dealing with this specific growth issue. Staff reported that several utilities referenced line extension contributions, hookup fees and rate design as tools to deal with increasing costs associated with growth. Allocation of underground distribution plant was the next point of discussion. The Irrigator s presentation showed that underground plant had increased 600% in the last 23 years. It proposed that underground plant not be allocated to Schedule 19 or to the Irrigation Schedule , because they use no significant amount of it. They also suggested charging customers that use underground facilities more for that service. In the discussion it was asserted that most of the additional cost of underground plant is contributed through the over-head/underground differential. It was also suggested by others that if underground distribution plant was not allocated to Irrigators perhaps they should have a greater portion of overhead distribution plant allocated to them because typically irrigators are more spread-out than other customer classes and typically have more distribution per customer. There was no consensus reached on this Issue. The Irrigator presentation discussed weighting factors for generation and transmission related demand and energy costs. At present, the Company develops these weighting factors based upon its latest Integrated Resource Plan. The Irrigators proposed that a cost-based method be developed for weighting these costs. The method could be based on actual wholesale transactions. There was little discussion on this issue and no agreement. THE PARTIES' FINAL REPORT At the second workshop, the Irrigators suggested that the Company should develop a procedure by which the basic load research data is incorporated into an Excel or Access format. They also recommended that the conversion of billing cycle data should employ a formula that separates base and temperature sensitive load. The temperature sensitive load would then be adjusted by heating degree days (HDD) or cooling degree days (CDD) and assigned to the appropriate month. At the final workshop, Idaho Power made a proposal to capture the effects of weather on energy consumption by using actual load research data to develop daily usage patterns rather than using simple linear interpolation to spread billed energy evenly across each billing cycle. This proposal was acceptable to all the parties. The Company also stated that they could provide load research data used in a rate case, but needed to protect the identity of the individual customers. CONCLUSIONS The responses from the workshop parties to each of the questions asked by the Commission are as follows: (1)How best to determine and weight monthly generation and transmission allocators. The parties agreed that no consensus could be reached on this issue - primarily because each ,party represents a different customer or customer group, and any change in the allocators would produce winners and losers. The parties recommend that this issue should remain an issue to be resolved in rate proceedings before the Commission. (2)How to most accurately capture coincident peak demand responsibility. This issue is similar to the previous one. The parties agreed that no consensus could be reached on this issue - primarily because each party represents a different customer or customer group, and any change in the allocation of peak demand responsibility would produce winners and losers. The parties recommend that this issue should remain an issue to be resolved in rate proceedings before the Commission. (3)Whether new growth is properly covering its cost of service. Most of the workshop time was devoted to discussion of this issue. The parties agreed that there was something inherently troubling with the way costs, associated with growth were allocated. This is evidenced by the relatively large increase in revenue requirement allocated to customers whose load and energy requirements were unchanged or grew only slightly. While there was agreement that the cost of growth did not necessarily get allocated to THE PARTIES' FINAL REPORT the customers and customer classes that grew, we were unable to devise a technical remedy to the allocation procedure that would also satisfy the courts. The parties were unable to devise and agree to a cost-of-service allocation methodology that would properly allocate the cost growth, without making a distinction between new and old customers. Even a search of what others, around the country, were doing produced little in the way of an acceptable solution. Therefore, it was concluded that the only remedy is a policy solution. The parties were not willing to agree to the particulars of such a policy and recommend that the Commission formulate such a policy in the next rate proceeding. (4)Recommendations regarding any needed changes in Idaho Power s line extension rules. The majority of the parties agreed (all except Pike Teinert) that the line extension rules should require new customers to pay the full incremental cost of new distribution plant, to the extent the courts would allow. The existing line extension rules are designed to do this; therefore there was no further discussion on this issue. (5)Other issues where the parties reached consensus. In accordance with the issues raised by the Irrigators during the workshop discussions, Idaho Power has offered to take several actions as part of its next general rate case filing. Idaho Power will provide customer load research data in computer- readable files so that it will be easier for other parties to review the development of the coincident peak demand responsibility factors and to propose alternative methods for determining coincident peak demand responsibility if they wish. Idaho Power will implement a more sophisticated nonlinear method of converting billing month energy data to calendar month energy data. The new method will capture the effects of weather on energy consumption by using actual load research data to develop daily usage patterns rather than using simple linear interpolation to spread billed energy evenly across each billing cycle. Accordingly, the new method will improve the process of determining coincident peak demand responsibility. Based on the proposal put forth by the Irrigators and agreed to by the parties, Idaho Power will prepare and include a surrogate for a demand normalization method, along with a traditional method for the determination of coincident peak demand responsibility in its next general THE PARTIES' FINAL REPORT rate case filing. As agreed following the final workshop, the normalization surrogate would be the 5-year median demand ratios from load research samples applied to normalized monthly class energy values. THE PARTIES' FINAL REPORT o""r~_lt ,v' U -',"~ lId (Jm , .'.. ..Ai, ff'l.o'" .I!).U....1S UA':J lY. c..\iJ MINUTES IPC-E- 04 - COST OF SERVICE WORKSHOP Tuesday December 14, 2004 iDAHOPUBLIG U i l'TIES eOMr'lrSSIO~i 1. Minutes and Participants The workshop began at 9 AM Wednesday December 14, 2004 in the Idaho Power office building. A list of the attendees attached (see Attachment No .The minutes from the first workshop were distributed and no corrections or additions wereoffered (see Attachment No. 2. CIAC Greg Said of IPC distributed a spreadsheet showing "2003 Contribution in Aid of Construction (CIAC) Analysis (see Attachment No.Greg pointed out that the Schedule 19 CIAC Investment was larger than the other schedules (64 %) because there is a smaller allowance to that rate schedule. Irrigators, Schedule 24, and Small Commercial Schedule 7 had the lowest amount at 28%. 3. Line Extension Issues Pike Teinert distributed a summary of several related issues that he discussed (see Attachment No.He stated that the Company uses connected load instead of diversified load to design the distribution system. Greg Said assured the group that the Company engineers do consider load di versi ty in the design of their distribution system. Teinert also felt that a customer s load factor should be considered in setting the CIAC. *Pike will provide further material on this issue with numerical examples at the next workshop. 4. Marginal Costs Maggie Brilz distributed a two-page spreadsheet showing the Marginal Cost of Service methodology used by Oregon (see Attachment No.Marginal costs for energy, demand and customer costs by month are calculated for each rate class. These costs are totaled and indexed. The relative index is used to adj ust the respective rates for each of the customer classes. Greg Said explained that maintenance of numerous thermal plants in the region tended to drive the marginal cost of generation up in the month of March. Even though loads are down in that month supply is down sufficiently to drive the price up. 5. Irrigators Tony Yankel distributed "Irrigator Comments , a 39-page document (see At tachment No.6) . His first point was that energy and revenue are normalized and demand should be "normalizedlf It was later clarified that the normalizinglf of demand that he was proposing could take the form of an average of 5 or 1 0 years of monthly peak demand numbers in order to reduce the effect of any anomalies that may exist in a test year due to extreme condi tions. *Yankel will provide a proposal on how this might be done at the next workshop. Yankel suggested that the Company should develop a procedure by which the basic load research data is incorporated into an Excel or Access format. *The Company indicated that they thought something like tha t coul d be done but wi 11 provide a more de ini t i answer next workshop. Yankel recommended that the conversion of billing cycle data should employ a formula that separates base and temperaturesensitive load. The temperature sensitive load would then be adj usted by HDD or CDD and assigned to the appropriate month. *Paul Werner agreed to take a look at that and provide a possible methodology to accomplish that for the next workshop. Yankel then discussed Growth issues, which are principally driven by a 200% increase in distribution plant over the last 23years. He suggested that distribution plant, which is related to growth by other customers, not be allocated to the Irrigationclass. *Yankel will continue to examine the distribution accounts in order to provide greater detail and understanding on what is behind these cost increases. He will present his findings and a possible solution that would better align the cost of growth wi th customers causing the growth at the next workshop. *The Company will research to see if other utilities have employed a mechanism that considers growth in cost allocation. *Denotes action items The next workshop is scheduled for Friday February 25, 2005 from 9 AM to noon , at the Idaho Power Office in Boise. The meeting adj ourned shortly after noon. 9: 00 9: 20 9 : 40 10:00 11:00 11:30 AG ENDA IPC-E- 04 - COST OF SERVI CE WORKSHOP Tuesday December 14 , 2004 Idaho Power Off ice, Boise, Id. Contribution in Aid of Construction (CIAC) by customerclass - Idaho Power Marginal Cost use in Oregon - Idaho Power Marginal Cost February vs March - Idaho Powe r Irrigators Presentation - Tony Yankel Discussion of next steps; agenda and schedule for thenext meeting. - Dave Schunke Adj ourn Attendance at the Cost of Service Workshop No. Case No. IPC-O4- Name Representing Phone # Keith Hessing IPUC Staff 334-0348 Rick Sterling IPUC Staff 334-0351 David Schunke IPUC Staff 334-0355 Michael Fuss IPUC Staff 334-0366 Donovan Walker IPUC Deputy Attorney General 334-0357 Don Howell IPUC Deputy Attorney General 334-0312 Randy Lobb IPUC Staff 334-0350 Laura Nelson IPUC Staff 334-0363 Maggie Brilz Idaho Power 388-2848 Greg Said Idaho Power 388-2288 Bart Kline Idaho Power 388-2682 Paul Werner Idaho Power 388-2669 Pete Pengilly Idaho Power 388-2281 Irene V. Victory Electric Heat 853-9216 Conley Ward Micron 388-1219 Randy Budge Irrigators (lIP A)232-6101 Tony Yankel Irrigators (lIP A)440-892-1222 Brenda T ominaga Irrigators (lIP A)381-0294 Lynn T ominaga Irrigators (lIP A)381-0294 Pete Richardson Industrial Customers 938- 7901 Pike T einert ESG/Energy Strategy Group 429-0808 By Phone Larry Gollomp S. Department of Energy S. Department of EnergyDennis Goins Attachment No. MINUTES IPC-E- 04 - COST OF SERVICE WORKSHOP #1 Wednesday November 3, 2004 The workshop began at 9 AM Wednesday November 3,2004 in the Public Utilities Commission Hearing room. A discussion of the scope of issues to be covered in the workshops was lead by David Schunke. It was agreed that the workshop should be confined to the following issues: Making the Cost of Service model and model inputs (Load research data) more transparent. Determining how to best weight monthly generation and transmission allocators. Determining how to most accurately capture coincident peak demand responsibili ty. Determining whether new growth is properly covering its cost of service. I f not, determining how to address that issue given the legal constraints that exist. A summary of the legal constraints was gl ven by Lisa Nordstrom and Bart Kline. Maggie Brilz provided an overview of Idaho Power s Cost of Service Model and a description of the methodology used by the Company s. A brief discussion followed. A description of the Company s Load research methodology was gi ven by Paul Werner. The next workshop was scheduled and the following items were identified for the agenda: Contribution in Aid of Construction (CIAC)by customer class - Idaho Power Marginal Cost use in Oregon - Idaho Power Marginal Cost Feb.vs March - Idaho Power Irrigators Presentation to provide better understandingtheirconcerns. The meeting adj ourned shortly after noon. Attachment No. Id a h o P o w e r C o m p a n y 20 0 3 C o n t r i b u t i o n I n A i d o f Co n s t r u c t i o n ( C I A C ) A n a l y s i s 4/ 2 / 2 0 0 4 Me t h o d : S e l e c t e d a l l c o m p l e t e d w o r k o r d e r s f r o m 2 0 0 3 f o r w h i c h R u l e H a p p l i e d . S e l e c t e d a r a n d o m s a m p l e o f 1 0 0 i n o r d e r t o a s s o c i a t e a Ha t e S c h e d u l e w i t h t h e wo r k o r d e r ~ . ' C a l c u l a t e d P r o p o r t i o n o f t o t a l wo r k o r d e r v a l u e s a t t r i b u t a b l e t o e a c h R a t e S c h e d u l e . To t a l CI A C CA l C To t a l IP C o To t a l CI A C % CI A C Co u n t Co u n t Co u n t In v e s t In v e s t CI A C In v e s t By r a t e To t a l W o r k o r d e r s l 15 6 84 7 73 % $8 , 50 2 52 0 $5 , 82 4 61 7 $2 , 67 7 90 3 31 % Ra n d o m S a m p l e 10 0 71 % $8 0 8 , 38 2 $5 7 4 73 4 $2 3 3 , 64 8 29 0 Sa m p l e B r e a k d o w n Sc h e d u l e 49 % $4 7 8 , 4 6 1 $3 4 1 , 16 4 $1 3 7 , 29 7 29 % 59 0 / 0 Sc h e d u l e 7 1 3 0 $4 8 , 4 5 6 $3 5 , 91 3 , $1 2 , 54 3 26 0 50 / 0 Sc h e d u l e 9 10 % $1 0 1 , 70 9 $6 8 , 53 8 ' $3 3 , 17 1 33 0 14 0 Sc h e d u l e 1 9 $1 2 , 4 4 2 $5 , 12 3 31 9 59 % Sc h e d u l e 2 4 27 % $1 6 7 31 4 $1 2 3 , 99 6 $4 3 , 31 8 26 0 19 0 / 0 To t a l : 10 0 10 0 % $8 0 8 , 38 2 $5 7 4 73 4 $2 3 3 , 64 8 29 % 10 0 % "" ' . " " ._ - Al l o c a t i o n o f T o t a t s Ba s e d o n S a m p l e Sc h e d u l e 60 1 41 8 49 % $5 , 03 2 , 4 2 4 $3 , 4 5 7 50 7 57 3 , 59 9 31 % 5'9 0 / 0 Sc h e d u l e 7 18 5 10 7 13 % $5 0 9 , 65 7 $3 6 3 , 95 9 $1 4 3 , 75 8 28 % Sc h e d u l e 9 10 % 06 9 , 77 5 $6 9 4 60 0 $3 8 0 , 18 2 36 0 14 0 Sc h e d u l e 19 : $1 3 0 , 86 2 $5 1 91 6 $8 3 , 88 5 64 % Sc h e d u l e 24 : 26 6 22 7 27 % $1 , 75 9 , 80 2 $1 , 25 6 , 63 4 $4 9 6 , 4 7 9 28 0 / 0 19 0 / 0 To t a l 1 . 15 6 84 7 10 0 % $8 , 50 2 , 52 0 $5 . 82 4 61 7 $2 , 67 7 90 3 31 % 10 0 0 / 0 ('V )s:: : .r : : !!I I . . . ~ 1 . \ 1 i t I M ! % , 11 ' ~ r . ! f t . & t : \ ' ? l o \ ~ J : ' i ; \ \ i i i l , *,\ ; ; y , ~ ~ " j " C ! ; " ; ' ;: " , L:. c: 4 - 1 OJ 0 .. c r - I OJ O J .w tJ ' I .w .. : x : O - t (I i ' . Ca s e N o . I P C - E - O 4 - Pi k e T e i n e r t es g , e n e r g y s t r a t e g ie s 9 ro u P De c e m b e r 1 4 20 0 4 tm i s:: 4 - 1 OJ 0 J: : N (( j O J +J t J I +J (( j ~ ~ ~'. " " " " " j j " " " " " " " " " ; " ' " " " " " : ' "" " c . . "'" " ." : " ,. . II No n r e s i d e n t i a l n e w a n d ad d e d lo a d Co n n e c t e d vs . d i v e r s i f i e d lo a d Li n e E x t e n s i o n r e v e n u e c o m p o n e n t " 1 3 i l W ! " " " " ' E i t " " " ' U ; ~ " " ' T'i C " , "'Y " " " ;;: . : " C ; : " ' :; : " ' " , , , Ii Co n ne c t e d v s . D i v e r s i f i e d Lo a d Th e C o m p a n y s u s e o f c o n n e c t e d i n s t e a d o f d i v e r s i f i e d l o a d , a s de f i n e d i n Ru l e H , t o d e s i g n se r v i c e t o n e w a n d ad d e d l o a d f o r co m m e r c i a l a n d i n d u s t r i a r c u s t o m e r s g e n e r a t e s h i g h e r c o s t o f se r v i c e f o r c u s t o m e r s . No n r e s i d e n t i a l c u s t o m e r s p a y ex c e s s i v e d i s t r i b u t i o n R' a n t C I A C f o r ne w a n d a d d e d l o a d s , b a s e d o n c o n n e c t e d in s t e a d o f d i v e r s i f i e d lo a d s . No n - di v e r s i f i e d , c o n n e c t e d , n e w a n d ad d e d l o a d f o r no n r e s i d e n t i a l cu s t o m e r s a r t i f i c i a l l y d r i v e s Co m p a n y p r o j e c t d e s i g n b e y o n d ex i s t i n g s u b s t a t i o n a n d tr a n s m i s s i o n c a p a c i t y , i n f l a t i n g t h e ne e d f o r ad d i t i o n a l s u b s t a t i o n a n d tr a n s m i s s i o n f a c i l i t i e s a n d c u s t o m e r CI A C . Th e u s e o f d i v e r s i f i e d lo a d i n p r o j e c t d e s i g n f o r n e w a n d ad d e d no n r e s i d e n t i a l l o a d w i l l re d u c e t h e r a t e of c o s t o f s e r v i c e i n c r e a s e s . .I Jc: 4 - 1 OJ 0 .. c : CV ) Ct : I O J .I J 0 ' 1 .I J C t : I ~ ~ _& ' , "" " " " . 1 " ' ! l ' 5 " ~ . "" ' ; ' ;" : " : ! " : , ;:" " : " , ! " " " ,, ' .. , ;" . . , II N o n r e s i d e n t i a l C u s t o m e r - Li n e E x t e n s i o n Re v e n u e C o m p o n e n t CI A C ca l c u l a t i o n s f o r n o n r e s i d e n t i a l c u s t o m e r s no t nc l ud e a r e v e n ue c o m p o n e n t . No n r e s i d e n t i a l c u s t o m e r s s h o u l d be c r e d i t e d f o r re v e n u e s fr o m n e w a nd a d d e d lo a d w i t h a v e r a g e lo a d f a c t o r s t h a t e x c e e d th e i r r a t e c l a s s a v e r a g e lo a d f a c t o r a n d g e n e r a t e RO R s i n e x c e s s of t h e av e r a g e RO R fo r t h e ra t e cl a s s . CI A C a n a l y s i s s h o u l d in c l u d e p r o v i s i o n s f o r ad d e d or n e w lo a d w i t h a b o v e r a t e cl a s s a v e r a g e l o a d fa c t o r s t h e r e b y re d u c i n g o r e l i m i n a t i n g t h e CI A C . s: : 4 - 1 Q) 0 n: I Q ) .w tJ ' I .w n:I ,: : J : P o l RE V E N U E S B A S E D O N M A R G I N A L C O S T 11 ' ) FO R T H E T W E L V E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 0 3 SC H E D U L E 1 - R E S I D E N T I A L (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (i ) (j ) (k ) c: 4 - 1 (J ) 0 Ma r g i n a l To t a l Ma r g i n a l To t a l Av e r a g e Ma r g i n a l To t a l To t a l Mo n t h No r m a l i z e d En e r g y C o s t Ma r g i n a l De m a n d De m a n d C o s t Ma r g i n a l Nu m b e r o f Cu s t o m e r Ma r g i n a l Ma r g i n a l .. c : : r - i KW H (m i l l s l k w h ) En e r g y C o s t ($ / k W ) De m a n d C o s t Cu s t o m e r s Co s t Mo n t h Cu s t C o s t s Co s t s (( j ( J ) (b ) x ( c ) (e ) x ( f ) (h ) x ( i ) +J tJ 1 +J (( j (1 ) J a n u a r y 94 4 05 5 35 . 80 8 31 9 31 3 21 5 , 23 8 95 7 10 . 4 4 13 5 27 1 1 , 15 8 , 82 8 P. . r (2 ) Fe b r u a r y 20 , 87 3 , 38 0 30 . 64 6 24 0 48 9 23 0 , 32 3 96 6 10 . 4 4 13 5 , 36 5 01 1 92 8 (3 ) Ma r c h 44 1 95 7 32 . 59 2 54 0 20 7 17 6 00 2 12 , 96 2 10 . 4 4 13 5 , 32 3 90 3 , 86 5 (4 ) Ap r i l 16 , 4 0 7 29 9 28 . 47 5 15 5 13 1 16 7 34 6 98 3 10 . 4 4 13 5 54 3 77 8 , 04 4 (5 ) Ma y 11 , 54 3 25 8 31 , 36 7 88 4 29 , 34 2 16 . 49 3 , 54 1 01 1 10 . 4 4 13 5 83 5 99 7 25 9 (6 ) J u n e 11 , 4 1 3 , 26 3 35 , 40 2 , 54 6 45 9 24 . 71 5 , 56 6 34 9 10 . 4 4 13 9 36 4 25 7 , 47 6 (7 ) J u l y 06 1 30 3 42 . 55 9 67 7 05 4 25 . 78 3 , 17 1 13 , 32 6 10 . 4 4 13 9 12 3 48 1 97 1 (8 ) A u g u s t 15 , 53 5 96 8 43 , 67 7 67 9 16 7 23 . 87 6 , 03 2 13 , 32 0 1 0 . 4 4 13 9 06 1 69 2 77 2 (9 ) S e p t e m b e r 69 7 91 0 36 , 50 6 41 2 39 , 54 4 16 . 66 9 08 0 13 , 34 0 10 . 4 4 13 9 27 0 31 4 76 1 (1 0 ) O c t o b e r 10 , 67 9 , 69 3 33 . 4 0 35 6 70 2 25 , 95 6 10 8 23 8 13 , 32 9 10 . 4 4 13 9 15 5 60 4 09 5 (1 1 ) No v e m b e r 13 , 53 8 35 1 35 , 47 6 55 0 29 , 66 4 15 , 46 9 58 5 30 9 10 . 4 4 13 8 94 6 08 5 , 08 1 (1 2 ) D e c e m b e r 98 9 , 01 9 37 . 70 9 , 24 0 15 4 15 . 60 4 74 4 29 0 1 0 . 4 4 13 8 , 74 8 1 , 45 2 , 73 2 (1 3 ) To t a l 18 7 12 5 , 45 6 57 8 94 3 43 6 , 48 1 50 8 , 86 5 15 8 , 14 2 65 1 00 2 73 8 81 0 (1 4 ) % o f To t a l M a r g i n a l C o s t : 47 . 89 % 40 . 10 % 12 . 02 % 10 0 , 00 % Ra t e 0 1 e x a m p l e RE V E N U E I N D E X T A B L E S 11 ) FO R T H E T W E L V E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 0 3 OR E G O N R E T A I L J U R I S D I C T I O N (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (i ) (j ) (k ) (I ) s: : 4 - j Lo a d s Ma r g i n a l Ma r g i n a l Cu r r e n t Cu r r e n t %o f In d e x e d ( 1 ) Pr o p o s e d Pr o p o s e d k o f In d e x e d ( 1 ) Mo d i f i e d OJ 0 (M W h ) Co s t s mi l l s l k W h Re v e n u e s mi l l s l k W h M a r g C o s t % o f M C Re v e n u e s mi l l s l k W h M a r g C o s t % o f M C Re v I n c (c ) = ( b ) / ( a ) (e ) = ( d ) / ( a ) (f ) = ( e ) / ( c ) ( g ) = ( f ) / ( f 11 ) (i ) = ( h ) l ( a ) (j ) = ( i ) l ( c ) (k ) = ( j ) / ( j 1 1 ) (i) = ( h - d ) / ( d ) .c N (1 ) R 1 - Re s i d e n t i a l 18 7 12 5 1 3 , 73 8 , 81 0 10 5 . 75 % 61 4 26 5 56 . 77 . 26 % 10 5 . 61 % 17 . 52 % CO O J 73 . 4 2 03 1 80 3 48 . 65 . .w 0'1 .w p.. . (2 ) R7 - S m G e n e r a l S e r v 21 5 37 2 86 7 90 . 90 2 84 9 59 . 65 . 10 5 . 79 % 06 1 03 7 69 . 77 . 29 % 10 5 . 64 % 17 . 52 % (3 ) R 9 - Lg C o m m e r c i a l 13 5 , 4 9 4 28 4 19 3 61 . 90 4 , 73 0 43 . 71 . 11 4 . 66 % 84 2 27 1 SO . 82 . 59 % 11 2 . 90 % 15 . 88 % (4 ) R9 S 11 7 91 9 31 2 , 32 8 62 . 32 8 , 86 7 45 . 72 . 11 7 . 23 % 16 0 , 70 5 52 . 84 . 25 % 11 5 . 16 % 15 . 61 % (5 ) R9 P 57 5 97 1 , 86 5 55 . 57 5 86 3 32 . 59 . 95 . 31 % 68 1 56 6 38 . 70 . 13 % 95 . 86 % 18 . 36 % (6 ) R 1 9 - Un i f o r m C o n t r a c t 25 3 , 60 0 1 3 07 9 , 64 8 51 . 32 5 , 65 3 28 . 56 . 90 . 09 % 60 9 18 1 33 . 65 . 82 % 89 . 97 % 17 . 52 % (7 ) R1 9 P 15 3 , 89 3 20 6 , 35 2 53 . 53 8 , 26 1 29 . 4 9 55 . 88 . 96 % 33 3 , 41 0 34 . 64 . 99 % 88 . 84 % 17 . 52 % (8 ) R1 9 T 70 7 87 3 , 29 6 48 . 78 7 39 2 27 . 57 . 92 . 01 % 27 5 , 77 1 32 . 67 . 22 % 91 . 88 % 17 . 52 % (9 ) R2 4 - lr r i g a t i o n 43 , 98 6 72 4 74 7 84 . 1 , 82 6 , 08 2 41 . 49 . 78 . 86 % 28 2 60 3 51 . 61 . 28 % 83 . 77 % 25 . 00 % 13 6 57 3 (1 0 ) R 4 0 - U n m e t e r e d 11 2 83 . 72 7 51 . 1 6 61 . 98 . 09 % 38 0 60 . 71 . 66 % 97 . 96 % 17 . 52 % (1 1 ) T O T A L - W i t h o u t 63 5 , 49 4 4 0 20 6 , 37 7 63 . 99 4 84 4 39 . 62 . 10 0 . 00 % 29 , 41 3 73 7 46 . 73 . 16 % 10 0 . 00 % 17 . 68 % (1 2 ) li g h t i n g T a r i f f s (1 3 ) R 1 5 - Du s k T o D a w n 44 5 11 5 36 2 25 9 . 11 5 , 36 2 25 9 . 00 % (1 4 ) R 4 1 - Mu n i c i p a l l t n g 86 9 10 8 , 29 9 12 4 . 10 8 , 29 9 12 4 . 00 % (1 5 ) R 4 2 - Si g n a f l i g h t i n g 79 4 38 . 79 4 38 . 00 % (1 6 ) G R A N D T O T A L 63 6 , 85 5 22 0 29 9 39 . 29 , 63 9 , 19 2 46 . 17 . 52 % (1 7 ) 29 , 63 9 , 20 7 T a r g e t (1 ) T o i n d e x , e a c h c l a s s s p e r c e n t o f m a r g i n a l c o s t s i s d i v i d e d b y t h e p e r c e n t o f t o t a l m a r g i n a l c o s t s o f t h e t o t a l . Ra t e S p r e a d w o r k s h e e t ( R a t e S p r e a d - M a r g i n a l C o s t s ) . jc b r - !W'--M'~~~;z;"..:::..':C,;;', Irrigator Com ments Cost-at-Service Dec. 14 2004 Attachment No.Pages 1 through 39 (f) -I--' ::=- If) \.I- ()) -I-'(f) -I-' L.. ,-t Ov e r a ll D i r e c t i o n "" " " " " ' - " " " ' . ' " " . . , . : " " " " " " "" " . . - , Go o d d a t a is t o e v e r y o n e s b e n e f i t . Go o d m e t h o d s ar e t o e v e r y o n e be n e f i t . We s h o u l d w o r r y ab o u t d a t a an d te c h n i q u e an d n o t be r e s u l t s or i e n t e d Ar e a s T o Be A d d re s s e d T o d a y _" " " " " " " ' ~ , " " " f " "" ~ " "" , , , No r m a iz a t i o n o f us a g e d a t a . Lo a d R e s e a r c h d a t a co n c e r n s . . B i l l i n g V 5 . Ca l e n d a r d a t a Lo a d g r o w t h . , ' "" " " , , " " " " " " " ; " ; " " ' ~ "" " i " No r m a iz a t i o n o f U s a g e Da t a No r m a li z a t i o n o f Us a g e Da t a "" " W - " " " " " " " " " - ' ; , '" i ' , "" , ' An e x a m p i e wi II b e us e d t o d e m o n s t r a t e wh y d e m a nd le v e l s m u s t be n o r m a iz e d Ba s i c As s u m p t i o n s La r g e Re s i d e n t i a l o r Sm a l l C o m m e r c i a l No n - t e r n pe r a t u r e se n s i t i v e u s a g e : kW h p e r da y . Te r n pe r a t u r e se n s i t i v e u s a g e : kW h f o r ea c h 5 de g re e s o v e r 70 0 Da i ly T e m p e r a t u Ca se "" " " " " , = " " " " , , " , - ." ' "" i , , , . . i " " 70 0 mo s t d a y s , r i s i n g t o 95 0 1 0 0 1- - - - - - - - - ' - - - - - - ' - - - - - - - - - - - - - - - - - - - - - - - - - - - - ' - ' - - tJ )C1 ) 6 0 (0 (j ) C\ I L( ) C\ I I' - 12 0 10 0 .. c3: Da i ly Us a g e Ca se "" " " " " " " " " ' r" , . , . "" " " " , , , . . , . , ' '.: " ' ,. . Da i I y ds a g e C a s e 0 I ~ M ~ ~ m - M ~ ~. m ~ M ~ ~ m ~- ~ ~ ~ ~ N N N N N II M o n t h l y re s u l t s 11 Pe a k 1 0 0 k W h II T o t a l 1 75 0 k W h II L . F. 5 8 . 30 / 0 ly T e m pe r a t u Ca se 2 "" " " , " , - " " " ' 0 " " " " " " " " . , '0 " 0'" " , " " " . " " " ' " 80 0 mo s t d a y s , r i s i n g t o 05 0 1 2 0 '- - ' - " - - . -- - , - - - . - - - - . - , . . . . " ' . . . . . . " ' , .. . - . - - - - - - . - - . . . . . - . . - " - - " ' - - - ' " - ~ - " ' - ' - ~ " - - - - " ' - - ' - - - -, " " , - " . " , . , . - . - - . . .. - - - - - - - - - - - " - " " ' -- " , , - - - , - - - , -- - - " "- ~ ' - - ' - - . . . . . , " '" ~ " ' " " ' - " - - 10 0 80 .: . : : ~ ~ ~ ~ ~ ~ 14 0 12 0 10 0 .c Da i ly U s a g e Ca se 2 "" " " " " ' , " , "" ' . " :'; : " " "'" ,.. . ,.. " , Da i l y U s a g e C a s e 2 -- - . - ." . . - - - " " " -- - . , -- , - ~ -- - - .- . - - - " -. - - - -- -- - -- -- - -- - - - - ~, - . , - - - - - " - - " " - - ~ . . . - - . .. - ' - ' - . - f- - f- - f- - f- - f- - f- - ~ M ~ ~ m ~ M ~ ~ m ~ M ~ ~ m ~ ~ ~ ~ ~ N N N N II I Mo n t h l y r e s u l t s II P e a k 12 0 k W h II T o t a l 2 35 0 k W h .. L . F. 71 . 20 / 0 Da i ly T e m p e r a t u Ca s e 3 "" " ~ " " " " " " " " ' ;" " ' , '" . , . " . . ' i.; " " " 90 0 mo s t d a y s , r i s i n g t o 10 5 0 -- - - - - . . , . :- . . . - - , ..- - - - - - " "- . . - " . . . . , - - . . - - - . . -. " , , . . - - - - , - - - - " -- - - . . - - . . - - - . . . . . . - . . - . - - - - , - . - . . . . - - - - . . . - . . , - . . - - - . . - - 0" - , , , , - - - " , - " - " , , , - - - - , - , -- - - , . , - - - - - - ' - ' - . - , . " , ' .., . . " . , . . . . - , _ . . , . . - . . . -- - . , '- " - - 10 0 en C1 ) C1 ) 0' ) LC ) CX ) f' - ly U s a g e Ca se 3 ~~ . " " , " C ;" , . '"o ' , Da i I y Us a g e C a s e 3 14 0 12 0 10 0 - , __ ' - - - - , - - - " - - , -- -- - - - -- _. . -- - -- - " - " . , - . . - - . . . . -- - - , "_ 0 ' ..- . . . - - - - - . . - -" - . . . , - - - , - , - , '" - . . - , -" , . . , - _ . . .. - ~ - - - - , - _ . . _. - - . . . . ' - - ..- . . . - , . , . -- - - _ . . - , , , - - - - , - - '- - " - - - . . ~ ~ ." ~ : .. ~ ; ; \l - ~ _ II ' ! . "" " ~ ~i .I - ' ~ ~ ' ~ ;! i ~ ~l - i - ~I - - . . '" , ~ ;~ "1 - " - - ;; ~ ;! ; ;~ : :i ' ~; . " ;;i ~;; !:. jj j ;; i ;: : " . , ' " '- " - I- " , : ~ : I ' ! i j .. . i . ~ I . ~ : ! ' ~ - : ~ ~ - ~ - ~ " i ' i ): ~ 'C ' :~ : i( ' ~~ ; ; ( ;\ 1 1 ;" ) z :; : ;; ' - ~ j ~3 :, 1 ' ' " , ' :' ii - ; ff - :' ~; ;'j ;: F \ i~ ' ;~ ; I t ; " ; : - ~ ~ ~ - 0 - i - - .- - j " - : - . - w ~ f - ~ - : - t - ~ - 0 :: ~ !;: 1: i ~~ " ' r : 'i~ '. ~ ; ~: ;;i z~ ?:. ,. ,- ~i '; ' 0 \ ' : , " ;' :: " t o ' , ~ , i!~ ;, . / , i ~ ~ : - ; - : - ! - t : i - H ~ - ; - ' - ~~ i ' :: , ;' ' . - "- .' ,. . ~ ;1 .. : ~ ,, - " , , ~; J.. " i i i:; (( . . ; !~ ~;' ;:f (:; ;: ~ ~ ;f, I; : (.t :; : ; ,' , , T 1 Mo n t h l y re s u l t s Pe a k 1 2 0 k W h To t a l 2 79 0 k W h L. F . 9 3 . 00 / 0 ly 2 0 0 2 ai l y " Te m pe r a t u "" " " " " " " " " , " " , . , . " ' 0 , ,." . , 0','0 ' " ' Av e r a g e 9 4 . , r i s i n g t o 1 10 0 1 2 0 ' . " .. ' . . , . . . . . ' . . ' - - - , . . - , - - " - . . . - - . .. . - , . - . - , . ' ... " . . . . - ' - - " " , ' ., . - - . . . - - - - . , , - - - - - - . - , . . . . . . , -. . . . - . - - - . ' -._ " _ _ _ n " " _ " ,- , - . - - - , , - , , - ' - " ' " . - . . - - . . . . . - " "- " . . , . . . . . . , - - . - . . " - " " - . . . - . . " - " ' - - ".- - - - " " ' - . . , - . . . . - , , - - . . - " - " - ' - _ . " ' - - - " ' - - ' 00 tn ro ~ 16 0 14 0 12 0 10 0 Da i ly U s a g e ." " " " " " " " " " " " " , 0 ' ,;" Da i l y U s a g e . J u l y 20 0 2 ly 2 0 0 2 II M o n t h l y r e s u l t s . P e a k 1 5 0 kW h II T o t a l 3 69 6 k W h . L . F. 7 9 . 50 / 0 - , - . - - -- - - - - - - ." ' - - - " ' - - ' - - - - - ' - - - -- - - - - " - - ' -- - - , - - _ . - , - - - - - . - . - -" - - . . - -' . .- . - - . - . . -, - . - " . . . - - - . - , - - , , - - - , - - , ~ ' - - - " ' - " . _ - - " " - . . - - - - _ - ' _ 0 ' - - _ ' ' - " " - " " - - - ~ M ~ ~ ~ ~ M ~ ~ . ~ ~ M ~ ~ ~ ~ ~ ~ ~ ~ ~ N N N N N M ly 2 0 0 3 Da IV , Te r n pe r a t u r e .. -. -- - - . . -" " " " " "" . "," " " , p " , ~ " "" C ;:" 'C Av e r a g e 9 7 . , r i s i n g t o 1 0a O 1 2 a .. _ - - - , . . . " , . . - " - - " " ,- , - - - " - - - - , . " " " " , - - ~ - , - - , , , , , - , - - ' - ' - - ' - - " "- , - . . . . . , ' . , - - ," " " . - - " " ' - ' - - ' " ,"" _ . _ , , . . , ~ - - . _ - , - ~ , ._ _ . . , . _ , , " " - ' -' . " " " " ' - - " ' -- - " - ' " . , - . - - - . . . . - . , . - , . - -- - ' - ' - - ' - - " " " " . " - - - - ' -" - ' . - - - - _ . .. " " . , . - . . " " " " - . " 00 t/ ) 8 0 (L ) 00 ~ ly U s a g e ly 2 0 0 3 16 0 14 0 12 0 10 0 - . . . . . . . . - . - - - . . . - . . -- - - . - - . . . , . . , . . - .- - - . . - . . . . . - , . ,- . - , . . - - - - - . . . . . . . . - . ... . . . . . -- . . - . . " , - - - - - - . , . . , . . - - - , - . . . . . - - - , . . - - - - " . - . - - . . . , . . " . . . , . . - - - " , . . . - . ..- - " - . . , , , . - . . . , - - - . . . . . . . . - - . , , - - - - . . . _ - - - - - - - " - 1- - - , -r - "" ' ~ " " ' . ~" " , " ' : " ) ' "" ' "" , " " ' .', Da i l y U s a g e - Ju l y 20 0 3 LO f ' - en -r - (" / ) L( ) f' - -r - ~ ~ ~ en ~ LO f' - e n -r - ~ N N N N N II Mo n t h l y re s u l t s II P e a k 14 6 k W h II T o t a l 3 , 86 2 kW h II L . F. 8 5 . 30 / 0 Ho w d o e s IP C o n o r m a iz e d a t a "" " " " " . - " " " , e " " " ! , , ,,. c,. "" . "" " '~ ' ," . , . . We a t h e r no r m a l i z e s e n e r g y . II We a t h e r no r m a l i z e s r e v e n u e fo l l o w i n g en e r g y no r m a iz a t i o n De m a n d d a t a (c o i n c i d e n t a n d no n - co i n c i d e n t ) is n o t n o r m a l i z e d Wh a t d e m a n d da t a is u s e d - ' . "" ' i c ' ~ J . . " " " " " c , , ; " " IP C o d o e s n o t us e s p e c i f i c d e m a n d d a t a , bu t l o a d f a c t o r da t a o b t a ne d f r o m t h e mo s t r e c e n t lo a d r e s e a r c h i n f o r m a t i o n . IP C o s i m p l y ap p l i e s t h i s re c e n t l o a d f a c t o r da t a t o t h e no r m a l i z e d s a l e s da t a . Th e n e t re s u l t is th a t no r m a l i z e d u s a g e da t a c o u l d be c o m b i n e d w i t h an y o f t h e lo a d f a c t o r s f r o m C a s e s 1 - 3 ( 5 8 . 3 t o 93 . 00 / 0 ) i n or d e r t o de v e l o p d e m a n d da t a . No r m a iz a t i o n R e c o m m e n d a t i o n ":" i " " " " ' " " " ' , :C , o ' ." " ' .. De m a n d d a t a mu s t b e no r m a l i z e d a s e n e r g y da t a is n o r m a l i z e d . II It wo u Id b e na pp r o p r i a t e t o us e a c t u a de m a n d nd e n e r g y d a t a as t h is w o u Id a l l o w ra t e s t o be s e t up o n a b n o r m a l d a t a . In s t e a d o f no r m a l i z i n g d e m a n d d a t a , i t ma y be b e n e f i c i a l t o de v e l o p n o r m a l i z e lo a d fa c t o r d a t a an d a p p l y t h i s t o th e n o r m a l i z e en e r g y d a t a . _" " " " " . . " " " " " . " \ " , . ", . " , ~ " , Lo a Re s e a r c h Da t a Lo a d R e s e a rc h Da t a -" " " " " ' , " , ~ ~ " " " , , c,' : " .C . " ! ' . ' , '; ; Da t a is h o u s e d in a p r o p r i e t a r y pr o g r a m kn o w n a s Lo a d s t a r w i t h ac c e s s fo r S t a f f a n d in t e r v e n o r s . II I f da t a w e r e av a i l a b l e in c o m m o n fo r m a t s (E x c e l o r A c c e s s ) al l p a r t i e s wo u l d b e a b l e t o ma k e i n d e p e n d e n t re v i e w s o f t h e da t a . Us e s o f Lo a d R e s e a rc h Da t a "" " " " " , . " . " " , . m, " " " ",."" " . "" " " ' . " " " II L o a d Re s e a r c h d a t a co u l d p r o v i d e i n s i g h t i n t o : . I t s ow n a c c u r a c y (C o m p a r i s o n c o u l d b e ma d e o f lo a d r e s e a r c h e n e r g y u s a g e da t a w i t h t h e po p u l a t i o n en e r g y u s a g e d a t a . Us a g e p a t t e r n s by s i z e o f c u s t o m e r . T i m e - a t - us e p o t e n t i a l Lo a d f a c t o r s a n d ul t i m a t e l y c o s t - o f - s e r v i c e by s i z e of c u s t o m e r Lo a d R e s e a r c h R e c o m m e n d a t i o n w. . . . . . . ~ " " " , . t ~ . " , . 'i,'; , 'V " " "" " ; ' " . . : . Lo a d R e s e a rc h d a t a sh o u I d b e ma d e av a i l a b l e f o r e a c h h o u r , f o r e a c h cu s t o m e r th a t is s a m p l e d . Ha v e I P C o d e v e l o p (i n d e p e n d e n t l y o r co n j u n c t i o n w i t h t h e ow n e r s o f Lo a d s t a r ) a pr o c e d u r e b y wh i c h t h e ba s i c l o a d re s e a r c h d a t a is i n c o r p o r a t e d i n t o a n Ex c e l or A c c e s s f o r m a t i " " " " " " , . " " " " " "; - , ,0 ' , , ." " , , "ng C y c l e vs . le n d a Da t a Co n v e r s i o n fr o m b i ng cy c l e to c a le n d a r m o n t h d a t a "" " i " " " " . "" " , , , . OV C ; " o " " O C ' i . "': ' ' ' Lo a d R e s e a r c h d a t a is c o l l e c t e d o n a ca l e n d a r ba s i s , b u t po p u l a t i o n d a t a co l l e c t e d o n a bi l l i n g c y c l e ba s i s . . P r e s e n t l y th e co n v e r s i o n f r o m bi l l i n g c y c l e da t a t o ca l e n d a r m o n t h d a t a is d o n e si m p l y t a k i n g t h e nu m b e r o f d a y s in a gi v e n bi I I ng cy c l e f o r a gi v e n m o n t h a n d pr o r a t i n g th a t mo n t h b y it s r e s p e c t i v e nu m b e r o f da y s . Pr o b l e m s wi t h c o n v e r s i o n o f ll i n g c y c l e da t a "" I ! ! ! " " " " ~ d " " " " " ' ; ' ~ " " ; ";" "" : " If a gi v e n bi l l i n g c y c l e ha s 3 3 d a y s , a n d 1 1 o f th o s e a r e in t h e mo n t h o f Ju l y , t h e n 1/ 3 o f th e us a g e in t h e bi l l i n g c y c l e w i l l be a s s i g n e d to J u l y . II T h i s i s do n e o n t h e as s u m p t i o n th a t us a g e th e sa m e d u r i n g ea c h d a y t o t h e bi l l i n g c y c l e . Th i s i g n o r e s d a i l y lo a d c h a n g e s r e s u l t i n g fr o m s w i n g s in t e m p e r a t u r e o r ev e n se a s o n a l te m p e r a t u r e sh i f t s . Re s u l t s o f bi l l i n g da t a co n v e r s i o n as s u m ng e v e n u s a g e . A s lo n g a s us a g e fl a t , I P C o s c o n v e r s i o n 1 0 0 - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - fr o m bi l l i n g t o 80 Ca l e n d a r ca l e n d a r d a t a is O K . II W h e n us a g e v a r i e s th i s m e t h o d t e n d s t o sm o o t h p e a ks a n d la g s b e h i n d t h e ac t u a l ~ ~ c - - ~ ~ rn rn rn rn ~ :: E :2 : :2 : J J c: : ( c: : ( c:: ( us a g e , 0 ~ ~ a 0 0 ~ m m ~ N ~ N ~ N "." "" " " " " , " " . " "" . ' . - . , . . . "" " ., . " . , Bi l l i n g a n d A c t u a l kW h Co n v e r s i o n o f bi II i ng cy c l e da t a r e c o m me n d a t i o n s , " ,.. " " " . , . " " " " y , ' " , " " " ,," , '" ' " ' ' " /I F o r te m p e r a t u r e se n s i t i v e l o a d s , a f o r m u l a sh o u l d b e de v e l o p e d th a t c a l c u l a t e s " ba s e an d t e m p e r a t u r e se n s i t i v e l o a d us i n g HO D or CD D a n d th e n a s s i g n t h a t bi l l i n g da t a t o th e a p p r o p r i a t e mo n t h . . F o r l o a d s su c h a s I r r i g a t i o n us e t h e l o a d re s e a r c h d a t a t o we i g h t bi l l i n g mo n t h us a g e i n t o t h e ap p r o p r i a t e c a le n d a r mo n t h . , , "" " " " " " " " " , , " ; " ' . . . , ,," ' : , 'i: . :, , '/, . . , Co s t 0 G ro w t h Gr o w t h Is s u e s ." " . "" " " . " " " , " . ~ ' , . , Wh o is 9 ro w i n g nd h o w mu c h ? Wh a t is t h e c o s t of g r o w t h ? .. W h e n is t h e sy s t e m g r o w i n g ? Ho w ha s t h e sy s t e m c h a ng e d t o ac c o m m o d at e g r o w t h ? Ho w h a v e c o s t - a t - s e r v i c e st u d i e s ch a n g e d ? 00 0 50 0 00 0 50 0 :r : 3 00 0 ~ 2 50 0 C) 2 00 0 50 0 00 0 50 0 Gr o w t h in U s a g e Ov e r Th e La s t 23 Y e a "" " " " ' " " " " . $'; " ," ; , ; " Hi s t o r i c A n n u a l U s a g e c.. . . . _ _ . . , . _ _ . , _ . . . _ . - - ' . . . _ - . _ . . , -- ~ - ' " . . . _ ~ , . . . . . . . " " " ' - " - - - " . " " " - " " " " " " " " " " ' " . . . . . - - - - - . . " - - ,-- . . - . . . . . . . . , -,, , . - . " , . . . " . . - , . . . . . . " , ..' " , . . , . . . " . . . ,.. , . . , . . -- . . , . . " . . , . . " ... . " . . , 0 ' _ ' " ' -- " 1\ ... - . / C= - , .._ . , :: : : , :; ; ; ; . \ / "" , . . ' \ \ , "" " " " ", j , . / - ~~ . . . , . . . / v -- - - . - . . ,. . . Ir r i g a t i o n ~ M ~ ~ m ~ M ~ ~ m ~ M ~ ~ ~ ~ N N .. Re s i d e n t i a l u p 50 0 / 0 II S c h e d u l e 9 u p ov e r 10 0 0 / 0 II I r r i g a t i o n f l a t II I P r o d u c t i o n pl a n t in c r e a s e d $ 6 2 5 1 , 6 a a - , - . -.. . - - - - - . . - - . . . - - - - . . , , -" " " - , , - _ . , , , . , , - , - , -" " " " - " " - " , . " - " " " "" " " - , , , - - , , , , , -," " " " " - "- " " - " " . . . - - - - - - " " ' " .. . . . . , , - - - . . . . . - . . . . . . . . . . . . . - . . . . . . . . . . " - " " " - - -- " " " " - - " " " ' mi l l i o n o r 7 5 0 / 0 II I Tr a n s m i s s i o n in c r e a s e d $ 2 8 0 mi l l i o n o r 11 0 0 / 0 60 0 II I Di s t r i b u t i o n 40 0 = = = . - -- . . . - - - -- - -- - - - - . .. . , - t; : ; ; ~ - ~i ~ S in c r e a s e d $ 6 3 7 mi l l i o n o r 20 0 0 / 0 40 0 20 0 1 , 00 0 , g 80 0 ':" " " 20 0 Gr o w t h i n P l a nt i n S e r v i c e Ov e r t h e La s t 2 3 Y e a ~" " " . , " , o " , = , " " " " " " , "" . i ' . '~ " Hi s t o r i c P l a n t in S e r v i c e ge n e r a t i o n M ~ M ~ -r - ~ . . 30 0 ." . - . . . - . . - " 25 0 20 0 15 0 Gr o w t h i Di s t r i b u t i o n A c c o u nt s "" ~ " " " " " " " " " " " ' " " " "'. ' - " - - - . . Hi s t o r i c P l a n t A c c o u n t V a l u e s li n e t r a n s f o r m e r s - , Po l e s ~ / -- . . ..... - .. . "f 8 8 00 , " ~ ~ ~ ~ ~ ~ ~ : r , " , UG c o n d u i t Po l e s , OH c o n d u c t o r s an d li n e t r a n s f o r m e r s in c r e a s e d b e t w e e n 10 0 a n d 20 0 0 / 0 . &I Un d e r g r o u n d c o n d u i t an d c o n d u c t o r in c r e a s e d b y 60 0 0 / 0 . pa c t on I r r i g a t o r s . _ " ' " " " 8 " ~ " " ' " " ' c . , . ,.. ,,. . . ,. . . I r r i g a t i o n lo a d h a s b e e n f l a t , w h i l e re s i d e n t i a l an d c o m m e r c i a l lo a d h a s b e e n g r o w i n g . II T h e l a r g e s t in c r e a s e in p l a n t h a s b e e n as s o c i a t e d w i t h di s t r i b u t i o n . Ge n e r a l l y s p e a k i n g , Ir r i g a t i o n h a s no t be e n re s p o n s i b l e f o r a n y o f th e i n c r e a s e in p l a n t co s t s o v e r t h e la s t 23 y e a r s , a s th e i r lo a d h a s be e n s t a b l e . . . ng o f P e a Lo a d _. . . " " " , . "" " " " " , " N ' . " ' d " " " " , , Hi s t o r i c C o i n c i d e n t Pe a k D a t a 3 , 5 0 0 . -" . . - . . . . . . . ' - . . . . . - . . - . - - - - . . ' . . - ' - . . . . . . ' . . . ' - :.. - - . . - . . ' . . . - . . - - - . . . . . - . . . . . . ... . . . . . . . . . . . . . . . . . . . . - - - - . . - - - - . . . . - - . . . . . . - . . . - - - . . . . . . . . . ... . ' - - " " " - " - " - ' - - - - " " " " " ' - -" " " - " " ' - - " " " ' - " " " " " ' - " " ' 00 0 ! . .. . . . . " ' :I : 2 , 00 0 . . ' . .. , ' 0 . ' - ", , Ja n u a ' P e a k s == - . " t ;, : I I := E 1 50 0 I . 50 0 00 0 50 0 ,. . . ,. . . II I n t h e 8 0 ' s I P C o w a s du a l p e a k i n g . In t h e la s t 10 y e a r s IP C o h a s b e c o m e su m m e r pe a k i n g . Th i s s h i f t w a s ca u s e d by g r o w t h in AC a n d no t I r r i g a t i o n . .- . IP C O R e s p o n s e to Lo a d an d R e s o u rc e M "" " , , " , " ' , , , " " ; . " ' . ," , r . ' , ; , ";" " - " " , " :" ". I n th e 6 0 ' s I P C o p r o m o t e d Ir r i g a t i o n or d e r t o ut i l i z e i t s n e w l y i n s t a l l e d ge n e r a t i o n at t h e He l l s C a n y o n C o m p l e x . II Be c a u s e o f it s I P C o s h i g h w i n t e r lo a d , t h e r e wa s a n ex c h a n g e o f s u m m e r / w i n t e r po w e r wi t h WW P t h r o u g h 19 8 8 . .. W i t h nc r e a s i n g su m me r lo a d I P C o ha s be e n c o n t i n u a l l y ch a n g i n g it s e m p h a s i s su m m e r u s a g e in i t s c o s t - a t - se r v i c e mo d e l . Im p a c t o f Ch a n g i n g CO S St u d i e s . , , - " " " " . "" ' " " C " "'. ' . , 0" . " " ; - " II I n la s t c a s e IP C o p r o p o s e d us i n g o n l y 5 mo n t h s o f CP da t a . I r r i g a t o r s r a t e o f re t u r n wa s 5 . 4 p e r c e n t a g e po i n t s be l o w a v e r a g e . If t h e pr e v i o u s Co m m i s s i o n O r d e r w a s u s e d Ir r i g a t o r s r a t e o f re t u r n wo u l d h a v e b e e n 3 p e r c e n t a g e po i n t s b e l o w a v e r a g e . II I f Co m m i s s i o n O r d e r 15 9 7 7 w e r e fo l l o w e d (1 2 - CP ) , I r r i g a t o r s r a t e o f re t u r n wo u l d h a v e be e n 2 . 8 p e r c e n t a g e po i nt s b e l o w av e r a g e . Co n c l us i o n Tw o P r o b l e m s _, - m o " , " " " :'. " " . ':. " " " ' ";, . I P C o s a l l o c a t i o n s a r e ch a n g i n g a n d th u s c a u s i n g mo r e c o s t t o b e pl a c e d up o n t h e I r r i g a t o r s . Ev e n i f a l l o c a t i o n s ar e n o t ch a n g i n g , Ir r i g a t o r s g e t mo r e c o s t s b e c a u s e o f gr o w t h b y o t h e r cu s t o m e r s . Ir r i g a t o r s ar e n o t g r o w i n g , b u t be i n g c h a r g e d f o r th e g r o w t h o f ot h e r s . - . Ir r i g a t o r s Pa y f o r Gr o w t h o f O t h e r s "" " ~ " " " " " " . ' " " " , - "" ' " . .. Fo r a l l p r a c t i c a l p u r p o s e s , t h e Di s t r i b u t i o n pl a n t f o r I r r i g a t o r s w a s in p l a c e 20 y e a r s a g o . Di s t r i b u t i o n p l a n t - in - s e r v i c e w e n t fr o m $ 3 1 7 mi l l i o n in 19 8 1 t o $9 5 3 m i l l i o n in 2 0 0 3 . Ir r i g a t o r s c o n t r i b u t e d l i t t l e t o t h i s gr o w t h . Ir r i g a t o r s d o n o t u s e un d e r g r o u n d di s t r i b u t i o n bu t t h i s pl a n t - i n - s e r v i c e is 7 ti m e s it s 19 8 1 l e v e l , f r o m $ 2 4 up t o $1 7 3 mi l l i o n . Re c o m m e n d a t i o n Gr o w t h ,. . . . . . . . . . . . " . " , c " " " . "" ; , ,,, " "" " / ' ., .,'" Do n o t a p p l y a l l o c a t o r s to I r r i g a t i o n o r ot h e r cu s t o m e r 9 ro u p s th a t re f l e c t g r o w t h wh e n t h e s e cu s t o m e r s a r e n o t g r o w i n g . .. Do n o t al l o c a t e D i s t r i b u t i o n p l a n t t o Ir r i g a t o r s t h a t th e y d o n o t us e . .. Do n o t al l o c a t e t o I r r i g a t o r s th a t p o r t i o n of D i s t r i b u t i o n p l a n t th a t is r e l a t e d t o gr o w t h b y o t h e r cu s t o m e r s . MINUTES IPC-04- COST OF SERVICE WORKSHOP #3 Friday, February 25, 2005 . - ;tt r.; 'E.:t) l!JfLED tali JON 2' AMID: 23 iDAHO PUBLiC UTILITiES COf"tHlSS1ON Minutes and Participants The workshop began at 9 AM Friday, February 25 2005 in the Idaho Power office building. A list of the attendees is attached (see Workshop #3 , Attachment No.1). The minutes from the second workshop were distributed and no corrections or additions were offered. Demand Normalization and Growth Issues Tony Yankel representing the Idaho irrigators distributed and discussed a 38-page document titled "Irrigator Cost-of-Service Comments" (see Workshop #3 , Attachment No.2). Mr. Yankel first discussed a proposal for normalization of the monthly demand (load factors coincident factors, etc). He recommended a simple approach that would average the demand data over the most recent 5-year period. As an alternative it was suggested that the median demand from the period could be used. There was general agreement that use of the median demand data over a 5-year period made sense and was a realistic step toward normalization of demand data. IPC indicated it was willing to use 5-year median data as a surrogate for a demand normalization methodology, as agreed upon by the workshop participants, along with a traditional method in its next rate case filing. Mr. Yankel's presentation included a brief review of materials from the last workshop and a discussion of Growth issues. He then made a Growth Allocation Proposal for distribution plant only, that distinguished between New (growth) and Old (non-growth). New/growth would be defined as the increase in Distribution Plant over the last 20 years and would be allocated on the basis of the percentage of new energy in the last 20 years. Old/non-growth would be allocated on energy usage 20 years ago. In the discussion that followed it was suggested that the number of customers or the non-coincident peak (NCP) might be better than energy for allocation of distribution plant. There was also concern that this methodology might not be compatible with court opinions regarding new growth vs. old growth. Allocation of underground distribution was the next point of discussion. Mr. Yankel stated that underground plant had increased 600% in the last 23 years. He proposed that underground plant not be allocated to Schedule 19 or to the Irrigation Schedule 24, because they use no significant amount of it. He also suggested charging customers that use underground facilities more for that service. In the discussion that followed, it was asserted that most of the underground plant is contributed through the over-head/underground differential. It was also suggested by others that if underground distribution plant was not allocated to Irrigators perhaps they should have a greater portion of overhead distribution plant allocated to them because typically irrigators are more spread-out than other customer classes and typically have more distribution per customer. There was no consensus reached on this issue. Mr. Yankel identified the following issues remaining from the rate case: Classification of distribution plant between primary and secondary. At the present, if a pole or tower carries both primary and secondary lines, it is assigned to the primary component. He made no specific proposal to resolve this. Weighting factors for generation and transmission related demand and energy costs. At present, the Company develops these weighting factors based upon its latest IRP. He proposed that a cost-based method be developed for weighting these costs. The method could be based on actual wholesale transactions. There was no resolution on either of these issues. Proposal from IPC to adjust billine: cycle data and provide load research data. Paul Werner with IPC made a proposal to capture the effects of weather on energy consumption by using actual load research data to develop daily usage patterns rather than using simple linear interpolation to spread billed energy evenly across each billing cycle. This proposal was acceptable to all the parties. He also stated that the Company could provide load research data used within a rate case, but needed to protect the identity of the individual customers. Report on the experience of other utilities in dealine: with e:rowth issues. Ric Gale reported that, with the exception of Con-Edison, other utilities had no experience in dealing with this specific growth issue. IPC's situation is a bit unique, where the load growth for irrigators has leveled off while the system load continues to grow. David Schunke reported that he received a number of responses to his inquiry, which . framed the growth issue in more general terms. Line extension contributions, hook-up fees and rate design were referenced by a few responders, as tools used to deal with increasing cost associated with growth. Time of use (TOU) rates and inverted block rates were cited as possible ways to recover the cost of incremental load. Other issues Pike Teinert distributed a paper titled "Line Extension CIAC Example" (see Workshop , Attachment No.3). He stated that the Company uses connected load instead of diversified load to design the distribution system. Greg Said assured the group that the Company engineers do consider load diversity in the design of their distribution system. Mr. Teinert also felt that a customer s load factor should be considered in setting the CIAC. One of the primary focuses of the workshop is to address the cost of growth and how to mitigate its effect on other customers. Mr. Teinert's proposal would exacerbate the current situation and it was agreed that his arguments were not appropriate; in fact they cut the wrong direction. Next steps/Report to the Commission This discussion focused on identifying issues where the group had reached consensus. was agreed that a draft report should be circulated among the parties to give all an opportunity for comment. The final report would be submitted only after consensus is reached. IPCO Cost of Service Workshop No. Name resentin Phone No. Donovan E. Walker AG/IPUC 334-0357 Keith Hessing IPUC 334-0348 Dave Schunke IPUC 334-0355 Maggie Brilz Idaho Power 388-2848 Greg Said Idaho Power 388-2288 Irene Victory Packer Victory Family Heritage 853-9216 Pike T einert ESG, Energy Strategies Group 429-0808 Mary Graesch Idaho Power 388-2835 Pete P engill Idaho Power 388-2281 Paul Wemer Idaho Power 388-2669 Bart Kline Idaho Power 388-2682 Conley Ward Micron 388-1200 Randy Lobb IPUC 334-0350 Pete Richardson ICIP 938- 7901 Don Reading ICIP 342-1700 Ric Gale Idaho Power 388-2887 Attachment No. Cost of Service Report ;!i."":;;;X;:'oc.,' :' Irrigator Cost-at-Service Com ments Feb. 25 2005 Attachment No. Cost of Service Report U') U') ClJ c::( ClJ U') ClJ c::( CO -1-1 ro (/) -C "'0 ..c: OJc: ......., !.... OJ C1 -C ..c ~ ~ ....... -1-1 ::JCO c: 0 . CO -1-1 +-' cd:II II ;::!'!;:; -1-1 c:: '-I- c:: -1-1 ("I") Wh a t w a s co v e r e d la s t t i me ? -" " " " " " " " " " " " " " " " " " " ' : " "" ; " " ' :: . 0 ' ; , IP C o we a t h e r no r m a l i z e s e n e r g y . IP C o d o e s n o t we a t h e r no r m a l i z e de m a n d d a t a ( c o i n c i d e n t an d n o n - co i nc i d e n t ) . IP C o u s e s lo a d f a c t o r da t a o b t a i n e d fr o m t h e mo s t r e c e n t lo a d r e s e a r c h in f o r m a t i o n Wh a t w a s co v e r e d la s t t i me ? . ( c o n t . "" ' " " " " " " "" " " " " " " " " " " "" " " " ,,' - .., . . " Th e n e t re s u l t is th a t no r m a l i z e d en e r g y d a t a is c o m b i n e d w i t h lo a d fa c t o r s t h a t re f l e c t s a c t u a I ( n o t no r m a l i z e d re s u I t s ) in o r d e r t o de v e l o p ra t e s . No r m a l i z a t i o n O b j e c t i v e s , " "" " " " " " " " " " " " "." ' . " ' . " ' 0 " ' :'0 " '- " " " De m a n d d a t a sh o u l d b e n o r m a l i z e d a s en e r g y d a t a is n o r m a l i z e d . It wo u l d b e in a p p r o p r i a t e t o us e a c t u a l de m a n d a n d e n e r g y d a t a , a s t h i s w o u l d a l l o w ra t e s t o be ba s e d u p o n a b n o r m a l d a t a . In s t e a d o f no r m a l i z i n g de m a n d d a t a , no r m a l i z e d lo a d f a c t o r d a t a co u l d b e de v e l o p e d a n d ap p l i e d t o th e no r m a l i z e d en e r g y d a t a . Po s s i bl e S o l u t i o n # "" - " " ' I ' i , . . " " e " "" " " " " , . " " , , , ' . o " . .~ " " " ' . . " De v e l o p a mo d e l t o c o r r e l a t e de m a n d an d w e a t h e r , s i m i l a r t o th a t wh i c h us e d fo r e n e r g y no r m a l i z a t i o n ; De m a n d m o d e l i n g w i t h we a t h e r is n o t a st a n d a r d u t i l i t y pr a c t i c e . De m a n d m o d e l i n g w i t h we a t h e r ma y n o t pr o d u c e a hi g h le v e l o f c o r r e l a t i o n . De m a n d m o d e l i n g ma y b e e x p e n s i v e w i t h re s p e c t t o bo t h d o l l a r s a n d t i m e . . . Po s s i b l e S o l u t i o n # -- " " " " " " " " " " " " " ' " " " "" ' " " " , " 0 " 0'0 ' 0 " Us e a s i m p l e a v e r a g i n g t e c h n i q u e de v e l o p a v e r a g e Lo a d F a c t o r s a s o p p o s e d to no r m a l i z e d de m a n d s . . H i s t o r i c lo a d f a c t o r d a t a is r e a d i l y a v a i l a b l e fr o m I P C o s l o a d re s e a r c h d a t a . . I f su f f i c i e n t h i s t o r i c da t a is u s e d , a v e r a g e lo a d fa c t o r d a t a sh o u l d a p p r o a c h t h e re s u l t s t h a t wo u l d b e o b t a i n e d fr o m no r m a l i z a t i o n . Th i s t e c h n i q u e sh o u l d b e i n e x p e n s i v e an d n o t su b j e c t t o in t e r p r e t a t i o n a n d a r g u m e n t . Ho w w o u l d S o l ut i o n # 2 w o r k ? -- - " " " " , " , ~ - . , ; " " " r , ~ C "" " c "'i " . " " " . C' ." . . . I P C o h a s mo n t h l y lo a d f a c t o r d a t a an d co i n c i d e n t f a c t o r da t a f o r ea c h o f t h e sc h e d u l e s fo r w h i c h i t c o n d u c t s lo a d r e s e a r c h . . F o r ea c h s c h e d u l e t h a t ha s e n e r g y no r m a l i z e d lo a d s , t h e mo n t h l y lo a d f a c t o r f o r e a c h of t h e pa s t X - ye a r s w o u l d be a v e r a g e d in o r d e r t o de v e l o p a n a v e r a g e lo a d f a c t o r f o r th a t mo n t h . On a g o i n g f o r w a r d ba s i s , t h e s e a v e r a g e lo a d fa c t o r s w o u l d c h a n g e ba s e d u p o n t h e re s u l t s o f th e mo s t r e c e n t X - ye a r s o f d a t a . Ja n Fe b Ma r Ex a m p l e C a l c u l a t i o n ... " " m " " , " " ' j ' ? U ' " ' ? ; K " " " " " '" . 20 0 2 20 0 1 20 0 0 19 9 9 19 9 8 Me . 68 . 70 / 0 6 5 . 00 / 0 61 . 0 0 / 0 6 7 . 00 / 0 6 6 . 00 / 0 6 5 . 50 / 0 66 . 50 / 0 6 5 . 00 / 0 61 . 0 0 / 0 6 7 . 00 / 0 6 6 . 00 / 0 6 5 . 1 % 60 . 80 / 0 6 5 . 00 / 0 61 . 0 0 / 0 6 7 . 00 / 0 6 6 . 00 / 0 6 4 . 00 / 0 De m a n d N o r m a l iz a t i o n Re c o m m e n d a t i o n s -_ . . . " " " " ." " " " " " . , " " " " " ." " " . 0 ' " . , "; " . , , ' " , ' , Us e t h e av e r a g e o f t h e mo s t r e c e n t ye a r s o f mo n t h l y lo a d f a c t o r da t a in o r d e r to de v e l o p a n a v e r a g e lo a d f a c t o r t o ap p l i e d t o th o s e Sc h e d u l e s th a t ha v e no r m a l i z e d e n e r g y . Us e s i m i l a r 5 y e a r s o f mo n t h l y d a t a o f lo a d f a c t o r s a n d c o i n c i d e n t f a c t o r s t o de v e l o p " no r m a l i z e d " CP da t a . -" " " " " w " " " ~ " " " " . " " " " ": " " "" . ,, , . : : ,:: : . ,,. oc a t i on 0 G ro w t h Wh a t w a s co v e r e d la s t t i -- " " " " " " "" . " " " , . . "" " " " " " . " " ' .., , , . . , , . Wh o is 9 ro w i n g nd h o w mu c h ? Wh a t is t h e co s t o f gr o w t h ? Wh e n is t h e sy s t e m g r o w i n g ? Gr o w t h in U s a g e Ov e r Th e La s t 23 Y e a r s -- " " , - "" , . " " " " " , - "" " , . ' - " , "., . 0'0 ' ; - - - -- - - - - _. _ -- - Hi s t o r i c A n n u a l U s a g e 5 , 00 0 - - - , . . ' " - . . - . . . . - - , . - - - - - , . - , .. . . . - - . . .- . . ' . . - ' . - - - -- - " - - - . , - - - - - - - - - . . , - - . - . . . . - - . . . . . - - - - - - . , . . . . . - - . . . ' - - - . . ' - ' . . . . . . - ' - - - - ' - - - " " " " " ' - - " " - 50 0 00 0 50 0 -, , - :r : ; . 3: 2 , 50 0 - -~ I C) 2 00 0 - - /\ . / ~ _ "" " " . \ ~ ' " " , 50 0 "- ' ." ' - ' - "- . : : " ~ ' -- - - / -- ~- - ... c : : . . . v -- v ... , . -- , . __ . . ~. - - . - Ir r i g a t i o n 00 0 -- - - - -- - - - -- - - - - -- - 5 0 0 -- - - - - - - - - - - - - - - - M ~ M ~ -.. . , . . , - 0' ' - ' - , ' , ..- - - - - - - - - . -- - - - - - - - - - - - - - .'. ' . - -- - - - - .. - - -- - - -- - - -- - - - -- -- - - - - - - - - - - -- - - - -, - - - Re s i d e n t i a l u p 50 0 / 0 II S c h e d u l e 9 u p ov e r 10 0 0 / 0 . S c h e d u l e 1 9 u p 10 0 0 / 0 .. Ir r i g a t i o n f l a t Gr o w t h i n P l a n t in S e r v i c e Ov e r t h e La s t 23 Y e a r s -" " " " " " " , ~ " ";" " " ; " " . "" " : " -,, , , , , , , - " Hi s t o r i c P l a n t in S e r v i c e 1 , 6 0 0 . . . . , . . - - - , . , . ." . .- - . - - - - . , . . . - - . . - ,,-..- - -- . . . - - . . - , - - -- - , . , - - . . . , . ' . . . - - . . . ' - - - - . - . . . . -- - - - . . . . -- - . , - . . . . . . . . . - - - - . - - , . - . . . . . . . - . . - - - .. . . - - - - - - " - " - ' - - - - - - - . - - - . ' 40 0 ge n e r a t I o n 1 , 20 0 -- - - - -- - :5 1 00 0 0 / 80 0 dis t r i b u t i o n -- - - 60 0 -- - -- - - - -- - - - -- - 4I t ~ . ! 40 0 -- - - -- = - - = - - "' - -- - - - - - - - - - . -- - -- - - - - - -- - .. . . - - . -- - . .- - . - - - --- '. . . _.~ - , , -- _ . . - _ . . - ' - _ . . _ - . . - - - . -- . .. - . - - - - - - -. . ra n s m I S S I o n 20 0 ~= ~ - -- - -- - - ,- - -- - - ~- ~ -.. - . , , - . - ." - - - - - -- - -- - - - - - - - . . - - - -- - - . . . - - - .- - - - - __ _ _ .. n . _ - - - -- - - ." - --- " " " - - -- - - - - -- - - -- - - - - - -- - - _ . . - -- - , - - - - ., , - - - . - . . - -- - - '- - - - II I P r o d u c t i o n pl a n t in c r e a s e d $ 6 2 5 mi l l i o n o r 7 5 0 / 0 . T r a ns m i s s i o n in c r e a s e d $ 2 8 0 mi l l i o n o r 11 0 0 / 0 Di s t r i b u t i o n in c r e a s e d $ 6 3 7 mi l l i o n or 2 0 0 0 / 0 - - - - - - - -' - -- - - - Gr o w t h i Di s t r i b u t i o n A c c o u n t s "" " , - " , ~ " " " " " ~ " " " " . " , ~ " , . "~ , . ,,. , . .., , , . Hi s t o r i c P l a n t A c c o u n t V a l u e s 3 0 0 . , - - - - - - - - - - - - - - - . . . . _ - - - - - , . _ - - - - , -- - - - - - - ' - - - - - _ . . . . ",. - . , - - - - " ". - - - - - - - - - . - - - - - - , - - - - - -- . . - ' - - - . . . - - - . ' - - - - -- . - -- - - - - - 25 0 - (: ) 20 0 (: ) (: ) (: ) 15 0 00 Po l es :: : : .. c ~ - , - - OH co n d u c t o r 50 UG c o n d u i t li n e t r a n s f o r m e r s ,- - - -, , - , - - ' - ' - ' - - - " ' " - - - -- - - - - -- - - - -, - , - - - -- - - - - - -- - - - -- - - - - - . - - , .- - - -- - - - - - - - - - -- - - - - - - - , - , Po l e s OH c o n d u c t o r s nd l i n e t r a ns f o r m e r s in c r e a s e d b e t w e e n 10 0 a n d 20 0 0 / 0 . nd e r g r o u n d co n d u an d c o n d u c t o r in c r e a s e d b y 60 0 0 / 0 . ng o f P e a Lo a d In t h e 8 0 ' s I P C o w a s 50 0 - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0' ua I p e a ki ng . ! . In t h e la s t 10 y e a r s IP C o h a s b e c o m e su m m e r pe a k i n g . Th i s s h i f t w a s ca u s e d by g r o w t h in AC a n d no t I r r i g a t i o n . _.. . " . " " " " " " " , " " " " , . " , . . " " , - ",- .." , , , ... ,,0 " ".0 ' - ' ... .. - - . . - - - - . . -" " - -- - - - -- - - - - - - - - - -- - - _ u _ - - Hi s t o r i c C o i n c i d e n t Pe a k D a t a 00 0 50 0 . . - .. . . .. :r : 2 00 0 -- - - ~ . . ~~ - . . - . . - - . - I~ , .. : J a n u a l i P ea k s .. ~ ~ 50 0 - . ~~ ~ ~ - ~~ - ~~ ~ - - II I 00 0 .. - - - - --- - . . - -- - - - - - - - - - - -- - -- - - - -- - - - - - - - - - -- - - 50 0 .. - - - . . - - - - - - - - - - - - - - . .. - - - -- - - - - - - .. - - - . . - - - - . . - - - - - . . - -- - - - -- - -- - - - - - - - - - - -- l - . . . . -- - - - - - - - - - . . - - - - . . - - . . . . . . -.. - , - . . - -.. . . . . - - - - . . - -- - - - - -- - - - - -- - - - - . . . - - - ... . - . . - . . - - - - - -- - - - - - - _ ... . - - - - - . . - - - - . . - --- - - - - - - - - . . -- - -- - - - - -- - - - - - - . . . - - - - - - - -- - - - . . - - - . . - -- - - - . . - - - - - - -- - - - - - Im p a c t o n I r r i g a t o r s -- " " , . ",: , . . . , "" . : . " . ,:- ~ : , ,\p . . ,;, :" , ,. . I r r i g a t i o n lo a d h a s b e e n f l a t , w h i l e r e s i d e n t i a l an d c o m m e r c i a l lo a d h a s b e e n g r o w i n g . . . Th e l a r g e s t in c r e a s e in p l a n t h a s b e e n as s o c i a t e d w i t h di s t r i b u t i o n . Ge n e r a l l y s p e a k i n g , Ir r i g a t i o n h a s n o t be e n re s p o n s i b l e f o r a n y o f t h e in c r e a s e in p l a n t co s t s o v e r t h e la s t 23 y e a r s - - t h e i r lo a d h a s be e n s t a b l e . Wh e r e t o Ad j u s t f o r Gr o w t h ~; " \ .. . - " " " " " , "" ~ ! I : ~ " ",' $ . " "" " " ; " " , . I r r i g a t o r s ha v e n o t c o n t r i b u t e d t o th e ne e d fo r n e w G e n e r a t i o n , b u t ar e o n - pe a k u s e r s du r i n g a cr i t i c a l t i m e fo r IP C o . . I r r i g a t o r s ha v e n o t c o n t r i b u t e d t o t h e ne e d fo r n e w T r a n s m i s s i o n , b u t ar e o n - pe a k us e r s d u r i n g a cr i t i c a l t i m e f o r IP C o . . I r r i g a t o r s ha v e n o t c o n t r i b u t e d t o th e ne e d fo r n e w Di s t r i b u t i o n a n d ge n e r a l l y d o n o t ma k e u s e o f t h e ne w D i s t r i b u t i o n sy s t e m . Ho w t o De f i n e G r o w t h -- " " " " " " - "" " " " ' " " " " " " " " " " "" " "'" Mu s t p i c k a t i m e f r a m e . Fi v e y e a r s is t o o sh o r t a n d 40 y e a r s is t o o lo n g . 20 y e a r s se e m s a b o u t ri g h t . . H i s t o r i c en e r g y d a t a is a v a i l a b l e b y r a t e sc h e d u l e , b u t no t d e m a n d d a t a . Gr o w t h in p l a n t c a n b e de f i n e d by y e a r en d i n g v a l u e s in t h e FE R C F o r m 1 Th e s e va l u e s r e f l e c t " ad d i t i o n s " a n d " re t i r e m e n t s - . De f i n e Co s t o f Gr o w t h "" " , " ' . . ' " " " ' 2 ! , "" " " ' , "" , - "" . - : w , , , - .c e - . . - - . D e f i ne c o s t o f g r o w t h as t h e d i f f e r e n c e th e va l u e o f e a c h FE R C A c c o u n t fo r Di s t r i b u t i o n p l a n t - in - s e r v i c e a s t h e in c r e a s e in t h i s v a l u e o v e r t h e la s t 20 y e a r s . . D e f i n e th e c o s t o f n o n - gr o w t h a s th e va l u e of e a c h Di s t r i b u t i o n FE R C A c c o u n t fr o m 2 0 ye a r s ag o . 19 8 3 20 0 3 In c r e a s e Ch a n g e in FE R C A c c o u nt s ($ x 1 00 0 , 00 0 ) -" " " " " " " ' . . " " " " " " " " " , " ' u " , , " ' - " . "" " , . 0'0 ' , . . ' .,. , , Ac c t 3 6 0 A c c t 36 1 A c c t 36 2 Ac c t 3 6 4 Ac c t 3 6 5 Ac c t 3 6 6 Ac c t 3 6 7 Ac c t 3 6 8 . . La n d St r u c t . St a t . E Q . : Po l e s O H Wi r e UG C o n d o UG W i r e L T r a n s , 61 67 45 21 15 11 6 17 3 90 32 12 7 25 6 55 10 7 46 26 10 7 16 1 69 . 8% 3 9 . 8% 4 7 , 7% 6 1 , 5% 50 . 4 % 8 2 , 1% 8 3 . 9% 6 2 . Gr o w t h AJ l o c a t i o n P r 9 P o s a i - . . ' . . - " " , . . . " " " r " " " " ~ " . '-" " " " /" " " "" " ' . - . Us e e n e r g y a s ba s i s f o r de f i n i n g g r o w t h . Al l o c a t e c o s t o f gr o w t h ( i n c r e a s e in v a l u e o f FE R C Ac c o u n t ) o n t h e ba s i s o f p e r c e n t a g e o f ne w e n e r g y in l a s t 20 y e a r s . 19 J el l ?: l B ' 3 Al l o c a t e c o s t o f n o n - gr o w t h (v a l u e o f FE R C Ac c o u n t f r o m 2 0 ye a r s a g o ) on t h e ba s i s o f pe r c e n t a g e o f e n e r g y u s a g e 20 y e a r s a g o . Us e 3 - ye a r a v e r a g e en e r g y u s e t o d e f i n e hi st o r i e ( 2 0 y e a rs a g 0) a nd p r e s e n t u s a g e . - . Ov e r a l l G r o w t h R e s p o n s i it i e s E. l ( c A cb ~. ' - ; J' f J r n , / ~ Li ' / $ V , " " D 2 I ' $ ; $ / ~ ' 7 ~ 4 Sc h Sc h 7 Sc h 9 Sc h 1 9 Sc h 2 4 Ol d G W H 12 2 19 6 28 3 17 4 1 , 54 9 Ol d 42 . 40 / 0 70 / 0 17 . 40 / 0 15 . 90 / 0 21 . 00 / 0 No w GW H 37 4 29 7 14 7 22 9 69 2 In c r e a s e 25 2 10 1 86 4 05 6 14 3 % N e w 28 . 40 / 0 30 / 0 42 . 20 / 0 23 . 90 / 0 20 / 0 Co m p a r i s o n o f Al l o c a t o r s . , "" " " " " , ; " " , ! " ",! " , "" " ~ " : ' .. ' ! C" . ~~ . G e n e r a l l y sp e a k i n g t h e C o m p a n y s e n e r g y a l l o c a t o r (E l 0 ) an d i t s d i s t r i b u t i o n de m a n d a l l o c a t o r ( 0 2 0 ) li e b e t w e e n t h e ol d p e r c e n t a g e u s a g e al l o c a t o r a n d th e g r o w t h al l o c a t o r . An e x c e p t i o n t o t h i s ru l e is th a t t h e gr o w t h al l o c a t o r f o r Sc h . 2 4 is w e l l b e l o w t h e 3 0 . 20 / 0 of al l di s t r i b u t i o n c o s t s th a t a r e be i n g a l l o c a t e d t o th e Ir r i g a t o r s . Gi v e n t h e fa c t t h a t Di s t r i b u t i o n P l a n t ha s t r i p l e d in t h e la s t 23 y e a r s , i t is i n a p p r o p r i a t e fo r Sc h . 2 4 ' s s h a r e o f di s t r i b u t i o n t o be 3 0 . 20 / 0 Co m p a r i s o n o f A l l o c a t o r s (c a n t . ) -" " " " " " . -- - " " . "" " "" " "" . " " " " " " :'0 " : " " " c ' . Sc h Sc h 7 Sc h 9 Sc h 1 9 Sc h 2 4 Ol d % 4 2 . 40 / 0 2 . 70 / 0 1 7 . 40 / 0 1 5 . 90 / 0 2 1 . 00 / 0 Ol o 2 8 . 40 1 0 2 . 30 1 0 4 2 . 20 1 0 2 3 . 90 1 0 3 . 20 1 0 El 0 37 . 70 / 0 2 . 40 / 0 2 7 . 30 / 0 1 7 . 40 / 0 1 4 . 70 / 0 02 0 3 5 . 80 1 0 2 . 30 1 0 2 0 . 60 1 0 1 0 . 60 1 0 3 0 . 20 1 0 Ex a m p i e of Ap p l i c a t i o n -- " " ' , " " , "" ' ~ i " * , , " , C " cH c " " ." " ' " -. . . . 20 y e a r s a g o , Re s i d e n t i a l w a s r e s p o n s i b l e fo r 42 . 40 / 0 of t h e kW h c o n s u m e d b y t h e v a r i o u s cl a s s e s o n t h e Di s t r i bu t i o n s y s t e m . Ho w e v e r , Re s i d e n t i a l is o n l y r e s p o n s i b l e f o r 28 . 40 / 0 of t h e g r o w t h in e n e r g y th a t ha s oc c u r r e d in t h e la s t 20 y e a r s . . U s i n g a s an e x a m p l e Ac c t . 3 6 2 ( S t a t i o n Eq u i p m e n t ) , t h e r e wa s $ 6 1 m i l l i o n o f p l a n t 20 y e a r s a g o an d $ 1 16 m i l l i o n no w . Ex a mp l e o f Ap p l i c a t i o n (c o n t . ) , " " " , - " " " " , " " , ~ " " " , , '; " " " ' ; " ,. " " " . ", . , , . Un d e r t h i s pr o p o s e d m e t h o d Re s i d e n t i a l wo u l d b e al l o c a t e d 4 2 . 40 / 0 of t h e " ol d " pl a n t c o s t s . . R e s i d e n t i a l wo u l d a l s o b e al l o c a t e d 2 8 . 40 / 0 of t h e Gr o w t h ( 1 16 - 6 1 = $ 5 5 mi l l i o n ) . Al l r a t e sc h e d u l e s ( l a r g e a n d sm a l l ) w o u l d be t r e a t e d in a li k e ma n n e r . Im p a c t o f Gr o w t h Al l o c a t i o n "" " " " " " , " " ' " " " 8 " " " " " , . , ~ , . M" . ",, . ,, ' ' As e x p e c t e d , w i t h Ir r i g a t o r s n o t gr o w i n g , Sc h . 2 4 ' s s h a r e o f co s t s g o e s d o w n . Sc h e d u le s 9 a n d 19 ( w h e r e a lo t o f t h e gr o w t h is t a k i n g pl a c e ) s e e t h e i r sh a r e o f co s t s g o up . . R e s i d e n t i a l (a l t h o u g h g r o w i n g ) is n o t gr o w i n g a s ra p i d l y a s Sc h . 9 a n d t h u s se e s a m o d e r a t e de c r e a s e in c o s t s . Im p a c t o f Gr o w t h A l l o c a t o r Re l a t i v e R a t e s o f Re t u r n . , . . - " " " " , . " " " " " " " "" , ," " " " , " , . ' 0 ' " " . ;, " " " Sc h Sc h 7 Sc h 9 Sc h 1 9 Sc h 2 4 Ba s e 15 0 / 0 50 0 / 0 64 0 / 0 23 0 / 0 38 0 / 0 Ca s e Gr o w t h 67 0 / 0 46 0 / 0 87 0 / 0 97 0 / 0 97 0 / 0 Al l o c a t i o n ,& / 1 2 - g.f nd e r g r o u nd Di s t r i b u t i o n , " -" , ~ , , " " . "" " , " , j " , " " c '" ; : " ' k . " "" " i . 'i. .C " , II I r r i g a t o r s as w e l l as S c h e d u l e 19 u s e vi r t u a l l y no ( o r in s i g n i f i c a n t ) un d e r g r o u n d d i s t r i b u t i o n pl a n t . II U n d e r g r o u n d p l a n t sh o u l d n o t e a l l o c a t e d t o th e s e t w o cl a s s e s e x c e p t fo r i s o l a t e d a mo u n t s th a t ca n b e d i r e c t l y as s i g n e d . Th e C o s t - at - Se r v i c e a n a l y s i s ne e d s t o be r e r u n to pr o p e r l y ad d r e s s u n d e r g r o u n d pl a n t . Im p a c t o f Ch a n g e i - U nd e r g ro u nd A l l o c a t i o n i::" , '" " L t "" " " ' "" " " " l, f , ' ~ " " " -" \ " " " " , .' As ex p e c t e d ( w i t h Ir r i g a t o r s a n d Sc h e d u l e 1 9 no t u s i n g Un d e r g r o u n d p l a n t ) bo t h S c h . 1 9 an d Sc h . 2 4 / s s h a r e o f co s t s g o e s d o w n . II Ra t e s o f Re t u r n f o r ot h e r c u s t o m e r ro u p s ge n e r a l l y g o d o w n . II Re s i d e n t i a l r e t u r n (a l t h o u g h d e c r e a s e d th i s pr o p o s a l ) s t i l l re f l e c t s a n in c r e a s e in r a t e of r e t u r n co m p a r e d t o th e ba s e ca s e . - - - er g r o u n De a t o r -~ ~ _ _ ~~ I ~ t i v e R a t e s o f Re t u rr ; ; : ! 4 : 9 1 .. . c ' . Sc h Sc h 7 Sc h 9 Sc h 1 9 Sc h 2 4 Ba s e 15 0 / 0 50 0 / 0 64 0 / 0 23 0 / 0 38 0 / 0 Gr o w t h 67 0 / 0 46 0 / 0 87 0 / 0 97 0 / 0 97 0 / 0 Al l o c a t i o n Wi t h nd e r ro u n d 42 0 / 0 22 0 / 0 41 % 15 0 / 0 26 0 / 0 Al l o c a t i o n Im p a c t o f Gr o w t h A l l o c a t o r Al l Qu e s t i o n ... . " " " . .." " " " , . ' " " " , '" . , . 'iI , "" . : " " , . . , , II W h y sh o u l d al l c u s t o m e r s pa y f o r un d e r g r o u n d se r v i c e ? Ha s a n y o n e c o n s i d e r e d ch a r g i n g cu s t o m e r s t h a t us e u nd e r g r o u n d fa c i it i e s mo r e f o r t h i s se r v i c e ? Th e pr i c e d i f f e r e n t i a I c o u I d be c a le u la t e d in a ma n n e r s i m i l a r t o th a t wh i c h se p a r a t e s T r a n s m i s s i o n an d D i s t r i b u t i o n or Pr i m a r y a n d Se c o n d a r y . . . , ' .. . Re c o m m e n d a t i o n s ~ . ' ' "" " " " " " " " " " ' ~ " " ' J " " " " " " " " ",: , ,, II C l a s s i f y gr o w t h in t h e Di s t r i bu t i o n s y s t e m di f f e r e n t l y th a n o l d e r pl a n t in s e r v i c e . II A l l o c a t e D i s t r i b u t i o n p l a n t gr o w t h b a s e d up o n t h e gr o w t h in p l a n t co s t s ov e r t h e la s t 20 ye a r s a s w e l l as r e l a t i v e sh a r e o f in c r e a s e d u s a g e o v e r t h e la s t 20 ye a r s . . A l l o c a t i o n nd e r g r o u n d pi a nt t o on I y th o s e cu s t o m e r s t h a t us e t h i s pl a n t . ~, , ' = " " ' _ " ' 3 " " " " " ~ ; " " ' . " " - c' Ot h e r Is s u e s Is s u e s r e m a i n i n g f r o m ra t e ca s e -- " " , = " " , . . "" " " ) " " . " ; " .~ , , , ,, ; , , . c . " " ; ' . " " " ' ' , .. C l a s s i f i c a t i o n o f Di s t r i bu t i o n Pi a nt be t w e e n Pr i m a r y a n d Se c o n d a r y II A t p r e s e n t , i f a p o l e o r t o w e r c rr i e s b o t h pr i m a r y a n d se c o n d a r y l i n e s , i t i s as s i g n e d t o th e p r i m a r y co m p o n e n t . Is s u e s re m a i n i ng f r o m r a t e c a s e co n t i ) ", - , ~ . " " . "" , ! ~ . " ?;, , ,; ; c .' . ",. ., - II W e i g h t i n g f a c t o r s f o r Ge n e r a t i o n a n d Tr a n s m i s s i o n r e l a t e d De m a n d a n d En e r g y co s t s . II A t p r e s e n t , t h e Co m p a n y d e v e l o p s t h e s e we i g h t i n g f a c t o r s ba s e d u p o n i t s l a t e s t IR P mo d e l i n g w i t h s o m e in t e r p r e t a t i o n . It i s pr o p o s e d t h a t a c o s t - ba s e d m e t h o d de v e l o p e d f o r we i g h t i n g t h e s e co s t s . Su c h a co s t b a s e d m e t h o d co u I d co m e f r o m a c t u a wh o l e s a Ie t r a ns a c t i o n d a t a . \ ( ) : J : : : I 0 r t m r t rt II I :: T H' I a (I ) (J ) : : s (I ) r t c: : : Z 1- ' . 0 () . (I ) :;; a (I ) ;~ " , Li n e E x t e n s i o n C I A C E x a m p l e Pi k e T e i n e r t es g , e n e r g y s t r a t e g i e s g r o u p Fe b r u a r y 2 5 , 2 0 0 5 esg LLC 2/25/05 Line Extension CIAC Exam~ IPC- E-04- 23 W 0 rksh 0 p, 2/25/05 Example from an IPCo project, excluding customer name, comparing impact of non-diversified load and absence of Allowance credit in IPCo Line Extension Policy on CIAC to other companies with estimated diversified load and Allowance credits. Utility New! Added Load CIAC Allowance Allowance Net Cost. factor (5)CIAC IPCo 4 MW connected (1)$561 824 (3)none none $561 824 Avista 2 MW estimated (2)$439 118 (4)$0.0600/annual $439 118 (6) kWh UP&L 2 MW estimated $439 118 $901kW $288 000 $151 118 PGE 2 MW estimated $439 118 $0.0295/annual $578 861 (6) kWh Nevada 2 MW estimated $439 118 $1011kW $323,200 $115 918 TXU Ener2Y 2 MW estimated $439 118 $941kW $300 800 $138 318 (1) Connected load as defined in IPCo Rule C (2) Diversity factor of 80% (3) $490 824 substation cost + $71 000 distribution line cost = $561 824 net customer CIAC ( 4) Reduced substation cost by 20% based on estimated diversified load (5) Allowance factor as defmed in company s tariff (6) Average Monthly Load Factor for this rate class is 70+% based on IPC E-03-13. 70% used in this example. .7 x 730 hrs/month x 3 200 kW = 1 635 200 kWh/month or 19 622 400 kWh/year I.P.C. No. 27. Tariff No. 101 IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective Ori inal Sheet No. H-June 1, 2004 June 1, 2004 Jean D. Jewell Secretary Idaho Power Company RULE H NEW SERVICE ATTACHMENTS AND DISTRIBUTION LINE NST ALLA TIONS OR AL TERA TIONS This rule applies to requests for electric service under Schedules 1 , 7 t 9, 19, 24, 45, and 46 that require the installation, alteration, relocation, removal, or attachment of Company-owned distribution facilities. New construction beyond the Point of Delivery for Schedule 9 or Schedule 19 is subject to the provisions for facilities charges under those schedules. This rule does not apply to transmission or substation facilities, or to requests for electric service that are of a speculative nature. Definitions Additional Applicant is a person or entity whose Application requires the Company to provide new or relocated service from an existing section of distribution facilities with a Vested Interest. Applicant is a person or entity whose Application requires the Company to provide new or relocated service from distribution facilities that are free and clear of any Vested Interest. Application is a request by an Applicant or Additional Applicant for new electric service from the Company. The Company, at its discretion, may require the Applicant or Additional Applicant to sign a written application. Company Betterment is that portion of the Work Order Cost of a Une Installation, alteration, and/or Relocation that provides a benefit to the Company not required by the Applicant or Additional AppUcant. Increases in conductor size and work necessitated by the increase in conductor size are considered a Company Betterment if the Connected Load added by the Applicant or Additional Applicant is less than 100 kilowatts. If, however, in the Company s discretion, it is determined- that the additional Connected Load added by the Applicant or Additional Applicant, even though less than 100 kilowatts, is (1) located in a remote location, or (2) a part of a development or project which will add a load greater than 1 00 kilowatts, the Company will not consider the work necessitated by the load increase to be a Company Betterment. Connected load'is the total nameplate f(W rating of tlie electric loads connected- for commercial industrial, or irrigation service. Connected Load for residences is considered' to be 25 kW for residences with electric space heat and 15 kW for all other residences. d"C ,c, Fire Protection Facilities are water pumps and other fire protection ~nt, u. served separately from the Applicant's other electric load, which operate only for short periods of time in emergency situations and/or from time to time for testing purposes. Line Installation is any installation of new distribution facilities (excluding Relocations or alteration of existing: distribution facilities) owned by the Company. IDAHO Issued Per IPUC Order Nos. 29505 and 29506 Effective - June 1, 2004 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectiveSept. 28, 2004 August 16, 2004 Per O.N. 29599 Jean D. Jewell Secretary ..h Air I.P.C. No. 28 Fifth Revised Sheet No. 12R.2 Canceling Fourth Revised Sheet No. 12R.2 CONDIDONS AND DEFINITIONS (continued) (c)Engineering Costs - (continued) If the Applicant or Customer requests changes that require additional estimates, they must advance the Company s estimated Engineering Costs, but not less than the minimum specified in Schedule 300 for each additional estimate. The Company will not refund or credit this payment. (d)Extension - A branch from, a continuation of, or an increase in the capacity of, an existing Company owned transmission or distribution line, where a line bas not been removed, at (C) customer request, within the last 5 years. An extension may be single-phase, tbree;..pbase or (C) a conversion of a single-phase line to a three-phase line. The Company will own, operate and maintain all Extensions made under this regulation. (e)Extension Allowance - The Extension Allowance is the portion of the Extension that the Company provides or allows without cost to the Applicant. The portion will vary with the class of service that the Applicant requests. The Extension Allowance does not include costs resulting from: additional voltages; duplicate facilities; additional IWints of delivery; or any other Applicant requested facilities that add to, or substitute for, the Company standard construction methods or preferred route. An Extension Allowance will be. provided only if tbe Company has reasonable assurance as to the permanent continuation required revenue. The Extension Allowance is not available to customers receiving electric service under special pricing contracts. (f)Extension Costs Extension Costs are the Company s total costs for constructing Extension using the Company standard." construction methods, including services~ transformers and meters, labor, materials and overheads. (g) Extension Limits - The provisions of this regulation apply to Line Extensions that require standard construction and will produce sufficient revenues to cover the ongoing costs associated with them. The Company will construct Line Extensions with special requirements or limited revenues under the terms of special contracts. Examples of special requirements include, but are not limited to, unusual costs incurred for obtaining rights-of-way ~ overtime wages, use of special equipment and facilities~ accelerated. work schedules to meet the applicant's request, or non-standard construction requirements. (Continued) Submitted Under Advice Letter No. 04-04 ISSUED: July 16,2004 EFFECTIVE: August 16, 2004 BlahIIII C. No. 28 Fourth Revised Sheet No. 12R.6 Canceling Third Revised Sheet No. 12R. NONRESIDENTIAL EXTENSIONS (a)High Voltage Extension Allowances The Company will determine the amount of the extension allowance on a case by case basis for customers taking service at 44 000 volts or greater. (b)Primary and Secondary Voltage Extension Allowances (1)Less than 1,000 kW The Company will grant Nonresidential Applicants requiring less than 1 000 kW an Extension Allowance of $90 per kW of estimated load. The Applicant must advance the costs exceeding the Extension Allowance prior to the start of construction. The Company may require the Customer to pay a Contract Minimum Billing for five years. (2)000 kW or Greater The Company will grant Nonresidential Applicants requiring 1 000 kW or greater an Extension Allowance of $90 per kW of estimated load. The Applicant must advance the costs exceeding the Extension Allowance. Fifty percent of the advance is due when the contract is executed with the remaining balance due upon completion of the Extension. The Customer must pay a Contract Minimum Billing for as long as service is taken but in no case less than five years. If service is tenninated within the first 10 years the Customer must pay a termination charge equal to the Extension Allowance less l/IOth of the allowance for each year service was taken. (3)Remote Service The Company will grant Applicants for Remote Nonresidential Service an Extension Allowance of $90 per kW of estimated load. The Applicant must advance the costs exceeding the Extension Allowance prior to the start of constmction. The Applicant must also pay a Contract Minimum Billing for as long as service is taken, but in no case less than five years. (Continued) Submitted Under Advice Letter No. 00- ISSUED: July 14, 2000 EFFECTIVE: August 15, 2000 Portland General Electric Company P .C. Ore on No. E- First Revision of Sheet No. G-8 Cancelin Ori ina! Sheet No. G-8 (1) licants for New Pennanent Service Individual Applicants Applicants for new permanent service shall be responsible for the Line Extension Costs, less the applicable Line Extension Allowance listed in Schedule 300. In addition, any payments to a third party for easements, permits, additional costs associated with Underground Line Extensions, and all other additional costs described in this rule will be the responsibility of the Applicant and are not eligible for the Line Extension Allowance. Other than Individual Applicants The Company will install a main-line primary distribution system to provide service to a Project (e., a subdivision, industrial park, or similar project) to serve Consumers within the Project provided the Applicant pays in advance for. 1) the total estimated cost of the installation of a continuous conduit system which includes, but is not limited to, the costs of trenching, boring, excavating, backfilling, ducts, raceways, road crossings, paving, vaults, transformer pads and any required permits; and 2) all other Applicant Cost Responsibilities based on the expected load within the project. The expected load in a large lot subdivision, industrial park, or similar project is comprised of only those loads projected to be connected within the first five years. Any Line Extension refund owed to the Consumer or Applicant will be based on load connected within the first five years. (2) Advice No. 02- Issued February 22, 2002 Pamela Grace Lesh, Vice President Effective for service on and after April 24, 2002 (T) (T) (T) (T) General Electric Company P .C. Oregon ~o. E- Second Revision of Sheet No. 300- Revi!!mLof S~o. 300- SCHEDULE 300 (Continued) TRANSFORMERS (Rule G) Submersible T ransformers(1) Subdivision - five dwelling units or more Mobile Home - five spaces or more Multi-Family Units - nine units or more $ 150.00 per lot $ 1 050.00 minimum $ 150.00 per space $ 1 050.00 minimum $ 75.00 per family unit $ 1 050.00 minimum (1) For all other applications, which include but are not limited to network service areas and densely populated urban areas, that require submersible transformers, the charge shall be the calculated difference in cost between submersible and pad-mount transformer installations including the costs of future maintenance. LINE EXTENSIONS (Rule G) Une Extension Allowance (Section 2) Residential Service Small Nonresidential Service (Schedules 15, 32 & 47) large Nonresidential Service Secondary Voltage Service (Schedules 38, 49, 83 & 91) large Nonresidential Primary voltage service (Schedules 38, 49 & 83) $ 1 514.00 'dwelling unit$ 0.1129 'estimated annual kWh 0524 'estimated annual kWh 0295 'estimated annual kWh Advice No. 02- Issued December 17, 2002 Pamela Grace Lesh, Vice President Effective for service on and after February 5, 2003 (M) (M) (T) (T) loP .C. No. 28 Third Revision Sheet 2f .... . PUBLIC UTlUTIES CO~MISSI~N Canceling 'pproved Effectlve Second Revision Sheet 21 Dec. 1, 2004 Dec. 2, 2004 .. ... . 'p- - .. .....--..- . - .'.. PerO.29638VlST A CORPORA TION Jean D. Jewell Secretary dba A vista Utilities SCHEDULE 21 LARGE GENERAl SERVICE - IDAHO (Available phase and voltage) AVAILABLE: To Customers in the State of Idaho where Company has electric service available. APPUCABLE: To general service supplied for aU power requirements when all such service taken on the premises is supplied through one meter installation. Customer shall provide and maintain all transformers and other necessary equipment on his side of the point of delivery and may be required to enter into a written contract for five (5) years or longer. MONTHLY RATE: The sum of the following demand and energy charges: Energy Charge: FIrst 250.000 kWh All Over 250.000 kWh Demand Charge: $250.00 for the first 50 kW of demand or less. $3.00 per kW for each additionalkVV of demand. Primary Voltage Discount: If Customer takes service at 11kv (wye grounded) or higher, he win be allowed a primary voltage discount of per kW of demand per month.Power Factor Adjustment Charge: If Customer has a. reactive kiIovoIt-ampere (kVAr) meter. he wHI be subject to a Power Factor Adjus1ment charge. as set forth in the Rules & Regulations. Minimum: $250.00. unless a higher minimum is required under contract to cover special conditions. ANNUAL MINIMUM: The current 12-rnonth bUng including any charges for power factor correction shall be not less than $10.00 per kW of the highest demand established during the current 12- month period provided that such highest demand shall be adjusted by the elimination of any demand occasioned by an operation totally abandoned during such 12-month period. DEMAND: The average kW supplied during the 15-minute period of maximum use during the month as determined by a demand meter.. SPECIAL TERMS AND CONDITIONS: Customers served at 11 kv or higher shaH provide and maintain all transfonners and other necessary equipment on their side of the point of defwery. Service under this schedule is subject to the Rules and Regulations contained inthis tariff. The above Monthly Rates are subject to increases or decreases as set forth in Tax Adjustment Schedule 58, Temporary Rate Adjustment Schedule 65, Temporary Power Cost Adjustment Schedule 66. and Energy Efftciency Rider Adjustment Schedule 91. Issued November 30, 2004 Effective December 2, 2004 4..68ge per kWh 986f: per kWh Issued by Avista Utilities By Kelly 0.. Norwood - Vice President. State & Federal Regulation /fI" I.P.C. No. 28 First Revision Sheet 51J Canceling Original Sheet 51J 51J AVISTA CORPORATION dba Avista Utilities SCHEDULE 51 - continued The Total Estimated Extension Cost shall include all costs which are necessary to provide service to the Customer, as determined by the Company. The amount of the Allowance will be determined individually for each Customer based on the Company's estimate of the Customer's annual energy usage and an allowance per kwh based on the applicable service schedule. When two or more Customers apply concurrently for service from the same Une Extension, each will receive an Allowance up to their proportion of the Total Estimated Extension Cost. Allowances shall be granted only against the costs of the current project and not against any part of an earlier or future extension. The Allowance will be the Total Estimated Extension Cost, or the applicable Allowance by Schedule multiplied by the Customer estimated energy usage, whichever is less: ALLOWANCE BY SERVICE SCHEDULE Schedule 11 or 12: $0.10703 per kwh Schedule 21 or 22: $0.06000 per kwh Schedule 31 or 32: $0.06000 per kwh Exception: The Company will not grant an immediate Allowance if the Company, in its sole judgement, determines that the load will be in service less than five years. Undeveloped Commercial and Industrial Lots: A development is a group of neighboring undeveloped lots separated by no more than streets and under the ownership or legal control of a single party as determined by the Company. The General Rules, the Rules for Commercial and Industrial Customers and the following apply to line extensions within commercial or industrial developments. Before Company facilities will be installed, the developer must submit a written application for service and a copy of the plat as approved by the Issued January 29. 2001 Effective February 15, 2001 Issued by Avista Utilities , Manager Rates & Tariff Administration Tariff for Retail Delivery Service TXU Electric Delivery Company Chapter 5: Service Rules & Regulations (Retail Customers) Applicable: Entire Certified Service Area Effective Date: January 1, 2004 Page 11 of 16 Revision: One excluded from this section and is addressed in Section 5., METER, of this Chapter. Payments the form of a contribution in aid of construction or an advance for construction may be required from the entity requesting such Construction Service prior to commencement of construction in accordance with Section, 5.4, ALLOWANCE FOR FACILITIES, Section 5.5, NON-STANDARD FACILITIES, and Section 6.1, RATE SCHEDULES. CONTRACTUAL ARRANGEMENTS Company may require an executed Facility Extension Agreement, in the form approved by theCommission and specified in Section 6., RATE SCHEDULES, of this Tariff, between the entityrequesting such service and Company prior to Company constructing standard and non-standardDelivery System facilities. In those instances where any payments are required. Company wiD provide a detailed cost estimate for the entity requesting the service to determine the special contractual arrangements required before Construction Service is provided. Regardless of any such payment, Company shaD at all times have title to and complete ownership and control over facilitiesinstalled by Company. PROCESSING OF REQUESTS FOR CONSTRUCTION OF DISTRIBUTION FACILITIES Requests for new residential Delivery Service requiring Construction Service, such as line extensions, shall be completed within 90 days of execution of the Facility Extension Agreement, or within a time period agreed to by the entity requesting the Construction Service and Company. and after the entityrequesting Construction Service has made satisfactory payment arrangements for ConstructionService Charges. For all other extensions requiring construction, requests should be completedwithin the time estimated by Company. For the purposes of this section. facility placement that requires a permit for a road or railroad crossing will be considered a line extension. Within tenBusiness Days of Company s receipt of a detailed request, Company shall give the entity requesting Construction Service an estimated completion date and an estimated cost for all charges to beassessed. Unless a delay is beyond the reasonable control of Company. a delay of more than 90 days beyond execution of the Facility Extension Agreement for new residential Delivery Service shall constitutefailure to serve. unless the entity requesting the service has agreed to a longer term. TheCommission may conduct enforcement action and seek penalties and other remedies forunreasonable delays. ALLOWANCE FOR FACILITIES The entity requesting the service will receive an allowance for installation of facilities. The calculationof the allowance and definitions of standard and non-standard facilities are provided in Section 6. RATE SCHEDUlES- Payments in the foon of a contribution in aid of construction may be required for the extension in excess of the allowance in accordance with Section 6., RATE SCHEDULES. V\lhentwo or more applications for Delivery Service from the same extension are received prior to starting construction of the extension. the maximum allowance is the sum of each individual applicant'allowance. 7~5 NON-8TANDARD FACILITIES Non-standard facilities are defined in Section 6.. RATE SCHEDULES, and may include but are notlimited to a two-way feed, automatic and manual transfer switches, Delivery Service through morethan one Point of Delivery, redundant facilities, faciflties in excess of those normally required forDelivery Service. or facilities necessary to provide Delivery Service at a non-standard voltage. Tariff for Retail Delivery Service TXU .Electric Delivery Company Chapter 5: Service Rules & Regulations (Retail Customers) Applicable: Entire Certified Service AreaEffective Date: January 1, 2004 Page 12 of 16 Revision: One If the entity requesting Construction Service desires Delivery Service utilizing non~standard Delivery System facilities, as described above and not covered elsewhere in this Tariff Company shall construct such facilities unless, in the reasonable judgment of Company, such construction would impair Company s facilities or facilities with which Company is interconnected. impair the proper operation of such facilities, impair service to Retail Customers, or there are other appropriate concerns that the entity requesting service is unable or unwilling to correct. The entity requesting Construction Service shall pay to Company the estimated cost of all non-standard facilities, offset by any applicable allowance, as detailed in Section 6., RATE SCHEDULES, and the Facility Extension Agreement. RETAIL CUSTOMER REQUESTED FACILITY UPGRADES In the case of upgrades to Delivery System facilities necessitated by Retail Customer adding load in excess of existing Delivery System facility capacity, should a contribution in aid of construction be required pursuant to Section 6., RATE SCHEDULES, only the cost of the facility upgrades that are attributable to the Retail Customer's request will be included in calculating a payment to Company. TEMPORARY DISTRIBUTION FACILITIES Company is responsible for the extension of Delivery System facilities necessary to connect Retail Customer's temporary Point of Delivery to Company s Delivery System for the purpose of providing temporary Delivery Service. Retail Customer, or the entity requesting such service, shall pay Company prior to Company s constructing temporary Delivery System facilities in accordance with Section 6., RATE SCHEDULES. REMOVAL AND RELOCATION OF COMPAN'rS FACILITIES AND METERS Company may remove or relocate Company facilities and the Meter at Retail Customer's request unless doing so would create a safety hazard or would be incompatible with providing safe and reliable Delivery Service. Retail Customer, or the entity requesting such removal or relocation, shall pay to Company the total cost of removing or relocating such Delivery System facilities in accordance with Section 6.1, RATE SCHEDULES. DISMANTLING OF COMPAN'rS FACILITIES Company may, upon discontinuation of Delivery Service to Retail Customer, dismanUe and remove all lines, equipment, apparatus, or other facilities, which Company installed to provide Delivery Service to Retail Customer. Company may abandon in place, in whole or in part, its underground lines and equipment in lieu of removing such. Company shall be subject to liability pursuant to Section 5. LIMITS ON lIABILITY (which limits any legal liability only as expressly stated therein), for any such abandoned lines or equipment, and may offer Retail Customer the option to terminate applicable easements pursuant to this Tariff. BILLING AND REMIIT ANCE BILLING OF DELIVERY CHARGES Company shall bill Retail Customer's selected Competitive Retailer for all charges associated with Delivery System Services and Discretionary Charges not associated with Construction Services. BILLING TO RETAIL CUSTOMER BY COMPANY For Construction Services, Company shall bill the entity that requests Construction Services from Company. When Retail Customer requests such services, Company may, pursuant to this Tariff and according to the terms of Facility Extension Agreement, require prepayments, contributions in aid of 1.2 Discretionary Service Charges Applicable: Entire Certified Service Area I:ffective Date: January 1. 2004 arifffor Retail Delivery Service TXU Electric Delivery Company Sheet 2 Page 3 of 5 Revision: One Vault When a vault for Company's transformers, switchgear or other facilities is required on Retail Customer's Premises, and Jocation is acceptable to Company. Retail Customer provides and installs the vault in aCCOltlance with Company specifications. If the vault islocated inside or under Retail Customer's buikf~ Retail Customer provides the necessary Raceway for Company's conductors so thatsuch conductors are Conductors Considered Outside of Building. Company installs in the vault. transformers and/or other facilities necessaJy to provide Delivery Service to the Retail Customer. The Retail Customer is responsible for shielding or Jimfting utirlzation ofaaJOining building sections as necessary to limit noise and electromagnetic emissions. The Retail Customer is responsIble for the costof conducting studies and measurements to project or detennine levels of emissions. Retail Customer takes Delivery Service at the secondary terminals of Company transformers or other facilities located in the vault as specified by Company. Under any other conditions, Retail Customer takes service outside the building. ftfteter All Meters used to measure the amount of Electric Power and Energy delivered by Company for use in the calculation of Delivery System Charges, whether Company or Non-Companyowned. are installed and maintained by Company. All Meter transformers andtransod(ets shaD be furnished and owned by Company for these purposes. Where Retait Customer requests the installation of aCompany Meter other than Company's standard Meter. Retail Customer pays the appropriate instaHation and monthly maintenance cost in accordance with the applicable rate schedule in Section 6.1.2 of this Tariff. Company may. at its option and at its expense, refocate any Company-owned or Non-Company Owned Meter. In case of a relocationmade necessary due to inaccessibility, hazardous location, or dangerous conditions for which RetaU or Wholesale CUstomer isresponsible, or in order to prevent a recummce of unauthorized use of Delivery Service or tampering with equipment, Retail Customer's Competitive Retailer or Wholesale Customer may be required to relocate the Metering Equipment to a location agreeable to Company. Under no circumstances is any meter installation to be moved or relocated except as authorized by Company. Standard Facility Extensions: Distribution Extension of standard facilities to permanent Retail Customers within Company's certificated area where the estimated cost to extend facifities does not exceed the standard allowances stated herein. will be provided to Retail Customers at no cost The cost of theextension is calculated using the route of the new line, as determined by Company, from Company Def.very System faCIlities, whichincludes primary, secondary, and service drop for overhead facilities or service lateral for underground facirlties, to the Point of Delivery. VVhen two or more applications for Delivery Service from the same extension are received prior to starting construction of the extension, the maximum aDowanoe is the sum of ead1 individual appIicant's standard aIowance. Retail Customer makes a one-timenon-refundable CIAC for the cost of providing an extension in excess of the stated allowances. Company makes extension of electric service to Retail Customefs electrical installation so as to minimize the cost of such extension. Extension is normally made at no cost to Retail Customer except in those instances where the requested extension of Company's facilities is not economically justified. Overhead Extensions for Small Loads Company makes extension of overhead single phase electric service without charge to permanent Retail Customers having an estimated maximum annual demand of less than 20 kW, for a distance of up to 300 feet if electric service desired by Retail Customer isof the type and character of electric service which Company provides. The distance of the extension is measured using the route of thenew line from Company distribution facilities, which includes primary. secondary and service drop to the point of delivery. When two ormore applications for electric service from the same extension are received prior to starting consbuction of the line extension. the maximum length of the 0YeJt1ead extension provided at no charge is up to the number of applicants times 300 feel Retail CUstomermakes a one time non-refundable contribution in aid of construction for the cost of providing an extension in excess of such amount based upon an estimated cost per foot for the type of facility installed. Underground Extensions for Small Loads Company makes extension of underground single phase electric service without charge to pennanent Retail Customers having an estimated maximum annual demand of less than 20 kW if electric servioe desired by Retail Customer is of the type and character of electric service which Company provides. and if the cost of the extension does not exceed an amount equivalent to 300 feet of overhead radial single phase ciraJil The cost of the extension is calculated using the route of 1he new line from Company distribution facilities, which includes primary. secondary and service lateral to the point of de1Nery. W1en two or more applications for electric service fromthe same extension are received prior to starting construction of the line extension, the extension will be provided without charge if thetotal cost of the extension does not exceed an amount equal to the number of applicants times an amount equivalent to 300 feet of overhead radial circuil Retail Customer makes a one time nOlHefundable contribution in aid of construction for 1he cost of providing anextension in excess of such amotmt based upon either an estimated cost per foot for 1he type of fadrlty installed or a specific cost study. Calculation of Conbibution in Aid of Construction ("CIAC") for All Other ExtensionsThe amount of the CIAC for Delivery System Construction Senrice is determined by the appropriate formula below. If the amountcalculated below is zero or negative. no contribution in aid of construction is required for provision of Construction Service. Allcalculations and component costs used in the determination of the conbibution maid of construction witl be provided to Retail Customer upon request. 2 Discretionary SelVice Charges Applicable: Entire Certified Service Area Effective Date: January 1 , 2004 arifffor Retail Delivery Service TXU Electric Delivery Company Sheet 2 Page 4 of 5 Revision: One Retail Customers with a Maximum kW Demand Greater Than or Equal to 20 kW Amount = Direct Cost - (Standard Allowance Factor x Maximum kW Demand) ~~~~-~~~--,~ --. _. . - Direct Cost -The current average cost of each component of Delivery System facilities necessary to provide Delivery Service to Retail Customer, determined by a computer estimate of a1l necessaryexpenditures, including, but not limited to metering, services, transformeJS, and rearrangement ofexisting Delivery System facilities. This cost includes only the cost of the above-mentioned facilities that are necessary to provide Delivery Service to the particular Retail Customer requesting service and does not indude the costs of facilities necessary to meet future load growth anticipated to develop within two (2) years, or to improve the service ref.abl1ity in the general area for the benefit ofexisting and future Retail Customers. The appropriate factor set forth below for all Retail Customers with a Maximum kW Demand greater. !h!!!~~o ~O kW, b~~1tss. Rate Class Standard Allowance Factor Standard Allowance Factor- General Service Secondary General Service Primary High V01tage $98IkW $94IkW $53IkW -~~ Maximum kW Demand -Companys estimate of Retail Customer's maximum 15-minute kW demand based on expected usage patterns and load or equipment data supplied by Retai1 Customer. 2.2.Retail Customer Requested Facility Upgrades In the case of upgrades to Delivery System facilities necessitated by RetaU Customer adding load in excess of existing Delivery System facility capacity, only the cost of the fadrlty upgrades that are attributable to the Retail Customer's request are included in calculating a CIAC. The Maximum kW Demand amounts used in the CIAC calculation found in the subsection above shall reflect only the additionalestimated kW demand directly attributable to the added load. 1 a Unused Allowance Under no circumstance shall any unused allowance be paid or credited to the Retail Customer or used to reduce the cost for installationof non-standard distribution facirlties or non-standard street lighting facilities, 6 Non-standard Facility Extensions: Distribution If Retail Customer desires Delivery System service which involves non-sfandard facifdies as described in Section 6.1.2 of thisTariff, in addition to the cost in excess of the standard allowance described in Section 6.for construction of standard facilities, if any, Retail Customer pays Company prior to Company's construction of non-standard facilities the total estimated cost of aU non-standard facilities to meet Retail Customer's request Company may terminate the provision of any Delivery Service utiflZing non-standard facilities at the end of the contrad term, or in theabsence of a contract term, on reasonable notice to Retail Customer's Competitive Retailer. 7 Temporary Delivery System Facilities: DistributionRetail Customer pays Company prior to Company's constructing temporary Delivery System facilities an amount equal to the estimated cost of installing and removing the facilities, plus the estimated costs of materials to be used which are unsalvageable after removal the installation as set forth in Section 6.1.2 of this Tariff. 8 Removal and Relocation of Company's Facilities: Distribution Company may remove or relocate Company facilities at Retail Customer's request. If removal or relocation of Company facilities isassociated with a change in Retail Customer's distribution requirements that results in additional revenue to the Company, such removal or relocation costs will be included as a direct cost in the calculation of the contribution in aid of construction. and the amount due from Retail Customer will be based on the provisions of Section 6.2.2.5, "Calculation of Contribution in Aid ofConstruction". The MaximumkW Demand amounts used in the CfAC calculation shall reflect onfy the additional kW demand directly attributing to the added revenueto the Company. In aN other cases, Retail Customer pays the total cost of removing or relocating such faciflties. NEVADA POWER COMPANY O. Box 98910 Las Vegas, NV 89151-0001 Tariff No. 1- cancels Tariff No. 1-A (withdrawn) 5th Revised CanceHing 4th ReVised PUCN Sheet No. 15E PUCN Sheet No. 15E Schedule LGS - 3 LARGE GENERAL SERVlCE- 3 APPUCABLE For aU non-Domestic Service where consumption of energy exceeds 3,500 kWh in any one month and where the demand is equal to or greater than 1,000 kW in anyone month and for which no specific schedule is provided. all service will be supplied at one Point of DeliverY and measured through one kilowatthour Meter. Not applicable to standby. resale.temporalY. shared. or mixed class of service. Not applicable to supplemental service unless the Customer is a Qualifying Facility under TiDe 18. Code of Federal Regulations. Section 292201 through 292.207. TERRITORY Entire Nevada Service Area. as specified. RA YES The charges applicable to this rate schedule are set forth in the. currently effective Statement of Rates and are incorporated herein by reference. Bundled rates can be found beginning on PUCH Sheet No.10. Distribution-only rates can be found beginning PUCH Sheet No.1 OM. MINIMUM CHARGE The minimum charge for service hereunder shaH be the Customer Charge. LATE CHARGE The Utiftty may charge a fee as set forth in Schedule Me for the late payment of a bill. SPECIAL CONOmONS UEC. The Universal Energy Charge (UEC). pursuant to NAC 702.150 through 702.450, will go to fund the Nevada fund for energy assistance and conservation. Under certain circumstances, Customers will be refunded amounts paid in excess of $25,000 per calendar quarter. The Commission wiD administer the collection of the UEC. certify exemptions. and administer refunds. Exemptions are generally kWh sold to: (Continued) Issued:~1-04 Issued By: Mary o. Simmons VICe President Effective: 04-01-04 Advice No.: 300-R(1) (T) (T) (L) (N) (N) (T) (D, (D, (T) (L) NEVADA POWER COMPANY O. Box 230 Las Vegas, NV 89151 Tariff No. 1- cancels Tariff No. 1-A (withdrawn) Issued: Ori inal Cancelling PUCN Sheet No. 83D PUCN Sheet No. 29. Rule No. ELECTRIC LINE EXTENSIONS (Continued) GENERAL INFORMATION (Continued) Ownership (Continued) If an alternate Point of Delivery is agreed upon under this subsection, the Utility and Applicant will enter into a Line Extension Agreement, prior to commencement of construction, incorporating the above conditions and requiring that all applicable tax consequences and costs resulting from the conveyance of the facilities to the Utility are borne by the Applicant and that no added cost resulting from the Applicant's decision to accept an alternate Point of Delivery will be borne by the Utility or its other Customers. (N) ( ) (D, N)ALL PROJECTS EXCEPT MASTER PLANNEOCOMM8MltlfIES:, Applicability This section applies to all projects except those that are defined as Master Planned Communities in Section C of this Rule. Substation & High Voltage Distribution Installations When the installation of a substation and/or high voltage distribution line, in the opinion of the Utility, is required principally for the purpose of providing selVice to the Applicant (Capacity to be utilized by the Applicant's project is estimated by the Utility (i) to be equal or greater than sixty percent of the nameplate capacity of the substation or (ii) equal or greater than eighty percent of the capacity of the substation to be used by all Customers served from the substation.) The Applicant shall be required to submit an advance equal to the Utility's estimated cost of such substation and/or high voltage distribution line. Where the substation and/or high voltage distribution line shall also selVe other Customers the costs shall be prorated by capacity and the Applicant shall only be required to Advance the prorated portion allocated to the Applicant., N) (Continued) 01-23-03 Effective: 01-31-03 Issued By: Mary O. Simmons Vice President Advice No.: 280-R NEVADA POWER COMPANY O. Box 230 Las Vegas, NV 89151 Tariff No. 1- cancels Tariff No. 1-A (withdrawn) Ori inal Cancelling PUCN Sheet No. 83E PUCN Sheet No. Rule No. ELECTRIC LINE EXTENSIONS (Continued) ALL PROJECTS EXCEPT MASTER PLANNED COMMUNITIES (Continued) Substation & Transmission Installations (Continued) The Applicant shall also provide a substation site mutually acceptable to the Applicant and the Utility, grading of that site to finished grade, on site and off site improvements, rights-ofway, and easements as required for the distribution and high voltage distribution lines to the substation all at no cost to the Utility where the installation of the substation and/or high voltage distribution lines are principally for the purpose of providing service to the Applicant. Upon completion of the grading subject to the satisfaction of the Utility, the substation site shall be and remain the sole property of the Utility. Allowance The Utility may apply any portion of the Allowance in advance of construction of the line extension facilities where there is a reasonable expectation that the supporting number of meters and/or demand will be initiated within the twelve- month period following the completion of construction of the line extension facilities. Where such reasonable expectation does not exist. the Utility shall not apply any portion of the Allowance not supported by anticipated meter additions and/or demand increases until such time as the meter additions and/or demand additions actually occur. No allowance shan'.be given for any additional meters and/or additional demand that occurs after the term of the Une Extension Agreement expires. (Continued) Issued:01-23-03 Effective: 01-31-03 Issued By: Mary O. Simmons VICe President Advice No.: 280- , N) , N) (N) (N) N EV ADA POWE R COMPANY O. Box 230 Las Vegas, NV 89151 T arift No. 1- cancels Tariff No. 1-A (withdrawn) Ori inal Cancelling PUCN Sheet No. 83G PUCN Sheet No. Rule No. ELECTRIC liNE EXTENSIONS (Continued) ALL PROJECTS. EXCEPT MASTER PLANNED COMMUNITIES (Continued)3. Allowance (Continued) (N) Schedules lGS-3 and lGS-WP- Secondary voltage (less than 4 kV), per kV Primary voltage (4 kV - 35 kV), per kV A High voltage distribution (greater than 35 kV) That portion of an Applicant's revenue stream (excluding O&M) designed in rates to recover the costs of the high voltage distribution investment calculated individually for each project and which does not duplicate any other allowance or refund granted to that subsequent Applicant. Schedules LGS-X and LGS- $137. $101.00v-/ None An allowance shall only be applicable to permanent structures connected to a line extension during the term of the line Extension Agreement. When the Applicant is subject to advancing the estimated cost of substation facilities in accordance with Section B.2, the allowance for that project shall be increased to include an added increment that is based on that portion of the Applicants revenue stream (excluding O&M) designed in rates to recover the costs for the those substation facilities. Where the Applicant is subject toadvancing the estimated cost of high voltage distribution facilities that will directly connect to FERC jurisdictional transmission facilities, the allowance for that project shall be increased to include an added increment that is based on that portion of the Applicanfs revenue stream (excluding O&M) designed in rates to recover the costs for those high voltage distribution facilities. This incremental allowance for high voltage distribution facilities is limited to the cost of such facilities installed in an overhead configuration. The allowance shall only be applied to offset Advances Subject to Refund except as otherwise allowed in Sections A.(N) (Continued) Issued:01-23-03 Effective: 01-31-03 Issued By: Mary O. Simmons Vice President Advice No.: 280-R