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Home My WebLink About20160225PAC Compliance Filing.pdfROCKY MOUNTAIN POUIER A DIVITilON OF BOFICORP RECEIVED 2016 FEB 25 Atl l0: 25 1407 W. North Temple, Suite 310 Salt Lake City, Utah 84116 ',',,, ',?, ,i) i.,1?*i13sroruFebruary 25,2016 VIA OWRNIGHT DELIVERY Idaho Public Utilities Commission 472West Washington Boise,lD 83702 Attn: Jean Jewell Commission Secretary Re: CASE NO. PAC-E-14-11 COMPLIANCE FILING IN THE MATTER OF THE APPLICATION OF PACIFICORP DIBIAROCKY MOUNTAIN POWER AND IDAHO POWER COMPANY FOR AN ORDER AUTHORIZING THE EXCHANGE OF CERTAI N TRANSMISSION ASSETS. Dear Ms. Jewell: Rocky Mountain Power, a division of PacifiCo{p, in compliance with Commission Order No. 33313 dated June 5, 2015, hereby respectfully submits this letter and a copy of the journal entries at closing recording the transaction and exchange of certain transmission assets between PacifiCorp and Idaho Power Company. Additionally, the Company would like to respond to Commission Order No. 33313 which stated: "The record is not as clear for the treatment of reduced expenses to PacifiCorp customers. We note thot PaciJiCorp has not previously deferued transmission costs due to the Legacy Agreements for future recovery. To further evaluate the reduced wheeling expenses associated with this transaction, we direct Paci/iCorp to establish a regulatory account deferring these reduced wheeling expenses. Proper regulatory treatment will be determined in afuture rate case when the details ore lcnown. " Ptrsuant to Order No. 30904, which authorized the establishment of the energy cost adjustment mechanism ("ECAM") effective July l, 2009, the Company began tracking FERC account 565 - Transmission of Electricity by Others, or wheeling expense, along with other variable net power cost expenses. Through the ECAM, actual expenses are compared to the base level established in the most recent general rate case with variances deferred and reviewed Idaho Public Utilities Commission February 25,2016 Page2 annually. It is the Company's belief that the ECAM satisfies the Commission's order by establishing a regulatory account to defer any changes to wheeling expenses and provides an opportunity for proper regulatory review. Unless otherwise directed the Company believes no additional accounting treatment is necessary. Please direct any informal inquiries to Ted Weston, Idatro Regulatory Affairs Manager, at (80r)220-2e63. Sincerely, )'{4fl"trt *o^^j"'{ u{\") Jeffrej K. Larsen Vice President, Regulation PACIFICORP CLOSING JOURNAL ENTRIES Closing joumal entries to exchange undivided ownership interests in equipment between PacifiCorp and Idaho Power Company to provide the parties with transmission capacity that better aligns with the current configuration ofthe parties respective transmission systems FERC # Account Description l. 102 Electric plant purchased or sold 108 Accumulated provision for depreciation of electric plant l0l Electric plant in service To classify the exchange ofthe undivided ownership inleresl in assets to ldaho Power Company from Electric plant in seruice to I,-DRC accounl 102 - Electric plant purchued or sold in accordance with l8 Cl.'R, Pan l0l, Electric l'lanl lnstrucfion 5. 2. 102 Electric plant purchased or sold l3l Cash To record cash payment to ldaho Power Company for the dffiring values resultingfrom the netting ofthe exchange prtces. 3. 102 Electric plant purchased or sold186.1 Sales ofelectric utility facilitl l3l Cash - WA real estate excise tax To record transaction costs incuned by PacrfiCorp tofacilitate the exchange ofundivided ownership interest in assels with Idaho Power Company. 4. l0l Electric plant in service ll4 Electric plant acquisition adjustment 108 Accumulated provision for depreciation of electric plant 102 Electric plant purchased or sold 7'o clear account FERC accounl 102 - Electric plant purchased or sold to lilectric plant in seruice, Electric plant acquisilion adjustment and Accumulated provisionfor depreciationfor the value of the undivided ownership interest in assets receivedfrom ldaho Power Company. 5. 409.1 Income taxes, utility operating income 236 Taxes accrued 282.1 Accumulated deferred taxes 4l I . I Provision for deferred income taxes To record current and deferred tax ofundivided ownership inlerest in assels exchanged with ldaho Power Company. 6. 282 Accumulated defened income taxes - Other property 411.2 Provision for deferred income taxes - Credit, other income and deductions To record the reversal ofthe accumulated defened income tu balance on the relinquished prope rty me t ho d' hfe differenc e s. 7. 410.2 Provision for deferred income taxes, other income and deductions 282 Accumulated deferred income taxes - Other property To establish the accumulated deferred income tu balance (non-rate base offsetling on the replacement properly bas is dffirence. Debit Credit 43.497,754 29,896,321 73,394,075 I 59,538 I 59,538 1,270,131 1,267,822 2,309 64,16r,036 1,270,131 20,503,744 44,927,423 4,892,268 4,892,268 4,892,268 4,892,268 7,087,064 7,087,064 7,087,064 7,087,064 Note: The amounts shown are based on closing values and are as ofDecember 31,2014. These amounts are subjectto atrue-up adjustment within I 80 days after the closing of the exchange. Final joumal entries will be filed after that has occurred.