20161122PAC Compliance Filing.pdf

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November 22, 2016
VL4 OVERNIGHT DELIVERY
Idaho Public Utilities Commission
472 West Washington
Boise, ID 83702
Attn: Jean Jewell
Commission Secretary
11ECElVED
tOlfi NOV 22 AM 10: 21
i i"1 UBLI C . rl ·_ COMM ISSION
Re: CASE NO. PAC-E-14-11 COMPLIANCE FILING
1407 W. North Temple, Suite 310
Salt Lake City, Utah 84116
IN THE MATTER OF THE APPLICATION OF PACIFICORP D/B/A ROCKY
MOUNTAIN POWER AND IDAHO POWER COMPANY FOR AN ORDER
AUTHORIZING THE EXCHANGE OF CERTAIN TRANSMISSION ASSETS.
Dear Ms. Jewell:
Rocky Mountain Power, a division of PacifiCorp, in compliance with Commission Order
No. 33313, which stated: "We also require PacifiCorp to provide annual reporting of the deferral
account for reduced wheeling expenses related to the transaction. " hereby respectfully submits
this letter reporting the change in transmission wheeling expense paid to Idaho Power Company.
The asset exchange was finalized October 30, 2015, with operational control effective
November 4, 2015. For purposes of this report the Company compared the transmission wheeling
expense of$20.8 million paid to Idaho Power for the twelve months prior to the close to the $13.4
million paid during the twelve months following the asset exchange. As shown Rocky Mountain
Power's wheeling expense was reduced by $7.4 million during the first year following the
transmission asset exchange.
In compliance to the Commission's order to "establish a regulatory account deferring
these reduced wheeling expenses" the Company notes that the energy cost adjustment mechanism
("ECAM") tracks changes to FERC account 565 -Transmission of Electricity by Others, or
wheeling expense, along with other variable net power cost expenses from the amount included in
Idaho Public Utilities Commission
November 22, 2016
Page2
customers rates. Through the ECAM, actual expenses are compared to the base level established
in the most recent general rate case with variances deferred and reviewed annually. It is the
Company's opinion that the ECAM satisfies the Commission's order to: (1) establish a regulatory
account to defer any changes to wheeling expenses; (2) provide an opportunity for proper
regulatory review; and (3) flow the financial benefits of the exchange back to customers.
The Company respectfully submits this letter reporting a reduction to transmission
wheeling expenses paid to Idaho Power of approximately $7.4 million total Company or $445,000
allocated to Idaho. Please direct any informal inquiries to Ted Weston, Idaho Regulatory Affairs
Manager, at [phone].
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Jeffrey K. Larsen
Vice President, Regulation