20171130PAC Compliance Filing.pdf

Y ROCKY MOUNTAIN
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November 30,2017
RECEIVED
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1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116
VA OVERNIGHT DELIYERY
Idaho Public Utilities Commission
472 West Washington
Boise,lD 83702
Attn: Diane Hanian
Commission Secretary
Re CASE NO. PAC-8.14-II COMPLIAIICE FILING
IN THE MATTER OF TITE APPLICATION OF PACIFICORP DTBIA ROCKY
MOUNTAIN POWER AIID IDAHO POWER COMPAIIY FOR AI\ ORDER
AUTHORIZING THE EXCHAI\IGE OF CERTAI N TRANSMISSION ASSETS.
Dear Ms. Hanian:
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 defewal
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 [daho Power for the twelve months prior to the close to $14.0
million paid during the twelve months ending October 31,2017. Rocky Mountain Power's
wheeling expense increased by $0.6 million during this period compared to the $13.4 million paid
during the last reporting period.
In compliance to the Commission's order to "establish a regulatory occount 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 30,2017
Page2
customers rates. Through the ECAM, actual expenses are compared to the base level established
in the most recent general rate case with variances defened 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 an increase to transmission
wheeling expenses paid to Idaho Power of approximately $0.6 million for the twelve month period
ending October 31,2017 compared to the prior twelve months. Please direct any informal inquiries
to Ted Weston, Idaho Regulatory Affairs Manager, at [phone].
Sincerely,
"*DJ,Steward
Vice sident,