19910820Reading Direct.pdf

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D/N/IS WRIGHT TREM{ffirt": :; tr"j
Lew Ormcrs
7oz'Wnsr Ioeno Srneer Surrn 7oo ' Botsr,
(zo8) 38-8zoo
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(zo8) 38-8219
August 20, 1991-,z-
Ms. Myrna Walters
Commission SecretaryIdaho Pub1ic Utilities Commission
472 W. WashingtonBoise, ID 83720
Re: Case No. IPC-E-90-20
Dear Ms. Walters:
Enclosed are original and nine copies of the Testimony of
Don Reading, Ph.D for filing in the above-referenced matter.
If you have any questions, please do not hesj_tate tocontact me.
Sincerely yours,
DAVIS WRIGHT rNE
a
Peter J. Richardson
PJR/db
Enclosures
Fex: (zo8) 168-8299
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BEFORE THE IDAIIO PUBLIC UTIIJITIES COIIII{ISSION
IN THE II.ATTER OF THE APPIJICATION
OF IDAIIO POWER COITPAIIY FOR
APPROVAIJ OF A}I INTERCONNECTION
TARIFF FOR NON UTII,ITY GENERA-
ATION-SCIIEDUI,E 72
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CASE NO. IPC-E-90-20
DTRECT PREPARED TESTIUONY OF DON READING, ph.D
ON BEHAI,F OF TIIE INDEPENDENT ENERGY
PRODUCERS OF IDAHO
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Case No. IPC-E-9O-2O
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TESTIIIOITY OT
DOll[ nmar]Me, PE.D.
On Bebalf of ttrre
IIIIDTPEITDEMT ESIIBEY Pn,ODUCI'BS OT II'AEO
Before tJre
II'AEO PI'BI.IC I'IEILXIIES GO}ItrIIS8IOI\I
Idabo Pmer Gompany
Gase lUo.IPIG-E-9O-3O
a. woIrtD You PLElasE STATE yoIIR NAME AIID ADDRESS?
A. Don ReadJag, 151I Nortb lSth Street, Boirse, Ida.ho 86702.
a. EAVE YOU PH.EPARED AII APPEIUDX TIEICE DESCRTBES
YOrrR QUAIIETCATTONS?
A. Yes. Appendix I, attached to my testimony, was prepared
for tJris purpose.
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Case No. IPC-E-90-2O READINCT2
a. EA\rE YOU PnEPARED AMXETBTT rN STIPPORT OF YOrIR
TESMMOI\TY?
A. Yes. I have an exhibit, consisting of 2 schedules, that will
serve this purpose. It was prepared under my superv'ision a.nd is
correct to the best of my knowledge.
a. WEAT ffl TEE PURPOSE OF YOITR IESTIMOIIY?
A. The firm of Ben clohnson Associates, Inc. has been re-
tained by tJre Independ.ent Enerry Producers of IdaJro @PD. \lVe
have been asked to a.naJJrze th.e charge to conSlenerators a,nd
small power producers (CSPPS) assessed by Idalro Powen Com-
pany (IPC or the Company) for the operation a,nd matntena,nce of
tnterconnection equlpment.
My testimony is orga,nized as fol}ows. First, I brief[r ex-
plain IPC's charge a,nd how it is calsulated. Next, I orplain wby
thls charge is inconsistent with iils Qemmission's prion directlves
and with tJre intent of tJre Pub1ic Utillty Reglrlatory Policy Act
GTIBPA) to eD.courage cogeneration a,ad small power producbion.
Ftna1lJr, I present my re@mmendations.
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Case No. IPC-E-9O-2O READINCT--3
a. fiIRNING TO rffi Em.ST PAST OF YOIIR TESTn\fOr\l-Y,
WOI'LD YOU DESCRIBE Tffi OPENArION A}ID MAINTENA.}TCE
(O&M) CHARGE THAT IPC ASSESSES TO COGENENATONS AIVD
SMALL PO\,IIER PRODUCEN-S?
A. Yes. IPC's proposed tariff Schedule 7? includes a moathl;r
charEle for the operation a,nd. mainten€.nce (O&M) of intercorulec-
tion equipment provided to CSPPs. The charge is equal to .?c)b of
tbe installed. cost of the equipment. AccordinS! to IPC's response to
commeo.ts offered by A.Ttr. Brown and th.e Independent Eaergg
Producers of ldalro, this charge is intended to recover "fdaJro
Power's average costs of operation a,nd maintenance of equipment
and facilities of 95 simi'lar size and tlfpe to those provided to QF's."
@, Febrtrar5r e8, I99I, p. 5.1 The Compa,nSr
e:rplained the basis for the charge as follows:
The O&M percenta€le cha,nge lncludes p$sical Eainte-
na.nce as well ag n.n allocation for tpxes, lrlgnrre-noo,
a.nd other overheads tJrat are leg[tinate costs paid by
tJre Company. tlbid.l
The cbarge appa,rent$r includes dlrect O&M €r:rpenses for
overhead,lines, various a^dnintstradve and general costs assocl-
ated wtth tJre lines (In accountg 93O, 921, 929, 925, 9e6, 950.2,.
951, and 955), a,nd an allocated share of paSrroll a,nd propertJr
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Case No. IPC-E-90-20 READINH
taxes. Tbese expenses were dlvided by IPC's investment in over.
head lines (including general plant assigped to overhead line
investment) to derive the percentage O&M charge.
Schedule I of my exhibit shows that the annual experu,es
includ.ed. in the Compargr's calculatioa are 7.862% of the oveF
head line investment. Dividing this percentage by 12 and
roundinglyields the monthlSr .7% O&M charge assessed by IPC.
The same schedule lpsq.ks the annual elq)ense down: dlrect O&M
e:q)enses are 58% of the total proposed cbarge (4.O48% of IPC's
overhead line investment), arlministrative and general e>rpenses
a*e 2796, properby taxes axe L?o/o, a,nd pa5rro[ is 5%.
a. Do you AGREE V'rfrE Tm pRoposED o&M cEAReE?
A. No. tr?om IPC's presentatlon lt ls clear tJrat tJre proposed
char$e is based upoa an avera€le embedded cost calcarlation. f con-
sider that approach a violatlon of the spirlt, lf not the letter, of
tJre Federal Energr Reglulatory Cornmieslon (FERC) nrles relatin$
to tJre appropri,ate cost ba€ls fon tnterconnestlon charges. The
EERC rtiles, which implemeat sectlons 3OI and 2IO of PURPA on
cogeneratlon and small power productlon, requJre reimbu:rsemeat
for lnterconnestloD. costs on an lncremeatal cost bas1s, not on arr
avera€le cost basis. The PUBPA obJeotlve was a,nd ls to promote
cosbeffective cogeneratlon and. smalt power produatlon; a key to
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Case No. IPC-E-9O-8O
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READINCT-5
that is charging the CSPPs only the additional interconnection
costs that tJrey cause.
T/\Ihat the Company is tqfing to do, by the way it
calcrrtrates the O&M charge, is maJre the CSPPs pay for costs tJrat
it would have inctrrred wheth.er or not tJre CSPPs were intercon-
nected. This higher O&M charge increases the cost burden placed
on CSPPs and reduces tJreir incentive to participate.
a. DoES Tm COMPAI\rrS APPROACE TBUSTnATE Tffi
II\TTEIVT OF TEE IERC RI]LES?
A. Yes, I believe so. Section 292.5O6 of tJre FERC nrles
require qualifying facilities to
pay anJr lnterconnection costs which tJre sta,te regula-
tory authoritSr ... or noueg[rlated elestric utility Eay
assess a€atnst the qualifying facllit5r on a nondlscriml-
nator17 basi,s ryith respest to otJrer ctrstomens wlth
sinilar load characteristlcs.
Citing tJre EERC's discrtrgslon of tJrese nrles coatained in
th.e Federal Re5[ster, the IPUC has interpneted this nrle as follows:
fffg p6a.nn tha,t tJre cogeAeratO3 93 glqall pgwer
producer is responslble fon tJre "net iacreased
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Case No. IPC-E-9O-20 REA-DINffi
interconnection costs" imposed on tJre utillty 'com-
pared to those costs it would have incrrrred had it gen-
erated tJre energf,r itself or pr:rcha,sed nn equivalent
a,mor:nt" from a,:oother sour€e.... Moreover, tJtese costs
include "onl;r those additiona,I interconnection expenses
incurred by the utility as a result of the purchase."
They do "not iaclude aqr portioa of tlre interronnectioa
costs for whioh the qraltfying facility has already paid
throuEh its retail rates." lorder No. 15746, p. 58;
quotes from 45 Fed.eral Register at 122I7.I
Tbis interpretatlon clearly suggests an incnemental, as op-
posed to a,n averaE|e, cost sta,trdard. for determininEl
interconnection charges, including the O&M-related porbion of
those charges.
a. woulD You ExP*ry IN GREATER DETATL TEE
DISTINCTION BETW:EIEI}I INCRIIMEIMAI .E}ID AIrIIRAC}E COBT?
A. Certaialy. Incnemental cost i,s derived from tJre economic
concept of margiaal cost. TechnicallSr, margfnal cost is the rate of
increase in total cost resultia6l from tocneased output, where out"
put is inq€ased by aa errtnemelSr snall a,mor:nt. Incremeatal cost,
the lncrease in total cost assooiated witJr a larger incnsase in
outputr-,an increment 664-nln€lful to tJre e-rlabrgirS, iS the usual
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Case No. IPC-E-9O-2O
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READINe-7
way to measure the cost of a cha,n€le (increase or decrease) in out-
put. It obviousl5r excludes fixed and fllak costs-those that don't
vary with the leve1 of output.
Average cost is an entirehr dlfferent coacept. In economlc
tems, it reflects the total cost of a given quarrtitSr of output, di-
vided by the quantitlr. Thus, rather tJran measuring on$r tJre
costs that result from a changle in output, average cost includes
fixed and sunk costs as weII.
The tr"ERC nrles and IPUC order tJrat I quoted ear[er
clear15r presume an incremental costing approach, since tJrey
focus on the increased costs of interconnection tJrat CSPPs impose
on the utility. In theory, you figrre such costs by first measurin5l
the utility's total cost assu:ningl no interconnections witJr CSPPS.
Then you meaflrre tJre utility's total cost includin€l tJre interconnec.-
tion costs. The difference irs the incremental cost from the inter. '
connectlons. The same klnd of ca1sulatlorl can d.erlve Just the
O&M-related costs of interconnection.
The Compa,ny's approach to the O&M interconnectioa
charge doesn't derive tJrls incremeatal cost; lnstead it seeuls to be
€rD. average costinSl method. As I noted earller, the CompanSr has
added in certain fixed costs that are ula^ffected by its decision to
interconnect witJr CSPPS. In particular, it has included an alloca-
tion of adm.inistrative a;rd general experues, even thougp tJrese
costs would be incr:rred in €rnJr case.
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Case No. IPC-E-9O-2O READINH
AdditionallSr, while some paSrroll taxes may be apprppri-
ately included-iJ the ComFan;r incurs additional labor costs for
the operation and maintena,nce of interconnection facilities-IPC
bas included paSrroJl taxes aot just for labor costs of the direct op
eration and maintenance of overhead lines but also for ad:m,inis-
trative and general erq)eru,es. I think the A&Grelated paJrroll
ta,:<es should be exeluded from tbe charge lnposed on tJre CSPPS,
for the s€Lme reason that A&G expenses should not be recoverred
throu€h thls charge.
a. Is Ir YOIIR OPIMON TEAT Tffi EXCESSM O&M
CEARGES IMPOSED BY IPC ON CSPPg FT,OW TO TlrF COMPAI\IY
IN Tffi FORM OF EXCESSIqE PROETTS?
A. GeneralJSr speaking, ao. The costs recovered. by IPC
through tJre interconnestlon charges are included as part of tJre
Compa,nSr's overall revenue requirement which forms tJre basls
for all lts rates. To the ortent tJre Compaqr is cbarglng!CSPPS too
much for interconnectlons, tJre excess lylll shpty reduoe tJre
a,mount of revenues th.at must be collected throu€h otb.er r.ates
a.nd charges. Of course, if a new CSPP is assessed excessive O&M
charEfes betweea rate cases, the Compa,qlr'g gtockh.olders lyill
temporari$r beneflt.
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Case No. IPC-E-9O-20
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A. HAVE YOU DEVELOPED A RECOTWT\,rEUIDED O&M-RE-
I"ATED IMTERCONNECTION CEARGE CONSIIITEIUT WITE A.TI
INCREMIII TAI C OSTING APPROACE?
A. Yes. I\IitJr the Compa,ny's calculatioru as a startin!!point, I
have developed a recornmended O&M charge that is more consis-
tent with the spirit of the FERC nrles regarding interconnection
cost necovery. Schedute 2 of my exhibit shows tJre calsulation of
my recommend.ed. charge. I have included aII of the direct O&M ex-
penses associated with overhead lines, as did IPC. Eowever, url-
like the Compa,:ry, I have excluded sdminis[pa,five a,ad general
experues, which are essentiall5r fixed. overhead. costs una.ffected
by the interconnection of CSPPs. I have a'lso excluded tJre A&CF' .
related. paSrroll taxes.
Ia order to be coasistent with my recourmeaded exclusion
of administrative and general e:qlenses in the numerator, I have
excluded from the denominator (investment in overhead llnes)
the allocated portion of general plant costs that IPC included in its
calsulatioa.
My recommended approach results tn a.n annual O&M ex-
pense'to-investanent ratio of 6.9E,496. Dividing by 18 yields tJre
montblSr O&M charge that I recomrnend: O.5%.
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Case No. IPC-E-90-2O
a. DoES TErfl ooMPLETE YOIIR DIRECT TESrIMOTITr?
A. Yes, it does.
READING-IO
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READING - I.I
APPEIIIDIE I
QUAI,TrIGATTOTVS
Prcserrt Ocanpatioa
a. wEAlr rs YoIIR PRESET\m OCGITPATTON?
A. I am a consultingl economJst with Ben efohnson Associates,
IDc., a firm of economic and a,nalSrtic consultants speciali-ing in
the area of public utility regulation.
Educationaf Backgf ound.
a. WEAT Ifl YOI]R EDUCATTONAT BACKGROITIUD?
A. I lpaduated frpm Utah gtate Universit5r in 1968 vrltJr a
Baphelor of Science degg€e ln economlce. I eaxned tJre Master of
Science deglee !o economics at th.e University of Orc€loD in 1964.
EinaJly, I recelved a Ph.D. in economics from Utah gtato Unlver.
sitSr In 1972. The title of m3r doctoral dlssefiatlon rv&s New DeaI
EXpendltures tn the 48 States. 19681959.
BElf .rOE!I8O!r ASSOCIAfIE ' nr0.
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a. rrAvE You HscEnrED AI\rr AoaDEMIC EONORS OR
AWAXDS?
A. Yes. I r.m a member of Omicron Delta Epsiloa, tJre na-
tional economics honorary, and was awarded a National Science
Foundation Fellowship in 1967.
Glients
a. wEAlr TYPES OF CT,TEMTS EMpLOy YOIIR F"IRM?
A. Much of or:r work is perform.ed on behalf of public a€len-
cles at everTr level of governm.ent involved tn utiliff reglulation.
These agencies include state regrtratory ssmmisglosg, public coun-
sel,s, attorrreys general, and local governnents, aurong otJrers. We
are nleo employed. by varlous prlvate orEa,Dizatlons alrd flms,
both reelr:lated and unregtrlated.The diversit5r of our clientele ls
ilustratod below.
ReAr1ator:r Comnissions
Alaba.ma hrblic Serwice Commlsslon - Public Staff for Utility
Consumer hotectioa
Alaska Rrblic Utilities Comm ission
Arizona Corporatioa Commission
BEE{ A'OENSOIT ASSOCIATET], ETC.
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Arkansas public Serwice gsmmissiofr
Dlstrict of Columbia Public Serwice Commissioa
Idaho Ptrblic Utilities Qemmisglea
IdaJro State Ta:< Commission
Kansas State Corporation Commisslon
Maine Rrblic Utilities Cornrnission
Missouri hrblic Serry'lce Qqmmisstsa
North Carolirra Utilities Ssrnmisglen - Rrblic Staff
OklaJroma Corporatioa Qemmisgiea
Ontario Ministry of Culture and Communications
Texas Rrblic Utilities Commission
VirElinia State Corporation Comrnission
Wasbintltoa Utillties and fi'a.nsportatioa Qernmisgisa
West Virginia Rrb1ic Serrrice Comm.ission - Division of
Consumer Advocate
Wisconsin Prr.blic Serrrice Comrn isgion
Public Counsels
Arizona Residential Utility Consumers Office
Colorado Office of Consr:ner Serwices
Connectictrt Consum.er Counsel
District of Columbla Office of People's Counsel
tr''Iorida hrblic Counsel
Georgia Consr:m.ers' Utilit;r Counsel
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BEII CIOENBOII AASOCIATES, IIIC.
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READING - I-4
I[inois Smal] Business Utiltiy Advocate Office
Indiana Office of the UtiUW Consumer Counselor
Marylaad Office of Peop1e's Counsel
Minnesota Office of Consumer Serwices
Missouri Public Counsel
New Ilampshire Consumer Counsel
Ohio Consumer Counsel
Pennsylva,aia Office of Consumer Advocate
IIt€h Department of Business Reglulation - Comm.ittee of
Consr:m.er Serwices
Attorneys General
Arkansas Attorney General
Florida Attorney General - A:rtitnrst Divisioa
Idatro Attorney General
Kentuc$r Attomey Cieneral
Michi5lan AttorneST General
Minnesota Attorney General
Nevad"a Attor:aey Cleneral's Office of Advocate for Customerg of
Public Utilities
South Carolina Attoraey Cisneral
VirE[nia Attoroey Cieneral
TYashington Attorney General
BEN rrOENlgOlf ASSOGIATE8' IIIC.
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Local Governments
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City of Austin, TIK
CW of Corpus Chrirsti, TJ(
City of Dallas, TX
CiW of EI Paso, TX
City of Forb Wortb., IIK
City of Galveston, fX
CW of llouston, TX
CiW of Lubbock, TX
CW of Norfolk, VA
City of Phoenix, AZ
City of Richmond, VA
CW of Sa.n A-ntonio, TX
City of Suffo1k, VA
City of fncson, AZ
County of Augfusta, VA
Counhr of Eenrico, VA
County of York, VA
Town of Ash]and, VA
Town of Blacksburg, VA
Town of Pecos City, IX
BEII JOE![8O]' ASSOqtArEg, DIC.
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Other Government AAencies
Canada - Department of Communications
Ilnit€d States Department of clustice - A.ntitnrst Division
State of tr'lorida - Department of General Serwices
Provincial Governm.ents of Canada
ReAr1ated Firms
America1l LDC, Inc.
E. Ritter Telephone Compa,ny
tr"Iorida Association of Conceru.ed Telephoae Compa,nies, Inc.
Eol5rwell, Inc.
Louisiana/Mississippl Resellers Associatlon
Madisoa County Telephoae Compan;r
Mountaln View Telephoae CompanSr
Nevada, Power Compa.nSr
Network I, Inc.
North Am.erica,n Telephone ComFany
North Carolina I,ong Distaoce Associatlon
Pan-A1berta Gas, Ltd.
Peninsula Communications, Inc.
RDM Telephone Systems
South Carolina Iong Distarxce Associiation
Sta,nton Telephone
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Teleconnect Company
f3a,nsa.m gpiCall, Inc.
Yelcot Telephone Compau;r, ID-c.
Other Frivate OrAarrizations
Arizona Center for Law in the Public Interest
Casco Bank and Trrrst
Citizens' Utiliff Board of Tffiscoasin
Colorado EnerSgr Advocacy Office
East Maine Medical Center
Georgia Legal Serrrices Progl,a,m
Earris Corporation
Interstate Secr:rities Corporation
.I.R. Simplot Compa,nSr
Merrill Tnrst CompanSr
Pen3ay Memorial Eospital
PriorErperience
a. BEFOAT BECOMTNG A CONSTII,TAIIT, WEERE WEnE YOIr
PROFESSIONAI,LY EMPI,oED, A}ID IN WEAT CAPACITIES?
A. tr?om 1981 to 1986 I was Eoonomlst and Direstor of
Policy a,nd Administration fo tJre Idaho hrbllc Utilities
BElr .TOEIIIION ASEOOIAIEI,' BIC.
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Commission. My duties at the IPUC included, in addition to my tes-
timony, the preparatlon of speclal reports in the €rreas of forecast,
ing, dema,nd studies, aud ecoaomic anallrsis. As Staff Director I
was changed with overseeing tJre personnel and budget functions,
and with representingf tJre Commission before the state leglsla-
ture, at th.e governor's office, before tJre utilit;f commissions of
otJrer states and before such federal and regflona,l entlties as tJre
Bonneville Power Adm.jnistration, tJre Northwest Powen Plaoain€
Council, and the Public Power Cor:ncil.
Before that time I taught economics at Midd1e Tennesgee
State Universit5r (Assistant Frofessor, 1968-70), IdaJro State UDi-
versity (Assista,nt a,nd Associate Professor, 197HO), a,nd th.e
University of Eawaii at Eilo (Associate Professor, 198H1). Sub-
jects taught included economic theory a,nd hlstory, qua,ntitative
arr.a,Ilrsis, econometrics, statistics, Iabor economics, fina.ncial
institutions, a.nd. interna,tional economics.
In addition, between 1970 and 1986 I prepared reports
aad exller[ testimony on loss of earningp in a number of legal ac-
tions respectlnS! wroa€firl iqiuqf and wrongful deatJr. Althou€h
ma,ny of tlrese cases were settled vrithout trial, I $ave orperf
testim.ony In court on numerous occasions.
BEII JOENEO}I AASO6XATIiE', II[C.
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a. EA\'|E YOU TESTIflED PRE\TTOUSLY AS A.tI EXPERT
WTTNESS IN TEE ASEA OF PI'BLIC U[II.,UY REGIII,ATIOI\P
A. Yes. I have provided or am preparing e:rperb testimony on
19 occasions in proceedinSls before regfulatory s6mmisgi6ns in
Alaska, California, Colorado, District of Columbi,a, Idalro, Nevada,
Texas, UtaJr, anrd WashinElton, and before the Interstate
Commerrs Qsmmission. In addltion, I have senred as a hearin€l
examiner in IdaJro.
My testimony in these proceedingls dealt with electric
power plan:ring a,nd forecastin8, power supply models, avoided
costs, dema,nd elasticity models, regional ecoaomic condltions
affecting public utilities, and cost of serrrice.
a. Do You EArrE AN-y PRoFESSTONAT PTTBTJCATIONS?
A. Yes. I have autJrorcd or co-autJrored morr tha^D. 15 books
and a,rtlcles, includingi the follor,vinS[:
"Post'PUHPA vie'ws,' ProceedinEs of the NARUC Bienntal
Regulatory Coaference, September I 982.
An' Input-Ortput Analvsis of tJre Impact from Proposed MininA irtr
the Area (with R. Davies), Rrblic Pollcy Research Center,
IdaJro State Universit5r, Febnrar5r 1980.
BEII .TOEMDIf ASSIOGIAIBS' D[C.
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"The Paradox of Voting,"@ 1O (Aprit 1979): 59-4I
"Index of Prices Received by Idalro Fa,rmers," IdaJro Economlc
Indicator.s, cIulJr 1978 (aJso continuin€ senies published moothly).
"Income Distributioa in IdaJro Countles," IdaJro Business and
Economics Review.
tr\rture'Gram. 'C' Series: Cument Trends and Forecasts. 'C' Series
(rrith R. Foster, et aI.), Government Research Institute of IdaJro
State University and the Southeast IdaJro Cor:a.cil of Govenrments,
Pocatello, Idaho, .Iune L977.
An Emptnical Analvsls of Predlctors of Income Dlstribution Effests
of Water Ouality Controls (witb eI. Keith, et a1.), UtaJr Water Re
search Laboratory, Ift€h State UniversitSr, LoEla,n, Ut€b,
September 1976.
Redonal Grorrvth and Flscal Impa,gt ln Southeast IdEho (lvlth V.
Eieh et a1.), Governm.eat Research Institute of ldaJro State UDi-
versrty a.nd tb.e SoutJreast IdaJro Council of Gloveruments,
Pocatello, Idalro, ela,auarlr I 976.
Phosphate aqd Southeast: A Socio Economic Analysis (with cI.
EJre et a1.), Governm.ent Research Instittrte of ldaJro Stato
BEII JOENEON ASEIOSIAITES, INC.
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University a,nd the Southeast Idaho Council of Govenoments,
Pocatello, Idalro, August I975.
Estimatin€ Cleneral nrnd Revenues of tJre State of IdaJro (with S.
Ghazanfar a,nd D. Eolley), Center fon BusiD.ess a,nd. Economic
Research, Boise State Universit3r, clune 1975.
"Pocatello/Bannock Count5r Ecouomlo Impact through 1978" (lvith'
R. R. clohnson), funded by tJre CW of Pocatello (A Re€[ona,l Input
Output Model), December 1975.
"A Note on the Distribution of Federal E:penditures: An Inten
state Comparison, I 955-1 959 a.nd I 96 t-l 965, " A-m.erica.n
Economist I 8, no. 2 (tr.all L974): I?S-I28
"New Deal Activity a,nd the States, 196FI999," Journa,I of
Economic Eistor:f 55 (Decemben I 975): 793-81 0.
"Iftah's Steel Industry" (with Reid R. Durbschi a,nd Ba,rtell
Jensen), IItah State UniversltSr Resea,roh Paper., 1966.
BEII qIOE!I8O!I AASOCIAItsS' INC.
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EXIIIBfT
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Case No. IPC-E-90-20
Exhibit No._(DR-l)
Schedule 1
Idaho Power Company
Components of Company Proposed O&M Charge
Annual
Percentage
Gharge
Percsnt
ol
Descriptlon Total
Direct 0&M Expenses
Administrative & General
Payroll Taxes
Property Taxes
4.548%
2.133%
0.211Y"
0.97OYo
57.9Yo
27.1o/o
2.71o
12.3o/"
Total 7.862%100.0%
Source: ldaho Power Company, Response to lEPl First Production Request, No. 1.
-av-------------!r
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Case No. IPC-E-90-20
Exhibit No-(0R-1)
Schedule 2
RecommendedO&M
0escilption
Annual
Percenlage Charge
Direct 0&M Expenses
Direct Payroll Taxes
Property Taxes
Tohl
Monthly 0&M Charge: 0.5%
4.8221o
.142
.970
5.934%
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WOBI(PAPTiRS
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idaho Fo*er Conpany
Corponents of 0&ll Charges
IIP\I I I\{]NCHAREE.TOl
Prepared by hd 818/91, Checked by d\-S\q-
Scurce:Idaho Porer Corpany,i€sPNse{c JT PJ F,<tr(.o&.--{-+. fuuorrrio.l
I}escri ption -{aoun t
Annua I
Percen tage
Charge
Per rent
cf
Tota I
Direct 0&it Expenses
Adlinistrrtive & Eeneral
Payrol I Iaxes
Property Taxes
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2Bt',0?B/
4. 548I
1.. I J.\.t
0.211I
0.97$i
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27 .t7. /
t tt./
12,31/
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CERTITICATE OF SERVICE
I HEREBY CERTIFY that I have this 20th day of August,1991-, served the foregoing DIRECT PREPARED TESTIMONY OF DON
READING, Ph.D ON BEHALF OF THE INDEPENDENT ENERGY PRODUCERS OF
IDAHO, Case No. IPC-E-90-2O, upon all parties of record in thisproceeding by the method indicated be1ow, and addressed to thefollowing:
o
Scott Woodbury
Deputy Attorney General
Idaho Pub1ic Utilities Commission
472 W. WashingtonBoise, ID 83720
Larry D. Ripley, Esq.
Legal DepartmentIdaho Power CompanyP.O. Box 70Boise, ID 837O7-OO7O
Barton L. K1ine, Esq.Legal DepartmentIdaho Power CompanyP.O. Box 70Boise, fD 837O7-OO7O
Gary A. DahlkeR. Blair StrongPaine, Hamblen, Coffin, Brooke & Mi11er
1200 Washington Trust Financial Center
Spokane, WA 99204
Tom Dukich
Rates & Tariff Administration
Washington Water Power Company
P.O. Box 3727
Spokane, WA 99220
John M. ErikssonUtah Power & Liqht Company
L4O7 North West TempleSaIt Lake City, UT 84L40-0001-
W. F. MerrillMerrill & MerrillP.O. Box 991Pocatello, ID 83201-0091
Hand DeliverU.S. MailOverni-ght MailTelecopy (Fax)
-L Hand DeliverU.S. MailOvernight MailTelecopy (Fax)
Hand Deliver
-
u.s. MailOvernight MailTelecopy (Fax)
Hand Deliver
f U.S. MailOvernight Mail
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Hand Deliver
U. S. Mail-Overnight MailTelecopy (Fax)
Hand DeliverU.S. MaiIOvernight MailTelecopy (Fax)
Hand DeliverU.S. MailOvernight MaiLTelecopy (Fax)
L
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CERTIFfCATE OF SERVICE, Page l-
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James FeII, Esq.Stoe1, Rives, Bo1ey, Jones & GraY
9OO SW Fifth Ave., Suite 2300
Port1and, OR 972O4
Gregory N. DuvallUtah Power & Light Company
424 Public Service Building
92O SW Sixth Ave.Portland, OR 972O4
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Hand DeliverU.S. MaiIovernight MailTelecopy (Fax)
Hand DeliverU.S. Mailovernight MaiITelecopy (Fax)
A.W. BrownA.W. Brown Compan
3416 Via Lido, SuNewport Beach, CA
y, Inc.ite F
92663 -
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Hand DeliverU.S. MailOvernight MaiITelecopy (Fax)
Hand DeliverU.S. MailOvernight MaiITelecopy (Fax)
C. Tom Arkoosh
Roden & Arkoosh
P. O. Box 2L1,OBoise, ID 83701-211-0
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By
on
CERTIFICATE OF SERVICE, Page 2