20020227Press Release.pdf

Commissioner Hansen:Page 1 of 2
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Case No. PAC-O2-
IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release / Feb. 27, 2002
Contact: Gene Fadness [phone]
PacifiCorp-Utah Power proposing significant changes to its rate schedules
BOISE - PacifiCorp-Utah Power is proposing significant changes in its rate schedules to customers in a
case pending before the Idaho Public Utilities Commission.
The company s proposed rate adjustments may not be noticed by residential and small-farm customers
because of the sizeable Bonneville Power Administration credits that became effective earlier this month.
In an application filed earlier this year, PacifiCorp is seeking to recover, over the next two years, $38
million in excess power costs the company incurred during the last two years. Also included in the application is a
rate mitigation adjustment that seeks to ensure that no customer classes will see rate increases during the two-year
cost recovery period.
The application also proposes to adjust rates by customer class - such as residential, irrigation and
commercial- to bring them within 5 percent of the cost of serving the class. Part of that redesign would mean a
change in status for large special-contract customers, like Monsanto, based in Soda Springs. Under the redesign
the allocation of costs to serve large special-contract customers would remain in the company s Idaho jurisdiction
and not be spread throughout PacifiCorp s entire six-state system. PacifiCorp maintains that the redesign will not
result in a revenue increase for itself.
The commission has identified the issues in PacifiCorp s filing and set preliminary hearing schedules.
The parties in the case, which include commission staff, PacifiCorp, Monsanto and the Idaho Irrigation
Pumpers Association, are involved in settlement negotiations. The commission set a deadline of April 17 for the
parties to submit a settlement agreement. If an agreement is submitted, an evidentiary hearing will be
If at a location to be announced later.
LI'l~lc.Ifthe parties are not successful in resolving all the issues or the commission does not accept t
=a.r.tt1tj.settlement, hearings will be scheduled on July 10 and 11 at locations to be announced later. ~~ SThese are some of the items the commission identified as "at issue" in this case:
m CUsSThe cost of service study and adjustments that may result.
A- The revenue ramifications for the company.
http://www.puc.state.id.us/intemet/press/O226- P ACsurcharge.htm 3/5/2002
Commissioner Hansen:Page 2 of 2
The rate mitigation adjustment.
Whether the company s attempted recovery of excess power costs incurred during 2000 through
2002, violates a condition of the 1999 merger between ScottishPower and PacifiCorp. That condition
ordered by the commission, said there would be rate moratorium in place until Jan. 1 , 2002.
Whether it was appropriate for PacifiCorp to interrupt power rather than buy high-cost power to meet
its load.
The presence of interruptible load and the company s treatment of it.
The treatment of irrigators that have been non-firm customers (or interruptible) and the company
proposal to make them non-interruptible or firm customers.
A review of the company s sales contracts in 2000 and 2001.
The timing of the loss of the company s Hunter (Utah) coal generation plant and its causes.
The treatment of contract customers who s cost of service would be allocated only to Idaho and not
throughout PacifiCorp s system.
http://www.puc.state.id.us/intemet/press/0226- P ACsurcharge.htm 3/5/2002