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HomeMy WebLinkAbout20040715Taylor Supplemental.pdfBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE INVESTIGATION OF INTER-JURISDICTIONAL ISSUES AFFECTING P ACIFICORP ) DBA UTAH POWER & LIGHT CO. ) CASE NO. P AC-O2- . SUPPLEMENTAL DIRECT TESTIMONY OF DAVID L. T AYLOR JULY 2004 Are you the same David L. Taylor who offered Direct Testimony in this proceeding? Yes. Purpose What is the purpose of your Supplemental Direct Testimony in these proceedings? My Supplemental Testimony discusses and supports changes to the PacifiCorp Inter-Jurisdictional Cost Allocation Protocol ("Protocol") contained in Exhibit No. 19. As in my Direct Testimony, when I capitalize terms in my Supplemental Testimony, those terms have the same meaning as provided for in Appendix A to the Revised Protocol contained in Exhibit No. 19. Specifically, my Supplemental Testimony focuses on the following key areas: Proposed changes to classification of SCCTs Proposed changes to the allocation of Regional Resources Proposed allocation of Existing QF Contracts, Proposed elimination of Protocol language related to the allocation of transmission costs, Clarification and detail on the treatment of Special Contracts, and Estimates of the revised Protocol's impact on the revenue requirements of each State. Taylor, Sup - Pacifi Corp Cost Allocation Appendices Have you prepared Exhibits that identify how all cost components of the revenue requirement are allocated among States under the Revised Protocol? Yes. Exhibit No. 21 , which is Appendix B of the Revised Protocol, identifies the allocation factor applied to each component of the revenue requirement calculation. Exhibit No. 22, which is Appendix C of the Revised Protocol, gives a detailed explanation and the algebraic formula for each allocation factor. Exhibit No. 23, which is Appendix D of the Revised Protocol, provides a description and numerical examples of the proposed treatment of Special Contracts. I will discuss this in detail later in my testimony. Exhibit No. 24, which is Appendix E of the Revised Protocol, provides the methodology for calculating the Annual Embedded Cost that I also discuss later in my testimony. Classification of Simple-Cycle Combustion Turbine Fixed Costs In your direct testimony, PacifiCorp proposed to classify the fixed costs of SCCTs differently from the remainder of the Company s Resources. Has the Company reconsidered this proposal? Yes. The Company now proposes to classify the Fixed Costs of SCCTs on the same basis as all other Resources. Although SCCTs are generally designed and operated to run during peak-load periods, rather than to produce sustained, low cost energy, we have been persuaded that there are valid reasons to continue past allocation practices that classify the Fixed Costs of all Resources as 75 percent Demand-Related and 25 percent Energy-Related. Taylor, Sup - 2 Pacifi Corp What are those reasons? First, as discussed in my Direct Testimony, a wide range of demand and energy classification methods could be supported on a technical basis. Given the diversity of PacifiCorp s Resource portfolio, it has been argued that certain Resources should be classified more heavily to Demand-Related and that certain Resources should be classified more heavily to Energy-Related. The classification of all Resources as 75 percent Demand-Related and 25 percent Energy-Related appears to fairly recognize this balance. To single out one type of Resource - SCCTs - for special treatment could upset the balance and lead to unnecessary complexity and ambiguity for classification of all Resources. Second, the proposed change recognizes that the operation of Resources on a year-to-year basis varies due to load and market factors and may be different from the expected operation when the Resources were acquired. Finally, the Company agrees with several parties that, absent a compelling reason to change, minimizing changes from current allocation practices will aid in implementation of the Protocol and limit cost shifts among States. Does the Company propose to eliminate the Seasonal Resource designation for allocation of SCCTs and include them as part of System Resources? No. SCCTs will continue to be treated as Seasonal Resources with their costs allocated using seasonal allocation factors as described in my Direct Testimony. Taylor, Sup - 3 PacifiCorp Cost Allocation for Regional Resources What changes is the Company proposing to the allocation of Regional Resources? As discussed in Ms. Kelly s testimony, the Company proposes to eliminate the coal endowment and to eliminate the ability for Oregon to opt out of the First Major New Coal Resource. In addition, the Company proposes a change to the allocation of costs related to Hydro-Electric Resources, Mid-Columbia Contracts and Existing QF Contracts. Hydro- Electric Resources and Mid -Columbia Contracts Please explain how the costs of Hydro-Electric Resources are assigned and allocated under the Revised Protocol. In the Revised Protocol, the existing and future investment and operating costs of Hydro-Electric Resources are, in the first instance, allocated on a system-wide basis. Then, the total normalized costs of H ydro- Electric Resources are compared against the normalized costs of the remaining generation portfolio on a $/MWH basis a~d an adjustment which reflects the cost difference is applied. This adjustment is referred to as "The Owned-Hydro Embedded Cost Differential Adjustment" . The Owned-Hydro Embedded Cost Differential Adjustment is calculated as the Annual Embedded Costs - Hydro-Electric Resources, less the Annual Embedded Costs - All Other, multiplied by the normalized MWh's of output from the Hydro-Electric Resources used to set rates. The adjustment is then allocated to former Pacific Power jurisdictions using the DGP factor and the Taylor, Sup - 4 PacifiCorp reciprocal amount (All Other less Hydro) will be allocated to all States using the SO factor. Currently the adjustment is negative (the Hydro-Electric Resource costs are less expensive than all other Resources), so it is a net credit to the former Pacific Power jurisdictions and a cost to the other jurisdictions. In the future, the adjustment is forecasted to become positive (the Hydro-Electric Resource costs are more expensive than all other Resources). At that time the adjustment would be a net cost to the former Pacific Power jurisdictions and a credit to the other jurisdictions. Mid-Columbia Contracts and Existing QF Contracts Please explain how the costs of Mid-Columbia Contracts are assigned and allocated under the Revised Protocol. Similar to Hydro-Electric Resources, the costs of Mid-Columbia Contracts are, in the first instance, allocated on a system-wide basis. Then, the total normalized costs of Mid-Columbia Contracts are compared against normalized costs of the remaining generation portfolio on a $/MWH basis and an adjustment which reflects the cost difference is applied. This adjustment is referred to as the "Mid- Columbia Contracts Cost Differential Adjustment" The Mid-Columbia Contracts Cost Differential Adjustment is calculated as the Annual Mid-Columbia Contract Costs, less the Annual Embedded Costs- All Other, multiplied by the normalized MWh's of output from the Mid-Columbia Contracts. The adjustment is then allocated to all States using the Mid-Columbia (MC) factor and the reciprocal amount (All Other less Mid-C) is allocated to all States using the SG factor. Taylor, Sup - 5 PacifiCorp The calculation of the MC factor is shown in Appendix F of the Revised Protocol and described in detail in Mr. Duvall's Supplemental Direct Testimony. Please describe how the costs of Existing QF Contracts are assigned and allocated under the Revised Protocol. Existing QF Contracts are treated similarly to the Hydro Resources and the Mid- Columbia Contracts. Like Hydro-Electric Resources, the costs of Mid-Columbia Contracts are, in the first instance, allocated on a system-wide basis. But then unlike the Hydro Electric Resource and Mid-Columbia Contract costs, which are compared to other generation costs at an aggregate level, the Existing QF cost difference is calculated separately for each State. The Existing QF Contract costs in each State are compared against normalized costs of the remaining generation portfolio on a $/MWH basis and an adjustment which reflects the cost difference is applied. This adjustment is referred to as "Existing QF Contracts Cost Differential Adjustment" The Existing QF Contracts Cost Differential Adjustment is calculated as the Annual Existing QF Contracts Costs for a specific State, less the Annual Embedded Costs - All Other, multiplied by the normalized MWh's of output from that State s Existing QF Contracts. This adjustment is situs assigned to that State. The sum of this adjustment for all States is calculated and an adjustment for the reciprocal amounts (All Other less Total System QF) is allocated to all States using the SG factor. How are the Company s Annual Embedded Costs calculated? Annual Embedded Costs are calculated for Hydro-Electric Resources, Mid- Taylor, Sup - 6 PacifiCorp Columbia Contracts, Existing QF Contracts, and all other Resources. They are based on fully normalized test period costs captured in the FERC accounts identified in Appendix E to the Revised Protocol, Exhibit No. 24. As shown on lines 1 through 11 of Appendix E, the Annual Embedded Costs - Hydro-Electric Resources include the identified hydro-related operation and maintenance, depreciation, and amortization expenses plus the identified hydro- related rate base items times the pre-tax authorized (or requested) return on rate base, $70,969,571 in this example. This amount is divided by the annual hydro MWh, from the GRID run used in the test period net power cost calculation, 4 128 973 MWh, to arrive at the Annual Embedded Costs - Hydro- Electric Resources of $17.19 per MWh. The Annual Costs, MWh, and corresponding cost per MWh are shown for Mid-Columbia Contracts and total Existing QF Contracts on lines 12 and 13, respecti vel y. The Annual Embedded Costs - All Other are shown on lines 14 through 44. This calculation is similar to the costs for Hydro-Electric Resources described above and results in Annual Embedded Costs - All Other of $32.00 per MWh. This is the cost to which Annual Embedded Costs - Hydro-Electric, Annual Mid- Columbia Contract Costs, and Annual Existing QF Costs are compared. Did the Company evaluate alternatives to the Embedded Cost Differential as a form of Hydro Endowment? Yes. The following three alternatives to the Embedded Cost Differential were proposed and evaluated in the course of the MSP: Taylor, Sup - 7 PacifiCorp Combining the Hydro Endowment with a Coal Endowment, Using or modifying the fuel adjustment mechanism, and Reinstating a load decrement approach. I will discuss the reasons for the rejection of these approaches in favor of the embedded cost differential" Why did the Company abandon its proposal to combine the Hydro Endowment with a Coal Endowment, as described in your direct testimony? It did not enjoy support from MSP participants. Please describe the existing "fuel adjustment mechanism The fuel adjustment mechanism that is part of the Modified Accord allocation methodology: Calculates the difference (on a $/MWH basis) between the 5-year average of the O&M Expenses of the Company s Hydro-Electric Resources and the O&M Expenses of the Company s Thermal Resources; Multiplies the $/MWH difference by the MWHs of generation from Hydro-Electric Resources, and then allocates the difference as a credit to the former Pacific Power jurisdictions and as a charge to all jurisdictions; and Allocates the costs of post -1989 capital investments across the system based on each State s proportional load in a test period. A corresponding calculation is also calculated for the former Utah Power Hydro- Electric Resources. Taylor, Sup - 8 Pacifi Corp Please discuss the drawbacks of the existing fuel adjustment mechanism. One primary drawback is that the mechanism compares only the operating costs of thermal Resources and the operating costs of Hydro-Electric Resources and therefore does not account for the Fixed Costs of either type of Resource. Another problem is that it does not equitably match the distribution of the benefits of Hydro-Electric Resources with the responsibility for the expected substantial increase in capital costs for the relicensing and other capital investments associated with Hydro-Electric Resources. That is to say, under Modified Accord, all States bear a proportionate share of post Utah/Pacific merger Hydro- Electric Resource capital costs, but only former Pacific Power States receive the fuel cost advantage of Hydro-Electric Resources. Did parties consider options that would address these inequities? Yes. Parties evaluated a short-term fuel adjustment mechanism that phased out as the revenue requirement of relicensing costs exceeded the fuel benefits. However, this approach did not eliminate the inequities. This mechanism incorporated a mismatch of costs in that it involved a comparison of both the Fixed Costs and Variable Costs of Hydro-Electric Resources against only the Variable Costs of thermal Resources. Again, some States received credits for fuel benefits for the next several years but all States bore the risk of the costs of relicensing. Additionally, this approach was rejected by some parties because it was not permanent. Please describe the "load decrement approach" Under the load decrement approach, the costs of H ydro- Electric Resources are Taylor, Sup - 9 PacifiCorp assigned to and allocated among the former Pacific Power jurisdictions. At the same time, the loads of the former Pacific Power jurisdictions are reduced by the output of the Hydro-Electric Resources, prior to the development of allocation factors for the remaining System Resources. This reduces the Pacific Power jurisdictions' allocated share of the cost of the remaining System Resources. This type of approach was utilized under the Accord Method from 1993 to 1997. Why isn t the Company proposing to reinstate the load decrement approach? Our studies have revealed drawbacks to this mechanism. Most significantly, the load growth studies revealed that the load decrement approach distorts the allocation of costs associated with load growth to the States with decremented loads. Not only are States with decremented loads allocated a smaller share of existing remaining System Resources, they are also allocated a smaller share of the cost of new System Resources. This is in conflict with the principle that States should pay for the costs of their load growth to the maximum extent possible. Transmission Costs How has the Company revised the Protocol in respect to the classification and allocation of transmission costs? In its initial proposal, PacifiCorp included an allocation provision that would have applied should Commissions approve its participation in a Regional Transmission Organization ("RTO"). The proposal was simply to allocate charges from the RTO among the States based upon the same billing determinants relied upon by the FERC in setting the RTO's rates. Several parties expressed concern that this Taylor, Sup - 10 Pacifi Corp proposal was premature given the evolving regional RTO discussions and requested that the provision be eliminated. The Company has complied with those requests and removed that provision. Special Contracts Has the Company modified its proposal regarding the treatment of Special Contracts? No. However Appendix D, Exhibit No. 23, has been added to the Protocol for greater clarity. Appendix D identifies two general types of Special Contracts: 1) Special Contracts without Customer Ancillary Service Contract attributes and 2) Special Contracts with Customer Ancillary Service Contract attributes. For both types of Special Contracts , the cost of serving contract customer loads, and their State-approved retail service revenues, will be included in the local State revenue requirement. However, the regulatory treatment of the two types of Special Contracts is different. Let me explain the difference. For allocation purposes Special Contracts without Customer Ancillary Service Contract attributes are viewed as one transaction and the system benefits and load reductions accruing from customer interruptions are treated very similarly to DSM. Like DSM, the host jurisdiction benefits from the reduction in system costs through smaller allocation of total system costs. Specifically, loads of Special Contract customers will be included in all Load-Based Dynamic Allocation Factors. When interruptions of a Special Contract customer s service occur, the reduction in load will be reflected in the host jurisdiction s Load-Based Dynamic Allocation Factors. Actual revenues received from a Special Contract Taylor, Sup - Pacifi Corp customer will be assigned to the State where the Special Contract customer is located. A numeric example of the regulatory treatment of Special Contracts without Ancillary Service Contract attributed is shown in Appendix D, Table For allocation purposes Special Contracts with Customer Ancillary Service Contract attributes are viewed as two transactions. PacifiCorp sells the customer electricity at the retail service rate and then buys the electricity back during the interruption period at the ancillary service contract rate. Loads associated with the retail service to the Special Contract customers will be included in all Load-Based Dynamic Allocation Factors. The Customer Ancillary Service Contract attributes of the Special Contract are viewed, not as a reduction in load, but rather as the acquisition of Resources to meet Company load. Therefore, when interruptions of a Special Contract customer s service occur, the host jurisdiction s Load-Based Dynamic Allocation Factors and the retail service revenue are calculated as though the interruption did not occur. Revenues received from Special Contract customer, before any discounts for Customer Ancillary Service Contract attributes of the Special Contract, will be assigned to the State where the Special Contract customer is located. Because discounts from tariff prices provided for in Special Contracts or payments to retail customers, that recognize the Customer Ancillary Service Contract attributes of the Contract are considered as payments for Resource acquisitions, they will be allocated among States on the same basis as System Resources. A numeric example of the regulatory treatment of Special Contracts with Customer Ancillary Service Contract attributes is shown in Appendix D, Table 2. Taylor, Sup - 12 PacifiCorp When a buy-through option is provided with economic curtailment, the load, costs and revenue associated with a customer buying through economic curtailment will be excluded from the calculation of State revenue requirements. The cost associated with the buy- through will be removed from the calculation of net power costs, the Special Contract customer load associated with the buy- through will be not be included in the calculation of Load-Based Dynamic Allocation Factors, and the revenue associated with the buy- through will not be included in State revenues. Revenue Requirement Impacts Have you prepared an exhibit showing the impact of the Revised Protocol on revenue requirements? Yes. Exhibit No. 25 presents estimates of impacts on each State s revenue requirement. Estimated revenue requirements for California, Oregon, Washington, and Wyoming are compared to the Modified Accord methodology. Estimated revenue requirements for Idaho and Utah are compared to the Rolled- methodology. A positive percent indicates the State s revenue requirement for a given year under the MSP Solution is higher and a negative percent indicates the revenue requirement under the MSP Solution is lower. The year-by-year revenue requirement impacts are shown for the period 2005 thorough 2018 as well as the Net Present Value of the difference in revenue requirements over the 14-year period. For each State, the percent change in revenue requirement associated with the effect of moving from Modified Accord to Rolled-In (if applicable), the Hydro Endowment (both Company Owned and Mid-C components), Existing QF Taylor, Sup - 13 Pacifi Corp Contracts and Seasonal Resources is shown first followed by the impact of the full MSP Solution. What are the important analytical assumptions underlying these calculations? They include projections of Hydro-Electric Resource relicensing costs, expected new Resources as reflected in the Company s 2003 IRP, clean air investments and a carbon tax commencing in 2008. What factors are not reflected in the calculations? The calculations do not include the potential State-by-State revenue requirement impacts of New QF Contracts, Special Contracts and Portfolio Resources. What do you conclude from Exhibit No. 25? I conclude that the revenue requirement impacts are within an acceptable range. While the Revised Protocol produces somewhat lower revenue requirements for Oregon, Washington, and Wyoming in the early years, the trend reverses and those States see larger revenue requirements in the later years. The higher Revised Protocol revenue requirements seen by Utah and Idaho in the early years are offset by lower revenue requirements in the later years. Does this conclude your Supplemental Direct Testimony? Yes. Taylor, Sup - 14 Pacifi Corp ~:;, Case No. P AC-O2- Exhibit No. 21 Witness: David L. Taylor BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ACIFICORP Exhibit AccompanYing Supplemental Direct Testimony of David L. Taylor Appendix B - Allocation Factor Applied to each Component of Revenue Requirement July 2004 PacifiCorp Exhibit No. 21 Page lof21 Protocol Appendix B .Case No. ~AC-O2- ess: DavId L. TaylorAllocation Factor Applied to each Component of Revenue Requlremen FERC ACCT Sales to Ultimate Customers440 Residential Sales DESCRIPTION ALLOCATION FACTOR Direct assigned - Jurisdiction 442 Commercial & Industrial Sales Direct assigned - Jurisdiction 444 Public Street & Highway Lighting Direct assigned - Jurisdiction 445 Other Sales to Public Authority Direct assigned. Jurisdiction 448 Interdepartmental Direct assigned - Jurisdiction 447 Sales for Resale Direct assigned - Jurisdiction Non-Firm Firm 449 Provision for Rate Refund Direct assigned - Jurisdiction Other Electric Operating Revenues450 Forfeited Discounts & Interest Direct assigned - Jurisdiction 451 Misc Electric Revenue Direct assigned - Jurisdiction Other - Common 454 Rent of Electric Property Direct assigned - Jurisdiction Common PacifiCorp Exhibit No. 21 Page 2 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT DESCRIPTION AllOCATION FACTOR 456 Other Electric Revenue Direct assigned - Jurisdiction Wheeling Non-firm, Other Common Wheeling - Firm, Other Miscellaneous Revenues 41160 Gain on Sale of Utility Plant - CR Direct assigned - Jurisdiction Production, Transmission General Office 41170 loss on Sale of Utility Plant Direct assigned - Jurisdiction Production, Transmission General Office 4118 Gain from Emission Allowances S02 Emission Allowance sales 41181 Gain from Disposition of NOX Credits NOX Emission Allowance sales 421 (Gain) floss on Sale of Utility Plant Direct assigned - Jurisdiction Production, Transmission General Office Miscellaneous Expenses4311 Interest on Customer Deposits Utah Customer Service Deposits PacifiCorp Exhibit No. 21 Page 3 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT Steam Power Generation DESCRIPTION ALLOCATION FACTOR 500, 502, 504-514 Operation Supervision & Engineering Remaining Steam Plants Peaking Plants Cholla SSGCT SSGCH 501 Fuel Related Remaining steam plants Peaking Plants Chona SSECT SSECH 503 Steam From Other Sources Steam Royalties Nuclear Power Generation 517 - 532 Nuclear Power O&M Nuclear Plants Hydraulic Power Generation 535 - 545 Hydro O&M Pacific Hydro East Hydro Other Power Generation 546, 548-554 Operation Super & Engineering Other Production Plant 547 Fuel Other Fuel Expense PacifiCorp Exhibit No. 21 Page 4 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT Other Power Supply 555 556 - 557 DESCRIPTION Purchased Power Direct assigned - Jurisdiction Firm Non-firm 1 00 MW Hydro Extension Peaking Contracts System Control & Load Dispatch Other Expenses Embedded Cost Differential Endowments Company Owned Hydro Embedded Cost Differential (Hydro less All Other) Company Owned Hydro Embedded Cost Differential (All Other less Hydro) Mid-Columbia Contract Embedded Cost Differential (Mid C less All Other) Mid-Columbia Contract Embedded Cost Differential (All Other less Mid C) Existing OF Contracts Embedded Cost Differential (OF less- All Other) Existing OF Contracts Embedded Cost Differential (All Other less OF) TRANSMISSION EXPENSE 560-564, 566-573 Transmission O&M 565 Transmission Plant Transmission of Electricity by Others Firm Wheeling Non-Firm Wheeling DISTRIBUTION EXPENSE580 - 598 Distribution O&M Direct assigned - Jurisdiction Other Distribution CUSTOMER ACCOUNTS EXPENSE901 - 905 Customer Accounts O&M Direct assigned - Jurisdiction Total System Customer Related CUSTOMER SERVICE EXPENSE907 - 910 Customer Service O&M Direct assigned - Jurisdiction Total System Customer Related SALES EXPENSE 911-916 Sales Expense O&M Direct assigned - Jurisdiction Total System Customer Related ALLOCATION FACTOR SSGC DGP SNPD PacifiCorp Exhibit No. 21 Page 5 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-E-O2- Witness: David L. Taylor FERC ACCT DESCRIPTION ALLOCATION FACTOR ADMINISTRATIVE & GEN EXPENSE920-935 Administrative & General Expense Direct assigned - Jurisdiction Customer Related General FERC Regulatory Expense DEPRECIATION EXPENSE403SP Steam Depreciation Remaining Steam Plants Peaking Plants Cholla SSGCT SSGCH 403NP Nuclear Depreciation Nuclear Plant 403HP Hydro Depreciation Pacific Hydro East Hydro 4030P Other Production Depreciation Other Production Plant 403TP Transmission Depreciation Transmission Plant 403 Distribution Depreciation Direct assigned - Jurisdiction Land & Land Rights Structures Station Equipment Poles & Towers OH Conductors UG Conduit UG Conductor Line Trans Services Meters Inst Cust Prem Leased Property Street Lighting PacifiCorp Exhibit No. 21 Page 6 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT DESCRIPTION ALLOCATION FACTOR 403GP General Depreciation Distribution Remaining Steam Plants Peaking Plants Cholla Customer Related General SO SSGCT SSGCH Pacific Hydro East Hydro Transmission 403MP Mining Depreciation Remaining Mining Plant AMORTIZATION EXPENSE404GP Amort of L T Plant - Capital Lease Gen Direct assigned - Jurisdiction General Customer Related 404SP Amort of L T Plant - Cap Lease Steam Steam Production Plant 4041P Amort of L T Plant - Intangible Plant Distribution Production, Transmission General Mining Plant Customer Related 404MP Amort of L T Plant - Mining Plant Mining Plant 404HP Amortization of Other Electric Plant Pacific Hydro East Hydro 405 Amortization of Other Electric Plant Direct assigned - Jurisdiction PacifiCorp Exhibit No. 21 Page 7 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-E-O2- Witness: David L. Taylor FERC ACCT DESCRIPTION ALLOCATION FACTOR 406 Amortization of Plant Acquisition Adj Direct assigned - Jurisdiction Production Plant 407 Amort of Prop Losses, Unrec Plant, etc Direct assigned - Jurisdiction Production, Transmission Trojan TROJP Taxes Other Than Income 408 Taxes Other Than Income Direct assigned - Jurisdiction Property General Payroll Taxes Misc Energy Misc Production GPS DEFERRED ITC 41140 Deferred Investment Tax Credit - Fed ITC DGU 41141 Deferred Investment Tax Credit - Idaho ITC DGU Interest Expense 427 Interest on Long-Term Debt Direct assigned - Jurisdiction Interest Expense SNP 428 Amortization of Debt Disc & Exp Interest Expense SNP 429 Amortization of Premium on Debt Interest Expense SNP 431 Other Interest Expense Interest Expense SNP 432 AFUDC - Borrowed AFUDC SNP PacifiCorp Exhibit No. 21 Page 8 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-E-O2- Witness: David L. Taylor FERC ACCT DESCRIPTION ALLOCATION FACTOR Interest & Dividends 419 Interest & Dividends Interest & Dividends SNP DEFERRED INCOME TAXES41010 Deferred Income Tax - Federal- Direct assigned - Jurisdiction Electric Plant in Service Pacific Hydro Production, Transmission Customer Related DITEXP GPS SNP TROJP SNPD General Property Tax related Miscellaneous Trojan Distribution Mining Plant 41011 Deferred Income Tax - State- Direct assigned - Jurisdiction Electric Plant in Service Pacific Hydro Production, Transmission Customer Related DITEXP GPS SNP TROJP SNPD General Property Tax related Miscellaneous Trojan Distribution Mining Plant 41110 Deferred Income Tax . Federal- Direct assigned - Jurisdiction Electric Plant in Service Pacific Hydro Production, Transmission Customer Related General Property Tax related Miscellaneous DITEXP GPS SNP TROJP SNPD Trojan Distribution Mining Plant PacifiCorp Exhibit No. 21 Page 9 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-E-O2- Witness: David L. Taylor FERC ACCT DESCRIPTION ALLOCATION FACTOR 41111 Deferred Income Tax - State- Direct assigned - Jurisdiction Electric Plant in Service Pacific Hydro Production, Transmission Customer Related DITEXP GPS SNP TROJP SNPD General Property Tax related Miscellaneous Trojan Distribution Mining Plant SCHEDULE - M ADDITIONSSCHMAF Additions - Flow Through Direct assigned - Jurisdiction SCHMAP Additions - Pennanent Mining related General SCHMAT Additions - Temporary Direct assigned - Jurisdiction Contributions in aid of construction Miscellaneous Depreciation CIAC SNP TROJP GPS SCHMDEXP Trojan Pacific Hydro Mining Plant Production, Transmission Property Tax General PacifiCorp Exhibit No. 21 Page 10 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT SCHEDULE - M DEDUCTIONSSCHMDF Deductions - Flow Through Direct assigned - Jurisdiction Production, Transmission Pacific Hydro DESCRIPTION ALLOCATION FACTOR SCHMDP Deductions - Permanent Direct assigned - Jurisdiction Mining Related Miscellaneous General SNP SCHMDT Deductions - Temporary Direct assigned - Jurisdiction Bad Debt Miscellaneous Pacific Hydro Mining related Production, Transmission BADDEBT SNP GPS TAXDEPR SNPD Property Tax General Depreciation Distribution State Income Taxes 40911 State Income Taxes Income Before Taxes IBT 40910 40910 FIT True-up Wyoming Wind Tax Credit Steam Production Plant 310 - 316 Remaining Steam Plants Peaking Plants Cholla SSGCT SSGCH Nuclear Production Plant 320-325 Nuclear Plant PacifiCorp Exhibit No. 21 Page 11 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-E-O2- Witness: David L. Taylor FERC ACCT Hydraulic Plant 330-336 DESCRIPTION ALLOCATION FACTOR Pacific Hydro East Hydro Other Production Plant 340-346 Other Production Plant TRANSMISSION PLANT 350-359 Transmission Plant DISTRIBUTION PLANT 360-373 Direct assigned - Jurisdiction PacifiCorp Exhibit No. 21 Page 120f21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT GENERAL PLANT 389 - 398 DESCRIPTION ALLOCATION FACTOR Distribution Remaining Steam Plants Peaking Plants Cholla SSGCT SSGCH Pacific Hydro East Hydro Transmission Customer Related General SO 399 Coal Mine Remaining Mining Plant 399L WIDCO Capital Lease WIDCO Capital Lease 1011390 General Capital Leases Direct assigned. Jurisdiction General Unclassified Gen Plant - Acct 300 Distribution Customer Related General SSGCT SSGCH Remaining Steam Plants Peaking Plants Cholla Pacific Hydro East Hydro Transmission PacifiCorp Exhibit No. 21 Page 13 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT INTANGIBLE PLANT 301 DESCRIPTION ALLOCATION FACTOR Organization Direct assigned - Jurisdiction 302 Franchise & Consent Direct assigned,- Jurisdiction Production, Transmission 303 Miscellaneous Intangible Plant Distribution Remaining Steam Plants Peaking Plants Cholla Customer Related General SSGCT SSGCH Pacific Hydro East Hydro Transmission 303 Less Non-Utility Plant Direct assigned - Jurisdiction PacifiCorp Exhibit No. 21 Page 14 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT Rate Base Additions 105 114 115 120 124 182W 186W 151 152 25316 25317 25319 DESCRIPTION ALLOCATION FACTOR Plant Held For Future Use Direct assigned - Jurisdiction Production, Transmission Mining Plant Electric Plant Acquisition Adjustments Direct assigned - Jurisdiction Production Plant Accum Provision for Asset Acquisition Adjustments Direct assigned - Jurisdiction Production Plant Nuclear Fuel Nuclear Fuel Weatherization Direct assigned - Jurisdiction General Weatherization Direct assigned - Jurisdiction Weatherization Direct assigned - Jurisdiction Fuel Stock Steam Production Plant Fuel Stock - Undistributed Steam Production Plant DG&T Working Capital Deposit Mining Plant DG&T Working Capital Deposit Mining Plant Provo Working Capital Deposit Mining Plant PacifiCorp Exhibit No. 21 Page 15 of 21 Allocation Factor Applied to each Component of Revenue RequiremenfaseNo. PAC-O2- Witness: David L. Taylor FERC ACCT ALLOCATION FACTORDESCRIPTION 154 Materials and Supplies Direct assigned - Jurisdiction Production, Transmission Mining General SNPPS SNPPH SNPD Production - Common Hydro Distribution 163 Stores Expense Undistributed General 25318 Provo Working Capital Deposit Provo Working Capital Deposit SNPPS 165 Prepayments Direct assigned - Jurisdiction Property Tax Production, Transmission Mining General GPS 182M Misc Regulatory Assets Direct assigned - Jurisdiction Production, Transmission Cholla Transaction Costs Mining General SSGCH 186M Misc Deferred Debits Direct assigned - Jurisdiction Production, Transmission General Mining Production - Common SNPPS PacifiCorp Exhibit No. 21 Page 16 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT Working Capital CWC DESCRIPTION ALLOCATION FACTOR Cash Working Capital Direct assigned - Jurisdiction OWC 131 135 143 232 232 253 25330 Other Working Capital Cash Working Funds Other Accounts Receivable Accounts Payable Accounts Payable Deferred Hedge Other Deferred Credits - Misc SNP Miscellaneous Rate Base 18221 Unrec Plant & Reg Study Costs Direct assigned - Jurisdiction 18222 Nuclear Plant - Trojan Trojan Plant Trojan Plant TROJP TROJD 141 Impact Housing - Notes Receivable Employee Loans - Hunter Plant PacifiCorp Exhibit No. 21 Page 17 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT Rate Base Deductions 235 2281 2282 2283 22841 22842 252 25399 190 281 DESCRIPTION ALLOCATION FACTOR Customer Service Deposits Direct assigned - Jurisdiction Prov for Property Insurance Prov for Injuries & Damages Prov for Pensions and Benefits Accum Misc Oper Prov.Black Lung Mining Accum Misc Oper Prov-Trojan Trojan Plant TROJD Customer Advances for Construction Direct assigned - Jurisdiction Production, Transmission Customer Related Other Deferred Credits Direct assigned - Jurisdiction Production, Transmission Mining Accumulated Deferred Income Taxes Direct assigned - Jurisdiction Bad Debt BADDEBT 8NP TROJP Pacific Hydro Production, Transmission Customer Related General Miscellaneous Trojan Accumulated Deferred Income Taxes Production, Transmission PacifiCorp Exhibit No. 21 Page 18 of 21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT ALLOCATION FACTORDESCRIPTION 282 Accumulated Deferred Income Taxes Direct assigned - Jurisdiction Depreciation Hydro Pacific Production, Transmission DITBAL SNP TROJP Customer Related General Miscellaneous Trojan 283 Accumulated Deferred Income Taxes Direct assigned - Jurisdiction Depreciation Hydro Pacific DITBAL SNP TROJP Production, Transmission Customer Related General Miscellaneous Trojan 255 Accumulated Investment Tax Credit Direct assigned - Jurisdiction Investment Tax Credits ITC84 (TC85 ITC86 ITC88 ITC89 ITC90 DGU Investment Tax Credits Investment Tax Credits Investment Tax Credits Investment Tax Credits Investment Tax Credits Investment Tax Credits PacifiCorp Exhibit No. 21 Page 19 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-O2- Witness: David L. Taylor FERC ACCT PRODUCTION PLANT ACCUM DEPRECIATION108SP Steam Prod Plant Accumulated Depr Remaining Steam Plants Peaking Plants Chona DESCRIPTION ALLOCATION FACTOR SSGCT SSGCH 108NP Nuclear Prod Plant Accumulated Depr Nuclear Plant 108HP Hydraulic Prod Plant Accum Depr Pacific Hydro East Hydro 1080P Other Production Plant - Accum Depr Other Production Plant TRANS PLANT ACCUM DEPR108TP Transmission Plant Accumulated Depr Transmission Plant DISTRIBUTION PLANT ACCUM DEPR 108360 - 108373 Distribution Plant Accumulated Depr Direct assigned - Jurisdiction 108DOO Unclassified Dist Plant - Acct 300 Direct assigned - Jurisdiction 108DS Unclassified Dist Sub Plant - Acct 300 Direct assigned - Jurisdiction 108DP Unclassified Dist Sub Plant - Acct 300 Direct assigned - Jurisdiction PacifiCorp Exhibit No. 21 Page 20 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-02- Witness: David L. Taylor FERC ACCT GENERAL PLANT ACCUM DEPR108GP General Plant Accumulated Depr Distribution Remaining Steam Plants Peaking Plants Cholla DESCRIPTION ALLOCATION FACTOR Customer Related General SO SSGCT SSGCH Pacific Hydro East Hydro Transmission 108MP Mining Plant Accumulated Depr. Mining Plant 108MP Less Centralia Situs Depreciation Direct assigned - Jurisdiction 1081390 Accum Depr - Capital Lease General 1081399 Accum Depr. Capital Lease Direct assigned - Jurisdiction PacifiCorp Exhibit No. 21 Page 21 of21 Allocation Factor Applied to each Component of Revenue Requiremenfase No. PAC-02- Witness: David L. Taylor FERC ACCT ACCUM PROVISION FOR AMORTIZATION111 SP Accum Prov for Amort-Steam Remaining Steam Plants Peaking Plants Cholla DESCRIPTION ALLOCATION FACTOR SSGCT SSGCH 111GP Accum Prov for Amort-General Distribution Remaining Steam Plants Peaking Plants Cholla Pacific Hydro East Hydro SSGCT SSGCH Transmission Customer Related General SO 111HP Accum Prov for Amort-Hydro Pacific Hydro East Hydro 1111P Accum Prov for Amort-Intangible Plant Distribution Pacific Hydro Production, Transmission General Mining Customer Related 1111P Less Non-Utility Plant Direct assigned - Jurisdiction 111399 Accum Prov for Amort-Mining Mining Plant Case No. PAC-02- Exhibit No. 22 Witness: David L. Taylor BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ACIFICORP Exhibit Accompanying Supplemental Direct Testimony of David L. Taylor Appendix C - Allocation Factor - Algebraic Definitions July 2004 PacifiCorp Exhibit No. 22 Page 1 of 18 Docket No. P AC-E-O2- Witness: David L. Taylor rIJrIJ = ~\ ~ ,.... '-" ...~ ~ a = = = ....~ ~ 8 =l()0 .u ~ ~ ~ .- 0 = .... ~ U ~ 0 ~ ~ ~ = ~~ ~ Al l o c a t i o n F a c t o r s Pa c i f i C o r p s e r v e s e i g h t j u r i s d i c t i o n s . Ju r i s d i c t i o n s a r e r e p r e s e n t e d b y t h e i n d e x i = C a l i f o r n i a , I d a h o , O r e g o n , U t a h , W a s h i n g t o n , E a s t e r n Wy o m i n g , W e s t e r n W y o m i n g , & F E R C . Th e f o l l o w i n g a s s u m p t i o n s a r e m a d e i n t h e f a c t o r d e f i n i t i o n s : It i s a s s u m e d t h a t t h e 1 2 C P 0 = 1 t o 1 2 ) m e t h o d i s u s e d i n d e f i n i n g t h e S y s t e m C a p a c i t y . It i s a s s u m e d t h a t t w e l v e m o n t h s 0 = 1 t o 1 2 ) m e t h o d i s u s e d i n d e f i n i n g t h e S y s t e m E n e r g y . In d e f i n i n g t h e S y s t e m G e n e r a t i o n F a c t o r , t h e w e i g h t i n g o f 7 5 % S y s t e m Ca p a c i t y , 2 5 % S y s t e m E n e r g y i s a s s u m e d t o c o n t i n u e . Wh i l e i t i s a g r e e d t h a t t h e p e a k l o a d s & i n p u t e n e r g y s h o u l d b e t e m p e r a t u r e a d j u s t e d , n o d e c i s i o n h a s b e e n m a d e u p o n t h e m e t h o d o l o g y t o d o t h e s e ad j u s t m e n t s . Sy s t e m C a p ac i t y F a c t o r 'L T A R j j= 1 SC z = LL T A R j i= 1 j= 1 wh e r e : SC i TA P i J Sy s t e m C a p a c i t y F a c t o r f o r ju r i s d i c t i o n i . Te l l l p e r a t u r e A d j u s t e d P e a k L o a d o f j u r i s d i c t i o n i i n mo n t h j a t t h e t i m e o f th e S y s t e m P e a k . ~ ! ; ' m . " -. ~ ~ ~ If ~ C T 5 i ~ - ~ . n .. Z Z c f o? ? .. . . " t" " Q ; p . m - -I "ii ~ N N if ~ Sy s t e m E n e r t t V F a c t o r LT A E i SE i = /= 1 LL T A E j i= 1 j= 1 wh e r e : SE i AE i j Sy s t e m E n e r g y F a c t o r f o r ju r i s d i c t i o n i . Te m p e r a t u r e A d j u s t e d I n p u t E n e r g y o f j u r i s d i c t i o n i i n mo n t h j . ~v s t e m G e n e r a t i o n F a c t o r SG i 75 * SC i + . 2 5 SE i wh e r e : SG i SC i SE i Sy s t e m G e n e r a t i o n F a c t o r f o r ju r i s d i c t i o n i . Sy s t e m C a p a c i t y f o r j u r i s d i c t i o n i . Sy s t e m E n e r g y f o r j u r i s d i c t i o n i . ~~ ~ ~ !l ~ & S i '" ~ '" - .. z z o? ? -t! '" . " :;. ) . (j . " rm ~ ;; I S \I J -. : I 0 0" \ I J . . . . .. - Se a s o n a l S y s t e m G e n e r a t i o n C o m b u s t i o n Tu r b i n e ( S S G C T ) 12 WM O j c t TA P i j L WM O j c t TA E i j C" C " "" " j= 1 j= 1 "" " .J . . + L L WM O j c t TA P i j L WM O j c t TA E i j ;= 1 j= 1 ;= \ j= 1 wh e r e : SS G C T i Se a s o n a l S y s t e m G e n e r a t i o n C o m b u s t i o n T u r b i n e Fa c t o r f o r j u r i s d i c t i o n i . WM O j C T Ej c t ct = \ 12 LL Ej c t j= 1 c t = 1 We i g h t e d m o n t h l y e n e r g y g e n e r a t i o n o f c o m b u s t i o n t u r b i n e wh e r e : Ej c t Mo n t h l y E n e r g y g e n e r a t i o n o f c o m b u s t i o n t u r b i n e c t i n m o n t h j . Nu m b e r o f c o m b u s t i o n t u r b i n e s TA P i j Te m p e r a t u r e A d j u s t e d P e a k L o a d o f j u r i s d i c t i o n i i n mo n t h j a t t h e t i m e o f th e S y s t e m P e a k . AE i j Te m p e r a t u r e A d j u s t e d I n p u t E n e r g y o f j u r i s d i c t i o n i i n mo n t h j . :E 1 ; 1 t ' I 1 " 0 -. ~ ~ ~ . e ~ 6 ' ~ a ~ ~ . .. z z 0 - o? ? III " 0 I V ~. ) - - I V Q. ( ) " 0 r- . I I I . t ' I 1 ... . j III I V -. : : I 0 0' I J J . . . .. - Se a s o n a l S y s t e m E n e r t , V C o m b u s t i o n Tu r b i n e ( S S E C T ) WM O j c t TA E i j SS E C T i = / = L L WM O j c t TA E i j i= 1 j= 1 wh e r e : SS E C T i Se a s o n a l S y s t e m E n e r g y C o m b u s t i o n T u r b i n e Fa c t o r f o r j u r i s d i c t i o n i . WM O j C T Ej c t ct = 1 12 LL Ej c t j= 1 c t = 1 We i g h t e d m o n t h l y e n e r g y g e n e r a t i o n o f c o m b u s t i o n t u r b i n e wh e r e : Ej c t Mo n t h l y E n e r g y g e n e r a t i o n o f c o m b u s t i o n t u r b i n e c t i n m o n t h j . Nu m b e r o f c o m b u s t i o n t u r b i n e s AE i j Te m p e r a t u r e A d j u s t e d I n p u t E n e r g y o f j u r i s d i c t i o n i i n mo n t h j . ~C J t ' I 1 ' " EP ~ e : D . " I f c r : : l l II : . . ~ . (" ) .. z Z O o~ ~ "" ' N :S . ~ N ~ ( " J .., r- I . . . t ' I 1 -I b " '0 ( I 0 ~ ~ Se a s o n a l S y s t e m G e n e r a t i o n P u r c h a s e s ( S S G P l SS G P i = ( LfV M O j S P TA P i j j= = 1 L L fV M O j s p AP i j i= = 1 j = = 1 75 + ( fV M O j s p AE i j j= = 1 L L fV M O j s p AE i j i= = 1 j= = 1 )* . wh e r e : SS G P i - S e a s o n a l Sy s t e m G e n e r a t i o n P u r c h a s e s F a c t o r f o r ju r i s d i c t i o n i . WM O j S P Ej s p sp = = 1 12 L L Ej s p j= = 1 sp = = 1 We i g h t e d m o n t h l y e n e r g y f r o m s e a s o n a l p u r c h a s e s wh e r e : Ej s p Mo n t h l y E n e r g y f r o m s e a s o n a l p u r c h a s e s s p i n m o n t h j . Nu m b e r o f s e a s o n a l p u r c h a s e s TA P i j Te m p e r a t u r e A d j u s t e d P e a k L o a d o f j u r i s d i c t i o n i i n mo n t h j a t th e t i m e o f t h e S y s t e m P e a k . AE i j Te m p e r a t u r e A d j u s t e d I n p u t E n e r g y o f j u r i s d i c t i o n i i n mo n t h j . ~g : n T 1 . " :O : ~ P ! n ~ & 5 i !: : . . . ~ . ( ' ) .. z Z O o? ? ~. " I V ;s . ~ I V Co ( ' ) . " t" " I ~ . r n Q Q -I I n SO l ~ I O" W .. . , .. . - Se a s o n a l S y s t e m G e n e r a t i o n C h o n a ( S S G C H ) SS G C H i = ( L W M O j c h TA P i j j= 1 LL W M O j C h TA P i j i= 1 j = 1 75 + ( L W M O j c h AE i j j= 1 L L WM O j c h AE i j i= 1 j = 1 )* . wh e r e : SS G C H i - S e a s o n a l Sy s t e m G e n e r a t i o n C h o n a F a c t o r f o r ju r i s d i c t i o n i . WM O j C H Ejc h Ej r a p s Ej d a p s Ej c h Ej r a p s Ej d a p s j= 1 We i g h t e d m o n t h l y e n e r g y g e n e r a t i o n o f C h o n a p l u s e n e r g y r e c e i v e d f r o m A P S l e s s e n e r g y d e l i v e r e d t o A P S wh e r e : Ejc h Ejr a p s Ejd a p s Mo n t h l y E n e r g y g e n e r a t i o n o f C h o l l a p l a n t i n m o n t h j . Mo n t h l y E n e r g y r e c e i v e d f r o m A P S i n mo n t h j . Mo n t h l y E n e r g y d e l i v e r e d t o A P S i n m o n t h j . TA P i j Te m p e r a t u r e A d j u s t e d P e a k L o a d o f j u r i s d i c t i o n i i n m o n t h j a t t h e t i m e of t h e S y s t e m P e a k . AE i j Te m p e r a t u r e A d j u s t e d E n e r g y O u t p u t o f j u r i s d i c t i o n i i n mo n t h j . ~I ; ; n n ~ -. ~ ~ ~ Ii i r O ' S i :: : - ~ . (') .. z z o o? ? '" ~ N ;S . ~ c: : . . ( ' ) t" ' " I ' " . t ' r J ... . , I '" S - . J o. c : I 0" " " .. - Se a s o n a l S y s t e m E n e r g . v C h o n a ( S S E C H 1 LW M O j C h TA E i j SS E C H i = / = L L WM O j c h AE i j i= 1 j= 1 wh e r e : SS E C H i = S e a s o n a l Sy s t e m E n e r g y C h o l l a F a c t o r f o r ju r i s d i c t i o n i . WM O j C H Ej c h Ej r a p s Ej d a p s Ej c h Ej r a p s Ej d a p s j= 1 wh e r e : Ejc h Ejr a p s Ej d a p s We i g h t e d m o n t h l y e n e r g y g e n e r a t i o n o f C h o n a p l u s e n e r g y r e c e i v e d f r o m A P S l e s s e n e r g y d e l i v e r e d t o A P S Mo n t h l y E n e r g y g e n e r a t i o n o f C h o n a p l a n t i n m o n t h j . Mo n t h l y E n e r g y r e c e i v e d f r o m A P S i n m o n t h j . Mo n t h l y E n e r g y d e l i v e r e d t o A P S i n mo n t h j . TA E i j Te m p e r a t u r e A d j u s t e d E n e r g y O u t p u t o f j u r i s d i c t i o n i i n mo n t h j . :E \ ; I t ' I 1 ' " if : ; ; ; ~ ~ !1 ~ & I; ; -~ . .. z z o? ? .. . . " N s. ~ N ~ ( ' ) . " t" " I . . . . t ' I 1 Q Q -J I'D .. . N ~ I 0" " " .. - Mi d - C ( M C MC . WM C E i= 8 L W M C E i= l wh e r e : MC i = M i d - C F a c t o r f o r j u r i s d i c t i o n i . WM C E i wh e r e : WW A i wh e r e : ~r (E r r * S G i ) (E w a WW A i ) (E w * S G i ) We i g h t e d M i d - C C o n t r a c t s a n n u a l e n e r g y g e n e r a t i o n ~r Ei p r If i i s O r e g o n , o t h e r w i s e ip r = 0 Eip r = A n n u a l En e r g y g e n e r a t i o n o f P r i e s t R a p i d s . Er r An n u a l E n e r g y g e n e r a t i o n o f R o c k y R e a c h . Ew a An n u a l E n e r g y g e n e r a t i o n o f W a n a p u m . Ew An n u a l E n e r g y g e n e r a t i o n o f W e l l s . SG ~ i= 8 L S G i= l =:: ! ; ' IT J . " e' g ~ ~ . ~ & " g ' . : h !" . Z 2 : ~? ? :S o ~ Q. ( " ' ) . " t" " I . ~ . I T J (J Q -I ~ N \ 0 '0 : : I 0 0" " " ' " .. . - We i g h t e d W a n a p u m E n e r g y SG i if i i s Wa s h i n g t o n o r O r e g o n j u r i s d i c t i o n , o t h e r w i s e = O . SG ; = S y s t e m Ge n e r a t i o n f o r j u r i s d i c t i o n i . Di v i s i o n G e n e r a t i o n - P a c i f i c F a c t o r ( D G P ) DG P ; L S G ;= 1 wh e r e : DG P i Di v i s i o n G e n e r a t i o n - P a c i f i c F a c t o r fo r j u r i s d i c t i o n i . SG ; if i i s a P a c i f i c j u r i s d i c t i o n , o t h e r w i s e = O . SG i = S y s t e m Ge n e r a t i o n f o r j u r i s d i c t i o n i . Di v i s i o n G e n e r a t i o n - U t a h F a c t o r ( D G U ) DG U i L S G ;= 1 wh e r e : DG U i Di v i s i o n G e n e r a t i o n - U t a h F a c t o r fo r j u r i s d i c t i o n i . SG ; if i i s a U t a h j u r i s d i c t i o n , o t h e r w i s e = O . SG i = S y s t e m Ge n e r a t i o n f o r j u r i s d i c t i o n i . ~9 t r 1 ' 1 : 1 g. ~ e - ~ . n i ! 5 ' " 6': : ! I '" ~ ~ . ( ' ) !" . Z Z O o? ? .., ' 1 : I N ;s . ) 0 N c: : o . (') ' 1 : 1 t" ' " I . . , . t r 1 -! .. , N "( I 0 0 t . . I .. . .. . , Sy s t e m N e t P l a n t Pr o d u c t i o n - S t e a m F a c t o r (S N P P S ) SN P P S i SG i (P P S O AD P P S O ) SS G C T i (P P S C T AD P P S C T ) SS G C H i (P P S C H AD P P S C H ) (P P S - AD P P S ) wh e r e : SN P P S i SG j SS G C T j SS G C H j PP S O DP P S O PP S C T AD P P S C T PP S C H AD P P S C H PP S DP P S Sy s t e m N e t P l a n t - S t e a m F a c t o r f o r ju r i s d i c t i o n i . Sy s t e m G e n e r a t i o n f o r j u r i s d i c t i o n i . Se a s o n a l S y s t e m G e n e r a t i o n C o m b u s t i o n T u r b i n e G e n e r a t i o n f o r j u r i s d i c t i o n i . Se a s o n a l S y s t e m G e n e r a t i o n C h o l l a f o r j u r i s d i c t i o n i . St e a m P r o d u c t i o n P l a n t l e s s C o m b u s t i o n T u r b i n e a n d C h o l l a . Ac c u m u l a t e d D e p r e c i a t i o n S t e a m P r o d u c t i o n P l a n t l e s s C o m b u s t i o n T u r b i n e a n d C h o l l a . St e a m P r o d u c t i o n P l a n t - C o m b u s t i o n Tu r b i n e . Ac c u m u l a t e d D e p r e c i a t i o n S t e a m P r o d u c t i o n P l a n t - C o m b u s t i o n Tu r b i n e . St e a m P r o d u c t i o n P l a n t - C h o l l a . Ac c u m u l a t e d D e p r e c i a t i o n S t e a m P r o d u c t i o n P l a n t - C h o l l a . St e a m P r o d u c t i o n P l a n t . Ac c u m u l a t e d D e p r e c i a t i o n S t e a m P r o d u c t i o n P l a n t . ~l ; I r n " ' " Et . ~ ~~ . ~ r r g : ~ Y' . z ~? ? .. . " " ' N :S . ~ ~ ( j " ' " l' I . . . . r n ! J Q o- j b ~ .. . N -. . : , 0' I . . J 0 .. .. . , Sy s t e m N e t P l a n t Pr o d u c t i o n - H y d r o F a c t o r (S N P P H ~ SN P P H i SG i (P P H E AD P P H E ) SG i (P P H R P AD P P H R P ) (P P H - AD P P H ) wh e r e : SN P P l/ ; SG . PP H E AD P P P P HR P AD P P H R P PP H AD P P Sy s t e m N e t P l a n t - H y d r o Fa c t o r f o r j u r i s d i c t i o n i . Sy s t e m G e n e r a t i o n f o r j u r i s d i c t i o n i . Hy d r o P r o d u c t i o n P l a n t - E a s t . Ac c u m u l a t e d D e p r e c i a t i o n & A m o r t i z a t i o n H y d r o P r o d u c t i o n P l a n t - E a s t . Hy d r o P r o d u c t i o n P l a n t - P a c i f i c . AC C U 1 T I u l a t e d De p r e c i a t i o n & A m o r t i z a t i o n H y d r o P r o d u c t i o n P l a n t - P a c i f i c . Hy d r o P r o d u c t i o n P l a n t . Ac c u m u l a t e d D e p r e c i a t i o n & A m o r t i z a t i o n H y d r o P r o d u c t i o n P l a n t . Sy s t e m N e t P l a n t - D i s t r i b u t i o n Fa c t o r (S N P D 1 PD i AD P D i SN P D i (P D - A D P D ) wh e r e : SN P D i PD i AD P D i AD P D Sy s t e m N e t P l a n t - D i s t r i b u t i o n Fa c t o r f o r j u r i s d i c t i o n i . Di s t r i b u t i o n P l a n t - f o r j u r i s d i c t i o n i . Ac c u m u l a t e d D e p r e c i a t i o n D i s t r i b u t i o n P l a n t - f o r j u r i s d i c t i o n i . Di s t r i b u t i o n P l a n t . Ac c u m u l a t e d D e p r e c i a t i o n D i s t r i b u t i o n P l a n t . :c : I ; ' i:T J " t I _. g ~ ~ Ii ~ a : 5 i '" ! 1 - . '" - .. z Z 51 ? ? :0 . ~ Q. ( " ) " t I !" " t r 1 & : -J '" ' " - ~ I ' " 0'\ " . 0 0 .. ...OC I Sy s t e m G r o s s P l a n t - S y s t e m F a c t o r ( G P S ) GP S i == i= 8 PP i PT i PD i PG i PI i 1: (P P i PY i PD i PG i PI i ) i= 1 GP - Sj PP j PT i PD i PG j PI i Gr o s s P l a n t - S y s t e m F a c t o r f o r j u r i s d i c t i o n i . Pr o d u c t i o n P l a n t f o r j u r i s d i c t i o n i . Tr a n s m i s s i o n P l a n t f o r j u r i s d i c t i o n i . Di s t r i b u t i o n P l a n t f o r j u r i s d i c t i o n i . Ge n e r a l P l a n t f o r j u r i s d i c t i o n i . In t a n g i b l e P l a n t f o r j u r i s d i c t i o n i . Sy s t e m N e t P l a n t F a c t o r (S N P ~ SN P i i= 8 PP i PT i PD i PG i PL AD P P i AD P T i AD P D i AD P G i AD P L 1: (P P i PY i PD i PG i PL AD P P i AD P T ' ; AD P D i AD P G i AD P I i ) i= 1 SN P j PP i PT j PD i PG j PI j AD P P i AD P T j AD P D j AD P G j AD P I i Sy s t e m N e t P l a n t F a c t o r f o r ju r i s d i c t i o n i . Pr o d u c t i o n P l a n t f o r j u r i s d i c t i o n i . Tr a n s m i s s i o n P l a n t f o r j u r i s d i c t i o n i . Di s t r i b u t i o n P l a n t f o r j u r i s d i c t i o n i . Ge n e r a l P l a n t f o r j u r i s d i c t i o n i . In t a n g i b l e P l a n t f o r j u r i s d i c t i o n i . Ac c u m u l a t e d D e p r e c i a t i o n P r o d u c t i o n P l a n t f o r j u r i s d i c t i o n i . Ac c u m u l a t e d D e p r e c i a t i o n T r a n s m i s s i o n P l a n t f o r j u r i s d i c t i o n i . Ac c u m u l a t e d D e p r e c i a t i o n D i s t r i b u t i o n P l a n t f o r j u r i s d i c t i o n i . Ac c u m u l a t e d D e p r e c i a t i o n G e n e r a l P l a n t f o r j u r i s d i c t i o n i . Ac c u m u l a t e d D e p r e c i a t i o n I n t a n g i b l e P l a n t f o r j u r i s d i c t i o n i . ~~ ~ ~ (I I , . . 6 ' : I I '" ~ '" - .. z z o~ ~ Dl o o g N :S . ; : J o . N () o o g r t n ~ j; l o ~ ~ 0 I N 0 .. . .. . Sy s t e m O v e r h e a d - G r o s s F a c t o r SO G ; i= 8 PP i P1 i PD i PG i Ph PP o i PT o i PD o i PG o i Pl o i (P P i PT ; PD i PG i PP i PP o i Plo i PD o i PG o i Pl o i ) i= 1 Sa G ; PP i PT i PD i PG i Pl i P P o i PT o i PD o i PG o i Plo i Sy s t e m O v e r h e a d - G r o s s F a c t o r f o r ju r i s d i c t i o n i . Gr o s s P r o d u c t i o n P l a n t f o r j u r i s d i c t i o n i . Gr o s s T r a n s m i s s i o n P l a n t f o r j u r i s d i c t i o n i . Gr o s s D i s t r i b u t i o n P l a n t f o r j u r i s d i c t i o n i . Gr o s s G e n e r a l P l a n t f o r j u r i s d i c t i o n i . Gr o s s I n t a n g i b l e P l a n t f o r j u r i s d i c t i o n i . Gr o s s P r o d u c t i o n P l a n t f o r j u r i s d i c t i o n i a l l o c a t e d o n a S O f a c t o r . Gr o s s T r a n s m i s s i o n P l a n t f o r j u r i s d i c t i o n i a l l o c a t e d o n a S O f a c t o r Gr o s s D i s t r i b u t i o n P l a n t f o r j u r i s d i c t i o n i a l l o c a t e d o n a S O f a c t o r Gr o s s G e n e r a l P l a n t f o r j u r i s d i c t i o n i a l l o c a t e d o n a S O f a c t o r Gr o s s I n t a n g i b l e P l a n t f o r j u r i s d i c t i o n i a l l o c a t e d o n a S O f a c t o r In c o m e B e f o r e T a x e s F a c t o r ( l IB T ; ;I B T I TI B T ; i= 1 IB T i TI B T i In c o m e b e f o r e T a x e s F a c t o r f o r j u r i s d i c t i o n i . To t a l I n c o m e b e f o r e T a x e s f o r j u r i s d i c t i o n i . ::E : I ; ' t T J s' ~ ~ ~ . n I f c : r ' : : 2 I g: . . . . ~ . ( " ) .. z Z O oP "" ' N :S . ~ N g. ( " ) " , r- I ' " . t T J (J Q "" i 6 n ., N - "( I . " . 0" ' " 0 .. . ... . , Ba d D e b t E x p e n s e F a c t o r (B A D D E B T ) BA D D E B T i 1C C T 9 0 4 i LA C C T 9 0 4 i i= l BA D D E B T ; A C C T 9 0 4 i Ba d D e b t E x p e n s e F a c t o r fo r j u r i s d i c t i o n i . Ba l a n c e i n A c c o u n t 9 0 4 f o r j u r i s d i c t i o n i . Cu s t o m e r N u m b e r F a c t o r CM . cu s r : i= 8 L C U S T ; i= l wh e r e : CN ; CU S T ; Cu s t o m e r N u m b e r F a c t o r fo r j u r i s d i c t i o n i . To t a l E l e c t r i c C u s t o m e r s f o r j u r i s d i c t i o n i . Co n t r i b u t i o n s i n A i d o f C o n s t r u c t i o n ( C I A C ) CIA Ci = ;I A C N A L C I A CN A i= l wh e r e : CIA CI A C N A ; Co n t r i b u t i o n s i n A i d o f C o n s t r u c t i o n F a c t o r fo r j u r i s d i c t i o n i . Co n t r i b u t i o n s i n A i d o f C o n s t r u c t i o n - N e t a d d i t i o n s f o r ju r i s d i c t i o n i . _. ~ B' =- - . !i r & : : 2 I en : . ! ' o _ . !" . zz g o? ? "C O 1\ 0 " I : I N ;s . ~ g. ( ) "1 : 1 rm l i : -! 6 n o 1\ 0 -. : : I ~1 H Sc h e d u l e M - D e d u c t i o n s ( S C H M D ) SC H M D i ~E P R C 'L D E P R C i= 1 wh e r e : SC H M D ; DE P R C i !! : Q j a n P l a n t ( T R O J P ) TR O J P i :C C T 1 8 2 2 2 'L A C C T 1 8 2 2 2 i= 1 wh e r e : TR O J P ; CC T l 8 2 2 2 i Sc h e d u l e M - D e d u c t i o n s ( S C H M D ) F a c t o r f o r ju r i s d i c t i o n i . De p r e c i a t i o n i n A c c o u n t s 4 0 3 . 1 - 4 0 3 . 9 f o r j u r i s d i c t i o n i . Tr o j a n P l a n t ( T R O J P ) F a c t o r f o r ju r i s d i c t i o n i . Al l o c a t e d A d j u s t e d B a l a n c e i n A c c o u n t 1 8 2 . 22 f o r j u r i s d i c t i o n i . I! : . 2 . i . . a n D e c o mm i s s i 0 ni n g j T R O J D ) TR O J D i 1C C T 2 2 8 4 2 'L A C C T 2 2 8 4 2 i= 1 wh e r e : TR O J D ; AC C T 2 2 8 4 2 i Tr o j a n De c o m m i s s i o n i n g ( T R O J D ) F a c t o r f o r j u r i s d i c t i o n i . Al l o c a t e d A d j u s t e d B a l a n c e i n A c c o u n t 2 2 8 . 4 2 f o r j u r i s d i c t i o n i . ~~ t ' 1 1 " O g ~ a . ~ ! g : ~ !" . Z z Q ~? ? i\ ' " 0 N i: ; I : - N Q; P . t T 1 QO ; I -! .. N o. . c : . g ~ S o Ta x D e p r e c i a t i o n ( T AX D E P R ) AX D E P R i AX D E P R A L T AX D E P R A i= l wh e r e : TA X D E P R ; TA X D E P R A i Ta x D e p r e c i a t i o n ( T A X D E P R ) F a c t o r fo r j u r i s d i c t i o n i . Ta x D e p r e c i a t i o n a l l o c a t e d t o j u r i s d i c t i o n i . (T a x D e p r e c i a t i o n i s a l l o c a t e d b a s e d o n f u n c t i o n a l p r e m e r g e r a n d p o s t m e r g e r s p l i t s o f p l a n t u s i n g D i v i s i o n a l a n d Sy s t e m a l l o c a t i o n s f r o m a b o v e . E a c h j u r i s d i c t i o n s t o t a l a l l o c a t e d p o r t i o n o f T a x d e p r e c i a t i o n i s d e t e r m i n e d b y i t s to t a l a l l o c a t e d r a t i o o f t h e s e f u n c t i o n a l p r e a n d p o s t m e r g e r s p l i t s t o t h e t o t a l C o m p a n y T a x D e p r e c i a t i o n . De f e r r e d T a x E x p e n s e ( D I T E X P ) DI T E X P i fI T E X P A L D IT E X P A i= 1 wh e r e : DI T E X P ; DI T E X P A i De f e r r e d T a x E x p e n s e ( D I T E X P ) F a c t o r f o r ju r i s d i c t i o n i . De f e r r e d T a x E x p e n s e a l l o c a t e d t o j u r i s d i c t i o n i . (D e f e r r e d T a x E x p e n s e i s a l l o c a t e d b y a r u n o f P o w e r T a x b a s e d u p o n t h e a b o v e f a c t o r s . Po w e r T a x i s a c o m p u t e r so f t w a r e p a c k a g e u s e d t o t r a c k D e f e r r e d T a x E x p e n s e & D e f e r r e d T a x B a l a n c e s . Po w e r T a x a l l o c a t e s D e f e r r e d T a x Ex p e n s e a n d D e f e r r e d T a x B a l a n c e s t o t h e s t a t e s b a s e d u p o n a c o l n p u t e r r u n w h i c h u s e s a s i n p u t s t h e p r e c e d i n g fa c t o r s . I f t h e pr e c e d i n g f a c t o r s c h a n g e , t h e f a c t o r s g e n e r a t e d b y P o w e r T a x c h a n g e . :E ~ t T 1 " " ~ e : ~ ~r r g : ( " ) !" . ZZ ~ o? ? ' g co . . " N ;S . ~ (" ) " " r t r 1 ~ co N o. . . c : I -. I ~ t . . I De f e r r e d T a x B a l a n c e ( D I T B A L ) DIT B A L i fI T B A L A L D I T B A L A i= I wh e r e : DI T B A L i DI T B A L A i De f e r r e d T a x B a l a n c e ( D I T B A L ) F a c t o r f o r ju r i s d i c t i o n i . De f e r r e d T a x B a l a n c e a l l o c a t e d t o j u r i s d i c t i o n i . (D e f e r r e d T a x B a l a n c e i s a l l o c a t e d b y a r u n o f P o w e r T a x b a s e d u p o n t h e a b o v e f a c t o r s . Po w e r T a x i s a c o m p u t e r so f t w a r e p a c k a g e u s e d t o t r a c k D e f e r r e d T a x E x p e n s e & D e f e r r e d T a x B a l a n c e s . Po w e r T a x a l l o c a t e s D e f e r r e d T a x Ex p e n s e a n d D e f e r r e d T a x B a l a n c e s t o t h e s t a t e s b a s e d u p o n a c o m p u t e r r u n w h i c h u s e s a s i n p u t s t h e p r e c e d i n g fa c t o r s . I f t h e pr e c e d i n g f a c t o r s c h a n g e , t h e f a c t o r s g e n e r a t e d b y P o w e r T a x c h a n g e . :E I ; ; ' tT 1 ; p _. ~ ~ n ~ ~ C T 5 i '" . . . ~ . (" ) !" . Z Z O 5' ? ? ~. : : ! j c: I o ( " ) t" ' " I III . t T 1 .. . j I n II I 0 -.. : ' ; - I 0 0 0" " 0 .. .. . . Case No. P AC-02- Exhibit No. 23 Witness: David L. Taylor BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ACIFICORP Exhibit AccompanYing Supplemental Direct Testimony of David L. Taylor Appendix D - Special Contracts July 2004 PacifiCorp Exhibit No. 23 Page 1 of 3 Case No. PAC-O2- Witness: David L. Taylor Protocol Appendix D Special Contracts Special Contracts without Ancillary Service Contract Attributes For allocation purposes Special Contracts without identifiable Ancillary Service Contract attributes are viewed as one transaction. Loads of Special Contract customers will be included in all Load-Based Dynamic Allocation Factors. When inteITUptions of a Special Contract customer s service occur, the reduction in load will be reflected in the host jurisdiction s Load-Based Dynamic Allocation Factors. Actual revenues received from Special Contract customer will be assigned to the State where the Special Contract customer is located. See example in Table Special Contracts with Ancillary Service Contract Attributes For allocation purposes Special Contracts with Ancillary Service Contract attributes are viewed as two transactions. PacifiCorp sells the customer electricity at the retail service rate and then buys the electricity back during the interruption period at the Ancillary Service Contract rate. Loads of Special Contract customers will be included in all Load-Based Dynamic Allocation Factors. When interruptions of a Special Contract customer s service occur, the host jurisdiction s Load-Based Dynamic Allocation Factors and the retail service revenue are calculated as though the interruption did not occur. Revenues received from Special Contract customer, before any discounts for Customer Ancillary Service attributes of the Special Contract, will be assigned to the State where the Special Contract customer is located. Discounts from tariff prices provided for in Special Contracts that recognize the Customer Ancillary Service Contract attributes of the Contract, and payments to retail customers for Customer Ancillary Services will be allocated among States on the same basis as System Resources. See example in Table 2 Buy-through of Economic Curtailment. When a buy-through option is provided with economic curtailment, the load, costs and revenue associated with a customer buying through economic curtailment will be excluded from the calculation of State revenue requirements. The cost associated with the buy-through will be removed from the calculation of net power costs, the Special Contract customer load associated with the buy-through will be not be included in the calculation of Load-Based Dynamic Allocation Factors, and the revenue associated with the buy- through will not be included in State revenues. Protocol Appendix D - Table 1 Interruptible Contract Without Ancillary Service Contract Attributes Effect on Revenue Requirement 2 Jurisdictional Loads - No Interruptible Service 3 Jurisdictional Sum of 12 monthly CP demand (MW) 4 Jurisdictional Annual Energy (MWh) 6 Jurisdictional Loads - With Interruptible Service - Reflecting Actual Interruptions 7 Jurisdictional Sum of 12 monthly CP demand (MW) 8 Jurisdictional Annual Energy (MWh) 10 Special Contract Customer Revenue and Load - Non Interruptible Service 11 Special Contract Customer Revenue 12 Special Contract Customer Sum of 12 CPs (MW) (Included in line 2) 13 Special Contract Annual Energy (MWh) (Included in line 3) 15 Special Contract Customer Revenue and Load - With Interruptible Service (75 MW X 500 Hours of Interruption)16 Special Contract Customer Revenue $ 16,000,000 17 Discount for Ancillary Services 18 Net Cost to Special Contract Customer 19 Special Contract Sum of 12 CP- Reflecting Actual Interruptions (MW) (Included in line 7) 20 Special Contract Annual Energy- Reflecting Actual Interruptions (MWh) (Included in line 8) 22 System Cost Savings from Interruption 24 Allocation Factors 25 No Interruptible Service 26 SE factor (Calculated from line 4) 27 SC factor (Calculated from line 3) 28 SG factor (line 27*75% + line 26*25%) 30 With Interruptible Service (Reflecting Actual Physical Interruptions) 31 SE factor (Calculated from line 8) 32 SC factor (Calculated from line 7) 33 SG factor (line 32*75% + line 31 *25%) 38 Cost of Service 39 Energy Cost 40 Demand Related Costs 41 Sum of Cost 43 Revenues 44 Special Contract Revenue 45 Revenues from all other customers 50 Cost of Service 51 Energy Cost 52 Demand Related Costs 53 Sum of Cost 55 Revenues 56 Special Contract Revenue 57 Revenues from all other customers Factor SE1 SC1 SG1 SE2 SC2 SG2 No Interruptible Service SE1 SG1 Situs $ Situs $ Total system 72,000 42,000,000 71,700 41,962,500 20,000,000 900 500,000 16,000,000 600 462,500 $4,000,000 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 500,000,000 $ 000,000,000 $ 500,000,000 $ 20,000,000 480,000,000 $ With Interruptible Service SE2 SG2 Situs $ Situs $ 498,000,000 $ 998,000,000 $ 496,000,000 $ 16,000,000 480,000,000 $ Jurisdiction 1 24,000 000,000 000 000,000 Jurisdiction 2 36,000 21,000,000 700 20,962 500 20,000,000 900 500,000 PacifiCorp Exhibit No. 23 Page 2 of 3 Case No. PAC-E-O3- Witness: David L. Taylor Jurisdiction 3 12,000 000,000 000 000,000 33.33%50.00%16.67% 33.33%50.00%16.67% 33.33%50.00%16.67% 33.36%49.96%16.68% 33.47%49.79%16.74% 33.45%49.83%16.72% 166,666,667 $ 333,333,333 $ 500,000,000 $ 500,000,000 $ 166,148,347 $ 334,058,577 $ 500,206,924 $ 500,206,924 $ 16,000,000 000,000 600 462,500 250,000,000 $ 500,000,000 $ 750,000,000 $ 20,000,000 730,000,000 $ 248,777,480 $ 496,912,134 $ 745,689,614 $ 16,000,000 729,689,614 $ 83,333,333 166,666,667 250,000,000 250,000,000 83,074 173 167 029,289 250,103,462 250,103,462 Protocol Appendix D - Table 2 Interruptible Contract With Ancillary Service Contract Attributes Effect on Revenue Requirement 2 Jurisdictional Loads - No Interruptible Service 3 Jurisdictional Sum of 12 monthly CP demand (MW) 4 Jurisdictional Annual Energy (MWh) 6 Jurisdictional Loads - With Interruptible Service - Reflecting Actual Interruptions 7 Jurisdictional Sum of 12 monthly CP demand (MW) 8 Jurisdictional Annual Energy (MWh) 10 Special Contract Customer Revenue and Load - Non Interruptible Service 11 Special Contract Customer Revenue 12 Special Contract Customer Sum of 12 CPs (MW) (Included in line 2) 13 Special Contract Annual Energy (MWh) (Included in line 3) 15 Special Contract Customer Revenue and Load - With Interruptible Service (75 MW X 500 Hours of Interruption)16 Tariff Equivalent Revenue $ 20,000,000 17 Ancillary Service Discount for 75 MW X 500 Hours of Economic Curtailment 18 Net Cost to Special Contract Customer 19 Special Contract Sum of 12 CP- Reflecting Actual Interruptions (MW) (Included in line 20 Special Contract Annual Energy- Reflecting Actual Interruptions (MWh) (Included in line 8) 22 System Cost Savings from Interruption 24 Allocation Factors 25 No Interruptible Service 26 SE factor (Calculated from line 4) 27 SC factor (Calculated from line 3) 28 SG factor (line 27*75% + line 26*25%) 30 With Interruptible Service (Reflecting Actual Physical Interruptions) 31 SE factor (Calculated from line 8) 32 SC factor (Calculated from line 7) 33 SG factor (line 32*75% + line 31 *25%) 38 Cost of Service 39 Energy Cost 40 Demand Related Costs 41 Sum of Cost 43 Revenues 44 Special Contract Revenue 45 Revenues from all other customers 50 Cost of Service 51 Energy Cost 52 Demand Related Costs 53 Ancillary Service Contract. Economic Curtailment (Demand) 54 Ancillary Service Contract - Economic Curtailment (Energy) 55 Sum of Cost 57 Revenues 58 Special Contract Revenue 59 Revenues from all other customers Factor SE1 SC1 SG1 SE2 SC2 SG2 No Interruptible Service SE1 SG1 Situs $ Situs $ Total svstem 000 000,000 700 41 ,962,500 20,000,000 900 500,000 Jurisdiction 1 24,000 14,000,000 24,000 14,000,000 Jurisdiction 2 36,000 000,000 35,700 20,962,500 20,000,000 900 500,000 PaciliCorp Exhibit No. 23 Page 3 of 3 Case No. PAC-E-o3- WiUless: David L. Taylor Jurisdiction 3 12,000 000,000 000 000,000 33.33%50.00%16.67% 33.33%50.00%16.67% 33.33%50.00%16.67% 33.36%49.96%16.68% 33.47%49.79%16.74% 33.45%49.83%16.72% 166,666,667 $ 333,333,333 $ 500,000,000 $ 500,000,000 $ With Interruptible Service & Ancillary Service Contract SE1 SG1 SG1 SE1 Situs $ Situs $ 16,000,000 600 462,500 $4,000,000 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 500,000,000 $ 000,000,000 $ 1 ,500,000,000 $ 000,000 480,000,000 $ 498,000,000 $ 998,000,000 $ 000,000 $ 000,000 $ 500,000,000 $ 20,000,000 480,000,000 $ 166,000,000 $ 332,666,667 $ 666,667 $ 666,667 $ 500,000,000 $ 500,000,000 $ 20,000,000 000,000) 16,000,000 600 462 500 250,000,000 $ 500,000,000 $ 750,000,000 $ 20,000,000 730,000,000 $ 249,000,000 $ 499,000,000 $ 000,000 $ 000,000 $ 750,000,000 $ 20,000,000 730,000,000 $ 83,333,333 166,666,667 250,000,000 250,000,000 83,000,000 166,333,333 333,333 333,333 250,000,000 250,000,000 Case No. P AC-02- Exhibit No. 24 Witness: David L. Taylor BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ACIFICORP Exhibit AccompanYing Supplemental Direct Testimony of David L. Taylor Appendix E - Annual Embedded Costs July 2004 PacifiCorp Exhibit No. 24 Case No. PAC-O2- Witness: David L. Taylor Protocol Appendix E Annual Embedded Costs Example Calculation FERC Generation Accounts West Line No Hydro Description Mwh $lMwh Operating Expenses 535 - 545 Hydro Operation & Maintenance Expense 28,742,968 403.330 - 403.336 Hydro Depreciation Expense 998,326 4O4IP Hydro Relicensing Amortization Total West Hydro Operating Expense 38,741,294 West Hydro Rate Base 330 - 336 Hydro Electric Plant in Service 374,018,924 302 Hydro Relicensing 60,297 285 108 Hydro Accumulated Depreciation Reserve (166,680,229) 154 Material & Supplies 33,115 West Hydro Net Rate Base 267 669,095 Pre-tax retum 12.040% Rate Base Revenue Requirement 32,228,277 Annual Embedded Costs Hydro-Electric Resources 70,969,571 128,973 17. Mid C Contracts 555 Annual Mid-C Contracts Costs 17,395,759 942,173 Qualified Facilities 555 Annual Qualified Facilities Costs 72,455,744 904,760 80. Generation Accounts (Excl. West Hydro, Mid C & QF)Description Operating Expenses 500 - 514 Steam Operation & Maintenance Expense 688,364,976 535 - 545 East Hydro Operation & Maintenance Expense 735,263 546 - 554 Other Generation Operation & Maintenance Expense 100,437,128 555 Other Purchased Power Contracts (No Mid-C or OF)967,640,792 4118 S02 Emission Allowances 567,668) 403.310 - 403.316 Steam Depreciation Expense 125,299,749 403.330 - 403.336 East Hydro Depreciation Expense 682,834 403.340 - 403.346 Other Generation Depreciation Expense 246,911 403.399 Mining 406 Amortization of Plant Acquisition Costs 5,479,353 Total Operating Expenses 900,319,339 Rate Base 310 - 316 Steam Electric Plant in Service 101,422,677 330 - 336 East Hydro EPIS 97,419,645 302 Hydro Relicensing 401,310 340 - 346 Other Electric Plant in Service 244,590,200 399 Mining 307,647,355 108 Steam Accumulated Depreciation Reserve 942,212,593) 108 Other Accumulated Depreciation Reserve (35,481,994) 108 Mining (163,138,588) 108 East Hydro Accum Depreciation Reserve (35,722,174) 114 Electric Plant Acquisition Adjustment 157,193,780 115 Accumulated Provision Acquisition Adjustment (56,601,550) 151 Fuel Stock 63,173,007 253.16-253.Joint Owner WC Deposit (4,310,538) 253.S02 Emission Allowances (45,959,734) 154 Material & Supplies 154 East Hydro Material & Supplies 46,300,904 Total Net Rate Base 739,721,705 Pre-tax retum 12.04% (Line 42 x Line 43)Rate Base Revenue Requirement 329,871,889 ( Line 25 + Line 44)Annual Embedded Costs. All Other 230,191,228 69,686,856 32. (Line 12 + Line 13 + Line 14 + Line 45)Total Annual Embedded Costs 391,012 302 76,662,762 31. 1 . Generation Revenue Requirement less Hydro-Electric Resources, Mid Columbia Contracts and Existing OF Contracts Case No. PAC-02- Exhibit No. 25 Witness: David L. Taylor BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ACIFICORP Exhibit AccompanYing Supplemental Direct Testimony of David L. Taylor State by State Revenue Requirement Impact % Change in Revenue Requirement July 2004 Pa c i f i C o r p St a t e b y S t a t e R e v e n u e R e q u i r e m e n t I m p a c t Pe r c e n t C h a n g e i n R e v e n u e R e q u i r e m e n t 20 0 5 N P V e 82 3 % 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 Ca l i f o r n i a ( c o m p a r e d t o M o d i f i e d A c c o r d ) Mo d i f i e d A c c o r d t o R o l l e d I n A d j u s t m e n t 29 % 91 % 54 % 29 % 30 % 22 % 15 % 12 % 15 % 24 % 23 % 15 % 03 % 05 % 37 % Co m p a n y O w n e d H y d r o 06 % -1 . 28 % 25 % 50 % 08 % 67 % 18 % 47 % 69 % 97 % 26 % 29 % 19 % 1.1 7 % 12 % To t a l M i d C 57 % 74 % 72 % 73 % 75 % 73 % 67 % 53 % 46 % 38 % 38 % 37 % 35 % 33 % 34 % OF s 21 % 05 % 00 % 00 % 06 % 01 % 98 % 03 % 13 % 44 % 53 % 58 % 59 % 62 % 78 % Se a s o n a l 02 % 00 % 01 % 01 % 00 % 01 % 01 % 01 % 03 % 06 % 04 % 05 % 04 % 05 % 05 % TO T A L M S P S o l u t i o n 99 % 2. 4 2 % 99 % 53 % 03 % 30 % 60 % 13 % 41 % 97 % 37 % 34 % 13 % 02 % 56 % Ore g o n ( c o m p a r e d t o M o d i f i e d A c c o r d ) Mo d i f i e d A c c o r d t o R o l l e d I n A d j u s t m e n t 41 % 28 % 77 % 0.4 1 % 43 % 31 % 21 % 17 % 22 % 33 % 32 % 20 % 04 % 05 % 49 % Co m p a n y O w n e d H y d r o 08 % 79 % -1 . 72 % -2 . 05 % -1 . 48 % -0 . 91 % 24 % 65 % 93 % 30 % 70 % 1. 7 4 % 61 % 57 % 47 % To t a l M i d C 71 % 08 % -2 . 06 % 15 % 22 % 21 % 1. 9 2 % -1 . 64 % 47 % 22 % 23 % 21 % 15 % 10 % -1 . 12 % OF s 19 % 16 % 12 % 92 % 62 % 59 % 57 % 55 % 14 % 09 % 13 % 11 % 12 % 12 % 13 % Se a s o n a l 35 % 15 % 34 % 32 % 33 % 32 % 27 % 29 % 39 % -0 . 63 % 57 % 42 % 35 % 32 % 28 % TO T A L M S P S o l u t i o n 55 % 57 % -1 . 24 % 18 % -1 . 98 % -1 . 5 4 % 64 % 44 % 44 % 12 % 34 % 42 % 27 % 22 % 68 % Wa s h i n g t o n ( c o m p a r e d t o M o d i f i e d Ac c o r d ) Mo d i f i e d A c c o r d t o R o l l e d I n A d j u s t m e n t 39 % 28 % 76 % 40 % 42 % 30 % 20 % 16 % 21 % 32 % 31 % 20 % 03 % 07 % 47 % Co m p a n y O w n e d H y d r o 06 % 81 % -1 . 74 % -2 . 08 % 49 % 91 % 24 % 63 % 94 % 31 % 71 % 75 % 62 % 1. 5 8 % 43 % To t a l M i d C 55 % 57 % 64 % -0 . 62 % 62 % 63 % -1 . 01 % 51 % 47 % 39 % -0 . 39 % 39 % 37 % 36 % 36 % OF s 67 % 07 % 91 % 93 % 77 % 72 % 70 % 70 % 50 % 17 % 50 % 49 % 49 % 48 % 48 % Se a s o n a l 06 % 00 % 00 % 01 % 05 % 05 % 04 % 07 % 10 % 17 % 15 % 09 % 08 % 08 % 06 % TO T A L M S P S o l u t i o n 82 % 16 % 52 % 21 % 2. 4 0 % 92 % -1 . 71 % 36 % 29 % 24 % 28 % 16 % 88 % 76 % 11 % Ut a h ( c o m p a r e d t o R o l l e d - In ) Co m p a n y O w n e d H y d r o 04 % 82 % 69 % 97 % 39 % 83 % 22 % 57 % 81 % 12 % 1.4 5 % 47 % 36 % 31 % 17 % To t a l M i d C 78 % 05 % 02 % 04 % 1.0 5 % 02 % 93 % 74 % 65 % 53 % 53 % 52 % 49 % 47 % 45 % OF s 37 % -0 . 74 % 78 % 70 % 58 % -0 . 56 % 53 % -0 . 51 % 37 % 00 % 02 % 03 % 02 % 02 % 03 % Se a s o n a l 23 % 10 % 23 % 22 % 24 % 22 % 18 % 19 % 25 % 40 % 36 % 26 % 24 % 21 % 17 % TO T A L M S P S o l u t i o n 68 % 23 % 16 % 53 % 10 % 51 % 79 % -0 . 15 % 28 % 18 % 53 % -0 . 66 % -0 . 61 % 61 % -0 . 51 % Id a h o ( c o m p a r e d t o R o l l e d - In ) Co m p a n y O w n e d H y d r o 19 % 87 % 71 % 97 % 38 % 82 % 21 % 55 % 79 % 09 % 40 % 43 % -1 . 31 % -1 . 25 % 12 % To t a l M i d C 79 % 09 % 03 % 03 % 04 % 01 % 92 % 73 % 63 % 51 % 52 % 51 % 47 % 45 % 44 % OF s -0 . 41 % 83 % -0 . 67 % 59 % 0.4 9 % 53 % 57 % 56 % 43 % -0 . 07 % 04 % 03 % 05 % 07 % 11 % Se a s o n a l 23 % 21 % 43 % 36 % 31 % 30 % 21 % 18 % 18 % 28 % 27 % 12 % 07 % 04 % 04 % TO T A L M S P S o l u t i o n 80 % 33 % 49 % 77 % 24 % 60 % 77 % 21 % 41 % 36 % 66 % 83 % 82 % 83 % 75 % Wy o m i n g ( c o m p a r e d t o M o d i f i e d A c c o r d ) Mo d i f i e d A c c o r d t o R o l l e d I n A d j u s t m e n t 40 % 00 % 64 % 39 % 40 % 32 % 26 % 24 % 28 % 36 % 36 % 27 % 15 % 06 % 51 % Co m p a n y O w n e d H y d r o 03 % -1 . 24 % 21 % -1 . 47 % -1 . 07 % 66 % 18 % 49 % 74 % 05 % 37 % 44 % 40 % 36 % 24 % To t a l M i d C 81 % 09 % 05 % 06 % 08 % 05 % 95 % 75 % 65 % 53 % 54 % 53 % 49 % 46 % 45 % OF s -1 . 06 % -1 . 88 % -1 . 67 % 42 % 25 % 19 % 16 % 16 % 94 % 54 % 50 % -0 . 50 % 50 % 49 % 49 % Se a s o n a l 26 % 08 % 20 % 23 % 27 % -0 . 26 % 19 % 22 % 29 % 0.4 7 % 44 % 36 % 30 % 27 % 22 % TO T A L M S P S o l u t i o n -0 . 09 % 10 % 39 % -1 . 67 % 11 % 74 % -0 . 33 % 10 % 44 % 94 % 32 % 39 % 24 % 12 % 49 % ~Q m P\' ~. ~ ~ S i I: Z ~ . t" ' I .. ~ Z o ' O~ o '" ) 0 - . ~Q ~ r' ~