20040914Notice of Public Workshops.pdf

Office of the Secretary
Service Date
September 14, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF INTER-JURISDICTIONAL ISSUES
AFFECTING PACIFICORP DBA UTAHPOWER & LIGHT COMPANY
CASE NO. P AC-02-
NOTICE OF 2003 "PROTOCOL"
NOTICE OF 2004
REVISED PROTOCOL"
NOTICE OF PUBLIC
WORKSHOPS
On March 5, 2002, PacifiCorp dba Utah Power & Light Company (PacifiCorp;
Company) petitioned the Idaho Public Utilities Commission (Commission) to initiate an
investigation of inter-jurisdictional issues affecting the Company as a consequence of its status
as a multi-jurisdictional utility subject to the jurisdiction of six state regulatory Commissions.
By Order No. 28978 in Case No. PAC-02-, the Commission established a docket for
investigation, established an intervention deadline and approved a joint Multi-State Process
(MSP) for analyzing PacifiCorp inter-jurisdictional issues (Idaho Code g 61-505) and established
initial MSP scheduling (Idaho Code g 61-501).
YOU ARE HEREBY NOTIFIED that on September 30, 2003, PacifiCorp filed a
Motion, direct testimony and exhibits in this docket seeking Commission ratification of an Inter-
jurisdictional Cost Allocation Protocol (Protocol). The filed Protocol is the culmination of an
extended series of Multi-State Process (MSP) meetings, technical workshops and telephone
conferences. MSP meetings were attended by representatives of some 18 entities from the States
of Utah, Oregon, Wyoming, Washington and Idaho. Participants included representatives of
State Commission policy staffs, advocacy staffs, industrial customers and consumer groups. The
Company s filing in Idaho was identical to contemporaneous filings made with Commissions in
Utah, Oregon and Wyoming.
As reflected in the Company s September 30 filing, PacifiCorp was encouraged by
MSP participants to develop and file a specific proposal for resolving MSP issues consistent with
NOTICE OF 2003 "PROTOCOL"
NOTICE OF 2004 "REVISED PROTOCOL"
NOTICE OF PUBLIC WORKSHOPS
the results of the analyses that have been conducted and responsive to the views expressed by
MSP participants.
The Protocol filed by PacifiCorp is the Company s "MSP solution." The Protocol
describes how PacifiCorp s generation, transmission and distribution costs will be allocated or
assigned to PacifiCorp s six retail jurisdictions. The Protocol also describes mechanisms for
ensuring continued dialogue among interested parties regarding PacifiCorp inter-jurisdictional
cost allocation issues and procedures, and for resolving concerns and inconsistent policies that
may arise among the Company s state jurisdictions in the future.
PacifiCorp anticipates that ratification of the Protocol will resolve current differences
among PacifiCorp s retail jurisdictions concerning needed new resources and cost allocation
methods. PacifiCorp contends that ratification will provide the Company assurance that it will
have a reasonable opportunity to recover prudent investments in new generation and
transmission facilities and required improvements to existing facilities. This, in turn, it states
will ensure that the Company s customers continue to receive safe and reliable electricity service
at reasonable prices.
Since the Company s September 2003 filing there have been numerous meetings
during which the Company has received input from interested parties and where an attempt has
been made to achieve a consensus solution to MSP issues. The Idaho Commission Staff has
been an active participant in these discussions. While full consensus has not been achieved
substantial progress has been made.
YOU ARE FURTHER NOTIFIED that on July 14 2004, PacifiCorp filed a Revised
Protocol and Supplemental Testimony in Case No. P AC-02-3. The Revised Protocol has also
been filed in Oregon, Utah, Wyoming and Idaho. In Washington, PacifiCorp filed the Protocol
method as part of the Company s rate case in that state and submitted in rebuttal testimony the
Revised Protocol. In the near term through 2008, the Revised Protocol methodology results in
cost shifts in the 2% per year range to Idaho. However, the long-term results are more favorable
because future hydro relicensing costs will be assigned directly to the Pacific Power & Light
states, Washington and Oregon.
NOTICE OF 2003 "PROTOCOL"
NOTICE OF 2004 "REVISED PROTOCOL"
NOTICE OF PUBLIC WORKSHOPS
Key elements of the Revised Protocol are: a hydro endowment reflecting the cost
difference of hydro-electric resources and certain contracts attributed to the former Pacific Power
and Light states; an assignment recognizing the cost difference of state-specific qualifying
facilities; and an allocation for seasonally specific resources. All other resources will continue to
be allocated based on the peak and energy requirements of each state on the integrated system.
In addition, the Revised Protocol addresses treatment of a number of items and
potential situations including: (i) refunctionalization and allocation of transmission costs and
revenues , (ii) treatment of the costs of special contracts , (iii) means of accounting for and
accommodating state specific policies, such as direct access, and (iv) the process and
infrastructure for resolving issues in order to further secure the sustainability of the allocation
methodology in the future.
YOU ARE FURTHER NOTIFIED that Commission Staff will hold a Public
Workshop for Utah Power & Light customers on MONDAY, OCTOBER 4, 2004, AT 7:00
M. AT THE ROBINSON BUILDING, 186 WEST SECOND NORTH, PRESTON,
IDAHO (GQID 852-1050)At this meeting customers will have an opportunity to hear from
Commission Staff regarding the Company s Application in Case No. P AC-02-, the Revised
Protocol and Staffs participation in settlement discussions. IDAPA 31.01.01.273. Customers
will have an opportunity to ask questions of Staff and Company representatives.
YOU ARE FURTHER NOTIFIED that the Commission Staff will hold a second
Public Workshop for Utah Power & Light customers on TUESDAY, OCTOBER 5,2004 AT
7:00 P.M. AT THE BEST WESTERN COTTONTREE INN, 450 WEST FOURTH
SOUTH, REXBURG, IDAHO (GQID 356-4646)At this meeting customers will have an
opportunity to hear from Commission Staff regarding the Company s Application in Case No.
P AC-02-, the Revised Protocol and Staffs participation in settlement discussions. IDAP A
31.01.01.273. Customers will have an opportunity to ask questions of Staff and Company
representatives.
YOU ARE FURTHER NOTIFIED that the Application in Case No. PAC-02-3 and
the Company s submitted Inter-Jurisdictional Cost Allocation Protocol with proposed revisions
may be viewed on the Commission s website www.puc.state.id., by clicking on "File Room
and "Electric Cases " or can be viewed during regular business hours at the Idaho Public Utilities
NOTICE OF 2003 "PROTOCOL"
NOTICE OF 2004 "REVISED PROTOCOL"
NOTICE OF PUBLIC WORKSHOPS
Commission, 472 West Washington Street, Boise, Idaho and at the Idaho offices of PacifiCorp
dba Utah Power & Light Company.
DATED at Boise, Idaho this Lfr day of September 2004.
bls/N:P ACEO203 sw
NOTICE OF 2003 "PROTOCOL"
NOTICE OF 2004 "REVISED PROTOCOL"
NOTICE OF PUBLIC WORKSHOPS