20041104Joint Motion for Settlement.pdf

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SCOTT D. WOODBURY (ISB NO. 1895)
DEPUTY ATTORNEYS GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
TELE: [phone]
FAX: [phone]
20n4 NOV -4 ~Li;l 9:
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LiT It. IT! ES COr"ir'11S SIGN
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorneys for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF INTER-JURISDICTIONAL ISSUES
AFFECTING P ACIFICORP DBA UTAHPOWER & LIGHT COMPANY
CASE NO. P AC-O2-
JOINT MOTION FOR
ACCEPT ANCE OF
SE TTLEMENT
COMES NOW PacifiCorp dba Utah Power & Light Company (PacifiCorp;
Company) and Staff of the Idaho Public Utilities Commission (Staff) and in accordance with
IPUC Rules of Procedure 56 and 271-280, hereby move the Idaho Public Utilities Commission
(Commission) for an Order accepting the settlement negotiated by PacifiCorp, Staff, Monsanto
Company and AARP, herein collectively referred to as the Parties, as embodied in the
Stipulation and Agreement (Stipulation) attached to this Motion as Appendix 1. This Motion is
based on the following:
1. On March 5 , 2002, PacifiCorp petitioned the Idaho Public Utilities 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. P AC-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 9 61-505) and
established initial MSP scheduling (Idaho Code 9 61-501).
JOINT MOTION FOR
ACCEPTANCE OF SETTLEMENT
On September 30, 2003 , PacifiCorp filed direct testimony in this docket seeking
Commission ratification of a Protocol that resolved inter-jurisdictional cost allocation issues
facing the Company which have been the subject of the multi-state process. 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.
On July 14, 2004, PacifiCorp filed a Revised Protocol with the Commission together
with supporting supplemental testimony. The Revised Protocol has also been filed in Oregon
Utah, and Wyoming.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.
the near term through 2008, the Revised Protocol methodology results in a 2% higher revenue
requirement to Idaho than under Rolled In, an alternate allocation methodology that Idaho Staff
would favor in the absence of agreement to the Revised Protocol. However, the long-term
results are more favorable because future hydro relicensing costs will be assigned directly to the
Pacific Power & Light states, primarily Washington and Oregon. In addition, customers will
continue to benefit from the efficiencies of PacifiCorp s integrated six-state system while
PacifiCorp will be provided greater certainty for recovery of its prudently incurred costs
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.
JOINT MOTION FOR
ACCEPTANCE OF SETTLEMENT
2. On August 16, 2004 pursuant to letter notice issued in accordance with Rule 272
of the Commission s Rules of Procedure, Staff apprised the Parties of Record of its to intent to
enter into active settlement negotiations with PacifiCorp. All Parties of Record were invited to
participate.
3. Public workshops for PacifiCorp customers in eastern Idaho were held in Preston
Idaho on October 4 2004 and in Rexburg, Idaho on October 5, 2004. At the workshops
Commission Staff presented a summary of the Company s Petition, MSP, Revised Protocol and
discussed its participation in settlement negotiations.
4. The Parties negotiated the Stipulation and Agreement as an integrated settlement
document wherein the parties express their support of the inter-jurisdictional cost allocation
methods embodied in the Revised Protocol as a means of achieving consistent allocation
methods in the jurisdictional states served by PacifiCorp. Included in the Stipulation are rate
mitigation measures intended to apply to calculations of the Company s Idaho revenue
requirement for any PacifiCorp rate filing made through March 31 , 2009. The parties request
that the Stipulation be entered into the record as evidence in this proceeding. The parties agree
that the Stipulation and rate mitigation mechanism is in the public interest and that all of the
terms of the Stipulation are fair, just and reasonable. The parties support adoption of the
Stipulation and acceptance of the Stipulation and rate mitigation mechanism by the Commission
with the intention that the Commission approve its use in Idaho by PacifiCorp of the Revised
Protocol for purposes of inter-jurisdictional allocation of the Company s costs and Idaho results
of operations in future regulatory proceedings.
5. PacifiCorp and Staff request that the Commission process this Motion pursuant to
Modified Procedure, i., by written submission rather than by hearing. Reference Commission
Rules of Procedure, IDAPA 31.01.01.201-204. If the Commission desires testimony in support
of this Motion and the Settlement between the Parties, the Parties are willing to provide such
testimony on very short notice.
NOW THEREFORE, PacifiCorp and the Staff request that the Commission issue its
Order (1) ordering that this Motion be processed under Modified Procedure and (2) accepting the
Stipulation and Agreement as full settlement of the inter-jurisdictional issues affecting
PacifiCorp raised in Idaho Commission investigatory docket No. P AC-02-
JOINT MOTION FOR
ACCEPT ANCE OF SETTLEMENT
Respectfully submitted this 5th day of November 2004.
George M. oway
Stoel Rives LLP
Attorney for PacifiCorp
bls/N:P ACEO203 sw Motion2
JOINT MOTION FOR
ACCEPTANCE OF SETTLEMENT
Scott D. Woodbury
Deputy Attorney General
Idaho Public Utilities Commission Staff