20040505Notice of Application Order No 29489.pdf

Office of the Secretary
Service Date
May 5, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP DBA UTAH POWER &
LIGHT COMPANY FOR APPROVAL OF
REDUCTIONS IN BONNEVILLE POWER
ADMINISTRATION REGIONAL
EXCHANGE CREDITS.
CASE NO. P AC-O4-
NOTICE OF APPLICATION
NOTICE OF CONSOLIDATION
WITH CASE NO. P AC-O3-
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF
COMMENT /PROTEST
DEADLINE
ORDER NO. 29489
YOU ARE HEREBY NOTIFIED that on April 21 , 2004, PacifiCorp dba Utah Power
& Light Company (PacifiCorp; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) for approval of reductions in the Bonneville Power Administration
(BPA) regional exchange credits. The proposed revisions to the Company s electric Schedule 34
will revise the kilowatt hour credit adjustment for all qualifying kilowatt hours of residential
and/or farm use.
As a regional utility, PacifiCorp is entitled to participate in the Residential Exchange
Program (REP), which extends the benefits of low-cost federal power to residential and small
farm consumers served by investor-owned utilities in the region. Section 5c of the Northwest
Power Act, 16 Uo C. ~ 839(c). The REP is administered by the Bonneville Power
Administration. In 2000, BPA offered the region s investor-owned utilities the option
entering into a settlement of the REP (REP Settlement) in lieu of the traditional REP. All the
regions' investor-owned utilities , including PacifiCorp, entered into the REP Settlement.
NOTICE OF APPLICATION
NOTICE OF CONSOLIDATION
WITH CASE NO. PAC-O3-
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29489
Upon initiation of the REP program, and as required by the REP Settlement, the
Company established balancing accounts, tracking the differences in the program credits
provided to the Company s customers and the monetary payments received from BPA pursuant
to the REP Settlement. As of September 2003 , the Idaho balancing accounting showed a deficit
of $5.7 million (i., PacifiCorp paid out $5.7 million more in benefits to Idaho residential and
small fann customers than PacifiCorp had received from BP A).
Following discussions with the Commission Staff, the Idaho Irrigation Pumpers
Association, and irrigation customers, the Company decided to seek Commission authorization
to correct the deficit in the BP A balancing account in a manner that would ease the customer
impact of elimination of the deficit. PacifiCorp proposes to reduce the BP A credit by one-third
of the $5.7 million, thereby recovering the negative balance over a three-year period.
Additionally, the credit is being reduced to match the level of the annual credit received from
BP A with the annual credit passed on to Idaho residential and small fann customers. This
reduces the credit by an additional $597 000 per year. The proposed annual reduction for a
three-year period would therefore total $2,496 000 ($1 899 000 plus $597 000). Additional
adjustments to the BP A credit may be necessary in order to achieve the targeted zero balance in
the BP A balancing account by September 30, 2006.
PacifiCorp in its filing submits the following exhibits providing additional support for
the relief requested:
a. Application Table A: Table A shows the net impact by rate schedule of
the proposed revision to Schedule 34 including the expiration of the
power cost surcharge (Schedule 93) and the implementation ofthe year 3
rate mitigation adjustment (Schedule 94);
b. Application Table B: Table B reflects the calculation of proposed
Schedule 34 based on nonnalized 12 months ended March 31 , 2003;
Application Table C: Table C is a balancing account study reflecting the
Company s BPA balancing account history for fiscal year 2002-2003.
The Table shows the $5.7 million deficit as of September 2003; and
d. Application Table D: Table D reflects the Company s Schedule 34 and
shows the proposed tariff changes.
NOTICE OF APPLICATION
NOTICE OF CONSOLIDATION
WITH CASE NO. P AC-O3-
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29489
PacifiCorp requests that the proposed reduction to the Schedule 34 BP A credit be
effective on June 8, 20040 The Company requests that the Commission enter an Order
authorizing the reduction of the Schedule 34 BP A credit by an annual amount of $2 496 000 for
a three-year period, in order to eliminate the $5.7 million deficit currently reflected in the
Company s balancing account and to further reflect the net effect of the annual credit received
from BP A with the annual credit passed on to Idaho residential and small fann customers.
PacifiCorp s Motion to Consolidate Case Nos. PAC-O3-5 and PAC-O4-
PacifiCorp in its Application moves to consolidate its filing in Case No. PAC-04-
with the currently pending PacifiCorp Case No. PAC-03-5. The Company s PAC-03-
filing is a Company request to recover additional federal and state tax payments made pursuant
to IRS audit. A consolidation of the two cases would allow implementation of the net effect of
the two referenced dockets at the same time.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. PAC-04-2. The Commission has preliminarily found that the public
interest in this matter may not require a hearing to consider the issues presented, and that the
issues raised by the Company s filing may be processed under Modified Procedure, Le., by
written submission rather than by hearing. Reference Commission Rules of Procedure
IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission finds it administratively
reasonable and in the public interest to consolidate the Company s filing in Case No. PAC-04-
2 with the currently pending PacifiCorp Case No. P AC-03-
YOU ARE FURTHER NOTIFIED that Commission Staff has apprised the
Commission of its intent to continue working with the Company and the parties of record in Case
No. P AC-03-5 to develop a comprehensive settlement addressing all of the rate and cost
recovery issues incorporated in Case Nos. PAC-03-5 and PAC-04-2. Reference IDAPA
31.01.01.271-279. Staff expects that a settlement agreement will be submitted to the
Commission no later than May 19, 2004. If a settlement is acceptable to the Commission, rate
changes reflected in both dockets would be effective June 8 , 2004.
NOTICE OF APPLICATION
NOTICE OF CONSOLIDATION
WITH CASE NO. PAC-O3-
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29489
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to PacifiCorp s Application in Case No. P AC-04-, the consolidation of
Case Nos. PAC-04-2 and PAC-03-, and the use of Modified Procedure in Case No. PAC-
04-2 is Thursday, May 20, 2004. The Commission notes that the Modified Procedure
comment deadline in Case No. P AC-03-5 was April 30, 2004.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
enter its Order without a fonnal hearing. If comments or protests are filed within the deadline
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
No. P AC-04-2 and the procedural matters set forth in this Notice should be mailed to the
Commission and the Company at the addresses reflected below.
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
BOB LIVELY
P ACIFICORP
201 S. MAIN STREET, SUITE 2300
SALT LAKE CITY, UT 84140
E-mail: bob.1ivelyCli),PacifiCorp.com
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983
JAMES C. PAINE
STOEL RIVES LLP
900 SW 5TH A VENUE, SUITE 2600
PORTLAND, OR 97204-1268
E-mail: jcpaineCli),stoel.com
All comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment fonn, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail addresses listed
above.
NOTICE OF APPLICA nON
NOTICE OF CONSOLIDATION
WITH CASE NO. P AC-O3-
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29489
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a fonnal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for fonnal
hearing.
YOU ARE FURTHER NOTIFIED that the Application in Case Noo PAC-04-2 may
be viewed at 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
Commission, 472 West Washington Street, Boise, Idaho and at the Idaho offices of PacifiCorp
dba Utah Power & Light Company.
ORDER
In consideration of the foregoing and as more particularly set forth above, IT IS
HEREBY ORDERED and the Commission does hereby consolidate Case Nos. P AC-04-2 and
PAC-03-
IT IS FURTHER ORDERED and the Commission does hereby adopt the foregoing
procedure and scheduling.
NOTICE OF APPLICATION
NOTICE OF CONSOLIDATION
WITH CASE NO. P AC-O3-
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29489
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 5-M
day of May 2004.
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
00d1
C mmission Secretary
bls/O:P ACE0402 sw
NOTICE OF APPLICATION
NOTICE OF CONSOLIDATION
WITH CASE NO. PAC-O3-
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29489