20050617Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. PAC-05-
June 17, 2005
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Parties propose settlement to PacifiCorp rate case
Boise - Parties involved in the PacifiCorp (Utah Power) rate case along with staff from the Idaho
Public Utilities Commission are proposing a settlement that would result in a uniform 1.7 percent
increase for customers.
PacifiCorp originally proposed to increase its annual revenue by $15.1 million, which would
have necessitated a 12.5 percent increase. However, the company also noted that a temporary
surcharge is set to expire at the same time the proposed rate increase would go into effect - Sept.
16 - resulting in a net increase of 9.2 percent to customers.
The proposed settlement grants the company $5.75 million in new revenue, which would raise
base rates by 4.8 percent. However, with the expiration of the surcharge on the same date, the net
increase to customers is 1.7 percent.
The settlement must yet be approved by the commission, which is taking public comment
through July 20. Parties signing the settlement include commission staff, PacifiCorp, the Idaho
Irrigation Pumpers Association, Community Action Partnership of Idaho (representing low-
income customers), J.R. Simp lot Co., Agfium, Inc. and Firth resident Timothy Shurtz.
One party in the case, Monsanto, did not sign the proposed settlement. Monsanto, PacifiCorp
largest customer in its six-state territory, objected to the commission staffs proposed settlement
requirement that large customers who sign contracts with PacifiCorp should be subject to a tariff
standard that requires contract rates to be adjusted when other customer classes get base rate
increases. Other parties to the case also objected to staffs proposed tariff standard for contract
customers, but agreed to neither support nor oppose that portion of the settlement.
The parties did not agree on another issue related to the Monsanto contract. Because Monsanto is
currently under a fixed-price contract through Dec. 31 , 2006, PacifiCorp proposed that its
increased costs of service to Monsanto be allocated only to tariff customers rather than contract
customers. Commission staff and the Idaho Irrigation Pumpers Association opposed this rate
treatment, arguing that increased costs to serving Monsanto should not be spread to the
company s remaining Idaho customers. The issue is not resolved in this proposed settlement, but
the parties agreed to address it when PacifiCorp files its next rate case, expected by no later than
April 29, 2006.
The proposed settlement also requires commission staff and PacifiCorp to initiate discussions
within 30 days to explore alternative rate recovery mechanisms similar to the power cost
adjustment (PCA) process other utilities have. PacifiCorp also agrees to meet with the Idaho
Irrigation Pumpers Association and other interested parties regarding how credits awarded
irrigation customers who participate a load control program are calculated. Parties have until
Sept. 30 to propose a solution.
Finally, the proposed settlement requires PacifiCorp to file revisions to its Low Income
Weatherization Program tariff that will increase customer participation and incentives for
installation of additional cost-effective weatherization measures. The tariff changes will result in
an increase to the amount area Community Action agencies can award in incentives from the
current $100 000 annually to $150 000. The company will also propose to increase the rebate on
weatherization service available for homes with installed electric heat from the current maximum
of$l OOO per dwelling to an average annual rebate of$1 500 per dwelling.
Parties in the case have until July 1 to file testimony and exhibits in support or opposition to the
proposed settlement. Citizens have until Wednesday, July 20, to file written comments.
Comments are accepted via e-mail by accessing the commission s homepage at
www.puc.idaho.gov and clicking on "Comments & Questions." Fill in the case number (PAC-
05-1) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ill
83720-0074 or faxed to [phone]. Comments should also be sent to: John Stewart
PacifiCorp, 201 S. Main St, Suite 2300, Salt Lake City, UT, 84140 or e-mailed to
john. stewart2(fYpacificorp. com
A full text of the commission s notice, along with other documents related to this case, are
available on the commission s Web site at www.puc.idaho.gov. Click on "File Room" and then
on "Electric Cases" and scroll down to Case No. PAC-05-