20060621Application.pdf

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June 21, 2006 i i
Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
PAc..,E- -0'-
Re:Application ofPacifiCorp dba Rocky Mountain Power
for Approval to Revise Electric Service Schedule Nos. 10 400, and 401
Dear Ms. Jewell:
Please find enclosed for filing an original and 9 copies ofPacifiCorp s Application in the above-
referenced matter, along with nine copies ofPacifiCorp s direct testimony and exhibits. Also
enclosed is a compact disc containing the Application, Direct Testimony, and Exhibits. To the
attention of the Court Reporter is a paper copy of all documents along with a diskette containing
all testimony and exhibits.
PacifiCorp requests that the enclosed application be processed under modified procedure
pursuant to Rule 201 through 204 ofthe Commission s Rules of Procedure. PacifiCorp also
requests that the Application be processed on a schedule that will permit an effective date of
September 1 2006 for revised Schedule No. 401 and an effective date of January 1 2007 for
revised Schedule Nos. 10 and 400. In the event that an order cannot be reached before
September 1 2006, PacifiCorp requests that the revised Schedule No. 401 become effective
September 1 2006 subject to refund at the time ofthe Commission s final order.
Please note that Exhibit 4 included with this Application includes revised tariff sheets containing
the Utah Power Letterhead. As PacifiCorp is still in a transition period to doing business under
the name Rocky Mountain Power the tariff sheets do not yet reflect the new name and logo.
PacifiCorp will revise the name and logo of all tariff sheets during summer 2006 and will
supplement this Application when possible.
All formal correspondence regarding this Application should be addressed to:
Brian Dickman
Dean Brockbank
ACIFICORP
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
Email: brian.dickman~PacifiCorp.com
Email: dean.brockbank~PacifiCorp.com
James M. Van Nostrand
STOEL RIVES LLP
900 SW Fifth Avenue, Suite 2600
Portland, OR 97204
Telephone: [phone]
Fax: [phone]
Email: imvannostrand~stoel.com
Jean D. Jewell
June 21 2006
Page 2
Communications regarding discovery matters, including data requests issued to PacifiCorp,
should be addressed to:
By E-mail (preferred):datareQuest~pacifi corp. com
By Fax:[phone]
By regular mail:Data Request Response Center
PacifiCorp
825 NE Mu1tnomah St., Suite 300
Portland, OR 97232
Informal inquiries may be directed to Brian Dickman, Manager, Idaho Regulatory Affairs at
[phone].
Thank you for your assistance with this filing.
Very truly yours
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D. Douglas Larson
Vice President, Regulation
cc:Service List
Enclosures
Mark C. Moench
Senior Vice President and General Counsel
PacifiCorp, dba Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF PACIFICORP DBA
ROCKY MOUNTAIN POWER FOR
APPROV AL TO REVISE ELECTRIC
SERVICE SCHEDULE NOS. 10 400AND 401
CASE NO. PAC-OL/
APPLICA TION AND
STIPULA TION
PacifiCorp, dba Rocky Mountain Power ("PacifiCorp" or "the Company ) hereby
applies to the Commission for approval of proposed changes to the Company s Electric
Service Schedule Nos. 10, 400, and 401 submitted herewith. In support of this Application
PacifiCorp states as follows:
PacifiCorp is authorized to do and is doing business in the state of Idaho.
PacifiCorp provides retail electric service to approximately 64 000 customers in the state of
Idaho and, as to such service, is subject to the jurisdiction of the Commission.
Communications regarding this Application should be addressed to:
Brian Dickman
Dean Brockbank
ACIFICORP
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
Email: brian.dickman(Q),paci ficorp.com
Emai1: dean.brockbank(ip,pacifiCorp.com
and to:
APPLICA nON OF ACIFICORP - Page
James M. Van Nostrand
STOEL RIVES LLP
900 SW Fifth Avenue, Suite 2600
Portland, OR 97204
Telephone: [phone]
Fax: [phone]
Emai1: jmvannostrand(i!2stoel.com
Communications regarding discovery matters, including data requests issued to PacifiCorp,
should be addressed to:
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 300
Portland, OR 97232
Email: datareQuest(i!2pacificorp.com
Informal inquiries may be directed to Brian Dickman, Manager, Idaho Regulatory Affairs at
[phone].
PacifiCorp s proposed revised tariff schedules, which are filed with this
Application, would result in a net increase of $8.25 million, or 5.1 %, in prices for the
Company s Idaho retail customers under Schedule Nos. 10 400, and 401. The revised tariff
Schedule Nos. 10 and 400 reflect a proposed effective date of January 1 , 2007, and revised
tariff Schedule No. 401 reflects a proposed effective date of September 1, 2006.
This proposed increase is based upon normalized results of operations for the
test period ending September 30, 2005, with known and measurable changes. These
normalized test period results show that PacifiCorp is currently earning a normalized return
on equity (ROE) of5.75 percent. This is significantly below the Company s last authorized
rate of return, and well below the rate of return generally allowed currently for public utilities
in Idaho. Based on the Company s target rate of return, an increase of$19.35 million would
be warranted at the 5.75% earnings level. Without the requested increase in revenues, it will
be increasingly difficult for PacifiCorp to access capital markets to obtain the funds
necessary to maintain its utility infrastructure and continue to provide safe, reliable power to
its Idaho customers.
APPLICATION OF PACIFICORP - Page 2
PacifiCorp s application consists ofthe testimony and exhibits of one
Company witness and a signed Stipulation between the Company and the Idaho Irrigation
Pumpers Association, Inc. ("lIP A"
).
Company witness Jeffrey K. Larsen will present an
overview of the Company s application and support for the simultaneous Stipulation signed
by the Company and lIP A. Mr. Larsen will also provide exhibits supporting the proposed
rate increase and describe the efforts made by the Company to reach agreement with the
affected parties. u, ... n ~~
The Company respectfully submits that it is in the public interest that the
Commission allow PacifiCorp to implement the proposed electric service schedules as filed.
PacifiCorp requests that this Application be processed under modified
procedure pursuant to Rules 201 through 204 of the Commission s Rules of Procedure.
In accordance with Commission Rule 121 (d), PacifiCorp represents that it
stands ready for immediate consideration of this Application.
WHEREFORE, PacifiCorp respectfully requests that a final order be issued
approving PacifiCorp s proposed electric service schedules.
DATED this 2151 day of June, 2006.
Respectfully submitted
Nf?~ ~MarK C. Moenc
Senior Vice President and General Counsel
PacifiCorp, dba Rocky Mountain Power
APPLICATION'OF PACIFICORP - Page 3
CERTIFICATE OF SERVICE
I hereby certify that on this 20th day of June, 2006, I caused to be served, via u.S.
mail, a true and correct copy of the foregoing document to the following:
Eric L. Olsen
RACINE, OLSON, NYE, BUDGE
& BAILEY
201 E. Center
O. Box 1391
Pocatello, Idaho 83204
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Peggy R
Supervi r, Regulatory Administration
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CERTIFICATE OF SERVICE-