The URL can be used to link to this page

Home My WebLink About20060428Application.pdfr, , : ' .' c: ~ .: ". Pacific Power I Utah Power Rocky Mountain Power 825 NE Multnomah Portland. Oregon 97232 ~~~!fI~9J~P , , c., -' April 28, 2006 ;;:~:~;i~:Uil, ::;~::' Idaho Public Utilities Commission 472 West Washington Boise, ill 83702-5983 PAC B- - Attention:Jean D. Jewell Commission Secretary Re:In the Matter of the Application ofPacifiCorp for a Deferred Accounting Order to Defer the Rate Credits in Commitments 127 and 131 PacifiCorp (d.a. Rocky Mountain Power) hereby submits for filing an original and eight copies of its Application of PacifiCorp for a Deferred Accounting Order to Defer the Rate Credits in Commitments 127 and 131 related to the merger of MidAmerican Energy Holdings Company and PacifiCorp. Service of pleadings, exhibits, orders and other documents relating to this proceeding should be served on the following: Dean Brockbank PacifiCorp 201 South Main Street, Suite 2200 Salt Lake City, UT 84111 dean. brockbank~pac ificorp. com Brian Dickman PacifiCorp 201 South Main Street, Suite 2300 Salt Lake City, UT 84111 brian. di ckman~pac ifi corp. com It is respectfully requested that all formal correspondence and Staff requests regarding this material be addressed to: Bye-mail (preferred):datareq uest~pac ificorp. com By regular mail:Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 300 Portland, Oregon, 97232 By fax:(503) 813-6060 Sinc ~: P A ::tD~"A I\ . D. Douglas Larson Vice President, Regulation Enclosures Dean S. Brockbank PacifiCorp 201 South Main Street, Suite 2200 Salt Lake City, UT 84111 Telephone: (801) 220-4568 Fax: (801) 220-3299 Email: dean.brockbank~pacificorp.com Attorneys for PacifiCorp dba Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION) OF P ACIFICORP FOR A DEFERRED ACCOUNTING ORDER TO DEFER THE RATE CREDITS IN COMMITMENTS 127 )~D 01 CASE NO. P AC-O6- c0 APPLICATION Pursuant to Idaho Code 961-524 and Procedural Rule 52, PacifiCorp d/b/a Rocky Mountain Power ("PacifiCorp" or the "Company ) applies to the Idaho Public Utilities Commission ("IPUC" or the "Commission ) for an order authorizing the Company to defer certain rate credits associated with MidAmerican Energy Holdings Company s ("MidAmerican acquisition ofPacifiCorp. In support of this Application, PacifiCorp states as follows: PacifiCorp is an electrical corporation and public utility in the state ofldaho and is subject to the jurisdiction of the Commission with regard to its public utility operations. PacifiCorp also provides retail electricity service in the states of California, Utah, Oregon Washington and Wyoming. This Application is filed pursuant to Idaho Code 961-524, which authorizes the Commission to prescribe the accounting to be used by any public utility subject to its jurisdiction. APPLICATION OF PACIFICORP Communications regarding this Application should be addressed to: Dean S. Brockbank Sf. Counsel Rocky Mountain Power 201 South Main Street, Suite 2200 Salt Lake City, UT 84111 Tel: (801) 220-4568 Fax: (801) 220-3299 dean. brockbank~pacificorp. com Brian Dickman Manager, Idaho Regulatory Affairs Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, UT 84111 Tel: (801) 220-4975 brian. dickman~P acifi Corp. com In addition, it is respectfully requested that all formal correspondence and Staff requests regarding this material be addressed to: Bye-mail (preferred) By regular mail datarequest((ypacificorp. com Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 300 Portland, OR 97232 By facsimile (503) 813-6060 In its March 14 2006 Order in Docket No. P AC-05-8 (Order No. 29998), the Commission attached and incorporated into its Order a list of final Idaho commitments including commitments I 27 and I 31. In commitment I 27, MidAmerican and PacifiCorp commit to reduce the annual non-fuel costs ofthe West Valley lease by $417 000 per month total company and to provide, subject to the offset provisions of the commitment, a total company rate credit in that amount. Commitment I 27 also provides that: "Beginning with the first month after the close of the transaction to purchase PacifiCorp, Idaho s share of the monthly rate credit will be deferred for the benefit of customers and accrue interest at PacifiCorp s authorized rate of return." In commitment I 31 , MidAmerican and PacifiCorp commit to reduce the total company administrative and general costs by $500 000 per month and to provide, subject to the offset provisions of the commitment, a total company rate credit in that amount. Commitment I 31 also APPLICATION OF PACIFICORP provides that: "Beginning with the first month after the close of the transaction, Idaho s share of the $.5 million monthly rate credit will be deferred for the benefit of customers and accrue interest at PacifiCorp s authorized rate of return. Subject to the Commission s authorization, PacifiCorp proposes to defer the rate credits as of April 1 , 2006, the beginning of the first month after the close of the MidAmerican acquisition ofPacifiCorp, for future incorporation in PacifiCorp s rates. The amount of the deferred account related to the West Valley lease will be $417 000 monthly on a total company basis and will be allocated among the states based upon the SSGCT allocation factor for the twelve months ending March 31 , 2006. The amount of the deferred account related to the administrative and general cost savings will be $500 000 monthly on a total company basis and will be allocated among the states based upon the SO allocation factor for the twelve months ending March 31 , 2006. PacifiCorp proposes to account for these rate credits in the following manner: amounts related to the West Valley lease savings and administrative and general cost savings will be charged to Account 400, Operating Revenues, with the credit being recorded in Account 254, Other Regulatory Liabilities. The amortization of the balances would be accomplished by debiting Account 254 and crediting Account 400, Operating Revenues. PacifiCorp will accrue interest expense on the unamortized balance at a rate equal to its weighted average cost of capital most recently approved by the Commission. PacifiCorp does not request a determination of rate making treatment of these rate credits at this time and instead proposes to address issues associated with these rate credits in PacifiCorp s next general rate case application. WHEREFORE, PacifiCorp respectfully requests that, in accordance with Idaho Code APPLICATION OF P ACIFICORP 961-527, the Commission issue an order authorizing the Company to defer, commencing as of April 1 , 2006, the rate credits described in this Application. Respectfully submitted this 28th day of April, 2006. Dean Brockbank Attorney for PacifiCorp APPLICATION OF PACIFICORP