20060811Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:AUGUST 10,2006
SUBJECT:CASE NO. P AC-06-4 (RATE INCREASE - SCHEDULES 10 400,401)
CASE NO. PAC-06-8 (NU-WEST STIPULATION - SCHEDULE 401)
CASE NO. P AC-06-9 (MONSANTO SERVICE AGREEMENT -
SCHEDULE 400)
PROPOSED SCHEDULING AND HEARING DATES
Background
Pursuant to Commission approved Stipulation in PacifiCorp s 2005 rate case (PAC-
05-, Order No. 29833) PacifiCorp agreed to file a general rate case no later than April 29
2006 to address cost of service issues not resolved in the 2005 Stipulation and to time the
effective date of new rates to coincide with the expiration of the current Monsanto contract
(December 31 2006). The Company s 2006 filing was delayed to permit Company contract
negotiations to proceed with Monsanto. The Company s filings in Case Nos. PAC-06-, 06-
and 06-9 are intended to satisfy its 2005 Stipulation filing commitment.
Applications
On June 21 , 2006, PacifiCorp dba Rocky Mountain Power (PacifiCorp; Company)
filed an Application with the Idaho Public Utilities Commission (Commission) in Case No.
P AC-06-4 requesting authority to implement revised rates in electric tariff Schedules 10
(Irrigation), 400 (Monsanto Company) and 401 (Nu-West Industries). Simultaneous and related
filings are made in Case Nos. PAC-06-8 (Nu-West Stipulation) and PAC-06-9 (Monsanto
Service Agreement). PacifiCorp requests that its filings be processed pursuant to Modified
Procedure. Reference IDAPA 31.01.01.201-204. In a departure from the terms of the existing
Nu-West agreement, Nu-West has agreed by Stipulation to allow for the proposed rate
DECISION MEMORANDUM
adjustment to electric tariff Schedule 401 to be effective September 1 , 2006. PacifiCorp requests
that Nu- West's Application be processed under Modified Procedure under a schedule that will
permit an effective date of September 1 , 2006. In the event that a final Order regarding Nu- West
cannot be issued before September 1 , 2006, PacifiCorp requests that the revised Nu-West
Schedule 401 become effective September 1 , 2006 subject to refund at the time of the
Commission s final Order.
Notices of Application and Intervention Deadline in Case Nos. P AC-06-, P AC-
06-8 and P AC-06-9 were issued on June 30, 2006. Community Action Partnership
Association of Idaho (CAP AI) was the only party to file a Petition to Intervene. CAP AI was
granted intervention in Case No. PAC-06-4. Reference Order No. 30103.
COMMISSION DECISION
Staff continues to be engaged in the examination of the Company s supporting
documentation regarding revenue requirement and cost of service. Staff is also engaged in
continuing audit and discovery. Based on the results of its preliminary investigation, Staff
concurs in the Company s recommendation that the three filings be processed pursuant to
Modified Procedure. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
Staff believes, however, that the three cases need to be processed together and not separately,
, Nu-West. Commission Staff recommends that the requested September 1 2006 for the Nu-
West rate change be authorized subject to refund.
Pursuant to agreement, Staff and Company propose a November 3 , 2006
Staff/Intervenor comment deadline, a November 17, 2006 reply comment deadline, a scheduled
hearing date for the proposed Stipulation of November 28, 2006 and a deadline for intervenor
funding of December 1 , 2006. Does the Commission find Modified Procedure for the three
cases to be reasonable? Does the Commission find a September 1 effective date for changes to
the Nu-West Schedule 401 subject to refund to be acceptable? Does the Commission find the
proposed comment deadline scheduling and proposed hearing date acceptable?
Scott Woodbury
bls/M:P AC-O6-04 _P AC-O6-08 _P AC-O6-09 - sw
DECISION MEMORANDUM