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Home My WebLink About20060907Exhibit 1.pdf~ ~;oo ~OUNTAIN RECEIVED 200& SEP - 1 AM 9: 4 1 201 South Main , Suite 2300 Salt Lake City, Utah 84111 IDAHO PUBLIC UTILITIES COMMISSION September 7, 2006 Idaho Public Utilities Commission 472 West Washington Boise, ID 83702-5983 Attention:Jean D. Jewell Commission Secretary Re:Case No. PAC-06- In the Matter of the Petition ofPacifiCorp to Determine the Appropriate Payment Structure of Schedule 21 PacifiCorp (d.a. Rocky Mountain Power) hereby submits for filing an original and seven copies of Exhibit 1 , replacing the Exhibit 1 originally submitted as a confidential exhibit in the above referenced matter. PacifiCorp has contacted Mr. Brad Purdy, representative for Community Action Partnership Association of Idaho, and both agree that Exhibit 1 does not need to be maintained as confidential. Sincerely, ):) ~7F ~(fA D. Douglas Larson Vice President, Regulation Enclosures cc: Service List Case No. PAC-06- Exhibit No. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION P ACIFICORP Stipulation and Agreement September 2006 STIPULATION AND AGREEMENT This Stipulation and Agreement ("Stipulation ) is entered into by and between PacifiCorp, doing business as Rocky Mountain Power ("PacifiCorp" or the "Company ) and the Community Action Partnership Association ofIdaho ("CAP AI") (collectively referred to as the Parties ) as ofJune 19, 2006. I. INTRODUCTION The terms and conditions of this Stipulation are set forth herein. The Parties agree that this Stipulation represents a fair, just and reasonable compromise of the issues raised between the Parties. TI. BACKGROUND In the Stipulation settling the general rate case filed by the Company in Docket No. P AC-05-, PacifiCorp proposed that certain cost of service issues would be addressed in a general rate case that was anticipated to be filed no later than April 29, 2006. PacifiCorp desires to not file a general rate case in Idaho in 2006 and anticipates making a filing to address certain price changes on a limited basis rather than through a general rate case. If the Idaho Public Utilities Commission (the "Commission ) approves a limited issue application, then the Company will not have the need to file a general rate case in 2006. CAPAl is willing to support PacifiCorp in its approach to avoid the need for a general rate case in 2006. This Stipulation sets forth the terms and conditions under which the Parties agree to be bound with respect to PacifiCorp s approach to a limited issue filing and avoidance of the need to file a general rate case in 2006. In anticipation of executing this Stipulation, representatives ofPacifiCorp and CAPAl have held discussions several times pursuant to IDAPA 31.01.01.271 and engaged in settlement discussions with a view toward resolving the issues raised herein. Based upon the settlement discussions between the Parties, as a compromise of the Parties ' positions on the STIPULA TI ON - Page 1 subjects discussed herein, and for other consideration as set forth below, the Parties agree to the following terms: Ill. TERMS OF THE STIPULATION No later than August 31 , 2006, PacifiCorp shall make a one-time cash contribution of shareholder money often-thousand dollars ($10,000) to each of SouthEastern Idaho Community Action Agency ("SEICAA") and Eastern Idaho Community Action Partnership ("EICAP") (for a total aggregate contribution of twenty-thousand dollars ($20 000)) to be used as funding assistance for the Lend-Hand program for the 2006-2007 heating season. No later than September 1 , 2006, PacifiCorp shall make a formal filing before the Commission to address those issues that PacifiCorp and the MidAmerican Energy Holdings Company agreed to address pursuant to Commitment No. I 13(b) in Docket No. PAC-05- PacifiCorp agrees to provide support for legislation sponsored by CAP AI during the 2007 general Idaho legislative session that would give the Commission authority to approve discount rates for low income customers that are requested by utilities. The Company s support is limited to legislation al1owing: 1) a utility to propose bill discounts on a strictly voluntary basis and subject to Commission approval, and 2) the costs and lost revenue from such discounts to be included in the utility s cost of service to be recovered in rates from other customers. An example of such legislation is attached as Exhibit A to this Stipulation and is subject to modification and approval by the Idaho legislature. The terms of this Stipulation shall not bind the Company to request or agree to establish such a bill discount in Idaho. CAP AI agrees to waive the Company s commitment to file a general rate case per the Stipulation in Case No. PAC-05-1 and will not make any objection to the Company applications seeking rate increases for Monsanto Corp., Nu- West Industries, Inc. and PacifiCorp s irrigation customers. In addition, CAP AI agrees that Commitment No. I 13(b) STIPULA TI ON - Page 2 Docket No. P AC-05-8 will be addressed in the filing referenced in paragraph 5 of this stipulation rather than in a general rate case. The Parties agree that this Stipulation represents a compromise of the positions of the Parties on the issues addressed herein. Other than the above referenced positions and any testimony filed in support ofPacifiCorp s Application and except to the extent necessary for a Party to explain before the Commission, if necessary, its own statements and positions with respect to the Stipulation, al1 negotiations relating to this Stipulation shall not be admissible as evidence in any legal or regulatory proceedings regarding this subject matter. No Party shall be bound, benefited or prejudiced by any position asserted in the negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly waived herein. No findings of fact or conclusions ofJaw other than those stated herein shall be deemed to be implicit in this Stipulation. This Stipulation shall be governed in accordance with the laws ofthe State ofldaho. DATED this 19th day of June, 2006. ~~~~ Mark oench Sr. Vice President and General Counsel PacifiCorp, dba Rocky Mountain Power Community Action Partnership Association::d:5~Brad Purdy Attorney for CAP AI PacifiCorp STIPULATION - Page 3 Stipulation Exhibit A TITLE 61 PUBLIC UTILITY REGULA nON CHAPTER 5 POWERS AND DUTIES OF PUBLIC UTILITIES COMMISSION 61-502c. RATES - LOW-JNCOME CUSTOMERS. Upon request by a water. gas or electric public utility. the Commission may approve rates. charges. services and/or facilities at a discount for the utility s low-income residential customers. Any expenses and lost revenues as a result of these bi11 discounts shan be included in the utility s cost of service and recovered in rates to other customers. For purposes of this provision. the term "low-income" is defined as follows: one hundred-fifth percent (150%) ofthe Poverty Guidelines updated annua))y in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 V.C. 9902(s). No other statute contained within Title 61 shall be construed to prohibit the Commission from approving programs as set forth herein. Stipulation Exhibit A TITLE 61 PUBLIC UTILITY REGULATION CHAPTER 3 DUTIES OF PUBLIC UTILITIES 61-315- DISCRIMINATION AND PREFERENCE PROHIBITED-= EXCEPTION. No public utility shan, as to rates, charges, service, facilities or in any other respect, make or grant any preference or advantage to any corporation or person or subject any corporation or person to any prejudice or disadvantage. No public utility shall establish or maintain any unreasonable difference as to rates, charges, service, facilities or in any other respect, either as between localities or as between classes of service. The commission shan have the power to determine any question of fact arising under this section. Nothing in this provision shan act to prohibit a public utility nom seeking approval for, and operating, low-income residential bi11 discounts pursuant to Idaho Code Section 61-502c. Stipulation Exhibit A TITLE PUBLIC UTILITY REGULATION CHAPTER 5 POWERS AND DUTIES OF PUBLIC UTILITIES COMMISSION 61-502. DETERMINATION OF RATES. Whenever the commission, after a hearing had upon its own motion or upon complaint, shan find that the rates, fares, tolls, rentals charges or classifications, or any of them, demanded, observed, charged or conected by any public utility for any service or product or commodity, or in connection therewith including the rates or fares for excursions or commutation tickets, or that the rules regulations , practices, or contracts or any of them, affecting such rates, fares , tolls rentals, charges or classifications, or any of them, are unjust, unreasonable discriminatory or preferential, or in any wise in violation of any provision of law, or that such rates, fares, tolls, rentals, charges or classifications are insufficient, the commission shall determine the just, reasonable or sufficient rates, fares, tolls, rentals, charges, classifications, rules, regulations, practices or contracts to be thereafter observed and in force and shall fix the same by order as hereinafter provided, and shall, under such rules and regulations as the commission may prescribe, fix the reasonable maximum rates to be charged for water by any public utility coming within the provisions of this act relating to the sale of water. Nothing in this provision shall prohibit the Commission from approving low- income residential bi11 discounts pursuant to Idaho Code Section 61-502c. Stipulation Exhibit A TITLE PUBLIC UTILITY REGULATION CHAPTER 3 DUTIES OF PUBLIC UTILITIES 61-301. CHARGES JUST AND REASONABLE. An charges made, demanded or received by any public utility, or by any two (2) or more public utilities, for any product or commodity furnished or to be furnished or any service rendered or to be rendered shan be just and reasonable. Every unjust or unreasonable charge made demanded or received for such product or commodity or service is hereby prohibited and declared unlawful. Nothing in this provision shall prohibit a public utility from seeking approval for. and operating, low-income residential bill discounts pursuant to Idaho Code Section 61- 502C. CERTIFICATE OF MAILING I HEREBY CERTIFY that on the 7th day of September 2006, I served a true and correct copy of Exhibit 1 Replacement upon the following named parties by the method indicated below and addressed to the following: Brad Purdy Attorney at Law Community Action Partnership Association of Idaho 2019 N. 1 ih Street Boise, ID 83702 Hand Delivered S. Mail Overnight Mail FAX Peggy Regula ' on Department PETITION OF PACIFICORP