20070215final_order_no_30248.pdf

Office of the Secretary
Service Date
Febraury 15 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP DBA
ROCKY MOUNTAIN POWER'
APPLICATION FOR APPROVAL OF
REDUCTIONS IN BONNEVILLE POWER
ADMINISTRATION REGIONAL
EXCHANGE CREDITS
ORDER NO. 30248
CASE NO. P AC-07-
On January 4, 2007, PacifiCorp dba Rocky Mountain Power (RMP or "Company
filed an Application with the Commission for approval of a revised Electric Service Schedule
No. 34, which would reflect a reduction in Bonneville Power Administration (BP A) regional
exchange credits. This Commission has the jurisdiction over such request pursuant to Idaho
Code 99 61-301 , 61-307, 61-622 and 61-623.
On January 19, 2007, the Commission issued a Notice of Application and Modified
Procedure, soliciting comments from interested parties. Order No. 30222. The only comments
received were submitted by the Commission Staff. On February 13 2007, the Company filed an
amendment to the Application, seeking an effective date of February 16, 2007 instead of
February 15 2007.
THE APPLICATION
RMP participates in the Residential Exchange Program (REP) administered by the
BP A. RMP established and maintained accounts to monitor the differences in the program
credits provided to the Company s customers and the payments received from BP A. The
Company states that as of October 2006, its Idaho balancing account showed a surplus of $7.
million; that is, RMP paid out $7.2 million less in benefits to its Idaho residential and small farm
customers than it had received from the BP A.
RMP has recently engaged in negotiations with BP A for the calculation of REP
credits effective October 1 , 2006 through September 30, 2011. Through these negotiations, the
REP benefits passed on to RMP customers are less than benefits received under the parties' prior
five-year agreement. The Company is proposing a reduction to the Schedule 34 credit amount to
reflect the change in the net credit received from BP A to pass on to RMP customers. Further
RMP proposes to apply $1 million from the existing Idaho balancing account toward the change
in the 2007 BP A credit to help moderate it.
ORDER NO. 30248
The Company proposed that certain long-term care facilities served by it be eligible
to receive REP benefits. These facilities would include those where the average patient stay is
longer than 30 days, but not include those care facilities that provide full medical care similar to
hospitals or medical clinics.
STAFF COMMENTS
According to Staff calculations, the proposed credits will decrease from $0.019216 to
$0.016757 per kilowatt-hour for non-irrigation customers under Schedule Nos. 1 , 6A, 7A, 23A
35A, 36, 19 with 6A, 19 with 23A, and 19 with 35A. As proposed, credits to irrigation
customers under Schedule 10 would be reduced from $0.031546 to $0.026415 per kilowatt-hour.
Using a growth rate of 1 %, Staffs analysis showed the surplus in the Idaho balancing
account will likely be reduced to just over $1 million at the expiration of the Agreement in 2011
at normalized consumption levels. Staff believes that the REP rates proposed by the Company
for qualified non-irrigation and irrigation customers are reasonable. Staff anticipated that the
surplus existing in the Idaho balancing account will be appropriately reduced, approaching zero
over the term of the Agreement.
Staff also reviewed the Company s proposal to include certain long-term care
facilities as entities eligible for REP credits. According to BPA's Customer Load Eligibility
Guidelines, the loads associated with nursing homes are eligible to receive the REP credit.
Long-term care facilities such as nursing homes are eligible for REP credits when the average
length of stay is 30 days or longer and the facility does not provide full medical care similar to
the medical facilities, equipment and staff normally provided by hospitals, clinics, or similar
institutions. The loads associated with hospitals are ineligible to receive REP credits.
Staff noted that the Company has identified 17 long-term facilities that qualify for
REP credits. The overall impact of including these facilities in the allocation of REP benefits to
all other customers is minimal. Staff recommended the Company include the pass-through of
REP benefits to qualifying long-term facilities in accordance with BP A's Customer Load
Eligibility Guidelines.
FINDINGS AND CONCLUSIONS OF LAW
The Commission has jurisdiction over PacifiCorp dba Rocky Mountain Power, an
electric utility pursuant to the authority and power granted under Title 61 of the Idaho Code and
ORDER NO. 30248
the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq. We find that we have
jurisdiction over this matter pursuant to Idaho Code 99 61-301
, -
307
, -
622 and -623.
We find that the Company s proposal for the reduction in REP credits is reasonable.
With the application of $1 million from the existing Idaho balancing account, the reduction in the
credits should be moderated. We find that an attempt to accelerate reduction in the surplus
balance could actually cause balancing account deficits requiring offsetting credit reductions.
Should the balance grow larger during the five-year period or fail to decline as quickly as
anticipated, we may revisit this matter to consider modification of the REP to better assure that
all appropriate benefits are received by customers in a timely manner. In addition, we find it
reasonable for the Company to provide the Commission with annual statements showing
payments made by the Company to its customers and Idaho account balances on a monthly basis
in order to monitor the health of the Idaho accounts. We further find that it is reasonable to
extend the REP benefits to long-term care facilities.
ORDER
IT IS HEREBY ORDERED that the Application ofPacifiCorp dba Rocky Mountain
Power for a modification to its Schedule 34 to reflect a reduction in credits from Bonneville
Power Agency is approved. The Company is directed to file a revised Schedule 34 reflecting the
change in credits. The effective date of the revised Schedule 34 is February 16 2007.
IT IS FURTHER ORDERED that the Company shall provide the Commission with
an annual statement showing payments made by the Company and Idaho account balances on a
monthly basis.
IT IS FURTHER ORDERED that qualifying long-term care facilities shall be
eligible to receive Residential Exchange Program benefits.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. PAC-07-
01 may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this case. Within seven (7) days after any person has petitioned for reconsideration, any other
person may cross-petition for reconsideration. See Idaho Code 9 61-626.
ORDER NO. 30248
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this IS1'/..
day of February 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Ie D. Jewe
Co mission Secretary
O:PAC-07-cg2
ORDER NO. 30248