20070112Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:JANUARY 12,2007
SUBJECT:ACIFICORP DBA ROCKY MOUNT AIN POWER'S APPLICA TION
FOR APPROVAL OF REDUCTIONS IN BP A REGIONAL EXCHANGE
CREDITS, 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.
THE APPLICATION
According to 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 $7.2 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.
DECISION MEMORANDUM
The Company also proposes 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.
The Company has requested that the matter be processed by Modified Procedure
with an effective date of the revised Schedule 34, if approved, of February 15,2007.
ST AFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure with a twenty-one (2l) day comment period. This should allow sufficient time for
interested parties to review the Company s Application and file their comments with the
Commission. Reference Commission Rules of Procedure, IDAP A 31.01.01.201-204.
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented in this case, and that this case is appropriate for
Modified Procedure pursuant to Commission Rules of Procedure 201 through 204?
Does the Commission approve of the recommended comment period?
Cecelia A. GaS'Sner
M:PAC-O7-
DECISION MEMORANDUM