20070629notice_of_application_order_no_30356.pdf

Office of the Secretary
Service Date
June 29, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROVAL OF CHANGES TO
ITS ELECTRIC SERVICE SCHEDULES
CASE NO. P AC-07-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30356
On June 8, 2007, PacifiCorp dba Rocky Mountain Power (RMP; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) for authority to increase
the Company s base rates for electric service. In this Order, the Commission provides notice of
the Application and establishes a deadline for interested persons to intervene as parties.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on June 8, 2007, PacifiCorp dba Rocky
Mountain Power filed an Application with the Commission for authority to increase the
Company s base rates for electric service by $18.5 million annually, or 10.3%. The increase in
base rates would vary by class of customer and actual usage.
Rocky Mountain Power provides electric service to more than 67 000 customers in
eastern Idaho. As reflected in accompanying testimony, Rocky Mountain Power s need for the
revenue increase requested is primarily caused by cost increases in the following areas:
1. Fuel, wholesale market and transmission wheeling price increases, which
contribute to significant increases in net power costs.
2. New generation, transmission and distribution plant investments.
3. Labor-related cost increases.
The Company contends that all elements of its rate increase are necessary to maintain and
provide adequate, efficient, safe and reliable electric service to its customers and to provide a
reasonable opportunity for the Company to earn a fair return on its investments. The Company
claims it is currently earning a return on equity (ROE) of 5.3% in its Idaho jurisdiction. The
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30356
requested increase in rates will allow the Company to earn an ROE of 10.75%. The Company
contends that the higher ROE is necessary to attract capital necessary to maintain its utility
infrastructure.
The proposed average increase in base rates by kilowatt-hour will result in the
following allocation of the net price increase for major customer classes:
Customer Class Schedule Current Average Proposed Average Overall
Base Rates Base Rate Percentage
(centsIkWh)(centsIkWh)of Increase
Residential 8.36
Optional time of day
General Service
Small Power 0.4%
23A 8.45 (2.8%)
Large Power
Irrigation Pumpin2;
The Company also seeks to increase the rates applicable to special contract customer Monsanto
Corporation (Schedule 400) by 24.1 % and Nu-West Industries (Schedule 401) by 14.5% and the
rates applicable to public street lighting by 20.7%.
The Company s rate spread and rate design proposals are based on a submitted class
cost of service study and include a proposal that, in time of rising costs, no individual customer
class would receive a rate reduction.
In addition to the revenue increase requested, the Company also proposes operational
changes to its electric service regulations. The Company proposes changes to Regulation No.
, proposing payment of collection agency cost be the responsibility of the customer causing
such a charge to be incurred. The Company is also proposing increasing Schedule 300 fees
associated with the connection and reconnection of service and changing the hours during which
connection and reconnection of service is offered after normal office hours. In addition, the
Company is proposing changes to Regulation No. 12 including housekeeping, clarification, and
changing the methodology of refunding customer advances for line extension.
As reflected in the Company s Application, this request is $3.6 million less than the
increase otherwise supported by the Company s revenue requirement analysis, but was limited
due to the Revised Protocol rate mitigation cap. The Revised Protocol is the allocation method
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30356
utilized to allocate and assign generation, transmission and distribution costs to PacifiCorp s six
retail state jurisdictions. Reference Case No. P AC-02-3 (Inter-Jurisdictional Cost Allocation),
Order No. 29708.
The revised tariff schedules proposed by the Company reflect a proposed effective
date of January 1 , 2008.
YOU ARE FURTHER NOTIFIED that RMP's intrastate revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find that a revenue requirement
different from that proposed by any party is just, fair and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges for all RMP's retail
customers, both recurring and non-recurring, including those of special contract customers, are at
issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings.
31.01.01.124.02.
IDAPA
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges; abolish, create or reduce components of
rates and charges; abolish, reduce or create customer classes or rate groupings; and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
service, instrumentalities, equipment, facilities, classifications and customer relations of the
utility are at issue, and the Commission may address any of them in its Order.
31.01.01.124.02.
IDAP A
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30356
INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No.
PAC-07-05 for the purpose of becoming a party, Le., to present evidence, to acquire rights of
cross-examination, to participate in settlement or negotiation conferences, and to make and argue
motions must file a Petition to Intervene with the Commission pursuant to Rules 72 and 73 of the
Commission s Rules of Procedure, IDAPA 31.01.01.072 and .073. Persons desiring to acquire
intervenor rights of participation must file a Petition to Intervene on or before Wednesday,
July 18,2007. Persons desiring intervenor status shall also provide the Commission Secretary
with their electronic mail address to facilitate future communications in this matter.
YOU ARE FURTHER NOTIFIED that a preheaTing conference in Case No. P AC-
07-05 will not be calendared if the only purpose is to schedule dates for public workshops
testimony prefile and hearings. Petitioners requesting to intervene shall identify in their Petition
any issues, other than scheduling, that require a preheaTing conference. If no issues are identified
a prehearing conference will not be calendared and the parties will develop a schedule for
processing this case.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without parties' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that discovery is available pursuant to the
Commission s Rules of Procedure, IDAPA 31.01.01.221-234.
YOU ARE FURTHER NOTIFIED that the Company s Application, testimony,
exhibits and workpapers in Case No. PAC-07-05 can be reviewed during regular business
hours at the Commission s office in Boise, Idaho and at the following Idaho offices of Rocky
Mountain Power:
200 North 170 West, Rexburg, Idaho
509 South 200 East, Preston, Idaho
852 East 1400 North, Shelley, Idaho
24852 U.S. Highway 89, Montpelier, Idaho
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30356
The Application is also available for public inspection on the Commission s web site at
www.puc.idaho.gov under the "File Room" and "Electric Cases.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
RMP's representatives in this matter:
Brian Dickman
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: brian.dickman~pacificorp.com
Dean Brockbank
Justin Brown
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: dean. brockbank~acificorp. com
i ustin. brown~pacificorp. com
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code, specifically Idaho
Code ~~ 61-502, 61-503 , 61-507, 61-520, 61-523 , and 61-622. The Commission may enter any
final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted according to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and any preheaTing conferences
in this matter will be held in facilities meeting the accessibility requirements of the Americans
with Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretarv~puc.idaho.gov
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30356
ORDER
As more particularly described above, IT IS HEREBY ORDERED and the
Commission hereby issues the foregoing Notice of Application and establishes the foregoing
intervention deadline in Case No. P AC-07-05.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this c2.9-tA.
day of June 2007.
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PAUL KJEL ANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ISSIONER
ATTEST:
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COmmISSIOn Secretary
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NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30356