20090205Settlement Stipulation.pdf

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Februar 4, 2009
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VI OVERNIGHT DELIVERY
Jean D. Jewell
Commission Secreta
Idaho Public Utilities Commission
472 W. Washington
Boise,ID 83702
Attention: Jean D. Jewell
Commission Secretar
RE: Case No. PAC-E-08-07 In the Matter of the Application of Rocky Mountain Power for
Approval of Changes to its Electric Service Schedules and a Price Increase of $5.9
Milion, or 4.0%.
Enclosed please find the original and seven (7) copies of the Stipulation entered into by and
between Rocky Mountain Power and the following parties of record in the above captioned
matter: Staff for the Idaho Public Utilities Commission, Idaho Irrgation Pumpers Association,
Inc. and the Community Action Parnership Association of Idaho. This stipulation does not
impact or propose any changes to Monsanto or Agrium's rates. Monsanto paricipated in the
settlement discussions and while they do not adopt the Stipulation they have no objection to the
Commission approving the same. Paries to the Stipulation will file testimony in support of the
settlement on Februar 25,2009.
Please let me know if you have any further questions.
Very Truly,
~~\~
Daniel E. Solander
Senior Counsel
Rocky Mountain Power
Enclosures
RECEIV~D
John R. Hamond, Jr., ISB No. 5470
FISHER PUSCH & ALDERMN, LLP
US Ban Plaza, 5th Floor
101 South Capitol Boulevard
PO Box 1308
Boise, Idaho 83701
[phone]
jrh(ßfpa-Iaw.com
inn~ FEB -5 M4 9: 34
Daniel E. Solander
Admitted Pro Hac Vice
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, Uta 84111
[phone]
daniel.solander(ßpacificorp.com
Attorneys for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE )
APPLICATION ROCKY MOUNTAIN ) CASE NO. PAC-E-08-07
POWER FOR APPROVAL OF )
CHANGES TO ITS ELECTRIC ) STIPULATION
SERVICE SCHEDULES AND A PRICE )
INCREASE OF $5.9 MILLION OR 4.0 )PERCENT )
)
This stipulation ("Stipulation") is entered into by and among Rocky Mountain Power, a
division of PacifiCorp ("Rocky Mountain Power" or the "Company") and the following parties
of record in Case No. PAC-E-08-07: Staf for the Idaho Public Utilities Commission ("Staf');
the Communty Action Parership Association of Idaho ("CAP AI"); and the Idaho Irrgation
Pumpers Association, Inc. ("IIP A") (collectively, the "Paries").
1 Monsanto and Agrium Inc.
rates are not directly impacted by the foregoing settlement reached by the other effected paries.
1 Agrium, Inc., also a pary of record in Case No. PAC-E-08-07, did not participate in settlement
discussions and is not a signator to the Stipulation.
STIPULATION - Page 1
Monsanto does not adopt the stipulation but has no objection to the Commission approving the
same.
I. INTRODUCTION
1. The terms and conditions of this Stipulation are set forth herein. The Paries agree that
this Stipulation represents a fair, just and reasonable compromise of the issues raised in this
proceeding and that this Stipulation is in the public interest. The Paries, therefore, recommend
that the Idaho Public Utilities Commission ("Commission") approve the Stipulation and all of its
terms and conditions. See IDAPA 31.01.01.271, 272, and 274.
II. BACKGROUND
2. On September 19, 2008, Rocky Mountain Power filed an Application seeking
authority to increase the Company's base rates for electric service by $5.9 milion anually, an
average increase of approximately 4.0%. The increase in rates vared by individual customer and
actual usage. Rocky Mountain Power sought to increase rates effective October 19,2008. The
Application did not include changes to the rates charged by Rocky Mountain Power to Monsanto
and Agrium, as the rates for those two customers are subject to the Stipulation filed and
approved by the Commission in Docket No. PAC-07-05 and no changes to those rates were
proposed in the curent Docket.
3. With a view toward resolving the issues raised in Rocky Mountain Power's
Application in this proceeding, representatives of the Paries met on Januar 15, 2009, pursuant
to IDAPA 31.01.01.271 and 272, to engage in settlement discussions.
Based upon the settlement discussions between the Paries, as a compromise of the
positions in this proceeding, and for other consideration as set forth below, the Paries agree to
the following terms:
STIPULATION - Page 2
III. TERMS OF THE STIPULATION
4. The Paries agree that this shall be a "black box" settlement with no pary accepting a
specific methodology for the revenue requirement determination. Accordingly, each individual
component of the Stipulation has not been agreed to by all Parties, but all Paries support the
overall increase to Rocky Mountain Power's Revenue Requirement, and agree that the overall
increase represents a fair, just and reasonable compromise of the issues raised in this proceeding
and that this Stipulation is in the public interest.
5. The Paries agree to support an overall revenue requirement increase in this case of
$4.8 milion, excluding the contract customers. Paries to the stipulation agreed that the $4.8
milion would be divided by 36.0553%, (the ratio of non-contract to contract customers cost of
service from page 2 of Rocky Mountain Power's Exhibit 20) to get to an Idaho total revenue
requirement increase of $13,312,883. This increase to Idaho's revenue requirement was input
into Staff's cost of service model to ru the class allocation producing $4,382,632 or
approximately 3.1 % revenue requirement increase to the non-contract customers. The increase
shall be effective April 18, 2009 for all affected customers.
6. The Paries agree to establish the total company base net power cost at $982 milion, as
fied in this Application, which .will be necessar for calculation puroses in Rocky Mountain
Power's curently pending Application for Approval of an Energy Cost Adjustment Mechanism
in Docket No. PAC-E-08-08.
7. The Parties agree that Rocky Mountain Power's acquisition of the Chehalis generating
plant in Chehalis, Washington was a prudent decision and in the public interest, and costs related
to the plant acquisition and operation included in this case are reasonable and are included in rate
base.
8. The Paries agree that the demand-side management programs proposed by Rocky
Mountain Power in Docket No. PAC-E-08-01 are prudent. Furher, the Paries agree that a total
of $50,000 of demand-side management program fuds wil be made available to SouthEastern
Idaho Community Action Agency and Eastern Idaho Community Action Parership to be used
STIPULATION -Page 3
to support conservation education as a component of Rocky Mountain Power's low income
weatherization program, Schedule 21. Paries agree that it is the responsibilty of the
Community Action Parnership Association of Idaho to propose said education program to
Rocky Mountain Power by May 1, 2009 and that the proposal wil contain fuding proportioning
the $50,000 between the two agencies, objectives and any savings estimates to assist in program
evaluations and reporting requirements. The Parties agree that the low income weatherization
program (Schedule 21) and the conservation education component of the program is in the public
interest and is determined to be cost-effective even though the explicit quatification of benefits
may not be possible, and fuhermore, the Paries agree to support the justification and recovery
of these costs through the demand-side management surcharge fuding.
9. The Parties agree that the issue raised in Company testimony related to the Energy
Trust of Oregon Funding of the Goodnoe Hils wind generation plant will be deferred to Rocky
Mountain Power's next filed general rate case.
10. Rocky Mountain Power agrees that it will include an inverted tier rate design
proposal or option for residential customers in its next fied general rate case for the
Commission's consideration;
11. The Paries agree to the rate spread set fort in the following table. The rate
spread was calculated based on the ratio of Rocky Mountain Power's proposed revenue
requirement increase of $5,871,441 to the settled revenue requirement increase of $4,382,632.
This amount was ratably applied to Rocky Mountain Power's original proposed price change by
customer class. Details of the rate spread are included in Attchment 1 to this Stipulation.
Customer Class
Residential - Schedule 1
Residential - Schedule 36
General Service
Schedule 23/23A
Schedule 6/6A/8/35
Schedule 9
Schedule 19
Proposed
4.73%
4.73%
Settled
3.53%
3.53%
0%
7.96%
7.96%
2.31%
0%
5.94%
5.94%
1.73%
STIPULATION - Page 4
Irrigation
Schedule 10
Public Street Lighting
Schedules 7/7 A, 11, 12
2.31%1.73%
0%0%
12. The parties agree that the design of rates by rate schedule (rate design) shall be
consistent with the Company's fied proposals as adjusted for the revenue requirement in this
settlement.
iv. GENERA PROVISIONS
13. The Paries agree that this Stipulation represents a compromise of the positions of
the Paries on all issues in this proceeding. Other than the above referenced positions and any
testimony filed in support of the approval of this Stipulation, and except to the extent necessar
for a Pary to explain before the Commission its own statements and positions with respect to the
Stipulation, all negotiations relating to this Stipulation shall not be admissible as evidence in this
or any other proceeding regarding this subject matter.
14. The Paries submit this Stipulation to the Commission and recommend approval
in its entirety pursuant to IDAPA 31.01.01.274. The Paries shall support this Stipulation before
the Commission, and no Party shall appeal any portion of this Stipulation or Order approving the
same. If this Stipulation is challenged by any person not a pary to the Stipulation, the Parties to
this Stipulation reserve the right to cross-examine witnesses and put on such case as they deem
appropriate to respond fully to the issues presented, including the right to raise issues that are
incorporated in the settlement embodied in this Stipulation. Notwithstading this reservation of
rights, the Paries to this Stipulation agree that they will continue to support the Commission's
adoption of the terms of this Stipulation.
15. In the event the Commission rejects any par or all of this Stipulation, or imposes
any additional material conditions on approval of this Stipulation, each Pary reserves the right,
upon written notice to the Commission and the other Paries to this proceeding, within 15 days of
STIPULATION - Page 5
the date of such action by the Commission, to withdraw from this Stipulation. In such case, no
Par shall be bound or prejudiced by the terms of this Stipulation, and each Party shall be
entitled to seek reconsideration of the Commission's order, fie testimony as it chooses, cross-
examine witnesses, and do all other things necessar to put on such case as it deems appropriate.
16. The Paries agree that this Stipulation is in the public interest and that all of its
terms and conditions are fair, just and reasonable.
17. No Pary 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 constred as a waiver of the rights of any Pary unless such rights are expressly
waived herein. Execution of this Stipulation shall not be deemed to constitute an
acknowledgment by any Par of the validity or invalidity of any paricular method, theory or
principle of regulation or cost recovery. No Pary shall be deemed to have agreed that any
method, theory or principle of regulation or cost recovery employed in ariving at this Stipulation
is appropriate for resolving any issues in any other proceeding in the futue. No findings of fact
or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
18. The obligations of the Parties under this Stipulation are subject to the
Commission's approval of this Stipulation in accordance with its terms and conditions and, if
judicial review is sought, upon such approval being upheld on appeal by a cour of competent
jurisdiction.
(INTENTIONALL Y LEFT BLANK)
STIPULATION - Page 6
Respectfully submitted this ~~ay of February, 2009.
Rocky Mountain Power Idaho Irrigation Pumpers Association,
Inc.B~BY
Idaho Public Utilties Commission Staff Community Action Partnership
Association of Idaho
By By
STIPULA nON - Page 7
Respectfully submitted this ~~day of February, 2009.
Rocky Mountain Power Idaho Irrigation Pumpers Association,
Inc.B~BY
Idaho Public Utilties Commission Staff Community Action Partnership
Association of IdahoB~Wd.æ~~ï¡0f By
STIPULA TI ON - Page 7
Rêspeetfully submitted thiJ-'fday of February, 2009.
Rocky Mountain PowerB~
Idaho Public Utilties Commission Staff
By
STIPULA TI ON - Page 7
Community Action Partnership
Association of Idaho
By
Respetfully submitted this ~~day of February. 2009.
Roeky MouDmin .Power Idaho Irrigation Pumpers Associatioß,
Inc.B~BY
Idaho Public Utilities Commision Staff
By
Community Action Partner~!! "-
ASS~~~~OD ~hO, . / ) ("',d,. ;' t'l./t ¿. -~By' /.4 ¿ ":#~~;7 ..-'. -,--'~.....,~-_.
STIPULA.TION - Page 7
ATTACHMENT i
ROCKY MOUNTAIN POWER
ESTIMATED IMPACT OF PROPOSED REVENUES ON NORMALIZED PRESENT REVENUES
FROM ELECTRIC SALES TO ULTIMATE CONSUMERS
DISTRIBUTED BY RATE SCHEDULES IN IDAHO
y 12 MONmS ENDING DECEMBER 2007
~
Prent Propose Change in
Revenue ($000)Revenue ($000)Bae Revenue
Average
Line Prent Prpose No. of Ba Bas Prent Propsse
No.Deption Sch.Sch.Cnsmer MWH Revenue.Revenue1 ($0)%(t/kWh (t/kWh
(I)--(3)(4)(5)(6)(7)(8)(9 (10)(II)
(6)-(5)(7)/(5)(5)/(4)(6)/(4)
Resential Sales
Residential Service 1 1 39.215 399.03 $35.002 $36.237 $1.35 3.53%8.77 9.08
Residential Optional TOD 36 36 16.369 317.378 $22.75 $23.268 $793 3.53%7.08 7.33
AGA-Revenue $5 $5 $0 0.00%
4 Tola Residential 55.585 716.01 $57,482 $59.510 $2.028 ~8.02 8.31
Commercal & Indllstrial
General Service - Large Power 6 6 1.028 298.916 $17.411 $18.45 $1.34 5.94%5.82 6.17
General Svc. - Lg. Power (R&F)6A 6A 247 36.068 $2.340 $2,479 $139 5.94%6.9 6.87
Subtotal-Schedule 6 1.275 334.984 $19.751 $20.924 $1.74 5.94%5.90 6.25
9 General Service - Moo. Voltage 8 6 2 2.848 $151 $160 $9 5.94%5.32 5.63
10 General Service - High Voltage 9 9 12 130.895 $5.672 $6.00 $337 5.94%4.33 4.59
11 Irrigation 10 10 5,331 697.666 $47,382 $48.201 $819 1.73%6.79 6.91
12 Comm. & Ind. Spa Heating 19 19 148 8.236 $553 $562 $10 1.73%6.71 6.83
13 General Service 23 23 6.183 122.778 $9.710 $9.710 $0 0.00%7.91 7.91
i4 General Service (R&F)23A 23A 1.383 18.166 $1,515 $1.515 $0 0.00%8.34 8.34
15 Subtota-Schedule 23 7.567 140.944 $11,225 $11,225 $0 0.00%7.96 7.96
16 General Service Optional TOD 35 35 2.587 $122 $130 $7 5.94%4.73 5.01
17 Speial-Contrat-Monsanto 1'319.624 $53.545 $53,545 $0 0.00%4.06 4.06
18 Speial Contra-Nu West 109.115 $4.239 $4.239 $0 0.00%3.88 3.88
19 AGA-Revenue $477 $477 $0 0.00%
20 Total Commercal & Industral 14.34 2.746.90 $143.117 $145.472 $2,355 ~5.21 5.30
21 Total Commercal & Industal 14.339 1.427,276 $89,571 $91.926 $2.355 ~6.28 6.44
(Excluding Mo..nlo)
22 Piibljc Stret Ugbting
23 Security Ara Lighting 7 7 239 284 $104 $104 $0 0.00%36.72 36.72
24 Secrity Are Lighting (R&F)7A 7A 195 138 $54 $54 $0 0.00%39.41 39.41
25 Str Lighting - Company 11 11 32 121 $52 $52 $0 0.00%43.10 43.10
26 Str Lighting - Customer 12 12 294 1.974 $370 $370 $0 0.00%18.75 18.75
27 AGA-Revenue $0 $0 $0 0.00%
28 Total Public Stret Lighting 760 2.517 $581 $581 $0 -!23.08 23.08
29 Tola Sales to Ultite Cuslomers 70,685 3.465.818 $201.180 $205.562 $4.383 ~5.80 5.93
$200,698
30 Total Sales lo Ultite Cuslomers 70.683 2.037.079 $143.395 $147.778 $4.383 ..7.04 7.25
(Excluding Mo..nlo & Nu.West)