20081003notice_of_application_pac.pdf

Office of the Secretary
Service Date
October 3, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROVAL OF CHANGES TO
ITS ELECTRIC SERVICE SCHEDULES
CASE NO. P AC-O8-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
On September 19, 2008 , 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 September 19 2008, PacifiCorp dba Rocky
Mountain Power (Rocky Mountain Power; Company) filed an Application with the Idaho Public
Utilities Commission (Commission) for authority to increase the Company s base rates for
electric service by $5.9 million annually, or 4.0%. The increase in base rates would vary by
class of customer and actual usage. The rate increase does not apply to Agrium or Monsanto
whose rates are controlled by a separate Commission-approved Stipulation.
Rocky Mountain Power provides electric service to over 69 000 customers in eastern
Idaho. As reflected in the Company s filing and supporting testimony, the proposed rate increase
is designed to recover the dramatically increasing costs of serving residential, commercial and
irrigation customers.As the demand for electricity has grown, the Company has made
investments in new infrastructure and facilities. In addition, the costs for fuel and purchased
power to serve customers have increased. The Company contends that without the requested
increase in revenues, it will be increasingly difficult to maintain its utility infrastructure and
continue to provide adequate, efficient, just and reasonable service to its Idaho customers.
Rocky Mountain Power claims that it is currently earning a normalized return on
equity (ROE) of 6.5% in its Idaho jurisdiction. This current ROE, it states, is far below the
Company s authorized Idaho return (10.25%), the returns recently authorized for other Idaho
investor-owned utilities, and the 10.75% ROE requested by the Company in this case. The
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
Company contends that an overall price increase of $19.4 million would be required to produce
the 10.75% ROE requested by the Company in this proceeding. The amount requested in this
case is constrained and limited by the Revised Protocol rate mitigation cap approved by the
Commission in Case No. PAC-02-, reducing the request by $3.1 million. The Revised
Protocol is the allocation method utilized to allocate and assign generation, transmission and
distribution costs to PacifiCorp s six retail state jurisdictions. Reference Case No. PAC-02-
(Inter-Jurisdictional Cost Allocation), Order No. 29708. The amount requested in this case is
also limited by the Stipulation approved in Case No. PAC-07-05 for tariff Schedules 400
(Monsanto Company) and 401 (Agrium, Inc.). That Stipulation regulates the rates of Monsanto
and Agrium through December 2010 and reduces the Company s rate request by $10.4 million.
The proposed average increase in base rates by kilowatt hour will result in the
following allocation ofthe net price increase for major customer classes:
Residential: 4.73%
Irrigation: 2.31 %
General Service
Schedule 23/23A: 0%
Schedule 6/6A18/35: 96%
Schedule 9: 7.96%
Schedule 19: 2.31 %
Public Street Lighting
Schedules 717A , 12: 0%
The ultimate prices customers will see are determined by the Company s rate spread and rate
design proposals. For an average residential home using 850 kWh per month, customers will
realize an increase of$3.55 per month.
The revised tariff schedules proposed by the Company reflect a proposed effective
date of October 19, 2008. The proposed effective date was suspended by the Commission in
Order No. 30653.
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.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that the rates and charges for all RMP's retail
customers, both recurring and non-recurring, 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.
IDAPA
INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No.
P AC-08-07 for the purpose of becoming a party, i., 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, IDAP A 31.01.01.072 and .073. Persons desiring to acquire
intervenor rights of participation must file a Petition to Intervene on or before Friday,
October 24, 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 prehearing conference in Case No. P AC-
08-07 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
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
any issues, other than scheduling, that require a prehearing 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:
25 East Main, Rexburg, Idaho
509 South 200 East, Preston, Idaho
852 East 1400 North, Shelley, Idaho
24852 u.S. Highway 89, Montpelier, Idaho
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:
Ted Weston
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: ted.weston(fYpacificorp.com
Daniel Solander
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: danie1.solander(fYpacificorp.com
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
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 prehearing 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(fYpuc.idaho.gov
DATED at Boise, Idaho this .3 Hi.day of October 2008.
~illlJ..
. Jewell
Commission Secretary
bls/N:PAC-08-07 _
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE