20090211notice_of_hearing_order_no_30727.pdf

Office of the Secretary
Service Date
February 11 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROV AL OF CHANGES TO
ITS ELECTRIC SERVICE SCHEDULES
CASE NO. P AC-08-
NOTICE OF STIPULATION AND
PROPOSED SETTLEMENT
NOTICE OF SCHEDULING
(SETTLEMENT STIPULATION)
NOTICE OF HEARING
(SETTLEMENT STIPULATION)
ORDER NO. 30727
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.
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. Intervening parties to this case are: Monsanto
Company; Idaho Irrigation Pumpers Association, Inc.; Community Action Partnership of Idaho;
and Agrium, Inc.
YOU ARE HEREBY NOTIFIED that on January 8, 2009, the Commission Staff
filed with the Commission a Notice of Intent to Engage in Settlement Discussions. RP 272. A
settlement conference was subsequently held on January 15 , 2009 and was attended by all parties
to the case with the exception of Agrium, Inc.
Pursuant to discussions, PacifiCorp, Commission Staff, Idaho Irrigation Pumpers
Association and Community Action Partnership of Idaho have entered into a Stipulation and
negotiated settlement that purports to resolve all issues raised in this proceeding. The Stipulation
does not impact or propose any changes to Monsanto or Agrium s rates. Monsanto participated
in the settlement discussions and while it does not adopt the Stipulation it has no objection to the
Commission approving the same. The Stipulation was filed with the Commission on February 5
NOTICE OF STIPULATION AND PROPOSED SETTLEMENT
NOTICE OF SCHEDULING (SETTLEMENT STIPULATION)
NOTICE OF HEARING (SETTLEMENT STIPULATION)
ORDER NO. 30727
2009. The stipulating parties represent that the Stipulation is in the public interest and that all of
its terms and conditions are fair, just and reasonable.
Under the terms of the Stipulation, Rocky Mountain Power would be authorized to
recover $4 382 632 (3.1 %) in additional annual electric revenue from non-contract customers.
The increase would be effective April 18, 2009 for all affected customers.
The terms of the Stipulation include the following terms:
The parties agree that their proposal is a "black box" settlement with no
party accepting a specific methodology for the revenue requirement
determination. The parties agree that the overall increase represents a fair
just and reasonable compromise of the issues raised in this proceeding and
that the Stipulation is in the public interest.
The parties agree to establish the total Company base rate net power cost
at $982 million, as filed in this Application, which will be necessary for
calculation purposes in Rocky Mountain Power s currently pending
application for approval of an energy cost adjustment mechanism in Case
No. P AC-08-08.
The parties agree that Rocky Mountain Power 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.
The parties agree that the demand-side management programs proposed
by Rocky Mountain Power in Case No. PAC-08-01 are prudent.
Further, the parties agree that a total of $50 000 of demand-side
management program funds will be made available to Southeastern Idaho
Community Action Agency and Eastern Idaho Community Action
Partnership to be used to support conservation education as a component
of Rocky Mountain Power s Low Income Weatherization Program
Schedule 21.
The parties agree that the issue raised in the Company s testimony related
to the Energy Trust of Oregon Funding of the Goodnoe Hills Wind
Generation plant will be deferred to Rocky Mountain Power s next filed
general rate case.
Rocky Mountain Power agrees that it will include an inverted tier rate
design proposal or option for residential customers in its next filed general
rate case for the Commission s consideration.
NOTICE OF STIPULATION AND PROPOSED SETTLEMENT
NOTICE OF SCHEDULING (SETTLEMENT STIPULATION)
NOTICE OF HEARING (SETTLEMENT STIPULATION)ORDER NO. 30727
The parties agree to the rate spread set forth in the following table. The
calculations are based on the ratio of Rocky Mountain Power s proposed
revenue requirement increase of $5 871,441 to the settled revenue required
increase of $4 382 632. Details of the rate spread are included in
Attachment 1 to the Stipulation.
Customer Class Proposed Settled
Residential - Schedule 1 73%53%
Residential - Schedule 36 73%53%
General Service
Schedule 23/23A
Schedule 6/6A/8/35 96%94%
Schedule 9 96%94%
Schedule 19 31%1.73%
Irrigation
Schedule 10 31%1.73%
Public Street Lighting
Schedules 717A , 12
The parties agree that the design of rates by rate schedule (rate design)
shall be consistent with the Company s filed proposals as adjusted for the
revenue requirement in this settlement.
The stipulating parties recommend that the Commission approve the Settlement
Stipulation for an April 18 , 2009 effective date. RP 274.
NOTICE OF SCHEDULING
YOU ARE FURTHER NOTIFIED that proponents of a proposed settlement carry the
burden of showing that the settlement is reasonable, in the public interest and in accordance with
law or regulatory policy. RP 275. The parties recognize that the Proposed Settlement is not
binding on the Commission. RP 276. Settlements are reviewed under Commission Rule of
Procedure 274 (Consideration of Settlements). To establish a sufficient record for decision in
this matter, the parties propose and the Commission adopts the following scheduling:
February 25, 2009 Deadline for filing by stipulating parties of
testimony in support of the Settlement Stipulation
Deadline for filing written comments regarding the
Proposed Settlement Stipulation
March 20, 2009
NOTICE OF STIPULATION AND PROPOSED SETTLEMENT
NOTICE OF SCHEDULING (SETTLEMENT STIPULATION)
NOTICE OF HEARING (SETTLEMENT STIPULATION)ORDER NO. 30727
YOU ARE FURTHER NOTIFIED that the Commission will conduct a technical and
evidentiary hearing on the Settlement Stipulation in this matter on WEDNESDAY. MARCH
11. 2009 COMMENCING AT 9:30 A.M. AT THE COMMISSION HEARING ROOM. 472
WEST WASHINGTON STREET. BOISE. IDAHO
YOU ARE FURTHER NOTIFIED that the parties propose and the Commission has
agreed to vacate the February 25, 2009 rebuttal deadline set forth in its Notice of Scheduling
issued November 26, 2008 and to substitute the scheduling set forth above. A public hearing on
the Settlement Stipulation will be held in eastern Idaho following the March 11 , 2009 technical
hearing. A notice of this hearing will be issued once arrangements have been finalized.
YOU ARE FURTHER NOTIFIED that the Settlement Stipulation in Case No. PAC-
08-07 together with accompanying Attachment (and supporting testimony after February 25
2009) can be reviewed at the Commission s office in Boise, Idaho and at the Idaho offices of
Rocky Mountain Power during regular business hours. The Settlement Stipulation is also
available for viewing on the Commission s website at www.puc.idaho.gov under "File Room
and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by any
settlement reached by the parties. RP 276. The Commission will independently review any
settlement proposed to determine whether the settlement is just, fair and reasonable, and in the
public interest, or otherwise in accordance with law or regulatory policy. The Commission may
accept the settlement, reject the settlement, or state additional conditions under which the
settlement will be accepted. IDAP A 31.01.01.276.
YOU ARE FURTHER NOTIFIED that written comments concerning the proposed
settlement must be mailed to the Idaho Public Utilities Commission and Rocky Mountain Power
at the following addresses:
NOTICE OF STIPULATION AND PROPOSED SETTLEMENT
NOTICE OF SCHEDULING (SETTLEMENT STIPULATION)
NOTICE OF HEARING (SETTLEMENT STIPULATION)ORDER NO. 30727
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Ted Weston
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: ted.weston~pacificorp.com
472 W. Washington Street
Boise, ID 83702-5918
Daniel Solander
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: daniel.solander(m,paciticorp.com
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Rocky Mountain Power at the e-mail addresses
listed above.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED that the Settlement Stipulation filed by Rocky Mountain Power
Commission Staff, Idaho Irrigation Pumpers Association and Community Action Partnership of
Idaho shall be processed pursuant to the procedural scheduling set forth above.
NOTICE OF STIPULATION AND PROPOSED SETTLEMENT
NOTICE OF SCHEDULING (SETTLEMENT STIPULATION)
NOTICE OF HEARING (SETTLEMENT STIPULATION)
ORDER NO. 30727
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /1-1.
day of February 2009.
~~
~~WMACK A. REDFORD, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
Co1'hmission Secretary
bls/O:PAC-O8-07 sw3
NOTICE OF STIPULATION AND PROPOSED SETTLEMENT
NOTICE OF SCHEDULING (SETTLEMENT STIPULATION)
NOTICE OF HEARING (SETTLEMENT STIPULATION)ORDER NO. 30727