20081023Application.pdf

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October 23,2008
RECEIVED
2098 OCT 23 AM 10: '8
IDAHO PUBLI"
UTILITIES COMMIŠS10N
201 South Main, Suite 2300
Salt Lake City. Utah 84111
VI OVERNIGHT DELIVERY
Jean D. Jewell
Commission Secreta
Idaho Public Utilities Commssion
472 W. Washington
Boise, ID 83702
Re: Case No. PAC-E-08-08
In the Matter of the Application of Rocky Mountan Power for Approval of an Energy
Cost Adjustment Mechansm
Dear Ms. Jewell:
Please find enclosed for filing an origina and nine copies of Rocky Mountan Power's
Application in the above-referenced matter, along with nine copies ofPacifiCorp's direct
testimony and exhbits. Also enclosed is a CD contang the Application, dirct testimony and
exhbits. To the attention of the Cour Reporter is a paper copy of all documents along with a
CD containing all testimony and exhbits in their original formats.
All formal correspondence and questions regarding this Application should be addressed to:
Ted Weston
Rocky Mounta Power
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
Email: ted.westoncgacificorp.com
Danel Solander
Rocky Mounta Power
201 South Main Stret, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
Email: DaneLsolander(ipacificorp.com
Communcations regarding discovery matters, including data requests issued to Rocky Mounta
Power, should be addressed to the followig:
By E-mail (preferred):datareguest(ipacificorp.com
By regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah St., Suite 2000
Portland, OR 97232
Idaho Public Utilties Commission
October 23, 2008
Page 2
Informal inquies may be directed to Ted Weston, Idaho Reguatory Manager at (801) 220-
2963.
Very trly yours,
~K,~~~
Jeffey K. Larsen
Vice President, Reguation
Enclosures
,
Danel E. Solander
Yvonne R. Hogle
Rocky Mountain Power
201 South Mai Street, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
Email: daneLsolander(ipacificorp.com
yvonne.hogle(ipacificorp.com
RECEIVED
1018 OCT 23 Ali fO: 19
IDAHO PUBLIC
UTILITIES COMMISSION
Attorney for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION
IN THE MATTER OF THE
APPLICATION OF ROCKY
MOUNTAIN POWER FOR
APPROVAL OF AN ENERGY COST
ADJUSTMENT MECHAISM
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APPLICATION OF
ROCKY MOUNTAIN POWER
CASE NO. PAC-E-08-08
Rocky Mounta Power, a division of PacifiCorp ("Rocky Mounta Power" or the
"Company") hereby applies to the Commssion for approval of an energy cost adjustment
mechansm ("ECAM") as proposed in the exhbits submitted herewith. In support of ths
Application, Rocky Mounta Power states as follows:
1. Rocky Mountain Power is authorized to do and is doing business in the state
ofIdaho. The Company provides retail electrc service to approximately 69,000 customers in
the state of Idao and is subject to the jursdiction of the Commission.
2. Communcations regarding ths Application should be addressed to:
Ted Weston
201 South Mai, Suite 2300
Salt Lake City, Uta 84111
Telephone: [phone]
Fax: [phone]
Email: ted.weston(ipacificorp.com
and to:
APPLICATION OF ROCKY MOUNTAI POWER Page 1
Danel E. Solander
201 South Main, Suite 2300
Salt Lake City, Uta 84111
Telephone: [phone]
Fax: [phone]
Email: danieLsolander(ipacificorp.com
In addition, the Company respectfully requests that all data requests regarding this matter be
addressed to one or more of the followig:
Bye-mail (preferred)dataeguest(ipacificorp.com
By reguar mail Data Request Response Center
PacifiCorp
825 NE Multnomah Suite 2000
Portland, OR 97232
3. Rocky Mounta Power's proposed ECAM is designed to defer the difference
between Base net power costs set durng a general rate case and collected from customers in
their retal rates and Actu net power costs incured by the Company to serve retal
customers. The calculation of the deferral would be on a monthy basis by comparng a
monthy Base NPC rate in dollars per megawatt-hour to the Actul NPC rate also in dollars
per megawatt-hour. The resulting monthly NPC Differential rate would be applied to actul
Idaho retail sales to calculate the NPC Differential for Deferral. A carng charge equa to
the Company's most recently authorized retu on rate base would be applied to the deferred
balance. Anually on April 1 the Company would fie an application with the Commission
to adjust the ECAM surcharge rate beginnng June 1 to refud or collect the ECAM deferred
balance from the end of the prior calenda year.
4. The ECAM is designed to recover the sum of all components of net power
costs as traditionally defined in the Company's genera rate cases and modeled in its power
supply model GRID. Specifically, Base NPC will include costs tyically booked to the
APPLICATION OF ROCKY MOUNTAIN POWER Page 2
following FERC accounts:
Account 447 - Sales for resale, excluding non-GRI transmission services
and on-system wholesale sales
Account 501 - Fuel, steam generation; excluding fuel handling, sta up
fuel/gas
i , diesel fuel, residua disposal and other non-GRI
items
Account 503 - Steam from other sources
Account 547 - Fuel, other generation
Account 555 - Purchased power, excluding BPA residential exchange credit
pass-through if applicable
Account 565 - Tranmission of electrcity by others
Actu costs booked to the above accounts, will be subject to review by the
Commission and other paries in each of the Company's applications prior to inclusion in the
ECAM Surcharge.
5. Rocky Mounta Power's direct case consists of the testimony and exhbits of
Company witness Gregory N. Duvall, Director of Power Costs. Mr. Duvall's testimony
describes the Company's proposed Energy Cost Adjustment Mechansm (ECAM including
the mechansm strctue, costs tht would be recovered by the mechansm, and how the
proposed mechansm would be adinistered. It also explains why the Company believes it
is necessar to have a recovery mechansm in place to allow changes in net power costs to be
passed onto customers between general rate cases.
6. The Company respectfly submits that the Commssion's approval of Rocky
Mountain Power's Application, including the approval and implementation of the proposed
ECAM as filed, is in the public interest. In accordance with Commission Rule 121(d), Rocky
Mountain Power represents that it stads ready for immediate consideration of this
Application.
1 Sta up fuel is accounted for separte from the priar fuel for steam power generation plants. Sta up costs
are not accounted for separately for natual gas plants, and therefore all fuel for natul gas plants is included in
actul net power costs.
APPLICATION OF ROCKY MOUNTAIN POWER Page 3
WHREFORE, Rocky Mountain Power respectfuly requests that the Commission
issue a fial order approving the Company's proposed Energy Cost Adjustment Mechansm
effective coincident with new rates resulting from Case No. PAC-E-08-07.
DATED ths 23rd day of October, 2008.
Respectfully submitted,
B~E,~~li'
Danel E. Solander i
Attorney for Rocky Mountan Power
APPLICATION OF ROCKY MOUNTAI POWER Page 4