20090310Decision Memo.pdf

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DECISION MEMORANDUM
TO: COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER IQMPTON
COMMISSION SECRETARY
LEGAL
WORKNG FILE
FROM:BRYAN LANSPERY P4C-E~ò9-0(
DATE:MARCH 6, 2009
RE:PACIFICORP ADVICE NO. 09-01 RATE SCHEDULE 72A
BACKGROUND
On Febru I 1,2009, PacifiCorp, dba Rocky Mountain Power ("Company"), proposed a
number of modifications to Schedule No. 72A, the Irrigation Load Control Credit Rider Dispatch
Program. Specifically, the Company proposed revisions to Tariff Sheet Nos. 72A.l, 72A.2,
72A.3 and 72A.4 as follows:
. Sheet No. 72A. i; specify rationale for preseason internet access.
. Sheet No. 72A.2; revise language to allow the Company to issue a credit in lieu of
a check for the Load Control Service Credit ("Credit"), at its discretion, at the end
of the season;
o Clarfy how average demand is calculated when two years of usage history
is unavailable;
o Add language to specify that the tiered Credit was designed to promote
parcipation; and
o Correct the notification date for paricipation from February 15 to April is.
. Sheet No. 72A.~; add language to clarfy notification procedures for a dispatch
event.
. Sheet Nos. 72A.3 to 72A.4; revise language to the liquidated damages section from
actual prices paid, by the Company for replacement power to the day ahead on-
peak price at Four Comers as quoted at the Intercontinental Exchange (ICE).
The Company requested an effective date of March 13,2009.
DECISION MEMORANDUM MARCH 6, 2009
STAFF ANALYSIS
The Stafhas reviewed the submitted tariff revisions, and believes that while certin
changes are relatively minor, some are substantive and warrant further review. Particularly, Staff
believes that the changes to Sheet No. 72A.2, permitting the Company, at its discretion, to credit
accounts rather than send checks to paricipants at the end of the season for the Credit is a
signficant depare from previous practices. Furermore, the language is vague and devoid of
any gudelines for when a credit is waranted over issuing a check. Informal discussions with the
Company show that irrgation customers are generally unsupportive of the change.
STAFF RECOMMENDATION
Staff requests tht the filing be suspended and processed under Modified Procedure.
Doing so would permit interested paries an opportity to provide input, as well as allowing the
Company to design a more definitive protocol regarding credit issuance. Staffhas informed the
Company about its concerns, and the Company ha assured Staff that supension of the taiff
advice will not unduly impact the 2009 Irgation Load Control Season.
COMMISSION DECISION
Does the Commission wish to suspend Tarff Advice No. 09-01 and proceed under
Modified Procedure?
i:udmemosIacifiCorp Suspend09-Q1 (2).doc
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DECISION MEMORANDUM MARCH 6, 2009