20100201Application.pdf

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201 South Main, Suite 2300
Salt Lake City, Utah 84111
Februar 1,2010
VI OVERNIGHT DELIVERY
Jean D. Jewell
Commission Secreta
Idaho Public Utilties Commssion
472 W. Washington
Boise, ID 83702
Re: Case No. PAC-E-lO..01
In the Matter of the Application of Rocky Mountain Power for Recovery of the Energy
Cost Adjustment Deferred Balance and Approval of taff Schedule 94
Dear Ms. Jewell:"
Please fid enclosed for fiing an origina and nine copies of Rocky Mountain Power's
Application in the above-referenced matter, along with nie copies of Rocky Mountan Power's
direct testimony and exhbits. Also enclosed is a CD contag the Application, dict
testimony and exhbits.
All formal correspondence and questions regarding ths Application should be addressed to:
Ted Weston
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lae City, Uta 84111
Telephone: [phone]
Fax: [phone]
Emal: ted.weston(ßacificorp.com
Yvonne Hogle
Rocky Mountain Power
201 South Mai Street, Suite 2300
Salt Lae City, Uta 84111
Telephone: [phone]
Fax: [phone]
Email: yyonne.hogleCipacificorp.com
Communcations regarding discovery matters, including data requests issued to Rocky Mounta
Power, should be addressed to the followig:
By E-mail (preferred):datarequestCipacificorp.com
By reguar mail:Data Request Response Center
PacifiCorp
825 NE Multnomah St., Suite 2000
Portland, OR 97232
Idaho Public Utilties Commssion
Februar 1,2010
Page 2
Informal inquires may be dircted to Ted Weston, Idaho Reguatory Manager at (801) 220-
2963.
Very try your,
~ tJ /.Jiw
Vice President, Regulation
Enclosures
Yvonne R. Hogle
201 South Mai Stret, Suite 2300
Salt Lae City, Uta 84111
Telephone No. [phone]
Facsimile No. [phone]
E-mail: yyonne.hogleCipacificorp.com
eEl
2010 FEB -I AM 9: 22
Attorney for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION
IN THE MATTER OF THE APPLICATION ) CASE NO. PAC-E..IO-l
OF ROCKY MOUNTAIN POWER FOR )
AUTHORITY TO IMPLEMENT POWER )" APPLICATION OF ROCKY
COST ADmSTMT RATES FOR) MOUNTAIN POWER
ELECTRIC SERVICE FROM APRIL 1, 2010 )
THROUGH MACH 31, 2011 THOUGH)
THE ENERGY COST ADmSTMENT)MECHAISM )
Rocky Mounta Power, a division of PacifiCorp ("Company" or "Rocky
Mountan Power"), in accordace with Idaho Code §61-502, §61-503, and RP 052,
hereby respectfuly submits ths application ("Application") to the Idao Public Utilities
Commssion ("Commission") pursuat to its approved energy cost adjustment
mechansm ("ECAM"), requesting approval to create Schedule 94, Energy Cost
Adjustment, and establish the net power cost ("NPC") rate for all customer classes
intially excludig taff contrts based on the deferr period beging July 1, 2009
though November 30,2009. The Company is proposing to recover approximately $2.2
milion in total deferred net power costs for the period beginng April 1, 2010 though
March 31, 2011. Rocky Mountan Power respectfly requests that ths increase in Idao
rates become effective on April 1, 2010, puruat to Schedule 94. In support of its
application, Rocky Mountain Power states as follows:
1. Rocky Mounta Power is a division of PacifiCorp, an Oregon
corporation, which provides electrc service to retal customers though its Rocky
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Mounta Power division in the states of Idao, Wyoming, and Uta. Rocky Mounta
Power is a public utilty in the state of Idaho and is subject to the Commssion's
jursdiction with respect to its prices and terms of electrc service to retal cusmers in
Idao. Rocky Mounta Power is authorized to do and is doing business in the state of
Idaho providing retal electrc service to approximately 69,000 customers in the state.
2. Communcations regarding this filing should be addressed to:
Ted Weston
Idaho Reguatory Affairs Manger
Rocky Mounta Power
201 South Main, Suite 2300
Salt Lake City, Uta 84111
Telephone: (80l) 220-2963
Email: ted.westonCipacificorp.com
Yvonne R. Hogle, Senior Counsel
Rocky Mountan Power
201 South Main, Suite 2300
Salt Lake City, Uta 84111
Telephone: [phone]
Email: Yvonne.hogleCipacificorp.com
3. In addition, Rocky Mounta Power requests that all data requests
regarding ths application should be sent in Microsoft Word or plain text format to the
followig:
By eml (peferred):dataequestCipacificorp.com
By reguar mail:Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
Informal questions may be directed to Ted Weston, Idao Reguatory Afairs
Manager at [phone].
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Brief Overvew of the ECAM
4. On October 23, 2008, Rocky Mountan Power filed an application with the
Commission, Case No. PAC-E-08-08, seekig approval of an ECAM. Afer meeting with
sta and other pares over a period of approximately four months, the Company and the
pares entered into a stipulation agreing to the tye of ECAM that would be acceptable
to all the paries. On June 29, 2009, the paries filed said ECAM Stipulation with the
Commission.
5. On September 29, 2009, by Order No. 30904 issued in Case No. PAC-E-
08-08, the Commssion approved the implementation of an anua ECAM.
6. By agreement, the costs that ar to be included in the ECAM are all net
power costs that are defined in the Company's genera rate cases an modeled by the
Company's production dispatch model GRID. Specifically, base and actu NPC include
amounts booked to the followig FERC accounts: Account 447 (sales for resale,
excluding on-system wholesale sales and other revenues not modeled in GRI), Account
501 (fuel, steam generation, excluding fuel handling, sta up fuel/gas, diesel fuel,
residua disposal and other costs not modeled in GRI), Account 503 (steam from other
sources), Account 547 (fuel, other generation), Account 555 (purchaed power, excluding
BP A residential exchage credit pass-though if applicable), and Account 565
(tranmission of electrcity by others).
7. The ECAM allows the Company to collect or credit the differences
between the actu net power costs (''NC'') incured to serve customers in Idao and the
NPC collected from Idaho customers through rates set in genera rate cases.
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8. On a monthy basis, the Company compares the actu system net power
costs ("Actul NPC") to the net power costs embedded in rates frm the most recent
general rate case ("Base NPC"), Case No. PAC-E-08-07, and defers the differences into
the ECAM balancing account. Ths comparson is on a system-wide basis and in dollar
per megawatt-hour basis.
9. In addition to the comparson of Actu NPC to Base NPC, the ECAM
includes thee additional components: the Load Growt Adjustment Rate ("LGAR")
revenues, a credit for SOi allowance sales, and a renewable resource adder. These
components are described in more detl below.
10. Finlly, the ECAM includes a symetcal shag band of 90 percent
(customers) / 10 percent (Company) that shares the NPC differential between Actu
NPC and Base NPC, SOi saes and LGAR revenues between the customers and the
Company. The sharg band is also describe in more detal below.
Proposed Deferred Net Power Cost Rate Increase
11. In support of ths Application, Rocky Mountain Power ha filed the
testimony and exhbits of Company witness Hui Shu. Ms. Shu's testimony provides the
NPC rate to be effective April 1, 2010 for the April 1, 2010 thugh March 31, 2011
period. Ms. Shu describes the Actu NPC incurd by the Company to serve retail load
for the historical 5-month perod ended November 30, 2009. The deferral period, for the
first year of the ECAM only, is from July 1, 2009 through November 30, 2009.
Thereafer, the deferr period will be from December 1, though November 30, with a
rate effective date of April 1.
12. In ths Application, Ms. Shu's Exhibit 1 to her testimony ilustrtes the
detaled calculation of the deferred NPC adjustment. Staing with the base NPC in the
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amount of $982 millon, previously approved by the Commssion in its Order 30783, the
Company taes the monthy NPC from that amount and divides them by the monthly
normalized load used to determne NPC to express the costs on a dollar per megawatt-
hour basis (line 1 of Exhibit 1). The actu NPC rate on a dollar per megawatt-hour basis
is then calculated by tag the monthy actu NPC and dividing them by the actu
monthly system load (line 4 of Exhibit 1).
13. Next, the deferrable amount is calculated on a monthly basis by
subtracting the monthly base NPC rate from the actul NPC rate. This results in a
monthy NPC rate differential (line 5 of Exhibit 1) which is then multiplied by actul
Idaho retal load at input, excluding the taff contrct load (lines 6 and 7 of Exhibit 1).
Ths results in the NPC differential for deferr (line 8 of Exhibit 1).
14. As described in Ms. Shu's testimony, the LGAR is a symetrcal
adjustment to offset over or under collection of the Company's production related
revenue requiement, excluding NPC, due to varances in Idaho load. Puruat to
Commssion Order No. 30904, the Commission-approved symetrcal LGAR is $17.48
per megawatt-hour. Ms. Shu's testimony describes how the LGAR adjustment was
derived. Line 12 of Exhibit 1 in Ms. Shu's testimony ilustrtes the LGAR adjustment
used in ths docket.
15. Under ths Application, credits for SOi allowance sales revenues received
by the Company afer June 30, 2009 are included as an offset to the NPC deferr. Ms.
Shu's testimony describes how the SOi saes revenues were offset against deferred NPC
in ths docket. Line 17 of Exhibit 1 in Ms. Shu's testimony contas the tota Company
SOi sales revenues credited against the deferred NPC.
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16. Line 18 of Exhibit 1 in Ms. Shu's testimony contas the NPC differential
which is the sum of the deferral (line 8) plus the LGAR adjustment (line 12) plus the 802
sales revenues (line 17).
17. A sharng band between customers and the Company is included such tht
customers pay/receive the increase/decrease in Actu NPC when compared to Base
NPC, and the Company incurs/retans the remainig 10 percent. The sharng bands also
apply to the SOz and LGAR revenue components. Line 20 of Exhibit 1 in Ms. Shu's
testimony reflects the customers' shae of the NPC differential 80z offset, and LGAR
revenues.
18. Puruat to the ECAM, a renewable resources adder recognes tht the
Company has made signficant investments in renewable generation projects tht ar not
yet being recovered in Idaho rates, even though these projects provide signficant benefits
to customers. Specifically, the adjustment recognzes that actu NPC were reduced by
power generated from these renewable generation projects. Puruat to Commission
Order No. 30904, the Commssion approved a renewable resource adjustment of $55.00
per megawatt-hour multiplied by the actu megawatt-hour output generated by the
renewable resources tht were not included in rate base in Case No. PAC-E-08-07. Lines
21 though 23 of Exhibit 1 in Ms. Shu's testiony include a detaled calculation of ths
adjustment. Ms. Shu's testimony also includes the renewable generation projects tht are
included in the renewable resource adder in ths docket.
19. The tota amount to be recovered in the ECAM is the sum of the
components described above: (90% X (deferred NPC + LGAR revenues + 80z revenues)
+ the renewable resource adder). The balance is then added each month to the prior
month's balance, with a monthy caring charge based on the Commission-approved
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customer deposit rate for 2009 equa to two (2) percent. Lines 35 though 42 of Exhibit 1
in Ms. Shu's testimony iluste the detaled calculations. Finly, the Idaho deferred
NPC is approximately $2.2 milion. Ms. Shu's testimony includes a more detailed
explanation of (1) how the Company calculated the Idao deferred NPC, (2) the types of
adjustments that were made to Actul NPC durg the deferral period for ths
Application, and (3) the priar drvers that caused Actu NPC to be different from
Base NPC.
Allocation of Deferred NPC to Retail Tariffs
20. Pursuat to Schedule 94, the deferred NPC balance, plus interest, is
allocated to all retail taff rate schedules and, where applicable, to the demand and
energy components with each schedule based on the applicable allocation factors and
cost of service study relationships established in the 2008 general rate case in Cas No.
PAC-E-08-07. Exhibit 2 ofMs Shu's testimony ilustrates the allocation of the deferred
NPC price chage across rate schedules and the billng determants used for each rate
Schedule. Exhibit 3 shows the proposed taff Schedule 94.
21. Rocky Mountan Power is notifying its customers of ths Application by
means of a press release sent to local media organtions and messages in ,customer bils
over the course of a biling cycle. In addition, copies of ths Application will be made
available for review at the Company's local offices in its Idaho service terrtory.
22. WHEREFORE, Rocky Mounta Power respectfully requests that the
Commssion issue an order (1) authorizig that ths matter be processed by Modified
Procedure; (2) approve the ECAM deferrd balance; and (3) implement the proposed
electrc service schedule 94 as fied in Exhibit 3.
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DATED ths 1st day of Febru 2010.
Respectfuly submitted,
ROCKY MOUNTAI POWER
w
Yvonne R. Hogle
201 South Main Street, Suite 2300
Salt Lake City, Uta 84111
Telephone No. [phone]
Facsimile No. [phone]
E-mail: yyonne.hogleCipacificorp.com
Attorney for Rocky Mountain Power
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