20100520notice_of_application_order_no_31088.pdf

Office of the Secretary
Service Date
May 20 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP DBA ROCKY CASE NO. PAC-10-
MOUNTAIN POWER FOR APPROVAL OF
AN ACCOUNTING ORDER RECORDING NOTICE OF APPLICATION
CERT AIN POST-RETIREMENT
PRESCRIPTION DRUG COSTS AS A NOTICE OF
REGULATORY ASSET MODIFIED PROCEDURE
ORDER NO. 31088
On April 2, 2010, PacifiCorp dba Rocky Mountain Power ("Rocky Mountain" or
Company ) filed an Application with the Idaho Public Utilities Commission ("Commission
pursuant to Idaho Code ~~ 61-301 , 61-307, 61-622, and 61-623, for approval of an accounting
order authorizing the Company to record a regulatory asset associated with tax benefits
previously reflected in rates that will no longer be realized for certain costs incurred for post-
retirement prescription drug coverage as the result of the Patient Protection and Affordable Care
Act ("Act"
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Rocky Mountain s Application for an
accounting order was spurred by the passage of the Act on March 23 2010. The Act contains
provisions for a federal subsidy for employers offering post-retirement prescription drug
coverage to its retirees. According to Rocky Mountain, the Act changes the deductibility of
certain costs incurred for post-retirement prescription drug coverage. Prior to the Act, employers
were allowed to deduct the entire cost of providing the coverage, even though a portion is offset
by the subsidy. The Act eliminates the current rule permitting deduction of the portion of the
expense that is offset by the subsidy.
YOU ARE FURTHER NOTIFIED that Rocky Mountain requests authorization for
the recording of a regulatory asset to FERC Account 182.3 (Other Regulatory Assets) and a
credit to FERC Account 410.1 (Deferred Tax Expense) in order to recover the Idaho portion of
tax benefits previously reflected in rates that will no longer be realized as the result of the Act.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31088
YOU ARE FURTHER NOTIFIED that Rocky Mountain proposes that the
aforementioned regulatory asset should be amortized over a period of four years beginning
January 1 2011 , and reflect the amortization expense in the Company s next general rate case.
YOU ARE FURTHER NOTIFIED that Rocky Mountain estimates $30 million in
system-wide OPEB (Other Post-Employment Benefit) related costs associated with the change in
law.
YOU ARE FURTHER NOTIFIED that Rocky Mountain attributes approximately
$11.4 million of that amount to the first quarter of the 2010 calendar year resulting, when
amortized and grossed-up for tax effects, in a revenue requirement impact of approximately
$18.5 million on a total company basis and amortized over four years. The Company estimates
that Idaho s share of the regulatory asset is approximately $1.0 million.
YOU ARE FURTHER NOTIFIED that Rocky Mountain does not request a final
Commission decision regarding rate recovery in this filing.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than June 10,2010. The comment must contain a statement of reasons supporting the comment.
Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning this Application shall be mailed to the Commission and Rocky
Mountain Power at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31088
Street Address for Express Mail:
Ted Weston
Manager, Idaho Regulatory Affairs
Rocky Mountain Power
201 South Main Street, Ste. 2300
Salt Lake City, UT 84140
Mail: Ted.Weston0PacifiCorp.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5918
Daniel Solander
Senior Counsel
Rocky Mountain Power
201 South Main Street, Ste. 2300
Salt Lake City, UT 84140
Mail: Danie1.Solander0PacifiCorp.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.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that Rocky Mountain s Application seeking
Commission approval for an accounting order has been filed with the Commission and is
available for public inspection during regular business hours at the Commission offices. The
Application is posted on the Commission s web site at www.puc.idaho.gov and may be viewed
by clicking on "File Room" and then "Electric Cases.
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 and specifically
Idaho Code ~~ 61-301 61-307 61-622, and 61-623. The Commission may enter any final Order
consistent with its authority under Title 61.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31088
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that Rocky Mountain Power s Application be processed
under Modified Procedure. Persons interested in submitting written comments regarding this
case or protesting the use of Modified Procedure should do so no later than June 10 2010.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this c?tO -f-"
day of May 2010.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~1J~~
D. Jewell
Commission Secretary
O:PAC-IO-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31088