The URL can be used to link to this page

Home My WebLink About20100528Fuller Direct.pdfBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE ) APPLICATION OF ROCKY ) MOUNTAIN POWER FOR ) APPROVAL OF CHANGES TO ITS ) ELECTRIC SERVICE SCHEDULES ) AND A PRICE INCREASE OF $27.7 ) MILLION, OR APPROXIMATELY )13.7 PERCENT ) CASE NO. PAC-E-10-07 2am HAY 28 PM 12= 07 Direct Testimony of Ryan R. Fuller ROCKY MOUNTAIN POWER CASE NO. PAC-E-10-07 May 2010 1 Q. 2 3 A. 4 Please state your name, business address and present position with PacifiCorp ("Company"). My name is Ryan R. Fuller and my business address is 825 NE Multnoma St., Suite 1900, Portland, OR 97232. My present position is Assistant Tax Director. 5 . Qualifications 6 Q. 7 A. 8 9 10 11 Q. 12 A. 13 14 Q. 15 A. 16 17 Q. 18 A. 19 20 21 22 23 Please describe your educational and professional background. I graduated from the University ofIdao in 1997 with a Bachelor of Science Degree in Accounting. I am a licensed CPA. Before joining the PacifiCorp ta deparment in 2003, I worked in public accounting for six years, first with Talbot, Korvola and Warick LLP and then for PricewaterhouseCoopers LLP. What are your responsibilties as Assistant Tax Director? My primary responsibilities include income tax accounting and providing support for the income tax component of the Company's regulatory filings. Have you testifed in previous regulatory proceedings? Yes. I have previously testified on behalf of the Company in the states of Oregon and Utah. What is the purpose of your direct testimony? My diect testimony addresses the calculation of the income tax portion of the Idao-allocated revenue requirement requested in this case. More specifically: . I provide background on the "repairs deduction," a temporar book-tax difference associated with a recent change in accounting method for income tax purposes. . I explain the Company's proposal for fully reflecting the benefits of the Fuller, Di - 1 Rocky Mountain Power 1 2 3 4 5 6 7 8 9 10 11 Q. 12 A. 13 14 15 16 17 18 19 20 21 22 23 repais deduction in this case, and propose the establishment of a regulatory asset or liabilty for interest paid to or received from the Internal Revenue Service C'IRS") on adjustments made to the repais deductions taken in the Company's 2008 and 2009 federal income tax returns. . I sponsor the Company's proposal to fully normlize the repairs deduction and all other temporar book-tax differences, with the exception of the equity allowance for funds used during construction ("equity AFUDC"), and . I discuss the revenue requirement impacts of an accounting application filed by the Company with regards to a recent change in tax law that affected the tax deductibility of post-retirement prescription drg benefits. Please explain the repairs deduction. Generally, the repais deduction permts a taxpayer to take a tax deduction for qualifying expenditues in the taable year paid or incurred even thoughthe same expenditures are required to be capitalized and depreciated for book purposes. An ilustrative example of the new method of accounting is provided in confidential Exhibit No. 41. For the Company, the repairs deduction is a change in accounting method that required approval from the IRS. The change in accounting method is applicable for income tax purposes only and does not impact the methods of accounting used for FERC or U.S. GAAP reporting purposes. Prior to the change in accounting method, the Company was capitalizing these costs in accordance with FERC accounting classifications and U. S. GAAP methods of accounting. The costs were then subject to accelerated tax depreciation. Fuller, Di - 2 Rocky Mountain Power 1 2 3 4 5 Q. 6 7 A. 8 9 10 11 12 13 14 15 16 17 18 19 Q. 20 21 A. 22 23 On December 30,2008, the Company filed applications with the IRSfor the change in accounting method (Form 3115). On October 2,2009, and October 7, 2009, the IRS granted the Company permssion to change its method of accounting beginning with the taable year beginning Januar 1,2008. Has the Company reflected the repairs deduction in its 2008 federal income tax return? Yes. The Company's 2008 federal income ta retu contains a repairs deduction for the taxable year ended December 31,2008, and a one-time adjustment (tax deduction) known as an Internal Revenue Code (IRC) Section 481(a) adjustment. IRC Section 481(a) adjustments are meant to prevent amounts from being duplicated or omitted in transition from the old method of accounting to the new method of accounting and are generally determned as if the new method of accounting had always been used. The Company's IRC Section 481(a) adjustment, which was taken as a deduction in the Company's 2008 federal . income tax return, is base on an analysis of the taxable years ended November 30, 1999, through December 31,2007. Confidential Exhibit No. 42 provides a summar of the IRC Section 481 (a) adjustment by year and the 2008 repais deduction as taen in the 2008 federal income tax return. Does the Company intend to reflect the repair deduction in its 2009 federal income tax return? Yes. Beginning with taxable year beginning J ariuar 1, 2008, the repairs deduction is the Company's ongoing method of accounting for qualifying expenditues. Accordingly, to the extent the Company incurs qualifying Fuller, Di - 3 Rocky Mountain Power 1 2 3 4 5 6 Q. 7 A. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Q. 22 A. 23 expenditures, a repairs deduction wil be taken in the Company's federal income tax retu for the respective tax year. In addition to the IRC Section 481(a) adjustment and the 2008 repairs deduction, Confidential Exhibit No. 42 provides the 2009 repais deduction estimated to be taken in the Company's 2009 federal income tax retu. Can you please ilustrate how an IRC Section 481(a) adjustment operates? Yes. As a simple example, assume a company that uses the accrual basis of accounting for both book and tax purposes accrues a $1,000 liabilty and related expense in year 1 and, in year 2, the company makes a cash payment to satisfy the recorded liabilty. Under the accrual basis of accounting, the company is entitled to a tax deduction in the year the expenditue is accrued. Accordingly, the company would take a $1,000 tax deduction in year 1. Now, assume that for income tax puroses only, the company changes to the cash basis of accounting in year 2. Under the cash basis of accounting, the company is entitled to a tax deduction in the year the expenditue is paid. Accordingly, the company would take another $1,000 tax deduction in year 2 for the same expenditure it deducted in year 1. However, in this example, the company would be required to record an IRC Section 481(a) adjustment increasing taxable income by $1,000 in the year of change, year 2, preventing the duplication. This example is ilustrated in Exhibit No. 43. What is the status of PacifiCorp's repairs deduction with the IRS? To date, the IRS has only granted the Company permssion to change its method of accounting beginning with the taxable year beginning Januar 1,2008. The Fuller, Di - 4 Rocky Mountain Power 1 2 3 4 5 Q. 6 A. 7 8 9 10 11 12 13 14 15 16 17 18 19 Q. 20 21 A. 22 23 amount of the IRC Section 481 (a) adjustment and the 2008 repais deduction taken as a deduction in the Company's 2008 federal income tax return are stil subject to adjustment by the IRS upon examation. The amount that wil ultimately be sustained upon examiation is sti uncertin. How has the Company proposed to treat the repairs deduction in this filing? Due to the uncertainty of how much of the repais deduction wil ultimately be sustained upon IRS examination, the Company proposes to reflect the repais deduction in a manner that also addresses its non-final natue. First, as discussed below, the Company has reflected the full value of the repais deductions taen or expected to be taken though December 31,2009, in this rate case through a reduction in rate base which wil be adjusted if necessar after the IRS has completed its examination of these repairs deductions and the final amount is known. Second, the Company respectflly requests that the Commssion approve the establishment of a regulatory asset or liability for the recovery of interest paid to or received from the IRS, if any, for adjustments made to the repai deductions taken in the Company's 2008 and 2009 federal income tax returns. This treatment allows the Company to pass though the benefits of repais deduction in this case to customers while holding the Company haress pending IRS examnation. What is the impact of the repairs deduction on revenue requirement in this case? The Company has reflected the temporar book-ta difference created by the repais deduction on a normlized basis, meaning that customers benefit from the accumulated deferred income tax liabilty generated by the repairs deduction by Fuller, Di - 5 Rocky Mountan Power 1 2 3 Q. 4 5 A. 6 7 8 9 10 11 12 13 Q. 14 15 A. 16 17 18 19 20 21 22 23 way of a rate base reduction. As enumerated in Exhibit No. 44, the rate base reduction reduces revenue requirement by $2.8 milion. Please explain how the Company has treated all other temporary book-ta differences in this filing. Consistent with the treatment of the repair deduction, the Company has reflected all other temporar book-tax differences on a normlized basis, with the single exception of the temporar book-ta difference associated with equity AFUDC. Historically, a limited number of property-related tempora book-tax differences have been reported on a flow-though basis in Idaho. As enumerated in Exhibit No. 45, reporting these temporar book-tax diferences on a normalized basis increases revenue requirement by $147,033 compared to continuing to report these same book-tax differences on a flow-through basis. Is the Company proposig to move to full normalization in this rate case? If yes, why? Yes. The Company is proposing to move to the fully normalized treatment of income taxes. There are policy and practical reasons underlying this proposal. As a policy matter, the Company supports tax normalization based on the matching principle and intergenerational equity. Tax normalization matches tax benefits with cost responsibilty and prevents customers who pay for the cost of an asset well past its tax life from paying a disproportionately higher tax rate than customers that pay for the same asset durng its tax life. Because tax normalization matches tax benefits with cost responsibility, all customers pay the same effective tax rate over the asset's entire life. Fuller, Di - 6 Rocky Mountain Power 1 2 3 4 5 6 7 8 Q. 9 10 A. 11 12 13 14 15 16 17 18 19 20 Q. 21 22 23 A. As a practical matter, the Company's income taxes are normalized in Oregon, Utah, and Wyoming, which account for approximately 85 percent of the Company's total regulated operations. The Company is also pursuing this treatment in California and Washington. Ideally, the Company would have a single and consistent policy across all of its.regulated operations which would provide benefits by increasing efficiency in the Company's income tax accounting and reporting processes and income tax accounting systems. Does the repairs deduction ilustrate the policy reasons supporting the Company's proposal to normalize all temporary book-tax differences? Yes. Under the flow-through treatment of the repairs deduction, there are significant out-of-period issues with respect to the IRC Section 481(a) adjustment and the 2008 repairs deduction. As enumerated in Exhibit No. 46, under flow- through accounting, 83 percent of the tax benefits from the repairs deduction ($21.0 millon of the total of $25.4 millon in Idaho-allocated tax benefits generated through the taxable year ended December 31, 2009), would be considered out-of-period. In contrast, under the Company's proposalfor full normlization, customers receive all of the tax benefits of the repairs deduction. This demonstrates how tax normization creates a more balanced outcome between the Company and its customers. Why doesn't the Company propose to normalize the repairs deduction only and continue flow-through treatment for all other temporary book-tax differences? This approach does not satisfy the practical and policy considerations discussed Fuller, Di - 7 Rocky Mountain Power 1 2 3 4 5 6 7 8 9 10 11 12 13 Q. 14 A. 15 16 17 Q. 18 19 .A. 20 21 22 23 above. Additionally, it's possible that a policy of selective determnation of the regulatory treatment of individual temporar book-tax differences could create uncertainty as to the correct accounting treatment of the deferred income taxes generated by the Company's temporar book-tax differences for SEC and FERC financial reporting purposes. Accordingly, with the normalization of the repais deduction, the Company has also normlized all other temporar book-tax differences, with the single exception of the temporar book-tax difference associated with equity AFUDC. This is consistent with how the Company accounts for temporar book- ta diferences in other states and establishes an ongoing regulatory policy for the treatment of income taxes for the Company in Idao that is balanced and consistent. Are you recommending adoption of tax normalization for PacifiCorp? Yes. The Company respectfully requests that the Commssion authorize the Company to hencefort account for Idaho-allocated income taxes not currently normalized on a fully normalized basis beginning Januar 1,2011. Why is the Company proposing to exempt the temporary book-tax difference related to equity AFUDC from its proposal for full normalization? The Company has reviewed the income tax normlization policy for equity AFUDC and has determed that, because equity AFUDC more closely resembles a permanent difference for ratemakng purposes, an income tax flow-though policy is more appropriate than normalization. Equity AFUDC increases the book basis of assets. It originates as book Fuller, Di - 8 Rocky Mountain Power 1 income and reverses as an expense though book depreciation. Overthe book life 2 of the related asset, equity AFUDC has no net impact on book income. Equity 3 AFUDC also has no impact on taxable income because the income created by 4 equity AFUDC is never taxable and the book depreciation attributable to equity 5 AFUDC is never deductible for income tax puroses. Items of book income or 6 expense that are never taxable or never deductible for income tax puroses are 7 typically considered permnent book-tax differences for income tax accounting 8 puroses. Permanent book-tax differences do not generate deferred income tax 9 expense because there is no corresponding future event that wil generate a tax 10 receivable or payable on an income tax return. 11 However, because of the unique "in-and-out" aspect of equity AFUDC for 12 book purposes, accounting guidance recommends that equity AFUDC be tracked 13 as a temporar book-tax difference for income tax accounting puroses. Equity 14 AFUDC is a temporar book-ta difference in the sense that it ultimately has the 15 same impact on book income and taxable income - zero. For income tax 16 accounting puroses, the temporar book-tax diference for equity AFUDC 17 generates deferred income tax liabilty upon origination, with a corresponding 18 debit to deferred income tax expense. As the temporar book-tax difference 19 reverses over the book life of the related asset, the income tax accounting entr is 20 to debit the deferred income tax liabilty and credit deferred income tax expense 21 until the deferred income tax liabilty is brought down to zero. 22 Accordingly, because deferred income taxes are included in revenue 23 requirement under a policy of income tax normlization, normaliation of this Fuller, Di - 9 Rocky Mountain Power 1 2 3 4 5 6 7 8 9 10 11 Q. 12 13 A. 14 15 16 17 18 19 20 21 22 item in rates effectively results in a loan to the Company from customers that is retued to them over time with interest at the Company's rate of retu with no tax impacts or payments to the IRS. Under flow-though accounting, the deferred income taxes generated by equity AFUDC never impact revenue requirement, which is appropriate since there is no corresponding income tax payable or receivable between the Company and the IRS. . Currently, the Company uses flow-though accounting for the deferred income taxes generated by equity AFUDC in all of its regulatory jurisdictions, including those regulatory jurisdictions that have adopted a policy of income tax normalization. Did the Company recently file an accounting application regarding income taxes? Yes. On March 23, 2010, the Patient Protection and Affordablè Care Act ("the Act"), was signed into law. 1 The Act changes the deductibilty of certin costs incurred for post-retirement prescription drg coverage. On April 2, 2010, the Company filed an accounting application (Case No. PAC-E-1O-04) to request authorization for the recording of a regulatory asset for tax benefits previously reflected in rates that wil no longer be realized as the result of the Act. In the application, the Company proposes to amortize the regulatory asset over a period of four years beginning Januar 1,2011, and to reflect the amortzation expense in the Company's next general rate case. Subject to the Commssion's approval of the Company's application, the Company has included $209,996 for the first i Certai prvisions of the Act were subsequently modifed by the Health Care and Education Reconciliation Act, which was signed into law on March 30, 2010. Fuller, Di - 10 Rocky Mountan Power 1 year of amortization in computing revenue requirement in this case. Additionally, 2 the Company has made an adjustment to the base period to properly reflect the 3 Company's ongoing level of income tax expense as a result of the Act? 4 Q.Doe this conclude your direct testimony? 5 A.Yes~ 2 See adjustment 7.9. Fuller, Di - 11 Rocky Mountain Power CONFIDENTIAL Case No. PAC-E-I0-07 Exhibit No. 41 Witness: Ryan R. Fuller BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER CONFIDENTIAL Exhibit Accompanying Direct Testimony of Ryan R. Fuller PrceWaterhouseCoopers - Tax Repais May 2010 THIS EXHIBIT IS CONFIDENTIAL AND IS PROVIDED UNDER SEPARATE COVER CONFIDENTIAL Case No. PAC-E-I0-07 Exhibit No. 42 Witness: Ryan R. Fuller BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER CONFIDENTIAL Exhibit Accompanying Direct Testimony of Ryan R. Fuller IRC Section 481 (a) Repais DeduCtion May 2010 THIS EXHIBIT IS CONFIDENTIAL AND IS PROVIDED UNDER SEPARATE COVER Case No. PAC-E-I0-07 Exhibit No. 43 . Witness: Ryan R. Fuller BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER Exhibit Accompanying Direct Testimony of Ryan R. Fuller Ilustration of Section 481 (a) Accounting May 2010 PacifiCorp IRC Secion 481(a) Adjustment Example Rocky Mountain Power Exhibit No. 43 Page 1 of 1 Case No. PAc.E-10-D7 Witness: Ryan R. Fuller ¡l¡:!¡¡¡!¡!!!!:!!!!!!!!!!!!!¡!¡!!!¡::::::!¡:!:!::¡::::¡::::¡:::::¡iiii:i:::::::::¡::::::i:ii¡ii¡¡::¡::::::::!::::::::!¡¡¡I¡¡¡¡¡¡¡¡¡¡¡:¡¡¡¡¡¡i¡¡¡¡¡¡:¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡:¡¡:¡¡¡¡¡¡¡¡!¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡ Method ofAccountingfor Income Tax Purposes Year 1: Accrual Basis Year 2:Cash Basis Total Pre-Tax Book Income .......................................(1ßO.9.1 0 .......................................l.yl.9())...................................-......__.-.-...-.-....-............................................................................................ Book-Tax Difference 0 (1,000)(1,000) T~.i..~.~.I.~..I.n.~.i:.~.~~!J.i:.!~~.~~~!~~.~~l.a.i.J\~IIl~t.i:.e.n.t................................................Jy~~~1 ......................................(~!().().().i .......................................(~~~~~i IRe Section 481(a) Adjustment 0 1,000 1,000 Taxable Income After IRC Section 481(a)Adjustment (1,000)0 (1,000) Case No. PAC-E-I0-07 Exhibit No. 44 Witness: Ryan R. Fuller BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER Exhibit Accompanying Direct Testimony of Ryan R. Fuller Repairs Deduction Impact May 2010 PacifiCorp Revenue Requirement Impact of Idaho Allocated Repairs Deduction Rocky Mountain Power Exhibit No. 44 Page 1 of 3 Case No. PAC-E-10-Q7 Witness: Ryan R. Fuller Item Reference Amount ~i:i:~I!~ ~~~~~. .I?~!~~~. .1~~l?I!~.T. ~.~. .~~~~~~i.ty.:. ~~~i ~!t ~~~~~~.~..( ~.?/~ Y?~~~L............................................................~l:.~....................................!.~~!~~.y~~?). Pre-Tax Return on Rate Base A 11.77% Revenue Requirement Impact ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡~ ¡~¡~~~ ~ ~~~¡ii i¡ ~i~¡iii ¡i¡iiii; ¡i ¡i ¡i ¡ i¡ iii ¡ ¡ ¡ ¡ ¡ ¡ ¡ t ¡ ¡ ¡ ¡ i¡ iii ¡ i¡iiii!:(2,823,963) Weighted Average Cost of Capital: 2010 ID GRC Item Capital Structure Embeded Cost Weighted Cost Tax Gross-Up Pre-Tax Cost DEBT 47.60%5.92%2.82%1.000000 2.82%..................................................................................................................................................................................................................................................... PREFERRED 0.30%5.41%0.02%1.615384 0.03%.....................................-............................................................,..........................-..-.......................-....................-.................................................................. COMMON 52.10%10.60%5.52%1.615384 8.92% TOTAL 100.00%~ ~ ~ ~ ~ ~~~~ ~ ~ ~~t~~~ ~~~ ~ ~~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~~~~~~ ~~ ~~~ ~ ~ ~~~ ~~~~~~~~~~ ~~~~~~ ~~~~~~~~8.36%~~~ t ~~~~~~~~~~~~~ ~~~ ~~~ ~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~~ ~ ~~~~~~~~~~~~~~~~~~¡¡~ ~ ~¡ ~ ~ ~ ~ ~; ~ ~11.77%A Sc h e d u l e M T y p e U I d a h o . 10 3 1 E x c h a n g e 10 3 3 N o n R è c G a i n AC R S _ F e d AD R . R e p a i r A l l o w a n c e AF U D C ~ O e b t . F e d AF U D C _ D e b C F e d _ I N T A N G AF U D C _ E q u i t y ; . F e d AF U D C _ E q u l t y ; . F ê d _ I N T A N G Av o i d _ C o s t F e d Av o i d e d C o s A d j u s Ba s Ï $ _ B o o k _ O n l y Ba s Ï $ _ T a x _ O n l y ao o k O n l y Bo o k R e s r v e i n A c q u Ï $ i t i o n Bo o l L N o C T a x _ F e d Ca p D e p r A d j u s Ca p L a b o r - M & E l M e d i c a r e Ca p P e n s i o n l E R P Ca p Ta x De p r Ca p i t a r i z S i c k L e a v e Ca p i t l z e d _ W a g e s _ F e d CI A C _ F e d Co a L E x _ D e v _ F e d Hi g h w a y . R e l o c IT C _ B a i s _ R e d u c t i o n _ F e d NO n t R e i m b A d j u s Or e g o n E x t r B o o k D e p r Ot h e r a o ø k fi ~ A C R S _ F e d P . . I t L i f ê ~ F e d P _ A F U D C _ E q u i t y _ F e d P _ B a s I E L B o ø k _ O n l y P _ B a s l s : . i D O n l y P _ I T a . B a s Ï $ _ R e d u c t l o n ~ F e d P _ M e t h o d _ L i f e _ F e d Pr o t e c t d R e p a i r D e d u c t RA A d j u s t Se c t o n 1 7 4 SH L Ta x . O n l y Pa g e 1 3 of 24 Cu r r n t Di f f r e n c e ($ 5 5 , 6 0 2 ) ($ 3 0 4 , 4 2 0 ) $8 0 9 , 5 9 8 , 8 6 3 ($ 2 , 1 1 1 , 0 7 2 ) $2 5 , 7 1 7 , 0 7 5 ($ 1 , 2 3 , 2 6 3 ) $5 0 , 2 6 5 , 0 4 9 ($ 2 7 8 , 5 8 9 ) ($ 4 1 , 5 6 8 , 7 1 9 ) $6 8 1 , 3 4 7 ($ 5 0 1 , 0 0 2 ) $0 ($ 9 , 2 7 4 , 8 4 ) ($ 4 , 8 7 6 , 9 2 6 ) ($ 2 , 1 5 7 ; 4 5 5 ) ($ , o a 3 ) $9 , 4 2 6 , 9 3 8 $3 2 , 3 0 5 ($ 2 , 7 1 4 , 3 2 5 ) ($ 2 6 , e e , 8 3 6 ) $3 7 0 , 8 6 5 ($ 1 9 , 2 2 , 4 3 ) $1 9 5 , 6 7 4 $1 , 6 4 9 , 8 8 0 ($ 1 3 5 , 2 1 2 ) ($ 9 1 6 , 5 0 0 ) ($ 9 , 5 8 2 , 9 1 9 ) $0 ($ 4 , 7 8 4 , 1 3 6 ) $1 4 , 5 5 5 ($ 2 , 8 9 7 , 1 9 7 ) ($ 4 , 8 8 3 , 2 3 3 ) $1 , 3 2 6 ($ 4 1 , 3 5 4 ) ($ 1 9 , 2 1 3 , 7 8 1 ) $3 7 8 , 3 6 9 . 1 6 7 ($ 1 6 2 , 5 0 3 ) ($ 8 , 4 1 3 , 1 1 8 ) ($ 2 , 2 7 , 0 5 2 ) $1 1 , 3 2 0 , 1 2 3 Pa c l f i C o r p E x c e S $ R a t e R e p ó r t Rp t f # 1 6 6 1 / 6 1 1 0 1 0 ~ 4 2 A M . P a c l f C o r p 62 5 : 2 0 0 9 Y t . e n d P r o v i s i o n - U P D A T E D 20 0 9 AL L V I N T A G E S CU r r A i i o c a t e d Fl o w T h r o u g h Di f f e r e n c e Cu r r A l l o c a t e d Di f f e r e n c e ($ 3 , 4 5 9 ) $0 $4 8 , 6 8 5 , 1 0 2 ($ 1 0 5 , 1 9 1 ) $1 , 5 7 8 , 7 6 6 ($ 7 s , 7 6 ) $3 , 0 6 8 , 9 5 6 ($ 1 7 , 3 2 9 ) ($ 2 , 4 3 6 , 9 4 0 ) $3 4 , 6 3 0 . (m . 7 2 4 ) $0 ($ 4 , 7 7 7 ) ($ 3 0 3 , 3 5 2 ) ($ 1 2 G , 9 1 7 ) ($ 1 , 3 0 9 ) $6 5 6 , 9 6 8 $1 9 , 4 1 9 ($ 1 3 / , 6 0 0 ) ($ 1 , 5 1 8 , 3 1 3 ) $1 8 , 8 2 9 ($ 7 8 9 , 9 1 0 ) $1 2 , 6 1 8 $8 1 , 2 1 4 . ($ 8 , 4 1 a ) ($ 4 1 , 9 8 9 ) $0 $0 ($ 2 ) ($ 2 ) $0 $0 $2 $0 $1 , 9 0 3 $2 1 , 8 2 2 , 3 3 4 ($ 2 1 , 5 4 ) ($ 4 9 1 , 3 8 8 ) ($ 1 3 1 , 2 0 7 1 $6 0 0 , 6 8 4 ($ 3 , 4 5 9 ) $0 $0 ($ 1 0 5 , 1 9 1 ) $1 , 5 7 s , 7 1 ì $0 $3 , 0 6 8 , 9 5 6 $0 $1 1 5 , 1 9 2 $3 4 , 6 3 0 ($ 2 9 , 7 2 4 ) $0 ($ 4 4 5 , 1 7 1 ) $0 ($ 7 8 , 8 8 7 ) ($ 1 , 3 0 9 ) $5 5 8 , 9 5 8 $1 9 , 4 1 9 ($ 1 3 5 , 6 0 0 ) ($ 1 , 5 7 8 , 3 1 3 ) $1 8 , 8 2 9 $1 , 5 0 3 , 4 2 9 $. 1 2 , 6 1 8 ($ 6 , 5 6 5 ) ($ 8 , 1 3 6 ) ($ 4 1 , 9 8 9 ) $0 $0 $0 ($ 0 ) $0 $0 $2 $0 $1 , 8 3 3 $0 $6 8 , 7 1 3 $0 $0 $6 0 0 , 6 8 4 CU i T . A i í o c a t e d No r m a l Di f f r e n c e $0 $0 $4 8 , 6 8 5 , 0 2 ($ 0 ) $0 ($ 7 3 . 0 7 6 ) $0 ($ 1 7 , 3 2 9 ) ($ 2 , 5 5 2 , 1 3 2 ) $0 $0 $0 $0 ($ 3 0 3 , 3 ~ ) ($ 4 2 , 0 3 0 ) $0 $0 $0 $0 $0 $0 ($ 2 , 2 9 3 , 3 3 9 ) $0 $8 7 , 7 7 9 ($ 2 7 4 ) $0 $0 $0 ($ 2 ) ($ 2 ) $0 $0 $0 $0 $7 0 $2 1 , 8 2 2 , 3 3 ($ 8 9 , 8 2 7 ) ($ 4 9 7 , 3 8 8 ) ($ 1 3 1 , 2 0 7 ) $0 Cu r r n t C u r r D e e r r d T a x De f e r r d Ta x A t St a t u t o $0 $a $1 8 , 3 2 8 . 8 0 6 $0 $0 ($ 2 7 , 3 4 9 ) $0 ($ 6 , 1 4 0 ) ($ 9 7 2 , 8 8 1 ) $0 $0 $0 $0 ($ 1 0 7 , 4 7 9 ) ($ 2 0 , 0 1 7 ) $0 $0 $0 $0 $0 $0 ($ 8 7 0 , 3 4 ) $0 $3 3 , 3 9 . 1 ($ 9 7 ) $0 $0 $0 ($ 1 ) .( $ 1 ) $0 $0 $0 $0 $3 $8 , 2 8 1 , 7 9 4 f 6 . 1 - ($ 5 , 6 2 5 ) ($ 1 8 7 . 0 7 7 ) ($ 4 5 , 9 2 2 ) $0 ($ 1 , 3 1 3 ) $0 $1 8 , 4 7 6 , 8 3 ($ 3 $ , 9 2 1 ) $5 9 9 , 1 5 7 ($ 2 7 , 7 3 3 ) $1 , 1 6 4 , 6 9 9 ($ 6 , 5 7 6 ) ($ 9 2 4 , 8 4 3 ) $1 3 , 1 4 2 ($ 1 1 , 2 8 1 ) $0 ($ 1 6 9 , 1 7 7 ) ($ 1 1 6 , 1 2 5 ) ($ 4 5 , 8 8 9 ) ($ 4 9 7 ) $0 $7 , 3 7 0 ($ 5 1 , 4 6 1 ) ($ S 9 8 , 9 8 6 ) .$ 7 , 1 4 6 ($ 2 9 9 , 7 7 9 ) $4 , 7 8 9 $3 0 , 8 2 1 ($ 3 , 1 9 2 ) ($ 1 5 , 9 3 5 ) $0 $0 ($ 1 ) ($ 1 ) $. 0 $0 $1 $0 $7 2 2 $8 , 2 8 1 . 7 9 4 ($ 7 , 9 9 0 ) ($ 1 8 8 , 1 6 4 ) ($ 4 , 9 2 2 $2 2 , 9 6 6 Ex c e s D . e b i t (E x C ê C r e i t ) $1 , 3 1 3 $0 ($ 1 4 7 , 6 7 7 ) $3 9 , 9 2 1 ($ 5 9 9 , 1 5 7 ) $3 8 4 ($ 1 , 1 6 4 , 6 9 9 ) $. 4 3 7 ($ 4 8 , 0 3 8 ) ($ 1 3 , 1 4 2 ) $1 1 , 2 8 1 $0 $1 6 9 , 1 7 7 $7 , 6 4 6 $2 5 , 8 7 2 $4 9 7 $0 ($ 7 , 3 7 0 ) $5 1 , 4 6 1 $5 9 8 , 9 8 6 ($ 7 , 1 4 6 ) ($ 5 7 0 , 5 6 6 ) ($ 4 , 7 8 9 ) $2 , 5 6 9 $3 , 0 9 6 $1 5 ; 9 3 5 $0 $0 $0 $0 $0 $9 ; ( ) m : ; ($ ' l ~ ~ g $I t C D g : ~ It z . . ($ 7 1 9 1 9 z ~ ($ i i ' 1 9 i : $2 ; 3 d i ' t ~ $1 6 6 ' " m ' 1 : r 't . v ' I , Q ) " " ($ a r o ~ ~ Ai " ' ' ' ($ 2 2 7 , 9 6 ~ ~ 0 g ¡ ..c. Se h é d u l e M T y p é . U l d a h O Ta x _ N o t _ B o o k . F e d TE T PO W E R U_ A C R S _ F e d U- f O R _ L i f e _ F e d U_ A F U D C _ E q u l t _ F e d U_ B a $ i s . . B o o k _ O n l y U_ B a $ i S _ T a x _ O n l y U_ G L _ U f e ; . F e d U_ 1 T C _ B a s l s _ R e d u c t i o n _ F e d U_ M e t h o d _ F e d Un p r o t e e d R e p a i r D e Q u e t To t a l f o r l I I d a h o : Pa g e 14 of 24 Cu r r e n t Di f f r e n c e ($ 1 , 8 0 4 , 0 7 8 ) $1 , 3 3 6 , 0 9 3 ($ 2 1 , 7 2 7 , 6 7 3 ) ($ 3 0 1 , 6 8 6 ) ($ 2 , 3 9 0 , 5 9 5 ) ($ 4 , 9 8 5 , 5 7 1 ) $8 , 5 8 4 ($ 1 6 , 8 9 8 , 3 1 3 ) ($ 3 9 4 , 0 8 4 ) ($ 2 , 1 8 8 , 3 4 4 ) $7 0 9 , 7 0 9 , 3 1 6 $1 , 7 8 3 , 6 7 6 , 3 2 8 pa c l f ó r E X c e s s R a t R e p o r t Rp t # 1 6 6 1 1 6 1 2 0 1 0 1 0 : 4 2 A N Pa c l f C o r p 52 5 : 2 0 0 9 Y r ~ n d P r o v l s i o n - U P D A T E O 20 0 9 . AL L V I N T A G E S CU r t A l l o c a t e d Fl o w T h r o u g h Di f f r e n c e Cu r r A l l o c a t e d Di f f r e n c e ($ 1 1 2 , 3 1 1 ) $8 3 , 1 8 ($ 3 , 0 6 5 , 7 4 4 ) ($ 2 , 4 2 5 ) ($ 3 2 0 , 2 2 0 ) ($ 7 1 3 , 8 3 ) $1 , 1 2 2 ($ 2 , 1 5 2 , 1 3 8 ) ($ 5 6 , 3 5 3 ) ($ 3 1 8 , 1 4 7 ) $4 1 , 4 1 9 , 8 $ 3 $1 0 4 , 4 6 4 , 7 7 6 $0 $0 $0 $0 ($ 3 2 0 , 2 2 0 ) ($ 7 0 6 , 2 0 8 ) $8 3 0 ($ 1 4 9 , 3 9 1 ) ($ 5 6 , 3 5 3 ) ($ 0 ) $0 $3 , 9 1 5 , 7 9 6 Cu r r c - l ' l I ø e a No n n a l i z e Di f r e n c e ($ 1 1 2 , 3 1 1 . ) $8 3 , 1 0 8 ($ 3 , 0 6 5 , 7 4 4 ) ($ 4 2 , 4 2 5 ) $0 ($ 7 , 6 2 6 ) $2 9 3 ($ 2 , 0 0 2 , 7 4 7 ) $0 ($ 3 1 8 , 7 4 7 ) $4 1 , 4 1 9 , 8 5 3 $1 0 0 , 5 4 8 , 9 8 0 .4 / # / ~ t d / ~ ¡ J e A ( ! . f ~ lI ~ c f d ~ / ~ J d c f m - hl d / t j l a : ¡ ) ~ Ì Y Cu r r De f e r r d T a x ($ 4 2 , 6 2 3 ) $2 9 , 2 1 0 ($ 1 1 9 8 , 6 1 5 ) ($ 1 5 , 3 2 6 ) $0 ($ 1 , 9 8 3 ) $1 2 0 ($ 4 9 , 5 7 8 ) $0 ($ 1 1 0 , 1 5 7 ) $1 6 , 1 1 9 , 2 4 8 $3 8 , 5 3 0 , 7 5 6 P~ , . f (~ Cu r r D e f e r r d T a x At S t a M o r y ($ 4 2 , 6 2 3 ) $3 1 , 5 4 ($ 1 , 1 6 3 , 4 8 1 ) ($ 1 6 , 1 0 1 ) ($ 1 2 1 , 5 2 7 ) ($ 2 7 0 , 9 0 7 ) $4 2 6 ($ 8 1 6 ; 7 5 8 ) ($ 2 1 , 3 8 6 ) ($ 1 2 0 , 9 6 8 ) $1 5 , 7 1 9 , 2 4 8 $3 9 , 4 3 7 , 1 6 9 S, t r l , 1 q t 15 , 7 1 1 , ' A 1 i 4 , ( J Ò i , ô 1 i . EX c e s s D e b i t ! (E i C G S & C r e i t ) $0 ($ 2 , 3 3 0 ) $1 6 4 , 8 6 6 $7 7 4 $1 2 1 , 5 2 7 $2 6 8 , 9 2 1 $ ($ 3 0 6 ) $3 6 7 , 1 8 0 $2 1 , 3 8 6 $1 0 , 2 1 0 (S O ) ($ 9 0 6 , 4 1 3 ) ~Q ~ : ; i¡ ß 2 : g gj z g : ~ "9 Z S : ~" U 9 g Q) ) : " , : i :i r i " , i i :; l " U _ . . r ; Q ) : i 'T . . c o " U i: 0 C D 0 15 6 w ~ .. . . 0 . . -w Case No. PAC-E-I0-07 Exhibit No. 45 Witness: Ryan R. Fuller BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER Exhibit Accompanying Direct Testimony of Ryan R. Fuller Normalization vs. Flow-Through Impact May 2010 PacifiCorp Revenue Requirement Impact of Normalization \i. Flow-Through Rocky Mountain Power Exhibit No. 45 Page 1 of 3 Case No. PAC-E-10-07 Witness: Ryan R. Fuller Revenue Requirement Impact of Normalization \i. Flow-Through Deferred Accum. DeferreItem Income Tax Expense Income Taxes Total ~~~:~:;;~~~~~ü¡;.ï.p~~~T~~.R~t~.~~'~~.R~t~.ïi~~~'................................... ............~:.~........ï:ll~~~~. ............~:I..........(i;t~~ :i!!!!!!:!:!i:::ii!i!!!:i:i!iiiiiiiii!!i:!!!iii!i!i::i1!1:!li!:Revenue Requirement Impact 158,584 (11,551) 147,033 Weighted Average Cot of Capital:2010 10 GRC Item capital Structure Embeed Cost Weighted Cost Tax Gross-Up Pre-Tax Cost DEBT 47.6016...............................s.:~2.~2.82%1.000000 2.82%.........................................................--..-.......................-...................._...__....................................-...........................-.......................... PREFERRED 0.30%5.41%0.02%1.615384 0.03%............................................................................................-.--_...................--..............-.-_................--............................................-. COMMON 52.0%10.60 5.52%1.615384 8.92% TOTAL 100.00%¡ ¡ ¡¡ ¡¡¡ ¡¡¡¡¡ ¡¡¡¡¡¡¡¡¡¡ ¡¡¡¡¡¡¡¡~¡¡¡~¡~~¡~~¡¡~~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~¡ ~ ~¡ ¡ ¡ ~~~~ ~ ~ ~ t ~ ¡8.36%~ ¡ ~ ~ ~ ~ ~ ¡~ ¡¡¡ ¡¡;;; ;;; ¡~¡~~~~~~~¡~~~~~¡~¡~f ~t ¡ ¡ ¡ ¡;;;; ;;;;;~ ¡~ ~~¡~~ ¡~ll~~;~~~~¡11.77..A PadflCorp Revenue Requirement Impct of Nonnallzaton vs. Flow-Thgh Rocky Mountain Power Exhibit No. 45 Page 2 of 3 Case No. PAC-E-10-07 Witness: Ryan R. Fuller Tax v_ Ended Deceber 31 ~00, FLOW-llROUGHCurrt Currnt Allocat Book-Tax Difernce Currt Curr Deene Tax ExceScule M Tvo Book-Tax Differce ToIaI Flow-Thro h _¡ze Defer Tax Af SI~ DeIICriflACRS Fed """'_". .?~i'~~11~... ............~te~te~. ..........................~ ...............4?!~.~ß.~. ................1.Sl~t?~. .........._...J~t~~?~. ..........................9..iiù:Ó¡;~Ó~bLFé(.............. ....'!,~flÆ4 1,959,6~ 1,959ß5~ . .0 ..0 .. .......74,L.9~. .....a4,,!9~) A.FIJO'c:~~g~ity~~!'............. ...... ........ .57,~9!..63. ........... .....~..~..9.'!. .................~,~,0'! . ... ...... ................0. .............. ... .......0.. . .......... .....iÆ~..9.23. .......... ......(1~;i,93! ~~G~!~~é((~:::::: ::::::::::::::(D::~~Hm :::::::::::::::(1¡r:#:~¡ ::::::::::::::::::(j~;e~i ::::::::::::::::(:~:~~:~): :::::::::::::::¡::,~~:~llf. :::::::::::::::(:~~::e~~:~~) ::::::::::::::::::::::::::1 11Æ::~~~~:':':::':':':'... ::.:......::::¡~ii~¡i~.::....::.::::::.:(~(~;fHi ::':':':':':::::::::~~:~~:~::~: :::::::::::::::(;~~d) ::::::::::::::::'::(~~~:d~':::::::::::::::::fÊ.j~¡ :::::::::::::::::':'~;.~î): ~.~~:j~:~.... .... ............... J;f.= ...........s;tm. ...............:::t.............. ...~~l......... ......~iU~.:............~lUii. .......................t Tolal 678,54,~09 40,822,760 3,66.181 37,142,579 14,09 15,533.074 1,437,09 Tax Vee Ended Decebe 31, ~00,NORMAUZEDeu""t Currnt Allocat Book-Tax Difernce Curr CumtDerr Tax Exce Scheule MTyp Bo.TaxDifterce oIaI Flo-Thro h Noali Defer Tax At Sttut""De" I/Crõt ACRS Fe .............7.?!,~!.'~..............,.~~..~.'!.0 ...............~~,~................i~,~~.-7?!.................1e/?..!lJJ~.0 ÄFÜöC. öè¡;¡ F'òèi.............................~~.~1!ß~............,...:I..e.59ß.!i ...........................ô..................1.t~te~.743,708 ............;.....?~J?a~............................ô. AF~iiiÜqii¡¡Jé(:::::::::::::..............e?,eepe:......................... .......3,.t;,03~~-~-~-~.~-~-~-~-~_:.:~_:~~~);~;g~:0 ..........................0...................._._._._._____J,_~.~.~j.e.;1..:::::::::::::j¡;:iaa;~g:ì Avoid Cost Fe ...............ii;,8~~,1~7)................i~,05l,64~l 0 ...............j4A56,~#i ..........jjß~eß~iir (1,539,539)0 ~t~td:~~!=::::::,...............O,80'~,~0'~!(106,530)..........................0 .................!i.~~,~.~)0 ..........................0...........................0. ................(~,See,?eel ::::::::::::::::: :(~~!,:¡?):i ..........................0................. J?~?,1.?H :::::::::::: ::::::: i~~;e~~¡:::::::::::::::::::¡~;~~i ..........................0 9~~.~1!_~.S!~~~~..126,914,80$1 .............(1,e91&~?)..........................0 ....... (1 ,591ß9?l........(e94,9~11 ...........('¥,a31J ..........................0 CIAC Fe (49.049,089)(~,~93,339)..........................0.(2,~93,339)(870,345 (870,345)...........0 ëóan~iif .öêit. .i'o,j.............................ii,140)i ..................f:iif,iis¡Ç ...........................ó...................1'iš;ó5š.::::::::::::::::::::~,~~.:::: ::: :::::::::::: :tl..~~~:...........................ó. tiiQ~y.:R~~~::::::::::::::::::.:::::::::::::::i:,~~,~es.:::::: ::::::::::::: :e~~?:e~:...........................ô.:::::::::::::::::::: ~:4~~~~:....................~-?~.....................~?J7.ee............................ô. Secton 174 ...............9i~::~.~~:~n ...........................ô.~jj¡~lH~.............?l~:~...........................ô. TËStPõWEF ............................................ô ........................0 Total 678,54~09 40,8760 3,528,032 37,2,72 14,194,151 15,533,074 1,338923 Tax V_ Ended ber 31, ~00 DIFFERENCECurrt Cunent AllocBled Book-Tax Differnce Currt Currt Derrd ax ExcesSchedUle M Typ Book-Tax Differce ToIaI Row-Throuoh Normalize Deferr Tax At Sttut~ De" I (CreiflACRS Fed 0 0 0 0 0 0 0 :~F.9:K~~tiY.é(:::::::::::::: :::::::::::::::::::::::::::~: ::::::::::::::::::::::::::~: :::::::::::::::i):,~~,~m: ::::::::::::::::j;~~i~? :::::::::::::::::::?;t;?~a: :::::::::::::::::::::::::::a: ::::::::::::::::::!~,M:.1\F.y.i?Ç_e~~!tyJ.'!... ......... .... .......... .9. .......................... a. ..........................~.. ......................... ..9. ...........................9. ...........................9. ..........................~..Avoid Cos1 Fed 0 0 0 0 0 0 .0 a~l:::c:::::: :::::::::::::::::::::::::J. ::.::::::::::::::::::::::J :::::::::::::::::j;¡t:~: :::::::::::::::)*~~;~~ :::::::::::::::::i~g~:~i~j:::::'::::::::::::::::::::I ::::::::::::::::::(~~:~~fiCIAC Fed 0 0 0 0 0 0 0 ~~~~~t;i=::::::::::::::: ::::::::::::::::::::::::::1 ::::::::::::::::::::::::::L ::::::::::::::::::(i::~:~1::::::::::::::::::::::~!::': :::::::::: ::::::::::~,3::i:::::::::::::::::::::::::::~: ::::::::::::::::::::~:~li'Ësi .PóWËFf.................. .......................... 'ô' .......................... ö' ..........................0. .......................... ò. .......................... .ô. ..........................0. .......................... ÖTotal 0 0 (152149 152.149 98,ln 0 98,ln ".2 :E~ -e 8. ~CD Clii .. i Cl jl fí~Qa. gQ. ¡¡ 6 ';:e- CDo 0!E a. ~i i:D. c!)- ~ ~ ~o coii co ~ ;;D. 'I ii Iii-ËfI:~oa~ ~ 51 C) ~ i:.cCD z .=gig~ l! e l! æ ~i~)- ~- ï o~::o i: 21 l ~ ,g iicc-to d ~¡ i! l! UI 0UI UI!! Rocky Mountain Power Exhibit No. 45 Page 3 of 3 Case No. PAC-E-10-07 Witness: Ryan R. Fuller -..-.-0 CD ~ -¡:o..o -- -;ig~aVlCD"'aCD-a-a :=.....Øl"" caa.-CW .. -0-rs i:g Ñ ..i!~_ VI~; ~VI.. ..-~ e. if l~o t:d CD co ~ iF CI ëD ~ i' C' to !: ¡::: ~ t: ~ CD iì VI CD C' ¡; :n~ w C' ¡: oa i~~i ~itii~a~ ¡vi-": - eo:: _..Ñ:i~..~..- ., 64 i~ à~ l !! Cl Cl i$ CI Cl Cl i' 0 to !: ¡;C' N~--13V1_Vl¡;-~wli=lll$ ø ò tO~,.i;~C' l3 t; liNe.t- caCD - VI VI N cop ~ - .. ~VI _ _ !2 Cl Cl i$ 0 0 0 i$ Cl C' .. S" N OCD~--C7VlVlVl~-la~i;~ ""!! vi ,. i$øi;~~ 8 ~ -iie.orl"i l ; t;! ¡&l pj li~~§'2l82~2a l.- ca C! co ~ co C! ~at co lI to": co CIã5&l O"'CD ~ l8.... T"NlD .. ..:;ii ttt!; :. ~ &l t: i"S';:~ëDl8 Sl.. S"t: .~CDCÐClùiC'NClC'ClNi.... co lI ø rt - It ~ ca i" rt :i si i" i- øl~ := &l ig 8 ti ¡; Sl ~¡; lõ : ~ ~.. .. ..O..NltN.. ..... ..~;liteoeo;~ t;~.. "".... .. 'ES l/~13~¡¡iêi"ëDtil8~;:¡i l/~tec ~Clt-:i~~èiigixixail8l"_d~ ~~ii¡i:i:f~!!f!~;;;:! 'l.. -IICOlloi=.... .""'o~õ ~pjt;l8;tlê~:;~:e.~l.-.f!-~e.e, ;:. l i¡æ :E l ¡ "L~ ~ i¡ùl f. ~I CD"r: _1~lLoi"0;:8 o:o:,g:E ilililji:~i!~~l ~ iu i ~glgl~J~ ~ l ~i~if 8 ~ ë ~.! i:o~~~g-fifi~8gimg.irn ;cc-eciciooooo:irni-:: 0.. Case No. PAC-E-I0-07 Exhibit No. 46 Witness: Ryan R. Fuller BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER Exhibit Accompanying Direct Testimony of Ryan R. Fuller Normalization Impact May 2010 PacifiCorp Repairs Deduction Out-of-Period Tax Benefits Under Flow-Through Accounting Rocky Mountain Power Exhibit No. 46 Page 1 of 4 Case No. PAC-E-1O-Q7 Witness: Ryan R. Fuller Item . Ref. Amount T~~.~~n.~~!.:.T?!~I..~~p~.iE~..~~~~~~i~n.................................. ...................... .............................~:~........................J!.~!.?!.~t.~~~1Tax Benefit: 2009 Repairs Deduction Pg.4 (2,731,384) ~:i~~~~:l:~2:J~.~rr:j~.~.~~i:;J:l~~~.~:~.~::i:~~!~.~.(~.~..~~j~~~.~.~.n~................ .1.\...:.\.....\.\.¡..:\.I:\.......IIIII¡¡II...........................l~.~f::IJj::). Revenue Requirement Impact of Out-of-Period Repairs Deduction ¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡fIIII¡:¡¡¡¡¡¡¡¡¡¡¡¡¡ (20,980,388) Item Ref.Amount T~~..~~n~!i!.::!~!.~.I.~~p~ir~~~.~.~~.!i?n.Pg.3 .......Jt?t?!.~!.?~.~l....................................................................................................-.".".......................................-.-.-..................... ¡¡¡¡¡¡III:¡:¡:¡:¡¡¡¡.¡ .......................-.-........ Net-to-Gross Bump-Up/Pre-Tax Return on Rate Base 1.615384 Revenue Requirement Impact ofTotal Repairs Deduction ¡~~¡¡¡¡¡¡¡¡~¡¡¡¡j¡¡j¡¡¡¡¡~¡¡¡¡~~¡II~¡¡¡¡¡¡¡~¡(25,392,622). Sc h e u l e M T y p e Ul d a h o 10 3 1 E x h a n g e 10 3 3 N o n R e G a i n AC R S _ F e d AD R R e p a i r A l l o w n c e AF U D C _ D e b t _ F e d AF U D C _ D e b t _ F e d _ I N T A N G AF U D C _ E q u l t _ F e d AF U D C _ E q u l t _ F e d _ I N T A N G Av o i d _ C o s _ F e d Av o i d e d C o A d j u s t Ba s l s _ B o o O n l y Ba s l s _ T a x O n l y Bo k On l y Bo o k R e e r e I n A c q u i s i t i o n Bo o k _ N o L T a x F e d ca p D e p r A d j u s t Ca p L a b o r . M & E J e d l c a r e Ca p P e n s l o n S E R P ca p T a x D e p r ca p i t i z S i c k L e a v e ca p i t a l z e c L W a g e s _ F e d CI A C _ F e d Co a L E x D e v _ F e d Hi g h w y R e l o c IT C _ B a I s _ R e d u c t o n _ F e d No n t a R e l m b A d j u s Or e g o E x B o o k D e p r Ot h e r Bo o k P. . C R S _ F e d ~ _ A D J \ L i f _ F e d P . . U D C _ E q u l t _ F e d P _ B a s i s _ B o o k _ O n l y P _ B a l s 3 a x _ O n l y P _ I T C _ B a s l s _ R e d u c t o " - F e d P _ M e t o d . U f e _ F e d Pr o t e c t d R e p i r D e u c t RA R A d j u s t Se c o n 1 7 4 SH L Ta x On l y Cu r r n t Di f e r e n c e ($ 5 5 , 6 0 2 ) ($ 3 0 4 , 4 2 0 ) $8 0 9 , 5 9 8 , 8 6 3 ($ 2 , 1 7 1 , 0 7 2 ) $2 5 , 7 1 7 , 0 7 5 ($ 1 , 2 2 , 2 6 3 ) $5 0 , 2 6 5 , 0 4 ($ 2 7 8 , 5 8 9 ) ($ 4 1 , 5 6 8 , 7 1 9 ) $6 8 1 , 3 4 7 ($ 5 1 , 0 0 2 ) $0 ($ 9 , 2 7 4 , 8 4 0 ) ($ 4 , 8 7 6 , 9 2 6 ) ($ 2 , 1 5 7 , 4 5 ) ($ 2 , 0 0 3 ) $9 , 4 2 6 , 9 3 8 $3 4 2 , 3 5 ($ 2 , 7 1 4 , 3 2 6 ) ($ 2 6 , 6 9 , 8 3 6 ) $3 7 0 , 8 6 5 ($ 1 9 , 1 2 2 , 4 3 3 ) $1 9 6 , 6 7 4 $1 , 8 4 9 , 8 8 0 ($ 1 3 5 , 2 1 2 ) ($ 9 1 6 , 5 0 0 ) ($ 9 , 6 8 2 , 9 1 9 ) $0 ($ 4 , 7 8 4 , 1 3 6 ) $1 4 , 5 5 5 ($ 2 , 8 9 7 , 1 9 7 ) ($ 4 , 8 8 3 , 2 3 3 ) $1 , 3 2 6 ($ 4 1 , 3 6 4 ) ($ 1 9 , 2 1 3 , 7 8 1 ) $3 7 8 , 3 6 9 , 1 6 7 ($ 1 6 2 , 5 0 3 ) ($ 8 , 4 1 3 , 1 1 8 ) ($ 2 , 7 , 0 5 2 ) $1 1 , 3 2 0 , 1 2 3 Pa c i f C o r p E x s s R a l e R e p o r t Rp t 1 # 1 6 6 1 / 6 / 2 0 1 0 1 0 : 4 2 A M Pa c l f l C o r p 52 5 : 2 0 0 9 Y r ~ n d P r o v l s l o n - P D A T E D 20 0 9 AL L V I N T A G E S Cu r r A l l o c d C i , r r A l l o c a Cu r r A l l o c d F l o w T h r o u g h N o n n a l i z C u r r n t C u r r D e f e i t d T a x E x e s D e b i t f Di f f r e n c e D I f f r e n c e D i f f r e n c e D e f e r r T a x A t S t a r y ( E x c e C r e i t ) ($ 3 , 4 5 9 ) $0 $4 , 6 8 5 , 1 0 2 ($ 1 0 5 , 1 9 1 ) $1 , 5 1 8 , 7 6 6 ($ 7 3 , 0 7 6 ) $3 , 0 6 8 , 9 5 6 ($ 1 7 , 3 2 9 ) ($ 2 , 4 3 , 9 4 0 ) $3 , 6 3 ($ 2 9 , 7 2 4 ) $0 ($ 4 , 7 7 7 ) ($ 3 0 3 , 3 5 ) ($ 1 2 0 , 9 1 7 ) ($ 1 , 3 0 9 ) $5 5 8 , 9 5 8 $1 9 , 4 1 9 ($ 1 3 6 , 6 0 ) ($ 1 , 5 1 8 , 3 1 3 ) $1 8 , 8 2 9 ($ 7 8 9 , 9 1 0 ) $1 2 , 6 1 8 $8 1 , 2 1 4 ($ 8 , 4 1 0 ) ($ 4 1 , 9 8 9 ) $0 $0 ($ 2 ) ($ 2 ) $0 $0 $2 $0 $1 , 9 0 3 $2 1 , 8 2 U 3 4 ($ 2 1 , 0 5 ) ($ 4 9 7 , 3 8 8 ) ($ 1 3 1 , 2 0 7 ) $6 0 0 , 6 8 4 ($ 3 , 4 5 9 ) $0 $0 ($ 1 0 5 , 1 9 1 ) $1 , 5 7 8 , 7 6 6 $0 $3 , 0 6 8 , 9 5 6 $0 $1 1 5 , 1 9 2 $3 4 , 6 3 0 ($ 2 9 , 7 2 4 ) $0 ($ 4 4 , 7 7 7 ) $0 ($ 1 8 , 8 8 7 ) ($ 1 , 3 0 9 ) $5 8 , 9 5 8 $1 9 , 4 1 9 ($ 1 3 5 , 6 0 0 ) ($ 1 , 5 7 , 3 1 3 ) $1 8 , 8 2 9 $1 , 5 0 3 , 4 2 9 $1 2 , 6 1 8 ($ 6 , 5 5 5 ) ($ 8 , 1 3 8 ) ($ 4 1 , 9 8 9 ) $0 $0 $0 ($ 0 ) $0 $0 $2 $0 $1 , 8 3 3 $0 $6 8 , 7 7 3 $0 $0 $6 0 0 , 6 8 4 $0 $0 $4 8 , 6 8 5 , 1 0 2 ($ 0 ) $0 ($ 7 3 , 0 7 6 ) $0 ($ 1 7 , 3 2 9 ) ($ 2 , 5 5 2 , 1 3 2 ) $0 $0 $0 $0 ($ 3 0 , 3 5 2 ) ($ 4 2 , 0 3 0 ) $0 $0 $0 $0 $0 $0 ($ 2 , 2 9 3 , 3 3 9 ) $0 $8 7 , 7 7 9 ($ 2 7 4 ) $0 $0 $0 ($ 2 ) ($ 2 ) $0 $0 $0 $0 $7 0 $2 1 , 8 2 2 , 3 3 4 ($ 8 , 8 2 7 ) ($ 4 9 7 , 3 8 8 ) ($ 1 3 1 , 2 0 7 ) $0 $0 $0 $1 8 , 3 2 8 , 8 0 6 $0 $0 ($ 2 7 , 3 4 ) $0 ($ 6 , 1 4 0 ) ($ 9 7 2 , 8 8 1 ) $0 $0 $0 $0 ($ 1 0 7 , 4 7 9 ) ($ 2 0 , 0 1 7 ) $0 $0 $0 $0 $0 $0 ($ 8 7 0 , 3 4 6 ) $0 $3 3 , 3 9 1 ($ 9 7 ) $0 $0 $0 ($ 1 ) ($ 1 ) $0 $0 $0 $0 $3 $8 , 2 1 , 7 9 4 ($ 5 , 6 2 5 ) ($ 1 8 7 , 0 7 7 ) ($ 4 9 2 2 ) $0 ($ 1 , 3 1 3 ) $0 $1 8 , 4 7 6 , 4 8 3 ($ 3 9 , 9 2 1 ) $5 9 9 , 1 5 7 ($ 2 7 , 7 3 3 ) $1 , 1 6 4 , 6 9 9 ($ 6 , 5 7 6 ) ($ 9 2 4 , 8 4 ) $1 3 , 1 4 2 ($ 1 1 , 2 8 1 ) $0 ($ 1 6 9 , 1 1 7 ($ 1 1 5 , 1 2 5 ) ($ 4 5 , 8 8 ) ($ 4 9 7 ) $0 $7 , 3 7 0 ($ 5 1 , 4 6 1 ) ($ 5 9 8 , 9 8 6 ) $1 , 1 4 6 ($ 2 9 9 , 7 7 9 ) $4 , 7 8 9 $3 0 , 8 2 1 ($ 3 , 1 9 2 ) ($ 1 5 , 9 3 5 ) $0 $0 ($ 1 ) ($ 1 ) $0 $0 $1 $0 $7 2 2 $8 , 2 8 1 , 7 9 4 ($ 7 , 9 9 ) ($ 1 8 8 , 7 & ) ($ 4 , 9 2 2 ) $2 2 7 , 9 & 8 $1 , 3 1 3 $0 ($ 1 4 7 , 6 7 7 ) $3 9 , 9 2 1 ($ 5 9 9 , 1 5 7 ) $3 8 4 ($ 1 , 1 6 4 , 6 9 9 ) $4 3 7 ($ 4 8 , 0 3 8 ) ($ 1 3 , 1 4 2 ) $1 1 , 2 8 1 $0 $1 6 9 , 1 7 7 $7 , 8 4 8 $2 , 8 7 2 $4 9 7 $0 ($ 7 , 3 7 0 ) $5 1 , 4 6 1 $5 9 8 , 9 8 6 ($ 7 , 1 4 6 ) ($ 6 7 0 , 5 6 6 ) ($ 4 , 7 8 9 ) $2 , 5 8 9 $3 , 0 9 5 $1 5 , 9 3 5 $0 $0 $0 $0 $0 $0 ($ ~ o m ; ; II ) ( 0 (I : : n ($ 7 1 . C D . 5 ' " .. z ; : ' - ($ O 0 Z š , 0 0 $2 , ~ " U . § $1 , 6 8 1 ~ ~ ¡ ¡ ($ ~ t n " U : ; . . I I " t ($ 2 2 7 , 9 ~ Ô c g . . 0 =6 1 \ ~ ~ . . s . . . .¡ Sc h e u l e M T y p e Ul d a h o Ta i c N o L B o k _ F e d TE T PO W E U_ A C R S _ F e d U_ A O R _ L l f e _ F e d Uß U O C _ E q u l t y _ F e d U_ B a s l s _ B o o k _ O n l y U_ B a l s 3 a x _ O n l y Uß L _ U f e _ F e d U_ I T C _ B a s l s _ R e d u c t o n _ F e d U_ M e t h o c L F e d Un p r o t e c t R e i r D e d u c To t a l f o r U I d a h o : Cu r r n t Di f f e r e n c e ($ 1 , 8 , 0 7 8 ) $1 , 3 3 6 , 0 9 3 ($ 2 1 , 7 2 7 , 6 7 3 ) ($ 3 0 1 , 6 8 6 ) ($ 2 , 3 9 0 , 5 9 5 ) ($ 4 , 5 7 1 ) $8 , 5 8 4 ($ 1 6 , 8 9 8 , 3 1 3 ) ($ 3 9 4 , 0 8 4 ) ($ 2 , 1 8 8 , 3 4 ) $7 0 9 , 7 0 9 , 3 1 6 $1 , 7 8 3 , 6 7 6 , 3 2 8 Pa c l f C o r p E x R a w R e p o Rp t # 1 6 6 1 / 6 / 2 0 1 0 1 0 : 4 2 AM Pa c l f C o r p 52 5 : 2 0 0 9 Y r - e n d P r o v i s i o n - U P D A T E D 20 0 9 AL L V I N T A G E S Cu r r A l l o c t e FI Q W T h r o u g h Di f f r e n c e Cu r r A l l o c t e d Di f f n c e Cu r r A 1 l o è a e d - - - - - . - - - - No n n a l l z e d C u r r n t C u r r D e f e r r d T a x Di f f r e n c e D e f e r r d T a x A t S t a t u t o r y ($ 1 1 2 , 3 1 1 ) $0 ($ 1 1 2 , 3 1 1 ) ($ 2 , 6 2 3 ) ($ 4 2 , 6 2 3 ) $8 3 , 1 0 8 $0 $8 3 , 1 0 8 $2 9 , 2 1 0 $3 1 , 5 4 0 ($ 3 , 0 6 5 , 7 4 4 ) $0 ($ 3 , 0 6 5 , 7 4 4 ) ($ 9 9 8 , 6 1 5 ) ($ 1 , 1 8 3 , 4 8 1 ) ($ 4 2 , 4 2 5 ) $0 ($ 4 2 , 4 2 5 ) ($ 1 5 , 3 2 6 ($ 1 6 , 1 0 1 ) ($ 3 2 0 , 2 2 0 ) ($ 3 2 0 , 2 2 0 ) $0 $0 ($ 1 2 1 , 5 2 7 ($ 7 1 3 , 8 3 4 ) ($ 7 0 6 , 2 0 8 ) ($ 7 , 6 2 6 ) ($ 1 , 9 8 3 ) ($ 2 7 0 , 9 0 7 ) $1 , 1 2 2 $8 3 0 $2 9 3 $1 2 0 $4 2 6 ($ 2 , 1 5 2 , 1 3 8 ) ($ 1 4 9 , 3 9 1 ) ($ 2 , 0 0 2 , 7 4 7 ) ($ 4 9 , 5 7 8 ) ($ 8 1 6 , 7 5 8 ) ($ 5 6 ; 3 5 3 ) ($ 5 6 , 3 5 3 ) $0 $0 ($ 2 1 , 3 8 6 ) ($ 3 1 8 , 7 4 7 ) ($ 0 ) ($ 3 1 8 , 7 4 7 ) ($ 1 1 0 , 7 5 7 ) ($ 1 2 0 , 9 6 8 ) $4 1 , 4 1 9 , 8 5 $0 $4 1 , 4 1 9 , 8 5 3 $1 5 , 7 1 9 , 2 4 $1 6 , 7 1 9 , 2 4 8 $1 0 4 , 4 6 4 , 7 7 6 $3 , 9 1 5 , 7 9 6 $1 0 0 , 5 4 8 , 9 8 0 $3 8 , 5 3 0 , 7 5 6 $3 9 , 3 7 , 1 6 9 Ex c e s D e b l t (E x c e s C r e i t ) $0 ($ 2 , 3 3 0 ) $1 5 4 , 8 6 6 $7 7 4 $1 2 1 , 2 7 $2 6 , 9 2 5 ($ 3 0 6 ) $3 6 7 , 1 8 0 $2 1 , 3 8 6 $1 0 , 2 1 0 ($ 0 ) ($ 9 0 6 , 4 1 3 ) :; Q ~ o : ; 9" e n = r CD C D õ ' ! l g¡ z ; : - . .. ! = z š : ~" U ! = g Dl , . . . : : :: ( ) c J D i ;; i ; ~ 5 " "T . . c o " U 5. 0 C D ~ iD 6 w C D .. . . 0 . . -.. Pa c l f C o r p E x c e s s R a t e R e p o r Rp # 1 6 6 1/ 6 / 2 0 1 0 10 : 3 6 AM Pa c l f C o r p 52 5 : 2 0 9 Y r - e n d P r o v l s l o n - U P D A T E D 20 0 CU R R E N T Y E A R V I N T A G E S O N L Y Cu r Á Î l o c a t e d Cu r r A l l o c a d CU l T n t Cu r r A l l o c d Fl o w T h r o u g h No r m a l i z e d Cu r r n t Cu r r D e f e r r d T a x Ex c e D e b l t J Sc h e d u l e M T y p Di f f n c e Di f r e n c e Di f r e n c e Di f f r e n c e De e r r e T a x At S 1 r y (E x c e C r e i t ) Ul d a h o AC R S _ F e d $7 2 6 , 4 1 , 6 6 5 $4 2 , 8 4 6 , 6 4 ($ 0 ) $4 2 , 8 4 6 , 6 4 3 $1 6 , 2 6 0 , 7 2 9 $1 6 , 2 6 0 , 7 2 ($ 1 ) AF U D C _ D e b t . F e d $3 2 , 2 1 1 , 6 3 $1 , 9 5 9 , 6 5 2 $1 , 9 5 9 , 6 5 2 $0 $0 $7 4 3 , 7 0 8 ($ 7 4 3 , 7 0 8 ) AF U D C _ E q u i t y _ F e d $5 7 , 9 9 1 , 7 6 3 $3 , 5 2 8 , 0 3 2 $3 , 6 2 8 , 0 3 2 $0 $0 $1 , 3 3 8 , 9 2 4 ($ 1 , 3 3 8 , 9 2 4 ) Av o l d _ C o s F e d ($ 6 8 , 8 6 7 , 1 8 7 ) ($ 4 , 0 5 6 , 6 4 ) $0 ($ 4 , 0 6 6 , 6 4 ) ($ 1 , 5 3 9 , 6 3 9 ) ($ 1 , 5 3 9 , 5 3 9 ) ($ 0 ) Ca p L a o r - M & E l M e d l c a r e ($ 1 , 8 0 2 , 1 0 6 ) ($ 1 0 6 , 5 3 0 ) ($ 1 0 6 , 5 3 0 ) $0 $0 $0 $0 Ca p Ta x De p r ($ 4 , 8 9 9 , 2 9 5 ) ($ 2 4 7 , 4 2 1 ) ($ 2 4 7 , 4 2 1 ) $0 $0 ($ 9 3 , 8 9 9 ) $9 3 , 8 9 9 ca p i t l i z S i c k L e a v e ($ 2 6 , 9 1 4 , 6 4 ) ($ 1 , 5 9 1 , 6 0 7 ) ($ 1 , 5 9 1 , 6 0 7 ) $0 $0 ($ 6 0 4 , 0 3 1 ) $6 0 4 , 0 3 1 CI A C _ F e d ($ 4 , 0 4 9 , 0 8 9 ) ($ 2 . 2 9 3 , 3 3 9 ) $0 ($ 2 , 2 9 3 , 3 3 9 ) ($ 8 7 0 , 3 4 ) ($ 8 7 0 , 3 4 ) ($ 0 ) Co U : x L D e v _ F e d $2 , 1 4 0 , 8 6 7 $1 3 8 , 0 6 5 $1 3 8 , 0 5 5 $0 $0 $6 2 , 3 9 3 ($ 5 2 , 3 9 3 ) Hi g h w y R e l o c $1 , 9 4 9 , 8 6 6 $9 4 , 2 9 3 $0 $9 4 , 2 9 3 $3 5 , 7 8 5 $3 , 7 8 5 $0 se i o n 1 7 4 $9 , 5 2 8 , 6 2 9 $5 6 0 , 9 4 1 $0 $6 6 0 , 9 4 1 $2 1 2 , 8 8 $2 1 2 , 8 8 ($ 0 ) TE S T PO W E R ($ 1 4 9 , 6 8 1 ) ($ 9 , 3 1 0 ) $0 ($ 9 , 3 1 0 ) ($ 3 , 5 3 ) ($ 3 , 5 3 3 ) $0 Un p r o t e c R e p i r D e u c t $1 2 2 , 4 4 9 , 3 2 8 $7 , 1 9 7 , 1 3 2 $0 $7 , 1 9 7 , 1 3 2 $2 , 7 3 1 , 3 8 $2 , 7 3 1 , 3 8 4 ($ 0 ) To t l f o r U I d a h o : $8 0 0 , 9 9 1 , 5 3 5 $4 8 , 0 1 9 , 8 9 2 $3 , 6 8 0 , 1 8 3 $4 , 3 9 , 7 0 9 $1 6 , 8 2 7 , 3 6 $1 8 , 2 6 4 , 4 5 ($ 1 , 4 3 7 , 0 9 ) s; ~ ~ 6 ' 9" ( I : : O CD C D i s , . ~ Z ; : " ' "" p z S : ~i : P g II ) : . ¡ : J :J o O " l i ;; n i ~ 5 " "T ~ c c i : i: a C D 0 = 6 . ¡ : E ~. . 0 ~ -.¡