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HomeMy WebLinkAbout20101116Rebuttal Testimony Cover Letter, Summary.pdf~~~OUNTAIN RECE November is, 2010 29tn NOV , 6 ril' to: '4 201 South Main, Suite 230 Salt Lake City, Utah 84111 VI OVERNIGHT DELIVERY 'OF:~!,~) , '''\1 \l'le. '-,tJ', '~'.. lit-""; Jean D. Jewell Commission Secretar Idaho Public Utilties Commission 472 W. Washington Boise, ID 83702 Re: Case No. PAC-E-1O-07 In the Matter of the Application of Rocky Momitain Power for Approval of Chages to its Electrc Service Schedules and a Price Increase of $27.7 Milion, or Approximately 13.7 Percent Dear Ms. Jewell: Please find enclosed for filing an original and nie copies of Rocky Momitain Power' s Re~ Testimony in the above-referenced matter. Also enclosed is a CD contang the summj of. testimony, testimony and exhbits, and a confdential CD contang confdential testiony and exhbits. To the attention of the Cour Reporter is a paper copy of all documents along with a CD containg all testimony and exhbits in their original formats. Rocky Momitan Power would note that, in accordance with Order No. 32098, Rocky Momita Power has not addressed in rebutt testimony the statements made by Monsanto witnesses related to the curlment valuation. Very try yours, q~k.~(-rw) Jeffey K. Larsen Vice President, Reguation cc: Service List Enclosures CERTIFICATE OF SERVICE .'fi )1n!J \ 6 M'HO: \ 4 i hereby certify that on ths 16th day of November, 2010, I caused to be serviil'l":-mail~~.,~,e and correct copy of Rocky Momitain Power's Rebutt Testimony and Exhbits ~R~~.:W~\.q\lSiOt.lth .c II '\I\'T.r~" .'d......to e 10 owig: U1 ..' i I,;:;'"' '- ~ '\ Il "'~J Eric L. Olsen Racine, Olson, Nye, Budge & Bailey, Charered 201 E. Center P.O. Box 1391 Pocatello,ID 83204-1391 E-Mail: elo(iracinelaw.net Randal C. Budge Racine, Olson, Nye, Budge & Bailey, Charered 201 E. Center P.O. Box 1391 Pocatello,ID 83204-1391 E-Mail: rcb(iracinelaw.net Tim Buller Jason Hars Agrium, Inc. 3010 Conda Road Soda Sprigs, il 83276 E-Mail: tbuller(iagrium.com JAHars(iagrum.com Scott Woodbur Deputy Attorney General Idaho Public Utilties Commission 472 W. Washigton (83702) PO Box 83720 Boise, ID 83720-0074 E-Mail: scott.woodburØ)uc.idaho.gov Brad Purdy CAPAI 2019N.17thSt. Boise, ID. 83702 E-mail: bmpurdy(ihotmail.com Anthony Yanel 29814 Lake Road Bay Vilage, Ohio 44140 E-mail: tony(iyanel.net Paul J. Hickey Hickey & Evan, LLP 1800 Carey Ave. , Suite 700 PO Box 467 Cheyenne, WY 82003 E-Mail: phickey(ihickeyevans.com Katie Iverson (E-mail only) Brubaker & Associates 17244 W. Cordova Cour Sunse, Arzona 8S387 E-Mail: kiverson(iconsultbai.com Benjamin J. Otto Idaho Conservation League 710 N. 6th St. P.O. Box 844 Boise, Idaho 83702 E-mail: bottoimidahoconservation.org Melinda J. Davison Davison Van Cleve, P.C. 333 S.W. Taylor, Suite 400 Portland, OR 97204 E-mail: mjdimdvclaw.com Ronald L. Wiliams Wiliams Bradbur, P.C. 101S W. Hays St. Boise ID, 83702 E-mail: ron(iwiliamsbradbur.com James R. Smith (E-mail only) Monsanto Company P.O. Box 816 Soda Sprigs, Idaho 83276 E-Mail: jim.r.smith(imonsanto.com Dr. Don Reading (E-mail Only) Idaho Conservation League 6070 Hil Road Boise, ID 83703 E-mail: dreadingimmindspring.com An~~~ Coordinator, Admnistrative Services ROCKY MOUNAIN POWER SUMMY OF REBUTTAL TESTIMONY PAC-E-IO-07 ¿mnHOVI 6 AM 10: l 4 Rocky Momitain Power, a division ofPacifiCorp, provides ths sumar of¡'!t filed in support of its general rate case application. Copies of the Company'šfl ing are available online at ww.pacificorp.com; click on "News and Ino" and then select "Regulatory Inormation" and "Idaho." Copies of the filing may also be reviewed durng regular business hours at the offces of the Idaho Public Utilties Commssion in Boise and in these Rocky Momita Power offces: . 2S Eat Main, Rexburg . S09 South 200 East, Preston . 8S2 East 1400 Nort, Shelley . 248S2 U.S. Highway 89, Montpelier A. RICHA W AL President, Rocky Mountain Power Company witness Walje provides a sumar of the Company's rebutt position for the 2010 Idaho general rate case, and addresses certain policy issues raised by intervenig paries and the implications those issues would have to the Company if implemented. Mr. Walje testifies that the Company requis a revenue $24.9 millon or a 12.3 percent average increase over Rocky Momitain Power's curent rates, which is a reduction of $2.8 millon from the Company's original requested increase $27.7 milion, or 13.7 percent overalL. Commssion approval of this increase will enable the Company to maintan the fiancial stengt necessar to attct the reuisite capital to meet the electrcal servce needs of its Idaho customers. Mr. Walje's testimony also discusses the Company's efforts to control costs while maintainng reliable service and customer satisfaction, and responds to the testiony filed by Monsanto regarding the effect of rising electrcity prices on its business. BRUCE N. WILLIAS Vice President and Treasurer Company witness Wiliams' rebutt testimony responds to the capital strctu recommendations offered by Monsanto witness Michael P. Gorman and Idaho Public Utilties Commission Sta witness Ms. Terr Carlock. Mr. Wiliams' also rebuts the adjustment to pension expense proposed by Idaho Public Utilties Commssion Sta witness Mr. Donn English. SAMLC.HAAWAY FINANCO, Inc. Dr. Hadaway's rebutt testimony responds to the rate of retu on equity ("ROE") recommendations offered by Idaho Public Utilties Commission Staff witness Ms. Terr Carlock and Monsanto witness Mr. Michael P. Gorman. His analysis demonstrtes that their rate of retu recommendations are not consistent with the ongoing equity market volatilty or the contiuig financial distress that the U.S. economy is midergoing. Dr. Hadaway also responds to the other witnesses' comments on the methodology used in his direct testimony to estimate Rocky Momita Power's cost of equity. Dr. Hadway's updated ROE analysis for curent market costs and conditions continues to show that the Company's requested ROE of 10.6 is reasonable. MAR. TALLMA Vice President of Renewable Resource Development Company witness Tallman rebuts the testimony of Mr. Joe Leckie of the Idaho Public Utilties Commssion Staff as it relates to rate base associated with the Dunap wid project and operations and maintenance costs associated with wid adminstration and the High Plains, McFadden Ridge I, and Dunap wind projects. CHA A. TEPLY Vice President of Resource Development and Constrction for PacifiCorp Energy Company witness Teply's rebuttal testimony responds to the direct testimony of Randall J. Falkenberg on behalf of the PacifiCorp Idaho Industrial Customers regarding the Company's management and fiancial modeling of miplaned thermal unt outages and also responds to the direct testimony of Don Reading on behalf of the Idao Conservation League regarding prudence of the Company's pollution control expenditues for coal- fired power generation plants. CAROL L HUNTER Vice President of Services Ms. Hmiter responds to or rebuts certin issues raised in the testimonies of Mr. Rady Lobb and Mr. Gar Grayson of the Idao Public Utilties Commssion Sta as it relates to the investment in the company's energy efficiency and load control programs. CINDY A. CRAE Vice President, Interwest Mining Company and Fuel Resources Company witness Crae rebuts the testimony of Idaho Public Utilities Commssion Sta witness Mr. Leckie regarding IPUC's proposed disallowance of the Company's Fuel Stock and the testimony of PacifiCorp Idao Industral Consumers witness Mr. Falenberg regardig fuel quaity problems at the Jim Bridger plant. DARLL T. GERRRD Vice President of Transmission Planning Company witness Gerrard provides rebutt testiony to the direct testimony filed by Mr. Denns E. Peseau on behalf of Monsanto Company and to the direct testimony of Mr. Rady Lobb, on behalf of the Idaho Public Utilties Commssion sta, regarding the Company's Populus to Termna tramission project. In parcular, Mr. Gerrd responds to assertions tht the Populus to Termin tranmission project is not ''used and usefu" and is oversized. ERICH D. WILSON Director, Human Resources Company witness Wilson rebuts employee salar and anua incentive adjustments proposed by PacifiCorp Idao Industral Consumers witness Greg Meyer and Idaho Public Utilties Commssion Sta witness Donn English. DR. HU SHU Manager, Net Power Costs Company witness Shu testifies in support of the Company's revised net power costs of $ 1.063 bilion system-wide, which is approximately $69 millon on an Idao allocated basis as calculated using the Generation and Reguation Initiatives Decision Tools (GRID) modeL. Dr. Shu also responds to the adjustments to the Company's filed net power costs proposed by Mr. Bryan Lanspery of the Idao Public Utilities Commssion Staff, Mr. Radall J. Falenberg on behaf of the PacifiCorp Idaho Industral Customers, and Mr. Mark T. Widmer on behalf of Monsato. GREGORY N. DUVALL Director, Long Range Planning and Net Power Costs. Company witness Duvall will respond to Mr. Brian Collns and Ms. Kath Iverson's testimony that was filed on behalf of Monsanto. Mr. Duvall will rebut Mr. Collins' comments regardig the treatment of Monsanto's load and interrptible products in the Company's Integrated Resource Plan (IRP), and Ms. Iverson's comments regarding the interrptible natue of Monsanto's load and the appropriate reguatory treatment of Monsanto. BARAR A. COUGHLIN Director, Customer and Regulatory Liaison Ms. Coughin will respond to testimony of Ms. Marlyn Parker and Mr. Curis Thaden of Idaho Public Utilties Commssion Staff (Sta and Ms. Teri Otens representing Communty Action Parership Association of Idaho (CAPAI). Ms. Coughin will address several customer service related issues raised by these witnesses regardig landlord interim biling and Link Programs, Red Flag Rules, rebiling, customer notification for rebiling, mibiled usage, meter upgrade, moratorium and winter payment plan communcations, Lend-A-Hand contrbutions, energy conversation education, low income weatherization fuding; and low income weatherization matching fuds. DR. PETER C. EELKEMA Lead/Senior Consultant, Load and Revenue Forecastig Company witness Eelkema's testiony rebuts the increase in test year irrgation sales proposed by Mr. Anthony Yanel on behaf of Idaho Irrgation Pumpers Association and the increase in residential revenues proposed by Mr. Greg Meyers on behalf of the PacifiCorp Idao Industral Customers. STEVEN R. MCDOUGAL Director, Revenue Requirement Company witness McDougal testifies in support of the calculation of $24.9 millon revenue increase and the sources of the data used in determining the normalizing adjustments related to revenue, operations and maintenance expense, net power costs, depreciation and amortization, taes, and rate base in developing the Idaho revenue requirement. Mr. McDougal's rebutt testimony responds to adjustments proposed in the pre-fied direct testimony filed by the intervening pares regarding the Company's revenue requiement. C. CRAG PAICE Regulatory Consultant in the Pricing and Cost of Service Department Company witness Paice's rebutt testimony includes revised exhbits to reflect changes in the Idaho Results of Operations contaned in the rebutt testimony of Company witness Mr. Steven R. McDougal. Additionally, Mr. Paice responds to the testimony of Idaho Public Utilties Commission Sta witness Mr. Bryan Lanspery, Idao Industral Customers witness Mr. Donald Schoenbeck, and Communty Action Parership Association of Idaho witness Ms. Teri Ottens. WILLIA R. GRIFFITH Director, Pricing, Cost of Service & Regulatory Operations Company witness Griffth's rebutt testiony provides updated proposed rate spread and rate design exhbits tht reflect adjustents to the cost of service study to which the Company has agreed. Mr. Grffith also addresses the direct testimony of Mr. Bryan Lanspery of the Idaho Public Utilties Commssion sta, Dr. Don C. Readig of the Idaho Conservation League, and Ms. Ter Ottens of the Communty Action Parership Association of Idaho (CAPAI) concernng residential rate design issues. Accordingly, Rocky Momitan Power proposes the following allocation of the net price increase for major customer classes: Customer Class Residential - Schedule 1 Residential- Schedule 36 General Servce Schedule 23/23A Schedule 6/6AJ3S/3SA Schedule 9 Schedule 19 Irrgation Schedule 10 Special Contrcts Schedule 400 Schedule 401 Public Street Lighting Schedules 7/7 A, 1 1, 12 Proposed Price Chage 7.2% 14.6% 9.7% 13.3% 12.8% 10.8% 7.6% 18.2% 14.7% 0%