20100610notice_of_application_pac.pdf

Office of the Secretary
Service Date
June 10 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROVAL OF CHANGES TO
ITS ELECTRIC SERVICE SCHEDULES
CASE NO. PAC-IO-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
On May 28 2010, PacifiCorp dba Rocky Mountain Power (RMP; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) for authority to increase
the Company s base rates for electric service. The Commission herein provides notice of the
Application and establishes a deadline for interested persons to intervene as parties.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on May 28, 2010, PacifiCorp dba Rocky
Mountain Power (RMP; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) for authority to change its electric service schedules to reflect a
proposed revenue increase of$27.7 million, or 13.7%.
RMP serves more than 70 000 customers in southeastern Idaho. The Company
provides electric service to more than 1 000 000 customers in Utah, Wyoming and Idaho. The
Company owns more than 10 000 megawatts of generation from coal, hydro, natural gas-fueled
combustion turbines and renewable wind and geothermal power. The proposed increase is based
upon normalized results of operations for the test period ending December 31 , 2009, with known
and measurable changes.
The Company requests a return on equity (ROE) of 10.6% and contends that it is
presently earning a ROE of only 5.7%. Without the requested increase in revenues, RMP
contends that it will be increasingly difficult for the Company to maintain its utility infrastructure
and continue to provide adequate, efficient, just and reasonable service to its Idaho customers.
PacifiCorp contends that it is in the midst of a multi-year program of investing in renewable
energy, transmission facilities and environmental controls to serve its customers in Idaho and
across its six-state system. At a total Company level, the test period includes over $4 billion of
new plant investment and $87 million in increased power costs.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
Presented in this case is a class cost of service study that functionalizes, classifies
and allocates cost to each customer class based on the test year in the Company s filing. Guided
by its cost of service study the Company proposes to allocate the net price increase for major
customer classes as follows:
Residential Schedule 1: 8.
Residential Schedule 36: 15.
General Service:
Schedule 23123A: 10.
Schedule 6/6A/35/35A: 14.
Schedule 9: 14.
Schedule 19: 12.
Irrigation Schedule 10: 9.
Public Street Lighting: 0%
Industrial Contract Schedule 400 (Monsanto): 19.
Industrial Contract Schedule 401 (Nu-West): 15.
These changes are intended to bring all customer prices closer to the actual cost to serve them.
Schedule 1 Residential
For Residential Schedule 1 customers, the Company proposes a seasonally
differentiated two-tiered inverted block pricing structure for energy use and a $12 per month
fixed customer service charge. The first energy block in each season will apply to usage for the
first 800 kWh per month. Currently residential customers served on Schedule 1 pay a flat
seasonally differentiated energy charge applied equally to all kilowatt hours. Under the existing
rate design a monthly minimum charge also applies.
As a result of the proposed two-block inverted structure, the average Idaho
residential customer using 839 kWh year-round will see an average rate increase of only $.84 per
month, or 1 % per month overall. Larger users with more discretionary usage will see
substantially larger mcreases.The Company believes that this rate design balances cost
recovery, fairness, and provides customers price signals concerning the higher costs of increasing
energy usage.
Schedule 36 - Residential (Optional Time of Day)
For time-of-use Residential Schedule 36 customers, the Company proposes to retain
the existing rate structure and to apply increases to both the customer service charge and to the
on-and-off peak energy charges. Even with these changes, the Company maintains that
customers on Schedule 36 will continue to benefit from the time-of-use rate design. If the
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
Company s proposed rates are approved as filed, the average rate for a time-of-use customer will
be 35t per kWh lower than the average rate for Schedule 1 residential customers.
The revised tariff schedules proposed by the Company reflect an effective date of
June , 2010. Tariff Schedules 400 (Monsanto) and 401 (Nu-West) will remain unchanged
pursuant to special contract with existing service rates through year-end 2010. The proposed
effective date was suspended by the Commission in Order No. 32001.
YOU ARE FURTHER NOTIFIED that RMP's intrastate revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find that a revenue requirement
different from that proposed by any party is just, fair and reasonable. IDAP A 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges for all RMP's retail
customers, both recurring and non-recurring, are at issue, and every component of every existing
and proposed rate and charge is at issue. The Commission may approve, reject or modify the
rates and charges proposed and may find that rates and charges different from those proposed by
any party are just, fair and reasonable. IDAP A 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings.
31.01.01.124.02.
IDAPA
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges; abolish, create or reduce components of
rates and charges; abolish, reduce or create customer classes or rate groupings; and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
servIce, instrumentalities, equipment, facilities, classifications and customer relations of the
utility are at issue, and the Commission may address any of them in its Order.
31.01.01.124.02.
IDAPA
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No.
P AC-l 0-07 for the purpose of becoming a party, i., to present evidence, to acquire rights of
cross-examination, to participate in settlement or negotiation conferences, and to make and argue
motions must file a Petition to Intervene with the Commission pursuant to Rules 72 and 73 of the
Commission s Rules of Procedure, IDAP A 31.01.01.072 and .073. Persons desiring to acquire
intervenor rights of participation must file a Petition to Intervene on or before Friday, June
30, 2010. Persons desiring intervenor status shall also provide the Commission Secretary with
their electronic mail address to facilitate future communications in this matter.
YOU ARE FURTHER NOTIFIED that a prehearing conference in Case No. P AC-
10-07 will not be calendared if the only purpose is to schedule dates for public workshops
testimony prefile and hearings. Petitioners requesting to intervene shall identify in their Petition
any issues, other than scheduling, that require a prehearing conference. If no issues are identified
a prehearing conference will not be calendared and the parties will develop a schedule for
processing this case.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding. IDAPA 31.01.01.230.
YOU ARE FURTHER NOTIFIED that persons desiring to present their VIews
without parties' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that discovery is available pursuant to the
Commission s Rules of Procedure, IDAPA 31.01.01.221-234.
YOU ARE FURTHER NOTIFIED that the Company s Application, testimony,
exhibits and workpapers in Case No. PAC-I0-07 can be reviewed during regular business
hours at the Commission s office in Boise, Idaho and at the following Idaho offices of Rocky
Mountain Power:
25 East Main, Rexburg, Idaho
509 South 200 East, Preston, Idaho
852 East 1400 North, Shelley, Idaho
24852 S. Highway 89, Montpelier, Idaho
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
The Application is also available for public inspection on the Commission s website at
www.puc.idaho.gov under the "File Room" and "Electric Cases.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
RMP's representatives in this matter:
Ted Weston
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: ted.weston~pacificorp.com
Daniel Solander
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: daniel.solander~pacificorp.com
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, specifically Idaho
Code 99 61-502, 61-503, 61-507, 61-520, 61-523 , and 61-622. The Commission may enter any
final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted according to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and any prehearing conferences
in this matter will be held in facilities meeting the accessibility requirements of the Americans
with Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretary~puc.idaho.gov
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
DATED at Boise, Idaho this I () fA-.
day of June 2010.
SIDENT
MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFORD, COM ISSIONER
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NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE