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HomeMy WebLinkAbout20101227interlocutory_order_no_32151.pdfOffice of the Secretary Service Date December 27 2010 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF PACIFICORP DBA ROCKY MOUNTAIN POWER FOR APPROVAL OF CHANGES TO ITS ELECTRIC SERVICE SCHEDULES CASE NO. PAC-I0- INTERLOCUTORY ORDER NO. 32151 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 its rates and charges for electric service in the State of Idaho.RMP serves more than 000 customers in southeastern Idaho. The Company provides electric service to more than 000 000 customers in Utah, Wyoming and Idaho. The Company s original request of $27. million, or a 13.7% increase in annual electric revenue was revised at technical hearing to $24. million, or 12.3%. The Commission in this Order approves an increase in electric base rates of $13 755 728, or 6.78%. The net amount of actual increase varies by class of customer and usage. A technical hearing in Case No. PAC-10-07 was held in Boise, Idaho the week of November 30, 2010. The following parties appeared by and through their respective counsel of record: PacifiCorp dba Rocky Mountain Power Paul J. Hickey Daniel Solander Monsanto Company Randall C. Budge Idaho Irrigation Pumpers Association, Inc.Eric L. Olsen Idaho Conservation League Benjamin J. Otto PacifiCorp Idaho Industrial Customers Melinda J. Davison Ronald L. Williams Community Action Partnership Association of Idaho Brad M. Purdy Commission Staff Scott D. Woodbury D. Neil Price INTERLOCUTORY ORDER NO. 32151 Public testimony hearings were held in Shelley and Rexburg, Idaho on December 14 2010, and in Grace and Preston, Idaho on December 15 , 2010. A telephonic public hearing providing customers with an additional opportunity to offer sworn testimony was held on December 20 2010. COMMISSION FINDINGS The Commission has reviewed and considered the filings of record in Case No. P AC- 10-07 including the transcript of technical proceedings held November 30 through December , 2010. We have also considered the public testimony of customers in eastern Idaho and filed public comments. On October 22 2010, the Commission in Order No. 32098 established further scheduling in this case and tolled the suspension period which was set to expire December 28 2010. In our Order, we stated our intent to issue an interim Order by December 28 , 2010 establishing rates for all tariffs, save and except the interruptible credit portion of Monsanto Schedule 400. It is that interim or interlocutory Order that we issue today. A further technical hearing on the economic valuation of Monsanto interruptible product is scheduled for February (2),2011. The Commission expects to issue a final Order in this case by February 28 2011. The Commission in this Order approves a 12-month test year ending December 31 2009, adjusted for known and measurable changes through year-end 2010. We approve an average capital structure for RMP through December 31 , 2010, consisting of 47.6% debt, 0. preferred stock, and 52.1 % common equity. We accept a cost of debt of 5.88%, and a preferred stock cost of 5.42%. We approve a return on common equity of 9.9% and an overall weighted cost of capital and rate of return of7.98%. The Commission approves the following for rate base and revenue requirement. We also make ultimate findings regarding authorized changes in electric rates. Rate Base The Commission approves an electric pro forma rate base of $679 869 699. Revenue Requirement The Commission approves an Increase in electric base rates of $13 755 728, or 78%. In this case, we have made numerous revenue requirement decisions and adjustments to the amount allowed in rates including a reduction in the Company s pension expense, an elimination of scheduled wage increases, and a reduction in the Company-proposed rate base of Populus to Terminal transmission investment.In making these particular adjustments we INTERLOCUTORY ORDER NO. 32151 address concerns raised by parties and customers and acknowledge the economic conditions and service requirements in the Company s southeast Idaho service territory. The base net power costs (NPC) we establish in this case for the Company s Idaho Energy Cost Adjustment Mechanism (ECAM) is $1 023,706 616. The ECAM approved for RMP in Idaho defers the difference between base net power costs set during a general rate case and collected from customers in their retail rates and actual net power costs incurred by the Company to serve its retail customers. The mechanism addresses only power cost expenses and does not include any costs associated with fixed cost recovery (i., capital investment in rate base). Case No. PAC-08-, Order No. 30904. Net power supply costs represent a large part of the Company s total revenue requirement and are subject to a high degree of volatility largely outside of the Company s control. The ECAM rate is calculated annually to credit or surcharge to customers the accumulated deferral balance (the difference between the base NPC embedded in rates and actual system NPC). Electric Rates The revenue Increase allocated to each class is depicted in Attachment A. The electric rates we approve as just and reasonable are set out in Attachment B. Idaho Code 9 61- 502. They include a two-tiered, seasonal rate structure for residential customers with an average rate increase of 6.8%. We approve a monthly customer charge of $5.00 for Schedule (Residential) customers and $14.00 for Schedule 36 (Residential Time-of-Use) customers. This increase in rates will be accompanied by a reduction in the Customer Efficiency Services rate from 4.72% to 3.4%. This reduction in the tariff rider percentage results from our decision to treat the Idaho Irrigation Load Control Program as a power supply cost. Low-income Weatherization Addressing the continued needs in RMP's Idaho service territory of the low-income sector, we find it reasonable to increase RMP's current annual funding level for low-income weatherization in this case to $300 000 and increase the dollar amount of RMP funds available for each individual project from 75% to 85% of total eligible costs. Intervenor Funding Intervenor funding is available pursuant to Idaho Code 9 61-617 A and Commission Rules of Procedure 161 through 165. Section 61-617 A(1) declares that it is the "policy of this state to encourage participation at all stages of all proceedings before this Commission so that all INTERLOCUTO R Y ORDER NO. 32151 affected customers receive full and fair representation in those proceedings." The statutory cap for intervenor funding that can be awarded in anyone case is $40 000. Idaho Code 9 61- 617 A(2). Petitions for Intervenor Funding were filed by Community Action Partnership Association of Idaho ($16 975.75), the Idaho Irrigation Pumpers Association ($86 855.32), and Idaho Conservation League ($21 890). Based on our review of the record and for findings to be articulated in our final Order in this case, we approve an award of intervenor funding in the following amounts as fair, just and reasonable: Community Action Partnership of Idaho $16,400; Idaho Conservation League, $11 300; and Idaho Irrigation Pumpers Association $11 300. CONCLUSIONS OF LAW The Idaho Public Utilities Commission has jurisdiction over PacifiCorp dba Rocky Mountain Power, an electric utility, its Application in Case No. PAC-I0-07 and over the issues raised in these proceedings pursuant to Idaho Code, Title 61 , and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq. ORDER In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED that PacifiCorp dba Rocky Mountain Power file tariffs in conformance with this Interlocutory Order No. 32151 to be effective on December 28, 2010, for service rendered on and after that date for all customers except Monsanto Company and Agrium, Inc. whose individual service contracts extend through December 31 , 20 I O. IT IS FURTHER ORDERED and Rocky Mountain Power is directed to increase its annual funding level for low-income weatherization in Idaho to $300 000 and increase the dollar amount of RMP funds available for each individual project from 75% to 85% of total eligible costs. IT IS FURTHER ORDERED and the Petitions for Intervenor Funding are partially granted in the amounts of $16,400 Community Action Partnership Association of Idaho; $11 300, Idaho Conservation League; and $11 300, Idaho Irrigation Pumpers Association, Inc. Reference Idaho Code 9 61-617 A. PacifiCorp is directed to pay said intervenor funding amounts within 28 days from the date of this Order. IDAPA 31.01.01.165.02. INTERLOCUTO R Y ORDER NO. 32151 THIS IS AN INTERLOCUTORY ORDER, NOT A FINAL AND APPEALABLE ORDER OF THE COMMISSION. In Order No. 32098, the Commission tolled the suspension period for the Company s rate case and established further scheduling for determining the economic valuation of Monsanto interruptible products. A technical hearing is scheduled for February 1 (2), 2011. The Commission expects to issue a Final Order in this case on or prior to February 28, 2011. The period of reconsideration will not begin until the Final Order is issued. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this !l1f1'.. day of December 2010. JIMD. EMPT , PRESID NT MARSHA H. SMITH, COMMISSIONER ATTEST: ~1,-t). 0 Jean D. ell CommissIon Secretary bls!N:PAC-IO-swI2 lnterim Order INTERLOCUTOR Y ORDER NO. 32151 Li n e No . De s c " ! : ! p ' t i o n (1 ) Re s i d e n t i a l S a l e s Re s i d e n t i a l S e r v i c e Re s i d e n t i a l O p t i o n a l T O D AG A R e v e n u e To t a l R e s i d e n t i a l Co m m e r c i a l & I n d u s t r i a l Ge n e r a l S e r v i c e - L a r g e P o w e r Ge n e r a l S v c , c L g . Po w e r ( R & F ) Su b t o t a l - Sc h e d u l e Ge n e r a l S e r v i c e - H i g h V o l t a g e Ir r i g a t i o n Co m m . & I n d . 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Ma y - Oc t O n - Pe a k Ma y - Oc t O f f - Pe a k No v - Ap r O n - Pe a k No v - Ap r O f f - Pe a k Cu s t C h a r g e ( S e c o n d a r y ) Cu s t C h a r g e ( P r i m a r y ) De m a n d ( M a y - Oc t ) ( K W ) De m a n d ( N o v - Ap r ) ( K W ) kW h R a t e Vo l t a g e D i s c o u n t Cu s t o m e r C h a r g e De m a n d ( M a y - Oc t ) ( K W ) De m a n d ( N o v - Ap r ) ( K W ) kW h R a t e (C ) (C ) (C ) (C ) (C ) (C ) (C ) (C ) (C ) ($ ) (C ) Pr e s e n t (4 ) Co m m i s s i o n A p p r o v e d (5 ) Re s i d e n t i a l S a l e s Re s i d e n t i a l S e r v i c e $1 0 . no n e $5 . 00 / m o n t h Re s i d e n t i a l O p t i o n a l T O D no n e 10 . 4 0 9 3 10 . 40 9 3 0- 7 0 0 : :; : . 7 0 0 : 57 6 1 12 . 92 7 7 Co m m e r c i a l & I n d u s t r i a l Ge n e r a l S e r v i c e - L a r g e P o w e r ( a ) 01 5 01 5 00 0 : :; : . 1 00 0 : 33 0 0 89 5 5 Ge n e r a l S e r v i c e - H i g h V o l t a g e ( a ) $1 3 . 11 . 34 9 7 87 3 69 5 3. 5 4 4 7 $1 4 . 11 . 1 8 4 5 15 7 9 10 . 4 0 8 1 80 5 4 $3 0 . $9 7 . $1 1 . 3 4 $9 . 13 8 $3 3 . 0 0 $9 9 . $1 2 . $1 0 . 3. 3 7 0 2 (0 . 53 ) $3 0 1 . 1 0 $7 . $5 . 25 1 9 (0 . 57 ) $3 2 3 . $8 . 4 6 $6 . 4 0 3. 4 8 8 7 (a ) R o c k y M o u n t a i n P o w e r p r o p o s e s a g r e a t e r i n c r e a s e i n d e m a n d c o m p o n e n t s t h a n e n e r g y c o m p o n e n t s . T h e C o m m i s s i o n a p p r o v e s a u n i f o r m i n c r e a s e t o a l l c o m p o n e n t s . t: O . - r- - - C " ) .. . . . . V ) '+ - ; s: : : ' - I 0 Q) N C" ) " 7 . - .. . a . ~ (. ) 0 b. O ~ Z u t: : ;. . . . A- . ~~ A - . ;. . . . . 0 0 ;. . . . Q ) CI ) .. . . . . ~ G U ;: : .. . . . . s: : : ... . . . . . CA S E N O . P A C - IO - ID A H O P U B L I C U T I L I T I E S C O M M I S S I O N CO M P A R I S O N O F P R E S E N T A N D CO M M I S S I O N A P P R O V E D R A T E S T R U C T U R E AN D R A T E S Li n e No . Ir r i g a t i o n ( a ) Sc h . Bi l l i n g C o m p o n e n t (2 ) (3 ) In - Se a s o n ( J u n e I - Se p t 1 5 ) Sm a l l C u s t . C h a r g e La r g e C u s t . C h a r g e De m a n d ( K W ) Fi r s t 2 5 00 0 k W h (e ) Ne x t 2 2 5 , 00 0 k W h (e ) Al l a d d ' l k W h (e ) Po s t S e a s o n ( S e p t 1 6 - M a v 3 I ) Cu s t o m e r C h a r g e kW h R a t e (e ) Pr e s e n t (4 ) Co m m i s s i o n A p p r o v e d (5 ) De s c r i p t i o n (1 ) $1 1 . 7 4 $3 4 . $4 . 5 5 13 1 5 27 5 90 9 5 $1 2 . $3 5 . $4 . 33 8 8 42 8 4 04 1 1 Co m m . & I n d . S p a c e H e a t i n g Cu s t o m e r C h a r g e kW h R a t e ( M a y - Oc t ) kW h R a t e ( N o v - Ap r ) (e ) (e ) $1 8 . 03 1 5 $1 9 . 20 6 9 Ge n e r a l S e r v i c e Cu s t o m e r C h a r g e S e c o n d a r y Cu s t o m e r C h a r g e P r i m a r y kW h R a t e ( M a y - Oc t ) kW h R a t e ( N o v - Ap r ) Vo l t a g e D i s c o u n t (e ) (e ) (e ) $2 0 . 84 5 7 81 3 3 $2 1 . 0 0 8. 2 7 2 3 12 9 4 Ge n e r a l S e r v i c e O p t i o n a l T O O Cu s t o m e r C h a r g e S e c o n d a r y On - Pe a k D e m a n d ( K W ) kW h R a t e Vo l t a g e D i s c o u n t (e ) ($ ) $1 3 . $4 1 . I 6 67 3 7 69 8 5 (0 . 37 ) $1 4 . $4 3 . 04 2 4 02 0 4 (0 . 39 ) $5 4 . $1 3 . 4 8 01 6 7 (0 . 69 ) $5 9 . $1 4 . 4 7 31 3 0 (0 . 74 ) (a ) R o c k y M o u n t a i n P o w e r p r o p o s e s a g r e a t e r i n c r e a s e i n d e m a n d c o m p o n e n t s t h a n e n e r g y c o m p o n e n t s . T h e C o m m i s s i o n a p p r o v e s a u n i f o r m i n c r e a s e t o a l l c o m p o n e n t s . ~ ~ r- - - C " ) .. . . . . t r ) '+ - t c: c : : : ; 2 , Q) C " ) .. . . . . N . ~ (, ) 0 0. 0 cj Z U t: : .. . . ~ A- . ~. g A - . .. . . . 0 0 .. . . Q ) rJ ) .. . . . . c j G U ... . . . ... . . . . . CA S E N O . P A C - IO - ID A H O P U B L I C U T I L I T I E S C O M M I S S I O N CO M P A R I S O N O F P R E S E N T A N D CO M M I S S I O N A P P R O V E D R A T E S T R U C T U R E AN D R A T E S Li n e No . De s c r i p t i o n Sc h . Bi l l i n g C o m p o n e n t Pr e s e n t (I ) (2 ) (3 ) (4 ) Sp e c i a l C o n t r a c t 1 ( b ) 40 0 Cu s t o m e r C h a r g e 22 7 . De m a n d ( K W ) $1 2 . kW h R a t e (e ) 38 1 Ex c e s s K V a r $0 . Sp e c i a l C o n t r a c t 2 40 1 Cu s t o m e r C h a r g e $3 4 1 . 3 3 Ma v - Oc t o b e r HL H k W h R a t e 80 8 LL H k W h R a t e $2 . I 1 De m a n d ( K W ) $1 3 . No v e m b e r - ri l HL H k W h R a t e 2. 3 3 6 LL H k W h R a t e 10 6 De m a n d ( K W ) $1 0 . Pu b l i c S t r e e t L i ht i n , I Al l C o m p o n e n t s N/ A (b ) D o e s n o t c o n t a i n r a t e a d j u s t m e n t s d u e t o i n t e r r u p t i b i l i t y c r e d i t . Co m m i s s i o n A p p r o v e d (5 ) ~- r - - M V) O ' - H ~ M O M- M . p J c: . ) 0 OJ ) ro Z U t ; . . . . ~ p. . . ~~ p . . . ;. . . . . 0 0 ;;. - . ;. . . . Q ) (/) g U "j : ; .. . . . . . . 34 5 . $1 3 . 61 0 0 $0 . $3 7 3 . 07 1 0 2. 3 0 3 0 $1 4 . 55 4 0 30 3 0 $1 2 . No C h a n g e