20110427final_order_no_32235.pdf

Office of the Secretary
Service Date
April 27,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF PACIFICORP DBA ROCKY MOUNTAIN )CASE NO.PAC-E-1 1-06
POWER’S REQUEST FOR APPROVAL OF )
REVISIONS TO ITS DISPATCHABLE )ORDER NO.32235
IRRIGATION LOAD CONTROL PROGRAM )
On January 20,2010.PacifiCorp dba Rocky Mountain Power (“Rocky Mountain”or
“Company”)filed an Application,pursuant to Idaho Code §sS 61-502 through -503 and
Commission Rule of Procedure 52,IDAPA 31.01.01.052,requesting an Order from the
Commission allowing the Company to enact prospective changes to its Dispatchable Irrigation
Load Control Program (“Program”).
On February 4,2011,the Commission issued a Notice of Application and Modified
Procedure with a 45-day comment period.See Order No.32173.Thereafter,the Commission
received written comments from the Idaho Conservation League (“ICL”),Idaho Irrigation
Pumpers Association (“IIPA),Commission Staff (“Staff’),and several Program participants.
On April 7,2011,the Commission received a Stipulated Agreement (“Stipulation”)
signed by Rocky Mountain,IIPA.Staff and endorsed by the JCL.
THE APPLICATION
PacifiCorp is a Utah corporation providing retail electric service to customers in
Utah,Wyoming and Idaho.The Company lists its principal place of business as Salt Lake City,
Utah.
The Schedule 72A Program is a voluntary program available to irrigation customers
receiving service under Schedule 10.Program participants agree to curtail demand during the
Company’s summer peak usage period by turning off their pumps intermittently,total
curtailment not to exceed 52 hours for any Program participant,during the summer season (June
ito August 31).The Company is authorized to turn off pumps,with a prior day notification,
from 11 a.m.to 7 p.m.MDT,Monday through Friday,during the Program season.
Rocky Mountain noted that Program participation reached 278 MW of curtailment in
2010.According to the Company,the success of the Program has led to certain voltage control
problems.In 2010,the Company claims that it was able to mitigate the problem somewhat by
ORDER NO.32235 1
implementing a “phasing process to ramp load off and back on during dispatch events.”
However,Rocky Mountain states that it is now necessary to shift some Program participants to
other load control hours in order to lessen the magnitude of load loss during summer peak load
hours.
Accordingly,Rocky Mountain proposed the following modifications to the Schedule
72A Program:
1,The addition of language,similar to that found in the Schedule 23
Irrigation Peak Rewards Program,allowing the Company to reject
prospective Program participants and pertaining to the Program’s cost-
effectiveness and the impact of Program participation on the Company’s
transmission and distribution system;
2.Elimination of the graduated rate schedule;
3.Fixing the Load Control Service Credit at $25.30 per kW per year;
4.Changing the opt-out penalty schedule from the current market price of
energy to a graduated scale (more fully described in the Application);
5.Other administrative language changes in the Tariff including:modifying
language about continued Program participation;elimination of the
internet-access requirement;excising redundant language regarding the
calculation of the credit and references to air-time communication costs;
discontinue the use of equipment charges;and substituting the phrase
“Program Season”for “irrigation season”in the Tariff.
In support of its Application,Rocky Mountain filed the direct testimony of Carol
Hunter,Vice President in charge of the Company’s demand-side management programs.
STIPULATION
On April 7,2011,Rocky Mountain filed a Stipulated Settlement Agreement
(“Stipulation”).The initial paragraph of the Stipulation states that Rocky Mountain,IIPA and
Staff (collectively referred to as “Parties”)have entered into the Agreement.It also states that,
while it is not a signatory to the agreement,ICL does not oppose Commission approval of the
Stipulation.
The Stipulation contains the following terms and conditions:
1.In 2011,Rocky Mountain will pay the current Load Control Service Credit
of $28.00 per kW-year plus a $2.00 incentive totaling $30.00 per kW-year
for the 2011 program season for a combined program participation at 175
MW or greater.This credit will be reduced for the impact of 11 MW of
ORDER NO.32235 2
unobtainable curtailment due to constraints on the Company’s
transmission system (shown below).If the program participation levels
are greater than 175 MW,then the reduction to the credits paid is as
follows:$30.00 per kW-year x 11,235 kW =$337,050 /232,100 kW =
$1.45 per kW-year,or a credit of $28.55 per kW-year.If the program
participation levels are less than 175 MW then all participants will be paid
according to the Participation Credit Schedule listed on Electric Service
Schedule 72A,Sheet No.72A.2.less an adjustment of $1 .45 per kW-year.
1 Nominal Nominal Additional
Peak Participation Participation Curtailable Reductions Total %of Total
Substations Circuits Load Load Net 18%Load Net of 18%Reductions Participation
Hamer HMR1 1 7,800 13,061 10,710 5,850 4,860 7,21 1 55%
HMR12 2,747 2,605 2,136 2,060 76 545 21%
Sand Dune SND2I [12,960 16,927 13,880 9,720 4,160 7,207 43%
Reno RENI3 I 3,505 5,814 4,768 2,629 2,139 3.186 55%
(4,860 +76 +4,160 +2,139 =11.235 kW)
2.In 2012,Rocky Mountain will pay the current Load Control Service Credit
of $28.00 per kW-year plus a $2.00 incentive totaling $30.00 per kW-year
for the 2012 program season for a combined program participation at 175
MW or greater.If the program participation levels are less than 175 MW,
then all participants will be paid according to the Participation Credit
Schedule listed on Electric Service Schedule 72A,Sheet No.72A.2.
3.The Company commits to investing a minimum of $1.3 million in capital
improvements to identify and install equipment needed to reduce the
constraints on the four substations noted above prior to the start of the
2012 irrigation season.
4.As part of the annual irrigation report,the Company agrees to complete a
review of circuit loading and recommend any needed changes or
investments for the following year’s irrigation season to continue to
address circuit loading issues.
5.The Parties agree that the dispatch program season will be from June 1 to
August 31 of each year.
6.The Parties agree that Schedule 72A will be revised to include the
following language which will be in effect for 2011 and 2012.The
Company must seek and receive approval from the Commission to include
the language in the tariff for years after 2012:
The Company shall have the right to select and reject new Program
participants,at its sole discretion based on criteria the Company
considers necessary to ensure the effective operation of the Program
and utility system.Selection criteria may include,but will not be
ORDER NO.32235 3
limited to,cost effectiveness and impact on the operation of the
Company’s transmission and distribution system.
7.The Parties agree that the Company will include changes to the tariff to
change the penalty for opt-out events available to the Schedule 72A
participants to a percentage reduction in the participation credit for each
event as follows:
1 opt out event-100%of the participation credit paid to participant
2 opt out events-90%of the participation credit paid to participant
3 opt out events-70%of the participation credit paid to participant
4 opt out events-50%of the participation credit paid to participant
5 opt out events-25%of the participation credit paid to participant
6 opt out events-participation in Program terminated for the year
8.The Parties agree that,at the discretion of the Company and by agreement
with selected customers,selected irrigators will be required to manually
operate their pumps during control events.Failure to operate the pump
will be considered an opt-out event.
9.For 2011 and 2012,the Parties agree that program participation will be
targeted to achieve 232 MW ofparticipating load.(Emphasis added).The
Company will work to ratably reduce program participation from the 2010
level of 283 MW by 18%to approximately 232 MW.
a.The Company will work with individual pumpers participating in
the program to identify the approximate reduction necessary to
achieve an 18%reduction from their 2010 participating loads.
b.During this timeframe,new participants or additional load from
existing participants will not be accepted into the program,and no
new participants will be accepted into the Program until existing
participants’load is eligible for inclusion in the program.
c.Participants without the ability to identify an 18%reduction by
segmenting pumps will receive a payment equal to 82%of the
incentive,i.e.,a pumper that only has one pump will receive 82%
of the incentive but the one pump will remain fully in the program.
d.The participation levels will be worked out and communicated to
participants within 20 calendar days of approval of this Stipulation.
e.The changes noted above will result in the following impacts to the
program based on 2010 load levels and achieve a 20%overall
reduction to the program:
2010 Load Participation (MW)283.0
ORDER NO.32235 4
18%Program Reduction (50.9)
Total Estimated Program Level 232.1
10.The Parties agree to support efforts by the Company and Staff to
encourage the Multi-State Process (“MSP”)Standing Committee to
propose a resolution at the next MSP Commissioners’Forum on the issue
of system allocation of the costs for the Idaho Dispatchable Irrigation
Load Control Credit Rider Program.If the system allocation of Program
costs is not accepted by the states of Utah.Oregon and Wyoming by June
1,2012,then the Company may seek Program modifications and/or cost
recovery before the Idaho Commission,including but not limited to
inclusion in a general rate case filing or a request for deferred accounting
treatment.
11.The Parties agree to accept the minor language changes in the Program
tariff proposed by the Company in its Application,including:deleting
language regarding continued participation in the Program;removing the
internet access requirement;deleting duplicate language dealing with
calculation of the credit;removing references to air time communication
costs;changes to use of equipment charges;and changing “irrigation
season”to “Program season”in the tariff.A copy of the proposed Tariff
Schedule 72A is attached to the Stipulation as Attachment A.
The remainder of the Agreement contains general provisions regarding the Parties’
acknowledgements,duties and obligations under the Stipulation.The Parties agree that the
Stipulation is in the public interest and that its terms and conditions are fair,just and reasonable.
COMMISSION DISCUSSION AND FINDINGS
The Commission is satisfied that the major stakeholders in this case have been able to
reach an amicable resolution of the disputed issues regarding the proposed revisions to Rocky
Mountain’s Dispatchable Irrigation Load Control Credit Rider Program.The Irrigation Load
Control Program is one of the most successful demand side management programs in the
Company’s portfolio.However,the Commission finds that the relative success and popularity of
the Program has created certain technological problems which must be effectively addressed in
order to ensure the Program’s continued viability.
Most of the proposed changes to the Program found in the Stipulation are minor.
However,the Parties envision that the cumulative effect of the proposed changes will enable the
substantial decrease,18%,in Program participation that is necessary in order to address the
aforementioned voltage control problems stemming from a rapid increase in Program
participation.
ORDER NO.32235 5
The Commission notes that all of the Parties that have submitted written comments in
this case have either signed the Stipulation or do not oppose it.Prior to the submission of the
Stipulation,the Commission received comments from the IIPA,as well as several individual
irrigators in southern Idaho,expressing concerns regarding the proposed changes.Subsequently.
the IIPA represented its membership in negotiations with the Company regarding the proposed
revisions.As a result,the Company modified key elements of its initial filing,including the
proposed participation credit,to reflect and address the Irrigators’concerns.
The Commission finds that the proposed revisions,found in the Stipulation and more
particularly described above,to the terms and conditions of the Schedule 72A Program are fair,
just,reasonable and in the public interest.The Commission orders that Attachment A to the
Stipulation,Fifth Revision of Sheet No.72A incorporating the revisions found in the Stipulation
and cancelling the Fourth Revision of Sheet No.72A,shall replace the Company’s existing
Electric Service Schedule No.72A.
The Commission’s decision to accept the Parties’Stipulation to amend certain aspects
of the Schedule No.72A Program does not constitute a ratemaking determination by the
Commission.Any approval of the recovery of the costs associated with the administration of the
Program in rates shall be sought by the Company in the context of its next general rate case filing
or another separate proceeding as deemed appropriate by the Commission.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over PacifiCorp dba Rocky
Mountain Power,an electric utility,and the Application in Case No.PAC-E-11-06 pursuant to
Title 61,Idaho Code,and the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Parties’Stipulation adopting revisions to the
Idaho Dispatchable Irrigation Load Control Credit Rider Program is approved.
IT IS FURTHER ORDERED that Attachment A to the Stipulation,Fifth Revision of
Sheet No.72A,shall replace Rocky Mountain Power’s existing Electric Service Schedule No.
72A for the calendar years of 2011 and 2012.After 2012.the Company shall seek the
Commission’s approval of the language contained in Attachment A.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
ORDER NO.32235 6
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626.
44’
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2011.
PLLLIDENT
.
MACK A.REDFORD,COMMISSIONER
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MARSHA H.SMITH,COMMISSIONER
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Commission Secretary
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ORDER NO.32235 7