20110128Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 28, 2011

SUBJECT: IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN
POWER REQUESTING APPROVAL OF REVISIONS TO ITS
DISPATCHABLE IRRIGATION LOAD CONTROL PROGRAM, CASE NO.
PAC-E-11-06

On January 20, 2010, PacifiCorp dba Rocky Mountain Power (“Rocky Mountain” or
“Company”) filed an Application, pursuant to Idaho Code §§ 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”).
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 1 to 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 has now 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
DECISION MEMORANDUM 2
somewhat by 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 proposes 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.
STAFF RECOMMENDATION
Staff has reviewed Rocky Mountain’s Application and recommends that the
Commission process the Application through Modified Procedure with a 45-day comment period.
COMMISSION DECISION
Does the Commission wish to process Rocky Mountain’s Application through Modified
Procedure with a 45-day comment period?
M:PAC-E-11-06_np