HomeMy WebLinkAbout20110603Decision Memo.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL
DATE: JUNE 2, 2011
SUBJECT: PACIFICORP’S GENERAL RATE CASE APPLICATION, CASE NO.
PAC-E-11-12
On May 27, 2011, PacifiCorp dba Rocky Mountain Power (“Rocky Mountain” or
“Company”) filed an Application with the Commission seeking approval to increase its rates for
electric service to its retail customers in Idaho by approximately $32.7 million, or an overall
average rate increase of 15%.
THE APPLICATION
Rocky Mountain provides electricity to approximately 72,400 customers in
southeastern Idaho. Rocky Mountain states that its request for an increase in its rates for electric
service utilizes a test year of January 1, 2010 through December 31, 2010, with known and
measurable adjustments throughout the 2011 calendar year. The table below outlines the
proposed average increase for each customer class:
CUSTOMER GROUP PROPOSED INCREASE
Residential (Schedule 1) 7.2%
Time of Use Residential (Schedule 36) 15.9%
General Service
(Schedule 23/23A)
(Schedule 6/6A)
(Schedule 19)
11.8%
10.8%
9.7%
Medium and Large General Service
(Schedule 9)
11.2%
Irrigation (Schedule 10) 19.9%
DECISION MEMORANDUM 2
Large Industrial/Special Contracts
(Schedule 400)
(Schedule 401)
18.7%
19.9%
TOTAL AVERAGE INCREASE 15%
In its Application, Rocky Mountain requests that the Commission grant a return on
equity of 10.5%. The Company estimates an overall cost of capital of 8.25%. The Company
claims that its net power costs have increased by approximately $287 million above the costs
“currently included in customers’ rates.” Additionally, Rocky Mountain cites certain “capital
additions” and “incremental operating costs associated with added generation and environmental
facilities” as cost-drivers of its proposal for an increase in rates. The Company’s Application
also includes additional information regarding its investment in the Populus to Terminal
Transmission Line. Rocky Mountain attached the testimony of 14 separate witnesses in support
of its Application.
Rocky Mountain has attached a copy of the Notice it has provided to its Idaho retail
customers regarding the proposed increase. The Company proposes June 27, 2011 as an
effective date for these changes.
COMMISSION DECISION
1. Does the Commission wish to issue a Notice of Application, including an
Intervention Deadline?
2. Does the Commission wish to suspend the proposed rates contained in Rocky
Mountain’s Application for a period of 30 days plus 5 months pursuant to Idaho Code § 61-622?
M:PAC-E-11-12_np