Loading...
HomeMy WebLinkAbout20111102Lobb Stipulation Testimony and Exhibits.pdfrr:r,¡:! D1'.:..,'1.,,,, BEFORE THE iou -2 PH 4: 00 IDAHO PUBLIC UTILITIES COMMIS~lQÑ ,.~j ¡:¡ ¡~ ~ I IN THE MATTER OF THE APPLICATION OF ) PACIFICORP DBA ROCKY MOUNTAIN ) CASE NO. PAC-E-11-12 POWER FOR APPROVAL OF CHANGES ) TO ITS ELECTRIC SERVICE SCHEDULES ) ) ) ) ) ) DIRECT TESTIMONY OF RANDY LOBB IN SUPPORT OF THE STIPULATION AND SETTLEMENT IDAHO PUBLIC UTILITIES COMMISSION NOVEMBER 2, 2011 ALLEGEDLY PROPRIETARY DATA HAS BEEN DELETED FROM THIS DOCUMENT 1 2 record. Q.Please state your name and business address for the 3 A.My name is Randy Lobb and my business address is 4 472 West Washington Street, Boise, Idaho. 5 6 Q.By who are you employed? A.I am employed by the Idaho Public Utilities 8 7 Commission as Utilities Division Administrator. Q.What is your educational and professional 9 background? 10 A.I received a Bachelor of Science Degree in 11 Agricultural Engineering from the University of Idaho in 1980 12 and worked for the Idaho Department of Water Resources from 13 June of 1980 to November of 1987. I received my Idaho 14 license as a registered professional Civil Engineer in 1985 15 and began work at the Idaho Public Utilities Commission in 16 December of 1987. I have conducted analysis of utility rate 17 applications, rate design, tariff analysis and customer 18 petitions. I have testified in numerous proceedings before 19 the Commission including cases dealing with rate structure, 20 cost of service, power supply, line extensions, regulatory 21 policy and facility acquisitions. My duties at the 22 Commission currently include case management and oversight of 23 all technical Staff assigned to Commission filings. 24 25 Q.What is the purpose of your testimony in this case? A.The purpose of my testimony is to describe the CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 1 STAFF 1 comprehensive settlement reach by most of the parties to the 2 case and explain Staff's support. 3 4 Q.Please summarize your testimony. A.Staff supports the Stipulated Settlement proposing 5 a two-year rate plan that recovers a limited level of capital 6 expenditures and an increasing level of power supply costs 7 through a combination of base rate increases and Energy Cost 8 Adjustment Mechanism (ECAM) surcharges. Staff believes that 9 the comprehensive multi-year approach to resolving revenue 10 requirement represents a significantly better deal for 11 customers than could be achieved through either a one year 12 settlement, litigation of the current rate case, or 13 resolution of additional rate filings in 2012. 14 Staff further supports provisions of the 15 Stipulation that spread the revenue increase to customer 16 classes based in part on cost of service, generally increases 17 rate components on a uniform basis, addresses Populous to 18 Terminal transmission costs and provides resolution of 19 Monsanto interruptible credit valuation over the next two 21 20 years. 22 Q.How is your testimony organized? A.My testimony is subdivided under the following 23 headings: 24 25 Stipulation Overview The Settlement Process Page 3 Page 6 CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 2 STAFF 4 1 Staff Evaluation Page 8 Cost of Service Page 16 Rate Design Page 17 ECAM Issues Page 18 Other Items Page 20 Stipulation Overview 2 3 5 6 Q.Would you please describe the terms of the 7 Stipulation? 8 A.Yes. The Stipulation specifies a two-year rate 9 plan increasing base rates by $17 million (7.8%) in year one 10 and $17 million (7.2%) in year two. The base rate increase 11 proposed to take effect on January 1, 2012 and January 1, 12 2013 consists of an $11 million increase in Net Power Supply 13 Expenses (NPSE) and a $6 million increase in non-NPSE each 14 year. This compares with the Company's original proposal of 15 increasing base rates by $32.7 million (15%) in one year. 16 While the Stipulation represents a comprehensive 17 settlement, it does not provide agreement or acceptance of 18 specific revenue requirement adjustments or cost of service 19 methodology. However, it does incorporate all Commission 20 ordered adjustments from Case PAC-E-10-07, Order No. 32196. 21 The Stipulation specifically identifies base NPSE 22 in 2012 and 2013 for use in the ECAM including annual 23 Renewable Energy Credit (REC) revenue and establishes a load 24 change adjustment rate (LCAR) for the rate period. The 25 Stipulation also specifies how Monsanto and Agrium's share of CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 3 STAFF 1 ECAM deferral balances will be amortized and collected 2 through 2014. 3 The Stipulation further specifies spreading the 4 revenue increase to customer classes based, in part, on the 5 Company's proposed Cost of Service (COS) Study. The parties 6 agreed to a 25% move toward COS each year of the rate plan as 7 part of the proposed settlement in this case without 8 accepting the Company's COS methodology for revenue 9 allocation in the future. The parties also agreed that rate 10 component changes within individual customer classes will be 11 prorated based on the original proposal filed by the Company. 12 However, customer charges for Residential Schedules 1 and 36 13 would remain unchanged. 14 Other terms in the Stipulation include: 1) 15 escalation in the current Monsanto curtailment product value 16 by I~ million each year of the two-year plan; 2) agreement 17 on the used and useful nature of the Populous to Terminal 18 Transmission line (including dismissal of the pending Idaho 19 Supreme Court appeal and excluding that portion of the line's 20 cost deemed plant held for future use (PHFU) from rate base 21 until January 1, 2014); 3) continued deferral of depreciation 22 expense associated with the Populus to Terminal transmission 23 line, pursuant to Order No. 32224; and 4) tracking Idaho's 24 share of the customer load control service credit through the 25 ECAM at the base amount of $1,045,423 pending cost allocation CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 4 STAFF 1 treatment of the dispatchable irrigation load control 2 program. 3 Finally, the Stipulation specifies a series of 4 collaborative meetings to address: 1) terms, conditions and 5 valuation of Monsanto's curtailment products; 2) cost of 6 service methodologies as applied to Monsanto and the 7 irrigation class and how said methodologies will be utilized 8 in the next general rate case; 3) terms of the irrigation 9 load control program for the 2013 season and beyond; 4) 10 hedging limits consistent with workgroup processes 11 established in Utah and Oregon. 12 The Stipulation specifies that Rocky Mountain Power 13 will not file another general rate case before May 31, 2013, 14 with new rates not effective prior to January 1, 2014. The 15 Stipulation does not prohibit the Company from revising rates 16 as part of its annual ECAM filing. The Stipulation is 17 attached as Staff Exhibit No. 101. 18 Q.How does the annual base revenue requirement 19 increase proposed in the Stipulation compare to the increase 20 originally proposed by Rocky Mountain Power? 21 A.As noted above, the Company proposed to increase 22 annual base electric revenue in 2012 by $32.7 million or 15% 23 overall. The Stipulation increases annual base electric 24 revenue by $17 million in 2012 or approximately 52% of the 25 Company's original request. The Company did not propose a CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 5 STAFF 1 base rate increase in 2013 as part of its filing in this 2 case. 3 The Settlement Process 4 Q.Would you please describe the process leading to 5 the Stipulated Settlement? 6 A.Yes. The Company filed its rate application on May 7 27, 2011 and the Commission set a June 21, 2011 intervention 8 deadline. Parties ultimately approved for intervention 9 included the Monsanto Company, the Idaho Irrigation Pumpers 10 Association (IIPA), PacifiCorp Idaho Industrial Customers 11 (PIIC), the Community Action Partnership Association of Idaho 12 (CAPAI) and the Idaho Conservation League (ICL). 13 Once the parties to the case were determined, they 14 met to establish a schedule for production 15 requests/responses, pre-filed direct testimony, pre-filed 16 rebuttal testimony and the dates for the technical hearing. 17 The parties also established August 23, 2011 and September 18 22, 2011 as Settlement conference dates. 19 During the period prior to the first Settlement 20 conference, Staff thoroughly reviewed the Company's rate 21 filing and conducted onsite audit of Company expenses and 22 investments. In addition, Staff met informally with the 23 Company and other parties to discuss a variety of issues in 24 preparation for settlement negotiations. Issues discussed 25 included potential expense adjustments, increasing NPSE and CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 6 STAFF 1 associated ECAM rate impacts, cost of service, revenue spread 2 and the valuation of curtailment products. 3 The first Settlement conference held in August was 4 attended by all the parties in the case and focused primarily 5 on revenue requirement. Return on Equity, power supply 6 expenses, wages and benefits, risk management and wheeling 7 revenues were just a few of the revenue requirement issues 8 presented and discussed. The parties discussed revenue 9 requirement adjustments and stated their positions on issues 10 ranging from jurisdictional and class cost of service cost 11 allocation, to rate design and low income weatherization 12 programs. There was no discussion of a multi-year rate plan 13 and Settlement was not achieved at the first conference. 14 Q.Did additional informal discussions take place 16 15 among the parties prior to the second Settlement conference? A.Yes. As a result of discussions during the initial 17 Settlement conference, it became apparent to the parties that 18 NPSE decisions in this case had multi-year impact through the 19 ECAM. The parties began to analyze the combined base and 20 ECAM rate impact on the various customer classes through the 21 year 2014. Prior to the September Settlement conference, the 22 parties circulated numerous multi-year revenue proposals so 23 all participants could evaluate and agree on how rates would 24 likely change over the period under difference scenarios. 25 On September 22, a proposed two-year rate plan CASE NO. PAC-E- 11 - 1211/02/11 LOBB, R. (Stip) 7 STAFF 1 consisting of a combination of NPSE and non-NPSE base revenue 2 increases was presented. Negotiations ensued on the level of 3 increase each year, the split between NPSE and non-NPSE 4 revenue, how revenue spread to customer classes would occur 5 and how ECAM impacts could be mitigated. No Settlement was 6 reached during the second Settlement conference. 7 Q.How did the parties ultimately agree on the terms 8 in the Stipulation? 9 A.Informal discussions among the conference 10 participants continued after the second conference which 11 ul timately led to agreement in principal regarding the two 12 year revenue requirement, revenue spread to customer classes 13 and ECAM rate mitigation. Significant negotiation also 14 occurred over language in the Stipulation regarding treatment 15 of the Populous to Terminal transmission line and the scope 16 of additional discussions that must occur between the Company 17 and interested parties before the next general rate case. As 18 a result of much discussion, negotiation and compromise, all 19 parties to the case except CAPAI signed the Stipulation. ICL 20 officially withdrew as an Intervenor in the case on October 21 14, 2011. 22 Staff Evaluation 23 Q.How did Commission Staff evaluate the Stipulation 24 to determine that it was reasonable? 25 A.There were several steps taken by Staff in this CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 8 STAFF 1 case to fully evaluate the Stipulation and conclude that it 2 was reasonable. The focus of the evaluation was to assure 3 the best deal for customers. The first step was to identify 4 revenue requirement adjustments based on a thorough review of 5 the Company's filing and an extensive audit of Company 6 financial records. The identified adjustments reducing the 7 requested increase must be supported by evidence on the 8 record and have a reasonable chance of being accepted by the 9 Commission. 10 The second step was to determine if the identified 11 adjustments removed costs from rate recovery or simply 12 removed costs from base rate recovery. For example, NPSE 13 adjustments might remove costs from base rate recovery only 14 to have them tracked for later recovery through the ECAM 15 mechanism. 16 Q.What adjustments did Staff identify and how were 17 they categorized? 18 A.Staff identified a broad range of adjustments 19 starting with adjustments previously approved by the 20 Commission in the Company's last rate case, Case No. 21 PAC-E-10-07. These adjustments included a lower ROE than 22 that proposed by the Company in this case, continued removal 23 of Populus to Terminal transmission costs until the next rate 24 case, removal of salary increases and reduction in coal 25 stockpile costs. Other identified adjustments included CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 9 STAFF 1 Klamath Falls expenses, coal settlement costs, property 2 taxes, abandoned proj ect costs, a variety of power supply 3 expenses and a number of other miscellaneous costs. Staff's 4 proposed adjustments, if fully accepted by the Commission, 5 would have reduced the Company's revenue increase request by 6 approximately $14.3 million, $5 million of which were power 7 supply costs subj ect to recovery through the ECAM. 8 Q.Did other parties to the case propose revenue 10 9 requirement adjustments? A.Yes. Other parties suggested adjusting power 11 supply costs, ROE, wheeling revenues, hedging expenses and 12 REC revenues. However, most of these suggestions were 13 already incorporated in Staff adjustments, previously decided 14 by the Commission, or in Staff's view, were without 15 sufficient support. Consequently, Staff evaluated the 16 revenue requirement settlement at this point primarily based 18 17 on Staff adjustments alone. Q.Did Staff consider proceeding to hearing rather 20 19 than settling the case? A.Yes. Staff considered proceeding to hearing with 21 the identified adjustments. In this case, Staff was not 22 confident that it could successfully defend all of the 23 identified adjustments on the record in the face of rebuttal 24 testimony provided by the Company. 25 While the Commission makes the final decision on CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 10 STAFF 1 Company revenue requirement based on the record at hearing, 2 it is the parties to the case that make revenue requirement 3 adj ustment recommendations for the Commission to consider. 4 The outcome at hearing in terms of revenue requirement must 5 therefore be evaluated based on both the adj ustments to the 6 Company's revenue request that are presented on the record 7 and how the Commission might decide each adjustment. 8 In Staff's opinion, the best case scenario at 9 hearing would have been an increase in the range of $18.5 10 million (8.5%) achieved in part by pushing $5 million in NPSE 11 to the ECAM for later recovery. 12 14 13 basis? Q.Why did Staff pursue settlement on a multi-year A.Staff determined that approximately $17 million of 15 the Company's requested $32.7 million increase in this case 16 was for increased NPSE that is already accumulating in the 17 ECAM deferral balance for recovery starting in April of next 18 year. Failure to recover legitimate NPSE in base rates as 19 part of this case pushes recovery of the expenses to the ECAM 20 in 2013. Clearly, cost recovery decisions in this case have 21 a multi-year impact on customer rates. 22 23 Q.What are the reasons for the NPSE increase? A.The primary reason for the NPSE increase in this 24 case is the declining revenue from surplus electricity sales 25 used to offset system power supply expenses and to a lesser CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 11 STAFF 1 extent, expiration of low-cost power purchase agreements and 2 increasing coal costs. Surplus sales revenue has declined 3 due to reduced market value of electricity caused by 4 declining natural gas prices and increasing surplus wind 5 generation. While surplus sales volume has increased and the 6 cost to fuel natural gas generating plants has decreased, it 7 has not been enough to offset the decline in surplus sales 8 revenue. 9 NPSE has been characterized as the utility's power 10 bill that is passed on to customers. Historically, it has 11 been very difficult to remove expenses in this category from 12 both base rate and ECAM recovery. 13 Q.How has NPSE changed over the last few years and 14 what is the forecast for next year? 15 A.In Case No. PAC-E-10-07, the Company proposed an 16 increase in Idaho NPSE from $66.1 million to $69.2 million. 17 The Commission approved Idaho NPSE of approximately $66.2 18 million in that case. In this case, the Company requested 19 Idaho NPSE of approximately $82.8 million or approximately 20 $17.7 million more than currently in base rates. In its most 21 recent rate filing in the State of Utah, the Company 22 forecasted NPSE through year end 2012 to be approximately 23 $1.521 billion on a system basis or approximately $98.4 24 million in Idaho. This amount is approximately $15.6 million 25 more in NPSE than the Company requested in this case. The CASE NO. PAC-E-11-1211/02/11 LOBB, R . ( St ip) 12 STAFF 1 Company indicates that NPSE should level off somewhat after 2 2012. In the meantime, the difference between NPSE recovered 3 in base rates and NPSE actually incurred will be recovered 5 4 through the ECAM. 7 6 issue? Q.How does the multi-year settlement address the NPSE A.The multi-year settlement spreads recovery of 8 increasing NPSE over three years by combining the proposed 9 $22 million in NPSE base rate increases with the existing $10 10 million of NPSE currently recovered through the ECAM. By the 11 end of the rate plan in 2013, annual NPSE recovery in Idaho 12 will total approximately $98.2 million with the potential for 13 ECA rate reduction. This will allow customers to better 15 14 manage the impact of increasing power supply costs over time. Q.How did Staff evaluate the non-NPSE increases 17 16 specified in the Stipulation? A.Unlike NPSE costs, non-NPSE costs can only be 18 recovered through base rates. Therefore, Staff focused on 19 achieving a lower level of recovery for this category of 20 costs and a better deal for customers through settlement than 21 could be achieved through the hearing process. 22 The Company requested an increase of approximately 23 $16 million in non-NPSE in this case. Based on Staff's 24 identified adjustments for this category of costs, the best 25 outcome that could be expected at hearing was an increase of CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 13 STAFF 1 approximately $6.7 million. The Stipulation proposes an 2 increase of $6 million or less than 38% of the amount 3 originally requested by the Company. This stipulated amount 4 is equivalent to the Commission accepting every adjustment 5 proposed by the Staff plus an additional $700,000. 6 Q.How did Staff determine that the rate increase 7 proposed in the second year of the Stipulation was 8 reasonable? 9 A.Staff evaluated the rate increase proposed for the 10 second year based on the rate request made by the Company 11 last year, the overall rate request made this year and the 12 likelihood that the Company would make a similar rate 13 increase request next year. Last year the Company requested 14 an increase of $27.7 million (13.7%) of which $24.6 million 15 was for non-NPSE. The Commission approved an increase of 16 $14.35 million (7.07%) all of which was non-NPSE. In this 17 case, the Company requested an increase of $32.7 million 18 (15%) of which $16 million was non-NPSE. 19 Using a 2012 forecasted test year, the Company 20 filed in the State of Utah to increase NPSE (over Company 21 proposed 2011 levels) by approximately $15.6 million on an 22 equivalent Idaho jurisdictional basis. The proposed rate 23 base increase in the Utah filing was approximately $153 24 million on an Idaho equivalent basis. The non-NPSE increase 25 associated with just the return on the increased rate base is CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 14 STAFF 1 approximately $12 million in Idaho. Absent approval of the 2 Settlement, the Company could and likely would file for a 3 rate increase in 2012 exceeding $30 million, with more than 4 $12 million of the requested increase for non-NPSE. The 5 Stipulation proposes a non-NPSE increase that is less than 6 50% of that level. 7 Q.Could you please summarize Staff's support of the 8 Stipulation with regard to the revenue requirement increase 9 over the two-year period? 10 A.Yes. Because actual power supply expenses are 11 tracked for recovery through the ECAM, customers can pay them 12 now through base rates or pay them later through the ECAM. 13 The $22 million NPSE base rate increase specified in the 14 Stipulation, when combined with expenses currently collected 15 through the ECAM, will reasonably spread recovery of expected 16 power supply costs through 2014. 17 Staff believes the $12 million non-NPSE increase 18 specified in the Stipulation represents a fraction of the 19 non-NPSE that the Company has requested in this case and 20 would request in a filing next year. Staff maintains that 21 the $6 million non-NPSE increase this year is only 38% of the 22 Company's request and a better deal for customers than could 23 be achieved at hearing. Staff further maintains that the $6 24 million increase in non-NPSE in 2013 is less than 50% of what 25 the Company would otherwise request in a filing next year. CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 15 STAFF 1 The Stipulation prohibits the Company from any further base 2 rate increases until January 1, 2014. 3 Cost of Service 4 Q.Could you please describe the Stipulation with 5 respect to customer class cost of service (COS) and revenue 6 spread? 7 A.Yes. While the parties to the Stipulation agreed 8 to a revenue spread in this case based on the Company's 9 proposed class COS study, they did not agree to accept the 10 methodology in future rate cases. The Stipulation specifies 11 that the revenue spread to customer classes in each year of 12 the rate plan will include a 25% move toward the Company's 13 proposed COS in this case. 14 The resulting revenue spread to the various 15 customer classes in year one of the rate plan range from an 16 increase of 5.88% for Schedule 1 residential customers to 17 8.91% for Irrigators, Agrium and the Monsanto Company. Year 18 two increases range from 5.43% for residential customers to 19 8.25% for Irrigators, Agrium and the Monsanto Company. The 20 revenue spread and associated increases for each class, in 21 each year of the rate plan, is shown on Attachment 1 to the 22 Stipulation. 23 Staff believes that the 50% move toward COS over 24 two years is a reasonable compromise that balances the need 25 for each customer class to pay its fair share while CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 16 STAFF 1 mi tigating an even greater rate impact that would otherwise 2 occur with a full COS move. The compromise also allows 3 parties to accept some COS responsibility without accepting a 4 COS methodology. 5 Rate Design 6 Q.How are individual rate components proposed to 7 change under the Stipulation? 8 A.The Parties agreed to accept, for the purposes of 9 this case, the Company's proposals to adjust rate components 10 within each rate schedule with the exception of customer 11 charges in Residential Schedules 1 and 36. Customer charges 12 for these schedules will remain unchanged at $5 and $14 per 13 month, respectively. 14 Demand charges for Schedules 6, 6A, 9 and 10 will 15 increase each year based in part on cost of service and 16 prorated to reflect the revenue increase assigned to each 17 customer class. Other rate components will increase 18 uniformly reflecting the overall increase in class revenue 19 requirement. Staff believes that the stipulated rate changes 20 are reasonable in allowing customer charges to remain stable, 21 demand charges to generally reflect cost of service and for 22 other charges including energy to reflect the class revenue 23 requirement increase. 24 Schedule 1 residential customers using the annual 25 monthly average of 837 kWh per month will see a monthly base CASE NO. PAC-E-11-12 11/02/11 LOBB, R. (Stip) 17 STAFF 1 rate increase of $5.47 and $4.20 in summer and winter, 2 respectively, in the first year. Customers will see an 3 additional increase of $5.36 and $4.10 per month in summer 4 and winter , respectively, in the second year. A monthly 5 billing comparison for Residential Schedule 1 at various 6 monthly consumption levels is shown in Staff Exhibit No. 102. 7 ECA Issues 8 Q.What ECAM issues are addressed in the Stipulation? 9 A.Besides specifying the ECAM level of system NPSE in 10 base rates for 2012 and 2013 at $1.205 billion and $1.385 11 billion, respectively, the Stipulation specifies the ECA 12 level of system Renewable Energy Credits (RECs) included in 13 rates at $78.8 million and establishes the ECAM LCA at $5.47 14 per Mwh through 2013. The Stipulation also establishes the 15 level of Idaho allocated Irrigation Load Control program 16 credits at $1. as million to be tracked through the ECA 17 pending resolution of system allocation issues. 18 Q.Could you please explain Staff's support for these 19 ECAM terms specified in the Stipulation? 20 A.Yes. Staff supports the system NPSE levels 21 specified in the Stipulation for 2012 and 2013 because they 22 are consistent with stipulated NPSE revenue requirement 23 increases for those years. These levels must be specified in 24 order for the ECAM to work properly. The ECAM REC revenue 25 levels are as filed by the Company and within a reasonable CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 18 STAFF 1 range of expected revenue on an annual basis. Actual annual 2 revenue above or below this level will be tracked through the 3 ECA and trued up each year. 4 The specified LGAR of $5.47 per Mwh was approved by 5 the Commission as part of Case No. PAC-E-10-7 and is 6 currently used in the ECAM. Staff supports continued use of 7 the previously approved LGAR level through 2013. 8 The Irrigation Load Control program credit level of 9 $1. as million specified in the Stipulation is consistent with 10 Irrigation program costs currently allocated to Idaho. Staff 11 agrees that the ability to track irrigation program costs 12 assigned to Idaho through the ECAM during the period of the 13 rate plan is consistent with the Stipulation approved by the 14 Commission in Case No. PAC-E-11-06. The Multi-State Process 15 (MSP) on jurisdictional allocations will determine during the 16 rate plan period if Idaho Irrigation Load control costs will 17 be accepted by other state jurisdictions as a system 18 resource. 19 Q.Are there any other ECAM issues specified in the 20 Stipulation? 21 A.Yes. The Stipulation provides for multi-year 22 amortization of ECAM costs assigned to Agrium and the 23 Monsanto Company. Monsanto and Agrium are not currently 24 subj ect to ECAM rates. However, these customers will be 25 subject to the ECAM starting in 2012. Consequently, they CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 19 STAFF 1 will experience a base rate increase on January 1, 2012 and a 2 significant ECAM rate increase on April 1, 2012 as they 3 become subj ect to the tracking mechanism. This will occur 4 again in 2013. To mitigate the rate impact of both the base 5 rate increase and the ECAM increase, the Stipulation provides 6 for amortization of ECAM balances subj ect to recovery from 7 the two customers. 2012 (2011 deferrals) ECAM balances will 8 be amortized through 2014, 2013 (2012 deferrals) ECAM 9 balances will be amortized through 2015 and 2014 (2013 10 deferrals) ECAM balances will be amortized over two years 11 through 2016. 12 Staff fully supports amortization of the ECA 13 deferral balance for these customers to mitigate the much 14 larger rate impact that would otherwise occur. Staff notes 15 that agreement to amortize ECAM expense recovery for these 16 customers has no impact on other Rocky Mountain Power 17 customers in Idaho. 18 Other Items 19 Q.Would you please describe the terms in the 20 Stipulation with regard to the Populous to Terminal 21 transmission line. 22 A.Yes. The parties agreed as part of the Stipulation 23 in this case that the Populous to Terminal transmission line 24 is currently, fully used and useful. However, the parties 25 also agree that the portion of the transmission line deemed CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 20 STAFF 1 plant held for future use in Case No. PAC-E- 10 - 07 shall not 2 be included in rates until on or after January 1, 2014. The 3 parties further agree that the Staff and the Company will 4 file a motion to suspend the Appeal now pending in the Idaho 5 Supreme Court, docketed as Case No. 38930-2011. The parties 6 also agree that the Company will file a stipulation for 7 dismissal of the appeal with each party to bear its own costs 8 upon receipt of a final order from the Commission approving 9 this Stipulation. Consistent with the terms of the 10 Stipulation, the Company and Staff filed the motion to 11 suspend the appeal on October 25, 2011. 12 The Stipulation also directs the Company to 13 continue deferring depreciation expense associated with the 14 Populus to Terminal transmission line, pursuant to Order No. 15 32224, until it is included in rates on or after January 1, 16 2014 and that the accumulated deferral balance will be 17 amortized over three years from the date the costs are 18 included in rates. 19 20 Q.Why did Staff agree to these terms? A.Staff agreed to the terms in the Stipulation as a 21 compromise in order to achieve a comprehensive settlement in 22 this case on revenue requirement. Staff believed that it 23 could agree to the position that the Populous to Terminal 24 transmission line was now fully used and useful as long as 25 that portion of the transmission line deemed plant held for CASE NO. PAC-E-11-12 11/02/11 LOBB, R. (Stip) 21 STAFF 1 future use by the Commission was not included in rates until 2 on or after January 1, 2014. Staff supported continued 3 deferral of the Populous to Terminal depreciation expense in 4 compliance with Commission Order until after all costs are 5 included in rates. Staff further viewed future amortization 6 of those costs over three years as a reasonable period for 7 recovery. 8 Q.What other items are addressed in the Stipulation? 9 A.The Stipulation specifies that the value of 10 Monsanto curtailment products will increase from II million 11 in 2011 to il million in 2012 and to II million in 2013. 12 Staff believes the proposed escalation provides a reasonable 13 resolution of an otherwise contentious issue during the 14 period of the rate plan. 15 Finally, the Stipulation provides for workshops and 16 collaborative discussions to address cost of service 17 methodologies as applied to Monsanto and the irrigation class 18 and how methodologies could be utilized in the next general 19 rate case. Workshops will also be conducted to discuss terms 20 of the irrigation load control program for the 2013 season 21 and beyond and hedging limits consistent with workgroup 22 processes established in Utah and Oregon. 23 Staff supports and plans to participate in the 24 discussion on all of these issues. The two-year base rate 25 moratorium provides all parties the opportunity to work CASE NO. PAC-E-11-1211/02/11 LOBB, R. (Stip) 22 STAFF 1 together to gain a common understanding of cost of service 2 issues. Agreement to discuss Irrigation credit valuation and 3 hedging practices of the Company will also provide a timely 5 4 review of resource acquisition choices and strategies. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q.Does this conclude your testimony in this case? A.Yes it does. CASE NO. PAC-E-11-12 11/02/11 LOBB, R. (Stip) 23 STAFF Mark C. Moench Danel E. Solander 201 South Ma Str Suite 2300 Salt Lae City, Uta 841 1 1 Telephone: (801) 220-014 Facsimle: (801) 220-3299 Danel.solander(gpacificorp.com Mark.moench(gacificorp.com RECEIVED 2DfJ OCT' 8 Ar1 fO: 18 IO"H.O F)I¡¡~; '(',~ . ~-l..; _ _ "w'j..~..l\.~ L ,ILlTIES COf\lIVilSSION Attorneys for Rocky Mountain Power BEFORE TI IDAHO PUBLIC UT COMMSSION IN TI MATTR OF TI APPLICATION ) OF PACmCORP DBA ROCKY ) MOUNAI POWER FOR APPROVAL OF ) CHAGES TO ITS ELECTRIC SERVICE ) SCHEDULES AN A PRICE INCREASE )OF 532.7 MILION, OR ) APPROXITELY 15.0 PERCENT ) CASE NO. PAC-E-1l-12 STIPULATION Ths stpulation ("Stipulatonj is ente ino by and among Rocky Mounta Power, a division of PacifCorp ("Rocky Mounta Powet' or the "Compay"); Sta for~!he Idao Public Utilities Commssion ("Staff"); Monsto Compay ("Monsto"); PacifiCorp Idao Indusal Customers ("pnC"); and the Idao Irgaton Pupe Association Inc. ("LIP A") collectively referrd to as the "Pares". Communty Acton Parerp Assoiation of Idao ("CAP AI") pacipate in th settement negotions however they have chosen not to be a pa to the Stipulaton. I. INODUCTON 1. The te and conditions of ths Stipulaton are se fort herin. The Pares age tht ths Stipultion represets a fai, just and renale compromise of the iss in ths proing and th ths Stipulaton is in the public intest. The Pares remmend tht the Idao Public Utilities Commssion ("Commssion"), puruat to its auonty under Commssion REDACTED STIPULA nON - Page 1 Exhibit No. 101 Case No. PAC-E-l 1-12 R. Lobb, Staff 1 1/02/1 1 Page 1 of 18 Rules 271, 272 and 274, appve the Stipulaton an all of its te an condtions. See IDAPA 31.01.01.271,272, and 274. ß. BACKGROUN 2. On May 27, 2011, Rocky Mounta Power filed an Application seekig authonty to increase the Compay's ba rates for electrc sece by $32.7 milion anualy, an overa avere increas of approximately 15.0%. The incree in ras vares by cusmer class and actu use. Rocky Mounta Power sougt an incre in ra effecve Debe 27, 201 i. 3. With a view toW8d resolvig th issue rase in Rocky Mounta Powe's Applicaon in ths prceg, reprentaves of the Pares met on Aug 23, 2011 and Septeber 22, 2011, puruat to IDAPA 31.01.01.271 and 272, to engage in seement discussions. Bas upon the settlement discusions beee the Pares, as a comprmise of the positions in ths proeedg, and for other consderon as se fort below, the Pares stpulate and agr to the followig: III TERMS OF TH STIULTION Revenue Requirment 4. The Pares agr to support a two-yea ra plan with anua ra incrass of $17.0 millon pe year, which reults in overal avere anua revenue increas of apprxitely 7.8 peent in 2012 and 7.2 pent in 2013. The fi incre to bas rate will ocur Janua 1,2012, and wi be compnse of $6.0 millon of non-net power cost componets (caita, opeons and matece, and other) and $11.0 millon of net power costs. Th send incre to bas rates will occur Janua I, 2013, and will be compnse of $6.0 millon of non-net power cost components and $11.0 millon of net power cost. The Compay wil mae a compliance fiing Novembe 1, 2012 to implement the send yea incras of $17.0 millon effecve Janua' 1, 2013 tht will include revise tas. 5. Unless explicitly spified with the Stipulaton, the Pares ag tht deteg the anua incrs of $17.0 millon pe year for two yea is a "black box" REDACTED STIULA nON - Page 2 Exhibit No. 10 1 Case No. PAC-E-II-12 R. Lobb, Staff 11/02/11 Page 2 of 18 seement, with no agen or accetace by the Pares of any speific revenue requient, cost altion or cost of sece metodology. However, the Pares agee th the st point of the Stipultion was to act al Commssion orere adjustments frm Cas PAC-E-I0-o7, Or No. 32196. Al Pares ag th ths Stipulaton reprts a fa, jus and renale comprmise of the issus in ths prg and th ths Stipulaton is in the public intet. Power Costs . 6. The Pares age tht ba on the reenue reuient split spified in pah 4, net power costs in ba rates will incr frm the curnt level of $1.025 billon to $1.205 bilion in 2012 and from $1.205 bilion to $1.385 bilion in 2013. These amoun will beome the tota Compay bas net power costs for trkig in the Compay's energy cost adjusent mechansm e'ECAM. 7. The Pares ag tht $78.8 millon, on a tota Compay basis or $6,526,622 allocate to Idao (R Exhbit 2 pae 3.5) of rewable energy certcate ("REC") revenue is included in rates in 2012 and 2013. The Idao allocatd amount will beme the bas for purses of trkig at 1 00 pent in the Company's ECAM mechasm. 8. The Pares ag to upd th Idao loa in the 2012 ECAM load chage adjusent revenue ("LCAR") cacultion to the 2010 ac load included in PAC-E-1l-12 for the 2012 ECAM deferr caculation and us 2011 actu load rert in the Anua Rests of Opetions Reprt for the 2013 ECAM defer caculon. The LCARunt vaue would be frozen over the ra plan peod at the curt rate of $5.47 pe MW (Cas No. PAC-E-10-o7). 9. The Pares ag th the Compay shal amortze and collec Agum and Monsto's sha of Commssion apprved ECAM baances, which includes defer net power cost defer REC's, LCAR adjusents and other ECAM components, includg the irgation load contrl crt as spifed in parph 10, over the followig period: a) The 2012 ECAM baance (201 1 defers) over a peod of th yea; b) The 2013 ECAM balance (201 2 deferrs) over a period of th yea; c) The 2014 ECAM bace (2013 defers) over a peod of two yea. REDACTED STIULA nON - Page 3 Exhibit No. 101 Case No. PAC-E-II-12 R. Lobb, Staff 11/02/11 Page 3 of 18 d) Begig with the 2015 ECAM baance (2014 deferrs), Monsato and Agum will pay new ECAM cost ba on a 12-month collection peod. Any over-ellecon or under-ellection at the end of the amortzaon peod identied in parphs 9(a) thugh 9(c) above will be tr up for eah contrct cusmei and refude or collecte as pa of a subseuet ECAM collecon peod frm thes contr cusmer and not frm other reta cusomer. Al other cusmer will contiue to pay ECAM chages on the 12- month collecon peod as they curntly do durng the rate plan. 10. The Pares ag tht, due to the uncety of the jursdctiona trtment of the disptchable irgation load control prgr curtly being discse by th MSP Stadin Commtt, Idao's sh of the cumer load contrl sece crt wil be trked in the ECAM. The Pares fuer agr th $1,045,423 (R Exbit 2 page 4.4.1) is Idao's ba amount to be trked in the ECAM for 2012 and 2013. Rate Spred and Rate Desig 1 1. The Pares ag to a rate spre ba upon $ 1 7.0 millon in anua incr for 2012 and 2013 as se fort in more detail in Atthment 1 to ths Stipulaton. 12. Th Pares ag th the deign of rate by rate schedule (ra design) shal be consistent with the Compay's propos filed in its Application and adjused for the reenue reuiment speifed in ths Stipulation. Detals of the rae design ar include in Atthment 2 to ths Stipulation. 13. The Pares ag th the Compay's residential cusomer serce chae for Schedule 1 and 36 will reai at $5.00 pe month and $14.00 per month revely, durg the tie peod covered by ths Stipulation. Other Items 14. The Pares ag that the vaue of Monsto's curlment pructs will be increed frm . millon in 2011, to . millon in 2012, and . milion in 2013. Monsto and the Company wil execut a new energy servce agreement for 2012 an 2013 in order to reflec the term of the Stipulaton. Monsto and the Compy agee to work REACTED STIULA nON - Page 4 Exhibit No. 101 Case No. PAC-E-l 1-12 R. Lobb, Staff 1 1/02/1 1 Page 4 of 18 collabravely and in good fath dun the ra plan peod to addr the tes, condtion and valuaon of Monsanto's curlment products in an effort to maxim value to the Compay and Monsto an also to discus cost of sece metodologies as applied to the Monsto load and how sad metodologes will be utliz in the next gener rate cas. Monsto an the Company will rert to the Sta and Commssion as apprprate on the progrs mae. 15. The Pares ag tht ths Stipulaton does not chae or alte the irgation load contrl sece cret in 2012 or pror ageeents goverg the irgaton load contrl prgr tht reui the irgation load contrl sece crt to be regotiate for the 2013 sen and beyond. The Compay an llA will work collaboravely dur caenda yea 2012 to renegotiate the irgaton load control progr for the 2013 seon and beond. The Compay and lIP A will work collabravely durg the rate plan peod to discus cost of serce metodologies as aplied to the irgation clas and how sad methodologies will be utilizd in the next gener rae ca. 16. The Paries ag tht the porton of the Populus to Teral trssion lie determed by the Commssion in Cas No. PAC-E-10-07 to be plant held for fu us (PHF is now us and usfu. The paes fuer age tht the Commssion should make a spifc fiding that the entire Populus to Ter trmission line is now us and usefu. Althoug the Pares agr tht the Populus to Ter trssion line is us and usfu, they fuer ag tht the porton of the trssion line demed PHF in Cas No. PAC-E-10-07 shal not be included in rate until on or af Janua 1,2014. Followig the filin of ths Stipulaton, Sta and the Compay ag to file a Motion to Susd the Appeal now pedig in the Idao Supreme Cour docketed as Cas No. 38930-2011. Upon reipt of a fi Order frm the Commssion approvi the Stipulaton, the Compay ags tht it will with 1 o days therf fie a stpulaton for Dismissa of the appe with eah par to be its own costs. 17. The Pares ag that the Compay will contiue to defer th depreiation expe assoated with the Populus to Ter trmission lie, purt to Or No. 32224, REDACTED STIULATION - Page 5 Exhibit No. 101 Case No. PAC-E-1 1-12 R. Lobb, Staff 1 1/02/1 1 Page 5 of 18 unti it is included in rates on Janua 1, 2014 and tht the acumulat defer baance wi be amortd over th yea frm the date the costs ar inluded in rate. 18. The Pares age tht the Compay will work with the Pares to establish hedgig limits consistt with workgrup prss estblished in Uta an Orgon for costs begig Janua 1,2013, and forw. 19. The Pares agr th in reogntion of the two-year ra plan cover by ths Stipulon, Rocky Mounta Powe wi not file another genera rate ca before May 31,2013, with new rates not effective pror to Janua 1,2014. Rocky Mounta Power wil contiue to file anua Results of Opetions Reprt with th Commssion to enble the Commssion to en tht ras durg the two-yea rate pla contiue to be jus and renable. Ths Stipulation doe not prhibit the Compay frm resing ra due to the ECAM, whch will stl ocur April 1 eah yea. IV. GENERA PROVISIONS 20. The Pares agree tht this Stipulation rerests a comprmise of the dispute clai and positions of the Pares on all issue in ths prog. Oter th the abve reference positions and any teony fied in support of the appval of ths Stipulaton, and excet to the exnt necssa for a Par to explai before the Commssion its own sttements and positions with respct to the Stipulation, al negotiations relatig to ths Stipulaton sha not be admssible as evdence in ths or any other proing regag ths subjec ma. 21. The Pares submt ths Stipulaton to the Commission and remmend appva of the Stipulation in its enti puruat to Commssion Rule 274, IDAPA 31.01.01.274. The Pares shal support ths Stipuation before the Commssion, and no Par shal ap any porton of ths Stipulaton or any subsuent Orer approvig the sae. If ths Stipultion is chaenged by any pen not a pa to the Stipulation, the Pares to ths Stipulation ree the right to crss-exame witnesses and put on suh ca as they dee apprpriate to respnd fuly to the issues presente includi the right to rase issues tht ar incorprate in the settement emboied in ths Stipulaton. Notwthdi ths reseration of rights, the Pares to ths REDACTED STIULA nON - Page 6 Exhibit No. 101 Case No. PAC-E-11-12 R. Lobb, Staff 11/02/11 Page 6 ofl8 Stipulaton ag th they will contiue to suprt the Commssion's adption of the te of ths Stipulation. 22. In the event the Commssion rejec any pa or al of ths Stipulaton, or imposes any additiona maal conditions on apval of ths Stipulaton, eah Par reseres the right, upon wrtten notice to th Commssion and the other Pares to ths prodi, withn 15 days of the da of such action by the Commssion, to withw frm ths Stipuation. In suh ca, no Par shal be bound or prejudce by the te of ths Stipulation, and eah Par sha be entitled to sek rensideration of the Common's orr, fie testiony as it chooses, cross- exame witnesses, or otherse preset its ca in a maer consistt with the Commssion's Rules and Prceures. 23. The Pares agee th ths Stipuation is in the public interest and that all of its tes and conditions are fai, just and renable. 24. No Par shal be bound, beefte or prejudce by any position asse in the negotition of ths Stipulaton, excet to the exnt exply st herin nor sh ths Stipulaton be consed as a waiver of the rights of any Par uness such rights ar expressly waived herin. Th is a "black box" seement and execution of ths Stipulation sha not be deeed to constute an acknowledgment by any Par of the validity or invalidity of any parcular metod theory or priciple of reguation or cost recovery. No Par sh be deeed to have aged th any metod, theory or prciple of reguaton or cost rever emloyed in arvi at ths Stipulaton is apprpriat for relvig any isues in any other prog in the futu. No fidis of fac or conclusions of law other th those stte herin sha be deeed to be implicit in ths Stipulation. 25. The obligatons of the Pares under ths Stipulaton are subjec to the Commssion's aproval of ths Stipulation in acrdace with its ters and conditions and, if judicial review is sought, upon such apoval being upheld on appal by a cour of compent jursdcton. REDACTED STIULA nON - Page 7 Exhibit No, 101 Case No. PAC-E-II-12 R. Lobb, Staff 11/02/11 Page 7 of 18 Rea submi th /1 day of Ocbe,.2011. Ro MO PoerBy~~Ma . Mo MO Cop8 Id Pu lJ Co St Parp Ida IB Cu By D. Ne Prce ~. Pu ÅHOBBy ~~ . STULTION - Pag 9 ByRod L. WIam Exhibit No. 101 Case No. PAC-E-l 1-12 R. Lobb, Staff 1 1/02/1 1 Page 8 of 18 Respecly submtt this 11 day of Ocober, 2011. Roc Mountin PowerBy~~Ma :m Monto CoDlpa By Rada C. Budp Idaho PubBe UtlUUes Collon St PadftCo lda Induial Cuen ..By (Q~~ D. Nell Prce Idaho IrraUon Puper As.oeltion Ine. By Eric L. 01s STULATION - Pag 9 By Ronald L. WIUIa Exhibit No. 101 Case No. PAC-E-l 1-12 R. Lobb, Staff 1 1/02/11 Page 9 of 18 lly sutt tb /Z day of Oc, 2011. Ro MØ .Po~~MO Ca Byll C. Bud Id Publ UC CM1.'" St Pa Ida ID Cu !lÆ~Lt.~Ro L. WIByD. Nl Pr lda lr.hmr Aa IDe. ByBrlL.O.. STITION - Pag 9 Exhibit No. 101 Case No. PAC-E-l 1-12 R. Lobb, Staff 1 1/02/1 1 Page 10 of 18 ATTACHMNT i Exhibit No. 101 Case No. PAC-E-II-12 R. Lobb, Staff 11/02/11 Page 11 of 18 At t c h n t 1 - s e n t R e v e n u e R e u i r e e n t a n d R a t e S p r d RO C K Y M O U N T A I N P O W . S T A T E O F I D A H O CA S E N O . P A C - E . 1 1 - 1 2 Fi r s Fi r s t Fi r Se c n d Se c n d Se Tw o Tw o Tw o De p t i n SC . Ba s e Ye a r Ye a r Ye a r Ye a r Ye a r Ye a r Ye a r Ye a r Ye a r No . Re v n u e In c To t l Pe r n t In c r a s To t l Pe r In c To t l Pe r c t Re s e n t l 01 $4 1 , 4 8 , 5 9 1 ,¡ $ 2 , 4 3 , 7 2 5 $4 , 9 2 . 3 1 6 5. 8 8 % $2 , 3 8 5 , 2 5 7 $4 , 3 0 5 , 5 7 3 5. 4 3 % $4 , 8 2 4 , 9 8 $4 6 . 3 0 5 , 5 7 3 1 1 . 6 3 % Re s l - T O O 36 $2 , 5 3 2 , 6 1 0 $1 , 7 9 4 . 6 9 7 $2 4 , 3 2 7 , 3 0 7 7. 9 6 % $1 , 7 9 6 . 9 4 1 $2 , 1 2 4 , 2 4 8 7. 3 9 % ' $ 3 , 5 9 1 , 6 3 $2 6 , 1 2 4 , 2 4 8 1 5 . 9 4 % Ge l s e r v i c e - L a r g 06 , 3 5 $2 1 , 1 0 3 , 8 0 $1 , 4 1 3 . 5 5 9 $2 2 , 5 1 7 , 3 6 7 6. 7 0 % $1 , 3 9 7 , 5 3 2 $2 3 , 9 1 4 . 8 9 9 6. 2 1 % $2 , 8 1 1 . 0 9 1 $2 3 , 9 1 4 . 8 9 1 3 . 3 2 % Ge r a s e i c - H i g h V o l t 09 $5 , 8 8 , 3 2 3 $4 1 3 . 4 5 9 $6 , 3 0 , 7 8 2 7. 0 2 % ' $4 1 0 . 2 7 3 $6 , 7 1 3 , 0 5 5 6. 5 1 % $8 3 . 7 3 2 $6 . 7 1 3 , 0 5 1 3 . 9 9 % Ir r g a t i 10 $4 1 . 1 5 1 , 8 0 $3 , 6 6 , 8 9 8 $4 . 8 1 6 . 7 0 0 8. 9 1 % $3 , 6 9 , 2 5 2 $4 , 5 1 1 . 9 5 2 8. 2 5 % $7 , 3 6 , 1 5 0 $4 , 5 1 1 , 9 5 2 1 7 . 8 9 % St & A r e L i g h t i n g 07 , 1 1 . 1 2 $5 9 7 , 8 8 $6 . 4 0 $6 , 2 9 3 1. 0 7 % $3 . 6 7 0 $6 . 9 6 0. 6 1 % $1 0 . 0 7 5 $6 7 . 9 6 1. 6 9 Sp H e t i n g 19 $4 , 1 5 8 $2 . 0 8 8 $4 8 3 . 2 4 6 6. 4 0 % $2 8 , 6 5 3 $5 1 1 , 8 9 5. 9 3 % $5 7 , 7 4 1 $5 1 1 . 8 9 9 1 2 . 7 1 % Ge l s e r v - S m a l l 23 $1 3 , 0 1 4 , 2 9 9 $8 , 3 0 7 $1 3 . 9 0 , 6 0 6. 8 8 % $8 7 , 0 2 3 $1 4 , 7 9 6 , 6 2 9 6. 3 8 % $1 . 7 8 2 . 3 3 $1 4 . 7 9 6 . 6 2 9 1 3 . 7 0 % Co t r c t 1 40 $6 , 3 3 , 7 3 9 $5 , 9 0 7 , 2 8 4 $7 2 . 2 3 8 , 0 2 3 8. 9 1 % $5 , 9 5 , 2 1 1 $7 8 , 1 9 4 . 2 3 4 8. 2 5 % $1 1 , 8 6 , 4 9 $7 8 , 1 9 4 , 2 3 4 1 7 . 8 9 % Co n t r 2 40 1 $4 , 8 9 , 9 5 $4 5 7 9 $5 . 3 2 6 5 3 8. 9 1 % $4 9 1 8 6 $5 . 7 6 5 7 1 9 8. 2 5 % $8 7 4 7 6 5 $5 7 6 5 7 1 9 1 7 . 8 9 % , St o f I d a h o To t a $2 1 7 , 4 4 . 1 7 2 $1 7 , 0 0 , 0 0 $ 2 3 4 , 4 4 , 1 7 2 7. 8 2 % $1 7 , 0 0 , 0 0 $ 2 5 1 . 4 4 . 1 7 2 7. 2 5 % $3 . 0 0 . 0 0 $ 2 5 1 , 4 4 . 1 7 2 1 5 . 6 4 % AG A R e v e n u e $7 5 1 , 6 1 5 ~ $7 5 1 , 6 1 5 $7 5 1 . 6 1 5 $7 5 1 , 6 1 5 St o f I d a h o + A G A To t l $2 1 8 . 1 9 7 . 7 8 7 ' $2 3 5 , 1 9 7 , 7 8 7 7. 7 9 % $2 5 2 . 1 9 7 , 7 8 7 7. 2 3 % $2 5 2 , 1 9 7 , 7 8 7 1 5 . 5 8 % .. : ; ( l t r .. . ; 0 ~ Ô t " ~ e : ~g . Z 8 : .. - . . .. ~ . . ! ' Z C/ " i 0 ;; ¡ ; ~ : . (J : 4 ( l 0 t1 ' . . .. t r N ~ o . . .. ~ .. N 00 ATTACHMNT 2 Exhibit No. 10 1 Case No. PAC-E-l 1-12 R. Lobb, Staff 11/0211 1 Page 13 of 18 Attelament 2 - Sement Rate RO MONTAI POR . STATE OF IDA CASE NO. PAC-E.11.12 Sement Year 1 Year 2 Prt 1/111012 I/il1013 SCHEDULE NO.1 - Residentil ServieeCuer Che 55.00 55.00 55.00 All kWh (May. Oc) ~=7ookWh 9.6018 ø 10.2013 ~10.7874 ~ ~7ookWh 12.9624 ~13.7717 ø 14.5630 ~ All kWh (Nov. Apr) G: 1,000 kWh 7.3496 ~7.8085 ~8.2571 ~ ~ 1,00 kWh 9.9220 ~10.5415 ~1 1.1472 ~ Seasna Sece Chare $6.00 $60.00 $6.00 SCHEDULE NO. 36 - Residentil Servee Opnal TOD Cusmer Che 514.00 514.00 514.00 On.Pea kWh (May. Oc)12.2191 ø 13.3102 ø 14.4027 ø Of.Pea kWh (May. Oc)4.1697 ~4.5420 ø 4.9148 ~ On-Pea kWh (Nov. Apr)10.4377 ø 11.369 ø 12.3029 ~ Of.Pea kWh (Nov. Apr)3.8162 ~4.1570 ;4.4982 ;Seana Sece Cha 5168.00 5168.00 5168.00 SCHEDULE NO. 616A - General Serv - Larg Power Cusmer Chae (Senda Voltae)533.00 535.00 537.00Cuser Cha (P Voltae)599.00 5105.00 $11 1.00 All kW (My - Oc)512.22 513.28 514.36 All kW (Nov. Apr)510.05 510.92 511.81 All kWh 3.3805 ~3.5305 ;3.6696 ~ Se Serce Cha (Seconda)5396.00 $420.00 $4.00Sena Serce Cha (Par)51,188.00 51,260.00 $1,332.00Voltae Diunt (50.57)($0.61)(50.65) SCHEDULE NO.7. Customer Owed Ligt Residential CbPer Lap 16,00 Lumen HPSV 514.67 514.82 514.91 SCHEDULE NO. 7nA - Seuri Ar LigtingCha Per La 700 LumenMV 20,00 Lumens, MV 5,60 Lumen, HPV, Co Ow Pole 5,60 Lumen, HPSV, No Co Owed Pole 9,500 Lumen, HPSV, Co Owed Pole 9,500 Lumen, HPV, No Co Owed Pole 16,000 Lumens, HPV, Co Owed Pole 16,00 Lumen HPSV, No Co Owed Pole 27,500 Lumens HPV, Co Owed Pole 526.40 $47.09 516.77 513.34 519.20 515.77 525.29 522.52 536.37 Page 1 of4 526.67 $47.58 516.94 513.48 519.40 $)5.93 525.55 522.75 536.75 526.83 $47.86 517.04 513.56 519.51 516.02 525.70 $22.88 536.97 Exhibit No. 101 Case No. PAC-E-II-12 R. Lobb, Staff 11/02/11 Page 14 of 18 Attchment 2 - Sement Rate ROCKY MOUNAIN PO - STATE OF IDAHO CAS NO. PAC-E.11-12 27,500 Luens, HPSV, No Co Owed Pole 50,00 Lumen, HPSV, Co Owed Pole 50,00 Luens HPV, No Co Owed Pole 16,00 Lumen HPS Floo Co Ow Pole 16,00 Lumen, HP Floo No Co Ow Pole 27,500 Lum HP Floo Co Ow Pole 27,500 Lumen, HPS Floo No Co Ow Pole 50,000 Lumen HPS Floo Co Owned Pole 50,000 Luens HPS Floo, No Co Owed Pole 8,000 Lumen, LPSV, Ener Only 13,500 Lumen LPSV, Energ Ony 22,500 Lumens LPSV, Ener Only 33,00 Lumns LPSV, Energ Ony SCHEDULE NO.9 - General Serviee - Hig Voltge Customer Char All kW (My - Oc) All kW (Nov - Apr) Minum kW Sumer MiumkW Winte All kWh SCHEDULE NO. 10 - Irritin Small Cutomer Ch (Sean) La Cuser Ch (Sean)Pos-8ean Cuer Cha All kW (Jun 1 - Sept 15) Fir 25,00 kWh (June 1 . Sep 15) Next 225,00 kWh (June i - Sept 15) Al Add' kWh (June 1 - Se 15) All kWh (Sept 16 - May 31) Presnt $32.94 $50.84 $45.00 $25.29 $22.52 536.37 532.94 550.84 $45.00 53.60 $5.32 57.40 59.01 5324.00 58.48 $6.41 58.48 $6.41 3.500 ~ $12.00 535.00 519.00 $4.69 7.3477 ~ 5.4349 ~ 4.01 16 ~ 6.2144 ~ SCDULE NO. I I - Company-Qned St Ligting Servic Cha pe Lap 5,SOO Lumen High Intensity Discha 9,500 Lumen High Intenity Discha 16,00 Lumen High Inteity Disc 27,500 Lumens, High Inteity Discha 50,000 Lumen, High Intensity Discha 9,500 Lumen, High Intensity Discha - Seres 1 16,00 Lumens, High Inteity Dischae - Seres 1 9,500 Lumen, High Inteity Discha - Seres 2 16,00 Lumens, High Innsity Dishage -Series 2 12,000 Met Haide 514.89 51S.58 525.33 535.38 551.93 530.73 $33.73 525.29 528.21 $27.42 Page 2 of4 Year I 1/11.12 $33.28 551.37 $45.47 $25.55 522.75 536.75 $33.28 $51.37 $45.47 $3.64 $5.38 $7.48 $9.10 Settlement Year 2 1/112013 533.48 551.67 $45.74 525.70 522.88 536.97 $33.48 551.67 $45.74 53.66 55.41 57.52 59.15 $347.00 59.35 $7.06 $9.35 57.06 3.6970 ~ 513.00 $38.00 $21.00 55.31 7.9434 ~ 5.8755 ~ 4.3368 ~ 6.7187 t $15.05 518.78 525.60 535.75 552.48 $31.06 534.09 525.56 528.51 527.71 5370.00 $10.26 57.74 510.26 57.74 3.8835 ~ $14.00 $41.00 523.00 $5.98 8.5312 t 6.3103 ~ 4.6577 ~ 7.2164 t 515.14 518.89 525.75 $35.96 552.79 531.25 534.29 525.71 528.68 527.88 Exhibit No. 101 Case No. PAC-E. 1 1.12 R. Lobb, Staff 11/02/1 1 Page 15 of 18 Attehment 2 . Seement Rate ROKY MOUNTAIN PO. STATE OF IDAH CASE NO. PAC-E.11-2 19,500 Met Halde 32,00 Met Haide 9,000 Met Haide - Seres 1 12,00 Mel Hade - Seres 1 9,000 Met Halde - Seres 2 12,00 Met Haide - Seres 2 Prnt 534.03 $41.28 531.00 535.64 530.17 531.85 SCHEDULE NO. iiE. Cusomer- Str Ligtiag ServEnerg Only Chaes pe Lap 33,00 Lwnen LPSV 12,00 Met Halde 19,500 Met Halde 32,000 Metl Halide 107,800 Meta Haide 9,00 Met Haide 5,800 Lumen, HPSV 9,500 Lumen, HPSV 16,00 Lum, HPV 27,500 Lwnen, HPV 50,00 Lwnen, HPV Non-List Lumre - Energ On $9.01 $6.94 59.49 $14.92 535.72 53.95 52.79 $3.91 55.81 $9.93 $15.27 10.1259 t Year i 1/111012 $34.39 $41.72 531.33 $36.02 $30.49 532.19 Sement Year 2 1/111013 $34.60 $41.97 $31.52 $36.24 530.67 532.38 $9.1 1 $7.01 59.59 515.08 $36.10 $3.99 52.82 $3.95 55.87 510.04 $15.43 10.2330 ~ SCDULE NO. UF. Custoer-Oned Str Ligti SeicFuD Maintenance Ches pe Lamp 5,800 Lwnen HPSV 9,500 Lwnen HPSV 16,00 Lwnen HPSV 27,500 Lum, HPSV 50,00 Lwnen HPSV $6.45 $8.22 59.88 512.94 517.27 $6.52 $8.31 $9.98 $13.08 517.45 SCDULE NO. UP. Customer-Oned Str Litig ServicPartl Maintenance Chas per Lap 10,00 Lwnens, MY 20,00 Lumen, MY 5,800 Lwnens HPV 9,500 Lwnen HPV 27,500 Lumen HPSV 50,00 Lumens, HPSV 516.15 521.62 $5.78 57.44 511.94 $16.09 SCHEDUL NO. 19 - Commereial and Industrl Space HeatigCusmer Cha Senda 521.00All kWh (My - Oc) 8.2953 tAll kWh (Nov - Apr) 6.1465 t Page3of4 $16.32 521.85 $5.84 $7.52 $12.07 $16.26 $22.00 8.8093 t 6.5274 t 59.16 $7.05 $9.65 $15.17 536.32 $4.01 52.84 $3.97 $5.91 510.10 515.52 10.294 ~ $6.56 $8.36 $10.04 $13.16 $17.55 $16.42 521.98 $5.88 57.57 $12.14 516.36 $23.00 9.3152 t 6.9023 ø Exhibit-No. í Ö i Case No, PAC-E-ll-12 R. Lobb, Staff 11/02/11 Page 16 of 18 Attchment i - Sement Rate ROCKY MOUNTAIN POR. STATE OF IDAH CAS NO. PAC-E.11.12 Prnt SCHEDULE NO. 23IiA - General Servie Cumer Ch Secnd Cusomer Cha Pr Tota Cumer Cha All kWh (May. Oc) All kWh (Nov. Apr) Seasna Sece Cha (Secnda) Sena Servce Ch (Par) Volta Discun SI4.00 $43.00 8.0585 ~ 7.0345 ~ $168.00 $516.00 (0.3892) ; SCHEDULE NO. 3S - General Servic - Optinal roD Cusmer Chae Senda Cusmer Cha Prar All OnPeak kW Al kWh Seana Servce Chae (Secnd) Senal Servce Cha (Pma) Volta Diwit $59.00 S145.oo S14.52 4.3260 ~ S708.00 SI,740.oo ($0.74) Sement Year 1 Year 2 i/lnOl2 InnOl3 SI5.00 $46.00 8.5835 ; 7.4928 ; S180.oo S552.oo (0.4146) ; $63.00 S155.00 $15.49 4.6154 ; S756.OO SI,86O.oo (SO.79) SI6.00 $49.00 9.1030 ; 7.9463 ; SI92.00 S588.00 (0.4397) ø S67.00 SI65.00 S16.45 4.9015 ø $804.00 $1,980.00 ($0.84) SCHEDULE 400 Firm Eoerg and Power Cusmer Chaes SI,345.00 SI,465.00 $1,586.00 kWh 2.6180 ~2.8515 ~3.0870 ; kW $13.50 $14.70 S15.91 ExcesskVar $0.82 $0.89 $0.96Interruptible Energ and Power kWh 2.6180 ;2.8515 ;3.0870 t kW $13.50 S14.70 $15.91 SCHEDULE 401 Cuomer Chges S375.00 $48.00 $42.00 HL kWh (May-obe)3.0820 ;3.3565 ;3.6332 t HLH kWh (Noveibe-Apnl)2.5630 ;2.7913 ;3.0214 ; LLH kWh (May-obe)2.3110 ;2.5168 fl 2.7243 t LLH kWh (Noyeibe-Apnl)2.3110 t 2.5168 fl 2.7243 flAllkW (May-uobe)S14.93 $16.26 S17.6OAll kW (November-Apnl)S12.04 $13.11 $14.19 Page4of4 Exhibit No. iol Case No. PAC-E-I 1-12 R. Lobb, Staff 11/02/1 I Page 17 of 18 CERTICATE OF SERVICE I herby cefY th on this 17dl da of Ocbe, 2011, I cad to be se vi oveght deliver an E- maiL, a tre and corr copy of Rocky Mounta Powe's Stipulaton in PAC-E-I 1.12 to the followig: Erc L. Olsen Raine, Olson, Nye, Bude & Baey, Ch 20 i E. cete P.O. Box 1391 Pocllo, ID 83204-1391 E-Mail: elomcinelaw.net Tim Buler (E-mai Ony) Agr InC.lNu-West Industres 3010 CodaRoad So Spr ID 83276 E-Mal: tbuller(gagrum.com Bra Pu CAPAI 2019N.17thSt. Bois, ID. 83702 E-mail: bmpurdy(ghotmaiLcom Anthony Yan) 29814 Lae Roa Bay ViUae, Ohio 44140 E-mail: tonyfOanel.net James R. Smith (Emai Ony) Monsto Compay P.O. Box 816 Sod Spr Idao 83276 E-Ma: jim.r.smith(gmonso.com Ron L. Wil Willam Bramy, P.C. 1015 W.Hays St. Boise ID, 83702 E-ma: ron(gwilliabrabur.com Dael E. Solaner Pacifor db Roc Mouta Powe 201 S. Mai St Su 2300 Salt La Cit, UT 84111 E-mail: DaneLsolander(gacificor.com Rada C. Bude Rain, OLSO Nye, Budge & Baiey, Ch 201 E. ce P.O. Box 1391 PocUo, ID 83204-1391 E-Mal: rçb(gineJaw.net Neil Prce De Attrn Gener Idao Public Uties Commsion 472 W. Wasn (83702) POBox 83720 Bois, ID 83720-74 E-Ma: neil.pric~puc.dao.gov Bejam J. Ot Idao Constion Lee 710 N. 6th St. P.O. Box 84 Boise, Idao 83702 E-ma: botto(gidaQÇnservation.org Brubaer & Asia 16690 Swiey Ridge Rei, # 140 Cheseld, MO 63017 E-Mail: bclJnsßYconultbai.com Don Schoebeck RCS, Inc. 900 Wasgtn St, Suite 780 Vanuver W A, 986 E-Ma: dwsßYr-e-s-in.com Ted Wesn PaCorp db Roky Mounta Power 201 S. Ma Str Sui 2300 Sat Lae Cit, UT 84 111 E-ma: te.wesnßYcificorp.com Care Meyer Coin, Reguato Opons Exhibit No. i 0 i Case No. PAC-E-1 1-12 R. Lobb, Staff i 1/02/1 i Page 18 of 18 PAC-E-l1-12 Monthly Biling Comparison Idaho Public Utilties Commission General Rate Case Residential Service Schedule 1 First Year Stipulated Increasel Energ~Energy Summer Non-Summer Avg. Mth Cost -12 Mths kWh kWh1 Present First Yr.%A Present First Yr.%A Present First Yr.%A 0 $5.17 $5.17 0.00%$5.17 $5.17 0.00%$5.17 $5.17 0.00% 100 $15.69 $16.31 3.95%$13.36 $13,83 3.55%$14.52 $15.07 3.79% 200 $26.20 $27.44 4.73%$21.5 $22.49 4.40%$23.87 $24.97 4.61% 300 $36.72 $38.58 5.06%$29.73 $31.16 4.79%$33.23 $34.87 4.94% 400 $47.24 $49.72 5.25%$37.92 $39.82 5,01%$42.58 $44.77 5.14% 500 $57.75 $60.85 5.37%$46.11 $48.48 5.15%$51.93 $54.67 5,28% 600 $68.27 $7199 5.45%$54.30 $57.14 5.24%$61.28 $64,57 5.37% 700 $78.79 $83.13 5.51%$62.48 $65.81 5.32%$70.64 $74.47 5.42% 716 Summer $81.02 $85.50 5.52%$64.22 $67.64 5.33%$72.62 $76.57 5.44% 800 $92.78 $97.95 5.58%$73.33 $7729 5.40%$83.06 $87.62 5.49% 837 Annual $97.95 $103.44 5.60%$7735 $81.5 5.43%$87.65 $92.49 5.52% 900 $106.77 $112.78 5.63%$84.18 $88.78 5.47%$95.47 $100.78 5.56% 958 Non-Summer $114.88 $121.8 5.66%$90.47 $95.45 5.50%$102.68 $108.41 5.58% 1,000 $120.76 $127.61 5.67%$95.03 $100.27 5.52%$107.89 $113.94 5.61% 1,200 $148.74 $157.27 5.73%$116.72 $123.25 5.59%$132.73 $140.26 5.67% 1,400 $176.73 $186.92 5.77%$138.42 $146.22 5.64%$157.57 $166.57 5.71% 1,600 $204.71 $216.58 5.80%$160.11 $169.20 5.68%$182.41 $192.89 5.75% 1,800 $232.69 $246.24 5.82%$181.81 $192.18 5.70%$207.25 $219.21 5,77% 2,000 $260.68 $275.89 5.84%$203.50 $215.15 5.72%$232.09 $245.52 5.79% 2,500 $330.63 $350.03 5.87%$257.74 $27259 5.76%$294.19 $311.1 5.82% 3,000 $400.59 $424.18 5.89%$311.98 $330.04 5.79%$356.29 $377 i I 5.84% 5,000 $680.42 $720.74 5.93%$528.94 $559.80 5.84%$604.68 $640.27 5.89% Second Year Stipulated Increasel Energy Energy Summer Non-Summer Avg Mth Cost -12 Mths kWh kWh1 First Yr.Second Yr.%A First Yr.Second Yr.%A First Yr.Second Yr.%A 0 $5.17 $5.17 0.00%$5.17 $5.17 0.00%$5.17 $5.17 0.00% 100 $16.31 $16.91 3.72%$13.83 $14.30 3.35%$15.07 $15.60 3.52% 200 $27.44 $28.66 4.42%$22.49 $23.42 4.12%$24.97 $26.04 4.29% 300 $38.58 $40.40 4.71%$31.6 $32.55 4.47%$34.87 $36.47 4.59% 400 $49.72 $52.14 4.88%$39.82 $41.67 4.66%$44.77 $46.91 4.78% 500 $60.85 $63.88 4.98%$48.48 $50.80 4.78%$54.67 $57.34 4.88% 600 $7199 $75.63 5.05%$57.14 $59.93 4.87%$64.57 $67.78 4.97% 700 $83.13 $87.37 5.10%$65.81 $69.05 4.93%$74.47 $78.21 5.02% 716 Summer $85.50 $89.87 5.11%$67.64 $70.99 4.95%$76.57 $80.43 5.04% 800 $97.95 $103.01 5.17%$7729 $81.7 5.01%$87.62 $92.09 5.10% 837 Annual $103.4 $108.80 5.18%$81.5 $85.65 5.03%$92.49 $97.23 5.12% 900 $112.78 $118.66 5.21%$88.78 $93.28 5.07%$100.78 $105.97 5.15% 958 Non-Summer $121.8 $127.74 5.23%$95.45 $100.3 I 5.09%$108.41 $114.02 5.17% 1,000 $127.61 $134.3 I 5.25%$100.27 $105.0 5.11%$11394 $119.85 5.19% 1,200 $157.27 $165.60 5.30%$123.25 $129.63 5.18%$140.26 $147.61 5.24% 1,400 $186.92 $196.89 5.33%$146.22 $153.86 5.22%$166.57 $175.37 5.28% 1,600 $216.58 $228.19 5.36%$169.20 $178.08 5.25%$192,89 $203.14 5.31% 1,800 $246.24 $259.48 5.38%$192.18 $202.31 5.27%$219.21 $230.90 5.33% 2,000 $275.89 $290.77 5.39%$215.15 $226.54 5.29%$245.52 $258.66 5.35% 2,500 $350.03 $369.00 5.42%$272.59 $287.12 5.33%$311.1 $328.06 5.38% 3,000 $424.18 $447.24 5.44%$330.04 $347.69 5.35%$377 11 $397.46 5.40% 5,000 $720.74 $760.17 5.47%$559.80 $589.98 5.39%$640.27 $675.07 5.44% 1 Includes current Schedule 34-BP A Credit which equals zero, ECAM and Customer Effciency Services Rate Adjustment. 2 Monthly average usage for summer, non-summer and annuaL. Exhibit No. 102 Case No. PAC-E-11-12 R. Lobb, Staff 11/02/11 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 2ND DAY OF NOVEMBER 2011, SERVED THE FOREGOING DIRECT TESTIMONY OF RANDY LOBB IN SUPPORT OF THE STIPULATION AND SETTLEMENT, IN CASE NO. PAC-E-ll-12, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: TED WESTON ID REGULATORY AFFAIRS MGR ROCKY MOUNTAIN POWER 201 S MAIN ST STE 2300 SALT LAKE CITY UT 84111 E-MAIL: ted.weston(fpacificorp.com E-MAIL ONLY: DATA REQUEST RESPONSE CENTER datarequest(fpacificorp.com BRUBAKER & ASSOCIATES 16690 SWINGLEY RIDGE RD #140 CHESTERFIELD MO 63017 E-MAIL: bcollns(fconsultbai.com ERICLOLSEN RACINE OLSON NYE ET AL PO BOX 1391 POCATELLO ID 83204-1391 E-MAIL: elo(fracinelaw.net BRAD M PURDY ATTORNEY AT LAW 2019 N 17TH STREET BOISE ID 83702 E-MAIL: bmpurdy(fhotmaiL.com RONALD L WILLIAMS WILLIAMS BRADBURY PC 1015 W HAYS STREET BOISE ID 83702 E-MAIL: ron(fwillamsbradbury.com DANIEL E SOLANDER REGULATORY COUNSEL ROCKY MOUNTAIN POWER 201 S MAIN ST STE 2300 SALT LAKE CITY UT 84 I I I E-MAIL: danieL.solander(fpacificorp.com RANDALL C BUDGE RACINE OLSON NYE ET AL PO BOX 1391 POCATELLO ID 83204-1391 E-MAIL: rcb(fracinelaw.net E-MAIL ONLY: JAMES R SMITH MONSANTO COMPANY E-MAIL: jim.r.smith(fmonsanto.com ANTHONY Y ANKEL 29814 LAK ROAD BAY VILLAGE OH 44140 E-MAIL: tony(fyanel.net BENJAMIN J OTTO ID CONSERVATION LEAGUE 710 N 6TH STREET BOISE ID 83702 E-MAIL: botto(fidahoconservation.org DON SCHOENBECK RCS INC 900 WASHINGTON STREET STE 780 VANCOUVER WA 98660 E-MAIL: dws(fr-c-s-inc.com CERTIFICATE OF SERVICE E-MAIL: ONLY TIM BULLER PACIFICORP IDAHO INDUSTRIAL CUSTOMERS AGRIUM US INC/NU- WEST INDUSTRIES E-MAIL: tbuller(fagrium.com Jiø/kSECRETA~ ~ CERTIFICATE OF SERVICE