20130201Steward Direct.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF ROCKY
MOUNTAIN POWER FOR
AUTHORITY TO INCREASE RATES
BY $2.2 MILLION TO RECOVER
DEFERRED NET POWER COSTS
THROUGH THE ENERGY COST
ADJUSTMENT MECHANISM
)
) CASE NO. PAC-E-13-03
)
) Direct Testimony of Joelle R. Steward
)
)
)
)
ROCKY MOUNTAIN POWER
CASE NO. PAC-E-13-03
February 2013
I Q. Please state your name, business address and present position with PacifiCorp,
2 dba Rocky Mountain Power ("the Company").
3 A. My name is Joelle R. Steward. My business address is 825 NE Multnomah Street,
4 Suite 2000, Portland, Oregon, 97232. My present position is Director of Pricing, Cost
5 of Service, and Regulatory Operations in the Regulation Department.
6 Qualifications
7 Q. Briefly describe your education and business experience.
8 A. I have a B.A. degree in Political Science from the University of Oregon and an M.A.
9 in Public Affairs from the Hubert Humphrey Institute of Public Policy at the
10 University of Minnesota. Between 1999 and March 2007, I was employed as a
11 Regulatory Analyst with the Washington Utilities and Transportation Commission. I
12 joined the Company in March 2007 as Regulatory Manager, responsible for all
13 regulatory filings and proceedings in Oregon. I assumed my current position in
14 February 2012.
15 Q. Have you appeared as a witness in previous regulatory proceedings?
16 A. Yes. I have testified in regulatory proceedings in Idaho, Oregon and Washington.
17 Q. What is the purpose of your testimony in this proceeding?
18 A. I support the Company's proposed rates in this case.
19 Background
20 Q. What level of revenues is Schedule 94, Energy Cost Adjustment, currently
21 designed to collect?
22 A. Schedule 94 is designed to collect approximately $13.0 million---$2.4 million for
Steward, Di - 1
Rocky Mountain Power

I Tariff Contract 400, $0.2 million for Tariff Contract 401, and $10.4 million for the

2 standard tariff customers—based on Idaho loads from Case No. PAC-E- 11-07.
3 Proposed Rate Change for Schedule 94

4 Q. Please describe Rocky Mountain Power's proposed rate change in this case.

5 A. In this 2013 ECAM filing, the Company proposes no change to its current ECAM

6 surcharge collection rates for standard tariff customers. For Tariff Contracts 400 and

7 401, the Company proposes to increase the tariff surcharge rates in Tariff Schedule 94

8 with a collection rate of approximately $4.5 million and $0.3 million, respectively, on

9 an annual basis from April 1, 2013 to March 31, 2014.

10 Q. Why is the Company proposing no change to the ECAM collection rates for

11 standard tariff customers?

12 A. The Company projects that the current collection surcharge for standard tariff

13 customers designed to collect approximately $10.4 million is adequate to collect all

14 and maybe slightly more than the ECAM balance as of November 30, 2012, adjusted

15 for anticipated collections through March 31, 2013, for these customers. This is

16 consistent with the Company's 2012 ECAM Application, Case No. PAC-E-12-03,

17 where no rate change was proposed for the standard tariff customers with the

18 expectation that this would avoid a 2013 rate change. The current balance for the

19 standard tariff customers is in line with the 2012 projections; therefore, the Company

20 proposes to make no change to the collection rates for these customers. Any balance

21 as a result of these rates will be carried forward to the 2014 ECAM filing.

22 Q. Please explain the proposed rate change for Tariff Contracts 400 and 401.

23 A. The proposed rate change for Tariff Contracts 400 and 401 covers the amortization
Steward, Di - 2
Rocky Mountain Power

I for two ECAM deferral periods. The first is related to the 2011 ECAM deferral for

2 the period of December 1, 2010 through November 30, 2011. As agreed to by parties

3 in the stipulation in the Company's 2011 general rate case, approved by Commission

4 Order No. 32432, the 2011 ECAM deferral is being amortized over three years. This

5 filing includes the second year of amortization for that deferral—$2.4 million for

6 Tariff Contract 400 and $0.2 million for Tariff Contract 401.

7 The second is for the ECAM deferral period of December 1, 2011 through

8 November 30, 2012. As supported in Mr. Brian S. Dickman's testimony, Tariff

9 Contract 400 is responsible for $6.3 million and Tariff Contract 401 is responsible for

10 $0.5 million. Commission Order No. 32432 also approved amortization of the 2012

11 ECAM deferral amounts over three years. Therefore, this filing includes $2.1 million

12 for Tariff Contract 400 and $0.1 million for Tariff Contract 401, which is one-third of

13 the applicable 2012 ECAM deferral amounts.

14 The combined amortization of the two ECAM deferral periods for Tariff

15 Contracts 400 and 401 equal approximately $4.5 million for Tariff Contract 400 and

16 $0.3 million for Tariff Contract 401 on an annual basis. Schedule 94 surcharge rates

17 have been designed to collect these annual amounts from these customers. The

18 Company will track the recovery of the two different deferral period amounts by

19 proportioning the collections consistent with each contract customers' annual

20 amortization balance. For example, Tariff Contract 400's 2011 ECAM deferral

21 amortization amount is 52.7 percent of the total collection target of $4.5 million, so

22 52.7 percent of the collections from Schedule 94 from April 1, 2013 to March 31,

23 2014, will be applied against the 2011 ECAM deferral balance.
Steward, Di - 3
Rocky Mountain Power

I Q. What is the impact from the above ECAM rate change proposals?

2 A. As summarized in Exhibit No. 2, these rate change proposals result in a 2.6 percent

3 increase for Tariff Contract 400 and 2.4 percent increase for Tariff Contract 401. As

4 indicated above, the Company proposes no changes for the standard tariff customers.
5 Proposed Rates for Schedule 94

6 Q. How were the proposed Schedule 94 rates developed for Tariff Contract 400 and

7 Tariff Contract 401?

8 A. The proposed rates for these two customers were developed by dividing their total

9 collection targets identified above by their kWh consumption at the transmission

10 voltage level. As a result, the Company proposes a Schedule 94 rate of 0.324 cents per

11 kWh for Tariff Contract 400, and 0.301 cents per kWh for Tariff Contract 401.

12 Q. Please describe Exhibit No. 2.

13 A. Exhibit No. 2 illustrates the metered loads, the line loss adjusted loads, the allocation

14 of the ECAM price change, and the percentage change by rate schedule based on the

15 second year present revenues ordered in the Company's 2011 general rate case (Case

16 No. PAC-E-11-07).

17 Q. Please describe Exhibit No. 3.

18 A. Exhibit No. 3 contains clean and legislative copies of the proposed Electric Service

19 Schedule No. 94, Energy Cost Adjustment, designed to collect approximately $15.2

20 million of the ECAM deferred balance. Again, the only revisions to Schedule 94

21 surcharge proposed in this case are the proposed new rates for Tariff Contracts 400

22 and 401 discussed above. Rates for the standard tariff customers are unchanged.
Steward, Di - 4
Rocky Mountain Power
Consistent with the ECAM mechanism, the Company proposes that these rate changes
2 become effective on April 1, 2013.
3 Q. Does this conclude your direct testimony?
4 A. Yes.
Steward, Di - 5
Rocky Mountain Power
Case No. PAC-E-13-03
Exhibit No. 2
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2013
EXHIBIT 2
ESTIMATED IMPACT OF PROPOSED ECAM ADJUSTMENT
FROM ELECTRIC SALES TO ULTIMATE CONSUMERS
DISTRIBUTED BY RATE SCHEDULES IN IDAHO
HISTORIC 12 MONTHS ENDED DECEMBER 2010

Present At Meter At ECAM Proposal Present
Line Average Rev MWh by Voltage Generation Rev Rate 01kWh2 ECAM Rev Net Change
No. Description Sch. Cust MWH ($000) S P T MWh' ($000) S P T ($000) ($000) %
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
Residential Sales
1 Residential Service 1 42,207 424,153 $46,306 424,153 467,196 $2,413 0.569 0.550 0.535 $2,413 $0 0.0%
2 Residential Optional TOD 36 14,902 285,516 $26,124 285,516 314,490 $1,625 0.569 0.550 0.535 $1,625 $0 0.0%
3 AGA Revenue $3
4 Total Residential 57,109 709,669 $72,433 709,669 0 0 781,686 $4,038 $4,038 $0 0.0%
5 Commercial & Industrial
6 General Service - Large Power 6 1,055 270,876 $21,003 225,143 45,732 296,685 $1,533 0.569 0.550 0.535 $1,533 $0 0.0%
7 General Svc. - Lg. Power (R&F) 6A 235 32,618 $2,795 32,618 35,929 $186 0.569 0.550 0.535 $186 $0 0.0%
8 Subtotal-Schedule 6 1,289 303,494 $23,798 257,762 45,732 0 332,613 $1,718 $1,718 $0 0.0%
9 General Service - High Voltage 9 12 112,052 $6,713 112,052 116,092 $599 0.569 0.550 0.535 $599 $0 0.0%
10 Irrigation 10 4,845 555,304 $48,512 555,304 611,656 $3,160 0.569 0.550 0.535 $3,160 $0 0.0% 11 Comm. & Ind. Space Heating 19 127 6,225 $512 6,225 6,856 $35 0.569 0.550 0.535 $35 $0 0.0%
12 General Service 23 6,681 133,757 $12,795 132,608 1,149 147,288 $761 0.569 0.550 0.535 $761 $0 0.0%
13 General Service (R&F) 23A 1,586 19,973 $2,001 19,973 22,000 $114 0.569 0.550 0.535 $114 $0 0.0%
14 Subtotal-Schedule 23 8,267 153,730 $14,797 152,581 1,149 0 169,288 $875 $875 $0 0.0%
15 General Service Optional TOD 35 3 1,639 $117 1,639 1,806 $9 0.569 0.550 0.535 $9 $0 0.0%
16 Contract i 400 1 1,378,699 $78,194 1,378,699 1,428,401 $4,471 0.324 $2,413 $2,058 2.6%
17 Contract 2' 401 1 104,412 $5,765 104,412 108,176 $314 0.301 $171 $143 2.4%
18 AGA Revenue $749
19 Total Commercial & Industrial 14,546 2,615,555 $179,157 973,510 46,881 1,595,163 2,774,888 $11,182 $8,981 $2,201 1.2%
20 Public Street Lighting
21 Security Area Lighting 7 200 251 $95 251 276 $1 0.569 0.550 0.535 $1 $0 0.0%
22 Security Area Lighting (R&F) 7A 151 118 $48 118 130 $1 0.569 0.550 0.535 $1 $0 0.0%
23 Street Lighting - Company 11 29 99 $44 99 109 $1 0.569 0.550 0.535 $1 $0 0.0%
24 Street Lighting - Customer 12 313 2,366 $421 2,366 2,606 $13 0.569 0.550 0.535 $13 $0 0.0%
25 AGA Revenue $0
26 Total Public Street Lighting 694 2,833 $608 2,833 0 0 3,120 $16 $16 $0 0.0%
27 Total Sales to Ultimate Customers 72,348 3,328,057 $252,198 1,686,012 46,881 1,595,163 3,559,694 $15,236 $13,035 $2,201 0.8%
29 'Equal to MWh sales by voltage times the corresponding loss factors in this line: 1.10148 1.06475 1.03605 $10,451 <Tariff Cust Present m 30 2 Total Proposed ECAM Revenue ($000) and Rate by Voltage (cents/kWh): 0.569 0.550 0.535 0.517 $4,471 <Sch 400 0.175 <Sch 400
31 'Equal to MWh sales by voltage times the corresponding present rate in this line: 0.569 0.550 0.535 $314 <Sch4Ol 0.164 <Sch4Ol c 32 4 Rates designed to amortize the ECAM Deferral Balances for Schedules 400 and 401 over three years. Z
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Case No. PAC-E-13-03
Exhibit No. 3
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2013
Rocky Mountain Power
Exhibit No. 3 Page 1 of 2
ROCKY MOUNTAIN Case No. PAC-E-13-03
I POWER

Witness: Joelle R. Steward
A DIVISION OF PAcIFIOP
Third Revision of Sheet No. 94.1
I.P.U.C. No. 1 Cancelling Second Revision of Sheet No. 94.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO. 94
STATE OF IDAHO
Energy Cost Adjustment
AVAILABILITY At any point on the Company's interconnected system
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the Company's electric service schedules.
ENERGY COST ADJUSTMENT: The Energy Cost Adjustment is calculated to collect the
accumulated difference between total Company Base Net Power Cost and total Company Actual Net Power
Cost calculated on a cents per kWh basis.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer's applicable
schedule, all monthly bills shall have applied the following cents per kilowatt-hour rate by delivery voltage.
Delivery Voltage
Secondary Primary Transmission
Schedule 1 0.569Ø per kWh
Schedule 6 0.5690 per kWh 0.5500 per kWh
Schedule 6A 0.5690 per kWh 0.5500 per kWh
Schedule 7 0.569Ø per kWh
Schedule 7A 0.5690 per kWh
Schedule 9 0.53SO per kWh
Schedule 10 0.5690 per kWh
Schedule 11 0.5690 per kWh
Schedule 12 0.5690 per kWh
Schedule 19 0.5690 per kWh
Schedule 23 0.569O per kWh 0.5500 per kWh
Schedule 23A 0.5690 per kWh 0.5500 per kWh
Schedule 24 0.569O per kWh 0.5SOØ per kWh
Schedule 35 0.5690 per kWh 0.5500 per kWh
Schedule 35A 0.5690 per kWh 0.5500 per kWh
Schedule 36 0.5690 per kWh
Schedule 400 0.3240 per kWh
Schedule 401 0.3OlO per kWh
Submitted Under Case No. PAC-E-13-03
ISSUED: February 1, 2013 EFFECTIVE: April 1, 2013
ROCKY MOUNTAIN
S POWER
A DIVISION OF RCIFICORP
Rocky Mountain Power
Exhibit No. 3 Page 2 of 2
Case No. PAC-E-13-03
Witness: JoeIIe R. Steward
Second-Third Revision of Sheet No. 94.1
I.P.U.C. No. 1 Cancelling First Second Revision of Sheet No. 94.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO. 94
STATE OF IDAHO
Energy Cost Adjustment
AVAILABILITY: At any point on the Company's interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the Company's electric service schedules.
ENERGY COST ADJUSTMENT: The Energy Cost Adjustment is calculated to collect the
accumulated difference between total Company Base Net Power Cost and total Company Actual Net Power
Cost calculated on a cents per kWh basis.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer's applicable
schedule, all monthly bills shall have applied the following cents per kilowatt-hour rate by delivery voltage.
Delivery Voltage
Secondary Primary Transmission
Schedule 1 0.5690 per kWh
Schedule 6 0.5690 per kWh 0.5500 per kWh
Schedule 6A 0.5690 per kWh 0.5500 per kWh
Schedule 7 0.569O per kWh
Schedule 7A 0.5690 per kWh
Schedule 9 0.S3SO per kWh
Schedule 10 0.5690 per kWh
Schedule 11 0.5690 per kWh
Schedule 12 0.5690 per kWh
Schedule 19 0.S69O per kWh
Schedule 23 0.5690 per kWh 0.5500 per kWh
Schedule 23A 0.5690 per kWh 0.5500 per kWh
Schedule 24 O.569Ø per kWh 0.55OØ per kWh
Schedule 35 0.5690 per kWh 0.55OØ per kWh
Schedule 35A 0.5690 per kWh 0.5500 per kWh
Schedule 36 0.5690 per kWh
Schedule 400 0.2.44-0 per kWh
Schedule 401 0.30 14.640 per kWh
I Submitted Under Case No. PAC-E-132-03
I ISSUED: February 1, 201 EFFECTIVE: April 1, 201