20130220notice_of_application_order_no_32748.pdf

Office of the Secretary
Serv~ce Date
Fcbruary 20,201 3
BEFOIW THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF PACIFICORP DBA ROCKY MOUNTAIN ) CASE NO. PAC-E-13-03
POWER FOR AUTHORITY TO INCREASE )
RATES THROUGH THE ENERGY COST ) NOTICE OF APPLICATION
ADJUSTMENT MECHANISM (ECAM) 1
) NOTICEOF
) lNTERVENTION DEADLINE
)
) NOTICEOF
) MODIFIED PROCEDURE
)
) ORDERNO. 32748
On February 1, 2013, PacifiCorp dba Rocky Mountain Power ("IMP" or
"Company") submitted its annual Energy Cost Adjustment Mechanism ("ECAM") filing in
accordance with Idaho Code $5 61-502 and 61-503 and Rule of Procedure 52. The Company
requests an effective date of April 1, 201 3, for the proposed increase in Idaho rates.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on September 29, 2009, the Commission
issued Order No. 30904 approving the implementation and submission of an annual ECAM
filing by the Company. The costs included in the ECAM are net power costs ("NPC"), as
defined in the Company's general rate cases and modeled by the Company's GRID model. Base
and actual NPC are booked into specific FERC accounts. The ECAM process allows the
Company to credit or collect the difference between the actual NPC incurred to serve its Idaho
customers and the NPC collected through rates. RMP defers the difference into an ECAM
balancing account.
YOU ARE FURTHER NOTIFIED that the ECAM includes five additional
components: the load growth adjustment rate ("LGAR) or load change adjustment rate
("LCAR"), a credit for SO2 allowance sales, an adjustment for the treatment of coal stripping
costs, a renewable resource adder for the renewable resources that are not yet in rate base and a
true-up of renewable energy credit ("REC") revenues, as authorized by the Commission in Order
No. 32196. The ECAM includes a 90 percent (customers)/10 percent (Company) "sharing band"
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32748 1
wherein customers paylreceive the increase/decrease in actual NPC compared to base NPC and
RMP incursiretains the remaining 10 percent.
YOU ARE FURTHER NOTIFIED that RMP is requesting a Commission Order
approving the recovery of power costs deferred by the Company for the period of December 1,
20 1 1 through November 30,20 12.
YOU ARE FURTHER NOTIFIED that RMP is requesting approval to recover
approximately $15.9 million in deferred net power costs.
YOU ARE FURTHER NOTIFIED that RMP's Application also seeks to revise
Schedule 94, Energy Cost Adjustment, to recover approximately $1 5.2 million in total deferred
net power costs for the collection period beginning April 1, 20 13 through March 3 1, 20 14. RMP
states that this amount represents an increase of approximately $2.2 million over current
Schedule 94 rates, see Order No. 32597 (Case No. PAC-E-12-03), and will apply exclusively to
Monsanto and Agrium. The Company is proposing no increase to the standard tariff customers.
Similarly, RMP requests that the Schedule 94 increase become effective on April 1,2013.
YOU ARE FURTHER NOTIFIED that RMP estimated Monsanto ($6.3 million) and
Agrium's ($.5 million) share in the deferral period. This filing includes the first amortized
payment of those amounts, approximately $2.1 million for Monsanto and approximately $0.1
million for Agrium.
YOU ARE FURTHER NOTIFIED that RMP notes that its base NPC was set at
$1.025 billion and $1.205 billion, respectively. The combined base NPC for the deferral period
is $1 .I76 billion. For the deferral period, the NPC differential for deferral was approximately
$18.4 million before the 90/10 sharing band. Higher summer irrigation usage led to a LCAR
reduction in the deferral balance by approximately $0.7 million before sharing.
YOU ARE FURTHER NOTIFIED that credits for SO2 allowance sales revenues
received by the Company were also included as an offset to the NPC deferral. Additionally,
Idaho's allocated differences between including coal stripping costs incurred by the Company
and recorded on the Company's books pursuant to accounting pronouncement EITF 04-6, and
the amortization of the coal stripping costs when the coal was excavated were added to the NPC
differential for deferral.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32748
YOU ARE FURTHER NOTIFIED that, in addition to the foregoing ECAM
calculation components discussed above, the deferral balance reflects the difference between
actual REC revenues during the deferral period and the amount of REC revenues included in
base rates. The 9011 0 sharing band does not apply to the REC revenue true-up included in the
ECAM.
YOU ARE FURTHER NOTIFIED that the deferred ECAM balance of $25.5 million
as of November 30, 2012, is derived from the following calculation: 90% X (deferred NPC +
LCAR + SO2 revenues + coal stripping costs adjustment) + interest charges + REC revenues.
The sum of the three groups' tariff customers, Monsanto and Agrium, ending balances result in
the ECAM deferral balance of $25.5 million.
YOU ARE FURTHER NOTIFIED that RMP notified customers of this filing by
issuing a press release sent to local media organizations and messages in customer bills over the
course of a billing cycle. Copies of RMP7s Application are available for review at the
Company's local offices in its Idaho service territory.
YOU ARE FURTHER NOTIFIED that RMP has attached a copy of the direct
testimony, including exhibits, of Brian S. Dickman, Manager of Net Power Costs, and Joelle R.
Steward, Director of Pricing, Cost of Service, and Regulatory Operations in the Regulation
Department, in support of its Application. Mr. Dickman's testimony and exhibits describe the
actual NPC incurred by the Company to serve retail load for the historical 12-month period and
explain the main increases between actual NPC and base NPC. Ms. Steward's testimony
supports the new ECAM tariff surcharge rates.
YOU ARE FURTHER NOTIFIED that RMP requested that this matter be processed
through Modified Procedure.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company's
filing in Case No. PAC-E-13-03 and finds that the public interest may not require a formal
hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through
204 of the Idaho Public Utilities Commission's Rules of Procedure, IDAPA 3 1.0 1.0 1.20 1
through .204. The Commission notes that Modified Procedure and written comments have
proven to be an effective means for obtaining public input and participation.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32748
YOU ARE FURTHER NOTIFIED that any person desiring to state a position
concerning RMP's ECAM Application may file a written comment in support or opposition with
the Commission. The comment must contain a statement of reasons supporting the comment.
Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning RMP's ECAM Application shall be filed with the Commission no
later than Tuesday, March 13, 2013. Written comments concerning this filing should be
mailed to the Commission and the Company at the addresses written below:
Commission Secretary Ted Weston
Idaho Public Utilities Commission Idaho Regulatory Affairs Manager
PO Box 83720 Rocky Mountain Power
Boise, ID 83720-0074 201 S. Main, Suite 2300
Salt Lake City, UT 841 11
Street Address for Express Mail: E-mail: ted.westou~~pacificorp.corn
472 W. Washington Street Yvonne R. Hogle
Boise, ID 83702-591 8 Senior Counsel
Rocky Mountain Power
201 S. Main, Suite 2300
Salt Lake City, UT 841 11
E-mail: yvonue.l~[e-mail]
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.~uc.idaho.gov. . Click the "Comments and Questions"
icon and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to Rocky Mountain at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that RMP's ECAM Application can be viewed at
www.puc.ida110.gov by clicking on "File Room" and then "Electric Cases," or it can be viewed
during regular business hours at the Idaho Public Utilities Commission, 472 West Washington
Street, Boise, Idaho and Rocky Mountain Power Headquarters, 201 S. Main, Salt Lake City, UT
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over the Company, its filing and the issues pertaining to this case pursuant to Title 61
of the Idaho Code.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDERNO. 32748
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 3 1.0 1 .01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No.
PAC-E-13-03 for the purpose of becoming a party, i.e., to present evidence, to acquire rights of
cross-examination, to participate in settlement or negotiation conferences, and to make and argue
motions must file a Petition to Intervene with the Commission pursuant to Rules 72 and 73 of the
Commission's Rules of Procedure, IDAPA 31.01.01.072 and .073. Persons desiring to acquire
intervenor rights of participation must file a Petition to Intervene on or before Thursday,
February 28, 2013. Persons desiring intervenor status shall also provide the Commission
Secretary with their electronic mail address to facilitate future communications in this matter.
O R D E R
IT IS HEREBY ORDERED that persons interested in submitting written comments
regarding RMP's ECAM Application should do so no later than March 13,2013.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than February 28,2013.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDERNO. 32748
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20 f'
day of February 20 13.
MACK A. REDFORD, COMMISSIONER
O u t of the Office on t h i s Date
MARSHA H. SMITH, COMMISSIONER
ATTEST:
fommission secretary
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32748