20131231final_order_no_32959.pdf

Office of the Secretary
Service Date
December 3 1,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ROCKY MOUNTAIN )
POWER’S TARIFF ADVICE NO.13-01 TO )CASE NO.PAC-E-13-11
ADJUST THE BPA RESIDENTIAL )
EXCHANGE PROGRAM (REP)CREDIT IN )ORDER NO.32959
SCHEDULE 34 )
On August 20,2013,PacifiCorp dba Rocky Mountain Power filed Tariff Advice No.
13-01 to revise its tariff Schedule No.34 (Pacific Northwest Electric Power Planning and
Conservation Act Residential and Farm Kilowatt-Hour Credit (commonly referred to as the
“REP Credit”)).Rocky Mountain proposed that the rate credit be increased from the existing
0.18390 per kilowatt-hour (kWh)to 0.30950 per kWh effective October 1,2013.In Order No.
32901 the Commission partially approved the tariff advice and opened a docket so Staff could
further examine one issue.
THE TARIFF ADVICE
Under the Pacific Northwest Electric Power Planning and Conservation Act,the
Bonneville Power Administration (BPA)passes benefits from the federal Columbia River power
system to qualifying residential and small farm customers of the investor-owned utilities (IOUs)
such as Rocky Mountain Power.16 U.S.C.839c(c).The amount of Residential Exchange
Program (REP)benefits is the difference between an IOU’s average system cost and BPA’s
priority firm (PF)exchange rate.The Company reported that its FY14 and FY15 REP benefits
for Idaho,Oregon and Washington is $34.74 I million per fiscal year.Rocky Mountain proposed
to allocate Idaho customers $3.1 88 million per year.Thus,the existing REP credit for Idaho
customers will increase,thereby providing greater monthly credits to eligible customers.
The one issue left for further examination concerns the “reallocation”of REP benefits
contained in the REP Settlement Agreement approved by the BPA Administrator in late 2010
and by this Commission in April 2011.1 Section 6 of the REP Settlement Agreement contains a
mechanism for reallocating REP benefits among the six investor-owned utilities (IOUs).This
“reallocation”agreed to by the IOUs and the three State Commissions became necessary so the
benefits of settling the various BPA cases are roughly equal among the IOUs.
On October 28,2013,the Ninth Circuit Court of Appeals affirmed the BPA Administrator’s adoption of the REP
Settlement Agreement.Association ofPublic Agency Customers v.BPA,733 F.3d 939 (91h Cir.2013).
ORDER NO.32959 1
Under Section 6 of the REP Settlement Agreement there are two primary reallocation
adjustments.First,the “annual”adjustment is allocated among the five JOUs (excluding
NorthWestern)based on each JOUs share of the “Lookback”adjustments.Table 6.2.2.The
second adjustment relates to NorthWestern Energy.This latter adjustment reallocated funds
from four lOUs (not including Idaho Power)to NorthWestern.
Rocky Mountain calculated its Idaho jurisdictional share of the first reallocation
adjustment is 28.5%,and calculated the second Idaho jurisdictional share of the adjustment paid
to NorthWestern is 12.95%.Staff was concerned about the consistency of the two reallocation
adjustments.Rocky Mountain maintained there was a reasonable basis for the proposed different
treatment.Staff and representatives of Rocky Mountain met on October 10,2013,to further
discuss this issue.
Following that discussion and further analysis by Staff,Staff recommended this
docket be closed and the REP rate credits remain as calculated by Rocky Mountain.Staff
recognizes the reallocations to NorthWestern were unique.At the time of the Settlement
Agreement,NorthWestern had paid its Lookback amounts and had resolved its deemer issues.In
addition,changing Rocky Mountain’s allocation to the Idaho jurisdiction would either require
other jurisdictions to agree to the change or Rocky Mountain would be responsible for funding
the change in jurisdictional allocation.Based upon the unique facts of the settlement agreement,
Staff believes that the difference between its concern and the Company’s proposal is de
minimus.
DISCUSSION
Based upon our review of the tariff advice and Staffs recommendation,we find it is
appropriate to close this docket without further adjustment to Rocky Mountain’s REP credit.
ORDER
IT IS HEREBY ORDERED that this docket be closed with no further adjustment at
this time to the REP credit set out in tariff Schedule No.34.
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues finally
decided by this Order)or in interlocutory Orders previously issued in this Case No.PAC-E-13-
11 may petition for reconsideration within twentyone (21)days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
ORDER NO.32959 2
this case.Within seven (7)days after any person has petitioned for reconsideration,any other
person may cross-petition for reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3/
day of December 2013.
PAUL KJELAND ,PRESIDENT
MACK A.REDFORD,COMMISSIONER
ARSHA H.SMITH,COMMISSIONER
ATTEST:
I
Je’an D.Jewell[j
Cbmmission Secretary
bls/O:PAC-E-13-l ldh2
ORDER NO.32959 3