20131107Application.pdf

ROCKY MOUNTAIN
POWER
A TXVISION OF PACIFICORP 201 South Main, Suite 2300
Salt Lake City, Utah 84111
November 7,2013
VA OVERNIGHT DELIVERY
Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
472W. Washington
Boise,ID 83702
Attention: Jean D. Jewell
Commission Secretary
RE: CASE NO. PAC-E-13-15
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR
APPROVAL OF A ONE TIME CUSTOMER CREDIT TO REX'UND OVER
COLLECTION OF SCHEDULE 191 CUSTOMER EFFICIENCY SERYICES RATE
Please find enclosed in the above captioned matter the original and seven (7) copies of Rocky
Mountain Power's Application requesting authorization to provide a one-time customer credit to
customers subject to Electric Service Schedule 191, Customer Efficiency Services rate.
Please contact J. Ted Weston at [phone] if you have any further questions.
"M_'.p e/rlp
Vice President of Regulation & Government Affairs
Rocky Mountain Power
Enclosures
Mark C. Moench, ISB# 8946
Daniel E. Solander,ISB# 8931
Rocky Mountain Power
201 South Main Street, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Email : [e-mail]
daniel. solander@pacifi com.com
Attorneys for RoclE Mountain Power
IN THE MATTER OF THE APPLICATION
OF ROCKY MOI]NTAIN POWER FOR
APPROVAL OF A ONE TIME CUSTOMER
CREDIT TO REFUND OVER COLLECTION
OF SCHEDULE 191 CUSTOMER
EFFICIENCY SERVICES RATE
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. PAC.8.13.15
APPLICATION
COMES NOW, Rocky Mountain Power, a division of PacifiCorp (the "Company"),
and in accordance with RP 052 and RP 201, et. seq., hereby applies to the Idaho Public
Utilities Commission (the'oCommission") for authority to provide a one-time customer credit
of $1.4 million to refund revenues collected through the Commission approved Electric
Service Schedule 191, Customer Efficiency Services Rate. In support of this Application,
Rocky Mountain Power states as follows:
1. Rocky Mountain Power is authorized to do and is doing business in the state
of Idaho. The Company provides retail electric service to approximately 73,500 customers in
the state of Idaho and is subject to the jurisdiction of the Commission. Rocky Mountain
Power is a public utility in the state of Idaho pursuant to Idaho Code $ 6l-129.
APPLICATION OF
ROCKY MOUNTAIN POWER
Page I
2. Communications regarding this Application should be addressed to:
Ted Weston
Daniel E. Solander
201 South Main, Suite 2300
Salt Lake city, utah 84111
Telephone : [phone]
Fax: [phone]
Email: [e-mail]
danie l. so I ander @ p ac i fic orp, so m
In addition, the Company respectfully requests that all data requests regarding this matter be
addressed to one or more of the following:
datarequest@pacifi corp. com
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
3. This Application is filed pursuant to Idaho Code $$ 6l-301, 6l-307,61-622,
and 6l-623. In particular, Idaho Code $ 6l-623 empowers the Commission to determine the
propriety of proposed rate schedules, $$ 61-307 md 6I-622 require Commission approval
prior to any increase in rates, and $ 61-301 requires Idaho retail electric rates to be just and
reasonable.
BACKGROUND
4. The Company has offered a variety of demand side management ("DSM")
programs to its customers since the 1970s. All of the DSM programs offered by Rocky
Mountain Power in Idaho have been designed to be cost-effective. On March 2,2006, the
Commission approved an enhanced set of DSM progftlms and cost recovery through
Schedule 191, Customer Efficiency Services Rate, which was applied to customers' bills
beginning May 1, 2006. The collection rate was set at 1.5 percent to allow the Company to
By e-mail (prefened)
By regular mail
APPLICATION OF
ROCKY MOUNTAIN POWER
Page2
implement an enhanced set of programs designed to measure Idaho customers' willingness to
participate in programs and the Company's ability to deliver them cost-effectively. To
manage collection and program expenses during the initial period, the Company tied
participation to funding availability for business energy efficiency progmms.
5. On February 14, 2008, the Company filed an applicationl with the
Commission requesting authority to increase the Customer Efficiency Services Rate from 1.5
percent to 3.72 percent. The Idaho Public Utilities Commission approved2 the increase to
Schedule l9l effective May 1, 2008. The increase to Schedule l9l provided additional
funding for operating programs and also made it possible for the Company to offer one new
program - Schedule No. 125 - Energy FinAnswer.
6. On February 25,2010, the Company filed an application3 seeking authority to
increase Schedule l9l rate from3.72 percent to 5.85 percent. Commission Order No. 32023
found it reasonable to increase the rate to 4.72 percent.
7 . In the Company's next general rate casea Commission staff proposed that the
dispatchable inigation load control program, Schedule 72A, should be treated as a system
resource rather than a demand side management program and that the costs associated with
delivery of the pro$am should be system allocated rather than direct assigned to Idaho.
Commission Order No. 32196 approved StafPs proposal and reduced the Schedule 191 rate
from4.72 percent to 3.4 percent.
8. On May 30,z}l2,the Company, filed an applications to reduce the collection
I Case No. PAC-E-08-01.
' Order No. 30543.
3 Case No. PAC-E-10-03.
a Case No. PAC-E-10-07.
5 Case No. PAC-E-12-l l.
APPLICATION OF
ROCKY MOUNTAIN POWER
Page 3
rate for Schedule 191 from 3.4 percent to 2.1percent of retail revenue, excluding the tariff
contract customers, and requested a July 1,2012 effective date. It was anticipated that this
would reduce the Customer Efficiency Services annual revenue collection from
approximately $5.7 million to $3.5 million. The Commission approved6 the Company's
application effective August l, 2012.
ONE.TIME CREDIT
9. Attachment 1 to this Application contains a sunmary of projected DSM
revenue collection under Schedule 191 that would occur based or20l2 normalized loads and
the current collection rate of 2.1 percent of revenues. Attachment 2 to this Application is a
sufirmary of Idaho DSM program costs, revenue collection, and the accumulated balance on a
cash and accrual basis. Actual revenues collected from Schedule 191 during 2012 were
$5.245 million compared to projected revenuesT for that period of $4.541 million,
approximately $704,000 higher than projected. The increased revenue collection was
partially offset by $145,000 of actual DSM expenditures above the estimate for the year. The
additional revenues were generated by three main drivers: (1) customer usage was higher
than projected, (2) the effective date of the rate reduction to the rider was August l, 2012
compared to a July l, 2012, projected date, (3) revenue collection from the energy cost
adjustment mechanism (ECAM) was greater than projected which increased the revenue base
of the rider.
10. Attachment 2 provided in Case No. PAC-E-L2-LI forecasted a net over-
collection position, revenues exceeding expenditures, of $393,191 for calendar year 2013
u Order No. 32606.
7 Case No. PAC-E-12-11 Attachment 2 .
APPLICATION OF
ROCKY MOI.INTAIN POWER
Page 4
DSM program. Current projections for 2013, based on nine months actual and three months
estimate, project an over-collection position of $710,200 for the year.
11. The DSM rider's accumulated balance on an accrual basis at December 31,
2013, is projected to be approximately $1.5 million. With no adjustment to the collection rate
or credit to customers the balance by the end of 2014 is projected to increase to $2.2 million.
12. Based on the current Customer Efficiency Services rate of 2.1percent of retail
revenues, excluding special contracts, the Company projects revenues from the DSM rider of
approximately $4.0 million per year. If the revenue projection is correct revenues would
exceed 2014 DSM progam costs but would be slightly below 2015 projected costs.
13. Attachment 2 shows the Company's projected DSM accumulated balance at
December 31,2013, based on an accrual basis, of $1.5 million over-collected position.
Absent any further action this balance is projected to reach approximately $2.3 million by the
end of2014.
14. ln20l2, when the Company filed to reduce the rate for Schedule l9l several
parties filed comments of concern. The Idaho Conservation League ("ICL") pointed out that
the Company's 2011 Integrated Resource Plan ("IRP") included commitments to expand
energy saving efforts that would increase the need for funding and questioned the Company's
representation that a reduced rider would adequately fund anticipated expenditures. ICL was
also concerned with'owhipsawing" customer rates up and down, and urged the Commission
to maintain the current rate. In its written comments, Snake River Alliance ("SRA"; stated it
did not support the Company's request because it was premature and had a potential to
undermine ongoing attempts to expand DSM programs. SRA believed it was premature to
reduce the rate because there was not a record of the Company over-collecting funds for its
APPLICATION OF
ROCKY MOI.INTAIN POWER
Page 5
DSM programs over a period of time. SRA suggested the Company be given additional time
to demonstrate that it will neither modifu nor decrease any of its DSM activities as part of the
Application. SRA also suggested the Company's request may indicate it is not planning
adequately for future DSM-related expenditures. SRA stated the Company has a recent
history with DSM funding levels of increases and decreases, sending mixed signals to
customers as to the value of the programs.
15. In response to ICL and SRA's concerns that the Company may not be
aggressively pursuing DSM programs the Company points to its 2013 IRP. Staff s comments
on the IRP noted:
"Of the 12 portfolios, the highest ranked risk-adjusted PVRR under both Gateway
scenarios was a portfolio that was developed allowing for accelerated Class 2 DSM
ramp rates beyond what the Company assumes is achievable while restricting the
portfolio from using baseload thermal resources to meet capacity deficits."8
16. Not only does the Company set goals to increase DSM savings, it has been
successful in achieving those goals. ln 2012 the goal for Class 2 DSM in Idaho was
8,500,000 kwh. The Company was successful in reaching 10,545,296 kwh, or I24 percent
of the goal. For 2013 the goal is 14,377,000 kwh. Year-to-Date, through September 2013,
the Company has already surpassed 2012 results with reductions of 11,475,890 kwh.
17. In addition to the Class 2 DSM programs the Company continues to deliver
substantial capacity reduction programs targeted to mitigate peak demand. Two of the larger
initiatives are here in Idaho with irrigation customers and Monsanto. While these aren't
funded by Schedule l9l the Company continues to pursue ways to avoid or delay the need
for new resources.
E pAC-g-t3-05, StafPs Comments page 8.
APPLICATION OF
ROCKY MOUNTAIN POWER
Page 6
18. When the Commission issued Order 32606 it directed the Company to
monitor the balance of the DSM rider to assure it does not get too over or under collected.
"The Commission does not find it prudent, to allow Rocky Mountain to collect significantly
more than is necessary for its existing programs to build a reserve for future energy
efficiency programs."
19. Keeping in mind ICL and SRA's concem to avoid "whipsawing" customer's
rates up and down and comply with the Commission's order to monitor the DSM rider's
balance the Company proposes that a one-time credit of approximately $1.4 million be
retumed to customers beginning on February 1,2014.
20. Rocky Mountain Power proposes implementing this one-time credit through a
new Electric Service Schedule 95, Customer Efficiency Services Credit, provided as
Attachment 3. Schedule 95 would be applied to each active retail customer, as of February 1,
2014, that was subject to Schedule 191. The credit would be37 percent of the customer's
Schedule 191 charges incurred over the period of October 1,2012, through September 30,
2013. Because the credit will be calculated and applied to the customer's bill individually, it
will take from one to two months to complete the refund. The Company proposes to apply
the credit to each active customer's account beginning February 1,2014, and to complete the
task no later than March 31,2014.
21. Rocky Mountain Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed under
Modified Procedure, i.e., by written submissions rather than by hearing. RP 201 et seq. If,
however, the Commission determines that a technical hearing is required, the Company
stands ready to prepare and present its testimony in such hearing.
APPLICATION OF
ROCKY MOUNTAIN POWER
Page 7
WHEREFORE, Rocky Mountain Power respectfrrlly requests that the Commission
issue a final Order: (l) authorizingthat this matter may be processed by Modified Procedure;
(2) approving the Company's proposed Electric Service Schedule 95, Customer Efficiency
Services Credit; and (3) authorizing a one-time credit of $1.4 million effective February l,
2014.
DATED this Tmday of November, 2013.
Respectfully submitted
Frr, 7r(rr,L6,7/4"^e-
Mark C. Moench
Daniel E. Solander
Attorneys for Rocky Mountain Power
APPLICATION OF Page 8
ROCKY MOUNTAIN POWER
Attachment 1
Summary of Projected DSM Revenue Collected
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Attachment 2
Summary of Idaho DSM Program Costs
IDAHO DSM
SCHEDULE 191 BALANCING ACCOUNT
MonthlY PIgsT' Accrued costsGOST,S - FrXeO BalanceAssets
Rate Recovery Carrying
Charge
Cash Basis Accrua! Basis
Accumulated Accumulated
Balance Balance
2006 totals $ '1.524.295.02 $$ (1,374,343.46) $6,053.00
2007 totals $ 2,'120,643.37 $$ (2,048,020.29) $ 11,692.00
2008 totals $ 4,767,955.02 $$ (4,287,0s9.82) $ 49,236.00
2009 totals $ 6,432,685.21 $$ (5,010,485.78) $ 46,170.00
2010 totals $ 7,515,026.38 $$ (5,939,833.12) $ 31,829.00
201l totals $ 2,669,984.25 $380,980.18 $ (5,356,975.10) $ 24,350.00
1 January
2 February
3 March
4 April
5 May
6 June
7 July
8 August
9 September
10 October
11 November
12 December
2012 totals
1 January
2 February
3 March
4 April
5 May
6 June
7 July
I August
9 September
10 October
11 November
12 December
2013 totals
1 January
2 February
3 March
4 April
5 May
306,786.59 116,762.19
339,573.56 (2,401.70)
463,651.28 (143,689.37)
259,877.05
382.425.80 (216,413.15) (632.00)
207,728.96 (24,674.93) (221,885.58) (569.00)
$ 3,371,757.21 $ (61,566.15) $ (5,245,004.78) $ (121.00)
105,440.79
221,'.t85.20
238,009.53
203,097.08
366,808.41
277,172.96
187,387.34
386,781.98
278,520.13
327,008.97
159,913.93
148,490.26
350,916.53
232,358.90
246,269.20
207,700.00
202,200.00
196,000.00
92,972.39
(60,023.40)
19,830.30
27,734.60
(18,312.36)
29,048.25
(90,788.20)
(8,023.92)
91,690.84
(32,874.25)
35,772.37
(55,623.68)
(90,760.97)
(21,929.68)
(2,503.17)
22,730.89
(8,033.25)
(392,089.99)
(355,1 73.28)
(336,s15.16)
(306,199.46)
(452,267.87)
(708,660.98)
(904,683.09)
(687,181.01)
(406,s53.98)
(257,381.23)
(266,990.47)
(253,183.75)
(226,554.89)
(196,835.66)
(287,s78.37)
(464,103.48)
(634,228.01)
(522,501.67)
(403,843.41)
(246,000.00)
(233,600.00)
(256,000.00)
867.00
692.00
596.00
512.00
434.00
2',t9.00
(210.00)
(604.00)
(725.00)
(701.00)
(570.00)
(586.00)
(50e.00)
(434.00)
(471.00)
(618.00)
(868.00)
(1 ,1 08.00)
(1,2e6.00)
(1,346.37)
(1,382.29)
(1,397.69)
897,419.48
764,123.40
666,213.77
563,623.39
478,597.93
47,328.91
(550,777.59)
(898,e89.04)
(842,616.74)
(840,821.92)
(675,441.27)
(690,166.89)
(770,340.02)
(637,327.79)
(585,871.55)
(456J32.24)
(584,267.68)
(900,498.90)
(1 ,1 84,678.38)
(1 ,47s,929.1s)
(1,634,7s9.36)
(1,674,445.73)
(1,707,228.02)
(1,768,625.71)
(1,787,692.23)
(389,065.60)
(361,201.57)
(296,529.66)
(313,269.89)
1,371,372.05
1,178,052.57
1,099,973.24
1,025,117.46
921,779.64
519,558.87
38,214.56
(312,398.59)
(399,715.66)
(488,709.04)
(331,352.31)
(370,7s2.86)
(1 ,s29,809.1 0)
(131,182.47)
(103,318.44)
(38,646.53)
(55,386.76)
(359,235.1 5)
(259,097.17)
(171,868.56)
(97,752.93)
(316,649.34)
(654,810.24)
(941,492.89)
(1,210.012.77)
(1,376,916.23)
(1,416,562.60)
(1,449,344.89)
(1,510,742.58)
$ 2,923,547.24 $ (61,530.90) $ (3,991,419.71) $ (10,586.35)
247,500.00
252,300.00
253,200.00
260,600.00
269,200.00
(265,100.00)
1,148,400.00
(225,000.00)
(195,600.00)
(285,700.00)
Page 1 of 2
(1,466.52)
(2,073.37)
(335.97)
(328.08)
(240.23)
IDAHO DSM
SCHEDULE 191 BALANCING ACCOUNT
monthly Program
Costs - Fixed
Assets
Accrued Costs
Balance Rate Recovery
Cash Basis
Accumulated
Balance
Accrual Basis
Accumulated
Balance
Garrying
Charge
6 June
7 July
8 August
9 September
10 October
11 November
12 December
20{4 totals
1 January
2 February
3 March
4 April
5 May
6 June
7 July
8 August
9 September
10 October
11 November
12 December
2015 totals
272,000.00
287,300.00
290,500.00
273,300.00
263,700.00
258,000.00
253,900.00
(461,100.00)
(630,500.00)
(519,000.00)
(401,200.00)
(244,4OO.00)
(232,100.00)
(256,700.00)
(182.27)
(275.791
(60e.81)
(842.66)
(1,011.28)
(ee8.78)
(e66.08)
(502,5s2.16)
(846,027.95)
('t,075,137.77)
(1,203,880.42)
(1 ,1 85,s91 .70)
(1,160,690.48)
(1,164,456.56)
(1 ,1 1 3,948.40)
(1,043,706.35)
(945,617.36)
(808,762.75)
(750,861 .13)
(864,539.73)
(1,128,150.59)
(1,276,429.30)
(1,329,071 .49)
(1 ,237 ,217.80)
(1,140,289.65)
(1,073,168.27)
(2,t4,669.03)
(588,1,14.82)
(817,254.64)
(945,997-29)
(927,708.57)
(902,807.35)
(906,573.43)
(856,065.27)
(785,823.22)
(687,734.23)
(550,879.62)
(492,978.00)
(606,656.60)
(870,267.46)
(1,018,546.17)
(1,071,188.36)
(979,334.67)
(882,406.52)
(815,285.14)
$ 3.181.s00.00 $$ (2,568,000.00) $(9,330.85)
316,600.00
322,800.00
324,000.00
333,300.00
344,300.00
348,000.00
367,500.00
37't,600.00
349,600.00
337,400.00
330,100.00
324,800.00
(265,1 00.00)
(251,600.00)
(225,000.00)
(195,600.00)
(285,700.00)
(461 ,100.00)
(630,500.00)
(519,000.00)
(401,200.00)
(244,400.00)
(232,100.00)
(256,700.00)
(ee1.84)
(957.s6)
(911.01)
(845.39)
(6e8.39)
(578.5e)
(610.87)
(878.71)
(1 ,042.1 9)
(1,146.31)
(1,071.85)
(978.62)
$ 4,070,000.00 $ $ (3,968,000.00) $ (10,711.71)
Page2 of 2
Attachment 3
Schedule 95, Customer Efficiency Services Credit
YEg[EHyouNrArN
I.P.U.C. No. I Original Sheet No.95
ROCKY MOT]NTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.95
STATE OX'IDAIIO
Demand Side Management (DSM) Credit
PT RPOSE: The DSM Credit is designed to provide a one-time credit to currently active retail
tariff Customers who were subject to electric service Schedule l9l .
AVAILABILITY: At any point on the Company's interconnected system.
APPLICATION: This Schedule shall be applicable to currently active retail tariff Customers who
were subject to Schedule 191 Customer Effrciency Services rate anytime from October 2012 through
September 2013.
OI\"E-TIME BILL CREDIT: ln addition to the Monthly Charges contained in the Customer's
applicable schedule, all qualifring currently active customers shall receive a one-time credit to their bill.
The credit will be 37.0 percent of the Customer's total Schedule l9lcharges from October 2012 to
September 2013. A single bill credit will be applied to each qualiffing customer bill. Bill credit processing
will commence on February l, 2014 and will end no later than March 31, 2014, and this tariff will expire
April30, 2014.
Submitted Under Case No. PAC-E-13-15
ISSUED: November 7, 2013 EFFECTIYE: February l, 2014