20140220notice_of_application_order_no_32979.pdf

Office of the Secretary
Service Date
February 20,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF ROCKY MOUNTAIN POWER FOR )CASE NO.PAC-E-14-OI
AUTHORITY TO IMPLEMENT A NET )
DECREASE IN RATES THROUGH ITS )NOTICE OF APPLICATION
ENERGY COST ADJUSTMENT )
MECHANISM (ECAM))NOTICE OF
)MODIFIED PROCEDURE
)
)NOTICE OF
)INTERVENTION DEADLINE
)
_______________________________
)ORDER NO.32979
On January 31,2014,PacifiCorp dba Rocky Mountain Power (“RMP”or
“Company”)submitted its annual Energy Cost Adjustment Mechanism (“ECAM”)filing in
accordance with Idaho Code §61-502 and 6 1-503,and Rule of Procedure 52.The Company
requests an effective date of April 1,2014,for the proposed decrease in Idaho rates.RMP
requests that this matter be processed through Modified Procedure.
On January 30.2014,Monsanto Company (“lvi onsanto”)filed a Petition to Intervene
as a party in this case.The Commission granted Monsanto’s request on February 7,2014.See
Order No.32977.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company noted that on September 29,
2009,the Commission issued Order No.30904 approving the implementation of an annual
ECAM.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.Rl\P 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 S02 allowance sales,an adjustment for the treatment of coal stripping
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32979 1
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%(customers)/10%(Company)“sharing band”wherein
customers pay/receive the increase/decrease in actual NPC compared to base NPC and RMP
incurs/retains the remaining 10%.
YOU ARE FURTHER NOTIFIED that RMP requests a Commission Order
approving the recovery of total deferred net power costs for the collection period beginning April
1,2014 through March 31,2015 (“Deferral Period”).
YOU ARE FURTHER NOTIFIED that RMP seeks to revise Schedule 94,Energy
Cost Adjustment,to recover approximately $13.2 million in total deferred net power costs over
the Deferral Period.RMP states that this amount represents a decrease of approximately $2.8
million over current Schedule 94 rates authorized by Order No.32771 (Case No.PAC-E-13-03).
The Company states that the rates of Monsanto and Agrium,Inc.(“Agrium”)will increase while
all other customers’rates will be reduced.
YOU ARE FURTHER NOTIFIED that the $13.2 million recovery includes an
amortization of Monsanto and Agrium’s shares of the 2011-2013 deferrals,as set forth as part of
the general rate case stipulation (“Stipulation”)in the Company’s last general rate case (Case No.
PAC-E-l 1-12)and approved by Commission Order No.32432.The Company’s Application
incorporates further changes to the ECAM calculation in accordance with Commission Order
32910 in Case No.PAC-E-13-04.
YOU ARE FURTHER NOTIFIED that RMP states that the combined amortization of
the amounts from the three ECAM deferral periods result in tariff surcharge rates in this case for
Monsanto ($6.0 million)and Agrium’s ($.5 million)share in the Deferral Period.
YOU ARE FURTHER NOTIFIED that RMP states that its Base NPC originated from
the 2011 Stipulation approved by the Commission.The Base NPC was set at $1.205 billion for
the 2012 calendar year and $1.385 billion for the 2013 calendar year.The combined Base NPC
for the Deferral Period is $1.369 billion.For the Deferral Period,the NPC differential for
deferral was approximately $9.8 million before applying the 90/10 sharing band.The LCAR
reduced the deferral balance by approximately $1.1 million,before sharing,due to higher usage
during the Deferral Period.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32979
YOU ARE FURTHER NOTIFIED that credits for S02 allowance sales revenues
received by the Company were also included as an offset to the NPC deferral ($3,000 before
sharing).Additionally,Idaho’s share of incremental load control costs,pursuant to Commission
Order No.32432,is tracked in the ECAM and resulted in an adjustment reducing the deferral by
$0.2 million before sharing.
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 90/10 sharing band does not apply to the REC revenue true-up included in the
ECAM.
YOU ARE FURTHER NOTIFIED that the difference 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 was added to the NPC differential for deferral ($41,000 before sharing).
YOU ARE FURTHER NOTIFIED that the deferred ECAM balance of $24.3 million
as of November 30,2013,is derived from the following calculation:90%X (deferred NPC +
LCAR +S02 revenues +coal stripping costs adjustment)+interest charges +REC revenues.
The Company’s Confidential Exhibit 1 illustrates the detailed calculations for tariff customers,
with an ending balance of $9.9 million;Monsanto,with an ending balance of $13.4 million;and
Agrium,with an ending balance of $1.0 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 RMP’s 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF fNTERVENTION DEADLINE
ORDER NO.32979 3
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company’s
filing in Case No.PAC-E-14-01 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 31.01.01.201
through .204.The Commission notes that Modified Procedure and written comments have
proven to be an effective means for obtaining public input and participation.
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 28 days from the service date of this Order.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
P0 Box 83720 Rocky Mountain Power
Boise,ID 83720-0074 201 S.Main,Suite 2300
Salt Lake City,UT 84111
Street Address for Express Mail:E-mail:[e-mail]
472 W.Washington Street Yvonne R.Hogle
Boise,ID 83702-5918 Senior Counsel
Rocky Mountain Power
201 5.Main,Suite 2300
Salt Lake City,UT 84111
E-mail:yvonne.hog1e’dpaci licorp.com
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.puc.idaho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32979 4
YOU ARE FURTHER NOTIFIED that RMP’s ECAM Application and supporting
workpapers,testimonies and exhibits have been filed with the Commission and are available for
public inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at www.puc.idaho.gov.Click on the
“File Room”tab at the top of the page,scroll down to “Open Electric Cases,”and then click on
the case number as shown on the front of this document.
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.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No.
PAC-E-14-01 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 within seven days from the
service date of this Order.Persons desiring intervenor status shall also provide the
Commission Secretary with their electronic mail address to facilitate future communications in
this matter.
ORDER
IT IS HEREBY ORDERED that persons interested in submitting written comments
regarding RMP’s ECAM Application should do so no later than 28 days from the service date of
this Order.
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 seven days from the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32979 5
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this )
day of February 2014.
PAUL KJELLANfER,PRESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jean D.Jewell
Commission Secretary
O:PAC-E-14-0 lnp
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32979 6