20161103Compliance filing.pdf

November 3, 2016
VIA ELECTRONIC DELIVERY
Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
4 72 W. Washington
Boise, ID 83702
REC EIVED 1407 West North Temple, Suite 310
Salt Lake City, Utah 84116
:· •• ·;; .i UBLI C
' · ~ ~· ::()"'H~ISSION
Re: COMPLIANCE FILING IN CASE NO. PAC-E-14-10
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
FOR APPROVAL OF THE TRANSACTION TO CLOSE THE DEER CREEK
MINE AND FOR A DEFERRED ACCOUNTING ORDER
Dear Ms. Jewell:
Please find enclosed an original and seven (7) copies of Rocky Mountain Power's compliance
filing in the above referenced matter. Pursuant to Order No. 33304, Rocky Mountain Power
hereby submits the final closing entries associated with the closure of the Deer Creek Mine.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at
[phone].
v;;~
Jeffrey K. Larsen
Vice President, Regulation
Enclosures
cc: Randall C. Budge
Ronald L. Williams
PACIFICORP
Deer Creek Mining Disposition
Closing Journal Entries
As of June 30, 2015
Closing journal entries to record the regulatory assets, receivables due from joint ownem of the Hunter plant, proceeds of cash and notes receivable due from Bowie
Resource Partnem, LLC, and associated liabilities and obligations due to the disposition of the assets of the Deer Creek mining operations.
I!.
1.
2.
3.
4.
5.
6.
7.
FERG
Account
182.3
143
108
111
101
107
183
182.3
131
141
108
101
107
131
141
418.1
123.1
182.3
108
253
101
182.3
230
182.3
154
182.3
165
253
182.3
234
Description
Unrecovered Investment in Plant. Property and Equipment
Other regulatory assets
Other accounts receivable
Accumulated provision for depreciation of electric utility plant
Accumulated provision for amortization of electric utility plant
Electric plant in service
Construction work in progress -electric
Preliminary survey and investigation charges
To establish a regulatory asset and an estimated receivable due from the joint ownem of the
Hunter plant for the disposition of the net book value of the unrecovered property, plant and
equipment investment in the Deer Creek mining operations including electric plant in service
(tangibles and intangibles), construction work in progress -electric and preliminary survey
and investigation charges.
Other regulatory assets
Cash
Notes receivable
Accumulated provision for depreciation of electric utility plant
Electric plant in service
Construction work in progress -electric
To establish a regulatory asset for the net loss and a note receivable due from Bowie
Resource Partnem for the disposition of the Cottonwood preparation plant assets sold to
Bowie Resource Partnem, LLC, including electric plant in service and construction work in
progress • electric.
Cash
Notes receivable
Equity in earnings of subsidiary companies
Investment in subsidiary companies
To record a note receivable due from Bowie Resource Partnem and a net loss on
disposition of the Cottonwood mining reserves (reflected in equity earnings of wholly-owned
subsidiary company Fossil Rock Fuels, LLC) that were sold to Bowie Resource Partnem,
LLC (reflected as electric plant held for future use in PacifiCorp's rate base).
Deer Creek Mine Closure Costs
Other regulatory assets
Accumulated provision for depreciation of electric utility plant
Other deferred credits (Deseret mine reclamation)
Electric plant in service
Other regulatory assets (ARO/Reg difference • Deer Creek)
Asset retirement obligations (Deer Creek)
To establish a regulatory asset for the recovery of the accumulated retirement obligation
(ARO) net assets and related ARO regulatory difference regulatory asset, both associated
with the Deer Creek mine reclamation obligations.
Other regulatory assets
Plant materials and operating supplies
To establish a regulatory asset for the disposition of the net book value of materials and
supplies, net of estimated salvage, associated with the Deer Creek mining operations.
Other regulatory assets
Prepayments (Prepaid royalties)
Other deferred credits (Royalties payable)
To establish a regulatory asset for the recovery of prepaid royalties and estimated recovery­
based royalties payable through June 30, 2015 associated with the Deer Creek mining
operations.
Other regulatory assets
Accounts payable to associated companies
To establish a regulatory asset for the recovery of estimated union benefits to be paid on
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74,614,229
4,502,715
178,508,292
2,443,963
9,949,892
365,193
10,000,000
22,973,080
170,991
30,000,000
1,350,006
4,873,074
858,110
426,806
5,231,361
1,671,490
5,740,338
254,000,800
4,454,189
1,614,210
42,804,884
483,281
31,520,997
4,202,676
259,699
1,695,615
5,231,361
842,957
828,533
5,740,338
FERG
11. Account Description Debit Credit
behalf of the United Mine Worl<en; of America (UMWA) and nonunion severance payments
to be paid to Deer Creek mine pen;onnel (reflected as payables at Energy West Mining
Company, employer of Deer Creek mine pen;onnel, a wholly-owned subsidiary of
PacifiCorp) due to the closure of the Deer Creek mining operations.
8. 182.3 Other regulatory assets 2,978,683
426.5 Other deductions 2,978,683
To establish a regulatory asset for the recovery of the accumulated deferred income tax
impact of property flow through due to the disposition of the Deer Creek mining operations.
9. 182.3 Other regulatory assets 15,553,411
234 Accounts payable to associated companies 15,553,411
To establish a regulatory asset for the recovery of mine closure activities through June 30,
2015 (reflected as payables at Energy West Mining Company, a wholly-owned subsidiary of
PacifiCorp) due to the closure of the Deer Creek mining operations.
10. 143 Other accounts receivable 1,315,240
182.3 Other regulatory assets 1,315,240
To establish an estimated receivable due from the joint ownen; of the Hunter plant for their
share of the mine closure activities through June 30, 2015 (reflected as payables at Energy
West Mining Company, a wholly-owned subsidiary of PacifiCorp) due to the closure of the
Deer Creek mining operations.
Ene!lllr'. West Mining UMWA Pension Withdrawal Obligation
11. 182.3 Other regulatory assets 106,547,427
143 Other accounts receivable 4,133,230
234 Accounts payable to associated companies 110,680,657
To establish a regulatory asset and an estimated receivable due from the joint ownen; of the
Hunter plant for recovery of an estimated obligation due to the United Mine Worl<en; of
America (UMWA) as a result of withdrawing from the union pension plan as part of the
closure of the Deer Creek mining operations.
Note: The amounts shown are based on closing values and estimates as of June 30, 2015. These amounts are subject to true-up adjustments as subsequent events
transpire including: (1) additional Deer Creek mine closure activities continuing on approximately through February 2017; (2) changes in estimate of investment recovery
for salvage of net plant, property and equipment and materials and supplies; (3) changes in estimate of the costs allocable to the joint owners of the Hunter plant
(currently based upon Deer Creek mine coal consumption for the last five years of operation); (4) changes in estimate for accumulated retirement obligations; (5)
changes in estimate for the UMWA pension withdrawal obligation; and (6) changes in estimated recovery-based royalties as regulatory recovery efforts by state
jurisdictions take place.
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