20150114notice_of_application_order_no_33213.pdf

Office of the Secretary
Service Date
January 14,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF ROCKY MOUNTAIN POWER FOR )CASE NO.PAC-E-14-1O
APPROVAL OF A TRANSACTION TO )
CLOSE DEER CREEK MINE AND FOR A )NOTICE OF APPLICATION
DEFERRED ACCOUNTING ORDER )
)NOTICE OF
)INTERVENTION DEADLINE
)
____________________________
ORDER NO.33213
YOU ARE HEREBY NOTIFIED that on December 15,2014,PacifiCorp dba Rocky
Mountain Power (“Rocky Mountain”or “Company”)filed an Application with the Idaho Public
Utilities Commission (“Commission”),pursuant to Idaho Code §61-328,for Approval of a
transaction to close the Deer Creek Mine located near Huntington,Utah,and for a deferred
accounting order.
YOU ARE FURTHER NOTIFIED that the mine is currently operated by Energy
West Mining Company (“Energy West”),a wholly owned subsidiary consolidated with
PacifiCorp for regulatory purposes.This Application is filed by PacifiCorp,on its own and on
behalf of Energy West.
YOU ARE FURTHER NOTIFIED that Rocky Mountain attached the direct
testimony of several Company witnesses,Cindy A.Crane,Seth Schwartz,and Douglas K.
Stuver,in support of its Application.
YOU ARE FURTHER NOTIFIED that Rocky Mountain states that the closure of the
Deer Creek Mine consists of four main aspects:(1)the Company will permanently close the
Deer Creek Mine and incur direct closure costs (Closure);(2)Energy West will withdraw from
the United Mine Workers of America (UMWA)1974 Pension Trust,incurring a withdrawal
liability;(3)the Company will sell certain mining assets as defined later in the Application
(Mining Assets);and (4)the Company will execute a replacement coal supply agreement (CSA)
for the Huntington power plant and an amended CSA for the Hunter power plant.Energy West
has also settled its retiree medical obligation related to Energy West union participants (Retiree
Medical Obligation).Together,the components of the Closure and settlement of the Retiree
Medical Obligation constitute the transaction to close the Deer Creek Mine (Transaction).
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YOU ARE FURTHER NOTIFIED that Rocky Mountain requests approval from the
Commission for an accounting order authorizing the Company to:(1)defer the costs associated
with the Closure for future recovery;(2)transfer the remaining plant balances for the Deer Creek
Mine and Mining Assets from electric plant in service and establish a regulatory asset to recover
these costs for continuing recovery;(3)defer all payments associated with the withdrawal from
the 1974 Pension Trust for future recovery;(4)defer any settlement losses associated with the
Retiree Medical Obligation for future recovery;and (5)defer the difference between the costs
associated with the status quo (operating the Deer Creek Mine)currently reflected in rates
through base net power costs and the incremental costs associated with the new Huntington
power plant and amended Hunter power plant CSAs,including any fuel costs to supply the
Huntington and Hunter power plants.
YOU ARE FURTHER NOTIFIED that Rocky Mountain requests that the
Commission determine that the Company’s decision to consummate the Transaction is
“prudent.”The sale of the Mining Assets and the execution of the CSAs are contractually
contingent upon regulatory approval and Transaction closure on or before May 31,2015.
YOU ARE FURTHER NOTIFIED that Rocky Mountain requests that the
Commission issue its Order by May 27,2015,allowing the Company two business days prior to
the deadline for closing the Transaction,and Commission approval represents the last expected
regulatory action needed to complete the Transaction.
YOU ARE FURTHER NOTIFIED that Rocky Mountain states that it will promptly
provide information requested by the Commission or interested parties and will participate in
technical conferences and hearings as required by the Commission or as requested by interested
parties to facilitate issuance of an order on or prior to May 27,2015.
YOU ARE FURTHER NOTIFIED that the Application,exhibits,and testimonies
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application,exhibits,and testimonies are also
available on the Commission’s website at www.puc.idaho.gov.Click on the “File Room”tab at
the top of the page,scroll down to “Open Electric Cases,”then click on the case number as
shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
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Idaho Code §S 61-503 and 61-328.The Commission may enter any final Order consistent with
its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all hearings will be conducted pursuant to the
Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 etseq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED those parties 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 within seven days from the service date of this Order.
ORDER
IT IS HEREBY ORDERET)that persons desiring to intervene in Case No.PAC-E
14-10 should do so no later than seven days from the date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of January 2015.
1
PAUL KJELL’ANDER,PRESIDENT
2D
MACK A.REDFORD,MMISSIONER
4L4;2 L/SiJ
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jn D.Jewell
Commission Secretary
O:PAC-E-14-IOnp
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