20191203Compliance Filing.pdf

Y ROCKY MOUNTAIN
PO\Ti/ER
A DIVISION OF PACIFICORP
1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116RECEIVED
ll9DEC-3 PH 2:37
December 3, 2019 c
SSION
VIA OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
1 133 I W Chinden Blvd
Building 8 Suite 20lA
Boise, Idaho, 83714
Re CASE NO. PAC-E.I4-T1 COMPLIANCE FILING
IN THE MATTER OF THE APPLICATION OF PACIFICORP D/B/A ROCKY
MOUNTAIN POWER AND IDAHO POWER COMPANY FOR AN ORDER
AUTHORIZING THE EXCHANGE OF CERTAIN TRANSMISSION ASSETS.
Dear Ms. Hanian:
Rocky Mountain Power, a division of PacifiCorp, in compliance with Commission Order
No. 33313, which stated: "We also require PaciJiCorp to provide annual reporting of the deferral
account for reduced wheeling expenses related to the transaction. " hereby respectfully submits
tJris letter reporting the change in transmission wheeling expense paid to Idaho Power Company.
The asset exchange was finalized October 30, 2015, with operational confiol effective
November 4, 2015. For purposes ofthis report the Company compared the transmission wheeling
expense of $20.8 million paid to Idaho Power for the twelve months prior to the close to
$17.6 million paid during the twelve months ending October 31, 2018. Rocky Mountain Power's
wheeling expense increased by $2.4 million during this period compared to the $ 15.2 million paid
during the last reporting period.
In compliance to the Commission's order lo "establish a regulatory account defeting
these reduced wheeling expenses " the Company notes that the energy cost adjustment mechanism
Idaho Public Utilities Commission
December 3, 2019
Page 2
C'ECAM") tracks changes to FERC account 565 - Transmission of Electricity by Others, or
wheeling expense, along with other variable net power cost expenses from the amount included in
customers' rates. Through the ECAM, actual expenses are compared to the base level established
in the most recent general rate case witl variances deferred and reviewed annually. It is the
Company's opinion that the ECAM satisfies the Commission's order to: (l ) establish a regulatory
account to defer any changes to wheeling expenses; (2) provide an opportunity for proper
regulatory review; and (3) flow the financial benefits ofthe exchange back to customers.
The Company respectfully submits this letter reporting an increase to transmission
wheeling expenses paid to Idaho Power of approximately $2.4 million for the twelve month period
ending October 31, 2019 compared to the prior twelve months. Please direct any informal inquiries
to Ted Weston, Idaho Regulatory Affairs Manager, at [phone].
Sincerely,
Joelle Steward
Vice President, Regulation