20150202Steward Direct.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER FOR
AUTHORITY TO INCREASE RATES BY
$10.7 MILLION TO RECOVER
DEFERRED NET POWER COSTS
THROUGH THE ENERGY COST
ADJUSTMENT MECHANISM
) CASE NO. PAC-E-ls-Or
)) DIRECT TESTIMONY OF
) JOELLE R. STEWARn
)
)
)
ROCKY MOUNTAIN POWER
CASE NO. PAC-E-15-01
February 2015
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a.
A.
Please state your name, business address and present position with
PacifiCorp, dba Rocky Mountain Power (the "Company").
My name is Joelle R. Steward. My business address is 825 NE Multnomah Street,
Suite 2000, Portland, Oregon 97232. My present position is Director of Pricing,
Cost of Service, and Regulatory Operations in the Regulation Department.
Qualifications
a. Briefly describe your education and professional background.
A.
a.
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A.
I have a B.A. degree in Political Science from the University of Oregon and an
M.A. in Public Affairs from the Hubert Humphrey Institute of Public Policy at the
University of Minnesota. Between 1999 and March 2007,I was employed as a
Regulatory Analyst with the Washington Utilities and Transportation
Commission. I joined the Company in March 2007 as a Regulatory Manager,
responsible for all regulatory filings and proceedings in Oregon. I assumed my
current position in February 2012. I currently direct the work of the cost of
service, pricing, and regulatory operations groups.
Have you appeared as a witness in previous regulatory proceedings?
Yes. I have testified in regulatory proceedings in ldaho, Oregon, Utah,
Washington and Wyoming.
What is the purpose of your testimony in this proceeding?
My testimony presents the Company's proposed rates to recover the deferral
balances in Electric Service Schedule No. 94, Energy Cost Adjustment (Schedule
e4).
Steward, Di - I
Rocky Mountain Power
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Background
0. What level of revenues is Schedule 94 currently designed to collect?
A. Schedule 94 is currently designed to collect approximately $12.6 million-$5.9
million for Tariff Contract 400, $0.4 million for Tariff Contract 401, and $6.3
million for the standard tariff customers-based on Idaho loads from Case No.
PAC-E-13-04.
Proposed Rate Change for Schedule 94
O. Please describe Rocky Mountain Power's proposed rate change in this case.
A. In this 2015 Energy Cost Adjustment Mechanism ("ECAM") filing, the Company
proposes to update the current ECAM collection rates to recover approximately
$23.3 million. This includes the outstanding deferral balances from prior years
and the 2014 Defenal discussed in the direct testimony of Mr. Michael Wilding.
For Tariff Contracts 400 and 401, the Company proposes to increase the Schedule
94 rates to recover approximately $12.7 million and $1.0 million, respectively,
through the rate effective period of April 1,2015 to March 31,2016. For standard
tariff customers, the Company proposes to increase the Schedule 94 rates to
recover approximately $9.7 million from April 1,2015 to March 31,2016.
Why is the Company proposing to increase the ECAM collection rates for all
customers?
Based on the present rates authorized in Case No. PAC-E-14-01, the Company
projects that the annual revenue collected from Schedule 94 for all customers
would be approximately $12.6 million, which is about $10.7 million less than the
$23.3 million projected ECAM balance as of March 31, 2015, shown in my
Steward, Di -2
Rocky Mountain Power
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a.
A.
Exhibit Np. 3 and in Table 2 in Mr. Wilding's testimony. Therefore, the Company
proposes to increase Schedule 94 rates to collect approximately $23.3 million.
Please explain the proposed rate change for Tariff Contracts 400 and 401.
The proposed rate for Tariff Contracts 400 and 401 is composed of two parts: the
estimated combined balance of the prior deferrals that are being amortized over
multiple years and the2014 Deferral.
In the Company's 2011 general rate case, Case No. PAC-E-I l-12, the
parties stipulated and Commission Order No. 32432 approved a plan to phase-in
the rate impact from the 2011,2012, and 2013 ECAM deferrals for these tariff
contracts. The proposed rate change for TariffContracts 400 and 401 recovers the
final year of amortization for these prior ECAM deferral periods. The estimated
balances of these prior ECAM deferral periods as of March 31, 2015, are
approximately $6.2 million or 0.441 cents/kWh for Tariff Contract 400, and
approximately $0.5 million or 0.433 cent/kWh for Tariff Contract 401. These
balances and rates are shown in Exhibit No. 3.
The proposed rate for Tariff Contracts 400 and 401 for the 2014 Deferral
is 0.467 centslkWh, which is the same rate proposed for all the transmission
customers as required by Order No. 32910. This rate is shown in Exhibit Nos. 2
and 3.
Accordingly, the proposed Schedule 94 rate for Tariff Contract 400 of
0.908 cents/kWh is the combination of these two rates-0.441 cents/kwh for the
prior deferral balances and 0.467 cents/kWh for the 2014 Deferral. Similarly, the
proposed Schedule 94 rate for Tariff Contract 401 of 0.900 cents/kWh is the
Steward, Di- 3
Rocky Mountain Power
I combination of these two rates-0.433 cents/kWh for the prior deferral balances
2 and 0.467 for the 2014 Deferral. The Company will track the recovery of the
3 balance of the prior deferral amounts by proportioning the monthly collections
4 based on the percentages shown in Exhibit No. 3. For example, 46.0 percent of
5 the collections from TariffContract 400 will be applied against the balance for the
6 2014 deferral and 54.0 percent of the collections will be applied against the
7 balance of the prior deferrals. The percentages in Exhibit No. 3 recognize that
8 10.5 percent, or $1,7 million, of the 2014 deferral is related to the outstanding
9 balance from standard tariff customers. Therefore, to avoid having the Tariff
l0 Contract customers pay the portion of the 2014 Deferral related to the under-
I I collection from the standard tariff customers from the prior year, the percentage
12 of collections allocated to the 2014 Deferral for Tariff Contract 400 and 401 is
13 correspondingly reduced. The remaining collections will be applied against the
14 balance of the prior deferrals.
15 a. What is the impact of the proposed ECAM rates?
16 A. As summarized in my Exhibit No. 2, these rate change proposals result in an
17 increase of 8.1 percent for Tariff Contract 400, and an increase of 8.0 percent for
18 Tariff Contract 401. Standard tariff customers will see an increase of 1.8 percent,
19 or $3.3 million.
20 Calculation of Proposed Rates for Schedule 94
2l a. How were the proposed Schedule 94 rates developed for standard tariff
22 customers?
23 A. The proposed rates for standard tariff customers were developed in three steps.
Steward, Di - 4
Rocky Mountain Power
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a.
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First, their kWh consumption at the generation level was developed by multiplying
their retail loads at the delivery service voltage level with the corresponding line
loss factors. Next, an overall average rate at the generation level was developed by
dividing their total collection target identified above with their kWh consumption
at the generation level. Last, the proposed rates by delivery voltage level were
developed by multiplying the above overall average rate at the generation level
with the corresponding line loss factors. As a result, the Company proposes
Schedule 94 rates of 0.496, 0.479 and 0.467 cents per kWh for secondary, primary,
and transmission delivery service voltages, respectively, for standard tariff
customers.
How were the proposed Schedule 94 rates developed for Tariff Contract 400
and Tariff Contract 401?
The proposed rates for these two customers were developed in two steps. First,
their collection targets for the prior deferral period balances identified above were
divided by their 2012 kwh consumption at the transmission voltage level to
develop a rate to recover these outstanding balances. Second, as described above,
the transmission voltage rate developed for recovering the 2014 Deferral was
added to the rate for the prior deferral period. This results in the proposed Schedule
94 rates of 0.908 cents per kWh for Tariff Contract 400 and 0.900 cents per kWh
for Tariff Contract 401.
Please describe Exhibit No. 2.
Exhibit No. 2 shows the 2012loads used to develop rates, the line loss adjusted
loads, the allocation of the ECAM price change, and the percentage change by rate
Steward, Di - 5
Rocky Mountain Power
a.
A.
I schedule.
2 0. Please describe Exhibit No. 3.
3 A. Exhibit No. 3 shows the expected deferral balance as of April 1,2015, by customer
4 group and the proposed rate components for Tariff Contract 400 and Tariff
5 Contract 401.
6 Q. Please describe Exhibit No. 4.
7 A. Exhibit No. 4 contains clean and legislative copies of the proposed Electric Service
8 Schedule No. 94, Energy Cost Adjustment. Consistent with the ECAM, the
9 Company proposes the new rates become effective April l, 2015.
10 a. Does this conclude your direct testimony?
I I A. Yes.
Steward, Di - 6
Rocky Mountain Power
Case No. PAC-E-I5-01
Exhibit No. 2
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2015
Rocky Mountain Power
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Case No. PAC-E-I5-01
Exhibit No. 3
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTATN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2015
Rocky Mountain Power
Exhibit No. 3 Page 1 of 1
Case No. PAC-E-15-01
VMtness: Joelle R. Steward
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Case No. PAC-E-15-01
Exhibit No. 4
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2015
VROCKY MOUNTAIN-(POWER
\ A DTVTSTON OF PACTFTCOftP
Rocky Mountain Power
Exhibit No. 4 Page 1 ot 2
Case No. PAC-E-15-01
Witness: Joelle R. Steward
Fifth Revision of Sheet No. 94.1
Canceling Fourth Revision of Sheet No. 94.1I.P.U.C. No. I
ROCKY MOUNTAIN POWER
ELECTRIC SERYICE SCHEDULE NO.94
STATE OF IDAHO
Energy Cost Adjustment
AVAILABILITY: At any point on the Company's interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the Company's electric service schedules.
ENERGY COST ADJUSTMENT: The Enerry Cost Adjustment is calculated to collect the
accumulated difference between total Company Base Net Power Cost and total Company Actual Net Power
Cost calculated on a cents per kWh basis.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer's applicable
schedule, all monthly bills shall have applied the following cents per kilowatt-hour rate by delivery voltage.
Deliverv Voltaee
Schedule I
Schedule 6
Schedule 6A
Schedule 7
Schedule 7A
Schedule 9
Schedule l0
Schedule ll
Schedule 12
Schedule 19
Schedule 23
Schedule 234
Schedule 24
Schedule 35
Schedule 35A
Schedule 36
Schedule 400
Schedule 401
Secondary
0.496(, per kWh
0.496(, per kWh
0.496A per kWh
0.496i, per kWh
0.496(, per kWh
0.496f, per kWh
0.496(, per kWh
0.496(, per kWh
0.4960 per kWh
0.496fi per kWh
0.496(, per kWh
0.496( per kWh
0.496i, per kWh
0.496/, per kWh
0.4961, per kWh
Primary
0.479(, per kWh
0.479t, per kWh
0.479t, per kWh
0.479t, per kWh
0.479( per kWh
0.479( per kWh
0.4790 per kWh
Transmission
0.467(, per kWh
0.9081per kWh
0.900d per kWh
Submitted Under Case No. PAC-E-I5-01
ISSUED: February 2,2015 EFFECTM: April l,2015
-ROCKY
MOUNTAIN'Kiowea\ A orvrsroN oF PAclFtcoRP
I.P.U.C. No. I
Rocky Mountain Power
Exhibit No. 4 Page 2 of 2
Case No. PAC-E-15-01
Witness: Joelle R. Steward
fillh Se*rtl*-Revision of Sheet No. 94.1
Cancelling FourthThird Revision of Sheet No. 94.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.94
STATE OF IDAHO
Energy Cost Adjustment
AVAILABILITY: At any point on the Company's interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the Company's electric service schedules.
ENERGY COST ADJUSTMENT: The Enerry Cost Adjustment is calculated to collect the
accumulated difference between total Company Base Net Power Cost and total Company Actual Net Power
Cost calculated on a cents per kWh basis.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer's applicable
schedule, all monthly bills shall have applied the following cents per kilowatt-hour rate by delivery voltage.
Delivery Voltage
Secondary
Schedule 1 0.426324d per kWh
Primary Transmission
Schedule 6 0.!9b324p per kWh O$l_9egp per kWh
Schedule 6A 0.4W*4( per kWh 0.1393lj.0 per kWh
Schedule 7 0.196i21P per kWh
Schedule 7A 0.496J21(, per kWh
Schedule 9
Schedule 10 0.496W(, per kWh
Schedule 1l 0.4963240 per kWh
Schedule 12 0.!9b*4f per kWh
Schedule 19 0.496jts1( per kWh
Schedule 23 O.q%i2ap per kWh 0.1723-{i.0 per kWh
Schedule 23A 0.4964240 per kWh O.q7'|YJ+Ap per kWh
Schedule 24 0.496J24A per kWh 0.479,t8f, per kWh
Schedule 35 0.849624(, per kWh 0.479:,+EO per kWh
Schedule 35A 0.196*?40 per kWh 0.n93*O per kWh
Schedule 36 0.1263ts4( per kWh
Schedule 400
Schedule 401
O.+rn&0+p per kWh
0.90&€lp per kWh
0.99A4+9( per kWh
Submitted Under Case No. PAC-E-I5+01
ISSUED: +p++tebrua$ 2, 20111 EFFECTM: April 1,20lr+