20150220Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: FEBRUARY 20, 2015

SUBJECT: ROCKY MOUNTAIN POWER’S APPLICATION FOR AUTHORITY TO
INCREASE RATES BY $10.7 MILLION TO RECOVER DEFERRED NET
POWER COSTS THROUGH THE ENERGY COST ADJUSTMENT
MECHANISM (ECAM), CASE NO. PAC-E-15-01

On February 2, 2015, PacifiCorp dba Rocky Mountain Power (“Rocky Mountain” or
“Company”), submitted its annual Energy Cost Adjustment Mechanism (“ECAM”) filing in
accordance with Idaho Code §§ 61-502 and 61-503 and Rule of Procedure 52. The Company
requests an effective date of April 1, 2015. Rocky Mountain requests that this matter be
processed through Modified Procedure.
On February 12, 2015, the Commission issued a Notice of Application and
Intervention Deadline. See Order No. 33228. Subsequently, the Commission has received
Petitions to Intervene as a party in this case from Monsanto Company (“Monsanto”) and
PacifiCorp Idaho Industrial Customers (“PIIC”).
THE APPLICATION
Rocky Mountain is requesting a Commission Order approving the recovery of total
deferred net power costs of $16.6 million for the period beginning December 1, 2013 through
November 3, 2014 (“Deferral Period”). Application at 1. Rocky Mountain’s Application seeks
to revise Schedule 94, Energy Cost Adjustment, to recover approximately $23.3 million in total
deferred net power costs over the collection period beginning April l, 2015 through March 31,
2016. Id. The proposed $23.3 million recovery represents an increase of approximately $10.7
million from current Schedule 94 rates, as approved in Order No. 33008 (Case No. PAC-E-14-
DECISION MEMORANDUM 2
01). Id. The Company states further that the $23.3 million recovery amount includes an
amortization of Monsanto Company’s (“Monsanto”) and Agrium Inc.’s (“Agrium”) share of
2012-2014 deferrals. Id. The combined amortization of the amounts for the three ECAM
deferral periods resulted in tariff surcharge rates in this case of approximately $12.7 million and
$1.0 million, respectively, for Monsanto and Agrium as their share in the Deferral Period. Id. at
5.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Modified Procedure and a Notice of
Schedule in this case?

Neil Price
Neil Price
Deputy Attorney General

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