20160119Application.pdf

YffiIIHYOUNTAIN
January 19,2016
VA OWRNIGHT DELIWRY
Idaho Public Utilities Commission
472West Washington
Boise,ID 83702-5983
Attn: Jean D. Jewell
Commission Secretary
1407 W. North Temple, Suite 330
Salt Lake City, Utah 841l6
ldaho Public Utilities Commission
Olfice of the SecretarvRECEIVED
JAN I I 20t6
Boise, ldaho
RE: Case No. PAC-E-16-02
Proposed Increase to Schedule 191, Customer Efficiency Services Rate
Please find enclosed in the above captioned matter an original and seven (7) copies of Rocky
Mountain Power's Application requesting authorization to increase the Customer Efficiency
Services Rate, Electric Service Schedule 191.
For informal questions related to this matter, please contact Michael Snow, DSM Regulatory
Manager, at [phone] or Ted Weston, Idaho State Regulatory Affairs Manager, at (801)
220-2963.
Sincerely,
BjJrL h,,,,,!At/r/ au
Bill Comeau
Director, Demand-side Management
Enclosures
Daniel E. Solander,ISB# 8931
Rocky Mountain Power
1407 W. North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: [phone]
Email : daniel. solan der @p acifrcorp. com
Attorneyfor RoclE Mountain Power
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER FOR
AUTHORITY TO INCREASE SCHEDULE
191 . CUSTOMER EFFICIENCY SERVICES
RATE
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
)
)
)
)
)
CASE NO. PAC.E.I6-02
APPLICATION
COMES NOW, Rocky Mountain Power, a division of PacifiCorp (the "Company"),
and in accordance with RP 052 and RP 201, et. seq., hereby petitions the Idaho Public
Utilities Commission (the "Commission") for authority to increase the Customer Efficiency
Services Rate in Schedule 191 to recover costs associated with acquiring and administering
cost effective demand-side management ("DSM") programs in its Idaho service territory.
In support of this Application, Rocky Mountain Power states:
1. Rocky Mountain Power is authorized to do and is doing business in the state
of Idaho. The Company provides retail electric service to approximately 73,000 customers in
the state of Idaho and is subject to the jurisdiction of the Commission. Rocky Mountain
Power is a public utility in the state of Idaho pursuant to Idaho Code $ 6l-129.
2. This Application is filed pursuant to ldaho Code $$ 61-301, 6l-307,61-622,
and 6l-623. In particular, Idaho Code $ 6l-623 empowers the Commission to determine the
propriety of proposed rate schedules, $$ 61-307 and 6l-622 require Commission approval
Application of Rocky Mountain Power
prior to any increase in rates, and $ 61-301 requires Idaho retail electric rates to be just and
reasonable.
BACKGROUND
3. The Company has offered a variety of demand side management programs to
its customers since the 1970s. All of the DSM programs offered by Rocky Mountain Power
in Idaho have been designed to be cost-effective. On March 2, 2006, the Commission
approved cost recovery of DSM programs through Schedule 191, Customer Efficiency
Services Rate, which was applied to customers' bills beginning May l, 2006. The collection
rate was originally set at 1.5 percent to allow the Company to implement an enhanced set of
programs designed to measure Idaho customers' willingness to participate in DSM programs
and the Company's ability to deliver them cost-effectively.
4. To manage collection and program expenses during the initial period, the
Company tied participation to funding availability for business energy efficiency programs.
The collection rate has subsequently fluctuated and is currently set at 2.10 percent. The
Company is seeking an increase to the current rate as set forth below.
5. In November 2014 the Commission approvedl the Company's application2 to
consolidate three non-residential energy efficiency programs into one new program called
wattsmart Business. This program also increased incentive levels, expanded the tariff to
include energy management services and incentives and included a new offer for small
businesses.
6. These changes were proposed to increase program participation, streamline
program delivery for the customer and the Company, increase the comprehensiveness of the
' Order No. 33178.2 Case No. PAC-E-14-08.
Application of Rocky Mountain Power
program to reach beyond a capital equipment focus, update the program to align with current
codes, standards, third party specifications and market data, and increase small business
customer participation
7. DSM expenditures increased approximately 38 percent from $3.2 million in
2014 to $4.4 million in 2015. This $1.2 million increase was driven primarily by the
wattsmart Business sectors. The increased expenditures produced a corresponding increase in
kilowatt-hour savings. Class 2 savings at site increased from I1,410 megawatt hours in20l4
to approximately 15,440 megawatt hours in 2015, or 36 percent. The Company's current
forecast for DSM expenditures in 2016 and20l7 ranges from $4.4 to $5.0 million per year.
8. Currently Electric Service Schedule l9l - Customer Energy Efficiency
Service rate is 2.10 percent. Attachment A shows that at the current level of 2.10 percent the
annual Schedule 191 revenues would be approximately $3.947 million, significantly below
forecasted expenditures.
SCHEDULE 191 ADJUSTMENT
9. In order to closer align Schedule 191 revenues with projected expenditures the
Company proposes to increase the Schedule 191 collection rate from 2.10 percent to 2.70
percent.
10. Attachment B summarizes the actual monthly DSM expenditures and
Schedule 191 revenue collection through December 31,2015, with a net receivable balance
owed to the Company of $0.7 million. Attachment B also contains calendar year 2016
projected expenditures and Schedule 191 revenues at the current authorized rate. DSM
expenditures for 2016 are projected to be $4.4 million partially offset by Schedule 191 rate
recovery of $3.9 million producing a net DSM balance of $1.2 million owed to the Company.
Application of Rocky Mountain Power
1l Attachment C contains the same balancing account analysis as Attachment B
except Schedule l9l - Customer Energy Efficiency Service rate is adjusted to 2.70 percent
effective April 1, 2016, as proposed in this Application. Assuming the2.70 percent rate for
Schedule 191 revenue with an April l, 2016, effective date the balance in the deferred
account is projected to be under collected by approximately $280 thousand as of
December 31,2016.
12. Attachment B indicates that absent an increase to Schedule 191, the DSM
balancing account will be under collected by approximately $1.2 million as of December 31,
2016. Attachment C summarizes the same balancing account analysis with the Schedule 191
rate proposed in this Application produces an ending balance in the DSM deferred account
projected to be under collected by approximately $280 thousand.
13. To address the current under collection balance and keep it from continuing to
grow the Company proposes to increase Schedule 191 - Customer Energy Efficiency Service
rate to 2.70 percent which is forecasted to collect approximately $5.1 million on an annual
basis. Attachment D contains a clean and legislative copy of the Company's revised tariff
sheets for Schedule 191.
COMMUNICATIONS
Communications regarding this Application should be addressed to:
Ted Weston
Michael Snow
1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone: [phone]
Email : ted.weston@pacifi corp. com
michael. snow@pacifi corp. com
14.
4Application of Rocky Mountain Power
Daniel E. Solander
1407 W. North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: [phone]
Email : daniel. solander@pacifi com.com
In addition, the Company respectfully requests that all data requests regarding this matter be
addressed to one or more of the following:
By e-mail (preferred)
By regular mail
datarequest@racifi corp. com
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
15. Pursuant to Idaho Code $ 6l-307 and the Commission's Rule of Procedure
123, regarding the Company's statutory requirement to provide a customer notice prior to
any rate change, the Company has provided copies of the press release and customer bill
insert as Attachment E to the Application. The Company anticipates that the bill inserts will
be included in customer's bills by January 26,2015 and will continue through a full billing
cycle.
MODIFIED PROCEDURE
16. The Company believes that consideration of the proposals contained in this
Application does not require an evidentiary proceeding, and accordingly the Company
requests that this Application be processed under RP 201 et seq. allowing for consideration
of these issues under Modified Procedure, i.e., by written submissions rather than by an
evidentiary hearing. If, however, the Commission determines that an evidentiary proceeding
is required the Company stands ready to provide supporting testimony.
Application of Rocky Mountain Power
CONCLUSION
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission
issue an Order: (l) authorizingthat this proceeding be processed under Modified Procedure,
and (2) approving this Application to increase the Electric Service Schedule 191, Customer
Effrciency Services Rate, to 2.70 percent as described herein with an April 1, 2016, effective
date.
DATED this 19ft day of January,20l6.
Respectfully submitted,
By T/'l 1fih
Daniel E. Solander
Attorney for Rocky Mountain Power
Application of Rocky Mountain Power
Attachment A
Estimated Impact of Proposed Schedule I9L
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Attachment B
Demand-Side Management Balance Account Analysis
Using Current Rate of 2.1%
Attachment B
ldaho Demand€ide Management Balance Account Analysis
Using currentrate ol 2.1o/o
MonthlyProgram Accrued
Costs - Fixed CostsAssets Balance
Rate Carrying
Recovery Charge
Cash Basis
Accumulated
Balance
Accrual Basis Customer
Accumulated DepositBalance Rate
2011 totals 2,669,984 380,980 (5,356,975) 24,350
2012 totals 3,371,757 (61,566) (5,245,005) (121)
2013 totals 3,815,666 (36,097) (4,024,339) (10,042)
(264,352)
(228,562)
(206,008)
(213,533)
(319,092)
(389,555)
(646,723)
(446,816)
(431,902)
(285,195)
(242,288)
(272,974\
1,183,202
(690,167)
(e08,882)
(984,684)
476,955
529,227
597,991
504,1 78
339,629
(49,327)
(355,964)
(359,405)
(37e,761)
(383,1 21 )
(154,871)
(215,529)
(1 8,1 78)
193,478
567,263
461,134
569,'t00
187,013
95,369
127,139
205,966
319,261
406,931
531,207
661,308
814,080
993,002
1,O37,597
1,011,737
762,454
684,081
61 1,810
711,185
823,627
903,960
1,564,182
(370,753)
(62s,566)
(736,3ee)
628,206
682,376
739,825
669,843
486,468
138,788
(76,668)
(102,580)
(109,319)
131 ,348
347,975
255,892
377,959
589,242
737,356
854,632
839,855
51 4,1 59
519,918
530,379
552,865
611,717
714,687
838,963
969,065
1,121,837
1,300,758
1,345,353
1,319,493
1,O70,211
991,838
919,567
1 ,018,941
1 ,1 31 ,383
1.211.716
January
February
March
April
May
June
July
August
September
October
November
December
2014 totals
January
February
March
April
May
June
July
August
September
October
November
December
2015 totals
January
February
March
April
May
June
July
August
September
October
November
December
2016 totals
Total Accurals
199,728
277,O55
267,760
272,O76
170,588
325,554
193,932
213,804
315,637
223,462
224,967
196,397
419,568
411,785
246,092
342,460
451,406
355,845
348,534
352,648
(e7)
73
317
428
429
31s
118
93
139
219
302
1.00o/o
1.00o/o
1.00o/o
1.00o/o
1.00o/o
1.00o/o
1.00o/o
1.00o/o
1.00o/o
1.0oo/o
1.000/o
1.00%
1.00%
1.00%
1.00%
1.00o/o
1.0Oo/o
1.00o/o
1.0Oo/o
1.0Oo/o
1.0Oo/o
1.OO%
1.00o/o
1.00%
1.00%
1.O00k
1.00o/o
1.00%
1.00%
1.00%
1.000/o
1.AOo/o
1.00o/o
1.Q9o/o
1.00%
1.OOo/o
(35,032) (274,741) (789)
(97,033) 1,184,794 (211)
1,897 (215,906) 419
(1 1,315) (203,781) 46e
23,832 (264,860) 45e
(18,826) (490,453) 351
41,276 (583,010) 121
91,181 (520,272) (169)
(22,472) (318,77e) (2e8)
13,618 (243,510) (308)
244,026 (228,009) (318)
476.261 fi1.622\ e47.787\ e24\
3,160,823 219.529 (2,406,315) (498)
580,e82 (225,671) (207,514)
203,541 223,405 (310,098)
486,112 (122,743) (378,57s)
(31,425) (256,901) (1s4)
(75,285) (222,120)(373) (200,202)
56,391 (628,494)
97,403 (434,222)
(21,308) (419,729)
(56,342) (277,156)
(54,443) (23s,4s9)
15,300 (265.280)
4,395,370 (19s,090) (3,835,750) 2,182
388,236
358,166
358,166
391,701
362,841
362,841
396,701
367,841
359,091
384,018
354,091
352,587
391
497
614
753
846
854
739
602
540
551
639
720
4.436,283
307,756
(3,947,000)7.746 1,211,716
Attachment C
Demand-Side Management Balance Account Analysis
Using Current Rate of 2.7%
Attachment C
ldaho Demand€ide Management Balance Account Analysis
Using forecasted rate of 2.7%
Monthly Program
Costs - Fixed
Assets
Rate Carrying
Recovery Charge
Cash Basis
Accumulated
Balance
Accrued
Costs
Balance
Accrual Basis Customer
Accumulated Deposit
Balance Rate
2011totals 2,669,984 380,980 (5,356,975) 24,350
2012 totals
2013 totals
3.371.757 (61.566) (5.245.005)n21\
3,815,666 (36,097) (4,024,339) (10,042\
January 199,728 (35,032) (274,741) (789)
February 277,055 (97,033) 1,184,794 (211)
March 267 ,760 1,897 (215,906) 419
April 272,076 (11,315) (203,781) 469
May 170,588 23,832 (264,860) 459
June 325,554 (18,826) (490,453) 351
July 193,932 41,276 (583,010) 121
August 213,804 91,181 (520,272) (169)
September 315,637 (22,472) (318,779) (298)
October 223,462 13,618 (243,510) (308)
November 224,967 244,026 (228,009) (318)
December 476,261 (11,622) (247,787) (224\
2014 totals 3,160,823 219,529 (2,406,315) (498)
January 196,397 (31,425) (256,901) (154)
February 419,568 (75,285) (222,120) (97)March 411,785 (373) (200,202) 73April 580,982 (225,671) (207,s14) 317May 203,541 223,405 (310,098) 428June 486,112 (122,743) (378,s75) 429July 246,092 56,391 (628,494) 315August 342,460 97,403 (434,222) 118September 451,406 (21,308) (419,729) 93October 355,845 (56,342) (277,156) 139November 348,534 (54,443) (235,459) 219December 352,648 15,300 (265,280) 302
2015 totals 4,395,370 (195,090) (3,835,750) 2,182
January 388,236 (264,352) 391February 358,166 (228,562) 497March 358,166 (206,008) 614April 391,701 (274,558) 727May 362,841 (410,285) 757June 362,841 (500,885) 680July 396,701 (831,547) 442August 367,841 (574,510) 175September 359,091 (555,334) 7October 384,018 (366,700) (67)
November 354,091 (311,531) (42)
December 352,587 (350,986) (24)
2016 totals 4,436,283 - (4,875,258) 4,157
1,183,202
(690,167)
(908,882)
(984,684)
476,955
529,227
597,991
504,178
339,629
(49,327)
(3s5,e64)
(359,405)
(379,761)
(383,121)
(154,871)
(215,529)
(1 8,1 78)
193,478
567,263
461,134
569,100
187,013
95,369
127,139
205,966
319,261
406,931
531,207
661,308
814,080
931,951
885,264
747,901
313,497
107,003
(89,233)
(71,982)
(2e,463)
(27,887)
1,564,182
(370,753)
(625,566)
(736,3ee)
628,206
682,376
739,825
669,843
486,468
138,788
(76,668)
(102,580)
(10e,31s)
131,348
347,975
255,892
377,959
589,242
737,3s6
854,632
839,855
514,1 59
519,9'18
530,379
552,865
611,717
714,687
838,963
969,065
1,121,837
1,239,707
1,193,021
1,055,657
621,253
414,759
218,523
235,775
278,293
279,870
1.00%
1.00%
1.00Yo
1.00Yo
1.00o/o
1.000/o
1.000/o
1.000/o
1.00o/o
1.O0o/o
1.00o/o
1.O0%
1.00o/o
1.00o/o
1.01o/o
1.00%
1.00%
1.00%
1.00%
1.00Yo
1.0Oo/o
1.000/o
1.00o/o
1.00%
1.00%
1.O0Yo
1.00o/o
1.00o/o
1.000/o
1.000/o
1.O0%
1.00%
1.00%
1.00%
1.00%
l.OOo/o
Attachment D
Proposed Revisions to Schedule 191
ROCKY MOUNTAIN
POWER
A OMSION OF PACIECONP
LP.U.C. No. 1
Sixth Revision of Sheet No. 191
Canceling Fifth Revision of Sheet No. 191
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO. 191
STATE OF IDAHO
Customer Efficiency Services Rate Adjustment
PURPOSE: The Customer Efficiency Services Rate Adjustment is designed to recover the costs
incurred by the Company associated with Commission-approved demand-side management expenditures.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the Company's electric service schedules.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer's applicable
schedule, all monthly bills shall have the following percentage increases applied prior to the application of
electric service Schedule 34.
Schedule 1
Schedule 6
Schedule 6A
Schedule 7
Schedule 7A
Schedule 9
Schedule 10
Schedule 1 1
Schedule 12 - Street Lighting
Schedule 12 -Traffic Signal
Schedule 19
Schedule 23
Schedule 23A
Schedule 24
Schedule 35
Schedule 35A
Schedule 36
2.700
2_70%
2.70%
2.70%
2.70%
2.70%
2.70o/o
2.70%
2.70%
2.70%
2.70%
2.70%
2.70%
2.70%
2.70%
2.70%
2.70%
Submitted Under Case No. PAC-E-16-02
ISSUED: January 19,2016 EFFECTM: April 1,2016
-ROCKYMOUNTAIN-(lptolvlrlea
\ A orvtsroN oF PActftcoBP
I.P.U.C. No.l
fif++Sixth Revision of Sheet No.
Canceling +eurt+Ei&U Revision of Sheet No.
191
191
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.19I
STATE OF IDAHO
Customer Efficiency Services Rate Adjustment
PURPOSE: The Customer Efficiency Services Rate Adjustment is designed to recover the costs
incurred by the Company associated with Commission-approved demand-side management expenditures.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the Company's electric service schedules.
MONTHLY BILL: In addition
schedule, all monthly bills shall have the
electric service Schedule 34.
Schedule 1
Schedule 6
Schedule 6,{
Schedule 7
Schedule 7A
Schedule 9
Schedule 10
Schedule 1 1
Schedule 12 - Street Lighting
Schedule 12 -Traffic Signal
Schedule 19
Schedule 23
Schedule 23A
Schedule 24
Schedule 35
Schedule 35A
Schedule 36
to the Monthly Charges contained in the Customer's applicable
following percentage increases applied prior to the application of
2.1419%
2.1419%
2.+el9%
2.++19%
2.+el9%
2.1419%
2.W%
2.1419%
2.1419%
2A41e%
2AAJe%
2.1419%
2.+W%
2.1419%
2]en%
2.+Ol9%
2.1470%
Submitted Under Case No. PAe E l4 O7PAC-E-16-02
ISSUED:EFFECTM: April 1. 20l6Deeenaber3#14
Affachment E
Press Release and Customer Bill Insert
ROCKY MOUNTAIN
POIA'ER
For information, contact:
Media Hotline: [phone]
Rocky Mountain Power proposes increase to
recoyer investment in energy efficiency programs
BOISE, Idaho,Ian.X, 20'1.6-Inplanning to meet the electricity needs of
customers, Rocky Mountain Power works with customers to help them use
electricity more efficiently. The utility promotes energy efficiency and programs
to coordinate when electricity is used, as well as to reduce overall electrical use to
help customers save money. Participation in these programs by Idaho customers
has grown and, as a result the company has invested more in this resource than
is currently funded by a Customer Efficienry Services charge, which appears as a
line item on the customer bill.
The company proposes to increase the charge for all customer classes (except
tariff contracts) from 2.1 percent to 2.7 percent of each customer's bill. If
approved by the Idaho Public Utilities Commissioru the 0.6 percent increase
would add about 6L cents to a typical residential customer's monthly bitl. At its
current level, the charge generates about S3.9 million to fund the programs. If
approved, the surcharge would generate approximately $5.1 million. These
revenues do not increase company earnings; they allow the company to recover
the investment it has already made on behalf of customers to provide energy
efficiency programs.
"Customers benefit two ways from these programs," said Tim Solomon the
Regional Business Manager in Rexburg. "First, participating customers benefit
from lower bills as they take advantage of these programs and use electricity
more efficiently. Second, all customers benefit whether they participate in the
programs or not because the cost of electricity saved through these programs is
about half the cost of electricity generated by a new power plant. It's part of our
balanced approach to use a variety of cost-effective methods to provide
electricity to our customers."
Programs currently provided for residential customers include cash incentives
for energy efficient appliances, improved insulatiory energy efficient windows
and low income weatherization. For business customers, Energy FinAnswer,
FinAnswer Express and Irrigation Energy Services programs provide services
and incentives to customers who complete energy efficiency projects. The
Irrigation Load Control program focuses on operational coordination of summer
irrigation pumping systems. Specific details of these programs are available on
the comoanv's Web site, www.rockvmountainpower.net.
The public can comment on the proposed rate change as the commission reviews
the application. The commission must approve the proposed change before it can
take effect. A copy of the company/s application is available for public review at
the commission offices in Boise and on it's homepage at www.puc.idaho.gov.
Customers may also subscribe to the commission's RSS feed to receive periodic
updates via email. It also is available at the company's offices in Rexburg,
Prestor; Shelley and Montpelier as noted below:
Idaho Public Utilities Commission
www.puc.idaho.gov
472W. Washington
Boise, ID 83702
Rockv Mountain Power offices
Rexburg - 25 East Main
Preston - 509 S. 2nd East
Shelley -852 E. 1400 North
Montpelier -24852 U.S. Hwy 89
About Rocky Mountain Power
Rocky Mountain Power is one of the lowest-cost electric utilities in the United
States, providing safe and reliable service to more than 73,000 customers in
Idaho, as well as customers in Utah and Wyoming. As part of PacifiCorp, the
company has more than 11,000 megawatts of generation from coal, hydroelectric,
natural gas and renewable wind and geothermal power. The company is one of
the largest owners of wind powered generation in the U.S.
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Keeping You lnformed
Rocky Mountain Power
proposes increase
to recover investment in
energy efficiency programs
Rocky Mountain Power requests recovery of
investment in energy efliciency programs.
On January 15, 2015, Rocky Mountain Power asked
the ldaho Public Utilities Commission to increase the
Energy Efficiency Surcharge for all customer classes
(except tariff contracts) from 2. I percent to 2.7
percent of each customer's bill. This rate increase will
not increase company earnings. lt only recovers the
investment the company has incurred to provide
energy efficiency programs.
lfthe 0.5 percent increase is approved by the ldaho
Public Utilities Commission a typical residential
customer using 837 kilowatt-hours of electricity would
see an increase to its monthly bill of about 6l cents.
At the current level, the energy efficiency surcharge
generates $3.9 million to fund the programs. lf
approved, the increase would generate approximately
$5.1 million annually.
The public can comment on the proposed rate change
as the commission reviews the application. The
commission must approve the proposed change before
s
II
E
I
o
it can take effect. A copy of the application is available
for public review at the commission offices in Boise
and on the commission's homepage at www.puc.idaho.
gov. Customers may file written comments regarding
the application with the commission or subscribe to the
commission's RSS feed to receive periodic updates via
email about the case. Copies of the proposal also are
available for review at the company's offices in Rexburg,
Preston, Shelley and Montpelier.
ldaho Public Utilities Commission
472W. Washington
Boise, lD 83702
www.puc.idaho.gov
Rocky Mountain Power Offices
. Rexburg - 25 East Main. Preston - 509 S. 2nd E.
. Shelley- 852 E. 1400 N.
. Montpelier - 24852 U.S. Hwy 89
For more information about your rates and rate
schedule, go to rockymou ntainpower.net/rates.
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