20160201Steward Direct and Exhibits 2 and 3.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
rN TIrE, MATTER OF TIrE APPLICATION ) CASE NO. PAC-E-16-05
oF ROCKY MOUNTATN POWER )
REQ[TESTTNG APPROVAL OF TrrE $16.7 ) DTRECT TESTTMOTYY OF
MILLTON N'ET POWER COST DEF'ERRAL ) JOELLE R. STEWARI)
ANDAUTHORTTYTODECREASERATES )
BY $9.0 MTLLTON )
)
ROCKY MOUNTAIN POWER
CASE NO. PAC.E.16.O5
F'ebruary 2016
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Please state your name, business address and present position with
PacifiCorp, dba Rocky Mountain Power (the 6'Company'n).
My name is Joelle R. Steward. My business address is 1407 West North Temple,
Salt Lake City, Utah 84116. My present position is Director, Rates & Regulatory
Affairs.
Qualifications
a. Briefly describe your education and professional background.
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. In February
2012, I assumed responsibilities overseeing cost of service and pricing for
PacifiCorp. In May 2015,I assumed my current position, with broader oversight
over Rocky Mountain Power's regulatory affairs in addition to the cost of service
and pricing responsibilities.
Have you appeared as a witness in previous regulatory proceedings?
Yes. I have testified in regulatory proceedings in Idaho, 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
Steward, Di - 1
Rocky Mountain Power
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A.
balances in Electric Service Schedule No. 94, Energy Cost Adjustment (Schedule
e4).
Background
a. What level of revenues is Schedule 94 currently designed to collect?
A. Schedule 94 is currently designdd to collect approximately $23.4 million; $12.8
million for Tariff Contract 400, $1.0 million for Tariff Contract 401, and $9.6
million for the standard tariff customers based on Idaho loads from Case No.
PAC-E-15-09.
Proposed Rate Change for Schedule 94
a. Please describe the Company's proposed rate change in this case.
In this 2016 Energy Cost Adjustment Mechanism (ECAM) filing, the Company
proposes to reduce the current ECAM collection rates to recover approximately
$16.9 million from April l, 2016 to May 31, 2017, (or about $14.5 million
annualized), based on loads from Case No. PAC-E-15-09. This includes any
carry-over balance from the 2014 Deferral and the 2015 Deferral, as shown in
Table 2 and discussed in the direct testimony of Mr. Michael Wilding.
Why is the Company proposing to collect the ECAM deferral over 14
months?
A. The Company is proposing a l4-month collection period to align the collection of
the current ECAM deferral with the 2017 ECAM rate change. In Case No. PAC-
E-15-09, the Company proposed and the Commission approved' changing the
ECAM deferral period to align with the calendar year rather than the December
through November deferral period currently used. Changing the deferral period
Steward, Di-2
Rocky Mountain Power
a.
rOrderNo. 33440.
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a.
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also necessitated changing the filing and rate effective dates. Historically the
ECAM Application was filed on February I with an April I rate effective date.
By modifring the deferral period from December through November to January
through December it was necessary to delay the filing date to April I with a June
1 rate effective date.
When is this change to the deferral period effective?
The deferral period changed with the current ECAM deferral which will cover a
thirteen month period from December 2015 through December 2016. The next
ECAM application will be filed April 1,2017 with a June 1, 2017 rate effective
date. Beginning in 2017 the deferral period aligns with the calendar year with the
April I filing date and June 1 rate effective date.
Please explain the proposed rate change for Tariff Contracts 400 and 401.
Historically these tariff contract customers amortized the recovery of their ECAM
balance over two to three years. Because of the amortization agreement these
customers' deferral and collections were recorded in separate accounts. Beginning
in 2015, these customers paid their ECAM balance over one year along with the
prior period deferral. To asswe the prior years' ECAM balance was zero by
March 31,2016, a fixed monthly amount was paid rather than a usage based rate.
Starting in2016, the proposed rate for Tariff Contracts 400 and 401 is the same as
for standard tariff customers with transmission delivery service voltage.
What is the impact of the proposed ECAM rates?
As summarized in my Exhibit No. 2, these rate change proposals result in a
decrease of 7.1 percent for Tariff Contract 400, and a decrease of 7.3 percent for
Steward, Di - 3
Rocky Mountain Power
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Tariff Contract 401. Standard tariff customers will see an average decrease of 0.7
percent, or $1.4 million.
O. Why is the rate decrease so large for the tariffcontract customers?
A. As mentioned, in 2015 the tariffcontract customers were paying for their share of
the 2014 deferral plus the amortization of three years of prior period deferrals.
Beginning April l, 2016, the amortization is completely paid off so all they are
paying for is their share of the 2015 Deferral.
Calculation of Proposed Rates for Schedule 94
a. How were the proposed Schedule 94 rates developed for all customers?
A. The proposed rates for all customers were developed in three steps. 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 0.428, 0.413 and 0.402 cents per kWh for secondary, primary, and
transmission delivery service voltages, respectively, for all customers.
Please describe Exhibit No. 2.
Exhibit No. 2 shows the2014loads, from Case No. PAC-E-15-09, used to develop
rates, the line loss adjusted loads, the allocation of the ECAM price change, and
the percentage change by rate schedule.
Steward, Di- 4
Rocky Mountain Power
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I Q' Please describe Exhibit No' 3'
2 A. Exhibit No. 3 contains clean and legislative copies of the proposed Electric Service
3 Schedule No. 94, Energy Cost Adjustrnent. Consistent with the ECAM, the
4 Company proposes the newrates become effective April l, 2016.
5 Q. Does this conclude your direct testimony?
6 A. Yes.
Steward, Di - 5
Rocky Mountain Power
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Case No. PAC-E-I6-05
ExhibitNo.2
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2016
Rocky Mountain Power
Exhibit No. 2 Page 1 ol 1
Case No. PAC-E-16-05
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Case No. PAC-E-16-05
ExhibitNo.3
Witness: Joelle R. Steward
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Steward
February 2016
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ROCKY MCIUNTAIN
trontER
a [}rut$lot\l oF PACTFIC0f,P
I.P.U.C. No.1
Rocky Mountain Power
Exhibit No. 3 Page 1 of 2
Case No. PAC-E-16-05
Wtness: Joelle R. Steward
Sixth Revision of Sheet No.94.1
Canceling Fifth Revision of Sheet No. 94.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.94
STATE OF IDAIIO
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 Energy 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 Voltage
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Secondary
0.4280 per kWh
0.428fi per kWh
0.428( per kWh
0.428( per kWh
0.4280 per kWh
0.4280 per kWh
0.4280 per kWh
0.428( per kWh
0.4281, per kWh
0.4280 per kWh
0.4280 per kWh
0.428( per kWh
0.428( per kWh
0.4289 per kWh
0.4289 per kWh
Primary
0.413( per kWh
0.4130 per kWh
0.4130 per kWh
0.413i, per kWh
0.4131, per kWh
0.4130 per kWh
0.4130 per kWh
Transmission
0.402(, per kWh
0.4020 per kWh
0.4020 per kWh
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401
Submitted Under Case No. PAC-E-16-05
ISSUED: February 1,2016 EFFECTM: April 1,2016
ROCKY MSUNTAIN
rcWHR
a. 6ru,$rsN sF FACTFiCSfiF
LP.U.C. No. I
Rocky Mountain Power
Exhibit No. 3 Page 2 of 2
Case No. PAC-E-16-05
Witness: Joelle R. Steward
$.i.S.tN,$'$$'$k-Revision of Sheet No. 94.1
Canceling Si$I$S+ws'$h Revision of Sheet No. 94.1
ROCKY MOT]}ITAIN POWER
ELECTRIC SERVICE SCHEDULE NO.94
STATE OF IDAHO
Energy Cost Adjustment
AVAILABILITY: At any point on the Company's interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service under the
Company's electric service schedules.
ENERGY COST ADJUSTMENT: The Energy Cost Adjustment is calculated to collect the
accumulated difference between total Company Base Net Power Cost and total Company Actual Net Power Cost
calculated on a cents per kWh basis.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer's applicable
schedule, all monthly bills shall have applied the following cents per kilowatt-hour rate by delivery voltage.
Deliverv Voltase
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
Schedule
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Secondary
O..t"l$S$$l per kWh
0.Sl$s$$l per kWh
0.dt$s$i}l per kWh
0.jl.l,\S$$l per kWh
0.Ci$SqW perkWh
0.4,e$S{.}$l per kWh
0.S.J$S+sll per kWh
0.4J.:\Sti$p per kWh
0.jt.i$s!-|$l per kWh
0.-t,l*$SiNll per kWh
0.{}.$"i+$l per kWh
0.$.i.$.i.$l Per kWh
0.{a1.$:slxil per kWh
0.al}_$i!{}$p per kWh
0.atj_1 sl}$p per kWh
Primary
0.41$31 per kWh
0.41$31 per kWh
Transmission
0.4$.:i+l per kWh
0.4$.j$..$l per kWh
0.4{iitj.Sp per kWh
0.4l$3l per kWh
0.4 t.S3p per kWh
0.4 i.S31 per kWh
0.4 i.$31 per kWh
0.41.S31 per kWh
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Submitted Under Case No. PAC-E-1$S-0I-}-
ISSUED: r\psil. il.Igb$]$$-l-, 20 l$.S EFFECTIYE: April 1, 201$.$