20160210notice_of_application_order_no_33467.pdf

Office of the Secretary
Service Date
February 10,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP DBA )CASE NO.PAC-E-16-05
ROCKY MOUNTAIN POWER’S )
APPLICATION FOR APPROVAL OF ITS )NOTICE OF APPLICATION
$16.7 MILLION DEFERRAL OF NET )
POWER COSTS,AND AUTHORITY TO )NOTICE OF
DECREASE RATES BY $9.0 MILLION )MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33467
On February 1,2016,PacifiCorp dba Rocky Mountain Power applied to the
Commission for an Order authorizing the Company to adjust its rates under the Energy Cost
Adjustment Mechanism (ECAM).The ECAM allows the Company to adjust its rates each year
to capture the difference between the Company’s actual power supply expenses and the power
expenses embedded in base rates.The adjustment is a separate line item on customer bills that
increases if power supply costs are higher than the amount already included in base rates,or
decreases if power supply costs are lower.The ECAM does not affect the Company’s earnings.
The Company’s present ECAM Application,if approved,would decrease rates in all
customer classes,with an average residential customer’s bill decreasing by about 58 per month.
The Company asks that the Commission process its Application by Modified Procedure,and that
the new rates take effect on April 1,2016.With this Order,the Commission provides notice of
the Application,and invites interested persons to comment.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Commission first approved an annual
ECAM in 2009,and the mechanism has been modified several times since then.See Order Nos.
30904,32432,32910,33008,and 33440.In summary,the ECAM allows the Company to
increase or decrease rates each year to reflect changes in the Company’s power supply costs over
the year.These costs vary with changes in the Company’s fuel (gas and coal)costs,surplus
power sales,power purchases,and the market price of power.Each month,the Company tracks
the difference between the actual Net Power Costs (NPC)it incurred to serve customers,and the
embedded (or base)NPC it collected from customers through base rates.The Company defers
the difference between actual NPC and base NPC into a balancing account for later disposition at
the end of the yearly deferral period.At that time,the ECAM allows the Company to credit or
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33467 1
collect the difference between actual NPC and base NPC through a decrease or increase in
customer rates.For the 12-month period ending November 30,2015,the deferred NPC
difference was about $9.3 million.
YOU ARE FURTHER NOTIFIED that,besides the NPC difference,this year’s
ECAM includes:(1)a Load Change Adjustment Rate (LCAR);(2)a credit for S02 allowance
sales;(3)an adjustment for load control (DSM);(4)an adjustment for the treatment of coal
stripping costs;(5)a true-up of 100%of the incremental Renewable Energy Credit (REC)
revenues;(6)Deer Creek amortization expense;(7)Lake Side 2 generation resource adder;(7)a
back cast adjustment that accounts for any over/under-collection of NPC,LCAR,DSM costs,
Deer Creek amortization expense,and REC revenues;and (8)a “90/10 sharing band”in which
customers pay/receive 90%of the increase/decrease in the difference between actual NPC and
base NPC,LCAR,SO2 sales,DSM costs,and the coal stripping costs,and the Company
incurs/retains the remaining 10%.The Company’s Application includes the testimony of
witnesses who explain each of these items in detail.
YOU ARE FURTHER NOTIFIED that with this ECAM Application,the Company
ultimately seeks an Order approving the Company’s:(1)deferral,for later recovery through
rates,of $16.7 million in power supply costs from December 1,2014 through November 31,
2015;and (2)revised Electric Service Schedule 94,Energy Cost Adjustment,which would
reflect the ECAM adjustment and decrease the Company’s Schedule 94 revenues by $9 million.
As noted above,the Company’s proposal,if approved,would decrease prices for customer
classes as follows:
•Residential Customers —0.6%
•Residential Schedule 35,Optional Time-of-Day Service —0.7 %
•General Service Schedule 5 —0.9%
•General Service Schedule 9 —1.0%
•Irrigation Customers —0.8%
•Commercial or Industrial Heating Schedule 19 —0.8%
•General Service Schedule 23 —0.7%
•General Service Schedule 35 —1.0%
•Public Street Lighting —0.3%
•Industrial Customer,Schedule 400 —7.1%
•Industrial Customer,Schedule 401 —7 .3%
Source:Application,Exhibit No.2 to Direct Testimony of Joelle R.Steward;See also,
News Release and Customer Notice filed with Application.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33467 2
YOU ARE FURTHER NOTIFIED that the Application and its exhibits have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices.These documents are also available on the Commission’s web site at
wwwckIahggov.Click on the “File Room”tab at the top of the page,scroll down to
“Electric Cases”and click on the case numbers as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commissions jurisdiction under Title 61 of the Idaho Code.The Commission
may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter,and that it will proceed under
Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities
Commission’s Rules of Procedure.See ifiAPA 31.01.01.201 through .204.The Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on the
Company’s Application may file a written comment in support or opposition with the
Commission no later than March 10,2016.The comment must contain a statement of reasons
supporting the comment.Persons desiring a hearing must specifically request a hearing in their
written comments.Written comments concerning the Application shall be mailed to the
Commission and the Company at the addresses reflected below:
Commission Secretary Ted Weston
Idaho Public Utilities Commission Idaho Regulatory Affairs Manager
P0 Box 83720 Rocky Mountain Power
Boise,ID 83720-0074 1407 W.North Temple,Suite 330
Salt Lake City,UT 84116
Street Address for Express Mail:E-mail:[e-mail]
472 W.Washington Street Yvonne R.Hogle
Boise,ID 83702-59 18 Assistant General Counsel
1407 W.North Temple,Suite 320
Salt Lake City,UT 84116
E-mail:[e-mail]
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33467 3
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at uicidajgy.Scroll to the “Consumers”tab,click
the “Utility Case Comment or Question Form,”and complete the form using the case number as
it appears on the front of this document.These comments must also be sent to the Company at
the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than March 15,2016.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons may file written comments no later than March 10,2016.The Company may
file a reply,if any,no later than March 15,2016.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33467 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this JO
day of February 2016.
ATTEST:
KRISTINE RAPER.COM ISSIONER
I :/1
Jn D.Jewel!(I
commission Secretary
O:PAC-E-I 6-O5kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33467
PAUL PRESIDENT
I
ERIC ANDERSON,