20160205Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 3, 2016
SUBJECT: ROCKY MOUNTAIN POWER’S ECAM APPLICATION
CASE NO. PAC-E-16-05
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). If approved, the Company’s ECAM adjustment would
decrease rates in all customer classes, with an average residential customer’s bill decreasing by
about 58¢ per month.
The Commission approved the 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 its rates each year to reflect
changes in the Company’s power supply costs. These costs vary by year with changes in the
Company’s fuel (gas and coal) costs, surplus power sales, power purchases, and the market price
of power. The ECAM adjusts the Company’s rates up or down to ensure the rates capture the
difference between the Company’s actual power supply costs and the base (or embedded) power
supply costs the Company collected from customers through previously approved base rates.
With this Application, the Company 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. The Company states that if its proposal is approved, prices for
customer classes would decrease as follows:
DECISION MEMORANDUM 2
 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.

The Company requests that the new rates take effect on April 1, 2016, and that the
case be processed by Modified Procedure.
STAFF RECOMMENDATION
Staff concurs with the use of Modified Procedure. Staff recommends that the
Commission issue a Notice of Application and Notice of Modified Procedure setting a March 10,
2016 comment deadline, and a March 15, 2016 reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure setting a March 10, 2016 comment deadline, and a March 15, 2016 reply deadline?

/s/ Karl Klein
Karl Klein
Deputy Attorney General

M:PAC-E-16-05_kk