20160913notice_of_application_order_no_33597.pdf

Office of the Secretary
Service Date
September 13, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PACIFICORP DBA ROCKY MOUNTAIN
POWER TO UPDATE BASE NET POWER
COSTS AND IMPLEMENT A RA TE
ST ABILITY PLAN
-------------------
) CASE NO. PAC-E-16-12
)
) NOTICE OF APPLICATION
)
) NOTICE OF
) INTERVENTION DEADLINE
)
) ORDER NO. 33597
On September 1, 2016, PacifiCorp dba Rocky Mountain Power applied to the
Commission for an Order authorizing the Company to adjust the base level of net power costs
(NPC) in its rates and to set a new base NPC to be tracked in the Energy Cost Adjustment
Mechanism (ECAM). The Company also asks the Commission for an Order approving a new
level of base retail load and authorizing the Company to adjust the Load Change Adjustment
Rate (LCAR), Production Tax Credit (PTC) and Renewable Energy Credit (REC) rates.
The Company's Application, if approved, would decrease rates by an average of
approximately 0.4 percent. The Company asks that the Commission authorize this matter to be
processed by Modified Procedure and to approve the new base NPC, new base retail load, and
the new LCAR, PTC and REC rates. As an alternative to reducing rates, the Company proposes
a Rate Stability Plan under which rates would remain unchanged and the Company would apply
the incremental revenues that result from the reduction in base NPC to the depreciation deferral
from the 2013 depreciation study. The Company indicates that it intends to engage parties in a
discussion of the Plan. If the parties cannot reach agreement on the alternative Rate Stability
Plan, the Company requests approval of the changes to the rates shown in the tariff revisions
included in Attachment A to its Application to be effective January 1, 2017. The Commission
now issues the following Order providing notice of the Company's Application and setting a
deadline for interested parties to intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Commission issued an Order approving an
update to the base NPC included in the Company's base rates in 2015. See Order No. 33440. In
that Order, the Commission approved a stipulation agreed to by the parties, which required in
part that the Company file an Application to update base NPC and base rates no later than
September 1, 2016, to be effective January 1, 2017. The updated base NPC was to be the
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33597
amount reported in the 2015 annual results of operations report, after appropriate pro forma
adjustments. In the present Application, the Company seeks authorization to use the NPC from
the 2015 annual results of operations report to set a new base NPC of $91.6 million, which is a
reduction of $3 .2 million from current base NPC. This update to NPC would reduce the
Company's revenue requirement by approximately $1.1 million and, "if implemented as an
adjustment to base rates, it represents a reduction of approximately four tenths of one percent."
Application at 1. The updated base NPC would also be used for tracking in the ECAM.
YOU ARE FURTHER NOTIFIED that the Company also proposes to update retail
load based on the 2015 results of operations report. The update would result in a base retail load
of 3,407,488 MWh, a reduction of 75,992 MWh from current base retail load. The Company
requests approval of this updated retail load and authorization to adjust the LCAR, PTC, and
REC rates.
YOU ARE FURTHER NOTIFIED that the Company proposes, as an alternative to
reducing rates, a Rate Stability Plan. The proposed Plan "would keep rates at the current level
and utilize the incremental revenue collected to offset other regulatory assets mitigating
customers' future rate impact." Id. at 4-5. Specifically, the Company explains that the revenues
would be applied against the depreciation deferral from the 2013 depreciation study. The
Company indicates that it intends to discuss the Plan with parties, including the potential to treat
any rate reduction associated with the 201 7 ECAM filing in the same manner.
YOU ARE FURTHER NOTIFIED that the Company requests that this matter be
processed by Modified Procedure.
YOU ARE FURTHER NOTIFIED that with this Application, the Company
ultimately seeks an Order approving: (1) the new base NPC of $91.6 million, or $26.90 per
MWh, and base retail load of 3,407,488 MWh; and (2) the new LCAR, PTC and REC rates. The
Company proposes to implement the Rate Stability Plan as an alternative to reducing rates as a
result of the new NPC and base retail load. If parties cannot reach agreement on the Rate
Stability Plan, then the Company requests approval of revisions to its tariffs, included in
Attachment A to the Application. As noted above, the Company's revisions to its tariffs, if
approved, would decrease monthly billings by an average of 0.4 percent. The reduction would
vary by customer class. The Company has provided a comparison of the monthly billings under
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33597 2
current rates and under the proposed rates by customer class, including the percent change, in
Attachment B to the Application.
YOU ARE FURTHER NOTIFIED that the Company has requested that the
Commission issue an Order approving the Application no later than December 15, 2016, with a
January 1, 2017 effective date.
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
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 Commission's 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, ID APA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons who wish to intervene in this matter
to obtain the rights of party ( e.g., to file formal discovery, or present evidence or cross-examine
witnesses at a hearing) must file a Petition to Intervene with the Commission pursuant to the
Commission's Rules of Procedure 72 and 73, ID APA 31.01.01.072 and .073. Persons who wish
to intervene as a party must file a Petition to Intervene no later than 14 days from the
service date of this Order. Such persons shall also provide the Commission Secretary with
their electronic mail address to facilitate further communications in this matter. After the
intervention deadline runs, the Commission Secretary shall issue a Notice of Parties that
identifies the parties and assigns exhibit numbers to each party in this proceeding. Once the
Notice of Parties has issued, Commission Staff shall informally confer with the Company and
any intervening parties about how to further process this case, and shall then report back to the
Commission on a proposed case schedule.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties' rights of participation and cross-examination are not required to intervene but
may present their views by submitting written comments to the Commission.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33597 3
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company's representatives in this matter:
Ted Weston
Idaho Regulatory Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, UT 84116
E-mail: [e-mail]
Daniel E. Solander
Attorney
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, UT 84116
E-mail: [e-mail]
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene no later than 14 days from the service date of this Order. Once the
deadline for intervention has passed, the Commission Secretary shall prepare and issue a Notice
of Parties.
IT IS FURTHER ORDERED that, after the Notice of Parties has issued, Commission
Staff shall confer with the parties regarding a procedural schedule for this matter.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of September 2016.
ATTEST:
J~an D. Jewel
e'ommission Secretary
O:PAC-E-16-12_ cc
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ERIC ANDERSON, COMMISSIONER
ORDER NO. 33597 4