20161003Application.pdf

October 3, 2016
VL4 OVERNIGHT DELIVERY
Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
4 72 W. Washington
Boise, ID 83702
Re: CASE NO. PAC-E-16-13
1407 West North Temple, Suite 310
Salt Lake City, Utah 84116
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IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
FOR AUTHORITY TO MODIFY ELECTRIC SERVICE REGULATION NO. 12
RELATED TO LINE EXTENSION ALLOWANCES
Dear Ms. Jewell:
Please find enclosed an original and nine (9) copies of Rocky Mountain Power's Application in
the above referenced matter, along with the direct testimony and exhibits of Mr. F. Robert
Stewart. Exhibit No. 2 contains clean and legislative copies of Electric Service Schedule No. 300
and Electric Service Regulation No. 12 requesting February 28, 2017, as the effective date of the
proposed changes. The enclosed CD contains the Application, direct testimony, and exhibits.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.
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Jeffrey K. Larsen
Vice President, Regulation
Enclosures
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Daniel E. Solander, (ISB# 8930)
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: [phone]
Email: [e-mail]
Attorney for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF ROCKY MOUNTAIN POWER FOR )
AUTHORITY TO MODIFY ELECTRIC )
SERVICE REGULATION NO. 12 RELATED )
TO LINE EXTENSION ALLOWANCES )
CASE NO. PAC-E-16-13
APPLICATION OF
ROCKY MOUNTAIN POWER
Rocky Mountain Power, a division of PacifiCorp ("Rocky Mountain Power" or the
"Company") pursuant to Idaho Code§§ 61-502 and 61-507 and Rules of Procedure 052, 121
and 123, does hereby apply to the Idaho Public Utilities Commission ("Commission") for
authority to modify Electric Service Regulation No. 12 -Line Extensions and Electric
Service Schedule No. 300 -Regulation Charges. The Company respectfully requests
Commission approval of the proposed tariff changes to become effective February 28, 2017.
In support of this Application, Rocky Mountain Power represents as follows:
BACKGROUND
1. Rocky Mountain Power provides retail electric service to approximately
76,500 customers in Idaho as a public utility pursuant to Idaho Code§ 61-129 and is subject
to the jurisdiction of the Commission.
2. The Company last filed an application for major changes to the line extension
APPLICATION OF Page 1
ROCKY MOUNTAIN POWER
tariff in 1996, Case No. UPL-E-96-04. The purpose of that application was to move from
transformer, meter and service plus 300 feet of primary to transformer, meter and service
("TMS"). On February 6, 1997, Commission Order No. 26780 approved the modification to
TMS.
3. Approximately eleven years later, Case No. PAC-E-08-06, was filed
requesting modifications to the line extension refund process for residential customers. Order
No. 30684 approved the modifications improving the likelihood of refunds for the initial
customer by requiring each of the next four additional customers to pay 20 percent of the line
extension costs and allowing the initial customer the opportunity to waive refunds if it
anticipated additional customers could provide a larger refund. These payments are refunded
to the initial customer, reducing the cost and risk for those customers and increasing the
probability that additional customers will pay to connect rather than wait for five years for
the refund period to elapse, which increased the probability of a refund to the initial
customer.
RELIEF
4. This Application seeks authorization to change residential allowances from
TMS to $1 ,550 which is revenue neutral based on the cost of service study from the
Company's last Idaho general rate case1• The allowance for residential developers would be
changed from providing the transformer to an allowance of $1 ,000 per lot. Non-residential
allowances are currently $90 per kilowatt. The Company requests authority to change that
allowance from a dollar per kilowatt to a percent of estimated annual revenue approach.
Current rates support an estimated annual revenue of nine times the estimated monthly
1 Case No. PAC-E-11-07.
APPLICATION OF Page 2
ROCKY MOUNTAIN POWER
revenue for non-residential customers. This is an increase from the existing allowance for all
customers except those with an average annual load factor of 15 percent or less. For example,
the allowance for a customer with a 40 percent load factor would be approximately two and
one-half times the current $90 per kilowatt.
5. This Application also requests approval of modification to Electric Service
Schedule No. 300 -Regulation Charges. The Company proposed updates the distribution
facilities charges, added new transmission facilities charges, and removed the references for
residential and nonresidential extension allowances. These references were removed
primarily because the extension advance is not a set amount, it varies based on the
circumstances of each extension so an actual charge cannot be listed. As a result the current
listing of the extension advances in Schedule 300 are incomplete definitions, rather than a
charge.
6. The testimony and exhibits of Company witness Mr. F. Robert Stewart are
provided in support of this Application. Mr. Stewart's testimony explains the proposed
changes to the Company's line extension policy contained in Regulation 12, Line Extensions,
and Electric Service Schedule No. 300, Regulation Charges. The proposed changes to the
residential line extension allowance would move from Transformer, Meter, and Service
("TMS") to a fixed price per service, and are designed to be revenue neutral. The proposed
changes to the non-residential line extension allowance will move from $90/kW to a multiple
of revenue allowance, and is also designed to be revenue neutral.
7. Mr. Stewart sponsors four Exhibits with his testimony: Exhibit No. 1 is a table
referencing each change to the schedules along with an explanation of the changes. Exhibit
No. 2 contains the clean and legislative copies of the tariff sheets with the proposed
APPLICATION OF Page 3
ROCKY MOUNTAIN POWER
modifications. Exhibit No. 3 is a summary of the calculation of the Facilities Charges and
Exhibit No. 4 summarizes the calculation of the proposed line extension allowances.
COMMUNICATIONS
8. Communications regarding this Application should be addressed to:
Ted Weston
Daniel E. Solander
1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone: [phone]
Fax:[phone]
Email: [e-mail]
[e-mail]
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
[e-mail]
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
MODIFIED PROCEDURE
9. Rocky Mountain Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed under
Modified Procedure, i.e., by written submissions rather than by hearing. RP 201 et. seq.
RELIEF
For the reasons set forth above and described in the testimony of Mr. Stewart, Rocky
Mountain Power respectfully requests that the Commission approve this Application: (1)
issuing an order authorizing that this matter be processed by Modified Procedure; and (2)
APPLICATION OF Page 4
ROCKY MOUNTAIN POWER
approve the proposed modifications to Electric Service Regulation No. 12 and No. 300 as
filed effective February 28, 2017.
DA TED this 3rd day of October, 2016
Respectfully submitted,
Daniel E. Solander
Attorney for Rocky Mountain Power
APPLICATION OF Page 5
ROCKY MOUNTAIN POWER