20170425notice_of_application_order_no_33750.pdf

Office of the Secretary
Service Date
April 25,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.PAC-E-17-02
OF PACIFICORP DBA ROCKY MOUNTAIN )
POWER FOR APPROVAL OF A $7.5 )NOTICE OF APPLICATION
MILLION DEFERRAL OF NET POWER )
COSTS,AND AUTHORITY TO DECREASE )NOTICE OF
RATES BY S6.9 MILLION )MODIFIED PROCEDURE
)
_____________________________
)ORDER NO.33750
On March 31,2017,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 $1.65 per
month.The Company asks that the Commission process its Application by Modified Procedure,
and that the new rates take effect on June 1.2017.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.
30904.32432.32910.33008.33440,and 33492.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.33750
collect the difference between actual NPC and base NPC through a decrease or increase in
customer rates.This year,the deferred NPC difference was about $7.5 million.
YOU ARE FURTHER NOTIFIED that,besides the NPC difference,this year’s
ECAM includes:(1)a Load Change Adjustment Rate (LCAR);(2)an adjustment for coal
stripping costs;(3)a credit for S02 allowance sales;(4)an adjustment for load control (DSM);
(5)a true-up of 100%of the incremental Renewable Energy Credit revenues;(6)Production Tax
Credits;(7)Deer Creek amortization expenses;and (8)the Lake Side generation resource adder.
The ECAM includes 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,S02 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 $7.5 million in power supply costs during the deferral period;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 approximately $6.9 million.
As noted above,the Company states that if its proposal is approved,prices for
customer classes would decrease as follows:
•Residential Customers —1.8%
•Residential Schedule 35,Optional Time-of-Day Service —2.1 %
•General Service Schedule 5 —2.5%
•General Service schedule 9 —2.9%
•Irrigation customers —2.2%
•Commercial or Industrial Heating Schedule 19 —2.3%
•General Service Schedule 23 —2.0%
•General Service Schedule 35 —3.0%
•Public Street Lighting —0.9%
•Industrial Customer,Schedule 400 —3.0%
•Industrial customer,Schedule 401 —3.1%
Source:Application,Exhibit No.3 to Direct Testimony of Robert M.Meredith;See also,
News Release and Customer Notice filed with Application.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33750
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
ww.idaloy.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 ofthis 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 etseq.
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 IDAPA 3 1.01.01.201 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 May 4,2017.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:
472 W.Washington Street Yvonne R.Hogle
Boise,ID 83702-5918 Assistant General Counsel
1407 W.North Temple,Suite 320
Salt Lake City,UT 84116
E-mail:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33750 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 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 May 11,2017.
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 May 4,2017.The Company may file
a reply,if any,no later than May 11,2017.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33750 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2017.
PAUL K LLA i5,PRESIDENT
KRISIINE RAPER,C ISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
o PAC-E.-l7O2bk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33750 5