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Home My WebLink About20170705Larsen Exhibit 11.pdfCase No.PAC-E-17-06 Exhibit No.11 Witness:Jeffrey K.Larsen BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER Exhibit Accompanying Direct Testimony of Jeffrey K.Larsen June 2017 Rocky Mountain Power Exhibit No.11 Page 1 of 1 Case No.PAC-E-17-06 Witness:Jeffrey K.Larsen Resource Tracking Mechanism Revenue Requirement Overview --Wind Repowering Category Base New Deferral Capital Investment Zero until the next general rate case.Actual monthly plant-in-service After rate case,the base will be the balances associated with wind amount included in the test period,repowering,beginning with first beginning on the rate effective date of repowering assets placed in service. that case. Accumulated Depreciation Same as capital investment.Monthly depreciation reserve of Reserve repowered assets. Accumulated Deferred Same as capital investment.Actual accumulated deferred income Income Tax tax balances associated with the repowering investment. Operation &Maintenance Four-year average O&M expense for Actual O&M expense for wind Expense wind projects from 2014 to 2017,projects.i The difference between the (2018-2019 are excluded to avoid any ;base and new columns will be changes in O&M related to |included in the mechanism repowering).I calculation until the amounts i are fully included in a general Depreciation Expense Zero.Actual monthly plant-in-service rate case,at which time this balances associated with wind will end. repowering less the base multiplied by current depreciation rates.The plant in O service amounts used will be reduced by the replaced assets until the next depreciation study. Property Taxes Zero.Capital Investment deferral less the Depreciation Reserve deferral multiplied by the average property tax rate from the last rate case. Wind Tax Zero.Incremental energy production MWh associated with repowering multiplied by the wind tax rate. NPC Savings The ECAM tracks and captures any The ECAM has a 90%/10%sharing The 10%of incremental wind incremental changes to wind of the difference between base NPC production not in base rates production between NPC in base rates and actual NPC.The RTM will capture will be multiplied by monthly and actual NPC.the 10%savings not included in the HLH and LLH prices, The base energy production =Actual ECAM related to incremental energy (Mid-C for west and Four energy produced by wind projects production associated with repowering,Corners for east resources) divided by (1 +percent of generation and pass these savings back to less wind integration costs. increase from Exhibit No.3).customers. PTC Zero until next general rate case.After Actual MWh eligible for PTC Not included in the RTM. a rate case,the base will be the amount produced by repowered wind plants Incremental difference will included in the test period,starting on multiplied by the production tax credit continue to be recovered the rate effective date,associated with rate.through the ECAM. repowering projects. M ap N/A The Company is proposing to cap the RTM until the next general rate case so that,after taking into account the wind repowering benefits that will flow through the Company's ECAM,it will not operate to surcharge customers.