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HomeMy WebLinkAbout20170705Larsen Exhibit 27.pdfCase No.PAC-E-17-07 Exhibit No.27 Witness:Jeffrey K.Larsen BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ROCKY MOUNTAIN POWER Exhibit Accompanying Direct Testimony of Jeffrey K.Larsen June 2017 O Rocky Mountain Power Exhibit No.27 Page 1 of 2 Case No.PAC-E-17-07PacifiCorpWitness:Jeffrey K.Larsen O Idaho Combined Projects -Example Annual RTM Deferral Calculation Revenue Requirement Table 1 The Combined Projects Estimated Revenue Requirement Cost (Benefit) $thousands 2020 2021 2022 2023 Total Company Revenue 1 (15,816)87,811 89,915 70,376Requirement 2 Idaho Allocated (951)5,246 5,373 4,199 3 Idaho ECAM (2,651)(11,169)(10,100)(10,432) 4 Idaho Deferral 1,700 16,415 15,473 14,632 5 Net Customer Impact (951)5,246 5,373 4,199 O O O O Pa c i f i C o r p Id a h o Co m b i n e d Pro j e c t s - Ex a m p l e An n u a l RT M De f e r r a l Ca l c u l a t i o n Re v e n u e Re q u i r e m e n t (a ) (b ) (c ) (d ) (e ) (f) (g ) (h ) (i) Q) (k ) (I) (m ) (n ) (o ) (p ) $- T h o u s a n d s 20 2 0 En e r g y Ga t e w r y 20 2 1 En e r g y Ga t e w r y _ 20 2 2 En e r g y Ga t e w a y 20 2 3 En e r g y Ga t e w a y Re f e r e n c e Co m an y Fa c t o r Fa c t o r % All d a c h a e d Co m p a a n y Fa c t o r Fa c t o r % AI ' I d o ae d Co m an y Fa c t o r Fa c t o r % All d a c ed Co m an y Fa c t o r Fa c t o r % Al ed Pla n t Re v e n u e Re q u i r e m e n t 1 Ca p i t a l In v e s t m e n t Fo o t n o t e i 17 2 , 0 7 1 SG 8 01 3 8 % 10 , 3 4 8 2,0 6 8 , 7 9 2 SG 6 01 3 6 % 12 4 , 4 0 9 2,0 8 6 , 9 1 7 SG 6 01 3 6 % 12 5 , 4 9 9 2,0 8 6 . 9 1 7 SG 6 01 3 6 % 12 5 , 4 9 9 2 De p r e c i a t i o n Re s e r v e Fo o t n o t e 1 (4 0 4 ) SG 6 01 3 6 % (2 4 ) (3 6 , 3 9 2 ) SG 6 01 3 6 % (2 , 1 8 8 ) (9 5 , 0 4 2 ) SG 6 01 3 6 % (5 , 7 1 5 ) (1 5 3 , 9 3 2 ) SG 6 01 3 6 % (9 , 2 5 7 ) 3 Ac c u m u l a t e d DIT Ba l a n c e Fo o t n o t e 1 (2 , 5 3 2 ) SG 6 01 3 6 % SG 6 01 3 6 % g B SG 6 01 3 6 % g B SG 6 01 3 6 % g 4 Ne t Ra t e Ba s e su m of lin e s 1- 3 16 9 , 1 3 4 10 , 1 7 1 1,8 3 4 . 8 9 6 11 0 , 3 4 3 1,6 5 8 . 6 5 1 99 , 7 4 5 1,5 2 0 , 1 5 1 91 , 4 1 6 5 Pr e - T a x Ra t e of Re t u r n lin e 37 10 . 6 8 1 % TO . 6 8 1 % 10 68 1 % 10 . 6 8 1 % 10 68 1 % , 10 . 6 8 1 % 10 . 6 8 1 % 10 68 1 % 6 Pre - T a x Re t u m on Ra t e Ba s e fin e 4 · fin e 5 18 , 0 6 6 1,0 8 6 19 5 , 9 8 9 11 , 7 8 6 17 7 , 1 6 4 10 , 6 5 4 16 2 , 3 7 0 9,7 6 4 7 Wh o l e s a l e Wh e e l i n g Re v e n u e Fo o t n o t e 4 (9 9 1 ) SG 6 01 3 6 % (6 0 ) (1 0 , 8 4 5 ) SG 6 01 3 6 % (6 5 2 ) (1 0 , 5 0 0 ) SG 6 01 3 6 % (6 3 1 ) ' (1 0 . 1 5 0 ) SG 6 01 3 6 % (6 1 0 ) 8 Op e r a t i o n & M a i n t e n a n c e Fo o t n o t e 3 3.1 9 6 SG 60 1 3 6 % 19 2 20 , 1 8 9 SG 60 1 3 6 % 1,2 1 4 20 , 7 5 7 SG 60 1 3 6 % 1,2 4 8 20 , 9 9 5 SG 60 1 3 6 % 1,2 6 3 9 De p r e c i a t i o n Fo o t n o t e 3 9.6 9 9 SG 6 01 3 6 % 58 3 I 58 . 3 5 1 SG 6 01 3 6 % 3.5 0 9 I 58 , 8 9 0 SG 6 01 3 6 ¾ 3,5 4 1 58 . 8 9 0 SG 6 01 3 6 % 3,5 4 1 To 9 a Pe l n ee s e n u e Re q u i r e m e n t su o r s 6-1 1 29 , 9 7 0 Ne t Po w e r Co s t 13 NP C in c r e m e n t a l Sa v i n g s Fo o t n o t e 3 (1 7 , 0 9 0 ) SG 6 01 3 6 % (1 , 0 2 8 ) (6 0 . 7 4 6 ) SG 6.0 1 3 6 % (3 . 6 5 3 ) (4 0 , 9 8 9 ) SG 6 01 3 6 % (2 , 4 6 5 ) (4 1 , 5 3 7 ) SG 6 01 3 6 % (2 , 4 9 8 ) PT C Be n e f i t 14 PT C Be n e f i t Fo o t n o t e 3 (1 7 . 8 0 6 ) SG 6 01 3 6 % (1 , 0 7 1 ) (8 1 , 3 1 9 ) SG 6.0 1 3 6 % (4 , 8 9 0 ) (8 1 , 3 1 9 ) SG 6 01 3 6 % (4 , 8 9 0 ) (8 4 . 4 4 6 ) SG 6 01 3 6 % ! (5 , 0 7 8 ) 15 PT C Be n e f i t in Ba s e Ra t e s Fo o t n o t e 3 - SG 8 01 3 6 % - - SG 6.0 1 3 6 % - - SG 6 01 3 6 % - - SG 6. 0 1 3 6 % 76 Ne t PT C so m of lin e s 14 an d 15 (1 7 , 8 0 6 ) (1 , 0 7 1 ) (8 1 , 3 1 9 ) (4 , 8 9 0 ) (8 1 , 3 1 9 ) (4 , 8 9 0 ) (8 4 , 4 4 6 ) (5 , 0 7 8 ) 17 Gro s s - up fo r ta x e s lin e 16 ° (li n e 35 - 1) (1 0 , 8 9 0 ) (4 9 , 7 3 7 ) , (2 , 9 9 1 ) 18 PT C Re v e n u e Re q u i r e m e n t su m of fin e s T6 an d 17 (2 8 , 6 9 6 ) (1 , 7 2 6 ) (1 3 1 , 0 5 5 ) (7 , 8 8 1 ) (1 3 1 , 0 5 5 ) (7 , 8 8 1 ) (1 3 6 , 0 9 6 ) {8 , 1 8 4 ) 19 Re v . Re q u i r e m e n t su m of lin e s 12 , 13 , 18 (1 5 , 8 1 6 ) (9 5 1 ) 87 , 8 1 1 5,2 4 6 89 , 9 1 5 5,3 7 3 Ad j u s t m e n t fo r EC A M Pa s a - t h r o u g h 20 PT C Re v e n u e Re q u i r e m e n t lin e 18 (1 , 7 2 6 ) (7 . 8 8 1 ) (7 , 8 8 1 ) (8 , 1 8 4 ) 21 Pe r c e n t a g e in c l u d e d in EC A M (1 0 0 % ) ID EC A M Sh a r i n g % 10 0 % 10 0 % 10 0 % 10 0 % 22 EC A M Pa s s - t h r o u g h lin e 20 * fin e 2 1 (1 , 7 2 6 ) (7 , 8 8 1 ) (7 , 8 8 1 ) (8 , 1 8 4 ) 23 NP C In c r e m e n t a l Sa v i n g s lin e 13 (1 , 0 2 8 ) (3 , 6 5 3 ) (2 , 4 6 5 ) (2 , 4 9 8 ) 24 Pe r c e n t a g e in c l u d e d in EC A M (9 0 % ) ID EC A M Sh a r i n g % 90 % 90 % 90 % 90 % 25 EC A M Pa s s - t h r o u g h lin e 23 lin e 24 (9 2 5 ) (3 . 2 8 8 ) (2 , 2 1 8 ) (2 , 2 4 8 ) 26 Re v . Re g t . aft e r EC A M Pa s s - t h r o u g h fin e 19 - lin e 22 - fin e 2 5 27 To t a l De f e r r a l - ID Sh a r e lin e 26 28 Ne t Cu s t o m e r Be n e f i t su m of lin e s 22 , 25 , 27 De f e r r a l Ba l a n c e - ID Sh a r e 29 Be g i n n i n g De f e r r a l Ba l a n c e lin e 33 of pr e v i o u s ye a r - 1.7 0 0 17 , 2 2 1 22 , 1 5 6 30 Mo n t h l y De f e r r a l lin e 27 1,7 0 0 16 . 4 1 5 15 , 4 7 3 14 . 6 3 2 31 De f e r r a l Co l l e c t i o n Fo o t n o t e 3 - (9 9 2 ) (1 0 , 7 5 4 ) (2 0 , 1 0 0 ) En C d a r n g De eh r r Ba l a n c e Fo m o I n3 s 29 - 3 1 34 Fe d e r a l / S t a t e Co m b i n e d Ta x Ra t e Ex h i b i t 29 , lin e 5 37 . 9 5 1 % 35 Ne t to Gr o s s Bu m p up Fa c t o r = (1 / ( 1 - t a x ra t e ) ) Ex h i b i t 29 , lín e 6 1.6 1 1 6 36 De f e r r e d Ba l a n c e Ca r r y i n g Ch a r g e Fo o t n o t e 2 1 00 % Ca s e Nu m b e r GN R - U - 1 6 - 0 1 . Ord e r No . 33 6 6 4 37 Pre t a x Re t u r n Ex h i b i t 29 , lin e 4 10 . 6 8 1 % PA C - E - 1 5 - 0 9 Ca p i t a l Str u c t u r e & Co s t 38 Pr o p e r t y Ta x Ra t e Ex h i b i t 29 , Jin e 14 0 78 % Pr o p e r t y Ta x Ex p e n s e as a pe r c e n t of Ne t pla n t fro m PA C - E - 1 5 - 0 9 39 id a h o SG Fa c t o r Ex h i b i t 29 , lin e 15 6.0 1 3 6 % 40 Id a h o GP S Fa c t o r Ex h i b i t 29 , lin e 16 5.7 9 7 8 % Fo o t n o t e s : 1) Ca p i t a l ba l a n c e s eq u a l th e av e r a g e of th e mo n t h l y ba l a n c e s in Ex h i b i t 28 wit h a on e mo n t h de l a y 2) Ca r r y i n g Ch a r g e (lin e 29 ) is ap p l i e d to av e r a g e mo n t h l y de f e r r a l ba l a n c e s 3) Eq u a i s th e su m of ea c h ye a r ' s mo n t h l y va l u e s in Ex h i b i t 28 4) In c l u d e s Wh o l e s a l e Wh e e l i n g Re v e n u e of f s e t fo r tr a n s m i s s i o n as s e t cr e d i t alr e a d y in ba s e ra t e s