20170818Application.pdf

ROCKY MOUNTAIN
HP,Iy,m"*
August 18,2017
OVERNIGHT DELIVERY
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;;ll ; :i:l l$ I'l't $, lI
1407 W. North Temple, Suite 310
Salt Lake City, Utah 84116
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Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise,lD 83702
RE: CASE NO. PAC-E-17-10
IN TIIE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER TO
INCREASE THE BPA REP CREDIT EFFECTIVE OCTOBER 2018 THROUGH
SEPTEMBER 2019
Attention: Diane Hanian
Commission Secretary
Please find enclosed for filing an original and seven copies of Rocky Mountain Power's
Application in the above-referenced matter.
Informal inquiries may be directed to Ted Weston, ldaho Regulatory Manager at [phone]
Very truly yours,
Jeffrey K. Larsen
Vice President, Regulation
Enclosures
Daniel E. Solander (ISB# 8931)
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
E-mail : [e-mail]
Attorneyfor Roclry Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER TO
INCREASE THE BPA REP CREDIT
EFFECTIVE OCTOBER 2018 THROUGH
SEPTEMBER 2019
) CASE NO. PAC-E-17-10
)) APPLTCATTON OF
) ROCKY MOUNTATN POWER
)
)
Rocky Mountain Power, a division of PacifiCorp ("Company" or "Rocky Mountain Power"), in
accordance with Idaho Code $61-502, $61-503, and RP 052, hereby respectfully submits this
application ("Application") to the Idaho Public Utilities Commission ("Commission") to increase
the Bonneville Power Administration's residential and small farm credit. In support of its
Application, Rocky Mountain Power states as follows:
l. Rocky Mountain Power is a division of PacifiCorp, on Oregon corporation, which
provides electric service to retail customers through its Rocky Mountain Power division in the
states of ldaho, Utah, and Wyoming. Rocky Mountain Power is a public utility in the state of
Idaho and is subject to the Commission's jurisdiction with respect to its prices and terms of electric
service to retail customers in Idaho pursuant to Idaho Code 61-129. Rocky Mountain Power is
authorized to do business in the state of Idaho and provides retail electric service to approximately
75,000 customers in the state.
Page I
BACKGROUND
2. The Northwest Power Act of 1980 created the Residential Exchange Program
(REP), which is administered by Bonneville Power Administration (BPA). The REP allows
participating utilities to pass the benefits of the low-cost Federal Columbia River Power System
to eligible residential, small farm and irrigation customers through credits on their power bills.
3. Rocky Mountain Power and BPA are parties to the REP Settlement
Implementation Agreement under BPA Contract. Through this agreement, BPA provides REP
benefits to the Company, which passes those benefits through to its residential, small farm and
irrigation customers in Idaho, Oregon, and Washington.
4. Under the terms of the agreement, BPA has the right to review the Company's
eligible loads and make determinations regarding the benefits eligibility of Rocky Mountain
Power's customers. BPA has developed Customer Load Eligibility Guidelines (CLEG) to provide
guidance to participating utilities to help determine whether residential, small farm, and
irrigation customers are eligible to receive REP benefits.
5. For purposes of the REP, BPA has provided the following definitions: A residence
is a structure used by one or more persons for daily living and associated activities. A residence
is eligible for REP benefits as long as its purpose is to provide shelter on a non-transient basis
(greater than 30 days). A farm consists of one or more parcels of land owned or leased by one or
more persons or entities (including partnerships, corporations, and any legal entity capable of
owning farm land except the govemment as defined in the CLEG) that is used primarily for
agriculture. Irrigation/pumping load used for farming and agricultural purposes may receive REP
benefits for up to a maximum of 222,000 kilowatt-hours per month per farm owner. Two or more
Page2
parcels of farm land under the same ownership within the utility's service area, whether
contiguous or non-contiguous, are treated as a single farm.
6. In 2001, parties in the BPA REP case negotiated a sefflement of the REP benefits
covering the period from2002 through 2008. This settlement was later appealed by a group of
northwest public utility districts, ("PUD"), claiming that the settlement did not follow the BPA s
prescribed procedures for calculating the REP credits and that the settlement provided too large a
share of the REP benefits to the investor owned utilities. The court ruled in favor of the PUDs
appeal and order the parties to recalculate the REP benefits based on the BPA's proscribed
methodology. Allocation of the BPA s REP credit was recalculated and the participating investor
owned utilities were order to pay back the excess benefits received.
7. For a while during these proceedings the Company continued to provide Schedule
No. 34 - Pacific Northwest Electric Power Planning and Conservation Act Residential and Farm
Kilowatt-Hour Credit to customers ultimately allocating to customers more benefits than the
Company received creating a credit balance owed to the Company. From 2007 until December l,
201l, the BPA REP was cancelled for Rocky Mountain Power's customers in ldaho. After years
of negotiations, an agreement was reached where the look back payment could be netted against
the REP benefits through 2019 allowing the investor owned utilities to provide a small credit to
qualifying customers.
PROPOSED BPA REP RATE
8. Currently the Schedule No. 34 - Pacific Northwest Electric Power Planning and
Conservation Act Residential and Farm Kilowatt-Hour Credit is $0.007762 per kWh. This credit
was established in 2015 based on an annual BPA REP credit of $7.8 million. ThisApplication
seeks authorization to increase the Schedule No. 34 rate to $0.008403 per kWh, effective October
Page 3
l, 2017 through September 30, 2019, based on an annual BPA REP credit of $8.5 million,
increasing the annual customer benefit by approximately $648,000.
9. Idaho's 2018 - 2019 annual BPA REP benefit is $9.1 million, which is reduced by
the look-back payment of $2.4 million leaving a credit of $6.7 million to be passed onto customers.
In addition, there is an undistributed balance in Idaho's REP balancing account of $3.6 million or
$1.8m per year. This provides an annual balance of $8.5 million available to be distributed to
qualifying customers. This amount was divided by calendar year 2016 historical usage level of the
qualifying customers of 1.01 GWh, to produce the Schedule No. 34 rate of $0.008403 per kWh.
RETAIL RATE DESIGN
10. There are four attachments provided with this Application: Attachment I
summarizes the incremental reduction to retail revenues collected from customers, by rate
schedule, of approximately $648,000;Attachment 2 summarizes the calculation of the proposed
Schedule No. 34 rate;Attachment 3 is a summary of the allocation between PacifiCorp states of
the BPA REP benefits; and Affachment 4 contains clean and legislative copies of Electric Service
Schedule No. 34 - Pacific Northwest Electric Power Planning and Conservation Act Residential
and Farm Kilowatt-Hour Credit.
COMMUNICATIONS
I l. Communications regarding this filing should be addressed to:
Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake ciry, Utah 84116
Telephone : [phone]
Emai I : ted.weston@f acifi corp.com
Page 4
Daniel E. Solander,
Senior Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
salt Lake city, Utah 84116
Telephone: (80 l) 220-40 l4
Email : daniel.solander@nacifi corp.com
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following:
By email (preferred) : datarequest@pacifi corp.com
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
Informal questions may be directed to Ted Weston, Idaho Regulatory Affairs Manager at
(80r)220-2963.
MODIFIED PROCEDURE
12. 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. If, however, the
Commission determines that a technical hearing is required, the Company stands ready to prepare
and present its testimony in such hearing.
REOUEST FOR RELIEF
13. The Company respectfully requests that the Commission issue an order approving
a per kilowatt-hour residential and small farm energy rate of $0.008403 per kWh for rate schedules
l, 64, 7A,23A,35A,36, and 19 (with 6,4., 23A, and 35A) effective October 1,2017 through
September 30,2019.
Page 5
14. WHEREFORE, Rocky Mountain Power respectfully requests that the Commission
issue an order authorizing that this matter be processed under Modified Procedure and approving
Electric Service Schedule No. 34, Pacific Northwest Electric Power Planning and Conservation
Act Residential and Farm Kilowatt-Hour Credit, provided as Attachment 5, with an October 1,
2017 rute effective date.
DATED this I 8th day of Augu st,20l7
Respectfully submitted,
ROCKY MOLTNTATN POWER
1,hh\
Daniel E. Solander
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
E-mai I : [e-mail]
Attorneyfor Roclry Mountain Power
Page 6
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ROCKY MOUNTAIN
Po\AIER
A Or\nSro}ri OF mOflCORP
I.P.U.C. No. 1
Sixth Revision of Sheet No. 34.1
Canceling Fifth Revision of Sheet No. 34.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.34
STATE OF IDAHO
Pacific Northwest Electric Power Planning and Conservation Act
Residential and Farm Kilowatt-Hour Credit
APPLICATION AND AVAILABILITY: This Schedule is applicable and available to qualifying
Residential and/or Farm Customers of the Company under the jurisdiction of the Idaho Public Utilities
Commission.
MONTHLY RATES: The monthly charges for service under each of the Electric Service
Schedules shown below shall be reduced by the appropriate kilowatt-hour credit for all qualifying kilowatt-
hours ofresidential and/or farm use.
Kilowatt-Hour Credit Adj ustments :
Irrigation Customers:
Schedule No. 10
$0.008403 per kWh
Non-lrrigation Customers: $0.008403 per kWh
Schedule Nos. 1, 64, 7 A, 234
35A,36,19 with 64
19 with 23A,19 with 35A
Submitted Under Case No. PAC-E-17-10
ISSUED: August 18,2017
(continued)
EFFECTM: October 1, 2017
Y ROCKY MOUNTAIN
POAIER
A OrVtSrOr{ Or arclFIQoBP
I.P.U.C. No. I
Sifthsixth Revision of Sheet No. 34.1
Canceling @!$l Revision of Sheet No. 34.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.34
STATE OF IDAHO
Pacific Northwest Electric Power Planning and Conservation Act
Residential and Farm Kilowatt-Hour Credit
APPLICATION AND AVAILABILITY: This Schedule is applicable and available to qualifying
Residential and/or Farm Customers of the Company under the jurisdiction of the Idaho Public Utilities
Commission.
MONTHLY RATES: The monthly charges for service under each of the Electric Service
Schedules shown below shall be reduced by the appropriate kilowatt-hour credit for all qualifying kilowatt-
hours ofresidential andlor farm use.
Kilowatt-Hour Credit Adj ustments :
Irrigation Customers:
Schedule No. 10
$0.00!3t93s62 per kWh
Non-Irriqation Customers: $0.0094037%g per kWh
Schedule Nos. l, 6A,7A,23A
35A,36,19 with 6,4'
19 with 23A,19 with 35A
(continued)
Submiued Under /rd\i€e+b-+544case No. PAC-E- I 7- 1 0
ISSUED: August ?4.J0{s]8.20n EFFECTryE: October l,*+W7