20170825Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 24,2017
SUBJECT:THE APPLICATION OF ROCKY MOUNTAIN POWER TO INCREASE
THE BPA REP CREDIT EFFECTIVE OCTOBER 2018 THROUGH
SEPTEMBER 2019, CASE NO. PAC-E-17-10.
On August 18, 2017, PacifiCorp dba Rocky Mountain Power applied to the
Commission for authorization to increase the Bonneville Power Administration (BPA)
residential and small farm energy credit rate. Application at l. The Company indicates that this
rate represents an increase in the annual credit of $648,000 to qualifying customers (that is, those
customers will receive an additional decrease in theirrates). Id. at3-4. The Companyrequests
that the new rate be effective October 1,2017 through September 30,2019, and requests that the
Application be processed under Modified Procedure. Id. at 5.
The Company explains that the residential and small farm energy credit rate results
from an agreement between the Company and BPA regarding the Residential Exchange
Program. Id. The Residential Exchange Program provides a share of the benefits of the federal
Columbia River power system to the residential and small farm customers of the investor-owned
utilities of the Pacific Northwest, including Rocky Mountain Power. Id. at2.
The Company's current residential and small farm credit rate is $0.007762 per kWh.
Id. at3. The proposed credit rate is $0.008403 per kWh. Id. The proposed rate includes annual
benefits from BPA of $6.7 million plus an additional undistributed balance in the Company's
Idaho residential exchange balancing account of $1.8 million annually. Id. Thus, the annual
total credit to customers is $8.5 million, an increase of $648,000 over the current credit. Id. The
DECISION MEMORANDUM I
Company calculated the proposed credit rate of $0.008403 by dividing $8.5 million by the
calendar year 2016 historical usage level of qualiffing customers of L0 I GWh. Id. at 4.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due September 20,2017. The Company did not object to
Stafls proposal to not have a reply deadline in this case.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due September 20,2017?
Camille Christen
Deputy Attorney General
M:PAC-E- l 7- l0_cc
2DECISION MEMORANDUM
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