20180419notice_of_application_order_no_34038.pdf

Office of the Secretary
Service Date
April 19,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.PAC-E-18-01
OF ROCKY MOUNTAIN POWER )REQUESTINGAPPROVAL OF $7.8 )NOTICE OF APPLICATION
MILLION NET POWER COST DEFERRAL )WITH NO CHANGE TO RATES )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34038
On March 30,2018,Rocky Mountain Power applied for approval of $7.8 million in
deferred costs,plus interest,from the deferralperiod beginning January 1,2017 through December
31,2017.The Application is made pursuant to the Company's approved energy cost adjustment
mechanism (ECAM).The Company is not seeking a change in rates at this time.The Commission
now issues this Notice of Application and Notice of Modified Procedure setting comment and
reply deadlines in this matter.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the ECAM allows the Company to collect or
credit the difference between the actual net power costs (NPC)"incurred to serve customers in
Idaho and the NPC collected from Idaho customers through rates set in general rate cases."
Application at 2.On a monthlybasis,the Company compares the actual system NPC to the NPC
embedded in base rates and "defers the difference into the ECAM balancing account."Id at 2-3.
The ECAM also includes Load Change Adjustment Revenues (LCAR),which account for over-
or under-collection of the Company's energy-relatedproduction revenue requirement (excluding
NPC)due to variations in Idaho load.Id at 3,5.In addition,it includes an adjustment related to
the accounting treatment of coal-stripping costs.Id at 3.Pursuant to the ECAM's sharing band,
90%of the above costs are allocated to customers and 10%are allocated to the Company.Id The
ECAM also includes Deer Creek Mine amortization expense;a resource adder for Lake Side 2;a
true-up between actual Production Tax Credits (PTC)and Renewable Energy Credits (REC)and
the PTCs and RECs included in base rates;and interest.Id at 3-4,6.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34038 1
YOU ARE FURTHER NOTIFIED that the Company explains that its requested
deferral amount includes the following:
-approximately $2.1 million for the difference between actual NPC and that included
in base rates,90%of which is allocated to customers and 10%to the Company;
-a credit of approximately $1.5 million for LCAR,90%of which is allocated to
customers and 10%to the Company;
-a credit of $93,048 related to the accounting treatment of coal-stripping costs,90%
of which is allocated to customers and 10%to the Company;
-approximately $1.3 million for the Deer Creek Mine amortization;
-approximately $4.1 million for the Lake Side 2 resource adder;
-approximately $1.8 million for the PTC true-up;and
-approximately $0.72 million for the REC true-up.
Id at 5-6.
YOU ARE FURTHER NOTIFIED that,in sum,the Company requests approval of a
deferral balance of $7.8 million for the period January 1,2017 through December 31,2017.This
would be added to the existing approved deferral balance of $2.3 million,for a total of $10.1
million.Id at 6.The Company requests no changes in rates.Id
YOU ARE FURTHER NOTIFIED that the Application and supporting documentation
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_w.gue.idaho.gov.Click on the "File Room"tab at the top of the
page,then select "Electric Cases"and click on the case number as shown on the front of this
document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§61-502 and 61-503.The Commission may enter any final order consistent with its
authorityunder Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34038 2
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 Commission's Rules of Procedure,IDAPA
31.01.01.201 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 this
Application may file a written comment in support or opposition with the Commission no later
than May 16,2018.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 this Application shall be mailed to the Commission and the Company at the
addresses reflected below:
Commission Secretary Ted Weston,Suite 330
Idaho Public Utilities Commission Idaho Regulatory Affairs Manager
PO Box 83720 and
Boise,ID 83720-0074 Yvonne Hogle,Suite 320
Assistant General Counsel
Street Address for Express Mail:Rocky Mountain Power
1407 West North Temple
472 W.Washington Street Salt Lake City,UT 84116
Boise,ID 83702-5918 E-mail:twificorisom
yvonnelmle@pacificoriscom
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 www.gu_c.idalxygov.Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than May 23,2018.
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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34038 3
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 the Application of Rocky Mountain Power be
processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested
in submitting written comments must do so no later May 16,2018.The Company may file a reply
no later than May 23,2018.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /Î
day of April 2018.
PAUL KJELI AN ,PRESIDENT
KR STINE RAPER,OM SSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
PACEIBUI nicappmodproced oc
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34038 4