20180413Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: APRIL 13,2018
SUBJECT:IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAINpowER REQUESTING APPROVAL OF $7.8 MTLLION NET POWER
COST DEFERRAL WITH NO CHANGE TO RATES,
CASE NO. PAC-E.18.01
On March 30,2018, Rocky Mountain Power applied for approval of $7.8 million of
deferred costs, plus interest, from the deferral period beginning January l, 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 Company explains that the deferral amount includes a difference of about $2.1
million between actual net power costs and the net power costs included in base rates. It also
includes a credit of about $1.5 million in load change adjustment revenues, which account for
over- or under-collection of the Company's energy-related production revenue requirement
(excluding net power costs) due to variations in Idaho load. In addition, it includes a credit of
$93,048 related to the accounting treatment of coal-stripping costs. Pursuant to the ECAM's
sharing band, 90%o of the above costs are allocated to customers and l0o/o are allocated to the
Company.
The deferral amount also includes approximately $4.1 million associated with the
Lake Side 2 resource adder and $1.8 million for the difference between actual production tax
credits and those included in base rates. In addition, it includes Deer Creek mine depreciation of
$1.3 million and $0.72 million for the difference between actual renewable energy credit revenue
and that included in base rates, due to actual revenue being lower. In sum, the Company requests
approval of a total of $7.8 million in deferred costs, plus interest, which will be added to an
DECISION MEMORANDUM I
existing approved deferral balance of $2.3 million, for a total deferral balance of approximately
of $10.1 million.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due May 16,2018, and reply comments, if any, due May
23.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, with comments due May 16, 2018, and reply comments, if any, due May 23?
lrrriJL lJ*d"^-
Camille Christen
Deputy Attorney General
I:\LegaI'\ELECTRIC\PAC-E-l 8-0 l\I,lemos\PACE I 80 l_ccl_dec memo_not of app doc
2DECISION MEMORANDUM