20180928Decision Memo.pdf

DECTSION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMIVilSSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: SEPTEMBER 26,2018
SUBJECT:APPLICATION OF ROCKY MOUNTAIN POWER FOR
AUTHORIZATION TO CHANGE DEPRECIATION RATES
APPLICABLE TO ELECTRIC PROPERTY; CASE NO. PAC-E-18-08.
On September 11, 2018, Rocky Mountain Power, a division of PacifiCorp ("Rocky
Mountain Power" or "Company") filed an Application seeking approval of its proposed changes
to depreciation rates applicable to the Company's electric plant. The Company's last depreciation
case, PAC-E-13-02, was approved by the Commission in 2013.
THE APPLICATION
Rocky Mountain Power states that approval of its Application would increase the
Company's annual depreciation expense by approximately $14.1 million on an Idaho basis.
Application at 3-4. Rocky Mountain Power states that approval of its request to end its excess
reserve amortizations would increase the Company's depreciation expense by approximately $3.2
million on an Idaho basis. Id. at 4. Rocky Mountain Power states that approval of its request to
increase its incremental rate from the 2013 study would increase the Company's d'epreciation
expense by approximately $2.0 million on an Idaho basis. Id.ln total, Rocky Mountain Power's
proposed changes would increase the Company's Idaho jurisdictional depreciation expense by
$19.3 million. Id. The Company requests the proposed depreciation rates be made effective
January 1, 2021. Id. at 2.
The Company does not request, as part of this filing, that new depreciation rates
approved in this case be reflected in tariff prices at this time. Id. at 4. The Company intends to
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include impacts from any changes to its depreciation schedule in a future regulatory proceeding
with the Commission. Id.
The Company represents that it has filed the Depreciation Study that it relies on in this
Application in all six of its state service territories. Id. at5.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Intervention Deadline. Staff recommends setting an intervention deadline 21 days after the service
date of such Order.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Intervention
Deadline that establishes an intervention deadline 21 days after the service date of such Order?
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Deputy Attorney General
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