20200828Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER AI\DERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 27,2020
SUBJECT: ROCKY MOUNTAIN POWER,S APPLICATION FOR AUTHORIZATION
TO CHANGE DEPRECIATION RATES FOR ELECTRIC PROPERTY;
CASE NO. PAC.E.18.O8
On September ll, 2018, Rocky Mountain Power, a division of PacifiCorp
("Company") asked the Commission to approve the Company's proposed changes to depreciation
rates for its electric plant. The Commission approved the Company's last depreciation case, PAC-
E-13-02, in2013.
On October 5,2018, the Commission issued a Notice of Application and Notice of
Intervention Deadline directing Staff and parties to discuss scheduling.
Monsanto, PacifiCorp Idaho lndustrial Customers ("PI[C"), Idaho lrrigation Pumpers
Association, Inc., ("IIPA"), Sierra Club, and Idaho Conservation League ("ICL") (collectively the
"Parties") intervened.
On April 18,2018, a technical conference was held in Boise, followed by several
meetings and conference calls where the Parties discussed settlement possibilities.
On January 17,2020,the Company filed a supplemental confidential decommissioning
study pursuant to Section 4.3. I . I of the 2020 PacifiCorp Inter-Jurisdictional Allocation Protocol. I
On March 16, 2020, the Company filed a second supplemental confidential
decommissioning study that included decommissioning costs for the Colstrip plant. (Collectively,
the supplemental decommissioning studies filed on January 17, 2020 and March 16, 2020 are
referred to as the *2020 Decommissioning Studies.")
I In Section 4.3 .l .l of the 2020 Inter-Jurisdictional Allocation Protocol, the Company agreed to file the results of the
contractor-assisted engineering study of decommissioning costs for the Jim Bridger, Dave Johnston, Hunter,
Huntington, Naughton, Wyodak, and Hayden coal plants in all applicable depreciation dockets.
DECISION MEMORANDUM I
On June 15,2020, the Company filed a proposed Settlement Stipulation ("Settlement
Stipulation") for Phase 12 signed by the Company, Staff, Monsanto, PIIC, and IIPA (collectively
the "stipulating Parties";3. In the Settlement Stipulation, the Stipulating Parties also requested the
Commission establish a Phase II to facilitate further review ofthe regulatory treatment of the2020
Decommissioning Studies. The Stipulating Parties noted they would affempt to complete Phase II
in time to allow the Commission to issue a final order before December 31,2020.
On August 18,2020, the Commission issued a final order for Phase [, resolving all
depreciation related issues except decommissioning costs. ,See Order No. 34754.
On August 19, 2020, the Parties met to discuss issues reserved for Phase [I and
proposed scheduling. The Parties agreed to work towards a proposed settlement agreement on the
2020 Decommissioning Studies. The Parties agreed to a September 22,2020 proposed settlement
deadline. The Parties further agreed to attempt to settle Phase II by the Commission's settlement
deadline. But if the Parties cannot reach a sefflement, they would submit comments on the 2020
Decommissioning Studies. The Parties agreed Phase II should be processed by Modified Procedure
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Proposed Settlement Deadline
establishing a September 22,2020 deadline for the Parties to file a proposed settlement, if any.
Staff also recommends the Commission issue a Notice of Modified Procedure establishing an
October 14, 2020 public comment deadline and an October 28,2020 reply deadline allowing
Parties to file comments in support of a proposed settlement agreement, if one is reached, or
regarding the2020 Decommissioning Studies if no proposed settlement can be reached.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Proposed Settlement Deadline
establishing a September 22,2020 deadline for the Parties to reach a proposed settlement and a
Notice of Modified Procedure establishing an October 14,2020 public comment deadline and an
October 28,2020 reply deadline?
Dayn
Deputy Attorney General
I:\I*gaI\ELECTRIC\PAC-E- I 8-08\remos\PACE I 808-d*3-dh.d@
2 Phase I resolved all depreciation issues except decommissioning costs.
3 Idaho Conservation League is not a Stipulating Party but does not oppose the Settlement Stipulation.
DECISION MEMORANDUM 2