20190813Application.pdf

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1407 W. North Temple, Suite 310
Salt Lake City, Utah 84116
August 13,2019
OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washin$on
Boise,ID 83702
RE: CASE NO. PAC-E-19-10
IN THE MATTER OF TIIE APPLICATION OF ROCKY MOUNTAIN POWER
PROPOSING TO MAINTAIN TITE CURRENT BPA REP CREDIT EFFECTIVE
OCTOBER 2019 THROUGH SEPTEMBER 2021
Attention: Diane Hanian
Commission Secretary
Please find enclosed for filing an original and seven (7) copies of Rocky Mountain Power's
Application in the above-referenced matter.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.
Very truly yours,
Vice "^,"D
Daniel E. Solander (ISB# 8931)
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
E-mail: daniel.solander@f'acificorp.com
Attorneyfor Rocly Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. PAC-E-19-10
oF ROCKY MOUNTAIN POWER )
PROPOSING TO MAINTAIN THE ) APPLICATION OF
CURRENT BPA REP CREDIT EFFECTIVE ) ROCKY MOUNTAIN POWER
ocToBER 2019 THROUGH SEPTEMBER )2021 )
Rocky Mountain Power, a division of PacifiCorp ("Company" or "Rocky Mountain Power"),
in accordance with Idaho Code $61-502, $61-503, and RP 052, hereby respectfully submits
this application ("Application") to the Idaho Public Utilities Commission ("Commission") to
maintain the Bonneville Power Administration's residential and small farm credit at its current
level. In support of this Application, Rocky Mountain Power states as follows:
l. Rocky Mountain Power is a division of PacifiCorp, an Oregon corporation,
which provides electric service to retail customers through its Rocky Mountain Power division
in the states of Idaho, Utah, and Wyoming. Rocky Mountain Power is a public utility in the
state of ldaho and is subject to the Commission's jurisdiction with respect to terms of electric
service and prices to retail customers pursuant to Idaho Code 61-129. Rocky Mountain Power
is authorized to do business in the state of Idaho and provides retail electric service to
approximately 81,000 customers in the state.
Page I
BACKGROUND
2. The Northwest Power Act of 1980 created the Residential Exchange Program
("REP"), which is administered by Bonneville Power Administration ("BPA"). The REP
allows participating utilities to pass the benefits of the low-cost Federal Columbia River Power
System to eligible residential, small farm and irrigation customers through credits on their
power bills.
3. Rocky Mountain Power and BPA are parties to the REP Settlement
Implementation Agreement under BPA Contract. Through this agreement, BPA provides REP
benefits to the Company, which passes those benefits through to its residential, small farm and
irrigation customers in Idaho, Oregon, and Washington.
4. Under the terms of the agreement, BPA has the right to review the Company's
eligible loads and make determinations regarding the benefit eligibility of Rocky Mountain
Power's customers. BPA has developed Customer Load Eligibility Guidelines ("CLEG") to
provide guidance to participating utilities to help determine whether residential, small farm,
and irrigation customers are eligible to receive REP benefits.
5. For purposes of the REP, BPA has provided the following definitions: (l) A
residence is a structure used by one or more persons for daily living and associated activities;
(2) A residence is eligible for REP benefits as long as its purpose is to provide shelter on a
non-transient basis (greaterthan 30 days); (3) Afarm consists of one or more parcels of land
owned or leased by one or more persons or entities (including partnerships, corporations, and
any legal entity capable of owning farm land except the government as defined in the CLEG)
that is used primarily for agriculture; (4) Irrigation/pumping load used for farming and
agricultural purposes may receive REP benefits for up to a maximum of 222,000 kilowatt-
Page2
hours per month per farm owner; and (5) Two or more parcels of farm land under the same
ownership within the utility's service area, whether contiguous or non-contiguous, are treated
as a single farm.
6. In 2001, parties in the BPA REP case negotiated a settlement of the REP benefits
covering the period from2002 through 2008. This settlement was later appealed by a group of
northwest public utility districts, ("PUD"), claiming that the settlement did not follow BPA's
prescribed procedures for calculating the REP credits and that the settlement provided too large
a share of the REP benefits to the investor owned utilities. The court ruled in favor of the PUDs
appeal and ordered the parties to recalculate the REP benefits based on the BPA's proscribed
methodology. Allocation of the BPA's REP credit was recalculated and the participating
investor owned utilities were order to pay back the excess benefits received.
7. During these proceedings, the Company continued to provide Schedule No. 34
- Pacific Northwest Electric Power Planning and Conservation Act Residential and Farm
Kilowatt-Hour Credit to customers, ultimately allocating to customers more benefits than the
Company received, creating a credit balance owed to the Company. From 2007 until
December 1,2011, the BPA REP was cancelled for Rocky Mountain Power's customers in
Idaho. After years of negotiations an agreement was reached where the look back payment
could be netted against the REP benefits through 2021 allowing the investor owned utilities to
provide a small credit to qualifying customers.
BPA REP RATE
8. Currently Electric Service Schedule No. 34 - Pacific Northwest Electric Power
Planning and Conservation Act Residential and Farm Kilowatt-Hour Credit is $0.008403 per
kWh. This credit was established in 2017 based on an annual BPA REP credit of S8.5 million.
Page 3
This Application requests authorization to keep Schedule No. 34 rate at $0.008403 per kWh,
effective October 1,2019 through September 30,2021, based on an annual BPA REP credit of
$8.2 million.
9. BPA issued the final Average System Cost ("ASC") report for the REP for fiscal
year 2020 through 2021 (October 2019 through September 2021). While PacifiCorp's ASC
decreased slightly from two years ago, the other investor-owned utilities ("IOUs") ASC
increased, resulting in a lower allocation of REP benefits for PacifiCorp's customers. A
comparison of the ASC for the six northwest IOUs is provided in Table 1.
Table 1
FY2020-21 FY2018-19 Incr/@ecr)
Avista $
Idaho Power S
NorthWestern Energy $
PacifiCory $
Portland General Electric $
PugetSound $
67.60
64.41
82.91
79.43
77.53
75.72
$ s4.67
$ 63.0e
$ 78.46
$ 79.ss
$ 7s.76
$ 71.13
12.93
1.32
4.45
(0.12)
1.77
4.59
$
$
$
$
$
$
10. Idaho's 2019 -2021 annual BPAREP benefit is $7.8 million, which is reduced
by the look-back payment of $1.2 million leaving a credit of $6.6 million to be passed onto
customers. In addition, there is a $3.3 million undistributed balance in ldaho's REP balancing
account or $1.6 million per year. This provides an annual balance of $8.2 million available to
be distributed to qualiffing customers. This amount was divided by calendar year 2018
historical usage level of the qualifying customers of 1.0 GWh, to produce the Schedule No. 34
rate of $0.008156 per kWh.
11. Due to the reduced allocation of REP benefits to PacifiCorp the rate design
results in a slight rate decrease. However, this minor change to rates would only change the
allocation of REP benefits to customers by less than $250,000 per year. Therefore the Company
Page 4
is proposing that the rate for Electric Service Schedule 34 should remain at $0.008403 per
KWh atthis time.
RETAIL RATE DESIGN
12. If the Commission does not approve the Company's request and determined to
decrease the REP credit to customers the Company has provided three attachments for
informational purposes: Attachment I summarizes the incremental increase to retail revenues
of approximately $248,000 by rate schedule, if a rate change to Schedule 34 was implemented;
Attachment 2 summarizes what the calculation of Schedule No. 34 rate would be; and
Attachment 3 is a summary of the allocation between PacifiCorp states of the BPA REP
benefits.
COMMUNICATIONS
13. Communications regarding this filing should be addressed to:
Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake city, utah 84116
Telephone: [phone]
Email : ted.weston@nacifi corp.com
Daniel E. Solander,
Senior Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake Ciry, Utah 841l6
Telephone: [phone]
Email : daniel.solander@nacifi corp.com
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following:
Page 5
By email (preferred): [e-mail]
By regular mail:Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
Informal questions may be directed to Ted Weston, Idaho Regulatory Affairs Manager
at [phone].
MODIFIED PROCEDURE
14. Rocky Mountain Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed under
Modified Procedure; i.e., by written submissions rather than by hearing, RP 201. If, however,
the Commission determines that a technical hearing is required, the Company stands ready to
prepare and present testimony in such hearing.
REOUEST FOR RELIEF
15. The Company respectfully requests that the Commission issue an order
approving no change to the current Electric Service Schedule 34 credit of $0.008403 per kWh
for rate schedules l, 6A,7A,23A,35A,36, and 19 (with 6,4., 23A, and 35A) and this rate
should remain effective October 1,2019, through September 30,2021.
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission
issue an order authorizingthat this matter be processed under Modified Procedure and approve
no change to Electric Service Schedule No. 34, Pacific Northwest Electric Power Planning and
Conservation Act Residential and Farm Kilowatt-Hour Credit, with an October 1,2019, rate
effective date.
Page 6
DATED this 13ft day ofAugust 2019
Respectfully submitted,
ROCKY MOUNTAIN POWER
DanielE. Solander
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
E-mail: [e-mail]
Attorneyfor Roclqt Mountain Power
Page 7
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