20190930final_order_no_34450.pdf

Office of the Secretary
Service Date
September 30,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF ROCKY MOUNTAIN POWER TO )CASE NO.PAC-E-19-10
MAINTAIN ITS CURRENT BPA )RESIDENTIAL EXCHANGE PROGRAM )CREDIT FROM OCTOBER 1,2019 )ORDER NO.34450
THROUGH SEPTEMBER 30,2021 )
On August 13,2019,PacifiCorp dba Rocky Mountain Power ("Company")applied to
the Commission requesting an order approving the Company's Application to maintain its current
Schedule 34-Pacific Northwest Electric Power Planning and Conservation Act Residential and
Farm Kilowatt-Hour Credit ("Schedule 34").Consumers would continue to receive a rate credit of
$0.008403 per Kilowatt-Hour ("kWh")under the proposal.Application at 4.The Company
requested that the unchanged rate be effective October 1,2019 through September 30,2021,and
requested that the Application be processed under Modified Procedure.Id.at 4 and 6.
On August 30,2019 the Commission issued a Notice of Application and Notice of
Modified Procedure setting public and Company reply deadlines.Order No.34432.Commission
Staff timely filed comments.No other comments were received.
Having reviewed the Application,attachments,and comments,the Commission enters
this Order approving Rocky Mountain Power's Application to maintain its current Schedule 34
credit rate to be effective October 1,2019 through September 30,2021.The Commission's
decision is set out more fully below.
BACKGROUND
This Application results from the Bonneville Power Administration's ("BPA")
Residential Exchange Program ("REP").The REP was established by Section 5(c)of the
Northwest Electric Power Planning and Conservation Act.16 U.S.C.§839c(c).That section
makes low-cost power from the federal Columbia River power system available to investor-owned
utilities in the Northwest.See Assoc.of Pub.Agency Customers v.Bonneville Power Admin.
(APA Cv.BPA),733 F.3d 939,945 (9th Cir.2013).The statute permits utilities to "exchangepower
they have purchased or generated for lower-cost power generated by BPA."Portland General
Elec.Co.v.Bonneville Power Admin.(PGE v.BPA),501 F.3d 1009,1015 (9th Cir.2007).The
exchange is a paper transaction--a utility may offer to sell power to BPA at the utility's average
ORDER NO.34450 1
system cost ("ASC")for producing power,which BPA compares to a Priority Firm ("PF")
Exchange Rate that BPA calculates for purposes of the exchange.See id.,APAC v.BPA,733 F.3d
at 945-46.If BPA's PF Exchange Rate is lower than the utility's ASC,then the utility is entitled
to a benefit from BPA.APAC v.BPA,733 F.3d at 946.Generally,the utility benefit is the
difference between BPA's PF Exchange Rate and the utility's ASC,multiplied by the utility's
residential load.Id.at 945.The utility must pass the benefit on to its qualifying(residential and
small farm)customers.See id.(citing 16 U.S.C.§839c(c)(3)).The implementation of the
exchange has been litigated over the years;the current implementation results from a settlement
that took effect in 2012.See id.at 946-47 (describing litigation and settlement).
THE APPLICATION
The Application summarized the REP and described the customers eligible to receive
the REP credit.Application at 2-3.
The Company's current Schedule 34 credit is $0.008403 per kWh.Id.at 3.The
Company proposed to maintain a rate credit of $0.008403 per kWh during the upcoming October
1,2019 through September 30,2021 REP credit period.Id.
The Company proposed to distribute $8.2 million in REP credits annually to its
Schedule 34 customers.The proposed rate credit includes $7.8 million in annual REP benefits
from BPA plus $1.6 million from the undistributed balance in the Company's IdahoREP balancing
account,reduced by the look-back payment of $1.2 million.
According to the Company's rate design,using 1.0 Gigawatt-Hour as the historical
usage level of Schedule 34 customers,together with its proposed REP credit of $8.2 million,the
REP credit would be $0.008156 per kWh,instead of the $0.008403 per kWh as proposed.
However,because the credit change would be minor,the Companyrequested authority to maintain
the same credit rate it used during the October 1,2017 through September 30,2019 REP period.
As proposed,the Company would over-refund approximately $248,000 annuallyto Schedule 34
customers during the October 1,2019 through September 30,2021 REP period.
The Company's Application includes attachments which provide supporting
documentation,including:a summary of the impact on retail revenues (Attachment 1);a summary
of the calculation of the proposed credit rate (Attachment 2);and a summary of the allocation of
PacifiCorp's BPA REP benefits between the states in which PacifiCorp operates (Attachment 3).
Id.
ORDER NO.34450 2
STAFF COMMENTS
Staff reviewed the Company's Application and attachments and confirmed the
Company's proposed REP credit rate for the October 1,2019 through September 30,2021 period
was reasonable.Staff Comments at 2.Staff confirmed the Company correctly calculated the rate
of $0.008 156 per kWh based on the BPA REP credit and that maintaining a rate credit of
$0.008403 per kWh would be reasonable given the nominal changes under the Company's
proposal.Id.Staff verified the Company's customers would pay slightly lower bills if the current
credit is maintained as opposed to the recalculated credit.Id.Staff calculated the difference
between maintaining the REP credit,as proposed,and using the recalculated REP credit.By
maintaining a REP credit of $0.008403,the average residential customer's bill would be $0.20
less per month,or $2.40 annually according to Staff's calculations.Id.Staff verified that
maintaining the REP credit at $0.008403 would over-refund Schedule 34 customers by
approximately $248,000 annually,but noted that the Company would maintain the right to add
this over-refunded amount to the balancing account for future recovery.Id.
Staff mentioned that rates would not change under the Company's proposal to maintain
the REP credit at $0.008403 per kWh,so the Company did not have to notify customers of the
proposal under Commission Rule of Procedure 125.See IDAPA 31.01.01.125.Id.at 3.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdictionover this matter under Idaho Code §§61-502 and 61-
503.The Commission has the express statutory authority to investigate rates,charges,rules,
regulations,practices,and contracts of public utilities and to determine whether they are just,
reasonable,preferential,discriminatory,or in violation of any provision of law,and may fix the
same by Order.Idaho Code §§61-502 and 61-503.The Commission has reviewed the record,
including the Application,attachments,and comments.
We find that the proposal to maintain the credit rate of $0.008403 per kWh is just and
reasonable.We therefore approve the Company's Application,to be effective October 1,2019
through September 30,2021.
We understand that the Company will be over-refunding its Schedule 34 customers
under the rate credit authorized by this Order and expect that the Company will maintain an
*PacifiCorp'saverage residential customer in Idaho uses 800 kWh per month.
ORDER NO.34450 3
accurate balancing account so customers on other schedules will not be harmed if the BPA REP
credit rate is maintained at $0.008403per kWh from October 1,2019 through September 30,2021.
ORDER
IT IS HEREBY ORDERED that the Application of Rocky Mountain Power to
maintain the BPA REP credit from October 1,2019 through September 30,2021 is approved.The
Company may maintain its credit of $0.008403 per kWh for Schedule 34 customers,effective
October 1,2019.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order with regard to any
matter decided in this Order.Within seven (7)days after any person has petitioned for
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this Š¾
day of September 2019.
PAÜL KJELIkbÁ$ÊÈ,PRESIDENT
INE RAPER CéMifÌÏSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\PAC-E-19-10\Orders\PACE1910_linalorder_dh.doex
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