20190823Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 23,2019
SUBJECT:ROCKY MOUNTAIN POWER'S APPLICATION TO MAINTAIN ITS
CURRENT BPA RESIDENTIAL EXCHANGE PROGRAM CREDIT FROM
OCTOBER 1, 2019 THROUGH SEPTEMBER 30, 2021; CASE NO. PAC-E-
19-10.
On August 13, 2019, PacifiCorp dba Rocky Mountain Power ("Rocky Mountain" or
"Company") applied to the Commission requesting an order approving no change to the
Company's current Electric Service Schedule 34-Pacific Northwest Electric Power Planning and
Conservation Act Residential and Farm Kilowatt-Hour Credit ("Schedule 34")-rate. Customers
would continue to receive a rate credit of $0.008403 per Kilowatt-Hour ("kWh") under the
proposal. Application at 4. The Company requests that its Application be processed by Modihed
Procedure, and proposes an effective date of October 1,2019. Id. at 6.
BACKGROUND
The Northwest Power Act of 1980 created the Residential Exchange Program ("REP"),
which is administered by Bonneville Power Administration ("BPA"). Id. at 2. The REP allows
participating utilities, including Rocky Mountain, to pass the benefits of the Federal Columbia
River Power System to eligible residential, small farm, and irrigation customers through rate
credits. 1d
THE APPLICATION
The Company currently distributes $8.5 million annually to its Schedule 34r customers, at
a rate credit of $0.008403 per kWh. Id. at 3. In its Application, the Company proposes to distribute
1 Schedrle 34 rate credits are distributed to customers in Schedules 1,64, 7A, 23A,35A.36, and 19. Application at 6.
DECISION MEMORANDUM I
$8.2 million in REP rate credits annually, for two (2) years-effective from October 7,2019
through September 30,2021.[d. at 4. The proposed rate credit includes annual REP benefits of
$7.8 million plus an additional undistributed balance in the Company's Idaho's REP balancing
account of $1.6 million annually, reduced by the look-back payment of $1.2 million. Id. The
Company explains that the rate design with the new REP benefit results in a slight decrease in rate
credit,2 but because it would be minor the credit should remain at the same level the Company is
already distributing to Schedule 34 customers, $0.008403 per kwh. Id. at 4-5.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of Modified
Procedure, with a September 13,2019 comment deadline and a September 18,2019 reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, with a September 13,2019 comment deadline and a September 18, 2019 reply
deadline?
Dayn Hardie
Deputy Attorney General
I:\LegaI\ELECTRIC\PAC-E-19.10\memos\PACEl9l0*dec memo dh.doc
2 By maintaining the current rate of 50.008403 per kWh instead of modifying the rate credit to SO.OO8156 per kWh as calculated in the
Company's rate design, the Company would over allocate approximately S248,000 to customers in Schedule 34 annually over the proposed
period of October 1, 2019 through September 30, 2021. Application at 4-5.
DECISION MEMORANDUM 2