20191203Steward Exhibit 1.pdf

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Case No PAC-E-19-20
Exhibit No. 1
Witness: Joelle R. Steward
BEFORE TTM IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Joelle R. Stew-ard
December 20 I 9
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Rocky Mounlaan Power
Exhibit No. 1 Page '1 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Vlitnessi Joelle R. Steward
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t 2020 PacifiCorp Inter-Jurisdictional Allocation Protocol
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Rocky Mountain Power
Exhibit No. 1 Pase 2 or 134 EXECUTION VERSION
Case No. PAC-E-19-20
Vlltnessr Joelle R. Steward
o Contents
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L lnfoduction
2. Timeframes and Effective Periods
2.1. EffectiYe Period of lhe 2020 Prolocol ..2.2. Post-lnterinrPeriod........
2.2.1. Commission Approvals for Post-lnterim Period Mcthod Oblained Prior lo Decembcr 3l, 2023
2.2.2. Commission Approval Not Cmnted.....
2.2.3. Postlnterim Period Metlbd Agreemcnt Not Reached...........
2.2.1. Earl.v Commission ApproYals of Post{ntcrim Period Method
2.2.5. Rcgulatory Filings to lmplenent Post-Interim Period Method.............................
3. Intcrim Period Allocation Method .
3. l. Continuing Terms of the 2017 Protocol for thc Five Shtes Interim Period Allocation Mcthodolog\
3.1.1. ChssificationoflnlerintPeriodResourccs.........................
3.1.2. Allocation oflntcrim Pcriod Resource Costs and Wholcsale Relenues...............
3. 1.3. Re-f[nctiomtization and Allocation of Transmission Costs and Revenues.........
3. L+. Allocation ol Dislribution Costs..
3.1.5. Allocfltion ol Admi nistrati\ e and Ceneral Costs .
3.1.6. AllocalionolSpccial Conlracls...........
.1. 1.7 Misccllancous Cosls and Taxes.............
3.1.8. Stale Programs Rc8arding Access to Altematile Elcclriciq' Supp1iers..............
3.1 9 Loss or Increirse in Lortd.....................
:1. I . 10. Co mmission Rcgulal ion o I lnleri nt Period Reso urccs
?.2 Modificalions to lhc 20l7 Protocol During ttre Inlerinl Pcriod........
3.2.1. Ncl Po\\cr Co\ls Fi1ings .......................
3.3.2. Enrbcddcd Cost Diffcrcntial ("ECD") and Equalization Adjustnert ....................
3.3.3. Costs rrnd BenenB of Qurlift ing Facilities...........
.1.1.1. Allocadon oIGain or Loss fmm Srlc of Assets...................
3.1.5. lnlcrprcmtion and Co\'crnance...............
1.1. States' Dccisions 10 Exit Coal-Fuclcd lnterim Period Resourccs-l.l.l. Allocation of Costs al Closure ..............
1.1.2 Erit Orde rs .. .. . .. .. .. .
L l.:t Oregon Eriit Dates.
L l.l. Washington Erit Orders.......................
-1.1.5. Eslablishmenl of E\it Dates for Ha! den Units I and 2...........
.1.2. Reassignmcnt of Coal-Fucled Interim Period Resourccs............
1.2.1 Compan! Proposals for Reassignment
1.2.2 Proccss and Timrng
.1.2.3 Effects of Commission Dccisions Rcgarding Assignnenl......
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Rocky Mountain Power
Exhibit No. 1 Page 3 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtnessr Joelle R. Steward
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{.3. DecommissioningCosts.........................{.3.l. Process for Determining Dccommissioning Cost Allocation-
4.3.2. Accounting for Decomflissionin8 Costs Resen e Balances when All Slates Do Not Exit a Unit
4.3.3. Accounting for Inlerim and Final Retirements.. ... . . ..... ....
+.3.4. Individual Slate ReYie$ Proccss..........
.1.-1. Quali$ingFaci1ities......................,.......{.{.1. Eriisting QF PPAs ..
11.2. Nou QF PPAs.......
5. Rcsolved lssues - Postj erim Pcriod Implementation .
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5.1. GenerationCosts.................
5. t.l. Interin Period Resources Fixed Allocatiol
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5.1.2. Nerv Resources Fixed Assignmcnt.
5.2. Trdmmission Costs5.1. DislributionCosls5.{. SlstemOlerhead Costs......................5.5. Administrative and General Costs......5.6. Other A.llocation Issues....... .......
5.'7 . Demard-Side Management Prcgrdrns5.8. State-Specilic Iniliati\es....................
Framerrork Issues .........
It.l. Issucs of InterprcL1tion.................A.2. Workgroups........... ........................... . ..................
8.2.1. Framorork lssucs Wo*group.. .. . . . . .
8.2.2. Muhi-SL1te Proccss Workgroup.............
ll.l. Conrmissioner Forunr . . . . . . .tl.,l. Proposals to Change the 2020 Protocol during the Interim Pcriod8.5. Replacernent ofthc 2020 Protocol ........8.6. Interdeperdencl Annng Commission Approvals.........................
Compliarrc rr ith Rcsourcc Larrs.
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6.1. Resor[ce Planning and New Rcsource Assignment...............6.2. Net Po$er Costs / Nodal Pricing Modet ("NPM) .... . .6.3. SpecialContracs...6.1. Linited Realignnrnl...... . ...6.5. Posl-Interim Period Capital Additions - Coal-Fuclcd Interim Period Rcsources ...
6.5.1 . PacifiCorp Strarv Proposal - Post-lnterinr Pcriod Capital Investrnclt Allocation E\ceptioN
6.5.2. PacifiCorp Strarv Proposal - IncrerrEntal Capital ln\,cstments Madc Bctrreen 202-l and the E\it Date
Wherc Eriit Date is On or Beforc Dcccmber 31. 2027 ...........................11
6.5.3. PacifiCorp Straw Proposal - lrrcremental Capiul Inyestments Madc in 202.1 and 2025 Whcrc E\it Date
is After 2027.......... .................11
6.5.4. PacifiCorp Slrau Proposal - Incrcrnental Capital Im estments Madc Bet$€en 2026 and the Eriit Date
Where the E\it Datc is Aftcr 2027..
Allocation ofGain or Loss fronl Sale ofAssets.........
Inlerpretation and Golernance
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Rocky irounlain Power
Exhibil No. 1 Pase 4 of 134 EXECUTION VERSION
Case No. PAC-E-I9-20
V\rtlness: Joelle R- Sleward
r 1. Introduction
z This 2020 PacifiColp Inter-Jurisdictional Allocation Protocol Agreement (the "2020
3 Protocol" or this "Agreement") reflects the agreement among PacifiCorp (or the "Company"),
.l certain Commissionl staff members, State regulatory agencies, customers, consumer advocates,
5 conservation organizations, and other interested parties lrom Califomia, Idaho, Oregon, Utah,
6 Washington, and Wyoming (collectively referred to as the "States" or individually as a "State")
7 who have executed this Agreement (collectively referred to as the "Parties" or individually as a
8 "Party") on an interim allocation and assignment method and a process for determining a long-
9 term replacement ofexisting inter-j urisdictional allocation and assignment methodologies.2 The
l0 2020 Protocol is intended to: (1) supersede the 201'7 PacifiCorp Inter-Jurisdictional Allocation
I I Protocol (the "2017 Protocol") for Califomia, Idaho, Oregon, Utah, and Wyoming; and (2) modify
t2 the West Control Area Inter-jurisdictional Allocation Methodology ('WCA') for Washington.
13 However, as part ofthe 2020 Protocol, the 2017 Protocol and the WCA allocation methodologies
ll will continue to be used, with modifications explained herein, during an Interim Period, as defined
15 below. Subject to the provisions set forth below, and with the acknowledgment that only the
l6 appropriate state body charged with issuing orders to establish rates can approve its use, the Parties
l7 agree that the 2020 Protocol can be used to set just and reasonable rates and agree to support its
I lt use in rate filings in California, Idaho, Oregon, Utah, Washington, and Wyoming during the Interim
l9 Period. The 2020 Protocol includes.
20 . The allocation and assignment policies, procedures, and methods to be used during
2t the Interim Period (i.e., January l, 2020 through December 31,2023, as specified
r Capita.tized terms in the 2020 Protocol are defined trereiq in Appendis A. or in Appcndi\ C.
r For purposcs of this Agreemcnl. use of the terms assigrl assignnrcnt. and assigned gcnerallv rcfer to the generatiorl
capacity, bcncfits, and risks associated rvith certain assets and use ofthe tenns allocatc. allocatcd- allocation
generall]- rcfcr to the teatment ofcosts associated with ceftain assets.
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Rocky Mountain Power
Exhibit No. '1 Pase 5 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Vlttness: Joelle R. Steward
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in Section 2). The 2020 Protocol describes the way all components ofPacifiCorp's
regulated service, including costs, revenues, and benefits associated with
generation, transmission, distribution, and wholesale transactions, should be
allocated and assigned among the six States during the Interim Period. During the
Interim Period, these inter-jurisdictional allocation policies, procedures, or
methods, if applied by each State as stated herein for rate proceedings filed during
the Interim Period, can provide PacifiCorp a reasonable opportr,rniry to recover its
prudently incurred cost of service.
An agreement on certain issues that are intended to be implemented during the
lnterim Period and, assuming final resolution ofall outstanding issues, incorporated
into a Post-Interim Period Method agreement ("lmplemented Issues").
A conditional agreement on certain issues intended to be implemented following
the Interim Period, subject to final resolution of all outstanding issues ("Resolved
Issues").
A process and timeframe to address and attempt to resolve all outstanding issues
that the Parties intend to resolve after this 2020 Protocol has been filed with the
Commissions and during the Interim Period ("Framework"), including the
implementation or resolution of issues associated with a Nodal Pricing Model,
Resource planning and new Resource Assignment, Limited Realignment, Special
Contracts, post-Interim Period capital additions on coal-fueled Interim Period
Resources and other items ("Framework Issues"). The future resolution of
Framework Issues, combined with the Implemented Issues and the Resolved Issues,
would result in a new allocation methodology for PacifiCorp's six States ("Post-
Rocky Mountain Power
Exhibit No. 1 Page 6 of 134 EXECUTION !,ERSION
Case No. PAC-E-19-20
Wtnessr Joelle R. Steward
O +-i Interim Period Method").
The proposed allocation of a particular expense or investment to a State under the 2020
Protocol is not intended to and will not prejudge the prudence ofthat cost or the extent to which
any particular cost may be reflected in rates. Nothing in the 202O Protocol is intended to abrogate
any Commission's right or obligation to: (l) determine fair, just, and reasonable rates based upon
appticable laws and the record established in rate proceedings conducted by that Commission; (2)
consider the effect of changes in laws, regulations, or circumstances on inter-jurisdictional
allocation policies and procedures when determining fair, just, and reasonable rates; or (3) establish
different allocation policies and procedures for purposes of allocating costs and revenues within
that State to different customers or customer classes-
Parties support the 2020 Protocol, but their support will not, in any manner, affect or negate
their right to address changed or unloreseen circumstances, including changes in laws or
regulations. AParty's support of the 2020 Protocol will notbind orbe used against that Party ifa
Party concludes that the 2020 Protocol no longer produces results that are just, reasonable, or in
the public interest, or does not provide the Company with a reasonable opportunity to recover its
prudently incurred cost of service; provided, however, that in raising an obj ection to the 2020
Protocol the Parties agree to first raise any such obj ection by following the provisions of Section
8.4,
Support ofthe 2020 Protocol does not constitute an acknowledgment by any Party olthe
validity or invalidity of any particular method, theory, or principle of regulation, cost recovery
cost of service, or rate design. No Party will be deemed to have agreed that any particular method,
theory or principle of regulation, Resource acquisition or Reassignment, cost recovery cost of
service, or rate design employed in or implied by lhe 2020 Protocol is appropriate for resolving
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Rocky Mounlain Power
Exhibit No. 1 Pase 7 of 134 EXECUTION VERSION
Case No. PAC-El9-20
\A/itness: J0elle R- Steward
68 any issues other than the inter-jurisdictional allocation ofPacifiCorp's cost ofservice. The Parties
69 have made no effort to address or consider intra-state cost allocation issues and agree that using
7o the 2020 Protocol for inter-j urisdictional cost allocation purposes does not suggest or require
7l similar treatment be applied to intra-state cost allocations for class cost-of-service purposes for
'72 any State. Parties may propose such methods ofintra-state class cost-of-service allocations as they
73 deem appropriate.
'11 The 2020 Protocol includes the following appendices described briefly below:
75 . Terms that are capitalized in the 2020 Protocol are defined herein, in Appendix A,
76 or in Appendix C.
71 . Appendix B includes tables identifying the allocation factor to be applied to each
78 component ofPacifiCorp's revenue requirement calculation.
79 . Appendix C includes the definition and algebraic derivation of each allocation
80 factor, along with the FERC accounts to which the allocation factor will be applied.
8l . Appendix D is a Memorandum ofUnderstanding among the Parties supporting the
82 Company's acquisition and implementation of a Nodal Pricing Model.
83 . Appendix E includes a table reflecting Commission-approved depreciable lives in
84 effect October 1,2019, and the Company's proposed depreciable lives for coal-
85 fueled Interim Period Resources in pending depreciation dockets as filed in
86 September 2018.
87 . Appendix F is the Washington Inter-Jurisdictional Allocation Methodology
88 Memorandum of Understanding between the Company and the Washington Parties,
8e which modifies the WCA.
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Rocky Mountain Power
Exhibit No. 1 Pase I of '134 EXECUTION VERSION
Case No. PAC-E-19-20
V\,llness: Joelle R. Sleward
Appendix G includes a description and numeric example of how Special Contracts
and related issues will be treated during the Interim Period.
Timeframes and Effective Periods
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2.1. Effective Period of the 2020 Protocol
For the Interim Period, January 1, 2020 through December 31,2023, subj ect to Section
2.2.4, the Parties agree to support before their respective Commissions the use ofthe 2020 Protocol
in PacifiCorp regulatory proceedings or filings, subject to exceptions for deferred amounts
including, but not limited to, Net Power Costs as set forth in this Agreement. The 2020 Protocol
includes an agreed-upon approach lor cost allocations to each State that will be used by PacifiCorp
in proceedings or filings commenced during the lnterim Period, except as provided in Section
2.2.5.
2.2. Post-InterimPeriod
2.2.1. Commission Approvals for Post-Interim Period Nlethod Obtained
Prior to December 31, 2023
Ifeach State's Commi ssion approves a Post-lnteri m Period Method agreement on or belore
December 3 l, 2023, or in the first general rate case after the Post-Interim Period Method agreement
is reached,3 the Interim Period will terminate on December 3l ,2023, and the Post-lnterim Period
Method will take effect, subject to Section 2.2.2.
2.2.2. Commission Approval Not Granted
If any Commission denies PacifiCorp's request for approval of the Post-Interim Period
Method agreement, PacifiCorp will propose an altemative allocation method for the Post-Interim
Period for consideration by all the Commissions. Parties are free to take any position regarding
r The Parties undcrstand the Califomia and Washington Commissions rrill likelv considcr thc Post-lnterim Period
Method in tlrc first general rate case filed in eithcr Stalc after an agreemem has been rcachcd on thc Post-Interim
Period Method. ard appmval mal occur after Decembcr i l. 2023.
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Rocky Mountain Power
Exhibit No. 1 Pase I of '134 EXECUTION VERSION
Case No. PAC-E-'I9-20
Vlilness: Joelle R Stewerd
t12 PacifiCorp's proposal, including proposing alternative allocation methodologies, filing a
113 complaint, or requesting an investigation ofPacifiCorp's proposal.
I l,l 2.2.3. Post-Interim Period Method Agreement Not Reached
I l5 If the Company determines that it is unlikely that a Post-Interim Period Method agreement
l16 will be reached belore the end olthe Interim Period, then the Company will propose an allocation
ll1 method for the Post-Interim Period for consideration by the Commissions. Parties are free to take
ll8 any position regarding PacifiCorp's proposal, including proposing alternative allocation
I 19 methodologies, or initiating a complaint or investigation ofPacifiColp's proposal.
120 2.2.4. Early Commission Approvals of Post-Interim Period Method
l2l If a Post-lnterim Period Method agreement is reached on or before December 31,,2022,
122 any Post-Interim Period Method agreement will address whether and the degree to which the
123 Company will use the Post-lnterim Period Method in regulatory proceedings or filings commenced
121 after December 31, 2022.
125 2.2.5. Regulatory Filings to Implement Post-Interim Period Method
126 Any Post-Interim Period Method agreement will address whether and the degree to which
l2'1 the Company may use the Post-Interim Period Method in regulatory proceedings or filings
128 commenced during the Interim Period while Commission approvals of the Post-Interim Period
129 Method agreement are pending but to be effective after the end of the Interim Period.
r3o 3. Interim Period Allocation Method
13t The 2017 Protocol expiresDecember3l,20lg.{ The Parties representing interests in the
132 States ofCalifomia, Idaho, Oregon, Utah, and Wyoming (collectively referred to as the "Five State
133 Parties" and the "Five States") agree that the methodology outlined in the 2017 Protocol being
r As proposcd in PacifiCory's 2019 California geneml rate case filing. the 20I7 Protocol does not c\pire in
Califomia on Decernber 31. 2019.
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Rocky Mountain Power
Exhibit No. 1 Page 10 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
\Mlnessr Joelle R Slewerd
o l3.l used by the Company in 2019 should continue, as outlined and modified in Section 3, during the
lnterim Period while the Parties continue to negotiate the Framework Issues necessary to develop
the Post-lnterim Period Method. The Washington Parties agree that the methodology outlined in
the WCA being used in 2019 should, subject to the terms included in Appendix F, continue during
the Interim Period while the Parties continue to negotiate the Framework Issues necessary to
develop the Post-Interim Period Method.
For the Five States, the terms of the 2017 Protocol that will be used during the Interim
Period under the 2020 Protocol are provided in Section 3.1. The 2017 Protocol terms that are
being modified by this Agreement are provided in Section 3.2.
3.1. Continuing Terms of the 2017 Protocol for the Five States Interim
Period Allocation Methodologys
Items included in the Company's results of operations will be allocated on the factors set
forth below. The FERC account and allocation factor combinations are included in Appendix B.
The algebraic derivation and factor definitions are included in Appendix C.
3.1.1. Classification of Interim Period Resources
All Fixed Costs of Interim Period Resources will be classified as 75 percent Demand-
Related and 25 percent Energy-Related. All Non-Firm Purchases and Sales will be classified as
I 00 percent Energy-Related.
3.1.2. Allocation of lnterim Period Resource Costs and Wholesale Revenues
lnterim Period Resources will be allocated to one of two categories for inter-jurisdictional
allocation purposes: State Resources or System Resources. A complete description of allocation
factors to be used is set florth in Appendix B.
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i Tenninologt in Section 3.I has bccn nrodified from thc lan8uage in the 20l7 Prolocol to maintain coruistenc\ irr
tlrc use of tcmrs rvithin tlr 2020 Protocol.o
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Rocky Mountain Power
Exhibit No. 'l Page '1'l of '134 EXECUTION VERSION
Case No. PAC-E-19-20
Wlness: Joelle R. Steward
There are three types of State Resources. The remaining types oflnterim Period Resources
are System Resources, which constitute the substantial majority of PacifiCorp's Resources.
Benefits and costs associated with each category and type of Interim Period Resource will be
assigned or allocated to States on the following basis.
3.1.2.1. Interim Period State Resources
Benefits and costs associated with the three types of State Resources will be assigned or
allocated as follows:
o Demand-Side Manasement C'DSM") Programs: Costs associated with DSM
Programs, including Class I DSM Programs, will be allocated on a situs basis to
the State in which the investment is made. Benefits from these programs, in the
form oflreduced consumption and contribution to Coincident Peak, will be reflected
in the Load-Based Dynamic Allocation Factors.
a Portfolio Standards: The portion of costs associated with Interim Period Resources
acquired to comply with a State's Portfblio Standard adopted, either through
legislative enactment or by a State's Commission, that exceed the costs PacifiCorp
would have otherwise incurred, will be allocated on a situs basis to the Jurisdiction
adopting the Portfolio Standard.
State-Specific Initiatives: Costs and benefits associated with Interim Period
Resources acquired in accordance with a State-specific initiative will be allocated
and assigned on a situs basis to the State adopting the initiative. State-specific
initiatives include, but are not limited to, the costs and benefits ol incentive
programs, net-metering tariffs, feed-in tariffs, capacity standard programs, solar
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Rocky Mountain Power
Exhibit No. 1 Pase 12 of 13,1 EXECUTION VERSION
Case No. PAC-E-'l9-20
Wlness: Joelle R. Stewad
o l?8 subscription programs, electric vehicle programs, and the acquisition of renewable
energy certificates.
3.1.2.2. Interim Period System Resources
All Interim Period Resources that are not State Resources are System Resources and will
be allocated as follows:
o Generally, all Fixed Costs associated with System Resources and all costs incurred
under Wholesale Contracts will be allocated based upon the System Generation
("SG') Factor.
. Generally, a[[ Variable Costs associated with System Resources will be allocated
based upon the System Energy ("SE") Factor.
o Revenues received by PacifiCorp under Wholesale Contracts will be allocated
based upon the SG Factor.
3.1.3. Re'functionalization and Allocation of Transmission Costs and
Revenues
Before filing any request to approve a reclassification of facilities as transmission or
distribution with FERC, PacifiCorp will submit filings seeking review and authorization of any
such reclassification with the Commissions. The cost responsibility for any assets reclassified
under FERC policy will be assigned or allocated consistent with other assets in the relevant
lunction.
Costs associated with transmission assets, and firm wheeling expenses and revenues, will
be classified as 75 percent Demand-Related, 25 percent Energy-Related, and allocated based upon
the SG Factor. Non-firm wheeling expenses and revenues will be allocated based upon the SE
Factor. In the event that PacifiCorp joins a regional independent system operatot the allocation
of transmission costs and revenues may be reevaluated and revised as provided for in Section 8.4.
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Rocky Mountain Po[,er
Exhibit No. 1 Page 13 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
VMtnessr Joelle R. Steward
3.1.4. Allocation of Distribution Costs
AII distribution-related expenses and investment that can be directly allocated will be
directly allocated to the State where they are located. Those costs that cannot be directly allocated
will be allocated consistent with the factors set forth in Appendix B.
3.1.5. Allocation of Administrative and General Costs
Administrative and General Costs, General Plant costs, and Intangible Plant costs will be
allocated consistent with the factors set forth in Appendix B.
3.1.6. Allocation of Special Contracts
Revenues associated with Special Contracts will be included in State revenues, and loads
of Special Contract customers will be included in Load-Based Dynamic Allocation Factors as
appropriate (see Appendix G). Special Contracts may or may not include Customer Ancillary
Service Contract attributes. Load curtailments and buy-through arrangements will be handled as
appropriate (see Appendix G).
3.1.7 Miscellaneous Costs and Taxes
Miscellaneous costs described below will be allocated as follows:
. Generation-related dispatch costs and associated plant will be allocated on the SG
Factor
. Miscellaneous regulatory assets and liabilities, and miscellaneous deferred debits
will be allocated with the appropriate allocation factor depending on the related
assets or underlying costs.
Taxes and fees will be allocated as follows:
o Income taxes will be calculated using the federal tax rate and PacifiCorp's
combined State effective tax rate. State-specific Schedule M and deferred income
tax amounts will be allocated using the Company's tax software system. Consistent
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Rocky Mountain Power
Exhibit No. 1 Page 1,1of1s4 EXECUTION !,ERSION
case No. PAC-E-19-20
Wtness; Joelle R. Steward
O 226 with prior system allocation methods, the Washington Public Utility Tax is
allocated using the SO Factor in lieu ola Washington income tax.
r Franchise taxes, revenue related taxes, Commission assessments and fees, and
usage related taxes are situs or a pass through.
o Property taxes are system allocated based on gross plant and allocated on a Gross
Plant System ("GPS") Factor
. Generation and fuel-related taxes will be allocated using the SG Factor.
o Other taxes such as payroll taxes are embedded in expenses or capital costs.
Balances associated with the Trojan Decommissioning will be allocated using the Troj an
Decommissioning ("TROJD") Factor. This will not impact State-specific treatment of this item.
3.1.8. State Programs Regarding Access to Alternative Electricity Suppliers
3.1.8.1. Treatment of Oregon Direct Access Programs
This Section describes treatment of loads lost to Oregon Direct Access Programs during
the term of the 2020 Protocol.
3.f .8.1.1. Customers Electing PacifiCorp's One' and
Three-Year Oregon Direct Access Programs
Customer loads electing to be served on PacifiCorp's one- and tlree-year Oregon Direct
Access Programs will be included in the Load-Based Dynamic Allocation Factors for all Interim
Period Resources, and the transition cost payments from these customers will be situs assigned
and allocated to Oregon.
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3.r.8.1.2.Customers Electing PacifiCorp's Five Year Opt-
Out Program [Inder the Oregon Direct Access
Program
219 The treatment will be consistent with Order No. I 5 -060, as clarified through Order No. I 5-
067, ofthe Oregon Public Utility Commission in Docket UE 267, and Oregon Schedule 296, whicho250
ll
Rocky Mounlain Power
Exhibit No. '1 Page 15 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
VMtness: Joelle R. Steward
o 251 allow Oregon Direct Access Consumers to permanently opt-out of cost-of-service rates after
payment often years oftransition costs in Oregon. If an Oregon DirectAccess Consumer is paying
transition costs during the Interim Period, the Oregon Direct Access Consumer's load(s) will be
included in Load-Based Dynamic Allocation Factors, and the transition cost payments from these
consumers will be situs-assigned to Oregon. If any Oregon Direct Access Consumer reaches the
end ofthe l0-year period covered by the transition cost payments during the Interim Period, the
load(s) for that Oregon Direct Access Consumer will be excluded from Load-Based Dynamic
Allocation Factors. Thereafter, if an Oregon Direct Access Consumer elects to return to Oregon
cost-of-service rates by providing four-years notice under Schedule 296, its load will be treated as
new load and incorporated in PacifiCorp's Resource planning process.
3.1.8.1.3. New Laws or Regulations
To the extent Oregon adopts new laws or regulations regarding Oregon Direct Access
Programs, Oregon's treatment of loads lost to Oregon Direct Access Programs may be re-
determined in a manner consistent with the new laws and regulations. In the event Oregon adopts
such new laws or regulations, the Company will inform the Commissions and the Parties of the
252
253
251
255
256
251
25 tt
259
260
26t
262o2(r3
2(,+
265
266 same
2(t'7 3.1.8.2. Utah Eligible Customer Program
If, pursuant to Utah Code Annotated Section 54-3-32, an eligible customer in Utah transfers
service to a non-utility energy supplier, the Public Service Commission of Utah will make
determinations under Utah law as contemplated therein. The Company will inform the
Commissions and the Parties of the Public Service Commission of Utah's determinations.
3.1.8.3. Other State Actions
In the event any State adopts laws or regulations governing customer access to altemative
electricity suppliers, the Company will inflorm the Commissions and the Parties of the same.
2(i8
269
21o
2 t'l
212
273o
t2
Rocky Mountain Power
Exhibit No. '1 Page16of134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Sleward
o 275 3.1.9. Loss or Increase in Load
276 Any loss or increase in retail load occurring as a result of condemnation or
municipalization, sale or acquisition ofnew sewice territory that involves less than five percent of
system load, realignment of service territories, changes in economic conditions, or gain or loss of
large customers will be reflected in changes in the Load-Based Dynamic Allocation Factors. The
allocation or assignment of costs and benefits arising from merger, sale, or acquisition transaction
proposed by the Company involving more than five percent ofsystem load will be considered on
a case-by-case basis in the course of Commission approval proceedings.
3,1.10. Commission Regulation of Interim Period Resources
PacifiCorp will plan and acquire new Interim Period Resources on a system-wide risk-
adjusted, least-cost basis. Prudently incurred investments in Interim Period Resources will be
reflected in rates consistent with the laws and regulations in each State, as approved by individual
Commissions.
3.2. Modifications to the2017 Protocol During the Interim Period
3.2.1. Net Power Costs Filings
For Net Power Costs ('NIPC") filings, Parties agree to support use of the allocation
methodology in place when the NPC were or will be incurred, to align the timing of the actual
costs incurred with the applicable allocation method for cost recovery for that period. The table
below summarizes the transition from the 2017 Protocol to the 2020 Protocol for NPC filings. If
a Post-lnterim Period Method agreement is reached between the Parties, a similar table will be
included to summarize the transition lor NPC filings from the 2020 Protocol to the subsequent
agreement.
211
274
2'79
2 ti0
281
242
281
2tt+
285
286o287
2ltlt
289
290
291
292
293
294
295
O
296
li
o
a
291
293
291)
.r00
.10 t
302
'i0J
Rocky Mountain Power
Exhibit No. 'l Page 17 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Vlrlnessr Joelle R. Steward
3.3.2. Embedded Cost Differential ("ECD") and Equalization Adjustment
3.3.2.1. ECn
The Fixed ECD will continue for ldaho through the end of the Interim Period. The
Dynamic ECD for Oregon will continue through the end of the Interim Period, capped at
$11,000,000. No ECD adjustment exists for Utah or California.
The Wyoming ECD will terminate December 31,2020. Beginning January 1, 2021, for
purposes of the Wyoming energy cost adjustment mechanism ('ECAM"), actual ECD will be zero
and the true-up of the Wyoming ECD will not be subj ect to sharing bands in the Wyoming ECAM.
This treatment will continue until the ECD is removed from base rates.
Allocation Methodology Used for NPC Filings
2017 ProtocolFiling 2020 Protocol
California ECAC
(Balancing Rale)
2021 ECAC for the
CY2020 Deferral Period
2022 ECAC for thc
CY202l Dcfcrral Period 1
Califon a ECAC
(Ofsct Ratc)
2020 ECAC for thc
CY2020 Forccast Period
2021 ECAC for the
CY202l Forecast Period I
Idaho ECAM
2020 ECAM lor the
CY20l9 Deferral Pcriod
2021 ECAM for tlrc
CY2020 Deferal Period
Oregon TAM
2020 TAM for the CY2019
Forecast Period
2021 TAM for thc CY2020
Forccast Pcriod
Oregon PCAM
2020 PCAM for thc
CY20l9 Dcferral Pcriod
2021 PCAM for the
CY2020 Deferrat Period
Utah EBA
2020 EBA for thc CY20l9
Dcferral Period
2021 EBA for rc CY2020
Deferrai Period
Wltslrington PCAI{
2019 PCAM for the
CY20l9 Deferral Period
2020 PCAM lor lhc
CY2020 Dcfcrral Pcriod 2
Wvoming ECAM
2020 ECAM for tlrc
CY20l9 Defenal Pcriod
2021 ECAM for the
CY2020 Deferral Period
Nct Power Costs includcd
in Gcrcrul Rate Cascs
(CRC) - A11 Statcs
GRC rvirh ratc cffcctivc
date on or aftcr January I,
2020
^-otcs:
l. Thc 2020 Prctocol u'ill nol bc implemcntcd in Ci ifomia until approled bl thc Conrmission ina
general ratc casc. Thc datcs includcd in thc table are subject to change bascd on thc Califomia general
ratc casc schcdulc. thc rE\t gencral ratc casc is currentll scheduled to usc a 2022 tcst pcriod.
2. Washinglon \rill use tlrc nndificd WCA allocation methodolog) perAppendi\ F ofthe 2020
Prolocol.
3. This atso applies to anr-, othcr NPC llling that resets base NPC ratcs
TII
I
T
I
I
II
TII
T
T
T
TII
I
II
O305
l.l
Notes
o
o
a
Rocky Mountain Po,er
Exhibit No. 1 Pase'18 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
VMtnessr Joelle R. Steward
306 3.3.2,2. Equalization Adjustment
307 The Equalization Adjustment addressed in Section XIV of the 2017 Protocol will terminate
308 on December 31, 2019, and no additional Equalization Adjustment amounts will be deferred alter
309 that date. The method PacifiCorp will use to collect deferred Equalization Adjustment balances
310 and any related carrying charges has been or will be addressed in appropriate State regulatory
3tt proceedings.
3tz 3.3.3. Costs and Benefits of Qualifying Facilities
313 Costs and benefits of Qualifying Facilities will be treated consistent with the provisions
314 specified in Section 4.4.
315 3.3.4. Allocation of Gain or Loss from Sale ofAssets
316 The allocation of any gain or loss from the Company's sale of assets will be treated
317 consistent with the provisions specified in Section 7.
318 3.3.5. Interpretation and Governance
319 This Agreement will be interpreted and PacifiCorp's Multi-State Process ("MSP") will be
320 govemed by the provisions specified in Section 8.
3zt 4. Implemented Issues
322 The Parties agree that the following items, described later in this Section 4, will be
323 implemented and effective during the Interim Period:
32.t o The process and timing for States' decisions to exit coal-fueled Interim Period
325 Resources;
326 o The process for potential Reassignment of coal-fueled Interim Period Resources
327 among States without Exit Orders;
328 o The process for the allocation of Decommissioning Costs; and
329 o The allocation and assignment of Qualifying Facility Power Purchase Agreements
t5
Rocky Mountain Pov/er
Exhibit No. 'l Pase 19 of 134 EXECUTION \.ERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
o ("QF PPAs")
331 These issues are more thoroughly explained below
332 4.1. States' Decisions to Exit Coal-Fueled Interim Period Resources
333 PacifiCorp will continue to conduct operational and economic analyses in accordance with
applicable regulatory requirements and good utility practice to maintain reliable service on a risk-
adjusted, least-cost basis for its customers. PacifiCorp anticipates continuing to conduct integrated
resource planning, at least biennially. PacifiCorp also anlicipates continuing lo undertake
depreciation studies on a five-year cycle. If these analyses affect the depreciable lives or
operational lives of Interim Period Resources in the future, Parties may address such effects
through appropriate regulatory proceedings before the Commissions. Nothing in this Agreement
affects PacifiCorp's rights and obligations to make prudent decisions regarding operation of its
assets and system in accordance with applicable law. The Parties further agree that PacifiCorp's
coal-fueled Interim Period Resource Closure dates may be informed by new information that
becomes available as a result of other regulatory filings or actions, including integrated resource
plans or State and federal energy policies. Nothing in this Agreement affects or limits any Party's
ability to raise any prudence issues with regards to PacifiCorp's decisions regarding Closure of an
Interim Period Resource.
Subj ect to the possible effects of Limited Realignment, the Parties agree to the following
procedures for the Company's coal-fueled Interim Period Resources.
4.1.1. Allocation of Costs at Closure
Upon Closure ofa coal-fueled Interim Period Resource, each State that is receiving benefits
and is allocated costs associated with the coal-fueled Interim Period Resource at the time of
Closure shall continue to be allocated its share of the remaining costs of the coal-fueled Interim
:r3 -t
335
336
331
:iu 8
339
il0
o 3,11
:il2
343
t-t+
315
3.16
.t-17
3+9
:r 50
351
o 352
l6
o
o
o
Rocky Mountain Power
Exhibil No. 1 Page 20 of 13,1 EXECUTION VERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
353 Period Resource in accordance with this 2020 Protocol, which may include the remaining net book
35.t value and Commission-approved Decommissioning Costs. The existence of an Exit Order does
355 not change this allocation, and all States assigned benefits and allocated costs from the coal-fueled
356 Interim Period Resource at the time of Closure will be allocated actual costs. Therefore, ifevery
357 State is being assigned benefits and allocated costs from a coal-fueled Interim Period Resource at
358 the time of Closure, every State will be allocated, in accordance with the method set forth in this
359 Agreement, all the actual costs associated with that coal-fueled Interim Period Resource and its
360 Closure. This can occur, for example, ifevery State (excepting Washington asdiscussedin Section
361 4.1.4) issues an Exit Order with the same Exit Date for a particular coal-fueled Interim Period
362 Resource. This can also occur, for example, ifPacifiCorp pursues Closure ofa coal-fueled Interim
363 Period Resource prior to a State Exit Date. No Party, by virtue of this Agreement, waives its right
364 to investigate and analyze whether the Company's decision to continue operation or continue an
365 ownership interest is prudent, regardless of the anticipated Closure dates in the tables in Section
366 4, 1.3.
36'7 4.1.2 Exit Orders
368 The Parties, representing diverse and varied interests, have worked in good faith to create
369 a process that allows for States to pursue differing resource portlolios in the future, including
37o decisions to transition out of coal-fueled Interim Period Resources while mitigating resulting
3'll effects to the Company and otler States. A Commission may issue an Exit Order specilying an
372 Exit Date in a proceeding for approval ofthis Agreement, a depreciation docket, a rate case, or any
3'73 other appropriate proceeding.6 A Commission Order or other determination that a coal-fueled
314 Interim Period Resource will reach the end of its depreciable lile without a specific determination
6 An Exit Order is rnt required from a Commission ifa coat-fueted Ifferim Pcriod Resource is not included in
Paciicory's rates in tlut Sta1e.
t1
Rocky Mountain Power
Exhibit No. 'l Page 21 of '134 EXECUTION VERSION
Case No. PAC-E-19-20
Vlttness: Joelle R. Steward
o :r 75 that the State will exit the Interim Period Resource shall not constitute an Exit Order Provided
PacifiCorp secures all applicable approvals, a Company decision to close a coal-fueled Interim
Period Resource earlier than previously anticipated does not require the issuance ofan Exit Order
An Exit Order does not, by itsel{, result in Reassignment of shares ofa coal-fueled lnterim Period
Resource to other States or affect an Exiting State's responsibility for its share of the then-
remaining net book value olthe Interim Period Resource that is being exited.
To provide the Company and States without Exit Orders time to consider the options and
address the potential Reassignment of the coal-fueled Interim Period Resource, as set forth in
Section 4.2, under this Agreement an Exit Order should provide at least four-years ofnoticeT from
the date of the Exit Order to the Exit Date. After an Exit Date, the Exiting State will no longer be
allocated any new costss and will no longer be assigned any benefits associated with that coal-
fueled lnterim Period Resource, and no other State will be allocated the Exiting State's share of
costs nor receive the Exiting State's assigned benefits associated with that coal-fueled Interim
Period Resource, unless the costs and benefits are accepted through a Commission Order on
Reassignment. Until the Exit Date, an Exiting State shall continue to be assigned the benefits of
that coal-fueled lnterim Period Resource and shall be allocated costs associated with that coal-
fueled Interim Period Resource in accordance with this 2020 Protocol or as determined through
the Framework process, which may include costs associated with any remaining net book value,
prudently incurred capital additions, prudently incurred Operations and Maintenance ("O&M")
expense, and prudently incurred or reasonably estimated Decommissioning Costs.
376
)1i
:i 79
380
18l
:l82
3tti
.t8+
38i
o n6
387
irJS
i89
190
i9t
192
393
:i9"1
o
" Subject to the pro\isions in Sectioru {.1.-i ad 4.1..1.
8 Nerv costs are costs incurred after the Exit Date to maintain or opcratc the coal-fueled Ifterim Period Rcsource
be\ ond that date. An) costs associaled u,ith the operation of a coal-fucled Intcrim Period Rcsource and ircuned
prior to the Exit Dalc that are allocated to the Exiting State as delermined thrcugh the 2020 Protocol and that haYe
not !et becn collected from customers in that State are still that Statc's rEspomibilitt".
llr
Rocky Mountain Power
Exhibit No. 1 Page 22 ol 134 EXECUTION VERSION
Case No. PAC-E-'l9-20
Wtness: Joelle R. Steward
I 395 An Exit Order establishes the Exit Date that PacifiCorp will use to propose the allocation
of Decommissioning Costs, allocation of capital additions costs, and any other associated costs
related to the exit from a coal-fueled Interim Period Resource as outlined in the 2020 Protocol.
PacifiCorp will timely propose to Parties from an Exiting State a method to address the treatment
ofthese costs for ratemaking, such that costs and benefits remain matched in customer rates.
Following receipt of an Exit Order, the Company will file in accordance with Section 4,2
to allow States without Exit Orders the opportunity to evaluate the potential Reassignment ofthe
coal-fueled Interim Period Resource. For regulatory efficiency, Section 4.1.3 establishes
timeframes for addressing Exit Orders from coal-fueled Interim Period Resources by Oregon and
the potential Reassignment ofthose resources to other States.
4.1.3 Oregon Exit Dates
The Oregon Parties and the Company agree to recommend that the dates shown in the
tables in this Section 4.1.3 be used in Oregon for service and depreciable lives, and for establishing
Oregon's Exit Dates for all coal-fueled Interim Period Resources.
96
397
39lt
:i99
+00
l0l
.102
+03
l0+
+05
.106e.t07
10l,t
.109
.ll0
+11
.1.1.3.1 Coal-Fueled Interim Period Resources Not Operated by
PacifiCorp Subject to Common Closure Dates, Oregon
Exit2023-2027
.ti2 PacifiCorp anticipates that Cholla Unit 4, Craig Unit l, Craig Unit 2, Colstrip Unit 3, and
Colstrip Unit 4 will have common Closure dates for all States. If PacifiCorp effectuates Closure
at Cholla Unit 4, Craig Unit l, Craig Unit 2, Colstrip Unit 3, or Colstrip Unit 4 on or before the
applicable dates identified in the table below, each State will be allocated its share ofthe costs and
benefits of that coal-fueled Interim Period Resource with no transfer of cost responsibility or
decommissioning liability among States, in accordance with Section 4. I .1.
PacifiCorp and the Oregon Parties agree to recommend to the Oregon Commission that the
dates shown in the table below be used for establishing Oregon's Exit Dates and Oregon
.lli
+ll
-l l5
.l l6
11'',l
-llso1t9
19
.120
12t
Rocky Mountain Power
Exhibit No. 1 Page 23 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
V\,/ltness: Joelle R. 9eward
depreciable lives for Cholla Unit 4, Craig Unit 1, Craig Unit 2, Colstrip Unit 3, and Colstrip Unit
4.o
o
o
Coal-Fueled Intcrim
Pcriod Resourcc
Name
Anticipated Closure
Date
Chotla Unit {Januan l.202:i
Craig Unit I Dcccmber 3l- 2025
Craig Unit 2 Decembcr 31. 2026
Colsrrip Unir i December 31. 2027
Colslip Unit 4 Decembcr 31. 2027
422 PacifiCorp and the Oregon Parties agree that PacifiCorp will make best efforts to effectuate
+23 Closure ofthe units identified above by the anticipated Closure dates, but the Company may need
421 additional time for Closure of Craig Units I and 2 and Colstrip Units 3 and 4 due to itsjoint-owner
425 agreements, and Cholla Unit 4 due to other contractual requirements.
126 If PacifiCorp has received an Exit Order from Oregon lor Craig Unit 1, Craig Unit 2,
t27 Colstrip Unit 3, or Colstrip Unit 4 with the same Exit Date as the date set forth in the table above
+2tl and PacifiCorp does not effectuate Closure by such date, Oregon may elect, at its option, to:
r29 . Continue to take an allocation and assignment ofthe costs and benefits ofsuch unit
'130 for one additional year lollowing the specified Exit Date, or
:l3l . Discontinue taking an allocation and assignment of the costs and benefits of such
412 unit as ofthe specified Exit Date.
433 Under either election, Oregon will continue to be subject to an allocation ol actual
.134 Decommissioning Costs if Closure of the unit is effectuated within such one-year period. If
135 Closure of the unit is not effectuated within such one-year period, Oregon will be allocated
-136 Decommissioning Costs based on the estimates established pursuant to Section 4.3.
20
o +37
]:t 9
-112
-ll l
+.1+
l+5
4+7
.l{9
150
Rocky Mountain Power
Exhibit No. 1 Pase 24 of 134 EXECUTION VERSION
Case No. PAC-E-'19-20
Wtnessr Joelle R. Stewad
Oregon will be allocated actual Decommissioning Costs if Closure of Cholla Unit 4 occurs
on or before January l, 2023. lf Cholla Unit 4 operates beyond January l, 2023, Oregon will be
allocated only estimated Decommissioning Costs as ofJanuary l, 2023.
4.1.3.2. Coal-Fueled Interim Period Resources Operated by
PacifiCorp, Oregon Exit Through 2021
The Oregon Parties and the Company agree to recommend to the Oregon Commission that
the Exit Date for each coal-fueled Interim Period Resource shown in the following table should be
used in Oregon for establishing Oregon's Exit Dates and Oregon depreciable lives for these coal-
fueled Interim Period Resources, subject to the other provisions ofthis Section 4.1.
Coal-Fueled lnterim
Pcriod Rcsource
R€{ommended
Orcgon f,rit Date
Jirn Bridgcr I Decenter 31. 2023
Jim Bridgcr 2 December 3l- 2025
Jim Bridger 3 December 31. 2025
Jint Bridger.l December 31. 2025
Naughlon I December 31- 2025
Naughlon 2 Decenber I1 2025
Da\ c Johnslon I Dccember 3l- 2027
Da\ c Johnslon 2 December 31. 2027
Da\ c Jol rslon i Dcccmbcr -l l. 2027
Da\'c Johnston J Dcccmbcr 3 l. 2027
Oregon Parties and the Company will strive to have Exit Orders issued on or before
December 15,2020, for the coal-fueled Interim Period Resources reflected in the table above to
allow the Company to make filings in the other States in accordance with Section 4.2. If
PacifiCorp effectuates Closure for any of the units no later than the dates in the table above, then
the provisions of4. L 1 will appty.
110
++l
o
.l{6
+18
o
2l
Rocky Mountain Power
Exhibit No. 1 Page25of 134 EXECUTION VERSION
case No. PAC-E-19-20
Wtness: Joelle R. Steward
O -l5l
152
.1.s3
l5.l
155
156
Coal-Fueled lnterim
Period Resou nce
Name
Rcrommcnded
Orcgon E)rit Date
Hul)tcr I December 31. 2029
Hurter 2 Dcccmbcr :11. 2029
Dcccmbcr ll l. 2029
Huntirgton I Decenlbff 31. 2029
Huntington 2 Decembcr 3 l. 2029
!\\ odak Decenber 31. 2029
.r57 Oregon Parties and the Company will strive to have Exit Orders issued by the Oregon
Commission i ssued by December 3l ,2023, for the coal-fueled Interim Period Resources reflected
in the table above to allow the Company to make the necessary filings in other States in accordance
with Section 4.2. lf PacifrCorp effectuates Closure for any ofthe units no later than the dates in
the table above, then the provisions of4. L I will apply.
4.1.4. Washington Exit Orders
The Washington Clean Energy Transformation Act ('CETA') requires coal-fueled Interim
Period Resources to be out of Washinglon rates by December 31, 2025. Section 6.4 of the
Framework Issues addressing Limited Realignment is intended to facilitate the removal of coal-
fueled Interim Period Resources from Washington rates and address the Washington-allocated
share, per the System Generation-Fixed (.'SGF") Factor, as defined in Appendix C, of all coa.l-
fueled Interim Period Resources whether or not those resources are included in Washington rates.
Washington Commission approval of the 2020 Protocol will constitute an Exit Order for
o .t5lt
.159
l6()
{61
t62
-l(r i
J6t
165
"166
161
](il{o -169
22
4.1.3.3, Coal-f'ueled Interim Period Resources, Oregon Exit
Date 2028 - 2029
The Oregon Parties and the Company agree that the recommended Exit Dates for the coal-
fueled Interim Period Resources shown in the following table should be used in Oregon for
establishing Oregon's Exit Dates and Oregon depreciable lives for these coal-fueled Interim Period
Resources for purposes olthis Agreement, subject to the other provisions ofthis Section 4.1.
Hunter 3
o
o
o
Rocky Mountain Power
Exhibil No. 1 Page 26 of 13.1 EXECUTION VERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
170 Washington, unless modified by Reassignment or Limited Realignment, with an Exit Date of
17 t December 3l , 2023, for Jim Bridger Unit I , and December 31, 2025, for Jim Bridger Units 2-4
472 and Colstrip Unit 4. PacifiCorp and the Washington Parties agree that an Exit Order is not required
173 from the Washington Utitities and Transportation Commission for any coal-fueled Interim Period
1'71 Resources not currently in Washinglon rates, and PacifiCorp can evaluate seeking Reassignment
175 upon approval of the 2020 Protocol by the Washington Commission.
476 4.1.5. Establishment of Exit Dates for Hayden Units I and 2
171 On or before February I , 2021, the Company will make State-specific recommendations
4"ta to Commissions for the treatment of Hayden Units I and 2. If PacifiCorp effectuates Closure for
479 Hayden Units I and 2, then the provisions of 4.1.1 will apply, subj ect to applicable legal
480 requirements.
t8r 4.2. Reassignment of Coal-Fueled Interim Period Resources
182 4.2.1 Company Proposals for Reassignment
,183 After receipt of any Exit Order, PacifiCorp shall analyze whether it is reasonable to
.18,1 continue to operate the affected coal -fueled Interim Period Resource for customers in one or more
4tt5 ofthe States without Exit Orders. PacifiCorp may propose Reassignment ofa greater share ofthe
186 coal-fueled Interim Period Resource to such State(s) to match State load and resource balance, or
+87 request issuance of an Exit Order.e PacifiCorp shall provide its analysis to Parties in each
188 applicable State and may make a filing with the Commission in each State that, as yet, has not
489 entered an Exit Order for such coal-fueled Interim Period Resource consistent with the timeframes
{90 set forth in Sections 4.1 and this Section. IfPacifiCorp seeks Reassignment, the analysis shall be
.191 accompanied by recommendations as to an anticipated Closure date if Reassignment is accepted
e Pro\'ided PacihCorp secures all applicable appro|als. PacifiCory nray effectu.ltc Closure ofa Resource \rithoul
requesting issuance ofanl Exit Order.
o
a
o
Rocky Mountain Po\aer
Exhibit No. 1 Pase 27 or 134 EXECUTION Vf,RSION
Case No. PAC-E-19-20
Wtnessr Joelle R. Steward
492 for such coal-fueled Interim Period Resource. Recommended Reassignments, if proposed, should
.193 include a range ofoptions, including fallback options based on the potential that one Commission
491 may rej ect PacifiCorp's recommendation while another Commission may accept the primary
"t95 recommendation. Notwithstanding this Section 4.2.1, realignment of certain Interim Period
.t96 Resources serving Washington will be determined subject to resolution of the Limited Realignment
19'7 Framework Issue or Section 4. 'l .4 as applicable.
498 4.2.2 Process and Timing
499 Consistent with Section 4,1, for those coal-fueled Interim Period Resources, with an Exit
500 Date on or before December 31,, 2027, the filings including the Company's analysis and
501 recommendations are targeted to occur by February 1,2021. For those coal-fueled Interim Period
5oz Resources with an Exit Date after December 31, 2027 , and on or before December 31, 2029, the
503 filings including the Company's analysis and recommendations are targeted to occur by June 30,
so4 2024, for Exit Orders that are received by December 31, 2023 . Where possible, PacifiCorp will
505 make such filings concurrently in each State without an Exit Order so that each unit or plant can
506 be analyzed as a whole. To the extent a delay to these targeted filing dates is necessary the
507 Company wil[ provide notice to the Parties and Commissions explaining the reason and expected
508 filing dates. For coal-fueled Interim Period Resources with Exit Orders with different Exit Dates,
509 the Company will provide its analysis to the States without Exit Orders within six months after the
510 date any Exit Order is issued by any Commission, subject to the provisions of Section 4. I .4 for the
5t I Washington Exit Orders.
512 If PacifiCorp makes filings pursuant to this Section in multiple States without Exit Orders,
513 then within 60 days from the date the last Commission issues an order pertaining to such filings,
514 PacifiCorp will submit a supplemental filing with each Commission in the State(s) without Exit
21
Rocky Mountain Power
Exhibil No. 1 Pase 28 or 134 EXECUTION VERSION
Case No. PAC-E-19-20
Witness: Joelle R. Steward
o 5r5 Orders summarizing the decisions made by each Commission and PacifiCorp's recommendations
regarding the implications.
4.2,3 Effects of Commission Decisions Regarding Assignment
If one or more Commissions have entered orders accepting, collectively, one-hundred
percentr0 ofthe cost allocation ofa coal-fueled Interim Period Resource beyond any Exit Date, the
costs and benefits of the coal-fueled Interim Period Resource after such Exit Date shall be
Reassigned to the States in accordance with the approved Reassignment as specified in the
applicable Commission Orders. Supplemental filings will reflect the final Reassignment of each
coal-fueled Interim Period Resource as a result of the Reassignment process and Commission
Orders.
If two or more Commissions have entered orders requesting, collectively, more than one-
hundred percentrr of the cost allocation and associated benefits of a coal-fueled Interim Period
Resource beyond any Exit Date, the Company will recommend a pro-rata Reassignment up to one
hundred percent in accordance with the approved Reassignment as specified in the applicable
Commission Orders. Supplemental filings will reflect this pro-rata treatment ofeach coal-fueled
Interim Period Resource as a result of the pro-rata Reassignment process for further review and
approval by the Commissions.
If Commissions do not agree to accept one-hundred percent cost allocation, collectively, of
a coal-fueled Interim Period Resource beyond an Exit Date, as part of its supplemental filings, the
Company will provide its recommendations on the treatment of any shortfall in the Reassignment
-516
-i
,7
il13
519
-i20
521
522
523
521
525
526o527
528
i29
5i0
53 r
532
5i3
53-l
r0 Based on PacifiCorp's owncrship intercst in the coal-f[eled Interim Rcsource. rvhether rvhollvorvned orjointly-
ou'ned.rr Based on PacihCorp's olvncrship interest in the coal-fueled lnterim Rcsource- $trether rvholly-o$'ned orjointly-
orvned.o
25
O
o
o
Rocky Mountain Power
Exhibit No. 1 Page29of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Y'rftness: Joelle R. Steward
535 of a coal-fueled Interim Period Resource or recommendations on capacity reductions through
536 Closures lor further Commission consideration.
537 In the event of either common Exit Dates for all States or Closure as a result of the
538 Reassignment proc€ss or other appropriate regulatory proceedings, the provisions ofSection 4.1.1
53e witl apply.
540 4.3. Decommissioning Costs
5'tl 4.3.1. Process for Determining Decommissioning Cost Allocation
5+2 4.3.1.1. Decommissioning Studies
5.13 The Company intends to undertake a contractor-assisted engineering study of
5l,l decommissioning costs and to make best efforts to complete the study by January 15,2020, to
545 estimate appropriate Decommissioning Cost reserve requirements for the Jim Bridger, Dave
546 Johnston, Hunter, Huntinglon, Naughton, Wyodak, and Hayden coal-fueled Interim Period
547 Resources. Colstrip will also be included in the contractor-assisted engineering study of
548 decommissioning costs, and the Company will make best efforts to complete that portion of the
s49 study by March 15,2020. The Company will provide the information from the study to the States
5s0 as a supplemental filing in all applicable depreciation dockets. The study results will be used to
551 inform the Company's recommendation on the amount of Decommissioning Cost responsibility
552 to be allocated to States for coal-fueled Interim Period Resources that States exit at different times.
5-53 The Company will retain and make available the Decommissioning Studies in future regulatory
55.1 proceedings.
555 4.3.1.2. Decommissioning Studies Update
556 The Company intends to undertake the same process to complete an update to the
557 Decommissioning Studies by no later than June 30, 2024, to estimate appropriate
558 Decommissioning Cost reserve requirements for the Craig, Hunter, Huntington, and Wyodak coal-
26
Rocky Mountain Power
Exhibit No. '1 Page 30 of 13,1 EXECUTION VERSION
Case No. PAC-E-19-20
\r\,ttnessr Joelle R. Steward
o 559 fueled lnterim Period Resources (collectively with the studies discussed in the paragraph above
constituting the Decommissioning Studies), which will be incorporated into a Company-sponsored
depreciation study. The Company will retain and make available the Decommissioning Studies
update in future regulatory proceedings.
4.3.1.3. CommissionDeterminationofDecommissioningCosts
No Party will be bound by the Decommissioning Cost estimates in the Decommissioning
Studies undertaken pursuant to Paragraphs 4.3.1.1 and 4.3.1.2, and final determination ol each
State's just and reasonable Decommissioning Cost allocation for each coal-fueled Interim Period
Resource will remain exclusively with each Commission and will be determined in the
depreciation dockets in which the Decommissioning Costs are included. r2
4.3.1.4. DecommissioningCostsAllocation
For coal-fueled Interim Period Resources having a common operating life across all States,
each State shall be allocated its share of actual Decommissioning Costs based on either an SG
Factor (ifclosed during the Interim Period) or an Assigned Production ("AP") Factor, adjusted for
any Reassignment or Limited Realignment effects (if closed after the Interim Period). For coal-
fueled Interim Period Resources that do not have a common operating life across all States, each
Exiting State shall be allocated, using either an SG Factor (ifclosed during the [nterim Period) or
an AP Factor, adjusted for any Reassignment or Limited Realignment effects (if closed after the
Interim Period), that State's share of estimated Decommissioning Costs based on the
Decommissioning Studies described in Sections 4.3,1.1 and 4.3.1.2. lf the Decommissioning
Costs ordered to be included in the reserve balance established for an Exiting State are less than
the estimated Decommissioning Costs allocated to that Exiting State as specified above, such
560
561
562
563
5(r-t
565
56(r
567
568
569
570o571
572
573
57+
575
576
511
578
579
1r For California. Deconrnrissioning Costs iyill bc addressed in PacihCorp's ncst gencral rate caseo
51r0
21
o 592
59:1
o5{t I
5tr2
583
_5ti.l
5l.t5
58(r
-itil
5IJIJ
-5tt9
590
591
59+
595
596
591
598
599
fi)0
Rocky Mountain Po$,er
Exhibit No. 1 Pase 31 or '134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtness: Joelle R. StelrJard
difference shall not be allocated to any other State under any circumstance. If PacifiCorp
effectuates Closure ofa coal-fueled Interim Period Resource after one or more States have exited
from the Resource, the Company may, with the burden of proof and subject to PacifiCorp
supporting its proposal in testimony,r] propose to allocate to and collect from each State that is
participating in that Resource at the time ofClosure that State's share, based on either an SG Factor
(if closed during the Interim Period) or an AP Factor, adjusted for any Reassignment or Limited
Realignment effects (ilclosed after the Interim Period), ofactual Decommissioning Costs Iess the
regulatory liabilities for Exiting States including interest as described in Section 4.3.2 and less any
difference between the reserve balance established for each Exiting State and the estimated costs
allocated to each Exiting State as described above. Parties in such State(s) may take any position
regarding a Company request to recover Decommissioning Costs.
4.3,2. Accounting for Decommissioning Costs Reserve Balances when All
States Do Not [xit a Unit
After an Exit Date by some but not all States, the estimated Decommissioning Costs
reserves allocated to the Exiting State(s) associated with a coal-fueled [nterim Period Resource
unit, from which that State is exiting, wilI be accounted for as a regulatory liability that is excluded
from rate base. lnterest will be accrued on that regulatory liability at the Company's then-
authorized weighted average cost of capitalla for each State that continues to participate in that
coal-fueled Interim Period Resource after an Exit Date until the decommissioning work on that
unit is completed.
1r PacihCorp's tcstimon) will identifi and c\plain the varianccs bet$een estimatcd and achral Decommissioning
Costs.
rr Not to e\cccd the maximum canl ing chargc allo\r'ed b) applicable law or Commission Ordera
28
Rocky Mounlain Power
Exhibit No. 1 Pase 32 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
'.,,,
4.3.3. Accounting for Interim and Final Retirements
Before any State exits a coal-fueled Interim Period Resource, but no later than December
31,2021, the Company shall propose to the Parties a process for separately accounting for removal
costs associated with interim retirements and final Decommissioning Costs in its accounting
system. Each State may determine the regulatory treatment for such removal costs in appropriate
proceedings.
4.3.4. Individual State Review Process
Any Party, at its discretion and cost, may pursue actions it deems necessary or appropriate
to review and evaluate the Decommissioning Studies or Decommissioning Costs and may take any
positions based on its review and findings. lf a Commission issues an order identifling an
independent evaluator lor the Decommission Studies, and the Commission Order provides for the
deferral and later recovery in rates ofthe cost ofthe independent evaluator, the Company agrees
to initially pay for this independent evaluation.
4.4. QualifyingFacilities
The allocation of QF PPAs shall be treated in accordance with Sections 4.4.1 and 4.4.2 of
this 2020 Protocol, superseding Section (IV)(A)(3) of the 2017 Protocol. For Washington, QF
PPAs will be assigned and allocated consistent with the terms ofAppendix F during the Interim
Period. Other than addressing the allocation ofthe costs and assignment ofbenefits ofQF PPAs
among the States, this 2020 Protocol does not restrict or affect any Commission's jurisdiction over
any agreement or interaction between QFs and the Company. QF PPAs shall be treated in the
fbllowing manner for allocation and assignment purposes.
603
60+
605
606
60'7
60 ti
609
610
6tI
612o613
6l+
615
616
6t'7
6l tt
619
620
621
o
2t)
Rocky Mountain Power
Exhibit No. 1 Pase 33 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtnessi Joelle R. Steward
o 622 4.4.1. Existing QF PPAS
QF PPAs fully executed t5 or as to which a legally enforceable obligation exists16 on or
before December 31, 2019 ("Existing QF PPAs") will remain system assigned and allocated,
subject to any Limited Realignment in Section 6.4, until the end of 2029, after which time they
will be situs assigned and allocated to the State having jurisdiction over the QF PPA for avoided
cost pricing (" state of origin").
4.4.1,1. Wyoming QFAdjustment
The Company agrees to include: (l ) a $5 million adjustment, annually, to reduce Net Power
Costs in Wyoming customer ratesrT beginning January l, 2021 , until December 31,2022; and (2)
a$7.175 million adjustment, annually, to reduceNet Power Costs in Wyoming customer rates from
January l, 2023, untrl December 31, 2029.18 This adjustment will terminate on or before
December 31,2029, or upon issuance of any order by the Wyoming Commission that changes
Wyoming's treatment of the Implemented Issues or the Resolved Issues from the terms of the 2020
Protocol. The adjustment shall be made solely at the Company's expense and not allocated to any
other States.
4.4.2. New QF PPAs
QF PPAs fully executed or as to which a legally enforceable obligation exists after
December 31,2019, ('New QF PPAs") will be situs assigned and allocated lor ratemaking
proceedings pertaining to periods beginning on or after January 1, 2020, to the State of Origin.
623
621
(t25
626
62'7
62ti
629
6i0
631
6-12
(r3 3o631
6:i 5
616
637
639
6.10
o
ri Fully executed means e\ecuted and delii,ered bv each partY lo lhc olhcr part1.
r6 An-r- such legallv enforceable obligation date must be confirmed by an orrler from the applicablc Conrnissiorr
issucd prior to the end ofthe Interim Period.
1r Thc W1'oming QF adjustment rvill be included in the base ECAM costs forecasted in a gcncral ratc casc rvith mtcs
cflcctivc on or after January l. 202 l. The W-yoming QF adjustnent \\,ill be trued up in thc ECAM at 100% (sharing-
bands do not app\").
r8 Thc Wl'oning QF adjustment shall be remored from base ECAM cosls on Decenbcr 31. 2029. or as othcnrisc
spccilicd in Section 4.1. l.l. so that no adjustmenl florvs though to custonrcrc in ratcs altcr that datc unless it $as
dcfcred in the ECAM prior to December 31. 2029.
t0
Rocky Mountain Power
Exhibit No. 1 Page 34 or 134 EXECUTION VERSION
Case No. PAC-E-19-20
\ ,iitness: Joelle R. Steward
o 6,1I 4.4.2.1. Interim Period Treatment - Pre-Nodal Pricing Model
For the Interim Period, the energy output of New QF PPAs witl be dynamically allocated
per this agreement using the SG Factor, priced at a forecasted reasonable energy price defined
below, and any cost ofa New QF PPA above the forecasted reasonable energy price will be situs
assigned and allocated to the State of Origin. The forecasted reasonable energy price is a single
blended market price derived from the Company's Official Forward Price Curve ("OFPC"), scaled
for hourly prices, that was used for setting QF pricing for the New QF PPA. The single blended
market price is calculated by applying the appropriate weighting to the hourly scaled prices from
the OFPC for each market hub. The weightings per market hub are identified in the table below.
The weighting will be applied by month and by heavy load hours ("HLH") and light load hours
C'LLH"). The forecasted reasonable energy price, used lor allocation pulposes, shall be
established at the time a QF PPA is fully executed.
612
6-13
6l-l
6.t5
616
617
6-llJ
619
6-i0
651
652o Market Hub Weightlng by Month. Hl,H
Market .Jan apr Jun Jul aua sep Oct Dec
coB 0.m%0.55%1.34%o 82%3.45%4.O1%8.41%3.69%8.9/.o_9v/.1.19%7.2tr4
l\lid Columbia 24A2%30.2f/,55_74%6122%to gon 41.39/o 81.0s%83.85%15 */o 41.270,1 u 3u/o 40.744/.
1s2%2.53%1_O1%0.66%0.54%0.03%o_76%1.89%1 8s%2.550,4 3 4s%0.30%
64.72v6 s8.6EZ 35 94%21.W,4 16.15%5_7f/o 4.72%2.1r4 3.42%45.19f4 s2.e,8%44.41%
o.laoa o.1!/.1.23%7.46%1.52%t_14/o 7 9504 3.3U,4 6.U%0 33%0.12%o.51y.
9.16"/,1.9e/.1_94%2 03%7.79%o 14%0 ota/o 0.18%1.42%7.82%1.46%2.',tao/a
NOB 0m%o.aj/.1.75%4.40%5.7)%o.13%3.1U/"4.92%1.41%0.?1%0.0c r 10.s4%
Tolal 100 tr/"1m.ocPl 1m.m.r 100 00/o 100.ffi/100 00{1m.ocPz 1m.00%1m.ffi/"1m.0cE6 1m.00%1m.00pl
Market Bub Weighting by Month'Ll.H
Market Jan teb .lun lul AUB sep Oct Dec
COB 0.m/.0.99,1 5.11%15.se/a 75.76%5 gr/d 1.21%0.31%2.43%3.44%1.16%
Mid Columbia 58.14%60.1Cpl 16.58%6_36%71.42%80.4f/,as.s2%92.26%43.21%62.78f/.56.30pl 59,BYC
0.rtr/1.72%oA2%o_MN/,0.39%a 4cf,4 3.04%0.m%0.92%1.97%
33.45%34.66%13.63%)5 49o/L 10 44%3.3CP,4 5.35%2.39%11.€fr/o 27.69f/.25.35%29.6s%
0.gi/.o.06%0.94%o.44%o.93%o 47"/.o.2s%0 oft o_ur/.0.sv/o 0.otrt 0.o(Pt
7.81%3.OT/"r_54%2.41%0.92%o.2r/"0 0cF,6 7.71%4.82%5_61%1.*%7_24%
NOB o.N'%0.uj/d 1.17%a_t3%0.0016 0.00/,a 10%0 00/"0.00%O,OCF,6 0.m%0.m%
Totat 100.@l 100.0cP2 1m.0ls6 1m.ocF,6 100.0c/100.0c/,1m.00/100.0cP2 100 m%100.ocP/"1m.0cr",4 1m ocvo
4.4.2.2. Post-InterimPeriodTreatment
After the conclusion of the Interim Period, assuming resolution and Commission approval
of all Framework Issues, the Parties agree that New QF PPAs will be situs assigned and the costso655
3l
653
65.t
o
o
o
Rocky Mounlain Power
Exhibit No. 1 Pase 3s of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wlnessr Joelle R. Steward
656 and benefits will be allocated and assigned per the methodology developed through the Framework
65"1 process in Section 6.2.
658 5. Resolved Issues - Post-Interim Period Implementation
659 The Parties agree, conditioned upon reaching agreement on a Post-Interim Period Method
660 on the future allocation treatment described in this Section 5 for certain benefits, revenues, costs,
661 and investments. As stated in Section 2, these Resolved Issues ofthe 2020 Protocol are intended
62 to take effect with the implementation of the Post-Interim Period Method. Parties acknowledge
663 that conditions may change materially in unforeseen ways during the Interim Period and that it
661 may be necessary to re-evaluate Resolved Issues as part of the Post-Interim Period Method. The
665 Resolved Issues are identified below.
666 5.1. Generation Costs
667 Following the Interim Period, a fixed share of the Interim Period Resources will be
668 assigned to serve load in each State. The costs and benefits, including environmental attributes,
669 associated with each Interim Period Resource will be allocated and assigned in accordance with
6'10 the lnterim Period Resources fixed allocation provisions (Section 5.1.1), Reassignment olcoal-
671 lueled Interim Period Resources (Section 4.2), and Limited Realignment (Section 6.4),
6'12 5.1.1. Interim Period Resources Fixed Allocation
613 lnterim Period Resources will be assigned and allocated to States based on the SGF Factor
674 for each State as defined in Appendix C. The load information used to determine the SGF Factor
6'75 is subj ect to modification for the inclusion or exclusion of Special Contract loads as determined
676 through the Framework process for resolution ofissues addressed in Section 6.3. The SGF Factor
611 is used to develop the AP Factor lor each unit. Additionally, Interim Period Resources will be
67r.t subject to the Limited Realignment as outlined in Section 6.4 and the Reassignment of Interim
i2
a
o
(,19
680
68I
682
681
6tt1
685
68(,
687
681r
6139
690
691
692
693
691
Rocky Mountain Power
Exhibir No. 1Pase36of 134 EXECUTION VERSION
case No. PAo-E-19-20
Wlnessi Joelle R. Steward
Period Resources as outlined in Section 4.2. Any such Assignment of Interim Period Resources,
along with the Limited Realignment and the Reassignment of Interim Period Resources, will be
subject to the following:
r Accumulated depreciation for Interim Period Resources will be allocated per the
AP Factor. State-specific accumulated depreciation that has been tracked by the
Company due to increased depreciation expenses will be treated as situs to the State
and offset its Resource costs until that State exits from an Interim Period Resource.
. Accumulated deferred income taxes and excess delerred income taxes will be
allocated per the Company's tax software system, using the AP Factor. State-
specific accumulated deferred income taxes and excess delerred income taxes that
have been tracked by the Company due to increased depreciation expense will be
treated as situs to the State and offset that State's Resource costs until that State
exits from an lnterim Period Resource.
. All O&M expenses that are associated with a specific Interim Period Resource will
be allocated per the AP Factor.
o All generation-related O&M expenses that cannot be allocated to a specific Interim
Period Resource through an AP Factoq such as general oftice generation
management expenses, will be allocated to States based on an Assigned Production
Operations and Maintenance ("APOM") Factor, calculated as each States' relative
share of direct-allocated generation O&M expenses. There will be three separate
APOM factors based on FERC classifications, with the APOMS used for steam
generation (FERC accounts 500 - 514), APOMH used for hydro generation (FERC
accounts 535-545) and APOMO used fbr other generation (FERC accounts 546 -
695
696
691
(r91.|
699
700
a 701
o
o
I
Rocky Mountain Power
Exhibit No. 'l Pase 37 of 134 EXECUTION VERSION
Case No. PAC-E-'19-20
VMtnessr Joelle R. Steward
702 554). The APOM factor calculations are shown in Appendix C and also included
703 in Appendix B, Column 5.
'704 . Property tax will continue to be allocated based on gross plant using the GPS Factor
705 as calculated in Appendix C and included in Appendix B, Column 5.
706 o All other rate-base items associated with Interim Period Resources will be allocated
7o'7 consistent with the Interim Period Resource allocations using the AP Factor.
70tt 5.1.2. New Resources Fixed Assignment
709 New Resources include any Resources that are not in commercial operation before the end
7lo of the Interim Period. All costs and benefits associated with new Resources, subject to the
711 qualification below, will be allocated and assigned to States based on a fixed assignment under the
712 process to be determined in Section 6.I - Resource Planning and New Resource Assignment. The
713 Parties agree that a transitional period is necessary to change the cost allocation for future new
7tl Resources that are planned forby the Company, and that any new Resource reaching commercial
715 operation before the end olthe Interim Period will be treated the same as lnterim Period Resources
716 for allocation purposes under the terms ofthis Agreement.
iti 5.2. Transmission Costs
718 The costs associated with transmission assets, except as addressed in Section 6.1, will be
719 dynamically allocated among States on the System Transmission ("ST") Factor, generally
't2o calculated based on a classification ofcosts as 75 percent Demand-Related and 25 percent Energy-
'721 Related, and based on twelve monthly Coincident Peaks, using weather-normalized retail peak and
722 energy data, as more thoroughly defined in Appendix C.
723 All revenues recovered through PacifiCorp's Open Access Transmission Tariff or other
7?1 transmission rate schedules approved by the FERC will be allocated based on the ST Factor
3.t
Rocky Mountain Power
Exhibit No. 1 Page 38 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Vlltness: Joelle R. Steward
o 125 The 2020 Protocol does not preclude PacifiCorp from participating in any independent
transmission organization, regional transmission organization, or other similar wholesale
transmission market subj ect to thejurisdiction and oversight ofthe FERC.
5.3. Distribution Costs
Al[ distribution-related expenses and capital costs that can be directly allocated will be
directly allocated to the States where the related distribution facilities are located. Those
distribution expenses that cannot be directly allocated will be allocated among States on a System
Net Plant Distribution ("SNPD') factol as shown in Appendix B.
5.4. System Overhead Costs
Costs that support more than one function, such as generation, transmission, or distribution
plant, will continue to be allocated on the System Overhead ("SO") Factor after the Interim Period
but will be calculated based on an equal one-third weighting ofthe System Capacity ("SC") Factor,
System Energy Factor, and System Gross Plant Distribution ("SGPD") Factoq as shown in
Appendix B.
5.5. Administrative and General Costs
Administrative and General Costs, General Plant costs, and Intangible Plant costs, both
expenses and investments, which can be directly allocated will be directly allocated to the
appropriate State(s). Those costs that cannot be directly allocated will be allocated among States
consistent with the factors set forth in Appendix B.
5.6. Other Allocation Issues
Items included in the Company's results ofoperations, other than those that are specifically
called out herein, will continue tobe allocated on the same factors used in the 2017 Protocol. The
-726
12',7
128
129
730
7Ul
712
7l:l
7:rl
735
o 'l)(t
737
7.1t!
139
7.10
7.1I
11).
7.13
1++
7.15
o
116
35
o
o
1t7
748
1t9
750
751
'7 52
753
75.1
755
756
757
759
760
761
'762
763
761
165
'76',7
166
Rocky Mountain Power
Exhibit No. 1 Page 39 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Vvltness: Joelle R. Steward
FERC account and allocation factor combinations are included in Appendix B. The algebraic
derivation and factor definitions are included in Appendix C.
The following miscellaneous changes will be made to be consistent with the other
allocation changes:
o Communication equipment allocated on the System Generation Factor during the
Interim Period will change to either the SE Factor (generation-related) or ST Factor
(transmission-related) depending on the nature of the equipment for which the
communication equipment i s utilized.
o Contributions In Aid of Construction ('CIAC") currently allocated on the SG
Factor will change to either the AP factor for generation-related CIAC or the ST
Factor for transmission related CIAC.
. Generation-related dispatch costs and associated plant will be allocated on the SE
Factor.
o Miscellaneous regulatory assets and liabilities, and miscellaneous deferred debits
will be allocated with the appropriate allocation factor depending on the related
assets or underlying costs. Miscellaneous regulatory assets and liabilities, and
miscellaneous deferred debits curently allocated on the SG Factor, will change to
the AP Factor for generation-related and ST Factor for transmission-related items.
Taxes and fees will be allocated as follows:
o Income taxes will be calculated using the federal tax rate and PacifiCorp's
combined State effective tax rate, State specific Schedule M and deferred income
tax amounts will be allocated using the Company's tax software system. Consistent
a
768
.16
o
a
16<)
710
711
1 ,12
173
11t
175
'776
77',1
718
119
7lt0
71,t t
7ti:i
7tt.l
786
1A7
7E IJ
7lt9
790
Rocky Mountain Power
Exhibit No. 1 Pase 40 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
v\,/itnessr Joelle R. Steward
with prior system allocation methods, the Washington Public Utility Tax is
allocated using the SO Factor in lieu of a Washington income tax.
o Franchise taxes, revenue related taxes, Commission assessments and fees, and
usage related taxes are situs or a pass through.
. Prope(y taxes are system allocated based on gross plant and allocated on the GPS
Factor.
. Generation and fuel related taxes will follow the assignment of the Resource.
. Other taxes such as payroll taxes are embedded in the cost ofexpense or capital.
Balances associated with the Troj an Decommissioning will be allocated using the Troj an
Decommissioning Fixed ("TROJDF") Factor. This will not affect State-specific treatment of this
item.
5.7. Demand-Side ManagementPrograms
Costs associated with DSM Programs, including Class 1 DSM Programs, will continue to
be allocated on a situs basis to the State in which the investment is made. The benefits from these
programs will flow back to the State through Net Power Costs or through reduced or delayed future
capacity needs that will be addressed in the development and implementation of the process
identified in Section 6.1 .
5.8. State-Specificlnitiatives
Costs and benefits resulting from a State-specific initiative will continue to be allocated
and assigned on a situs basis to the State adopting the initiative. Historically, these have included,
but are not limited to, programs such as incentive programs and customer and community energy
generation programs, but have not included local fees or taxes related to the ongoing operation of
existing transmission and generation facilities within a State. As new issues arise, PacifiCorp willo191
37
o
o
Rocky Mountain Power
Exhibit No. '1 Pase 41 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
792 bring each issue to the MSP Workgroup to discuss whether each issue is a State-specific initiative,
793 and, ifnot, whether a different allocation method is appropriate.
jsl 6. Framework Issues
795 The Parties acknowledge that certain components olthe Post-Interim Period Method are
7s6 not resolved by this Agreement, including Resource Planning and new Resource Assignment, Net
797 Power Costs / Nodal Pricing Model, the treatment of Special Contracts, post-Interim Period capital
79i\ additions, and other issues related to the transition from a dynamically-allocated system generation
799 portfolio to fixed generation portfolios. As part of the 2020 Protocol, the Parties agree to the
1t00 following processes and timeframes to address remaining, unresolved Framework Issues and to
801 request approval of a new Post-lnterim Period Method agreement by the Commissions. The
802 Company will file for Commission consideration and approval of a new Post-lnterim Period
803 Method in accordance with Section 2. The general understanding reached by the Parties as to
80.1 process and timelines for Framework Issues is as follows.
805 6.1. Resource Planning and New Resource Assignment
806 Continued operation, planning, and dispatch olthe Company's system as an integrated six-
807 State system, to the greatest extent practicable, will likely be beneficial to PacifiCorp's customers.
808 However, because of differing State policies requiring or excluding certain generation resources,
809 it appears infeasible to continue serving customers with a common generation portfolio and
810 dynamically allocating system costs. Continued dynamic allocation of all system costs in this
Itll environment could result in increased costs for some States, if not all. Accordingly, allocating
812 costs and assigning benefits associated with generation capacity will require assignment ofspecific
813 Resources, and potentially certain transmission assets, to a specific State or States. The goal is to
t8
o
Rocky Mountain Power
Exhibir No. 1 Page 42 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtnessr Joelle R. Sleward
otil-l allow PacifiCorp to meet its legal requirements as a public utility in each State in a risk-adjusted,
least-cost manner, while striving to mitigate cost impacts to other States.
PacifiCorp will continue to plan lor capacity and operating needs, both for the entire
interstate system and for each State. PacifiCorp will work with Parties to develop:
. A planning process that optimizes risk-adjusted, least-cost resource portfolios on a
system basis to the extent practicable, while meeting individual State requirements
and maintaining system reliability; and
. A process that assigns benefits and allocates costs ofspecific new Resources added
in order to meet an individual State's needs.
Parties will evaluate these processes in light of existing or new Commission regulatory
processes governing Resource planning procurement, and investment approval.
6.2. Net Power Costs / Nodal Pricing Model ("NPM")
A method to track the costs and benefits of Resource portlolios which may differ for each
State will be necessary in the future to maintain the benefits of system dispatch as much as
practicable. Specifically, after the Interim Period when States may no longer participate in a
common Resource portfolio, a NPM may be used to track cost causation and receipt ofbenefits by
each State for rate-making purposes.
Consistent with and in consideration of the Nodal Pricing Model Memorandum of
Understanding in Appendix D, the Company agreed to begin the development of an NPM with a
third-party vendor and will use best efforts to implement the NPM by the end of January 2021, for
purposes oftotal-Company day-ahead scheduling. Parties intend lorthisto provide sometime and
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Rocky Mountain Power
Exhibit No. 1 Page 43 of 134 EXECUTION VERSION
Case No. PAC-EI9-20
Wtnessr Joelle R. Steward
o 835 experience with the NPM before it may be used lor rate making as part ofthe Post-Interim Period
Method. te
The Company will also use best efforts to implement a model that can forecast NPC based
on the NPM concept. During the Interim Period, this model may be used by the Company for
forecast analysis ofNPC. After the Interim Period, the Company intends to propose the use ofthis
model for NPC lorecasts in applicable rate-making proceedings.
6.3. Special Contracts
The Company will continue to work in good faith with the Special Contract customers to
develop one or more proposals for consideration by the Parties on the treatment of Special
Contracts' loads, costs, and benefits as part ofthe Framework Issues and will make best efforts to
present a proposal to Parties by September 1,2021, with the intention ol incorporating such
proposal into the Post-Interim Period Method.
6.4. Limited Realignment
The Parties agree to investigate during the lnterim Period the potential Limited
Realignment of Interim Period Resources among the States. Limited Realignment is intended to
address, among other potential issues, the transition of Washington retail customers away from
coal-fueled Interim Period Resource in compliance with the Washington CETA by realigning
Interim Period Resources, including natural gas-fueled Interim Period Resources.
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6.5. Post-Interim Period Capital Additions - Coal-Fueled Interim
Period Resou rces
855 For a coal-fueled lnterim Period Resource fbr which one or more States have an Exit Date
856 that differs lrom the depreciable life or Exit Date ordered in any other State, a process is needed
te NPM is intcnded to bc used for total Companl s! stcm dispalch $hen it is futly functiorul and operational and $ill
impact system Net Powcr Costs that flolv through Statc NPC balancing accotlnts.o
l0
Rocky Mounlain Power
Exhibit No. '1 Pase 44 of '134 EXECUTION VERSION
Case No. PAC-E-19-20
Y\ritness: Joelle R. Steward
o for determining the cost allocation for capital investments made in the Resources subsequent to
the Interim Period and prior to the Exit Date for each State. The Parties have agreed to evaluate,
but have not accepted, the following Company straw proposal for post-Interim Period capital
investments, information about which is provided here not for Commission approval but to inform
future discussions.
6.5.1, PacifiCorp Straw Proposal - Post-Interim Period Capital Investment
Allocation Exceptions
For post-lnterim Period incremental capital investments that are made primarily for the
purpose of extending the life ofa coal-fueled Interim Period Resource beyond a State's Exit Date
for that Resource, including but not limited to those associated with achieving compliance with
environmental requirements or those necessitated by catastrophic failure, such investments would
not be allocated to States that have issued such Exit Orders and would be allocated based on the
percentage shares ofthe coal unit Reassignment process addressed in Section 4.2 or as otherwise
determined for States that continue to participate in the coal-fueled Interim Period Resource.
For these incremental capital investments made primarily for the purpose of repairing a
coal-fueled Interim Period Resource following a catastrophic failure of the Interim Period
Resource, such investments would not be allocated to and no generation or benefits will be
assigned to States that have issued Exit Orders for that Resource. Parties in States not allocated
costs for such investments would support recovery of any remaining net book value and
Decommissioning Costs.
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6.5.2. PacifiCorp Straw Proposal - lncremental Capital Investments Made
Between 2024 and the Exit Date Where Exit Date is On or Before
December 31, 2027
tttto For States with Exit Orders for a coal-flueled Interim Period Resource specifying an Exit
al s8l Date on or before December 31, 2027 , capital investments made in such krterim Period ResourceU
-11
Rocky Mountain Power
Exhibit No. 'l Pase 45 of '134 EXECUTION VERSION
Case No. PAo-E-19-20
Vlrftness: Joelle R. Steward
o 8lt2 after the Interim Period and prior to the Exit Date, would be allocated to an Exiting State based on
the AP Factor, adjusted for any Limited Realignment impacts agreed to, and pro-rated for the
number of years remaining based on the longest life ordered in any State's depreciation docket or
rate case by December 31,2020, for such Interim Period Resource States without Exit Orders in
such Interim Period Resource would be allocated the remaining amount of capital investment
based on proportional shares of the AP lactor for the States that will be participating in the coa[-
fueled Interim Period Resource alter an Exit Date. For example, ifa State's Exit Order establishes
an Exit Date four years from the date the capital investment is in-service, and the Interim Period
Resource has the longest remaining life in another State often years, the State with the Exit Order
would be allocated four-tenths ofthat State's share olthe cost ofthe qualifying capital investment.
Each State's allocation of such capital investments would be subject to a prudence review based
on the cost to be allocated to each State consistent with this Section.
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It9:io 6.5.3. PacifiCorp Straw Proposal - lncremental Capital Investments Made
in 2024 and 2025 Where Exit Date is After 2027
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895
tt9(r For States with Exit Orders for a coal-fueled Interim Period Resource specifying an Exit
Date after 2027, capital investments made in such Interim Period Resource after the Interim Period
and through December 3 l, 2025, would be allocated to all States based on the AP Factor, adjusted
for any Limited Realignment impacts agreed to, and prudence of such capital investments for
States with Exit Orders would be determined based on the life established for such lnterim Period
Resource in the Exit Order. Thiswould allow for the reasonable allocation ofcapital and operating
costs for the lnterim Period Resource during a period of time while PacifiCorp pursues the process
established in Section 4.2.
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Rocky Mountain Powe]
Exhibit No. 1 Page,16 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
VMlness: Joelle R. Steward
a 90.1
905
6.5.4. PacifiCorp Straw Proposal - lncremental Capital Investments Made
Between 2026 a.nd the Exit Date Where the Exit Date is After 2027
For States with Exit Orders for a coal-fueled Interim Period Resource specilying an Exit
Date alter 2027, capital investments made in such Interim Period Resource after December 31,
2025, and until the Exit Date, would be allocated to an Exiting State based on the AP Factor,
adjusted fbr any Limited Realignment impacts agreed to, and pro-rated for the number of years
remaining based on the longest life ordered in any State's depreciation docket, Reassignment
proceeding, or rate case as of December 31,2025. States that will be participating in the coal-
fueled Interim Period Resource after an Exit Date would be allocated the remaining amount ofany
capital investment based on the AP Factor calculated lor that coal-fueled Interim Period Resource.
7. Allocation of Gain or Loss from Sale of Assets
Any gain or loss from the sale of Company-owned assets will be allocated among or to
States based upon the proportional allocation or assignment ofthe asset at the time ofthe execution
date ofthe sale agreement. Each Commission will determine the appropriate allocation ofthe gain
or loss allocated to that State as between PacifiCorp's customers and shareholders. Forassets that
have been Reassigned for less than one calendar year as ofthe execution date ofthe sale agreement,
States will be allocated the gain or loss as ifthe asset had remained a System Resource.
8. Interpretation and Governance
8.1. Issuesoflnterpretation
Parties will attempt, consistent with their legal obligations, to resolve questions of
interpretation ofthe 2020 Protocol, in good faith in light of the language ofthe 2020 Protocol and
the intent ofthe Parties.
906
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Rocky Mountain Power
Exhibit No. 1 Page 47 of '134 EXECUTION YERSION
Case No. PAC-E-I9-20
Wtness: Joelle R. Steward
o926 8.2. Workgroups
8.2.1, Framework lssues Workgroup
PacifiCorp will schedule and convene meetings with Parties to continue negotiations ofthe
Framework Issues, which may occur in person or remotely.
8.2.2. Multi-State ProcessWorkgroup
Consistent with Sections 8.4 or 8.5 of this Agreement, the Company will notify Parties and
other MSP participants if it determines a need exists to convene the MSP Workgroup to address
general allocation issues or complaints related to the 2020 Protocol. Any Party to this Agreement,
State utility regulatory agency, or other stakeholder can participate in the MSP Workgroup. The
MSP Workgroup may create sub-committees to investigate or evaluate or make recommendations
as to specified issues. MSP Workgroup meetings may be held in person or remotely.
8.3. CommissionerForum
The 2017 Protocol included a mandatory requirement to hold an annual Commissioner
Forum each January during the pendency of that agreement. Under this 2020 Protocol,
Commission Forums are not required. A Commission or the MSP Workgroup may request such a
meeting of Commissioners. Ila Commissioner Forum is requested, all seated commissioners from
each State will be invited to participate. Commissioner Forums will be public meetings, and all
interested parties will be allowed to attend. Before attending a Commissioner Forum, each
Commission can take such steps and provide such process for public input as the Commission
determines is necessary or appropriate under applicable State laws.
8.4. Proposals to Change the 2020 Protocol during the Interim Period
The Parties agree not to propose or support changes to the 2020 Protocol applicable to the
lnterim Period based on a Pany's dissatisfaction with a reasonably foreseeable outcome from
implementation ofthe 2020 Protocol. Before proposing an alternative or modification to the 2020
927
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932
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Rocky Mounlain Power
Exhibit No. 1 Pase 48 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
\ 4tness: Joelle R. Steward
950 Protocol based primarily on changed or unforeseen circumstances, each Party agrees to first make
951 the proposal to the Parties and attempt in good faith to resolve the concern before asking a
es2 Commission to change the 2020 Protocol. The provisions of this Section 8.4 will apply to any
953 State agency only to the extent consistent with the State agency's statutory obligations.
954 Proposals for modifications to the 2020 Protocol may be submitted to the Company by any
95-5 Party. Proposals received by the Company shall be circulated in a timely manner to the other
956 Parties and the Company shall initiate discussions to attempt to address and resolve specific
957 concerns.
esn 8.5. Replacement of the 2020 Protocol
959 If any stakeholder that is not a Party to this Agreement objects to the use of the 2020
960 Protocol after approval by the Commissions or proposes a new inter-jurisdictional allocation
961 procedure, PacifiCorp may convene the MSP Workgroup and hold discussions to attempt to
962 address and resolve the concems at an MSP Workgroup meeting(s).
e63 8.6. Interdependency Among Commission Approvals
%4 The 2020 Protocol has been developed and negotiated by the Parties as an integrated,
965 interdependent whole. Support by any Party ofthe 2020 Protocol is expressly conditioned upon
966 approval without material alteration of the 2020 Protocol by all Commissions in the States that
967 PacifiCorp has sought approval.20 If any Commission disapproves, alters, or conditions approval
968 of the 2020 Protocol, Parties shall promptly meet and discuss the implications of that Commission's
969 action. PacifiCorp shall report to the Parties any Commission Order of another State conceming
970 the 2020 Protocol. Parties agree to recommend to each Commission that approval of the 2020
971 Protocol be conditioned on other Commissions approving the 2020 Protocol without change.
20 California has historica.lll reYierved allocation methodologics in conjurction \vith a general ratc case.
PacifiCorp's ncxt regulalo{ -nllrdated gcncn rale case \1ill rntbe filed until 2021atthe earlicst.
15
o
a
e?r 9" Cumplinnce with R*sourte Lrwr
9?4 PacifiCorp asssrts ttrat the 1020 Protocol canrpliat with ths requirenrents of rurcnt
9?s resiluree ia$x oiall ofthe $taie* snS rvill uot shi* rish of eomBiioocp arnong PrcifiCorp's States,
9?6 If a lbture ehurge in loui ururt rkx;isi.un, sr Csmmission dt*isiou rcsults in the Cor*punt's
9?? ressrnabte belief that romplia*ce rvith all applicsble lows cannot be schieverJ, the Company rtdl
$?8 raise its cancerns with thc Porties and,/or conlene an M$P \[i:rkgmup rneeting to address the istue"
e?r 10" Signaturs$ sf Fsrtie$ to tke 2t120 Frot*cnl
984 This !02$ Prcttc*l is entscd iuti: by earh Party on the date e.nter.ed below xuch Partyh
9S I sign*ir:re,
PAC}IiICT}RF AL.LIAN"'CE OF WIISTSRN SNEK$Y
CON.!I]II'{ERS
By: ..........
'litl*:
Date: Np.r:saj-b-p-q-l}". ?-Ql?..llate
rJ AHO CONS NRIIATTI}}'] 1 "FAT]UK]I$AHO PLjBI"IC Ul"lt-ITIES COrlIMtr$StrON
S]HFF
By:
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Rocky Mountain Powet
Exhibil No.'1 Pase4eof134 EKECtjTIdlft !'IiB IflN
Case No. PAC-E-19-20
Vvftness: Joelle R. Steward
lllusineas FIannins:
o
Rocky Mountain Power
Exhibil No. 1 Page 50 of 134
*.i1i"i ]"1j!1!t J,i;'J ExxcunoN rrnsroli
e?3 9. Complirnce with Resource Laws
9?4 PaciffCarp asrerts th[t the 2020 llrlotoool mplic wi& the rEquirtmats of cunrnt
9?5 rcsource lawl of all of &s $tates aad will not shift risk af comptiaaoe mong PaeiSCorp's $tatm.
976 If a futrrr cbange in law, corut decisios. or Commissior ilccisior resuls ir thc Ccspsnt's
9?? rersonablc belief that eompliance *ith r.l1 appticahle l*rs cffmot be achievad., tht Cor*pany will
9?& raiss itr concer s rvith the Pmties aadlar corcnc an MSP Wo*group m*tiug to adilress thc issue
e?e 10. $ignatures of Pudes to the 2020 Protocol
$sa This 2020 Protoc$l is eoffid ir*o by *aah psrty os ths dste &terod below suc& Psrt/s
981 siBnaiure,
PAC$ICORP ALLTANCE OT !\TASTERN E}{ERSY
CONSUMER$
By Byot,
S-t$.Isi$.-S.ReilK$$.FJmsl$.e .... .. . *Ti
Date:N*r'ember 22. 2ti
IDAHO CCNS E&VltTl0til LB.A GLIB,
f !( d-L;**--**T****'*
asjt 4
Tirl
DatE:
Date
-.1[{
By -*..--__....-.-.-.
fider
IDAHO PUBI"IC I-.iTILTTIES COMMISSION
S?AFF
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Rocky Mountain Power
'*'T*,llxT":li,rj-llnxucrrmx qsftsl$N
V\ttness: Joelle R. Steward
9. Complinnr* with Rmourc* Laws
PacifiCorp *sserls thrt the ?.020 Pmtocol complies with thc requiremeuts of current
resont'ce laws o{otl st*the $tates and till uot shift risk of rxmplirr*cu arnoug PacifiCorp's States.
If *. ftlhre chnng* in lsly, rorxt dr.cision, or Utxrrnission dccisiou r*sults in the {bmpau5rs
reasonable beliel that urmplience with all applicr$1e larvs cannot be achiovrxl, thu (hnpany will
raisa its concsnrs with the Parties and/or converre ou M$l Workg'rrrup rneeting to address the issua
l{1. Siguatures of Parties to the 2020 Pratoeol
?his 2020 l\otocol is entrrqi into by each Parry oa the dete entcred belrtrv such Pany\
xignattre,
PACII.ICT}RP ALT.IANCF, C}F WEST$E.N E}j6ROY
CONSIIfu{ERS
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IDAI]0 CONSSIIVATION tiE,r'rGLJ[
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sr{F'}'
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Title:
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Rocky Mountain Power
Exhibit No. 1 Page 52 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. stewaru SNSI{I$TI$N l'SRIiIt}l
er3 9. Complianre with Resour*€ La$s
9l{ PaciliC*rp lsserts that {he 2t}20 Frotmol i:omplies rvith tha rnluinxntnls *f ":urrent
(iis rcsilr$c.* Iaws uf nll of,tho Stnles and *'iil uot shiff. risk cf eompiinnce arm*g l)rcifiCorp's Slst+s.
97li If a iirttue *rang,t'i.u la*', urwl tlecisi*n, *i Comrnission dtrcisirm rmults in the Cnrmpal.r's
$?: reatonehle b*liel'that coarplisrtce rsith stl Bpplicable larv-s clmot lrs ar:hi*vr,rj.. the Cccrtrrnny u.ili
$T$ naiss its conr*ms with th* Ps$i$$ *ndlor ceiuv*ne un MSP trVcrhgnrup msstir)g to fiddrss! ihc issrr*.
e?e 10. Signatures ofPrrttes tt thr 2020 Protoc$l
9sS This 2u20 Pnrhcul iri eutered illo by eur$ Feify d$ iho i'lBle *rlterr* bcl$\r' su*!r itsn5"\
f)81 signature.
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Rocky Mountain Power
Exhibit No. 1 Page 53 of 134
Case No. PAC-E-'19-20
Wtness: Joele R. Stewardr-{DCUIION VIRSION
o IN]'E IIWEIJ'T E,NEI(GY AI,I,IANC[i
By,
'I'itle:
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N-ORTI.IWI]ST. & INTERMOTIN.IAIN
POWIIR PRODI.ICI]RS
By:
Title:
Date:
NORT HWTiST [Niil(GY COA],.ITION
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ORITGON ClllIZENS' UTlLll'Y IiOAI{D OI{E(ioN I}IJI}I,IC I.J'IIT.,I'I'Y (]0IVII!,',1SSION
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Exhibit No. 1 Page 54 of 134
Case No. PAC-E-I9-20
Vlllness: Joelle R. Steward,XECUTION VERSION
o
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IDAHO IRRIGATION PUMPERS
ASSOCIATION
By:
Tirle:
Date:
INTERWES YALLIANCE
By:tA
Title:
0r YDate:
MONSAN'IIC COMPANY
By:
NORTT{WEST & INTERMOUNTAIN
POWER PRODUCERS
By:
]-itle:
Date:
NORTHWEST ENERGY COALITION
By:
Title:
Date:
By:
Title:
Date
OREGON CTTIZENS' UI'ILITY BOARD
By:
Title:
Date:
OREGON PUBLIC UTILITY COMMISS ION
STAFF
By:
Tirle:
Date:
o 47
Title:
Date:
Rocky Mountain Power
Exhibit No. 1 Page 5s of '134 EXECUTION VERSION
Case No. PAC-E-19-20
VMtnessr Joelle R. Steward
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IDAHO IRRIGATION PIA4PERS
ASSOCTdIION
By
Title:
Date
INTERWEST ENERGY ALLIANCE
By
Title.
Date:
MONSANTO COMPANY
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l'itle: Attorney for Monsanto
11a1s.. 1112612019
NORTHWEST & INTERMOUNTAIN
POWER PRODUCERS
By
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Date
NORTHWEST ENERCY COALITION
Titl e:
Date
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Date
OREGON CITIZENS' UTILITY BOARD
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Date
OREGON P1IBLIC UTILTTY COMMISSION
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Exhibit No. 1 Pase 56 of '134 I{XI{CIITION YEfLSION
Case No. PAC-E-19-20
VMtnessr Joelle R. Steward
I,NI'T.R\TEST ENF]I{CIY A I..I,IANCE
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Exhibit No. 1 Page 57 of 134
case No. pAc-E-19-20 EKECTUTJON \/ERSION
Wtness: Joelle R. Steward
I IDAHO IIIITIGAI'ION iI L}J\,{IIERS
ASSOCIATION
IN'IIiRWE,S'T ENEI{GY A LLIAN CE
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Exhibit No. 1 Page 59 of 134
Case No. PAC-E-'I9-20
Wtness: Joelle R. Steward
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PACIFICORP IDAHO INDUSTRIAL
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PACKAGING CORPORATION OF
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Exhibil No. 1 Page 60 of 134
Case No. PAC-E-19-20
wtne;s: Jo;tb R. srewad EXE{UTION VERSION
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Exhibit No. 1 Page 63 of 134
Case No. PAC-E-19-20
Vlltness: Joelle R. Steward
EXECUTION VERSION
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Exhibit No. 1 Page 64 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
\Mness: Joelle R. Steward
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Exhibit No. 1 Page 65 of 134
Case No. PAC-E-19-20
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Exhibit No. 1 Pase 66 of '134 EXECUTION VERSION
Case No. PAC-E-19-20
VMtness: Joelle R. Steward
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Cese No PAC-E-19"20
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Exhibit No. 1 Page 68 of 134
Case No. PAC-E-19-20
Vlllness: Joelle R Steward
EXECUTION VERSION
APPENDIXA
Definitions
For purposes of this Agreement, the following terms will have the following meanings:
. "2017 Protocol" refers to the 2017 PacifiCorp Inter-Jurisdictional Allocation Protocol.
. "2020 Protocol" refers to the 2020 PacifiCorp Inter-Jurisdictional Allocation Protocol.
. "Administrative and General Costs" means costs included in FERC accounts 920 through 935.
. "Assigned Production Factor" or "AP" means States' assigned share of a Resource (see Appendix
C for more details).
. "Assigned Production - Operations and Maintenance Factor" or "APOM Factor" means the
State allocated share of all generation related operating and maintenance expenses that cannot be
associated with a specific Resource, such as general office generation management expenses, that
will be allocated to States calculated as each State's relative share of directly allocated generation
operating and maintenance expenses for steam, hydro, and other generation functions (see Section
5. I .1 and Appendix C for more details).
. "Class I Demand-Side Management" or "Class I DSM" means dispatchable or scheduled firm
DSM resources, sometimes referred to as direct load control programs.
. "Closure" means either PacifiCorp's termination of ownership interest in a Resource, permanent
cessation ofoperations ofa Resource, permanent cessation ofreceipt of energy from a Resource, or
otherwise retirement of a Resource.
. "Coincident Peak" means the hour each month that the combined demand of all PacifiCorp retail
customers is greatest, adjusted for normal weather conditions. The hour of coincident peak is
calculated assuming weather normalized retail load, and as it relates to generation allocation factors,
it includes adjustments for Class 1 DSM and Special Contract curtailments. In calculating the
2020 Protocol - Appendi\ A I
Rocky Mountain Power
Exhibil No. 1 Page 69 of 134
Case No. PAC-E-19-20
Witness: Joelle R. Sleward
EXECUTION VERSION
))coincident peak for the System Transmission Factor, the only adjustment will be lor weather
normalization.
"Commission" means a utility regulatory commission in a State.
"Commissioner Forum" means the meeting of Commissioners lrom all States, the goal of which
is to provide an update from the MSP Workgroup. Such a lorum is not required by the 2020 Protocol.
"Commission Order" means a formal determination issued by a State Commission consistent with
its authority as provided by a State's statutes or administrative rules.
"Company" means Pacifi Corp.
"Contributions in Aid of Construction" or "CIAC" means contributions from customers to pay
their share of a capital construction proj ect above the amount their retail rates justify. CIAC is a
reduction to rate base, (see Appendix C for more detail).
"Customer Ancillary Services" means products or services that may be provided by a customer to
the Company, such as in which the Company has the right to curtail electric sewice to the customer
so as to lower the costs of operating the Company's system.
"Customer Ancillary Service Contracts" means contracts between the Company and a retail
customer pursuant to which the Company pays the customer for Customer Ancillary Services
"Decommissioning Costs" means the costs of removal and environmental remediation or
reclamation - net of any salvage value realized - required at the time a generation resource is
physically retired.
"Decommissioning Studies" means the engineering studies carried out in advance ofplanned coal-
fueled Interim Period Resource Reassignment filings in February of 2021 and June o12024, in order
to identify the final Decommissioning Cost liabilities of Exiting States, as specifically identified in
Section 4.3.1 .
"Demand-Related" describes capital and ot.her fixed costs incurred by the Company in order to be
prepared to meet the maximum demand imposed upon its system.
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Rocky Mountain Power
Exhibit No. 1 Page 70 of 134
case No. PAC-E-19-20
Vvltnessr Joelle R. Steward
EXECUTION VERSION
11 "Demand-Side Management Programs" or "DSM Programs" means programs intended to
reduce electricity use through activities or programs that promote electric energy efliciency or
conservation, more efficient management of electric energy loads, or reductions in peak demand.
"Embedded Cost Differential" or "ECD" means the surn of PacifiCorp's production costs of pre-
?005 resources as defined in the 2010 Protocol, excluding west side hydlo, Mid-Columbia Contracts.
and Qualitied F'acility contracts, referred to as "all other generation resources" expressed in dollars
per megawatt-hour compared to west hvdro-electric resources production costs expressed in dollars
per megawatt-hour with the difference multipiied by the hydro-electric resources megawatt-hours
of production, and the differential betrveen the all other generation resources dollars per megawatt-
hour compared to I\{id-Columbia Contracts costs dollars per nega\.vatt-hour multiplied by the N{id-
Colurnbia Contracts megawatt-hours.
" ool)ynamic Embedded Cost Differential" or "Dynamic ECD" means the ECD components
are updated to the test period utilized in the filing.
. "Fixed Embedded Cost Differential" or "Fixed ECD" means the ECD amount flor a State
is set at a point of time and not updated.
"Energy Imbalance Market" or "EIM" means the multi-Balancing Authority Area (BAA) real-
time market operated by the Califomia Independent System Operator (CAISO) that balances
electricity supply and demand every five minutes by choosing the least-cost resource to serve system
load.
"Energy-Related" means variable costs incurred by the Company in order to deliver the energy
required to serve customers.
"Existing QF PPAs" is defined in Section 4.4.1 of the agreement.
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Rocky Mountain Power
Exhibit No. 1 Page 71 of'134
Case No. PAC-E-19-20
Wtnessr Joelle R. Stewad
EXECUTION VERSION
1o "Exit Date" means the date, established in an Exit Order entered by a Commission, on which
PacifiCorp intends to discontinue the allocation ofcosts and assignment ofbenefits ofa coal-fueled
Interim Period Resource to the State issuing the Exit Order.
"Exiting State" means a State with a final order from a State Commission approving the exit from
a coal-fueled Interim Period Resource on a date certain.
"Exit Order" means an order entered by a Commission establishing an Exit Date consistent with
the 2020 Protocol.
"Extended Day-Ahead Market" or "EDAM" means a market currently still in development that
will address ramping needs between intervals and uncertainty that can occur between the day-ahead
and real -time markets.
"FERC' means the Federal Energy Regulatory Commission.
"Five States" means the States of California, Idaho, Oregon, Utah, and Wyoming.
"Fixed Costs'o means costs incurred by the Company that do not vary with the amount of energy
delivered by the Company to its customers during any hour.
"Framework" is defined in Section 1 of the Agreement.
"Framework Issue" is defined in Section 1 ofthe Agreement.
"General Plant" means capital investment included in FERC accounts 389 through 399.
"Implemented Issues" is defined in Section I of the Agreement.
"Intangible Plant" means capital investment included in FERC accounts 301 through 303.
"Interim Period" is defined in Section 2 ofthe Agreement.
"Interim Period Resource" means Resource in commercial operation, or with a contract delivery
date, as applicable, during the Interim Period.
"Limited Realignment" means the assignment of Interim Period Resources among PacifiCorp
States that differ from assignment using the SCF Factor
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Exhibil No. 1 Page 72 of'134
Case No. PAC-E-19-20
Wlness: Joelle R. Steward
EXECUTION VERSION
"Lond-Based Dynamic Allocation Factor" means an allocation factor that is calculated using
States'monthly energy usage and/or States' contribution to monthly system Coincident Peak.
"Mid-Columbia Contracts" means the various power sales agreements between PacifiCorp and
Public Utility District No. 2 of Grant County, PacifiCorp and Douglas County Public Utility District,
and PacifiCorp and Chelan Counry Public Utility District, specifically. the Power Sales Contract
with Public Utility District No. 2 of Crrant County dated May 22, 1956; the Power Sales Contract
with Public Utility District No. 2 of Grant County dated lune 22, 1959; the Priest Rapids Project
Product Sales Contract with Public Utility District No. 2 of Grant County dated December 31, 2001;
the Additional Products Sales Agreement with Public Utility District No. 2 of Grant County dated
December 3 l, 2001; the Priest Rapids Project Reasonable Portion Power Sales Contract with Public
Utility District No. 2 of Grant County dated December 31, 2001; the Power Sales Contract with
Douglas County Public Utility District dated September 18, 1963; the Power Sales Contract with
Chelan County Public Utility District dated November 14, 1957, and all successor contracts thereto.
"MSP Workgroup" means a goup of regulators, the Company, and other interested stakeholders
that convenes to discuss the assignment or allocation of PacifiCorp revenues, costs, and investments
among the states.
"Multi-State Process" or "MSP" means the ongoing CompanyJed convening of Parties from all
six States in which it operates to consider issues related to fair cost allocations among the States.
"Net Power Costs" or "NPC" means PacifiCorp's fuel and wheeling expenses and costs and
revenues associated with long+erm Wholesale Contracts, Short-Term Purchases and Sales and Non-
Firm Purchases and Sales.
"New QF PPA" is defined in Section 4.4.2 of the Agreement.
"Nodal Pricing Model" or *NPM' means a method for pricing electricity proposed by the
Company that is based on the marginal cost ($A^Vh) ol serving the next increment ofdemand at a
2020 Protocol - Appendi\ A l
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Extribit No. 1 Page 73 of 134
Case No. PAC-E-19-20
Wlnessi Joelle R. Steward
transmission constraints
EXECUTION Vf,RSION
118 given pricing node consistent with ex isti ng and the performance
o characteristics of resources.
"Nodrl Pricing Model Memorandum of Understanding" or "NPM MOU" means the agreement
among the Parties on the prudence of the Company's proceeding to implement the Nodal Pricing
Model that may be adopted for the calculation of net power costs (NPC) through a new inter-
jurisdi ctional cost-allocation methodology.
"Non-Firm Purchases and Sales" means transactions at wholesale that are not Wholesale Contracts
or Sho(-Term Purchases and Sales.
"Open Access Transmission Tariff' means PacifiCorp's Open Access Transmission Tariff on file
with FERC.
"Operations and Maintenan means costs incurred by the Company to maintain its
assets that are expensed as defined by FERC.
"Oregon Direct Access Consumer" means Oregon retail electricity consumers that procure
electricity from a supplier other than PacifiCorp under an Oregon Direct Access Program.
"Oregon Direct Access Program" means Oregon laws, regulations, and orders that permit
PacifiCorp's Oregon retail consumers to purchase electricity directly from a supplier other than
PacifiCorp.
"Part5r" or "Parties" means certain State Commission staff members, regulatory agencies,
customers, consumer advocates, conservation organizations, and other interested parties from
Califomia, Idaho, Oregon, Utah, Washington, and Wyoming who have executed this Agreement.
"Portfolio Standard" means a law or regulation that requires PacifiCorp to acquire: (a) a particular
type ofResource, (b) a particular quantity ofResources, (c) Resources in a prescribed manner or (d)
Resources located in a particular geographic area.
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Rocky Mountain Po\^/er
Exhibit No. 1 Pase 74 or 134 EXECUTION VERSION
Case No. PAC-E-I9-20
VMtness: Joelle R. Steward
"Post-Interim Period Method" means the resolution of the Framework Issues combined with the
o Implemented Issues and the Resolved Issues are all intended to result in the new allocation
methodology for PacifiCorp's six States.
"Post-Interim Period Resources" means Resources that begin commercial operation, or with a
contract or delivery date, as applicable, after the end ofthe Interim Period.
"Qualifying Facility" or "QF" means small power production or cogeneration facilities developed
under the Public Utility Regulatory Policies Act of 1978 (PURPA) and related State laws and
regulations.
"Qualifying Facility Power Purchase Agreement" or "QF PPA" means contracts to purchase the
output of a Qualifying Facility by the Company.
"Reassignment", "Reassign", or "Reassigned" means assigning benefits from an Exiting State's
share ofa coal-fueled Interim Period Resource to those States with Commission orders to accept the
cost responsibility allocation for the Exiting State's portion ofthe coal-fueled Resource.
"Resolved Issues" is defined in Section 1 ofthe Agreement.
"Resource" means a Company-owned generating unit, plant, mine, long-term Wholesale Contract,
Short-Term Purchase and Sale, Non-firm Purchase and Sale, or QF contract.
"Short-Term Firm Purchases and Firm Sales" means physical or financial contracts pursuant to
which PacifiCorp purchases, sells, or exchanges firm power at wholesale and Customer Anciltary
Service Contracts that are less than one year in duration.
"Short-Term Purchases and Sales" means physical or financial contracts pursuant to which
PacifiCorp purchases, sells, or exchanges firm power at wholesale and Customer Ancillary Service
Contracts that are less than one year in duration.
"Special Contract" means a contract entered into between PacifiCorp and one ofits retail customers
with prices, terms, and conditions different from otherwise-applicable tariffrates. Special Contracts
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Rocky Mountain Power
Exhibit No. '1 Page 75 of 13,1
Case No. PAC-E-19-20
Wtness: Joelle R. Sleward
EXECUTION VERSION
may provide for a value consideration to the customer to reflect attributes of Customer Ancillary
Service Contracts.
"State" means California, Oregon, Idaho, Utah, Washington, or Wyoming.
"State Resources" means Interim Period Resources whose costs are assigned to a single
jurisdiction to accommodate jurisdiction-specifi c policy preferences.
"System Energy Factor" or "SE Factor" is defined in Appendix C.
"System Generation-Fixed Factor" or "SGF Factor" is defined in Appendix C.
"System Gross Plant Distribution Factor" or "SGPD Factor" is defined in Appendix C.
"System Net Plant-Distribution Factor" or "SNPD Factor" is defined in Appendix C.
"System Overhead Factor'i or "S0 Ff,ctor" is defined in Appendix C.
"System Resources" means Interim Period Resources that are not State Resources and whose
associated costs and revenues are allocated among all States on a dynamic basis.
"System Transmission Factor" or "ST Factor" is defined in Appendix C.
"Trojan Decommissioning" means costs associated with decommissioning the Troj an Plant.
"Trojan Decommissioning Fixed Factor" or ("TROJDF") is defined in Appendix C.
"Trojan Plant" means the now-decommissioned nuclear plant for which the Company is still
recovering costs.
"Variable Costs" means costs incurred by the Company that vary with the amouit of energy
delivered by the Company to its customers during any hour.
"Washington Public Utility Tax" means a Washington tax on public service businesses, including
businesses that engage in transportation, communications. and the supply of energy, natural gas, and
water, The tax is in lieu ofthe business and occupation (B&O) tax.
"West Control Area Inter-jurisdictional Allocation Methodology" or *WCA" means the
allocation protocol methodology used by Washington to allocate costs consistent with its Balancing
Area Authority-based principles governing the assets deemed to serve Washington.
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Exhibit No. '1 Page 76 of 134
Case No. PAC-E-'19-20
Wtness: Joelle R. Steward
EXECUTION VERSION
190 "Wholesale Contrncts" means physical or financial contracts pursuant to which PacifiCorp
purchases, sells, or exchanges firm power at wholesale and Customer Ancillary Service Contracts.O
o
9
o
2020 Protocol - Appcudix A
Rocky Mountain Power
Exhibit No. 1 Page 77 of 134
Case No. PAC-E-19-20
Witness: Joelle R. Sieward
EXfCUTION VERSION
APPENDIX Bt
o
a
Allocation Factors by Account by Revenue Requirement Components
Rocky Mountain Power
Exhibit No 1 Page 78 of 134
*,,'"* I"1',!tl;1 J,i;',8
2020 Protocol - Appendix B
Allocation Factors by Account by Revenue Requirement Componentso234
INIERIIU PERIOD
FACTOR
5
POSTINTERIM PERIOO
EAlIgAFERCACCT ACCTNAME
Slbs !o Ultim.le Cuslorners
110 Resideniialsales
REVENUE REOUIREI\4ENT COIVIPONENTS ASSICNED TO FACTOR
RelailReveoues Drrect assiqned - Junsdrclion S S
442
S S
Public Slreel a HEhway Lqhlino
Relail Rov€nues Oirecl assigned. J'rrisdiclion S s
445 oln€r ssl6s to Public Aulhorily
Relail Rev€nues Dnecl assigned - Junsdidaon S S
444
Rslarl Revenues Oirecl assigned - JuisdiclOn S S
Whol€sal6 Sales Oarocl essEn€d - Jurisdilion
Non-Firm
Fim
S
SE
SG
119 Provison lor Rale Relund
Ot€cl assigned - Jurisdiclion
Transmission
S S
o SG SI
Other Eleclric Operaling FevenueB
,150 Forieded oiscounls & lnleresl
RetaitR6v6nues oired assigned - Junsdidion S S
451 Mlsc Elealic Revenue
R6[ail Revenues Dir€d essgned . Jurisdidion
olher - common
S s
so SO
453
RetailR€v€nu€s Drrecl assign€d - Juisdrtion SG
Re of El6.tri. Prcpedy
R6lail Rev6nu6s Direct essigned - Jurisdiction
Common
Other , Common
S S
SG
SO
SI
SO
456 olh€r Eltoclric Revenue
RalaalRevenu€s Direcl essigned - Junsdictioo
wheelaru Non-15nn Othor
Common
Wh€€lrng - Farm, Qllrer
CuslomerRslsl€d
S
SE
so
SG
CN
S
ST
so
ST
CN
o
2020 Prolocol - Appendi\ B
I
Commorcial& lndustielsales
R€laalRev6nues oir€cl assigned - Junsdiction
1
Rocky Mountain Power
Exiibit No. 1 Page 79 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2 3 4
INTERIM PERIOD
@E
5
POST INTERIM PERIOD
@EEEEgISI
ll,!iscellansou6 Revenues
41 160
a99.r.!4UE @
Gain on Sale ofUlil y Phnl- CR
Disiribdion
Produclion
Traltsmissiol
Ganeralotrrce
S S
SG
SG
SO
ST
so
41170
S S
4t t8 Gain from Emission Allowances
SO2 Emiss ion Allowance sales SE
SE
ST
SO
41181 Gain frorn orsposilion ol Nox credils
Nox Emassion Allowanc€ sat€s
421 (Gain) / Loss on Salo of Utny Pbnt
Distri bulion
Produdion
Tmnsmissbn
c6neralOtrrce
cuslomerReleled
S
SG
SG
SO
CN
S
ST
so
CN
Mascellarleous Erpenses
4311 lnterest on Cuslornel Doposits
CtEtomer Servace Oeposats
Oirect assigned - Junsdiclion
CN
S S
Slerfi Power cen€ralion
500,502 504-514 opsrBlion SupeNision & E gineerang
Steam Planls o&M
501
SE
503 S1e3m From Other Sources
Sleam Royallies SE
Nuclear Potver Generulion
517 - 532 Nuclear Power O&M
SG
tlydraulic Power Generation
535 545 Hydrc O&M
Easl l_lydro o&M
Oth6r Power Generation
545 548-554 Opelalion Super & Emrneering
Other Produclion Planl
SE
547
22020 Prolocol - Appcndix B
1
Loss oo $le of ulilily Plenl
Oislribution
Produclion
Transmission
GeneralOffica
Rocky Mountain Power
Extribit No. 1 Page 80 of 134
Case No. PAC-E-19-20
\Mtness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2
a99.r-!4UEEEEg_49.9I
Oth.r Powrr s!pply
555
REVENt,]E REOUIREMENT COMPONENTS ASSIGNED TO FACTOR
Tracling Medlanisms S
SG
SE
S
556 Syslem Conlrol E Load DEPalci
Olh€r ExP€ns€s SG
S
SE
SG
SE
557
Direcl assiqned - Junsdiction
SGCT
S
SE
APOMS, APOMII, APOMO
TRANSMKiSION EXPENSE
560-564 586,573 Transmissbn o&M
Transmission Planl O&M SG ST
565 Trcnsmisslon ol Electricily by OlheG
Firm Wneelng
Non-Frnn vvlreeling
GRIO Management Charge
SG
SE
SG
ST
ST
DISTRIBUTION EXPENSE
580 - 598 Dislribution OEM
Oirecl assigned . JunsdiclDn
other oistribulion
S
SNPO
s
SNPO
CUSTOMER ACCOUNTS EXPENSE
901 ' 905 Cl,slomerAccouflls O&M
ojrecl sssignsd _ Junsdidion
f olal Syslem Cuslomsr Rebled
s S
CNCN
CUSTOMER SERVIGE EXPENSE
907 ' 910 CuslomsrsoNice o&M
oil6ct assagned - Jurisdiclion
Tol6l Syslem Cusiomer Relal6d
S
CNCN
SALES EXPENSE
911 - 916
Dirscl assi0ned - Jurlsdiclion
Tolel Syslem Cuslomer Related
S S
CN CN
AOMINISTRATNE & GEN EXPENSE
920-935 AdminbtralivellceneralExpense
oir€c1 assEn€d - Jurisdicljon
CustomerRelaled
Min9
FERC Rsgulabry E.)(pense
ceneral
s
CN
SE
SG
SO
S
CN
sf
32020 Protocol - Appendix B
I 3 45
IIIIERIM PERIOO POST INTERIM PERIOD
EAS.ISE EA9]98
Rocky Mountain Power
Exhibit No. '1 Paoe 81 of 134
Case No. PAC-E-19-20
V!ftness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2 3 4
INTERIM PERIOO
EaEq
5
POSTINTERIM PERIOD
@rs8FERC ACCT AggI-!4!E REVENUE REaUIRETVENT COMPoNENTS ASStcNEp TO FACTOR
DEPRECIATION EXPENSE
403SP Sleam Oeprechlion
sl€8m Pknls SG
SG
SG
SG
SG
SG ST
403NP Nuclear Depreciala0n
403Ht)
tusl Hydro
,r03()P otier Produclion DeprscElon
olhbr Produclion Plant
4O3TP Transmission Oeprecialion
Transmissbn Plarn
4!i3 Dblrihnion Oeor€ciston oirecl assiqned - Jurisdiclion
Land A Land Rig s
structures
stBlion EquiprEnt
Slor€g€ B8lt€ry Equipmsnt
Pol6s & Totrsrs
Oh Conduclors
UG Conduil
UG Condudor
Line Trans
struices
M610rS
lnsl Cusl Ptem
Leasod Prope.ly
Slreet Lighting
S
S
S
S
S
S
s
s
S
s
S
s
S
S
S
s
S
S
S
s
S
S
S
s
403GP GeneralDeprecration
D'shbutur
Easl Bydro
S
SG
SE
SG
SG
SG
CN
so
SE
S
ST
CN
SO
42020 Protocol - Appeldix B
I
Rocky Mountain Power
Exhibit No. 1 Page 82 of 134
Case No. PAC-E-19-20
Vlltness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
I
Amorl otLT Plsnt. cap L€as€ sleam
Sleam Prcduction Planl
4
INTERIIU PERIOD
EAqI9E
5
POST INTERIM PERIOO
EA9]98
s
ST
2 3
FERC ACCT @.94E REVENUE REOUIREI\IENT COMPONENTS ASSIGNED TO FACTOR
,.I{ORTIZATION EXPENSE
404GP Amon ofLT Planl - Cap(alLease Gen
Direct assigned - Jur6dElion
General
Cuslomer Retated
404SP
4O4HP
405
405
Amorl otLT Planl - lnlangibl6 Plant
Obldhnion
Produclion
Transmission
ceneral
Mining Planl
cuslomorRelaled
s
SO
CN
s
ST
so
CN
S
so
CN
SG
S
SG
SO
SE
CN
SE
SG
SG
Amod of LT Planl'Mining Plarn
Mining Planl
Amodit lion of olh6r Eleclric PIam
Pscilic tlydro
Easl Hydro
Amodizeiion of Olhor Elsclric Plenl
Oirecl assigned - Jurisdiclion
Arnotuzalion o, Planl AcquisilOn Adj
Direcl assigned - Jursdiction
Producllon Planl
Amon oi Prop Losses Unfec Pbnl,61c.
DireclassEned Jurbdiclion
Produdaon,
Transmission
D6i6n6d hveslment Tfi crodil - Fed
tTc
Oeiorrcd ln\€stme Taxcredil- daho
tTc
SS
s
SG
s
SG
SG
S
40t
Tares other Thrn lrEoma
aO8 Tates Oth6rlhEn lrrcorn€
oircclEssiqned Jurisdiclion
Prop€rty
SYslem Texss
Misc Ene€y
Misc Production
s
GPS
so
S
GPS
SO
SE
DEFERRED ITC
41140
OGU
41141
52020 Protocol - Appendix B
DGL OGUF
Rocky Mountain Power
Exhibit No. 1 Page 83 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
Allocation Factors byAccount by Revenue Requirement Components
2 3
IEE.9IE.SI
127
ACCT NAME REVENUE REOUIREIVIENT COIVPONENTTi AssIGN EO TO FACTOR
hteresl on Long-T€m Debt
Dirocl sssioned - Junsdiclion
hlercsl Expsnse
S
SNP
S
SNP
424 Amonizslioo of Debl Disc 6 E4
lri6r6sl Expenso SNP
429 Amortizalioo ol Premium on O€bl
lnterest E)ponse SNP SNP
431 Other lnleresl be€nse
nlerest Epense SNP SNP
432 AFUOC Borrow€d
AI-UDC SNP SNP
lnl€resl & Divrd.ncls
4t9
sNt,SNP
OEFERREO INCOIVE TAXES
41010 Detuffed hcome Tex' DR
oirecl assigned - Jurbdiclion
Non-Coal end GEs Ploduclion
Coelarld Gas Produclion
Tlansmisslon
Customor Relaled
Properly Tax rslelod
Miscellaneous
Tror€n
OislriDution
Mining Plent
Bed Debl
Tax Deprccialion
s
SG
SG
SG
CN
SO
GPS
SNP
TROJO
SNPD
SE
BADOEBT
TAXDEPR
s
CN
SO
GPS
SNP
TROJOF
SNPO
BADDEBT
TAXOEPR
62020 Protocol - Appendir B
,l 45
INTERIU PERIOD POST II{TERIM PERIOD
EASIgE EAgg
Rocky Mountain Power
Exhibit No. 1 Page 84 of 134
case No. PAC-E-'19-20
Wlness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
I 2 4
INTERIM PERIOO
FACTOR
5
POSTINTERIIU PERIOO
BgISEOEEE9ISqIASqI-!AUE REVET\IUE REOUTREMENT COMPONENTS aSSTGNED TO FACTOR
DeEned lncome Tax -CR
oirecl assrgned - Junsdlclion
Non-Coal and Gas Production
Coaland Gas Produclion
Transmission
CuslomerRelaled
G6n6ral
Propsny Tax rslalgd
Miscollaosous
Troian
Dast.ibulion
Minin9 Plarn
ConliDulaons in AE of Conslruclion
Product|on. other
Boot D6precialion
,tili0
s
CN
SO
GPS
SNP
TROJO
SNPO
SE
ctAc
SGCT
SCHMDEXP
S
ST
CN
so
GPS
SNP
TROJOF
SNPD
c rAc
SCHMDEXP
SCHEOULE -M ADDMONS
scllMAF Addilions - Flow Through
Direcl assigned - Junsdiclion S
SCI]MAP Addilions - Permanenl
Oirocl assEned - Jurisdiclion
Mining rcl3ted
General
Non-Coal and G€s Produclron
Coaland Gas Produclion
Transmission
o€Prcoalion
o
S
SE
so SO
ST
SCt]MDEXPscltMuExP
ScFMAT AddiliorE - Tempomry
Darecl assigned - Jurisdiction
Bad Debl
Cortdbrrlions in At oi conslruciion
Misc€llen60us
Trojen
Non{oal and Gas Prodlrlion
Minil|g Plant
Coeland Gas Produclion
Transmission
PrcPorly Tax
Gensml
D€Pr6oation
Dislrihrion
Poduclion, Olier
EAOOEBT
crAc
SNP
TROJD
SE
GPS
SO
SCHMDEXP
SNPD
S
EADDEBI
ctAc
SNP
TROJOF
GPS
SO
SCHMOEXP
SNPD
o
12020 Protocol - Appcndi\ B
Rocky Mountain Power
Exhtbit No. 1 Page 85 of 13,1
C€se No. PAC-E-19-20
\Mtness: Joelle R. Ste\,vard
Allocation Factors by Account by Revenue Requirement Components
3 4
INTERIM PERIOD
E4S.IgE
5
POSTINTERIlvl PERIOD
FAC]ORolEEgIgq ACCT NAME REVENUE REQUIREMENT COMPONENTS ASSIGNED TO FACTOR
SCHEDULE. IlI DEDUCTIONS
scllMoF Deductions - Flow Through
Direct Assagn6d ' Junsdalion
cosland Gas Produclpn
lransmassion
Non-Coal ald oas Poduction
s
ST
SCUMOP
scrMoT
Oeduclions - Pemenoot
Dr€cl Assignsd - Jurisdiclion
Mining Rslatod
OoProcislion
Misc€lleneous
G€n6ral
SCHMDEXP
SNP
SO
s
SCI]I'JlDEXP
SNP
SO
Osduclions - Iomporery
Oa.6cl assioned - Jurbdiclion
B€d D6DI
Masc€llansous
Noft Coal arxl Ges Produclion
Mining relal6d
coeland Gss Produclion
lrensmis.irn
Properly Tax
G6n6ral
oapleajalaon
oislribdion
CLEtom€rRslstod
S
BADOEBT
SNP
ST
GPS
so
TAXDEPR
SNPD
CN
BADDEBI
SNP
SG
SE
SG
GPS
so
TAXDEPR
SNPD
CNo
409t 1
,109't 1
40911
,40910
,10910
40911
40911
lncom€ Belore T (es
R6o6wabb Eneey Tax Cr€dil
RerEwabls En€€y / Produclaon Taxcredn
PacifiCorp Minsmls lnc.
Forcon Tex Cfodil
CALCULATED
SG
s
SG
SE
so
CALCULATEO
so
Stoam Produclion Phnl
310 - 316 Ste3m Pranls
Nucl€aa Production Plairt
320-325 Nucl*r Planl
Hydraulic Phnr
330.336
SG
SG
SG
SG
I
o
2020 Prolocol - Appcudis B
Easl Hydro
21
S
SG
SG
SG
Rocky Mountain Power
Exhibit No. '1 Page 86 of 134
Case No. PAC-E-19-20
Vlitness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2 3
4g9I-844E REVENUE REQUTREMNT COMPONENTS ASSTGNED TO FACTOR
4
INTERIIVI PERIOD
E49.I9E
5
POST INTERIM PERIOD
EA.9IqEFERC ACCT
olherProd$tion Planl
340 346
IRANSMESION PLAiIf
350 3s9
OISTRIBUTION PLANT
360,373
GENERAL PLANT
3E9 - 396
olh6r Produclion Plant
Olh€, Production Plad - Silus
olher Produclion Planl
s
SG
S
S
SG
SG
S
SG
SG
SG
SG
CN
SO
SE
SG
S
Franchise & Consenl
Direcl assqned. Jurisdiclion
ST
S
Oislribution
Eesl Hydro
CustomerRelated
Geo6ral
Minirc
SG
SG
SG
CN
so
SE
SE
SG
so
SG
SG
S
CN
SO
E
399
1011346
1011390
303
General Gas Lane Capilal L€ss,es
cap al Le3se
Onecl assqnod. Junsdrclion
s
SO
ST
Gen6rrt capilalteases
Oirccl assiqned - Junsdiclion
ceneral
G6ne13lion
Trensmission
INTAI!G18LE PLANT
30r
SS
Oirocl assoned - Judsdiclion S
ST
MiscellaneoLrs lnlangibb Planl
olstribdion
Paciiic Hydro
Easl Hydro
Produclion
Transmission
clJslomerRelaled
G6n6ral
Minang
Olher
S
ST
CN
so
SGF
2020 Prctocol - Appendix B
1
302
Rocky Mounlain Power
Exhibit No. 1 Page 87 of 134
Case No. PAC-E-19-20
Vlrftness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
FERC ACCT
23
ACCT NAME REVENUE REOUIREMENT COMPONENIS ASSIGNEO TO FACTOR
Less Non-Lrl dy Planl
Direcl assigned Jl]risdiction
4
INTERIIV PERIOD
FACTOR
5
POST INTERIM PERIOO
FACTOR
303
S S
Rate Be3e ,\dd ions
l05 Planl H€ld For Futurs Uso
Dl.scl assiqn€d - Jurisdiclion
Produdion
Tmnsmission
Mining Phnl
s
SG
SG
SE
s
SG
SG
SG
SG
s
so
S
ST
114 Eleclric Plant Acquisilaon Adjush€nts
Direcl assignod - Juisdiction
Produclion Plafll
Trsnsmassion
115 Accum Provision lorAss€t Acquisilion Adjushenls
Direcl assigned - Jurisdilion
Produclion Pbnl
Trensmission
S
ST
s
ST
S
SO
SO
124
Oi.ecl assEn€d - Jur6diclion
128
G€neral
I82\,1/
Di.ecl assiqned - Junsdiclion S s
1a6W
or€al assigned - Junsdrclion S S
151
sleam Produ.lron Pla l SE
SE
SE
SE
SE
152 Fuel Slock - UndElribded
Steam Produclion Plant
25314 UAMPS Working Gpital DePosal
Mining Pbrn
25317 DGaT Worl{nO Cspilal Doposil
Mining Planl
25319 Provo Worting Cepilal O€pos
Mining Planl
2020 Protocol - Appendi\ B 10
Rocky Mounlain Power
Exhibit No. 1 Page 88 of'134
Case No. PAC-E-'l9-20
Vlitness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2
Masc De'6ned oebils
cash wofting captul
3 4
INTERIIV PERIOD
FACTOR
5
POST INTERIiI PERIOO
FACTOR
S
ST
SO
SNPD
FERC ACCT
154
4ggL!44E FEVET{UE REOUTREMENT COMPONE TS ASSTGNEo TO FACTOR
Melefials and supplies
Dirccl assi0nsd - Jurisdiclion
Pmduclion,
Iransmission
Miniog
Produclion - Common
Gonortl
Distnbdion
Produclion. Olher
S
SG
SG
SE
SG
so
SNPD
153
165
182M
185M
slores Erponse undislribuled
General
Provo working Capilal O6Posd
Provo Working Capital Deposil
SG
so
SG
SO
Direclass0ned Jurisdiclion
Mmmg
Masc Regulelory Assets
Direct assEnod - Jurisdi:lion
Produclion
Trsnsmissaoo
Mining
G606aal
Production, olher
Olh€r
SS
GPS
ST
so
SI
SO
SGF
ST
SO
SGF
GPS
SG
SE
SO
S
SG
SE
so
SGCT
o
cwc
owc
131
135
141
143
Direct assi9n6d - Jurisdiclion
G6n6ral
Mining
Produclion - Common
Oltl€r
olterWoftirE Capilal
cash
wofting Funds
Nol6s Re.eivable
olh6r Accornls Recaavable
SNP
so
SO
S
SG
SO
SE
SG
SG
Directassqned Jurisdlclron SS
SNP
so
SO
2020 Protocol - Appcndi\ B 11
1
25316
Rocky Mountain Power
Exhibit No. 1 Page 89 of 134
Case No. PAC-E-'19-20
Wtness: Joelle R. Slewa.d
Allocation Factors by Account by Revenue Requirement Components
2 3 4
INTERIM PERIOO
E4S]9E
so
SE
SG
SE
SE
SE
5
POST INTERIM PERIOO
EAS]98
so
ST AP SGF
FERC ACCT 4.9.9.r!4UE @
Other oelened Cred s - Misc
Other Oeferred Crodits Misc
ARO Reg Liabilily
232
25330
230
251105
Rare aase ooduclion3
235 cuslomer service Deposils
Oned assignsd - Jurisdiclion S S
u8'l Prov for Propeny lnsumnce
Prov for Propedy lnsurance
Prov for lnjuries & Damagss
Prov lor njuries & Oamaq€s
SO
SO
so
SG
SO
so
2283 Prov for Pensions and Seneils
Prov for Pgnsions and Eengtls
22441 Accum Misc Op6rProv-BI6ct Lung
Other Prod*lion
254105 FAs 143 aRO Regulatory Liabilily
ARO
Trojan Planl
S
TROJO
S
TROJDF
230 Asset Retiremont obligation
Ircjan Pla IROJD TROJDF
c0slomer Advances lor constn].tion
Direct ass0ned - J'rrisdiclion
Producllon
Transmisson
customer Relaled
S
SG
CN
ST
CN
ST
SO
SO
253!48 S02 Errnss ons
s02 Ernissions
S
SG
SG
so
SE
SO
25399 Othor Delened Credils
Dir€ct assioned - Jurisdiclion
Produclbn
Tre16mission
Gon€rsl
Mining
254 Regulatory Lrabrlilies
2020 Prolocol - Appcndis B 12
,|
Rocky Mountain Power
Exhibit No. 'l Page s0 of 134
Case No. PAC-E-19-20
v\,tnessr Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2 3 4
INTERIM PERIOO
FACTOR
5
POST INTERIM PERIOD
faslgEoFERC ACCT
190
AgSLIAUE REVENUE REOUIREIMENT COMPONENTE ASSIGNED TO FACTOR
Accumulalsd Def€d6d hcome Taxes
Oirscl essi0ned - Jurisdicli0n
B3d oebt
Non-Coal and Gas Produclon
coalBnd Gas Produclion
Tlansmission
CustomorRelaled
General
Miscollaneous
rrojan
oiskibulion
Manng Planl
s
BAODEBT
SG
SG
SG
CN
SO
SNP
TROJD
SNPD
SE
S
BAOOEBT
ST
CN
SO
SNP
TROJDF
SNPD
241 Ac@mulal€d Defefied lncom€ Taxss
Non-Coal snd Gas Production
Coalard Gas Prcdlrlaon
Transmassion
SG
SG
242 Acotmulal€d Delafiod hcome Ta)€s
Direcl essigned - Jurisdblion
D€prBc!€lion
Non-Co8l and Gas Produclron
Coel and Grs Produclion
Transmission
Cuslom€r Rolel€d
General
Mhcellaneous
D€precialion
Depr€ci9laon
Systom Gmss Planl
cor{riDulion in Aid of coEtruclion
Mining
o
S
OIIBAL
SG
SG
CN
SO
SNP
TAXDEPR
SCHMOEXP
GPS
c tAc
SE
s
OITBAL
ST
CN
SO
SNP
TAXOEPR
SCHMDEXP
GPS
crAc
Acormulated DelEr€d hcoms Taxss
Direct assigned - Jurisdiclion
Dep6cielion
Non-Cosl and Gas Produclion
Coalsnd GEs Produclion
Trensmission
cuslomerR6l€l6d
Genoral
Miscetlaoeous
Trojen
Prcduclion, gllr6r
P.oporly Tax
Mining Pbfl
S
DITBAL
SG
SG
SG
CN
SO
SNP
TROJD
SGCT
GPS
SE
DITBAL
ST
CN
SO
SNP
TROJDF
GPS
Accumutalsd lnvestment Tex Credil
Oarecl essEned - Jurisdicton
lnveslmenl f&( credils
loveslllEnt T8x credals
lnleslm€nt Tar Credils
hvestmenl Tax credils
lnvesl n6nl Tsx credils
lnveslanonl Tax Cedits
lnlBslment Texcrcdila
s
rTca,t
tTca5
rTc86
ITC6E
rTc89
rTc90
o
2020 Protocol - Appendix B 13
S
TC84
TC85
lTc86
ITC6E
TC89
TCg0
SGF
I
Rocky Mountain Power
Exhibit No. 1 Page 91 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. S(eward
Allocation Factors by Account by Revenue Requirement Components
2 3 4
INTERIM PERIOD
EAS.IqE
POST INTERIIU PERIOD
FACTORFERC ACCT A99.I!4UE REVENUE REOUIREIIIENT COIVPONENTS ASSIGNEO TO FACTOR
PRODUCTION PLANT ACCUM OEPREC|ANO
l06SP Stoam Prod Planl Acormu!€led Oepr
Sleem Planls SG
SG
SG
SG
SG
1081\ P Nucleaa Prod PhntAccumulated Oepr
N'rlear Planl
IOSHP Hydr8ulic Prod Plant Accum DePa
Pacilic Hydro
Easl Eydro
1080P olher Prod*lion PEnt - Acoim DeP.
Oth€a Production Planl
TRANS PLANTAGCUM OEPR
IoETP IGnsmission Planl Accumulaled Oepr
Transmission Ptant SG ST
DISTRIBU]ION PLANT ACCUM DEPR
106360 - 10E373 Dhributon Planl Acclmubled Depr
Direcl sssigned Jurisdiclion S S
10ED00 Uncbssifed Oisl Planl Accl3(lo
Dned assEned - Junsdiclion s S
r080s Unclassined DEt SUD Planl .Accl300
Dir€cl Essbned - Jurisdaclion S S
IOSDP ur'classified Disl Sub Phnt - Accl 30O
oirect essigned, Jurisdictaoo S S
GEI{ERA. PLANT ACCUM DEPR
106GP Gsn€ralPlarl Accumutaled Oepr.
DisldbLrlion
P8cilic tiydro
Essl Hydro
Produclbn
Transmission
C6tomer Relal€d
GenerEl S
Manang Planl
S
SG
SG
SG
SG
CN
SO
SE
SE
so
S
ST
CN
SO
108MP Minino Plant Acqimulated o€pr.
Mining Pb
1081390 Ac@m Depr - Cepilal Lease
Gensrel so
1081399 Accum Depr - Capilal Lease
Oirecl assign€d - Jurisdicliofi S s
2020 Prclocol - Appcndi\ B 14
1
Rocky Mountain Power
Exhibit No. 1 Page 92 of 134
Case No. PAC-E-19-20
VMtness: Joelle R. Steward
Allocation Factors by Account by Revenue Requirement Components
2 4
INTERIM PERIOO
FACTOR
5
POST INTERIM PERIOO
FACTOREEE9.89qI A99J.N4!E @
ACCUM PROVISION FOR AMORTEANON
111SP Acclm Prov forAmon-SGam
Sle3m Planls
s
SG
SG
CN
so
SG
s
SG
SO
SE
CN
S
ST
CN
SO
s
ST
SO
CN
111GP Accrm Prov for Arro(-Gsneral
DislribLnion
Pacifi. Fydro
Easl Hydrc
ProductOn
Transmission
CuslomerRelaled
GeneralSO
111HP Acc m Prov br Amoal-Hydm
Pecific Hydro
Easl HYdro
111 P Accum Prov for Amortlnlanoible Planl
OislribLrlion
Pacifrc Hydro
Production
Tmnsmission
Generel
Mining
CLlslomerRBlat€d
111rP Less Non-Ulilily Pl€nl
Drecl Bssigned - Ju sd'claon S S
111390 Accum Prov Amo(. capitalLeasos
OislibuUon
Produclion
General
s
so
s
SO
2020 Prctocol - Appendi\ B 15
'|
o
o
Rocky Mounlain Power
Exhibit No 1 Page 93 of'134
Case No. PAC-E-19-20
l/vltness: Joelle R. Sleward
T,XECUTION VERSION
APPENDIX C
Definitions of Allocation Fnctors
Factors without an effective period will be used during and after the lnterim Period.
i denotes count ofjurisdictions. j denotes count ol month in a year. N is the number of regulatory
jurisdictions that the Company operates in and allocates costs to.
Assigned Production Factor ("AP") - Effective after Interim Period
where.
APi
SGFI :
SG F,nD -.'.,-tIE
45o/oAPa = Or*, ,*= tsoto
,lr, = -P-r*ro= zsvo
The AP factor may be calculated by unit ofResources, group oflResources, or for specific periods ol
capital investments. The AP factor may change over time as allocations change due tojunsdictions
accepting a larger or smaller assignment in units that lead to the change in the value ol x.
For example,l. Assuming a unit is assigned to States A, B and C out of six jurisdictions in year l, and their
SGF factors are
SGF1: 25%, SGFg :45%, and SGFc = 157o, respectively, then
25%
APA -25o/ol45o/o*,tSo/o = 29.4o/o
45o/oin -_ - E?oo/
25o/o+45Vo+lsvo
l5o/oAD -_-11 CO/
25o/o*45o/olLSo/o
2. Assuming the unit is later assigned to States B and C only, then the AP factors will change to
APn - golo
o
2020 Protocol - Appendi\ C
Assigned Production Factor for j urisdiction i.
System Generation - Fixed Factor forjurisdiction i.
Number ofjurisdictions that are assigned the unit.
I
3. Assuming the unit is later assigned to C only, then
ess: Joelle R. Steward
the AP factors will change to
EXECUTION VERSIO\
Assigned Production Hydro O&M Factor forjurisdiction r.
Sum ofall hydro production plant O&M costs allocated to
.jurisdiction i using the AP factors.
Number of jurisdictions.
o APa = QoTo
APs = QoL
l5o/oAPc = M= l00o/o
Accounts using AP factor: Sales for Resale (447), Water Sales (453 ), Miscellaneous Revenue (41 160,
41170, 4118, 41181, 421), Generation (500-555, 557), Administrative and General Expense (920-935),
Depreciation Expense (403Sq 403NP, 403HP, 40308 403GP, 403MP) Amortization Expense (404SP,
404IP, 404HP, 4041\tP 406-407), Taxes Other Than Income (408), Defened Income Tax Expense (41010,
41 I 10), Schedule M, Income Taxes (40910, 4091 1), Generation Plant (3 10-346), General Plant (3 89-399),
lntangible Plant (302-303), Plant Held for Future Use (105), Electric Plant Acquisition Adjustments ( ll4-
I l5), Fuel Stock ( l5 l- l 52), Materials and Supplies (154), Mining Working Capital Deposits (253 l6-
25319), Prepayments (165), Misc. Regulatory Assets (182M), Misc. Defered Debits ( l86M), Working
Capital (135, 232,25330,230,245105), Accum Misc Oper Prov-Black Lung (22841), Customer
Advances for Construction (252), S02 Emissions (25398), Other Deferred Credits (25399), Regulatory
Liabilities ARO Regulatory Liability (254105), Accumulated Deferred lncome Taxes (190, 281-283),
Accumulated Depreciation (10851 l08NB l08HP, 108OP, 108GP, l08MP), Accumulated Provision for
Amortization (111SP, lllGB lllFlP, 1l1IP, lll3S0)
Assisned Production Factor of New Resources - Effective after Interim Period
Initial values of AP factors lor all new resources will be addressed as part of the Framework discussions
on Resource Planning.
Assisned Production Hydro - O&M Factor ("APOMH") - Effective after Interim Period
o
o
APoMHi=ffi4
rvherc
AI'OMH,
I'POMH,
The APOMH factor is used to allocate hydro generation related O&M costs that cannot be allocated to a
specific hydro resource through an AP factor, calculated as each States'relative share of direct-allocated
hydro generation and maintenance expenses.
Accounts using APOMH factor: Hydro (535-545, 557)
Assiened Production Other - O&M Factor ("APOMO") - Effective after Interim Period
APOMO P P0MOi
'- 2!=,PPoMo,
where
APOMO,
2020 Protocol - Appendiri C 2
Rocky Mountain Power
Exhibit No. 1 Page 94 of 134
Case No. PAC-E-19-20
Assigned Production Other O&M Factor for jurisdiction i.
PPOMOi
Rocky Mountain Powet
Exhibit No. 1 Page 95 of 134 EXECUTION !,ERSION
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
Sum ofall other production plant O&M costs allocated to
jurisdiction i using the AP factors.
Number ofjurisdictions.
The APOMO factor is used to allocate other generation related O&M costs that cannot be allocated to
specific other production Resource through an AP factor, calculated as each States' relative share of
directly-allocated other production generation and maintenance expenses.
Accounts using APOMO flactor: Other Generation (546-554, 557)
Assiqned Production Steam - O&M Factor ("APOMS") - Effective after Interim Period
APOMS
PPOMSi
'- y!=,PPoMs,
a
o
APOMS,
PPOMS,
Assigned Production Steam O&M Factor forjurisdiction i
Sum olall steam production plant O&M costs allocated to
jurisdiction i using the AP factors.
Number ofjurisdictions.
The APOMS factor is used to allocate steam generation related O&M costs that cannot be allocated to
specific steam resource through an AP factor, calculated as each States'relative share of direclallocated
steam generation and maintenance expenses.
o Accounts using APOMS factor: Generation (500-514, 557)
ACCT9O4IBADDEBT: =ffi_,
I]ADDEBl'i
ACCT'901i
where:(lACi
(-lACNAi
2020 Protocol - Appendix C
The BADDEBT Factor is calculated by dividing the FERC account 904 Uncollectible Accounts amount
for ajurisdiction by the total 904 amount for all jurisdictions. The factor allocates tax related costs for bad
debt related expenses.
Accounts using BADDEBT factor: Deferred Income Tax Expense (41010), Schedule M, Accumulated
Defened Income Taxes (i 90)
Contributions in Aid of Construction Factor {"CIAC"}
CIACNA,ctACi = *__(,*rL
Contributions inAid of Construction Factor for jurisdiction i.
Contributions in aid of construction - net additions forjurisdiction i
l
where
Bad Debt Expense Factor forjurisdiction i.
Balance in FERC Account 904 forjurisdiction i.
Number ofjurisdictions.
Bad Debt Exnense Factor ("BADDEBT")
where:
Rocky Mountain Power
Exhibit No. 1 Page 96 of 134
Case No. PAC-E-19-20
Vvltness: Joelle R. Steward
Number ofj uri sdictions.
EXECUTION VERSION
o
o
o
The CIAC Factor is calculated by dividing the contribution in aid ofconstruction net additions for a
jurisdiction by the total contribution in aid of construction net additions for all jurisdictions. The factor
allocates tax related costs for contributions in aid of construction.
Accounts using CIAC factor: Deferred Income Tax Expense (411 10), Schedule M, Accumulated Deferred
Income Taxes (282)
CUST,t- tt _L/v, - tE;ZrS7I
where
CN,
CLLSTi
Customer Number Factor for jurisdiction i
Total electric customers lorjurisdiction i.
Number of jurisdictions.
Deferred Tax Balance Factor forjurisdiction i.
Defened tax balance allocated tojurisdiction i.
(Deferred tax balance is allocated by a run of PowerTax based upon
the above factors. PowerTax is a computer software package used to
track deferred tax expense & deferred tax balance.)
Number ofj uri sdictions.
The Customer Number Factor is calculated using the ratio ofnumber of customers for ajurisdiction to the
total number of electric customers for all jurisdictions. The factor is used to allocate customer related
costs.
DITBALA,DITBALi = *=,DITBALL
where
Dll'RALi
l)l'IBALAi
Accounts using DITBAL factor: Accumulated Deferred lncome Taxes (282,283)
2020 tuotocol - Appendix C l
Customer Number Factor ("CN")
Accounts using CN factor: Gain / Loss on Sale of Utility Plant (421), Customer Service Deposits (43 I 1),
Other Electric Revenue (456), Customer Account Expense (901-905), Customer Service Expense (907-
910), Sales Expense (91'l-916), Administrative and General Expense (920-935), General Plant
Depreciation (403GP), Amortization Intangible Plant (404IP), Deferred lncome Tax Expense (41010,
41110), Schedule M, General Plant (389-398), Intangible Plant (303), Customer Advances for
Construction (252), Accumulated Deferred Income Taxes (190,282-283), General Plant Accumulated
Depreciation ( 1 08GP), Accumulated Provi si on for Amortization ( I I I IP)
Deferred Tax Balance ['actor ("DITBAL")
The DITBAL Factor is used to allocate deferred tax balances to j urisdictions.
Diyision Generation - Pacific Eaetqrrf'DlqP"l
Rocky Mountain Power
Exhibit No. '1 Page 97 of '134
Case No. PAC-E-'19-20
Wtness: Joelle R. Steward
Gross Plant System Factor forjurisdiction i
Production plant for jurisdiction i.
Transmission plant lor jurisdiction i.
Distribution plant for j urisdiction i.
Ceneral plant forjurisdiction i.
lntangible plant lor jurisdiction i.
Number of jurisdictions.
EXECUTION VERSION
OF
where:
DGP,
5G-,
.\G,
N
The DGP Factor is calculated as the ratio ofthe pre-merger Pacific Division's SG factor lor ajurisdiction
divided by the sum ofthe pre-merger Pacific Division's SG factors.
The DGP factor is only used in calculating the dynamic ECD
where
DGui:#b,
DG(li
.9G"i
^SGi
: Division Generation - Utah Factor forjurisdiction i.
= SG, if i is a pre-merger Utah Power jurisdiction, otherwise 0.: System Generation Factor forjurisdiction i.: Number ofjuri sdictions.
After the Interim Period, the factor is determined by the average ofthe four-year historical
value f'rom 2018 to 2021, or 2019 to 2022 if the Interim Period is extended.a
o
The DGU Factor is calculated as the ratio ofthe pre-merger Utah Power j uri sdiction's SG factor for a
jurisdiction divided by the sum ofthe pre-merger Utah Powerjurisdiction's SG factors.
The only accounts using DGU factor are Deferred lnvestment Tax Credits (41140,41141)
Gross Plant Svstem Factor "GPs")(
where
PPtlPTitPDi *PGi+PIiL"' "' - X[,(P& + PTL + PDi + PGi + Pti)
GPS,
PPi
PTi
PD,
PGi
DI
The GPS Factor is used to allocate property taxes. It is calculated usingthe ratio ofgross plant for a
jurisdiction divided by the total $oss plant for alljurisdictions.
2020 Protocol - Appcrdi\ C l
Division Generation - Pacific Factor forjurisdiction i.
5G; ili is a pre-merger Pacific Power jurisdiction, otherwise 0.
System Generation Factor forjurisdiction i.
Number of jurisdictions.
Division Ceneration - Utah Factor ("DGU")
*,,,o[iy,i:'#il:ii,1 ExECUrroNvERSroN
Case No. PAC-E-19-20
V\,ftness: Joelle R. Sleward
The accounts using GPS factor: Taxes Other Than Income Taxes (408), Defened Income Tax Expense
(41010, 4l l l0), Schedule M, Prepayments (165), Accumulated Deferred Income Taxes (282,283)
a
o
\odal Pricins Assisnmenl of Net Power Costs ("NP")
Costs listed as allocated by NP in Appendix B are costs that will be allocated through the Nodal Pricing
Model.
Accounts using NP factor. Sales for Resale (447), Purchased Power (555)
Schedule M - Denreciation Exoense Factor ("SCHMDEXP")
DE P RC,scHMDi = f1,ocpnq
where
where
SCHMDi
DEPRC,
5(-i
lAPu
Schedule M - Depreciation Expense Factor forjurisdiction i
Depreciation in FERC Accounts 403.1 - 403.9 lorjurisdiction i
Number ofjurisdictions.
System Energy Factor forjurisdiction i.
Weather-normalized energy at input of jurisdiction i in month j
Number ofjurisdictions.
The SCHMDEXP factor is used to allocate Schedule M items related to depreciation expense.
The accounts using SCHMDEXP flactor: Deferred Income Tax Expense (41I l0), Schedule M,
Accumulated Deferred lncome Taxes (282)
Svstem Canacitv Factor ("SC")
o \'l2 TrDL i=t t nt ii""'- 2y=,2;1,rAP,,
The SC factor is calculated based on the relative capacity requirements of each State as determined based
on 12 monthly Coincident Peaks that is used to calculate the System Generation and System Transmission
flactors
,TAEij
TAEij
where
SE,
2020 Protocol - Appendix C
72
TAEqI
6
System Capacity Factor forjurisdiction i.
Weather-normalized peak load ofjurisdiction i at the time of the
system peak in month j. During the Interim Period, the peak load is
further adjusted to exclude the peak load ofClass I Demand Side
Management programs and interruptible peak load of the special
contracts as defined in the 2017 Protocol.
Number of jurisdictions.
Svstem Enerev Factor ("SE")
a
o
o
SG,
.ic,
.57,.i
*r'rm,"y,9""'#1lt"r"H EXECUTToNVERSToN
Case No PAC-E-19-20
The SE factor is used to allocate energy-related costs and il'ffi3rj""?'l"d-"rttil'SYatio olthe weather-
normalized energy at input for ajurisdiction divided by the total weather-normalized energy at input for
all jurisdictions.
Accounts using SE factor for Interim period: Sales for Resale (447), Other Electric Revenue (456),
Miscellaneous Revenue (4118, 4l 181), Steam Plants Fuel (501), Steam from Other Sources (503), Other
Fuel Expense (547), Purchased Power (555), Transmission of Electricity by Others (565), Administrative
and General Expense (920-935), Depreciation Expense (403MP), Amortization Expense (404IP,
4O4MP),Tares Other Than Income (408), Delerred Income Tax Expense (41010, 411l0), Schedule M,
Federal Income Tax True-Up (40910), General Plant (389-399), Intangible Plant (303), Plant Held for
Future Use (105), Fuel Stock ( 151, I 52), Working Capital Mining related (25316, 25317,25319),
Materials and Supplies ( I 54), Prepayments - Mining related ( 165), Misc. Regulatory Assets - Mining
Related (182M), Misc. Deferred Debits - Mining related (186M), Accounts Payable (232), Other
Deferred Credits Misc. (25330, 230, 25399), ARO Regulatory Liability (254105), SO Emissions (25398),
Regulatory Liabilities (254), Accumulated Deferred Income Taxes (190,282-283), General Plant
Accumulated Depreciation 108G8 Accumulated Provision for Amortization (l l1IP, 11lMP)
Accounts using SE factor after Interim period: System Control & Load Dispatch (556), Other Expenses
(557), Transmission of Electricity by Others - GRID Management Charge (565)
System Generation Factor ("SG") - Effective durin g the Interim Period
56; = 9.75 * SC; f 0.25 x.lfi
The SG factor is used to allocate generation and transmission costs. It is calculated usinga weighting of
7 5Yo of the SC factor and 25Yo of the SE factor lor a jurisdiction.
Accounts using the SG factor: Sales for Resale (447), Provision lor Rate Refund (449), Other Electric
Operating Revenue (453, 454 ,456), Miscellaneous Revenue (41 160, 41 170, 421), Generation Expense
(500, 502, 504-514, 517-532,535-545, 546,548-554,555, 556, 557), Transmission Expense (560-564,
566-573,565), Administrative and General Expense (920-935), Depreciation Expense (40358 403N8
403m, 40308 403TP, 403GP), Amortization Expense (404SP, 404HP, 4041P 406,407), Taxes Other
Than Income (408), Delened Income Tax Expense, (41010, 41110), Schedule M, Renewable Energy Tax
Credit (40911), Federal Income Tax True-Up (40910), Generation Plant (310-316, 320-325,330-336,340-
346), Transmission Plant (350-359), General Plant (389-398, 1011390), lntangible Plant (302-303), Plant
Held for Future Use (105), Electric Plant Acquisition Adjustments (l l4-l '15), Materials and Supplies
(154), Working Capital Deposit (25318), Prepayments (165), Misc. Regulatory Assets (182M), Misc.
Delerred Debits (186M), Working Capital (135, 232), Accumulated Misc. Operating Provision Other
(22841), Customer Advances for Construction (252), Other Deferred Debits (25399), Accumulated
Deferred Income Taxes (190, 281-283), Accumulated Investment Tax Credit (255), Accumulated
Depreciation (l08SP, 108FIP, 10808 l08TB 108GP), Accumulated Provision fbr Amortization (1l1SP,
lllGB illFrP, lrlIP, 111390)
7
where:
System Generation Factor forjurisdiction i.
System Capacity Factor lbrjurisdiction i.
System Energy Factor forjurisdiction i.
2020 Protocol - Appendi\ C
Rocky Mountain Power
Exhibit No. 1 Page 100 of'134
Case No. PAC-E-19-20
Vvltness: Joelle R. Steward
Svstem Generation Factor - Fixed ("SGF") - Effective after Interim Period
EXECUTION VERSION
Based on actual SG allocation lactors for the most recent four calendar years available prior to the end of
the Interim Period. The SGi factor is as defined above.)o
o
PYI.SG, + PY2SC, + PY3.t6, + PY4SG,
'4
where
where
SGPDi
GPDi
SNPD,
PDi
ADPDI
SGFi
Prior Year (PY) 1 SGi :
Prior Year (PY) 2 SGi =
Prior Year (PY) 3 SGi =
Prior Year (PY) 4 SGi :
System Generation - Fixed Factor forjurisdiction i
PYI System Generation Factor forjurisdiction i.
PY2 System Generation Factor forjurisdiction i.
PY3 System Generation Factor forjurisdiction i.
PY4 System Generation Factor forjurisdiction i.
System Gross Plant Distribution Factor forjurisdiction i.
Gross plant distribution forjurisdiction i.
Number ofj uri sdictions.
System Net Plant - Distribution Factor lorjurisdiction i.
Distribution plant - forjurisdiction i.
Accumulated depreciation distribution plant - forjurisdiction i
Number of jurisdictions.
For Example: If the Interim Period ends December 31, 2023, then (PY) I : calendar year 2022, (PY) 2:
calendar year 2021, (PY) 3 : ca.lendar year 2020, and @Y) 4 = calendar year 2019.
Accounts using SGF factor. Intangible Plant (303), Misc. Regulatory Assets (182M), Misc. Deferred
Debits (186M), Working Capital (232), Accumulated Investment Tax Credit (255)
Svstem Gross Plant Distribution Factor ("SGPD") - Effective after lnterim Period
sGPDi- ffi,
This factor is calculated by taking the ratio ofgross distribution plant for ajurisdiction by the total gross
distribution plant lor all lurrsdictions.
There are no accounts allocated using the SGPD factor. This factor is used to calculate the SO lactor alter
the Interim period.
Svstem Net Plant - Distribution Factor ("SNPD")
PD, + ADPD,
SIVF'D, =
The SNPD lactor is used to allocate non situs distribution costs. The factor is calculated as the ratio of net
distribution plant for a jurisdiction by the total net distribution plant for all jurisdictions.
It
o
2020 Protocol - Appendi\ C
where:
EXECUTION VERSION
Accounts using the SNpD factor: Distribution o&M (s80-Yf6i:d".'i;#i,3"#13.. ru* Expenses (41010,
4l I l0), Schedule M, Materials and Supplies - Distribution (154), Accumulated Deferred Income Taxes
(re0)
sNPj -
PPL+ PTi+ PDi+ PGi+ PIt+ ADPP,+ ADPTi+ ADPDi+ ADPGi+ ADPIi
Xllr(p& +pTt+pDi+pGi+pti+ ADppi+ ADpri+ ADpDi+ ADpGi+ ADpti)
System Net Plant Factor forjurisdiction i.
Production plant for junsdiction i.
Transmission plant for jurisdiction i.
Distribution plant for j urisdiction i.
Ceneral plant for j urisdiction i.
Intangible plant for j urisdiction i.
Accumulated depreciation production plant for jurisdiction i.
Accumulated depreciation transmission plant for jurisdiction i
Accumulated depreciation distribution plant for jurisdiction i.
Accumulated depreciation general plant for jurisdiction i.
Accumulated depreciation intangible plant for jurisdiction i.
Number of jurisdictions.
Rocky Mountain Power
Exhibil No. 1 Page '101 of '134
Case No. PAC-E-19-20
a
a
a
SWP,
PPi
PTi
PD'
PGi
PIi
ADPPi
ADPTi
ADPI),
ADPGi
ADPI,
The SNP factor is used to allocate interest expense and miscellaneous deferred tax treatment. The factor
is calculated by taking the ratio ofthe system net plant balance for a jurisdiction divided by the total
system net plant balance for all jurisdictions.
Accounts using SNP flactor: lnterest Expense (427-429,431,432), Deferred Income Tax Expenses (41010,
411l0), Schedule M, Working Capital - Cash (131), Accumulated Delerred lncome Taxes ( 190, 282, 283)
soi =
sc,+sE,+SGPD,
3
where
SOi
SCi
SEi
SGPDi
System Overhead Factor forjurisdiction i.
System Capacity Factor forjurisdiction i.
System Energy Factor forjurisdiction i.
System Gross Plant Distribution forjurisdiction i
The SO factor is used to allocate system overhead costs. The SO factor used after the Interim period is
calculated by taking the sum ofthe SC, SE and SGPD factor for ajurisdiction and dividing by three.
Accounts using SO factor after Interim period: Other Electric Operating Revenue (451, 454,456),
Miscellaneous Revenue (41 160, 4117O, 421), Administrative and General Expense (920-93 5),
Depreciation Expense (403GP), Amortization Expense (404GP, 404IP), Deferred Income Tax Expenses
(41010, 41 110), Schedule M, Federal Income Tax True-Up (40910), General Plant (389-398, l0l I 390),
Intangible Plant (303), Materials and Supplies ( 154), Stores Expense Undistributed (163), Prepayments
(165), Misc. Regulatory Assets (182M), Misc. Deferred Debits (186M), Working Capital (141, 232), Rate
Base Deduction Provisions (2281-2283), Other Deferred Credits (25399), Regulatory Liabilities (254),
2020 Protocol - Appcndi\ C 9
Svstem Net Plant Factor ("SNP")
where:
Svstem Overhead Factor ("S0") - Effective after Interim Period
o
o
o
.\0;
PPi
PT',
PD,
PG,
PIi
PP.t
P1'-.,
t)rr
I)(]oi
lr l.i
.,r,"i,T1giTill',ii.I ExECUrroN!,ERsroN
Case No. PAC-E-19-20
Accumulated Deferred tncome Taxes (1g0,282,283), Accmiri";rJ.:".i"bfu?tUi#i"" (r08cB 10s1390),
Accumulated Provision for Amortization (1 l l GP, I 1 I IP)
Svstem Overhead Factor ("SO") - Effective during the Interim Period
so, =
PPi + PTi + PDi + PGi + PIi - PPot - PToi - PDoi - PGoi- PIoi
XIlr(pA + pri+ pDi+ pGi+ pti- ppei - proi- pDei- pGei- ptoi)
System Overhead Factor forjurisdiction i.
Gross production plant for jurisdiction i.
Gross transmission plant forjurisdiction i.
Gross distribution plant forjurisdiction i.
Gross general plant forjurisdiction i.
Gross intangible plant forjurisdiction i.
Gross production plant forjurisdiction i allocated on a SO factoc
Gross transmission plant for jurisdiction i allocated on a SO factor.
Gross distribution plant forjurisdiction i allocated on a SO factor
Gross general plant forjurisdiction i allocated on a SO factor.
Gross intangible plant forjurisdiction i allocated on a SO factor.
Number ofjurisdictions.
System Transmission Factor forjurisdiction i
System Capacity Factor lorjurisdiction i.
System Energy Factor forjurisdiction i.
Accounts using SO factor during the Interim period: Other Electric Operating Revenue (45 l, 454, 456),
Miscellaneous Revenue (41 160 , 41170, 421), Administrative and General Expense (920-93 5),
Depreciation Expense (403GP), Amortization Expense (404GP, 404IP), Deferred Income Tax Expenses
(41010, 41 1 10), Schedule M, Federal Income Tax True-Up (40910), General Plant (389-398, 1011390),
Intangible Plant (303), Materials and Supplies (154), Stores Expense Undistributed (163), Prepayments
(165), Misc. Regulatory Assets (182M), Misc. Deferred Debits (186M), Working Capital (141, 232), Rate
Base Deduction Provisions (2281-2283), Other Deferred Credits (25399), Regulatory Liabilities (254),
Accumulated Deferred Income Taxes (190, 282,283), Accumulated Depreciation (108Gq 1081390),
Accumulated Provision for Amortization (1l1GB lllIP)
STi
SCi
SEr
The ST factor is used to allocate transmission related costs after the lnterim period. It is calculated using a
weighting of 75% ofthe SC factor and 25% ofthe SE factor lor ajurisdiction.
Accounts using ST factor: Provision for Rate Refund (449), Operating Revenue (454), Other Electric
Revenue (456), Miscellaneous Revenue (41160, 4l 170,421), Transmission Expense (560-564, 566-573),
2020 Protocol - Appcndi\ C 10
where.
The SO factor is used to allocate system overhead costs. The SO factor used during the Interim period is
calculated by taking the gross plant allocated to ajurisdiction, excluding the plant amounts allocated on
SO, and dividing it by the total gross plant for all jurisdictions, excluding plant amounts allocated on SO,
for all juri sdictions.
Svstem Transmission Factor ("ST") - Effective after Interim Period
STi = 7 5o1o " SCi t 25o/o * SEi
where:
o
*r",,T,X:YI,"rTi1l:iffi ExECUrroNvERSroN
Case No. PAC-E-19-20
Transmission of Electricity by others (565), edministrativYff'd#Bliifl"ilSifre (920-e3s), Depreciation
Expense (403TP, 403GP), Amortization Expense (404IP, 407), Deferred Income Tax Expenses (41010,
41 I l0), Schedule M, Transmission Plant (3 50-3 59), General Plant (389-398, l0l i 390), Intangible Plant
(302, 303), Plant Held for Future Use (105), Electric Plant Acquisition Adjustments ( 114-115), Material
and Supplies (154), Prepayments ( 165), Misc. Regulatory Assets (182M), Misc. Deferred Debits (186M),
Working Capital (232), Customer Advances for Construction (252), Other Deferred Credits (25399),
Accumulated Deferred Income Taxes ( 190, 281-283 ), Accumulated Depreciation ( l08TP, I 08GP),
Accumulated Provision for Amortization (ll lTP, 1llGP, 11llP)
_ TAXDEPRALTAYDEPRi = *@RA\
where
T'LYDI:,PRt
T.LYDEPRAi
Tax Depreciation Factor forjurisdiction i.
Tax depreciation allocated to jurisdiction i.
(Tax depreciation is allocated based on functional pre-merger and
post-merger splits ofplant using Divisional and System allocations
from above. Each j urisdiction's total allocated portion oftax
depreciation is determined by its total allocated ratio ofthese
functional pre- and post-merger splits to the total Company tax
depreciation,)
Number of jurisdictions.
Trojan Decommissioning Factor lor jurisdiction i.
Allocated adjusted balance in FERC Account 228.42 (Accumulated
Provision for Decommissioning Troj an) lorjurisdiction i.
Number ofjurisdictions.
O The TAXDEPR factor allocates depreciation related tax costs
Accounts using TAXDEPR: Deferred Income Tax Expense (41010) Schedule M, Accumulated Deferred
Income Taxes (282)
ACCT22842,rRolDi - funnr,4rt
where
7'ROJD;
ACCT22812i
o
Accounts using TROJD. Deferred Income Tax Expenses (41010, 41 1 l0), Schedule M, FAS 143 ARO
Regulatory Liability Trojan Plant (254 I 05), Asset Retirement Obligation - Trojan Plant (23 0),
Accumulated Deferred Income Taxes ( I 90, 283 )
Effective after Interim Period Based on actual TROJD allocation factors for the most recent four calendar
years available prior to the end ofthe Interim Period. (The TROJDi factor is as defined above.)
2020 Protocot - Appcndi)i C ll
Tax Denreciation Factor ("TAXDEPR")
Troian Deconr missionine Factor ("TROJD")
The TROJD factor is used to allocate decommissioning related costs associated with the Trojan plant.
Troian Decommissionine Fixed Factor ("TROJDF')
Rocky Mountain Power
Exhibit No. I Page 104 of 134
Case No. PAC-E-19-20
EXECUTION VERSION
TROIDFL -
pyrrRll Di + pyzr Rot DL+ py3rnUfj;"fTf4?R'ryd,
4owhere
TROJDFi
Prior Year (PY) I TROJDi
Prior Year (PY) 2 TROJDi
Prior Year (PY) i TROJDi
Prior Year (PY) 4 TROJDi
Trojan Decommissioning- Fixed Factor forjurisdiction i,
PY1 Troj an Decommissioning Factor for jurisdiction i.
PY2 Troj an Decommissioning Factor for jurisdiction i.
PY3 Trojan Decommissioning Factor for jurisdiction i.
PY4 Trojan Decommissioning Factor for jurisdiction i.
For Example: If the Interim Period ends December 31,2023, then (PY) I = calendar year 2022, (PY) 2 :
calendar year 2021, (PY) 3 : calendar year 2020, and (PY) 4 : calendar year 20l9.The TROJDF factor is
used to allocate decommissioning related costs associated with the Troj an plant.
Accounts using TROJDF: Deferred Income Tax Expenses (41010, 41110), Schedule M, FAS 143 ARO
Regulatory Liability - Troj an Plant (254105), Asset Retirement Obligation - Troj an Plant (230),
Accumulated Delerred Income Taxes (190, 283)
o
o
2020 Protocol - App€ndi\ C t2
Rocky Mountain Power
Exhibil No. 'l Page'105 of 134
Case No. PAC-E-'I9-20
Wtness: Joelle R. Sleward
APPENDIX D
Nodal Pricing Model Memorandum of Understanding
EXECUTION VERSION
o
a
o
I
Rocky Mountain Power
Ehibit No. '1 Page 106 of 134
Case No. PAC-E-'l9-20
vutness: Joelle R. !IPX{!CUilOr\ v[R$lON
f..rllilitoro's Sodsl tf icius $t+tltl $IenorB$fl*p.,g.l'.Lil$fls.t${iifi*
I n lrrxl utl ion
l. Il r-ilillorp s$d the kndersiga*d F}fties tFanir-:s] rrllcr int$ tiris ir{err;}rand rn oi
[irrderiitunding iM0t.l] to acknorvledgs th*ir suppon. *s desmihcd btlut, of I'ac.iliCorp's
inr".eiiturirnt in the tiesellprn*ut Eod iulpleurc$tation ola N$dll ltit'ing i\,li-altl iNPIll_i drut rlu5 be
sd(Fted for thi. r:rlculuion of net-pnrvcr costs {NFC}.
Sacl*gnruntl
2. PrroitiCorp is a multi-jurisdicthn$l electric aiility that is s*rving €usiomers in
Calilirmia" Idatr*, {}rugtn. {.lurtt. \lashinptrur^ rrrd \\iynnring-,
,1. Oencrally', I'itifi(h'p has ulloctted cost$ lnro$g thoso states using, r int{:r-
ji*isdirtirnul cost *lhxsrion mrth*ilulogrr
4. Puc'iliCerp's earrcnt inter-jurisdiclional ctrsr dlocotion olethodology. the 2()17
I'*cifi *rF Intt:rJn{i$dicdonal r\ihtrstitrn Prrrrrttl {?t117 frulur:uli. tss stltpt*d b1' th* rpplita$lt
roAulstorl cornnli$si$ns in ldaho, Oregon. [Jiah, end \l']oming in ?016. and sei a process lirr
developing E $r\r' irit$r-juri:idirtitnnl cost alhxaticn meth(ul*lirr$] tkrcugh a rr,<xking grorp rf
$taj,i,ttr lders consisting tf utility regulatr:ry d$*fl{i$s. ou.sl mers. end cert$in oihrrs po1gn1i3ll.'-
al1\ct*d try, inter--ir|,:isdi(tion6l $lli){:ation protrrlures. hnorvu *s th* Idulti-liute Frocess l\urlig.ruup
(l!l!F 1\urlrgrr:up).r l\,a-\hi BIon has usi:d the \\'est Crurtrul.Anra Inter-lurisdisti*rr*l AIloc*tirru
I Prciii(irrrp Enricig6teii rlnt Crlifot}ia *:;li edopl 1e )01i P{otocol ifi }01!.
I
o
o
303i1 tsrrrlur:ol - Sppeltli:; l)I
Rocky Mounlain Power
Exhibit No. I Page 107 of 134
Case No. PAC-E-'I9-20
wtness: Joetle R. stg{(f,{:{jTI(}}i ITERSION
o Merhadologv t-or lhe purpt'rs*s of cost allocerirlns xinc+ I0$7. (:$lilhmia cu$rntI) us{:s thc Reris$d
Protocol. but t dccisi*n on mloption ofthe 1017 Frot$col is pending helbre th(: comrnission.
-S. L)iscr.sskrns lmong thc MSP \lbrkgmrp for thr.l pote tial txtension of the 2017
Fnrtor*l ao&ior l nrr*' intr:r-iuristlic,tional r,ost tiloc*tion rrlothrij.rlcg!' $re h*int hr'hl.
6. In llt*-3ill?. Ft+ifiC:orp tr*rese*t*d the MSP \\t*rkgr*up rvhh a Froposal-ts track
NP{i thmugh a Nl}lvt conccpt desinned ro facilitate i:ardr st.atu's euery-v g>licies and uniquc resourcc
portt)li.ls tthile still s{*king h} mainlain tln: henefitr rl systtnr dispath and optirnizalior!.
lisr:iliC*rp ol-ro inrliclrt*d s.5xrrentia{ for rhs NPIU to pnrritlr increosed disp:ttch elliciencies.
dct*nnine the schqdutes ior e.seh of its genertliou rosource$ to seree stats l$grls iln e leest-cost
o lursis^ ryhile truckir'r1g r:o$t$ lrrd hencfiLli assrci*ted vi'hh thc ditlbrent r€tource 1:lrttirlios usr.d to
srn* PacifiCt4r\ I:urJ in eirch stols. PariliC*rp has b*+* in discussi*ns rtith thc Csliiomia
balepcndtnr Sysrenr {}peratnr {'{AISO) tn pmvirh t}r* da.u<rhead dispirteh uNdcl.
8. 'lb rlhrv tirr $r* auticipated inrple rrrttti$tt oINFM tire Frtentidl r&tt:maliing by
1023, Paciti{iorp h$s dcterained that it musl ntrv iflr'cst rdlated c.spitnl. inr:ur relslcd oFerations
snd msintenante expi:nsssr md pa,v relirre$ ongoing gdd mansgement ch*rg*s. Afsched es
Iixhibir A ro rhir lr.{(}li is r r*excdprirn of thc t.r,pr tln*rk thst Fsi:iti("'trrp snticiJxrt*s undert*king.
'l'te Parrics understanri thsl thc ]ist is prelinrinary' iind is not ir,teuded tu he u cr:mplet* list.
)I
?. PuciliCorp's NPlttl pnrposal is trr urc a ttrird-prrq" day-ahenl disfitch fiil'Jel tu
10!0 }\riocol - Appetrdil t)
Rocky Mountain Power
Exhibil No. 1 Page 108 of 134
Case No. PAC-E-19-20
vrrtnessr Joelle R. LHllEl.U'fION ITERSIOI'{
o
+. $.s deseribrd lrr this MO{J. th* Parties iillirr* srpixl lilr llurilil.arp's nas*rnab[:
rnrl prudeli inr,estnrrnt (d'relatsd c{pital tund*. related r)purutiens nnd maintcnuncc exlnnsrs" and
tht rulrtr:d c;ngoing grid m:*lrgemi:nt chorgss $ di:r*hp ond irnpleurerrt u* NP$'{. Ilxtii\it S to
this lvl0lj is an estirnatr of thg investnrsnts rnd tngriing+ost.r Prr:ili(brp 0nticipalrs il r,.,ill mali*
or incur thmugh this el)o$ and ar rxplanation of thr artiuipatcd hsneftt-r, inclrxling rrxt-ssvings
imd rornplianc* with stnts policl' <lirectivcrs inrprcting rtsource pertlirli* dccisi*ns. Ih* lta*ics
agrce that, brsL.d on th* intbrmathn provided bI- PacifiCorp. Paciti(lrp's decision to inl'r:rsl cspits,
fonds u:rrl ply r:rogoiog grid maoogenrent e,h*ges to d*velop and irnplcmcnt rl l\Pltt is rexsrrnal'lc
and pru,Cenr. llorr.erer. the F*niqs do not neressnril;- ogr.,*e that an)- $pcciic iovestrltlrt ur
O cxpenditure is nrarnnahlt or prudtnt anrJ thc Panics ruserye all rights to irudir, revic$, and
chnllecg* uny spetific inrtstment or esprnclitme ss uuressuuhlu or imprudent in sppropriore
ffgulatory qr)mm issi$fl Fr(:)ceedilrs$.
li). Tho Partics agrqe $e sssoLittcd grid men&$ement rdsts will be hmhtd in lrrdrral
F.uergy R*gul*tury.- Ci:mnrission (fIiRCi Ac{(}$nt -!65. u.hich is inuluded in }'acitiCorp's N.PL:.
liFMrclar*d ctrsts rvill h* nll'rx.lttd anrorg th* Prciti(hrp states.$ ibllon$3:
I R*l|.ri: rB$ t{} -St; t'Brtor" $Dd "S}1 Firstoa' ln thB thlhrwing tab l$ atc ro thr s)$tclll Csnrrr{liort ltl(tQr aird rJr*
su$r'essr'rr Nqiun- Reftrsrx{s l$ -l'ixad $C }ta.ter" int trr a preplrsr.d l'ised S$ Ire;tur rlii* rhil I'xnigl; cutrt:rrtiy
rnti*ip:nt :nu.1 hr *rra$lislted as Fe* Qla lirriuc i*ur.niatt tusr *lk*\ii\r[ lrnr.\i]!,
JO
It)lti l\'otcrcol - ,{p1:eudix I}
Ag,rscllrrtrl
,}
Tim* Perild
{)rheru,ise. this l!tt}li shqll not lirnit the positions any Fanp nray taki ressrding horv nodal pricing
m:r1'hr: used tn slllr:atc costs mrongst th$ xt$t$s bet'srr s.ny qrplir:*ble ststt regulator) c{:lrxtn ission,
o 1 l. l'he C:o$psrry shall usu its hest slIofls to pmvide {dsqurrtr training and
dtcurnentaticn regarding tht Nl>M such th*t Purrirs moy undrrsiand, rtt ierx, ond audit l{Plvt-
derivtrj NP(l- ThuNFM, horvrter, is haxd on CAISO FF.R(--iurixlictionrl rnarket modrl to ',r'hich
rer*in CAISO udr.isory schedu les gnd docunreutstion rf rny drrision tu materially dr:viatc fronr
thas* ad.-isr:r;- rchi:*lules. 'lhe tlonrpany further agrnar tt pror,ide trainiug and frcilitrte arcess 1o
tlte (i.rmpan-v's lirrccrsting modul llrr an1, npprr:rpri$le piifty lur reguiatory Furposes
o
Rocky Mountain Power
Exhibil No. 1 Page 109 of 13,1
Case No. PAC-E-19-20
v\rttness: Joelle R. stlfl"qflcLTIOI{ IIF,RSION
1 Tlrr.. Psnies 5f,r eurisndy n{g$rislinF t$tr'lrds a prsrible *:itBrsi:tr rrl d$ :{tt I lntsFj{$i$dirti;xrirl .{ll+c*ii<n
llrii}(:rtlrrlngr isrijsr:t 1$ srvllr p*usitrh tlrrng|sl, u$lil i future ifiiffs:ls$ r(rrt slle+ithin pr*l+rol trs+rir*ee *lleclire,
xhirh tlx Pxties cur*Btl) er{}sct ntl} h( Janur.v I, il$$ itc.}anurry I . I03{.
' ftciliclrp's tinsrgry $upply lvlanogi:mrnt (ES!vt) ir ths b{siness u,.!it rf,llon.si&l€ lt]r schrd$ling a,]d dhpxtching
Pscili(orp's guneratinr resDGrcFs to sr$.t rekil lo$d and bu)rselt in rvh{hsale sncrgy i;nd cupncitr- $rtrrk*{s,
"{
,i
January l. ?030 rougl tr*\
lltlbctive t)"rte rli a New
Intwj urisd ii:rirural {-,,'rst
Alkxotir:u ft trn:ol]
IleginninH uroh {he EtIer:ti}*
l-l$tB r)i$ lt{.\r lirterstatd (osl
.r\ I lor:gticn l\rtrrtol
NPM Ass(l3irtcd
t)$sts
UAISQ $tid
${tttrlt S(i I sr:tor SF: F$ctor
Cap;eli?o{ Sl6rt-Lip
C{r$Lr lbr l}acili(\rp
[SL{{
Catritili:1ed t.:A IStl
lmplem*uution Fee
SG tr'$*tsr
ii{ Ixuor
l:istd SG *xtor
!ir*d SG Feutrv
Sll llxclr',r
l)ngrrin g (.\rerations
sl1d [.t{ ir]tt}nirnce
Iisprnr*
SQ Fxctor
o
':,-r:0 &\rf(}:.{l - ^"ltFEndi\ I}
Pac,iti(*rp d+*s nrrt hsyr anrl ciunri pnrr'iilc n*c*ss. l'*r rrgnlar*ry- putpo$r$. tht C*arpanl' xill
Rocky Mounlain Power
Exhibi{ No. 'l Page 1'10 of 134
Case No. PAC-E-19-20
wttness: Joelle R. fl9wt]].l],UON t"tRStCtU
o l:. 'Ihe l'{.rtiii$ aeknrxvledge {hst thi$ h,l{.lt.l dr:e$ not *dclrcss nn"r (}ther asF$ul i)i thc
nn.g*ing n*${tl!ti*n$ rt'gardirg :in rstensirru ol thc i0} 7 Fnr{\ru*l t>r a nr'.t int,g.rjirriiidirrional
*o$ allocstion rnethodology. Ily r:sccuting rhis lvl0U, nrr Party i.s agreeing t$ riry olher iss\re not
sgrceol to in this lt{Oli.
1:!, 'l"tris lt{0(.} nra5 lrr e.recrrted in connterpans rnd erch siglred c$ulterpart rdrrstitutes
*n original docuntnt.
14- The ohligations or:s,U's{ate $gsnc} thal i* a party tt *ris !vtt}l.l shall Lne irut:rpretsd
ln o manner con*sistcnt rvith iis stntutory tulhority and responsihilities, and uny cxplanatkrn and
r;upp,ori prflvided in this MOU rr in uny ri:grrl:rtory pnxecrling shrll hc consistr:nt widr iL\ it0tutory
udhorit"v ;rnd rcsprrnsi hil itl'-
o 15. I}is I\IQU is crtercd int$ b) es(,h Porty un the date ent*cd belnrv such Frn-v's
sigriature.
I'AC]i['ICORP *4&sc -"Oqgaxisdti(rx
I!1':Ily:
llate Ilt*e t,l1\ I
"5
\
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Itri$ l*orti;ol - &1rp*r:dix I)
Rocky Mountain Power
E)fiibit No. 1 Page 111 of 134
Case No. PAC-E-'19-20
wtness: Joelle R. ste'E$CllTloli \$.RSION
o iq.!r:"r&rnr P*+:^.,{*d,ucsuk,/r)'irn* i}..,:,",', *i' fl.,*. Lrr..5.
l.)r$drf irdttdrl OrgtirrfJrrttrrfi
.
()s
.......:::.Yf.. .
!-
fJ/By,It
Dnte d$-'il.n - rsiY Ilate:
i
n'/
'"" :"1{""r:-
d.rvrt .i,r.r,It,",,Q,]:);c" {t$ji*esiisrra
0rgl}rrir+ritrn {}ltdnii&YJd),
[]"*-:Br-:r-Sr\.I'i"t.irrx&
Date uj*uJ x+tto
er" *U"tn" f,lc,,. t'rsrh-.\
Oryantotina \
By;tli':
Drt*i $Dat$
.'f r$,.\.,,
6
.5
o
'l{.ii{i Pnrtor.ol -. s\FFEudit D
.\ e,r l*Dure: *"ff145fu-:-i--1. _ *_-**
&{**J*
Orgarii:*rr,:ur
jltl**.fi* $$ct*
Rocky Mountain Power
Efiibit No. 1 Page 112 of '13,1
Case No. PAC-E-1$20
lidlrdr}
Ilv:
By:
Ilate t?: rd "J(}J ?
wrtness: Joelle R' lssft'LITI(h\ vtRStoN
I
!}ir.^f,,f
t/IL,fl$tltrttritnr.r
,{
I
Ilv:
Ilai.,l S g.{t {'
Blt ",:9'l*r.,r
-e":iffpix,
,r]ai
IJ
flar*:
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o
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B),
o
3lX0 P,DtB(ol - Appr'Yldix D
5i)1tri1.$,.L.La rUL". *-"
rlaie: SSflqrJ"qC$
Daru:
ll&te:
Rocky l\rounlain Power
Exhibil No. 1 Page 1'13 of 134
Case No. PAC-E-19-20
Vlltness: Joelle R. Ste,,ard
EXEC$I:lol{ tausr{}N
o
A'ganda on
$t:By:
Date Il-fi- lt l)st:
$rgtrnlzalliu r.)gcni:arion
*y:$y:
a lJrte Dlt*:
(/ig*nri.r*'roa ftgrrliiotinn
Bvr
-
By;
Detu.:Dal.e
o
d
3iliQ l*otocol - A$tleudiK n s
Rocky Mountain Power
E).iibit No. 1 Page 114 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. Stev,/ard
s^\xctn"[s$ tr:lRsr$N
o
o,.\ ei{\a*ie.- rJ&{l Su*"{
#gror*'.rrrlor
Sy;B$
x,tr fuq*o*l i-*
I)ste:$,.rs-t' .9.$t *l\Llste:
firydrBdrrofrGgcnlaorri:rr
Bv:
O flm,o:Ilet*r
$rg*r:afik*$r6dltlxrrr'fr!
B):By:
IlatE;Ilrt*:
{;
+
o
3ti!{} t}rolotol - -{pperrdis I}
i
8yt
-
Rocky Mount€in Power
Exhibit No. 1 Page 115 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
o 8:X$ifi-\i.U{}N r*&Rlil{}l\
J liJoi-uer&t-]S &er--t"
Fli:
Sl{e:::.:.,5epT o*?.a/iel
:
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i
:
:
:
:
:l
:
:
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{hgr*nra:lfrrn t.S.*s$rlrrrriq.*
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o l\rte:l)stel
{}P$orrixt$}o*ftrmrsxrlrn
syr
aft:
$
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o
3t)l{i }\ti}srol * AFperdix n i t-r
{,..ctir*.lsfs.,,a.}s
Ev:
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Rocky Mountain Power
Exhibit No. 1 Page 1'16 of '134
Case No. PAC-E-19-20
Wtnessr Joelle R. Steward
IXUCL.l'lON ljl:lK$l0lt{
[:XITTBTI'A
Nodrl Prlfir$ iflodel $thtemt:ut of lforlr
Intrrd uttior
PaciliCorp h*s rsquested tht (.iAISO providc l ci*sign pfirpossl {tl r NI'M that can trs rrsed to clear
energ-v sugrl;- and dcrnand hitls iirr drc PeciiiCorp llalancing Audrority Areas {[3,4A]r *nr: day
aherd. Ilr* C;\150 propns*s to le\.emge its *xisting Da1,-,{.h*od }lorket {DAil{) tsehnt'log}
pl*tfrun. th* nrark*t full netnlrrh nrr:del. end dlk interfreses *r,nilahlt: in the rrsl+ixrr Snergl'
Imba{mre,\l*ket itll$lj 11r pn>vide thr: NP\{ $tilutkril. PaciliCrrr} is crrrr*ntly *rt I}1.\{ $ntity
pafli{ipqtinB in the Et.lr{ anrl has tlreedy dev*lopcd s,vstenrs and dnttr interfaces with rhr tjl.lv{ in
submiuing dsta and ccciving sctlli:mont stst*ments, Consequently, tho pnrpos.ed rokrlion \vouh.l
requir* an erpsnsion of Paeifi(i:r1's hidding. schcduling, and sttllemenr systoms 1'rrr the NPM.
rvhilc gaining firll accei.s to lhr: mrst advsnced securit) constrsined unit r&mmit$rnt t(rol turrendy
used in th{: (AISt}'s I}A\.t"
Nodal Pridng Itlodel
Currenlly, rhe (lAlSO's DAltl footprint is limited to the CAtr$C, IIAA (CISO1. Although supply-
and demud schedules in the cxtsmal BAA.s rtrc not optimized, thcy *rc urodeled as ,'ixod ir the
D,{$I to produe.* an accuratr nr*rkrt and port*r llow -.c'lulirur. '{hs CAIS0. a* the Ruliahilitl.
Cr.\]nlitt.s($r" receires ih* donr*rrd forecast .lud grn*ration sr:hedul*s ti:r tht ne$ day.. tnm Ellvt
B.{",.$ nnd e\(*mal ts.rL{s., as \$ill ss tllc .4.re6.'Iir-i\res i\,iet Srh*dute lat*rchange btt$,etrl $AAs.
Fur the NP\4 srluti.rn. the CAIS{) proposrs tr inckde in the DAI{ l'oorprint the }acilitlrp t}AAs.
i-e. PACW snd PACE. rvhieh trc modeled as irtdir.idual BA.,\s in the N't. Llsirg sinilar markei
featurcs uud teclurologr. optirnir.ution algorithrn opproaches smployed in thr BIN,I. thu DAN{ will
ptxlur:e optirnal unit conxniturstt and hrxrrl-... energ.l sch*dules for supply rrsourcts in Py\Cl\ and
IlAtrE. subj$ct to a por€r brlanr+ constmint tbr ear:h of t.hese BA,,ts, in addition l* the parter
balsnc* crnstrsint Fcr CIS$ snd [rtir.'s transmissitn nrtrrorh (or$trainr" 16 615(.]. PACIi. ald
PACW" $n*r$), rransfers be.tlr,cen FACIW und P"ICE urill tr* t1*irnally schululed. suhject tn
applicahle schcduling linrit.s. whereas the nei energy ranstir trr or l'rom ClS(} ruill he li.ted at zen:.
to prtr:ont energy r::toharrge batvreen IIISO anel Paciii(orp dut rnry" irnpact the (lAlS()'s DAll'l
solution.
As an intrrnrled standard lblrture *l t}e DAVI. thr ClAlSO rtill gliii: bc xtrle to optin*tll"v sEhsdule
encillary sr$'i*es tr nrce,| the tr>ue*1rr:n$ing rtrluir*rle*ts in I)A(-'.\{ *rrd P,{C[:l. b;-.' dcsignating
rhels B.{As nri itprratc lnciilar'.v serri*e; regirrs rvitlr distinct requir*nnnls.
'Ihe anrillary se*iccs are the firllorving:
r Re$ulotion rp rlr'|d drr\tn;
o $pinning R*sen e: ond
. Nan-NFittttirtgFstsrlt
t P*titi(\$p {pvxrit\ trr .${.dr. Ir**iti(lQip $ast .t}.,1:l {l}.{(:tr.t rd Psci${lrrrF \\ssl h.\A {I'nl::N }
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llli{t lSl)tucd - ,:\plre$rlut D
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Rocky Mountain Powe,
E)fiibit No. I Page 1'17 of '134
Case No. PAC-E-19-20
\Mtness: Joelle R. Steward
F.)tFlcil'l'It)tr YuRsIs\'
.,\ll nncitlar.y* services have a l0-minuts ramping requirr:ment. r.hich is shtred *rnrng dre upwrrd
anr;illury reruices. F*th $pinninS Reserver End Nern-Spinning B.sseftes $e continsenor- resoncsr
hut Nr.rn-Spinning k*st*e c*n also bc pn.rvidetl by ol'l'line rr-iources that rirn stnn up within 10
ruinutes. l'he upu.ard xncillar,v lrrvices pn*uremenl it cnscaded so that spin cio lTleet non-spin
requirements, and regu!*ti*n uF can m€it both rpin snd non-spin requiremrnt. to rninimizc the
tverll I procurorenl e*sl"
ildrisory $ricing
The tlay-ahe*d settlenrent lor thc Nplvl i+ s{uisory. i.e^ nrt linan*iall;* binding tretr.*en PrciiiCorp
ard lIAtSt). Day-nhead euerg.v atrd ancillary strtict prices for PaeitiCirrp retorrces rviil he
published in CAtSO lv{nrket REsults Interl'itcr tirr Pu:ifi(\rrp. but t}rry wil{ not h* pu$}i:her.l in
Open .\ccess Sanrr*time Infirmrolion Systun ({)ASIS) in ttu puhlic drvr.rirr. Sinrilarl,r., the
prrblicati,:rn al l..ocetion*l lr4atginal Prices at l'ACW $nd P"{tlE pricing nodes (g{nerelly rel}rred
to *s llNodx) rvill he suppressed in OASIS.
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Rocky Mountain Power
E}fribit No. 1 Page 118 of 134
Case No. PAC-E-19-20
V\,/itness: Joelle R. Stewa.d
r:xECUTt$Si It:lisl0N
EXIIIAIT B
Pecifi(lorp's t-stinlrt€d C*srN 6f the Nod$l l'ricisg lttsdel
CAIS{} {irirl $snagenrr-ur {lharg* *rSr:r'-ict I'rrc " S$ to }{l milli*r, p,tr 5'iur
C'apitrlired P$cit'ic{.:}ry tiutrt-(}p (hsts for ljncrrgy *rppl.v Nlan{tpeorert nd Settleurent
Procrssing - Iil rr $5 nrillion &iti I l$9/o applicrhlc to a. lirule lrx(*ndtnd Da1-Ahtrd l\{arket
ttlDi\i\,1)
Cvpitalirr:d Cel lStl Inrph:nenttturn l:ee * $l trr $I millirn {btsd uu finerg,u lrnh*lau,r:r: S.larhet.
r'rr $llvf . implomentsti{}} fr:i}) inr}-iimt t$st
Onguing {)peratiolts and \4tintr'rance Expunse * $500,m0 - $?()0,0ft} per yeur
Benefits of thq Nodrl Priting l$trltl
The ;.,r*.Pivl ir hrlng detel*prxi tr ullncrts actual NPC &s sta{es rn$r.* l* rmique gencrutii,.u
se$tblius. 'I}* liFi\,i is intendcyl trr help pmsure ths sysrem t*ntfil *l rrperating *s a singlu:
slstBn-
CAIS0's cxisting technologl' plttlirrm is imsniJed t(r reduce $oth srh*dule and hudger risk to
quickt"v impletu**t the N[>C olltN*tion me{h{drrlos}. thst Plciti(:)rp iri *:rkingi to h$lernr.*t
based m the ltlltM s$lrrti[n.
In sdditisn to Sr*uiding o nrethrr$ t* ftilocste l\iFC. {h€ Np${ pntenli$}}}. $t}'ers the foll*rsin$
bensflts lirrur nsing thc (:AlS0 nrarkct uptir:rir*1io* t+ll:
r It provirles more granuhr dispatch inforrnation resulting in nnticipated rpcrutiqnul cost
savings.. lt ullorts Prrifi{iorp lr: l*r.*rege CAIST)'s i1$spendsnc* ur a rhinl party nurrkf,t F ${idsr.I It Buarurltts\ tllat thl:: $ ltrtirln *uttomg is {etrsi$tunt rvirlt th* *.dlS0 HIL{ mutlrtt
solrlion sinr,e it is using th* sorne exsct ts$l end inp{1dnl[.
r lt lt;lcruges the e fl'on ard money used t* huild arrd maintain t crnrplcx atd grt*ulnr
Re.sl.tifle netrvork model {het is used i the acturl marhel nrn.. It utilir.*r thr salri: srhi:{ub data for int*rrrxl *nd exter.rwl r{$aurces inlirnning the
fxlte$till ftr unsrhedultd $1rr-:p fltn* iulii is infirnnatile tlr*r trxrforming. cr'lrg*sti*n
n*nlgunent and potxntiullS- enibeing phyxi*ll {lcrt trsnsrnissimr ,:t,rtstrainls.
I"&stiy. ilrhc CAIS(} oll'(r$ r Dl1'-Ahcad Mrlket to extcmal cntirim llrr optiolal ptoicipation.
the rr'l)lvl .rt>lution devclopmcnt *,ould rl[orv ]atifiCorp to se.arnl*ssl1, p]nieipatr: ln th{ CAIS0
EDAlvl. if rnd wh*a PacitiCtrp detider to jtirr rh{t rrriirket.
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3$10 Srotocol - Appcxnlix D l-i
Rocky Mountain Power
Exhibit No. 1 Page 1'19 of 134
Case No. PAC-E-19-20
Vvltnessi Joelle R. Steward
EXECUTION VERSION
APPENDIX EaCoal-Fueled lnterim Period Resource Depreciation Lives
2012
Depreciation
2018
Deprcciation
StudY LifeIn
Service
Stud Life Capacity
(Mw)
Phr sical
LocationUnit
OR Othe r
States
PP
States
(1)
RMP
Statcs
.l
Livcs Addressed bv Section 4.1.3.I
Cholla 4
Colstrip 3
Colstrip 4
Craig I
Craig 2
2028
2032
2032
2026
2026
2042
2046
2046
2034
2034
Apr-
25
2027
2027
2025
2026
Apr-
25
2027
2027
2025
2026
387
7+
71
u2
Arizona
Montana
Montana
Colorado
Colorado
Livcs Addrcssed bl. Sections 4.1 .3.2 and 4. 1.3.3
o
Dave Johnston I
Davc Johnston 2
Davc Johnston 3
Dave Johnston 4
Hurter I
Hunter 2
Hunter 3
Huntington I
Huntington 2
Jim Bridger I
Jim Bridger 2
Jim Bridgcr 3
Jim Bridger 4
Naughton I
Naughton 2
Wrodak
1959
1960
1964
t972
1978
1980
1983
1977
1974
1974
t 975
1976
1979
1963
1968
1978
2023
2023
2023
2023
2029
2029
2029
2030
2030
2025
2025
2025
2025
2028
2028
2026
2027
2027
2027
2027
2042
2042
2042
2036
2016
2037
2037
2037
2037
2029
2029
2039
2023
2023
2023
2023
2029
z0z9
z0z9
2029
2029
2025
2025
z0z5
2025
2028
2028
2026
2027
2027
2027
2027
2042
2042
2042
2036
2036
2028
2032
2037
2037
2029
2029
2039
99
106
220
Jrl,
"118
269
171
459
450
354
359
349
353
156
201
2.68
Wl oming
Wloming
Wloming
Wl oming
Utah
Utah
Utah
Utah
Utah
W1'on.ring
Wloming
Wl oming
Wvoming
Wl oming
Wl oming
Wl oming
Lives Addrcsscd bl Scctron 4.1 .5
Halden I
Ilal dcn 2
1965
t9'16
2023
2023
2030
2030
44
-1-J
Colorado
Colorado
( I ) Thc lifc of coal plants for Washington is addrcsscd in Section 4. L,l
B C D II F G H
o
2020 Protocol - Appedi\ E
l9tt I
1984
1986
1980
t979
2023
2023
2030
2030
Rocky Mountain Power
Exhibit No. 'l Page 120 of 134
Cese No PAC-E-19-20
Vlltness: Joelle R. Steward
EXECUTION VERSTON
APPENDIX F
o Washington Inter-Jurisdictional Allocation Methodology
Memorandum of Understanding
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Rocky Mountain Power
Exhibil No. 1 Page 121 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. Steward
The Washingtou Inter-Jurisdictional Allocation Methodoloqv
Memorandum of Understanding
Introduction
PacifiCorp dlb/aPacifrc Power and Light Company (PacifiCorp or Company), Staff of the
Washington and Utilities and Transportation Commission (Staf|, Public Counsel Unit of the
Washington State Attomey General's Office (Public Counsel) and Packaging Corporation of
America (PCA), have executed this agreement (the Parties or, individually, a Party) enter into
this Memorandum of Understanding (Agreement) to acknowledge their support for certain
adjustments to the West Control Area Inter-Jurisdictional Allocation Methodology (WCA).
Background
PacifiCorp is a multi-j urisdictional electric utility that provides services in six states (California,
Idaho, Oregon, Utah, Wyoming, and Washington). Staffis participating in PacifiCorp's Multi-
State Process (MSP), working towards the Company's goal of developing a common cost
allocation methodology amongst these six states. Currently, Washington uses the WCA for
determining which costs are eligibte for recovery in rates from customers in Washington.r
As approved by the Washington Utilities and Transportation Commission (Commission), the
WCA isolates the costs and revenues associated with assets located in the Company's west
"control area" or "PacifiCorp West Balancing Authority Area" (PACW), and allocates to
Washington a proportionate share of the costs and revenues based primarily on Washington's
relative contribution to demand and energy requirements. The WCA includes loads, generation
and transmission assets, and wholesale contracts for facilities located in Califomia, Oregon, and
Washington. It also includes transmission and generation assets located outside of Califomia,
Oregon, and Washington that are electrically located in PACW. The WCA excludes all loads and
assets located within PacifiCorp's East Balancing Authority Area (PACE).
In the context of inter-jurisdictional cost allocation, the Commission will consider a resource to
be used and useJtrl to Washington customers2 if the resource "provides cptcurtifiable direcl or
indirect beneflts to Ll/ashinglon lratepayersJ con men.\urate u'ith its cosls."3 To modify the WCA
methodology, "any changes should be considered in the context olan overall review ofthat
methodology."r Additionally, Parties must demonstrate that "any changes proposed more closely
aligns with the allocation of costs based on causation[.]"s Finally, "the party advocating for the
change must make a detailed a persuasive show-ing demonstrating that the proposed change is
appropriate."6
I Prior to the WCA methodology being approved in Docket UE-O(>1.5:16. PaciliCorp proposed lhe Reviscd Protocol
as ils cosl allocation methodologl in Docket UE{5068{. The Revised Protocol prescnted costs as an integrated si\-
stalc system. The Commission rcjccted tlrc Rcvised Protocol because thcre rvas not sufficient evidcnce in the record
that the methodolog'' comptied \vith the legal rcquirements in RCW 80.0-1.250. See generoll.v UE45068+. Oder0-1.
r See RCW 80.0.1.250
r Docket UE-05068.1- Ordcr 04 fl 68.
I Docket UE-l-i00.13, Order 05 1 92-94.
6Id.
2020 Protocol - Appendi\ F I
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Rocky Mountain Power
Exhibil No. 'l Page 122 of 1U
The Washington Intcr-Jurisdictional Allocation Mcthoaof q&n&;r$&rEtffiffinderstanding.
Page 2 of 7
Foundation for this Agreement
In this memorandum of understanding, the Parties agree to support certain modifications to the
WCA in the Company's forthcoming rate case provided the Company can demonstrate that the
modifications within this agreement provide beneficial resources to Washington customers that
are used and use.fiil In particular, the Parties agree to support these modiflcations if PacifiCorp
can demonstrate these modifications provide quantifiable direct or indirect benefits to
Washington customers, and that these benefits are commensurate with their costs.? The Parties
agree to work collaboratively with PacifiCorp as they make this demonstration. However, as the
party advocating for these changes, PacifiCorp bears the legal and factual burden to sufficiently
demonstrate that these modifications better align the cost allocation methodology with the
principles described above in its lorthcoming general rate case.
This demonstration may include the lollowing benefits
o A diverse generation portfolio, including an increase in high capacity renewable
generation.. Over 170 interconnections with other BAAs and transmission operalors providing access
to market hubs for wholesale energy transactions (e.9., Mid-C, COB, Mona, Four-
Corners and Palo Verde).o Greater Energy Imbalance Market (EIM) benefits.o Efficiencies, such as retail load characteristics and variable resource diversity, which
minimize operational costs and reduce the need to build for reserves and blackstart
capability lor each state.o Washington recently enacted Senate Bill 5116, the Clean Energy Transformation Act
(CETA) which, among other things, requires the elimination ol coal-fired resources from
PacifiCorp's electric rates by December 31,2025. PacifiCorp's proposed modification to
the WCA will facilitate a reasonable path towards PacifiCorp's compliance with CETA.8
Agreement
Implementation. This Agreement includes modifications to the WCA subject to
approval by the Commission.
? The Commission has slated that one rvav the Conpany can denonstrate this is " Iough historical svstem opcration
or modelins of lhe svstcm sholuing that Eastside plant cosls added to Washinglon rates uould be offset b!
reductions to otlrer cosa catcgorics (e.g.. porer costs). such that overall costs to Washington ratepq'ers \rould bc no
more than rvithout the Eastside resources." Docket UE450684, Order 0,1 fl 69 (emphasis added).
8 CETA also sets a policy of I00 percent clean energy by 2045. RCW 19..105.050. Additionalll.-. CETA establishcs
an interim target of 100 percent Feenhouse gas (GHG) neutrat by 2030, and allorvs utilitics to meel this requircmcnt
through 80 percent non-cmitling cnerg]' and an alternati\€ compliance oplion, including up to 20 percem unbundlcd
renewable energy crcdits. RCW 19.405.040.
I
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2
a
2020 Protocol - Appendis F
Based on this understanding, the Parties agree to the following:
o
.,,,"T,TY*iTiil:iffi
The Washington Intcr-Jurisdictional Allocation Nlcthodolqffiff;r$&ffiiftffinderstanding,
Page 3 of 7
1.1. PacifiCorp will file a rate case that allows for rates to go into effect (after
suspension) on or before January l, 2021. This rate case will use this MOU as the
basis for any proposed modifications to the WCA.
2. Prudence. The proposed allocation ola particular expense or investment under this
Agreement is not intended to and will not prejudge, or prevent any party from taking a
position on, the prudence ofthose costs or the extent to which any particular cost may be
reflected in rates. Nothing in this Agreement is intended to abrogate the Commission's
right or obligation to: ( l) determine fair, just, and reasonable rates based upon applicable
laws and the record established in rate proceedings conducted by the Commission, (2)
consider the impact of changes in laws, regulations, or circumstances on inter-
jurisdictional allocation policies and procedures when determining fair, just, and
reasonable rates; or (3) establish different allocation policies and procedures flor purposes
of allocating costs and revenues to different customers or customer classes.
3. Quantification and Analytical Support. The Parties agree to work collaboratively and
in good faith to agree on the quantification and analytical support necessary lor the
Company to meet its legal and factual burden.
3.1. This analysis should be substantially completed before the filing ofthe general rate
case referenced in section 1. 1 and with enough time to reasonably allow parties to
review- the analysis.
3.2. Before the general rate case referenced in section 1.1 is filed, ila Party determines
that the Company's quantification and analytical support does not demonstrate that
the Company can meet its legal and lactual burden, Parties have the option to
withdraw their support from this agreement.
3.3. After the general rate case relerenced in section I .l is filed, il a Party determines that
this agreement does not result in fair, just and reasonable rates for Washington
customers, a party may withdraw from this agreement. The withdrawing Party must
provide testimony in the general rate case explaining why this agreement does not
result in fair, just and reasonable rates for Washington Customers.
3.4. In the event ofa Party's withdrawal, the remaining Parties may continue to support
this Agreement for approval in any proceeding before the Commission.
4. System Transmission. The Parties agree that all existing system transmissione costs and
benefits will be allocated using the System Generation (SG) lactor as specified in
Attachment 1 .
4.1. Rate Impacts: To mitigate the immediate overall rate impact to Washington
customers in the rate case referenced in Section L l, Parties agree to support the
framework ofthe following phase-in approach.
e E\isti[g tmnsmission inchrdes alry trarsn ssion assct that is insenicc as of Decembcr 3 l. 2019
2020 Protocol - Appendir F
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*.,"T,TYY,:'Jiil'"'%;
The Washington Inter-Jurisdictional Allocation Methodolq8ft"ffi.r$iiEffiftffinderstandlng.
Page 4 of 7
4.1.1, An incremental allocation of one-third of existing transmission costs and
benefits, which are not currently allocated to Washington under the current
WCA methodology, will be included in the rate case relerenced in Section L 1
4.1.3. An incremental allocation ofan additional onethird of existing transmission
costs and benefits, which are not currently allocated to Washington, will be
included in a general rate case or through an amendment to the separate tariff
rider set forth in Section 4.1 .2 with a rate eft'ective date on or belore January I ,
2023.
4.1.3.1. The incremental allocation in 4.1.3 will exclude the costs and benefits of
alI transmi ssion-voltage, radial lines connecting resources not otherwise
included in Washington rates to PacifiCorp's interconnected, network
transmission system. If PacifiCorp is required to include a portion ofa
transmission line in its interconnected, network transmission system for
open access transmission service due to a subsequent generation or load
interconnection, PacifiCorp may request to include such portion of the
assets in a subsequent rate case.
4.1.4. The separate tariffrider described above will remain in place until the lully
allocated cost of transmission costs as described in Section 4 is included in
rates through a general rate case.
4.2. New Transmission, Any new transmissionl0 incremental to the existing
transmission described and included in Section 3, will be system-allocated using the
SG factor as specified in Attachment 1.
4.2.1. Similar to the methodology outlined in 4.1.3.l, Transmission which can be
demonstrated to be used primarily for the transmission of power from
generation assets which are not assigned to Washinglon under the WCA, as
modified by this Agreement, will be excluded from this and any other
allocation to Washington.
4.3. Analytical Support. As a part ofthe analytical support in Section 4, the Company
will quantily the dift'erences between total depreciation and ADIT balances using a
WCA Allocation oltransmission and the system allocation above.
r0 "New" shall constitute assets used and useful for Washington cuslomers after Deceniber 31. 2019
2020 Prolocol - Appendi\ F +
4.1.2. An incremental allocation ofan additional onethird of existing transmission
costs and benefits, which are not currently allocated to Washington, will be
included in a separate tariffrider with a rate effective date on or before
Ianuary 7,2022.
o
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.-','',T,"":Y U"rTli! :iifi
Thc Washington Inter-Jurisdictional Allocation rr,letrloaofqgilm;r$ftTEmffiffinderstanding.
Page 5 of 7
5. Non-Emitting Resources. The Parties agree that all existing and new non-emitting
resources will be dynamically allocated using the SG Factor specified in Attachment 1
5.1. Assignment. If by December 31,2023, none ofthe Parties to this agreement have
signed a new cost allocation methodology with the Company, then the Company
agrees to engage in collaborative conversations w-ith the Panies and other interested
Washington stakeholders to explore the following:
5.1.2. A methodology to allocate fixed shares of existing non-emitting resources
6. Net Power Costs (NPC). Forecasted NPC lor ratemaking purposes will be consistent
with Sections 1,4,5,6, and 7 of this agreement. Additionally, Washington customers will
receive all direct and indirect benefits associated with their proportional system-allocated
share of existing transmission, including Energy lmbalance Market benefits.
6.1. Actual NPC. Actual NPC for ratemaking purposes will include only the generation
resources included in Washington rates and will be calculated using a spreadsheet,
6.2. Qualifying Facilities. The costs and benefits ofPower Purchase Agreements for
Qualifying Facilities (QF PPAs) will continue to be situs assigned to the state having
jurisdiction over the QF PPA for cost responsibility, renewable energy credit
assignment and resource planning.
7. Accelerated Depreciation. PacifiCorp and Staff agree to support a final depreciation
date of December i 1, 2023, for Bridger Units I -4, Colstrip 4 and any transmission assets
associated solely with the interconnection ofthese units to the transmission network. This
date does not represent a date olestimated closure, changes in operations, or the end ol
the assignment to Washinglon of either benefits or costs associated with these plants.
Public Counsel and PCA reserve the right to make a recommendation on the depreciation
for Bridger Units 1-4, Colstrip, and any transmission assets associated solely with the
interconnection ofthese units to the transmission netw-ork in PacifiCorp's forthcoming
general rate case.
7.1. Capital Investments. Washington will continue to be allocated a WCA share of
ongoing capital investments expenses for these plants, excluding incremental capital
investments that are made primarily for the purpose ofextending the life ofthese
plants. Incremental capital investments that are made prirnarily for the purpose of
extending the life ofthese plants includes, but is not limited to, those associated with
achieving compliance with environmental requirements or those necessitated by
catastrophic failure.
7.2. Deadline for Removal. Consistent with RCW 19.405.030. PacifiCorp will remove
from Washington rates all costs and benefits associated with Bridger units 1-4 and
Colstrip unit 4 no later than December 31, 2025.
l
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2020 Pmtocol - App€ndi\ F
5.1.1. An Assignment method lbr new resources for the purposes of the WCA; and,
o
Rocky Mountain Power
Exhibit No. 1 Page 126 of'134
Thc Washington Inter-Jurisdictionat Atlocation MethodolWfimffifiiEffift,ffifundcrstanding.
Page 6 of 7
7.3. Resource Flexibility. The dates articulated in this section are agreed upon by parties
to facilitate the removal of coal from Washington Rates by 2025, and provide the
flexibility that may allow for early compliance with CETA.
8. Decommissioning Cost. Washington will continue to be allocated ongoing and expected
decommissioning expenses for a WCA share of Jim Bridger Units l-4 and Colstnp Unit
4.
8.1. Cotstrip Engineering Study. The Company will provide by March 30, 2020, an
independent engineering study of estimated decommissioning costs for Colstrip.
8,2. Jim Bridger Engineering Study. The Company will provide by January 15,2020,
an independent engineering study olestimated decommissioning costs for Jim
Bridger.
8.3. Cost Assignment, To lacilitate the allocation ol decommissioning costs, Parties
agree to support a system allocation ofthe costs associated with an independent
engineering study in 8.1 and 8.2.
9. This agreement proposes modifications to the WCA, which serves as the basis for
allocating costs in Washington. PacifiCorp will allocate costs based on the WCA
consistent with the modifications in this Agreement for ratemaking purposes in
Washington unless a different cost allocation method is approved by the Commission
10. Each Party to this Agreement represents that they are signing this Agreement in good
faith and that they intend to abide by the terms ofthis Agreement.
11. This Agreement may be executed in counterparts and each signed counterpart constitutes
an original document.
12. Attachment 1 contains updated allocation factors consistent with this Agreement
13. This Agreement is entered into by each Party on the date entered below such Paty's
signature.
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2020 Protocol - Appondi\ F 6
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*,.,"i::Y l"iTli? "","i,";
The Washington Inter-Jurisdictional Allocation fvfe*oaof qgfr;Td;ffiffiffiffinderstanding,
Pagc 7 of 7
PACTFICORP
Title
Date
By
By,
PUBLIC COUNSEL
STAFF OF THE WASIIINGTON
UTILITIES AND TRANSPORTATION
COMMISSION
By
Date
PACKAGING CORPORATION OF
AMERICA
By
Title
Date
Title
Date:
o
a
2020 Protocol - Appendix F
Title.
Rocky Mountain Power
Exhibil No. 1 Page 128 of 134
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'Ihc Washington later-Jurisdictional Allocation Methodology Mearorandum of Undentandiog;
Page 7 of?a
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A}.{ERI
PACIFICf}RP
By:
'fitle:
l,ir: vl:'
PTiBLIC CO{INSEI,
,:i
STAFF OF THE WASIIINGTON
UTILTTIES ANI} TRANSPORTAT]ON
COMMISSTON
8y,
Tide:
Dato:
P.{CKAGTNC CORPORATION OF
t l e
By,
'Iitle:
tsy:
lt
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2020 Protocol - Appendix F
Da!e: ii l}.?-i 1{
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Rocky Mountain Power
Exhibit No. 1 Page'129 of 134
Case No. PAC-E-19-20
VMlness: Joelle R Slewerd
The Washington Inter-Jurisdictional Allocation Methodolory Memorandum of Understand ing,
Page 7 of 7
PACIFICORP
Title:
Date:
By:
By:
PUBLIC COUNSEL
STAFF OF TIIE WASHINGTON
UTILITIES A}ID TRANSPORTATION
COMMISSION
By:
Title:
Date 22
PACKAGING CORPORATION OF
AMERICA
By:
Title:
Date:
Title:
Date
o
9
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2020 Protocol - Appendix F
/z/r*
Rocky Mountain Power
Exhibit No. 1 Page 130 of 134
Tte trVashington Inter-Jurisdictioual Allocatioh illethodolqennss,$ft#ffi-ffi,fiJ$,nderchnding
Plgc 7 of 7
o PACIflCORP STAFF OF THE IVASHII{GTON
LITILITTES AND TR.I.NSP(}RTATION
CO}IMISSION
l) -v..:B-v,
'l'itle:
Date:_Daler
PUtsLIC C()LJ\SIIL PACKAGI\G COITPORAUON OF
AT.IERICA
By:By,
'fitle:Assistant Attorney General Tirle:
Date:11t21t2019 Ilate;
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Title: _
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Rocky Mountain Power
ExhibitNo.'1 Page'131 of 134 f,XECUTION VERSION
Case No. PAC-E-19-20
Vvitness: Joelle R. Stewad
APPENDIX G
Special Contracts
Special Contracts without Ancillary Service Contract Attributes
For allocation purposes, Special Contracts without identifiable Customer Ancillary Service
attributes are viewed as one transaction.
Loads of Special Contract customers will be included in all Load-Based Dynamic
Allocation Factors.
When interruptions of a Special Contract customer's service occur, the reduction in load
will be reflected in the host jurisdiction's Load-Based Dynamic Allocation Factors.
Actual revenues received from Special Contract customer will be assigned to the State
where the Special Contract customer is located.
Special Contracts with Customer Ancillary Service Attributes
For allocation purposes, Special Contracts with Customer Anciltary Service attributes are
viewed as two transactions. PacifiCorp sells the customer electricity at the retaiI service
rate and then buys the electricity back during the interruption period at the Customer
Ancillary Service Contract's rate.
Loads of Special Contract customers will be included in all Load-Based Dynamic
Allocation Factors.
When interruptions ofa Special Contract customer's service occur, the host jurisdiction's
Load-Based Dynamic Allocation Factors and the retail service revenue are calculated as
though the interruption did not occur.
Revenues received from Special Contract customer, before any discounts for Customer
Ancillary Services attributes ol the Special Contract, will be assigned to the State where
the Special Contract customer is located.
Discounts from tarilfprices provided for in Special Contracts that recognize the Customer
Ancillary Services attributes of the Contract, and payments to retail customers for
Customer Ancillary Services will be allocated among States on the same basis as System
Resources.
See example in Table 2a
2020 Protocol - Appendi\ G
See example in Table L
I
Rocky Mountain Power
Exhibit No. '1 Pase '132 of 134 EXECUTION VERSION
Case No. PAC-E-19-20
Wtnessr Joelle R. Steward
a Buy-through of Economic Curtailment
When a buy-through option is provided with economic curtailment, the load, costs, and
revenue associated with a customer buying through economic curtailment will be excluded
from the calculation of State revenue requirements. The cost associated with the buy-
through will be removed from the calculation of net power costs, the Special Contract
customer load associated with the buy-through will be not be included in the calculation of
Load-Based Dynamic Allocation Factors, and the revenue associated with the buy-through
will not be included in State revenues.
I
2
o
2020 Protocol - Appcndix G
Rocky Mountain Power
Exhibit No. 1 Page '133 of 134
Case No. PAC-E-19-20
Wtness: Joelle R. Stewajd
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!0!tt Protocol - ,\ryendix G
Table I
lntenustiblB Contract Without Ancillary Servicc Contract Attributes
Effact on R6venue R6quir6ment
FdlE Iorrl it*s$r Jui..lidl8 l JrtrL$:ns I -lBrisdicuao l
No lnterniptihle Service
i) $4i
:.1:Iy6
Rocky Mountain Power
Exhibit No. '1 Page'134 of 134
Case No. PAC-E-19-20
V\rflness: Joelle R. Steward
o Tabla 2
lnterruptible Con$act gYith Ancillary Service Contrart Attribuie6
Effeet on Revenus Rdqsir€mont
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!Q!0 Prototol - Appendix G
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