20211102Notice_of_Proposed_Settlement_Order_No_35216.pdf

NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 1

Office of the Secretary
Service Date
November 2, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF ROCKY MOUNTAIN
POWER’S APPLICATION FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES IN IDAHO AND APPROVAL
OF PROPOSED ELECTRIC SERVICE
SCHEDULES AND REGULATIONS
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CASE NO. PAC-E-21-07

NOTICE PROPOSED
SETTLEMENT

NOTICE OF AMENDED
SCHEDULE

NOTICE OF COMMENT
DEADLINE

ORDER NO. 35216

On May 27, 2021, PacifiCorp dba Rocky Mountain Power (“Company”) applied to the
Commission requesting authority to increase its Idaho jurisdictional revenue requirement by $19.0
million, or approximately 7.0 percent. P4 Production, LLC, an affiliate of Bayer Corporation
(“Bayer”), Community Action Partnership Association of Idaho (“CAPAI”), Idaho Conservation
League (“ICL”), Idaho Irrigation Pumpers Association, Inc. (“IIPA”), and PacifiCorp Idaho
Industrial Customers (“PIIC”) (the “Intervenors”) intervened in the case. See Order Nos. 35073,
35081, 35106, and 35112.
On August 13, 2021, Staff notified the Commission that the parties intended to enter
settlement discussions with the intent to resolve the outstanding issues in the case. See IDAPA
31.01.01.271 through .277. On August 24, 2021, the Commission set a schedule for processing
this case. Order No. 35144.
On October 25, 2021, a proposed Stipulation and Settlement (“Settlement”) were filed
with the Commission. See IDAPA 31.01.01.056, .272, .274. The proposed Settlement was signed
by the Company, Staff, Bayer, IIPA, and PIIC (collectively the “Parties” or individually “Party”).
The two parties that did not sign—CAPAI and ICL—both moved to withdraw. On October 26,
2021, at the Commission’s regular decision meeting, CAPAI and ICL were granted withdrawal.
With this Order, we provide notice of the proposed Settlement, amend the schedule for
this case, and provide notice of a written comment deadline for customers.

NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 2

NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Parties agree the proposed Settlement
represents a fair, just, and reasonable compromise of the issues in this proceeding and the proposed
Settlement is in the public interest.
YOU ARE FURTHER NOTIFIED that under the proposed Settlement, the Company
would be allowed to increase base rates by $8.0 million or 2.9 percent, effective January 1, 2022.
The Parties agree that the increase does not represent agreement or acceptance by the Parties of
any specific revenue requirement method, unless specified.
YOU ARE FURTHER NOTIFIED that in Case No. PAC-E-18-08, Order No. 34754,
the Commission allowed the Company to defer incremental depreciation expenses of $13,940,303,
as a regulatory asset. Under the proposed Settlement, the Parties agree this regulatory asset will be
amortized in base rates over four years, beginning on January 1, 2022.
YOU ARE FURTHER NOTIFIED that the Deer Creek Mine regulatory asset will be
amortized over three years. This includes amortization of $14,347,296 in unpaid royalties and
$6,521,059 of unpaid future remediation expenses.
YOU ARE FURTHER NOTIFIED that the amortization of the Resource Tracking
Mechanism (“RTM”) regulatory asset is not included for recovery as part of the stipulated rate
increase.1 Under the proposed Settlement, the Company will continue to defer these incremental
costs in the RTM through December 31, 2021, as a regulatory asset. There will be no
carrying charge. Treatment of this regulatory asset will be determined in the next general rate
case.
YOU ARE FURTHER NOTIFIED that under the proposed Settlement, the following
base amounts for the Energy Cost Adjustment Mechanism are included in Attachment 1 to the
Proposed Settlement:

1 In Case Nos. PAC-E-17-06, Order No. 33954, and PAC-E-17-07, Order No. 34104, the Commission authorized the
Company to defer the costs and benefits for certain repowered and new wind facilities through a RTM included as a
component of the Energy Cost Adjustment Mechanism up to the amount of benefits customers received from those
projects. Any costs above the benefits were to be deferred as a regulatory asset with recovery to be determined in the
next general rate case. An estimate of the deferral was included as adjustment 8.16 in the Company’s Application,
Exhibit 40.

NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 3

• Net Power Costs - $1.368 billion or $24.54/MWh
• Production Tax Credits - $256,612,477 or $4.16/MWh
• Renewable Energy Credits - $4,327,004 or $0.07/MWh
• LCAR - $8.74/MWh

YOU ARE FURTHER NOTIFIED that under the proposed Settlement, the remaining
excess deferred income tax balance of $8.5 million will be amortized over two years through
Electric Service Schedule No. 197. The Parties agree, if federal tax rates increase before this
balance is completely amortized then the amortization will stop as of the effective date of the tax
increase. Additionally, if there is a change to federal tax rates before the Company’s next general
rate case, the Parties will support the Company’s filing of an application seeking to defer the
incremental tax impacts as of the effective date of the new tax rate.
YOU ARE FURTHER NOTIFIED that the Parties agreed to the value of Bayer’s
curtailment products as of January 1, 2022. The Parties agreed the amount and method for this
value are not precedent setting. The Parties also agreed that the terms and conditions of the Energy
Service Agreement filed with the Commission as Supplemental Exhibit 36 in this case are just,
reasonable, and in the public interest.
YOU ARE FURTHER NOTIFIED that the Parties agreed to a rate spread based on the
$8.0 million rate increase. The Parties agree the rate design and tariff changes shall be consistent
with the Company’s proposals as set forth in the Application. Rates for Schedule 9 will be designed
for current Schedule 9 customers prior to the migration of the Schedule 401 customer, based on
the system average rate increase, with the difference from the Company’s filed case applied to the
off-peak energy charges. Schedule 401 will migrate to Schedule 9 based on this rate
design. Schedule 9 will be revised to increase the limit on the customer’s maximum power
requirement to 30,000 kW. Street and area lighting customers served under Schedules 7, 11, and
12 will receive a decrease in rates that moves rates 50 percent closer to cost of service. Schedule
23 General Service customers will use a seasonal difference ratio of 1.20 and a primary customer
charge of $48. Schedule 19 Commercial and Industrial Space Heating customers will migrate to
Schedule 23 based on this rate design.
NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 4

YOU ARE FURTHER NOTIFIED that under Commission Rule 275, “[p]roponents of
a proposed settlement carry the burden of showing that the settlement is reasonable, in the public
interest, or otherwise in accordance with law or regulatory policy.” IDAPA 31.01.01.275.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the proposed
Settlement reached by the Parties. The Commission will independently review any proposed
settlement to determine whether the settlement is just, fair, and reasonable, and in the public
interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a
settlement, reject a settlement, or state additional conditions under which a settlement will be
accepted. IDAPA 31.01.01.274-.276.
YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the
proposed Settlement or imposes any additional material conditions on its approval, each party
reserves the right to withdraw from the proposed Settlement.
YOU ARE FURTHER NOTIFIED that the proposed Settlement in Case No. PAC-E-
21-07 has been filed with the Commission and is available for public inspection during regular
business hours at the Commission’s office or on the Commission’s website at www.puc.idaho.gov.
Click on the “ELECTRIC” tab in the left-hand column of the home page, click “Open Cases,”
click on either case number as shown on the front of this document. You then may access the
Settlement by clicking on “SETTLEMENT STIPULATION-REDACTED.PDF” under the
“Company” heading.
AMENDED NOTICE OF SCHEDULING
YOU ARE FURTHER NOTIFIED that based on the recently filed proposed
Settlement, the Commission finds it reasonable to amend the procedural schedule. The new
Schedule is:
Testimony in support November 8, 2021
Company Reply November 10, 2021
Customer Hearing November 15, 2021
Technical Hearing November 16, 2021
Customer Comment Deadline November 16, 2021
NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 5

YOU ARE FURTHER NOTIFIED that the date established for a customer hearing has
not changed from the schedule set in Order No. 35144.2 The technical hearing schedule has been
amended and will take place on November 16, 2021, only.3
YOU ARE FURTHER NOTIFIED that all testimony and exhibits in this matter must
comport with the requirements of Rules 231 and 267 of the Commission’s Rules of Procedure.
IDAPA 31.01.01.231 and .267.
NOTICE OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that the Commission seeks comments from the
public on the proposed Settlement. Persons desiring to state a position on the proposed Settlement
may file a written comment explaining why the person supports or opposes the proposed
Settlement. Persons shall have until November 16, 2021 to file written comments. Comments
may be filed through the Commission’s website or by e-mail unless computer access is
unavailable. To comment electronically, please access the Commission’s website at
www.puc.idaho.gov. Click the “Case Comment Form” and complete the form using the case
number as it appears on the front of this document. To file by e-mail, the customer must e-mail the
comments to the e-mail addresses listed below. In addition to submitting the comments to the
Commission Secretary, the customer must also e-mail the Company at the e-mail addresses listed
below. If computer access is unavailable, then comments may be mailed to the Commission and
Company at these addresses:
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2 On October 18, 2021, the Commission issued an Amended Notice of Customer Hearing changing the call-in
information to allow participants to choose to “listen-only” or “offer verbal testimony.” Order No. 35199.
3 In Order No. 35144, the Commission scheduled the technical hearing for “Tuesday, November 16, 2021,
commencing at 9:30 am (MST); and continuing on Wednesday, November 17, 2021; Thursday, November 18, 2021;
and Friday November 19, 2021, if necessary” (emphasis added).
NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 6

For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
For Rocky Mountain Power:

Ted Weston
1407 West North Temple, Suite 330
Salt Lake City, UT 84116
[e-mail]

Emily Wegener
Matthew McVee
1407 West North Temple, Suite 320
Salt Lake City, UT 84116
[e-mail]
[e-mail]

O R D E R
IT IS HEREBY ORDERED that the procedural schedule, set forth in the above
Amended Notice of Scheduling, is approved.
IT IS FURTHER ORDERED that the Parties to the proposed Settlement have until
November 8, 2021 to file testimony in support of the Settlement and any exhibits with the
Commission.
IT IS FURTHER ORDERED that the Company must file any reply by November 10,
2021.
IT IS FURTHER ORDERED that the Commission will hold a technical hearing for the
Parties to offer evidence and examine witnesses on Tuesday, November 16, 2021, at 9:30 AM
(Mountain Time).
IT IS FURTHER ORDERED that persons interested in submitting written comments
on the proposed Settlement must do so by November 16, 2021.
IT IS FURTHER ORDERED that parties should continue to comply with Order No.
35058, issued June 3, 2021. All pleadings should be filed with the Commission electronically and
shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.

NOTICE OF PROPOSED SETTLEMENT
AMENDED NOTICE OF SCHEDULING
NOTICE OF COMMENT DEADLINE
ORDER NO. 35216 7

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 2nd day
of November 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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