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HomeMy WebLinkAbout20210416Notice_of_Application_Order_No_35006.pdfNOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35006 1 Office of the Secretary Service Date April 16, 2021 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION REQUESTING APPROVAL OF $16.1 MILLION NET POWER COST DEFERRAL (ECAM) ) ) ) ) ) ) ) ) CASE NO. PAC-E-21-09 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35006 On March 31, 2021, PacifiCorp dba Rocky Mountain Power (Company) applied for Commission authorization to adjust its rates under the Energy Cost Adjustment Mechanism (ECAM). The ECAM allows the Company to adjust its rates each year to capture the difference between the Company’s actual power supply expenses and the power expenses embedded in base rates. The adjustment is a separate line item on customer bills that increases if power supply costs are higher than the amount already included in base rates, or decreases if power supply costs are lower. The ECAM does not affect the Company’s earnings. The Company also seeks Commission approval of about $16.1 million of deferred costs. The Commission now provides notice of the Application and sets comment deadlines. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Commission approved the ECAM in 2009. Order No. 30904. The ECAM allows the Company to increase or decrease its rates each year to reflect changes in the Company’s power supply costs. These costs vary by year with changes in the Company’s fuel (gas and coal) costs, surplus power sales, power purchases, and associated transmission. Each month, the Company tracks the difference between the actual net power costs (NPC) it incurred to serve customers, and the embedded (or base) NPC it collected from customers through base rates. The Company defers the difference between actual NPC and base NPC into a balancing account for later disposition at the end of the yearly deferral period. At that time, the ECAM allows the Company to credit or collect the difference between actual NPC and base NPC through a decrease or increase in customer rates. This year, the deferred NPC difference was about $14.3 million. YOU ARE FURTHER NOTIFIED that, besides the NPC difference, this year’s ECAM includes: (1) the Load Change Adjustment Revenues (LCAR); (2) an adjustment for coal stripping NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35006 2 costs; (3) a true-up of 100% of the incremental Renewable Energy Credit revenues; (4) Production Tax Credits; (5) the Lake Side 2 generation resource adder; and (6) a resource tracking mechanism. The ECAM includes a “90/10 sharing band” in which customers pay/receive 90% of the increase/decrease in the difference between actual NPC and base NPC, LCAR, and the coal stripping costs; and the Company incurs/retains the remaining 10%. The Company’s Application includes the testimony of witnesses who explain each of these items in detail. YOU ARE FURTHER NOTIFIED that with this ECAM Application, the Company ultimately seeks an order approving the Company’s: (1) deferral, for later recovery through rates, of $16.1 million in costs; and (2) revised Electric Service Schedule 94, Energy Cost Adjustment, which would reflect the ECAM adjustment and decrease the Company’s Schedule 94 revenues by approximately $3.1 million. As noted above, the Company states that if its proposal is approved, prices for customer classes would decrease as follows: • Residential Customers – (0.8%) • Residential Schedule 36, Optional Time-of-Day Service – (0.9%) • General Service Schedule 6 – (1.1%) • General Service Schedule 9 – (1.2%) • Irrigation Customers – (1.0%) • Commercial or Industrial Heating Schedule 19 – (1.0%) • General Service Schedule 23 – (0.9%) • General Service Schedule 35 – (1.3%) • Public Street Lighting – (0.4%) • Industrial Customer, Schedule 400 – (1.3%) • Industrial Customer, Schedule 401 – (1.3%) Application, Meredith Direct, Exhibit No. 2. The Company asks that its proposed Schedule 94 take effect on June 1, 2021. YOU ARE FURTHER NOTIFIED that the Application is available for public inspection during regular business hours at the Commission’s office. These documents are also available on the Commission’s web site at www.puc.idaho.gov. Click on the “ELECTRIC” icon, select “Open Cases,” and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35006 3 YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, IDAPA 31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Application may file a written comment explaining why the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments. Persons shall have until May 13, 2021 to file written comments. Comments must be filed through the Commission website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission’s home page 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: /// NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35006 4 For the Idaho Public Utilities Commission: Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 E-mail: secretary@puc.idaho.gov Street Address for Express Mail: 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, Idaho 83714 For Rocky Mountain Power: Ted Weston Idaho Regulatory Affairs Manager Rocky Mountain Power 1407 West North Temple, Suite 330 Salt Lake City, UT 84116 E-mail: ted.weston@pacificorp.com Emily Wegener Senior Attorney Rocky Mountain Power 1407 West North Temple, Suite 320 Salt Lake City, UT 84116 E-mail: emily.wegener@pacificorp.com Please send all data requests regarding this Application in Microsoft Word to: datarequest@pacificorp.com If e-mail is unavailable, then Data Request Response Center PacifiCorp 825 Multnomah, Suite 2000 Portland, Oregon 97232 YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by May 20, 2021. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. O R D E R IT IS HEREBY ORDERED that the Company’s Application be processed by Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written comments must do so by May 13, 2021. The Company must file any reply comments by May 20, 2021. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35006 5 IT IS FURTHER ORDERED that parties should continue to comply with Order No. 34781, issued September 17, 2020. 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. DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 16th day of April 2021. PAUL KJELLANDER, PRESIDENT KRISTINE RAPER, COMMISSIONER ERIC ANDERSON, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\PAC-E-21-09\orders\PACE2109_Ntc_of_App_mh.docx