HomeMy WebLinkAbout20210409Decision Memo.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: APRIL 8, 2021
SUBJECT: 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
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 Company also seeks Commission approval of $16.1 million of deferred costs.
The Commission approved the ECAM in 2009. Order Nos. 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. The ECAM adjusts the
Company’s rates up or down to ensure the rates capture the difference between the Company’s
actual power supply costs and the base (or embedded) power supply costs the Company collected
from customers through previously approved base rates.
With this Application, the Company 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 $3.1 million. The Company states that if its proposal is
approved, prices for customer classes would decrease as follows:
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DECISION MEMORANDUM 2
• 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%)
The Company asks that its proposed Schedule 94 become effective on June 1, 2021.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Modified
Procedure, setting a May 13, 2021 comment deadline and a May 20, 2021 reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure setting a May 13, 2021 comment deadline, and a May 20, 2021 reply deadline?
Matt Hunter
Deputy Attorney General
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