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HomeMy WebLinkAbout20220204Final_Order_No_35312.pdf ORDER NO. 35312 1 Office of the Secretary Service Date February 4, 2022 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER’S ANNUAL TRANSMISSION REPORT AND AUTHORITY TO TERMINATE FUTURE REPORTS ) ) ) ) ) ) CASE NO. PAC-E-21-21 ORDER NO. 35312 On November 23, 2021, PacifiCorp, d/b/a Rocky Mountain Power (“the Company”) applied to the Commission for authority to terminate the annual reporting requirement implemented in Order No. 33313. On December 16, 2021, the Commission issued a Notice of Application and Notice of Modified Procedure establishing public comment and Company reply deadlines. See Order No. 35258. On January 18, 2022, the Commission Staff (“Staff”) filed comments on the matter and was the only party to do so. The Company did not file reply comments. Now, the Commission issues this final Order approving the Company’s request to terminate its future annual transmission reports. BACKGROUND Collectively, the Company and Idaho Power Company (“Parties”) own and operate the Jim Bridger Power Plant (“Bridger”) and associated transmission assets. On December 19, 2014, the Parties jointly applied to the Commission for approval to exchange certain transmission assets. See Case No. PAC-E-14-11. On June 5, 2015, under Idaho Code § 61-328, the Commission approved the Parties’ joint application that requested authority to exchange transmission facilities connected to Bridger. See Order No. 33313. In that Order, the Commission conditioned its approval on the requirement that (1) any financial benefits from the exchange be returned to customers1; and (2) the Company file annual reports with the Commission documenting any changes to the Company’s wheeling expenses associated with Idaho Power. See Order No. 33313 at 14. Additionally, the Commission stated that once the change in transmission revenues and wheeling expenses were reflected in the Company’s base rates, the Parties could request to stop 1 The financial benefits from the Transmission Facilities flow back to the Company’s customers through the energy cost adjustment mechanism (ECAM) where actual transmission wheeling expenses are compared to the normalized levels in base rates. ORDER NO. 35312 2 filing the annual reports. Id. Order 33313 recognized that the annual transmission report was transaction specific; therefore, it would not be required indefinitely. THE APPLICATION In compliance with Order No. 33313, the Company reported $16.3 million in transmission wheeling expenses paid to Idaho Power between October 1, 2020 and September 30, 2021—a $200,000 increase over the prior reporting period. Application at 3. On May 27, 2021, the Company filed a general rate case with the Commission requesting authority to increase its Idaho base rates.2 Id. at 4. On December 30, 2021, the Commission approved the settlement stipulation filed in the Company’s general rate case (Case No. PAC-E-21-07) and established new base rates inclusive of the financial benefits from the transmission revenues and wheeling expenses. See Order No. 35277. STAFF COMMENTS Staff reviewed the Company’s Application and additional details in Case No. PAC-E- 21-07 discussed above. Staff Comments at 3. Based on its review, Staff believed the Company complied with Order No. 33313 and recommended that the Commission approve the Company’s Application to discontinue its annual filing reports of transmission wheeling expenses. Id. Additionally, Staff audited sample expenditures in the Company’s annual reports and verified that the Company recorded those expenses properly. Id. Staff also verified that the benefits from the Idaho Power transmission asset exchange were credited to the Company’s customers. Id. Because the financial benefits from the transmission revenues and wheeling expenses are now included in base rates, Staff recommended that continued tracking and reporting of wheeling expenses was unnecessary. COMMISSION FINDINGS AND DECISION The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502 and -503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and contracts of public utilities and to determine whether they are just, reasonable, preferential, discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code §§ 61-502 and 61-503. Pursuant to this authority, we have reviewed the record, including the Application and Staff’s comments. We find that the Company complied with Order No. 33313 and has recorded its 2 See Case No. PAC-E-21-07. ORDER NO. 35312 3 transmission and wheeling expenses properly. We also find that the transmission revenues and wheeling expenses are now included in the Company’s base rates—making the continued need for tracking and reporting unnecessary. O R D E R IT IS HEREBY ORDERED that the Company’s requirement to file annual transmission reports as directed in Order No. 33313 is no longer required. THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61- 626. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 4th day of February 2022. ERIC ANDERSON, PRESIDENT JOHN CHATBURN, COMMISSIONER JOHN R. HAMMOND, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\PAC-E-21-21\orders\PACE2121_final_tb.docx