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HomeMy WebLinkAbout20220420Notice_of_Application_Order_No_35376.pdfNOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35376 1 Office of the Secretary Service Date April 20, 2022 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION REQUESTING APPROVAL OF $28.4 MILLION ECAM DEFERRAL ) ) ) ) ) ) ) ) CASE NO. PAC-E-22-05 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35376 On March 30, 2022, PacifiCorp dba Rocky Mountain Power (“Company”) applied for Commission authorization to adjust its rates under the Energy Cost Adjustment Mechanism (“ECAM”) and requested approval of approximately $28.4 million in deferred costs from the deferral period beginning January 1, 2021 through December 31, 2021. The Commission now provides notice of the Application and sets comment deadlines. BACKGROUND The Commission approved the use of the ECAM in 2009. Order No. 30904. Each month, the Company tracks the difference between the actual net power costs (“NPC”) it incurred to serve customers, and the base NPC it collected from customers through previously established base rates. 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 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. 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. The ECAM does not affect the Company’s earnings. In addition to the NPC difference, the ECAM includes: (1) the Load Change Adjustment Revenues (“LCAR”); (2) an adjustment for coal stripping costs under Emerging Issues Task Force (“EITF”) 04-06; (3) a true-up of 100% of the incremental Renewable Energy Credit (“REC”) revenues; (4) Production Tax Credits (“PTC”); (5) the Lake Side 2 generation resource adder; (6) a resource tracking mechanism (“RTM”); and (6) the reasonable energy price (“REP”), as defined in the 2020 Protocol, qualified facility (“QF”) and energy imbalance market (“EIM”) body of state regulators (“BOSR”) costs. The ECAM also includes a “90/10 sharing band” in which customers pay/receive 90% of the increase/decrease in the difference between actual NPC and NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35376 2 base NPC, LCAR, and the EITF 04-06 coal stripping costs; and the Company incurs/retains the remaining 10%. The Company’s Application includes witness testimony explaining the calculation of each of the above items. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company seeks an order approving: (1) approximately $28.4 million in ECAM deferral; and (2) a 4.5 percent increase to Electric Service Schedule No. 94, Energy Cost Adjustment. The Company estimates that a residential customer using 783 kilowatt-hours per month would see an increase of approximately $2.97 a month on their electricity bill, and the Company has provided a summary of the estimated increased percentage impacts by customer class: • Residential Customers – (3.2%) • Residential Schedule 36 – (3.7%) • General Service Schedule 6 – (4.6%) • General Service Schedule 9 – (5.8%) • Irrigation Service Schedule 10 – (4.1%) • General Service Schedule 23 – (3.8%) • General Service Schedule 35 – (4.4%) • Public Street Lighting – (2.2%) • Tariff Contract 400 – (6.0%) The Company has requested that its proposed adjustment to the Electric Service Schedule No. 94 become effective on June 1, 2022. 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 website 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. 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 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35376 3 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 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, 2022, to file written comments. Comments must 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 Commission Secretary and 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: For the Idaho Public Utilities Commission: Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 secretary@puc.idaho.gov Street Address for Express Mail: 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 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 ted.weston@pacificorp.com Emily Wegener Senior Attorney Rocky Mountain Power 1407 West North Temple, Suite 320 Salt Lake City, UT 84116 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, OR 97232 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35376 4 YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by May 19, 2022. 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. ORDER IT IS HEREBY ORDERED that the Company’s Application be processed by Modified Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written comments must do so by May 13, 2022. The Company must file any reply comments by May 19, 2022. 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 APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35376 5 DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 20th day of April 2022. ERIC ANDERSON, PRESIDENT JOHN CHATBURN, COMMISSIONER JOHN R. HAMMOND JR., COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\PAC-E-22-05 ECAM\orders\PACE2205_Ntc_of_App_cb.docx