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HomeMy WebLinkAbout20230413Notice_of_Application_Order_No_35740.pdfNOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35740 1 Office of the Secretary Service Date April 13, 2023 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION REQUESTING APPROVAL OF $32.5 MILLION ECAM DEFERRAL ) ) ) ) ) ) ) ) CASE NO. PAC-E-23-09 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35740 On March 30, 2023, PacifiCorp dba Rocky Mountain Power (“Company”) applied for authorization to adjust its rates under the Energy Cost Adjustment Mechanism (“ECAM”). The Company seeks an order approving approximately $32.5 million in ECAM deferred costs and a 2.3 percent increase to Electric Service Schedule No. 94, Energy Cost Adjustment (“Schedule 94”). The monthly bill of an average residential customer using 783 kilowatt-hours of electricity would increase by about $1.57. The Company requests its proposed adjustment be processed by Modified Procedure and become effective on June 1, 2023. The Commission now issues this Notice of Application and Notice of Modified Procedure establishing public comment and Company reply deadlines. BACKGROUND 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 costs. 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. Neither the Company nor its shareholders will receive any financial return because of this filing. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35740 2 NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that, besides the NPC difference, this year’s ECAM includes: (1) the Load Change Adjustment Revenues (“LCAR”); (2) an adjustment for coal stripping costs;1 (3) a true-up of 100% of the incremental Renewable Energy Credit revenues; (4) Production Tax Credits; (5) reasonable energy price (“REP”) QF adjustment;2 (6) wind liquidation damages; and (7) interest on deferral. YOU ARE FURTHER NOTIFIED that with its Application, the Company seeks an order approving the Company’s: (1) request for a $32.5 million ECAM deferral; and (2) a 2.3 percent increase for Schedule 94. The Company states that if its proposal is approved, prices for customer classes would increase as follows: • Residential Schedule 1 – (1.6%) • Residential Schedule 36, Optional Time-of-Day Service – (1.9%) • General Service Schedule 6 – (2.3%) • General Service Schedule 9 – (2.9%) • Irrigation Customers – (2.1%) • General Service Schedule 23 – (2.0%) • General Service Schedule 35 – (2.2%) • Public Street Lighting – (1.1%) • Tariff Contract, Schedule 400 – (3.0%) Application, Meredith Direct, Exhibit No. 2. YOU ARE FURTHER NOTIFIED that the Application and Direct Testimony are 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. 1 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%. 2 The REP QF adjustment flows from the 2020 Inter-Jurisdictional Allocation Protocol where, during the Interim Period, “energy output of New QF PPAs will be dynamically allocated . . . using the SG Factor, priced at a forecasted [REP] . . . and any cost of a New QF PPA above the forecasted [REP] will be situs assigned and allocated to the State of Origin.” Direct Testimony of Jack Painter at 10; Order No. 34640. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35740 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 it will review the case through written submissions under the Commission’s Rules of Modified Procedure Rules 201-204 of the Idaho Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201-204. 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 they support or oppose the Application. Persons who would like a hearing must specifically request a hearing in their written comments. Persons shall have until May 10, 2023, 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 Secretary 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: Mark Alder 1407 West North Temple, Suite 330 Salt Lake City, Utah 84116 mark.alder@pacificorp.com Joe Dallas 825 NE Multnomah St., Suite 2000 Portland, OR 97232 joseph.dallas@pacificorp.com Data Request Response Center 825 NE Multnomah St., Suite 2000 Portland, OR 97232 datarequest@pacificorp.com NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35740 4 YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by May 17, 2023. 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. Persons interested in submitting written comments must do so by May 10, 2023. The Company must file any reply comments by May 17, 2023. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, 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 13th day of April 2023. ERIC ANDERSON, PRESIDENT JOHN R. HAMMOND JR., COMMISSIONER EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\PAC-E-23-09 ECAM\orders\PACE2309_ntc app mod_dh.docx