20230621Application.pdf

1407 W. North Temple
Salt Lake City, UT 84116
June 21, 2023
VIA ELECTRONIC FILING
Jan Noriyuki Commission Secretary Idaho Public Utilities Commission
11331 W. Chinden Blvd.
Building 8, Suite 201-A Boise, ID 83714
RE: CASE NO. PAC-E-23-16
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR A DEFERRED ACCOUNTING ORDER REGARDING WILDFIRE CLAIMS
Please find attached Rocky Mountain Power’s electronic filing of this Application in the above referenced
matter.
Informal questions related to this matter may be directed to Mark Alder at [phone].
Sincerely,
Joelle Steward
Senior Vice President of Regulation and Customer/Community Solutions
Enclosures CC: Terri Carlock
RECEIVED
Wednesday, June 21, 2023 3:46:26 PM
IDAHO PUBLIC
UTILITIES COMMISSION
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Joseph Dallas (ISB#10330)
825 NE Multnomah St., Suite 2000
Portland, OR 97232
Telephone: [phone]
Email: [e-mail]

Attorney for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC SERVICE COMMISSION

IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR A DEFERRED ACCOUNTING ORDER REGARDING WILDFIRE CLAIMS
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CASE NO. PAC-E-23-16 APPLICATION FOR ACCOUNTING ORDER
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Pursuant to I.C. § 61-524 and IDAPA 31.01.01.052, Rocky Mountain Power, a division
of PacifiCorp, (“Rocky Mountain Power” or the “Company”), applies to the Idaho Public
Utilities Commission (“Commission”) for an accounting order authorizing the Company to
record a regulatory asset associated with the incremental costs associated with third-party
liability due to wildfires in Oregon (Deferred Amount). Rocky Mountain Power additionally
requests that the Commission delay consideration of the approval of this deferral until the costs
and the impact on the financial stability of the Company are more fully known.
In support of this Application, Rocky Mountain Power states as follows:
1. Rocky Mountain Power is a public utility in the state of Idaho and is subject to the
jurisdiction of the Commission with regard to its rates and service. Rocky Mountain Power also
provides retail electric service in the states of Utah and Wyoming.
2. Communications regarding this Application should be addressed to:
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By e-mail (preferred): [e-mail] [e-mail]
[e-mail]
[e-mail] By mail: Data Request Response Center Rocky Mountain Power
825 NE Multnomah St., Suite 2000
Portland, OR 97232 Mark Alder Rocky Mountain Power
1407 W. North Temple, Suite 330
Salt Lake City, UT 84116 Telephone: [phone] 3. At the beginning of September 2020, a historic wind event resulted in a number of
wildfires spread across Oregon causing widespread and extensive damage in and around the
Company’s service territory. Areas affected by the fires include western Oregon counties where
the Company provides service including Josephine, Jackson, Douglas, Lane, Linn, Lincoln,
Klamath, and Marion Counties. As a result of these wildfires, a number of plaintiffs filed suit
against the Company alleging that the Company’s facilities caused the fires, and that the Company
should have shut-off service to customers in an effort to prevent the spread of the wildfires.
4. As discussed above, Rocky Mountain Power requests authorization to defer the
incremental costs associated with the Company’s third-party claims for the wildfires that occurred
in September of 2020. Based on the best available information known in its last rate case, the
Company’s rates were approved to reflect a reasonable level of self-insurance and commercial
insurance related to third-party claims, which is a normal part of providing electric service to
customers. The costs identified in this application would account for and track the third-party
claims that may exceed the Company’s insurance coverage currently in rates associated with the
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outcomes of this litigation due to wildfires that occurred in September 2020. As such, all costs are
related to claims against the Company resulting from providing service to its customers.
5. At this point, much of the litigation and the assessment of liabilities remains
unresolved. The Company is filing this application to enable it to transparently account for and
track the costs associated with the outcomes of this litigation. The Company is not seeking
recovery of these costs from customers at this time and does not expect to determine if it will seek
recovery until the appeals process has concluded. The deferred accounting application enables the
Company to preserve its ability to seek recovery in the future in the event the outcome could
potentially impact the financial stability of the Company, which would result in higher costs to
customers.
6. In James v. PacifiCorp, a jury has returned a verdict finding that the Company is
liable to the named plaintiffs for over $70 million in economic and non-economic damages and
over $18 million in punitive damages.1 Since this has been initially certified as a class-action
lawsuit, additional claims are likely, and there is additional pending litigation for wildfires that
occurred in this time period. The Company maintains that its actions were appropriate, consistent
with prudent utility practice, and as such, plans to appeal the verdict. While the Company files this
deferral, there is still significant uncertainty about the legal outcome of these cases. As a result,
PacifiCorp requests that the Commission delay consideration of the approval of this deferral
application until the costs and the impact on the financial stability of the Company are more fully
known.
7. This deferral results from the Company incurring major expense as a result of a
state or federal declaration of emergency, and it is necessary to respond to a material threat to the

1 Final Verdict, James v. PacifiCorp, No. 20-CV-33885 (Cir. Ct. Multnomah County, Jun. 12, 2023).
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financial stability of the Company resulting from unique and unforeseen circumstances outside the
Company’s reasonable control. The potential magnitude of the claims may exceed normal costs
anticipated by PacifiCorp and included in its retail rates, and could also far exceed the reasonable
business risk associated with these claims.
8. If this application is approved, the Company will record deferred amounts by
debiting Federal Energy Regulatory Commission (FERC) Account 182.3-Other Regulatory Assets
and crediting FERC Account 925-Injuries and damages. If this application is denied, the costs will
remain in FERC Account 925.
9. At this time, due to the nature of the litigation it is difficult to precisely estimate the
amounts that will be recorded in this deferred account. However, in a single proceeding in Oregon,
a jury has issued a verdict for more than $90 million for the named plaintiffs in the case. Additional
process regarding the class action aspect of the lawsuit and the Company’s appeals of the
proceeding, along with additional ongoing proceedings are expected to result in a materially
different amount.
10. The Company acknowledges that the Commission’s approval of deferred
accounting treatment for these wildfire third-party claims will not, in itself, constitute approval of
ultimate recovery of those costs. Recovery of the costs would be subject to a prudence review and
a final decision on rate recovery in a future regulatory filing.
11. Rocky Mountain Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing, in accordance with Idaho Public
Utilities Commission Rules of Procedure 201 - 204.
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WHEREFORE, Rocky Mountain Power respectfully requests an accounting order
authorizing it to record a regulatory asset to FERC Account 182.3 (Other Regulatory Assets). As
noted above, the Company requests that the Commission delay consideration of the approval of
this deferral until there is a more definite on the impact of these deferrals on the Company.
Recovery of the deferred wildfire-related costs will only be authorized through a subsequent
regulatory filing.

DATED: June 21, 2023
Respectfully submitted,
______________________
Joseph Dallas (ISB#10330) 825 NE Multnomah St., Suite 2000 Portland, OR 97232 Telephone: [phone] Email: [e-mail]
Attorney for Rocky Mountain Power