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HomeMy WebLinkAbout20090324Application for Intervenor Funding.pdfL.AW OFFICES OF W. MARCUS W. NYE RANDAL.L. C. BUDGE JOHN A. BAIL.EY, JR. JOHN R. GOODELL. JOHN B. INGELSTROM DANIEL C. GREEN BRENT O. ROCHE KIRK B. HADL.EY FRED.). L.EWIS ERIC I.. OLSEN CONRAD J. AIKEN RICHARD A. HEARN, M.D. LANE V. ERICKSON DAVID E. ALEXANDER PATRICK N. GEORGE SCOTT J. SMITH JOSHUA D. JOHNSON STEPHEN J. MUHONEN BRENT L. WHITING JONATHON S. BYINGTON DAVE BAGL.EY CAROL. TIPPI YOLYN THOMAS J. BUDGE CANDICE M. MCHUGH JONATHAN M. VOL.YN MARK A. SHAFFER RACINE OLSON NYE BUDGE Be BAILEYCHARTERED CEi 201 EAST CENTER STREET POST OFFICE BOX 1391 ?tlOflI.AR 2'- POCATELLO, IDAHO 83204- 1 HI ;¡ n H .. BOISE OFFICE 101 SOUTH CAPITOL BOULEVARD. SUITE 208 ØOISE, IDAHO 8370%TELEPHONE: (208) 395-.0. 1 I FACSIMILE: (208) 433~O 167PM I: l ww.racìnelaw.net IDAHO FAL.L.S OFFICE 477 SHOUP AVENUESurTE203A IDAHO FALLS, ID 83.402- TELEPHONE: (208) 528-6101F.ACSlMlLE: (20B) 528-6109 COEUR D'ALENE OFFICE 250 NORTHWEST BOULEVA.RD. SUITE t06A cOEUR D"ALENE. ID 83814 iELEPHONE: (208) 7e5~6a88 SENDER'S E-MAIL.ADDRESS:elo§racinelaw.net ALL OFI'ICIt TOLL FREE (877) 23:2~6101 LOUIS F. RACINE 1\9'7~205)WiLLIAM D. OL.SO. OF COUNSEL March 24~ 2009 Jean Jewell IPUC Commission Secretary P.O. Box 83720 Boise, Idaho 83720-0074 Ile: P jl~-E-08.07 Dear Ms. Jewell: Enclosed for fiing you wil find the original and seven (7) copies of the Application for Intervenor Funding of The Idaho Irrigation Pumpers Association, Inc. Sincerely,~t: ELO/nj Enclosures c: Service List .. , ..~-"." ¿:~--t!-cea Eric L. Olsen, ISB No. 4811 RACINE~ OLSON~ NYE, BUDGE & BAILEY, CHARTERED P.O. Box 1391; 201 E. Center Pocatello, Idaho 83204-1391 Telephone: (208) 232-6101 Fax: (208) 232-6109 i:: J f;......1) 24 PM I: i l Attorneys for Intervenor Idaho Irrigation Pumpers Association, Inc. BEFORE THE IDAHO PUBLIC UTLITS COMMSSION IN THE MATTER OF THE APPLICATION OF ) ROCKY MOUNTAIN POWER FOR APPROVAL) OF CHANGES TO ITS ELECTRIC SERVICE )SCHEDULES ) ) CASE NO. PAC-E-08-07 jlPLICATION FOR INRVENOR FUING OF TH IDAHO IRGATION PUMEIlS jlSSOCIATION, INC. COMES NOW the Idaho Irrgation Pumpers Association, Inc. Cllrrigatorslt), by and through counsel of record, Eric L. Olsen, and hereby respectfully makes application to the Idaho Public Utilties Commission ("Commission") for intervenor fuding, pursuant to Idaho Code § 61 -617 A and IDAPA 31.01.01.161 through .165, regarding the expenses and costs associated with the Irrigators paricipation in the above referenced matter, as follows: (A) A summary of the expenses that the Irrigators request to recover broken down into legal fees~ consultant fees and other costs and expenses is set forth in Exhibit "A" attached hereto and incorporated by reference, Itemized statements are also included as Attchments 1 and 2 to Exhibit "A" in support of said summar and are incorporated by reference. (B) Rocky Mountan Power CIRM" or "Company"), a division ofPacifiCorp, provides power to thousands of individuals and entities throughout Idao and is curently in the early stages APPLICATION FOR INERVEOR FUNING OF IDAHO IRGA TlON PUMPERS ASSOCIATION, INC. ~ 1 of a large expansion program. This building program is planned to significantly increase the amount of Generation, Transmission, and Distribution plants the Company has in service. The construction of these new facilties is necessitated by the customer growth on the system and the growth in usage (on-peak and off-peak) per customer. On September 19, 2008, RMP fied an application e'Application") seeking authority to increase the Company's base rates for electric service by $5.9 millon annually (an increase of approximately 4.0%), to be effective on October 19,2008, The increase in rates varied by individual customer and actual usage. The Application~ however~ did not include changes to Monsanto Company ("Monsanto") and Agrium, as the rates for those two customers are subject to a stipulation that was filed and approved by the Commission in Docket No. PAC-07-05. No changes to those rates were proposed in the current Docket. With a view toward resolving the issues raised in RMP's Application in this proceeding~ representatives from RMP, Staf from the Idaho Public Utilties Commission ("Staff'), the Community Action Parnership Association of Idaho ("CAP AI")~ the Inigators, and Monsanto (collectively hereafter referred to as the "Parties" or "Pary") met on January 15,2009, pursuant to IDAPA 31.01.01.271 and 272~ to engage in settlement discussions. A settlement was reached and a stipulation ("Stipulation") was entered into by and among the Parties. As a result of the settlement the RMP's proposed increase in the base rate went from $5,871,441 to $4,382~632, a savings a nearly $1.5 millon dollars. This amount was ratably applied to RMP's original proposed price change by customer class, as follows: APPLICATION FOR INERVENOR FUING OF IDAHO IRGATION PUMERS ASSOCIATION, INC. - i Customer Class Proposed Settled Residential - Schedule 1 4.73%3.53% Residential - Schedule 36 4,73%3.53% General Service Schedule 23/23A 0%0% Schedule 6/6A/8/35 7.96%5.94% Schedule 9 7,96%5.94% Schedule 19 2.31%1.73% Irrigation Schedule 10 2.31%.1.73% Public Street Lighting Schedules 717A, II, 12 0%0% The Parties also agreed (1) that the Stipulation constituted a "black box" settlement, meaning that the Parties agreed with the result ofthe increase in the base rate but not the specific methodology behind it; (2) to establish the tota Company base net power cost at $982 milion dollars; (3) that RMP's acquisition of the Chehalis generating plant in Chehalis, Washington was a prudent investment; (4) that the demand-side management programs proposed by RMP in Docket No. PAC- E-08-0 1 were prudent; (5) that issued related to the Energy Trust of Oregon Funding ofthe Goodnoe Hils wind generation plant wil be deferred to RM's next general rate case; (6) that RM will include an inverted tier rate design proposal or option for residential customers in its next general rate case; (7) to the settled price increase of $4~382~632; and (8) that the design of rates by rate schedule shall be consistent with RMP~s fied proposaL. Each Party agreed that the Stipulation represented a fair~just and reasonable compromise and was in the public's best interest. Pursuantto IDAPA 31.01.01.274, the Paries signed and submitted it to the Commission for approval on Januar 30,2009. The Irrgators fied comments in support of the Stipulation on February 5, 2009. Although this case was ultimately settled, the Irrigators had to prepare as though it was a regular rate case. The Irrigators' President, Mark Mickelsen; Executive Director~ Lyn Tominaga; APPLICATION FOR INERVENOR FUING OF IDAHO IRGATION PUMERS ASSOCIATION, INC. - 3 legal counsel, Eric L. Olsen; and consultant, Anthony J. Yanel, P .E., have all paricipated directly or indirectly in various meetings, conference calls, and drafting supporting documentation that have resulted in these important changes. Overall, the Irrigators believe that this new dispatchable program is a cost effective demand response program that should be adopted by the Commission. (C) The expenses and costs incurred by the Irrigators set forth in Exhibit A and accompanying attachments are reasonable in amount and were necessarly incurred. The expenses and costs were incurred in con-esponding and collaborating with all the Partes named above, and in gathering information, drafting and reviewing documentation~ and negotiating the changes. (D) The costs described in Paragraph (A) above constitute a financial hardship for the Irrigators. The Irrigators currently have approximately $47,000.00 in the bank with outstanding accounts payable from participation in prior cases and this case totaling approximately $53,000.00, The Irrgators are an Idaho nonprofit corporation that was organized in 1968 to represent agricultural interests in electric utilty rate matters affecting farers in southern and centrl Idaho. The Irrigators rely solely upon dues and contributions voluntarly paid by members, together with intervenor funding, to support activities. Each year mailngs are sent to approximately 7 ~500 Idaho Irrigators (approximately two-thirds in the Idaho Power Company service area and one-third in the RMP service area), soliciting anual dues. The Irrgators recommend members make volunta contributions based on acres irrigated or horsepower per pump. Member contributions have been fallng presumably due to the current depressed economy, increased operating costs and threats relating to water right protection issues. From member contributions the Irrigators must pay all expenses, which generally include mailng expenses, meeting expenses and shared offce space in Boise, Idaho~ in addition to the APPLICATION FOR INTERVENOR FUING OF IDAHO IRGATION PUMPERS ASSOCIATION, INC. - 4 expenses relating to participation in rate cases. The Executive Director, Lynn Tominaga, is the only pait-time paid employee, receiving a retainer plus expenses for offce space~ offce equipment, an¿ secretaral services. Offcers and directors are elected annually and serve without compensation. It has been and continues to be a financial hardship for the Irrigators to fully participate in this review and settlement. As a result of financial constraints, paricipation in this review and settlement has been selective and, primari1y~ on a limited basis, (E) Although there was a stipulation in this case, the Irrigator provided a unique perspective on a number of issues that not only impacted the Irrigators, but the jurisdiction as a whole. Because there was a stipulation, it is not appropriate to go into any of the specifics of the case that the IITigators were developing. However, some general points can be made in order to justifY intervenor fuding without going into details of the Irrigators unique perspective. Specifically, the Irrigators have worked closely with the Company and the Staff in order to develop the greatly expanded Irigation Load Management program that we have today with over 200 MW of interruption capabilty. The Irrigators were using this unique insight in order to insure that overall costs and jurisdictional allocations of those costs were being conducted in a maner that would lower Idaho's overall revenue requirement, compared to a case where the program did not exist. Although testimony was not presented, the Irrigators believe that the Stipulation either addressed the issues that they would raise during the course of the case, or that the dollar impact of those issues were suffciently address in a manner that was quatifiable and assured by the Stipulation, while the outcome of a full hearing would be less certain. (F) The implementation of the new parameters that will shave off 200 MW during the summer system peak lowers the costs and jurisdictional allocations of those costs in a maner that APPLICA nON FOR INTERVENOR FUING OF IDAHO IRGATION PUMPERS ASSOCIATION, INC. . 5 wil lower Idaho's overall revenue requirement. In paricular, this cui1ailment program significantly reduces the need for peak resources, resulting in lower generation and transmission costs for the entire system. In addition~ when RMpls load is high and purchased power costs are high~ RMP can avoid some or all of these expensive purchases by curtailing the Idaho liTigation load. Equally important. when market prices are high~ the Company could take advantage of these curtailment opportunities to sell power into the market at a significant profit. Clearly, the Irrigators' participation in this case has addressed issues of concern to the general body of users or consumers on Idaho Power's system. (G) The IlTigators represent the irrigation class of customers under Schedule 24. Based on the foregoing, it is respectfully submitted that the Irrigators are a qualifying intervenor and should be entitled to an award of costs of intervention in the maximum amount allowable pursuant to Idaho Code § 61-617 A and IDAP A 3 i .01.0 i .161 through .165. DATED this the & day of March, 2009. RACINE, OLSON, NYE, BUDGE & BAILEY, CHARTERED ~By v"~~ APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRGATION PUMPERS ASSOCIATION, INC. - 6 CERTIFICATE OF SEIlVICE I HEREBY CERTIFY that on this 24th day of March, 2009, I served a true~ correct and complete copy of the Idaho Irrigation Pumpers Association, Inc.'s Application for Intervenor Funding to each of the following, via U.S. Mail or private courier, e-mail or hand delivery, as indicated below: Jean D. Jewell, Secretar Idaho Public Utilities Commission P.O, Box 83720 472 W. Washington Street Boise~ Idaho 83720-0074 iiewel i(Øpuc.state.id.us U.S. Mail/Postage Prepaid E-mail Facsimile Overnight Mail Hand Deliveredx Ted Weston PacifiCorp/dba Rocky Mountain Power 201 S. Main Street~ Suite 2300 Salt Lake City, Utah 84 111 ted. weston'Iacificorp.com x X U.S. Mail/Postage Prepaid E-mail Facsimile Overnight Mail Hand Delivered Daniel Solander PacifiCorp/dba Rocky Mountain Power 201 S. Main Street, Suite 2300 Salt Lake City, Utah 841 ii Daniel .solander(ßpaci ficorp.com X X U.S. Mail/Postage Prepaid E-mail Facsimile Overnight Mail Hand Delivered Dennis Paseau, Ph.D. Utilty Resources, Inc. 15000 Liberty St. SE~ Suite 250 Salem, OR 97302 dpeseau(ßexcite.com x X U.S. Mail/Postage Prepaid E-mail Facsimile Overnight Mail Hand Delivered Randall C. Budge Racine Olson Nye Budge & Bailey~ Chd 201 E. Center P.O. Box 1391 Pocatello, Idaho 83204-1391 rcb~acinelaw.net U.S. Mail/Postage Prepaid E-mail Facsimile Overnight Mail Hand DeliveredX APPLICATION FOR INERVENOR FUNDING OF IDAHO IRIGATION PUMPERS ASSOCIATION. INC.-7 Katie Iverson X U.S. Mail/Postage Prepaid Brubaker & Associates X E-mail 17244 W. Cordova Court Facsimile Surprise, AZ 85387 Overnight Mail kiverson~consultbai.com Hand Delivered Electronic Copies Only Hand Delivered Janies R. Smith U.S. Mail/Postage Prepaid Monsanto Company X E-mail P.O. Box 816 Facsimile Soda Springs, Idaho 83276 Overnight Mail Jim .r.smith(lYmonsanto.com Hand Delivered Brad M. Purdy Hand Delivered 2019 N. i 7th Street X U.S. Mail/Postage Prepaid Boise, Idaho 83702 X E-mail bmpuldy~hotmail.com Facsimile Overnight Mail Hand Delivered Conley E. Ward Hand Delivered Michael C. Creamer X U.S. Mail/Postage Prepaid Givens Pursley LLP X E-mail 60 i W. Bannock St.Facsimile P.O. Box 2720 Overnight Mail Boise, Idaho 83701-2720 Hand Delivered cew(ggivenspursley.com '"E~A- EXlIT A SUMY OF EXPENSES INCURD BY IRGATORS IN CASE NO. PAC-E-08-7 1.Legal Fees: Eric 1. Olsen (Partner): 23.70 hrs ~ $185.00 per hour $ 4~384.50 Jason E. Flaig (Associate/Legal Intern): 4.1 hrs ~ $125.00 per hour $ 512.50 Pam Mottishaw (paralegal): 0.9 hrs ~ $75.00 per hour $ 67.50 Costs: Postage and travel $ 539.06 Total Legal Fees:$ 5,503.56 2.Consultant Fees: Anthony J. Yanel: 100 hrs ~ $ 1 25 per hour $12,500.00 Total Consultant Fees:$12.500.00 TOTAL FEES AN EXENSES:$18,003.56 jlttachment 1 DETAIL FEE TRANSACTON LIST 710.1518535 IDAHO IRRIGATION PUMPERS ASSOCIATION, INC. ZOOS ROCKY MOUNTAIN POWER RATE CAE DATE ATT RATE HOURS TOTAL DESCRIPTION 9/3/2008 ELO 185 0.20 37.00 REVIEW PACIFICORP PRESS RELEASE 9/17/2008 ELO 185 0.10 18.50 TELEPHONE CONFERENCE WITH MARK MICKELSEN RE: CONFERENCE CALL WITH PACIFICORP 9/18/2008 ELO 185 0.70 129.50 PREPARE FOR AND PARTICIPATE IN CONFERNECE CAL 9/24/2008 ELO 185 0.40 74.00 REVISE PETITION TO INTERVENE 9/26/2008 ELO 185 2,20 407.00 REVIEW COMPANY TESTIMONY OF RATE CASE 10/l/2008 ELO 185 0.10 18.50 CONFERENCE WITH RCB RE: RMP CUSTOMER MEETING 11/25/2008 PM 7S 0.90 67.50 REVISE AND SEND OUT DISCOVERY RESPONSES 12/2/2008 flO 185 0.30 55.50 TELEPHONE CONFERENCE WITH MARK MICKELSEN RE: STATUS OF CASES AND SETTNG BOARD MEETING 12/11/2008 flO 185 0.60 111.00 ATIEND IIPA BOARD MEETING 12/15/2008 flO 185 0.50 92.50 REVIEW ADDITIONAL DATA REQUESTS AND SEE THAT SAME ARE SERVED ON RMP AND PARTIES 1/14/2009 ELO 185 0.50 92.50 TELEPHONE CONFERENCE WITH TONY YANKEL RE: UPCOMING SETILEMENT NEGOTIATIONS 1/15/2009 flO 185 3.00 555.00 TRAVEL TO BOISE FROM POCATELLO 1/15/2009 ELO 185 4.80 888.00 ATIEND RMP SETILEMENT NEGOTIATIONS 1/28/2009 ELO 18S 1.0 203.50 REVIEW PROPOSED STIPULATION AND FORWARD TO YANKEL FOR REVIEW; TELEPHONE CONFERENCE WITH MARK MICKELSON RE: SAME 1/29/2009 ELO 185 0.50 92.50 TELEPHONE CONFERENCE WITH TONY YANKEL Re: REVIEW OF STIPULATION; REVIEW CHANGES TO STIPULATION; FINALIZE REVIEW OF STIPULATION A EMAIL PARTIES RE: SAME 1/30/2009 ELO 185 0.40 74.00 REVIEW AND SIGN FINAL STIPULATION AND SEE THA SIGNATURE PAGE IS FAXED AND MAILED 2/18/2009 flO 185 0.50 92.50 REVIEW EMAil OF SENATOR RAYB03I1lD; EMAIL TONY YANKEL RE: RMP RATE CASE AND CONCERNS OVER INTEROPERABILlTV PROGRAM 2/19/2009 flO 185 0.30 55.50 TELEPHONE CONFERENCE WITH TONY YANKfl RE: PREPARING COMMENTS FOR RMP RATE CAE 2/24/2009 ElO 185 0.60 111.00 REVIEW AND COMMENT ON IIPA NEWS LmER 2/25/2009 ElO 185 2.90 536.50 DRAFT COMMENTS IN SUPPORT OF STIPULATION AND SEE THAT SAME ARE FILED 3/11/2009 flO 185 4.00 740.00 TRAVEL TO BOISE FROM POCATELLO (1.0NE WAY); ATIENDED HEARING ON PRESENTATION OF STIPULATION 3/19/2009 JEF 125 4.10 512.50 DRAFTED APPLICATION FOR INTERVIENOR FUNDING; CONF. W/ fLO RE: THE SAME 28.70 4964.50 TOTAL FEES 1/16/2009 ELO 24,26 POSTAGE 1/05/2009. ANTHONY YANKEL 2/27/2009 ELO 257.40 RT MILEAGE POCATELLO. BOISE -1/15/2009 3/11/2009 ELO 257.40 RT MILEAGE POCATELLO. BOISE - 3/11/2009 539.06 TOTAL COSTS 5,503.56 TOTAL FEES AND COST jlttchment 2 i::: Date 0 Description--Case PAC-E-08-07:: Nov 17 6 Read testimony of Company witnesses Walje, Hadaway, Wiliams, and Dickman in case PAC-E-08-07; Review detailed cost data in Dickman's Exhibit 12. 18 6 Read testimony of Company witnesses Duvall, Lasich, Bird, Tucker, and Bumgarner in case PAC-E-08-07; Review detailed cost of service data in Tucker's Dec i 1 5 Review fiing of the Company; review past discovery requests to and responses from the Company in order to determine what else to add to the discovery in this 12 5 Review past discovery requests to and responses from the Company in order to determine what else to add to the discovery in this case; review data supporting the distribution peaks in this case and the last case and review the differences in allocations that occurred between rate schedules between the two cases. 15 3 Review previous interrogatories sent to PacifiCorp; develop additional 19 8 Review filing of P acifi Corp and its witnesses; assess the impact of the load management program on the cost of service study; review the treatment ofDSM revenues in the interjurisdictional allocation procedures. 22 4 Review fiing ofPacifiCorp and its witnesses; assess the impact of the load management program on the cost of service study; review the treatment of DSM revenues in the inte~urisdictional allocation procedures. 26 6 Review what information is at hand regarding case; alert Olsen that I have not gotten the Irrigation discovery that is overdue~ or the responses to the Staffs first set of data requests which is also overdue; review various ways to address the impact of Irrigation load management in the Company's inte~urisdictional cost of 29 3 Review filing; review jurisdictional aHocations with emphasis upon the irrigation curtailments; trace values and calculations through the Company's jurisdictional cost of service workpapers. Jan 7 7 Review data responses by the Company; look into proper loss factor adjustment for irrigation curtailment credits; work with JAM model to try to make a new run that incorporates better loss factors; discussion with Hessing and Eric Olsen. 8 7 Review data responses by the Company; work with JAM model to try to make a new run that incorporates better loss factors; discussion with Weston of the Company in order to learn how to run modeL. 9 8 Review data responses by the Company; work with JAM model to try to make a new run that incorporates the irrigation interrptibilty as a system resource; review system and Idaho specific loss study for possible use in this case; Date 12 13 14 15 29 Total 100 ~o::Description--Case P AC-E-08-07 Review material regarding use of border load data to define Idaho's share of use on PacifiCorp; review similar data that is used to define distribution peak data; investigate the cause of the July distribution peak in Idaho occuring at midnight; review related data responses. 8 8 Review material regarding use of border load data to define Idaho's share of use on PacifiCorp; calculate differences between border load data and the summation of the load research data; review the additional data responses that came in. 7 Review material regarding use of border load data to define Idahols share of use on PacifiCorp; verify data from different sources and discovery responses; write memo regarding same. 8 Prepare for and attend settlement discussions with the Company and Staff; multiple conversations with Olsen. 1 Review draf stipulation; review and confirm figures and percentages in spreadsheet regarding rate spread.