20121128Application for Funding.pdf

Williams • Bradbury
ATTORNEYS AT LAW
WNW 27 AM 908
i;W.W' November 27, 2012 mLmE COMMlSSIO
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
Re: PAC-E-12-12
Dear Ms. Jewell:
Please find enclosed an original and seven copies of Application for Intervenor
Funding of PacifiCorp Idaho Industrial Customers for filing in the above referenced case.
Thank you for your assistance in this matter. Please feel free to give me a call should
you have any questions.
Sincerely,
Ronald L. Williams
RLW/jr
Enclosures
1015 W. Hays Street -Boise, ID 83702
Phone: [phone] - Fax: [phone] - www.williamsbradbury.com
Ronald L. Williams, ISB No. 3034
Williams Bradbury, P.C.
1015 W. Hays St.
Boise ID, 83702
Telephone: [phone]
Fax: [phone]
ISB # 3034
[e-mail]
812N0V27 AM 9:08
IT TCQ Li l.t i LJ Ic 0M 10
Attorneys for PIIC
BEFORE THE IDAHO PUBLIC UTILITES COMMISSION
IN THE MATTER OF THE APPLICATION ) Case No. PAC-E-12-12
OF ROCKY MOUNTAIN POWER FOR )
AUTHORITY TO CANCEL SCHEDULE ) APPLICATION FOR INTERVENOR
NO. 17 AND IMPLEMENT A NEW ) FUNDING OF PACIFICORP IDAHO
PARTIAL REQUIREMENTS TARIFF ) INDUSTRIAL CUSTOMERS
)
COMES NOW the PacifiCorp Idaho Industrial Customers (PIIC) and, pursuant to Idaho
Code § 61-617A and Rules 161-165 of the Commission's Rules of Procedure, IDAPA 31.01.01,
petitions this Commission for an award of intervenor funding in the above captioned proceeding.
Rocky Mountain Power (RMP) is a regulated electric public utility with gross Idaho
intrastate annual revenues exceeding three million five hundred thousand dollars
($3,500,000.00).
Itemized List of Expenses. Consistent with Rule 162.01 of the Commission's
Rules of Procedure, an itemized list of all expenses incurred by PIIC in this proceeding is
attached hereto as Exhibit A.
2. Statement of Proposed Findings. The proposed findings and recommendation
of PIIC are as follows:
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 1
a. That RMP be required to revise proposed Tariff 31 by:
(i)Eliminating the Excess Power Service from the proposed tariff, including
all rates, terms and conditions,
(ii)Revising the Back-up Facilities rates in the proposed tariff to be the values
shown on Table 4 contained in the report produced by PIIC's consultants, Regulatory &
Cogeneration Services, Inc. (RCS) (Summer: $5.16; Winter: $3.90),
(iii)Revising the daily Back-up rates in the proposed tariff to the values shown
on Table 7 of the RCS report (Summer: $0.17; Winter: $0.13),
(iv)Revising the applicability of the Back-up Power rates to only on-peak
periods of Monday through Friday, 7 AM to 11 PM, and
(v)Revising the Scheduled Maintenance Power rate to be set a $0.00.
b. That with the five revisions above implemented, Schedule 31 be allowed to go
into effect, on an interim basis, but that this docket remain open.
C. That RMP be ordered to submit studies that determine the costs it incurs in
providing Partial Requirements, Back-up and Scheduled Maintenance services to partial
requirements customers in Idaho.
d. That the Commission issues an additional scheduling order providing:
(i)The date on which RMP would submit additional cost based studies for
Partial Requirements service,
(ii)Adequate time for additional discovery by interested parties, including
PIIC, and
(iii)A second date on which parties can submit written comments on RMP's
second proposed Schedule 31, based on the cost studies to be provided.
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 2
3.Statement of Showing Costs. The costs shown on Exhibit A are reasonable in
amount. The costs incurred by PIIC primarily relate to the cost of PI1C's retained consultant,
RCS. PIIC conducted two rounds of discovery in the proceeding to acquire the information
necessary for RCS to prepare its report. The data files produced by RMP pursuant to the requests
were voluminous, adding to the time spent by RCS in crafting its recommendations and
preparing its report.
4.Explanation of Cost Statement. PIIC is an unincorporated non-profit
association organized pursuant to Chapter 7, Title 53, Idaho Code. Membership in PIIC is
available to RMP customers in Idaho on RIvIP rate schedules 6, 6A, 9, 23, 23A and Special
Contract 2 (regarding Nu-West Industries), or successor or affiliated rate schedules. PIIC sets
budgets and collects dues from its members, for regulatory proceedings and purposes, but PIIC
did not budget for and anticipate this special regulatory proceeding regarding RMP proposed
Tariff No. 31.
In addition, the PIIC member most impacted by proposed Tariff No. 31 is BYU-Idaho,
which is a rate schedule 9 customer of RMP and currently in the process of installing self-
generation. BYU-Idaho will be paying a material portion of PI1C's costs of participating in this
proceeding, but such costs were not part of BYU-Idaho's budget for installing self-generation.
5.Statement of Difference. There are material and substantial differences in the
positions of PIIC and the Commission Staff. First and foremost, PIIC recommends that RMP be
required to provide actual cost of service studies regarding the different types of partial
requirements service being proposed; instead of "bootstrapping" off Schedule 9 rates. Staff does
not. With respect to this recommendation, PIIC also suggests that, with the rate adjustments
listed above, that Schedule 31 should only go into effect on an interim basis, until such studies
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 3
are performed and additional adjustments can be considered. Staff recommends full
implementation.
Staff believes the Excess Power Rate proposed by RIVIP is reasonable, while PIIC asserts
that RMP's Excess Power Rates are punitive and inconsistent with PURPA. As described in the
RCS report, PIIC also finds that RMP's proposed Back-Up Facilities rate is 14% too high, while
Staff finds it reasonable. Staff recommends the proposed Scheduled Maintenance Rate be
reduced by 50%, while PIIC proposes that it be completely eliminated. PIIC also asserts that
RMP's proposed charges for Back-up and Maintenances services are inconsistent with PURPA.
6. Statement of Recommendation. PI1C's recommendations in this case address
areas of concern to the general body of RMP customers in Idaho. As BYU-Idaho, and other
potential PIIC members consider different forms of self-generation, it is important that this
Commission correctly establish the price for partial requirements services, based on RMP's
actual cost to provide these services. The RMP current proposal violates PURPA's requirement
that such tariffs "not discriminate" against self-generating QFs, "compar[ed] to the rates for sale
to other customers served by the electric utility." 1
Partial requirements services that are priced above RMP's actual cost of providing the
service will act as a deterrent to PIIC members developing their own self-generation, where it
would otherwise be economical to do so. All other things being equal, generation that could have
been developed in Idaho, by PIIC members, but that is forgone because of an improperly priced
partial requirements tariff, likely means that RIVIP will instead develop the equivalent amount of
generation outside the state of Idaho. It would be important and meaningful for the state of
Idaho, if RMP were to locate a portion of its future planned thermal generating fleet in Idaho.
That is not likely to happen. Alternatively, RMP should not discourage its larger energy
18 C.F.R. 292.305(a)(1).
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 4
customers in Idaho from doing the same, through the filing of a partial requirements tariff that
contain prices above the actual cost of providing the partial requirements service.
7. Statement Showing Class of Customer. PIIC's members are customers of RMP
that are provided electric service pursuant to RMP rate schedules 6, 6A, 9, 23, 23A and Special
Contract 2
RESPECTFULLY SUBMITTED, this 27 day of November, 2012.
Ronald L. Williams
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 2s ? day of November, 2012, I caused to be served a
true and correct copy of the foregoing document upon the following individuals in the manner
indicated below:
Ted Weston
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, UT 84111
E-Mail: [e-mail]
E Hand Delivery
El US Mail (postage prepaid)
0 Facsimile Transmission
El Federal Express
Electronic Transmission
Daniel E. Solander El Hand Delivery
Rocky Mountain Power 0 US Mail (postage prepaid)
201 South Main Street, Suite 2300 0 Facsimile Transmission Salt Lake City, UT 84111 0 Federal Express E-Mail: daniel.solanderpacificorp.com Electronic Transmission
Data Request Response Center
PacifiCorp
E-Mail: datarequestpacificorp.com
Randall C. Budge
Racine, Olson, Nye, Budge & Bailey, Chtd.
P.O. Box 1391; 201 E. Center
Pocatello, ID 83204-1391
E-Mail: [e-mail]
Attorneys for Monsanto
Electronic Transmission
El Hand Delivery
0 US Mail (postage prepaid)
0 Facsimile Transmission
El Federal Express
Electronic Transmission
Brubaker & Associates El Hand Delivery
16690 Swingley Ridge Rd., #140 0 US Mail (postage prepaid)
Chesterfield, MO 63017 0 Facsimile Transmission E-mail: [e-mail] 0 Federal Express Monsanto Consultant Electronic Transmission
James R. Smith
Monsanto Company
P.O. Box 816
Soda Springs, ID 83276
E-Mail: jim.r.smith@,monsanto.com
0 Hand Delivery
O US Mail (postage prepaid)
El Facsimile Transmission
El Federal Express
IZI Electronic Transmission
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 6
Tim Buller
PacifiCorp Idaho Industrial Customers
Agrium Us Inc./Nu-West Industries
3010 Conda Road
Soda Springs, ID 83276-5301
E-Mail: TBulleragrium.com
D Hand Delivery
E US Mail (postage prepaid)
1J Facsimile Transmission
0 Federal Express
Electronic Transmission
Don Schoenbeck
RCS, Inc.
900 Washington Street, Ste. 780
Vancouver, WA 98660
E-Mail: [e-mail]
PIIC Consultant
0 Hand Delivery • US Mail (postage prepaid) • Facsimile Transmission
0 Federal Express
Electronic Transmission
£42
Ronald L. Williams
Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers, Page 7
EXHIBIT A
(List of Expenses)
PIIC ITEMIZED EXPENSES FOR CASE NO. RMP-E-12-12
RCS consulting fees
Donald W. Schoenbeck. 32 hrs @ $205! hr $ 6,560.00
RCS consulting fees
Robynn L. Woodbury 22.5 hrs @ $150/hr $3,375.00
Legal Fees, Williams Bradbury P.C.
Ronald L. Williams. 10.2 hrs @ $240/hr $2.424.00
TOTAL S 12359.00
Exhibit A to Application for Intervenor Funding of PacifiCorp Idaho Industrial Customers