20110914Objection to Proposed Agency Record, Request for Hearing.pdf

DONALD L. HOWELL, II
D. NEIL PRICE
DEPUTY ATTORNEYS GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
POBOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NOS. 3366 and 6864
Attorneys for the Respondent
Idaho Public Utilities Commission
RECEIVED
2011 SEP 14 PH 4: 18
5UP- F-I/-Ú /
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
PACIFICORP DBA ROCKY MOUNTAIN
POWER,
Petitioner-Appellant,
vs.
IDAHO PUBLIC UTILITIES COMMISSION,
Respondent,
and
MONSANTO COMPANY,
Intervenor- Respondent.
)
) SUPREME COURT
) DOCKET NO. 38930-2011
)
)
) OBJECTION TO PROPOSED
) AGENCY'S RECORD ON
) APPEAL AND REQUEST FOR
) ADDITION
)
) NOTICEAND
) REQUEST FOR HEÀRING
)
)
)
)
The Commission Staff, by and through its attorneys of record, Donald L. Howell, II
and D. Neil Price, Deputy Attorneys General, pursuant to Idaho Appellate Rules 29(a) and B(e),
respectfully objects to the proposed agency's record on appeal served on the paries on August
17, 201 1. Staff also requests that an Order cited by the Commission in its reconsideration Order
be placed in the record.
BACKGROUND
On May 27, 2011, PacifiCorp dba Rocky Mountain Power fied its timely Notice of
Appeal in the recently completed general rate case, PAC-E- 1 0-07. In its Notice of Appeal, the
OBJECTION TO PROPOSED
AGENCY'S RECORD ON APPEAL
NOTICE AND REQUEST FOR HEARING
Company identified that the single issue on appeal was the Commission's determination to
assign 27% of the cost of the Populus-to- Terminal transmission line to "plant held for future use
(PHFU)." Notice of Appeal at ir 3. On June 7, 2011, the Company fied an Amended Notice of
Appeal reducing the transcript request for all 44 witnesses at the technical hearing to 14
witnesses. Amended Notice of Appeal at ir 4. On June 15,2011, the Company fied its Second
Amended Notice of Appeal further refining its transcript request. l
On June 29, 2011, the Commission Staff fied its request for additional transcript,
exhibits and record. On August 17,2011, the Commission Secreta served the proposed agency
record on appeal upon the paries. Pursuant to Appellate Rule 29, paries to the appeal have 28
days from the date of service of the proposed record (or until September 14, 201 1) to fie
objections including corrections, additions or deletions.
OBJECTION TO THE PROPOSED RECORD
Staff objects to portions of the proposed record on appeal served by the Commission
Secretary on August 17, 2011. More specifically, Staff objects to the inclusion of voluminous
financial exhibits which are irrelevant to the single issue on appeaL. Staff maintains the entirety
of Volume I and Volume II, and parts of Volume III of the exhibits (approximately 360 pages in
Volumes I & II and 131 pages in Volume III) are not relevant to the issue on appeal - the
Commission's decision to assign 27% of the Populus transmission line to PHFU. See attached
letter dated June 16,2011; Order No. 32224 at 8-13 (proposed Record at 255-60).
Exhibit Volumes I and II of the proposed record consists of two exhibits: Exhibit 1
(Revenue Requirement Summar) and Exhibit 2 (Revenue Requirement). Exhibit 1 consists of 3
pages and Exhibit 2 is comprised of 30 subpars in 357 pages. See attached Exhibit List. These
exhibits are voluminous, irrelevant and immaterial to the single issue on appeaL. Rather than
burden the Court with this material, it should be removed from the record.
In Volume III of the exhibits, Staff asserts that Exhibit 78 (Year End Revenue
Requirement Sumar), Exhibit 80 (Year End Updated LGAR Calculation), and all but 4 pages
of the 121 pages of Exhibit 79 (Year End Results of Operation Sumar) are also immaterial
i Monsanto Company's Petition to Intervene was granted on July 20, 2011.
OBJECTION TO PROPOSED
AGENCY'S RECORD ON APPEAL
NOTICE AND REQUEST FOR HEARING 2
and irrelevant to the single issue on appeal? Consequently, Staff recommends that the irrelevant
material contained in Exhibit Volumes I and II be deleted. In addition, Staff recommends that
Exhibits 2B.19 (Deferred Income Tax Balance), 28.20 (Customer Advances), 4 (LGAR
Calculation), 78, 79 (with the exception of the four pages identified in the footnote), and Exhibit
80 be removed from Volume III. This would allow all the pertinent exhibits to be included in a
single volume.
REQUEST FOR ADDITION TO THE RECORD
Staff requests that the Commission add one Order to the record on appeaL. More
specifically, Staff requests that Order No. 29708 (Case No. PAC-E-02-3) be included in the
record. The Commission's Order on Reconsideration No. 32224 at 12 (Proposed Record at 259)
cites to Order No. 29708. Order No. 29708 approved the multi-jurisdictional allocations
curently used by the Commission to allocate facilties, costs, and revenues among PacifiCorp's
Method-Protocol six-state jurisdictions.
NOTICE AND REQUEST FOR HEARING
When an objection is made to the proposed record on appeal, the Commission
determines, after hearing, what is to be included in the agency's record that is sent to the
Supreme Cour. I.A.R. 29( a-b). "In administrative appeals from the Public Utilties
Commission, ... the administrative agency shall have continued jurisdiction of the matter and
the paries. . . including the power to settle the transcript and record on appeaL." I.A.R. B(e).
Once settled by the Commission, the agency's record is then fied with the Supreme Cour.
I.A.R. 29(b).
"Any objection made to . . . the agency's record must be accompanied by a notice
setting the objection for hearng and shall be heard and determined by the. . . administrative
agency from which the appeal is taen." I.A.R. 29(a). Staff respectfully requests that the
Commission find there is good cause to schedule a hearing in this matter on less than 14 days'
notice to commence following the scheduled decision meeting at 1 :30 p.m. on Monday,
September 19, 2011, in the Commission's Hearing Room, 472 West Washington Street,
Boise, Idaho. IDAPA 31.01.01.241. Staff counsel has contacted the paries regarding the
2 Staff does not object to including four pages (11.5,11..1,11.7.1,11.8.1) of Exhibit 79 (Year End Results of
Operation Summar). These four pages all reference the Populus transmission line.
OBJECTION TO PROPOSED
AGENCY'S RECORD ON APPEAL
NOTICE AND REQUEST FOR HEARING 3
proposed hearing scheduled for September 19, 2011, and believes there will be no objection to
scheduling the hearing on less than 14 days' notice.
CONCLUSION
Based upon the reasons set forth above, Staff requests that the Commission delete the
irrelevant exhibits from the record on appeal and add Order No. 29708 to the record. Staff has
advised the paries of the proposal to schedule the hearng for September 19, 201 1.
Respectfully submitted this I'! lf day of September 201 1.
Donald L. H
D. Neil Price
Deputy Attorneys General
Attorneys for Respondent
Idaho Public Utilties Commission
O:Supreme Court_PAC-E- 10-07_38930-2011 Objection_dh
OBJECTION TO PROPOSED
AGENCY'S RECORD ON APPEAL
NOTICE AND REQUEST FOR HEARING 4
ROCKY MOUNTAIN
POWER
Mark C. ,"'Ioench
Senior Vice President and General Couiiel
201 S. Main Street, Suite 1400
Salt Lake City, ur 841/1
801-220-4459 Office
801-220-4058 Fax
mark.moench(lpacifcorp. com
A DIVISION OF PACIFICORP
June 16,2011
Mr. Don Howell
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington
Boise, Idaho 83702
Re: Rocky Mountain Power: Case No. PAC-E-l0-07 - Scope of Appeal
Dear Don:
It is my understanding that you have expressed some concern as to whether the scope of
Rocky Mountain Power's appeal in Case No. PAC-E-10-07 (the "Appeal") is and wil remain
limited to those issues relating to the Populus-to- Terminal transmission line, or if it will expand
to various other matters which arise from the Commission's Order. This letter is provided in
response to those concerns, and is intended to confirm that, as previously indicated in our
conversations, as well as the express terms of our notice of appeal, Rocky Mountain Power will
limit the issues on Appeal, solely to the exclusion of the company's investment in the Populus-
to- Terminal transmission line from the rate base for the purpose of setting electric utility rates for
Rocky Mountain Power's Idaho customers.
If anyone on our legal team has or'does represent to the contrar, please advise. Despite
our differing positions at times, we appreciate the strong working relationship that Rocky
Mountain Power and the Idaho Public Utilities Commission have enjoyed in the past, and look
forward to working with the Commission in the future. Please feel free to contact me if you have
any fuer concerns or questions.
Best Regards,
~
Senior Vice President & General Counsel
Rocky Mountain Power
cc: Paul Hickey
Rich Hall
Daniel Solander
EXHmITS LIST and CERTIFICATION
LIST OF EXHIBITS BY PARTIES Pages
For PacifiCorp dba Rocky Mountai Power:
Exhbit Nos. VDLumt r:
1. Steven R McDougal- Revenue Requiement Suiar
2. Steven R. McDougal- Revenue Requirement
2.1 Sumar
2.2 Results of Operations
2.3 Revenue Adjustments
2.4 O&M Adjustments
2.5 Net Power Cost Adjustments
2.6 Depreciation & Amortization Adjustments
2.7 Tax Adjustments
2.8 Rate Base Adjustments Vdi:~.:
2.9 Rolled-in
2.10 Allocation Factors
2 B.l Revenue
2 B.2 O&M Expense
2 B.3 Depreciation ExpenSe
2 B.4 Amortization Expense
2 B.5 Taxes Other Than Income
2 B.6 Federal Income Taxes
2 B. 7 Deferred Income Tax Expense & Investment Tax Credit Amortization
2 B.8 Plant in Service
2 B.9 Capital Lease Plant
2 B.I0 Plant Held for Future Use
2 B.l 1 Miscellaneous Deferred Debits
2 B.12 Blan
2 B.13 Materials & Supplies
2 B.14 Cash Working Capital
2 B. 1 5 Miscellaneous Rate Base
2 B. 1 6 Weatherization / Regulatory Assets
2 B. 1 7 Depreciation Reserve
2 B.18 Amortization Reserve V()~m ~ iT
2 B. 1 9 Deferred Income Tax Balance ana Investm~ Credit Balance
2 B.20 Customer Advances
4. Steven R. McDougal - LGAR Calculation
33. John R. Cupparo - Gateway Map
34. John R. Cupparo - Populus to Terminal Map (11 X 17 color)
3
6
37
16
56
10
10
17
27
39
19
7
19
10
3
1
7
6
19
1
1
2
o
6
2
3
15
14
4
8
1
1
1
1
35.
36.
John R. Cupparo - DOE Congestion on Western Paths Map
John R. Cupparo - FERC Incentive Rate Order
1
29
EXHBITS
322
37. Darell T. Gerrard - Populus to Termal Cost Sumar
38. Darell T. Gerrard - Summar of Bidder Evaluations
39. Darell T. Gerrard - Project Photos
65. Darell T. Gerrard - Path C Transfer
66. Darell T. Gerrard - Alternative Cost Options
67. Darell T. Gerrard - Foundational Project Map
78. Steven R. McDougal - (Year End) Revenue Requiement Sumar
79. Steven R. McDougal- (Year End) Results of Operation Sumary
80. Steven R. McDougal - (Year End) Updated LGAR Calculation
IPUC Final Order No. 30657 in PAC-E-08-03 grants PacifiCorp the Certificate
of Public Convenience and Necessity requested for Constrction of the
Populus-to- Terminal 345 Kv Transmission Line Project
For IPUC Staff
voLumb:T
Hearg Exhbit - Aricle re Cost of Transmission for Wind Energy133.
For Monsanto Company:
221.
222.
223.
224.
225.
226.
227.
234.
237.
238.
239.
240.
241.
242.
243.
244.
245.
246.
247.
248.
249.
250.
251.
252.
Denns E. Peseau - Proposed Energy Gateway
Denns E. Peseau - Proposed Gateway West
Denns E. Peseau - Proposed Gateway South
Denns E. Peseau - Idaho MEHC Acquisition Order No. 29973, pg 6-7
Denns E. Peseau - Comparative Investment per Mile
Denns E. Peseau - Western U.S. Competing Transmission Lines Map
Dennis E. Peseau - PacifiCorp Response to Monsanto Data Request 4.5
Denns E. Peseau - Cost of Transmission for Wind Energy, Redacted
Hearing Exhbit - Berkshire Hathaway's Corporate Performance
Hearing Exhibit - PacifiCorp Historical Capital Strctue
Hearg Exhbit - PacifiCorp Advertisement - Energy Gateway
Hearing Exhibit - PacifiCorp Advertisement - Energy Gateway West, South
Hearing Exhbit - Monsanto Rebuttal Data Request 2.4
Hearing Exhibit - Monsanto Biling August 2010
Hearng Exhbit - UPL-E-90-1 Taylor Direct Testimony
Hearing Exhibit - UPL-E-92-2 Order No. 24220
Hearing Exhbit - UPL-E-95-4 App. for Approval of Contract with Monsanto
Hearing Exhbit - PAC-E-07-05 Order No. 30482 Approves Stipulation
Hearing Exhbit - PAC-E-08-07 Order No. 30783 Accepts Stipulation
Hearg Exhbit - PacifiCorp 2008 Integrated Resource PIan and Update
Hearg Exhibit - PacifiCorp Response to Data Request 10.1
Hearng Exhbit - PacifiCorp Response to lIP A Data Request 8
Hearing Exhbit - 2007 Electric Service Agreement between PacifiCorp
and Monsanto, Redacted
Hearing Exhibit - Operating Reserve System Emergency 2009
EXHffITS
323
1
i
9
2
1
i
1
121
3
7
2
2
1
1
3
1
1
1
2
6
1
5
5
1
3
3
6
19
15
17
11
1
4
45
21
!!.g-~~~~-
For PacifiCorp Idaho Industrial Customers æIlC):
601. Donald W. Schoenbeck - Quaifications and Background
602. Donald W. Schoenbeck - Rocky Mountan Power Cost of Servce
by Rate Schedule
603. Donald W. Schoenbeck - Response to LIP A Data Request 2
604. Donald W. Schoenbeck - Response to lIP A Data Request 8
610. Greg R. Meyer- Qualifications and Background
Page Counts:
Rocky Mounta Power 549IPUC 2
Monsanto Company 175PIle 11
Tota 737
2
2
4
1
2
IN WITNESS WHREOF, I have hereunto set my hand and affixed the seal of
the Idaho Public Utilities Commission ths 11t" day of AtÆiAf 2011.
~19~JIieweÎ
Commission Secretary
324
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EXHIBITS
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 14th DAY OF SEPTEMBER
2011, SERVED THE FOREGOING OBJECTION TO PROPOSED AGENCY'S
RECORD ON APPEAL AND REQUEST FOR ADDITION, NOTICE AND REQUEST
FOR HEARING, IN SUPREME COURT DOCKET NO. 38930-2011, BY E-MAILING A
COPY THEREOF TO THE FOLLOWING:
PAUL J HICKEY
HICKEY & EVANS LLP
1800 CAREY AVE., SUITE 700
PO BOX 467
CHEYENNE WY 82003
E-MAIL: phickey(ßhickeyevans.com
MARKCMENCH
DANIEL E SOLANDER
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 2300
SAL T LAKE CITY UT 841 1 1
E-MAIL: mark.moench(ßpacificorp.com
daniel.solander(ßpacificorp.com
RICHARD HALL
WALTER SINCLAIR
STOEL RIVES LLP
101 S. CAPITOL BOULEVARD, SUITE 1900
BOISE ID 83702-7705
E-MAIL: rrhall(ßstoel.com
j wsinclair(ßstoel.com
RANDALL C. BUDGE
RACINE OLSON NYE BUDGE & BAILEY
PO BOX 1391
201 E. CENTER
POCATELLO ID 83204-1391
E-MAIL: rcb(ßracinelaw.net
f!~~
SECRETARY