20111025Stipulated Motion to Suspend.pdf

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DONALD L. HOWELL, II (lSB 3366)
DEPUTY ATIORNEYGENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
E-mail: don.howell(ßpuc.idaho. gov
Attorney for the Respondent on Appeal
Idaho Public Utilities Commission
e
RECEIVED
101 l OCT 2S PH 2: 38
IN THE SUPREME COURT OF THE STATE OF IDAHO
PACIFICORP DBA ROCKY MOUNTAIN )POWER, )
)Petitioner-Appellant, )
)v. )
)IDAHO PUBLIC UTILITIES COMMISSION, )
)
Respondent on Appeal, )
)and )
)MONSANTO COMPANY, )
)Intervenor-Respondent. )
SUPREME COURT
DOCKET NO. 38930-2011
STIPULATED MOTION TO
SUSPEND APPEAL
COMES NOW PacifiCorp dba Rocky Mountan Power ("Rocky Mountain"), the
Idaho Public Utilties Commission ("PUC"), and Monsanto Company (collectively referred to as
the "Paries") though their respective counsels of record and request that the Cour suspend the
appeal in this matter pursuant to Idaho Appellate Rule (LA.R.) 13.2. As outlined in greater detail
below, the Paries maintain there is good cause to suspend the appeal pending the PUC's ruling
on a settlement Stipulation that, if approved in another PUC proceeding, would resolve the
appeal in this case.
STIPULATED MOTION
TO SUSPEND APPEAL i
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BRIEF IN SUPPORT OF SUSPENSION
A. Background
On May 29,2011, Rocky Mountain fied a timely Notice of Appeal from PUC Order
Nos. 32151, 32196, and 32224 in Case No. PAC-E-1O-04. On June 7 and 15, 201 i, Rocky
Mountain filed an Amended Notice of Appeal and a Second Amended Notice of Appeal,
respectively. The sole issue on appeal concerns the PUC's decision that 27% of the Company's
new Populus to Terminal transmission line is not curently "used and useful" to provide service
to Idaho customers and should be classified as "plant held for future use" (PHFU). In its Order
denying reconsideration, the PUC observed that Rocky Mountain wil have an opportunity in the
Company's next general rate case to assert that the 27% classified as PHFU should be placed
into the utility's "rate basel." Order No. 32224 at 13,2011 WL 1525191 (Idaho PUC)(April 18,
2011).
B. Settlement Stipulation
On May 27, 2011, Rocky Mountain fied a new rate case (Case No. PAC-E-l1-12)
and requested that the 27% portion of the Populus line be placed into rate base and recovered in
rates. As par of the new case, the PUC scheduled two settlement conferences for August 23 and
September 22, 2011, so that the paries could engage in settlement discussions. Based upon
these settlement discussions, all the paries to the new rate case except one2 entered into a
i "Rate base" is the "original cost minus depreciation of all propert justifiably used by the utilty in providing
services to its customers." Application of Hayden Pines Water Co., I I I Idaho 33 1,333, 723 P.2d 875, 877 (1986).
2 The Community Action Parnership Association of Idaho ("CAPAI") participated in the settlement negotiations,
however chose "not to be a par to the stipulation." Stipulation at p. 1.
STIPULATED MOTION
TO SUSPEND APPEAL 2
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settlement Stipulation. The settlement Stipulation was fied with the PUC on October 18, 2011.
For the convenience of the Cour, the settlement Stipulation is attached to this Motion.3
As set out in paragraph 16 to the Stipulation, the signing paries have agreed to settle
the Populus transmission line issue. As par of the rate case settlement, the appeal Parties agreed
to request that this Court suspend the appeal until such time as the PUC completes its review of
the settlement Stipulation. The Stipulation provides that the signing parties
agree that the portion of the Populus to Terminal transmission line determined
by the Commission in Case No. PAC-E-I0-07 to be plant held for future use
(PHFU) is now used and usefuL. The paries fuher agree that the
Commission should make a specific finding that the entire Populus to
Terminal transmission line is now used and usefuL. Although the paries agree
that the Populus to Terminal transmission line is used and useful, they fuher
agree that the portion of the transmission line deemed PHFU in Case No.
PAC-E-1O-07 shall not be included in rates until on or after Januar 1,2014.
Following the filing of the Stipulation, (PUC) Staff and the Company agree to
fie a Motion to Suspend the Appeal now pending in the Idaho Supreme
Cour, docketed as Case No. 38930-2011. Upon receipt of a final Order from
the Commission approving the Stipulation, the Company agrees that it will
within 10 days thereof fie a Stipulation for Dismissal of the appeal with each
par to bear its own costs.
Stipulation at ~ 16.
The PUC intends to review the reasonableness of the settlement Stipulation in the
Company's curent rate case, No. PAC-E-II-12. The PUC has set the following schedule for
completion of the curent rate case, including whether to approve the settlement Stipulation.
Date
November 2, 20 i 1
December 2, 2011
December 19-21, 2011
Activity
Staff/Intervenor prefie direct testimony
Rebuttal testimony
Evidentiar hearng
3 The paries to the Stipulation agree that paragrph 14 of the Stipulation contains information considered to be a
trade secret pursuant to the Idaho Trade Secrets Act, Idaho Code § 48-801(5). Consequently, that information has
been redacted from the attached Stipulation. Also, the Stipulation does not contain a "Page 8."
STIPULATED MOTION
TO SUSPEND APPEAL 3
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Order No. 32309. The PUC also intends to schedule public hearngs so that customer and
members of the public may testify in ths matter. The settlement Stipulation provides that the
stipulated rates wil become effective on Januar 1, 2012. Stipulation at ir 4. If the PUC
approves the settlement Stipulation and makes the requested finding, Rocky Mountain wil fie a
Stipulation for Dismissal pursuant to I.A.R. 33. ¡d. at ~ 16.
C Motion to Suspend Appeal
In this Motion, the Paries to the appeal are requesting that the Cour temporarly
suspend the appeal until such time as the PUC completes its review of the settlement Stipulation
and other issues in PUC Case No. PAC-E-ll-12. If the PUC approves the settlement Stipulation
and makes the requested finding, the Populus transmission dispute wil be resolved and the
appeal wil be unnecessar. Suspending the appeal wil also consere judicial resources and
allow the PUC suffcient time to complete its review.
In considerng a suspension on appeal, the Paries must disclose the duration of the
requested suspension. I.A.R. 13.2. The Paries request that the appeal be suspended for
approximately 100 days, or until Januar 30,2012. The paries maintain that this amount of time
wil provide sufficient opportity for the PUC to complete its review and issue the necessar
final Order in the curent rate case.
PRAYER
In sumar, the Paries respectfully request that the Court suspend this appeal for the
reasons stated above. The Paries fuer maintain there is good cause for the Cour to suspend
the appeal for approximately 100 days or until Januar 30, 2012.
STIPULATED MOTION
TO SUSPEND APPEAL 4
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CERTIFICATE OF UNCONTESTED MOTION
The undersigned does hereby cerify that he has contacted opposing counsels and is
authorized to represent that opposing counsels have no objection to this Motion, and they join in
this Stipulated Motion.
Respectfully submitted on behalf of all the Paries to this appeal this 2 c:fJ.J day
of October 201 1.
Æ~dii~
Deputy Attorney General
Attorney for Respondent on Appeal,
Idaho Public Utilities Commission
O:Supreme Cour Case/P AC-E- I 0-07_ Motion to Susend Appea_db
STIPULATED MOTION
TO SUSPEND APPEAL 5
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 25th DAY OF OCTOBER 2011,
SERVED THE FOREGOING STIPULATED MOTION TO SUSPEND APPEAL, 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: phickeYtBhickeyevans.com
RICHARD HALL
WALTER SINCLAIR
STOEL RIVES LLP
101 S. CAPITOL BOULEVARD, SUITE 1900
BOISE ID 83702-7705
E-MAIL: rrhalltBstoel.com
jwsinclairtBstoel. com
MARK C MOENCH
DANIEL E SOLANDER
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 2300
SALT LAKE CITY UT 84111
E-MAIL: mark.moenchtBpacificorp.com
daniel.solander(facificorp.com
RANDALL C. BUDGE
RACINE OLSON NYE BUDGE & BAILEY
PO BOX 1391
201 E. CENTER
POCATELLO ID 83204-1391
E-MAIL: rcbW2racinelaw.net
PúltLlL~0p0-JJ
SECRETARY
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Mar C. Moench
Danel E. Solander
201 South Ma Str Suite 2300
Salt Lae City, Uta 84111
Telephone: [phone]
Facsime: [phone]
Danel.solander(ßpacificorp.com
Mark.moench(ßpacificorp.com
RECEIVED
2D Ii OCT I 8 AM 10: 18
'Df~.HO pi ,;~ 1 ,:-
l'.., ii ¡-I't'S' ,.:..'; :~i.¡'.;~..IO). . 1'- l-1.JI''ií,',¡..0' .,1
Attorneys for Rocky Mountain Power
BEFORE TH IDAHO PUBLIC UTS COMMSSION
IN TH MATTR OF THE APPLICATION )
OF PACDCORP DBA ROCKY )
MOUNAI POWER FOR APPROVAL OF )
CHAGES TO ITS ELECfC SERVICE )
SCHEDULES AN A PRICE INCREASE )OF 532.7 MILION, OR )APPROXITELY 15.0 PERCENT )
CASE NO. PAC-E-ll-12
STIPULATION
Ths stpulation ("Stipultion") is entere into by and among Rocky Mounta Power, a
division of PacfiCorp ("Rocky Mounta Power or the "Compay"); Sta for, pte Idao Public
Utiities Commssion ("Staff"); Monsto Compay ("Monsto"); PacifiCorp Idao Indusal
Customer ("PßC"); and the Idao Irgaton Pupe Assation Inc. ("LIP A") collectively
referr to as the "Pares". Communty Acton Parerhip Asiaton of Ida ("CAPAI")
pacipated in the settement negotions however they have chose not to be a par to the
Stipulaton.
L INODUCTON
1. The term and conditions of ths Stipulaton ar se fort herein. The Pares
ag tht ths Stipulation reresets a fai, jus and reasnale comprmise of the iss in ths
proeedig and tht ths Stipulaton is in the public intest The Pares remmend tht the
Idaho Public Utiities Commssion ("Commssion"), purt to its autonty under Commssion
REDACTED STIULA nON - Page 1
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Rules 271t 272 and 274t appve the Stipulation an all of its te an condtions. See IDAPA
31.01.01.271t 272t and 274.
D. BACKGROUN
2. On May 27t 2011, Rocky Mounta Power fied an Applicaon sekig authority
to incree the Compay's ba raes for electrc sece by $32.7 milion anualYt an overa
avere increa of apprximtely 15.0%. The incre in ra vares by cusomer class and
actu usge. Rocky Mounta Power sougt an incr in ra effecve Debe 27t 2011.
3. With a view towa resolvi th issus rase in Rocky Mounta Powerts
Applicaon in ths proc& representaves of the Pares met on Aug 23, 2011 and
September 22t 2011, purt to IDAPA 31.01.01.271 and 272t to engae in seement
discsions.
Bas upon the settlement discusions beee the Pares, as a compromise of the
positions in ths proedin, and for other consideon as se fort belowt the Pares stpulat
and agr to the followig:
m. TERMS OF TH STIULATION
Revenue Requirment
4. The Pares agr to suport a two-yea ra plan with anua mte incras of
$17.0 millon pe year, whch results in overl averae anua revenue increas of
apxiately 7.8 pent in 2012 and 7.2 pet in 2013. The fi incre to ba ras will
ocur Janua It 2012, and will be comprise of
$6.0 milion of non-net power cost components
(caita, opeons and matecet and other) and $11.0 miion of net power costs. The
send incre to bas mte will occur Janua 1, 2013, and will be comprise of $6.0 millon
of non-net power cost components and $11.0 millon of net power cost. The Company wil
mae a complia fiing Novembe 1, 2012 to implement the send yea incras of $17.0
millon effecve Janua It 2013 tht will include revise tas.
5. Unless explicitly spified with the Stipulation, the Pares age th
detrm the anua incres of $17.0 milion pe year for two yea is a "blak boxu
REDACTED STIULA nON - Page 2
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seement, with no agment or accetace by the Pares of any spific revenue reuient,
cost aloction or cost of sece metodolog. However, the Pares agee th th st point
of the Stipulaton wa to act all Commssion order adjusents frm Cas PAC-E-IO-Q7,
Or No. 32196. Al Pares ag th ths Stipulon represets a fa, jus and renable
comprmise of the isss in ths prg and tht th Stipulaton is in the public inter
Power Costs
6. The Pares age tht ba on the revenue reuient split speifed in
paph 4, net power costs in ba raes will in frm the curt level of$1.025 billon to
$1.205 billon in 2012 and from $1.205 bilion to $1.385 billion in 2013. Thes amounts will
beome the tota Compay bas ne powe costs for trkig in the Compay's energy cost
adjusent mecha ("ECAM').
7. Th Pares ag th $78.8 millon, on a tota Compay bais or $6,526,622
alocate to Idao (R Exlbit 2 pae 3.5) of rewable energy cercate ("REC'') revenue is
included in raes in 2012 and 2013. Th Idao allocte amount will beme the bas for
purses of trkig at 100 pet in the Compay's ECAM mechaism.
8. The Pares ag to up the Ida loa in the 2012 ECAM loa chae
adjusent revenue ("LCAR") cacuaton to the 2010 ac loa inlud in PAC-E-l 1-12 for
the 2012 ECAM defer cacultion and us 2011 actu loa rert in the Anua Resuts of
Opetions Report for the 2013 ECAM defer caculaton. The LCAR unt value would be
frozen over th rate plan peod at the curt ra of $5.47 pe MW (Cas No. PAC-E-lO-Q7).
9. The Pares ag th the Compay shal amort and collec Agum and
Monsto's sh of Commssion apprved ECAM baance. which includes defer ne power
cost defer REC's. LCAR adjusen and othr ECAM componets, includ the irgaton
load con1r1 crt as speifed in parh 10, over the followig period:
a) The 2012 ECAM baance (2011 defers) over a peod of th yea;
b) The 2013 ECAM baance (2012 defers) over a peod of th yea;
c) The 2014 ECAM bace (20 13 defers) over a peod of two year.
REDACTED STIULA nON - Page 3
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d) Begig with the 2015 ECAM bace (2014 deferrs), Monsto and
Agrum wil pay new ECAM cost ba on a 12-month collecon peod
Any over-cllecon or under-cllecon at the en of the amortzaon peod identied in
paphs 9(a) thug 9(c) above will be tr up for eah contr cusmer and refude or
collected as pa of a subseuet ECAM collection peod frm thes contrt cusmers and not
frm other rel cusmer. All other cusmer will contiue to pay ECAM chaes on the 12-
month collection penod as they curtly do dunng the rate plan.
10. Th Pares ag th due to the uncety of the junsdctona trent of the
disphable irgation load contrl progr curtly being disc by th MSP Stadig
Commtt, Idao's sh of the cumer loa contrl sece crt wil be trked in the
ECAM. The Pares fuer agr th $1,045,423 (R Exbit 2 pae 4.4.1) is Idao's ba
amount to be trked in the ECAM for 2012 and 2013.
Rate Spred and Rate Desip
1 1. The Pares age to a rate spre bad upon $ 17.0 milion in anua incr for
2012 and 2013 as set fort in mor detal in Atthment 1 to ths Stipulaton.
12. The Pares ag th the deign of rates by ra schedule (ra design) shal be
consistent with the Compy's prposas fied in its Application an adjus for the revenue
reuient speifed in ths Stipultion. Detals of th ra design ar included in Attent 2
to ths Stipulation.
13. The Pares age th the Compay's residential cusomer serce chae for
Schedule 1 and 36 will rema at $5.00 pe month and $14.00 pe month respvely, dwig the
tie peod covere by ths Stipuation.
OtberItems
14. Th Pares ag th the value of Monsto's curlment pruc will be
incred frm . millon in 201 I, to . millon in 2012, and . millon in 2013.
Monsto and the Compay wil execute a new ener serce agrent for 2012 and 2013 in
order to reflec th te of the Stipulaton. Monsto and the Compay agee to work
REACTED STIULA nON - Page 4
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collaboravely and in goo fath durg the ra plan peod to addr the te condtions and
valuaon of Monsto's curent pruct in an effort to maze vaue to the Company and
Monsto an also to discuss cost of sece metodologies as applied to the Monsto loa an
how sad methodologies wil be utiliz in the next gener rae ca. Monsato and the
Compay will rert to the Sta and Commssion as appropriat on the prgrs mae.
15. The Pares ag th ths Stipuaton does not chae or alte the irgation loa
contrl servce cret in 2012 or pror agrents goverg the irgaton loa contrl prgr
tht reui the irgaton loa contrl sece crt to be regoti for th 2013 sen and
beyond. The Compay an lI A will work collaboravely dur caenda yea 2012 to
renegotiate the irgaton load contrl prgr for the 2013 sen and beyond. The Compay
and LIP A wil work collabravely durg the rate plan peod to disc cost of seice
metodologies as applied to the irgaton clas and how sad metodologies will be utliz in
the next gener ra ca.
16. The Pares ag th the porton of the Populus to Ter trssion line
detered by the Commssion in Ca No. PAC-E-i0-07 to be plant held for futu us (PHF
is now used and usfu. The paes fuer agr tht the Commssion should mae a spfic
fidin tht the entire Populus to Ter trDUssion line is now us and usfu. Althoug
the Pares agre tht the Populus to Ter trssion line is us and usfu, they fuer
ag th the porton of the trssion line deed PHF in Cas No. P AC-E- 1 0-07 shall not
be included in ra witil on or af Janua 1,2014. Followig the fili of ths Stipulon,
Sta and the Company ag to tie a Motion to Sus the Appe now pedig in th Idao
Supe Cour docketed as Ca No. 38930-2011. Upon reipt of a fi Orer from the
Commsion aprovig the Stipulaton, the Compay agr tht it will with 10 days therf
file a stpulaton for DisDUssa of the appe with eah par to be its own cost.
17. The Pares ag th the Compay will contiue to defer th depreon
expee assoiated with the Populus to Ter trmisson lie, purt to Or No. 32224,
REDACTED STIULA nON - Page 5
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until it is included in ras on Janua 1,2014 and tht the acumulate defer bace wi be
amort over th yea frm the da the cos ar inluded in rates.
18. The Pares age th th Compay will work with the Pares to estlish
hedgig limts consistt wi workgrup pross estlished in Uta an Orgon for cost
begig Janua 1, 2013, and forw.
19. The Pares ag th in regntion of th two-year rate plan cover by ths
Stipulaton, Roky Mounta Powe wil not file another gener ra ca before May 31, 2013,
with new rates not effective pror to Janua 1,2014. Rocky Mounta Power wil contiue to
fie anua Results of Opetions Reprt with the Commisson to enle the Commisson to
ens tht rates durg the two-yea ra plan contiue to be jus an renable. Ths
. Stipulaton doe not prhibit the Company frm resing rate due to th ECAM whch will stl
ocur April 1 eah yea.
IV. GENERA PROVISIONS
20. The Pares ag th ths Stipulaton rets a comprmise of the dispute
clais an positions of the Pares on all issue in ths prg. Oter than the abve
refere positions and any testony fied in support of the apval of th Stipulaton, and
exce to the ext necsa for a Par to explai before the Commssion its own stements
and positions with respe to the Stipulation, al negotiations relatg to th Stipulaton sba not
be adssible as evidence in th or any other prog regarg ths subjec ma.
21. The Pares submit ths Stipuaton to th Commssion and remmend appval
of the Stipulaton in its entity purt to Commssion Rule 274, IDAPA 31.01.01.274. The
Pares shal surt th Stipulation before the Commssion, and no Par sha ap any
porton of ths Stipulation or any subseuent Orde approvig the sae. If ths Stipulaton is
chalenged by any pen not a pa to the Stipulon the Pares to ths Stipultion ree the
right to crss-exame witnesse and put on such ca as they dee apropriat to red fuly
to the issues prente including the right to rase isss th ar incorprate in the seement
emboed in ths Stipulon. Notwthdi ths reation of rights, the Pares to ths
REDACTED STIPULATION - Page 6
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Stipulaton ag th they will contiue to suprt the Commsson's adption of the ter of
ths Stipulon.
22. In the event the Commssion rejects any pa or al of ths Stipulaton, or impose
any additiona maal conditions on approva of ths Stipulon, eah Par reeres the right,
upon wrttn notice to th Commssion and the other Pares to ths pr, withn 15 days of
the date of such acon by the Commssion, to withdrw frm ths Stipuation. In suh ca, no
Par shal be boun or prjudce by the te of th Stipulon, an eah Par shal be
entitled to sek reonsidetion of the Common's or, fie tetiony as it choose cr-
exame witnesse, or otherwse prset its ca in a ma consistt with the Commssion's
Rules and Procures.
23. The Pares ag th ths Stipuation is in the public interest and tht all of its
tenns and conditions ar fa, just and reasnable.
24. No Par shal be bound, beefite or prejudce by any position as in the
negotiaton of ths Stipulaton, excet to the exnt exresly sted herin nor sh ths
Stipulaton be cons as a waiver of the rights of any Par uness such rights ar exressly
waived herein Th is a "black box" seement and exection of ths Stipultion sha not be
deeed to constute an acknowledgment by any Par of th vaidity or invalidity of any
parcular metod theory or prciple of reguation or cost recovery. No Par shl be deeed
to have ag th any metod theory or prciple of reguon or cost rever employed in
anvig at ths Stipulation is apprpriate for relvi any issues in any other pree in the
fu. No fidis of fac or conclusions of law other th those stte herin sha be deemed
to be implicit in ths Stipulaton.
25. The obligations of the Pares under ths Stipulaton ar subject to th
Commssion's aproval of ths Stipulation in acrdace with its ter and conditions an, if
judcial review is sought, upon such apval be upheld on ap by a cour of copet
jursdicton.
REDACTED STIULA nON - Page 7
--e. .e
Re sutt th £t day of Oc. 2011.
Ro M.. Po Mtto Cc~~
Ida Pu Ut Co St Pa Ida ID Cu
ByD.NePr ByRo L. WI
~7~By ~
S1ULTION - Pag 9
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Respecly submtt this .L day of OC. 2011.
Roc Mountain Power
By~~.øMárk . Mo
MoDl Coll
ByRada C. Budp
e
Idaho Publi UUUtles Coon Sta Paftrp Ida IDdUlal Cuto
..By V2~~D. Ne Prce
Idaho Irrado Puper Aiioctl
IDe.
ByEri L. 0I
STULATION - Paø 9
By
Roald L. WIU