HomeMy WebLinkAbout19990625.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
DON HOWELL
STEPHANIE MILLER
TONYA CLARK
RON LAW
RANDY LOBB
KEITH HESSING
BILL EASTLAKE
DAVID SCOTT
WORKING FILE
FROM:
DATE: JUNE 25, 1999
RE: CASE NO. UPL-E-99-1; APPROVAL OF REDUCTION IN BPA
REGIONAL EXCHANGE CREDITS FOR PACIFICORP
On April 30, 1999, PacifiCorp, doing business as Utah Power and Light Company (Company), applied to the Commission for approval of a revised electric service Schedule No. 34 reducing the exchange credits provided to customers through the Bonneville Power Administration (BPA) regional exchange program.
As explained in the Company’s Application, this reduction in the exchange credit is the second of three steps agreed to in 1998 which will completely eliminate the credit unless additional funding becomes available. The irrigation credit was to be reduced in three steps causing 8% average increases in rates to customers each year. The residential credit was to be reduced in the same
manner, except that the average rate increase in each of the three years was to be 3.35%. Due to last year’s very wet irrigation season which left more money available for credit this year, the Company is proposing a reduction in the scheduled irrigation credit increase that causes an average 4% increase to irrigation customers instead of the previously agreed 8%. The proposed residential class rate increase remains at 3.35%.
On May 24, 1999, the Commission issued a Notice of Modified Procedure soliciting comments in response to PacifiCorp’s Application. The only party to submit comments is the Commission Staff. According to Staff, its review of the Company’s Application did reveal one minor discrepancy. Paragraph 7 of the Application incorrectly lists the monthly irrigation credits. However, the Company’s calculations and Schedule No. 34 contain the correct credits. Staff has checked the Company’s calculations and consulted with the Company concerning the clerical error in paragraph 7 and reports that the credits included in Schedule No. 34 are correctly calculated. The proposed residential and irrigation credit reductions cause 3.35% and 4% average increases to the respective customer classes as stated in the Company’s Application. Attachment A to these comments shows class percentage increases, present average prices, proposed average prices and average prices without the BPA credit.
Staff recommends that the Commission approve Schedule No. 34 as filed by the Company. The Company requested a June 1, 1999 effective date that is not possible given the established comment deadline of June 14. Staff proposes that Schedule No. 34 be effective three working days following the Commission’s final order in this proceeding. Staff has discussed this method of establishing the effective date with the Company and the Company has indicated that it is acceptable.
Commission Decision
Does the Commission wish to approve PacifiCorp’s Application?
vld/M:UPL-E-99-1_bp2
DECISION MEMORANDUM 1