130801_PAChearings.pdf

Idaho Public Utilities Commission
Case No. PAC-E-13-04, Order No. 32831
August 1, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Parties propose settlement to PacifiCorp rate issues

The Idaho Public Utilities Commission will conduct two public hearings and a technical
hearing regarding a proposed settlement that would increase rates for customers of
PacifiCorp (Rocky Mountain Power in eastern Idaho) by 0.77 percent next January. The
settlement also proposes there be no further change in base rates until Jan. 1, 2016, at
the earliest.

The parties who agreed to the proposed settlement state the increase is so small – less
than $1 per month for the average residential customer, according to PacifiCorp – that
the commission should adopt it without a formal rate case, which can take considerable
time and expense to process. Further, nearly all of the proposed additional $2 million
annual revenue requirement from Idaho customers is for the remaining expense of the
Populus to Terminal transmission line already approved by the commission.

One public hearing is set for Tuesday, Aug. 27, at 7 p.m. at the Rigby City Hall, 158 W.
Fremont in Rigby. The second public hearing, a telephonic hearing, is Wednesday, Aug.
28, also at 7 p.m. For that hearing, customers can call a toll-free number and offer
testimony and/ or listen to the hearing. The technical hearing is scheduled for
Wednesday, Sept. 11, 2013 at 9:30 a.m. in the commission hearing room at 472 W.
Washington St. in Boise.

Parties proposing the settlement include the company, commission staff, the Idaho
Irrigation Pumpers Association, the Idaho Conservation League, the Snake River Alliance
and the PacifiCorp Idaho Industrial Customers. The Community Action Partnership
Association of Idaho participated in the settlement discussions but did not sign the
settlement. CAPAI says it cannot sign the settlement unless PacifiCorp agrees to comply
with its request for information regarding rate design for residential customers. The
company says it is working to comply with CAPAI’s request. CAPAI also objects to the
way the case is being processed.

In addition to recovering the $2 million in transmission expense, the settlement also
proposes to allow PacifiCorp to defer up to $5.43 million in expense associated with the
new Lake Side II natural gas power plant south of Salt Lake City. The plant begins serving
customers next summer and collection of costs related to the plant would be collected
through the annual Energy Cost Adjustment Mechanism beginning in 2015 and then
included in base rates after the next rate case.

The settlement also would allow PacifiCorp to defer any net increase or decrease in
depreciation expense allocated to Idaho until after the next rate case. The parties also
agreed to the creation of a regulatory asset for future recovery from Idaho ratepayers of
the state’s allocated share of costs related to the retirement of the Carbon coal plant.
Those expenses will be subject to the commission’s review and approval or disapproval.
Customers who are not able to attend the Rigby hearing may testify and/or listen to the
telephonic hearing on Aug. 28 at 7 p.m. Call 1-800-920-7487 and enter the participant
code 76373262.
All participants will be able to hear the proceeding. A participant’s phone is
automatically muted except when testifying. Those wanting to comment can press *1
(star one) on the phone key pad at any time and be placed in line to testify. When it is
your turn, an electronic prompt will say, “Ask your question.” At that time, the person
testifying will be asked to state his/her name and address and be sworn in. When the
testimony is completed, the telephone is automatically muted allowing the caller to
listen to the rest of the hearing. Those who have pressed *1 to testify and then decide
not to testify, can push the pound key to be taken out of the line. Anyone having
questions about testifying can call the commission at 334-0339 or 1-800-432-0369.
For customers who do not want to submit oral testimony, the commission is also taking
written comment through September 13. Written comment carries as much weight as
oral testimony. Comments are accepted via e-mail by accessing the commission’s
homepage at www.puc.idaho.gov and clicking on "Case Comment or Question Form,”
under the “Consumers” heading. Fill in the case number (PAC-E-13-04) and enter your
comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or
faxed to [phone].

A full text of the proposed settlement and other documents related to this case is
available on the commission’s Web site. Click on “Open Cases” under the “Electric”
heading and scroll down to the above case number.

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