131001_RMPBPA.pdf

Idaho Public Utilities Commission
Case No. PAC-E-13-11, Order No. 32901
October 2, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

BPA credit to increase for Rocky Mountain Power customers

A federal electric rate credit passed along to residential and small-business customers of Rocky
Mountain Power increased today and the Idaho Public Utilities Commission is hoping a
settlement of one remaining disputed issue will eventually result in a larger credit.

The commission this week adopted a Bonneville Power Administration residential exchange
credit of 0.3095 cents per kWh on an interim basis pending further discussion. The credit was
0.1839 cents per kWh. For a residential customer who uses Rocky Mountain Power’s average
840 kilowatt hours per month, the monthly credit increases from $1.54 to $2.60, resulting in a
1.3 percent decrease to the residential bill.

The Bonneville Power Administration markets and distributes power to consumer-owned
electric utilities in Oregon, Washington, Montana and Idaho. BPA power is generated from
federal dams in the Columbia River system. While customers of publicly-owned utilities (like
rural co-ops and the City of Idaho Falls) have preferential access to BPA power, the Northwest
Power Act of 1980 also requires that customers of private, investor-owned utilities (85 percent
of Idahoans) also share in the benefits of the region’s federal hydroelectric projects through a
financial credit as part of BPA’s Residential Exchange Program (REP). The amount of the credit
is determined by formulas using various factors, including a utility’s average system cost for
producing power. If an investor-owned utility’s average system cost to produce electricity
results in rates higher than those offered to BPA public utility customers, customers of investor-
owned utility are issued a credit.

PacifiCorp is one of six Northwest investor-owned utilities whose customers can qualify for a
credit. PacifiCorp allocates its total credit among the three Northwest states it serves, including
in eastern Idaho where it operates as Rocky Mountain Power. Commission staff disagrees with
the way PacifiCorp has chosen to allocate its share of the credit to Idaho customers for the
2014-2015 fiscal years. The benefits to PacifiCorp customers in Oregon, Washington and Idaho
total $69.5 million over two years, with Idaho scheduled to receive $6.55 million. The credit is
partially determined by the amount of electric load served by PacifiCorp in each of the three
states.

The commission agreed to adopt its staff recommendation that the 0.3095-cent per kWh be
adopted on an interim basis, while reserving resolution of the disputed issue pending further
discussions between staff and PacifiCorp.