, direct testimony of jeffrey k. larsen nos. 10, 400, and 401
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THEAPPLICATION OF PACIFICORPDBA ROCKY MOUNTAIN POWER'FOR APPROVAL TO REVISEELECTRIC SERVICE SCHEDULENOS. 10, 400, AND 401
CASE NO. PAC-E-
, Direct Testimony of Jeffrey K. Larsen
ACIFICORP
June 2006
Please state your name, business address and position with PacifiCorp, dba,
Rocky Mountain Power ("the Company.
My name is Jeffrey K. Larsen, and my business address is 201 South Main Street
Suite 2300, Salt Lake City, Utah 84111. I am currently employed as Managing
Director of Regulatory Affairs.
Qualifications
Please summarize your education and business experience.
I received a Master of Business Administration degree from Utah State University
in 1994 and a Bachelor of Science degree in Accounting from Brigham Young
University in 1985. I have also participated in the Company s Business
Leadership Program through the Wharton School and an Advanced Education
Program through the J.L. Kellogg School of Management at Northwestern
University. In addition to formal education, I have also attended various
educational, professional and electric industry-related seminars during my career
at the Company.
I joined the Company in 1985 , and I have held various accounting,
compliance and regulatory-related positions prior to my current position. I have
testified on various matters in the states of Utah, Wyoming, California
Washington, and Oregon.
Purpose
What is the purpose of your testimony?
The purpose of my testimony is to provide an overview of the Company
application to revise Electric Service Schedule Nos. 10, 400, and 401 , and support
Larsen, Di - 1
PacifiCorp
the Stipulation entered into between the Company and the Idaho Irrigation
Pumpers Association, Inc. ("lIP A" or "Stipulation Party ) as being reasonable and
in the public interest. I first provide background to this application, including its
relation to the general rate case originally anticipated to be filed by the Company
before April 29, 2006. I describe the Company s efforts to reach agreements with
multiple parties prior to filing the application. I explain the various elements of
the Stipulation as well as provide evidence that supports the need for a price
change in the Idaho jurisdiction and provides the basis for the agreements reached
with the various parties. Finally, I recommend that the Commission approve this
application and Stipulation as reasonable and in the public interest.
Overview
Please describe PacifiCorp s application to revise Electric Service Schedule
Nos. 10, 400, and 401.
This filing requests adjustments to Electric Service Schedule Nos. 10, 400 , and
401 according to the terms of settlement agreements reached between the
Company and lIP A, Monsanto Company ("Monsanto ), and Nu- West Industries
Nu- West"), respectively. If approved by the Commission, PacifiCorp would be
allowed to implement revisions to Schedule Nos. 10, 400, and 401 designed to
recover a total of $8.25 million in additional annual revenue from base rates
representing an aggregate rate increase of5. 1 percent. Revised Schedule Nos. 10
and 400 would become effective as of January 1 , 2007 , and revised Schedule No.
401 would become effective as of September 1 2006.
Larsen, Di - 2PacifiCorp
Has the Company provided workpapers showing how the results were
calculated and the impact on existing tariffs?
Yes. Exhibit 1 shows the total company and Idaho allocated revenue requirement
as I will describe later. Exhibit 2 is a summary of the cost of service study,
including an itemization by functional category. Exhibit 3 includes a calculation
of the revenue increase for Schedule No. 10. Exhibit 4 includes revised tariff
schedules showing the proposed changes to Schedule Nos. 10, 400, and 401.
Are any rates set forth in tariff schedules other than those referenced above
at issue in this application?
No.
Why has the Company proposed no changes to other tariff schedules?
Based on the Company s most recently available cost of service results at the
proposed target return on rate base shown in Exhibit 2, there are no other major
customer classes that require rate adjustments on the order of magnitude as was
indicated for Schedule Nos. 10 400 and 401. In fact, all other major customer
classes are within 90 percent and 110 percent of the proposed cost of service. As
such, while smaller adjustments for other customer classes may be suggested by
the results, the Company believes it is appropriate to increase prices for only
Schedule Nos. 10 , 400, and 401 at this time. This will limit price changes and
result in price stability for the majority of our Idaho customers, while reducing
cost of service disparities among customer classes.
Larsen, Di - 3PacifiCorp
Does this application address the details of the proposed changes to Schedule
Nos. 400 and 401?
No. Electric Service Schedule Nos. 400 and 401 are based on special contracts
between the Company and its customers Monsanto and Nu-West, respectively.
Details supporting the proposed changes to these tariff schedules are provided in
separate applications filed simultaneously with this application and are subject to
Commission approval. However, the Company has provided revised Schedule
Nos. 400 and 401 as exhibits in this application for Commission approval and to
illustrate the proposed changes to these schedules which, when evaluated
alongside the proposed revision to Schedule 10, show the overall impact ofthe
rate changes on the Company s financial results.
Background
The terms of the Stipulation approved in Case No. P AC- 05-0l indicated
that the Company anticipated filing a general rate case by April 29, 2006.
Why did the Company not proceed with a general rate filing by that date?
Paragraph 8 ofthe approved Stipulation referenced above states
, "
The cost of
service issue (related to the Monsanto contract) is not resolved in this Stipulation
and is proposed to be addressed in a general rate case to be filed by the Company
no later than April 29, 2006 in order that the effective date of rates in that
proceeding will coincide with the expiration of the current Monsanto contract in
December 2006." During the course of preparing the anticipated general rate
filing, the Company was also engaged in confidential contract negotiations with
Monsanto regarding a new electric service agreement. As those discussions
Larsen, Di - 4PacifiCorp
progressed it became apparent that mutual agreement would be possible
resolving many of the cost of service issues raised in Case No. P AC- E-05-0 1. As
discussions with Monsanto continued past April 29, 2006, the Company notified
the Commission and parties to the previous Stipulation that it intended to delay a
general rate case filing.
Has the Company reached agreement with Monsanto regarding a new
special contract?
Yes. PacifiCorp and Monsanto have signed a new electric service agreement that
was filed in a separate application for Commission approval. The new service
contract will be effective January 1 , 2007.
Why did the Company seek agreements with lIP A and Nu-West?
The cost of service study prepared pursuant to the anticipated general rate case
filing and for the Monsanto contract negotiations revealed significant revenue
shortfalls in Idaho , not only from Monsanto but also from the irrigation customer
class and the Nu-West special contract. PacifiCorp initiated discussions with both
lIP A and Nu- West and has signed stipulations with both to reduce the respective
revenue shortfalls.
Has the special contract with Nu-West been renegotiated?
No. Electric Service Schedule No. 401 is based on the terms ofthe electric
service agreement between the Company and Nu- West, approved by the
Commission in Order No. 29940, effective through December 31 , 2010.
Schedule No. 401 allows for adjustments to the tariff rate which may be approved
by the Commission, and the Company has filed a separate application that would
Larsen, Di - 5PacifiCorp
support a tariff rate increase to Schedule 401 , effective as of September 1 2006..
What is the basis for the settlement agreements and proposed increases?
Each agreed-upon increase is based on the Company s normalized results of
operations and cost of service studies using a historical test year ending
September 30, 2005.
These normalized results of operations indicate the Company is currently
earning a return on equity of 5.75 percent, which is significantly below the
Company s last authorized rate of return, and well below the rate of return
generally allowed for public utilities in Idaho currently. Based on the Company
target rate of return, an increase of$19.35 million would be warranted at the
75 percent earnings level. Without the requested increase in revenues, it will be
increasingly difficult for PacifiCorp to access capital markets to obtain the funds
necessary to maintain its utility infrastructure and continue to provide safe,
reliable power to its Idaho customers.
Were the results of operations prepared consistently with past Commission
practice and orders?
Yes. The results were prepared using a historical test year with known and
measurable adjustments, including adjustments for both costs and matching
benefits to customers. PacifiCorp s total company results were allocated to the
Idaho jurisdiction according to the Revised Protocol allocation method approved
by the Commission in Order No. 29708 and previously implemented in Case No.
PAC- 05-01. The calculated revenue shortfall was reduced to reflect the rate
mitigation cap, limiting rate increases to 101.67 percent of the revenue
Larsen, Di - 6PacifiCorp
requirement calculated under the Rolled-In allocation method. All applicable
commitments made by the Company during the acquisition ofPacifiCorp
MidAmerican Energy Holdings Company, Case No. P AC- 05-08, were also
reflected in the calculation of the results.
Has the Company communicated with any other customer groups?
Yes. The Company contacted all parties to the Stipulation reached in Case No.
PAC- 05-01 and none have objected to the Company s decision to not file a
general rate case in 2006.
In particular, PacifiCorp has worked with the Community Action
Partnership Association of Idaho ("CAP AI") because of a related commitment in
Case No. P AC- 05-08, the MidAmerican acquisition ofPacifiCorp.
Commitment No. I 13(b) states
, "
In PacifiCorp s next Idaho general rate case,
PacifiCorp will include in its direct testimony an analysis ofthe costs and benefits
of changing its current practice of matching 50 percent of federal contributions to
matching at a higher percentage amount." Because CAPAI was a party to the
Stipulation approved in Case No. PAC- 05-01, it was expecting a general rate
case to be filed by April 29 , 2006 with testimony that would satisfy Commitment
No. I 13(b). PacifiCorp reached agreement with CAP AI that the issue
contributions under tariff Schedule No. 21 could be addressed in a separate
proceeding before the Commission.
Does the Company still intend to file a general rate case in 2006?
, not if the Commission approves this application. The Company believes that
Commission approval of this filing, along with the separate filings with respect to
Larsen, Di - 7Pacifi Corp
the Monsanto and Nu- West special contracts, will resolve the issues previously
raised in Case No. PAC- 05-0l. In addition, the proposed revenue increase
would allow PacifiCorp the opportunity to earn a fair rate of return in its Idaho
jurisdiction. Unless unanticipated or extraordinary events occur, the Company no
longer intends to file an Idaho general rate case during 2006.
Terms of the lIP A Stipulation
What are the key elements of the Stipulation with lIP A?
If approved by the Commission, PacifiCorp would be allowed to implement a
revised Electric Service Schedule No. 10 designed to recover $1.7 million in
additional annual revenue, representing an average rate increase of 5.0 percent.
This revised tariff schedule would become effective as of January 1, 2007.
addition, the Stipulation provides that the Company will defer a total of
$450,000 of the revenue collected under Schedule No. 10 between May 1, 2007
and
September 30, 2007, and refund the total , spread ratably to participants in the
Irrigation Load Control Credit Rider program. The total refund would be paid
no later than December 31 , 2007. The net effect on all Schedule 10 customers
would be an average increase of 3.7 percent in 2007. The signed Stipulation is
included in this application as Exhibit 5.
What is the purpose of the $450,000 refund to participants in the load control
program?
The refund to program participants, which is subject to Commission approval of
the Stipulation, is designed to be an incentive, encouraging additional
Larsen, Di - 8PacifiCorp
participation in the load control program during the 2007 irrigation season. The
refund is in addition to the Load Control Service Credit provided to program
participants under Schedule No. 72.
Were any other considerations given to the Irrigation Load Control Credit
Rider program?
Yes. In accordance with the terms of the Stipulation , the Company agreed to
allow the Load Control Service Credit amount currently in effect for the 2006
irrigation season to remain in effect for the 2007 irrigation season. All other
terms and conditions of the program would remain unchanged.
The Company also agreed to meet with lIP A and other interested parties
prior to November 1, 2006 to study alternatives for evaluating the curtailment
product provided by the irrigators to PacifiCorp.
What is the purpose of those meetings?
The parties will meet and study the load characteristics of interruptible irrigation
customers and their potential impact on cost allocation to both irrigators and other
customer classes. The parties will also evaluate the inclusion of the load control
program in the Company s Integrated Resource Planning process. If the meetings
result in agreement on an alternative method for valuing or structuring the load
control program, such agreement would be reflected in the Company s next
general rate case filing in Idaho.
Impact on the Public Interest
Is this application and Stipulation with lIP A in the public interest?
Yes. The Company submits that the Stipulation and the proposed tariff changes
Larsen, Di - 9PacifiCorp
that accompany this application are reasonable and in the public interest, for a
number of reasons including the following:
The Stipulation allows for a modest 3.7 percent average price impact on
irrigation customers in 2007, moving the class closer to its cost of service
in a year when the Bonneville Power Administration rate ("BP A") credits
passed on to PacifiCorp s irrigation customers will be significantly
reduced. In addition, when comparing PacifiCorp s irrigation rates to
those of other utilities, PacifiCorp s Idaho irrigation customers will
continue to pay some of the lowest electric rates in the nation.
Based on a comparison of the commercial rates of other utilities
across the nation and PacifiCorp s Idaho irrigation rates, and including the
effects of both the proposed increase to Schedule 10 along with the
upcoming changes to the BPA credit in 2007 , PacifiCorp s average Idaho
irrigation price would be ranked third lowest in the nation out of 177
utilities ranked in the most recent Edison Electric Institute Typical Bills
Survey (Winter 2006). This information supports the reasonableness of
the proposed rate increase.
The proposed rate increase to Schedules 10 400 and 401 enhances the
Company s ability to continue to safely and reliably meet the electrical
service needs of customers in Idaho while leaving the rates ofthe majority
of the Company s Idaho customers unchanged. Given that the Company
normalized results of operation suggest that an increase of$19.35 million
would be necessary to achieve a reasonable rate of return, there is little, if
Larsen, Di - 10PacifiCorp
any, risk that an over-earnings situation could result from approving the
requested $8.25 million increase.
Approval of the Stipulation and the separate applications regarding the
Monsanto and Nu- West special contracts, would mitigate the concerns
regarding cost of service and disparity between customer classes identified
in Case No. PAC- 05-01.
The Stipulation provides for meaningful evaluation of the Irrigation Load
Control Credit Rider Program. Such discussions promote communication
and understanding among participants as enhancements to current
regulatory practices are explored.
Approval of the Stipulation and the separate applications regarding the
Monsanto and Nu- West special contracts would avoid a time-consuming
and costly general rate case, achieve regulatory efficiency, and promote
constructive issue resolution between the Company and its customers.
What action is the Company proposing that the Commission take with
respect to this application and Stipulation?
For the reasons stated above, the Company and the Stipulation Party submit that
the Stipulation is reasonable and in the public interest and that its terms
conditions produce rates that are just and reasonable. The Company therefore
recommends that the Commission adopt the Stipulation in its entirety to resolve
the issues in this proceeding and that the terms of the Stipulation go into effect
January 1 , 2007. The Company also recommends that the Commission approve
the separate applications for approval ofthe changes to the Monsanto and
Larsen, Di - 11PacifiCorp
Nu-West special contract rates, and correspondingly approve the revised Schedule
Nos. 10, 400 and 401 included in this application.
Does this conclude your testimony?
Yes.
Larsen, Di - 12PacifiCorp
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Witness: Jeffrey K. Larsen
, ,
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
P ACIFICORP
Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen
Revenue Requirement
June 2006
PacifiCorpExhibit No.
THIS EXHIBIT ISVOLUMINOUS AND
PROVIDED UNDERSEPARATE COVER
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
PACIFICORP
Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen
Cost of Service SummaryCost of Service Detail
. June 2006
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tree
t & A
rea
Llah
tino
3187
3320
.82%
/3.4
258
5,66
371
064
7105
454,
946
44,7
5879
026
6,93
083
,75%
Tra
ffic
Sio
nals
1650
218
,63%
801
566
027
386
543
280
12,7
0116
.37%
Sna
ce H
eatln
!:l59
3 99
614
.55%
538,
107
358,
743
5195
611
5148
9595
2664
1558
8941
%
Gen
eral
Ser
vice
- S
mal
l10
,040
,577
13.9
2%21
5553
5167
551
755 197
681
032
519,
634
92,1
3918
25, 0
2422
%
SPC
Contract 1
3977
,384
05%
4517
,014
889,
884
562,
677
55,8
5269
279
0953
963
013
.57%
SPC
Con
trac
t 241
,496
725
13%
10.
836,
127
48863 780
6824
220
62,5
1144
882 167
1433
9402
34.5
6%
Tot
alS
tate
of I
daho
-16
275
633
909
%18
2,11
2,20
912
3,82
9,58
217
,618
945
34,1
63,4
7650
1,57
499
863
219
,355
,870
11,8
9%
Foot
note
s:C
olum
n C
: Ann
ual r
even
ues
base
d on
9-2
005,
Col
umn
D: C
alcu
late
d R
etum
on
Rat
ebas
e pe
r 9-
2005
Em
bedd
ed C
ost o
f Ser
vice
Stu
dy
Col
umn
E: R
ate
of R
etum
Ind
ex, R
ate
of r
etum
by
rate
sch
edul
e, d
ivid
ed b
y Id
aho
Juri
sdic
tion
s no
rmal
ized
rat
e of
ret
um,
Col
umn
F: C
alcu
late
d Fu
ll C
ost o
f Se
rvic
e at
Jur
isdi
ctio
nal R
ate
of R
etum
per
the
9.20
05 E
mbe
dded
CO
S S
tudy
Col
umn
G: C
alcu
late
d G
ener
atio
n C
ost o
f Se
rvic
e at
Jur
isdi
ctio
nal R
ate
of R
etum
per
the
9-20
05 E
mbe
dded
CO
S S
tudy
,
Col
umn
H: C
alcu
late
d T
rans
mis
sion
Cos
t of
Serv
ice
at J
uris
dict
iona
l Rat
e of
Ret
um p
er th
e 9-
2005
Em
bedd
ed C
OS
Stud
y,
Col
umn
I: C
alcu
late
d D
istr
ibut
ion
Cos
t of
Serv
ice
at J
uris
dict
iona
l Rat
e of
Ret
um p
er th
e 9-
2005
Em
bedd
ed C
OS
Stu
dy,
Col
umn
J: C
alcu
late
d R
etai
l Cos
t of
Ser
vice
at J
uris
dict
iona
l Rat
e of
Ret
um p
er th
e 9-
2005
Em
bedd
ed C
OS
Stu
dy,
Col
umn
K: C
alcu
late
d M
isc,
Dis
trib
utio
n C
ost o
f Ser
vice
at J
uris
dict
iona
l Rat
e of
Ret
um p
er th
e 9-
2005
Em
bedd
ed C
OS
Stud
y,
Col
umn
L: I
ncre
ase
or D
ecre
ase
Req
uire
d to
Mov
e F
rom
Ann
ual R
even
ue to
Ful
l Cos
t of S
ervi
ce D
olla
rs,
Col
umn
M: I
ncre
ase
or D
ecre
ase
Req
uire
d to
Mov
e Fr
om A
nnua
l Rev
enue
to F
ull C
ost o
f Se
rvic
e Pe
rcen
t.
::;: (
)
tT1
"0;J
:o- ~ ~
~gjC
'5~ Z
;:'.'
()
;; 0
Z,a
.....' "
"""'
" N
~ ;:
;'2
'" ' ""
, tT1"
r-O
N~ 0-.0
'"
' .....
....
Page 2
, dcl
flCor
pC
ost O
f Se
rvic
e B
y R
ate
Sche
dule
. All
Func
tions
Sta
te o
f Ida
hoM
SP P
roto
col
12 M
onth
s E
ndin
g Se
ptem
ber
2005
Idah
oG
ener
al S
rvG
ener
al S
rvG
ener
al S
rvS
I. &
Are
a Lg
tSp
ace
Gen
eral
Srv
Jurl
sdld
lon
Res
iden
tial
Res
iden
tial
Larg
e P
ower
Med
Vol
tage
Hig
h V
ofia
geIr
riga
tion
Sche
dule
sT
raffi
c S
gnls
Hea
ting
Sm
all P
ower
DE
SCR
IPT
ISc
hedu
le I
Sch
edul
e 36
Sch
edul
e 6
Sch
edul
e 8
Sch
edul
e 9
Sch
edul
e 10
7 II 12
Sch
edul
e 19
Ope
ratin
g R
even
ues
270,
993,
938
40.8
21.0
4930
.752
885
30.6
15.9
4021
9,37
651
082
827
9.85
438
8.56
722
.994
921
oUiO
879
374
196.
021
82,8
0559
2
Ope
ratin
g E
xpen
ses
Ope
ratio
n &
Mai
nten
ance
Exp
ense
s20
6.77
4.86
727
,209
,031
21.3
59.1
1921
.907
.306
163
445
331.
001
39.8
04.4
0245
4.86
315
760
7.38
857
2.37
384
6.96
250
4.81
9
Dep
reci
atio
n E
xpen
se22
.711
585
536.
545
715.
975
476
815
18.0
3253
1.02
146
4.13
867
,664
614
71.0
331,
241
474
492,
289
094,
986
Am
ortiz
atio
n E
xpen
se58
4.37
160
0,85
843
587
437
4,59
488
683
978
8.58
267
130
110
.920
195.
612
80.1
3600
0,29
7
Tax
es O
ther
Tha
n In
com
e77
2.08
778
2.61
859
3.15
551
894
371
110
3,26
519
4.06
010
.821
358
14.9
6526
9,24
996
.350
186.
592
Inco
me
Tax
es -
Fed
eral
860.
920
694.
094
532.
076
518
784
810
137,
255
993.
471
574
352
14.6
2323
8.37
212
7.51
259
399
6
Inco
me
Tax
es -
Sta
te76
3.89
810
8.60
738
481
.573
599
21,6
5615
573
501
82,
298
359
20.1
1025
1.50
4
Inco
me
Tax
e. D
eler
red
515.
881
128
483
123,
416
171.
704
1,29
757
.582
249.
981
(801
)49
157
,281
52,6
1967
173
4
Inve
stm
ent T
ax C
redf
i AdJ
(778
990)
(119
,575
)(9
2.63
4)(8
5,00
9)(6
14)
(18
366)
(187
.808
)(1
.492
)(5
5)42
8)(4
2,21
1)(1
7,13
1)(2
11.8
67)
MI.c
Rev
enue
. & E
xpen
.e(2
25.8
61)
(20.
157)
(17.
702)
(28.
163)
(198
)(7
,989
)(4
2.31
0)(8
4)(1
4)(7
02)
(10.
057)
(7,2
79)
(93.
006)
Tot
al O
pera
ting
Exp
ense
.24
397
883
881
850
473
288
383
854
619
278
67,
242
045
254
66.
872
258
755
945
269
156
899
905
8
Ope
ratin
g R
even
ue F
or R
etur
n27
.015
.000
702.
545
020,
222
87'8
.393
26.6
081,
288,
553
859.
403
(177
.888
)16
119
887
331
9,92
250
4.45
3(1
.393
464)
Rat
e B
ase:
Ele
ctri
c Pl
ant I
n Se
rvic
e85
8.85
8.09
013
4.13
754
810
2.81
8.04
193
.135
,808
887,
350
20,2
7'8.
328
203.
731,
245
738.
786
62,1
8587
2.09
3oU
i.781
.004
18.8
78.4
5923
3.85
8.15
2
Pla
nt H
eld
For
Fut
ure
Use
71.3
8082
680
337
148
012
,214
202
846
377
28.3
45
Ele
ctrt
c Pl
ant A
cqul
.filo
n A
dj59
0.78
784
4.84
653
3.43
481
340
057
118
5.34
203
0.93
338
533
086
124
2.08
218
8.17
014
8.85
0
Nuc
lear
Fue
lPr
epay
men
t.19
327
7.85
820
1,24
519
0,20
537
144
,483
398.
372
331
135
480
94.5
8541
.130
513.
058
Fue
l Sto
ck39
888
938
4.14
432
9,19
535
0.98
164
511
9.50
354
8.13
881
322
380
313
5.44
511
5.71
741
7,28
3
Mat
eria
ls &
Sup
pile
. 78
1,27
788
8.48
070
0.88
974
2,05
347
020
4.05
634
7,54
08,
249
425
20.5
4831
7.18
618
8,29
938
2.14
1
Mis
e D
eler
red
Deb
fis05
8.65
035
3,12
028
898
834
1,25
259
110
8.88
8oU
i7.15
482
218
049
112
8.78
299
.886
1,24
9.49
7
Ca.
h W
orki
ng C
apl1
al87
8.32
541
3,20
831
5.16
930
5,98
82,
298
7'8.
543
603.
197
12.3
0820
980
314
3,20
863
691
8.95
7
Wea
ther
izat
ion
Loa
n.74
9,21
411
4.01
841
9.54
510
865
617
505
241
8.73
460
.846
105
12.5
4161
3,26
2
Mis
cella
neou
. Rat
e B
a..
802.
809
89.7
7078
,542
85.8
3484
213
214
3.82
145
734
462
125
,203
317,
294
Tot
al R
ate
Bas
e A
ddfi
lon.
888.
943.
393
140
803
108
807
832
881
727
887
167
049
787
208
898
148
826
116
65.6
5675
774
348
,492
.981
19,5
9096
524
2.81
4,oU
i7
oUi
Rat
e B
ase
Ded
udlo
ns:
Acc
um P
rovI
.lon
For
Dep
reda
tion
(342
.708
.824
)(5
371
1,20
7)(4
1.31
5,88
8)(3
7,20
359
9)(2
8413
9)(8
.081
.984
)(8
105
4.92
0)(7
72.0
36)
(24
645)
088.
779)
(18.
765
407)
496.
319)
(92,
969
702)
Acc
um P
rovI
.lon
For _I
latlo
n(1
9,28
8,03
0)(3
,992
.128
)(2
.825
,471
)(1
,859
,084
)(1
308
3)(4
02.0
87)
124,
372)
(60,
241)
153)
(57.
480)
(1.1
54,2
95)
(371
.154
)(4
.604
541)
Acc
um D
eler
red
Inco
me
Tax
e.(7
6,08
712
7)(1
1,87
8,52
9)(9
.315
,242
)(8
,382
,258
)(5
8,79
7)(1
,870
.373
)(1
9,29
8.42
8)(1
30.5
38)
(5.3
13)
(240
.308
)(4
,258
921)
(1.5
59.8
87)
(19,
211.
735)
Una
mor
tized
ITC
(83,
279)
719)
(7.5
28)
(6,9
08)
(50)
(1.4
91)
(15,
254)
(116
)(4
)(1
97)
433)
(1.3
89)
(17.
190)
Cus
tom
er A
dvan
ce F
or C
onst
rudl
on(1
94.1
45)
(32.
739)
(23.
636)
(48
844)
(37)
(5.5
42)
(49.
476)
(2.0
35)
(31.
835)
Cus
tom
er S
ervi
ce D
epos
lls(4
88,2
94)
(184
.928
)(1
12.6
36)
(32.
792)
(55
642)
(115
)(1
.432
)(9
854
7)
Mis
e R
ate
Bas
e D
edud
lons
636.
009)
(922
.360
)(7
45,1
41)
(733
.475
)35
4)(1
92,9
58)
(1.4
43.8
89)
(9.7
37)
(oU
i1)
(20,
603)
(331
,726
)(1
81,0
76)
(2,2
49,2
30)
Tot
al R
ate
Bas
e D
edud
lon.
445
841
808
7083
1813
5414
6 04
448 48941
3424
4010
3344
1410
8 03
9 97
887
2783
/32
7761
/1,3
90.8
341
124.
841.
8831
(9.8
09.8
251
119
052
398
Tol
el R
ate
Bas
e44
3.30
1,58
543
899
052
.881
.788
47.8
34.7
8734
472
771
537
410
2.85
8.17
085
3.33
433
.080
366.
910
23.6
51.0
1898
1.34
012
3.76
2.08
8
Cal
cula
ted
Ret
urn
On
Rat
e B
a..
09%
11.0
9%53
%82
%72
%11
,84%
71%
20.8
2%18
,63%
14,5
5%13
,92%
05%
13%
Ret
urn
On
Rat
e B
ase
A J
url.d
ldlo
n.1
A09
%T
otal
Ope
ratin
g E
xpen
se.
Rev
enue
Cre
dfis
Tot
al R
even
ue R
equi
rem
ent.
182.
758.
339
24.5
45.9
0718
.587
,252
16.9
03.9
8312
5.75
933
5.45
334
.531
.150
548,
404
12,3
5647
8.42
317
4.14
708
1.19
843
2.30
6
Cia
.. R
even
ue16
2.75
8.33
928
.016
,808
20.3
98,2
4018
.880
,491
131.
359
951.
007
34.1
34.5
1731
8.73
316
.502
593.
996
10.0
40.5
7797
7.38
441
.496
.725
Incr
ease
t (D
ecre
ase)
Req
uire
d to
Ear
n E
qual
Rat
es 0
1 R
etur
n(3
.470
.901
)(1
.810
.988
)(1
.778
,508
)(5
.600
)(6
15.5
54)
396.
633
229,
671
1oU
i)(1
1557
3)11
.866
430)
103.
814
935.
561
Per
cent
%00
%12
.39%
-11.8
8%51
%04
,26%
12,4
3%16
%72
.06%
25,1
2%19
,46%
18,5
9%61
%21
.53%
Ret
urn
On
Rat
e B
ase
4t T
arge
t RO
R80
%
Tot
al O
pera
ting
Exp
ense
s A
djus
ted
lor
Tax
e.R
even
ue C
redf
is
Tot
al T
arge
t Rev
enue
Req
uire
men
ts18
211
2.20
957
7.82
188
662
298
386
014
081
180
331
901
351
258
566
380
153
810
721
555
351
7.01
483
612
7
Cla
ss R
even
ue16
2756
339
2801
6606
2039
8240
1868
0491
1313
594951 007
3413
4 51
731
8733
1650
259
3996
10040 577
3977
364
41 4
9672
5
Incr
ease
(D
ecre
ase)
Req
uire
d to
Ear
n T
arge
t Rat
e 01
Ret
urn
355
870
(438
987)
486
362
303
369
9.45
2(1
4768
8)87
699
526
693
070
11(5
586
91(8
2502
4)53
963
033
940
2
Per
cent
%11
,89%
57'
39%
62%
20%
98'1
014
,29%
83,7
5%16
,37%
9.41
%22
'10
13,5
7%34
,56%
Paci
fiC
orp
Pag
e 3.
Cla
ss S
umm
ary
Exh
ibit
No,
2 p
age
3 of
3C
AS
E N
O, P
AC
-O
6-
Witn
ess
Jeff
rev
K, L
arse
n
iq. ') Iif,
Case No. P Ac,.Exhibit No.Witness: Jeffrey K. Larsen
iSS!
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION '
P ACIFICORP
Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen
Schedule 10
Temperature Adjusted Billing Determinants12 Months Ending September 2005
June 2006
ROCKY MOUNT A
1 O
WE
RSt
ate
of I
daho
Tem
pera
ture
Adj
uste
d B
illin
g D
eter
min
ants
12 M
onth
s E
ndin
g Se
ptem
ber
2005
Act
ual
Uni
ts
(T28
)Pr
esen
tPr
ice
Pres
ent
Rev
enue
Dol
lars
(T28
)Pr
opos
edPr
ice
Prop
osed
Rev
enue
Dol
lars
SCH
ED
UL
E N
O.
1 0
Irri
gatio
n
Smal
l Cus
tom
er C
harg
e (S
easo
n)20
6$1
0.$2
243
5$1
1.00
$24
266
Lar
ge C
usto
mer
Cha
rge
(Sea
son)
904
$30.
33$4
2170
8$3
2.$4
4492
8
Post
-Sea
son
Cus
tom
er C
harg
e11
,459
$16.
$185
292
$17.
$194
803
Tot
al C
usto
mer
Cha
rges
27,5
69
All
kW (
June
1 -
Sep
t 15)
289
312
$4.
221
714
$4.
518
255
Firs
t 25
000
kWh
(Jun
e 1
- S
ept 1
5)17
858
757
27174 ~
$10
210
566
0331 ~
$10
774
367
Next 225
000
kWh
(Jun
e 1
- S
ept 1
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i) ;' ,-..i)~)L.; c,UT IL !T!ES Co!'ji' jiSSIOH Case No. PAC- O6-Q!j
Exhibit No.Witness: JeffreyK. Larsen
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
:()
ACIFICORP
Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen
Schedule Nos. 400, and 401
Legislative and Clean Formats
June 2006 /
utahH IJII Jlr
I.P. C. No. 28
First Revised Sheet No. B.Cancelin Original Sheet No. B.
ELECTRIC SERVICE SCHEDULES - ContinuedSheetNo.
ScheduleNo. Class of Service
135
155
Net Metering Service
Agricultural Energy Services - Optional for Qualifying Customers
135.1 - 135.
155.1 - 155.
191 Customer Efficiency Services Rate Adjustment 191
300
I 400
Regulation Charges
Special Contract
300. 1 - 300.4
400. 1 - 400.
401 Special Contract 401
Schedule numbers not listed are not currently used.* These schedules are not available to new customers or premises.
I Submitted Under Oreler N€). 2997GPAC- O6-
I ISSUED: Marek 29 , 2996June 21. 2006 EFFECTIVE: 1\pri119 , 2QOeJanuarv 1. 2007
utah0_11'
C. No. 28
First Revised Sheet No. B.Canceling Original Sheet No. B.
ELECTRIC SERVICE SCHEDULES - ContinuedSchedule
No. Class of Service
SheetNo.
135
155
Net Metering Service
Agricultural Energy Services - Optional for Qualifying Customers
135. 1 - 135.
155.1 - 155.
191 Customer Efficiency Services Rate Adjustment 191
300
400
Regulation Charges
Special Contract
300. 1 - 300.4
400. 1 - 400.
401 Special Contract 401
Schedule numbers not listed are not currently used.* These schedules are not available to new customers or premises.
Submitted Under P AC- 06-
ISSUED: June 21 , 2006 EFFECTIVE: January 1 2007
ulahHLur
Co No. 28
Fiftlt-Sixth Revised Sheet No. 10.
Canceling Fauth Fifth Revised Sheet No. 10.
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO.
STATE OF IDAHO
Irrigation and Soil Drainage Pumping Power Service
AVAILABILITY: At any point on the Company s interconnected system where there are facilitiesof adequate capacity.
APPLICATION: This Schedule is for alternating current, single or three-phase electric service
supplied at the Company s availab1e voltage through a single point of delivery for service to motors on
pumps and machinery used for irrigation and soil drainage.
IRRIGATION SEASON AND POST-SEASON SERVICE: The Irrigation Season is from June 1
to September 15 each year. Service for post-season pumping may be taken by the same Customer at the
same point of delivery and through the same facilities used for supplying regular irrigation pumping serviceduring months from September 16 to the following May 31.
MONTHLY BILL:
Irri2ation Season RateCustomer Service Charge:
Small Pumping Operations:15 horsepower or less total connected horsepowerserved through one service connection -
$~
illQ..per Customer
Large Pumping Operations:16 horsepower or more total connected horsepowerserved through one service connection - ~32. per Customer
(Continued)
I Submitted Under Order )10. 29934PAC- O6-
I ISSUED: June 21. 2006J1:IRe 7, 2992 EFFECTIVE: January 1. 2007JI:lnia 8 , 2002
BlahRLItlV
C. No. 28
Sixth Revised Sheet No. 10.Canceling Fifth Revised Sheet No. 10.
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 10
STATE OF IDAHO
Irrigation and Soil Drainage Pumping Power Service
AVAILABILITY: At any point on the Company s interconnected system where there are facilitiesof adequate capacity.
APPLICATION: This Schedule is for alternating current, single or three-phase electric service
supplied at the Company s available voltage through a single point of delivery for service to motors onpumps and machinery used for irrigation and soil drainage.
IRRIGATION SEASON AND POST-SEASON SERVICE: The Irrigation Season is from June 1to September 15 each year. Service for post-season pumping may be taken by the same Customer at thesame point of delivery and through the same facilities used for supplying regular irrigation pumping serviceduring months from September 16 to the following May 31.
MONTHLY BILL:
Irrie:ation Season RateCustomer Service Charge:
Small Pumping Operations:15 horsepower or less total connected horsepowerserved through one service connection - $11.00 per Customer
Large Pumping Operations:16 horsepower or more total connected horsepowerserved through one service connection - $32.00 per Customer
(Continued)
Submitted Under PAC- 06-
ISSUED: June 21, 2006 EFFECTIVE: January 1 , 2007
ulahHLII!V
C. No. 28
Seventh Revised Sheet No. 10.Canceling Sixth Revised Sheet No. 10.
ELECTRIC SERVICE SCHEDULE No. 10 - Continued
MONTHLY BILL: (Continued)
Power Rate: 4:()M. per kW for all kW
Energy Rate: 71746.0331 ~ per kWh for first 25 000 kWh29414.9799~ per kWh for the next 225 000 kWh
0155 ~ per kWh for all additional kWh
Power Factor: This rate is based on the Customer maintaining at all times a power factorof 85% lagging, or higher, as determined by measurement. If the average power factor isfound to be less than 85% lagging, the power as recorded by the Company s meter will be
increased by 3/4 of 1 % for every 1 % that the power factor is less than 85%.
Minimum: The Customer Service Charge.
Post-Season RateCustomer Service Charge:Energy Rate:
17 . per Customer00~O4.742g~ per kWh for all kWh
Minimum: The Customer Service Charge.
ADroSTMENTS: All monthly bills shall be adjusted in accordance with Schedules 34,-9J- and 94.
PAYMENT: All monthly service billings will be due and payable when rendered and will beconsidered delinquent if not paid within fifteen (15) days. An advance payment may be required of theCustomer by the Company in accordance with Electric Service Regulation No. 9. An advance may berequired under any of the following conditions:
(1) the Customer failed to pay all amounts owed to the Company when due andpayable;
(2) the Customer paid an advance the previous season that did not adequately coverbills for the entire season and the Customer failed to pay any balance owing by thedue date of the final billing issued for the season.
(Continued)
I Submitted Under Order )18. 29Q34PAC- O6-
I ISSUED: June 21. 2006J1:IRe 7, 2992 EFFECTIVE: January 1. 2007JI:IHe 8 , 2002
BlahOlAV
c. No. 28
Seventh Revised Sheet No. 10.Canceling Sixth Revised Sheet No. 10.
ELECTRIC SERVICE SCHEDULE No. 10 - Continued
MONTHLY BILL: (Continued)
Power Rate: $4.28 per kW for all kW
Energy Rate: 0331 rt per kWh for first 25 000 kWh4.2944rt per kWh for the next 225 000 kWh
0155rt per kWh for all additional kWh
Power Factor: This rate is based on the Customer maintaining at all times a power factorof 85% lagging, or higher, as determined by measurement. If the average power factor isfound to be less than 85% lagging, the power as recorded by the Company s meter will be
increased by 3/4 of 1 % for every 1% that the power factor is less than 85%.
Minimum: The Customer Service Charge.
Post-Season RateCustomer Service Charge:Energy Rate:
$17.00 per Customer0040rt per kWh for all kWh
Minimum: The Customer Service Charge.
ADJUSTMENTS: All monthly bills shall be adjusted in accordance with Schedules 34 and 94.
PAYMENT: All monthly service billings will be due and payable when rendered and will beconsidered delinquent if not paid within fifteen (15) days. An advance payment may be required of theCustomer by the Company in accordance with Electric Service Regulation No. 9. An advance may berequired under any of the following conditions:
(1) the Customer failed to pay all amounts owed to the Company when due andpayable;
(2) the Customer paid an advance the previous season that did not adequately coverbills for the entire season and the Customer failed to pay any balance owing by thedue date of the final billing issued for the season.
(Continued)
Submitted Under P AC- 06-
ISSUED: June 21 , 2006 EFFECTIVE: January 1 , 2007
ulahA_V
C. No. 28
FaHrth Fifth Revised Sheet No. 400J.Canceling Third Fourth Sheet No. 400.1
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 400
STATE OF IDAHO
Special Contract
PURPOSE: The purpose of this Schedule is to describe generally the terms and conditionsprovided by the Company pursuant to a Special Contract approved by the Idaho Public UtilityCommission.
MaRsRRta CamBRR"gfleeial CeRtraet Datea JafH:!ary 1 , 2003
Special Contract Dated May 18. 2006.
A vailabilitv
This schedule is available for firm and interruptible retail service of electric power and energydelivered for all service reQuired on the Customer s premises by customers contracting for not lessthan 150.000 kW as of Mav 18. 2006 and as the ofleratieRs ef MORsaRto COFRflaRY s faeilitiec
leeated at geaR SpriRgs, raabo, as provided in the Electric Service Agreement between the two
parties.
TermInitial term Serviee through December 31 2009. then subject to annual renewals. Any electric
service PacifiCorp provides to the CustomerMORsaRto after the Termination Date shall be on termsand conditions and at prices in accordance with Electric Service Schedule No. 400 or its successorthen in effect until such time as the Commission establishes or approves other terms and conditionand pricesto he estaelishea ar aflflra',ea BY the CeFRmissieR.
Monthlv ChargeFirm aRe lRterrHstiBle Power and EnergyFirm Energy Charge: 19 .40~ mills per kilowatt hourCustomer Charge: $ 000~ per Billing PeriodFirm Demand Charge: $ 10.0OY+ per kW
Submitted unde i\meRaea L'\(h'iee Letter No. 0(; 0 IP AC- 06-
OrigiRally SYBmitted URder L dviee Letter 03
I ISSUED: June 21. 2006JanHal)' 2(; , 20(:)(; EFFECTIVE: January 1. 2007 FeDTl:lary 13 , 2006
ulahH8LI!!V
C. No. 28Fauth Fifth Revised Sheet No. 400:1
Canceling Third Fourth Sheet No. 400.
Interruptible Power and EnergyInterruptible Energy Charge: M-.19.40';+ mills per kilowatt hourInterruptible Demand Charge: $4.09 fler kWFirm Demand Charge minus Interruptible
Credit
(Continued)
Replacement EneravAdjusted Index Price multiplied by Replacement Energy.
Adjustment: The charges specified in this Section shall be adjusted beginning January 1, 2008 sothat thev equal the Tariff Rates. This shall be the sole and exclusive means of adjustment to the unitcharges contained herein.
Tariff Rates: The Commission approved rates applicable to the Special Contract Customer,including, but not limited to, customer charges, demand charges. energy charges. surcharges. andcredits. as specified in Idaho Electric Service Schedule No. 400 or its successor.
Submitted Under :\-meRdeEi :\dviee Letter Ne. Q~ 9 1 P AC- 06-
OrigiRally SHemitteEi DReier :\dviee Letter 93 9ti
I ISSUED: June 21. 2006JaRHaf)' 2a , 299~ EFFECTIVE: January 1. 2007 FeerHary 13 2006
ulah01..
c. No. 28
Fifth Revised Sheet No. 400.
Canceling Fourth Sheet No. 400.
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 400
STATE OF IDAHO
Special Contract
PURPOSE: The purpose of this Schedule is to describe generally the terms and conditions
provided by the Company pursuant to a Special Contract approved by the Idaho Public UtilityCommission.
Special Contract Dated May 18, 2006.
A vailabilitv
This schedule is available for firm and interruptible retail service of electric power and energy
delivered for all service required on the Customer s premises by customers contracting for not lessthan 150 000 kW as of May 18, 2006 and as provided in the Electric Service Agreement betweenthe two parties.
TermInitial term through December 31 , 2009, then subject to annual renewals. Any electric servicePacifiCorp provides to the Customer after the Termination Date shall be on terms and conditions
and at prices in accordance with Electric Service Schedule No. 400 or its successor then in effectuntil such time as the Commission establishes or approves other terms and condition and prices
Monthlv ChargeFirm Power and EnergyFirm Energy Charge: 19.40 mills per kilowatt hourCustomer Charge: $1 000 per Billing PeriodFinn Demand Charge: $10.00 per kW
Interruptible Power and EnergyInterruptible Energy Charge: 19.40 mills per kilowatt hourInterruptible Demand Charge: Firm Demand Charge minus Interruptible Credit
(Continued)
Submitted Under P AC- 06-
ISSUED: June 21 , 2006 EFFECTIVE: January 1, 2007
utahOBII'
C. No. 28 Original Sheet No. 400.
ELECTRIC SERVICE SCHEDULE NO 400 - Continued
Replacement EnerQV
Adjusted Index Price multiplied by Replacement Energy.
Adjustment: The charges specified in this Section shall be adjusted beginning January 1 2008 so
that they equal the Tariff Rates. This shall be the sole and exclusive means of adjustment to the unitcharges contained herein.
Tariff Rates: The Commission approved rates applicable to the Special Contract Customerincluding, but not limited to, customer charges, demand charges, energy charges, surcharges, and
credits, as specified in Idaho Electric Service Schedule No. 400 or its successor.
Submitted Under P AC- 06-
ISSUED: June 21 , 2006 EFFECTIVE: January 1, 2007
utahLilli'
C. No. 28First Revised Sheet No. 401
Cancelin Original Sheet No. 401
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 401
STATE OF IDAHO
Special Contract
PURPOSE: The purpose of this Schedule is to describe generally the terms and conditionsprovided by the Company pursuant to a Special Contract approved by the Idaho Public UtilityCommission.
Nu-West Industries Inc.Special Contract Dated October 31, 2005.
A vailabilitv
This schedule is available for firm retail service of electric power and energy delivered for theoperations of Nu-West Industries ' facilities located at Soda Springs , Idaho, as provided in the PowerSupply Agreement between the two parties.
TermJanuary 1 2006 through December 31 2010.Monthlv Charge
Customer Charge - $ per MonthDemand Charge - $ per kW -monthEnergy Charge - $ per MWh
HLH Monday through FridayHE0800 to HE2300 MPT
LLH All other hours and Holidays
May - October November - April293.00;282. 293.11.61++:+9 9.37~
23.98~17.99~
19.94~17.99~
Semi-Annual Adjustment: The charges specified in this Section shall be adjusted semi-annuallyeffective July 1 , 2006 and January 1 , 2007 and each July 1 and January 1 thereafter, so that theyequal the tariff rates. This shall be the sole and exclusive means of adjustment to the unit chargescontained herein.
Tariff Rates: The Commission approved rates applicable to Nu-West, including, but not limited tocustomer charges, demand charges, energy charges, surcharges, and credits, as specified in IdahoElectric Service Schedule No. ~4QG or its successor.
Submitted Under PAC- 06- . ffiefu:ied . a-viae Letter )-~o. 96 91
OrigiRally Sl:Ibmittee URGer :\dviee Letter 05 04
I ISSUED: June 21. 2006JaRl:laI)' 26 , 2906 EFFECTIVE: September 1. 2006Febrl:lal)' 13 200(')
BlahH IJII JU'
c. No. 28
First Revised Sheet No. 401
Canceling Original Sheet No. 401
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 401
STATE OF IDAHO
Special Contract
PURPOSE: The purpose of this Schedule is to describe generally the terms and conditionsprovided by the Company pursuant to a Special Contract approved by the Idaho Public UtilityCommission. Nu-West Industries Inc.Special Contract Dated October 31 2005.
A vailabilitv
This schedule is avai1able for firm retail service of electric power and energy delivered for the
operations of Nu-West Industries ' facilities 10cated at Soda Springs , Idaho , as provided in the Power
Supply Agreement between the two parties.
TermJanuary 1 2006 through December 31 , 2010.
Monthlv Charge
Customer Charge - $ per MonthDemand Charge - $ per kW -monthEnergy Charge - $ per MWh
HLH Monday through FridayHE0800 to HE2300 MPT
LLH All other hours and Holidays
Semi-Annual Adjustment: The charges specified in this Section shall be adjusted semi-annuallyeffective July 1, 2006 and January 1 , 2007 and each July 1 and January 1 thereafter, so that they
equal the tariff rates. This shall be the sole and exclusive means of adjustment to the unit chargescontained herein.
May - October November - April$ 293. $ 293.
11.61 9.37
$ 23. 19.
17. 17.
Tariff Rates: The Commission approved rates applicable to Nu-West, including, but not limited to
customer charges, demand charges, energy charges, surcharges, and credits, as specified in Idaho
Electric Service Schedule No. 401 or its successor.
Submitted Under P AC- 06-
ISSUED: June 21 , 2006 EFFECTIVE: September 1 2006
I\!ED
. ," ) \
(, i H)"" I
..~.
t.
- ' " - :" ,'
; Lie Case No. PAC- 06-WI ILl! ItS CDi"H'iiSS!CEkhibitNo. 5
Witness: Jefftey'K. Larsen
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ACIFICORP
Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen
Stipulation
June 2006
, i
PacifiCorpExhibit No, 5 page I of8CASE NO, PAC-E-o6-Witness Jeffi-ey K, Larsen
James M. Van Nostrand, ISB No. 7323STOEL RIVES LLP900 SW Fifth Avenue, Suite 2600Portland, OR 97204Telephone: (503) 294-9679Fax: (503) 220-2480Email: jmvannostrand~stoeI. com
, , ' ,
J ' ,
",
Mark MoenchDean BrockbankRocky Mountain Power201 South Main, Suite 2300Salt Lake City, UT 84111Telephone: (801) 220-4459Fax: (801) 220-3299Email: Mark.Moench~acifiCorp.com
Dean.Brockbank~Paci fi Corp. com
Attorneys for PacifiCorp dbaRocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA'ITER OF THE APPLICATION OF PACIFICORP DBAROCKY MOUNTAIN POWER FORA UTHORITY TO INCREASE ITS SCHEDULE NO. 10 RATES FOR ELECTRIC SERVICE TO ELECTRICCUSTOMERS IN THE STATE OF IDAHO
CASE NO. PAC-E-06-
STIPULA TION
This stipulation ("Stipulation ) is entered into by and between PacifiCorp, doing business
as Rocky Mountain Power ("PacifiCorp" or the "Company ) and the Idaho Irrigation Pumpers
Association, Inc. ("lIP A") (collectively referred to as the "Parties ) as of May 24, 2006.
I. INTRODUCTION
The terms and conditions of this Stipulation are set forth herein, The Parties
agree that this Stipulation represents a fair, just and reasonable compromise of the issues raised
STIPULATION - Page
PacifiCorpExhibit No, 5 page 2 of8CASE NO. PAC- O6-Witness Jeffiey K. Larsen
between the Parties and that this Stipulation is in the public interest. The Parties, therefore
recommend that the Public Utilities Commission ("Commission ) approve the Stipulation and all
of its terms and conditions. Reference IDAP A 31.01. 01.271 , 274.
TI. BACKGROUND
Concurrently with the filing of this Stipulation, PacifiCorp is filing an Application
seeking authority to increase the Company s base rates for electric service under Electric Service
Schedule No. 10 by $1.7 million annually, an average increase of approximately 5%. The
increase in Customer bills will vary by individual customer and actual usage.
In anticipation of filing the Application, representatives ofPacifiCorp and lIP
met several times pursuant to IDAPA 31.01.01.271 and engaged in settlement discussions with a
view toward resolving the issues raised in PacifiCorp s Application.
Based upon the settlement discussions between the Parties, as a compromise of the
positions in this proceeding, and for other consideration as set forth below, the Parties agree to
the following terms:
ill. TERMS OF THE STIPULATION
PacifiCorp shall be allowed to implement a revised Electric Service Schedule No.
, designed to recover $1.7 million in additional annual revenue, representing an aggregate rate
increase of 5%. Such revised tariff schedule shall become effective as of January 1 2007. The
Parties agree to support the attached Exhibit A showing the calculation that reflects the agreed
upon rate increase.
PacifiCorp agrees that it will not adjust the Fixed Monthly Participation Credit
currently in effect under Electric Service Schedule No. 72 until after December 31 , 2007. All
other terms and conditions of the Irrigation Load Control Credit Rider program remain
unchanged.
Beginning May I through September 30, 2007 PacifiCorp agrees to defer $90 000
per month, for a total of$450 OOO, ofthe revenue collected from customers under Electric
STIPULATION - Page 2
PacifiCorpExhibit No, 5 page 3 of8CASE NO, PAC- O6-Witness Jeffrey K, Lars
Service Schedule No. 10, which will then be refunded on a pro rata basis to customers
participating in the Irrigation Load Control Credit Rider program during the 2007 irrigation
season. This one-time refund shall be paid no later than December 31 , 2007. The refund rate
shall equal $450 000 divided by the aggregate Irrigation Load Control Service Credit amount
paid to qualifying customers for the 2007 irrigation season (the "Refund Rate ). Each irrigation
customer s refund shall equal the Refund Rate multiplied by each qualifying customer s total
Irrigation Load Control Service Credit paid during the 2007 irrigation season. For purposes of
example only, in the event that the aggregate Irrigation Load Control Service Credit equals $1
million, then the Refund Rate would equal 0,45. If a particular irrigation customer s Irrigation
Load Control Service Credit equals $1 000, then that irrigation customer s one-time refund
would be $450 ($1 000 x 0.45 = $450).
Similar to Commitment 1-08 made by the Company pursuant to the acquisition of
PacifiCorp by MidAmerican Energy Holdings Company (Docket No. P AC- 05-8), the
Company agrees, prior to November 1 , 2006, to meet with IIP A and other interested parties to
study alternatives for evaluating the curtailment products provided by the irrigators to
PacifiCorp. The Parties also agree to study load data and characteristics of interruptible
.. ,. . '.' , ,
m '.irrigation customers and its impact on cost allocation to both irrigators and other customer
classes. As part of this study effort, the Parties agree to collaborate and set up subsequent
meetings to conclude the evaluation. The Parties will also evaluate and consider what
characteristics would be required for the program to be considered in the Company s Integrated
Resource Planning process. In the event the Parties reach agreement on such alternative(s), the
Company will prepare its next general rate case and corresponding tariff schedules using the
agreed upon methodology.
The Parties agree that this Stipulation represents a compromise of the positions of
the Parties in this proceeding. Other than the above referenced positions and any testimony filed
in support of the approval of this Stipulation, and except to the extent necessary for a Party to
explain before the Commission its own statements and positions with respect to the Stipulation
STIPULATION - Page 3
PacifiCorpExhibit No. 5 page 4 of8CASE NO, PAC- O6-
Witness JefITey K. Larsen
all negotiations relating to this Stipulation shall not be admissible as evidence in this or any other
proceeding regarding this S\Jbject l1la~er.
The Parties submit this Stipulation, Exhibit A, and Exhibit B , the revised Electric
Service Schedule No. 10, to the Commission and recommend approval in its entirety pursuant to
IDAP A 31.01.01.274. The Parties shall support this Stipulation before the Commission, and
neither Party shall appeal any portion of this Stipulation or Order approving the same. If this
Stipulation is challenged by any person not a party to the Stipulation, the Parties to this__n
'....'..'--",. ""- '...'----.'.'."" ---,----_..,-_. ..._....,-,--_..._...,.
.,__nn,.,
.........
, ,n.
Stipulation reserve the right to cross-examine witnesses and put on such case as they deem
appropriate to respond fully to the issues presented, including the right to raise issues that are
incorporated in the settlement embodied in this Stipulation. Notwithstanding this reservation of
rights, the Parties to this Stipulation agree that they will continue to support the Commission
adoption of the terms of this Stipulation.
10. In the event the Commission rejects any part or all of this Stipulation, or imposes
any additional material conditions on approval of this Stipulation, each Party reserves the right
upon written notice to the Commission and the other Parties to this proceeding, within 15 days of
the date of such action by the Commission, to withdraw from this Stipulation. In such case, no
Party shall be bound or prejudiced by the terms of this Stipulation, and each Party shall be
entitled to seek reconsideration of the Commission s order, file testimony as it chooses, cross-
examine witnesses, and do all other things necessary to put on such case as it deems appropriate.
11. The Parties agree that this Stipulation is in the public interest and that all of its
terms and conditions are fair, just and reasonable.
12. No Party shall be bound, benefited or prejudiced by any position asserted in the
negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this
Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly
waived herein. Execution of this Stipulation shall not be deemed to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method , theory or
principle of regulation or cost recovery. No Party shall be deemed to have agreed that any
STIPULATION - Page 4
, -
PacifiCorpExhibit No. 5 page 5 of 8CASE NO. PAC- O6-Witness JeflTey K. Lar;;-
method, theory or principle of regulation or cost recovery employed in arriving at this Stipulation
is appropriate for resolving any issues in any other proceeding in the future. No findings of fact
or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
13. The obligations of the Parties under this Stipulation are subject to the
Commission s approval of this Stipulation in accordance with its terms and conditions and, if
judicial review is sought, upon such approval being upheld on appeal by a court of competent
jurisdiction.
Respectfully submitted this th day of June, 2006.
PacifiCorp
ark oenchAttorneys for PacifiCorp
STIPULATION - Page 5
ric L. OlsenRacine, Olson, Nye, Budge & Bailey, CharteredAttorney for Idaho Irrigation Pumpers
Association, Inc.
Stipulation Exhibit A
SCHEDULE NO. 10lITigation
Small Customer Charge (Season)Large Customer Charge (Season)Post-Season Customer ChargeTotal Customer ChargesAll kW (June I - Sept 15)First 25.000 kWh (June I - Sept 15)NexI225,OOO kWh (June I - Sept 15)All Add' i kWh (June I - Sept 15)All kWh (Sept 16 - May 31)
MetersBase Subtotal
UnbilledBase SubtotalRMA
Base Total
PacifiCorpExhibit No, 5 page 6 of8CASE NO, PAC- 06-Witness JeflTey K. Larsen
ROCKY MOUNTAIN POWERState of Idaho
Temperature Adjusted Billing Detenninants12 Months Ending September 2005
ActoalUnits
(T28)PresentPrice
PresentRevenueDollars
ProposedRevenueDollars
(TIS)Proposed
Price
20613.90411,45927,569
289,312178.587.572243,286,269
24,859,497
86,782,203752
533.515,541
525.000534,040,541
534 040,541
534,040,541
$10. $22,435 $11.00 $24 266
$30. $421.708 $32. $444,928$16. $185,292 $17. $194.803
$4. $5,221.714 $4. $5,518.255
7174 ~ $10,210,566 0331 ~ $10.774.367
0700 ~ $9,901,751 2944 ~ $10,447.6868580 ~ $710,484 0155 ~ $749.6387428 ~ $4, 115,906 0040 ~ $4.342.581
$30,789,856 $32,496,524
($125.000) ($125,000)$30,664,856 $32.371.524
6497 ~ $3,469.661 6497 $3,469,661
$34, 134.517 $35.841, 185
Price Increase $1,706,668% Increase 00%
% Chg inRates
5.5%
68%5.52%
5.51%
5.51%5.51%
Stipulation Exhibit B
PacifiCorpExhibit No, 5 page 7 of8CASE NO, PAC-E-O6-Witness Jeffiey K. Larsen
utahR 8L I!IIr
Revised Sheet No. 10.Revised Sheet No. 10.P . C. No. 28 Canceling
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 10
STATE OF IDAHO
Irrigation and Soil Drainage Pumping Power Service
AVAILABILITY: At any point on the Company s interconnected system where there are facilitiesof adequate capacity.
APPLICATION: This Schedule is for alternating current, single or three-phase electric servicesupplied at the Company s available voltage through a single point of delivery for service to motors onpumps and machinery used for irrigation and soil drainage.
IRRIGATION SEASON AND POST-SEASON SERVICE: The Irrigation Season is from June Ito September 15 each year. Service for post-season pumping may be taken by the same Customer at thesame point of delivery and through the same facilities used for supplying regular irrigation pumping serviceduring months from September 16 to the following May 31.
MONTHLY BILL:
Irrieation Season RateCustomer Service Charge:
Small Pumping Operations:15 horsepower or less total connected horsepowerserved through one service connection - $11.00 per Customer
Large Pumping Operations:16 horsepower or more total connected horsepowerserved through one service connection - $32.00 per Customer
(Continued)
Submitted Under Order No. XXXXX
ISSUED: -' 2006 EFFECTIVE: January 1 , 2007
Stipulation Exhibit B
PacifiCorpExhibit No. 5 page 8 of8CASE NO, PAC- O6-Witness JeffTey K. Larsen
Blah!r IY!J'
Revised Sheet No. 10.Revised Sheet No. 10.C. No. 28 Canceling
ELECTRIC SERVICE SCHEDULE No. 10 - Continued
MONTHLY BILL: (Continued)
Power Rate: $4.28 per kW for all kW
Energy Rate: 0331 ~ per kWh for first 25 000 kWh2944~ per kWh for the next 225 000 kWh0155~ per kWh for all additional kWh
Power Factor: This rate is based on the Customer maintaining at all times a power factorof 85% lagging, or higher, as determined by measurement. If the average power factor isfound to be less than 85% lagging, the power as recorded by the Company s meter will beincreased by 3/4 of 1% for every 1 % that the power factor is less than 85%.
Minimum: T\1e Customer Service Charge.
Post-Season RateCustomer Service Charge:Energy Rate:
$17.00 per Customer0040~ per kWh for all kWh
Minimum: The Customer Service Charge.
ADJUSTMENTS: All monthly bills shall be adjusted in accordance with Schedules 34 and 94.
PAYMENT: All monthly service billings will be due and payable when rendered and will beconsidered delinquent if not paid within fifteen (15) days. An advance payment may be required of theCustomer by the Company in accordance with Electric Service Regulation No. 9. An advance may berequired under any of the following conditions:
(I) the Customer failed to pay all amounts owed to the Company when due andpayable;
(2) the Customer paid an advance the previous season that did not adequately coverbills for the entire season and the Customer failed to pay any balance owing by thedue date of the final billing issued for the season.
(Continued)
Submitted Under Order No. XXXXX
ISSUED: -' 2006 EFFECTIVE: January I , 2007
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