, direct testimony of jeffrey k. larsen nos. 10, 400, and 401

43
ii ,,- j ' /cD 10: 16 UrfL;~~j;:- c' 0 (OJ;.,-:!, 1('111::,'-:' 11"' V0iUf'j BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF PACIFICORP DBA ROCKY MOUNTAIN POWER' FOR APPROVAL TO REVISE ELECTRIC SERVICE SCHEDULE NOS. 10, 400, AND 401 CASE NO. PAC-E- , Direct Testimony of Jeffrey K. Larsen ACIFICORP June 2006

Upload: others

Post on 20-Feb-2022

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

ii

,,-j '

/cD

10: 16

UrfL;~~j;:-c' 0 (OJ;.,-:!,

1('111::,'-:' 11"'V0iUf'j

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

Page 2: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 3: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 4: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 5: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 6: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 7: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 8: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 9: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 10: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 11: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 12: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 13: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 14: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

.. 'lED

, ..

'-.. .o

;~ ;

In. 1"'" I

!'

'H~;~

;j -",

I;~L it,

.. ..

Case No. PAC-.. -0Qil I! It '- j l'",;j"' 'c..: 1C"

Exhi tNo.'"-' I f '..J V " I, oJ

Witness: Jeffrey K. Larsen

, ,

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

P ACIFICORP

Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen

Revenue Requirement

June 2006

Page 15: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

PacifiCorpExhibit No.

THIS EXHIBIT ISVOLUMINOUS AND

PROVIDED UNDERSEPARATE COVER

Page 16: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

i\/ED

, y';..

t..

:);

nr/ in.

.... ,-

I '-Hljb.

! '7,' (- JLU Q~~Jie. PAC- 06dUlrLII'r- c~ (t:t~"'Li.:; f'l'o.T""

,~-

'-J:J.lIjlU 'J/,i&"~j\ . Witness: Jeffrey K. Larsen

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

PACIFICORP

Exhibit Accompanying Direct Testimony of Jeffrey K. Larsen

Cost of Service SummaryCost of Service Detail

. June 2006

Page 17: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

Paci

fiC

orp

Cos

t Of

Serv

ice

By

Rat

e Sc

hedu

leS

tate

of I

daho

12 M

onth

s E

ndin

g Se

ptem

ber

2005

MSP

Pro

toco

l09

0;. =

Ear

ned

Ret

urn

on R

ate

Bas

e

,--

Retum on

Rate of

Tot

alG

ener

atio

nT

rans

mis

sion

Dis

trib

utio

nR

etai

lM

isc

Incr

ease

Perc

enta

ge

Lin

eSc

hedu

leD

escr

iptio

nA

nnua

lR

ate

Ret

umCost of

Cost of

Cos

t of

Cost of

Cost of

Cost of

(Dec

reas

e)C

hang

e fr

om

No,

No,

Rev

enue

Bas

eIn

dex

Serv

ice

Serv

ice

Serv

ice

Serv

ice

Serv

ice

Serv

ice

to =

RO

RC

urre

nt R

even

ues

Res

iden

tial

28,0

16,8

0811

,09%

24,5

45,9

0712

,674

107

511

037

067,

593

007,

469

285

701

470

901

12,3

9%

Res

iden

tial -

TaD

20,3

98,2

4053

%18

,587

,252

10,835 145

246,

973

955,

402

404,

288

145,

444

/1,8

10,9

88-8

,88%

Gen

eral

Ser

vice

- L

ame

18,6

80,4

9182

%16

,903

983

12,1

71,5

8343

6,57

413

908

610

9,19

345

,548

776,

508

51%

Gen

eral

Ser

vice

- M

ediu

m V

olta

ae13

1 35

972

%12

5,75

990

,740

745

23,7

4725

227

515

,600

-4,2

6%

Gen

eral

Ser

vice

- H

iah

Vol

taae

4951 007

11.8

4%33

5,45

33

862.

491

4326

2876

856

310

,004

/615

,554

12.4

3%

Imaa

tion

34,1

34,5

1771

%34

531

150

2072

3,83

642

2,59

410

,988

,392

297,

341

98,9

8739

6,63

316

%

0711

12S

tree

t & A

rea

Diih

tlna

3187

3320

.82%

13,

548

404

66,7

2922

442

7,80

243

,516

133

229

671

72.0

6%

Tra

ffic

Sia

nals

1650

218

,63%

12,3

5699

876

790

350

118

8/4

,146

25,1

2%

Spa

ce H

eatin

a59

3996

14,5

5%47

8,42

333

0,35

738

,992

97,5

8336

912

211

15,5

7319

,46%

Gen

eral

Ser

vice

- S

mal

l10

040,

577

13,9

2%81

74,1

4775

6,65

156

6,73

727

3,90

251

1,39

365

,464

/1,8

66,4

3018

.59%

SPC

Contract 1

3977

.384

05%

081,

198

600,

120

423,

259

49,2

5861

594

710

3,81

461

%

SPC

Con

trac

t 249

6,72

513

%50

,432

,306

45,1

75,0

3911

6,39

355

,465

715

82,6

9293

5,58

121

,53%

Tot

alS

tate

of I

daho

-16

2,75

6,33

909

%16

2,75

6,33

911

4,29

3,79

721

3,92

229

,105

,901

393,

214

749

505

00%

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

Juris

dict

ion

s no

nnal

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

9-2005 Embedded cas Study

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

cas

Stu

dy,

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

as S

tudy

,

Col

umn

I: C

alcu

late

d D

istr

ibut

ion

Cos

t of S

ervi

ce a

t Jur

isdi

ctio

nal R

ate

of R

etum

per

the

9-20

05 E

mbe

dded

cas

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

as S

tudy

,

Col

umn

K: C

alcu

late

d M

lsc,

Dis

trib

utlo

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

as S

tudy

,

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 F

rom

Ann

ual R

even

ue to

Ful

l Cos

t of S

ervi

ce P

erce

nt.

:;ent

T1'

";J:o" '"

g en

:r.~

,tT

1 0-

::'I

'" Z

~ 9

t-a

go ~

N'"

n ~m~

t;;'b

-~

'" 0

'"

' ....,

Page 1

Page 18: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

Paci

fiC

orp

Cos

t Of S

ervi

ce B

y R

ate

Sch

edul

eS

tate

of I

daho

12 M

onth

s E

ndin

g Se

ptem

ber

2005

MSP

Pro

toco

l80

% =

Tar

get R

etur

n on

Rat

e B

ase

Retum on

Rate of

Tot

alG

ener

atio

nT

rans

mis

sion

Dis

trib

utio

nR

etai

lM

isc

Incr

ease

Perc

enta

ge

LIn

eSc

hedu

leD

escr

iptio

nA

nnua

lR

ate

Ret

umC

ost o

fCost of

Cost of

Cost of

Cost of

Cos

t of

(Dec

reas

e)C

hang

e fr

om

No,

No.

Rev

enue

Bas

eIn

dex

Serv

ice

Serv

ice

Serv

ice

Serv

ice

Serv

ice

Serv

ice

to=

RO

RC

urre

nt R

even

ues

Res

iden

tial

28,0

16.8

0811

.09%

27,5

77,8

2177

2,93

201

6,05

730

1,02

906

6422

421,

381

1438

,987

57%

Res

lden

tlal-

TO

D20

,398

240

53%

20,8

86,6

2211

,749

467

664,

318

834,

960

1 43

0675

207,

202

488

382

39%

Gen

eral

Ser

vice

- L

ame

18,6

80,4

9182

%18

983,

860

214,

599

9168

04691 128

111,

243

50,0

8630

3369

62%

Gen

eral

Ser

vice

- M

ediu

m V

olta

""13

1,35

972

%14

0,81

198

,522

14,3

2227

,421

264

281

9452

20%

Gen

eral

Ser

vice

- H

inh

Vol

taae

4951

,007

11.8

4%80

3,31

918

0081

5775

0829

966

757

1000

611

4768

898

%

Irri

aatio

n34 134,51

771

%39

013,

512

22 4

55,3

9322

7753

12,9

06,0

9730

7,54

411

6725

8789

9514

,29%

0711

12S

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

Page 19: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

, 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

Page 20: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 21: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

5)24

3,28

626

90700 ~

$9,9

0175

12944 ~

$10

447

686

All

Add

'l k

Wh

(Jun

e 1

- S

ept 1

5)85

9,49

78580 ~

$710

,484

0155 ~

$749

,638

All

kWh

(Sep

t 16

- M

ay 3

1)78

220

37428 ~

115

906

0040 ~

342

581

Met

ers

752

Bas

e Su

btot

al53

351

554

1$3

078

985

6$3

249

6,52

4

Unb

illed

525,

000

($12

500

0)($

125

000)

~~~~

en

~ -

,

Bas

e S

ubto

tal

534

040

541

$30

664

856

$32

371

524

'" tT

1 cr

""

~ z

;:;'

RM

A53

404

054

16497 ~

$3,4

6966

16497 ~

$3,4

6966

1;:;

0 z

,a

' "

'" ~

w

Bas

e T

otal

534

541

$34

134

517

$35

841

185

"" n

~

;;.: ,

(JQ

tT1

'"

b;'b

-;;J

I'i"

g,

Pric

e In

crea

se70

666

8

% I

ncre

ase

00%

Exh

ibit

3

Page 22: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

~ "iEDr--

f)

C i - I

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 /

Page 23: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 24: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 25: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 26: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 27: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 28: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 29: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 30: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 31: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 32: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 33: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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(')

Page 34: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 35: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 36: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

, 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

Page 37: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 38: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 39: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 40: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

, -

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.

Page 41: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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%

Page 42: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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

Page 43: , Direct Testimony of Jeffrey K. Larsen NOS. 10, 400, AND 401

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