Transmission Formula Rate 2017 Annual Update. June 23, 2017

Size: px

Start display at page:

Download "Transmission Formula Rate 2017 Annual Update. June 23, 2017"

Allan Patrick
6 years ago
Views:

1 Transmission Formula Rate 2017 Annual Update June 23,

2 Topics Introductions Annual Update Overview 2017 Projection and 2016 True-Up Schedule 1 Additional Information Questions and Discussion 2

3 OASIS Postings PacifiCorp has posted the following materials to OASIS [Documents > PacifiCorp OASIS Tariff/Company Information > OATT Pricing > 2017 Transmission Formula Annual Update] FERC informational filing Formula Rate 2017 Projection and variance analysis Formula Rate 2016 True-Up and variance analysis Additional materials Transmission Plant Additions Detail Material Changes Summary 2017 Actuarial Study Reports (PBOP details) Information request process narrative (includes Intralinks info) Rate Table and FAQ 3

4 Form No. 1 PacifiCorp s 2016 FERC Form No. 1 may be found on PacifiCorp s website by clicking on Regulatory Filings under Financial Information at the following link: The above navigation redirects to the Berkshire Hathaway Energy Company website accessible directly at: regulatory-filings?c=pc 4

5 2016 True-up True-Up covers calendar year during which two projected rates were in effect 2015 Projection 28,472 $/MW-yr (2, $/MW-month) (effective June 2015 through May 2016) 2016 Projection 29,703 $/MW-year (2, $/MW-month) (effective June 2016 through May 2017) 2016 Jan Feb March April May June July Aug Sept Oct Nov Dec 2016 True-Up 32,380 $/MW-year (2, $/MW-month) (calculated for calendar year 2016) Monthly Surcharge January through May , , = $/MW-month Monthly Surcharge June through December , , = $/MW-month Surcharges to long-term firm point-to-point and network transmission service customers have been calculated and included in invoices distributed in June

6 2016 True-up 2016 True-up 2016 Projection (as-filed) Revenue Requirement 0 Summary 137 Net Property, Plant & Equipment 4,527,976,847 4,573,485,299 (45,508,451) -1.00% 138 Total Adjustment to Rate Base (1,091,725,915) (1,069,033,177) (22,692,737) -2.12% 139 Rate Base 3,436,250,933 3,504,452,121 (68,201,189) -1.95% 140 Total Transmission O&M 75,555,222 69,887,253 5,667, % 141 Total Transmission Depreciation & Amortization 111,477, ,285,179 6,192, % 142 Taxes Other than Income 36,464,996 35,960, , % 143 Investment Return 258,642, ,623,425 (3,980,967) -1.52% 144 Income Taxes 103,247, ,552,538 (1,305,140) -1.25% 145 Gross Revenue Requirement 585,387, ,308,659 7,078, % Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 146 Transmission Plant In Service 5,978,969,782 5,910,756,444 68,213, % 147 Excluded Transmission Facilities 244,927, ,640,976 2,286, % 148 Included Transmission Facilities 5,734,042,200 5,668,115,468 65,926, % 149 Inclusion Ratio 95.90% 95.89% 150 Gross Revenue Requirement 585,387, ,308,659 7,078, % 151 Adjusted Gross Revenue Requirement 561,407, ,568,656 6,838, % Revenue Credits 152 Revenue Credits 132,780, ,695,083 (19,914,986) % 153 Net Revenue Requirement 428,626, ,873,572 26,753, % 165 Net Revenue Requirement 428,626, ,873,572 26,753, % 166 Facility Credits under Section 30.9 of the OATT n/m 167 Transmission Incentive Credit 4,663,281 4,677,132 (13,851) -0.30% 168 Interest on Network Upgrade Facilities 1,047,559 1,520,803 (473,243) % 169 Net Zonal Revenue Requirement 434,337, ,071,508 26,266, % Network Service Rate CP Monthly Peak (MW) 13,414 13,738 (324) -2.36% 172 Network Service Rate ($/MW-year) 32,380 29,703 2, % 6

7 2017 Projection 2017 Projection 2016 Projection (as-filed) Revenue Requirement 0 Summary 137 Net Property, Plant & Equipment 4,637,294,898 4,573,485,299 63,809, % 138 Total Adjustment to Rate Base (1,110,547,025) (1,069,033,177) (41,513,848) -3.88% 139 Rate Base 3,526,747,873 3,504,452,121 22,295, % 140 Total Transmission O&M 75,595,793 69,887,253 5,708, % 141 Total Transmission Depreciation & Amortization 111,477, ,285,179 6,192, % 142 Taxes Other than Income 37,145,684 35,960,264 1,185, % 143 Investment Return 265,454, ,623,425 2,830, % 144 Income Taxes 105,980, ,552,538 1,427, % 145 Gross Revenue Requirement 595,653, ,308,659 17,344, % Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 146 Transmission Plant In Service 6,051,719,907 5,910,756, ,963, % 147 Excluded Transmission Facilities 244,927, ,640,976 2,286, % 148 Included Transmission Facilities 5,806,792,325 5,668,115, ,676, % 149 Inclusion Ratio 95.95% 95.89% 150 Gross Revenue Requirement 595,653, ,308,659 17,344, % 151 Adjusted Gross Revenue Requirement 571,545, ,568,656 16,977, % Revenue Credits 152 Revenue Credits 132,780, ,695,083 (19,914,986) % 153 Net Revenue Requirement 438,765, ,873,572 36,892, % 165 Net Revenue Requirement 438,765, ,873,572 36,892, % 166 Facility Credits under Section 30.9 of the OATT n/m 167 Transmission Incentive Credit 4,597,903 4,677,132 (79,230) -1.69% 168 Interest on Network Upgrade Facilities 1,047,559 1,520,803 (473,243) % 169 Net Zonal Revenue Requirement 444,411, ,071,508 36,339, % Network Service Rate CP Monthly Peak (MW) 13,875 13, % 172 Network Service Rate ($/MW-year) 32,029 29,703 2, % 7

8 Allocators Allocators 2017 Projection 2016 Projection (as filed) Wages & Salary Allocation Factor 1 Transmission Wages Expense 27,291,677 25,137,301 2,154, % 2 Total Wages Expense 351,524, ,682,932 (5,158,801) -1.45% 3 Less A&G Wages Expense 38,710,883 37,744, , % 4 Total Wages Less A&G Wages Expense 312,813, ,938,376 (6,125,128) -1.92% 5 Wages & Salary Allocator % % % 10.70% Plant Allocation Factors 6 Electric Plant in Service 27,064,434,648 26,518,616, ,817, % 11 Transmission Gross Plant (excluding Land Held for Future Use) 6,311,838,409 6,150,705, ,132, % 12 Gross Plant Allocator % % % 0.55% 13 Transmission Net Plant (excluding Land Held for Future Use) 4,633,637,364 4,569,827,764 63,809, % 14 Net Plant Allocator % % % 0.85% Plant allocators increased slightly W&S allocator higher from increase to transmission wage expense driven by higher labor charges to transmission from the T&D labor pool higher costs for transmission project manager and engineering labor activities See Information request LC

9 Transmission O&M 2016 Projection 2017 Projection Difference Transmission O&M (Line 75) 69,887,253 75,595, % Transmission O&M starting point (FN1: b) down $11.9m (-5.5%) FERC 565 wheeling down $17.6m (-11.9%) means a smaller reduction to transmission O&M Allocated A&G relatively flat Decrease in gross A&G offset by higher labor allocation Direct assigned A&G down $0.4m (-10.0%) Increase in regulatory expenses offset by decrease in property insurance 9

10 Revenue Credits Component 2016 Projection 2017 Projection Difference Rents (FERC 454) 5,589,191 5,509, % Other revenues (FERC 456) 147,105, ,270, % Total revenue credits 152,695, ,780,097-13% Rents from electric property decreased slightly Decrease to Other Electric Revenues of 13% Facilities charges down $0.6m (-24.6%) Other service revenue down $1.7m (-7.1%) Short term service revenue down $17.8m (-14.7%) See information requests LC 1.25, LC

11 Demand (Projection) (MW) 2016 Projection 2017 Projection Difference Percent PacifiCorp Network 8,598 8,476 (122) -1.4% Network for Others % Legacy/Other Service 962 1, % Behind-the-meter % One percent growth % PacifiCorp LTF PTP 2,574 2, % Third-party LTF PTP 1, (55) -5.2% Total 13,738 13, % Net growth of one percent to denominator PacifiCorp network load decrease offset by addition of BPA SE Idaho load 11

12 Demand (True-up vs. Projection) (MW) 2016 Projection 2016 True-up Difference Percent PacifiCorp Network 8,598 8,299 (299) -3.5% Network for Others % Legacy/Other Service % Behind-the-meter % One percent growth 100 n/a n/m n/m PacifiCorp LTF PTP 2,574 2, % Third-party LTF PTP 1,052 1,011 (41) -3.9% Total 13,738 13,414 (324) -2.4% 2016 Projection overstated load Three-year averaging softens some trends Six months of SE Idaho are present in NFO values 12

13 Schedule 1 (Formula Appendix B) Line Description 2016 Update 2017 Update Difference 2 (561.2) Load Dispatch - Monitor and Operate Trans. System $ 6,818,716 $ 7,180, % 4 (561.4) Scheduling, System Control, and Dispatch Services 2,106,756 1,818, % 5 (561.5) Reliability, Planning, and Standards Development 1,326,587 1,747, % 6 Annual Revenue Requirement ($) 10,252,059 10,746, % 8 12 CP demand (MW) 13,441 13, % 9 Rate ($/MW-year) % Revenue requirement increased and load decreased (each of which alone drives rate higher) FERC Increased transmission application development services for SCADA partially offset by decreased labor-related costs FERC Decreased EIM grid management charges FERC Increased labor-related costs for reliability standards and compliance 13

14 Annual Update Milestones April 14, 2017 May 15, 2017 May 16, 2017 June 1, 2017 June 23, 2017 June 2017 November 11, 2017 The 2016 FERC Form No. 1 filed The 2017 Annual Update informational filing at FERC and publication on OASIS Annual Update informational request period begins. Rate Year begins: 2017 Projected rates effective, 2017 Rate Table and FAQ document published on OASIS Annual Update customer meeting Surcharges issued based on the 2016 True-Up The 2017 Annual Update Informational request period ends. 14

15 Annual Review Procedures General Interested Parties have 180 days after the May 15 Publication Date to serve reasonable information requests to the Transmission Provider for information and work papers supporting the Annual Update An Interested Party shall have the right to make Preliminary and/or Formal Challenges pursuant to the Protocols Information requests Please submit information requests to: Intralinks is the online exchange for information request and response postings PacifiCorp will post information requests on Intralinks within one business day of receipt PacifiCorp will make a good faith effort to complete and post responses to requests on Intralinks within 10 business days of receipt 15

Transmission Formula Rate 2018 Annual Update July 6, 2018 Minor corrections to slides 9, 18, and 19 shown in green

Transmission Formula Rate 2018 Annual Update July 6, 2018 Minor corrections to slides 9, 18, and 19 shown in green Topics Introductions Annual Update Overview FERC Form No. 1 page 106b Known errors 2017