2017 Actual Cost Attachment O, GG and MM Rate Template Presentation

Transcription

1 2017 Actual Cost Attachment O, GG and MM Rate Template Presentation Dehn Stevens General Manager Transmission July 19, 2018

2 Meeting Purpose The purpose of today s meeting is to review the 2017 Attachments O, GG and MM Actual Cost and True-up calculations A future meeting (by October 31 st ) will be held to review the 2019 Projected Cost Transmission Rate Templates 2

3 Actual Attachment O, GG and MM Timeline May 30, 2018 Posted 2017 actual cost rate templates and true-up calculations July 19, 2018 Conduct customer meeting to discuss actual cost 2017 Attachment O, Attachment GG and Attachment MM and related true-up calculations 3

4 Actual Attachment O, GG and MM Annual Schedule By June 1 st Post actual cost calculations and true-ups based on prior year s Rate Information By September 1 st Meet with Interested Parties to discuss the actual prior year s Rate information December 1 st Deadline for information requests By January 10 th MidAmerican must respond to information requests January 31 st Deadline for informal challenges March 15 th MidAmerican s Annual Informational filing March 31 st Deadline for formal challenges 4

5 Allowable MidAmerican ROE On September 28, 2016 FERC issued an order in Docket No. EL14-12 setting the MISO Transmission Owners ROE at a base rate of 10.32% MidAmerican was a filer in Docket No. ER whereby FERC authorized MidAmerican to receive a 0.50% ROE adder for RTO Participation This results in a total MidAmerican MISO ROE of 10.82% 5

6 Actual Attachment O Historical/Projected Rates Rate Monthly $/kw-month Projected Rate Effective January 1, 2017 Actual Rate Effective January 1, 2017 $2.452 $

7 2017 Attachment O, GG and MM True-up The 2017 Attachments O, GG and MM true-up will be reflected in MidAmerican s January 1, 2019 rates. The 2017 Attachment O true-up will reduce MidAmerican s 2019 forward-looking Attachment O net transmission revenue requirements by approximately $6.1 Million. The 2017 Attachment GG true-up will add approximately $9,600 to MidAmerican s 2019 forward-looking Attachment GG revenue requirements. The 2017 Attachment MM true-up will add approximately $6.5 Million to MidAmerican s 2019 forward-looking Attachment MM revenue requirements. 7

8 2017 Attachment O True-up Item 2017 Actual 2017 Projected Change Rate Base $1,068,009,203 $1,094,899,843 ($ 26,890,640) O&M $ 21,925,636 $ 18,019,271 $ 3,906,365 Depreciation $ 36,376,028 $ 37,885,338 ($ 1,509,310) Other Taxes $ 12,114,515 $ 10,697,761 $ 1,416,754 Income Taxes $ 41,182,964 $ 42,098,536 ($ 915,572) Return $ 82,261,042 $ 84,769,502 ($ 2,508,460) Attachment GG Adjustment Attachment MM Adjustment ($ 190,771) ($ 190,216) ($ 555) ($ 59,475,511) ($ 58,354,697) ($ 1,120,814) Gross Revenue Requirements $134,193,903 $134,925,495 ($ 731,592) 8

9 2017 Attachment O True-Up Item 2017 Actual 2017 Projected Change Gross Revenue $134,193,903 $134,925,495 ($ 731,592) Requirements Revenue Credits ($ 25,433,240) ($ 21,143,568) ($ 4,289,672) True-Up (2015) $ 3,614,082 $ 3,614,082 $ 0 Net Revenue Requirements $112,374,745 $117,396,009 ($ 5,021,264) 9

10 2017 Attachment O True-Up Item 2017 Divisor True-Up Historic Year Actual Divisor 4,004,814 Historic Year Projected Divisor 3,984,203 Difference in Divisor (Line 2 Line 1) Historic Year Projected Annual Cost ($/kw/yr) ( 20,611) $ Historic Year Divisor True-Up ($606,392) 10

11 Attachment O True-Up Item 2017 True-Up Net ATRR True-Up ($ 5,021,264) Divisor True-Up ($ 606,393) Total Principal 2017 True-Up ($ 5,627,657) Average Monthly Prime Interest Rate % (Jan 17 Jul 18) Interest for 24 Months (Jan 17 Dec 18) ($ 483,580) True-Up Principal and Interest Under / (Over) Collected ($ 6,111,237) 11

12 2017 Attachment GG True-up Item Actual Projected Change Project Gross Plant $1,512,158 $ 1,512,158 $ 0 Annual Expense Charge $ 30,580 $ 25,318 $ 5,262 Annual Return Charge $ 133,837 $ 138,544 ($ 4,707) Project Depreciation Expense $ 26,354 $ 26,354 $ 0 Annual Revenue $ 190,771 $ 190,216 $ 555 Requirement True-up Adjustment $ 35,665 $ 35,665 $ 0 Network Upgrade Charge $ 226,436 $ 225,881 $

13 2017 Attachment GG True-Up Item 2017 True-Up Actual Attachment GG Revenue Requirement $ 190,771 Revenue Distributed by MISO $ 181,406 Under / (Over) Recovery $ 9,365 Average Monthly MidAmerican Short-Term Debt Interest % Rate (Jan 17 Jul 18) Interest for 24 Months (Jan 17 Dec 18) $ 260 True-Up Principal and Interest Under / (Over) Collected $ 9,625 13

14 2017 Attachment MM True-Up Item Actual Projected Change Project Gross Plant $ 449,654,977 $450,571,696 ($ 916,719) Annual Expense Charge $ 4,747,293 $ 4,343,262 $ 404,031 Annual Return Charge $ 42,709,446 $ 43,282,595 ($ 573,149) Project Depreciation Expense $ 12,018,772 $ 10,728,840 $ 1,289,932 Annual Revenue Requirement $ 59,475,511 $ 58,354,697 $ 1,120,814 True-Up Adjustment $ 4,937,002 $ 4,937,002 $ 0 MVP Annual Adjusted Revenue Requirement $ 64,412,513 $ 63,291,699 $ 1,120,814 14

15 2017 Attachment MM True-Up MVP Projects Actual Projected Change MVP 3 P3205 $ 31,824,304 $ 31,781,078 $ 43,226 MVP 4 P3213 $ 19,502,788 $ 17,952,604 $ 1,550,184 MVP 7 P2248 $ 230,589 $ 530,927 ($ 300,338) MVP 16 P3022 $ 7,917,830 $ 8,090,088 ($ 172,258) Total $ 59,475,511 $ 58,354,697 $ 1,120,814 15

16 2017 Attachment MM True-Up Item 2017 True-Up Actual Attachment MM Revenue Requirement $ 59,475,512 Revenue Distributed by MISO $ 53,117,742 Under / (Over) Recovery $ 6,357,770 Average Monthly MidAmerican Short-Term % Interest Rate (Jan 17 Jul 18) Interest for 24 Months (Jan 17 Dec 18) $ 176,355 True-Up Principal and Interest Under / (Over) Collected $ 6,534,125 16

17 2017 Actual Attachment O, GG and MM QUESTIONS? 17

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