# Presentation: 669551

## Parker-Davis Project

- Informal Rate Meeting
- June 15, 2006

## Meeting Agenda

- Transmission Rate Proposal for FY 2007
- Overview of preliminary Generation Rate proposal for FY 2007
- Discuss Rate Determinants for FY 2007 and 5 Yr Rate Window
- History of Parker-Davis Rates
- Questions and Comments

## FY 2007 Rate Proposal

|  | FY 2007 | % change from FY 2006 |
| --- | --- | --- |
| Firm Trans. | $1.08/kW-mnth | NA |
| Energy | 3.32 mills/kWh | 7.79% |
| Capacity | $1.45/kW-mnth | 7.41% |
| Comp. w/o TX | 6.64 mills/kWh | 7.79% |

## Changes in Project Rate Determinants

|  | FY 2006 | FY 2007 | Change |
| --- | --- | --- | --- |
| BOR O&M | $6.7M | $6.1M | <$.6M> |
| WAPA O&M | $17M | $17.6M | $0.6M |
| BOR Repl | $0.08M | $1.9M | $1.82M |
| P&I | $16M | $16.5M | $0.5M |
| GWA & CME | $5.2M | $5.0M | <$0.20M> |
| Totals | $45.0M | $47.1M | $2.12M |

## Transmission Rate DriversRepayment ObligationFY 2007

## Generation Rate DriversRepayment ObligationFY 2007

## Other Revenue Projections

|  | FY2006 | FY2007 | Change |
| --- | --- | --- | --- |
| Non-Firm Trans | $0.8M | $0.95M | $0.15M |
| Non-Firm Energy | $0M | $0M | NA |
| Ancillary Services | $0.009M | $0.038M | $0.29M |
| Misc | $1.16M | $1.18M | $.02M |
| Multi-Project | $2.74M | $1.69M | <$1.06M> |
| Totals | $4.71M | $3.85M | <$0.859M> |

## CHANGES IN MULTI-PROJ	

- The FY05 Cost Apportionment Study showed SCADA revenue going to zero in 2007 going forward
- DSW Reviewed Multi-Project Cost written procedures to ensure compliance
- Modification resulted in SCADA MPC revenue of  $43,664 for 2007

## Generation Rate Increase Drivers

|   | FY 2006 Ratebase (8/05) | FY 2007 Forecast (6/06)
 | Change |
| --- | --- | --- | --- |
| BOR O&M for 5 Rate Yr Period | $37.84 M | $39.68 M | $1.84 M |
| BOR Investment 5 Rate Period | $ 10.41 M | $ 11.73 M | $ 1.33 M |
|   | $ 48.25 M | $ 51.41 M | $ 3.17 M |

## Carryover Application	

- Fiscal Years 2007 – 2011 evaluation period: shows carryover balance going to zero
- Carryover fully utilized in 5 year window to keep proposed rates stable (WAPA order 75-5 year window utilized to maintain conformity with RA6120.2)
- Expectation: water and market conditions will keep additional “other revenues” at minimal levels, minimizing or eliminating significant carryover balances.

## Revenue Requirement Projections

- Fiscal Year 2007 and 2008 O&M Budgets set.
- Historically, WAPA has projected O&M for out years (’09-’11) at 3% - 4% increases.
- This proposal assumes WAPA O&M increases of 3% for out years.
- 3% increase ties to budget estimates for ’08-’12 submitted to DOE 5/06
- Western continues to seek ways to expand other sources of revenue.

## PDP RatesHistorical Perspective

## Common Facility Charges

- CRSP Common Facility Charges for P-DP and Intertie

## Next Steps for P-DP	

- FRN to extend P-DP methodology being drafted—expires 9/30/08.
- Over the next year plan to begin meeting with P-DP customers to explore the idea of alternative rate methodologies.
- Full formal rate process in FY08, to put new methodology in place by 10/1/08.

## Questions/Comments

- Proposed rates as presented still preliminary; will be finalized after 7/20/06 Funding Board meeting.
- Final data brochure will be published on web in September as last year.  Hard copy available on request.
- Questions/Comments