PacifiCorp, must participate in a CapandTrade program designed by the California Air Resources Board (ARB) to reduce Greenhouse gas (GHG) emissions. The state allocates GHG allowances to these electric utilities on behalf of ratepayers. The utilities are required to sell the allowances at ARB’s quarterly auctions and return the allowance proceeds to customers pursuant to Public Utilities (Pub. Util.) Code Section 748.5. The utilities also incur GHG costs both by purchasing allowances for their own compliance obligation under the CapandTrade Program and, indirectly, through GHG costs embedded in the price of wholesale electricity. Rulemaking (R.) 1103012 addressed GHGrelated costs and allowance proceeds for all investorowned electric utilities, including PacifiCorp. D.1212033 in R.1103012 required PacifiCorp to file an annual application for approval of forecast GHG costs and allowance proceeds, including administrative and outreach costs, in order to calculate GHG costs, the volumetric small business Climate Credit, and the residential Climate Credit for inclusion in rates. D.1410033, as corrected by D.1410055 and D.1501024, adopted standard procedures for the five electric utilities to use in future applications forecasting GHG costs and allowance proceeds for inclusion in rates and reconciling recorded GHG costs and allowance proceeds amounts with forecasts from prior years. D.1410033 requires PacifiCorp to file its GHG forecast and reconciliation application annually, and if applicable, as part of its ECAC application. 1.2. Summary of PacifiCorp’s 2019 ECAC Application PacifiCorp requests approval to increase its current ECAC Balancing Rate and decrease its current ECAC Offset Rate. PacifiCorp also requests to update both the surcharge that recovers the costs for the procurement of GHG allowances for its retail compliance obligation under California’s CapandTrade
methodology to estimate its SOMAH Program set-aside for 2019 has followed the approach approved in D.17-12-022, is reasonable, and is approved. 2.2.1.4. Recorded and Forecast Emissions Intensive and Trade Exposed (EITE) Customer Return PacifiCorp states that it is not aware of any EITE entities eligible to receive GHG allowance proceeds in its service territory, and therefore, estimates a return of $0 to EITE customers in 2019. Given the absence of EITE customers in PacifiCorp’s service territory, PacifiCorp appropriately forecasted that no proceeds would be distributed to EITEs in 2018. If EITEs are identified in PacifiCorp’s service territory in the future, future applications should account for this. 2.2.1.5. Volumetric Small Business Return In accordance with D.1212033 and D.1312002, PacifiCorp distributes its Climate Credit for small businesses, known as the Small Business Return, through monthly volumetric credits. Eligible small business customers receive a credit derived by multiplying the 2019 GHG Surcharge rate for their rate schedule by the Industry Assistance Factors determined in D.1312002. For 2019, the Industry Assistance Factor is 60 percent. The credit is applied as a lineitem, per kilowatthour credit on the delivery component of customers’ monthly bills. PacifiCorp’s 2019 forecast for its Small Business Return is $547,509. PacifiCorp appropriately calculated its 2019 Small Business Return consistent with the methodology set forth in D.1212033 and D.1312002. Therefore, PacifiCorp’s 2019 Small Business Return is approved. 2.2.1.6. Residential California Climate Credit PacifiCorp calculated a semiannual residential Climate Credit of $159.67 per household to be distributed in April and October 2019. PacifiCorp appropriately forecasted the total proceeds available for the residential Climate
Attachment A PacifiCorp Application 18-08-001 Exhibit List Exhibit No. Title Party Date Served Witness PAC/100 Direct Testimony of Michael G. Wilding PacifiCorp 8/1/2018 Wilding PAC/101 California ECAC Offset/Balancing Rate Calculation PacifiCorp 8/1/2018 Wilding PAC/102 Net Power Cost Analysis— Adjusted Actual 2017 Net Power Costs PacifiCorp 8/1/2018 Wilding PAC/103 Net Power Cost Analysis— Adjusted Actual/Forecast 2017 Net Power Costs PacifiCorp 8/1/2018 Wilding PAC/104 Net Power Cost Analysis— Forecast 2019 Net Power Cost PacifiCorp 8/1/2018 Wilding PAC/105 2019 Californiaallocated Net Power Costs PacifiCorp 8/1/2018 Wilding PAC/106 ARB Administrative Costs (Redacted and Confidential Version) PacifiCorp 8/1/2018 Wilding PAC/200 Direct Testimony of Mary M. Wiencke (Redacted and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/201 Commission Template C— Weighted Average Costs of Compliance Instruments (Redacted Version and Confidential Version) PacifiCorp 8/1/2018 Wiencke PAC/202 Commission Template D2 Annual GHG Emissions and Associated Compliance Obligations (Redacted Version and Confidential Version) PacifiCorp 8/1/2018 Wiencke PAC/203 Summary of the GHG Allowance Costs SubBalancing Account (Redacted Version and Confidential Version) PacifiCorp 8/1/2018 Wiencke
PAC/204 2019 Forecast Compliance Obligation and GHG Allowance Costs (Redacted Version and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/205 2017 Recorded GHG Allowance Revenue (Redacted Version and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/206 2018 Recorded/Forecast GHG Allowance Revenue (Redacted Version and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/207 Summary of the GHG Allowance Revenue Balancing Account (Redacted Version and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/208 2019 Forecast GHG Allowance Revenue (Redacted Version and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/209 Commission Template of Revenues, Costs, and Emissions Intensity (Redacted Version and Confidential Versions) PacifiCorp 8/1/2018 Wiencke PAC/300 Direct Testimony of Barbara Modey PacifiCorp 8/1/2018 Modey PAC/301 2013  2018 Recorded/Forecast Customer Outreach Costs PacifiCorp 8/1/2018 Modey PAC/302 2019 Customer Outreach Activities and Estimated Costs PacifiCorp 8/1/2018 Modey PAC/303 2019 Forecast Customer Outreach Costs PacifiCorp 8/1/2018 Modey PAC/304 Commission Template of Outreach Costs PacifiCorp 8/1/2018 Modey PAC/400 Direct Testimony of Anthony B. Worthington PacifiCorp 8/1/2018 Worthington PAC/401 2013  2018 Recorded/Forecast Administrative Costs PacifiCorp 8/1/2018 Worthington PAC/402 2019 Forecast Administrative Costs PacifiCorp 8/1/2018 Worthington PAC/403 Commission Template of Administrative Costs PacifiCorp 8/1/2018 Worthington PAC/500 Direct Testimony of Judith M. Ridenour PacifiCorp 8/1/2018 Ridenour
PAC/501 Calculation of Proposed ECAC Adjustment Rates PacifiCorp 8/1/2018 Ridenour PAC/502 GHG Allowance Costs to be Recovered in Rates (Redacted and Confidential Versions) PacifiCorp 8/1/2018 Ridenour PAC/503 GHG Allowance Revenue to be Distributed Through the California Climate Credit PacifiCorp 8/1/2018 Ridenour PAC/504 Calculation of Proposed GHG Allowance Costs Surcharge and California Climate Credit Rates PacifiCorp 8/1/2018 Ridenour PAC/505 Commission Template D1— Annual Allowance Revenue Receipts and Customer Returns (Redacted and Confidential Versions) PacifiCorp 8/1/2018 Ridenour PAC/506 Commission Template D4— Forecast Revenue Requirement and Revenues by Rate Schedule PacifiCorp 8/1/2018 Ridenour PAC/507 Effects of Proposed Rate Change Distributed by Rate Schedule PacifiCorp 8/1/2018 Ridenour (END OF ATTACHMENT A)