Transmission Formula Rate 2021 Annual Update - June 29, 2021 - OATi Oasis
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Transmission Formula Rate
2021 Annual Update
June 29, 2021
1
Topics
• Introductions
• Annual Update Overview
• 2020 True-up and 2021 Projection – Variance Analysis
• Schedule 1
• Additional Information
• Questions and Discussion
2Overview: OASIS Postings
PacifiCorp has posted the following materials to OASIS
www.oasis.oati.com/ppw/
[Documents > PacifiCorp OASIS Tariff/Company Information > OATT Pricing > 2021
Transmission Formula Annual Update]
• FERC informational filing
• Formula Rate 2021 Projection and variance analysis
• Formula Rate 2020 True-Up and variance analysis
• Additional materials
• Transmission Plant Additions Detail
• Material Changes Summary
• 2021 Actuarial Study Reports (PBOP details)
• Information request process narrative (includes Intralinks info)
• Rate Table and FAQ
3Overview: Form No. 1
PacifiCorp’s 2020 FERC Form No. 1 may be found on
PacifiCorp’s website by clicking on “Regulatory Filings” under
“Financial & Regulatory Information” at the following link:
https://www.pacificorp.com/about/financial-regulatory.html
The above navigation redirects to the Berkshire Hathaway Energy
Company website accessible directly at:
www.berkshirehathawayenergyco.com/investors/regulatory-filings
4Overview: Form No. 1 Page 106b
PacifiCorp’s 2020 FERC Form No. 1 page 106b lists items where
formula rate inputs differ from values reported in the Form No 1
schedules.
5
52020 True-Up
• True-Up covers calendar year during which two projected rates were in effect
• Refunds to long-term firm point-to-point and network transmission service customers have been calculated and included in
invoices distributed in June 2020
• Values are illustrative and based on filed rates that may not reflect customer-specific or other adjustments
62020 True-up
72021 Projection
8Total Transmission Plant
9Allocators • W&S allocator=Transmission Wages Expense (line 1) / Total Wages (line 4) W&S allocator (line 5) is higher by 2.85% mainly due to higher Transmission Wages Expenses (4.23%), slightly offset by increased total wages (1.34%) • Net Plant Allocator (line 14) = Transmission Net Plant (line 13) / Net Plant (line10) Net Plant Allocator increased by 6.76% mainly due to the higher Transmission net plant included in Rate base 10
Transmission O&M
2021 Projection 2020 Projection Difference Percent
Transmission O&M (Line 53) 210,641,245 218,035,886 (7,394,641) -3.39%
Less Cost of Providing Ancillary Services, 11,293,495 11,026,556 266,939 2.42%
Accounts 561.0-5 (line 54)
Less Wheeling Expense Accounts, 565 141,188,225 145,825,268 (4,637,043) -3.18%
(line 55)
Transmission O&M (line 56) 58,159,525 61,184,062 (3,024,537) -4.94%
A&G Expenses Allocated to Transmission 21,125,270 7,111,344 14,013,926 197.06%
(line 66)
A&G Directly Assigned to Transmission 4,550,179 4,655,322 (105,143) -2.26%
Total Transmission O&M (Line 75) 83,834,974 72,950,728 10,884,246 14.92%
11Revenue Credits
Component 2021 Projection 2020 Projection Difference
Rents (FERC 454) 6,205,041 5,441,269 14.04%
Other revenues (FERC 456) 91,824,192 83,941,914 9.39%
Total Revenue Credits 98,029,233 89,383,184 9.67%
• Rents from electric property (FERC 454) increased by 14.04% . This is mainly due to higher
Various Rents-Transmission related (various rents on transmission facilities includes parking
fees, mono-poles on land, wireless attachment to pole, and rent for agriculture use).
• Other Electric Revenues (FERC 456), which includes ST Firm and non-firm service revenue,
interconnection revenue and maintenance revenue, increased by 9.67%. Main driver is
Short-term firm and non-firm service revenues for which the load is not included in the
divisor received by Transmission Owner.
12Demand (Projection)
(MW) 2021 Projection 2020 Projection Difference Percent
PacifiCorp Network 8,593 8,580 13 0.2%
Network for Others 460 449 11 2.5%
Legacy/Other Service 1,029 1,010 19 2%
Behind-the-meter 205 214 -9 -4.2%
One percent growth 103 103 0 na
PacifiCorp LTF PTP 2,486 2,486 0 na
Third Party LTF PTP 1,378 1,209 169 13.98%
Total MW 14,253 14,050 203 1.45%
• Net increase of 1.45% percent to denominator.
• Third party LTF PTP accounted for most of the
increase.
13Demand (True-up vs. Projection)
(MW) 2020 True-Up 2020 Projection Difference Percent
PacifiCorp Network 8,642 8,580 62 0.7%
Network for Others 473 449 24 5.3%
Legacy/Other Service 1,064 1,010 54 5.3%
Behind-the-meter 205 214 -9 -4.2%
One percent growth - 103 n/m n/m
PacifiCorp LTF PTP 2,501 2,486 15 0.6%
Third Party LTF PTP 1,203 1,209 -6 -0.5%
Total MW 14,089 14,050 39 0.3%
2020 Projection load very close to 2020 True-up
• Three-year averaging of projection softens some trends
• PacifiCorp Network and Legacy/Other services load increased the most,
while Behind the meter and Third Party LTF PTP decreased 14Schedule 1
(Appendix B to the 2021 Annual Update)
15Schedule 1 (Formula Appendix B)
Line Description 2021 update 2020 Update Difference Percent
2 (561.2) Load Dispatch – Monitor and Operate $7,719,651 $7,813,567 -93,916 -1.2%
Trans. System
4 (561.4) Scheduling, System Control, and Dispatch $1,198,333 1,250,888 -52,555 -4.2%
Services
5 (561.5) Reliability, Planning and Standards $2,375,511 1,962,101 413,410 21.1%
Development
6 Annual Revenue Requirement $11,293,495 11,026,556 266,939 2.4%
8 12 CP demand (MW) 14,089 13,892 197 1.4%
9 Rate ($/MW-year) 801.60 793.71 7.89 0.99%
• Revenue requirement increased by 2.4%, and 12CP/load increased by
1.4% (the higher load/denominator slightly offsetting rate increase)
16Additional Information
17Order No. 864- Compliance Filing
• As a result of the Tax Cuts and Jobs Act of 2017, FERC Order No. 864 (Docket
No. RM19-5) requires each public utility with transmission formula rates to
incorporate a new permanent worksheet that will annually track information
related to excess or deficient ADIT.
• PacifiCorp submitted a compliance filing (Docket No. ER20-1828-000)
concurrent with the company’s May 2020 Annual Transmission Update to
demonstrate compliance with the final rule, including revisions to its
transmission formula rates.
• As today (May 29th, 2021), the Commission has not issued an order regarding
PacifiCorp’s Order No. 864 compliance filing.
18Annual Update Milestones
April 14, 2021 The 2020 FERC Form No. 1 filed
May 14, 2021 The 2021 Annual Update informational filing at FERC and publication on
OASIS.
May 14, 2021 2021 Annual Update informational request period begins.
June 1, 2021 Rate Year begins: 2021 Projected rates effective,
2021 Rate Table and FAQ document published on OASIS.
June 2021 Refunds issued based on the 2020 True-Up
June 29, 2021 2021 Annual Update customer meeting
November 10, 2021 The 2021 Annual Update Informational request period ends.
19Annual Review Procedures
General
• Interested Parties have 180 days after the May 14 Publication Date to serve reasonable
information requests to PacifiCorp for information and work papers supporting the
Annual Update
• An Interested Party may make Preliminary and/or Formal Challenges pursuant to the
Protocols
Information requests
• Please submit information requests to:
datarequest@pacificorp.com
• More details on information request process and Intralinks (the online exchange for
information request and response postings) is available here:
www.oatioasis.com/PPW/PPWdocs/Information_Request_Process.pdf
20Questions?
21You can also read
