proposed cost and revenue allocation methodology to the Commission. ORA expressed concern that rate reductions that PacifiCorp promised to Utah ratepayers should not be subsidized with savings and benefits that are more properly assigned to other jurisdictions such as California. The Commission approved the merger, prohibited PacifiCorp from requesting an increase in overall average rates for 1988 through 1991, and required PacifiCorp to convene an Allocation Committee to determine a fair allocation among the various jurisdictions. Subsequent Acquisitions The Commission authorized ScottishPower to acquire PacifiCorp in D.9906049. At the time, PacifiCorp’s California service territory represented 3.3 percent of PacifiCorp’s retail customers and 2 percent of retail electricity sales systemwide. PacifiCorp was subsequently acquired by MidAmerican Energy Holdings Company, authorized in D.0602033, and PacifiCorp is presently an indirect wholly owned subsidiary of Berkshire Hathaway Energy. General Rate Cases and InterJurisdictional Cost Allocation Since the 1988 merger between PacifiCorp and Utah Power, PacifiCorp appears to have filed applications for only two general rate cases (GRC) – for the 2007 and 2011 test years. In neither case did the Commission evaluate the reasonableness of how PacifiCorp allocates costs and revenues among the six states in which it operates. 2007 GRC The Commission approved PacifiCorp’s 2007 test year GRC in D.0612011 by adopting an unopposed settlement between PacifiCorp and ORA. That decision adopted a revenue allocation and rate design settlement and authorized
proposed cost and revenue allocation methodology to the Commission. ORA expressed concern that rate reductions that PacifiCorp promised to Utah ratepayers should not be subsidized with savings and benefits that are more properly assigned to other jurisdictions such as California. The Commission approved the merger, prohibited PacifiCorp from requesting an increase in overall average rates for 1988 through 1991, and required PacifiCorp to convene an Allocation Committee to determine a fair allocation among the various jurisdictions. Subsequent Acquisitions The Commission authorized ScottishPower to acquire PacifiCorp in D.9906049. At the time, PacifiCorp’s California service territory represented 3.3 percent of PacifiCorp’s retail customers and 2 percent of retail electricity sales systemwide. PacifiCorp was subsequently acquired by MidAmerican Energy Holdings Company, authorized in D.0602033, and PacifiCorp is presently an indirect wholly owned subsidiary of Berkshire Hathaway Energy. General Rate Cases and InterJurisdictional Cost Allocation Since the 1988 merger between PacifiCorp and Utah Power, PacifiCorp appears to have filed applications for only two general rate cases (GRC) – for the 2007 and 2011 test years. In neither case did the Commission evaluate the reasonableness of how PacifiCorp allocates costs and revenues among the six states in which it operates. 2007 GRC The Commission approved PacifiCorp’s 2007 test year GRC in D.0612011 by adopting an unopposed settlement between PacifiCorp and ORA. That decision adopted a revenue allocation and rate design settlement and authorized
184960528.docx