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CREA board debates Pacificorp $1.8 million startup cost request as PSC filings move to May 15
Summary
Board members and program designers disagreed with Pacificorp over nearly $1.8 million in alleged startup costs and proposed a “startup cost agreement” tying any unpaid costs to later program-rate recovery; the board awaits Rocky Mountain Power/Pacificorp filings in a Public Service Commission docket now expected May 15.
The Millcreek City Community Renewable Energy Agency board discussed whether Pacificorp should be guaranteed repayment of roughly $1.8 million in program startup costs rather than recover those costs through the program rate.
Emily Quinton, program design committee member and Summit County alternate board member, told the board that Pacificorp “estimates at about $1,800,000” in startup costs and has asked communities to front those costs instead of waiting for reimbursement through the program rate. Quinton described the board’s alternative: a voluntary “startup cost agreement” that would require communities to fill any gap only after a set period if program rates had not recovered the costs.
The disagreement centers on what the enabling legislation and adopted rules consider program costs. Quinton said the agency’s reading is that the act and rules treat these as program costs recoverable through the program rate; Pacificorp’s filing will explain its position and the Public Service Commission will decide between the arguments.
Board members stressed they were surprised at the size and composition of the estimate. Councilman Dan Dugan, chair, said the $1.8 million figure “kind of, hit us all like a baseball bat,” and questioned the largest line items, including what was described in materials as upgrades to Rocky Mountain Power’s billing system and an estimated $580,000 for IT support and a utility FTE to manage the program.
Quinton said the program design committee has inventoried startup costs (billing-system upgrades, phone support, noticing, a full-time utility position) and will reflect differing views in testimony filed in the PSC dockets. The board also heard that Pacificorp/Rocky Mountain Power’s next tranche of filings in the program application docket had been rescheduled to May 15.
Quinton separately noted the Public Service Commission recently issued a final decision in Rocky Mountain Power’s general rate case, causing an average monthly residential increase of $4.31 (about 4.7%); she said the decision and the utility’s shifting capital posture related to wildfire liabilities were additional context for the board’s program work.
The board documented no final policy change at the meeting; Quinton said the agency and Pacificorp will file differing testimony and the PSC will resolve the issue.
The program design committee will post updated slides and continue to work with outside counsel on testimony and on the startup cost agreement concept. The board will consider whether individual communities will opt into any voluntary startup cost agreement if the PSC does not adopt the agency’s preferred path.
