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PacifiCorp agrees to lower rate of return for transmission


From the April 8, 2013 issue of Public Power Daily

Originally published April 8, 2013

By Robert Varela
Editorial Director
A Federal Energy Regulatory Commission administrative law judge has approved a settlement lowering a transmission rate hike proposed by PacifiCorp. The settlement with the Bonneville Power Administration, Deseret Generation & Transmission Cooperative, Utah Associated Municipal Power Systems and the Utah Municipal Power Agency provides for a 9.8 percent base return on equity, with a 50-basis-point incentive adder to portions of its Energy Gateway project. FERC staff support the settlement.

PacifiCorp had proposed a 10.9 percent base ROE for use in a formula rate, plus a 200-basis-point adder for the Energy Gateway project. The settlement states that the return on equity, any incentives for the Energy Gateway project, and the rates, terms and conditions in certain schedules will not be subject to change prior to June 1, 2015. If FERC considers any changes to those provisions prior to that date, the public interest standard under the Mobile-Sierra doctrine will apply.

The settlement does not raise any policy implications, FERC staff said. 

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