Docket No. UE 374 Exhibit PAC/1200 Witness: Melissa S ... · Direct Testimony of Melissa S....
Transcript of Docket No. UE 374 Exhibit PAC/1200 Witness: Melissa S ... · Direct Testimony of Melissa S....
Docket No. UE 374 Exhibit PAC/1200 Witness: Melissa S. Nottingham
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
PACIFICORP
___________________________________________________________
Direct Testimony of Melissa S. Nottingham
February 2020
PAC/1200 Nottingham/i
Direct Testimony of Melissa S. Nottingham
TABLE OF CONTENTS I. INTRODUCTION AND QUALIFICATIONS ....................................................................... 1
II. PURPOSE OF TESTIMONY .................................................................................................... 2
III. SCHEDULE 300 – CHARGES AS DEFINED BY THE RULES AND
REGULATIONS ......................................................................................................................... 3
Returned Payment Charge ........................................................................................ 4
Facilities Charges ....................................................................................................... 5
Temporary Service Charge ....................................................................................... 7
Paperless Bill Credit .................................................................................................. 8
Work Performed at Consumer’s Request—Service Connection Charge ........... 9
IV. HOUSEKEEPING ..................................................................................................................... 10
V. CONCLUSION .......................................................................................................................... 10
ATTACHED EXHIBITS
Exhibit PAC/1201—Schedule 300 Charge Review
Exhibit PAC/1202—Facilities Charge Calculation
Exhibit PAC/1203—Paperless Bill Credit Calculation
PAC/1200 Nottingham/1
Direct Testimony of Melissa S. Nottingham
I. INTRODUCTION AND QUALIFICATIONS 1
Q. Please state your name, business address, and present position with PacifiCorp. 2
A. My name is Melissa S. Nottingham and my business address is 825 NE Multnomah 3
Street, Suite 2000, Portland, Oregon 97232. I am currently employed as Manager, 4
Customer Advocacy and Tariff Policy. I am testifying for PacifiCorp d/b/a Pacific 5
Power (PacifiCorp or the Company). 6
Q. Please describe your education and professional experience. 7
A. I have a Bachelor of Arts in English from Arizona State University and continue to 8
pursue continuing education courses relevant to the utility industry. I began working 9
for PacifiCorp in 1996, and worked in various positions with progressive 10
responsibility for the past 20 years. For the past 10 years, I have been the Manager of 11
Customer Advocacy and Tariff Policy in the Company’s Regulation department. 12
Q. Please describe your current duties. 13
A. My current duties include overseeing a team of five regulatory analysts who respond 14
to consumer commission complaints, sponsoring tariff changes, ensuring compliance 15
with the Company’s tariff rules, and participating in general rate cases and other 16
regulatory proceedings for PacifiCorp’s six state service territories. In addition, I 17
oversee a team of three business analysts responsible for the administration of the 18
contracts for new electrical load and the implementation and operation of the 19
Company’s customer guarantee program. As my team supports the Company’s tariff 20
rules in each state, we also support changes to Schedule 300, which are the charges 21
associated with the implementation of the rules. 22
PAC/1200 Nottingham/2
Direct Testimony of Melissa S. Nottingham
Q. Have you appeared as a witness in other regulatory proceedings? 1
A. Yes. I have testified in proceedings before the California Public Utilities Commission 2
and the Washington Utilities and Transportation Commission. 3
II. PURPOSE OF TESTIMONY 4
Q. What is the purpose of your testimony in this case? 5
A. My testimony supports proposed changes to Schedule 300 of the Company’s Oregon 6
tariff schedules, Rule 10, Rule 11D, and a proposal for customers to receive a credit 7
for paperless billing. 8
The proposed changes to Rule 10, Rule 11D, and Schedule 300, Charges 9
as Defined by the Rules and Regulations, are provided in Mr. Robert M. 10
Meredith’s Exhibit PAC/1401. 11
Finally, I propose housekeeping changes to Schedule 300 regarding the 12
referenced rules. 13
Q. Why are you proposing these changes? 14
A. The proposed changes reflect the Company’s continued commitment to lower costs 15
for our customers, and to empower customers to control their monthly bills. 16
Q. Please provide a summary of your testimony and the proposed changes. 17
A. My testimony proposes an update to several customer charges in Schedule 300. The 18
Company reviewed the costs associated with Schedule 300 charges and identified 19
areas where costs have changed. A variety of factors, including automation of 20
returned checks and fluctuations in financial models for determining Facilities 21
Charges, have contributed to lower costs and different values. Accordingly, the 22
PAC/1200 Nottingham/3
Direct Testimony of Melissa S. Nottingham
Company is proposing to sync customer charges to more accurately reflect current 1
costs. 2
My testimony proposes to update the applicability of the Service Connection 3
Charge to certain applicants requesting service connection at a location with remote 4
connection capability to reflect the Company’s ability to now perform remote 5
connections and avoid sending an employee to the premises to connect. 6
My testimony also proposes to implement a bill credit for customers who 7
choose paperless billing (Paperless Bill Credit). The proposed Paperless Bill Credit 8
will send a price signal to customers to incentivize behavior that results in actual cost 9
savings for the Company. The Paperless Bill Credit will provide a monthly benefit to 10
customers who participate as well as create an incentive for customers to adopt more 11
sustainable practices. 12
All of the proposed changes are a continuation of PacifiCorp’s ongoing 13
commitment to provide fair and reasonable charges by closely managing expenses 14
while still meeting customers’ increasing expectations. 15
III. SCHEDULE 300 – CHARGES AS DEFINED BY THE RULES AND 16
REGULATIONS 17
Q. Please describe the changes PacifiCorp is proposing to the Schedule 300 charges. 18
A. Table 1 shows the rule, a description of the charge, the current charge, and the 19
proposed charge. 20
PAC/1200 Nottingham/4
Direct Testimony of Melissa S. Nottingham
TABLE 1 1
Rule Description of Charge Current Proposed R. 10-2 Returned Payment Charge $20 $12 R. 13-2 Facilities Charges, at Less than 57,000
volts, installed at Consumer’s Expense 0.5% per month
0.4% per month
R. 13-2 Facilities Charges, at Less than 57,000 volts, installed at Company’s Expense
1.4% per month 1.2% per month
R. 13-2 Facilities Charges, at and above 57,000 volts, installed at Consumer’s Expense
0.3% per month 0.2% per month
R. 13-2 Facilities Charges, at and above 57,000 volts, installed at Company’s Expense
0.9% per month 0.85% per month
R. 13-91 Temp Service Charge – Single Phase $85 $164
R. 13-9 Temp Service Charge – Three Phase2 $115 $164
Returned Payment Charge 2
Q. Please describe the Returned Payment Charge. 3
A. If a customer presents a payment that is returned by the customer’s bank, the 4
Company incurs a cost to process the returned payment. Payments can be returned 5
for a variety of reasons, including, but not limited to, insufficient funds, incorrect 6
account numbers, or closed accounts. 7
Q. What is the current Returned Payment Charge? 8
A. The current Returned Payment Charge is $20. 9
Q. What is the proposed change to the Returned Payment Charge? 10
A. PacifiCorp proposes to reduce the Returned Payment Charge from $20 to $12. 11
1 PacifiCorp Rate Schedule 300 currently notes the Temporary Service Charge comes from R. 13-9. The reference should read R. 13-11 and is corrected in housekeeping changes later in the testimony. 2 PacifiCorp is proposing to consolidate the single phase and three phase into one Temporary Service Charge, with the same charge amount.
PAC/1200 Nottingham/5
Direct Testimony of Melissa S. Nottingham
Q. Why is PacifiCorp proposing this change? 1
A. Banks are now able to electronically transfer money from one bank to another bank 2
with less human interaction. This automation of a portion of the return payment 3
process has led to reduced costs to the Company when a payment is returned. Each 4
time the Company’s bank receives a returned item, the bank assesses a fee to the 5
Company. These fees account for the majority of the cost to the Company when a 6
customer’s payment is not acknowledged as valid. The fee can vary from $11 to $16 7
based on the bank presenting the returned payment, the amount of the payment, and 8
the number of times the payment is presented for payment. 9
While processing these payments has become more automated, labor costs are 10
not completely eliminated. Each returned item requires a PacifiCorp employee to 11
update the account information and reverse the payment if the billing system has 12
already posted the payment to the account. The labor costs range from $1 to $6 per 13
transaction. The Company is proposing $12 as it closely represents the low-end of 14
the average costs of both the labor and the bank fees associated with these returned 15
payments. See Exhibit PAC/1201 for the calculation of the proposed charge. 16
Facilities Charges 17
Q. What changes are you proposing for Facilities Charges? 18
A. PacifiCorp is proposing to lower the Facilities Charges for new distribution and 19
transmission service. Table 2 includes both the current Oregon Facilities Charge and 20
proposed Facilities Charge by voltage. 21
PAC/1200 Nottingham/6
Direct Testimony of Melissa S. Nottingham
TABLE 2 1
Oregon Facilities Charge OR
Current OR
Proposed
Distribution-Voltage Equipment (<57,000 volts)
On Customer $ 0.5% 0.4% On Company $ 1.4% 1.2% Transmission-Voltage Equipment (≥57,000 volts)
On Customer $ 0.3% 0.2% On Company $ 0.9% .85%
Facilities Charges are calculated using the financial models provided as Exhibit 2
PAC/1202. 3
Q. What are Facilities Charges? 4
A. Facilities Charges are the fixed costs of ownership of facilities necessary to connect 5
new load to PacifiCorp’s system, including but not limited to, the return and recovery 6
of any capital investment, operations and maintenance costs, and ongoing taxes. 7
Since these costs vary based on the type of service installed and are funded by both 8
PacifiCorp and the customer, there are four different Facilities Charges percentages, 9
as reflected in Table 2. The percentages in Table 2 are applied to both the customer’s 10
up-front payment for new service and PacifiCorp’s capital investment. The product 11
of these calculations is the Facilities Charges. 12
Q. Why is the Company proposing to lower the Facilities Charges? 13
A. Over time, PacifiCorp has reduced costs and increased operational efficiencies, 14
reducing the minimum amount required to own and operate the required facilities. By 15
lowering the percentages used to calculate the Facilities Charges, the savings will be 16
passed onto the customer. PacifiCorp is passing these savings on to customers 17
PAC/1200 Nottingham/7
Direct Testimony of Melissa S. Nottingham
through the proposal to lower the Facilities Charges. Please see Exhibit PAC/1202 1
for more detail. 2
Q. Please describe when Facilities Charges are billed to a customer. 3
A. When a customer requests to connect new or additional electric load on the 4
Company’s system, the request can trigger both capital investments and additional 5
maintenance costs. To ensure the new revenue generated will cover the costs 6
associated with the new electric load request, the Company contracts with the new 7
customers to recover the costs with a Contract Minimum Billing. 8
The Contract Minimum Billing is the greater of two items: the customer’s bill 9
or 80 percent of the customer’s bill plus the Facilities Charge. If the revenue from the 10
electrical usage covers the additional costs to own and operate the facilities, the 11
Contract Minimum Billing is fulfilled or the costs to own and operate are recovered 12
through the energy usage. If the revenue does not cover the additional costs to own 13
and operate the new electrical load, the Facilities Charge is added to the billing. 14
Temporary Service Charge 15
Q. Please describe the Temporary Service Charge. 16
A. A Temporary Service Charge applies when a customer requests the energization of a 17
temporary pedestal for temporary electric service. Temporary pedestals are typically 18
needed for periods when a premise is under construction. The Temporary Service 19
Charge covers the labor cost to bring either a single-phase or three-phase service line 20
to the temporary pedestal and energize the service. Once the service is energized, the 21
requesting customer is billed for the energy used. After the structure is completed, 22
PAC/1200 Nottingham/8
Direct Testimony of Melissa S. Nottingham
the temporary service is de-energized and the meter is relocated to the permanent 1
meter base. 2
Q. What is the current Temporary Service Charge? 3
A. The current charge is $85 for single-phase service and $115 for three-phase service. 4
Q. What are the proposed changes to the Temporary Service Charge? 5
A. PacifiCorp is proposing to increase the charge to $164 for all temporary service 6
installations and combine all phases into one charge. The $164 charge is based on the 7
current loaded rate for one hour of journeyman time, which is similar to the 8
methodology used when the Temporary Service Charge was initially calculated in 9
1987. 10
Q. Why is PacifiCorp proposing a change to the Temporary Service Charge? 11
A. The Temporary Service Charge has not been updated since 1987 and does not reflect 12
the Company’s current cost to provide this service. See Exhibit PAC/1201 for a 13
summary of the cost calculation. 14
Paperless Bill Credit 15
Q. Please describe the Paperless Bill Credit. 16
A. PacifiCorp is proposing to add a credit to Schedule 300 and Rule 10 to provide 17
customers a monthly credit if they have enrolled in paperless billing. 18
Q. What is the proposed amount of the Paperless Bill Credit? 19
A. The proposed monthly credit is $0.50. 20
Q. Why is PacifiCorp proposing a monthly credit for paperless billing? 21
A. PacifiCorp is proposing a Paperless Bill Credit that is correlated to the savings and 22
benefits of not sending a paper bill to a customer when that customer voluntarily 23
PAC/1200 Nottingham/9
Direct Testimony of Melissa S. Nottingham
enrolls in paperless billing. Electronic delivery of the customer’s monthly bill 1
eliminates the cost of the bill paper, the envelope, printing and stuffing of the 2
envelope, and the postage to mail the bill. Eliminating these costs results in savings 3
of approximately $0.49 per metered service. By passing this savings to the customer 4
in a $0.50 monthly credit, the Company is encouraging customers to utilize a lower 5
cost billing option and a more environmentally friendly option. All customers, 6
whether they are currently participating in or are new to paperless billing, are eligible 7
to receive a credit as long as they are enrolled in paperless billing. Please see Exhibit 8
PAC/1203 for more detail on the calculation of the credit and Mr. Meredith’s Exhibit 9
PAC/1401 for the proposed tariff changes to Schedule 300 and Rule 10. 10
Work Performed at Consumer’s Request–Service Connection Charge 11
Q. Please describe the changes PacifiCorp is proposing to Schedule 300 and Rule 12
11D? 13
A. PacifiCorp proposes to add language to Rule 11D to indicate there is no Service 14
Connection Charge for customers requesting new service at a location with remote 15
connection capability during after-hours or on weekends/holidays. For locations with 16
remote connection capability, PacifiCorp will no longer be required to send an 17
employee to the site to manually turn the power on for a new service connection. 18
However, since not all meters in Oregon have been upgraded with a remote 19
connection meter, the Company still anticipates employees traveling to and from non-20
remote connection meter locations to turn on electric service. Customers requesting 21
service connection at locations without a remote connection capable meter will 22
continue to be charged the Service Connection Charge. 23
PAC/1200 Nottingham/10
Direct Testimony of Melissa S. Nottingham
In addition to the change to Rule 11D, PacifiCorp proposes to change the 1
description of the Service Connection Charge in Schedule 300 to specify there is a 2
charge for non-remote service connections after hours and on weekends, and no 3
charge for remote service connection. Please refer to Mr. Meredith’s Exhibit 4
PAC/1401 for the proposed tariff change. 5
IV. HOUSEKEEPING 6
Q. What housekeeping changes are you proposing? 7
A. I am proposing housekeeping changes to Sheet No. 300.3 in Schedule 300 to correct 8
inaccurate sheet references. The Temporary Service Charge is changed from Sheet 9
R13-9 to R13-11 and the Contract Administration Credit is changed from Sheet R13-10
11 to R13-13. Please see Mr. Meredith’s Exhibit PAC/1401. 11
V. CONCLUSION 12
Q. Please summarize your testimony. 13
A. The proposed changes to PacifiCorp’s Schedule 300, Charges as Defined by the 14
Rules and Regulations, represent both the ongoing commitment by PacifiCorp to keep 15
operational costs low for customers and align customer charges with cost. With one 16
exception, all of the proposed charges are lower than current charges, and will benefit 17
a comprehensive and diverse group of customers. The proposed change to Rule 11D 18
will allow applicants connecting at a location with remote connection capability to 19
connect after hours, weekends, and holidays while avoiding connection fees. The 20
proposed bill Paperless Bill Credit creates an opportunity for customers to manage 21
costs and directly receive the benefits of their choices. 22
PAC/1200 Nottingham/11
Direct Testimony of Melissa S. Nottingham
Q. What is your recommendation regarding changes to Schedule 300, Rule 10, Rule 1
11D, and the proposed paperless bill credit? 2
A. I recommend that the Commission approve the changes to Schedule 300, Rule 10, 3
Rule 11D, and the proposed Paperless Bill Credit (included in Rule 10). 4
Q. Does this conclude your direct testimony? 5
A. Yes. 6
Docket No. UE 374 Exhibit PAC/1201 Witness: Melissa S. Nottingham
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
PACIFICORP
___________________________________________________________
Exhibit Accompanying Direct Testimony of Melissa S. Nottingham
Schedule 300 Charge Review
February 2020
Rul
eC
harg
eTi
mes
Cha
rged
7/
1/18
-6/3
0/19
Cur
rent
Cha
rge
Act
ual C
ost
Prop
osed
Cha
rge
Com
men
ts
R.1
0-2
Ret
urne
d Pa
ymen
t Cha
rge
14,3
64$2
0.00
$11.
25 to
$16
.25
$12
The
fees
cha
rged
by
the
com
pany
's b
anks
whe
n a
paym
ent i
s re
turn
ed a
nd th
e la
bor t
o pr
oces
s re
turn
ed p
aym
ents
on
cust
omer
acc
ount
s. T
he fe
es v
ary
base
d on
the
bank
and
how
man
y tim
es th
e sa
me
paym
ent i
s pr
oces
sed.
R.1
3-2
Faci
litie
s C
harg
es
On
Faci
litie
s at
Les
s th
an 6
9,00
0 Vo
lts
Inst
alle
d at
Cus
tom
er's
Exp
ense
0.5%
per
mon
th0.
4 %
per
mon
th
R.1
3-2
Faci
litie
s C
harg
es
On
Faci
litie
s at
Les
s th
an 6
9,00
0 Vo
lts
Inst
alle
d at
Com
pany
's E
xpen
se1.
4% p
er m
onth
1.2%
per
mon
th
R.1
3-2
Faci
litie
s C
harg
es
For F
acilit
ies
at a
nd a
bove
69,
000
Volts
In
stal
led
at C
usto
mer
's E
xpen
se0.
3% p
er m
onth
0.2%
per
mon
th
R.1
3-2
Faci
litie
s C
harg
es
For F
acilit
ies
at a
nd a
bove
69,
000
Volts
In
stal
led
at C
ompa
ny's
Exp
ense
0.9%
per
mon
th0.
85%
per
mon
th
R.1
3-11
Tem
p Se
rvic
e C
harg
e - S
ingl
e Ph
ase
1,83
8$8
5.00
$1
64.1
8$1
64In
crea
se in
labo
r cos
ts, c
alcu
late
d at
one
hou
r of t
he lo
aded
labo
r cos
t for
the
type
of e
mpl
oyee
pe
rform
ing
the
wor
k.
R.1
3-11
Tem
p Se
rvic
e C
harg
e - T
hree
Pha
se11
$115
.00
$164
.18
Rem
ove
Thre
e-ph
ase
tem
pora
ry s
ervi
ce is
rare
ly u
sed
by o
ur c
usto
mer
s as
the
type
of s
ervi
ce le
nds
itsel
f to
perm
anen
t ins
talla
tions
. Rec
omm
end
rem
ovin
g th
is c
ost a
nd m
ergi
ng th
e tw
o te
mpo
rary
ser
vice
cha
rges
in
to o
ne.
NEW
Pape
rless
Bill
Cre
dit
00
$.50
Bill
Cre
dit
Each
mon
th, c
usto
mer
s pa
rtici
patin
g in
pap
erle
ss b
illing
will
rece
ive
a cr
edit
dire
ctly
cor
rela
ted
to th
e sa
ving
s an
d be
nefit
s of
this
opt
ion.
Dat
a N
ot O
btai
ned
N/A
Cur
rent
dat
a su
ppor
ts a
redu
ctio
n. T
he d
ata
is fr
om th
e co
rpor
ate
Use
of F
acilit
ies
Cha
rges
foun
d on
line
in th
e co
rpor
ate
Fina
ncia
l Ana
lysi
s To
ols/
Mod
els.
The
faci
litie
s ch
arge
s ar
e ba
sed
on th
e in
form
atio
n re
porte
d in
the
com
pany
's F
eder
al E
nerg
y R
egul
ator
y C
omm
issi
on F
orm
No.
1 (F
ERC
form
1),
and
supp
ortin
g w
orki
ng p
aper
s.
Sche
dule
300
Fee
Sum
mar
y
Exhibit PAC/1201 Nottingham/1
Paym
ent S
uppo
rt Respo
nse
Contact(s): To
ny W
orthington Ch
arge
Curren
t Cha
rge in Effect
Num
ber o
f tim
es th
e Ch
arge
was assessed
durin
g the test period
Employ
ee Classificatio
n do
ing
the work
Average Time to
Perform W
ork
Activ
ity Rate
Cost
Cost*
Returned
Paymen
t Cha
rge
$20.00
14,364
Bank
Cha
rge
N/A
$5 to
$10
$5.00
$10.00
CCO
0.00
4166
7$3
6.24
$0.15
$0.15
Paym
ent S
uppo
rt0.08
6666
67$5
5.56
$4.82
$4.82
Custom
er Care
0.03
3333
33$3
8.58
$1.29
$1.29
$11.25
$16.25
*Ban
k fees vary de
pend
ing on
the ba
nk and
the subm
issions. C
osts are a ra
nge.
Test Yea
r: H
istoric
al tw
elve
mon
ths en
ding
June
201
9
Exhibit PAC/1201 Nottingham/2
T&D Ope
ratio
ns Respo
nses
Contact(s): Scott L
iedtke
Charge
Curren
t Cha
rge in Effect
Num
ber o
f tim
es
charge
d du
ring test
perio
d
Employ
ee
classific
ation
completing work
Activ
ity Rate of
Employ
ee
Average tim
e for
employ
ee perform
ing
the work (m
inutes)
Average Ta
sk
Time (hou
rs)
Average travel time for
employ
ee perform
ing the
work
Actual Cost
Tempo
rary Service Cha
rge
Service Drop
and
Meter only ‐ S
ingle Ph
ase
$85.00
1838
Journe
yman
Linem
an$1
64.18
601
N/A
$164
.18
Tempo
rary Service Cha
rge
Service Drop an
d Meter only ‐ T
hree
Pha
se$1
15.00
11Journe
yman
Linem
an$1
64.18
N/A
N/A
N/A
N/A
Test Yea
r: H
istoric
al tw
elve
mon
ths e
nding June
201
9
Exhibit PAC/1201 Nottingham/3
Tariff R
espo
nses
Contact(s): Ro
b Stew
art Ch
arge
Curren
t Fee
in Effect
Commen
ts
Facilities C
harges
On Facilities a
t Less tha
n 57
,000
Volts
Installed at Customer's Expe
nse
0.5%
per m
onth
Curren
t data supp
orts a re
duction. The
data is from
the corporate Use of F
acilitie
s Cha
rges fo
und on
line in th
e corporate Fina
ncial A
nalysis
To
ols/Mod
els. The
facilities c
harges are based
on the inform
ation repo
rted
in th
e compa
ny's Fede
ral Ene
rgy Re
gulatory Com
miss
ion Fo
rm
No. 1 (F
ERC form
1), an
d supp
ortin
g working
pap
ers.
Facilities C
harges
On Facilities a
t Less tha
n 57
,000
Volts
Installed at Com
pany
's Expe
nse
1.4%
per m
onth
(corrected
)Prop
osed
new
: 1.2% per m
onth. Cu
rren
t data supp
orts a re
duction. See
explana
tion ab
ove.
Facilities C
harges
Fo
r Facilitie
s at a
nd abo
ve 57,00
0 Vo
lts Installed at Customer's Expe
nse
0.3%
per m
onth
(corrected
)Prop
osed
new
: 0.2% per m
onth. Cu
rren
t data supp
orts a re
duction. See
explana
tion ab
ove.
Facilities C
harges
Fo
r Facilitie
s at a
nd abo
ve 57,00
0 Vo
lts Installed at Com
pany
's Expe
nse
0.9%
per m
onth
Prop
osed
new
: 0.85%
per m
onth. Cu
rren
t data supp
orts a re
duction. See
explana
tion ab
ove.
Test Yea
r: H
istoric
al tw
elve
mon
ths e
nding June
201
9
Exhibit PAC/1201 Nottingham/4
Docket No. UE 374 Exhibit PAC/1202 Witness: Melissa S. Nottingham
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
PACIFICORP
___________________________________________________________
Exhibit Accompanying Direct Testimony of Melissa S. Nottingham
Facilities Charge Calculation
February 2020
Distribution Transmission
1 Return on Capital 4.42% 4.94%2 Recovery of Capital 2.83% 1.87%3 State & Federal Income Taxes 0.99% 1.09%4 Local Property Taxes 0.73% 0.80%5 Operation & Maintenance 2.91% 0.82%6 Administrative & General 0.53% 0.53%7 Other Taxes 0.46% 0.13%8 Customer Accounts & Services 1.49% N/A
9 TOTAL (lines 1‐8) 14.36% 10.18%10 Monthly % 1.20% 0.85%11 Monthly Proposed (rounded) 1.20% 0.85%
12 Subtotal Lines 4‐8 6.12% 2.28%13 Capital Replacement Annuity 0.91% 0.54%
14 TOTAL (lines 12‐13) 7.03% 2.82%15 Monthly % 0.59% 0.24%16 TOTAL (lines 4, 5, 7 & 13) 5.01% 2.29%17 Monthly % 0.42% 0.19%18 Monthly Proposed (rounded) 0.40% 0.20%
USE OF FACILITIES CHARGES, Annual, %2018
Company Provides Initial Capital Investment (allowance)
Customer Provides Initial Capital Investment (customer advance)
Exhibit PAC/1202 Nottingham/1
Docket No. UE 374 Exhibit PAC/1203 Witness: Melissa S. Nottingham
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
PACIFICORP
___________________________________________________________
Exhibit Accompanying Direct Testimony of Melissa S. Nottingham
Paperless Bill Credit Calculation
February 2020
Proposed Paperless Credit Calculation
Average Cost of One Sheet Paper Bill
Paper $0.0107
Envelope $0.0382
Printing and Mailing $0.0562
Postage $0.3910
Total Cost $0.4961
Proposed Paperless Credit ($0.50)
Exhibit PAC/1203 Nottingham/1