II. Application

On November 29, 2005, PacifiCorp filed a 2007 test year general rate case (GRC) application seeking an overall revenue requirement increase of $11.0 million to provide it with an opportunity to earn an 11.8% return on equity. That requested increase represents an overall 15.6% increase to PacifiCorp's California customers. PacifiCorp subsequently updated its request to reflect the impacts of Decision (D.) 06-04-034 and D.06-02-033. The former decision approved an irrigation transition rate for Klamath Basin irrigation customers and the latter decision required offsetting adjustments from the acquisition of PacifiCorp by MidAmerican Energy Holding Company. Details of those adjustments are set forth in Exhibit 22. That update resulted in a $1.8 million increase in its requested revenue requirement to $12.8 million from $11.0 million and represented an overall increase to its California customers of 18.8% from 15.6%.

As part of its application, PacifiCorp requested authority to implement an ECAC and a PTAM. It requested an ECAC so that it could recover its volatile energy cost in a timely and efficient manner. It requested a PTAM so that it could timely recover prudently incurred cost increases related to inflation, new plant, general operating cost increases, unforeseen events, and changes in its capital structure without filing a GRC.

Protests to the application were filed by the Division of Ratepayer Advocates (DRA) and the KWUA. In addition, appearances were entered by several interested parties including the Bureau of Reclamation and United States Fish and Wildlife Service of the United States Department of Interior (Interior), the County of Siskiyou, the California Farm Bureau Federation (CFBF), the Western Manufactured Housing Community Association, Roseburg Forest Products, the Hoopa Valley Tribe, the Pacific Coast Federation of Fishermen's Association (PCFFA), and the Oregon Natural Resources Council (ONRC).

On March 2, 2006, Investigation (I.) 06-03-002 was opened as a companion to, and consolidated with, PacifiCorp's GRC application for the purpose of taking evidence and entering orders within the jurisdiction of this Commission in connection with PacifiCorp's revenue requirement, rates, service, practices, maintenance and facilities.