Arkansas Public Service Commission Tariff ("TF") Docket Summary Cover Sheet Must be filed with each new TF docket filed at the Commission APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 STYLE OF DOCKET: (Style may be changed by Secretary of Commission) IN THE MATTER OF PROPOSED TARIFF REVISIONS BY OKLAHOMA GAS AND ELECTRIC COMPANY NECESSITATED BY THE SPP IMPLEMENTATION OF THE !NTERGRATED MARKET DOCKET DESIGNATOR: [3] TF Docket Number: LAST RATE CASE DOCKET: Does this change company name: 0 Yes I3J No RELATED DOCKETS: PETITIONER· Oklahoma Gas and Electric Company 321 North Harvey Oklahoma, OK 73102 ATTORNEY(S;)NAME, ADDRESS,PHONE.FAX AND E-MAIL Lawrence E. ChisenhalL Jr. Chsicnhall, Nestrud, & Julian, P.A. 400 West Capitol, Suite 2840 Little Rock, AR 7220 I Phone: 501-3 72-5800; Fax: 501-3 72-4941 email: [email protected] Wnte a bnefstatemcnt, !imtted to the space ptovtded hC!em desc11bing the case that you arc filmg. Please ptovide enough information to assure that the ~"a"'tu,.r..,e"o'-f"'vo00u,.r_,d,_,o... cko:e'-'t-"is'--c"'l"'ea"'r'-.- - - - - - - - - - - - - - - - - - - - , Proposed tariff revisions necessary due to implementation of Southwest Power Pool Integrated Market Place Pursuant to Rule 2.03(b), of the Commission's Rules of Practice and Procedure, please provide name, address, _phone, fax, e-mail of at least one person, but not more than two, to I_!Q_Qear on the Service List for this docket Lawrence E. Chisenhall, Jr., Chisenhall, Ncstrud, & Julian, P.A., 400 West Capitol, Suite 2840, Little Rock, AR 72201 Phone: 501-372-5800; Fax: 501-372-4941; email: [email protected] Adam Bigknife, Oklahoma Gas & Electric Company, 321 Norih Harvey, Oklahoma, OK 73102 Phone: 405-553-3110; fax: 405-553-3747; email: [email protected] 1, Number of customers by class affected by this tariff change: Day-Ahead Pricing 1 customer, Residential Variable Peak Pricinq 3,534 customers, and General Service Variable Peak 2. Company's current authorized retail revenue requirement: $88,607 368 3. Estimated annual retail revenue impact if proposal is approved, both in dollars and as a percentage of current retail revenue requirement: Unavailable at this time 4. Estimated monthly impact on an average residential customer in both dollars and percentage increase: Unavailable at this time 5. Proposed effective date: 30 days after filing Form completed by: _ _ Representing: _ _ Date: APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF PROPOSED TARIFF REVISIONS BY OKLAHOMA GAS AND ELECTRIC COMPANY NECESSITATED BY THE SPP IMPLEMENTATION OF THE INTEGRATED MARKET DOCKET NO. 14-_ _ _-TF DIRECT TESTIMONY OF DAVID R. DYKE ON BEHALF OF OKALHOMA GAS AND ELECTRIC COMPANY JANUARY 17, 2014 APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 David R. Dyke Direct Testimony 1 Q. BUSINESS ADDRESS. 2 3 PLEASE STATE YOUR NAME, BY WHOM YOU ARE EMPLOYED, AND YOUR A. My name is David R. Dyke. I am employed by Oklahoma Gas and Electric 4 Company ("OG&E") and my business address is 321 N. Harvey, Oklahoma City, 5 Oklahoma 73101 . 6 7 Q. PROFESSIONAL EXPERIENCE. 8 9 PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND A. I am a graduate of East Central University where I received a Bachelor of 10 Science in Environmental Science. I accepted a position with the Oklahoma 11 Corporation Commission ("OCC") Public Utility Division ("PUD") in 1981 as a 12 Public Utility Specialist where I worked on rate design and fue l clause adjustment 13 audits until being appointed Fuel Procurement Manager in 1983. As the Fuel 14 Manger, I was responsib le for overseeing th e fuel and purchased power 15 adjustment clause audits for electric and natural gas public utilities in Oklahoma . 16 In 1985, I was appointed Deputy Director of the PUD and served in that position 17 for nine years. During my tenure with the PUD I managed over 100 utility cases 18 and filed testimony before the OCC in more than 30 proceedings. In 1994, I 19 joined the Oklahoma Department of Environmental Qua lity ("DEQ") as the 20 Deputy Director of the Air Quality Division and served in several leadership 21 positions with the DEQ before being appointed Director of Admin istrative 2 APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 1 Services in 2003. In this role , my broad respons ibilities included rule-making and 2 legislative activities , accounting and finance , human resources , information 3 techno logy, records and property management. I began my employment with 4 OG&E in October 2009. 5 6 Q. WHAT POSITION DO YOU CURRENTLY HOLD WITH OG&E? 7 A. I hold the position of Regulatory Compliance Specialist. Q. WHAT ARE YOUR RESPONSIBILITES AS REGULATORY COMPLIANCE 8 9 SPECIALIST FOR OG&E? 10 11 A. My current responsibi lities include oversight of Energy Cost Recovery ("ECR") 12 filings and activities in Arkansas and case management of Fuel Clause 13 Adjustment ("FCA") activities including the annual FCA audit and prudence 14 review in Oklahoma . I also serve as a resource in rate case and environmental 15 regulatory policy matters and monitor comp liance with regu latory filings. 16 17 Q. PUBLIC SERVICE COMMISSION ("APSC" OR "COMMISSION")? 18 19 HAVE YOU PREVIOUSLY PRESENTED TESTIMONY BEFORE THE ARKANSAS A. Yes. I fi led testimony to support the Company's compliance filing pursuant to Docket No. 10-059-U. 20 21 22 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS PROCEEDING? 3 APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 1 A. The purpose of my testimony is to support changes to the ECR tariff in order to 2 provide clarification regarding the Company's participation in the Southwest 3 Power Pool Integrated Market 11 ("SPP IM") which is replacing the Energy 4 Imbalance Services ("EIS") Market. 5 6 Q. CHANGES? 7 8 HAVE YOU PREPARED TARIFF SHEETS THAT REFLECT THE PROPOSED A. Yes. Exhibit DRD-1 is a red line version of the revised ECR tariff sheets reflecting the updates described in my testimony. Exhibit DRD-2 is a clean copy of the 9 revised tariff sheets. 10 11 12 Q. OG&E's PARTICIPATION IN THE SPP INTERGRATED MARKET. 13 14 PLEASE DECRIBE THE TARIFF CHANGES PROPOSED BECAUSE OF A. Upon implementation of the SPP IM , the current EIS Market will no longer be 15 available with its current functions being performed in the new SPP IM. OG&E 16 plans to participate in the SPP IM , therefore, the ECR tariff requires updating for 17 the new market. The Company is proposing to replace EIS with SPP IM and 18 define SPP IM in the tariff. This change simply updates and clarifies the ECR 19 tariff language and formulas. 20 1 Docket No. 04-137-U, Order No. 10 Find ings and Rulings of the Commission on Joint Petition for Approval to Participate in Southwest Power Pool's Integrated Marketplace and for Declaratory Relief. 4 APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 1 We are also recommending the deletion of Note (7) which refers to a minimum 2 level of off-system and EIS sales revenue. Participation in the market changes 3 the Company's level of contro l over both of these sales and the historical dollars 4 used in determining the level of revenues will no longer be comparable to the s level settled in the market. Therefore this note is no longer valid . 6 7 Q. DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? 8 A. Yes. 5 APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ATTESTATION I do hereby swear and affirm that the foregoing is my testimony in this docket. David R. Dyke January 17, 2014 Date 6 APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION I" RcviscdQAgiw! Replacing - Exhibit DRD-1 Sheet No. 70.0 -'"'Ourigl>!•i.wn<"-''- -- Sheet No. 70.0 OKLA HOMA GAS AND EL ECTRIC COMPANY Name of Company Kind of Service: Electric Part I. Schedule No. Class of Service: All -~E~C!-' R_ _ _ _ __ Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On! 1. RECOVERY OF ENERGY COST Energy Cost Recovery Rider ("Rider ECR") defines the procedure by which the "Energy Cost Rates" of Oklahoma Gas and Electric Company ("OG&E" or "Company") shall be established and periodically re-determined. The Energy Cost Rates shall recover the Company's net fuel and purchased energy cost, as defined in this Rider ECR. 2. ENERGY COST RATES 'TI1e Energy Cost Rates to be effecti ve under this Rider ECR shall be determined in the manner prescribed by the A rkansas Public Service Commission ("APSC" or "Commission") in its final order in Docket No. I 0-067-U and shall become effective upon the date established by the Commission. The Energy Cost Rates shall then be redetermined annually through filings made in accordance with the provisions of Paragraph 3 of d1is Rider ECR. The Energy Cost Rates shall be applied to each customer 's monthly bi lling energy (kWh). The ECR On-Peak (ECRon) and the ECR Off-Peak (ECRorr) are applicable to the appropriate energy component in the R-TOU, R-VPP, CS-TOU, GS-VPP, and PL -TOU tariffs. The ECR Standar d (ECR,) is applicable to the energy of al l remaining tariffs. 3. ANNUAL REDETERMINATION On or before M arch 15 of each year, the Company shall file re-determined Energy Cost Rates, Standard and TOU, for each service level with the Commission. The redetermined Energy Cost Rates for each service level shall be determined by application of the Energy Cost Rate Formula set out in Attachment A of this Rider ECR. Each such revi sed service level Energy Cost Rates shall be fi led in the proper underlying docket and shall be accompanied by a set of work papers sufficient to fully document the calculations of the five service level revi sed Energy Cost Rates. TillS SPACE FOR PSC USG ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION I'' RcviscdQRgiM+ Sheet No. Replacing _ __,0"-'ri""gi....,n-"Jal' --- - - Exhibit DRD-1 70.1 Sheet No. _]QJ_ OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: E lectric Class of Service: All Part I. Schedule No. _ ... E~C~ R,___ _ _ __ Title: Energy Cost Recovery Rider CRider ECR) PSC File Mark Ont The re-determined Energy Cost Rates shall reflect the projected Energy Cost for the 12month period commencing on April l of each year ("Projected Energy Cost Period") together with each service level true-up adjustment reflecting the over-recovery or underrecovery of the Energy Cost for the l2-month period ended December 3 l of the prior ca lendar year ("Historical Energy Cost Period"). The Energy Cost Rates so determined shall be effecti ve for bills rendered on and after the first billing cycle of April of the filing year and shall remain in effect for twel ve (12) months, except as otherwise provided for below. TI1e annual ECR filing shall include a report of the following: I. provide a narrative discussion of the reasons for the overall change in the ECR Rider factors from the prior year; 2. provide a cu mulati ve presentation of fuel and purchased energy costs by FERC account and month for the historical year; 3. identify and expl ain changes of I 0% or more from the prior year for major cost components of the ECR Rider, including fuel expense, purchased energy expense, off system sales revenues, etc.; 4. identify changes in accounting procedures affecting fuel and purchased power costs, such as changes in FERC account number classi fications and changes in costing methodologies; 5. identify changes in fuel and purchased power procuremen t practices; 6. identify the monthly level of coal inventory in days and tons for the historical year; TillS SPACE I·OR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION I" Rcviscdf)tig\tml Replacing _ Sheet No. _,_,O,....n~..._·i•.... ta...._l_ __ Exhibit DRD-1 70.2 Sheet No. _70.2 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Part I . Schedule No. Class of Service: .6.!! --'=E"' C~R,__ _ _ __ Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark Onl 4. 7. identify the average price per unit for each fuel type and purchased power for the historical year; 8. identify and discuss changes in environmental regulations affecting fuel and purchased energy costs and explain the Company's plans for compliance; 9. identify plant outages for the historical year and explain the cause(s) of the outages; and 10. compare the prior year projections for on-peak and off-peak ECR Rider factors to actual prices and provide the calculation and supporting documentation to verify the development of the price di fferential between the on-peak and off-peak factors for the upcoming year. ADJUSTMENTS If prior to the annual redetermination of the Energy Cost Rates APSC Gen eral Staff ("Staff') or the Company becomes aware of an event that is reasonably expected to occur and/or has occurred which will materially impact the Company's Energy Cost, either the Staff or the Company may propose an adjustment to the Energy Cost Rate Formula set out in Attachment A of this Rider ECR. Furthermore, should a cumulative over-recovery or under-recovery balance for all service levels arise during any Rider Cycle which exceeds ten percent (I 0%) of the Projected Energy Cost for the Projected Energy Cost Period, then either the Staff or the Company may propose an interim revision to the then currently effective Energy Cost Rates. TillS SPACbFOR i•sc USE ON LY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMM ISSION Exhibit DRD-1 Sheet No. 70.3 I" RcviscdGftg\+lft\ Sheet No. 70.3 Replacing _ --->.!On'-"·go.cii'-'"Ja"-1_ __ OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. _ ..,E"'C""R,___ _ _ __ Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On! ATTACHMENT A ENERGY COST RATE FOR MULA EC R, = Standard Energy Cost R ate ECR, = TUA + PEC * EAF PES WHERE, TUA = True-Up Adjustment for the H istorical Energy Cost Period Including Carrying Charges ( I ) 12 TUA = L ((ECj * EAFj)- (RRj + RECj- PTUj)) + CCj J•l ECj = Energy Cost for Mo nth j of the Historical Energy Cost Period ECi = FEi + PEi- OS SRi- S02i FEj = Fuel Expense Charged to Accounts 501 and 547 in M onth j of the H istorical Energy Cost Period (5) PEj = Purchased Energy Expense for the Historical Energy Cost Period Charged to Account 555 and Associated Transmission Services in Account 565. Less: Cogeneration Expense, l!;ls~PP ltv! Sales (6~ TillS SI'ACIJ POR PSC USE oNLY _ -{ Commented [REVl]: AT ~--~-~--------~ APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMM ISS ION Exhibit DRD-1 Sheet No. 70.4 I" Rcvbcd9ffniw! Replacing __("-")r!..!Ji~""·i•""''""-1_ __ Sheet No. 70.4 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: tJl Part I. Schedule No. _.=E,_,C,_,_R '--- - - Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On I OSSRi =Off System Sales Revenue Recorded in Account 447 in Month j of the Historical Energy Cost Period (7) lsPP IM- Southwest Power Pool lnte!!rated Markey S02i = Revenues Associated with the Sale of S02 Emissions Allowances Recorded in Account 411.8 EAFj =Energy Cost Allocation Factor for Month j of the Historical Energy Cost Period RRi = Revenue under Rider ECR for Month j of the Historical Energy Cost Period RECi = Revenues from the Sale of Renewable Energy Credits Assigned to the Arkansas Jurisdiction for Month j of the Historical Energy Cost Period PTUj = Prior Period True-Up Adjustment Applicable for Month j of the Historical Energy Cost Period CCi =Carrying Charges for Month j of the Historical Energy Cost Period CCj = (BBj + EBj)/2 * CC R * Days j /365 BBj = Beginning Over/Under-Recovery Balance Excluding Carrying Charges for Month j of the Histori cal Energy Cost Period EBj = Ending Over/Under-Recovery Balance Excluding Carrying Charges for Month j of the Historical Energy Cost Period TillS SPA('fl fQ R I'SC USE ONLY l Commented [REV2]: AT APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION I ' Revised~ Exhibit DRD-1 Sheet No. 70.5 Replacing _ __,O'"'n-"'g.,_.in""alc._ · __ Sheet No. 70.5 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. --"'E"=C'-"R,__ _ _ __ Title: Energy Cost Recovery Rider (Rider ECR) I'SC File Mark Onl CCR =Carrying Charge Rate (3) DAYSj = Number of Days in Month j of the Historical Energy Costs Period PEC = Estimated Energy Cost for the Projected Energy Cost Period (4) 12 PEC=~ECi j=l EAF = Energy Cost Allocati on Factor with Losses Most Recently Approved by the APSC for Applicatio n of this Rider ECR (2) PES = Projected Sales (kWh) subject to this rider ECR for the Proj ected Energy Cost (5) TillS SPACE l'OR I'SC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISS ION I" Rcvi!.cdAHginal Exhibit DRD-1 Sheet No. 70.6 Replacing - --"'0"-ri..,g"' incu. al, ___ __ Sheet No. 70.6 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. -""'E""C,_,_R ,__ _ _ __ Title: Energy Cost Recovery Rider (Rider ECR) I'SC File Mark On I TillS SI'ACE l·OR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISS ION I" Rcviscdlffig±nttl Exhibit DRD-1 Shcc! No. 7 0 .7 Replacing _ __,_, O,_,.ri"'-'n:"' gi, -11_ __ Shee! No. 70.7 OKLAH OM A GAS AND ELECTRIC COMPANY Name of Company Kind of Ser vice: Elcc!ric Class of Service: 1\11 Pa rt I. Schedule No. -""E""C""'R,__ __ __ T itle: Energy Cost Recovery Rider (Rider ECR) PSC File Mark Onl TIME OF USE ENERGY COST RATE FORMULA ECRon =On-Peak Energy Cost Rate ECRon = Proj ected Incremental On Peak Period Fuel Cost Per kWh ECRorr = O ff-Peak Energy Cost Rate ECR = ECR, * (PES"''+ PESorr) - (ECRon * PESon) off PESorr PESon = Total Proj ected Sales for the O n-Peak Period (kWh) PESorr = Total Proj ected Sales for the Off-Peak Period (kWh) NOTES: ( I) The Historical Energy Cost Period is the cal endar year immediately preceding the filin g year. (2) The value of EA F which will be used to calculate the Estimated Energy Costs shall be based on the ratio of Arkansas proj ected sales adj usted for losses to system proj ected sales adjusted for losses. For true-up purposes, the E AF which will be used to calcul ate the actual energy cost applicable to Arkansas retail customers will be based on the ratio of Arkansas actual billing determinants adjusted for losses to system actual sales adjusted for losses. (3) The Carrying Charge Rate shall be the Commission-approved rate of interest on customer deposits. nus SPACH ORPSCUSEONtY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERV ICE COMMISS ION I'' Rcvi,cdffflt:HKti Replacing - Exhibit DRD-1 Sheet No. 70.8 -'-'OuricO.!'i!.!.!lhJ!..II_ __ Sheet No. 70.8 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company IGnd of Service: Electric Cl ass of Service: All Part I. Schedule No. - -'=E"'C'-'-R'-----Title: Energy Cost Recovery Rider (Rider ECR) J'SC File Mark On! • (4) Should there be unusual circumstances associated with any Projected Energy Cost Period either the Company or the S taff may propose use of a Projected Energy Cost (PEC vari able) different from that defined by this formula. (5) The fue l cost associated with the DAP incremental kWh will be deducted from fuel cost and the fu el cost associated with DAP decre mental kWh will be added to fuel cost. The incremental DAP kWh will be removed fro m PES and the decremental DAP kWh will be added to PES. (6) ll1e recovery of purchased energy costs associated with long-term energy resources must be approved by the Commission prior to recovery through the ECR Rider. (7) ~e ArkaAsasjttrisdietioAal portioA of re•lent:tes for off systeAl sales BAd 131S Sales shall eE)t:tlll a miAitflt:ttn of the lllil fonfla year level of re,•eAt:tes of $2383.010 fJi us RAY reveAt:tes iA excess of the lllil forA11l year level. TillS SI' ACEI·OR l'SC USE ONLY -{ Commented [REV3]: RT APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION P 1 Revised Replacing Sheet No. Exhibit DRD-2 70.0 Original _ __ Sheet No. 70.0 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Serv.ice: Electric Class of Service: All Part I. Schedule No. _.:=E:.C::.:. ::: R ! - - - - - Title: Energy Cost Recovery Rider CRider ECR) PSC File Mark On! 1. RECOVERY OF ENERGY COST Energy Cost Recovery Rider ("Rider ECR") defines the procedure by which the "Energy Cost Rates" of Oklahoma Gas and Electric Company ("OG&E" or "Company") shall be established and periodically re-determined. The Energy Cost Rates shall recover the Company's net fuel and purchased energy cost, as defined in this Rider ECR. 2. ENERGY COST RATES The Energy Cost Rates to be effective under this Rider ECR shall be determined in the manner prescribed by the Arkansas Public Service Commission ("APSC" or "Co mmission") in its final order in Docket No. 10-067-U and shall become effective upon the date established by the Commission. The Energy Cost Rates shall then be redetermined annually through filings made in accordance with the provisions of Paragraph 3 of this Rider ECR. The Energy Cost Rates shall be applied to each customer's monthly bi1ling energy (kWh). The ECR On-Peak (ECRon) and the ECR Off-Peak (ECRorr) are applicable to the appropriate energy component in the R-TOU, R-VPP, CS-TOU, GS-VPP, and PL-TOU tariffs. The ECR Standard (ECRs) is app licable to the energy of all remaining tariffs. 3. ANNUAL REDETERMINATION On or before March 15 of each year, the Company shall fi le re-determined Energy Cost Rates, Standard and TOU, for each service level with the Commission. The redetermined Energy Cost Rates for each service level shall be determined by application of the Energy Cost Rate Formula set out in Attachment A of this Rider ECR. Each such rev ised service level Energy Cost Rates shall be filed in the proper underlying docket and shall be accompanied by a set of work papers sufficient to fully document the calculations of the five service level revised Energy Cost Rates. THIS SPACE FOR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION 1st Revised Replacing Sheet No. Exhibit DRD-2 70.1 Original _ __ Sheet No. 70.1 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. -=E=C'-R '- " - - - - - Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On I The re-determined Energy Cost Rates shall reflect the projected Energy Cost for the 12month period commencing on April 1 of each year ("Projected Energy Cost Period") together with each service level true-up adjustment reflecting the over-recovery or underrecovery of the Energy Cost for the 12-month period ended December 31 of the prior calendar year ("Historica l Energy Cost Period"). The Energy Cost Rates so determined shall be effective for bills rendered on and after the first billing cycle of April of the filing year and shall remain in effect for twelve (1 2) months, except as otherwise prov ided for below. The annual ECR filing shall include a report of the following: 1. provide a narrative discussion of the reasons for the overall change in the ECR Rider factors from the prior year; 2. provide a cumulative presentation of fuel and purchased energy costs by FERC account and month for the histori cal year; 3. identify and explain changes of 10% or more from the prior year for major cost components of the ECR Rider, including fuel expense, purchased energy expense, off system sales revenues, etc.; 4. identify changes in accounting procedures affecting fuel and purchased power costs, such as changes in FERC account nu mber classifications and changes in costing methodologies; 5. identify changes in f uel and purchased power procurement practices; 6. identify the month ly level of coal inventory in days and tons for the historical year; TH IS SPACE rOR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION Ist Revised Re placing Sheet No. Exhibit DRD-2 70.2 Original _ __ Sheet No. 70.2 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Compa ny Kind of Service: Electric Class of Service: All Part I. Schedule No. -..!::E:..:::C~R~----Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On I 4. 7. identify the average price per unit for each fuel type and purchased power for the historical year; 8. identify and discuss changes in environmental regulations affecting fuel and purchased energy costs and explain the Company' s plans for compliance; 9. identify plant outages for the historical year and explain the cause(s) of the outages; and 10. compare the prior year projections for on-peak and off-peak ECR Rider factors to actual prices and provide the calculation and supporting documentation to verify the development of the price differential between the on-peak and off-peak factors for the upcoming year. ADJUSTMENTS If prior to the annual redetermination of the Energy Cost Rates APSC General Staff ("Staff') or the Company becomes aware of an event that is reasonably expected to occur and/or has occurred which will materially impact the Company's Energy Cost, either the Staff or the Company may propose an adjustment to the Energy Cost Rate Formula set out in Attachment A of this Rider ECR. Furthermore, should a cumulative over-recovery or under-recovery balance for all service levels arise during any Rider Cycle which exceeds ten percent (10%) of the Projected Energy Cost for the Projected Energy Cost Period, then either the Staff or the Company may propose an interim revision to the then currently effective Energy Cost Rates. TH IS SPACE POR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION ts• Revised Replacing Sheet No. Exhibit DRD-2 70.3 Original _ __ Sheet No. 70.3 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Class of Service: All Kind of Service: Electric Part I. Schedule No. -=E=C=R-"------ Title: Energy Cost Recovery Rider CRider ECR) PSC File Mark Onl ATTACHMENT A ENERGY COST RATE FORMULA ECRs =Standard Energy Cost Rate ECRs = TVA+ PEC*EAF PES WHERE, TUA =True-Up Adjustment for the Historical Energy Cost Period Including Carrying Charges (1) 12 TVA= _L ((ECj * EAFj) - (RRj + RECj- PTUj)) + CCj j=l ECj =Energy Cost for Month j of the Historical Energy Cost Period ECi = FEj + PEi - OSSRi- S02j FEj =Fuel Expense Charged to Accounts 501 and 547 in Month j of the Historical Energy Cost Period (5) PEi =Purchased Energy Expense for the Historical Energy Cost Period Charged to Account 555 and Associated Transmission Services in Account 565, Less: Cogeneration Expense, SPP 1M Sales (6) THIS SPACE FOR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION Sheet No. 70.4 P 1 Revised Replacing Exhibit DRD-2 Original _ __ Sheet No. 70.4 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. _..!;::E:..:::C::.=:.R:::-_ _ _ __ Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On! OSSRj =Off System Sales Revenue Recorded in Account 447 in Month j of the Historical Energy Cost Period (7) SPP 1M =Southwest Power Pool Integrated Market S02j = Revenues Assodated with the Sale of S02 Emissions Allowances Recorded in Account 411.8 EAFj = Energy Cost Allocation Factor for Month j of the Historical Energy Cost Period RRj = Revenue under Rider ECR for Month j of the Historical Energy Cost Period RECj = Revenues from the Sale of Renewable Energy Credits Assigned to the Arkansas Jurisdiction for Month j of the Historical Energy Cost Period PTU; = Prior Period True-Up Adjustment Applicable for Month j of the Historical Energy Cost Period CCj = Carrying Charges for Month j of the Historical Energy Cost Period CCj = (BBj + EBj)/2 * CCR *Days j /365 BBj =Beginning Over/Under-Recovery Balance Excluding Carrying Charges for Month j of the Historical Energy Cost Period EBj =Ending Over/Under-Recovery Balance Excluding Carrying Charges for Month j of the Historical Energy Cost Period THIS SPACE FOR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION Sheet No. 70.5 1" Revised Replacing Exhibit DRD-2 Original _ __ Sheet No. 70.5 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. --==E~C:.!;_R~----Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On! CCR =Carrying Charge Rate (3) DAYSj = Number of Days in Month j of the Historical Energy Costs Period PEC =Estimated Energy Cost for the Projected Energy Cost Period (4) 12 PEC = ~ECj j=l EAF = Energy Cost Allocation Factor with Losses Most Recently Approved by the APSC for Application of this Rider ECR (2) PES = Projected Sales (kWh) subject to this rider ECR for the Projected Energy Cost (5) THIS SPACE f'OR PSC USE ONLY APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION 1st Revised Replacing Sheet No. Exhibit DRD-2 70.6 Original _ __ Sheet No. 70.6 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. --=E~C~R~----Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark Onl TIME OF USE ENERGY COST RATE FORMULA ECRon =On-Peak Energy Cost Rate ECRon =Projected Incremental On Peak Period Fuel Cost Per kWh ECRorf = Off-Peak Energy Cost Rate ECRorr = ECRs * (PES on + PESorr ) - (ECRon * PES on) PESorr PESon =Total Projected Sales for the On-Peak Period (kWh) PESorr =Total Projected Sales for the Off-Peak Period (kWh) NOTES: (1) The Historical Energy Cost Period is the calendar year immediately preceding the filing year. (2) The value of EAF which will be used to calculate the Estimated Energy Costs shall be based on the ratio of Arkansas projected sales adjusted for losses to system proj ected sales adjusted for losses. For true-up purposes, the EAF which will be used to calculate the actu al energy cost applicable to Arkansas retail customers will be based on the ratio of Arkansas actual billing determinants adjusted for losses to system actual sales adjusted for losses. (3) The Carrying Charge Rate shall be the Commission-approved rate of interest on customer deposits. THIS SPACE rOR PSC USE ONL Y APSC FILED Time: 1/17/2014 3:52:11 PM: Recvd 1/17/2014 3:42:57 PM: Docket 14-007-tf-Doc. 3 ARKANSAS PUBLIC SERVICE COMMISSION P 1 Revised Replacing Sheet No. Exhibit DRD-2 70.7 Original _ __ Sheet No. 70.7 OKLAHOMA GAS AND ELECTRIC COMPANY Name of Company Kind of Service: Electric Class of Service: All Part I. Schedule No. -~E~C::!.R~----Title: Energy Cost Recovery Rider (Rider ECR) PSC File Mark On! (4) Should there be unusual circumstances associated with any Projected Energy Cost Period either the Company or the Staff may propose use of a Projected Energy Cost (PEC variable) different from that defined by this formula. (5) The fuel cost associated with the DAP incremental kWh will be deducted from fuel cost and the fuel cost associated with DAP decremental kWh will be added to fuel cost. The incremental DAP kWh will be removed from PES and the decremental DAP kWh will be added to PES. (6) The recovery of purchased energy costs associated with long-term energy resources must be approved by the Commission prior to recovery through the ECR Rider. THIS SPACE FOR PSC USE ONLY
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