20240423Notice_of_Application_Order_No_36158.pdf

Office of the Secretary
Service Date
April 23,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. IPC-E-24-17
OF IDAHO POWER COMPANY FOR )
AUTHORITY TO IMPLEMENT POWER ) NOTICE OF APPLICATION
COST ADJUSTMENT ("PCA") RATES FOR )
ELECTRIC SERVICE FROM DUNE 1, 2024, ) NOTICE OF MODIFIED
THROUGH MAY 31, 2025 ) PROCEDURE
ORDER NO. 36158
On April 15, 2024, Idaho Power Company ("Company") filed an application
("Application") with the Idaho Public Utilities Commission ("Commission") requesting an order
approving an update to Schedule 55 based on the Company's quantification of the 2024-2025
Power Cost Adjustment("PCA"),to become effective June 1,2024, for the period of June 1,2024,
through May 31, 2025.
BACKGROUND
The PCA mechanism permits the Company to increase or decrease its PCA rates to reflect
the Company's annual "power supply costs." Due to its diverse generation portfolio, the
Company's actual cost of providing electricity varies from year to year depending on changes in
such things as the river streamflow, the amount of purchased power, fuel costs, the market price
of power, and other factors. The annual PCA surcharge or credit is combined with the Company's
"base rates"to produce a customer's overall energy rate.
The PCA quantifies and tracks annual differences between actual Net Power Supply
Expenses("NPSE")and the normalized or"base level"of NPSE recovered in the Company's base
rates, resulting in a credit or surcharge that is updated annually on, June 1. The PCA mechanism
uses a 12-month test period from April through March ("PCA Year") and includes a forecast
component and a Balancing Adjustment. The forecast component represents the difference
between the Company's NPSE forecast from the March Operating Plan and base level NPSE
recovered in the Company's base rates. The Balancing Adjustment includes a backward-looking
tracking of differences between the prior PCA Year's forecast and actual NPSE incurred by the
Company, and also tracks the collection of the prior year's Balancing Adjustment.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36158 1

Except for Public Utility Regulatory Policies Act of 1978 ("PURPA") expenses and
demand response incentive payments, the PCA allows the Company to pass through to customers
95 percent of the annual differences in actual NPSE as compared with base level NPSE, whether
positive or negative. With respect to PURPA expenses and demand response incentive payments
and actual annual expenses deviate from base level NPSE, the Company is allowed to pass 100
percent of the difference for recovery or credit through the PCA. The PCA is also the rate
mechanism used by the Company to provide customer benefits resulting from the revenue sharing
mechanism, approved by the Commission in Order No. 34071.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company represents that the update to Schedule
55, based on the Company's quantification of the 2024-2025 PCA, will result in an overall
decrease to current billed revenue of approximately $35.7 million, to become effective June 1,
2024. Application at 15.
YOU ARE FURTHER NOTIFIED that the Company represents that the system-level
forecast of NPSE for the 2024-2025 PCA Year is $509,555,990,which is $24,648,746 higher than
the currently approved base level NPSE of$484,907,244, and $31,943,394 lower than last year's
forecast amount of$541,499,384.Id. at 7-8. The Company states that the 2024-2025 PCA forecast
component to be collected from Idaho customers is $22,712,031. Id. at 8.
YOU ARE FURTHER NOTIFIED that the Company represents that the PCA Balancing
Adjustment deferral balance at the end of March 2024, with interest applied, was approximately
$90 million, which represents a decrease to customers rates in this year's PCA Balancing
Adjustment. Id.
YOU ARE FURTHER NOTIFIED that the Company represents that the Company's Idaho
jurisdictional year-end Return on Equity ("ROE") was below the 10.0 percent ROE threshold for
revenue sharing;therefore,the 2024-2025 PCA does not include a revenue sharing component.Id.
at 9.
YOU ARE FURTHER NOTIFIED that the Company represents that for the 2024-2025
PCA Year, the Company's uniform PCA is comprised of(1) the 0.15 01 cents per kilowatt-hour
("kWh") for the 2024-2025 projected power cost of serving firm loads under the current PCA
methodology and 95 percent sharing and (2) the 0.5946 cents per kWh for the 2023-2024
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36158 2

Balancing Adjustment,with the sum of these two components resulting in a 0.7447 cents per kWh
charge for all rate classes. Id. at 9-10.
YOU ARE FURTHER NOTIFIED that the Company represents that the 2024-2025 total
PCA amount, as measured from the currently approved base level NPSE is $112.7 million, which
represents a decrease in total billed revenue of$35.7 million, or 2.31 percent, for Idaho customers,
effective June 2024 through May 2025.Id. at 10.
YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission's office. The Application is also available on the
Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open
Cases," and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this
matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000
et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204.
The Commission notes that Modified Procedure and written comments have proven to be an
effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments and explain why written comments alone are insufficient. Persons interested in filing
written comments must do so by May 15, 2024. Comments must be filed through the
Commission's website or by e-mail unless computer access is unavailable. To comment
electronically, please access the Commission's website at http://www.puc.idaho.gov/. Click the
"Case Comment Form" and complete the form using the case number as it appears on the front of
this document.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36158 3

To file by e-mail, persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
If computer access is unavailable, then comments may be mailed to the Commission and
the Parties at the addresses below.Persons submitting a comment by mail must provide their name,
address, and the Case Number under which they are commenting. Persons submitting a comment
by mail also acknowledge that submitting a comment in an open case constitutes a public record
under Idaho Code§74-101(13),and all information provided by such person is available for public
and media inspection.
For the Idaho Public Utilities For the Company:
Commission:
Commission Secretary Megan Goicoechea Allen
Idaho Public Utilities Commission Lisa D. Nordstrom
P.O. Box 83720 Regulatory Dockets
Boise, ID 83720-0074 1221 West Idaho Street(83702)
secretgU&puc.idaho.gov P.O. Box 70
Boise, ID 83707
Street Address for Express Mail: mgoicoecheaallen&idahopower.com
lnordstrom(a,idahopower.com
11331 W. Chinden Blvd. docketskidahopower.com
Building 8, Suite 201-A
Boise, ID 83714 Matthew T. Larkin
Timothy E. Tatum
Jessi Brady
1221 West Idaho Street(83702)
P.O. Box 70
Boise, ID 83707
mlarkinkidahopower.com
ttatum(d),idahopower.com
jbradykidahopower.com
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
May 22, 2024.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36158 4

YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its final
order without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Application be processed by Modified Procedure,
Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in filing written comments must
do so by May 15, 2024. The Company must file any reply comments by May 22, 2024.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23`d day of
April 2024.
ERIC ANDERSON, PRESIDENT
?HN R/HAMMOND JR., COMMISSIONER
G A
EDWARD LODGE,4eOMMISSIONER
ATTEST:
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Mo T 'ca io P S R r ch
Commission Secretary
IALegahELECTRIC\IPC-E-24-17_PCA\orders\1PCE2417_Ntc_App_Mod_cb.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36158 5