20240531Final_Order_No_36201.pdf

Office of the Secretary
Service Date
May 31,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-24-15
COMPANY'S APPLICATION FOR ITS )
ANNUAL UPDATE TO MARGINAL ) ORDER NO. 36201
PRICING USED IN CERTAIN SCHEDULES )
On April 1, 2024, Idaho Power Company ("Company") filed an application
("Application") with the Idaho Public Utilities Commission ("Commission") to update the
marginal cost-based energy prices in Schedule No. 20, Speculative High-Density Load("Schedule
20"), and Schedule No. 34, Lamb Weston Special Contract("Schedule 34").
The Company requested to update the marginal energy price component of Schedules 20
and 34 to be effective June 1,2024. Application at 7. The Company represented that it determined
the marginal cost of energy by simulating the hourly operation of the Company's power supply
system over expected streamflow conditions for the April 2024 through March 2025 test year. Id.
The Company stated that base case net power supply expenses were quantified,and then the model
was run with 15 megawatts ("MW") of load added across all hours, and that the difference in
power supply expenses between the base run and the base-plus-15-MW run was divided by the
difference in megawatt-hours to produce a marginal cost of energy.Id. at 7-8.
The Company represented that the resulting annual and time-differentiated marginal costs
were included as Attachment 3 to the Application, and that to the extent that service was provided
under Schedule 20 or Block 2 of Schedule 34, all associated energy sales would be tracked in the
Power Cost Adjustment and included as an offset to power supply expenses. Id. at 8.
STAFF COMMENTS
Commission Staff("Staff")reviewed the proposal and focused on the overall methodology
that determined the marginal cost of energy,the incremental load on the margin used to determine
the marginal cost of energy, the appropriateness of using a 501h percentile load forecast, the
Schedule 20 time-of-use period, and the effective date of the updated rates.
Staff recommended the Commission approve the updated marginal cost component of
Schedule 20 and Schedule 34 with an effective date of June 1, 2024. Staff also recommended that
the Commission approve the tariff updates of Schedule 20 and Schedule 34 contained in
Attachment No. 1 of the Application as filed.
ORDER NO. 36201 1

COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
The Commission has reviewed the Application, all submitted materials, and all submitted
comments. Based on its review of the record, the Commission finds it fair,just, and reasonable to
approve the Application as filed.
ORDER
IT IS HEREBY ORDERED that the updated marginal energy cost component of Schedule
20 and Schedule 34, and the associated tariffs, are approved as filed with an effective date of June
1, 2024.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626
and 62-619.
ORDER NO. 36201 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 31St day of
May 2024.
ERIC ANDERSON, PRESIDENT
R. 11AMMOND JR., COMMISSIONER
G
EDWARD LODGE, CO ISSIONER
ATTEST:
I Ji Qs�
Mon' a a ios- e
Commission Secretary
IALega1\ELECTRIC\IPC-E-24-15_Sch 20&34\orders\IPCE2415_FO_cb.docx
ORDER NO. 36201 3