The URL can be used to link to this page

Home My WebLink About20250114Tariff.pdf ON -0IQAW POWER. RECEIVED 2024 December 20 PM 2:43 CONNIE ASCHENBRENNER IDAHO PUBLIC Rate Design Senior Manager UTILITIES COMMISSION caschenbrenner(a)idahopower.com Tm ffAdv xM. W VE24-0j VIA ELECTRONIC FILING December 20, 2024 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Tariff Advice No. 24-06 Annual Compliance Filing to Update the Substation Allowance Amount under Schedule 19, Large Power Service Dear Commission Secretary, Idaho Power Company ("Idaho Power" or"Company") hereby submits its proposed update to the Substation Allowance amount outlined in Schedule 19, Large Power Service ("Schedule 19"). This is the annual compliance filing to update the Substation Allowance amount contained within Schedule 19, as required by Idaho Public Utilities Commission ("Commission") Order Nos. 32893 and 32914. The following tariff sheet identifies the proposed modification: Second Revised Sheet No. 19-6 Cancelling First Revised Sheet No. 19-6 The cost estimation methodology the Company used in this tariff advice is the same methodology approved by the Commission in Case No. IPC-E-13-09 and subsequent annual filings. The proposed Substation Allowance amount reflects updated material costs, labor rates, and the stations overhead rate, which in total results in the proposed per megawatt Substation Allowance amount increasing from $71,052 to $99,826, or by approximately 29 percent. The primary drivers behind the proposed increase are inflation and increased demand that have resulted in an approximate 50 percent increase in the cost of the 4- unit metalclad switchgear and an approximate 27 percent increase in the cost of the P.O.Box 70(83707) 1221 W.Idaho St. Boise,ID 83702 Commission Secretary December 20, 2024 Page 2 of 2 138kV/13.09kV, 44.8 MVA transformer. The increases in the costs of these items more than offset the reduction in the stations overhead rate from 4.7 percent to 2.64 percent. The workpapers used to calculate the per megawatt Substation Allowance amount and the stations overhead rate are provided as confidential attachments to this tariff advice. Please note that information in the workpapers is commercially sensitive and, if disclosed freely, could subject Idaho Power or its customers to risk of competitive disadvantage or other business injury. Because the Company files to update the Substation Allowance in accordance with a previously approved Commission methodology, it has submitted the request as a tariff advice. However, to ensure Staff has adequate time to complete its review,' the Company is requesting the same effective date proposed by Staff in last year's update. Accordingly, the Company respectfully requests that the proposed updates are approved and become effective by March 15, 2025. If you have any questions regarding this tariff advice, please contact Regulatory Analyst Ashley Herrera at 208-388-2656 or aherrera@idahopower.com. Sincerely, Connie Aschenbrenner CA:sg Enclosures ' In last year's filing, the Company submitted IPC-TAE-23-03 with a proposed effective date of February 1, 2024. Staff recommended the Commission treat the Company's Tariff Advice as an application to allow a more in-depth analysis to ensure the components included in the allowance calculation reflect current, accurate costs. To provide that time, Staff recommended the Commission suspend the Company's proposed effective date until March 15, 2024. The Commission adopted Staff's recommendation and opened Case No. IPC-E-24-02. CERTIFICATE OF ATTORNEY ASSERTION THAT MATERIALS REQUESTED AND PROVIDED DURING THE COURSE OF AN IDAHO PUBLIC UTILITIES COMMISSION PROCEEDING ARE PROTECTED FROM PUBLIC INSPECTION Tariff Advice No. IPC-TAE-24-06 Idaho Power Company's Schedule 19 — Large Power Service Update The undersigned attorney, in accordance with Commission Rules of Procedure 67, believes that the attachments to Idaho Power Company's Tariff Advice No. 24-06 — Schedule 19 — Large Power Service, dated December 20, 2024, contain information that constitutes trade secrets or other confidential business data exempt from disclosure under Idaho Code § 74-101, et seq., and/or§ 48-801, et seq. As such, it is protected from public disclosure, inspection, examination, or copying. DATED this 20th day of December 2024. Ic6UA aim Megan Goicoechea Allen Counsel for Idaho Power Company P.O.Box 70(83707) 1221 W.Idaho St. Boise,ID 83702 Idaho Power Company Second Revised Sheet No. 19-6 Cancels I.P.U.C. No. 30, Tariff No. 101 First Revised Sheet No. 19-6 SCHEDULE 19 LARGE POWER SERVICE (Continued) SPECIAL ARRANGEMENTS FOR SUBSTATION ALLOWANCES AND/OR TRANSMISSION VESTED INTEREST (Continued) Definitions (Continued) Transmission Vested Interest Portion is that part of the Company's transmission system in which a Transmission Vested Interest is held. Substation Allowance If a Schedule 19 Customer's request for service requires the installation of new or upgraded transformer capacity in Substation Facilities, the following considerations will be included in the separate agreement between the Customer and the Company: The Customer will initially pay for the cost of new or upgraded Substation Facilities required because of the Customer's request. The Customer will be eligible to receive a one-time Substation Allowance based upon subsequent sustained usage of capacity by the Customer. a. Substation Allowance: The maximum possible allowance will be determined by multiplying the Customer's actual increase in load by $99,826 per MW, but will not exceed the actual cost of the Substation Facilities. b. Substation Allowance Refunds: The Substation Allowance will be refunded to the Customer over a five-year period, with annual payments based on the Customer's Basic Load Capacity at the time of refund. The first refund will be paid one year following the first month energy is delivered through the new Substation Facilities. The refunds will occur based on the following adjustment, which will be added to the Substation Allowance received in the previous year. If there is no change in load from the previous year, the Substation Allowance for that year is equal to the Substation Allowance from the previous year: ((Change in load from the previous year as measured in MW)x(Substation Allowance per MW)) Number of Substation Allowance Refunds remaining in five-year period The Customer's annual refunds will be made in accordance with the Substation Allowance amount stated in the separate construction agreement between the Customer and the Company. Transmission Vested Interest If a Schedule 19 Customer's request for service requires the installation of new or upgraded capacity in Transmission Facilities, and those Transmission Facilities are serving the Customer by a radial feed, the following considerations will be included in the separate agreement between the Customer and the Company: IDAHO Issued by IDAHO POWER COMPANY Issued — December 20, 2024 Timothy E. Tatum, Vice President, Regulatory Affairs Effective — March 15, 2025 1221 West Idaho Street, Boise, Idaho Advice No. 24-06 Idaho Power Company Forst Second Revised Sheet No. 19-6 Cancels I.P.U.C. No. 30, Tariff No. 101 04wRa4-First Revised Sheet No. 19-6 SCHEDULE 19 LARGE POWER SERVICE (Continued) SPECIAL ARRANGEMENTS FOR SUBSTATION ALLOWANCES AND/OR TRANSMISSION VESTED INTEREST (Continued) Definitions (Continued) Transmission Vested Interest Portion is that part of the Company's transmission system in which a Transmission Vested Interest is held. Substation Allowance If a Schedule 19 Customer's request for service requires the installation of new or upgraded transformer capacity in Substation Facilities, the following considerations will be included in the separate agreement between the Customer and the Company: The Customer will initially pay for the cost of new or upgraded Substation Facilities required because of the Customer's request. The Customer will be eligible to receive a one-time Substation Allowance based upon subsequent sustained usage of capacity by the Customer. a. Substation Allowance: The maximum possible allowance will be determined by multiplying the Customer's actual increase in load by $71,05299,826 per MW, but will not exceed the actual cost of the Substation Facilities. b. Substation Allowance Refunds: The Substation Allowance will be refunded to the Customer over a five-year period, with annual payments based on the Customer's Basic Load Capacity at the time of refund. The first refund will be paid one year following the first month energy is delivered through the new Substation Facilities. The refunds will occur based on the following adjustment, which will be added to the Substation Allowance received in the previous year. If there is no change in load from the previous year, the Substation Allowance for that year is equal to the Substation Allowance from the previous year: ((Change in load from the previous year as measured in MW)x(Substation Allowance per MW)) Number of Substation Allowance Refunds remaining in five-year period The Customer's annual refunds will be made in accordance with the Substation Allowance amount stated in the separate construction agreement between the Customer and the Company. Transmission Vested Interest If a Schedule 19 Customer's request for service requires the installation of new or upgraded capacity in Transmission Facilities, and those Transmission Facilities are serving the Customer by a radial feed, the following considerations will be included in the separate agreement between the Customer and the Company: IDAHO Issued by IDAHO POWER COMPANY Issued — December 20, 2024 per Order non 36114Timothy E. Tatum, Vice President, Regulatory Affairs Effective— March 15, 2 March 15, 2025 1221 West Idaho Street, Boise, Idaho Advice No. 24-06