20250128Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: MICHAEL ELDRED, COMMISSION STAFF
CHRIS BURDIN,DEPUTY ATTORNEY GENERAL
DATE: JANUARY 28, 2025
SUBJECT: IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY TO INCREASE RATES FOR ELECTRIC SERVICE TO
RECOVER COSTS ASSOCIATED WITH INCREMENTAL CAPITAL
INVESTMENTS AND CERTAIN ONGOING OPERATIONS AND
MAINTENANCE; CASE NO. IPC-E-24-07.
BACKGROUND
On May 31,2024,the Company filed an application("Application")with the Commission
requesting an order approving a revision to the Company's schedules of rates for electric service
in the state of Idaho. The Company requested an increase in annual Idaho jurisdictional revenue
of$99,293,220.
On December 31, 2024, the Commission issued Order No. 36438 approving the
Company's Application as modified by the Order and an increase in annual Idaho jurisdictional
revenue of$50,605,147. Order No. 36438 ordered the Company to file tariffs and schedules in
conformance with the Order, to be effective on January 1, 2025, for service rendered on and after
that date.
On January 21, 2025, the Commission issued an Errata to Order No. 36438 that changed
the increase in annual Idaho jurisdictional revenue of$50,605,147 to $50,100,414.
STAFF ANALYSIS
On January 2, 2025, the Company submitted a compliance filing with modifications to
schedules. This compliance filing was submitted to comply with Commission Order No. 36438.
DECISION MEMORANDUM - I - JANUARY 28, 2025

Staff reviewed the modified tariff schedules included in the Company's compliance filing and
confirmed the modifications are consistent with and satisfy the Commission's order.
However, on January 21, 2025, the Commission issued an Errata to Order No. 36438
reducing the approved revenue requirement. On January 22, 2025, the Company submitted a
second compliance filing with modifications to its tariff schedules to recover the updated revenue
requirement amount specified in the Errata but with a February 1, 2025, effective date. Staff
reviewed the modified tariff schedules included in the Company's second compliance filing and
confirmed the modifications are consistent with the Commission's Errata to Order No. 36438.
Because of the January 1,2025, effective date for the revenue requirement amount that was
authorized prior to issuing the Errata, the Company issued customer bills that corresponded to the
tariffs submitted in the Company's initial compliance filing. However, since the update in the
revenue requirement through the Errata occurred after the Company already issued customer bills
with the initial set of rates, it was determined that the updated rates submitted through the second
compliance filing could not be backdated to January 1, 2025; thus, the Company requested a
February 1, 2025, effective date.
To reconcile the series of events, Staff believes two objectives need to be met: (1) the
Company only bill customers for tariff rates that have been approved by the Commission, and(2)
customers are credited for the difference in rates that occurred during the January billing. To
accomplish the first objective, Staff recommends the Commission authorize the tariffs submitted
through the first compliance filing with an effective date of January 1, 2025, and the tariffs
submitted through the second compliance filing with an effective date of February 1, 2025. To
accomplish the second objective, Staff recommends the Company and Staff confer to determine
an appropriate way to measure and pass back the January rate difference to customers.
RECOMMENDATION
Staff recommends the Commission:
• Approve the modified tariff schedules as filed, submitted through a compliance filing
on January 2, 2025, with a January 1, 2025, effective date;
• Approve the modified tariff schedules as filed, submitted on January 22, 2025, with a
February 1, 2025, effective date; and
DECISION MEMORANDUM - 2 - JANUARY 28, 2025

• Order the Company to work with Staff to determine a method to reconcile the
differences in January rates and identify a way to credit customers the difference.
COMMISSION DECISION
Does the Commission wish to approve the modified tariff schedules as filed, submitted on
January 2, 2025, with a January 1, 2025, effective date?
Does the Commission wish to approve the modified tariff schedules as filed, submitted on
January 22, 2025, with a February 1, 2025, effective date?
Does the Commission wish to order the Company to work with Staff to determine a method
to reconcile the differences in January rates and identify a way to credit customers the difference?
Michael Eldred
Commission Staff
I:\Uti1ity\UDMEM0S\IPC-E-24-07 Decision Memo.docx
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