20250324Final_Order_No_36521.pdf

Office of the Secretary
Service Date
March 24,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-01
COMPANY'S ANNUAL COMPLIANCE )
FILING TO UPDATE THE SUBSTATION ) ORDER NO. 36521
ALLOWANCE AMOUNT UNDER )
SCHEDULE 19, LARGE POWER SERVICE )
On December 20,2024, Idaho Power Company("Company") submitted Tariff Advice No.
IPC-TAE-24-06, an annual compliance filing, to update the Substation Allowance amount
contained in Schedule 19,as required by Commission Order Nos. 32893 and 32914. The Company
proposed an effective date of March 15, 2025.
The Company's proposed per megawatt Substation Allowance reflected an increase from
$71,052 to $99,826, or approximately 29%. Application at 1. The Company represented that the
proposed Substation Allowance included updated material costs, labor rates, and the stations
overhead rate. Id.
On January 27,2025,the Idaho Public Utilities Commission("Commission")issued Order
No. 36447,processing the Company's filing as an Application, suspending the proposed effective
date, and setting an intervention deadline. On March 5, 2025, the Commission issued a Notice of
Modified Procedure setting comment deadlines. Order No. 36491. Staff filed comments to which
the Company replied. No other comments were received.
STAFF COMMENTS
Commission Staff("Staff') review focused on three classifications of costs to justify the
proposed Substation Allowance amount under Schedule 19 including(1)Labor and Vehicle Cost,
(2) Material Cost, and (3) Overhead Cost. Staff Comments at 2. Based on its review, Staff
recommended that the Commission approve the proposed Substation Allowance amount of
$99,826 per Megavolt-amperes ("MVA"). Id. Additionally, Staff recommended that the
Commission direct the Company to provide information related to the procurement process for all
materials included in the allowance and the resulting selection of vendors, and the cost of material
specific to the 44.8 MVA transformer and 4-Unit Metalclad Switchgear, which were the two
highest-dollar components included in the allowance, in next year's annual filing. Id.
ORDER NO. 36521 1

COMPANY REPLY COMMENTS
The Company agreed with Staff s conclusions that the updated labor,vehicle, and material
costs included in the allowance were reasonable, and that the calculation of the overhead rate was
accurate.Company Reply Comments at 1-2.The Company also supported Staffs recommendation
for the Company to provide information related to the procurement process for all materials
included in the allowance and the resulting selection of vendors, and the cost of material specific
to the 44.8 MVA transformer and 4-Unit Metalclad Switchgear in next year's annual filing. Id. at
2.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, 61-502,
and 61-503. The Commission is vested with the power to "supervise and regulate every public
utility in the state and to do all things necessary to carry out the spirit and intent of the [Public
Utilities Law]."Idaho Code§ 61-501.The Commission is empowered to investigate rates,charges,
rules,regulations,practices,and contracts of public utilities and to determine whether they are just,
reasonable,preferential, discriminatory,or in violation of any provision of law, and to fix the same
by order.Idaho Code §§ 61-502 and 61-503.
Having reviewed the Application and all submitted materials,the Commission finds it fair,
just, and reasonable to approve the Company's update to the Substation Allowance amount
contained in Schedule 19. The Company is directed to provide information related to the
procurement process for all materials included in the allowance and the resulting selection of
vendors, and the cost of material specific to the 44.8 MVA transformer and 4-Unit Metalclad
Switchgear, in next year's annual filing.
ORDER
IT IS HEREBY ORDERED that the Company's proposed Schedule 19 Substation
Allowance of$99,826 is approved.
IT IS FURTHER ORDERED that the Company shall provide information related to the
procurement process for all materials included in the allowance and the resulting selection of
vendors, and the cost of material specific to the 44.8 MVA transformer and 4-Unit Metalclad
Switchgear, in next year's annual filing.
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
ORDER NO. 36521 2

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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 241h day of
March 2025.
G
EDWARD LODGE, I&I&SIDENT
J R. HAMMOND JR., COMMISSIONER
DAYN HAADIK, COMMISSIONER
ATTEST:
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Ba - c z
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-25-01_Morders\IPCE2501_FO_cb.docx
ORDER NO. 36521 3