20250530Notice_Of_Sus_&_Public_Comment_Deadline_Order_No_36622.pdf

Office of the Secretary
Service Date
May 30,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. IPC-E-25-13
OF IDAHO POWER COMPANY FOR )
AUTHORITY TO INCREASE ITS RATES ) NOTICE OF SUSPENSION OF
FOR ELECTRIC SERVICE TO RECOVER ) PROPOSED EFFECTIVE DATE
COSTS ASSOCIATED WITH THE HELLS )
CANYON COMPLEX RELICENSING ) NOTICE OF PUBLIC COMMENT
PROJECT ) DEADLINE
ORDER NO. 36622
On March 14, 2025, Idaho Power Company ("Company") applied to the Idaho Public
Utilities Commission("Commission")requesting an order authorizing an adjustment to customer
rates of$29,708,787, effective June 1, 2025, to recover incremental Allowance for Funds Used
During Construction ("AFUDC") costs associated with the Hells Canyon Complex ("HCC")
relicensing project, contingent upon the outcome of the Power Cost Adjustment ("PCA") update
filed April 15, 2025 ("Application"). Application at 1-2.
On April 9, 2025, the Commission issued a Notice of Application, Notice of Intervention
Deadline, and Notice of Modified Procedure. Order No. 36535. The Commission granted
intervention to the Industrial Customers of Idaho Power("ICIP"). Order No. 36600.
APPLICATION
The Company represented that the HCC consists of three hydroelectric projects,Brownlee,
Oxbow, and Hells Canyon, on the segment of the Snake River forming the border between Idaho
and Oregon, approximately 90 miles northwest of Boise. Id. at 2. The Company stated that HCC
represents approximately 1,167 megawatts ("MW") of nameplate generation capacity, which is
approximately 30 percent of the Company's total generating capacity. Id.
The Company represented that its efforts towards relicensing HCC have spanned over three
decades, beginning in 1991. Id. at 2-3. The Company stated that it began incurring relicensing
costs in 1999, and that the Company records the accumulation of all costs associated with the
construction of an asset, including the cost of financing the construction expenditures, in Federal
Energy Regulatory Commission ("FERC") Account 107-Construction Work in Progress
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 1

("CWIP"). Id. at 4. The Company stated that once FERC issues a new license, the Company can
transfer accrued amounts to Electric Plant-in Service. Id.
The Company represented that Idaho Code § 61-502A allows for CWIP to be included in
rates if the Commission makes an"explicit finding that the public interest will be served thereby."
Id. at 5. The Company states that in Order Nos. 30722 and 32426,the Commission authorized the
Company to annually collect $6,537,444 in AFUDC associated with the HCC relicensing project
from the Company's Idaho jurisdictional customers.Id.The Company represented that since 2022,
the Company has recorded over$30 million annually in AFUDC.Id. at 6.
The Company proposed to increase customer rates by $29,708,7873 annually to recover
incremental HCC relicensing AFUDC amounts, provided that the anticipated upcoming decrease
to rates associated with the PCA filed on April 15, 2025, was equal to, or greater than,the amount
the Company proposed to increase rates in this case. Id. at 7. The Company indicated that if the
PCA decrease was less than the proposed increase associated with AFUDC collections, the
Company would adjust its request in this case so that the net of the two proposals would result in
a net neutral rate impact to customers. Id.
The Company represented that an increase to the amount of AFUDC collections now would
reduce the total project costs ultimately included in rate base, thereby reducing future rate
increases.Id.
STAFF COMMENTS
Staff reviewed the Company's Application and its proposal to increase customer rates to
recover an additional $23 million annually in AFUDC costs associated with the HCC relicensing.
Staff Comments at 3. Staff evaluated the financial implications of the proposal for both the
Company and its customers, and Staff considered its consistency with regulatory principles and
the public interest.Id.
Staff explained that in 2024,the Company accrued approximately$34.5 million in AFUDC
associated with HCC relicensing, and the current HCC AFUDC recovery of approximately $6.5
million is significantly less than the annual accrual,which creates an escalation in the total amount
that will eventually be transferred to electric plant-in-service. Id. Staff believed that without an
increase in AFUDC recovery now, customers could see a significant increase in rates when the
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 2

Company receives its new license from FERC and the costs of relicensing, including AFUDC, are
incorporated into rates. Id.
Staff believed that recovering AFUDC at a time when customer rates would decrease in
the PCA provided an opportunity for the Company to recover a portion of the AFUDC costs while
still providing customers with rate relief. Id.
Staff explained that because the HCC dams continue to produce electricity for the benefit
of current customers, it was reasonable that current customers contributed to the costs of
relicensing,and delaying AFUDC recovery until a new license was granted would,in certain cases,
shift those costs to future customers who may not receive the same level of benefit. Id. Staff
considered the Company's proposal to recover AFUDC costs associated with the HCC relicensing
project reasonable, consistent with regulatory principles, and in the public interest.Id.
Staff recommended that the Commission approve the Company's request to increase rates
$29,708,787 to offset AFUDC costs associated with the HCC relicensing project, and Staff
recommended the Commission approve the tariffs filed with the Company's compliance filing on
April 15, 2025, with an effective date of June 1, 2025. Id.
PUBLIC COMMENTS
No public comments have been filed.
INTERVENOR COMMENTS
ICIP argued that the Company did not represent that the Application was necessary to
maintain the Company's financial health, cash flow, or credit worthiness. ICIP Comments at 4.
ICIP stated that the Company's request to raise rates by four percent overall (six percent for the
industrial and special contract customers) because of the helpful nature of realizing more money
from its ratepayers was not explicitly in the public interest. Id.
ICIP argued that the Company's Application did not comply with the Commission's rules
of procedure, Rule 122 and Rule 125, addressing notice requirements for a request for a rate
increase. Id.
1. Rule 122: Notice of Intent to File a General Rate Case
ICIP argued that while the Application might not be considered a general rate case in the
traditional sense of the phrase, there was no doubt that the Application is a general rate increase
that does not fall under any of Rule 122's exceptions for notice requirements. Id. at 5.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 3

2. Rule 125: Notice to Customers of Proposed Changes in Rates
ICIP argued that the Company's combined notice of the HCC rate increase and PCA failed
to meet any of Rule 125's requirements.Id. at 5-8.
Further, ICIP argued that the optional nature of the Company's request belies any claim
that it is in the public interest to impose the proposed rate increase on the Company's ratepayers.
Id. at 9. ICIP stated that because HCC AFUDC expenses are not associated with annual
fluctuations in power costs, the Company's earnings and hence, need, for the HCC rate increase
are independent of the PCA's direction. Id.
ICIP argued that not only are the two events unrelated, but the Company did not make an
offer of proof that the HCC rate increase was necessary for the Company's financial health. Id. at
10. Rather,the Company's HCC rate request was conditional upon a random event unrelated to its
earnings, and it was therefore neither fair,just nor reasonable for the Commission to impose that
increase on the Company's ratepayers based on the outcome of the PCA. Id.
ICIP concluded that the most efficient process to address the Company's request would be
to defer the issue to the Company's pending general rate case for resolution along with all of the
other revenue requirement issues inherent in such a proceeding.Id. at 11.
COMPANY REPLY COMMENTS
With respect to ICIP's Rule 122 argument, the Company believed the intent of the
requirement to file a notice prior to the filing of a general rate case was due to the nature of the
request, and that the Company's request in this case was an increase in rates based on the change
in a singular expenditure, for which customers were already paying, and was therefore outside the
scope of Rule 122. Company Reply Comments at 4-5.
With respect to Rule 125, the Company disagreed with ICIP's declaration that the
Company's "notice was misleading and a gross misrepresentation of its impact on ratepayers."Id.
at 5. The Company represented that its notice was combined because the request in this case was
subject to the expected proposed decrease in the PCA proceeding,which was unknown at the time.
Id. The Company believed that a combined notice allowed the Company to notify customers of
the proposed net rate change associated with the Fixed Cost Adjustment, the PCA, and the HCC.
Id. at 6. The Company believed that approach minimized the opportunity for customer confusion,
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 4

as opposed to sending three separate customer notices with three different proposed rate changes.
Id.
The Company stated that, in its Application, the Company explained its intent to satisfy
Rule 125, and the Company requested additional direction from the Commission if a different
approach to providing customer notice of multiple rate changes was preferred.Id.
Additionally, the Company argued that its request to recover incremental AFUDC
associated with the HCC Relicensing Project was in the public interest.Id. The Company reasoned
that increasing collections of HCC relicensing-related AFUDC to approximately $30 million
would better align the annual AFUDC amounts collected with the annual AFUDC amounts
accrued, reducing the total project costs ultimately included in rate base, thereby reducing future
rate increases. Id. at 7.
Finally,the Company stated that its request to recover incremental AFUDC associated with
the HCC relicensing project was necessary to maintain its financial health, and that the collections
would improve cash flow, which helps maintain credit strength necessary to access competitive
lending markets, and that credit strength benefits the cost of capital and ultimately customer rates.
Id. at 7-8.
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 record,the Commission finds that the Company's customers were not
provided adequate notice of the Application and the Company's request for a rate increase.Among
the requirements for customer notices, pursuant to the Commission's Rules of Procedure, notice
to a customer of a rate increase must explain the utility's need for additional revenue, including
the dollar amount requested, the proposed overall percentage change from current rates, and the
proposed percentage increase in revenue for major customer classes. Rule 125.01(a). "The
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 5

information required by this rule must be clearly identified, easily understood, and pertain to the
proposed rate change."Rule 125.03.
In this case,the Commission finds that the Company's combined notice of PCA,FCA, and
HCC, issued with the heading "Idaho Power Requests Rate Decrease in Annual PCA Filing"
did not present clearly identifiable information about the customer impacts of the HCC case that
would be easily understood by the Company's customers. While the Commission is not generally
opposed to the Company presenting customers with information pertaining to the combined effects
of multiple cases, such combined effects should be presented as additional secondary information,
with each case and its individual effects presented to customers clearly and easily understood in
isolation. This is especially true in instances such as this where the facts, analysis, and associated
impact on customers of the HCC case are unrelated to the facts and analysis of the PCA and FCA
cases.
Having found that the Company's customers were not given adequate notice, the
Commission finds it fair,just, and reasonable to suspend the Company's requested effective date
of June 1, 2025, until August 1, 2025. The Company shall issue a new notice to its customers as
soon as reasonably practicable consistent with this Order and the Commission's Rules of
Procedure and inform the Commission when such notice has been issued. The Commission will
accept additional public comments in this matter until July 18,2025,at which time the Commission
will consider the case fully submitted and issue a final order accordingly. At this time, the
Commission makes no findings nor reaches any conclusions as to the merits of the Company's
Application.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE HEREBY NOTIFIED that the Commission finds that the Company's proposed
effective date does not provide adequate time for interested persons to evaluate the Company's
proposal. Pursuant to Idaho Code § 61-622, the Commission suspends the proposed changes until
August 1, 2025, or until the Commission issues an earlier order.
NOTICE OF PUBLIC COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that the Commission seeks comments from the public
on the Application. Persons desiring to state a position on this matter may file a written comment
explaining why the person supports or opposes the Application. Persons interested in filing
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 6

written comments must do so by July 18, 2025. 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 hqp://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.
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 Matt Larkin
P.O. Box 83720 Idaho Power Company
Boise, ID 83720-0074 1221 West Idaho Street (83702)
secretary(apuc.idaho.gov P.O. Box 70
Boise, ID 83707
Street Address for Express Mail: mgoicoecheaallen(aidahopower.com
mlarkin(a,idahopower.com
11331 W. Chinden Blvd. dockets(kidahopower.com
Building 8, Suite 201-A
Boise, ID 83714
ORDER
IT IS HEREBY ORDERED that the Company's proposed effective date of June 1, 2025,
is suspended until August 1, 2025, or until the Commission issues an earlier order.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 7

IT IS FURTHER ORDERED that the Company shall issue a new notice to its customers
as soon as reasonably practicable consistent with this Order and the Commission's Rules of
Procedure and inform the Commission when such notice has been issued.
IT IS FURTHER ORDERED that persons interested in filing written comments must do
so by July 18, 2025.
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.
THIS IS AN INTERLOCUTORY ORDER, not a final and appealable Order of the
Commission. The period of reconsideration will not begin until the final Order is issued.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30t'day of
May 2025.
G
Gv�
EDWARD LODGE, PR , DENT
J R. HAMMOND JR., COMMISSIONER
YN HA IE, CON4MISSIONER
ATTEST:
L,0� ..
Mo arri -S c
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-25-13_HellsCanyon\orders\IPCE2513_Ntc_Sup_PC_cb.docx
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF PUBLIC COMMENT DEADLINE
ORDER NO. 36622 8