20250613Notice_of_Application_Order_No_36638.pdf

Office of the Secretary
Service Date
June 13,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. IPC-E-25-16
OF IDAHO POWER COMPANY FOR )
AUTHORITY TO INCREASE ITS RATES ) NOTICE OF APPLICATION
AND CHARGES FOR ELECTRIC SERVICE )
IN THE STATE OF IDAHO ) NOTICE OF INTERVENTION
DEADLINE
NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE
ORDER NO. 36638
On May 30, 2025, Idaho Power Company ("Company") applied to the Idaho Public
Utilities Commission ("Commission") requesting authority to increase its rates and charges for
electric service to its customers in the State of Idaho and for associated regulatory accounting
treatment. The Company requests an effective date of July 1, 2025.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company requests an increase in annual
Idaho revenue of$199.1 million. Application at 2. The Company represents that this amount is net
of a corresponding proposed Power Cost Adjustment("PCA") decrease of$46.8 million.Id. at 2.
The Company states that this request results in an overall increase to adjusted base revenue of
13.09%, and the request is based on a proposed overall rate of return of 7.818%, with a capital
structure comprised of 51% equity and 49% debt, and a 10.40%rate of return on equity ("ROE").
Id.
YOU ARE FURTHER NOTIFIED that the Company represents that the Company's last
general rate case in front of the Commission, Case No. IPC-E-23-11, was filed on June 1, 2023,
with rates becoming effective on January 1, 2024. Id. at 3. The Company also represents that on
May 31,2024,the Company filed a limited scope rate case,Case No. IPC-E-24-07,involving 2024
rate base additions and incremental labor costs, which the Company states was processed by the
Commission as a general rate case with new rates becoming effective January 1, 2025.Id.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 1

YOU ARE FURTHER NOTIFIED that the Company represents that the Company's
system is currently being fully utilized by its current customers. Id.
YOU ARE FURTHER NOTIFIED that the Company represents that continued growth in
demand for electricity, aging infrastructure, and higher compliance and reliability requirements
are driving the need for the Company to invest large amounts of capital to expand and improve
electricity supply, delivery, and reliability. Id. The Company states that it plans to invest
approximately $1 billion in new infrastructure during 2025 with associated incremental
depreciation expense. Id.
YOU ARE FURTHER NOTIFIED that the Company represents it has achieved a
compound annual operations and maintenance growth rate of 1.5%between 2012 and 2024. Id.
YOU ARE FURTHER NOTIFIED that the Company represents that the high load growth
at a time of rising costs and constrained system capacity poses challenges for the Company. Id.
The Company states that despite recent base rate increases, the Company's current rates are not
sufficient to cover the cost to serve customers, nor do they allow for an opportunity for the
Company to earn a reasonable rate of return on investment for its owners who are providing the
capital to finance the investments. Id.
YOU ARE FURTHER NOTIFIED that the Company proposes to increase the rates of each
customer class by the respective overall percentage increases shown below.
General Rate Case Request
Cost of Service Percent change— Revenue Spread (Attachment 3)
Revenue Overall % Residential Small Large Large Irrigation
Change Impact General General Power '
Service Service
$199,122,685 13.09 17.02 17.02 7.10 8.00 17.02
1 1-Includes lighting schedules; z Includes special contracts
Id. at 6.
YOU ARE FURTHER NOTIFIED that the Company represents that for residential
customers the annual revenue requirement for Schedules 1, 3, 5, and 6 is $814,155,998, which is
a 17.02% increase in overall collection. Id. The Company proposes a monthly Service Charge
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 2

increase to $25.00 from the existing $15.00 for all residential Schedules. Id. The Company also
proposes adjusting the Energy Charges within each schedule to recover the targeted revenue
requirement.Id. at 6-7. With respect to Schedule 1,the standard residential service,which includes
seasonal inclining block Energy Charges, the Company is proposing to reduce the differentials
between the current tiered prices but is not proposing to eliminate tiered pricing entirely. Id.
YOU ARE FURTHER NOTIFIED that the Company is proposing a bill protection
program for residential customers who begin taking service under Schedule 5,the residential time-
of-use ("TOU") pricing option, effective January 1, 2026. Id. The Company represents that the
purpose of bill protection is to reduce financial uncertainty for customers transitioning from
Schedule 1 to Schedule 5 and to encourage participation in the optional TOU pricing by ensuring
customers will not pay more than$10 above what they would have paid under Schedule I for their
first 12 months of service on Schedule 5.Id.
YOU ARE FURTHER NOTIFIED that the Company represents that for customers in
Schedules 7 and 8, the annual revenue requirement to be recovered is $23,641,536, which the
Company states represents the capped 17.02%increase in overall collection from the class.Id. The
Company proposes to increase the monthly Service Charge under Schedules 7 and 8 to $30.00,
from$25.00.Id. In addition,the Company proposes to adjust Energy Charges within each schedule
to recover the targeted revenue requirement. Id.
YOU ARE FURTHER NOTIFIED that the Company represents that for Secondary Service
under Schedule 9 ("Schedule 9S") the annual revenue requirement is $331,880,068, which
represents a 7.19% increase. Id. The Company states that the proposed rates represent a uniform
20%movement toward the cost to serve that pricing component and for the optional TOU pricing,
the Energy Charge differentials are informed by the three-year average hourly Energy Imbalance
Market(`BIM")prices. Id. at 8.
YOU ARE FURTHER NOTIFIED that the Company represents that for Schedule 9
customers, the annual revenue to be recovered from customers taking primary or transmission-
level service is $56,288,766.Id. The Company proposes an increase to the Service Charge to align
with cost of service, rates that represent a uniform 20% movement toward the costs to serve that
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 3

rate component, and the Energy Charges informed by the three-year average hourly EIM prices
for each time-of-use period. Id.
YOU ARE FURTHER NOTIFIED that the Company represents that for Schedule 19
customers the annual revenue requirement is $176,645,167, which represents a 9.97% increase in
overall collection from the class. Id. The Company proposes rates that represent a uniform 20%
movement toward the costs to serve that rate component, and the Energy Charges are informed by
the three-year average hourly EIM prices for each time-of-use period.Id.
YOU ARE FURTHER NOTIFIED that the Company represents that for Schedule 24
customers the annual revenue to be recovered is$209,823,654,which represents a 17.02%change.
Id. The Company represents that it is not proposing any changes to the existing pricing structure
for Schedule 24 but is proposing a change to the definition of in-season and out-of-season periods
that the Company states is intended to establish a more consistent, equitable, and easily understood
definition for when the irrigation in-season begins and ends each year. Id. at 8-9. The Company
proposes increasing both the in-season and out-of-season monthly service charges from $30.00
and $6.00, to $35.00 and $9.00 respectively. Id. The Company represents that for the in-season
Demand Charge, the Company is not proposing additional movement towards cost of service in
this proceeding. Id.
YOU ARE FURTHER NOTIFIED that the Company requests that the Commission issue
an order that specifically authorizes regulatory treatment and/or accounting for several related
matters.Id.
YOU ARE FURTHER NOTIFIED that the Company proposes a revised Schedule 55 PCA
reflecting the transfer of$46.8 million base level net power supply expense ("NPSE") from the
PCA to base rates. Id.
YOU ARE FURTHER NOTIFIED that the Company requests authority to transfer
approximately $3.5 million in ongoing Rider-funded labor costs into base rates, while otherwise
maintaining the same level of annual demand-side management ("DSM") funding as measured in
dollars that exists today. Id.
YOU ARE FURTHER NOTIFIED that the Company requests authority to: 1) establish a
tracking mechanism for incremental depreciation and interest expense effective January 1, 2026;
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 4

2) continue deferring incremental wildfire mitigation and insurance costs from a base level of cost
recovery established in this case; and 3) designate additional accumulated deferred investment tax
credits ("ADITC") as eligible for accelerated amortization under the terms of the currently
approved ADITC/Revenue Sharing Mechanism, with the addition of a $75 million annual
amortization cap. Id. at 9-10.
YOU ARE FURTHER NOTIFIED that the Company proposes to update rate recovery
associated with both the Valmy and Bridger mechanisms to reflect current capital and operation
and maintenance expectations, and to true-up variances between prior forecasts and actual costs.
Id. at 10.
YOU ARE FURTHER NOTIFIED that the Company represents that Attachment 4 to the
Application includes the accounting information related to the Company's asset retirement
obligations as directed by the Commission in Order No. 29414, issued in Case No. IPC-E-03-11.
Id.
YOU ARE FURTHER NOTIFIED that the Company represents that the Application has
been, and will be, brought to the attention of the Company's affected customers by means of a
press release, by customer notices mailed to individual customers, and by means of personal
contact with some customers.Id. at 14.
YOU ARE FURTHER NOTIFIED that the Company represents that the affected current
Electric Rate Schedules, Electric Service Regulations, together with the proposed Electric Rate
Schedules, and Electric Service Regulations, will be kept open for public inspection at Idaho
Power's offices in the state of Idaho. Id.
YOU ARE FURTHER NOTIFIED that the Application and supporting documentation
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission's office. These documents are also available on the
Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open
Cases," and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case. As such, the Company's intrastate revenue requirement, and every component
of it, both rate base and expense, are at issue. The Commission may grant, deny, or modify the
NOTICE OF APPLICATION
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NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 5

revenue requirement requested and may find a revenue requirement different from that proposed
by any party is just, fair, and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that all of the Company's retail rates and charges,both
recurring and non-recurring, including those of special contract customers, are at issue, and every
component of every existing and proposed rate and charge is at issue. The Commission may
approve, reject, or modify the rates and charges proposed and may find that rates and charges
different from those proposed by any party are just, fair, and reasonable. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or modify
existing or proposed relationships between and among rates and charges within, between, or
among customer classes or rate groupings and may approve,reject, or modify existing or proposed
relationships among and between customer classes or rate groupings.Id.
YOU ARE FURTHER NOTIFIED that the Commission may abolish,reduce,or create rate
blocks or categories of rates and charges; abolish, create, or reduce components of rates and
charges;abolish,reduce,or create customer classes or rate groupings;and abolish,reduce,or create
absolute or relative differences among and between existing classes or rate groupings of customers.
Id.
YOU ARE FURTHER NOTIFIED that the tariffs,practices,rules and regulations, service,
instrumentalities, equipment, facilities, classifications, and customer relations of the utility are at
issue, and the Commission may address any of them in its order. Id.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the
Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code,
and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of
Procedure, IDAPA 31.01.01.000 et seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
The Company filed its Application on May 30, 2025, proposing a July 1, 2025, effective
date.The Commission finds that the Company's proposed effective date does not provide adequate
time for Commission Staff("Staff'), and interested persons, to evaluate the Company's proposal.
Pursuant to Idaho Code § 61-622, the Commission suspends the proposed changes for thirty (30)
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 6

days and five(5)months or until the Commission enters an order accepting,rejecting,or modifying
the proposed rate increases.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties' rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission's Rules of Procedure 71-73,IDAPA 31.01.01.072-073. Persons who
wish to intervene as a party must file a Petition to Intervene no later than 21 days after the
date of service of this Order. Persons desiring to present their views without parties' rights of
participation do not have to intervene and may present their comments without prior notification
to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Staff will
informally confer with the parties to discuss a schedule to process this case and other issues as may
be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company's representatives in this matter:
Donovan E. Walker Timothy Tatum
Megan Goicoechea Allen Connie Aschenbrenner
Idaho Power Company Matt Larkin
P.O. Box 70 1221 West Idaho Street(83702)
Boise, Idaho 83707 P.O. Box 70
dwalkergidahopower.com Boise, Idaho 83707
mgoicoecheaallengidahopower.com ttatum(d),idahopower.com
dockets(kidahopower.com caschenbrenner&idahopower.com
mlarkin(c idahopower.com
ORDER
IT IS HEREBY ORDERED that the Company's proposed effective date of July 1, 2025,
for its proposed rate increases is suspended for (30) thirty days plus five (5) months or until the
Commission enters an earlier order accepting,rejecting, or modifying the proposed rate increases.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 36638 7

IT IS FURTHER ORDERED that persons desiring to intervene in this case for the purpose
of obtaining parties' rights of participation must file a Petition to Intervene with the Commission,
under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this
Order.
IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will
informally confer with the parties to discuss the appropriate scheduling of this case.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 13th day of
June 2025.
G
EDWARD LODGE, P IDENT
a, �ft�
IN R. HAMMOND JR., COMMISSIONER
DAYN HA IE, OMMISSIONER
ATTEST:
a.0
Monica Ba ios- ez
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-25-16_GRC\orders\IPCE2516_Ntc_App_Sus_Int_em.docx
NOTICE OF APPLICATION
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