20250806Final_Order_No_36687.pdf

Office of the Secretary
Service Date
August 6,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-14
COMPANY'S APPLICATION FOR AN )
ACCOUNTING ORDER FOR THE )
INCREMENTAL DISTRIBUTION ) ORDER NO. 36687
UNDERGROUNDING COSTS OF THE NEW )
138 KV TRANSMISSION LINE IN THE )
WOOD RIVER VALLEY )
On March 20, 2025, Idaho Power Company ("Company") applied to the Idaho Public
Utilities Commission ("Commission") requesting approval to retain in Construction Work in
Progress ("CWIP") the incremental distribution undergrounding costs incurred for the Blaine
County portion of the new 138 kilovolt ("kV') line in the Wood River Valley until such time that
the entire project is completed and placed into service.
On April 17, 2025,the Commission issued a Notice of Application and Notice of Modified
Procedure, establishing a June 26, 2025, deadline for public and Commission Staff ("Staff')
comments, and a July 10, 2025, deadline for the Company to file reply comments. Order No.
36552. No public comments were received.
Based on our review of the record,the Commission now issues this Final Order approving
the Company's requested accounting treatment.
APPLICATION
The Company stated that it began work on the Wood River Valley Reliability Project
("WRV Project") in the fall of 2023. Application at 2. The Company specified that the WRV
Project is a combined distribution and transmission project. Id.
The Company initiated Case No. IPC-E-24-22 in May 2024 ("2024 Case") proposing to
split the surcharge collection for the WRV Project into two phases,first for the distribution portion,
with the transmission portion occurring at a later date. Id. at 2-3. However, the Commission
suspended the 2024 Case on November 1, 2024, at the Company's request. Order No. 36381. The
Company stated that it would initiate a separate filing to withdraw and close the 2024 Case as the
Company no longer wished to pursue the staggered surcharge collection approach. Application at
3-4.
ORDER NO. 36687 1

The Company claimed that delaying placing the incremental distribution underground cost
of the WRV Project into "utility plant in service" and retaining those amounts in CWIP, until the
transmission portion of the project is completed, would eliminate the need for two separate
distribution surcharges. Id.
The Company stated that implementing a single WRV Project surcharge addressed Staff s
request to consider alternatives to the two-phase approach to surcharge collection that the
Company proposed in the 2024 Case.Id. at 11.
The Company requested an accounting order allowing the incremental distribution portion
of the WRV Project to remain in CWIP until the remainder of the transmission project is
completed, which the Company estimated to be in 2026. Id. at 11-12. The Company stated this
proposed process and associated accounting order would provide for a single surcharge to be
implemented without the Company suffering unwarranted financial harm.Id. at 12. The Company
did not request surcharge implementation or a rate adjustment in the Application.Id. at 2.
STAFF COMMENTS
Staff recommended the Commission approve the Company's request to retain the
incremental underground distribution cost in CWIP until both the transmission and distribution
projects are completed and placed into service, as filed. Staff Comments at 2.
Staff agreed that the Company's proposed method of implementing a single surcharge
would resolve all of Staffs previously stated issues. Id. at 3. Staff stated that the Company's
proposed method also avoided the need to provide monthly tracking and annual reporting on the
surcharge collections to ensure that the surcharge was not over collected.Id.
Staff believed that the incremental costs should remain in CWIP and could remain there
until the associated transmission line is completed. Id. Staff stated that all additional Allowance
for Funds Used During Construction("AFUDC") accrued while the incremental distribution costs
were in CWIP would be allocated to Blaine County. Id. While Staff anticipated that AFUDC
accrual would be minor, Staff believed it would be necessary for AFUDC to be allocated to the
Blaine County customers in order to ensure these expenses were not subsidized by the general
body of the rate payers. Id.
Staff stated that upon completion of the transmission line,the Company would need to file
an update reflecting the final costs for the entire project and that Staff would review the updated
costs at the time of filing. Id.
ORDER NO. 36687 2

COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Filing and the issues in this case
under Title 61 of the Idaho Code including, Idaho Code §§ 61-501, -502, and -503. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501, -502, and-503.
The Commission has reviewed the Company's Application, including all submitted
materials and Staff comments.Based on our review of the record,we find it reasonable to authorize
the Company to delay placing the incremental distribution costs attributable to Blaine County into
service for accounting purposes until the transmission line is complete and operational.
ORDER
IT IS HEREBY ORDERED that the Application is approved, and the Company is
authorized to delay placing the incremental distribution costs attributable to Blaine County —
recorded in CWIP—into service until the transmission line is complete and operational.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one(21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
ORDER NO. 36687 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 6ffi day of
August, 2025.
G
EDWARD LODGE, PRE ENT
J R. HAMMOND JR., COMMISSIONER
DAYN HARbIE, COMMISSIONER
ATTEST:
Mo c a i - hez
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-25-14_CWIP\orders\IPCE2514_FO_em.docx
ORDER NO. 36687 4