20251231Final_Order_No_36891.pdf

Office of the Secretary
Service Date
December 31,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-34
COMPANY'S APPLICATION TO )
IMPLEMENT THE RESIDENTIAL AND )
SMALL FARM CREDIT RATE EFFECTIVE ) ORDER NO. 36891
JANUARY 1, 2026, THROUGH DECEMBER )
31, 2028 )
On November 7, 2025, Idaho Power Company ("Company") applied to the Idaho Public
Utilities Commission ("Commission") for authorization to implement the Bonneville Power
Administration's ("BPA") residential and small farm energy rate credit from January 1, 2026,
through December 31, 2028. The Company's proposed credit rate would result in a $19,888,200
decrease to eligible customers in Idaho, effective January 1, 2026.
On November 20, 2025, the Commission issued a Notice of Application and Notice of
Modified Procedure, establishing a December 9, 2025 deadline for public and Commission Staff
("Staff') comments, and a December 16, 2025, deadline for the Company to file reply comments.
Order No. 36851.
Based on our review of the record, the Commission now issues this Final Order approving
the Electric Service Schedule 98 —Residential and Small Farm Energy Credit ("Schedule 98") of
$0.000305 per kilowatt-hour ("kWh") for rate schedules 1, 3, 5, 6, 7, 8, 9, 15, and 24, effective
January 1, 2026, through December 31, 2028.
BACKGROUND
The Residential Exchange Program ("REP") was established by Section 5(c) of the
Northwest Electric Power Planning and Conservation Act ("Northwest Power Act"). 16 U.S.C. §
839c(c). That section makes low-cost power from the federal Columbia River power system
available to investor-owned utilities in the Northwest. See Assoc. of Pub. Agency Customers v.
Bonneville Power Admin. (APAC v. BPA), 733 F.3d 939, 945 (9th Cir. 2013). The REP is
administered by the BPA. The Northwest Power Act permits utilities to "exchange power they
have purchased or generated for lower-cost power generated by BPA." Portland General Elec.
Co. v. Bonneville Power Admin. (PGE v. BPA), 501 F.3d 1009, 1015 (9th Cir. 2007). A utility may
ORDER NO. 36891 1

offer to sell power to BPA at the utility's average system cost("ASC")for producing power,which
BPA compares to a Priority Firm ("PF") Exchange Rate that BPA calculates for purposes of the
exchange. See id., APAC v. BPA, 733 F.3d at 945-46. If BPA's PF Exchange Rate is lower than
the utility's ASC,then the utility is entitled to a benefit from BPA.APAC v. BPA, 733 F.3d at 946.
Generally, the utility benefit is the difference between BPA's PF Exchange Rate and the utility's
ASC, multiplied by the utility's residential load.Id. at 945. The utility must pass the benefit on to
its qualifying (residential and small farm) customers. See id. (citing 16 U.S.C. § 839c(c)(3)).
In Order No. 36036, the Commission approved an increase to the Company's Schedule 98
rate,effective from January 1,2024,through December 31,2025. The Schedule 98 rate is currently
set at $0.003447 per kWh. As a result, the Company's qualifying customers received a total of
$22,903,010 for the two-year period beginning October 1, 2023.
THE APPLICATION
The Company proposed implementing a BPA residential and small farm credit of
$0.000305 per kWh', effective January 1, 2026, through December 31, 2028, representing the
Company's Idaho portion of benefits from the BPA REP. Application at 1. The Company noted
that its proposal would decrease the credit rate by$19,888,200"to eligible customers as compared
to the BPA fiscal year 2024-2025 period."Id.
The Company stated that BPA's ASC for the exchange period of October 2026 through
September 2028 is $60.47 per megawatt-hour("MWh"). Id. at 4. Because this amount is $0.40 per
MWh more than BPA's Priority Firm Exchange Rate,the Company's Idaho and Oregon qualifying
customers may receive $3,014,809 per year for the subsequent exchange period, which would be
a decrease compared to the previous exchange period.Id.
The Company stated that credits would be applied monthly to its qualifying(non-irrigation)
customers starting on January 1,2026.Id. at 5.However,the benefits for the Company's qualifying
irrigation customers would accumulate monthly and would be distributed to customers on a yearly
basis in December.Id.
1 The Company's Application misstated the proposed BPA credit as$0.0305 per kWh and subsequently requested that
the Commission approve a BPA credit of$0.000305 per kWh in Section VI of the Application.
ORDER NO. 36891 2

The proposed credit rate would apply to customers in rate Schedules 1, 3, 5, 6, 7, 8, 9, 15,
and 24 effective January 1, 2026, through December 31, 2028.Id.
STAFF COMMENTS
Staff reviewed the Company's Application and the BPA Fiscal Year 2026-2028 Final
Average System Cost Report, audited the inputs, and recalculated the rate. Staff Comments at 2.
Staff believed that the Company correctly calculated the rate of$0.000305 per kWh, as filed.Id.
Staff recommended that the Commission approve Schedule 98, as filed, providing
customers a credit of$0.000305 per kWh for rate schedules 1, 3, 5, 6, 7, 8, 9, 15, and 24, effective
January 1, 2026, through December 31, 2028.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including, Idaho Code §§ 61-301 through 303. 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 through 503.
Having reviewed the Application and all filings in this case,we find that the proposed rate
credit of$0.000305 per kWh is just and reasonable. We therefore approve the Application and the
Schedule 98 rate credit for Schedules 1, 3, 5, 6, 7, 8, 9, 15, and 24 effective January 1, 2026,
through December 31, 2028.
ORDER
IT IS HEREBY ORDERED that the Schedule 98 credit of$0.000305 per kWh for rate
schedules 1, 3, 5, 6, 7, 8, 9, 15, and 24, effective January 1, 2026, through December 31, 2028, is
approved, as filed.
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. 36891 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3 1" day of
December 2025.
G
Gv�
DWARD LODGE, RE I ENT
O14N R. HAMMOND JR., COMMISSIONER
b-TY—N HARDI , COM SSIONER
ATTEST:
Ak-'J,4.-�PA
La Calderon Robles
Interim Commission Secretary
I:\Legal\ELECTRIC\IPC-E-25-34_BPA\orders\IPCE2534_final_em.docx
ORDER NO. 36891 4