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HomeMy WebLinkAbout20260220Compliance Filing.pdf Ow-1 IOFuwER& MEGAN GOICOECHEA ALLEN RECEIVED Corporate Counsel FEBRUARY 20, 2026 maoicoecheaallen(a-idahopower.com IDAHO PUBLIC UTILITIES COMMISSION February 20, 2026 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-25-16 - Idaho Power Company's 2025 General Rate Case Notice Regarding Compliance with Non-Revenue Stipulated Agreement - Irrigation Time-of-Use Offering Dear Commission Secretary: Pursuant to Idaho Public Utilities Commission ("IPUC" or "Commission") Order No. 36892 approving the Stipulation and Settlement ("Stipulation") entered into by and among the Stipulating Parties in the above-captioned proceeding, Idaho Power Company ("Idaho Power or Company") hereby provides this notice to advise the Commission of the activities it has undertaken in compliance with the non-revenue stipulated agreement related to potential development of an optional Agricultural Irrigation Service (Schedule 24) time-of-use ("TOU") offering. More specifically, Section C, Subsection 12 of the Stipulation, which was included at the request of the Idaho Irrigation Pumpers Association, provides: 12. Irrigation TOU. Idaho Power commits to immediately initiate collaborative discussions with the Idaho Irrigation Pumpers Association ("IIPA"), and other interested parties, with the intent of developing an optional Agricultural Irrigation Service (Schedule 24) TOU offering that could be filed for IPUC approval as early as January 1, 2026, with the newly established rate structure becoming effective on or after June 1, 2026. Issues within scope for this collaborative effort include, but are not limited to, (1) appropriate TOU rate periods, (2) the extent to which generation and transmission costs are to be collected through on-peak energy charges, (3) interplay between the potential TOU offering and the Irrigation Peak Rewards demand response program and (4) mitigation of fixed cost revenue erosion. 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 Commission Secretary Idaho Public Utilities Commission February 20, 2026 Page 2 On November 6, 2025, the Company contacted parties in Case No. IPC-E-25-16, to gauge interest in participating in collaborative discussions regarding an optional Schedule 24 TOU offering and requesting that interested parties provide availability and preferred format (in-person or virtual) for a workshop for the Company to solicit feedback from several current Schedule 24 customers and those parties who expressed an interest in participating and to gather additional or alternative approaches for consideration. Based on the feedback received, the Company held an in-person workshop (with a remote option available) on December 3, 2025, at Idaho Power's Twin Falls Operations Center, which covered the following topics: • An overview of irrigation class load details, • Possible barriers to TOU participation for typical irrigation customers, • Value of a TOU program with different pricing periods for capacity/energy, • Ratemaking implications for recovery of fixed and variable costs, and • Initial strawman proposals. Following the workshop, on December 22, counsel for IIPA advised that its client was not interested in immediately implementing a Schedule 24 TOU offering but preferred to continue evaluating its feasibility and alternative approaches. The Company was amenable to this approach and proposed filing a status update with the Commission on the potential irrigation TOU offering, which IIPA agreed to. On January 30, 2026, the Company notified the other Stipulating Parties that it will not move forward with implementing an optional irrigation TOU offering at this time based on IIPA's feedback and provided them a copy of this letter prior to filing.' As a result the Company is providing this update to advise the Commission that it has, in compliance with the Stipulation, immediately initiated collaborative discussions with the IIPA and other interested stakeholders regarding the potential development of an optional TOU offering including addressing: (1)appropriate TOU rate periods, (2)the extent to which generation and transmission costs are to be collected through on-peak energy charges, (3) interplay between the potential TOU offering and the Irrigation Peak Rewards demand response program and (4) mitigation of fixed cost revenue erosion. While the Stipulation noted that the Company could seek Commission approval of such an offering as early as January 1, 2026 (with an effective date on or after June 1, 2026), the Company hereby advises the Commission that based on the feedback from IIPA it does not intend to seek to implement such an offering at this time. The Company requested that the Stipulating Parties respond with questions or concerns by February 13; as of the time of this filing the Company had not received any responses. Commission Secretary Idaho Public Utilities Commission February 20, 2026 Page 3 The Company appreciates the engagement of its irrigation customers and stakeholders in this matter and believes the collaborative efforts to date have been valuable. Idaho Power also appreciates the feedback from IIPA regarding the desired timing for seeking to implement an irrigation TOU offering and remains open to further discussions and ongoing collaboration with IIPA to evaluate potential options. Sincerely, n��^ 4wr?I Megan Goicoechea Allen MGA:sg