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HomeMy WebLinkAbout20260505Comments_2.pdf ~ Denise La Fever 1-0�-CVED �- E 6706 N Salvia Wau, ' Nri Meridian, Idaho 83646 i -5 AM II: 2 3 ak1740@gci.net <'iC �'t'BLIO COMM)SSION 907-250-8511 April 29,2026 Idaho Public Utilities Commission 11331 W. Chinden Blvd., Building 8, Suite 201-A Boise, ID 83714 RE: Opposition to Fixed Cost Adjustment(Case No. IPC-E-26-06) Dear Commissioners, I am writing to oppose Idaho Power's Fixed Cost Adjustment(FCA)filing dated March 13, 2026, under Case No. IPC-E-26-06. While described as a "true-up"mechanism,the FCA results in another increase applied exclusively to residential and small commercial customers, raising serious concerns regarding fairness, discrimination, and statutory compliance. 1. Residential Customers Are Singled Out The FCA applies only to: ® Residential customers • Small General Service customers It excludes: • Large General Service • Large Power customers Under Idaho Code§61-315, classifications must be reasonable and non-discriminatory. The Commission has repeatedly held that rate mechanisms must not unfairly burden one class of customers, including in Idaho Power Fixed Cost Adjustment Order No. 30722, where careful balancing of cost recovery and fairness was emphasized. The current proposal fails that balance. 2. Structural Inequity in Cost Recovery The FCA guarantees recovery of fixed costs regardless of: • Usage • Demand drivers • System impacts This violates the principle that cost responsibility should follow cost causation, reaffirmed in Idaho Power General Rate Case Order No. 34046. The result is clear: Residential customers subsidize infrastructure increasingly required by large industrial users. 3. Compounding Impact from Multiple Increases Although the FCA increase appears modest(0.65%), it is cumulative: • Layered on PCA increases • Following significant 2025 increases • Combined with higher fixed charges The Commission has recognized in prior decisions that cumulative impacts must be considered, particularly for residential customers,to ensure compliance with the public interest standard under idaho Code s 6 i-50 1. 4. Misalignment with Energy Efficiency Goals The FCA is intended to support efficiency, yet: Customers who conserve still pay more • Financial incentives to reduce usage are weakened The Commission has historically supported rate designs that encourage conservation, and structures that dilute those incentives warrant careful reconsideration. 5. Failure to Include Major Cost'Drivers The FCA excludes major contributors to system costs, including: Data centers • Industrial expansion Large agricultural operations using electric-powered irrigation In prior orders,the Commission has emphasized that excluding key demand drivers from cost recovew mechanisms can result. in ineq-Litahle outcomes, undermining both fairness and efficiency. Conclusion I respectfully request that the Commission: Deny the FCA as filed • Require participation from all customer classes in fixed cost recovery • Ensure alignmentwith Idaho Code H 61-315,61-502,and 61-501 Follow established IPUC precedent on fairness, cost causation, and avoidance of discrimination A lawful and equitable rate structure must ensure that those who drive system costs bear responsibility for them. Respectfully, Denise La Fever �✓.�. .,...can Denise Lafever 6706 N Salvia Way Meridian,ID 83646-4938 1 '30 APR 2026 P :p I pE3 c. �� �� (r I 1 � 31 �j C Z v� r"D::c"P,14_.,.C;21 j IHIIN)I)-I/, Denise La Fever % EI'vED 6706 N Salvia Way - Meridian, Idaho 83646 Q ak1740@gci.net ;^0 i'QBLIC 907-250-8511 I ".; i.,Qi<riAAlB$i0 April 29, 2026 Idaho Public Utilities Commission 11331 W. Chinden Blvd., Building 8, Suite 201-A Boise, ID 83714 RE:Opposition to Power Cost Adjustment(Case No. IPC-E-26-10) Dear Commissioners, I am writing to formally oppose Idaho Power's proposed Power Cost Adjustment(PCA)filed April 15, 2026, under Case No. IPC-E-26-10. While the PCA is presented as a neutral cost-recovery mechanism,the practical effect is yet another rate increase on residential customers,following closely on the heels of prior approved increases that already shifted costs away from large industrial users and onto hnucahnlrie Under Idaho ('nrlo S F1_5f12� ratoc miict ha jiiet and rgago ahte chic proposal fails that standard. 1. Pattern of Cost Shifting to Residential Customers The combined PCA and FCA proposal results in a 3.16%increase for residential custnmare Whiles larva inrli mtrinl rlaecae—inr-h imind I nr6P (,anPral gPnririn P1 Fno/n► Anri Large Power(3.69%)—continue to benefit from rate structures that do not fully reflect the infrastructure demands they create. This follows a larger 2025 rate increase, establishing a troubling pattern of cost shifting. The Commission has consistently emphasized in prior decisions that rates must reflect cost causation and avoid interclass subsidies, including in Idaho Power General Rate Case Order No. 34046,where the Commission reiterated that cost responsibility should align with the customers driving system costs. This proposal departs from that principle. 2. Industrial Demand Is Driving Power Costs The PCA increase is attributed largely to higher expected power costs, including reduced hydropower generation. However,this explanation omits a critical factor: Rapid growth in high-load users, including: • Hyperscale data centers such as those operated by Meta • Additional approved data center developments • Expanding industrial operations These users create massive, continuous demand, requiring: • New generation • Expanded transmission • Increased market purchases The Commission has previously recognized the importance of aligning infrastructure costs with demand drivers, including in Avista Utilities Electric Rate Case Order No. 33106, emphasizing that failure to properly allocate costs results in inequitable burdens across customer classes. 3. Forecast Risk Should Not Be Borne by Households The PCA shifts forecasting risk onto ratepayers. Residential customers: • Cannot control market conditions • Cannot hedge costs • Cannot materially reduce baseline usage The Commission has previously cautioned against undue risk transfer to customers without corresponding control or benefit, including in Idaho Power PCA Order No. 33357, where careful scrutiny of power cost recovery mechanisms was emphasized to ensure fairness. 4. Disproportionate Impact Despite"Neutral"Framing While Idaho Power asserts that it earns no return on PCA collections, the issue is not profit—it is allocation. Without proper safeguards,the PCA becomes: A hidden subsidy for large users • A regressive burden on households This conflicts with the Commission°s long-standing position that rate design must avoid undue discrimination, consistentwith both statutory requirements and prior rulings. Conclusion I respectfully request that the rd;;,mission: • Deny or significantly modify the PCA request • Require a cost-of-service study tied to demand drivers • Ensure compliance with Idaho Code N 61-502,61-315,and 61-501 • Align this decision with prior Commission precedent on cost causation and fairness Idaho families should not bear the financial burden of industrial expansion and energy market volatility. Respectfully, Denise La Fever Denise Lafever 6706 N salvia Way BOISE ID RPDC 837 Meridian,P,8 a. -4938 30 APR 2026 PM 1 'L p i -7 IfIpII'Jl113l+oillll,11