20260529Final_Order_No_37054.pdf

Office of the Secretary
Service Date
May 29,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-10
COMPANY'S APPLICATION FOR )
AUTHORITY TO IMPLEMENT POWER )
COST ADJUSTMENT ("PCA") RATES FOR ) ORDER NO. 37054
ELECTRIC SERVICE FROM JUNE 1, 2026 )
THROUGH MAY 31, 2027 )
On April 15, 2026, Idaho Power Company ("Company") applied to the Idaho Public
Utilities Commission ("Commission") requesting an order approving an update to Schedule 55
("Application") based on: (1) the quantification of the 2026-2027 Power Cost Adjustment
("PCA");(2)the PCA Balancing Adjustment;and(3)the Idaho jurisdictional Boardman Balancing
Account("Boardman Balancing Account") over-collection, to become effective June 1, 2026, for
the period of June 1, 2026, through May 31, 2027. Application at 17.
On May 4,2026,the Commission issued a Notice of Application and a Notice of Modified
Procedure,establishing comment deadlines. Order No. 37028. On May 4,2026,the Company filed
an Errata to its Application and Direct Testimony of Jessica Brady ("Errata to Application and
Brady Direct"). On May 8, 2026, the Commission issued an Amended Notice of Application.
Order No. 37036. No petitions to intervene were filed. 12 public comments were received.
Based on our review of the record, we issue this Final Order approving the Application to
update Schedule 55.
BACKGROUND
The PCA mechanism permits the Company to increase or decrease its PCA rates to reflect
the Company's annual power supply costs. Because the PCA mechanism is used to reflect annual
power supply costs, the Company's PCA application is an annual filing. The Company's actual
power supply costs, or Net Power Supply Expenses("NPSE"),varies from year to year depending
on changes in such things as the river streamflow, the amount of purchased power, fuel costs, the
market price of power, and other factors. The annual PCA surcharge or credit is combined with
the Company's "base rates"to produce a customer's overall energy rate.
ORDER NO. 37054 1

The PCA quantifies and tracks annual differences between actual NPSE and the normalized
or"base level" of NPSE recovered in the Company's base rates, resulting in a credit or surcharge
that is updated annually on June 1. The PCA allows the Company to pass through 95% of the
annual differences in actual NPSE as compared with the base level NPSE. The PCA mechanism
uses a 12-month test period from April through March ("PCA Year") and includes a forecast
component and a Balancing Adjustment. The forecast component represents the difference
between the Company's NPSE forecast from the Company's March Operating Plan and base level
NPSE recovered in the Company's base rates. The Balancing Adjustment includes a backward-
looking tracking of differences between the prior PCA Year's forecast and actual NPSE incurred
by the Company and also tracks the collection of the prior year's Balancing Adjustment.
The PCA mechanism only analyzes costs associated with power supply, not the Export
Credit Rate ("ECR"), the Company's profits/earnings, or the Company's operational expenses.
The PCA adjustment is symmetrical, which means if the Company's actual NPSE are lower than
the base level NPSE in the base rates,then the PCA rate will be a credit to the customer, and if the
actual NPSE are higher than the base level NPSE in the base rates, then the PCA rate will be a
surcharge to customers.
THE APPLICATION
The Company represented that if the Application was approved,it would result in a revenue
increase of approximately $51.3 million, or a 3% increase from its current billed revenue. Errata
to Application and Brady Direct at 2. The Company represented that its proposed 2026-2027 PCA
rates would collect $86.5 million in total PCA collection. Id. at 2. The Company submitted the
following table to show the separation of the $51.3 million revenue increase into each component
included in the Company's proposed rates:
Idaho Jurisdictional Revenue Impact by Component
Line
No. Rate Component 2025-2026 PCA 2026-2027 PCA Difference
1 PCA Forecast $ 88,931,875 $ 165,106,470 $ 76,174,596
PCA Balancing
2 Adjustment $ 53 722 317 $ 78 581 629 $ (24,859,313
3 PCA Total $ 35,209,558 $ 86,524,841 $ 51,315,283
4 Revenue Sharing $ 0 $ 0 $ 0
5 Total Revenue Impact $ 35,209,558 $ 86,524,841 $ 51,315,283
Id. at 4.
ORDER NO. 37054 2

The Company stated the increase in this year's PCA was due to an increase in the PCA's
forecast component, which showed a 16% decrease in "forecast hydro generation" compared to
the previous PCA Year. Application at 14. The Company represented that a decrease to the
Balancing Adjustment partially offset this year's PCA. Id. The Company explained that the
decrease was due to increased Renewable Energy Credit sales, the Sales-Based Adjustment, and
because the over-collected amount of $3,279,207 from the Boardman Balancing Account was
included in the Balancing Adjustment.Id.
The Company represented that the Boardman Balancing Account, established in
Commission Order No. 32457 in Case No. IPC-E-11-18, allowed the Company to track and
reconcile revenue from customers with the costs and credits related to the early closure of the
Boardman Power Plant.Id. at 11-12. The Company stated that all activities related to the closure
of the Boardman Power Plant were complete and that Table 1 summarized the total Idaho
jurisdiction over-collected amount:
Table i
Idaho Jurisdictional Boardman Balancing Account
Line No.
1 Decommissioning Costs $ 3,108,402
2 Materials and Supplies Write-off $ 920,138
3 Total Decommissioning Expenditures $ 4,028,540
4 Collection of Costs $ (5,116,957)
5 Load Variance True-Up $ (3,950)
6 Asset Purchase Agreement Proceeds $ (2,186,840)
7 Under(Over)Collection $ (3,279,207)
Id. at 14.
STAFF COMMENTS
Based on a review of the Application, an audit of sampled transactions, examination of the
testimony and workpapers of Company witness Jessica G. Brady, and a review of the Company's
responses to Staff's Audit and Production Requests, Staff recommended that the Commission
approve the proposed Schedule 55, as filed, effective June 1, 2026. Staff Comments at 3.
Staff determined the power supply expenses used by the Company in its Balancing
Adjustment, for the periods of April 2025 through December 2025 and January 2026 through
March 2026, were consistent with Order No. 36892. Id. at 4. Staff examined the forecast
component in the Company's 2026-2027 PCA and believed it was reasonable. Id. Staff believed
ORDER NO. 37054 3

the difference between the Company's forecasted hydro generation and overall system load
increase explained most of the $181 million cost difference between forecasted NPSE and NPSE
embedded in base rates.Id. at 5.
However, Staff noted that the calculation for the forecast component was getting more
complex, which Staff believed complicated calculating the cause and impact of substantial
changes.Id. Staff also believed that the Clean Energy Your Way("CEYW")contracts complicated
the forecast component. Id. Staff requested that for future filings that the Company supply a
worksheet that calculated and reconciled the adjustments made to the PCA because of the CEYW
contracts. Id. at 6. Staff also believed that the Company should apprise the Commission of
differences between forecasted and actual NPSE during the 2026-2027 PCA Year and make an off-
cycle filing to adjust the forecast rate if differences are significant,to help stabilize customer rates.
Id.
Staff believed that the Company's calculation of the actual NPSE was reasonable.Id. at 7.
Staff calculated that the actual NPSE was 1% less than the forecasted NPSE. Id. Based on its
review of the Company's other PCA expenses, including qualifying facility expenses, Public
Utility Regulatory Policies Act of 1978 expenses, ECR expenses, demand response incentive
payments,renewable energy credit sales,and wheeling revenues, Staff agreed with the Company's
calculation of a $40.0 million decrease to the deferral balance. Id. at 8-9. Staff agreed with the
$64.6 million decrease to the deferral balance for the revenue the Company collected from the
2025-2026 PCA forecast adjustment.Id. at 10. Staff also agreed with the $23.2 million increase to
the deferral balance for the revenue the Company collected from the 2025-2026 PCA balancing
adjustment.Id.
Staff reviewed the Company's compliance filings in Case No. IPC-E-12-09 for the
Boardman Balancing Account and agreed with the Company that it over-collected $3.3 million.
Id. at 11. Staff believed the Company complied with all Orders on the account and recommended
the Commission approve the Company returning the account balance to the Company's customers
to help reduce the PCA increase.Id. After reviewing the Company's ROE inputs and calculations,
Staff agreed with the Company that based on the percentage of the 2025 return on equity, there
would be no revenue sharing benefit for customers.Id. at 11.
Staff determined that if the Company's PCA filing(this case)and its Fixed Cost Adjustment
("FCA") filing in Case No. IPC-E-26-06 were both approved, there would be an increase in the
ORDER NO. 37054 4

Company's current billed revenue in the amount of $56.4 million, or 3.30%. Id. at 12. Staff
produced Table No. 5 below that showed what the impact of the PCA and FCA would be, if
approved,by revenue class:
Table No.5: Percentage Increase from Current Billed Rates bN Proposed Change
Small Large
General General
Residential Service Service Large Power Irrigation
PCA 2.50% 2.06% 3.49% 3.68% 2.95%
FCA 0.65% 0.65% N/A N/A N/A
Total Combined Impact 1 3.15% 2.71% 1 3.49% 1 3.68%
Id. Staff believed the Company's customer notice and press release complied with Rule 125 of the
Commission's Rules of Procedure(IDAPA 31.01.01.125).Id. at 13. Based on the written comment
deadlines, Staff recommended the Commission consider any late-filed comments from customers.
Id.
PUBLIC COMMENTS
The Commission received 12 timely filed comments. Most comments opposed the
proposed rate adjustment. Customers were concerned that they were paying for the Company's
failure to plan accordingly and that they do not have the ability to choose a different power
provider. Customers also felt the Company recently imposed a rate increase and that there was
little to no consideration for how multiple rate increases affect customers when combined with
increased cost of living and the fact that wages are not keeping up with the cost of living in Idaho.
Customers asked the Commission to ensure that the Company is implementing reasonable cost
measures. One customer felt the rate increase was shifting costs away from large industrial
customers and that the Company was not showing the impact that infrastructure demand due to
large customers is having on the system.
One customer was unhappy with the ECR increase because the Company is not offering
compensation to customers with rooftop solar and feels instead that the Company is selling energy
from rooftop solar at three times the price. The customer also asked the Commission to look into
the Company's salaries for its executives and is concerned that the Commission is granting the
Company's request without thoroughly investigating the filing. The customer also implied that the
Commission is catering to the Company.Another opposed processing the Application via Modified
Procedure.A customer questioned whether the Company's compensation for customer generation
will increase.
ORDER NO. 37054 5

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 record in this case. Based on our review,we find it fair,
just, and reasonable to approve the Application, and approve the proposed Schedule 55 as filed,
effective June 1, 2026. The Commission finds the Company's forecasts for costs for the 2026-
2027 PCA Year reasonable. The Commission also finds that the Company's balancing adjustment
for the last PCA Year is accurate and that the actual NPSE is prudent. The Commission approves
the Company's proposed treatment of the Boardman Balancing Account, which will result in a
$3.3 million credit to customers. The Commission notes the money collected through the PCA can
only be used for recovery of the Company's actual power supply expenses. It does not increase
Idaho Power's return on equity.
Through its statutory authority the Commission's intent is always to set rates that are just
and reasonable and also sufficient to allow the regulated utility to recover its prudently incurred
costs. Actual costs that it incurred in furtherance of complying with the statutory requirement to
provide service to customers that promotes their "safety, health, comfort and convenience[.]"
Idaho Code § 61-302; see also Idaho Code §§ 61-301, 61-501 and 61-502.
While the Commission approves the Application and the proposed Schedule 55 as filed,
the Commission directs the Company in future filings to supply a worksheet that calculates and
reconciles the adjustments made to the PCA because of CEYW contracts. Additionally, the
Commission directs the Company to keep the Commission apprised of any differences between
forecasted and actual NPSE during the 2026-2027 PCA Year and to make an off-cycle filing to
adjust the forecast rate if those differences are significant.
ORDER
IT IS HEREBY ORDERED that the Application is approved and that the Company's
proposed Schedule 55 is approved as filed.
IT IS FURTHER ORDERED that the new PCA rate shall be effective June 1, 2026.
ORDER NO. 37054 6

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order regarding any matter decided in
this Order.Within seven days after any person has petitioned for reconsideration, any other person
may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 29th day of
May 2026.
G o
�A
EDWARD LODG RESIDENT
J R. HAMMOND JR., COMMISSIONER
DAYN HARDIE, COMMISSIONER
ATTEST:
I jj_)4-'j'Q1
omc Barrio - anchez
Commission Secretary
L\Legal\ELECTRIC\IPC-E-26-10_PCA\orders\IPCE2610_FO_kr.docx
ORDER NO. 37054 7