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HomeMy WebLinkAbout20260811Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: ERIKA K. MELANSON DEPUTY ATTORNEY GENERAL DATE: AUGUST 11, 2027 SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY'S PETITION TO EVALUATE CLASS COST-OF-SERVICE METHODOLOGY, CONSIDER ALTERNATIVE CLASS COST-OF-SERVICE STUDIES, AND DETERMINE COST OF SERVICE CONSIDERATIONS FOR NEW LARGE-LOAD CUSTOMERS; CASE NO. IPC-E-26-07. On March 31, 2026, Idaho Power Company ("Company") petitioned the Idaho Public Utilities Commission ("Commission") requesting to initiate a docket to evaluate and develop a record on the Company's Class Cost-of-Service ("CCOS") methodology including consideration of alternative methodologies ("Petition"). On April 13, 2026, the Commission issued a Notice of Petition and Notice of Intervention Deadline. Order No. 36998. The Commission granted intervention to: Ruveon LLC, an affiliate of Bayer Corporation ("Bayer"), the city of Boise City ("Boise City" or "City"), Clean Energy Opportunities for Idaho ("CEO"), the United States Department of Energy, on behalf of itself and other federal executive agencies ("FEA"), Idaho Irrigation Pumpers Association, Inc. ("IIPA"), the Industrial Customers of Idaho Power ("ICIP"), Micron Technology, Inc. ("Micron"), and the Northwest Energy Coalition("NWEC"). Order Nos. 36997, 37019, 37032, 37040, and 37052. The Commission issued a Notice of Parties on May 12, 2026, and an Amended Notice of Parties on June 1, 2026. THE PETITION AND SCHEDULING CONSIDERATIONS The Company's Petition arises from the Stipulation and Settlement ("Stipulation") approved by the Commission in the Company's 2025 General Rate Case("GRC"). Case No. IPC- E-25-16. Under the Stipulation, the Company agreed to "initiate a single-issue case related to DECISION MEMORANDUM 1 CCOS methodology for the Commission's consideration in advance of filing a Notice of Intent for its next GRC . . .."Id., Order No. 36892. In approving the Stipulation, the Commission found that "a focused, single-issue proceeding will provide the Company, [Commission] Staff, and intervening parties with the most effective forum to collaborate, develop a robust record, and examine the CCOS methodology."Id. Since the Petition was filed, Commission Staff ("Staff") has facilitated two full-day workshops involving the Company and the intervening parties. These workshops provided the parties with an opportunity to define the purpose and scope of the proceeding,establish the desired outcomes, examine the Company's current CCOS methodology, exchange information and data, and collaboratively evaluate potential alternative methodologies. STAFF RECOMMENDATION Staff, intervenors, and the Company have communicated regarding a proposed procedural schedule for processing this case. Staff recommends the Commission issue a Scheduling Order establishing: • September 23, 2026: Company Comments/Testimony/Proposal • November 25, 2026: Staff and Intervenor Comments/Testimony/Proposals • December 14, 2026: Public Comment Deadline • January 13, 2027: All Party Written Testimony • Week of January 18, 2027: Technical Hearing at a time and place to be set by Order of the Commission. 0 30-minute opening statements/presentation of proposal o Questions to presenting party following opening statements o Witness testimony o Questions to witnesses COMMISSION DECISION Does the Commission with to issue a Scheduling Order establishing the above procedural schedule? 0A& En' a K. Melanson Deputy Attorney General I TegaRELECTRIC\IPC-E-26-07_CCOS\memos\IPCE2607_dec3_sched_em.docx DECISION MEMORANDUM 2