20261008Notice_of_Application_Order_No_37197.pdf

Office of the Secretary
Service Date
October 8,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-26
COMPANY'S APPLICATION FOR )
AUTHORITY TO ESTABLISH A REVISED ) NOTICE OF APPLICATION
MARGINAL COST-BASED ENERGY )
PRICING FRAMEWORK ) NOTICE OF INTERVENTION
DEADLINE
ORDER NO. 37197
On September 11, 2026, Idaho Power Company("Company") applied to the Idaho Public
Utilities Commission ("Commission") requesting approval of a revised marginal cost-based
energy pricing framework applicable to customers taking service under a marginal cost-based
energy rate ("Application"). The Company requests an order by February 26, 2027.
The Commission now issues this Notice of Application and sets deadlines by which
interested persons may intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company is not currently proposing new
marginal cost-based energy rates in this case; rather, it seeks approval of the pricing framework
and associated methodologies so they may be incorporated into the next annual marginal cost-
based energy rate update proceeding. Application at 1-2. The Application is in response to the
Commission's direction in Order No. 37125 to initiate a docket to evaluate the methodologies used
to determine marginal cost-based energy rates.Id. at 6.
YOU ARE FURTHER NOTIFIED that the Company states that the proposed framework
would apply to customers subject to the Commission-approved Single-Run Method but not to
customers served under the Avoided Cost Average or Two-Run methods, which are prescribed in
their respective Energy Services Agreements.Id. at 4.The Company's proposed framework would
include any future Schedule 20 customers,Micron Technology,Inc.'s new memory manufacturing
fabrication complex under Schedule 28, and Chobani, LLC under proposed Schedule 35.Id.
YOU ARE FURTHER NOTIFIED that the Company proposes a framework that consists
of three components, each addressing a distinct power supply cost or forecast-related risk. Id. at
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 37197 1

7-8. First, the Embedded Energy Rate would combine affected customers into a single "Marginal
Cost Customer Group," allocate that group a share of forecast net power supply expense based on
its percentage of total billed sales,and allow the group to participate in the Power Cost Adjustment
("PCA") true-up rather than paying solely on the basis of forecast costs. Id. at 8. Second, the
Marginal Premium would capture incremental costs where marginal power supply costs exceed
embedded costs,determined through an hourly comparison of embedded and Single-Run marginal
rates,with positive hourly differences aggregated by month.Id. at 8-9. No premium applies when
the marginal rate is at or below the embedded rate.Id. at 9. Third, the Forecast Variance Premium
("FVP")would address costs or risks arising from material deviations between forecast and actual
usage, applying only when a customer's actual monthly usage falls below 90% or above 110% of
forecast, in which case the applicable rate is applied to the customer's entire variance from
forecast. Id. at 10. The FVP would apply only to customers with a maximum contract demand of
at least 50 megawatts, a threshold intended to focus the mechanism on customers whose forecast
deviations have the greatest potential to shift material costs or risks onto other customers. Id. at
11.
YOU ARE FURTHER NOTIFIED that for implementation, the Company proposes to
incorporate the approved framework into the next annual marginal cost-based energy rate update
proceeding,with customers continuing to be billed under current rates until new rates are approved
through that process. Id. at 12. The Company proposes to continue updating rates annually,
developing them using inputs for an April-through-March test year and making them effective
June 1 of each year, and to file the annual update no later than five business days after filing its
annual PCA application.Id. at 12-13.
YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission's office. The Application is also available on the
Commission's website at www.pue.idaho.gov. Click on the "ELECTRIC" icon, select "Open
Cases," and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this
matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000
et seq.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 37197 2

NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties' rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission's Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073.
Persons who wish to intervene as a party must file a Petition to Intervene no later than 21
days after the date of service of this Order. Such persons shall also provide the Commission
Secretary with their email address to facilitate further communications. After the intervention
deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties
and assigns exhibit numbers to each parry. Once the Notice of Parties has issued, Commission
Staff shall informally confer with the Company and any intervening parties about how to further
process this case and shall then report back to the Commission on a proposed case schedule.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties' rights of participation and cross-examination do not have to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following people are designated as the
Company's representatives in this matter:
Megan Goicoechea Allen Connie Aschenbrenner
Lisa C. Lance Timothy E. Tatum
Regulatory Dockets Jessi Brady
Idaho Power Company Idaho Power Company
1221 West Idaho Street(83702) 1221 West Idaho Street(83702)
P.O. Box 70 P.O. Box 70
Boise, Idaho 83707 Boise, Idaho 83707
maoicoecheaallengidahopower.com caschenbrenner&idahopower.com
llance(c idahopower.com ttatum(d),idahopower.com
docketskidahopower.com jbradykidahopower.com
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a
Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline
has passed, the Commission Secretary shall prepare and issue a Notice of Parties.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 37197 3

IT IS FURTHER ORDERED that,after the Notice of Parties has issued, Commission Staff
shall confer with the parties regarding a procedural schedule for this matter including,if necessary,
a hearing in this matter.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 8th day of
October 2026.
G
EDWARD LODGE, PR IDENT
J R. HAMMOND JR., COMMISSIONER
(—
DAVN HA IE, COMMISSIONER
ATTEST:
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Commission Secretary
IALegal\ELECTRIC\IPC-E-26-26 marginal cost\orders\IPCE2626_ntc app_int em.docx
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 37197 4