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HomeMy WebLinkAbout20140630_4402.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER REDFORD COMMISSIONER SMITH COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: KARL T. KLEIN DEPUTY ATTORNEY GENERAL DATE: JUNE 27, 2014 SUBJECT: COMMISSION INQUIRY INTO IDAHO POWER’S FCA, CASE NO. IPC- E-14-17 On May 30, 2014, the Idaho Public Utilities Commission issued Order No. 33047 in Idaho Power Company’s Fixed Cost Adjustment (FCA) Case, IPC-E-14-03. In the Order, the Commission approved the Company’s FCA Application. See Order No. 33047 at 7. But the Commission acknowledged Staff’s concerns that the FCA mechanism is fundamentally flawed and that the FCA no longer serves its intended purpose of removing the Company’s perceived financial disincentive to investing in energy efficiency and Demand-Side Management. The Commission stated: While we approve of the Company’s Application, we continue to acknowledge that the FCA is an imperfect mechanism that warrants monitoring, discussion and review. See Order Nos. 32505 at 6 and 32731 at 4, Case No. IPC-E-11-19. We thus intend to open a separate, future docket to allow Commission Staff, the Company, and other interested persons to further evaluate Staff’s concerns about the FCA mechanism (including the weather- normalization, customer count, rate adjustment cap, and cross-subsidization issues) and whether the FCA is effectively removing the Company’s financial disincentive to aggressively pursue energy efficiency programs. Id. The Commission concluded by ordering that a new case be opened to address these issues. Id. at 8. STAFF RECOMMENDATION Staff recommends the Commission issue a Notice of Intervention Deadline that initiates this case, sets a 14-day intervention deadline, and directs Staff to convene an informal prehearing DECISION MEMORANDUM 2 conference with the parties after the intervention deadline runs. After the prehearing conference occurs, another Order can issue setting further procedure as necessary. COMMISSION DECISION Would the Commission like to issue a Notice of Intervention Deadline that initiates this case, sets a 14-day intervention deadline, and directs Staff to convene an informal prehearing conference? M:IPC-E-14-17_kk