20191217_yy1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:YAO YIN
DATE:DECEMBER 12,2019
RE:IDAHO POWER COMPANY'S TARIFF ADVICE NO.19-11;REVISIONS
TO SCHEDULE 98,RESIDENTIAL AND SMALL FARM ENERGY
CREDIT
BACKGROUND
On November 15,2019,Idaho Power Company filed Tariff Advice No.19-11 with the
Commission to revise Schedule 98 -Residential and Small Farm Energy Credit.
Schedule 98 is the result of the settlement agreement between the Company,Bonneville
Power Administration ("BPA"),and others Contract No.11PB-12322,which provides for
benefits from the federal Columbia River power system directlyto Idaho Power's qualifying
residential and small farm customers.
The agreement requires benefits to be recalculated every two years through an Average
System Cost (ASC)filing and review process administered by BPA.
Idaho Power proposes changes to the Credit Adjustment section of Schedule 98,
increasing the Bonneville Power Administration ("BPA")Residential and Small Farm Energy
Credit from 0.1908 cents per kWh to 0.3617 cents per kWh for the period January 1,2020,
through December 31,2021.Idaho Power proposes to continue to pass this credit back on a
uniform cents per kWh basis to qualifying Idaho customers served under Schedules 1,3,5,6,7,
8,9,15 and 24.
STAFF ANALYSIS
Staff has reviewed the Company's calculation of the BPA Credit,which is based on
annual benefits of $22,292,128for the two year exchange period from October 1,2019,through
DECISION MEMORANDUM -1 -DECEMBER 12,2019
September 30,2021.Staff recommends that the revised Schedule 98 be approved by the
Commission effective January 1,2020.
For the Fiscal Years 2020-2021 period,Idaho Power's Average System Cost (ASC)is
$64.41 per megawatt-hour.Idaho Power's exchange period ASC exceeds BPA's Priority Firm
Exchange Rate (currently$61.11 per megawatt-hour)by $3.30 per megawatt-hour.Idaho
Power's annual residential and irrigation load of 6,760,107 megawatt-hours is multiplied by the
$3.30 per megawatt-hour differential to obtain the annual benefit of $22,292,128.This is an
increase of $8,916,592 per year from the 2018-2019 exchange period.
STAFF RECOMMENDATION
Staff recommends that the revised Schedule 98,Residential and Small Farm Energy
Credit be approvedby the Commission effective January 1,2020,through December 31,2021.
COMMISSION DECISION
Does the Commission wish to approve the Company's proposed modifications to
Schedule 98,Residential and Small Farm Energy Credit effective January 1,2020?
Yao Yin
Udmemos/Idaho Power's Schedule 98 Dec Memo
DECISION MEMORANDUM -2 -DECEMBER 12,2019