20100910notice_of_workshop.pdf

Office of the Secretary
Service Date
September 10 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMISSION'
INQUIRY INTO LOAD GROWTH
ADJUSTMENTS THAT ARE PART OF
POWER COST ADJUSTMENT
MECHANISMS.
CASE NO. GNR-I0-
NOTICE OF WORKSHOP
Power supply costs represent a significant portion of a utility s total revenue
requirement and are subject to a high degree of volatility largely outside the utility s control.
Power cost adjustment mechanisms allow a utility to collect from customers or credit to
customers the majority of the difference between actual net power costs incurred by the utility to
serve its customers and the normalized amount of power supply costs collected from customers
through rates set in a general rate case.
Power cost adjustment mechanisms are now being utilized by Idaho s three major
electric utilities (Avista Corporation (PCA), Idaho Power Company (PCA) and Rocky Mountain
Power (ECAM)). Each of these power cost adjustment mechanisms contains an adjustment to
power costs for variations between normal and actual loads. When loads grow, a portion of the
power costs of serving the load is removed from the power cost adjustment mechanism. When
loads decline, costs have been added to the mechanism and are passed on to customers.
In a recent case (PAC-lO-Ol), the Commission observed that in periods of
declining load the mechanism "appears to operate much the same as a decoupling mechanism
reimbursing the company for lost revenue for reductions in customer usage (sales)." Order No.
31033. The Commission directed the Staff to hold a workshop "to discuss this phenomenon and
report continued justification for use of an LGAR (load growth adjustment rate J when loads
decline.Id On June 9, 2010, Commission Staff met with representatives from Avista, Idaho
Power and Rocky Mountain Power to identify and discuss differences in the three load growth
adjustment mechanisms. By this Notice, the Idaho Public Utilities Commission initiates a case
to provide a forum for the exploration of issues related to load growth adjustments.
NOTICE OF WORKSHOP
YOU ARE HEREBY NOTIFIED that the Commission shall convene a workshop on
TUESDAY. SEPTEMBER 28. 2010. AT 10:00 A.M. IN THE COMMISSION HEARING
ROOM. 472 WEST WASHINGTON STREET. BOISE. IDAHO Persons wishing to
participate telephonically may dial toll-free [phone]: when prompte4. enter Participant
NOTICE OF WORKSHOP
Code 472404.The purpose of the workshop is to explore in greater detail issues related to load
growth adjustment mechanisms.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held in
facilities meeting the accessibility requirements of the Americans with Disabilities Act (ADA).
Persons needing the help of a sign language interpreter or other assistance in order to participate
in or to understand testimony and argument at a public hearing may ask the Commission to
provide a sign language interpreter or other assistance at the hearing. The request for assistance
must be received at least five (5) working days before the hearing by contacting the Commission
Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretary~puc.idaho.gov
DA TED at Boise, Idaho this /Otf\ day of September 2010.
MARSHA H. SMITH, COMMISSIONER
'~\....
po.
MACK A. REDFORD, C MMISSIONER
ATTEST:
O:GNR-10-03 ks
NOTICE OF WORKSHOP