20061218Joint motion approval stipulation.pdf

!:('\/!'-
\ L. v
. \'
L~ L.
20Gb DEC 18 Pri 3: L~2
BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB # 5734
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Phone: [phone]
FAX: [phone]
bkline (Qj idahopower.com
mmoen (Qj idahopower.com
IDi,!)C f)U~,LiC
UTILU a:,:3 C;);\",,:1881(;
Attorneys for Idaho Power Company
Express Mail Address
1221 West Idaho Street
Boise , Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF FINANCIAL INCENTIVES TO
INVESTMENT IN ENERGY EFFICIENCY BY
IDAHO POWER COMPANY
) CASE NO. IPC-04-
) JOINT MOTION FOR APPROVAL
) OF STIPULATION
COMES NOW, Idaho Power Company ("Idaho Power" or "the Company"), the Staff
of the Idaho Public Utilities Commission ("Staff') and the NW Energy Coalition ("Coalition
and in accordance with RP 274 hereby move the Commission for an Order accepting the
settlement Stipulation filed herewith. The above-referenced entities may individually be
JOINT MOTION FOR APPROVAL OF STIPULATION, Page
referred to as a "Party" and collectively referred to as the "Parties . This Joint Motion
based on the following:
On August 10, 2004, the IPUC in Order No. 29558 established Case No.
IPC-04-15 to investigate financial disincentives to investment in energy efficiency by
Idaho Power. In its Order, the Commission directed the parties to participate in a series of
workshops and to provide a written report to the Commission concerning the workshop
proceedings.
On December 15 , 2004, the workshop participants filed a status report with
the Commission. The final report on the workshop proceedings was filed on February 14
2005. The final report called for two action items: (1) the development of a true-up
simulation to track what might have occurred if a decoupling or true-up mechanism had
been implemented for Idaho Power at the time of the last general rate case; and (2)
advocacy for filing of a pilot energy efficiency program that would incorporate both
performance incentives and fixed cost recovery adjustments. A final order was not issued
and the case remained open.
On January 27, 2006, Idaho Power filed an Application in this case
requesting authority to implement a rate adjustment mechanism that would adjust the
Company s rates upward or downward to recover the Company s fixed costs, independent
of the volume of Company energy sales ("FCA Mechanism ). With its Application the
Company filed the direct testimony of witnesses Ric Gale, Mike Youngblood and Ralph
Cavanagh. In its Application the Company also indicated its belief that consideration of
the proposed FCA mechanism would be facilitated by resuming the workshop process that
was conducted earlier in the case. Idaho Power requested that the Commission issue its
JOINT MOTION FOR APPROVAL OF STIPULATION , Page 2
order reinitiating the workshop process and ultimately authorizing the Company to
implement the FCA Mechanism for residential and small general service customers with
an initial rate change to occur on June 1 2007.
On March 3 , 2006, the Commission issued a Notice of Application and
acknowledged the intention of the Company and the Staff, together with other parties of
record, to initiate and engage in settlement discussions. The parties engaged in several
settlement negotiation sessions.
Based on the settlement discussions , the Parties have agreed to resolve
and settle all of the issues in the case. A copy of the signed Stipulation evidencing that
settlement is enclosed as attachment 1 and is included as Exhibit No.1 0 to John R. Gale
Supplemental Direct Testimony, which testimony is filed concurrently with this Application.
Other than the Parties signing the Stipulation , the only other party to this
proceeding, the Industrial Customers of Idaho Power ("ICIP") has advised the Parties that
even though it has not signed the Stipulation, the ICIP will not actively oppose it.
The Parties recommend that the Commission grant this Joint Motion and
approve the Stipulation in its entirety, without material change or condition pursuant to RP
274.
As noted in Paragraph 12 of the Stipulation, all the Parties agree that the
Stipulation is in the public interest and that all of its terms and conditions are fair, just and
reasonable.
The Parties recommend that the Commission process this Joint Motion
under Modified Procedure RP 201 et seq, but the Parties stand ready to present their
JOINT MOTION FOR APPROVAL OF STIPULATION , Page 3
testimony and support the Stipulation in a technical hearing if the Commission deems that
such a hearing is required.
NOW, THEREFORE, the parties respectfully request that the Commission issue its
Order:
Granting this Joint Motion and accepting Attachment 1 , the Stipulation , in its
entirety without material change or condition; and
Authorizing the Company to implement, as a pilot program , the FCA
mechanism proposed by the Company in its Application with the conditions and provisions
set out in the Stipulation.
Respectfully submitted this -rt;ay of December, 2006.
BARTON L. KLINE
Attorney for Idaho Power Company
William M. Eddie
Attorney for NW Energy Coalition
Scott Woodbury
Attorney for IPUC Staff
JOINT MOTION FOR APPROVAL OF STIPULATION , Page 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this day of December, 2006, I served a true and
correct copy of the within and foregoing upon the following named parties by the
method indicated below, and addressed to the following:
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington Street
Post Office Box 83720
Boise, Idaho 83720-0074
) U.S. Mail, Postage Prepaid
(X) Hand Delivered
) Overnight Mail
) Facsimile
(X) Email Scott.woodburv(Qjpuc.idaho.qov
Peter J. Richardson
Richardson & O'Leary PLLC
515 N. 2th Street
Boise, Idaho 83702
(X) U.S. Mail , Postage Prepaid
) Hand Delivered
) Overnight Mail
) Facsimile [phone]
(X) Email peter(Qj richardsonandolearv.com
William M. Eddie
Advocates for the West
610 SW Alder St., Suite 910
Portland , OR 97205
(X) U.S. Mail , Postage Prepaid
) Hand Delivered
) Overnight Mail
) Facsimile
(X) Email beddie (Qj advocateswest.orq
billeddie
(g)
rmci. net
Don Reading
Ben Johnson Associates
6070 Hill Road
Boise, Idaho 83702
(X) U.S. Mail , Postage Prepaid
) Hand Delivered
) Overnight Mail
) Facsimile
(X) Email dreadinq (Qj mindsprinq.com
Barton L. Kline
JOINT MOTION FOR APPROVAL OF STIPULATION , Page 5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-O4-
ID AH POWER CO MP ANY
ATTACHMENT NO.
JOINT MOTION FOR
APPROV AL OF STIPULATION
BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB # 5734
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Phone: [phone]
FAX: [phone]
bkline (Qj idahopower.com
mmoen (Qj idahopower .com
Attorneys for Idaho Power Company
Express Mail Address
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF FINANCIAL INCENTIVES TO
INVESTMENT IN ENERGY EFFICIENCY BY
IDAHO POWER COMPANY
) CASE NO. IPC-04-
) STIPULATION
This Stipulation ("Stipulation ) is entered into by and among Idaho Power Company
Idaho Power" or the "Company ), the Staff of the Idaho Public Utilities Commission
Staff") and the NW Energy Coalition ("Coalition ). These entities may individually be
referred to as a "Party" and collectively referred to as the "Parties
STIPULATION , Page
INTRODUCTION
The terms and conditions of this Stipulation are set forth herein. The Parties
agree that this Stipulation represents a fair, just and reasonable compromise of the issues
raised in this proceeding and that this Stipulation is in the public interest. The Parties
maintain that the Stipulation and its acceptance by the Idaho Public Utilities Commission
("IPUC" or the "Commission ) represents a reasonable resolution of multiple issues
identified in this matter. The Parties, therefore recommend that the Commission , in
accordance with RP 274, approve this Stipulation and all of its terms and conditions
without material change or condition.
II.BACKGROUND
On August 10, 2004, the IPUC in Order No. 29558 established Case No.
I PC-04-15 to investigate financial disincentives to investment in energy efficiency by
Idaho Power. In its Order, the Commission directed the parties to participate in a series of
workshops and to provide a written report to the Commission no later than December 15,
2004 to update the Commission on the status of the workshop.
On December 15 , 2004, the workshop participants filed a status report with
the Commission. The final report on the workshop proceedings was filed on February 14
2005. The final report called for two action items: (1) the development of a true-up
simulation to track what might have occurred if a decoupling or true-up mechanism had
been implemented for Idaho Power at the time of the last general rate case; and (2)
advocacy for filing of a pilot energy efficiency program that would incorporate both
performance incentives and fixed cost recovery adjustments. A final order was not issued
and the case remained open.
STIPULATION , Page 2
On January 27, 2006 , Idaho Power filed an Application in this case
requesting authority to implement a rate adjustment mechanism that would adjust the
Company s rates upward or downward to recover the Company s fixed costs, independent
of the volume of Company energy sales ("FCA Mechanism ). With its Application the
Company filed the direct testimony of witnesses Ric Gale, Mike Youngblood and Ralph
Cavanagh. In its Application the Company also indicated its belief that consideration of
the proposed FCA mechanism would be facilitated by resuming the workshop process that
was conducted earlier in the case. Idaho Power requested that the Commission issue its
order reinitiating the workshop process and ultimately authorizing the Company to
implement the FCA Mechanism for residential and small general service customers with
an initial rate change to occur on June 1 2007.
On March 3, 2006, the Commission issued a Notice of Application and
acknowledged the intention of the Company and the Staff, together with other parties of
record , to initiate and engage in settlement discussions.
Based on the settlement discussions among the parties , as a compromise of
the Parties' respective positions in this case and for other consideration as set forth below
the Parties agree to the following terms:
III.TERMS OF THE STIPULATION
The Parties agree that it would be in the public interest for the Company to
implement, as a pilot program , the FCA mechanism proposed by the Company in its
Application with the following conditions and provisions.
Any differences between Schedule 1 and 7 class revenue requirements and
the corresponding fixed cost per customer approved by the Commission in
STIPULATION , Page 3
Case No. IPC-05-28 (2005 qeneral rate case)must be reconciled with the
fixed cost per customer and fixed cost per energy utilized in the approved
FCA mechanism.
To determine the actual number of customers determined by class on a
monthly basis, the Company will utilize the same customer count
methodology used in the Company s 2005 rate case filing.
The methodology used to weather-normalize actual monthly energy used in
the FCA will be the same weather normalization methodology used in the
Company s filing in the 2005 rate case.
The FCA mechanism will be implemented on a pilot basis for a three-year
period beginning January 1 , 2007 and running through December 31 , 2009
plus any carryover. The first rate adjustment will occur June 1 , 2008
coincident with the 2008-2009 PCA and subsequent rate adjustment will
occur on June 1 of each year during the term of the pilot.
Calculation of the monthly FCA deferral will be recorded as a separate line
item in the monthly PCA report provided to the Commission.The
Commission approved FCA adjustment will be combined with the
Conservation Program Funding Charge for purposes of customer bill
presentation. There will be no separate line item for the FCA on customers
billing statements.
The Company will file its FCA adjustment request on March 15th of each
year. Staff's audit of the FCA adjustment request will include review of
deferral balances, comparison of actual energy savings to DSM energy
STIPULATION, Page 4
savings estimates as normally provided in the DSM Annual Report and load
growth forecasts and verification of the resulting FCA adjustment.
Either Staff or the Company can request the Commission to authorize
discontinuance of the pilot program during the three-year period. Requests
to discontinue the pilot program , with supporting justification must be filed
with the Commission during the March 15 to June 1 review period.
The Company will provide with its annual March 15th filing a detailed
summary of DSM activities that demonstrate an enhanced commitment to DSM
resulting from implementation of the FCA mechanism and removal of the financial
disincentive to DSM. Evidence of enhanced commitment will include , but not be limited
, a broad availability of efficiency and load management programs , building code
improvement activity, pursuit of appliance code standards, expansion of DSM programs
pursuit of energy savings programs beyond peak shaving/load shifting programs and
third party verification. As part of this commitment, the 2008 Integrated Resource Plan
will include an evaluation of the costs and potential for energy savings that would occur
if the appliance and equipment efficiency standards adopted by the State of Oregon
were applicable in the State of Idaho. In addition, the Company will make the following
specific commitments in regard to building code improvements, and enforcement of
such standards:
The Company will promote the adoption of energy codes to achieve
improved levels of efficiency in new commercial and residential
construction and appliance standards in Idaho consistent with the Model
Conservation Standards released by the Northwest Power and
STIPULATION , Page 5
Conservation Councilor that exceed the 2003 IECC and ASHRAE 90.
codes.
As part of its enhanced commitment to DSM described above , the
Company will promote and support appropriate energy code training
programs and advocate the enforcement of energy codes. Idaho Power
will identify ways to support energy code implementation and enforcement
in all jurisdictions in Idaho Power s service territory.
The Parties agree that this Stipulation represents a compromise of the
positions of the parties in this case. As provided in RP 272 , other than any testimony filed
in support of the approval of this Stipulation, and except to the extent necessary for a Party
to explain before the Commission its own statements and positions with respect to the
Stipulation, all statements made and positions taken in negotiations relating to this
Stipulation shall be confidential and will not be admissible in evidence in this or any other
proceeding.
10.The Parties will submit this Stipulation to the Commission and recommend
approval in its entirety pursuant to RP 274. Parties shall support this Stipulation before
the Commission , and no Party shall appeal a Commission Order approving the
Stipulation or an issue resolved by the Stipulation. If this Stipulation is challenged by
any person not a party to the Stipulation , the Parties to this Stipulation reserve the right
to file testimony, cross-examine witnesses and put on such case as they deem
appropriate to respond fully to the issues presented , including the right to raise issues
that are incorporated in the settlements embodied in this Stipulation. Notwithstanding
this reservation of rights, the Parties to this Stipulation agree that they will continue to
STIPULATION, Page 6
support the Commission s adoption of the terms of this Stipulation.
11.If the Commission rejects any part or all of this Stipulation , or imposes any
additional material conditions on approval of this Stipulation , each Party reserves the
right, upon written notice to the Commission and the other Parties to this proceeding,
within 14 days of the date of such action by the Commission , to withdraw from this
Stipulation.
12.The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable.
13.The obligations of the Parties under this Stipulation are subject to the
Commission s approval of this Stipulation in accordance with its terms and conditions
and upon such approval being upheld on appeal by a court of competent jurisdiction.
14.This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
Dated this 1 st day of December , 2006.
Idaho Power Company Idaho Public Utilities Commission Staff
~l~
Barton L. Kline
Attorney for Idaho Power Company
Scott Woodbury
Attorney for IPUC Staff
Northwest Energy Coalition
William M. Eddie
Attorney for NW Energy Coalition
STIPULATION , Page 7
support the Commission's adoption of the terms of this Stipulation.
11.If the Commission rejects any part or all of this Stipulation, or imposes any
additional material conditions on approval of this Stipulation , each Party reserves the
right, upon written notice to the Commission and the other Parties to this proceeding,
within 14 days of the date of such action by the Commission, to withdraw from this
Stipulation.
12.The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable.
13.The obligations of the Parties under this Stipulation are subject to the
Commission s approval of this Stipulation in accordance with its terms and conditions
and upon such approval being upheld on appeal by a court of competent jurisdiction.
14.This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
Dated this 1 st day of December, 2006.
Idaho Power Company Idaho Public Utilities Commission Staff~I~
Attorney for Idaho Power Company
Scott Woodbury
Attorney for IPUC Staff
Northwest Energy Coalition
William M. Eddie
Attorney for NW Energy Coalition
STIPULATION, Page 7