20060301Corrected Motion and Stipulation.pdf

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BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB #5734
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
BKline (ij) idahopower.com
MMoen (ij) idahopower.com
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Attorneys for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise , Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS BASE
RATES AND CHARGES FOR ELECTRIC
SERVICE IN THE STATE OF IDAHO
CASE NO. IPC-05-
MOTION FOR APPROVAL OF
STIPULATION
COMES NOW , Idaho Power Company ("Idaho Power" or "Company ), the
Commission Staff and the other Parties to the settlement Stipulation , and hereby move the
Commission for an Order accepting the settlement Stipulation filed herewith. This Motion
is based on the following:
On October 28 2005, Idaho Power filed an Application in this case
seeking authority to increase the Company s rates an average of 7.8%. If approved, the
Company s revenues would increase $43 948 189 annually. Idaho Power proposed
that the rate increase be spread equally among all major customer groups and special
MOTION FOR APPROVAL OF STIPULATION , Page
contract customers. The Company requested that new rates become effective on
June 1 , 2006.
Petitions to intervene in this proceeding were filed by the Idaho
Irrigation Pumpers Association, Inc. ("IIPA"), the Industrial Customers of Idaho Power
ICIP"), Micron Technology, Inc. ("Micron ), the United States Department of Energy
DOE"), the Northwest Energy Coalition ("NWEC") and the Kroger Company ("Kroger").
These entities are collectively referred to as the "Parties." By various orders, the
Commission granted these interventions. IPUC Order Nos. 29919 , 29926 , 29931
29935.
On January 5 , 2006 , the Parties attended an informal scheduling
conference to devise a proposed schedule for holding hearings and completing
discovery in this proceeding. During the informal conference, the Parties agreed to
engage in settlement discussions in accordance with RP 272 with a view toward
resolving the issues in this case. The Parties conducted settlement discussions on
February 7 2006 and February 14, 2006.
Based on the settlement discussions , the Parties whose signatures
appear on the Stipulation have agreed to resolve and settle all of the issues in the case.
copy of the signed Stipulation evidencing that settlement is enclosed as Attachment 1.
The Parties recommend that the Commission grant this Motion and
approve the Stipulation in its entirety, without material change or condition , pursuant to
RP 274.
Staff and intervenor testimony is due March 3, 2006. Rebuttal
testimony is due March 27, 2006. Idaho Power and the Commission Staff each intend to
MOTION FOR APPROVAL OF STIPULATION , Page 2
file testimony supporting this Motion and recommending approval of the Stipulation. Other
Parties may choose to file supporting testimony as well. As noted in Paragraph 14 of the
Stipulation , all of 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 stand ready to support
the Stipulation at the Commission s technical hearings scheduled for April 1 0-, 2006.
NOW, THEREFORE, the Parties respectfully request that the Commission
issue its Order:
Granting this Motion and accepting Attachment 1 , the Stipulation, in
its entirety, without material change or condition; and
Authorizing the Company to implement revised tariff schedules
designed to recover $18.1 million in additional annual revenue from Idaho jurisdictional
base rates consistent with the terms of the Stipulation; and
Authorizing that the revised tariff schedules be made effective June 1
2006.
Respectfully submitted this .ar!..~ay of February, 2006.
~I~
BAR ON L. KLINE
Attorney for Idaho Power Company
MOTION FOR APPROVAL OF STIPULATION , Page 3
CERTIFICATE OF SERVICE
C) 1i,-",I HEREBY CERTIFY that on thiscf' ,day of February 2006 , I served a true
and correct copy of the within and foregoing MOTION FOR APPROVAL OF STIPULATION
upon the following named parties by the method indicated below , and addressed to the
following:
Donald L. Howell
, "
Cecelia A. Gassner
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho 83720-0074
don.howell (Q) puc.idaho.qov
Hand Delivered
S. Mail
Overnight Mail
FAX [phone]~E-mail
Randall C. Budge
Eric L. Olsen
Racine, Olson , Nye, Budge & Bailey
O. Box 1391; 201 E. Center
Pocatello, ID 83204-1391
rcb (Q) racinelaw.net
elo (Q) racinelaw.net
Hand Delivered
- U.S. Mail-L Overnight Mail
FAX [phone]~E-mail
Anthony Yankel
29814 Lake Road
Bay Village, OH 44140
yankel (Q) attbLnet
Hand Delivered
S. Mail-L Overnight Mail
FAX [phone]~E-mail
Peter J. Richardson
Richardson & O'Leary
515 N. 27th Street
O. Box 7218
Boise,. ID 83702
peter(gl richardsonandolearY.com
Hand Delivered
-L U.S. Mail
Overnight Mail
FAX [phone]~E-mail
Dr. Don Reading
Ben Johnson Associates
6070 Hill Road
Boise, ID 83703
dreadinq (gI mindsprinq,com
Hand Delivered
-L U.S. Mail
Overnight Mail
FAX [phone]
E-mail
Lawrence A. Gollomp
Assistant General Counsel
United States Dept. of Energy
1000 Independence Avenue, SW
Washington , D.C. 20585
Lawrence.Gollomp(gl hq.doe.qov
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S. Mail-L Overnight Mail
FAX [phone]
E-mail
CERTIFICATE OF SERVICE, Page
Dennis Goins
Potomac Management Group
5801 Westchester Street
O. Box 30225
Alexandria , VA 22310-1149
dqoinsPMG (gI aol.com
Hand Delivered
S. Mail-L Overnight Mail
FAX [phone]
E-mail
Conley E. Ward
Givens, Pursley LLP
601 W. Bannock Street
O. Box 2720
Boise, ID 83701-2720
cew(glqivenspursley.com
Hand Delivered
x U.S. Mail
Overnight Mail
FAX [phone]~E-mail
Dennis E. Peseau, Ph.
Utility Resources, Inc.
1500 Liberty Street S., Suite 250
Salem , OR 97302
dpeseau (Q) excite.com
Hand Delivered
- U.S. Mail-L Overnight Mail
FAX [phone]
E-mail
William M. Eddie
Advocates for the West
1320 W. Franklin Street
O. Box 1612
Boise, ID 83701
beddie (gI advocateswestorq
Hand Delivered
x U.S. Mail
Overnight Mail
FAX [phone]~E-mail
Ken Miller
NW Energy Coalition
5400 W. Franklin , Suite G
Boise, ID 83705
kenmiller1 (gIcableone.net
Hand Delivered
-L U.S. Mail
Overnight Mail
FAX
E-mail
Michael L. Kurtz
Kurt J. Boehm
Boehm , Kurtz & Lowry
36 East Seventh Street, Suite 1510
Cincinnati, Ohio 45202
mkurtz (gI bkllawfirm.com
kboehm (gI bkllawfirm.com
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FAX [phone]
E-mail
Neal Townsend
Energy Strategies
215 S. State Street, Suite 200
Salt Lake City, UT 84111
ntownsend (gI enerqystratcom
Hand Delivered
S. Mail-L Overnight Mail
E-mail
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BARTON L. KLINE
CERTIFICATE OF SERVICE, Page 2
TT CHMENT
BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB #5734
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
BKline(Q).idahopower.com
MMoen(Q).idahopower.com
Attorneys for Idaho Power Company
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Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS BASE
RATES AND CHARGES FOR ELECTRIC
SERVICE IN THE STATE OF IDAHO
CASE NO. IPC-05-
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'), the Idaho Irrigation Pumpers Association , Inc. ("IIPA"), the
Industrial Customers of Idaho Power ("ICIP"), Micron Technology, Inc. ("Micron ), the
United States Department of Energy ("DOE"), the Northwest Energy Coalition ("NWEC"
and the Kroger Company ("Kroger ). These entities are collectively referred to as the
Parties.
STIPULATION , Page
I. 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 issue~ identified in this matter. The Parties, therefore
recommend that the Commission, in accordance with RP 274 , approve the Stipulation
and all of its terms and conditions without material change or condition.
II. BACKGROUND
On October 28 , 2005, Idaho Power filed an Application in this case
seeking authority to increase the Company s rates an average of 7.8%. If approved
the Company s revenues would increase $43,948 189 annually. Idaho Power proposed
that the rate increase be spread equally among all major customer groups and special
contract customers. The Company requested that new rates become effective on
June 1 , 2006.
Petitions to intervene in this proceeding were filed by liP A, ICIP
Micron , DOE, NWEC and Kroger. By various orders, the Commission granted these
interventions. IPUC Order Nos. 29919 , 29926 , 29931 , 29935.
On January 5, 2006 , the Parties attended an informal scheduling
conference to devise a proposed schedule for holding hearings and completing
discovery in this proceeding. During the informal conference , the Parties agreed to
engage in settlement discussions in accordance with RP 272 with a view toward
STIPULATION , Page 2
resolving the issues in this case. The Parties conducted settlement discussions on
February 7 2006 and February 14 , 2006.
Based upon the settlement discussions among the Parties, as a
compromise of the positions in this case , and for other consideration as set forth below
the Parties agree to the following terms:
III. TERMS OF THE STIPULATION
Revenue Requirement.The Parties agree that Idaho Power shall be
allowed to implement revised tariff schedules designed to recover $18.1 million in
additional annual revenue from Idaho jurisdictional base rates. In determining the $18.
million additional revenue requirement, the Parties agreed on certain revenue
requirement inputs to be explicitly identified in this Stipulation. These are as follows:
(a)Net Power Supply Costs . The system net power supply cost
used to determine the $18.1 million of additional revenue requirement increase is
$45 279 800. This $45 279 800 total amount is determined by including power supply
benefits associated with the Company s cloud seeding program in the amount of $1.
million from the total net power supply costs of $47 179 800 , reflecting the inclusion of the
Bennett Mountain Power Plant (Case No. IPC-05-10).
(b)In determining the agreed-upon revenue requirement, the
Parties agreed to use system 2005 loads in the amount of 14 819 152 MWh as proposed
by the Company in this case.
(c)In determining the agreed-upon revenue requirement, the
Parties agreed to utilize an overall rate of return of 8.1 %.
STIPULATION , Page 3
(d)The Parties discussed the need for further analysis and
possible future adjustments to a number of power supply related matters. These include
but are not limited to , power supply cost modeling methodology and the power cost
adjustment ("PCA") load growth rate. The Parties agree that the PCA load growth rate
issue will be addressed contemporaneously with the Company s upcoming PCA
proceeding, which will be filed on or about April 15 , 2006. Given the expedited nature of
the PCA proceeding, the Parties recognize that conclusion of the PCA load growth rate
issue may not occur before June 1 , 2006. The Parties further agree that the power
supply methodology issue will be addressed in the Company s next general rate case.
(e)The Parties agree conceptually that it is reasonable to include
an employee pay-at-risk or employee incentive component in test-year revenue
requirements so long as such incentive component is based on goals that benefit
customers and the amounts payable for achieving the goals are limited to reasonable
target" or medium goals. Senior management pay-at-risk is appropriately excluded from
the test year revenue requirement.
Rate Spread . The Parties agree that the above-described $18.
million revenue requirement should be recovered by implementing tariffs which increase
the rates for each customer class (except Dusk-to-Dawn Lighting and Unmetered
Service) and special contracts by a uniform percentage amount of approximately 3.2%,
In agreeing to the 3.2% uniform percentage increase, the Parties also agree that the
underlying class cost-of-service models as filed by the Company in this proceeding will
not constitute precedent in a subsequent general rate case. Moreover, a Party's failure to
specifically object to any portion of the class cost-of-service analysis presented by the
STIPULATION , Page 4
Company in this case will not constitute a waiver of a Party's right to challenge future class
cost-of-service models and proposals presented by the Company in future general rate
case proceedings.
Rate Desiqn. Except for those items specifically identified in sub-
sections (a) and (b) below, the Parties agree that the rate design proposals and the rate
design relationships presented by the Company in its direct case should be implemented
as presented by the Company. The specific, agreed-upon exceptions are as follows:
(a)The service charge for Schedule 1 and Schedule 7 will be $4.
per month. Idaho Power agrees not to file for an increase in the $4.00 service charge for at
least two years from the date of the Commission s final Order in this matter if the true-up
mechanism proposed by the Company in Case No. I PC-04-15 is accepted by the
Commission.
(b)Idaho Power will increase Schedule 9 non-energy rate
components as proposed in its original application and increase the energy related rate
components as necessary to achieve an overall revenue requirement increase of 3.2% for
the class.
Miscellaneous Provisions. The Parties agree that implementation of
the $10 Continuous Service Reversion Charge as described in the testimony of Company
Witness Tatum will be delayed for a period of sixty (60) days following the issuance of the
Commission s final Order in this proceeding to allow landlords and property managers to
be notified of the change prior to its actual implementation.
10.Idaho Power agrees that no later than November 1 , 2006 , it will
convene a working group to review the current operation and results of the Irrigation
STIPULATION , Page 5
Peak Rewards Program ("Program ), including consideration of suggested
modifications to improve the Program. Issues to be considered would include the
amount of incentive payments and the size of irrigation facilities eligible for participation
in the Program. The working group s participants would include representatives of the
IIPA. It is Idaho Power s intention that any proposed modifications to the Program
developed by the working group would be presented to the Energy Efficiency Advisory
Group and the Commission in time for such modifications to be in effect for the 2007
irrigation season.
11.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.
12.The Parties 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.
STIPULATION , Page 6
Notwithstanding this reservation of rights , the Parties to this Stipulation agree that they
will continue to support the Commission s adoption of the terms of this Stipulation.
13.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. In such case, no Party shall be bound or prejudiced by the terms
of this Stipulation, and each Party shall be entitled to seek reconsideration of the
Commission s order, file testimony as it chooses , cross-examine witnesses, and do all
other things necessary to put on such case as it deems appropriate. In such case , the
Parties immediately will request the prompt reconvening of a prehearing conference for
purposes of establishing a procedural schedule for the completion of the case. The
Parties agree to cooperate in development of a schedule that concludes the proceeding
on the earliest possible date , taking into account the needs of the Parties in
participating in hearings and preparing briefs.
14.The Parties agree that this Stipulation is in the public interest and
that all of its terms and conditions are fair, just and reasonable.
15.No Party shall be bound , benefited or prejudiced by any position
asserted in the negotiation of this Stipulation, except to the extent expressly stated
herein , nor shall this Stipulation be construed as a waiver of the rights of any Party
unless such rights are expressly waived herein. Execution of this Stipulation shall not
be deemed to constitute an acknowledgment by any Party of the validity or invalidity of
any particular method, theory or principle of regulation or cost recovery. No Party shall
STIPULATION , Page 7
be deemed to have agreed that any method, theory or principle of regulation or cost
recovery employed in arriving at this Stipulation is appropriate for resolving any issues
in any other proceeding in the future. No findings of fact or conclusions of law other
than those stated herein shall be deemed to be implicit in this Stipulation.
16.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,
17.This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
STIPULATION , Page 8
~1~'
DATED this day of February 2006.
Idaho Power Company
-W:Jte~arton L. Kline
Attorney for Idaho Power Company
Idaho Irrigation Pumpers Association , Inc.
Randall C. Budge
Attorney for Idaho Irrigation Pumpers
Association , Inc.
Micron Technology, Inc.
QJ.v
Conley Ward
Attorney or Micron Technology, Inc.
Northwest Energy Coalition
William M. Eddie
Attorney for NW Energy Coalition
STIPULATION , Page 9
Idaho Public Utilities Commission Staff
Industrial Customers of Idaho Power
By ;h~a~~
Peter J. Rlc ardson
Attorney for Industrial Customers
of Idaho Power
S. Department of Energy
Lawrence A. Gollomp
Attorney for U.S. Department of
Energy
The Kroger Company
Michael L. Kurtz
Attorney for the Kroger Company
DATED this day of February 2006.
Idaho Power Company
Barton L. Kline
Attorney for Idaho Power Company
Idaho Irrigation Pumpers Association, Inc.
~ l!.,2-21-
Randall C. Budge
Attorney for Idaho Irrigation Pumpers
Association , Inc.
Micron Technology, Inc.
Conley E. Ward
Attorney for Micron Technology, Inc.
Northwest Energy Coalition
William M. Eddie
Attorney for NW Energy Coalition
STIPULATION , Page 9
Idaho Public Utilities Commission Staff
Donald L. Howell, II
Attorney for IPUC Staff
Industrial Customers of Idaho Power
Peter J. Richardson
Attorney for Industrial Customers
of Idaho Power
S. Department of Energy
Lawrence A. Gollomp
Attorney for U.S. Department of
Energy
The Kroger Company
Michael L. Kurtz
Attorney for the Kroger Company
FEB-23-2006 THU 05: 52 PM BOEHM, KURTZ & LOWRY FAX NO. 513 421 2'(64 P. u~
DATED this Z2 day of February 2006.
Idaho Power Company
Barton L. Kline
Attorney for Idaho Power Company
Idaho Irrigation Pumpers Association, Inc.
Randall C. Budge
Attorney for Idaho Irrigation Pumpers
Association, Inc.
Micron Technology, Inc.
Conley E. Ward
Attorney for Micron Technology, Inc.
Northwest Energy Coalition
William M. Eddie
Attorney for NW Energy Coalition
STIPULATION, Page 9
Idaho Public Utilities Commission Staff
Donald L. Howell, II
Attorney for IPUC Staff
Industrial Customers of Idaho Power
Peter J.. Richardson
Attorney for Industrial Customers
of Idaho Power
S. Department of Energy
Lawrence A. Gollomp
Attorney for U.S. Department of
Energy
The Kroger Company
JL~
Michael L. Kurtz
Attorney for the Kroger Company
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DATED this day of February 2006.
Idaho Power Company
Barton L. Kline
Attorney for Idaho Power Company
Idaho Irrigation Pumpers Association , Inc,
Randall C. Budge
Attorney for Idaho Irrigation Pumpers
Association , Inc,
Micron Technology, Inc.
Conley E. Ward
Attorney for Micron Technology, Inc.
Northwest Energy Coalition
William M. Eddie
Attorney for NW Energy Coalition
STIPULATION, Page 9
Idaho Public Utilities Commission Staff
Donald L. Howell, II
Attorney for IPUC Staff
Industrial Customers of Idaho Power
Peter J. Richardson
Attorney for Industrial Customers
of Idaho Power~~t
~~~
~ w nee A. Gollom
Attorney for U.S, Department of
Energy
The Kroger Company
Michael L, Kurtz
Attorney for the Kroger Company