20060518notice_of_petition_order_no_30044.pdf

Office of the Secretary
Service Date
May 18 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
IDAHO POWER COMPANY FOR
MODIFICATION OF THE LOAD GROWTH
ADJUSTMENT FACTOR WITHIN THE
POWER COST ADJUSTMENT (PCA)
METHODOLOGY
CASE NO. IPC-06-
NOTICE OF PETITION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30044
On April 13 , 2006, Idaho Power Company filed a Petition to modify the "method for
determining the load growth adjustment rate, which is one of the components used to determine
Idaho Power s (annual) Power Cost Adjustment ((PCA)) rate.Petition at 1. The load growth
adjustment rate or factor is typically a reduction to power supply expenses within the PCA. The
load growth adjustment is included as a component in the PCA's true-up computations.
In Idaho Power s recent rate case settlement Stipulation, the parties agreed "that the
PCA load growth rate issue will be addressed contemporaneously with the Company s upcoming
PCA" Application. Stipulation at 'II 6(d), Case No. IPC-05-28. Consequently, Idaho Power
filed the present case in compliance with the Stipulation. On May 12, 2006, the Commission
issued Order No. 30035 adopting the rate case Stipulation.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED the Petition states the load growth adjustment "
intended to compensate for additional revenues attributable to load growth that occurs between
rate cases." Petition at '111. Idaho Power explains that the load growth adjustment rate results in
a credit during periods of load growth and results in a debit during periods of load decline. Id.
YOU ARE FURTHER NOTIFIED that Idaho Power states the currently approved
load adjustment rate "uses predicted marginal costs of serving load rather than embedded costs
of serving load.Id. at 'II 3 (emphasis added). Idaho Power asserts that using "predicted
marginal costs" is unfair.Idaho Power argues that it is more appropriate to use current
embedded PCA-related costs of serving load to determine the load growth adjustment rate. Id.
The current load growth adjustment rate approved by the Commission is $16.84 per MWh.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30044
Using the embedded PCA-related costs of serving load, Idaho Power calculates that the load
growth rate should be $6.81 per MWh. Id. at'll 4.
YOU ARE FURTHER NOTIFIED that Idaho Power maintains that using the current
marginal costs methodology to calculate the load growth adjustment "credits customers with the
higher, marginal PCA-related cost of serving new customer loads, even though Idaho Power is
only allowed to recover the lower, embedded PCA-related costs of serving new customer loads.
Id. The Company asserts this mismatch penalizes Idaho Power when new customers are added.
Consequently, Idaho Power claims it "is not afforded a reasonable opportunity to recover its
PCA-related expenses associated with serving new customer loads in a timely manner.Id.
YOU ARE FURTHER NOTIFIED that Idaho Power has prefiled testimony of its
witness, Gregory Said. The Company did not propose a particular process for this case but it
stands ready for immediate consideration of its Petition.
YOU ARE FURTHER NOTIFIED that the Petition together with the supporting
testimony have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices. The Petition and its supporting testimony are
also available on the Commission s Website at www.puc.idaho.gov under the "File Room" icon
and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Idaho Power s representatives in this matter:
Barton L. Kline
Monica Moen
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: bklinelw,idahopower.com
mmoen~idahopower.com
Gregory W. Said
Director, Revenue Requirement
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: gsaid~idahopower.com
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission s Rules of Procedure
72 and 73 , IDAPA 31.01.01.072 and -073. Persons intending to participate at the hearing must
file a Petition to Intervene no later than fourteen (14) days from the service date of this
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30044
Order. Persons desiring to present their views without parties' rights of participation and cross-
examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that persons seeking intervenor status shall also
provide the Commission Secretary with their electronic mail address to facilitate further
communications in this matter.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding. Depending on the number of
intervenors, the Commission may direct that pleadings and testimony be filed electronically with
the other parties.
YOU ARE FURTHER NOTIFIED that after the Notice of Parties is issued, the
Commission anticipates that the parties will informally convene to devise a recommended
schedule to process this case. The Commission intends to schedule this matter for hearing. Once
the schedule is developed, the Commission will subsequently issue a Notice of Hearing.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code 99 61-307, 61-336, 61-503 , and 61-622. The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than fourteen (14) days from the service date of this Order. Parties
petitioning for intervention shall also supply their e-mail addresses to the Commission Secretary.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30044
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this gr/l.
day of May 2006.
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
~~NER
ATTEST:
bls/O:IPC-O6-08 dh
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30044