20070611Application.pdf

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IDAHO~POWER~
An IDACORP Company
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BARTON L. KLINE
Senior Attorney
June 8 , 2007
Jean D. Jewell , Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise , Idaho 83720-0074
Re:Case No. IPC-07-
General Rate Case Filing
Dear Ms. Jewell:
Please find enclosed for filing an original and nine (9) copies of the Company
Application for authority to increase its rates and charges for electric service to electric
" customers in the State of Idaho, effective July 8 2007.
Enclosed are nine (9) copies of the testimony and exhibits of LaMont Keen , William
Avera , Steven R. Keen, Lori Smith , Celeste Schwendiman, Gregory W. Said, Timothy
Tatum , Maggie Brilz and John R. Gale that are submitted in support of the General Rate
Filing, with one copy of each designated as the "Reporter s Copy." A compact disk
containing the direct testimony and exhibits of the above-named Idaho Power Company
witnesses is also enclosed.
Also enclosed are the original and three (3) copies of the tariff schedules for the
General Rate Application in Case No. IPC-07-8 that the Company proposes become
effective on July 8 2007. For the convenience of the Commission, I have also enclosed a
copy of the proposed tariff schedules in legislative format.
Three (3) copies of the Company s workpapers regarding the General Rate Filing
are also enclosed, along with copies of the Company s press release and bill stuffer.
O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
Jean D. Jewell
June 2007
Page 2
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The Company will send a copy of this filing to all parties in the Company s last
general rate case, Case No. IPC-05-28.
I would appreciate it if you would return a stamped copy of this letter for my file in
the enclosed stamped , self-addressed envelope.
Barton L. Kline
BLK:sh
Enclosures
BARTON L. KLINE ISB #1526
LISA D. NORDSTROM ISB #5733
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorney 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 RATES
AND CHARGES FOR ELECTRIC
SERVICE TO ELECTRIC CUSTOMERS
IN THE STATE OF IDAHO
) APPLICATION
) CASE NO. IPC-07-
COMES NOW Idaho Power Company (hereinafter referred to as "Idaho Power
or "Company ), and hereby applies to the Idaho Public Utilities Commission
Commission ) for an Order approving revisions to Idaho Power s schedules of rates
and charges for electric service in the State of Idaho to become effective with service
provided on and after July 8 , 2007.In support of this Application , Idaho Power
represents as follows:
Idaho Power is an Idaho Corporation whose principal place of business is 1221
West Idaho Street, Boise, Idaho 83702.
APPLICATION , Page
Idaho Power is a public utility providing electric service in Southern Idaho and
Eastern Oregon. Idaho Power is subject to the jurisdiction of this Commission , the
Oregon Public Utility Commission ("OPUC") and the Federal Energy Regulatory
Commission ("FERC"
).
In conducting its utility business, Idaho Power operates an
interconnected and integrated system.
III
Attachment 1 , included herewith and made a part hereof, is a copy of Idaho
Power s IPUC No. 28 , Tariff No.1 01 , containing the present Electric Rate Schedules
and Electric Service Regulations under which electric service is currently rendered and
charges made to Idaho Power s customers in the State of Idaho.
Attachment 2 , included herewith and made a part hereof, is a copy of Idaho
Power s proposed new Electric Rate Schedules and Electric Service Regulations , IPUC
No. 29 , Tariff No.1 01 , covering the rendering of electric service and charges to be
made to Idaho Power s customers in the State of Idaho on and after July 8 2007.
Attachment 3, included herewith and made a part hereof , shows a comparison of
revenues from the various rate schedules in Idaho Power s current IPUC No. 28, Tariff
No.1 01 , and special contract rates (Attachment 1) with the corresponding proposed
new rate schedules and proposed special contract rates (Attachment 2).
Applicant proposes to increase the rates of each of its customer classes
including its three special contract customers, by the respective overall percentage
APPLICATION , Page 2
increases shown on Attachment 3. As can be seen from Attachment 3 , Idaho Power
proposes to cap the requested increase for irrigation customers and its three special
contract customers - J. R. Simplot Company, The Department of Energy (INL), and
Micron Technology, Inc. - at 20 percent.Idaho Power also proposes to cap the
requested increase for small commercial customers, industrial customers, and traffic
control lighting customers, at 15 percent. Idaho Power proposes to increase the rates
for residential customers by 4.5 percent and for large commercial customers by 13.
percent.
For residential customers during the summer months of June , July, and August
Idaho Power proposes an Energy Charge of 6.4012q; per kilowatt-hour. For all other
months, Idaho Power proposes an Energy Charge of 6875q; per kilowatt-hour.
For small commercial customers, Idaho Power proposes an Energy Charge of
5557q; per kilowatt-hour during the summer months and 5973q; per kilowatt-hour for
all other months.
For large commercial customers , Idaho Power proposes to increase the Service
Charge, the Basic Charge , the summer Demand Charge, and the seasonal Energy
Charges. For large commercial customers taking Secondary service , no changes are
proposed for the non-summer Demand Charge.
For industrial customers , Idaho Power proposes to increase the Service Charge
Basic Charge, and the seasonal and time-of-use Demand Charges and Energy
Charges.
For irrigation customers, Idaho Power proposes to increase the Service Charge
the Demand Charge, and the in-season and out-of-season Energy Charges.
APPLICATION , Page 3
Idaho Power proposes to increase the component rates of its three special
contract customers by the overall 20 percent increase requested for each customer.
Attachment 3 sets out the above-described proposed rate changes in greater
detail.
A portion of the price Idaho Power pays for energy purchased under several
long-term OF contracts is based on changes in fuel and other costs at the Company
Valmy Plant. These changes are reflected in Schedule 89. Idaho Power proposes to
increase Schedule 89 rates from 012q; per kWh to 727q; per kWh.
This Application , including Attachments 1 , 2 and 3 , is filed with this Commission
to be kept open for public inspection as required by law, and the same fully states the
changes to be made in the schedules, regulations and contract rates now in force. The
new Electric Rate Schedules and Electric Service Regulations in Attachment 2 will
become effective as Applicant's IPUC No. 29 , Tariff No.1 01 , for service rendered on
and after July 8 , 2007, unless otherwise ordered by this Commission , and when
effective, will supersede and cancel the Electric Rate Schedules in Attachment 1 now in
effect.
VII
The overall rate of return and return on equity heretofore allowed Idaho Power
are no longer reasonable and adequate and Idaho Power has and will continue to
experience increased costs, all of which now require immediate adjustment by way of
increased revenues if Idaho Power is to maintain a stable financial condition and
continue to render reliable and adequate electric service to its customers.
APPLICATION, Page 4
VIII
In this Application Idaho Power requests that 2007 be used as the test year. The
test-year data used in this filing is based on twelve months of forecasted data. Idaho
Power also requests that the Commission grant it a return on rate base of 8.561 %
(utilizing a 11.50% return on common equity) on a $1 882 670,920 net rate base. This
would result in an additional revenue requirement of $63 945 258 for the Idaho
jurisdiction which require an overall increase in revenue of 10.35%.
Simultaneously with the filing of this Application , Idaho Power has filed its direct
case consisting of the testimony of witnesses LaMont Keen, William Avera, Steven
Keen , Lori Smith , Celeste Schwendiman , Gregory W. Said, Timothy E. Tatum , Maggie
Brilz and John R. Gale , and Exhibits 1 through 62 which more fully describe the relief
requested by the Company.
It is in the public interest that this Commission allow Idaho Power to increase its
revenues by approving the rates set out in Attachment 2 and that said rates be allowed
to go into effect as filed for electric service rendered on and after July 8, 2007 , and that
the effective date of said rates not be suspended.
This Application has been and will be brought to the attention of Idaho Power
affected customers by means of news releases to various media outlets, including the
newspapers of general circulation in the area served by Idaho Power, by bill stuffers
and in some instances, by means of personal contact with some customers. A copy of
APPLICATION , Page 5
the press release is enclosed herewith. In addition , the current Electric Rate Schedules
Electric Service Regulations, including rate schedules for the special contracts, together
with the proposed Electric Rate Schedules, Electric Service Regulations, including rate
schedules for the special contract customers, will be kept open for public inspection at
Idaho Power s offices in the State of Idaho. The above-described procedures are
deemed by Idaho Power to satisfy the Rules of Practice and Procedure of this
Commission , but Idaho Power will , in the alternative, bring this Application to the
attention of Idaho Power s affected customers through any other means directed by this
Commission.
XII
Subject execution appropriate confidentiality agreements
documentation for computer models used to prepare this filing can be made available
upon request.
XIII
Communications with reference to this Application should be sent to the
following:
Barton L. Kline
Lisa D. Nordstrom
Idaho Power Company
O. Box 70
Boise, Idaho 83707
bkline (g) idahopower.com
Inordstrom (g) idahopower.com
John R. Gale
Vice President, Regulatory Affairs
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
rqale (g) idahopower.com
WHEREFORE , Idaho Power respectfully requests that the Commission issue its
Order (1) determining a fair and reasonable return for Idaho Power, (2) confirming the
reasonableness of Idaho Power forecast of its increased costs and revenue
APPLICATION , Page 6
requirement (3) approving the new Electric Rate Schedules Electric Service
Regulations and special contract rates set out in Attachment 2 to become effective for
electric service rendered on and after July 8 , 2007, and that (4) the effective date for
Idaho Power s proposed rates not be suspended.
DATED at Boise, Idaho, this 8th day of June, 2007.
GYci~BARTON L. KLINE
Attorney for Idaho Power Company
LISA D. NORDSTROM
Attorney for Idaho Power Company
APPLICATION, Page 7
APPLICANT'S STATEMENT OF READINESS FOR HEARING
BARTON L. KLINE , one of the attorneys of record for Idaho Power, hereby states
that the Idaho Power is prepared to immediately present its case in support of the relief
requested in the Application.
(?;J;!y BARTON L. KLINE
APPLICANT'S STATEMENT OF READINESS FOR HEARING
IPC- E-07 -
THE ATTACHMENTS
TO THE APPLICATION
WERE SCANNED
SEP ARA TEL Y