20070625notice_of_application_order_no_30346.pdf

Office of the Secretary
Service Date
June 25, 2007
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.
CASE NO. IPC-07-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30346
On June 8, 2007, Idaho Power Company filed an Application for authority to
increase its rates an average of 10.35%. If approved the Company s revenues would increase by
$63.9 million. The Company requested that the proposed rate increase become effective on July
, 2007.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power s Application states the overall
rate of return and return on equity established in its last general rate case (Case No. IPC-05-
28) are no longer reasonable given the Company s increased costs. Application at 4. Therefore
the Company asserts that additional revenue is necessary immediately if it is to maintain a stable
financial condition and continue to render reliable and adequate electric service to its customers.
Id.
YOU ARE FURTHER NOTIFIED that the Company s Application requests 2007 be
used as the test year and states that the test-year data used in this filing is based on 12 months of
forecasted data. Application at 5. Idaho Power requests that the Commission grant it a return on
rate baseof 8.561 % (utilizing a 11.50% return on common equity) on a $1 882 670 920 net rate
base. Id. This would result in an additional revenue requirement of $63 945 258 for the Idaho
jurisdiction, which requires an overall increase in revenue of 10.35%. Id.
YOU ARE FURTHER NOTIFIED that the Company proposes to increase rates to
each of its customer classes, based primarily upon cost of service. Idaho Power proposes to cap
the requested increase for irrigation customers and its three special contract customers (J.
SimplotCompany, the Department of Energy (INL), and Micron Technology, Inc.) at 20%.
Application at 3. The Company also proposes to cap the requested increase for small
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30346
commercial customers, industrial customers, and traffic control lighting customers at 15%. Id.
The Company s proposed increase for residential customers is 4.5% and for large commercial
customers is 13.1%. Id. The chart below shows an average charge by kilowatt-hour (kWh) and
the proposed increase for various customer groups.
CUSTOMER CURRENT PROPOSED OVERAL
GROUP AVERAGE BASE AVERAGE BASE PERCENT AGE OF
RATE RATE INCREASE
Residential 92~19~
Small Commercial 39~50~15.
Large Commercial 03~56~13.
Industrial 07~53~15.
Irrigation 60~52~20.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes to maintain its
seasonally adjusted rate design (to dampen demand during the summer months) and to maintain
the 300 kWh thresholds for residential and small commercial customers. For residential
customers the Energy Charge would be 6.4012~ per kWh during June, July, and August, and
6875~ per kWh for all other months. Id. For small commercial customers the Energy Charge
would be 8.5557~ per kWh during summer months and 7.5973~ per kWh for all other months.
Id. For large commercial customers the Company proposes to increase the Service Charge, the
Basic Charge, the summer Demand Charge, and the seasonal Energy Charges. Id. For large
commercial customers taking secondary service, no changes are proposed for the non-summer
Demand Charge. Id. For industrial customers the Company proposes to increase the Service
Charge, the Basic Charge, and the seasonal and time-of-use Demand and Energy Charges. Id.
For irrigation customers the Company proposes to increase the Service Charge and the Demand
Charge, as well as the in-season and out-of-season Energy Charges. Id.
YOU ARE FURTHER NOTIFIED that the Company also proposes to adjust its
Schedule 89 rates for energy purchases under qualifying facilities (QF) contracts. Application at
4. The Company states that a portion of the price it pays for energy purchased under several
long-term QF contracts is based on changes in fuel and other costs at the Company s Valmy
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30346
Plant. Id. Idaho Power proposes to increase Schedule 89 rates from 2.012~ per kWh to 2.727~
per kWh. Id.
YOU ARE FURTHER NOTIFIED that the Application, supporting workpapers
testimonies, and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission s Website at www.puc.idaho.gov under the
File Room" icon and then "Electric Cases.Interested persons may also view the Application
at the Company s website www.idahopower.com
charges will be kept open for public inspection.
The Company s schedule of rates and
YOU ARE FURTHER NOTIFIED that Idaho Power intrastate revenue
requirement, and every component of it, both rate base and expense, are at issue. The
Commission may grant, deny, or modify the revenue requirement requested and may find a
revenue requirement different from that proposed by any party to be just, fair, and reasonable.
IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho retail
customers, both recurring and non-recurring, including those of any special contract customers
are at issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject, or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair, and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject, or modify existing or
proposed relationships among and between customer classes or rate groupings. IDAP A
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce, or
create rate blocks or categories of rates and charges; abolish, create, or reduce components of
rates and charges; abolish, reduce, or create customer classes or rate groupings; and abolish
reduce, or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30346
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules, regulations
service, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its Order.
31.01.01.124.02.
IDAPA
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 hearing must file a
Petition to Intervene on or before July 12, 2007. Persons seeking intervenor status shall also
provide the Commission Secretary with their electronic mail addresses to facilitate future
communications in this matter.
YOU ARE FURTHER NOTIFIED that 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 on June 14, 2007, the Industrial Customers
of Idaho Power (ICIP) filed a Petition to Intervene in this matter. Given the lack of any
objection, the Commission grants intervention to ICIP in this Order.
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
interveners, 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. Once a schedule is developed, the Commission will subsequently
issue a Notice of Hearing. The Commission intends to convene public hearings in this matter.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code, and specifically Idaho Code ~~ 61-302, 61-307
61-502 61-503 61-507 61-622 and 61-623.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30346
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, 31.01.01.000 et seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the complexity of this case and other constraints on the Commission s time
the Commission finds that it cannot adequately review Idaho Power s requested rate increase
before the proposed effective date of July 8 , 2007. Pursuant to Idaho Code ~~ 61-622, and 61-
623 the Commission hereby suspends the proposed rates for a period of thirty (30) days plus five
(5) months from July 8, 2007, or until such time as the Commission enters an Order accepting,
rejecting, or modifying the request in this matter.
ORDER
IT IS HEREBY ORDERED that the proposed schedules of rates and charges
submitted by Idaho Power in this matter are suspended for a period of thirty (30) days plus five
(5) months from July 8, 2007, or until such time as the Commission enters an Order accepting,
rejecting, or modifying the request in this matter.
IT IS FURTHER ORDERED that the Industrial Customers of Idaho Power s Petition
to Intervene is granted.
IT IS FURTHER 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 July 12 2007.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30346
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :)5-r4.
day of June 2007.
~-
J~~-"
MARSHA H. SMITH, COMMISSIONER
\~~
MACK A. REDFORD, COMMISSIONER
ATTEST:
~ ~
I-,~IT'
J ~ D. Jewell
mission Secretary
O:IPC-O7-08 dw ws
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30346