20080909notice_of_application_order_no_30637.pdf

Office of the Secretary
Service Date
September 9, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY TO INSTALL ADVANCED
METERING INFRASTRUCTURE (AMI)
TECHNOLOGY THROUGHOUT ITS SERVICE TERRITORY
CASE NO. IPC-08-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30637
On August 5 , 2008, Idaho Power Company ("Idaho Power" or "Company
submitted an Application for a Certificate of Public Convenience and Necessity ("CPCN"
pursuant to Idaho Code ~~ 61-502A, 61-503, 61-525, 61-526, RP 52, and RP 112, to install
Advanced Metering Infrastructure ("AMI") technology throughout its service territory,
authorization to accelerate the depreciation of the existing metering infrastructure, and to include
the corresponding operation and maintenance benefits as they occur. The Company requested
that its Application be processed through Modified Procedure. IDAPA 31.01.01.201-.204.
On August 19, 2008 , the Kroger Company dba Fred Meyer and Smith's Food and
Drug ("Kroger ), filed a petition for leave to intervene pursuant to IDAP A 31.01.01.071-073.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power has filed an Application for a
CPCN, pursuant to Idaho Code ~~ 61-502A, 61-503, 61-525, 61-526, RP 52, and RP 112, to
install AMI technology over a three-year period throughout its service territory.
YOU ARE FURTHER NOTIFIED that the Company will utilize a phased
implementation approach for the installation of the AMI technology, beginning with its Capital
Region (including the Boise, Kuna, Meridian, Eagle communities) in 2009, Canyon and Payette
Regions (including the Nampa, Caldwell, Payette and Ontario communities) in 2010 and its
Southern and Eastern Regions (including the Twin Falls, Hailey, Jerome, Pocatello and Salmon
communities) in 2011. Installation of the new meters will generally progress along established
meter reading routes until completion.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30637
YOU ARE FURTHER NOTIFIED that Idaho Power believes that AMI offers
numerous long-term benefits to its customers, including but not limited to the following:
Reducing operational costs associated with meter reading, improving meter reading accuracy;
eliminating the need for Idaho Power to gain access to customer property for monthly meter
reading; improving outage monitoring, theft detection, and employee safety; providing a
platform for remote connects and disconnects that would also save customer time and employee
labor; and providing billing advantages resulting in fewer estimated bills, less rebilling, flexible
billing schedules, account aggregating, and flexible rate designs.
YOU ARE FURTHER NOTIFIED that the Company has already selected vendors
and executed contracts for the purchase of the necessary hardware, software and labor for AMI
installation. The project will require multiple vendors (4) due to the lack of a single-source
vendor offering all of the requisite products and services necessary for AMI installation.
YOU ARE FURTHER NOTIFIED that Idaho Power does not request a rate increase
in conjunction with its Application; however, the Company has requested that, in the ordinary
course of events, it will be allowed to rate base the prudent capital costs of deploying AMI as it
is placed in service, to accelerate the depreciation of the existing metering infrastructure replaced
by AMI over the three-year deployment, and to include the operation and maintenance benefits
in the accounting methodology.
YOU ARE FURTHER NOTIFIED that Idaho Power estimates that the total capital
cost for the project will be approximately $70.9 million plus "certain additional costs that the
Company knows it will incur but cannot quantify with precision at this time." The capital cost
does not include the accelerated depreciation of the existing metering infrastructure or the
operation and maintenance benefits associated with the deployment of the new AMI technology.
YOU ARE FURTHER NOTIFIED that Idaho Power states that its current estimate is
subject to revision "for documented, legally-required equipment changes and material changes in
assumed escalation or growth rates not foreseen at the time of this Application." Idaho Power
commits to absorbing any "extra" capital cost above the "adjusted Commitment Estimate" and to
including in its rate base only the amount actually incurred up to this "adjusted Commitment
Estimate. "
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30637
YOU ARE FURTHER NOTIFIED that, in anticipation of project commencement in
January 2009, Idaho Power has made certain equipment and material purchases totaling $1.
million and states that it will be required to make additional purchases of approximately $5
million in September and October 2008.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that its Application be
processed through Modified Procedure. The Company filed testimony from employees John R.
Gale, Courtney Waites and Marc Heintzelman concurrent with its Application filing.
YOU ARE FURTHER NOTIFIED that on August 19, 2008, Kroger filed a Petition to
Intervene in this matter. No objections to Kroger s intervention have been filed.
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 s offices. The Application and
testimonies are also available on the Commission s Website at www.puc.idaho.gov under "File
Room" and then "Electric Cases.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-08-16. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case and that issues
raised by the Company s filing may be processed under Modified Procedure, i., by written
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAP A 31.01.01.204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30637
NOTICE OF COMMENTIPROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. IPC-08-16 is 90 days from the service date of this Order. Persons desiring a
hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning this case
should be mailed to the Commission and to the Company at the addresses reflected below.
Commission Secretary Donovan E. Walker
Idaho Public Utilities Commission Barton L. KlinePO Box 83720 Idaho Power Company
Boise, ID 83720-0074 PO Box 70
Boise, Idaho 83707
E-mail: dwalker~idahopower.com
bkline~idahopower.com
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Courtney Waites
John R. Gale
Idaho Power Company
PO Box 70
Boise, Idaho 83707
E-mail: cwaites~idahopower.com
rgale~idahopower .com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
COMMISSION FINDINGS/CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company
and its Application for a Certificate of Public Convenience and Necessity to install Advanced
Metering Infrastructure technology throughout its service territory pursuant to Idaho Code 99 61-
502A, 61-503, 61-525, 61-526, RP 52, and RP 112.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30637
The Commission has preliminarily determined that the public interest may not require
a hearing to consider the issues presented in this case, and that issues raised by the Company
filing may be processed under Modified Procedure, by written submission rather than by hearing.
IDAPA 31.01.01.201-204. In so doing, the Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
ORDER
IT IS HEREBY ORDERED that this Application will be processed under Modified
Procedure. Persons interested in submitting written comments regarding Case No. IPC-08-
or protesting the use of Modified Procedure should do so no later than 90 days from the service
date of this Order.
IT IS FURTHER ORDERED that the Petition to Intervene submitted by the Kroger
Co. dba Fred Meyer and Smith's Food and Drug, is granted.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
l-lo.
day of September 2008.
;~~T
MARSHA H. SMITH, COMMISSIONER
~LIJI MMISSIONER
ATTEST:
~A)
D. Jewell
C mmlSSlOn Secretary
O:IPC-08-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30637