20081113notice_of_application_order_no_30677.pdf

Office of the Secretary
Service Date
November 13, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMP ANY'S PETITION FOR APPROVAL
OF CHANGES TO ITS POWER COST
ADJUSTMENT (PCA) MECHANISM NOTICE OF APPLICATION
CASE NO. IPC-08-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30677
YOU ARE HEREBY NOTIFIED that on October 14 2008, Idaho Power Company
filed a Petition requesting the Commission issue an Order authorizing the Company to modify its
Power Cost Adjustment mechanism as set forth in a Settlement Stipulation filed with the
Petition. Consistent with a previous Commission Order, Idaho Power hosted workshops and
settlement discussions addressing a number of issues related to the PCA. The discussions
resulted in a settlement signed by Idaho Power, Commission Staff, Micron Technology, the
Industrial Customers of Idaho Power, the u.s. Department of Energy, and the Idaho Irrigation
Pumpers Association.
YOU ARE FURTHER NOTIFIED that the primary change proposed by the parties is
in the PCA sharing methodology that allocates non-PURP A power supply expenses between
customers and. the Company s shareholders. The Stipulation calls for a change in the current
90% (customers)/10% (shareholders) to a 95%/5% sharing arrangement. The parties note in the
Stipulation that the -!lew sharing arrangement is appropriate because of a substantial increase in
the magnitude and volatility of power supply expenses driven by market and fuel price volatility
coupled with increasing loads and development ofthe Company s risk management policy.
YOU ARE FURTHER NOTIFIED that the Stipulation also addresses the load growth
adjustment rate which is a component of the PCA formula. The LGAR rate in the initial PCA
was $16.85/MWh, and the current LGAR rate from the Company s last rate case is $31.40. The
new LGAR calculation in the Stipulation results in a new rate of $28 . 14/MWh.
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30677
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure, IDAPA 31.01.01.201-204. 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 any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application may
be mailed to the Commission and Idaho Power at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074
Street Address for Express Mail:
Barton L. Kline
Donovan E. Walker
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
Mail: bkline(0idahopower.com
dwalker(0idahopower .com
472 W. Washington Street
Boise, ID 83702-5918
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 home page 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.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30677
business hours at the Commission offices or on the Commission Website at
www.puc.idaho.gov under the "File Room" and then "Electric Cases.
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 that 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, IDAP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Petition of Idaho Power Company for approval
of changes to its Power Cost Adjustment mechanism be processed by Modified Procedure,
IDAP A 31.01.01.201-.204. Persons interested in submitting written comments in this matter
must do so within twenty-one (21) days from the service date of this Notice.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30677
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /3-f4'
day of November 2008.
~--:-
\~\A
MACK A. REDFORD, PRESIDE T
MARSHA H. SMITH, COMMISSIONER
ATTEST:
fJ ~J1le D. Jewell
Commission Secretary
bls/O:IPC-O8-19 ws
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30677