20090325notice_of_application_order_no_30757.pdf

Office of the Secretary
Service Date
March 25 , 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT FIXED-
COST ADJUSTMENT (FCA) RATES FOR
ELECTRIC SERVICE FROM JUNE 1, 2009
THROUGH MAY 31, 2010.
CASE NO. IPC-09-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30757
On March 13 2009, Idaho Power Company filed an Application requesting authority
to implement fixed-cost adjustment (FCA) rates for electric service from June 1 , 2009 through
May 31 , 2010. In Case No. IPC-04-, Order No. 30267 issued March 12, 2007, the
Commission approved a stipulation to implement a three-year FCA pilot program for residential
and small general service customers. The Company is nearing the end of the second year of the
pilot program approved by the Commission.
BACKGROUND
The FCA is a mechanism to separate Idaho Power s fixed costs from its energy sales
and establish a rate to allow the Company to recover its fixed costs separate from energy sales.
The rationale for an FCA is that traditional rate design discourages energy conservation
programs; that is, utilities that recover fixed costs through energy sales have no incentive to
reduce their sales volume by encouraging energy efficiency and demand-side management
programs.
The FCA implemented in 2007 for the pilot program works the same for residential
and small general service customers. For each class, the number of customers is multiplied by a
fixed-cost-per-customer rate that is determined through the Company s revenue requirement in a
general rate case. This produces an authorized fixed-cost recovery amount, which is then
compared to the amount of fixed costs actually recovered by the Company. The difference
between the authorized fixed-cost recovery amount and the actual amount collected by the
Company is the fixed-cost adjustment for each customer class.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30757
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power reports that the rate of growth in
the number of residential customers was more than the rate of growth in the energy sales for the
residential customer class in 2008, i.e., the average use per customer decreased. As a result, the
Company under-collected fixed costs by approximately $1.3 million for its residential class. A
surcharge to recover the under-collection would represent a 0.42% increase in residential rates.
YOU ARE FURTHER NOTIFIED that the Company reports that energy usage per
customer also decreased in the small general service class resulting in an under-collection of
approximately $1.4 million in fixed costs. A surcharge to recover the under-collection would
represent a 10.29% increase in small general service rates. However, to be consistent with the
methodology established in the first year of the FCA pilot, Case No. IPC-08-, the Company
is proposing a combined rate increase for residential and small general service customers of
82%, or 0.0529 cents per kWh. Order No. 30556.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that the FCA rates
become effective June 1 , 2009, and requests that its Application be processed by Modified
Procedure.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in this case. The Commission has preliminarily found that the public interest in this
matter may not require a hearing to consider the issues presented and that issues raised by the
Company s filing may be processed under Modified Procedure, pursuant to Commission Rules
of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to Idaho Power s Application and the use of Modified Procedure in this
case is Friday, May 8, 2009.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If comments or protests are filed within the deadline
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. IDAP A
31.01.01.204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30757
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPC-
09-06 should be mailed to the Commission and Idaho Power at the addresses reflected below.
Street Address for Express Mail:
Donovan E. Walker
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: dwalker~idahopower.com
bkline~idahopower.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5918 Scott D. Sparks
John R. Gale
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: ssparks~idahopower.com
rgale~idahopower.com
All 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 the Application and supporting testimony
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices or on the Commission s Web site 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, IDAPA 31.01.01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30757
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power for approval to
implement fixed-cost adjustment rates for electric service from June 1 , 2009 through May 31
20 lObe processed by Modified Procedure. Persons interested in submitting written comments in
this matter must do so no later than May 8 , 2009.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this cZ5f4'..
day of March 2009.
MACK A. DF RD, PRE&fDENT
OWL
MARSHA H. SMITH, COMMISSIONER
~/. ~/-~
JI MPTON, COM SSIONER
ATTEST:
~ll
Co 'mission Se retary
O:IPC-09-06 ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30757