20100223notice_of_modified_procedure_order_no_31010.pdf

Office of the Secretary
Service Date
February 23, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO CONVERT SCHEDULE 54
- FIXED COST ADJUSTMENT - FROM A
PILOT SCHEDULE TO AN ONGOING
PERMANENT SCHEDULE
NOTICE OF
MODIFIED PROCEDURE
CASE NO. IPC-09-
ORDER NO. 31010
YOU ARE HEREBY NOTIFIED that on October 1 2009, Idaho Power Company
filed an Application requesting an Order authorizing the Company to convert its current
Schedule 54 - Fixed Cost Adjustment (FCA) - from a pilot schedule to an ongoing, permanent
schedule. In Order No. 30267 issued March 12, 2007, the Commission approved
implementation of a three-year FCA pilot program for residential service and small general
service customers. The FCA mechanism allows Idaho Power to separate collection of fixed
costs from volumetric energy sales. A surcharge or customer credit is applied when fixed-cost
recovery per customer varies from a Commission-established base. During the first two years of
the pilot program, the FCA true-up resulted in a refund in one year and a surcharge in the next.
YOU ARE FURTHER NOTIFIED that because utilities recover a large portion of
their fixed costs through sales of kilowatt-hours of energy, the Company contends that traditional
rate design discourages utilities from reducing their sales volume caused by investing in energy
efficiency programs. Idaho Power alleges the purpose of the FCA pilot program "was to test the
FCA mechanism to determine its efficacy in removing the unintended rate design disincentive
for the Company to aggressively pursue DSM programs." Application, p. 4. Idaho Power
asserts that so far during the three-year pilot program the Company has made "strong progress in
improving and enhancing its efforts to promote energy efficiency and demand-side management
activities." Application, p. 3. The Company credits this effort "in no small part to removal of
the disincentive provided by the FCA mechanism during the term of the FCA pilot." Id.
YOU ARE FURTHER NOTIFIED that the Company s Application requests that the
FCA continue to be applicable only to residential and small general service customer classes.
During the first two years of the pilot program, the FCA balances for both classes were
combined and the same FCA rate adjustment applied to both classes. Idaho Power requests, if
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31010
the FCA is made permanent, that the FCA balances and annual rate adjustment amounts for each
class remain separate so that each class is assigned its own fixed-cost adjustment rate.
YOU ARE FURTHER NOTIFIED that on November 23 , 2009, the Commission
issued a Notice of Application and Notice of Intervention Deadline. Order No. 30948. Petitions
to Intervene were filed by Idaho Conservation League, Snake River Alliance, and Community
Action Partnership Association of Idaho, all of which were granted by the Commission. Order
Nos. 30972, 30973 , 30974.
YOU ARE FURTHER NOTIFIED that the Application together with supporting
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 and exhibits are also available on the Commission s web site at www.puc.idaho.gov
by clicking on "File Room" and then "Electric Cases.
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
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure IDAPA 31.01.01.201 through .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
thirty (30) days from the service date of this Notice. The comment must contain a statement of
reasons supporting the comment.
YOU ARE FURTHER NOTIFIED that the Company and other interested parties
have ten (10) days after the initial comment period to file reply comments.
YOU ARE FURTHER NOTIFIED that persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application
shall be mailed to the Commission and the Applicant at the addresses reflected below:
NOTICE OF MODIFIED PROCEDURE
ORDERNO.31010
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Barton L. Kline
Donovan E. Walker
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
E-mail: bkline~idahopower.com
dwalker~idahopower .com
472 W. Washington Street
Boise, ID 83702-5918 Scott D.- Sparks
John R. Gale
Idaho Power Company
PO Box 70
Boise, Idaho 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 the Applicant 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.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Application to convert its
current Schedule 54 - Fixed Cost Adjustment (FCA) - from a pilot schedule to an ongoing,
permanent schedule be processed by Modified Procedure, IDAPA 31.01.01.201-204. Persons
interested in submitting written comments in this matter must do so within thirty (30) days from
the service date of this Notice, and may file reply comments within ten (10) days after the initial
comment period.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31010
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this rJ-3 rl-
day of February 2010.
JIM . KEMPTO , P IDENT
MARSHA H. SMITH, COMMISSIONER
~ ~~'-
i\.
MACK A. RED 0
ATTEST:
Lff"" Je . Jewell
Commission Secretary
bls/O:IPC-09-28 ws2
NOTICE OF MODIFIED PROCEDURE
ORDERNO.31010