20100406notice_of_application.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Apri16 2010
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
DUE TO THE INCLUSION OF ADVANCED
METERING INFRASTRUCTURE (AMI)
INVESTMENT IN RATE BASE
CASE NO. IPC-IO-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on March 15, 2010, Idaho Power Company
(Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission
(Commission) requesting authority to implement a 0.41 % uniform increase in rates due to the
inclusion of Advanced Metering Infrastructure (AMI) investment in rate base. The Company
filing is accompanied by workpapers and supporting testimony.
BACKGROUND
In Order No. 30726 issued on February 12, 2009, in Case No. IPC-08-, the
Company was granted a Certificate of Public Convenience and Necessity (Certificate) to install
AMI technology throughout its service territory, to accelerate the depreciation of its existing
metering infrastructure, and to include the corresponding Operations and Maintenance (O&M)
benefits as they occur.In Order No. 30829, in Case No. IPC-09-, the Commission
authorized the Company to recover its investment in AMI based on a 2009 test year.
APPLI CA TI 0 N
The proposed increase in rates requested by Idaho Power is the result of including the
Company s investment in AMI for a 2010 test year into the Company s rate base/revenue
requirement. In its calculations, the Company is reflecting the new investment in AMI and the
depreciated metering plant replaced by AMI. The Company also reflects the expenses of
accelerated depreciation of the pre-existing metering plant, the reduced O&M expenses due to
operating efficiencies that are gained from the AMI deployment, and incremental tax impacts.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
The Company investment associated with the installation of AMI grew from
$28 589 837 at year-end 2009 to $47 348 827 by December 31 2010. The 13-month average
AMI plant in service for the test year is $38 615 913. The test year indicates a revenue
deficiency of $2 358 085 for the Idaho jurisdiction.
Given the increased challenges associated with raising capital in the financial markets
during the present financial crisis, as well as the Company s competing needs for capital
investment in other system resources, the Company contends the proposed test year and recovery
of the resulting revenue requirement is a necessary component to allow it to continue moving
forward with its three-year AMI. deployment. The Company represents that its proposal is
consistent with its request for a Certificate "to rate base the prudent capital costs of deploying
AMI as it is placed in service " (Case No. IPC-08-, Application, p. II), and the
Commission s prior authorization of 2009 AMI investment recovery ($10 497 354 or 1.83%
uniform increase in rates) in Order No. 30829, Case No. IPC-09-07.
Idaho Power proposes a uniform percentage increase of 0.41 % to base revenues for
tariff Schedules I , 3 , 4, and 5 (Residential Customers), Schedule 7 (Small General Service),
Schedule 9 (Large General Service - Secondary), Schedule 24 (Agricultural Irrigation Service -
Secondary), Schedule 41 (Street Lighting Service - Metered), and Schedule 42 (Control Traffic
Signal Lighting Service) effective June I , 20 I 0, for service provided on and after that date.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-IO-06. 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, i., by written
submission rather than by hearing. Reference Commission Rules of Procedure, IDAP A
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 Case
No. IPC-IO-06 is Thursday, May 6, 2010.
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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
decide the matter and issue its Order based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPC-
IO-06 should be mailed to the Commission and the Company at the addresses reflected below.
Commission Secretary Donovan E. Walker
Idaho Public Utilities Commission Lisa D. NordstromPO Box 83720 Idaho Power Company
Boise, ID 83720-0074 PO Box 70
Boise, ID 83707-0070
E-mail: dwalker~idahopower.com
Inordstrom ~i dahopower. com
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918 Courtney Waites
Greg Said
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: cwaites~idahopower.com
gsaid~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 in Case No. IPC-IO-
may be viewed at www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or can
be viewed during regular business hours at the Idaho Public Utilities Commission, 472 W.
Washington Street, Boise, Idaho and at the principal business of Idaho Power Company, 1221
West Idaho Street, Boise, Idaho.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
DATED at Boise, Idaho this Sf'"-day of April 20 I
~- ~/ &~~
. KEM TON, PRESID NT
D~1L
A.RSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, CO ISSIONER
ATTEST:
€it; OfilfoJe D. Jewell
mISSIOn Secretary
hIs/a: IPC-I 0-06 sw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE