20100427notice_of_application_order_no_31064.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Apri127 2010
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT POWER
COST ADJUSTMENT (PCA) RATES FOR
ELECTRIC SERVICE FROM JUNE 1 , 2010
THROUGH MAY 31 , 2011
CASE NO. IPC-10-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 31064
YOU ARE HEREBY NOTIFIED that on April 15, 2010, Idaho Power filed an
Application to implement its Power Cost Adjustment (PCA) rates effective June 1 2010 through
May 31 , 2011. The Application states that the proposed PCA computation results from a
Stipulation approved by the Commission in Order No. 30978, Case No. IPC-09-30 issued
January 13 , 2010. Currently the PCA revenue is $188 847 304, and the Company proposes to
reduce the net PCA revenue pursuant to the terms of the Stipulation previously approved by the
Commission. Accordingly, the first $40 million of PCA rate reduction is allocated evenly
between Idaho Power and its customers. The next $20 million is allocated directly to customers
resulting in a total of $40 million of direct customer rate reduction in the 2010 PCA rate. The
Company proposes to allocate $3 567 390 ofthe remaining $27 million PCA rate reduction to an
increase in the base level for net power supply expenses. This is an amount required to reach the
level of net power supply expense set by the Commission in Order No. 31042 in Case No. IPC-
I0-01. Finally, the Company allocates $17 990 992 of the PCA rate reduction to customers
and $5 million to the Company consistent with the terms ofthe Stipulation approved in Case No.
IPC-09-30.
YOU ARE FURTHER NOTIFIED that the PCA consists of three components: (1)
the projected power cost for the coming year; (2) the true-up of the power cost component where
the balance of the power cost deferral from the previous year is credited or collected, based on
the actual power cost incurred during the year; and (3) reconciliation of the previous year s true-
up component under which any over-recovered or under-collected balance of the true-up deferral
from the prior year is credited or collected. The projected power cost component includes
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31064
calculation of non- PURP A expenses as quantified in the Company s operating plan as compared
to those quantified in Case No. IPC-IO-, and PURPA-related expenses, also as quantified in
the Company s operating plan compared to those quantified in Case No. IPC-IO-O1. The
Company calculates the non-PURP A expense component of the PCA to be 0.1319 cents per
kWh, and the rate for the PURPA expenses at 0.0085 cents per kWh.
YOU ARE FURTHER NOTIFIED that Idaho Power calculates the true-up
component of the PCA to be 0.0888 cents per kWh, reflecting a true-up balance at the end of
March 2010 of $11 963 777. The third component of the PCA is the reconciliation of the
previous year s true-up. During April I , 2009 through March 31 , 20 10, the Company recovered
$11 284,407 less than was necessary to satisfy the 2009/20 10 PCA true-up. The result is a rate
of 0.0838 cents per kWh for reconciliation of the true-up component.
YOU ARE FURTHER NOTIFIED that the combination of the three PCA
components results in a new PCA rate for the 2010/2011 PCA year of 0.3130 cents per kWh.
The existing PCA rate is 1.4022 cents per kWh. The projected PCA rate will result in a decrease
in PCA revenue in the amount of$146 692 686. Application, p. 8. However, base rates increase
by $88 701 964 as a result of implementing the stipulated PCA rate reduction, which Idaho
Power allocates to permanent base rates on a uniform percentage basis to all customer classes
and special contract customers. Application, p. 6. The net result is a total rate decrease for
customers in the amount of approximately $58 million.
YOU ARE FURTHER NOTIFIED that Idaho Power included in its Application
information regarding the proposed increase in the Bridger Coal plant net power supply costs.
The Company asserts this information is provided consistent with the Commission s direction in
Order No. 31042 issued in Case No. IPC-I0-01. Idaho Power reports that the $24.8 million
proposed net power supply cost increase related to Bridger Coal is primarily due to a new coal
supply agreement with the Black Butte Mine as well as higher operating costs at Bridger Coal
Company. The Company included prefile testimony with its Application to explain the proposed
coal price adjustment.
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 31.01.01.201-204. The Commission notes that Modified Procedure and
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31064
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 in 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:
Street Address for Express Mail:
Lisa D. Nordstrom
Donovan E. Walker
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E- Mai I: Inordstrom(fYi dahopower .com
d walker((l),i daho powe r. co m
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074
472 W. Washington Street
Boise, ID 83702-5918 Scott Wright
Greg Said
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: swright(fYidahopower.com
gsaid(fYidahopower .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 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31064
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
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 by clicking on "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.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power Company to
implement its Power Cost Adjustment (PCA) rates effective June I , 20 10 through May 31 , 20 II
be processed by Modified Procedure IDAPA 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. 31064
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this r2
-t'"
day of April 2010.
~~N
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MARSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
bls/O:IPC-IO-12 ws
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31064