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HomeMy WebLinkAbout20111007Lobb Direct.pdfRECË1\lEr) BEFORE THE 2Uil OCT -7 Ai; 10: 24 IDAHO PUBLIC UTILITIES COMMISSIONUTH.¡8'fH~J IN THE MATTER OF THE APPLICATION OF ) IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-11-08 AUTHORITY TO INCREASE ITS RATES ) AND CHARGES FOR ELECTRIC SERVICE )IN IDAHO. ) ) ) ) ) DIRECT TESTIMONY OF RANDY LOBB IN SUPPORT OF THE STIPULATION AND SETTLEMENT IDAHO PUBLIC UTILITIES COMMISSION OCTOBER 7,2011 1 Q.Please state your name and business address for 2 the record. 3 A.My name is Randy Lobb and my business address is 4 472 West Washington Street, Boise, Idaho. 5 Q.By whom are you employed? 6 A.I am employed by the Idaho Public Utilities 7 Commission as Utilities Division Administrator. 8 Q.What is your educational and professional 9 background? 10 A.I received a Bachelor of Science Degree in 11 Agricul tural Engineering from the Uni versi ty of Idaho in 12 1980. I then worked for the Idaho Department of Water 13 Resources from June of 1980 to November of 1987. I received 14 my Idaho license as a registered professional Civil Engineer 15 in 1985 and began work at the Idaho Public Utilities 16 Commission in December of 1987. My duties at the Commission 17 currently include case management and oversight of all 18 technical Staff assigned to Commission filings. I have 19 conducted analysis of utility rate applications, rate 20 design, proposed tariffs and customer petitions. I have 21 testified in numerous proceedings before the Commission 22 including cases dealing with rate structure, Cost of 23 Service, power supply, line extensions, regulatory policy 24 and facility acquisitions. 25 Q.What is the purpose of your testimony in this CASE NO. IPC-E-11-810/07/11 LOBB , R . (D i ) 1 STAFF 1 case? 2 A.The purpose of my testimony is to describe the 3 Stipulation (the Proposed Partial Settlement) filed in this 4 case and to explain the rationale for Staff's support. I 5 will also present Staff's proposed reduction in the Energy 6 Efficiency Tariff Rider. 7 Q.Please summarize your testimony. The Stipulation resolves most of the issues in the8A. 9 general rate case and is agreed to by all parties but one. 10 Based on Staff's audit of Idaho Power Company's results of 11 operations, evaluation of proposed proforma adjustments and 12 consideration of all issues associated with Cost of Service, 13 rate design and customer impact, Staff supports the Proposed 14 Partial Settlement resulting in an increase in base rates of 15 4.19%. Staff further proposes reducing the Energy 16 Efficiency Tariff Rider (Schedule 91) by 0.75%, thereby 17 reducing the overall net increase to 3.44%. Finally, based 18 on its review of the Company's filing and in consideration 19 of issues and concerns expressed by other parties to the 20 case in settlement negotiations, Staff believes the broad 21 Proposed Partial Settlement is in the public interest, is 22 just and reasonable and should be approved by the 23 Commission. 24 Q.How is your testimony organized? 25 A.My testimony is subdivided under the following CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 2 STAFF 1 headings: 5 Stipulation Overview Page 3 The Settlement Process page 5 Revenue Adj ustments Page 8 Cost of Service Page 11 Rate Design Page 14 Separate Dockets Page 18 The Energy Efficiency Rider Page 19 2 3 4 6 7 8 Stipulation Overview 9 Q.Please provide an overview of the Stipulation and 10 Proposed Partial Settlement. 11 A.The Stipulation provides for an annual overall 12 increase in electric base revenue of $34 million or 4.07%. 13 The increase, spread uniformly to all customer classes, is 14 actually 4.19% because the overall increase does not apply 15 to Hoku Material's first block energy. The Stipulation 16 encourages the Commission to make the new rates effective on 17 January 1, 2012. 18 The Stipulation specifies annual power supply cost 19 levels for the Power Cost Adjustment (PCA) mechanism, the 20 amortization schedule for Bennett Mountain combustor 21 inspection costs, and the amortization schedule for the 22 Light Detection and Radar Survey (LIDAR) costs. It also 23 specifies a 7.86% overall rate of return (ROR) without 24 specifying a new authorized Return on Equity (ROE). 25 Although the Stipulation comprehensively settles CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 3 STAFF 1 all revenue requirement issues in the case, it does not 2 specify revenue adjustments to the Company's case or an 3 authorized ROE. While the Stipulation uses the Company's 4 Class Cost of Service Study (COS): 1) to establish fixed 5 costs for the Fixed Cost Adjustment mechanism (FCA); 2) to 6 reset the Load Change Adjustment Rate (LCAR) for the PCA; 7 and 3) to modify rate components within individual customer 8 classes, the COS has not been used to spread the revenue 9 increase among customer classes. Rather, the Stipulation 10 uniformly spreads revenue among the classes. The 11 Stipulation is attached as Staff Exhibit No. 101. 12 Q.Does the Stipulation resolve all issues presented 13 by the Company in its original filing? 14 A.No. Several issues remain. Two issues will be 15 addressed in separate dockets: 1) Whether the FCA pilot 16 should be made permanent; and 2) Overhead amounts associated 17 with line extensions under Rule H. Three other issues are 18 not resolved and will be addressed at hearing. These three 19 unresolved issues are: 1) the level of funding for Low 20 Income Weatherization Assistance; 2) the calculation of 21 facility charges associated with industrial Schedules 9 and 22 19 customers; and 3) the appropriate level of the Energy 23 Efficiency Rider. 24 Q.How does the annual base revenue requirement 25 increase proposed in the Stipulation compare to the increase CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) STAFF 4 1 originally proposed by Idaho Power? 2 A.The Company originally proposed increasing annual 3 base electric revenue by $83 million or 9.9%. The 4 Stipulation would increase annual base electric revenue by 5 $34 million or approximately 41% of the original request. 6 The Settlement Process 7 Q.Would you please describe the process leading to 8 the Stipulation? 9 A.Yes. The Company filed its rate application with 10 the Commission on June 1, 2011 and Staff immediately began 11 its review. The Commission set a July 1, 2011 intervention 12 deadline. Parties ultimately approved for intervention 13 included: The Community Action Partnership Association of 14 Idaho (CAPAI), the u. S. Department of Energy (DOE), the 15 Industrial Customers of Idaho Power (ICIP), the Idaho 16 Irrigation Pumpers Association (IIPA), Kroger Company, 17 Micron, the Northwest Energy Coalition (NWEC), the Idaho 18 Conservation League (ICL), the Snake River Alliance (SRA) 19 and Hoku Materials. 20 Once parties to the case were determined, they met 21 to establish a procedural schedule that included production 22 request deadlines, direct and rebuttal testimony prefile 23 dates, hearing dates and two dates for settlement 24 negotiations. The settlement conferences were held on 25 August 31 and September 8, 2011 in the Commission hearing CASE NO. IPC-E-11-810/07/11 LOBB , R . (D i ) 5 STAFF 1 room. All parties participated in both conferences. 2 Settlement discussions focused primarily on 3 revenue requirement with specific discussion regarding ROE, 4 Company salaries, Power Supply Costs and amortization of a 5 variety of test year expenses. Other topics discussed 6 included the FCA pilot program, Cost of Service, low income 7 weatherization, facilities charges, line extension 8 overheads, rate design and the appropriate level of the 9 Energy Efficiency Rider. 10 The parties stated their positions on the various 11 revenue requirement issues and presented proposals on all of 12 the other topics. There was frank and thorough discussion 13 of all issues. Tentative agreement was reached by the end 14 of the conference on the 8th by all parties except CAPAI. 15 Q.Were there further efforts and discussions about 16 issues after September 8th? 17 A.Yes, the Energy Efficiency Rider level issue was 18 still in dispute after the September 8th conference. After 19 further discussions, the parties agreed to designate the DSM 20 Rider issue as unresolved and address it at the December 21 technical hearing. After several rounds of review, all 22 parties except CAPAI signed the Stipulation and it was 23 submitted to the Commission for approval on September 23, 24 2011. 25 Q.How did Commission Staff evaluate the Proposed CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) STAFF 6 1 Partial Settlement to determine that it was reasonable? 2 A.As in prior cases, Staff evaluated whether a 3 settlement would result in a better outcome for customers 4 than could reasonably be anticipated through litigation. In 5 this case, Cost of Service and revenue spread to the various 6 customer classes, in addition to the overall revenue 7 requirement increase, were of primary concern. Staff S evaluated the Stipulation's merits by comparing it to what 9 might be expected if all of the parties filed testimony and 10 the case proceeded to hearing. Staff believes the 11 Stipulation, arrived at through give and take of all the 12 parties, results in both a reasonable overall base rate 13 increase and equitable treatment of all customer classes. 14 Q.Doesn' t the Commission decide what the revenue 15 requirement increase should be and how the increase should 16 be allocated to each customer class? 17 A.Yes. The Commission makes the final decision but lS its decision must be based on the record presented through 19 testimony and other evidence. The parties to the case make 20 revenue requirement adjustment recommendations on the record 21 for the Commission to consider. The parties also make 22 recommendations regarding Cost of Service and how the 23 increase should be allocated to the various customer 24 classes. The potential outcome at hearing must therefore be 25 evaluated based on both the expected quality and quantity of CASE NO. IPC-E-11-S10/07/11 LOBB , R . (D i ) STAFF 7 1 party recommendations presented and on what recommendations 2 the Commission might ultimately accept. 3 Revenue Adjustments 4 Q.What type of adjustments to the Company's proposed 5 revenue requirement had Staff identified and what was the 6 dollar value of those adjustments? 7 A.Staff aggressively evaluated the Company's S proposed revenue requirement increase and proposed a variety 9 of adjustments at the settlement conferences. Two of the 10 largest adjustments identified by Staff were ROE and 11 salaries. Staff maintained that the Company's proposed ROE 12 of 10.5% was excessive and unjustified under current 13 economic conditions. Similarly, Staff maintained that 14 salary increases awarded to employees in 2011 and 2012 were 15 excessive and should not be allowed for cost recovery. The 16 Staff positions of lowering the ROE to a more reasonable 17 level in combination with lower employee salaries would, in lS our judgment, reduce the Company's revenue requirement 19 request by more than $16 million. 20 Staff also proposed various other adjustments 21 including amortization of test year expenses incurred for 22 the Bennett Mountain combustor inspection and the LIDAR 23 Survey costs; removal of Fish and Game and civic 24 organization expenses; adj ustments for FERC allocated costs, 25 smart grid investments, board of directors' compensation, CASE NO. IPC-E-11-S10/07/11 LOBB, R. (Di) STAFF S 1 P-Card expenses and revenue normalization. The combined 2 effect of other Staff-proposed adjustments may have reduced 3 revenue requirement by an additional $7. S million. 4 Q.Did Staff take a position on any other revenue 5 requirement issues? 6 A.Yes. The single largest adjustment proposed by 7 Staff was removing $23.9 million in Cogeneration and Small S Power Production (CSPP) costs from base rate recovery. The 9 identified CSPP costs were associated with contracted wind 10 projects anticipated to come on line in 2011 or 2012. 11 The Company had included this level of CSPP costs 12 to offset $23.9 million in first block revenue currently 13 generated from the Hoku service contract. Both revenue from 14 the contract and the CSPP costs are captured in the PCA as 15 power supply costs if not captured in base rates. Staff 16 agreed that Hoku revenues should be included in base rates 17 because they were actually being generated. The Company's lS intent was to hold net power supply costs in base rates at 19 levels previously approved by the Commission. However, 20 Staff did not believe it was necessary or appropriate to 21 include CSPP cost in base rates because they were projected 22 based on anticipated proj ect online dates and were not 23 actually being incurred. If the proj ects do come on line 24 and costs are incurred, they will flow through the PCA at 25 100% if they are not included in base rates. Removing the CASE NO. IPC-E-11-S10/07/11 LOBB, R . (D i) 9 STAFF 1 CSPP cost offset to the Hoku revenue significantly decreases 2 the required base rate increase and moves recovery of the 3 CSPP costs to the PCA if and when they are actually 4 incurred. 5 Q.How confident was Staff that its adjustments could 6 be justified on the record and accepted by the Commission 7 upon hearing? 8 A.Staff was reasonably confident that at least some 9 of the proposed adjustments would be accepted by the 10 Commission at hearing. Similar ROE and employee salary 11 adjustments were favorably addressed by the Commission in 12 the recent Pacificorp general rate case (PAC-E-10-7). Staff 13 also believed that the Commission would accept the proposed 14 treatment of future CSPP costs through the PCA. However, 15 other proposed adjustments have not been addressed at 16 hearing and were less certain to be accepted by the 17 Commission. Staff was not as confident that it could 18 successfully defend the other adjustments on the record in 19 the face of rebuttal testimony provided by the Company. 20 Q.Did any of the other parties propose adjustments 21 to the Company's requested revenue requirement? 22 A.Yes. Other parties suggested adjusting ROE, 23 limiting test year proforma adjustments, modifying revenue 24 normalization and adjusting non-labor O&M. However, most of 25 these suggestions were already incorporated in Staff CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 10 STAFF 1 adj ustments, previously decided by the Commission, or in 2 Staff's view, were without sufficient support. 3 Consequently, Staff evaluated the revenue requirement 4 settlement primarily based on Staff adjustments alone. 5 Q.Why doesn' t the Stipulation specify a new ROE and 6 the other revenue requirement adjustments? 7 A.Rather than identifying a specific ROE, the 8 Stipulation specifies an overall ROR of 7.86% which combines 9 ROE, capital structure and cost of debt. Specifying a ROR 10 establishes a range of possible input parameters and 11 represents a compromise to facilitate agreement on the 12 overall revenue requirement. 13 Although the Stipulation is silent on the value of 14 many adjustments considered in arriving at the specified 15 revenue requirement increase, it does specify a few. For 16 example, the Stipulation incorporates Staff's proposed 17 amortization of Bennett Mountain Combustor Inspection costs 18 over a four-year period and a ten-year amortization of LIDAR 19 survey cost. The Stipulation also specifies the base level 20 of Net Power Supply Expenses (NPSE) for use in the PCAthat 21 includes Hoku sales revenue but excludes offsetting CSPP 22 costs. 23 Cost of Service 24 Q.Please describe the Stipulation as to customer 25 class Cost of Service and revenue spread among the classes. CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 11 STAFF 1 A.The Stipulation does not accept any specific class 2 Cost of Service methodology in spreading the revenue 3 increase to the customer classes. The parties agree that 4 the Company's class Cost of Service can be used in this case 5 for the limited purpose of establishing fixed costs for the 6 FCA mechanism, establishing an LCAR for use in the PCA and 7 for setting various rate components within individual 8 customer classes. Fixed costs in the FCA and the LCAR for 9 the PCA must be updated periodically, as are base rate power 10 supply costs, for the mechanisms to function properly. The 11 Company's proposed class Cost of Service provides a 12 reasonable basis for establishing these components. 13 Q.Why was the Company's proposed Cost of Service not 14 used to spread the revenue increase among the customer 15 classes? 16 A.Class Cost of Service has always been one of the 17 most contentious issues addressed in general rate cases. 18 Appropriate Cost of Service methodology and equitable 19 revenue spread to customer classes was also an important 20 issue in this case. Acceptance of the Company's proposed 21 class Cost of Service would have resulted in increases 22 significantly above the overall average for irrigators and 23 high load factor industrial customers while residential 24 customers would see increases below the average. The 25 proposed uniform increase for all customer classes CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 12 STAFF 1 represents a compromise that allowed the parties to achieve 2 a comprehensive revenue requirement settlement. 3 Q.Why did Staff agree to a uniform spread given the 4 results of the Company's COS? 5 A.Staff believes that some move toward Cost of 6 Service should be made based on the Company proposed Cost of 7 Service study. Therefore, in order to reach compromise on 8 rate spread, Staff evaluated the effects of moving $23.9 9 million in CSPP costs from base rate recovery to PCA 10 recovery. Staff determined that if CSPP costs are incurred 11 in 2011/2012 as anticipated by the Company, high energy 12 users such as irrigators and large industrial customers will 13 pay a larger, disproportionate share of the costs through 14 the PCA. In fact, Staff analysis showed that the spread of 15 potential CSPP cost combined with the uniform base rate 16 increase results in an overall revenue spread that generally 17 reflects the Company's proposed class Cost of Service. 18 Consequently, Staff supports the uniform base revenue spread 19 in this case. 20 Q.Is it reasonable to further delay consideration of 21 class Cost of Service methodology until the next general 22 rate case? 23 A.Yes. If reasonable allocation can occur with the 24 base rate settlement and subsequent treatment of future CSPP 25 cost through the PCA, then class Cost of Service litigation CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 13 STAFF 1 can wait until the next general rate case. 2 The reality of class Cost of Service is that it is 3 a moving target that is never fully resolved or fully 4 implemented. Nevertheless, the longer the Commission goes 5 without significant rate movement based on Cost of Service 6 the more difficult it will be to implement in the future. 7 Rate Design 8 Q.How are individual rate components proposed to be 9 changed under the Stipulation? 10 A.The Parties agreed to accept, for the purposes of 11 this case, the Company proposal to adjust rate components 12 within each class based, in part, on the Company's proposed 13 Cost of Service results. Specifically, the Stipulation 14 states that: "the signing parties agree that the existing 15 tariff rate components for all schedules should be increased 16 in a manner that is consistent with the rate design 17 originally filed by the Company in this case..." For many 18 rate components within each customer class, the Company's 19 originally-filed rate design incorporates a 5% move toward 20 Cost of Service as identified in the Company's Cost of 21 Service study. 22 Q.How does the proposed rate design impact the 23 various customer classes? 24 A.For Residential Schedule 1 customers, the customer 25 charge will increase from $4 to $5 per month. The increase CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 14 STAFF 1 in the energy rate components will depend on the season of 2 the year. Summer energy rates for each block will increase 3 by approximately 4.1%. The first and second-tier energy 4 rates in the non-summer period will increase by 5 approximately 3.1%, while the third-tier energy rate will 6 remain unchanged. 7 For Residential Schedules 3, 4 and 5, the 8 Stipulation applies the Company-proposed change in the 9 customer charge from $4 to $5 per month. The energy rate 10 for Schedule 3, Master Metered Mobile Home Parks, increases 11 by 4.13%. With respect to The Energy Watch Program (Schedule 12 4) and the Time-Of-Day (TOD) Program (Schedule 5), the 13 Stipulation accepts the Company's proposed modification from 14 three daily TOD and tiered block rates to seasonal peak and 15 off -peak rates. 16 Rate Components for Small General Service 17 (Schedule 7), Large General Service (Schedule 9), Large 18 Power Service (Schedule 19) and Agricultural Irrigation 19 Service (Schedule 24), have all been modified based in part 20 on the Cost of Service study to achieve the revenue 21 requirement allocated to each class. The individual rate 22 components proposed for each class are shown in Exhibit 23 No. 3 to the Stipulation. 24 Q.Please explain Staff's support for rate component 25 modification based on the Company's COS. CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 15 STAFF 1 A.Staff has generally supported the Company's COS 2 with respect to class revenue requirement. Staff has not 3 necessarily supported Cost of Service to adjust rate 4 components. However, in the spirit of compromise and 5 because Cost of Service can provide insight into the size 6 and relationship of the rate components within each customer 7 class, Staff agreed to the Company's rate design proposal in 8 this case. Staff additionally notes that the Company's 9 proposed Cost of Service adjustment was relatively modest 10 and was made smaller by the reduced revenue requirement 11 increase. 12 Q.Why does Staff support the increase in the 13 residential customer charge? 14 A.Staff supports the customer charge increase as 15 part of the negotiated Settlement and to recognize the 16 Company's increased investment to install sophisticated 17 automated meters and the customer information system 18 infrastructure needed for operation. The $5 customer charge 19 is also consistent with Avista's monthly charge of $5.25 and 20 Rocky Mountain Power's monthly customer charge of $5. 21 Q.Could you please explain Staff's support for the 22 proposed changes in the residential non-summer energy rates? 23 A.Yes. Staff agrees that energy production costs in 24 the non- summer period are lower than the summer period and 25 should therefore be reflected in the relative energy rates CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 16 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ~ 17 18 19 20 21 22 23 24 25 paid by customers. Staff also recognizes that customers wi th all electric homes are most severely impacted by the third block energy rates in the non-summer period. Staff believes that maintaining the third block non-summer energy rate at its current level will moderate the impact on this group of customers while continuing to provide a reasonable price signal. Staff further believes that rural Idaho Power customers with all electric homes have few options to control winter electric consumption when natural gas is not available. The proposed rate design helps reduce the cost burden on those customers with non-discretionary winter heating load. Q. What is the impact of the stipulated changes on residential and small commercial customer bills? A. A residential customer using 1000 kWh per month will see an average monthly bill increase of 4.54% from $73.33 to $76.66. A residential customer using 4000 kWh per month will see a bill increase of 2.44% from $329.09 to $337.13 per month. A small commercial customer using 1000 kWh per month will see an average monthly increase of 3.01% per month from $92.33 to $95.11. Staff Exhibit No. 102 shows how residential and small commercial monthly bills will change for different usage levels. Q. Could you please describe Staff's support for the modification and expansion of the Company's Energy Watch and CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 17 STAFF 1 Time-Of-Day Programs? 2 A.Yes. Staff fully supports expanding these 3 voluntary programs to allow customers to choose a rate plan 4 that best fits their needs. Expanding these programs also 5 better meets the Company's needs in terms of reducing load 6 on peak hours and during critical peak periods. Staff fully 7 supports the rate design that provides two, time-of-use rate 8 periods throughout the year. The rate design is easier for 9 customers to understand and better reflects the existing 10 peak, off peak, wholesale energy markets. Finally, 11 expanding the program makes better use of the Company's 12 recently installed automated meter technology. These meters 13 were designed to provide just the type of hourly data that 14 allows these pricing programs to be implemented. 15 Separa te Dockets 16 Q.The Stipulation removes two issues from 17 consideration in this case: 1) a permanent FCA mechanism, 18 and 2) changes to Rule H line extension tariff. Why were 19 separate dockets established to consider these issues? 20 A.The FCA mechanism was set up on a pilot basis 21 after more than two years of workshops and considerable 22 review by multiple parties. The pilot itself has been in 23 place for approximately 5 years. In 2010, the Commission 24 denied the Company's request to make the FCA permanent 25 citing issues and concerns raised by various parties. CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 18 STAFF 1 Consequently, Staff believes it is inappropriate to consider 2 whether the FCA should be made permanent as part of this 3 general rate case. Staff maintains that all of the issues 4 associated with the FCA should be heard in a separate docket 5 with appropriate parties focused on the merits of a 6 permanent FCA. 7 Likewise, Staff maintains that modifying the 8 Rule H line extension tariff should be considered outside a 9 general rate case. The proposed increase of overhead 10 charges is a non-recurring charge and may be properly 11 reviewed in a separate proceeding. 12 The Energy Efficiency Rider 13 Q.What is Staff's proposal with respect to the 14 Energy Efficiency Tariff Rider? 15 A.Staff proposes that the Energy Efficiency Tariff 16 Rider be reduced from the current 4.75% of billed revenues 17 to 4.0% of billed revenues for applicable schedules. This 18 reduction helps to mitigate the increase in base rates and 19 recognizes that approximately $16.5 million in annual DSM 20 expenditures have been removed from tariff rider recovery 21 and included in base rates. 22 Q.Will the Company be required to reduce its 23 expenditures for DSM programs as a result of the tariff 24 rider reduction? 25 A.No, the revenue provided to support DSM programs CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 19 STAFF 1 through a combination of base rates and the tariff rider 2 will be significantly greater than needed to support 3 existing Company DSM programs. In his testimony, Staff 4 witness English describes and breaks down the Company's 5 annual DSM expenditures, the annual revenue needed from the 6 tariff rider and the annual revenue generated from the 7 tariff rider at 4.0% of billed revenues. 8 Q.Overall, how does the stipulated base rate 9 increase and the Energy Efficiency Tariff Rider reduction 10 impact customers? 11 A.The Stipulation specifies an overall base rate 12 increase of 4.19% and, when coupled with the 0.75% reduction 13 in the Energy Efficiency Rider, results in a net rate 14 increase of 3.44%. 15 Q.Does the Staff's proposal to reduce the Energy 16 Efficiency Tariff Rider in any way represent a reduced 17 commitment to DSM and energy efficiency? 18 A.No, not at all. Staff sees the partial shift in 19 DSM cost recovery as an opportunity to increase funding for 20 DSM programs while simultaneously mitigating the impact of 21 the proposed base rate increase. This proposal results in 22 enhanced ability to provide DSM programs and a more limited 23 overall rate increase in a difficult economy. 24 Q.Does this conclude your direct testimony in this 25 proceeding? CASE NO. IPC-E-11-810/07/11 LOBB, R. (Di) 20 STAFF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A.Yes, it does. CASE NO. IPC-E-11-810/07/11 LOBB, R . (D i) 21 STAFF LISA D. NORDSTROM (lSB No. 5733) DONOVAN E. WALKER (ISB No. 5921) JASON B. WILLIAMS Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 InordstromtWidahopower.com dwalkertWidahopower.com jwilliamstWidahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR, ) CASE NO.IPC-E-11-08 AUTHORITY TO INCREASE ITS RATES ) AND CHARGES FOR ELECTRIC ) STIPULATIONSERVICE IN IDAHO. ) ) This stipulation ("Stipulation") is entered into by and among Idaho Power Company ("Idaho Power" or "Company"), the Staff of the Idaho Public Utilties Commission ("StaW), and other parties to the above referenced case as indicated by their signatures to this settlement Stipulation. The Company, Staff, and other signing parties are referred to individually as a "Signing Part or collectively referred to as the "Signing Parties.',1 I. INTRODUCTION 1. The terms and conditions of this Stipulation are set forth herein. The Signing Parties agree that this Stipulation represents a fair, just, and reasonable compromise of the 1 Although all partes to this case (including the Sta. the Company, and all interveno identied in paragraph 11.3) participated in settement discussions, CAPAI is not a Signing Part. STIPULATION - 1 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff i 0/07111 Page 1 of 53 issues in this proceeding and that this Stipulation is in the public interest. The Signing Parties maintain that the Stipulation and its acceptance by the Idaho Public Utilties Commission ("I PUC" or "Commission") represent a reasonable resolution of most issues identified in this matter. The issues that remain unresolved, as specifed below, wil be addressed either in this rate case proceeding or in separate proceedings, but wil not disturb the agreements reached in this Stipulation. Therefore, the Signing Parties recommend that the Commission, in accordance with RP 274, approve the Stipulation and all of its terms and conditions wihout material change or condition. II. BACKGROUND the Company's revenues would have increased approximately $83 milion annually. Idaho Power proposed that the rate increase be spread in varyng degrees among all major customer classes and special contract customers. The Company requested that new rates become effective July 1, 2011, with the expecttion that the Commission would suspend implementation of the Company's proposed rates for the statutory period set forth in Idaho Code § 61-622; The Commission suspended the effective date of the proposed rates for thirt (30) days plus five (5) months from July 1, 2011, in Order No. 32272, which also aligned with the terms of the stipulation approved in Case No. IPC-E-09-30 requiring that any changes to the Company's base rates would not become effective until 2012. 3. Petitions to intervene in this proceeding were filed by the Community Action Partnership Association of Idaho ("CAPAI"), Idaho Irrgation Pumpers Assciation, Inc. ("IIPA"), the Industrial Customers of Idaho Power ("ICIP"), Micron Technology, Inc. STIPULATION - 2 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 2 of 53 ("Micron"), the United States Department of Energy ("DOE"), The Kroer Co. ("Kroget'), the Idaho Conservation League, Snake River Allance, the NW Energy Coalition, and Hoku Materials, Inc. ("Hoku"). By various orders, the Commission granted these interventions. IPUC Order Nos. 32266, 32267, 32282, 32285, 32288, 32289, 32316, and 32349. 4. On July 20,2011, an informal scheduling conference was convened by Staff for the purpose of developing a schedule for holding hearings and completing discovery. All parties attended the settlement conferences on August 31, 2011, and September 8, 2011. 5. Based upon these settlement discussions, as a compromise of the positions in this case, and for other consideration as set forth below, the Signing Parties agre to the following terms: II. TERMS OF THE STIPULATION 6. Revenue Requirement. The Signing Parties agree that Idaho Power shall be allowed to implement revised tari schedules designed to recover $34 milion in additional annual revenue from Idaho jurisdictional base rates, which is a 4.07 percnt overall increase in the Company's annual Idaho jurisdictional base rate revenues. The Signing Parties further agree that the $34 milion increase represents a compromise of the revenue requirement positions in the case for the purpse of settlement and that the agreed upon amount should be approved by the Commission in its entirety without further adjustment for any factors other than those described in Section 11 ofthis Stipulation. In determining the $34 milion additional revenue requirement, the Signing Parties agree on certain revenue requirement inputs to be explicitly identified in this Stipulation. These are as follows: STIPULATION - 3 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 3 of 53 (a) Net Power Supply Expense ("NPSE"). For purpses of calculating the Power Cost Adjustment ("PCA") mechanism, the system net power supply cost used to determine the $34 million of additional revenue requirement increase is $208,100,936. This base level of NPSE includes $11,252,265 of base level demand response incntive payments that the Signing Parties agree should be tracked as part of the PCA as proposed by the Company in its original Application and includes $23,921 ,466 of retail sales revenue associated with Hoku's First Block energy sales that is created as an offset to power supply expenses in the PCA. Exhibit NO.1 attached hereto details the indivdual PCA component amounts by Federal Energy Regulatory Commission account that have been agreed upon by the Signing Parties. (b) Amortizations. The Signing Parties agree to a deferrl of certin 2011 expenses with multi-year amortizations of those deferr amounts. The Signing Parties agree to a deferral of $299,546 in expenses associated with the Bennett Mountain combustor inspection with a four-year amortization period beginning on the date that the Company's new base rates become effective. Further, the Signing Parties agree to a deferral of $436,047 in expenses associated with the Light Detection and Ranging ("LiDAR") survey with a ten-year amortization period beginning on the date that the Company's new base rates becme effective. (c) Rate of Return. The Signing Parties agree that it would be just and reasonable for the Commission to allow the Company to earn a 7.86 percent rate of return on an authorized Idaho jurisdictional rate base of $2,355,906,412. In addition, the Signing Parties agree that it would be just and reasonable for the Commission to allow the Company to earn an authorized rate of return of 7.86 percent in any Idaho Power STIPULATION - 4 Exhibit No. 101 Case No. IPC-E-1l-8 R. Lobb, Staff 10/07/11 Page 4 of 53 regulatory matter to be determined by the Commission until it is subsequently changed by Commission order. 7. Rate Spread. The Signing Parties agre that the above-escribe $34 milion revenue requirement increase should be recovered by implementing taris in conformance with the attached Exhibit No.2, which increase the rates for each customer class and special contracts customers by a uniform percentage amount of approximately 4.19 percent.2 The Signing Parties further agree that the Company's proposed cost-of-service study wil be used to determine fixed costs for purpses of the Fixed Cost Adjustment ("FCA") mechanism until the Commission approves a different cost-of-service study. The Signing Parties agree that the acceptance of the use of the Company's cost-of-service study in the context of the FCA for the purposes of settlement is not acceptance of any methodology underlying the Company's cost-of-servce study results, is not binding on the Signing Parties in future general rate case proceedings, and does not imply agreement on the merits of the methodology. 8. Rate Design. In determining the indivdual rates for each tariff schedule, the Signing Parties agree to use the 2011 Test Year customer billng determinants as proposed by the Company in this case with the exception of agreed upon adjustment in Schedule 1 residential energy components. The Signing Parties agree that the existing tariff rate components for all schedules should be increased in a manner that is consistent with the rate design originally filed by the Company in this case, including increasing the 2 The resulting uniform percntage increase amount of approximatef4.19 pent is gre than thoverall increase of 4.07 percent beuse the overall increase does not apply to First Block rates for speial contract customer Hoku Materials, Inc. STIPULATION - 5 Exhibit No. 101 Case No. IPC-E-1l-8 R. Lobb, Staff 10/07/11 Page 5 of 53 monthly Service Charge for residential Schedules 1, 4, and 5 from $4.00 to $5.00. The attached Exhibit No. 3 details the specific rates for each schedule. 9. Load Change Adjustment Rate. In determining the agreed-upon Load Change. Adjustment Rate ("LCAR") to be applied in the Company's PCA, the Signing Parties agree to use Idaho Power's filed class cost-of-service methodology to determine the generation-related Idaho jurisdictional revenue requirement that has been classifed as energy-related. The resulting LCAR of $18.16 per megawatt-hour was developed using 2011 normalized system-wide firm loads in the amount of 14,822,063 megawatt-hours as proposed by the Company in this case. Exhibit No. 4 to the Stipulation details the derivation of the agreed upon LCAR that is to become effective on the date that the Company's new base rates become effective. 10. Separate Proceedings. To faciltate further investigation and participation, the Signing Parties agree that Idaho Power will initiate separate, subsequent proceedings related to: (a) Increasing overhead amounts paid by persons or entities requesting servces under the Company's Rule H line extension tariff; and (b) Whether the FCA pilot program should be made permanent. The Signing Parties agree, however, that the. FCA case should be processed to allow a final Qrderto be issued no later than March 30, 2012. To allow for the timely processing of the FCA case, the Signing Parties request that the Commission decide at Its earliest convenience (after a 14-day response period per RP 256) whether to process the FCA case as a separate docket. The Signing Parties further agree that if the Commission approves or extends the FCA program beyond 2011, no Signing Part will object to STIPULATION - 6 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 6of53 retroactively applying the subsequently determined fixed costs per customer ("FCC") and fixed costs per energy ("FCE") inputs to January 1, 2012. 11. Unresolved Issues. The Signing Parties were not able to reach consensus on the following issues, which wil proceed to hearing under the schedule established in Order No. 32316: (a) The level of the Energy Effciency Rider; (b) Low-income Weatherization Assistance for Qualified Customer program funding; and (c) The facilty charge rate determination methodology used to develop facilties charges assessed to Schedule 19 customers and issues relating to the ownership of facilities subject to facilities charges. However, the Signing Parties agree that any revenue requirement impacts resulting from changes to the facilty charge methodology or changes in propert ownership shall be directly assigned to Schedule 19 customers in the form of a base rate increase or reduction so that no other customer classes shall be impacted by any resulting change. 12. Rate Effecive Date. The Signing Partes encourage the Commission to issue Its Order approving the agreed-upon rates contained in this Stipulation to become effecive on January 1, 2012. 13. The Signing Parties agree that this Stipulation represents a compromise of the positions of the Signing Parties in this case. As provided in RP272, other than any testimony filed in support of the approval of this Stipulation, and except to the extent necessary for a Signing Part to explain before the Commission its own statements and positions with respect to the Stipulation, all statements made and positions taken in STIPULATION.; 7 Exhibit No. 101 Case No. IPC-E-1l-8 R. Lobb, Staff 10/07/11 Page 7 of 53 negotiations relating to this Stipulation shall be confidential and will not be admissible in evidence in this or any other proceeding. 14. The Signing Parties submit this Stipulation to the Commission and recommend approval in its entirety pursuant to RP 274. The Signing Parties shall support this Stipulation before the Commission, and shall not appeal a Commission Order approving the Stipulation or an issue resolved by the Stipulation. If this Stipulation is challenged by anyone who is not a Signing Part, the Signing Parties reserve the right to file testimony, cross-examine witnesses, and put on such case as they deem appropriate to respond fully to the issues presented. including the right to raise issues that are incorporated in the settlements embodied in this Stipulation. Notwithstanding this reservation of rights, the Signing Parties agree that they wil continue to support the Commission's adoption of the terms of this Stipulation. 15. If the Commission rejects any part or all of this Stipulation, or imposes any additional material conditions on approval of this Stipulation, each Signing Part reserves the right, upon wrtten notice to the Commission and the other Signing Parties to this proceeding, within fourteen (14) days of the date of such aption by the Commission, to withdraw from this Stipulation. In such case, no Signing Part shall be bound or prejudice by the terms of this Stipulation, and each Signing Part shall be entitled to seek reconsideration of the Commission's Order, file testimony as it chooses, cross-examine witnesses, and do all other things necessary to put on such case as it deems appropriate. In such case, the Signing Parties immediately wil request the prompt reconvening of a prehearing conference for purposes of establishing a procedural schedule for the completion of the case. The Signing Parties agree to cooperate in development of a STIPULATION - 8 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10107111 Page 8 of 53 .. schedule that concludes the proceeding on the eariiest possible date, taking into accunt the nees of the Signing Parties in participating in hearings and preparing briefs. 16. The Signing Parties agree that this Stipulation is in the public interest and that , all of its terms and conditions are fair, just, and reasonable. 17. No Signing Part shall be bound, benefited, or prejudiced by any position asserted in the negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this Stipulation be construed as a waiver of rights unless such rights are expressly waived herein. Except as otherwise expressly provided for herein, execution of this Stipulation shall not be deemed to constitute an acknowledgment by any Signing Part of the validity or invalidity of any particular method, theory, or principle of regulation or cost recovery. No Signing Part shall be deemed to have agreed that any method, theory, or principle of reulation or cost recovery employed in arrving at this Stipulation is appropriate for resolving any issues in any other proceeding in the Mure. No findings of fact or conclusions of law other than those stated herein shall be deemed to be implicit in this Stipulation. 18. The obligations of the Signing Partes are subject to the Commission's approval of this Stipulation in accrdance with its terms and conditons and upon such approval being upheld on appeal, if any, by a court of competent jurisdiction. 19. This Stipulation may be executed in counterparts and each signed counterpart shall constitute an original document. /I /I /I STIPULATION - 9 Exhibit No. 101 Case No. IPC-E-1l-8 R. Lobb, Staff 10/07/11 Page 9 of 53 L" -tDATED this dO day of September 2011. Idaho Power Company By~fliHw Lisa D. NordSt Attorney for Ida 0 Power Company Idaho Irrgation Pumpers Association, Inc. By Eric L. Olsen Attorney for Idaho Irrgation Pumpers Association, Inc. Micron Technology, Inc. By Thorvald Nelson Attorney for Micron Technology, Inc. The Kroger Co. By Kurt J. Boehm Attorney for The Kroger Co. Hoku Materials, Inc. By Dean J. Miler Attorney for Hoku Materials, Inc. Snake River Allance By Ken Miler Clean Energy Program Director for Snake River Aflance STIPULATION -10 Idaho Public Utilities Commission Staff By Donald H. Howell, " Attorney for Commission Staff Industrial Customers of Idaho Power By Peter J. Richardson Attorney for Industrial Customers of Idaho Power U.S. Department of Energy By Arthur Perr Bruder Attorney for U.S. Department of Energy Idaho Conservation League By Benjamin J. Otto Attorney for Idaho Conservation League NW Energy Coalition By Nancy Hirsh Policy Director for NW Energy Coalition Exhibit No. 101 Case No. IPC-E-1l-8 R. Lobb, Staff 10/07/11 Page 10 of 53 day of September 2011. Idaho Public Utilties Commission StaffB~cÍ~ Donald H. Howell, II Attorney for Commission Staff Industrial Customers of Idaho Power DATED this Idaho Power Company By Lisa D. Nordstrom Attorney for Idaho Power Company Idaho Irrgation Pumpers Association, Inc. By Eric L. Olsen Attorney for Idaho Irrgation Pumpers Assciation, Inc. Micron Technology, Inc. By Thorvald Nelson Attorney for Micron Technology, Inc. The Kroger Co. By Kurt J. Boehm Attorney for The Kroger Co. Hoku Materials, Inc. By Dean J. Miler Attorney for Hoku Materials, Inc. Snake River Allance By Ken Miler Clean Energy Program Director for Snake River Allance STIPULATION -10 By Peter J. Richardson Attorney for Industrial Customers of Idaho Power U.S. Department of Energy By Arthur Perr Bruder Attorney for U.S. Department of Energy Idaho Conservation League By Benjamin J. Oto Attorney for Idaho Conservation League NW Energy Coalition By Nancy Hirsh Policy Director for NW Energy Coalition Exhibit No. 10 1 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 11 of 53 OATEO thI$ _ day of September2011. Idaho Power Company By. Lisa O. Nordsom Attorney for Idaho Power Company (;. sen Attorney for Idaho Irrigation Pumpers Association, Inc. Micron Technology, Inc. By Thorvld Nelsn Attrney før Micron Technolog, Inc. The Kroger Co. By Kurt J. Boehm Attofny for The Kroger co. Hoku Materials, Inc. By Dean J. Miler Attmey fur Hoku Materials, Inc. Snake RIVer Allance By Ken Miller Clean Enegy Program Dlretor for Snake River Amance STlPUl. TlN - 10 Idaho Public Utlits Commission Sta By Donald H. Howell, II Attmey for Commfsion Staf Industrial CU$tomersof Idaho Powr By Peter J. Richardson Attomeyfor IndUSril Customers of Idaho Power U.S. Departnt of Energ By Artur Perry Bruder Attrney for U.S. Department ofEnerg Idaho Conservation Leaue By Benjamin J. oto Attrney for Idaho Consatin League NW Energ Coalitio By Nancy Hirsh' . '. . policy Direcor for NW EnergyCoaliton Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 12 of 53 lJ DATED this 2! day of September 2011. Idaho Power Company By Lisa D. Nordstrom Attorney for Idaho Power Company Idaho Irrgation Pumpers Assoation, Inc. By Eric L. Olsen Attorney for Idaho Irrigation Pumpers Association, Inc. Micron Technology, Inc. By Thorvald Nelson Attorney for Micron Technology, Inc. The Kroger Co. By Kurt J. Boehm Attorney for The Kroger Co. Hoku Materials, Inc. By Dean J. Miller Attomey for Hoku Materials, Inc. Snake River Allance By Ken Miler Clean Energy Program Director for Snake River Allance STIPULATION -10 Idaho Public Utilities Commission Staff By Donald H. Howell, II Attomey for Commission Staff Industrial Customers of Idaho PowerByD.kl~ardson Attomey for Industrial Customers of Idaho Power U.S. Departent of Energy ,¿ By Arthur Perr Bruder Attorney for U.S. Department of Energy Idaho Conservation League By Benjamin J. Oto Attorney for Idaho Conservation league NW Energy Coalition By Nancy Hirsh Policy Director for NW Energy Coalition Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 13 of 53 ../ Á DATED thiS",)O -'day of September 2011. Idaho Power Company 1":;' i CA),.Bye( \ '44. IV. I" â 1 l--;f ¡(J').. Lisa D. NOrdst~m Attomey for Idaho Power Company Idaho Irrigation Pumpers Association, Inc. By Eric L. Olsen Attorney for Idaho Irrigation Pumpers Association, Inc. Micron Technology, Inc. BYP¿~~~ TR61'1e1 ~~eIB6t' ~S:"'_"'''''''''-t Attorney for Micron Technology, Inc. The Kroger Co. By Kurt J. Boehm Attorney for The Kroger Co. Hoku Materials, Inc. By Dean J. Miler Attorney for Hoku Materials, Inc. Snake River Alliance By Ken Miller Clean Energy Program Director for Snake River Allance STIPULATION - 10 Idaho Public Utilties Commission Staff By Donald H. Howell, II Attorney for Commission Staff Industrial Customers of Idaho Power By Peter J. Richardson Attorney for Industrial Customers of Idaho Power U.S. Department of Energy By Arthur Perr Bruder Attorney for U.S. Department of Energy Idaho Conservation League By Benjamin J. Otto Attorney for Idaho Conservation League NW Energy Coalition By Nancy Hirsh Policy Director for NW Energy Coalition Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 14 of 53 .' .' . 1J . . DATE th.: dad 8ebw ~011. !.iI . 1d'Po CG. . . .~~""'. .~.W . PøCøriJd ~ Pu~ Inc. ... fBY. ,iò l.~ Ql . .~ 'l'ki:lt ~1'~anc.' ,, '~çn~~ in.' )BY ."1'rvNØJ ,~MlT~~. li .Krrt?. ..' 'SY, '. Ku,J. Bo , r. " ,~lhKT,ce, , Ho ~ i,. .~. .~".Ui .A' fo Ha Ma. Ik àä ...4,1...- ' i . . '~4:?4+ ., a.~~~fo8n~ . .$~-tØ lda PU tJ.~ st . . BY J"~ H. HG,II~ to'Ocn.S Ind Cu d ld. P. ., . , 8y'',==l(~:.ofid 'P, .'. UA~d~.', " \ "". "~.£i cl~ J. ., Arb~Si " ..~'JQO.s. OØl8Ul.Øf.. ,En .,k,ah Cøn ,i.ue . , I By , ,~J,Ot . ,~.fo~~;Lea :~~=~1oNw'~1f I..-.I .,._I_"~U-""\, . . ., ' . '. . Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 15 of 53 Micro Tecnolog, Inc. By Thrvald Neln , Attmey for Micr Technolog, Inc. The Krer Co. BYU~"iJ.Bohm Attomey fo The Krer Co. Hoku Materials, Inc. By Den J. Milter Attrny for Hoku Materals, Inc. Snake River Alliance By Ken MIer Clean Energ Proram Direr for Snake Riv Alliance STPULATION -12 U.S. Departt of Energ ByArur Pen Bner At for U.S. Dertent ofEnerg Idaho Conservtion League By Benjamin J. Ot Attme for Idaho Conservtion League NW Ener Coanton By Nancy Hirs Policy Directr for NW EnerColitin ~ Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/0711 1 Page 16 of 53 / I DATE" zi __I...20i."Po~ ..NIU..s.C..,. Sl... -u¡ tr¡¡AI.. told Pø.~ ld ....... AI.Da..1n -&iLdiAlon'" fa ic ln J I., PuAn..ln..T...1n 1h~Co. ByKuJ.mAtfD li ~Co. .. _"dill. In -õïJ... At fa.. M,'1 rC.... In .. Ah ...l' BrRe a- E... DlCl_8nI'A"I_ 81lI. to 8J ... Cuof..,.. a,lI: R& At lD ir atll Ct it_~ Id Pou.s. OIcr.. Bym~ AI... U.8. .,..111.:,..er" tc eol.i '11...By~~ AI..... eo'.FUIi. Li q . NWE.eal" ~..............PoOI..........c..... Exhibit No. 101 Case No. IPC-E-1l-8 R. Lobb, Staff 10/07111 Page 17 of 53 '\/\ '1 DATED this ~ day of Septembe 2011. Idaho Pow COmpany B~.D~Wn Ã:~:;:~~ Power Company IdahO Irration Pumpe Assatn, Inc By Eric L. Olsen Attmey for ldaho Irrgatin Pumpe Msociatlon, Inc. Mk:n Teçhnolo, Inc. By . Thorvld Nelson Attrney for Micrn Technoloy, Inc. The Krr Co. I3Y Kurt.J.80ehm Attméy for The Krr Co. ~ Attrney for Hoku Materials, Inc. Snake Rier Alliance By Ken Miller Clean Energy Proram Direr for SnakeRlvr Allianc STIPULATION - 10 Idaho PubiC UtIIt COmmission Staff l3y Donald H. Holl, U Attomeyfor COmml8lon Staff Indusril Custom_ of Idaho Pøwer By Peer J. RichrdsonAttrny for Indu$lal Custrs ofldahO Por U.S. Départnt of Ene By Arhur Per Bruer Atttneyfor U.S. Departnt of Energy Idaho COnseMln League By' Benjamin J. Ot Attrney for IdahO COnsn Leaue NW EnColltn By' Nanc HirshPoli Directr forNW Ene Colitn Exhibit No. 101 Case No. IPC-E-l 1-8 R. Lobb, Staff 10/0711 1 Page 18 of 53 " , 1: ' ,DATED th ~o day ,~f September ?O.11, , I ii iii'i , 'ldahe' Powr COn'ai. .ii~ tribh . Usa D. tiør ., .'. , Ät$f.fó Ida: . Po'.COmpny Jdabo IrFat Pum¡;er ASstör.i', 100.. ( By' ' fò -L.. Q1sen .Atey -wr Idaho :1n:gstiØl PUrn~lolnc. . ~cr :reç.Q~lo.. lno,' )By , 'ThorvJdNelsri , . . ¡ Ati'fdr MlQln TechAO ifAö. J Th,~r1?. SY, , Kurt..J. Boehm " " .Atl1yfor næ ~er Co. Ho ~ri~, lr. By i Den J. 'MlIèrA1rn fo Hak Maáls, InC. ". --_._._-&h RlJí . '. , Bv ,k 'Y¡g ,KetiMir 'Qln EnR('Proia ~TfOTSnae Ri A1ai $'r1P,1''N -1'0 Idáho Public Utlit' Comisr. st By, oJ' Dold -H. Hawel, IIAttrney for'Ooml'sln Stff (ri1 êustôrs of ldah POWr. ' By'Petr J.RJar .At~forlnd,i¡aJ Çwmø ,,of ld'Por. ~.s. ;~rt~ EnefØ BX ', Aitur'Ps,I ~rtr Atlt)ftì~.fpr-o;S. Derbl1entøf,, .En IdafiCol'nleagtl , By BeajInJ.Ot ' .Att.for.Ld Oòl'n. Lea ..:~~'Nana¡Hr ' . POllåY Direor fo NW'EnøGolln'. , ( , Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 19 of 53 '. I " BEFORE THE IDAHO PUBLIC UTILITlES COMMISSION CASE NO. IPC-E..11-08 IDAHO POWER COMPANY EXHIBIT NO.1 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 20 of 53 .. ~ n t r S2 ' ~ : x or C l : : -. 0 ( ' _ . ~ 0 ' Z g : .. v O ' 0 . . '" C I ; . Z ~S ' " ~ r¡ t : n . . 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Lobb, Staff 10/07/11 Page 47 of 53 Exhibit NO.3 Case No. IPCE-11.Q settlement Stipulaton, IPC Page 22 of 24 :i ~~ ¡ l ~io 01 E N .......CD .i a. (J ('~io CD ~ i8 N gi-Sf Ö:i i:N &i..i: l!....e.~.,.,æl ('~01..CI0.... .."i II ~ i-IÔ Ñ(';!~.. ~~Æ ~M t i- a. æ .,., lD 01 ..lllsi i.~:!oÆ~.,0..cia.i il ~~vCI¡a. ;;N :i rqE c..- !ai .._ :i 0 f ì8 ~N .. ~ II i:8 io 81~g":~iñ ~e:i Æ !M ~i-.,.,CJ~~¡~'õ .!(J a:.. li - _ :i .. :i l; 'õ i~¡io.cllIl i u io "-o OllCJ ! li §:i~l1 io CI.i ¡ a:~"-Il- "i!i!01:2 B .. w &'l ..0CJ ~ !8lDrt8 ~ 01..('....IÔ~('N I Q);::i ei i: CD !i:i: Ii w a: E 1!1! 2l ~~ N ('~~ Exhibit No. 101 Case No. IPC-E- 11-8 R. Lobb, Staff 10/07111 Page 48 of 53 Exibit No. 3 case No. IPCE-11-0 Settlent Stipulation, IPC Page 23 of 24 -¡ o n t ' ~. ~ ~ Ot " V l : : -. 0 ( l _ . ;: o - Z S : 0- . . -~ ~ Z .. t : i S ~ - 0 ~ ~ " " ' (J t : ( ) - (l ' " ' 0 .+ t ' - \0 ~ o - .. I VI 0 0 W ii ~ ( ' ~ '2 i l g ; 1\ 3 z : = ~ I t 0 z ai l : " 9 I\ ! ' " C C I ~ _ . 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IPC-E-11-08 IDAHO POWER COMPANY EXHIBIT NO.4 Exhibit No. 101 Case No. IPC-E-11-8 R. Lobb, Staff 10/07/11 Page 50 of 53 ë ~ l!:iI S !¡ J )0 i cz! 04(.. =0. " lJ:I 4( §o & ILU C _ CacIVaiOu. .c :i =3=Uivl!O"i-l!0. l! Gl0.. 0¡! Jc c ..- ~ . a. ~.2 Ii= . i! i5õ j u. ~ It8 I"C .-.. .!!~ ~ di::en u. II E i"~ sII 0ac zæ I 6 en .Ul i: N ¡.S! So !~~o~ ioö enc( w= .I- Õ () ~ ~ 8 s .5 iI- a: c( CI N ~ fD ¡ f5..Ñ.... :i ~ å..ÖN ì "7ë~0.. )C )CIV-I- .. ~ ~v ~oæ~l :ii:lCDa:v.... ¡ ~ ~ :i E It::1) ~ a: ('!!Ul )C i! c( ~ ~ ~ E vi~a: ~ë~ ~ co :: )C () c( o .§ "gj.rl~i! fCD i:~w ~:: ~ ,. Iealco..al l. 8 ~Ñ ~ ~., 8,...It ~ ~~....Nt l~sju. Gl i: a: .S :& i! eiCD !~w j i: ~i:.ai: 1 & i i CD=v~j;g; .5Mj...It IV It .. 1:3 ('00 :i .. .A .. ll li .-oS ~ ~~.S! ii .a ~ Gl - i 2IV CD Gl .§ C) I~~ii - lX i-; ~ ,g ~ if.l .! ¡i~g i: i: j5i~!Ul a. tIIV Gl :: ~ ¡: "ä CD .:i l~~~s~~~ ;l§~~~~~~~~!i5!!j~llll~ ~~ e :! !! Exhibit No. 101 Case No. IPC-E-11-8 R. 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Õ ~' ~ ~' ~' ~ ~ ~' Ñ N' m' ~' ~' ~ N m ~ ~ ~ I' 00 m 0 ~ N m ~ ~ ~ I' 00 m 0 ~ N~~~~~~~~~~NNN Exhibit No. 102 Case No. IPC-E- 11-8 R. Lobb, Staff 10/07/11 Page 2 of2 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 7TH DAY OF OCTOBER 2011, SERVED THE FOREGOING DIRECT TESTIMONY OF RANDY LOBB IN SUPPORT OF THE STIPULATION AND SETTLEMENT, IN CASE NO. IPC-E-I1-08, BY E-MAILING AND MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: LISA D NORDSTROM DONOV AN E WALKER JASON B WILLIAMS IDAHO POWER COMPANY PO BOX 70 BOISE ID 83707-0070 E-MAIL: Inordstrom(fidahopower.com dwalker(fidahopower.com jwiliams(fidahopower .com PETER J RICHARDSON GREGORY MADAMS RICHARDSON & O'LEARY PO BOX 7218 BOISE ID 83702 E-MAIL: peter(frichardsonandoleary.com greg(frichardsonandolear .com ERIC L OLSEN RACINE OLSON NYE ET AL PO BOX 1391 POCATELLO ID 83204 E-MAIL: elo(fracinelaw.net ARTHUR PERRY BRUDER ATTORNEY -ADVISOR US DEPT OF ENERGY 1000 INDEPENDENCE AVE SW WASHINGTON DC 20585 E-MAIL: Arthur.bruder(fhq.doe.gov GREGORY W SAID VPREGULATORY AFFAIRS IDAHO POWER COMPANY PO BOX 70 BOISE ID 83707-0070 E-MAIL: gsaid(fidahopower.com DR DON READING 6070 HILL ROAD BOISE ID 83703 E-MAIL: dreading(fmindspring.com ANTHONY Y ANKEL 29814 LAKE ROAD BAY VILLAGE OH 44140 E-MAIL: tony(fyanel.net DWIGHT ETHERIDGE EXETER ASSOCIATES 10480 LITTLE PATUZENT PKWY STE 300 COLUMBIA MD 21044 E-MAIL: detheridge(fexeterassociates.com CERTIFICATE OF SERVICE E-MAIL ONLY: STEVE A PORTER US DEPT OF ENERGY E-MAIL: steven.porterCfhq.doe.gov KURT JBOEHM BOEHM KURTZ & LOWERY 36 E SEVENTH ST STE 1510 CINCINATI OH 45202 E-MAIL: kboehmCfbkllawfrm.com E-MAIL ONLY: RICHARD E MALMGREN SR ASST GENERAL COUNSEL MICRON TECHNOLOGY INC E-MAIL: remalmgrenCfmicron.com E-MAIL ONLY: THORV ALD A NELSON MARK A DAVIDSON FRED SCHMIDT HOLLAND & HART LLP E-MAIL: tnelsonCfhollandhar.com madavidsonCfhollandhar.com fschmidtCfhollandhart.com Inbuchanan(áhollandhart.com BENJAMIN J OTTO ID CONSERVATION LEAGUE 710N 6TH ST BOISE ID 83702 E-MAIL: bottoCfidahoconservation.org E-MAIL ONLY: JOHN R HAMMOND JR BATT FISHER PUSCH & ALDERMAN LLP E-MAIL: jrhCfbattfisher.com KEVIN HIGGINS ENERGY STRATEGIES 215 S. STATE ST SUITE 200 SALT LAKE CITY UT 84111 E-MAIL: khiggins(áenergystrat.com ELECTRONICI CDI PAPER SERVICE MARY V YORK HOLLAND & HART LLP 101 S. CAPITAL BLVD., SUITE 1400 BOISE,ID 83702 E-MAIL: myorkCfhollandhar.com BRAD MPURDY ATTORNEY AT LAW 2019 N 17TH STREET BOISE ID 83702 E-MAIL: bmpurdyCfhotmaiL.com KEN MILLER SNAKE RIVER ALLIANCE BOX 1731 BOISE ID 83701 E-MAIL: kmilerCfsnakeriverallance.org CERTIFICATE OF SERVICE NANCY HIRSH POLICY DIRECTOR NW ENERGY COALITION 811 1 ST AVE., SUITE 305 SEATTLE WA 98104 E-MAIL: nancy(fnwenergy.org SCOTT PAUL CEO HOKU MATERIALS INC ONE HOKU WAY POCATELLO ID 83204 E-MAIL: spaul(fhokucorp.com DEAN J MILLER McDEVITT & MILLER LLP PO BOX 2564 BOISE ID 83701 E-MAIL: joe(fmcdevitt-miler.com heather(fmcdevitt-miler .com ~~.V~¿ SECRETARY CERTIFICATE OF SERVICE