20120214notice_of_modified_procedure_order_no_32454.pdf

Office of the Secretary
Service Date
February 14,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-I 1-19
AUTHORITY TO CONVERT SCHEDULE 54 )
-FIXED COST ADJUSTMENT -FROM A )NOTICE OF
PILOT SCHEDULE TO AN ONGOING )MODIFIED PROCEDURE
PERMANENT SCHEDULE )
______________________________
)ORDER NO.32454
YOU ARE HEREBY NOTIFIED that on October 19,2011,Idaho Power Company
filed an Application requesting a Commission Order authorizing the Company to convert its
current Schedule 54 —Fixed Cost Adjustment (FCA)—from a pilot program to a permanent
schedule.The Commission in Order No.30267,Case No.IPC-E-04-15,approved
implementation of a three-year FCA pilot program applicable to residential and small general
service customers.In October 2009,the Company filed an application seeking to convert the
pilot program to a permanent program.The Commission denied the Company’s request and
instead extended the pilot program for an additional two-year period.Order No.31063.The
FCA pilot program is set to expire on December 31,2011.
YOU ARE FURTHER NOTIFIED that the FCA purports to remove recovery of a
portion of the Company’s fixed costs from its energy sales.The Application states that the
purpose of the 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.5.The Company contends the first four years of the pilot program
indicate that the FCA mechanism is working as intended and operates to mitigate the adverse
affects of energy efficiency by ensuring that the fixed costs authorized by the Commission for
recovery are being recovered through the FCA mechanism.Id.The Company proposes to make
the program permanent for the residential and small general service customer classes,and
proposes to true-up the FCA by combining the deferral balances of each class and implementing
rates for each class that represent a uniform percent change.Idaho Power asserts that by
combining the residential and small general service FCA balances and determining the rate
adders based on an equal FCA rate adjustment for each class,the overall rate impact to
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32454 1
customers in these classes is more representative of the total amount of the required fixed-cost
recovery for each class.Application,pp.5-6.
YOU ARE FURTHER NOTIFIED that on November 2,2011,the Commission
issued a Notice of Application and Notice of Intervention Deadline.Petitions to Intervene,all
subsequently approved,were filed by Idaho Conservation League,Micron Technology,Inc.,and
Northwest Energy Coalition.The parties held a scheduling meeting on January 27,2012,and
subsequently recommended the Commission process the Company’s Application by Modified
Procedure.The parties proposed a comment deadline of March 1,2012,for initial comments,
and a reply comment period through March 15,2012.
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 3 1.01.01.201-204.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 in opposition with the Commission no
later than March 1,2012.The comment must contain a statement of reasons supporting the
comment.
YOU ARE FURTHER NOTIFIED that 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:
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32454 2
Commission Secretary Jason B.Williams
Idaho Public Utilities Commission Lisa D.Nordstrom
P0 Box 83720 Idaho Power Company
Boise,Idaho 83 720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:[e-mail]
[e-mail]
472 W.Washington Street
Boise,ID 83702-5918 Michael J.Youngblood
Zachary L.Harris
Idaho Power Company
P0 Box 70
Boise,ID 83 707-0070
E-mail:[e-mail]
[e-mail]
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 the parties may file reply comments (if
necessary)no later than March 15,2012.
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.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
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 are also available on the Commission’s web site at wwrv.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 specifically
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32454 3
Idaho Code §61-501.61-502.and 61-503.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 ci’seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than March 1,2012.
IT IS FURTHER ORDERED that reply comments (if necessary)may be filed no later
than March 15,2012.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /,
day of February 2012.
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MACK A.REDFORD.COMMISSIONER
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MARSHA H.SMITH,COMMISSIONER
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Jan D.Jewell
Cmmission Secretary
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NOTICE OF MODIFIED PROCEDURE
ORDER NO.32454 4