20121023notice_of_application_order_no_32668.pdf

Office of the Secretary
Service Date
October 23,2012
BEFORE TIlE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-1 1-19
AUTHORITY TO CONVERT SCHEDULE 54 )
-FIXED COST ADJUSTMENT -FROM A )NOTICE OF APPLICATION
PILOT SCHEDULE TO AN ONGOING )
PERMANENT SCHEDULE )NOTICE OF
)MODIFIED PROCEDURE
)
_________________________________
)ORDER NO.32668
YOU ARE HEREBY NOTIFIED that on September 28,2012,Idaho Power
Company filed a pleading requesting Commission approval of a “Specific Fixed-Cost
Adjustment Methodology.”The Commission in Order No.32505 approved the Company’s
application to make the fixed-cost adjustment (FCA)a permanent program for residential and
small general service customers.The Commission also noted,however,that the FCA as
structured is imperfect,particularly in that it “does not isolate or identify changes in cost
recovery associated solely with the Company’s energy efficiency programs.”Order No.32505,
p.6.The Commission directed Staff and other interested parties to continue discussing possible
adjustments to the FCA,and directed Idaho Power to file a proposal to adjust the FCA to address
the deficiency identified by the Commission.Id.The Company’s filing responds to the
Commission directive in Order No.32505 that the Company file within six months “a proposal
to adjust the FCA to address the capture of changes in load not related to energy efficiency
programs.”Order No.32505,p.9.
YOU ARE FURTHER NOTIFIED that Idaho Power in its filing recommends the
Commission approve the FCA methodology as currently in place without change because it
believes the existing mechanism is the most efficient and appropriate method to eliminate the
financial disincentives to pursuing all cost-effective DSM resources.Nonetheless,the
Company’s filing includes an adjustment to the FCA mechanism to address the capture of
significant changes in load not related to energy efficiency programs.The FCA mechanism
currently includes a 3%cap on annual increases over base revenue.The Company proposes to
apply a symmetrical cap (plus or minus 2%)on the change in annual use per customer where it
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32668 1
deviates from the historical average annual change in use per customer.Idaho Power Filing,p.
5.The Company contends that a capping mechanism based on changes in use per customer
“would adequately respond to the Commission’s previously stated desire to address the capture
of changes in load not related to energy efficiency programs without unduly compromising the
effectiveness of the FCA.”Id.The Company requests the Commission issue an Order
approving a specific FCA methodology no later than March 29,2013.
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
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
45 days of the service date of this Notice.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:
Commission Secretary Lisa D.Nordstrom
Idaho Public Utilities Commission Julia A.Hilton
P0 Box 83720 Idaho Power Company
Boise,Idaho 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:lnordstrom@,idahopower.com
[e-mail]
472 W.Washington Street
Boise,ID 83702-59 18
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
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ORDER NO.32668 2
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 14 days after the close of the initial comment period.
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 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 specifically
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 3 1.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments within 45 days of the service date
of this Notice.
IT IS FURTHER ORDERED that reply comments (if necessary)may be filed no later
than 14 days after the initial comment period.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32668 3
1ADONEbyOrderoftheIdahoPublicUtilitiesCommissionatBoise,Idaho this ),
day of October 2012.
PAUL KJELA’N PRESIDENT -
-
MACK A.REDFORD,COMMISS NER
d 4)L
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jean D.Jewell
Commission Secretary
bls/O:IPC-E-1 I-19ws5
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32668 4