20120104notice_of_application_order_no_32429.pdf

Office of the Secretary
Service Date
January 4,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-1l-24
AUTHORITY TO MODIFY ITS RULE H )
TARIFF RELATED TO THE GENERAL )NOTICE OF APPLICATION
OVERHEAD RATE.)
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.32429
On November 18,2011,Idaho Power Company filed an Application with the
Commission seeking authority to modify the general overhead rate it charges in the Company’s
Rule H tariff relating to new service attachments and distribution line installations and
alterations.The Company requests that the Application be processed by Modified Procedure and
that the proposed changes become effective on March 15,2012.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company proposes to remove the 1.5%
limitation for recovery of general overhead costs in the “Work Order Cost”definition of Rule H
in an effort to shift more of the cost burden for new service attachments and distribution line
installations or alterations from general ratepayers to customers requesting construction for these
services.Application at 3.
YOU ARE FURTHER NOTIFIED that the Company states that,by removing the
1.5%limitation for recovery of general overhead costs and allowing the Company to recover the
full construction overheads under Rule H,the Company will receive larger contributions in aid
of construction (CIAC)to offset the costs of providing these construction services.The
Company maintains that this will ultimately reduce the revenue requirement for general
ratepayers and reduce additional upward pressure on rates.Id.
YOU ARE FURTHER NOTIFIED that,specifically,the Company is proposing to
recover all actual general overhead costs related to construction under Rule H from the party
requesting the construction service.Idaho Power proposes to update this general overhead rate
each time accounting adjustments (increases or decreases)are made to balance the Company’s
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32429 1
general overhead account.These updates would be automatically reflected in the Company’s
work order processing and accounting systems.In addition,the Company proposes to file its
effective general overhead rates in all future annual Rule H updates of charges and credits to
allow the Commission the opportunity to scrutinize the effective rate charged on Rule H work
orders.
YOU ARE FURTHER NOTIFIED that the Company requests that the removal of the
general overhead cap be approved by March 1,2012,and become effective on March 15,2012,
to coincide with the effective date of the Company’s annual update of its Rule H charges and
credits.
NOTICE OF MODIFIED PROCEDURE
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 no
later than February 2,2012.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:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32429
Commission Secretary Lisa D.Nordstrom
Idaho Public Utilities Commission Jason B.Williams
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-mail:[e-mail]
[e-mail]
472 W.Washington Street
Boise,ID 83702-59 18 Scott D.Sparks
Gregory W.Said
Idaho Power Company
P0 Box 70
Boise,ID 83 707-0070
E-mail:[e-mail]
gsaididahopower.corn
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 Idaho Power may file reply comments (if
necessary)no later than February 9,2012.
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
decide the matter and issue its Order based on the written positions before it.IDAPA
31.01.01.204.
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 website at
www.puc.idaho.gov by clicking on “File Room”and then “Electric Cases.”
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32429 3
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 for authority to
modify its Rule H (line extension)tariff related to the general overhead rate be processed by
Modified Procedure.Persons interested in submitting written comments in this matter must do
so no later than February 2,2012.
IT IS FURTHER ORDERED that Idaho Power may file reply comments no later than
February 9,2012.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of January 2012.
J
MARSHA H.SMITH,COMMISSIONER
ATTEST:
JenD.Jewqji
Cbmmission Secretary
O:IPC-E-1 1-24ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32429
MACK A.REDFO]
4