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HomeMy WebLinkAbout20120216Application.pdfJASON B. WILLIAMS Corporate Counsel jwilliams(âidahopower.com February 15, 2012 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street Boise, Idaho 83702 'l I DA~POR(I An IDACORP Company Re: Case No. IPC-E-12-07 IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO DECREASE ITS BASE RATES DUE TO THE REMOVAL OF THE ACCELERATED DEPRECIATION EXPENSE ASSOCIATED WITH NON-ADVANCED METERING INFRASTRUCTURE ("AMI' METERING EQUIPMENT Dear Ms. Jewell: Enclosed for filing please find an original and seven (7) copies of Idaho Power Company's Application in the above matter. Very truly yours, '\ //úá U~: B.Williams JBW:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 JASON B. WILLIAMS (ISB No. 8718) LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5104 Facsimile: (208) 388-6936 jwilliams(Qidahopower.com Inordstrom(Qidahopower.com RECEIVED 2012 FEB 15 PH 5: II Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATIER OF THE APPLICATION OF ) IDAHO POWER COMPANY FOR ) CASE NO.IPC-E-12-07 AUTHORITY TO DECREASE ITS BASE ) RATES DUE TO THE REMOVAL OF THE ) APPLICATION ACCELERATED DEPRECIATION EXPENSE ) ASSOCIATED WITH NON-ADVANCED ) METERING INFRASTRUCTURE ("AMI") )METERING EQUIPMENT. ) ) Idaho Power Company ("Idaho Power" or "Company"), in accordance with Idaho Code §§ 61-524 and -525 and RP 052, 121, and 125, hereby respectfully makes Application to the Idaho Public Utilities Commission ("Commission") for authority to decrease its base rates due to the removal of accelerated depreciation expense associated with non-Advanced Metering Infrastructure ("AMI") metering equipment. This Application is being filed with the Commission concurrently with three other applications that wil impact customers' base rates: (1) rate changes associated with the Open Access Transmission Tariff ("OATI") deferral amortization; (2) revised - depreciation rates as a result of a new depreciation study; and (3) the inclusion of a APPLICATION - 1 balancing account for the early decommissioning of the Boardman power plant. Idaho Power is simultaneously filing these applications so as to necessitate a single rate change for customers as opposed to four individual rate adjustments had the applications not been filed all at once. In support of this Application, Idaho Power asserts as follows: i. BACKGROUND 1 . As a result of the very large purchased power costs and accompanying power cost adjustment rate increases stemming from the 2000-2001 energy crisis, the Commission ordered Idaho Power and the Energy Efficiency Advisory Group to evaluate and report upon the viabilty of Time-of-Use ('TOU") metering programs and the deployment of Advanced Meter Reading or Automated Meter Reading ("AMR") 1 technology. Order No. 28894 at 7, Order No. 29026 at 22. Case No. IPC-E-02-12 was opened to investigate TOU pricing for Idaho Power's residential customers and, after review of the Company's initial report, the Commission directed Idaho Power to implement AMI "as soon as possible, with installation commencing this year (2003) and completed in 2004." Order No. 29196 at 10. The 2004 implementation was subsequently delayed because of the financial, technical, and implementation problems encountered with meeting that time frame. Order No. 29226 at 2-3. The Commission then adopted a phased-in implementation along with a collaborative evaluation approach. 1 AMI is a more inclusive term than AMR and refers to systems that measure, collect, and analyze energy usage information from advanced metering devices through various communication media on request or on a pre-defined schedule. This infrastrcture includes hardware, software, communications equipment, customer associated systems, and data management software. The term AMR was upgraded to AMI as the technology and terminology developed. AMI better reflects the capabilities of the technology discussed herein. APPLICATION - 2 2. In December 2003, after a collaborative workshop among the Company, Commission Staff, vendors, and interested parties, the Company filed its Phase One Implementation Plan to install AMI technology in the Emmett and McCall operating areas. Case No. IPC-E-02-12. Phase One implementation of 23,500 AMI meters and associated infrastructure was completed on October 26, 2004. On May 1, 2007, the Company filed a detailed AMI Status Report, followed by an August 31, 2007, Implementation Plan describing and proposing a three-year deployment of an AMI system covering roughly 99 percent of the Company's customers in its service territory from January 2009 through the end of 2011. Case No. IPC-E-06-01. 3. In August 2008, Idaho Power filed a request with the Commission asking that the Commission find the Company's proposed deployment of AMI technology to be in the public interest and grant the Company a Certificate of Public Convenience and Necessity ("CPCN") to install AMI technology throughout its service territory. On February 12, 2009, the Commission issued Order No. 30726 approving the Company's request for a CPCN, to accelerate the depreciation of its existing, non-AMI metering equipment over a three-year period, and to include the corresponding operation and maintenance benefits as they occur. 4. Shortly thereafter, Idaho Power filed an application for authority to increase rates of affected customer classes due to the inclusion of the AMI investment in rate base. Case No. IPC-E-09-07. The proposed increase only applied to those customers receiving AMI meters, which included Schedules 1, 3, 4, and 5 (Residential); Schedule 7 (Small General Service); Schedule 9 (Large General Service - secondary); Schedule 24 (Agricultural Irrigation Service - secondary); Schedule 41 (Street lighting APPLICATION - 3 Service - metered); and Schedule 42 (Traffc Control Signal lighting Service). The revenue requirement request included the Company's test year investment in the new AMI infrastructure, operation and maintenance test year benefits, and one year of accelerated depreciation associated with non-AMI metering equipment. On May 29, 2009, the Commission approved the Company's application authorizing a $10,497,354 increase to revenues of affected customer classes, of which approximately $8 millon was associated with incremental increase in depreciation expense as a result of the accelerated depreciation of non-AMI metering equipment. II. ACCELERATED DEPRECIATION 5. With approval of Idaho Power's request in Case No. IPC-E-09-07, the Company began accelerating the depreciation of its non-AMI metering equipment over a three-year period and began recovery of the incremental increase in depreciation expense on June 1, 2009. The net plant value of the non-AMI metering equipment as of May 31, 2009, was $31,653,649, which, using a three-year, straight-line depreciation method resulted in a monthly amortization of $879,268, or $10,551,216 of depreciation expense on an annual basis. The Company's non-AMI metering equipment wil be fully depreciated by May 31, 2012. Because of the reduction in depreciation expense resulting from the fully depreciated non-AMI metering equipment, Idaho Power proposes to decrease annual base rate revenue recovered from the affected customer classes by $10,551,216. 6. The Company proposes a uniform percentage decrease of 1.22 percent to Tariff Schedules 1, 3, 4, 5, 7, 9 secondary, 24 secondary, 41 metered service, and 42 (residential, small commercial, irrigation, and metered lighting customer classes) . APPLICATION - 4 effective June 1,2012, for service provided on and after that date (See Attachment No. 1 ). The Company is proposing to decrease only the energy charge of the affected customer classes as the approved increase in Case No. IPC-E-09-07 was applied to only the energy charge. II. PROPOSED TARIFF 7. As explained above, Idaho Power is proposing rate changes associated with the OATT deferral amortization, revised depreciation rates, and the Boardman balancing account in addition to a reduction in rates associated with this Application to remove depreciation expense associated with non-AMI metering equipment. In an attempt to satisfy RP 121.01, the Company is filng one set of proposed tariff sheets specifying the proposed rates for providing retail electric service to its customers in the state of Idaho following the inclusion of all four of the proposed rate changes. The tariffs including all four of these rate adjustments wil be filed as Attachment Nos. 2 and 3 to the Company's Application for Authority to Increase Its Rates for Electric Service to Recover the Boardman Balancing Account ("Boardman Application") in both clean and legislative format, respectively. The Company believes that filng individual sets of tariff sheets with each case as required by RP 121.01 would be administratively complex and would not aid the Commission and interested parties with their review of these proposed rate adjustments. Idaho Power considers the filng of one set of tariff sheets with the cumulative impact of the proposed rates will comply with the spirit of the Commission's rule. The Company wil make a compliance filng when final orders are received on all proposed requests to change rates effective June 1, 2012. The APPLICATION - 5 compliance filing wil include tariff sheets that show the cumulative impact of rate changes associated with all four cases. 8. Attachment No. 2 to this Application shows a comparison of revenues from the various tariff customers under Idaho Power's existing rates and charges with the corresponding proposed new revenue levels resulting from the proposed rates from the four cases mentioned above. 9. This Application, together with Attachment Nos. 1, 2, and 3, is filed with the Commission to be kept open for public inspection as required by law, and the same fully states the changes to be made in the rate schedules now in force. The new electric rate schedules contained in Attachment No. 2 to the Company's Boardman Application are requested to become effective June 1, 2012, for services provided on and after that date, unless otherwise ordered by this Commission, and when effective, wil supersede and cancel the present electric rate schedules now in existence. 10. It is in the public interest that the Commission allow Idaho Power to decrease its revenues by approving the rates set out in Attachment No. 2 to the Company's Boardman Application and that said rates are allowed to go into effect as filed for electric service rendered on and after June 1, 2012, and that the effective date of said rates not be suspended. IV. MODIFIED PROCEDURE 11 . Idaho Power believes that a hearing is not necessary to consider the issues presented herein and respectfully requests that this Application be processed under Modified Procedure, Le., by written submissions rather than by hearing. RP 201 et seq. If, however, the Commission determines that a technical hearing is required, the APPLICATION - 6 Company stands ready to present its testimony and support the Application in such hearing. V. COMMUNICATIONS AND SERVICE OF PLEADINGS 12. This Application wil be brought to the attention of Idaho Power's customers by means of both a press release to media in the Company's service area and a customer notice distributed in customers' bills, both of which are included herein as Attachment NO.3. The customer notice will be distributed over the course of the Company's current billng cycle, with the last notice being sent on March 20, 2012. In addition to describing this filng, these customer communications also describe proposed rate changes associated with the OA TI deferral amortization, revised depreciation rates, and the Boardman Application. Idaho Power wil also keep its Application open for public inspection at its offces throughout the state of Idaho. Idaho Power asserts that this notice procedure satisfies the Rules of Practice and Procedure of this Commission; however, the Company wil, in the alternative, bring the Application to the attention of its affected customers through any other means directed by this Commission. 13. Communications and service of pleadings with reference to this Application should be sent to the following: Jason B. Willams lisa D. Nordstrom Idaho Power Company P.O. Box 70 Boise, Idaho 83707 jwilliams(Qidahopower.com Inordstrom(Qidahopower.com Courtney Waites Greg Said Tim Tatum Idaho Power Company P.O. Box 70 Boise, Idaho 83707 cwaites(Qidahopower.com gsaid(Qidahopower.com ttatum(Qidahopower.com APPLICATION - 7 Vi. REQUEST FOR RELIEF 14. Idaho Power respectfully requests that the Commission issue an Order: (1) authorizing that this matter may be processed by Modified Procedure; (2) approving a decrease of $10,551,216 in the annual revenue recovered from Schedules 1, 3, 4, 5, 7, 9 secondary, 24 secondary, 41 metered, and 42 customers; and (3) approving an effective date of June 1, 2012, for the new rates. DATED at Boise, Idaho, this 15th day of February 2012. \ '- S B. L1AMS rney for Idaho Power Company APPLICATION - 8 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-12-07 IDAHO POWER COMPANY ATTACHMENT NO.1 iJ ) : ( " ) : Il l t : I I : : (Q ' " l i I I co = C O C ' ;~ ~ 3 C O ~ _0 . .. _ ~ = i a - ( " Z iJ i 0 (" m . ~. . ""b.. Id a h o P o w e r C o m p a n y Ca l c u l a t i o n o f R e v e n u e I m p a c t St a t e o f I d a h o Re m o v a l o f A c c e l e r a t e d D e p r e c i a t i o n F u n d i n g Ef f e c t i v e J u n e 1 , 2 0 1 2 Su m m a r y o f R e v e n u e I m p a c t To t a l Pe r c n t Ra t e Av e r a g e No r m a l i z e d Cu r r n t Ad j u s t m e n t s Pr o p o s e d Ch a n g e Lin e Sc h . Nu m b e r of En e r g Ba s e Mil l s to B a s e Ba s e Mi l s Ba s e t o B a s e tl Ta r i f f D e s c p t i o n No . Cu s t o m e r s 1 1 ) (k W h I 1 1 ) ~ Pe r kW h Re v e n u e Re v e n u e ~ Re v e n u e Un i f o r m T a r i f f R a t e s : 1 Re s i d e n t i a l S e r v c e 1 39 9 , 3 2 9 4,8 9 6 , 2 7 2 , 8 2 7 $3 8 7 , 4 6 7 , 3 5 9 79 . 1 4 ($ 5 , 2 5 6 , 1 2 5 ) $3 8 2 , 2 1 1 , 2 3 4 78 . 0 6 (1 . 3 6 ) % 2 Ma s t e r M e t e r e d M o b i l e H o m e P a r k 3 23 4, 9 4 2 , 6 8 1 $3 7 0 , 8 9 0 75 . 0 4 ($ 5 , 3 0 6 ) $3 6 5 , 5 8 4 73 . 9 6 (1 . 4 3 ) % 3 Re s i d e n t i a l S e r v i c e E n e r g y W a t c h 4 0 0 $0 0. 0 0 $0 $0 0. 0 0 N/A 4 Re s i d e n t i a l S e r v i c e T i m e - o f - D a y 5 0 0 $0 0. 0 0 $0 $0 0. 0 0 N/A 5 Sm a l l G e n e r a l S e r v c e 7 28 , 1 6 5 14 4 , 8 8 8 , 2 9 6 $1 4 , 5 8 2 , 8 7 4 10 0 . 6 5 ($ 1 5 5 , 5 3 7 ) $1 4 , 4 2 7 , 3 3 7 99 . 5 8 (1 . 0 7 ) % La r g e G e n e r a l S e r v i c e 9 31 , 6 1 4 3,4 8 0 , 1 0 1 , 4 5 9 $1 9 6 , 6 6 2 , 0 0 0 56 . 5 1 ($ 3 , 2 8 1 , 6 3 7 ) $1 9 3 , 3 8 0 , 3 6 3 55 . 5 7 (1 . 6 7 ) % 7 Du s k t o D a w n L i g h t i n g 15 0 6, 4 8 1 , 3 7 6 $1 , 1 6 4 , 5 0 4 17 9 . 6 7 $0 $1 , 1 6 4 , 5 0 4 17 9 . 6 7 0.0 0 % 8 La r g e P o w e r S e r v i c e 19 11 6 1, 9 7 8 , 6 2 3 , 6 4 7 $8 3 , 9 3 2 , 2 4 6 42 . 4 2 $0 $8 3 , 9 3 2 , 2 4 6 42 . 4 2 0.0 0 % 9 Ag r i c u l l u r a l I r r g a t i o n S e r v i c e 24 16 , 6 4 2 1, 7 2 0 , 2 0 4 , 4 1 0 $1 0 9 , 5 8 9 , 4 5 3 63 . 7 1 ($ 1 , 8 4 6 , 6 3 1 ) $1 0 7 , 7 4 2 , 8 2 2 62 . 6 3 (1 . 6 9 ) % 10 Un m e t e r e d G e n e r a l S e r v i c e 40 2, 0 3 0 15 , 8 0 7 , 7 5 3 $1 , 0 9 3 , 4 7 8 69 . 1 7 $0 $1 , 0 9 3 , 4 7 8 69 . 1 7 0,0 0 % 11 St r e e t L i g h t i n g 41 36 1 23 , 1 6 5 , 5 6 8 $2 , 9 4 0 , 5 0 8 12 6 . 9 3 ($ 2 , 7 8 0 ) $2 , 9 3 7 , 7 2 8 12 6 . 8 1 (0 . 0 9 ) % 12 Tr a f f c C o n t r o l L i g h t i n g 42 39 7 2, 9 8 1 , 2 8 2 $1 4 3 , 1 0 2 48 . 0 0 ($ 3 , 2 0 0 ) $1 3 9 , 9 0 1 46 . 9 3 (2 . 2 4 ) % 13 To t a l U n i f o r m T a r i f f s 47 8 , 6 7 7 12 , 2 7 3 , 4 6 9 , 2 9 9 $7 9 7 , 9 4 6 , 1 3 65 . 0 1 ($ 1 0 , 5 5 1 , 2 1 6 ) $7 8 7 , 3 9 5 , 1 9 7 64 . 1 5 (1 . 3 2 ) % 15 Sp e c i a l C o n t r a c t s : 16 Mi c r n 26 1 45 1 , 1 3 8 , 6 2 2 $1 7 , 2 7 0 , 2 5 5 38 . 2 8 $0 $1 7 , 2 7 0 , 2 5 5 38 . 2 8 0.0 0 % 17 J R S i m p l o t 29 1 20 3 , 5 5 8 , 1 9 7 $6 , 7 7 5 , 5 6 6 33 . 2 9 $0 $6 , 7 7 5 , 5 6 6 33 . 2 9 0.0 0 % 18 DO E 30 1 24 4 , 2 6 6 , 6 6 5 $8 , 4 5 2 , 1 1 1 34 . 6 0 $0 $8 , 4 5 2 , 1 1 1 34 . 6 0 0.0 0 % 19 Ho k u - B l o c k 1 32 1 38 7 , 9 5 7 , 6 0 0 $2 5 , 3 1 1 , 2 2 5 65 . 2 4 $0 $2 5 , 3 1 1 , 2 2 5 65 . 2 4 0.0 0 % 20 Ho k u - B l o c k 2 32 19 7 , 1 0 0 , 0 0 0 $7 , 3 8 0 , 6 8 1 37 . 4 5 $0 $7 , 3 8 0 , 6 8 1 37 . 4 5 0.0 0 % 21 To t a l S p e c i a l C o n t r a c t s 4 1, 4 8 4 , 0 2 1 , 0 8 4 $6 5 , 1 8 9 , 8 3 9 43 . 9 3 $0 $6 5 , 1 8 9 , 8 3 9 43 . 9 3 0.0 0 % 23 To t a l I d a h o R e t a i l S a l e s 47 8 , 6 8 1 13 , 7 5 7 , 4 9 0 , 3 8 3 $8 6 3 , 1 3 6 , 2 5 2 62 . 7 4 ($ 1 0 , 5 5 1 , 2 1 6 ) $8 5 2 , 5 8 5 , 0 3 6 61 . 9 7 (1 . 2 2 ) % (1 ) J u n e 1 , 2 0 1 2 - M a y 3 1 , 2 0 1 3 F o r e c a s t e d P C A T e s t Y e a r BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-12-07 IDAHO POWER COMPANY ATTACHMENT NO.2 "t " . 0 " . ll l t : I I : : CO " t ( I I I CD : : C D 0 ;; ~ g : ~ _ O . . ~ .. ? = t ; a -o Z "t i 0 om . .: I \ I\Io"' Id a h o P o w e r C o m p a n y Ca l c u l a t i o n o f R e v e n u e I m p a c t St a t e o f I d a h o Co m b i n e d E f f e c t o f F i l i n g s F u n d i n g Ef f e c t i v e J u n e 1 , 2 0 1 2 Su m m a r y o f R e v e n u e I m p a c t To t a l Pe r c n t Ra t e Av e r a g e No r m a l i z e d Cu r r n t Ad j u s t m e n t s Pr o p o s e d Ch a n g e Li n e Sc h . Nu m b e r of En e r g Ba s e Mi l s to B a s e Ba s e Mil l s Ba s e t o B a s e No Ta r i f f D e s c r p t i o n Ji Cu s t o m e r s ( 1 ) (k W h ) (1 ) Re v e n u e Pe r kW h Bm Re v e n u e Pe r kW h Re v e n u e Un i f o r m T a r i f f R a t e s : 1 Re s i d e n t i a l S e r v i c e 1 39 9 , 3 2 9 4, 6 9 6 , 2 7 2 , 6 2 7 $3 6 7 , 4 6 7 , 3 5 9 79 . 1 4 ($ 3 , 0 6 5 . 3 6 ) $3 6 4 , 3 6 1 , 9 2 1 76 . 5 1 (0 . 6 0 ) % 2 Ma s t e r M e t e r e d M o b i l e H o m e P a r k 3 23 4, 9 4 2 , 6 6 1 $3 7 0 , 6 9 0 75 . 0 4 ($ 3 , 1 0 1 ) $3 6 7 , 7 6 9 74 . 4 1 (0 . 6 4 ) % 3 Re s i d e n t i a l S e r v c e E n e r g y W a t c h 4 0 0 $0 0.0 0 $0 $0 0. 0 0 N/ A 4 Re s i d e n t i a l S e r v c e T i m e - o f - D a y 5 0 0 $0 0.0 0 $0 $0 0. 0 0 N/ A 5 Sm a l l G e n e r a l S e r v i c e 7 26 , 1 6 5 14 4 , 6 6 6 , 2 9 6 $1 4 , 5 6 2 , 6 7 4 10 0 . 6 5 ($ 6 0 , 0 2 4 ) $1 4 , 5 0 2 , 6 4 9 10 0 . 1 0 (0 . 5 5 ) % La r g e G e n e r a l S e r v i c e 9 31 , 6 1 4 3, 4 6 0 , 1 0 1 , 4 5 9 $1 9 6 , 6 6 2 , 0 0 0 56 . 5 1 ($ 2 , 0 9 9 , 5 0 9 ) $1 9 4 , 5 6 2 , 4 9 1 55 . 9 1 (1 . 0 7 ) % 7 Du s k t o D a w n L i g h t i n g 15 0 6,4 6 1 , 3 7 6 $1 , 1 6 4 , 5 0 4 17 9 . 6 7 $6 , 4 7 9 $1 , 1 7 0 , 9 6 3 16 0 . 6 7 0. 5 6 % 6 La r g e P o w e r S e r v c e 19 11 6 1,9 7 6 , 6 2 3 , 6 4 7 $6 3 , 9 3 2 , 2 4 6 42 . 4 2 $5 4 2 , 7 5 9 $6 4 , 4 7 5 , 0 0 5 42 . 6 9 0. 6 5 % 9 Ag r i c u l t u r a l Ir r i g a t i o n S e r v i c e 24 16 , 6 4 2 1,7 2 0 , 2 0 4 , 4 1 0 $1 0 9 , 5 6 9 , 4 5 3 63 . 7 1 ($ 1 , 1 6 9 , 7 6 2 ) $1 0 6 , 3 9 9 , 6 9 1 63 . 0 2 (1 . 0 9 ) % 10 Un m e t e r e d G e n e r a l S e r v i c e 40 2,0 3 0 15 , 6 0 7 , 7 5 3 $1 , 0 9 3 , 4 7 6 69 . 1 7 $6 , 5 7 6 $1 , 1 0 0 , 0 5 6 69 . 5 9 0. 6 0 % 11 St r e e t L i g h t i n g 41 36 1 23 , 1 6 5 , 5 6 6 $2 , 9 4 0 , 5 0 6 12 6 . 9 3 $1 3 , 6 6 9 $2 , 9 5 4 , 3 9 6 12 7 . 5 3 0. 4 7 % 12 Tr a f c C o n t r o l L i g h t i n g 42 39 7 2,9 6 1 , 2 6 2 $1 4 3 , 1 0 2 46 . 0 0 ($ 2 , 2 9 1 ) $1 4 0 , 6 1 0 47 . 2 3 (1 . 6 0 ) % 13 To t a l U n i f o r m T a r i f f s 47 6 , 6 7 7 12 , 2 7 3 , 4 6 9 , 2 9 9 $7 9 7 , 9 4 6 , 4 1 3 65 . 0 1 ($ 5 , 6 9 0 , 4 2 1 ) $7 9 2 , 0 5 5 , 9 9 2 64 . 5 3 (0 . 7 4 ) % 15 Sp e c i a l C o n t r a c t : 16 Mi c r n 26 1 45 1 , 1 3 6 , 6 2 2 $1 7 , 2 7 0 , 2 5 5 36 . 2 6 $1 1 4 , 3 9 6 $1 7 , 3 6 4 , 6 5 1 36 . 5 4 0. 6 6 % 17 JR S i m p l o t 29 1 20 3 , 5 5 6 , 1 9 7 $6 , 7 7 5 , 5 6 6 33 . 2 9 $4 6 , 2 4 6 $6 , 6 2 1 , 6 1 4 33 . 5 1 0. 6 6 % 16 DO E 30 1 24 4 , 2 6 6 , 6 6 5 $6 , 4 5 2 , 1 1 1 34 . 6 0 $5 7 , 1 9 4 $6 , 5 0 9 , 3 0 6 34 . 6 4 0. 6 6 % 19 Ho k u - B l o c k 1 32 1 36 7 , 9 5 7 , 6 0 0 $2 5 , 3 1 1 , 2 2 5 65 . 2 4 $0 $2 5 , 3 1 1 , 2 2 5 65 . 2 4 0. 0 0 % 20 Ho k u - B l o c k 2 32 19 7 , 1 0 0 , 0 0 0 $7 , 3 6 0 , 6 6 1 37 . 4 5 $4 9 , 1 1 0 $7 , 4 2 9 , 7 9 1 37 . 7 0 0. 6 7 % 21 To t a l S p e c i a l C o n t r a c t s 4 1, 4 6 4 , 0 2 1 , 0 6 4 $6 5 , 1 6 9 , 6 3 9 43 . 9 3 $2 6 6 , 9 4 6 $6 5 , 4 5 6 , 7 6 6 44 . 1 1 0. 4 1 % 23 To t a l Id a h o R e t a i l S a l e s 47 6 , 6 6 1 13 , 7 5 7 , 4 9 0 , 3 6 3 $6 6 3 , 1 3 6 , 2 5 2 62 . 7 4 ($ 5 , 6 2 3 , 4 7 4 ) $6 5 7 , 5 1 2 , 7 7 6 62 . 3 3 (0 . 6 5 ) % (1 ) J u n e 1 , 2 0 1 2 - M a y 3 1 , 2 0 1 3 F o r e c a s t e d P C A T e s t Y e a r BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-12-07 IDAHO POWER COMPANY ATTACHMENT NO.3 NEWS RELEASE i:1DA~POR(I An IDACORP Company Idaho Power Requests to Lower Rates for Most Customers As part of Idaho Power's hard work to provide reliable, fair-priced electric service to its customers, the company has filed a request to reduce most customers' rates effective June 1. BOISE, Idaho, Feb. 16, 2012 -- On Feb. 15, Idaho Power made four filngs with the Idaho Public Utilities Commission (I PUC), the net effect of which is a proposed decrease to most customers' rates effective June 1. Idaho Power customers benefit from some of the lowest electricity rates in the nation. Overall Impact Idaho Power understands that multiple filings can be confusing for customers, and we want to help you understand what the result means to your bottom line. A summary of proposed changes to Idaho rates is shown below. Revenue Impact By Class: Percentage Change from Current Biled Rates Residential Small large large Irrigation Overall General General Power Change Service Service Depreciation Rate 0.31%0.29%0.32%0.27%0.32%0.31% Change Boardman 0.18%0.17%0.19%0.16%0.19%0.18% Shutdown Tra nsm ission 0.07%0.05%0.09%0.11%0.08%0.08% Revenue Deferral Recovery Non-AMI Meter (1.36%)(1.07%)(1.63%)0.00%(1.69%)(1.22%) Depreciation Net Change (0.80%)(0.56%)(1.03%)0.54%(1.10%)(0.65%) The net effect to customers of these four filings varies depending on your rate schedule. However the result is a decrease for most customers. The bil impact for an average Idaho more-mare-more P.O. Box 70 (83707) 1221 W.ldaho St. Attachment NO.3 Boise, ID 83702 Case No. IPC-E-12-07 Application,lPC Page 1 of6 Idaho Power Requests To Lower Customer Rates Page 2 of 4 Power residential customer in Idaho using 1,050 kilowatt-hours of energy a month wil be a bill decrease of $0.67 beginning June 1, if all proposals are approved as filed. We anticipate making additional filngs this spring that, in combination with the above proposed changes, wil have a net effect on rates. Why Idaho Power Needs to Change Rates As a regulated utility, Idaho Power invests up front to serve customers and recovers the cost of the investment, along with a commission-authorized fair return, later. The company also needs to pay its expenses as they occur. To provide power today and to plan for tomorrow, we must invest in our aging infrastructure and in new infrastructure. As we add new resources in the future, to meet growth in customer demand or reduced generation from coal facilities, power supply expenses and customer rates will be impacted. Details on the four Feb. 15 filngs are as follows: Depreciation Rate Change Idaho Power has requested authorization from the IPUC to institute revised depreciation rates in our Idaho jurisdiction for our existing electric facilities. Depreciation rates establish the amount of time over which Idaho Power recovers its investments in the electrical system through rates. The last changes to Idaho Power's depreciation rates became effective August 1, 2008. The revised depreciation rates proposed to become effective on June 1, 2012, are based on the results of a detailed depreciation study examining Idaho Power's existing electric facilities-in- service as of June 30, 2011. The company is proposing a uniform increase of $2,656,213, or 0.31 percent for all customer classes. The change in depreciation rates and the corresponding customer rates would become effective June 1, 2012. Early Shutdown of Boardman Coal Plant Idaho Power's operating partner has announced plans to shut down the coal-fired Boardman Power Plant in north-central Oregon in 2020. Idaho Power owns 10 percent of the facilty. In recognition of these plans, Idaho Power is requesting an increase in customer rates effective June 1, 2012, resulting from the accelerated depreciation of the plant, decommissioning costs more-more-more Attachment NO.3 Case No. IPC-E-12-07 Application,IPC Page 2 of6 Idaho Power Requests To Lower Customer Rates Page 3 of 4 related to the plant shutdown and capital investments forecasted through the remaining life of the plant. These are not additional costs to customers, but ones that are being incurred earlier than we originally planned. The proposed change equates to an overall increase of $1,583,373, or 0.18 percent. Transmission Revenue Deferral Recovery Idaho Powers Open Access Transmission Tariff (DATI) defines the rates, terms and conditions of transmission services the company provides to wholesale customers per Federal Energy Regulatory Commission (FERC) regulations. An ongoing transmission case with the FERC had a significant impact on actual transmission revenues Idaho Power received from DATI customers, resulting in an overstatement of revenue credits given to Idaho customers from March 2008 through May 2010. Idaho Power worked hard to successfully reduce the shortfall by more than $6 millon. We're now requesting IPUC approval to begin the three-year amortization of the remaining $2,064,469 deferraL. We have requested an increase of $688,156 in the annual revenue recovered from Idaho customers beginning on June 1, 2012, for service provided on and after that date. This is a uniform percentage increase of 0.08 percent to all customer classes. Non-AMI Meter Depreciation Idaho Power has applied to the IPUC for authority to decrease its base rates due to the removal of the accelerated depreciation expense associated with non-Advanced Metering Infrastructure (AMI) metering equipment (mechanical meters). This equipment will be fully depreciated on May 31, 2012. As a result, Idaho Power proposes to decrease annual revenue recovered from residential, small business, irrigation, and metered lighting customer classes by $10,551,216. Idaho Power proposes a uniform percentage decrease of 1.22 percent to the above customers effective June 1, 2012, for service provided on and after that date. Opportunities for Public Review Idaho Power's filing is a proposal that is subject to public review and approval by the IPUC. Copies of the application are available to the public at the IPUC offices (472 W. Washington, Boise, 10), Idaho Power offices or on Idaho Power's website, www,idahopower.com or the IPUC more-more-more Attachment NO.3 Case No. IPC-E-12-07 Application,IPCPage 30f6 Idaho Power Requests To Lower Customer Rates Page 4 of 4 website, www.puc.idaho.gov. You can view additional, related materials on the filng at www.idahopower.com/rates. About Idaho Power Company: Idaho Power began operations in 1916. Today, the electric utilty employs approximately 2,000 people who serve nearly 500,000 customers throughout a 24,OOO-square-mile area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its generation portfolio, Idaho Power's residential, business and agricultural customers pay among the nation's lowest rates for electricity. IOACORP, Inc. (NYSE: IDA) is the investor-owned utility's parent company based in Boise, Idaho. To learn more, visit www.idahopower.com or www.idacorpinc.com. Contact: Stephanie McCurdy Communication Specialist Idaho Power 208-388-6973 and SMcCurdy(gidahopower.com 1-800-458-1443 media line ### Attachment NO.3 Case No. IPC-E-12-07 Application, IPC Page 4 of6 Ad d i t i o n a l S p r i n g F i l i n g s We d o a n t i c i p a t e m a k g a d d i t i o n a l f i i n g s t h s s p r i n g th a t , i n c o m b i n a t i o n w i t h t h e p r o p o s e d c h a n g e s ou t l n e d i n t h i s n o t i c e , w i h a v e a n e t e f f e c t o n r a t e s . Th e s e a r e t y i c a l a n u a l e v l u a t i o n s a n d w i l l i n c l u d e th e a n u a l F i x e d C o s t A d j u s t m e n t ( F C A ) , P o w e r C o s t Ad j u s t m e n t ( P C A ) a n d R e v e n u e S h a n g A d j u s t m e n t . Wh y W e N e e d t o C h a n g e R a t e s As a r e g u a t e d u t i t y , I d a h o P o w e r i n v e s t s u p f r o n t to s e r v e c u s t o m e r s a n d r e c o v e r s t h e c o s t o f t h e in v e s t m e n t , a l o n g w i t h a c o m m i s s i o n - a u t h o r i z e d fa i r r e t u r n , l a t e r . W e a l s o n e e d t o p a y o u r e x p e n s e s as t h e y o c c u . To p r o v i d e p o w e r t o d a y a n d t o p l a n f o r t o m o r r o w , we m u s t i n v e s t i n o u r a g i g i n f a s t r c t u e a n d i n ne w i n a s t r c t u e . A s w e a d d n e w r e s o u r c e s i n th e f u t u r e , t o m e e t g r o w t i n c u s t o m e r d e m a n d o r re d u c e d g e n e r a t i o n f r m c o a l f a c i l t i e s , p o w e r s u p p l y ex p e n s e s a n d c u s t o m e r r a t e s w i b e i m p a c t e d . ~~ & ' ~ u: ' 0 e n Ø l (1 = : ( 1 0 c. ß z : : 0e . 0 ( 1 3 _0 . ~: : - : : v. . - 0 - - ( ' Z -0 i 0 (' m . ~ t . N6-. Op p o r t n i t i e s f o r P u b l i c R e v i e w Id a h o P o w e r ' s f i n g i s a p r o p o s a l t h a t i s s u b j e c t to p u b l i c r e v i e w a n d a p p r o v a b y t h e I P U C . C o p i e s of t h e a p p l i c a t i o n a r e a v a i a b l e t o t h e p u b l i c a t th e I P U C o f f c e s ( 4 7 2 W . W a s h i g t o n , B o i s e I D ) , Id a h o P o w e r o f f c e s o r o n I d a h o P o w e r ' s w e b s i t e , ww . i d a h o p o w e r . c o m o r t h e I P U C w e b s i t e , ww . p u c . d a h o . g o v . Y o u c a n v i e w a d d i t i o n a l , r e l a t e d ma t e r i a l s , i n c l u d i n g f r e q u e n t l y a s k e d q u e s t i o n s a n d a n e w s r e l e a s e o n t h e f i i n g a t w w . i d a h o p o w e r . c o m / ra t e s . We v a u e y o u r b u s i n e s s a n d a p p r e c i a t e y o u t a k g t h e ti e t o r e a d t h i s n o t i c e . T h a n y o u . -r ID A .i P O . * P r i n t e d o n r e c y c l e d p a p e r . (0 2 0 1 2 I d a h o P o w e r An I D A C O R P C o m p a n y Id a h o P o w e r ' s c u s t o m e r s b e n e f i t fr o m s o m e o f t h e l o w e s t e l e c t r i c i t y ra t e s i n t h e n a t i o n . R e c e n t f i g s w i r e s u l t i n a n e t d e c r e a s e t o t h o s e r a t e s f o r m o s t c u s t o m e r s . On F e b . 1 5 , I d a h o P o w e r m a d e f o u r f i n g s w i t h t h e Id a h o P u b l i c U t i t i e s C o m m s s i o n ( I P U C ) . T h e n e t ef f e c t o f t h e s e p r o p o s a l s w i l l h a v e d i e r i n g i m p a c t s on t h e r a t e s p a i d b y o u r c u s t o m e r s , e f f e c t i v e J u n e 1, 2 0 1 2 , w i t h m o s t s e e i n g a n e t d e c r e a s e . D e t a i l s o n th o s e f i i n g s a r e a s f o l l o w s . De p r e c i a t i o n R a t e C h a n g e s ( a n i n c r e a s e ) Id a h o P o w e r h a s r e q u e s t e d a u t h o r i z a t i o n f r o m t h e IP U C t o i n s t i t u t e r e v i s e d d e p r e c i a t i o n r a t e s i n o u r Id a h o j u r i s d i c t i o n f o r o u r e x i s t i n g e l e c t i c f a c i l t i e s . De p r e c i a t i o n r a t e s e s t a b l i s h t h e a m o u n t o f t i e ov e r w h i c h I d a h o P o w e r r e c o v e r s i t s i n v e s t m e n t s i n th e e l e c t r i c a l s y s t e m t h o u g h r a t e s . Th e l a s t c h a n g e s t o I d a h o P o w e r ' s d e p r e c i a t i o n ra t e s b e c a m e e f f e c t i v e A u g u s t 1 , 2 0 0 8 . T h e r e v i s e d de p r e c i a t i o n r a t e s p r o p o s e d t o b e c o m e e f f e c t i v e Ju n e 1 , 2 0 1 2 , a r e b a s e d o n t h e r e s u l t s o f a d e t a e d de p r e c i a t i o n s t u d y ex a I d a o P o w e r ' s e x i t i g el e c t c f a c i t i e s - i n - s e r v c e a s o f J u n e 3 0 , 2 0 1 1 . We ' r e p r o p o s i n g a u n i f o r m i n c r e a s e o f $2 , 6 5 6 , 2 1 3 , or 0 . 3 1 p e r c e n t f o r a l c u s t o m e r c l a s s e s . T h e c h a n g e in d e p r e c i a t i o n r a t e s a n d t h e c o r r e s p o n d i n g cu s t o m e r r a t e s w o u l d b e c o m e e f f e c t i v e J u n e 1 , 2 0 1 2 . -s I D A .i P O . An I D A R P C O m p a n y Ea r l y S h u t d o w n o f Bo a r d m a n C o a l P l a n t ( a n i n c r e a s e ) Id a h o P o w e r ' s o p e r a t i n g p a r e r h a s a n n o u n c e d pl a n s t o s h u t d o w n t h e c o a l - f i e d B o a r d m a n P o w e r Pl a n t i n n o r t - c e n t r a l O r e g o n i n 2 0 2 0 . I d a h o P o w e r ow n s 1 0 p e r c e n t o f t h e f a c i l t y . In r e c o g n i t i o n o f t h e s e p l a n s , w e a r e r e q u e s t i g a n in c r e a s e i n c u s t o m e r r a t e s e f f e c t i v e J u n e 1 , 2 0 1 2 , re s u l t i g f r o m t h e a c c e l e r a t e d d e p r e c i a t i o n o f t h e pl a n t , d e c o m m i s s i o n i n g c o s t s r e l a t e d t o t h e p l a n t sh u t d o w n a n d c a p i t a l i n v e s t m e n t s f o r e c a s t e d th o u g h t h e r e m a i g l i f e o f t h e p l a n t . T h e s e a r e n o t ad d i t i o n a l c o s t s t o c u s t o m e r s , b u t o n e s t h t a r e b e i n g in c u r r e d e a r l i e r t h a n w e o r i g i n a l l y p l a n n e d . Th e p r o p o s e d c h a n g e e q u a t e s t o a n o v e r a l l i n c r e a s e of $ I , 5 8 3 , 3 7 3 o r 0 . 1 8 p e r c e n t . Tr a n m i s s i o n R e v e n u e De f e r r a l R e c o v e r y ( a n i n c r e a s e ) Id a h o P o w e r ' s O p e n A c c e s s T r a n s m i s s i o n T a r (D A T I ) d e f i e s t h e r a t e s , t e r m s a n d c o n d i t i o n s of t r a n s m i s s i o n s e r v c e s w e p r o v i d e t o w h o l e s a l e cu s t o m e r s p e r F e d e r a l E n e r g y R e g u a t o r y Co m m s s i o n ( F E R C ) r e g u a t i o n s . A n o n g o i n g tr a n s m i s s i o n c a s e w i t h t h e F E R C h a d a s i g n c a n t im p a c t o n a c t u a l t r a n s m i s s i o n r e v e n u e s I d a h o Po w e r r e c e i v e d f r o m O A T T c u s t o m e r s , r e s u l t i g i n an o v e r s t a t e m e n t o f r e v e n u e c r e d i t s g i v e n t o I d a h o cu s t o m e r s f r o m M a r c h 2 0 0 8 t h r o u g h M a y 2 0 1 0 . Id a h o P o w e r w o r k e d h a r d t o s u c c e s s f u y r e d u c e th e s h o r t a l l b y m o r e t h a n $ 6 m i l i o n . W e ' r e n o w re q u e s t i n g I P U C a p p r o v a l t o b e g i n t h e t h r e e - y e a r am o r t a t i o n o f t h e r e m a i g $ 2 , 0 6 4 , 4 6 9 d e f e r r a l . We h a v e r e q u e s t e d a n i n c r e a s e o f $ 6 8 8 , 1 5 6 i n t h e an n u a l r e v e n u e r e c o v e r e d f r o m I d a h o c u s t o m e r s be g i n n g o n J u n e 1 , 2 0 1 2 , f o r s e r v c e p r o v i d e d o n an d a f t e r t h a t d a t e . T h i s i s a u n o r m p e r c e n t a g e in c r e a s e o f 0 . 0 8 p e r c e n t t o a l c u s t o m e r c l a s s e s . No n - A M I M e t e r D e p r e c i a t i o n ( a d e c r e a s e ) Id a h o P o w e r h a s a p p l i e d t o t h e I P U C f o r a u t h o r i t y to d e c r e a s e i t s b a s e r a t e s d u e t o t h e r e m o v a o f th e a c c e l e r a t e d d e p r e c i a t i o n e x p e n s e a s s o c i a t e d wi t h n o n - A d v a c e d M e t e r i n g I n f r a s t r c t u r e ( A M I ) me t e r i g e q u i p m e n t ( m e c h a n i c a l m e t e r s ) . Th i s e q u i p m e n t w i l l b e f u y d e p r e c i a t e d o n M a y 3 1 , 20 1 2 . A s a r e s u l t , I d a h o P o w e r p r o p o s e s t o d e c r e a s e an n u a l r e v e n u e r e c o v e r e d f r o m r e s i d e n t i a l , s m a l l bu s i n e s s , i r r i g a t i o n , a n d m e t e r e d l i g h t i g c u s t o m e r cl a s s e s b y $ 1 0 , 5 5 1 , 2 1 6 . Id a h o P o w e r p r o p o s e s a u n i o r m p e r c e n t a g e de c r e a s e o f 1 . 2 2 p e r c e n t t o t h e a b o v e c u s t o m e r s ef f e c t i v e J u n e I , 2 0 1 2 , f o r s e r v c e p r o v i d e d o n an d a f t e r t h a t d a t e . Ov e r a l I m p a c t (a d e c r e a s e f o r m o s t c u s t o m e r s ) We u n d e r s t a n d t h a t m u l t i p l e f i l i g s c a n b e co n f u s i n g f o r c u s t o m e r s , a n d w e w a n t t o h e l p yo u u n d e r s t a n d w h a t t h e r e s u l t m e a n s t o yo u r b o t t o m l i e . A s u m m a r y o f p r o p o s e d ch a n g e s t o I d a h o r a t e s i s s h o w n b e l o w . Th e n e t e f f e c t t o c u s t o m e r s o f t h e s e f o u r f i g s va r i e s d e p e n d i n g o n y o u r r a t e s c h e d u l e . H o w e v e r , th e r e s u l t i s a d e c r e a s e f o r m o s t c u s t o m e r s . T h e bi l i m p a c t f o r a n a v e r a g e I d a h o P o w e r r e s i d e n t i a l cu s t o m e r i n I d a h o u s i n g 1 , 0 5 0 k i o w a t t - h o u r s o f en e r g y a m o n t h w i b e a b i l d e c r e a s e o f $ 0 . 6 7 be g i n i g J u n e 1 , 2 0 1 2 , U a l p r o p o s a l s a r e a p p r o v e d as f i e d . -c ) : ( ) ) : II ' t I I : : ce ' C U l I l CD = C D O mi ; z : : 0= . 0 3 C D _0 . m: J - : J - - c - - ( ) z -c i 0 () m . ~c . ~ Rc v c n u c I n i p a c t B y C l a s s : P e r c e n t a g e C h a n g e f r o m C u r r e n t B i l l e d I l a l e s Re s i d e n t i a l Sm a l l G e n e r a l Se r v i c e Ir r i g a t i o n Ov e r a l l Ch a n g e La r g e G e n e r a l Se r v i c e La r g e Po w e r