20120320notice_of_application_order_no_32483.pdf

Office of the Secretary
Service Date
March 20,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.1PC-E-12-07
APPROVAL TO DECREASE BASE RATE TO )
REMOVE ACCELERATED DEPRECIATION )NOTICE OF APPLICATION
EXPENSE FOR ITS ADVANCED )
METERING INFRASTRUCTURE )NOTICE OF
)MODIFIED PROCEDURE
)
______________________
)ORDER NO.32483
YOU ARE HEREBY NOTIFIED that on February 15.2012.Idaho Power Company
filed an Application requesting authority to decrease base rates as the result of removing the
accelerated depreciation expense associated with its advanced metering infrastructure (AMI)
metering equipment.The Commission first directed Idaho Power to begin installing AMI in
2003.The first meters were installed in Emmett and McCall in 2004.In May 2007,the
Company filed a status report and implementation plan proposing a three-year deployment of an
AMI system covering roughly 99%of the Company’s customers.The plan called for completion
of the meter installations by the end of 201 1.
YOU ARE FURTHER NOTIFIED that in August 2008,the Company filed a request
with the Commission asking for a Certificate of Public Convenience and Necessity for the AMI
technology.The Commission subsequently issued Order No.30726 approving the Company’s
request for a CPCN and accelerating the depreciation of existing AMI metering equipment over a
three-year period.Idaho Power thereafter filed an application requesting an increase in rates
caused by including the AMI investment in rate base.On May 29,2009,the Commission
approved the Company’s application authorizing a $10,497,354 increase to revenues.
YOU ARE FURTHER NOTIFIED that with the Commissiotis approval.Idaho
Power began accelerating the depreciation of its AMI metering equipment over a three-year
period,and also began recovery of the incremental increase in depreciation expense on June 1,
2009.The net plant value of the metering equipment as of May 31,2009 was $31,653,649.A
three-year straight-line depreciation resulted in an annual depreciation expense of $l0,551.216.
The Company’s metering equipment will be fully depreciated by May 31.2012.and as a result,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32483
the depreciation expense will be removed.Accordingly,Idaho Power proposes to decrease
annual base rate revenue that is recovered from the affected customer classes by $10,551,216.
YOU ARE FURTHER NOTIFIED that the Company proposes that the new rates
reflecting the reduced depreciation expense for AMI be effective June 1,2012.The Company
did not,however,file tariff sheets with its Application in this case.The Company
simultaneously filed applications in three other cases,all of which will affect rates,and all
proposed to be effective June 1,2012.1 The tariff sheets in this case are included in the
Company’s application for authority to increase rates to recover the Boardman balancing
account,Case No.IPC-E-12-09.
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 within
twenty-one (21)days from 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:
The Company has concurrently filed three other applications.See Case Nos.IPC-E-l2-06,IPC-E-12-08,and IPC
E-12-09.The Company says the four filings cumulatively will decrease rates for most customers.The Company’s
press release and customer notice describe the cumulative rate-impact by customer class as:Residential Customers,
(0.80%);Small General Service,(0.56%);Large General Service (1.03%);Large Power,0.54%;and Irrigation,
(1.10%).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32483
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:Email:jwilliams(idahopower.com
lnordstrom(idahopower,com
472 W.Washington Street
Boise,ID 83702-59 18 Courtney Waites
Tim Tatum
Greg Said
Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:cwaites(d;idahopower.com
[e-mail]
gsaid(iidahopower.com
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 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
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application is 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32483 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 etseq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments within 21 days of the service date
of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March 2012.
MACK A.REDFOR,c5M4ISSIONER
d
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jean D Jewell
Cdrnmission Seretary
bls/O:IPC-[3-I 2-O7ws
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32483
PAUL PRESIDENT
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