20120320notice_of_application_order_no_32491.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’S REQUEST )CASE NO.IPC-E-12-12
FOR AUTHORIZATION TO IMPLEMENT )
FIXED COST ADJUSTMENT (FCA)RATES )NOTICE OF APPLICATION
FOR SERVICE EFFECTIVE JUNE 1,2012 )
THROUGH MAY 31,2013 )NOTICE OF
)MODIFIED PROCEDURE
)
__________________________________
)ORDER NO.32491
YOU ARE HEREBY NOTIFIED that on March 2,2012,Idaho Power Company filed
an Application requesting authorization to implement fixed-cost adjustment (FCA)rates for
service effective June 1,2012 through May 31,2013.In March 2007,the Commission approved
the implementation of a three-year FCA pilot program for residential (Schedules 1,3,4 and 5)
and small general service (Schedule 7)customers.In October 2009,the Company filed an
application to convert the FCA from a pilot to a permanent program.The Commission denied
the Company’s request and extended the pilot program for an additional two-year period.The
Company has pending before the Commission another application to make the FCA a permanent
program for residential and small service customers.Case No.IPC-E-11-19.
YOU ARE FURTHER NOTIFIED that the FCA mechanism enables Idaho Power to
separate,or decouple,recovery of certain fixed costs from its volumetric energy sales.The FCA
provides a surcharge or credit when fixed-cost recovery per customer varies above or below a
Commission-established base.Thus,the FCA provides for a mechanism to recover the
difference between the fixed costs actually recovered by the Company through rates and the
fixed costs authorized for recovery in the Company’s most recent general rate case.
YOU ARE FURTHER NOTIFIED that the FCA works the same for both the
residential and small general service classes.For each class,the actual number of customers is
multiplied by the fixed-cost per customer rate (FCC),which is established as part of the
Company’s allowed revenue requirement in a general rate case.This calculation establishes the
allowed fixed-cost recovery amount,which is compared to the amount of fixed costs actually
recovered by Idaho Power.The fixed costs actually recovered is determined by the Company’s
weather normalized sales for each class multiplied by the fixed-cost per energy rate (FCE)as
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32491 1
established in the Company’s most recent rate case.The difference between the allowed fixed-
cost amount and the actual fixed-cost amount recovered establishes the fixed-cost adjustment for
each customer class.
YOU ARE FURTHER NOTIFIED that the Company’s Application states that the
FCA shows a balance of $8,837,352.59 for the residential class and a balance of $1,478,574.74
for the small general service class,for a total amount of $10,315,927.33.Thus,the current FCA
surcharge does not allow the Company to fully recover the total fixed-cost amount.Accordingly,
the Company is proposing an FCA increase of $1,159,520 for both the residential and small
general service classes.The Company is proposing a combined rate increase for both customer
classes of 0.28%over current rates.This equates to a new FCA rate of 0.2028 cents per
kilowatt-hour for the residential class and 0.2597 cents per kilowatt-hour for the small general
service class.
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 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 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:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32491
Commission Secretary Jason B.Williams
Idaho Public Utilities Commission Lisa D.Nordstrom
P0 Box 83720 Idaho Power Company
Boise,Idaho 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:Email:jwil ham sidahopower.corn
[e-mail]
472 W.Washington Street
Boise,ID 83702-5918 Zachary L.Harris
Greg Said
Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:zharrisidahopower.corn
gsaid(ä),idahopower.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 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.32491 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 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.REDF .COMMISSIONER
cL_d’
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jean D Jewell
COmmission Secretary
bls/O:IPC-E-12-1 2ws
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32491 4