20120320notice_of_application_order_no_32492.pdf

Office of the Secretary
Service Date
March 20,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION FOR )CASE NO.IPC-E-12-13
AUTHORITY TO SHARE REVENUES WITH )
CUSTOMERS IN CONFORMANCE WITH )NOTICE OF APPLICATION
ORDER NOS 30978 AND 32424 )
)NOTICE OF
)MODIFIED PROCEDURE
)
__________________________________
)ORDER NO.32492
On March 2,2012,Idaho Power Company applied for authority to share revenues
with customers based on year-end 2011 financial results.The Company’s rate-sharing proposal
has two components:(1)PCA Sharing,which reduces net rates by $27,098,897 and reduces rates
for all customer classes by 3.25%relative to current base revenues,or by 3.21%in total billed
revenues;and (2)“Pension Balancing Account Sharing,”which results in a $20,324,173 net
reduction to the pension balancing account.Application at 4 and 6.The Company proposes that
the rate changes take effect on June 1,2012,to coincide with the effective date to be reflected in
the 2012 Power Cost Adjustment (PCA)application.The Company asks that the Commission
process this matter by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that in 2010 and 2011,the Commission approved
settlement stipulations between Idaho Power,Commission Staff,and other parties that require
Idaho Power to share certain revenues with customers.See Order Nos.30978 and 32424.The
first Order requires the Company to provide customers with 50%of any earnings above a 10.5%
year-end return on equity (ROE).The second Order requires the Company to provide an
additional customer benefit;specifically,the Company must book 75%of its share of its Idaho
jurisdictional 2011 year-end ROE above 10.5%as an offset against amounts in the Company’s
pension balancing account that otherwise would be collected in rates.With this Application,the
Company seeks to share revenues as required by these Orders.Application at 1-3.
YOU ARE FURTHER NOTIFIED that,according to the Application,the Company
calculates its year-end,2011 Idaho jurisdictional ROE to be 12.55%.Id.at 3.The Company
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32492 1
says the amount above 10.5%equals $33,007,182.Id.at 4.The Company proposes to share this
amount with customers in two ways.
First,as required by Order No.30978,the Company proposes to proportionally
allocate 50%of this amount to customer classes.After tax gross-up,this 50%amount results in
customers receiving a total.$27,088,897 rate reduction.Id at 4.For the Company’s four special
contract customers (Micron,Simplot,Department of Energy (INL),and Hoku Materials),the
Company proposes to provide a flat,dollar-per-month credit on billed invoices for the usage
months of June 2012 through May 2013.Id.at 5-6.For all other rate classes,the Company
proposes to include allocated revenue-sharing benefits as part of the 2012 PCA filing.Id.at 5.
Second,as required by Order No.32424,the Company proposes to provide
customers with 75%of its remaining 50%share by reducing the Company’s pension balancing
account by that amount.After tax gross-up,this amount is $20,324,173.The Company proposes
to apply this $20 million to the pension balancing account to offset expenses that would
otherwise be collected through rates.Id.at 6.
YOU ARE FURTHER NOTIFIED that the Companys news release and customer
notice say the Company’s proposal will decrease average billed rates by 3.2 1%,with the revenue
impact by class being:Residential,(3.17%);Small General Service,(3.16%);Large General
Service.(3.25%);Large Power,(3.26%);and Irrigation,(3.25%).See News Release at 3-4;
Customer Notice at 1-2.
YOU ARE FURTIIER NOTIFIED that the Company says it did not file a tariff
schedule as part of this proceeding to avoid potential confusion created by filing a partially
updated PCA tariff (Schedule 55)as part of this Application,and then an updated tariff schedule
with the 2012 PCA application in mid-April.The Company says it cannot provide a complete
Schedule 55 now that reflects both revenue-sharing amounts and updated PCA rates for the June
2012 through May 2013 rate period because the 2012 PCA rate will not be filed until mid-April
2012.Application at 7
By not including proposed tariff sheets with this Application as required by Rule 121.01(a),Idaho Power impliedly
asks the Commission to waive that requirement.Based on the Company’s representations in this and the next
paragraph,the Commission finds it is unnecessary for the Company to include the proposed tariff sheets with its
Application in this case.Accordingly,the Commission waives that Rule 121.01(a)requirement under the
circumstances of this case.See Rule 13 (Commission may permit deviation from these rules when if finds
compliance with them is unnecessary’).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORI)ERNO.32492
YOU ARE FURTHER NOTIFIED that the Company notes that it has filed the
proposed revenue-sharing amounts as an exhibit in this case.The Company says its 2012 PCA
application,to be filed in mid-April 2012 requesting an effective date of June 1,2012,will
include the new electric rate schedule containing the revenue-sharing amounts.Id.The
Company also says it will make an appropriate,compliance filing when final orders are received
on all proposals to change rates effective June 1,2012.Id.
YOU ARE FURTHER NOTIFIED that the Company says it will keep its
Application open for public inspection at its Idaho offices,and that it will notify customers
through a press release and bill inserts,with the last notice to be sent on April 23,2012.Id.at 8.
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 Commissions Rules
of Procedure,IDAPA 31.01.01.201 through .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 opposition with the Commission no later
than May 4,2012.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 shall be mailed to the Commission and the
Company at the addresses reflected below:
Commission Secretary Lisa D.Nordstrom
Idaho Public Utilities Commission Julia A.Hilton
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-mail:lnordstrom(didahopowercom
I hilton(didahopower.com
472 W.Washington Street
Boise,ID 83702-5918
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32492 3
Matt Larkin
Greg Said
Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:mlarkinidahopower.com
gsaid(didahopower,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 the Company may file reply comments (if
necessary)by May 11,2012.
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,supporting workpapers 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 other workpapers 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 matter will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code,and specifically
Idaho Code §6 1-307,61-3 13,6 1-503 and 6 1-622.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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32492 4
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and parties may file written comments by May 4,2012,and the Company may
file written reply comments,if necessary,by May 11,2012.
IT IS FURTHER ORDERED that the Company’s Application need not include
proposed tariff sheets as required by Rule 121.01(a).The Commission waives that requirement
under Rule 13 for purposes of this proceeding.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March,2012.
O:IPC4-12-1 3kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32492
MACK A.SSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
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Jfin D.Jewe
Cmmission Secretary
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