20120321notice_of_application_order_no_32488.pdf

Office of the Secretary
Service Date
March 21,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-12-14
AUTHORITY TO INCREASE ITS RATES )
AND ITS RATE BASE TO RECOVER ITS )NOTICE OF APPLICATION
INVESTMENT IN THE LANGLEY GULCH )
POWER PLANT )NOTICE OF
)INTERVENTION DEADLINE
)
_________________________________
)ORDER NO.32488
On March 2,2012,Idaho Power filed an Application requesting that it be allowed to
increase its rate base and rates upon completion of the Langley Gulch power plant.The
Company states in its Application that Langley Gulch is a 300 MW natural gas-fired combined-
cycle combustion turbine under construction approximately five miles south of New Plymouth,
Idaho.The Company proposes that the rate increases and the rate base additions become
effective July 1,2012.The Company also proposes that the Application be processed via
Modified Procedure.
BACKGROUND
In Order No.30892 issued in August 2009,the Commission granted a Certificate of
Public Convenience and Necessity (CPCN)to Idaho Power for the construction and operation of
the Langley plant.Idaho Code §61-526.The Order also provided the Company with
“regulatory assurance”pursuant to Idaho Code §61-541 that the Company would receive rate
base treatment for its Langley investment “in the amount of $396,618,473 at such time as the
plant is placed in commercial operation.”Order No.30892 at 46.
Contemporaneously with the filing of this Langley Gulch Application,Idaho Power
also filed two other rate applications:(1)the annual fixed-cost adjustment (FCA)(Case No.
IPC-E-12-12);and (2)a request to share $27 million with customers that it received in 2011
(Case No.IPC-E-12-13).The Company proposes that the rate adjustments for Case Nos.IPC-E
12-12 and IPC-E-12-13 become effective June 1,2012,and the rates in this case become
effective July 1,2012.The Company asserts that the revenue sharing case represents an overall
average decrease in rates of 3.2 1%;the FCA case results in an overall average rate increase of
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32488 1
.14%;and Langley Gulch will have an overall average increase in billed rates of 7.10%.
Application at p.3.Idaho Power asserts that the cumulative rate impacts of these three cases
will result in an increase in billed rates of approximately 4.03%.News Release at 2,Customer
Notice at 2.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that according to the prefiled testimony that
accompanied the Application,Idaho Power anticipates booking $398,133,778 of investment
associated with Langley by June 30,2012.However,the Company is only requesting recovery
of $390,942,172 at this time.Tatum at 6.Company witness Timothy Tatum explains that the
Company already booked some of its Langley investment in the last rate case to acquire the plant
site property,water rights,and property for the water line running from the Snake River to the
plant.
YOU ARE FURTHER NOTIFIED that the Company calculates that the addition to
its rate base,as well as depreciation and tax expenses,results in an additional revenue
requirement of $59,869,823 for the Idaho jurisdiction.Application at 2.The Company proposes
to recover this increased annual revenue requirement in rates by a uniform percentage increase of
7.18%to all customer classes (as measured from current rate base revenues),or a 7.1%increase
in total current billed revenues.The Application also included rate schedules showing the
proposed rate increases.Atch.1,2.In support of its Application,the Company submitted the
prefiled testimony of Lisa Grow (Senior Vice President of Power Supply)and Timothy Tatum
(Senior Manager of Cost of Service).
YOU ARE FURTHER NOTIFIED that the Application,exhibits and supporting
testimony have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices.The Application and testimonies are also
available on the Commission’s web site at www.puc.idaho.gov by clicking on “File Room”and
then “Electric Cases.”
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission’s Rules of Procedure
72 and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32488 2
file a Petition to Intervene within 10 days of the service date of this Order.Persons desiring to
present their views without parties’rights of participation and cross-examination are not required
to intervene and may present their comments without prior notification to the Commission or the
parties.
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has
passed,the Commission Secretary will prepare and distribute a Notice of Parties.The
Commission anticipates that the parties will subsequently convene an informal prehearing
conference to discuss the processing and scheduling of this case.The Notice of Parties shall also
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Idaho Power’s representatives in this matter:
Lisa D.Nordstrom Courtney Waites
Julia A.Hilton Gregory W.Said
idaho Power Company Timothy Tatum
P0 Box 70 Idaho Power Company
Boise,II)83 707-0070 P0 Box 70
E-mail:lnordstromdidahopower.com Boise,ID 83707-0070
jjjjtond;idahopower.com E-mail:cwaitesidahopower.com
gsaid’iuidahopo\ver.com
ttatumcidahopower.com
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Cornmissions jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §61-502,61-503,61-525,and 61-622.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 according to the Commission’s Rules of Procedure,IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32488 3
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail:secretarydpuc.idaho.gov
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene within 10 days from the service date of this Order.Once the deadline for
intervention has passed,the Commission Secretary shall issue a Notice of Parties.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 2
day of March 2012.
..
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PUL KJEILA$4 R,PkESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
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.ean D.Jewellj
Cômmission Secretary
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NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32488 4