20120417notice_of_modified_procedure_order_no_32523.pdf

Office of the Secretary
Service Date
April 17,2012
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
INVESTMENT IN THE LANGLEY GULCH )MODIFIED PROCEDURE
POWER PLANT )
_________________________________
)ORDER NO.32523
On March 2,2012,Idaho Power Company filed an Application requesting that it be
allowed to increase its rate base and rates upon completion of the Langley Gulch power plant.
Langley Gulch is a 330 MW natural gas-fired combined-cycle combustion turbine currently
under construction near New Plymouth.Certificate No.486.The Company proposes that the
rate base additions and the resulting rate increases become effective July 1,2012.The Company
also proposes that the Application be processed via Modified Procedure.
On March 21,2012,the Commission issued its Notice of Application and set a
deadline for intervention.Order No.32488.Petitions to intervene were filed by the Industrial
Customers of Idaho Power (ICIP);Micron Technology;and the Idaho Irrigation Pumpers
Association.These petitions were subsequently granted in Order No.32503.The Commission’s
Notice of Application directed the parties to meet informally to discuss the processing and
scheduling of this case.The parties request that the Commission adopt the proposed schedule set
out below.
BACKGROUND AND APPLICATION
In August 2009,the Commission issued Order No.30892 granting Idaho Power a
Certificate of Public Convenience and Necessity (CPCN)authorizing Idaho Power to construct
and operate the Langley plant.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.
All the parties participated in the informal scheduling conference held on April 10,
2012.The parties agreed that this case could be processed via Modified Procedure and proposed
the following schedule:
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32523 1
May 30,2012 Initial comments due
June 13,2012 Parties file simultaneous reply comments,
if necessary
Given the agreement of the parties and our review of the Application,we adopt the proposed
schedule set out above.
YOU ARE HEREBY NOTIFIED that in the present Application,Idaho Power
maintains that it will incur $398,133,778 of investment associated with the Langley plant by June
30,2012.However,the Company is only requesting authority to include $390,942,172 in rate
base at this time.Company witness Timothy Tatum explains in his prefiled testimony that the
Company already booked some of its Langley investment in the last rate case to acquire the plant
site,water rights,and the necessary property for running water supply lines from the Snake River
to the plant.Tatum at 6.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that its annual revenues
be increased by $59,869,823 to recover its capital investment in the Langley plant as well as
recover other plant expenses such as depreciation,taxes,and operational costs.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 shows the
proposed rate increases to the various customer class schedules.See Atchs.1 and 2.
YOU ARE FURTHER NOTIFIED that the Company has proposed new depreciation
rates and lives for the Langley plant equipment in a separate depreciation case,IPC-E-12-08.
Persons desiring to comment on the proposed depreciation rates associated with the Langley
plant should do so in Case No.IPC-E-12-08.The Company has requested that the depreciation
expenses attributable to the Langley plant and equipment be recovered in this case,IPC-E-12-14.
YOU ARE FURTHER NOTIFIED that the Application,exhibits and supporting
testimony in this case 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 “Electric Cases,”then click on the case number,IPC-E-12-14.
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32523 2
YOU ARE FURTHER NOTIFIED that contemporaneously with the filing of this
Langley Gulch Application,Idaho Power also filed two other rate applications:(1)the annual
fixed-cost adjustment (FCA)in Case No.IPC-E-12-12;and (2)a request to share $27 million
with customers that it received in 2011 in Case No.IPC-E-l2-13.The Company asserts that the
revenue sharing case represents an overall average decrease in rates of 3.21%;the FCA case
represents in an overall average rate increase of 0.14%;and Langley Gulch will have an overall
average rate increase in billed rates of 7.10%.Application at 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%.
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 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 30,2012.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 Idaho
Power 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:1nordstrorndidahopower.com
jhilton(idahopower.com
472 W.Washington Street
Boise,ID 83702-5918
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32523 3
Courtney Waites
Gregory W.Said
Timothy Tatum
Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:[e-mail]
[e-mail]
[e-mail]
All 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 parties may simultaneously file reply
comments no later than June 13,2012.
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 all proceedings in this case will be held
pursuant to the Commission’s 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 pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and parties may file written comments in this matter no later than May 30,
2012.Parties may file simultaneous reply comments no later June 12,2012.
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32523 4
IT IS FURTHER ORDERED that parties file an original and seven copies of their
written comments with the Commission pursuant to Rule 61.01,IDAPA 3 1.01.01.061.01.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /7
day of April 2012.
ATTEST:
Juan D.Jewe!I
Cmmission Secretary
bIs/O:IPC-E1 214 dh2
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32523
N
MACK A,RIORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
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