20130327Petition for Clarification.pdf

IDAHO PIVER®
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An IDACORP Company
DONOVAN E. WALKER
Lead Counsel
dwalker(idahoDower.com
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March 27, 2013
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-12-28
Schedule 89— Idaho Power Company's Petition for Clarification of Order No.
32758
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and seven (7) copies of Idaho
Power Company's Petition for Clarification of Order No. 32758.
Verytr yours,
Donovan E. Walker
DEW:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
dwaIkeridahopower.com
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Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TARIFF ADVICE )
NO. 12-13 OF IDAHO POWER ) CASE NO. IPC-E-12-28
COMPANY FOR AUTHORITY TO )
UPDATE SCHEDULE 89. ) IDAHO POWER COMPANY'S
) PETITION FOR CLARIFICATION OF
) ORDER NO. 32758
COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), by and
through its undersigned counsel, and hereby petitions the Idaho Public Utilities
Commission ("Commission") to clarify, pursuant to RP 325, the Commission's intent
regarding the payment of interest on approximately $2.46 million in amounts authorized
by Order No. 32758 to approximately 43 cogeneration and small power production
projects. This Petition is based on the following:
I. BACKGROUND
1. On November 28, 2012, Idaho Power filed Tariff Advice No. 12-13 with the
Commission seeking authority to update Schedule 89, Unit Avoided Energy Cost for
Cogeneration and Small Power Production, pursuant to Order No. 32426. The
IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF ORDER NO. 32758-I
Company made this request based upon previous Commission orders which stated that
the pricing under Schedule 89 is to be adjusted as a result of an Idaho Power general
rate case proceeding where net power supply expenses ("NPSE") change. Because
net power supply expenses were not reviewed in Idaho Power's last general rate case
but net power supply expenses reflected in rates subsequently changed between rate
cases, the Company concluded that the combined effect of those consecutive events
should have the same result as if they had occurred simultaneously. Consequently,
Idaho Power sought to update Schedule 89 pricing with an effective date of January 1,
2012, to coincide with the effective date of new rates from the last general rate
proceeding. Commission Staff recommended that the tariff advice be suspended and
that the case be processed by Modified Procedure.
2.On January 4, 2013, the Commission suspended the tariff advice and
issued a Notice of Modified Procedure with comments due by January 25, 2013, and
reply comments from Idaho Power due by February 1, 2013. Order No. 32708.
3.Tamarack Energy Partnership and Idaho Power submitted timely written
comments; no other parties have intervened nor submitted written comments in this
matter.
4.On March 7, 2013, the Commission issued an order approving an update
to Idaho Power's Schedule 89 with a backdated effective date of June 1, 2010—the
date that the new base level NPSE rates became effective in Case No. IPC-E-09-30.
Order No. 32758 at 4. The Commission also directed Idaho power to prospectively
update Schedule 89 each time net power supply expense in base rates change,
whether as part of a general rate case or through some other proceeding. Id. at 4-5.
IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF ORDER NO. 32758-2
5. Idaho Power filed a revised Schedule 89, Unit Avoided Energy Cost for
Cogeneration and Small Power Production, pursuant to Order No. 32758 on March 11,
2013. The Commission approved the revised tariff on March 18, 2013.
II. PETITION FOR CLARIFICATION
6.On March 13, 2013, one of the small power producers affected by the
change in the tariff requested that Idaho Power pay interest on the additional amounts
authorized by Commission Order No. 32758. The Commission did not address the
payment of interest on the approximately $2.46 million in additional amounts authorized
by the backdated rates approved in Order No. 32758. Idaho Power seeks clarification
as to whether the Commission intended Idaho Power to pay interest on the additional
amounts authorized by the rates backdated to June 1, 2010.
7.If the Commission determines that the payment of interest is appropriate
in this instance, Idaho Power requests that the Commission clarify the appropriate
interest rate to be applied. Idaho Power notes that the customer deposit rate authorized
by Utility Customer Relations Rule 106, IDAPA 31.21.01.106, currently set at 1 percent
during calendar year 2013 by Order No. 32684, has been authorized in other
proceedings involving customer refunds and deferred accounts. See generally Order
Nos. 32216 (PAC-E-1 1-07 ECAM deferral), 30272 (CAP-W-07-01 billing refunds),
32162 (IPC-E-10-20 SO2 emission allowances proceeds in Power Cost Adjustment),
28626 (USW-T-99-24 bill credit), 29157 (PAC-E-01-16 customer rate true-up), 28366
(AVU-E-00-02 customer rebates), 20974 (U-1002-58 billing refunds), and 27660 and
28099 (IPC-E-97-12 and IPC-E-99-02 revenue sharing to customers).
IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF ORDER NO. 32758-3
8. Idaho Power intends to issue payments, without interest, as directed in
Order No. 32758 through its normal weekly payment process once the twenty-one-day
period following the service date of Order No. 32758 has expired. Should the
Commission determine that an interest payment is appropriate, the Company will pay
that amount separately.
III. CONCLUSION
NOW, THEREFORE, Idaho Power respectfully requests the Commission issue
an order clarifying whether the Commission intended Idaho Power to pay interest on the
additional amounts authorized by the rates backdated to June 1, 2010, and, if so, what
the interest rate should be.
Respectfully submitted this 27th day of March 2013.
E. WALKER
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF ORDER NO. 32758-4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 27th day of March 2013 I served a true and
correct copy of IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF
ORDER NO. 32758 upon the following named parties by the method indicated below,
and addressed to the following:
X Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email kris.sasser(Duc.idaho.gov
Hand Delivered
X U.S.Mail
Overnight Mail
FAX
X Email mcc(ciivenspurslev.com
cllvw~±SCA'cTf 47f-
Christa Bearry, Legal Assistant (j
Commission Staff
Kristine Sasser
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
Tamarack Energy Partnership
Michael C. Creamer
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF ORDER NO. 32758-5