20130513final_order_no_32808.pdf

Office of the Secretary
Service Date
May 13, 2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TARIFF ADVICE NO. )
12-13 OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-12-28
AUTHORITY TO UPDATE SCHEDULE 89. )
) ORDER NO. 32808
On November 28, 2012, Idaho Power Company filed Tariff Advice No. 12-13 with
the Commission seeking authority to update Schedule 89 with a backdated effective date of
January 1, 2012. Staff recommended the tariff advice be suspended and the case be processed by
Modified Procedure. See IPUC Rule of Procedure 134.02 (a "tariff advice not suspended or
approved goes into effect thirty (30) days after filing or on the proposed effective date,
whichever is later").
At the Commission's regularly scheduled December 17, 2012, Decision Meeting the
Commission suspended the tariff advice and determined the case should be processed by
Modified Procedure. On January 4, 2013, the Commission issued a Notice of Filing and Notice
of Modified Procedure and set comment and reply deadlines. Order No. 32708. On March 7,
2013, the Commission issued an Order approving the update to Idaho Power's Schedule 89 with
a backdated effective date of June 1, 2010. Order No. 32758.
On March 27, 2013, Idaho Power filed a Petition for Clarification with the
Commission regarding the payment of interest on the amounts payable to Schedule 89 customers
as a result of Order No. 32758. By this Order, we authorize the payment of interest on amounts
authorized by Order No. 32758 at a rate of one percent.
II,IuiJ
On November 28, 2012, Idaho Power filed Tariff Advice No. 12-13 with the
Commission seeking authorization to update its Schedule 89, Unit Avoided Energy Cost for
Cogeneration and Small Power Production. Based on previous Commission Orders, 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 (NP SE) change. Due to extenuating circumstances, Schedule
89 was not updated as part of the Company's original general rate case compliance filing on
December 30, 2011.
ORDER NO. 32808 1
Upon the Company's review of Schedule 89 and what triggers its update, the
Company concluded that, while the separate events of (1) an update to NPSE and (2) the
occurrence of a general rate case proceeding did not occur simultaneously as they had
historically, the combined effect of the consecutive occurrences of these individual events had
the same effect. The Company proposed to update Schedule 89 as if it were part of the
Company's original compliance filing on December 30, 2011, with a backdated effective date of
January 1, 2012.
On March 7, 2013, after reviewing the record, including the tariff advice and the
comments of interested parties, the Commission approved an update to Idaho Power's Schedule
89 with a backdated effective date of June 1, 2010. Order No. 32758. The Commission
recognized that, historically, updates of Schedule 89 were triggered by both (1) an update to
NPSE and (2) the occurrence of a general rate case proceeding. The Commission found that
Case No. IPC-E-09-30 amounted to the functional equivalent of a general rate case. Within the
context of that case, the Stipulation entered into by the parties and approved by the Commission
provided for an update to Idaho Power's NPSE. Consequently, IPC-E-09-30 should have
triggered an update to Schedule 89 that would have become effective on June 1, 2010. The
Commission also directed Idaho Power, on a prospective basis, to update its Schedule 89 each
time NPSE in base rates changes.
CLARIFICATION
On March 27, 2013, pursuant to Rule 325 of the Commission's Rules of Procedure,
Idaho Power filed a Petition for Clarification. Idaho Power seeks clarification as to whether the
Commission intended Idaho Power to pay interest on the amounts authorized by Order No.
32758 for rates backdated to June 1, 2010.
Idaho Power notes that, if the Commission determines interest is appropriate, the
current customer deposit rate is one percent. Order No. 32684; IDAPA 31.21.01.106. Idaho
Power states that it intends to issue payments, without interest, through its normal weekly
payment process once Order No. 32758 becomes final and not subject to reconsideration. The
Company indicates that it will pay any award of interest separately.
Tamarack Energy Partnership (Tamarack) filed a response to Idaho Power's Petition
for Clarification on March 29, 2013. Tamarack maintains that payment of interest in this case is
appropriate based on "the incremental benefit accruing to the party that held funds belonging to
ORDER NO. 32808 2
another. . . ." Response at 3. Tamarack supports interest paid at the rate currently authorized for
customer deposits. See IDAPA 31.21.01.106.
FINDINGS AND CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power, an electric
utility, pursuant to the authority granted by Title 61 of the Idaho Code and the Commission's
Rules of Procedure, IDAPA 31.01.01.000. Rule 325 provides in pertinent part, "Any person may
petition to clarify any order, whether interlocutory or final." IDAPA 3 1.01.01.325. Idaho Power
filed for clarification of Commission Order No. 32758 after a Schedule 89 customer affected by
the Commission's Order requested interest in addition to the amounts authorized by the
backdated update to Schedule 89. Petition at 3.
After reviewing the underlying record, Idaho Power's request for clarification and
Tamarack's response, we find it just and reasonable for Idaho Power to pay interest on the
amounts authorized by Order No. 32758 at a rate of one percent. As enumerated by Idaho Power
in its Petition, the customer deposit rate authorized by the Commission pursuant to Utility
Customer Relations Rule 106, IDAPA 31.21.01.106, is the interest rate most commonly utilized
by this Commission in proceedings involving customer refunds and deferred accounts. This
interest rate is currently set at one percent. See Order No. 32684. Moreover, such an approach
appears agreeable to the parties. Consequently, we direct Idaho Power to pay interest on the
amounts authorized by Order No. 32758 at a rate of one percent.
ORDER
IT IS HEREBY ORDERED that Idaho Power pay interest on the amounts authorized
by Order No. 32758 at a rate of one percent.
THIS IS AN ORDER ISSUED TO CLARIFY A FINAL ORDER. Pursuant to Rule
325 of the Commission's Rules of Procedure, IDAPA 31.01.01.325, this Order does not suspend
or toll the time for the filing of a petition for reconsideration. See Idaho Code § 61-626.
ORDER NO. 32808 3
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 13
day of May 2013.
vfxa00-
PAUL , PRESIDENT
MACK A. REDFORD,V4ISSIONER
MARSHA H. SMITH, COMMISSIONER
ATTEST:
ommission Secretary
O:JPC-E- 12-28 ks3 Clarification
ORDER NO. 32808