20130315Direct Z. Harris.pdf

201 -3 MA 15 Pt(i2:3
OAHJ) PUGUC UTIUTk; COMMISSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT FIXED COST
ADJUSTMENT ("FCA") RATES FOR ) CASE NO. IPC-E-13-06
ELECTRIC SERVICE FROM JUNE 1,
2013, THROUGH MAY 31, 2014.
IDAHO POWER COMPANY
DIRECT TESTIMONY
OF
ZACHARY L. HARRIS

1 Q. Please state your name and business address.

2 A. My name is Zachary L. Harris and my business
3 address is 1221 West Idaho Street, Boise, Idaho 83702.

4 Q. By whom are you employed and in what capacity?

5 A. I am employed by Idaho Power Company ("Idaho
6 Power" or "Company") as a Regulatory Analyst in the
7 Regulatory Affairs Department.

8 Q. Please describe your educational background.

9 A. In December of 2008, I received a Bachelor of
10 Science degree in Accounting from Brigham Young University-
11 Hawaii. In December of 2011, I received a Master of
12 Science degree in Accounting from Boise State University.
13 After becoming employed by Idaho Power in May 2011, I
14 attended the electric utility ratemaking course offered
15 through New Mexico State University's Center for Public
16 Utilities. I also attended the "Cost-of-Service Concepts
17 and Techniques," as well as the "Rate Design for Electric
18 Utilities" courses offered by Electric Utility Consultants,

19 Inc. in 2012.

20 Q. What is the purpose of your testimony?

21 A. The purpose of my testimony is to describe the
22 Company's request to implement its annual Fixed Cost
23 Adjustment ("FCA") rates per Idaho Public Utilities
24 Commission ("Commission") Order No. 32505 (Case No. IPC-E-
25 11-19), which approved the FCA as a permanent program for
Harris, DI 1
Idaho Power Company
1 the Residential and Small General Service customers. The
2 Commission's subsequent Order No. 32731 in that case
3 directed that the FCA mechanism continue with its existing
4 methodology.
5 Specifically, my testimony will discuss three areas
6 related to the FCA mechanism and Schedule 54, Fixed Cost
7 Adjustment First, I will briefly discuss the FCA
B mechanism itself and how the FCA amount is determined.
9 Second, I will describe the determination of the 2012 FCA
10 amount Lastly, I will discuss the calculation of the FCA
11 rates the Company is proposing to go into effect on June 1,
12 2013
13 I. FIXED COST ADJUSTMENT MECHANISM
14 Q What is the purpose of the FCA mechanism'
15 A. The FCA is a true-up mechanism that
16 "decouples," or separates, energy sales from revenue in
17 order to remove the financial disincentive that exists when
18 the Company invests in demand-side management resources.
19 Under the FCA, rates for Residential Service (Schedules 1,
20 3, 4, and 5) and Small General Service (Schedule 7)
21 customers are adjusted annually to recover or refund the
22 difference between the level of fixed costs authorized by
23 the Commission in the Company's most recent general rate
24 case and the level of fixed costs that the Company actually
25
Harris, DI 2
Idaho Power Company
1 received through energy sales during the previous calendar
2 year.

3 Q. Please describe the FCA mechanism.

4 A. For both the Residential and Small General
5 Service classes, the FCA mechanism is the same. The
6 formula used to determine the FCA amount is:

7 FCA = (CUST X FCC) - (NORM X FCE)

8 Where:

9 FCA = Fixed Cost Adjustment;

10 CUST = Average Number of Customers, by class;

11 FCC = Fixed Cost per Customer rate, by class;

12 NORM = Weather-Normalized Energy, by class; and

13 FCE = Fixed Cost per Energy rate, by class.

14
Q. How is the FCA amount determined?

15 A. The FCA amount is the difference between the
16 Company's "authorized fixed cost recovery" (CUST X FCC) and
17 the "actual fixed cost recovery" (NORM X FCE). The
18 "authorized fixed cost recovery" is determined by
19 multiplying the average number of customers for the
20 previous calendar year by the FCC rate established as a
21 result of the outcome in the Company's most recent general
22 rate case proceeding in which the FCC rate was set. The
23 "actual fixed cost recovery" is determined by multiplying
24 the weather-normalized energy sales for the previous
25
Harris, DI 3
Idaho Power Company
1 calendar year by the FCE rate The FCE rate was also
2 established in the Company's most recent general rate case.

3 Q. Can the FCA true-up amount be either positive
4 or negative?

5 A Yes The FCA can be either positive or

6 negative If the FCA was positive, that would indicate the
7 Company's authorized fixed cost recovery amount was greater
8 than the fixed costs actually recovered through the energy
9 rate. This would stem from the fact that the growth rate
10 in weather-normalized energy was less than the growth rate
11 in customers, i.e., the use per customer had decreased.
12 The effect would be that the Company had under-collected
13 its authorized level of fixed costs. In a similar fashion,
14 if the FCA was negative, that would indicate that the
15 Company's authorized fixed cost recovery amount was less
16 than the fixed costs actually recovered through the energy
17 rate and would result in a refund of the adjustment.
18 II FCA DETERMINATION FOR CALENDAR YEAR 2012

19 Q. Did the rates for the FCC and FCE change in

20 2012?

21 A Yes As stated above, the FCA mechanism is
22 intended to recover the difference between the level of
23 fixed costs authorized by the Commission in the Company's
24 most recent general rate case and the level of fixed costs
25 actually recovered through rates. The Company recently
Harris, DI 4
Idaho Power Company
1 completed a general rate case, Case No. IPC-E-11-08, with
2 an effective date of January 1, 2012 (Order No. 32426)
3 The FCC and FCE rates were determined in that case and
4 updated for this filing.
5 The FCC and FCE rates that were used for the months
6 of January through December 2012 are consistent with the
7 revenue requirement established in Case No. IPC-E--11-08.
8
Q. What were the monthly FCC rates used for
9 reporting purposes during the 2012 calendar year of the
10 FCA?
11 A. Exhibit No. 1 shows the monthly FCC rates used
12 for January through December reporting in 2012. For the
13 Residential class, the monthly FCC rate was $54.22 per
14 customer and for the Small General Service class, the
15 monthly FCC rate was $30.05.
16
Q. What were the monthly FCE rates used for
17 reporting purposes during the 2012 calendar year of the
18 FCA?
19 A. Exhibit No. 1 details the Residential and
20 Small General Service monthly "shaped" FCE rates that were
21 used for monthly reporting purposes January through
22 December of 2012.
23
Q. Why are "shaped" FCE rates used for reporting
24 purposes?
25
Harris, DI 5
Idaho Power Company

1 A. The FCE rates are shaped based on monthly
2 weather-normalized energy sales to better match cause and
3 effect for accounting purposes so that the Company can
4 adhere to Generally Accepted Accounting Principles and
5 better estimate the financial impacts of the FCA
6 calculation at year-end. The ultimate FCA is determined
7 annually but is recorded to Company accounts on a monthly
8 basis. The monthly accounting is similar to the Power Cost
9 Adjustment ("PCA") accounting practices

10 Q. Has the Company been periodically reporting
11 the balance of the FCA amount to the Commission?

12 A. Yes. Since 2009, the Company has continued to
13 report the monthly FCA deferral balance in the monthly FCA
14 report provided to the Commission. Exhibit No. 2 is a copy
15 of the monthly FCA Report for calendar year 2012. The
16 total combined unadjusted monthly FCA balance of
17 $8,830,217.50 is shown on line 32, column 0, of this
18 exhibit.

19 Q. What are the monthly unadjusted FCA balances
20 for calendar year 2012 for both the Residential and Small
21 General Service classes?

22 A. Exhibit No. 2 shows the derivation of the
23 $8,830,217.50 combined FCA for January 2012 through
24 December 2012. This amount includes $8,289,514.68 (line
25 15, column 0) as the accumulated balance for the
Harris, DI 6
Idaho Power Company
1 Residential FCA and $540,702.82 (line 29, column 0) as the
2 accumulated balance for the Small General Service FCA.
3 Both amounts include interest calculated through December
4 2012.
5
Q. Were any adjustments made to these amounts
6 once the Company's financial books were closed at year-end
7 2012?
8 A. Yes. When the Company's financial books were
9 closed at year-end, the actual average customer count and
10 actual weather-normalized energy sales were determined.
11 Once these were determined, the "authorized fixed cost
12 recovery" (average customer count X FCC) and the "actual
13 fixed cost recovered" (weather-normalized energy X FCE)
14 could be calculated.
15 The difference between this year-end determination
16 of the FCA balances and the sum of the 12 monthly reported
17 estimates of the FCA balances required adjustments to
18 arrive at the annual FCA amount.
19 Q. What were the adjustments made to the
20 Residential and Small General Service FCA balances?
21 A. The Company recorded adjustments to the
22 Residential and Small General Service FCA balances in the
23 month of January 2013. For the Residential class, an
24 adjustment of an additional $38,911.80 was made to the
25 monthly deferral calculation in January (Exhibit No. 3,
Harris, DI 7
Idaho Power Company
1 line 6, column 0), not including interest. For the Small
2 General Service class, a negative adjustment of $9,525.55
3 was made to the monthly deferral calculation in January

4 (Exhibit No. 3, line 20, column 0), not including interest.
5 Exhibit No. 4 shows the calculation of the FCA balances for
6 the Residential and Small General Service customer classes
7 for 2012 prior to adjustments being made, and not including
8 interest.
9 Q. What is the total amount of the FCA, including
10 interest, the Company is requesting to implement in rates

:ii on June 1, 2013?

12 A. Exhibit No. 3 shows the FCA balances and
13 adjustments, plus interest calculated through May 2013.
14 The total amount of the FCA the Company is requesting to
15 implement in rates on June 1, 2013, is $8,896,361.65
16 reflected on line 32, column T, of Exhibit No. 3. The FCA
17 for the Residential class shows $8,362,974.20 reflected on
18 line 15, column T, of Exhibit No. 3. For the Small General
19 Service class, an additional $533,387.45 will need to be
20 recovered as part of the FCA true-up mechanism. This
21 amount is reflected on line 29, column T, of Exhibit No. 3.

22
Q. What is the significance of these numbers with
23 respect to the Company's recovery of its fixed costs?

24 A. Because the Residential FCA is a positive
25 number, it means that the average use per customer
Harris, DI 8
Idaho Power Company
1 decreased from the level established in Case No. IPC-E-11-
2 08. Therefore, the Residential class will receive an
3 adjustment to allow for recovery of the fixed costs that
4 were not collected through the energy charges during the
5 year. The same holds true for the Small General Service
6 class, meaning that the use per customer for this class has
7 also decreased based on the level assumed in Case No. IPC-
8 E-11-08, and the Company has under-collected its authorized
9 level of fixed costs for the Small General Service class.
10 III. CALCULATION OF THE FIXED COST ADJUSTMENT RATE
11 Q. Please describe the calculation of the FCA
12 rates the Company is proposing to go into effect on June 1,
13 2013.
14 A. The FCA rates the Company proposes to go into
15 effect on June 1, 2013, were calculated by taking the FCA
16 balances for each class described above and dividing by the
17 respective weather-normalized energy sales forecast for the
18 June 1, 2013, through May 31, 2014, timeframe ("test
19 year") . This is the same period as the PCA test year.
20 Q. What has the Company determined the test year
21 weather-normalized energy sales to be for both the
22 Residential and Small General Service classes?
23 A. The Company's test year weather-normalized
24 energy sales is 4,843,909,254 kilowatt-hours ("kWh") for
25
Harris, DI 9
Idaho Power Company
1 the Residential class and 143,366,943 kWh for the Small
2 General Service class.
3 Q. What are the corresponding FCA rates for the
4 Residential and Small General Service classes based on a
5 combined and equal FCA rate change
6 A In Order No 32505, the Commission ordered
7 that the FCA deferral balance will be recovered or refunded
8 equally between the Residential and Small General Service
9 customer classes. Because the Residential and Small
10 General Service classes reduced their energy consumption
11 per customer and thereby the Company under-collected its
12 authorized level of fixed costs as established in Case No.
13 IPC-E-11-08, each class requires a rate surcharge in order
14 to recover the authorized level of fixed costs. The
15 Residential class has a calculated FCA balance of
16 $8,362,974.20, while the Small General Service class has a
17 calculated FCA balance of $533,387.45. The total FCA
18 balance of $8,896,361.65 is 2.12 percent above current base
19 rates for the applicable customer classes.
20 To collect 2.12 percent above the current base rates
21 for each customer class, the FCA rate for the Residential
22 class is 0.1770 cents per kWh and the corresponding rate
23 for the Small General Service class is 0.2262 cents per
24 kWh.
25
Harris, DI 10
Idaho Power Company
1 Q. What is the difference between the current FCA
2 deferral balance and the proposed FCA deferral balance?

3 A. In Order No. 32544, the Commission approved
4 the net FCA deferral balance of $10,315,927 with rates
5 based on that balance effective for the period June 1,
6 2012, through May 31, 2013. In this filing, the Company is
7 proposing to collect rates based on an FCA deferral balance
8 of $8,896,362, which would collect $1,419,565 less than the
9 current FCA deferral balance. This represents a 13.76
10 percent decrease below the current FCA deferral balance.

11 Q. What is the percentage change in billed
12 revenue as measured from total billed amounts currently
13 recovered from Residential and Small General Service
14 customers, including the current FCA?

15 A. The total FCA deferral balance of
16 $8,896,361.65 the Company is proposing to collect through
17 the FCA rates effective June 1, 2013, through May 31, 2014,
18 is $1,299,410 less than the amount the current FCA rates
19 are collecting based on the Company's test year weather-
20 normalized energy sales, reflecting a decrease in total
21 test year billed revenue for the affected customer classes
22 of 0.30 percent.

23 Q. If Idaho Power under-collected its authorized
24 level of fixed costs, why is the Company proposing a net
25 decrease in the FCA rates?
Harris, DI 11
Idaho Power Company

1 A. As explained previously, the current FCA rates
2 were approved by the Commission to collect $10.3 million.
3 While the Company under-collected its authorized level of
4 fixed costs, the proposed FCA deferral balance of $8.9
5 million leads to an incremental decrease and a rate
6 reduction for the Residential and Small General Service
7 customer classes. The rate reduction would result in a
8 decrease in total test year billed revenue for the affected
9 customer classes of 0.30 percent.

10 Q How will the Company incorporate the FCA
11 surcharges for the Residential and Small General Service
12 classes on customers' bills?

13 A. The Company proposes to continue including the
14 FCA with the Annual Adjustment Mechanism Charge on
15 Residential and Small General Service customers' bills.

16 Q. Does this complete your testimony?

17 A. Yes, it does.
18
19
20
21
22
23
24
25
Harris, DI 12
Idaho Power Company
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-13-06
IDAHO POWER COMPANY
HARRIS, DI
TESTIMONY
EXHIBIT NO. 1
Idaho Power Company
FCC & FCE Rates Based on IPC-E-1 1-08 Final Order No. 32426
Used for Monthly Reporting for 2012
Authorized Fixed Cost Recovery
Number of Customers
Residential Small General Service
$258,560,620 $10,222,650
397,403 28,351
Residential Small General Service
FCC Energy FCE FCC Energy FCE
577,646,145 54

$21 546 779 15424 688 $851,890
522,161,703 $OO426* $21546481 *54i22

14152968 ________ $851881
450,746,976 $21,546,607
22
12,918,626 _______ $851,893
390,151,410 O822 $21546892 JO5 11,890,363 $851885
320,214,459 $OO675 $21546591 :: 10,194,453 $851889
321415996 $21546764 11007233 $851883
377235,622 $21,546,567 12,177,054 ______ $851,882
447,572,666 1OO484 $21,546,596 12,948,452 $851,892
398,463,607 $21,546,521 $&2

12431 142 $851,881
$54!22 332401 018 O.O€4$2t $21,546,566 OO5 11,128,839 $dOt548 $851,890
$M22. 374451 248 $542 $21 546674 $3O 10963362 $851,886
*8422 498215760 $21 546835 13709490 $851,894
5,010,676,610 $258,559,873 148,946,670 $10,222,646
($747) ($4)
January
February
March
April
May
June
July
August
September
October
November
December
Total
Difference
Annual FCC and FCE
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-13-06
IDAHO POWER COMPANY
HARRIS, DI
TESTIMONY
EXHIBIT NO. 2
Idaho Power Company
Monthly FCA Report for 2012
January 2012- December 2012
- A B C D E F G H
:i Fixed Cost Adjustment January February March April May June
2 for the year ended December 31, 2012
3
4 Residential FCA:
5 Beginning Balance $ 1,193,388.67 1,205,668.28 853,300.15 956,083.03 1,081,252.24
6 l Amount Deferred $ 119338667 12281.61 (352368.13) 102782.88 125,169.21 732082.96
7 lEnding Balance $ 1193,386.67 1205,668.28 853,300.15 956,083.03 1,081,252.24 1,813,335.20
8
9 Interest: ___ _______________
10 Accrual thru Prior Month $ - - 994.49 1,999.21 2,710.29 3,507.03
11 Annual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
12 Monthly Interest Inc/(Exp) $ - 994.49 1,004.72 711.08 796.74 901.04
13 InterestAccrued todate $ - 994.49 1,999.21 2,710.29 3,507.03 4,408.07
14
15 1 Total Residential FCA: 1,193,386.67 1,206,662.77 855,299.36 958,793.32 1,084,759.27 1,817,743.27
16
17
18 Small General Service FCA:
19 Beginning Balance $ - 58,610.21 62,827.54 93,771.11 179,097.76 249,918.89
20 Amount Deferred $ 58,61011 4,217.33 30,943.57 85,326.65 70,821.13 68,848.68
21 Ending Balance $ 58,610.21 62,827.54 93,771.11 179,097.76 249,918.89 318,767.57
22
23 interest: __ _______________
24 Accrual thru Prior Month $ - - 48.84 101.20 179.34 328.59
25 lAnnual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
26 IMonthly Interest lricl(Exp) $ - 48.84 52.36 78.14 149.25 208.27
27 1 Interest Accrued todate $ - 48.84 101.20 179.34 328.59 536.86
28
29 Total Small General Service FCA: 58,610.21 62,876.38 93,872.31 179,277.10 250,247.48 319,304.43
30
31
32 Total Fixed Cost Adjustment $ 1251,996.88 1269,539.15 949,171.67 1,138,070.42 1,335,006.75 2,137,047.70
35
36
37 Entries:
38 599 X00001 999 182302 (254302) 1,251,996.88 17,542.27 (320,367.48) 188,898.75 196,936.33 802,040.95
39 599 X00001 999 440301 (1,193,386.67) (12,281.61) 352,368.13 (102,782.88) (125,169.21) (732,082.96)
40 599 X00001 999 442301 (58,610.21) (4,217.33) (30,943.57) (85,326.65) (70,821.13) (68,848.68)
41 599 X00001 999 421006 (431013) - (1,043.33) (1,057.08) (789.22) (945.99) (1,109.31)
42
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Idaho Power Company
Monthly FCA Report for 2012
January 2012 - December 2012
- A B I J K L M N 0
:1 Fixed Cost Adjustment July August September October November December Total
•2 for the year ended December 31 , 2012
3
4 Residential FCA:
5 Beginning Balance $ 1,813,335.20 3,051,733.71 4,620,949.97 5,885,186.95 7,014,131.50 7,355,400.09
6 lAmount Deferred $ 1 1,238,39851 1,569216.26 1,264,236.98 1,128,944.55 341,268.59 904,922.58 8,260,322.67
7 lEnding Balance $ 3,051,733.71 4,620,949.97 5,885,186.95 7,014,131.50 7,355,400.09 8,260,322.67
8 1
9 nterest:
10 Accrual thru Prior Month $ 4,408.07 5,919.18 8,462.29 12,313.08 17,217.40 23,062.51
11 Annual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
12 Monthly Interest Inc/(Exp) $ 1,511.11 2,543.11 3,850.79 4,904.32 5,845.11 6,129.50 29,192.01
13 InterestAccrued todate $ 5,919.18 8,462.29 12,313.08 17,217.40 23,062.51 29,192.01
14
15 Total Residential FCA: 3,057,652.89 41629,412.26 5,897,500.03 7,031,348.90 7,378,462.60 8,289,514.68 8,289,514.68
16
17
18 Small General Service FCA:
19 Beginning Balance $ 318,767.57 377,430.05 416,270.27 443,751.90 489,981.00 479,555.02
20 Amount Deferred $ 58,662.48 38,840.22 27,481,63 46,229.10 (10,425.98' 58,506.14 538,061.16
21 Ending Balance $ 377,430.05 416,270.27 443,751.90 489,981.00 479,555.02 538,061.16
22
23 Interest:
24 Accrual thru Prior Month $ 536.86 802.50 1,117.03 1,463.92 1,833.71 2,242.03
25 lAnnual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
26 IMonthly Interest Inc/(Exp) $ 265.64 314.53 346.89 369.79 408.32 399.63 2,641.66
27 1 InterestAccrued todate $ 802.50 1,117.03 1,463.92 1,833.71 2,242.03 2,641.66
28
29 Total Small General Service FCA: 378,232.55 417,387.30 445,215.82 491,814.71 481,797.05 540,702.82 540,702.82
30
31
32 Total Fixed Cost Adjustment $ 3,435,885.44 5,046,799.56 6,342,715.85 7,523,163.61 7,860,259.65 8,830,217.50 8,830,217.50
35
36
37 Entries:
38 599 X00001 999 182302 (254302) 1,298,837.74 1,610,914.12 1,295,916.29 1,180,447.76 337,096.04 969,957.85 8,830,217.50
39 599 X00001 999 440301 (1,238,398.51) (1,569,216.26) (1,264,236.98) (1,128,944.55) (341,268.59) (904,922.58) (8,260,322.67)
40 599 X00001 999442301 (58,662.48) (38,840.22) (27,481.63) (46,229.10) 10,425.98 (58,506.14) (538,061.16)
41 599 X00001 999 421006 (431013) (1,776.75) (2,857.84) (4,197.68) (5,274.11) (6,253.43) (6,529.13) (31,833.67)
42
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-13-06
IDAHO POWER COMPANY
HARRIS, DI
TESTIMONY
EXHIBIT NO. 3
Idaho Power Company
Monthly FCA Report for 2012
January 2012 - May 2013
- A B C D F F G H I J K
Fixed Cost Adjustment January February March April May June July August September
2 for the year ended December 31 , 2012
3
4 Residential FCA:
: Beginning Balance $ 1,193,386.67 1,205,668.28 853,300.15 956,083.03 1,081,252.24 1,813,335.20 3,051,733.71 4,620,949.97
•6 Amount Deferred $ 1,193,386.67 12,28161 (352,36813) 102,78288 125,16921 732,08296 1,238,398.51 1,569,216.26 1,264,236.98
7 Ending Balance $ 1,193,386.67 1,205,688.28 853,300.15 956,083.03 1,081,252.24 1,813,335.20 3,051,733.71 4,620,949.97 5,885,186.95
terest: ___ _________________
10 Accrual thru Prior Month $ - - 994.49 1,999.21 2,710.29 3,507.03 4,408.07 5,919.18 8,462.29
11 Annual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
12 Monthly interest lnc/(Exp) $ - 994.49 1,004.72 711.08 796.74 901.04 1,511.11 2,543.11 3,850.79
13 InterestAccrued todate $ - 994.49 1,999.21 2,710.29 3,507.03 4,408.07 5,919.18 8,462.29 12,313.08
14
15 Total Residential FCA: 1,193,386.67 11206,662.77 855,299.36 958,793.32 1,084,759.27 1,817,743.27 3,057,652.89 4,629,412.26 5,897,500.03
16
17
18 Small General Service FCA:
19 Beginning Balance $ - 58,610.21 82,827.54 93,771.11 179,097.76 249,918.89 318,767.57 377,430.05 416,270.27
20 Amount Deferred $ 58,610.21 4,217.33 30,943.57 85,326.65 70,821.13 68,848.68 58,662.48 38,840.22 27,481.63
21 Ending Balance $ 58,610.21 62,827.54 93,771.11 179,097.76 249,918.89 318,767.57 377,430.05 416,270.27 443,751.90
22
23 Interest:
24 Accrual thru Prior Month $ .. - 48.84 101.20 179.34 328.59 536.86 802.50 1,117.03
25 lAnnual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%1 1.0% 1.0% 1.0%
26 Monthly-Interest lnc/(Exp) $ - 48.84 52.36 78.14 149.25 208.27 265.64 314.53 346.89
27 InterestAccrued todate $ - 48.84 101.20 179.34 328.59 536.86 802.50 1,117.03 1,483.92
28
29 Total Small General Service FCA: 58,610.21 62,876.38 93,872.31 179,277.10 250,247.48 319,304.43 378,232.55 417,387.30 445,215.82
30
31
32 Total Fixed Cost Adjustment $ 1,251,996.88 1,269,539.15 949,171.67 1,138,070.42 1,335,006.75 2,137,047.70 3,435,885.44 5,046,799.56 6,342,715.85
35
36
37 Entries:
38 599X00001 999 182302 (254302) 1,251,996.88 17,542.27 (320,367.48) 188,898.75 196,936.33 802,040.95 1,298,837.74 1,610,914.12 1,295,916.29
39 599 X00001 999 440301 (1,193,386.67) (12,281.61) 352,368.13 (102,782.88) (125,169.21) (732,082.96) (1,238,398.51) (1,569,218.26) (1,264,236.98)
401 599 X00001 999 442301 (58,610.21) (4,217.33) (30,943.57) (85,326.65) (70,821.13) (68,848.68) (58,662.48) (38,840.22) (27,481.63)
41 599 X00001 999 421006 (431013) - (1,043.33) (1,057.08) (789.22) (945.99) (1,109.31) (1,776.75) (2,857.64) (4,197.68)
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Idaho Power Company
Monthly FCA Report for 2012
January 2012 - May 2013
- A B L M N 0 P 0 R S I T Fixed Cost Adjustment October November December January-13 February-13 March-13 April-13 May-13 Total
2 for the year ended December 31, 2012
3
4 Residential FCA:
5 Beginning Balance $ 5,885,186.95 7,014,131.50 7,355,400.09 8,260,322.67 8,299,234.47 8,299,234.47 8,299,234.47 8,299,234.47
6 lAmount Deferred $ 1 1,128944.55 341,268.59 904,922.58 38,911.80 0.00 0.00 0.00 0.00 8,299,234.47
7 Ending Balance $ 7,014,131.50 7,355,400.09 8,260,322.67 8,299,234.47 8,299,234.47 8,299,234.47 8,299,234.47 8,299,234.47
8
9 Interest:
10 Accrual thru Prior Month $ 12,313.08 17,217.40 23,062.51 29,192.01 36,075.61 42,991.64 49,907.67 56,823.70
11 Annual Interest Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
12 Monthly Interest inc/(Exp) $ 4,904.32 5,845.11 6,129.50 6,883.60 6,916.03 6,916.03 8,916.03 6,918.03 63,739.73
13 Interest Accrued todate $ 17,217.40 23,062.51 29,192.01 36,075.61 42,991.64 49,907.67 56,823.70 63,739.73
14
15 Total Residential FCA: 7,031,348.90 7,378,462.60 8,289,514.68 8,335,310.08 8,342,226.11 8,349,142.14 8,356,058.17 8,362,974.20 8,362,974.20
16
17
18 Small General Service FCA:
19 Beginning Balance $ 443,751.90 489,981.00 479,555.02 538,081.16 528,535.61 528,535.61 528,535.61 528,535.61
20 Amount Deferred $ 46,229.10 (10,425.98) 58,506.14 (9,525.55) 0.00 0.00 0.00 0.00 528,535.61
21 Ending Balance $ 489,981.00 479,555.02 538,061.16 528,535.61 528,535.61 528,535.61 528,535.61 528,535.61
22
23 Interest:
24 Accrual thru Prior Month $ 1,463.92 1,833.71 2,242.03 2,641.66 3,090.04 3,530.49 3,970.94 4,411.39
25 Annual Interest Rate - 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
26 Monthly Interest Inc/(Exp) $ 369.79 408.32 399.63 448.38 440.45 440.45 440.45 440.45 4,851.84
27 Interest Accrued todate $ 1,833.71 2,242.03 2,641.66 3,090.04 3,530.49 3,970.94 4,411.39 4,851.84
28
29 Total Small General Service FCA: 491,814.71 481,797.05 540,702.82 531,625.65 532,066.10 532,506.55 532,947.00 533,387.45 533,387.45
30
31
32 Total Fixed Cost Adjustment $ 7,523,163.61 7,860,259.65 8,830,217.50 8,866,935.73 8,874,292.21 8,881,648.69 8,889,005.17 8,896,361.65 8,896,361.65
35
36
37 Entries:
38 599 X00001 999 182302 (254302) 1,180,447.76 337,096.04 969,957.85 36,718.23 7,356.48 7,356.48 7,356.48 7,356.48 8,896,381.65
39 599 X00001 999 440301 (1,128,944.55) (341,268.59) (904,922.58) (38,911.80) - - - - (8,299,234.47)
40 599 X00001 999 442301 - (46,229.10) 42 10,5.98 (58,506.14) 9,525.55 - - - (528,535.61
41 599 X00001 999 421006 (431013) (5,274.11) (6,253.43) (6,529.13) (7,331.98) (7,356.48) (7,356
-
.48) (7,356.48) (7,356.48) (68,591.57)
42
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-13-06
IDAHO POWER COMPANY
HARRIS, DI
TESTIMONY
EXHIBIT NO. 4
Idaho Power Company
FCA Summary Calculations
2012
I Residential FCA Calculation I
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total
FCC $54.22 $54.22 $54.22 $54.22 $54.22 $54.22 $54.22 $54.22 $54.22 $54.22 $54.22 $54.22
CUST 402,233.0 398,822.0 398,246.2 398,447.8 398,546.9 399,459.3 400,003.1 400,170.3 400,760.1 401,356.8 402,175.9 402,373.8 Authorized Recovery$21,809,073.26 $21,624,128.84 $21,592,907.99 $21,603,840.26 $21,609,211.29 $21,658,682.70 $21,688,169.49 $21,697,231.50 $21,729,214.03 $21,761,564.83 $21,805,975.78 $21,816,707.54 $260,396,707.51

FCE $0037301 $0041264 $0047802 $0055227 $0067288 $0067037 $0057117 $0048141 $0054074 $0064821 $0057542 $0043248

NORM 552,684,555 523,754,698 459,014,406 389,321,480 319,284,896 312,164,920 358,030,717 418,105466 378,470,585 318,017,477 373,068,453 483.638,907 Actual Recovery . $20,615,686.59$21,612,213.86$21,941,806.64$21,501,057.38$21,484,042.08$20,926,599.74$20,449,640.46$20,128,015.24$20,465,418.41$20,614,210.88$21,467,104.92$20,916,415.45$252,122,211.65

Correction $0.00 ($366.63) $3,469.48 $0.00 $0.00 $0.00 $130.52 $0.00 ($441.36) $18,409.40 ($2,397.73) ($4,630.49) $14,173.19

Residential FCA $1,193,386.67 $12,281.61 ($352,368.13) $102,782.88 $125,169.21 $732,082.96 $1,238,398.51 $1,569,216.26 $1,264,236.98 $1,128,944.55 $341,268.59 $904,922.58 $8,260,322.67
I_SmallOeneral ServlceFCA Calculation
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total
FCC $30.05 $50.05 $30.05 $30.05 $30.05 $30.05 $30.05 $50.05 $50.05 $30.05 $30.05 $30.05
CUST 28,842.0 28,376.0 28,272.9 28,281.2 28,228.5 28,332.5 28,326.2 28,321.3 28,334.9 28,253.7 28,295.7 28,265.6
Authorized Recovery $566,702.10 $552,698.80 $649,599.20 $849,849.94 $548,266.24$851,392.29$851,201.89$851,055.91 $851,463.93$549,022.54 $850,286.03 $849,382.60$10,220,921.47

FCE $0055229 $0060191 $0065943 $0071645 $0083564 $0077393 $0069958 $0065791 $0068528 $0076548 $0077703 $0062139

NORM 14,631,659 14,096,683 12,407,582 10,670,993 9,303,589 10,111,297 11,328,676 12,345,392 12,024,186 10,485,087 11,076,947 12,728,655

Actual Recovery $808,091.89 $848,493.45 $818,193.18 $784,523.29 $777,445.11 $782,543.61 $792,531.52 $812,215.69 $823,993.42 $802,612.44 $860,712.01 $790,945.89 $9,682,301.50

Correction $0.00 ($11.98) $462.46 $0.00 $0.00 $0.00 $7.89 $0.00 ($11.12) $181.00 $0.00 ($69.43) $555.81

Small General Service FCA $58,610.21 $4,217.33 130,943.57 $85,326.65 $70,821.13 $68,848.68 $58,662.48 138840.22 $27,481.63 11146,229.10 ($10,425.98) $68,606.14 $538,061.16
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Combined FCA $1 1251,996.88 $16.498.94 ($321,424.56) $188,109.53 $195,990.34 $800,931.64 $1,297,060.99 $1,608,056.48 $1,261,718.61 $1,175,173.65 $330,842.61 $963,428.72 $8,798,383.83
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