20140909notice_of_proposed_settlement_order_no_33123.pdf

Office of the Secretary
Service Date
September 9,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-14-14
COMPANY’S APPLICATION TO EXTEND )
ITS ACCUMULATED DEFERRED )NOTICE OF
INVESTMENT TAX CREDITS/REVENUE )PROPOSED SETTLEMENT
SHARING MECHANISM BEYOND 2014 )
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33123
On May 30,2014,Idaho Power Company applied to the Idaho Public Utilities
Commission for an Order authorizing the Company to extend its Accumulated Deferred
Investment Credits/Revenue Sharing Mechanism beyond 2014.With this Order,the
Commission notifies interested persons that a proposed settlement has been filed in this case,
summarizes the proposed settlement,and requests that interested persons submit written
comments about the case and the proposed settlement by September 29,2014.
BACKROUND
In Order No,32424,the Commission approved a settlement stipulation (2011
Stipulation)under which Idaho Power Company is authorized to either:(1)amortize additional
Accumulated Deferred Investment Tax Credits (“ADITC”),or (2)share a portion of its revenues
with its Idaho customers.The 2011 Stipulation is set to expire at the end of 2014.See Order No.
32424.
On May 30,2014,the Company applied to the Commission for an Order authorizing
the Company to extend the terms of the 2011 Stipulation beyond 2014 and until the Company
has accelerated the amortization of $45 million in ADITC or the Commission otherwise modifies
or terminates the 2011 Stipulation’s terms.On June 12,2014,the Commission issued a Notice
of Application and set a 14-day intervention deadline.See Order No.33057.The Idaho
Irrigation Pumpers Association and Industrial Customers of Idaho Power then intervened in the
case,and settlement discussions ensued between the intervenors,the Company,and Commission
Staff.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33123
NOTICE OF PROPOSEI)SETTLEMENT
YO[ARE HEREBY NOTIFIED that on September 3.2014.the Company filed a
Settlement Stipulation signed h all parties.and a \iotion that asks the Commission to approve
the proposed settlement .See Motion for Approval of Stipulation.All parties.including
Commission Staff.agree that the proposed settlement is fair.just and reasonable and that the
Commission should accept it in the public interest.The terms of the proposed settlement are.in
summary:
Revenue Sharing.If the Company’s actual Idaho jurisdictional annual Return on
Equity (ROE”)exceeds 10%during the 2015-2019 period,all amounts in excess of a 10%ROE
and up to and including a 10.5%ROE would he shared between the Company’s Idaho customers
and the Company on a 75%and 25%basis.respectively.The customers’share of the Companvs
Idaho jurisdictional earnings between a 10%ROE and up through a 10.5%ROE will he provided
as a rate reduction to become effective at the time of the subsequent year’s power cost
adjustment.If the Company’s actual earned,year—end ROE for the Idaho jurisdiction in any year
between 2015-2019 exceeds 10.5%.all amounts in excess of the 10.5%ROE will be shared 50%
with Idaho customers as a rate reduction to become effective at the time of the subsequent year’s
power cost adjustment.25%with Idaho customers in the form of an offset to amounts in the
Company’s pension balancing account to reduce the amount that would otherwise need to he
collected in rates.and 25%with the Company.
2.ADITC Amortization.The Company may extend its ability to amortize a total of
$45 million of additional ADITC through December 31.2019.to allow the Company to achieve
a maximum actual ROE of 9.5%for the Idaho jurisdiction.The Compan may use up to $25
million of additional amortization of ADITC in each of 2015-2019 so long as the total,
cumulative amount of ADITC used during the five-year period does not exceed $45 million.If
the Company amortizes in 2014 a portion of the $45 million previously authorized by Order No.
32424.the amount of ADTTC available for amortization in the 2015-2019 period will be reduced
by a corresponding amount.Once the Company has fully amortized the $45 million of ADITC,
revenue sharing as provided in the 2014 Stipulation will cease for the rest of the 2015-2019
period.
3.Change in ROE.If the Commission authorizes a change to the Company’s
allowed ROE as part of a general rate case proceeding in which the Company seeks a rate change
NOTICE OF PROPOSED SETTLEMENT
NOTICEOF MODIFIED PROCEDURE
ORDER NO.33123
to become effective before January 1 .2020.the ROE thresholds will automatically he adjusted
proportionately on a prospective basis from the date that the newly authorized rates become
e iTective.
4.Staff Audit.The Company will continue to make its year-end earnings results
available for audit by the Commission Staff after the tiling of the Company’s and IDACORP.
Inc.’s annual report on Form 10-K with the U.S.Securities and Exchange Commission,which is
required to be filed within 60 days after the end of each fiscal year.Staff will audit the
Company’s earnings and prepare a write-up of its findings for review by the parties during the
Company’s annual power cost adjustment case.
YOU ARE FURTHER NOTIFIED that documents filed in this case,including Idaho
Power’s Application,Idaho Power’s Motion to Approve Settlement Stipulation,and the
Settlement Stipulation.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 wyvgc.idaho.g.Click on the “File Room”tab at the top of the page,scroll down
to Electric Cases”and then click on the case number as shown on the front of this document.
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,including without
limitation Idaho (‘ode §61-501.61-502.and 61-503.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 31.01.01.000 et seq.
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 (that is.persons will present their views through written comments)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 in this
matter must file a written comment in support or opposition with the Commission by
September 29,2014.The comment must contain a statement of reasons supporting the
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33123 3
comment.Persons desiring a hearing must specifically request a hearing in their written
comments and explain why they believe that Modified Procedure should not be used to process
this case.
YOU ARE FURTHER NOTIFIED that written comments concernirn this matter
shall he mailed to the Commission and Idaho Power at the addresses reflected below:
Commission Secretary Lisa D.Nordstrom
Idaho Public Utilities Commission Regulatory Dockets
P0 Box 83720 Idaho Power Company
Boise.ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:lnordstrom(didahopower.com
docketsidahopower.corn
472 W.Washington Street
Boise,ID 83702-5918 Timothy E.Tatum
Idaho Power Company
P0 Box 70
Boise.ID 83 707-0070
E—mail:ttatum1idahopower.corn
The 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 “Utility Case Comment or
Question Form”under the ‘Consumers”tab,and complete the form using the case number as it
appears on the front of this document.These comments must also be sent to the Company at the
e-mail addresses listed above.
YOU ARE FURTHER 0TIFIED 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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons shall have until September 29,2014 to file written comments.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33123 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2014.
ATTEST:
‘
MACK A.REDFOaD COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
—_/U-
Jean D.Jewel!f
Commission Secretary
0:IPC-E-14-I 4kk2
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
PAUL PRESIDENT
ORDERNO.33123