20150326Stipulation & Motion.pdf

sIm.
AnloAcoRPoonEnY
Pl,l 3r S
LISA D. NORDSTROU
l-ead Gounael
lnordehom0idflhooower.com
March 26,2015
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-14-17
lnquiry lnto ldaho Power Company's Fixed Cost Adjustment - Settlement
Stipulation and Motion toApprove Settlement Stipulation
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and seven (7) copies of a
Settlement Stipulation and Motion to Approve Settlement Stipulation.
Very truly yours,
6^8,4^/tu
Lisa D. Nordstrom
LDN/KKI
Enclosures
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I no rdstrom @ ida hopower. com
Attorney for ldaho Power Company
IN THE MATTER OF COMMISSION
STAFF'S INQUIRY INTO IDAHO POWER
COMPANY'S FIXED COST ADJUSTMENT
MECHANISM
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CASE NO. tPC-E-14-17
SETTLEMENT STI PULATION AND
MOTION TO APPROVE
SETTLEMENT STIPULATION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ldaho Power Company ("ldaho Powe/' or "Company") requests that the ldaho
Public Utilities Commission ("Commission") approve the settlement stipulation
("Settlement Stipulation") contained in this filing. The Settlement Stipulation contains
the following provisions related to the Company's Fixed Cost Adjustment ("FCA"): (1)
the elimination of the weather normalization of energy sales used in the FCA deferral
calculation, (2) a request for clarification regarding the quantification of the FCA rate
cap, (3) an agreement that computational changes to the Fixed Cost per Energy ("FCE')
and Fixed Cost per Customer ("FCC") are better evaluated when base rates are reset,
and (4) an agreement to consider rate design modifications for residential and small
general service customers.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION . 1
The Settlement Stipulation is entered into between ldaho Power, Commission
Staff ("Staffl'), the ldaho Conservation League ("lCL"), and the Snake River Alliance
("SR4'1, hereafter jointly referred to as "Parties."1
I. INTRODUCTION AND MOTION
1. The terms and conditions of this Settlement Stipulation are set forth
herein. The Parties agree that this Settlement Stipulation represents a fair, just, and
reasonable compromise of the dispute(s) between the Parties, and that this Settlement
Stipulation is in the public interest. The Parties maintain that the Settlement Stipulation
as a whole and its acceptance by the Commission represent a reasonable resolution of
all issues between the Parties identified herein. Therefore, the Parties hereby
respectfully move the Commission, in accordance with RP 56 and RP 274-76, for an
order approving the Settlement Stipulation executed between the Parties and all of its
terms and conditions without material change or condition, and closing the current
proceeding.
II. BACKGROUND
2. On June 27, 2014, Commission Staff issued a Decision Memorandum
recommending the Commission initiate a case to investigate the Company's FCA, set a
14-day intervention deadline, and direct Staff to convene an informal prehearing
conference following the intervention deadline.
3. On July 1,2014, the Commission issued a Notice of lntervention Deadline
in Order No. 33068, setting forth a deadline for intervention 14 days from its issuance.
Petitions to lntervene were subsequently filed by lClP on July 3,2014, and by ICL and
1 The lndustrial Customers of ldaho Power ('lClP') has intervened in this case. lClP has advised the
Parties that the Stipulation does not directly affect it, and that lClP will, therefore, not sign it or support or
oppose its approval by the Commission.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 2
SFIA on July 15,2014, all of which were granted in Order Nos. 33074 and 33081,
respectively.
4. The Parties met on September 10,2014, October 16,2014, February 17,
2015, and March 11, 2015, for settlement discussions regarding the Company's FCA
mechanism. Based upon these settlement discussions, as a compromise of the
respective positions of the Parties, and for other considerations as set forth below, the
Parties agree to the following terms:
III. TERMS OF THE SETTLEMENT STIPULATION
5. Weather Normalization. The Parties agree that ldaho Power wil! modify
the quantification of the annual FCA deferral by replacing weather normalized billed
sales utilized in the current annual FCA determination with actual billed sales. The
Parties agree that this modification will occur with the determination of the year-end
2015 FCA defenal, impacting rates effective June 1,2016.
6. Rate Adiustment Cap. ln Order No. 30267, the Commission approved a
discretionary rate adjustment cap for annual FCA-related rate changes as follows: "The
FCA mechanism...incorporates a 3% cap on annual increases with carryover of
unrecovered deferred costs to subsequent years." Order No. 30267 at 13. The
Company's cunent methodology for determining the 3 percent cap is calculated using
the following equation:
(Proposed FCA Deferrat Change) / (Forecasted Base Rate Revenue2l
The Parties respectfully request that the Commission clarify that this computational
method of determining the 3 percent cap is appropriate.
2 Forecast reflects currently-approved base rates applied to forecasted usage for the subsequent June 1
through May 31 FCA rate-effective year.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 3
7. Fixed Cost per Enerov (FCE) and Fixed Cost oer Customer (FCC). The
Parties acknowledge that Staff has identified concerns surrounding the calculation of
the FCE and FCC, but agree that these issues are more effectively addressed when
base rates are reset.
8. Rate Desion. Absent the FCA, the Parties agree that cunent rate design
causes a financial disincentive for the Company to pursue all cost-effective demand-
side management. Consequently, the Parties agree to consider modified rate design for
residential and small general service customers. This may include, but is not limited to,
reduced energy charges, increased monthly service charges, and the introduction of
demand charges for these rate classes.
9. The Parties submit this Settlement Stipulation to the Commission and
recommend approval in its entirety pursuant to RP 274-76. The Parties shall support
this Settlement Stipulation before the Commission and shall not appeal a Commission
order approving the Settlement Stipulation or an issue resolved by the Settlement
Stipulation. lf this Settlement Stipulation is challenged by anyone who is not a party,
then each Party reserves the right to file testimony, cross-examine witnesses, and put
on such case as they deem appropriate to respond fully to the issues presented,
including the right to raise issues that are incorporated in the settlements embodied in
this Settlement Stipulation. Notwithstanding this reservation of rights, the Parties agree
that they will continue to support the Commission's adoption of the terms of this
Settlement Stipulation.
10. lf the Commission or any reviewing body on appeal rejects any part or all
of this Settlement Stipulation or imposes any additional material conditions on approval
of this Settlement Stipulation, then each Party reserves the right, upon written notice to
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 4
the Commission and the other Parties to this proceeding within 14 days of the date of
such action by the Commission, to withdraw from this Settlement Stipulation. In such
case, no Party shall be bound or prejudiced by the terms of this Settlement Stipulation
and each Party shall be entitled to seek reconsideration of the Commission's order, file
testimony as it chooses, cross-examine witnesses, and do al! other things necessary to
put on such case as it deems appropriate. ln such case, the Parties immediately will
request the prompt reconvening of a prehearing conference for purposes of establishing
a procedural schedule for the completion of Case No. IPC-E-14-17, and the Parties
agree to cooperate in development of a schedule that concludes the proceeding on the
earliest possible date, taking into account the needs of the Parties in participating in
hearings and preparing briefs.
11. The Parties agree that this Settlement Stipulation is in the public interest
and that all of its terms and conditions are fair, just, and reasonable.
12. No Party shall be bound, benefited, or prejudiced by any position asserted
in the negotiation of this Settlement Stipulation, except to the extent expressly stated
herein, nor shall this Settlement Stipulation be construed as a waiver of rights unless
such rights are expressly waived herein. Except as otherwise expressly provided for
herein, execution of this Settlement Stipulation shall not be deemed to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method,
theory, or principle of regulation or cost recovery. No Party shal! be deemed to have
agreed that any method, theory, or principle of regulation or cost recovery employed in
arriving at this Settlement Stipulation is appropriate for resolving any issues in any other
proceeding in the future. No findings of fact or conclusions of law other than those
stated herein shall be deemed to be implicit in this Settlement Stipulation. This
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 5
Settlement Stipulation sets forth the complete understanding of the Parties, and this
Settlement Stipulation includes no other promises, understandings, representations,
arrangements or agreements pertaining to the subject matter of this Settlement
Stipulation, or any other subject matter, not expressly contained herein.
13. The obligations of the Parties are subject to the Commission's approval of
this Settlement Stipulation in accordance with its terms and conditions and upon such
approval being upheld on appeal, if any, by a court of competent jurisdiction. All terms
and conditions of this Settlement Stipulation are subject to approval by the Commission,
and only after such approval, without material change or modification, has been
received shallthe Settlement Stipulation be valid.
14. This Settlement Stipulation may be executed in counterparts and each
signed counterpart shall constitute an original document.
IV. PROCEDURE
15. Pursuant to RP 274, the Commission has discretion to determine the
manner with which it considers a proposed settlement. !n this matter, the Parties have
reached agreement on a final resolution to this case. This Settlement Stipulation is
reasonable and in the public interest. Pursuant to RP 201, the Parties believe the public
interest does not require a hearing to consider the issues presented by this Motion and
request it be processed as expeditiously as possible by Modified Procedure with a 14-
day comment deadline, without waiving the right to a hearing on the previously disputed
matters in this proceeding should the Commission reject the settlement.
V. REQUESTED RELIEF
NOW, THEREFORE, the Parties respectfully request that the Commission
process this Settlement Stipulation using Modified Procedure with a '14-day comment
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION . 6
period and then enter its order approving the Settlement Stipulation without materia!
change or condition.
DATED this 26h day of March 2015.
ldaho Power Company
By
Commission Staff
Karl Klein
Attorney for IPUC Staff
ldaho Conservation League
Benjamin J. Otto
Attomey for ldaho Conservation League
By
Ken Miller
Snake River Alliance
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION . 7
Attorney for ldaho Power Company
period and then enter its order approving the Settlement Stipulation without material
change or condition.
DATED this 26h day of March 2015.
ldaho Power Company Commission Staff
H /1\
Lisa D. Nordstrom
Attorney for ldaho Power Company
Snake River Alliance
Ken Miller
Snake River Alliance
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 7
Karl Klein
Attorney for IPUC Staff
ldaho Conservation League
Benjamin J. Otto
Attorney for ldaho Conservation League
period and then enter its order approving the Settlement Stipulation without material
change or condition.
DATED this 26th day of March 2015.
ldaho Power Company Commission Staff
Lisa D. Nordstrom
Attorney for ldaho Power Company
Snake River Alliance
,r.,k*-?i
KCn Rliller
Snake River Alliance
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 7
Karl Klein
Attorney for IPUC Staff
ldaho Conservation League
Benjamin J. Otto
Attorney for ldaho Conservation League
esriod and thcn GrSr fre odor WmtirE *E Sotrlarncnt Sgpuffion wihsrt rdarid
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DATED Srb d dry of Mar& 20{6.
ldaho Fourcr Conpony eomn&oion $:tiff
Lhc D. Nordtfuonr
Aitorrmybrl&h PowtrrCorrymy
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SfiTLEMENT STIPUTATION AND MOTTON
TO APPROVE STTTTETIEHT $TIPULATIOS{ - 7
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 26b day of March 2015 I served a true and
conect copy of the SETTLEMENT STIPULATION AND MOTION TO APPROVE
SETTLEMENT STIPULATION upon the following named parties by the method
indicated below, and addressed to the following:
Gommission Staff
Kar! Klein
Deputy Attomey General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
lndustrial Gustomerc of ldaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, ldaho 83707
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street (83702)
P.O. Box 844
Boise, ldaho 83701
Snake River Alliance
Ken Miller
Snake River Alliance
P.O. Box 1731
Boise, ldaho 83701
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION . 8
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