20160330notice_of_application_order_no_33488.pdf

Office of the Secretary
Service Date
March 30,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-16-02
COMPANY’S APPLICATION FOR )
AUTHORITY TO IMPLEMENT FIXED )NOTICE OF APPLICATION
COST ADJUSTMENT RATES FOR )
ELECTRIC SERVICE FROM JUNE 1,2016 )NOTICE OF
THROUGH MAY 31,2017 )MODIFIED PROCEDURE
)
_____________________________
)ORDER NO.33488
On March 15,2016,Idaho Power Company filed an Application asking the
Commission for an Order authorizing collection of its Fixed Cost Adjustment (FCA)rates for
electric service from June 1,2016 through May 31,2017,and to approve changes to tariff
Schedule 54,Fixed Cost Adjustment.Idaho Power asks for an effective date of June 1,2016,
and requests that the Commission process the matter by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTiFIED that FCA is a rate adjustment mechanism.Using
traditional rate design,an electric utility recovers fixed costs1 through each kilowatt-hour (kWh)
sold,and is thus discouraged from reducing sales volume by investing in energy efficiency and
demand-side management (DSM).See Application at 2.The FCA separates or “decouples”
Idaho Power’s fixed-cost revenues from its volumetric energy sales.Id.at 3.This decoupling
enables the Company to recover its fixed costs to deliver energy —as set in its most recent
general rate case —even when energy sales and revenues have decreased.Order No.33295 at 1;
see Application at 3.
YOU ARE FURTHER NOTIFIED that Idaho Power’s FCA program was first
initiated in 2007 as a pilot program for residential service and small general service customers.
Application at 2.In 2012,the Commission approved the Company’s request to make the FCA a
permanent program.Order No.32505.In 2015,the Commission approved a settlement
stipulation that changed the FCA calculation methodology by replacing use of weather
“Fixed costs”are a utility’s costs to provide service that do not vary with energy use,output,or production,and
remain relatively stable between rate cases.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33488 1
normalized data with actual data.to ensure improved accuracy.Order No.33295 at 5:see
Application at 3.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes an FCA deferral
balance of $26.897.109 for the residential class,and $1,157,433 for the small general service
class,for a total of $28.054.5’2.Application at 4.The proposed FCA deferral balance is an
increase above the current FCA deferral balance collected in customers rates.Id.at 4-5.Idaho
Power proposes an FCA rate increase of 2.2%from billed revenue for residential and small
general service customers.Id.at 5.This equates to new FCA rates of 0.54 16 cents-per-kWh for
the residential class and 0.6875 cents-per-kWh for the small general service class.Id.
YOU ARE FURTHER NOTIFIED that Idaho Power states it will provide notice to its
customers as required by Rule 125 by issuing a press release to media in its service area,and
through a customer notice distributed in customer bills.Id.at 6.The notices in customer bills
will be distributed over the course of the current billing cycle,with the last notice being sent on
or around April 21,2016.Id.
YOU ARE FURTHER NOTIFIED that the Application,copies of the proposed tariff
Schedule 54,Direct Testimony of Zachary L.Harris,and Exhibits 1-6 have been filed with the
Commission and are available for public inspection during regular business hours at the
Commission offices.The Application and attachments are also available on the Commission’s
web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down
to “Open Electric Cases,”and then click on the case number as shown on the front of this
document.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFTEI)that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure.IDAPA 3 1.01.01.201-204.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 N OTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission by no
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33488
later than May 12,2016.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application may be mailed to the Commission
and Idaho Power at the addresses reflected below:
Commission Secretary Lisa D,Nordstrom,Lead Counsel
Idaho Public Utilities Commission Zachary L.Harris,Regulatory Analyst
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-mail:1nordstrom1idahopower.com
docketsI1idahopower.com
472 W.Washington Street zharris’1idahopower.corn
Boise,ID 83702-59 18
These 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 “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 FURTI-IER NOTIFIED that Idaho Power may file reply comments,if
necessary,no later than May 19,2016.
YOU ARE FURTHER NOTIFIED 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.
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,and specifically
Idaho Code §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 3 1.01.01.000,etseq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33488
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons shall have until May 12,2016 to file written comments,and the Company
shall have until May 19,2016 to file a reply,if any.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day’of March 2016.
PAUL KJELLAER,PRESIDENT
K I INE RAPER.COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Jt’1n D.Jewel!I I
Co!mmission Seretary
0:1 PC-E-I 6-02dJh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33488 4