20160518Comments Addendum.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
AUTHORITY TO IMPLEMENT FIXED COST
ADJUSTMENT RATES FOR ELECTRIC
SERVICE FROM JUNE I,2016 THROUGH
MAY 31,2017
fi ECEIYED
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BEFORE THE TDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC.E.I6-02
ADDENDUM TO COMMENTS OF
THE COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of Record, Daphne Huang, Deputy Attorney General, and submits the following
Addendum to its Comments, filed May 12,2016, correcting an error therein.
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 3I,2017, and to approve changes to tariff Schedule No. 54,
Fixed Cost Adjustment. Staff timely filed Comments per the Commission-ordered deadline, that
support the Company's proposal. Idaho Power contacted Staff after reviewing Staff s
Comments, and advised that the Comments contain a calculation-error regarding the effect of
residential customer growth on the 2015 FCA balance. Staff now files this Addendum to
acknowledge and correct the error. The correction does not change Staff s recommendation that
the Commission approve the Company's Application. Staff regrets the error and any confusion
or inconvenience it may have caused.
ADDENDUM TO STAFF COMMENTS MAY 18,2016
The following section from page 3 of Staff Comments (including the chart) is
incorrect and should be removed:
Staffanalyzed the ffict of residential customer growth on the FCA balance and
determined that nearly $ I 4 million of the current $27 million residential 201 5 FCA balance was
due to customer growth, rather than declining sales. As illustrated in the following chart, the
portion of the FCA balance due to new customers continues to become a larger portion of the
FCA balance over lime.
Effect of Customer Growth on FCA Balance
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Therefore, as customer counts continue to grow, the FCA balance will continue to cause
upward pressure on rates each year. In total, the Company has collected $30 million through
the FCA attributed only to new residential customers added to the system since the Company's
last general rate case in 201 I.
The above italicized section and chart should be replaced with:
Staff analyzedthe effect of residential customer growth on the FCA balance and
determined that nearly $14 million in fixed cost revenue requirement has been added due to new
customer growth since the last rate case. Most of this increase has been offset by revenue
generated from new customer growth. Staff estimates that approximately $2 million of the
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ADDENDUM TO STAFF COMMENTS MAY 18,2016
current $27 million 2015 residential FCA balance is due to customer growth. The remainder is
due to declining consumption of existing customers.
Nevertheless, as customer counts continue to grow, total fixed cost recovery will continue
to grow larger as will the FCA deferral balance as per customer consumption declines. Any new
fixed cost revenue requirement not recovered by fixed cost revenue collected from new
customers will be recovered through the FCA.
STAFF RECOMMENDATION
With this correction to Staff Comments, Staff continues to recommend that the
Commission approve Idaho Power's Application.
Respecttully submitted this [8AO^rof May 2016.
Technical Staff: Matt Elam
i :umisc:comments/ipce I 6.2djhdesddkbe comments
ADDENDUM TO STAFF COMMENTS MAY 18,2016
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 18th DAY OF MAY 2016,
SERVED THE FOREGOING ADDENDUM TO COMMENTS OF THE
COMMISSION STAFF IN CASE NO. IPC-E.T6-02, BY MAILING A COPY
THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
LISA D NORDSTROM
LEAD COUNSEL
IDAHO POWER COMPANY
PO BOX 70
BOrSE ID 83707-0070
E-mail : [e-mail]
BENJAMIN J OTTO
ID CONSERVATION LEAGUE
710 N 6TH ST
BOISE ID 83702
E-mail : [e-mail]
ZACHARY L HARRIS
REGULATORY DOCKETS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-mail : [e-mail]
dockets@idahopower. com
CERTIFICATE OF SERVICE