20160413notice_of_application_order_no_33500.pdf

Office of the Secretary
Service Date
April 13,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER’S )CASE NO.IPC-E-16-06
COMPLIANCE-FILING REQUEST )
FOLLOWING THE COMMISSION’S PRIOR )NOTICE OF APPLICATION
APPROVAL FOR THE COMPANY TO )
EXCHANGE CERTAIN TRANSMISSION )NOTICE OF
ASSETS WITH PACIFICORP )MODIFIED PROCEDURE
)
__________________________________
)ORDER NO.33500
In February 2016,Idaho Power Company filed a request for approval of its regulatory
accounting documents,intended to comply with the Commission’s prior Order authorizing Idaho
Power’s exchange of certain transmission assets with PacifiCorp dba Rocky Mountain Power
and Pacific Power (collectively “PacifiCorp”).
BACKGROUND
In December 2014,PacifiCorp and Idaho Power filed a joint Application asking the
Commission to approve the exchange of certain transmission assets.Over the past 40 years,the
parties have entered into a number of agreements (generally referred to as “Legacy
Agreements”)through which they jointly own and operate the Jim Bridger power plant and
associated transmission assets.In October 2014,the parties entered into a Joint Purchase and
Sale Agreement (JPSA)and a Joint Ownership and Operating Agreement (JOOA)to largely
replace or amend three prior Legacy Transmission Agreements.The agreements addressed
inefficiencies caused by changes in “the regulatory landscape,...load growth,and investments
in system upgrades”by exchanging assets,and re-allocating ownership interests and operational
responsibilities.Application at 2-3 in Case No.IPC-E-l4-41.
The ‘changes in the regulatory landscape”included the ‘advent of the Federal Energy
Regulatory Commission’s (FERC)open access policies.”Duvall Direct at 4,Case No.PAC-E
14-11.FERC’s open access policies were initiated in 1996,under FERC Order No.888,which
required public utilities to provide open access transmission service on a comparable basis to the
transmission service they provide themselves (i.e.,non-discriminatory access).61 Fed.Reg.
21540,21541.Order No.888 required electric utilities providing transmission services to file an
Open Access Transmission Tariff (OATT)with ‘minimum terms and conditions of non
discriminatory service.”Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33500
The Commission granted the Utilities Application in June 2015,in Case Nos.IPC-E
14-41 and PAC-E-14-11.Order No.33313 .As part of that Order,the Commission directed the
Utilities to establish regulatory deferral accounts for transmission revenues resulting from the
transaction and the resulting changes in the Utilities’OATT rates.Although the parties
anticipated that the transaction would ultimately result in an increase in Idaho Power’s OATT
rate,FERC subsequently denied Idaho Power’s petition for a one-time adjustment to its
transmission formula rate.Application at 5-7,citing ‘OATT Rate Order,”153 FERC §61,212
(2015).According to Idaho Power,the effect of FERCs Order will delay the full realization of
increased OATT-related revenues resulting from termination of the Legacy Agreements until
October 1,2017.”Id.at 7.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on February 19,2016,Idaho Power filed a
request,styled as a “Compliance Filing”under Case No.IPC-E-14-41.The Commission accepts
the request as an Application,under the new Case No.IPC-E-16-06.
YOU ARE FURTHER NOTIFIED that,in the Application,Idaho Power has
provided an updated revenue analysis.Idaho Power states the net result of FERC’s Order
denying the Company’s requested increase in OATT rate is a $1.1 million decrease in Idaho
Power’s transmission revenues in 2015,thus creating a regulatory liability balance.Application
at 10.Idaho Power anticipates that its total cumulative transmission revenue will decrease over
the next three years before turning positive in 2019.Id.
YOU ARE FURTHER NOTIFIED that Idaho Power seeks approval or verification of
its regulatory accounting,as required under Commission Order No.33313,in light of FERC’s
ruling and the impacts therefrom.The Company is not requesting any rate increase as a result of
this filing.
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 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORI)ERNO.33500
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no
later than June 9,2016.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 shall be mailed to the Commission
and Idaho Power at the addresses reflected below:
Commission Secretary Julia A.Hilton
Idaho Public Utilities Commission Tim Tatum
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 P.O.Box 70
Boise,ID 83707
Street Address for Express Mail:E-Mail:[e-mail]
[e-mail]
472 W.Washington Street [e-mail]
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 comment form using the case number as it
appears on the front of this document.These comments must also be sent to Idaho Power at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company may file a reply if necessary,
by no later than June 16,2016.
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 the Application and attachments 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33500 3
page,scroll down to Open 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 and specifically
Idaho Code §61-503,61-523,and 61-524.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 Commissions Rules of Procedure,IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application be processed by
Modified Procedure,IDAPA 31.01.01.201-.204.Persons interested in submitting written
comments in this matter must do so no later than June 9,2016.The Company’s reply,if needed,
shall be submitted no later than June 16,2016.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of April 2016.
PAUL KJELLANDER,PRESIDENT
ATTEST:
/1
Jn D.Jewell’
Commission Secretary
O:IPC-E-6-06_djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33500
ERIC ANDERSON,COMMISSIONER
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