20160926Settlement Stipulation and Motion.pdf

PECEIVED
2fii& .,1EP 26 PM 4: 55
LISA D. NORDSTROM
Lead Counsel
[e-mail]
September 26, 2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
' ).". 1C,1 PUBLIC
' I ••1 : :: (:0,·,1[Jl1SS10N
Re : Case No. IPC-E-16-14
An IDACORP company
New Tariff Schedule 63, A Community Solar Pilot Program
Settlement Stipulation and Motion to Approve 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,
o(~J2rt_~
Lisa D. Nordstrom
LDN/kkt
Enclosures
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Attorney for Idaho Power Company
'l:''.( .:·· :0 r r p l~ I.· c:c-lL , J , :, l_ 1 .'.. ;) II "i ' v J
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
)
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION TO APPROVE )
NEW TARIFF SCHEDULE 63, A )
COMMUNITY SOLAR PILOT PROGRAM )
)
________________ )
CASE NO. IPC-E-16-14
SETTLEMENT STIPULATION AND
MOTION TO APPROVE
SETTLEMENT STIPULATION
Idaho Power Company ("Idaho Power" or "Company") requests that the Idaho
Public Utilities Commission ("Commission") approve the settlement ("Settlement
Stipulation") related to the Company's Application for a new tariff Schedule 63, A
Community Solar Pilot Program, contained in this filing. The Settlement Stipulation
provides for: (1) a solar energy credit that reflects the embedded cost of energy as
reflected in the Company's base rates, (2) a subscription fee that reflects the cost of the
project, less a 15 percent shareholder contribution, a reduction reflecting the present
value of the incremental difference between the Demand Side Management ("DSM")
Alternate Costs identified in the 2015 Integrated Resource Plan and projected
embedded energy costs, a reduction reflecting the present value of the projected
deferral of transmission and distribution ("T&D") investments for the 25 year life of the
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 1
project, and other reductions as detailed below, and (3) a Company-facilitated monthly
fee option.
The Settlement Stipulation is entered into among Idaho Power, Commission Staff
("Staff'), the Idaho Conservation League ("ICL"), the Industrial Customers of Idaho
Power ("ICIP"), the Idaho Irrigation Pumpers Association, Inc. ("IIPA"), the Snake River
Alliance ("SRA"), the Idaho Sierra Club ("Sierra Club"), and the City of Boise ("Boise
City"), hereafter referred to individually as a "Party" or jointly as "Parties."
I. 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 27 4-76, 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 22, 2016, Idaho Power filed an application requesting that the
Commission approve a new tariff Schedule 63, A Community Solar Pilot Program
("Program"). The Company proposed to build a 500 kilowatt single-axis tracking
community solar array in southeast Boise that will exist to allow a limited number of
Idaho Power's Idaho customers the opportunity to voluntarily subscribe to the
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 2
generation output. Idaho Power proposed that participating customers pay a one-time
upfront Subscription Fee ("Subscription Fee") and in return receive a monthly bill credit
("Solar Energy Credit") for their designated portion of the energy produced from the
array.
3. On July 7, 2016, the Commission issued a Notice of Intervention Deadline
in Order No. 33552, setting forth a deadline for intervention 14 days from its issuance.
Petitions to Intervene were filed by ICL, ICIP, IIPA, SRA, Sierra Club, and Boise City, all
of which were granted in Order Nos. 33552, 33557, 33560, and 33562, respectively.
4. On August 16, 2016, the Commission issued a Notice of Modified
Procedure in Order No. 33569. Comments were filed by ICL on August 31, 2016, and
by Commission Staff, ICIP, SRA, and Sierra Club on September 1, 2016.
5. The Parties engaged in settlement discussions on August 23, 2016, and
September 9, 2016, that led to the following settlement of issues related to the
Company's application in this docket.
Ill. SETTLEMENT STIPULATION
6. As a compromise of the respective positions of the Parties, and for other
considerations as set forth below, the Parties agree to support the Company's proposed
Program as modified by the following terms:
7. Solar Energy Credit. The Program will use the on-bill Solar Energy Credit
reflecting the embedded cost of energy, as well as the proposed application of each
participant's portion of monthly generation as an offset to billed kilowatt-hours subject to
the Power Cost Adjustment ("PCA"). The Solar Energy Credit rate is subject to change
as the average embedded energy cost reflected in retail rates changes or is otherwise
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 3
approved by Commission order. Parties agree that the Solar Energy Credit will appear
on participating-customer bills as a "per kWh" line item.
The Parties agree that the initially-proposed Program will be modified to provide
the present value of the incremental difference between the DSM Alternate Costs
identified in the 2015 Integrated Resource Plan, Appendix C -Technical Report, pp. 75-
77 and projected embedded energy costs as a reduction to the Subscription Fee as
detailed in Paragraph 8. Idaho Power will provide the upfront investment necessary to
facilitate the reduction to the participant Subscription Fee and should be authorized to
recover the return on and return of that investment at the Company's then-current
authorized rate of return through the annual PCA until the Company's next general rate
case when such amounts will be included in base rates.
8. Subscription Fee. Originally proposed to be $7 40, the Subscription Fee
will be lowered to $562 to reflect three modifications, collectively referred to as the "Rate
Base Amounts": (1) a reduction reflecting the net present value of the incremental
difference between the DSM Alternate Costs and the forecasted embedded cost of
energy, as applied to the projected output of the project over the 25-year life of the
Program, (2) removal of the cost of the smart inverters from the total project cost, and
(3) a reduction reflecting the present value of the projected deferral of T&D investments
for the 25-year life of the project, as determined by the Company's recently completed
study that was presented to the Energy Efficiency Advisory Group on August 30, 2016.
Although Parties agree that the resulting T&D deferral value represents a reasonable
compromise of the issues addressed in this case, endorsement of this Settlement
Stipulation does not necessarily indicate a Party's endorsement of the underlying
methodology or study utilized to calculate this value. The calculation of each of the
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 4
three adjustments, as well as the determination of the resulting Subscription Fee, is
detailed in Attachment 1 to this Settlement Stipulation.
9. Monthly Fee Option. While customers may pay the entire Subscription
Fee upfront by check as initially proposed by Idaho Power, the Company will also offer
a "Bill Me" option through which customers will receive a bill for the entire Subscription
Fee that must be paid within 30 days, allowing customers to utilize a crediUdebit card or
their bank's bill pay option plus any nominal convenience fees. The Company will also
offer a monthly fee option to Residential Service Customers (Schedule 1 and Schedule
5) that will provide for recovery of the Subscription Fee over 24 equal monthly payments
of $26.31. A determination of the monthly fee amount of $26.31 is provided as
Attachment 2 to this Settlement Stipulation. The monthly fee amount covers the
revenue requirement of the subscription using an inclining depreciation schedule over
24 months and a carrying charge set at the Company's current Allowance for Funds
Used During Construction (AFUDC) rate as well as an administration charge of $1 .00
per month to reflect the costs of administering this monthly option, such as billing and
other required customer service functions. Participants who choose the 24-month fee
option may transfer their subscription(s) to eligible customers within the 24-month time
period, subject to the same rules, fees, and restrictions included in the Company's initial
filing related to subscription transfers.
10. If eligible participants elect to utilize the 24-month fee option and fail to
complete all 24 payments or request an eligible subscription transfer, Idaho Power will
utilize a waitlist if customer interest has exceeded the amount of available subscriptions.
The waitlist will be prioritized on a first-come, first-served basis, and will provide
customers with the option to purchase any unpaid subscriptions through a one-time
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION -5
payment at the amount of the unpaid balance. If the waitlist is exhausted and
outstanding subscriptions still exist, an as-yet to be identified third-party institution will
cover the unpaid amounts to Idaho Power in exchange for the corresponding
subscription(s). Idaho Power will work to secure an agreement with the as-yet to be
identified third party during the Program's enrollment period . If the Company's waitlist is
exhausted and no institution agrees to indemnify Idaho Power, the Parties agree that
Idaho Power should be authorized to recover 100 percent of the unpaid subscription
amounts in the next year's PCA. Ownership of the associated subscriptions will remain
with Idaho Power and the net power cost benefits will automatically flow through the
PCA to the benefit of all customers.
11. Cost Recovery. The Parties agree that Idaho Power should be allowed to
collect 100 percent of the revenue requirement associated with the Rate Base Amounts
detailed in Paragraph 8 through the Company's annual PCA mechanism, beginning with
the first PCA following the project in-service date. These annual revenue requirement
amounts, as detailed in Attachment 3, will be included as part of the Company's PCA
filing in April of each year, until the Company resets its base rates in a future general
rate case proceeding. Once the rate base amounts associated with the Program have
been incorporated into the Company's overall rate base through a general rate
proceeding, the Company will remove associated amounts from its PCA rates and no
longer include the related revenue requirement in subsequent PCA filings.
The parties agree that any Operation and Maintenance expenses in excess of
those included in the determination of subscription fees or specifically identified for
recovery as part of this Settlement Stipulation must be reviewed for prudence by the
Commission prior to recovery through customer rates.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 6
12. Regulatory Accounting Treatment. The Parties agree Idaho Power may
collect the revenue requirement associated with the Rate Base Amounts through the PCA
until Idaho Power files its next general rate case; therefore, the Company requests that the
Commission approve the collection of the revenue requirements associated with the Rate
Base Amounts. The revenue requirement associated with the Rate Base Amounts for
each year will be recorded to Federal Energy Regulatory Commission Account 182.3 on
June 1 and applied to PCA balances on a monthly basis. At the end of the first PCA year,
the Rate Base Amount for year 1 will be zero, and the Rate Base Amount for year 2 will be
added to the account and so on until the Company files its next general rate case.
13. Rate Impacts to All Customers. As detailed in Paragraph 11, under the
terms of the Settlement Stipulation, a portion of the initial project plant investment will be
funded by Idaho Power and eligible for rate base treatment. Because this Company­
funded amount reflects anticipated Program net power cost savings, the deferral of T&D
investment, and the customer benefits associated with the Company's ability to
communicate and control the smart inverter technology, all customers will pay for these
amounts through the agreed upon accounting treatment and cost recovery detailed in
Paragraphs 11 and 12, respectively.
14. With respect to the monthly fee option, all Idaho customers will act as
surety in the event that participants do not pay the full subscription amount and no third
party or other waitlisted customer is identified to assume the obligations/benefits of that
subscription. However, because this initial Program is being offered as a pilot, Parties
agree that the risk exposure to all Idaho customers is sufficiently mitigated by the size of
the Program and the potential for third party and/or waitlist indemnification.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION -7
15. Reporting. Idaho Power agrees to submit an annual report updating the
Commission and stakeholders with regard to the following items:
• The rate and timing of acquisition of subscriptions;
• Total subscriptions by rate class;
• The number of participants choosing each payment option;
• Default rate on the monthly fee option;
• Number of participant transfers to other eligible customers;
• Number of participant move-outs without subscription transfer;
• Marketing expenditures;
• Construction costs;
• System output and allocation to subscribers;
• Participant satisfaction survey results (when available);
• Operations and maintenance expense; and
• Warranty items.
The Parties agree that the Company will report actual costs over the life of the Program;
however, the Company does not intend to true-up any differences between estimated
costs embedded in the Subscription Fee and actual costs incurred throughout the life of
the Program. The report will be filed concurrently with the Company's annual net
metering status update report, due by the end of April each year, beginning in April
2018 and ending with the final year of the Program.
16. Tariff Schedule 63. The Settlement Stipulation terms described in the
foregoing paragraphs are set forth in tariff Schedule 63, Community Solar Pilot
Program, in Attachment 4.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION -8
17. 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. If 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.
18. If 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
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 all other things necessary to
put on such case as it deems appropriate. In 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-16-14, and the Parties
agree to cooperate in development of a schedule that concludes the proceeding on the
SETILEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION - 9
earliest possible date, taking into account the needs of the Parties in participating in
hearings and preparing briefs.
19. 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.
20. 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 shall 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 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.
21. 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,
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION -10
and only after such approval, without material change or modification, has been
received shall the Settlement Stipulation be valid.
22. This Settlement Stipulation may be executed in counterparts and each
signed counterpart shall constitute an original document.
IV. PROCEDURE
23. Pursuant to RP 274, the Commission has discretion to determine the
manner with which it considers a proposed settlement. In 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
period and then enter its order approving the Settlement Stipulation without material
change or condition.
SETTLEMENT STIPULATION AND MOTION
TO APPROVE SETTLEMENT STIPULATION -11
../{..,
DATED this J.t d ay of September, 2016.
Idaho Power Company
B ...r----"..;a.t.:::.......=-----i:....,:...:.~.w::.L.c..=..L.:....-==--
isa ~-Nordstrom
Attorney for Idaho ower Company
Idaho Conservation League
By~~~~~~~~~~~~~
Benjamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association, Inc.
By~~~~~~~~~~~~~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By~~~~~~~~~~~~~
Zach Waterman
Director of Idaho Sierra Club
SETTLEMENT STIPULATION AND MOTION
Commission Staff
By~~~~~~~~~~~~~
Daphne Huang
Attorney for IPUC Staff
Industrial Customers of Idaho Power
By~~~~~~~~~~~~~
Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By~~~~~~~~~~~~~
Ken Miller
Clean Energy Program Director
City of Boise City
By~~~~~~~~~~~~~
Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETILEMENT STIPULATION -12
DATED this ·Z.~ay of September, 2016.
Idaho Power Company
By~~~~~~~~~~~~-
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
By~~~~~~~~~~~~~
Benjamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association, Inc.
By~~~~~~~~~~~~~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By ___ ~~~~~~~~~~~-
Zach Waterman
Director of Idaho Sierra Club
SETILEMENT STIPULATION AND MOTION
Commission Staff
By~.;.._--\--~~~.,__~---*~~~-'­
Dap n Huang
Attorney for IPUC Sta
Industrial Customers of Idaho Power
By~~~~~~~~~~~~~
Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By~~~~~~~~~~~~~
Ken Miller
Clean Energy Program Director
City of Boise City
By~~~~~~~~~~~~~
Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETILEMENT STIPULATION-12
-1 --,
DATED this :-:. __ ) day of September, 2016.
Idaho PolNer Company
By ____________ _
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
Benfamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association, Inc.
By _______________ ~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By ____________ _
Zach Waterman
Director of Idaho Sierra Club
SETTLEMENT STIPULATION AND MOTION
Commission Staff
By ____________ _
Daphne Huang
Attorney for IPUC Staff
Industrial Customers of Idaho Power
By ____________ _
Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By ____________ _
Ken Miller
Clean Energy Program Director
City of Boise City
By ____________ _
Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETTLEMENT STIPULATION -12
DATED this __ day of September, 2016.
Idaho Power Company
By~~~~~~~~~~~~~
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
By~~~~~~~~~~~~~
Benjamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association , Inc.
By ___ ~~~~~~~~~~~~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By~~~~~~~~~~~~~
Zach Waterman
Director of Idaho Sierra Club
SETTLEMENT STIPULATION AND MOTION
Commission Staff
By~~~~~~~~~~~~~
Daphne Huang
Attorney for IPUC Staff
Industrial Customers of Idaho Power
By ,~~-µ,l.(2/,H,,..__;
Peter J. Richardson 1 ) , /(,
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By~~~~~~~~~~~~-
Ken Miller
Clean Energy Program Director
City of Boise City
By~~~~~~~~~~~~~
Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETTLEMENT STIPULATION-12
DATED this __ day of September, 2016.
Idaho Power Company
By _____________ _
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
By ___________ _
Benjamin J. Otto
Attorney for Idaho Conservation League
By~~~~~.\_..~~..l.dc:~~=-
1c L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By _____________ _
Zach Waterman
Director of Idaho Sierra Club
SETTLEMENT STIPULATION AND MOTION
Commission Staff
By _____________ _
Daphne Huang
Attorney for IPUC Staff
Industrial Customers of Idaho Power
By _____________ _
Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By _____________ _
Ken Miller
Clean Energy Program Director
City of Boise City
By _____________ _
Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETILEMENT STIPULATION -12
DATED this 'Z )-, day of September, 2016.
Idaho Power Company
By~~~~~~~~~~~
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
By~~~~~~~~~~~~~
Benjamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association, Inc.
By~~~~~~~~~~~~~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By~~~~~~~~~~~~~
Zach Waterman
Director of Idaho Sierra Club
SETTLEMENT STIPULATION AND MOTION
Commission Staff
By~~~~~~~~~~~
Daphne Huang
Attorney for IPUC Staff
Industrial Customers of Idaho Power
By~~~~~~~~~~~~~
Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By ~//1/,-y__.A'--z__.,
Ken Miller
Clean Energy Program Director
City of Boise City
By=-~~~---,-,~~~~~~~~ Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETTLEMENT STIPULATION -12
DATED this i~ day of September, 2016.
Idaho Power Company
By _________ ~---
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
By ___________ ~~
Benjamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association, Inc.
By ____________ ~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association , Inc.
Idaho Sierra Club
ByJ.-'.~
ch Waterman
Director of Idaho Sierra Club
SETILEMENT STIPULATION AND MOTION
Commission Staff
By ____________ _
Daphne Huang
Attorney for IPUC Staff
Industrial Customers of Idaho Power
By_~---------~~ Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By ____________ ~
Ken Miller
Clean Energy Program Director
City of Boise City
By=---:-----------~ Elizabeth A. Koeckeritz
Attorney for City of Boise
TO APPROVE SETILEMENT STIPULATION -12
DATED this Z.~ ,J.. day of September, 2016.
Idaho Power Company
By ____________ _
Lisa D. Nordstrom
Attorney for Idaho Power Company
Idaho Conservation League
By ____________ ~
Benjamin J. Otto
Attorney for Idaho Conservation League
Idaho Irrigation Pumpers Association, Inc.
By ____________ ~
Eric L. Olsen
Attorney for the Idaho Irrigation Pumpers
Association, Inc.
Idaho Sierra Club
By ____________ ~
Zach Waterman
Director of Idaho Sierra Club
SETTLEMENT STIPULATION AND MOTION
Commission Staff
By ____________ ~
Daphne Huang
Attorney for !PUC Staff
Industrial Customers of Idaho Power
By ____________ ~
Peter J. Richardson
Attorney for the Industrial Customers of
Idaho Power
Snake River Alliance
By ____________ ~
Ken Miller
Clean Energy Program Director
City of Boise City
ByN~ :f!,r
City of Boise Public Works Director
TO APPROVE SETTLEMENT STIPULATION -12
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 26th day of September 2016 I served a true and
correct 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:
Commission Staff
Daphne Huang
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
Idaho Conservation League
Benjamin J. Otto
Idaho Conservation League
71 O North Sixth Street
Boise, Idaho 83702
Industrial Customers of Idaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 2ih Street (83702)
P.O. Box 7218
Boise, Idaho 83707
Dr. Don Reading
6070 Hill Road
Boise, Idaho 83703
Idaho Irrigation Pumpers Association, Inc.
Eric L. Olsen
ECHO HAWK & OLSEN, PLLC
505 Pershing Avenue, Suite 100
P.O. Box 6119
Pocatello, Idaho 83205
SETTLEMENT STIPULATION AND MOTION
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TO APPROVE SETTLEMENT STIPULATION -13
Anthony Yankel
12700 Blake Avenue, Unit 2505
Lakewood, Ohio 44107
Snake River Alliance
Ken Miller, Clean Energy Program Director
Snake River Alliance
223 North Sixth Street, Suite 317
P.O. Box 1731
Boise, Idaho 83701
Sierra Club
Zack Waterman
Director, Idaho Sierra Club
503 West Franklin Street
Boise, Idaho 83702
Michael Heckler
3606 North Prospect Way
Garden City, Idaho 83714
City of Boise City
Elizabeth A. Koeckeritz
Deputy City Attorney
Boise City Attorney's Office
150 North Capitol Boulevard
P.O. Box 500
Boise, Idaho 83701-0500
SETTLEMENT STIPULATION AND MOTION
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TO APPROVE SETTLEMENT STIPULATION -14
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-14
IDAHO POWER COMPANY
ATTACHMENT 1
Plant
Shareholder Contribution
Net Plant
Plant Value for Tax Basis
!Book Life
Tax life
RA TE BASE SU MM ARY
Electric Plant in Service
Intangible Plant
Production Plant
Transmission Plant
Distribution Plant
General Plant
Total Electric Plant in Service
Less: Accumulated Depreciation
less: Amortization of Other Plant
Net Electric Plant in Service
$
$
$
$
less: Customer Adv for Construction
Less: Accumulated Deferred Income Taxes
Add: Plant Held for Future Use
Add: Working Capital
Add: Conservation· Other Deferred Prag
Add: ~ubsidiary Rate Base
TOTAL COMBINED RATE BASE
NET INCOME CALCULATION
Total Operating Revenues
Operating Expenses
Operation and Maintenance Expenses
Depreciation Expenses
Amortization of limited Term Plant
Taxes Other Than Income
Regulatory Debits/Credits
Provision for Deferred Income Taxes
Investment Tax Credit Adjustment
Current Income Taxes -Interest Sync
Current Income Taxes
Total Operating Expenses
Operating Income
Add: IERCO Operating Income
Consolidated Operating Income
REVENUE DEFICIENCY CALCULATION
Proposed Rate of Return
Earnings Deficiency
Net-to-Gross Tax Multiplier
Revenue Deficiency
Solar Rev Req NPV
Interconnection Rev Req NPV
Total Rev Req NPV
Total Subscription Cost
835,479
161,556
673,923
572,834
2E
Idaho Power Company
Community Solar PIiot Program - Subscription Fee Calculation
Settlement Stipulation
Composite Tax Rate 39.095% Debt 50.040% Debt Cost
Deferred Tax Rate 35.000% Preferred 0.000% Preferred
Federal Tax Rate 35.000% Common 49.960% Common Equity
State Tax Rate 6.300% Total 100.000% Ave Cost
Federal Tax Rate, net of State 32.795%
Year 1 Year 2 Year 3 Year4 Year 5 Year 6 Year7
673,923 673,923 673,923 673,923 673,923 673,923 673,923
673,923 673,923 673,923 673,923 673,923 673,923 673,923
26,957 53,914 80,871 107,828 134,785 161,741 188,698
646,966 620,009 593,052 566,095 539,138 512,181 485,224
56,138 124,305 141,948 149,326 152,855 153,497 148,364
590,828 495,704 451,104 416,769 386,283 358,685 336,860
58,064 8,064 8,064 8,274 8,489 8,709 8,936
26,957 26,957 26,957 26,957 26,957 26,957 26,957
5,924 5,924 5,924 5,924 5,924 5,924 5,924
112,276 24,059 11,228 3,529 3,529 (2,246) (8,020)
(9,190) (9,190) (9,190) (9,190)
(7,087) (6,088) (5,305) (4,863) (4,500) (4,174) (3,897)
(150,831) (46,378) (30,014) (20,278) (20,362) (13,085) (5,809)
45,303 12,537 16,852 10,352 10,846 12,896 14,900
(45,303) (12,537) (16,852) (10,352) (10,846) (12,896) (14,900)
(45,303) (12,537) (16,852) (10,352) (10,846) (12,896) (14,900)
7.86% 7.86% 7.86% 7.86% 7.86% 7.86% 7.86%
95,026 55,254 54,076 44,472 42,418 42,184 42,246
1.642 1.642 1.642 1.642 1.642 1.642 1.642
156,033 90,727 88,793 73,024 69,651 69,266 69,367
$788,606
$90,348
$878,955
$562 !
5.728% _,oc,,...,~ ,~.m !
0.000% 50% ITC -Reduces Tax Depr basis of plant $ . 101,088
10.000% Fed Tax on Basis Reduction ~---35,381
7.863% Net ITC Benefit $ 166,796
3% Idaho ITC(}:
Year8 Year9 Year 10 Year 11 Yur 12
673,923 673,923 673,923 673,923 673,923
673,923 673,923 673,923 673,923 673,923
215,655 242,612 269,569 296,526 323,483
458,267 431,311 404,354 377,397 350,440
140,344 132,325 124,305 116,285 108,266
317,923 298,986 280,049 261,111 242,174
9,168 9,407 9,651 9,902 10,loO
26,957 26,957 26,957 26,957 26,957
5,924 5,924 5,924 5,924 5,924
(8,020) (8,020) (8,020) (8,020) (8,020)
(9,190) (9,190) (9,190) (9,190) (9,190)
(3,669) (3,457) (3,245) (3,032) (2,820)
(5,900) (5,993) (6,089) (6,187) (6,288)
15,270 15,628 15,989 16,354 16,723
(15,270) (15,628) (15,989) (16,354) (16,723)
(15,270) (15,628) (15,989) (16,354) (16,723)
7.86% 7.86% 7.86% 7.86% 7.86%
41,013 39,881 38,753 37,630 36,509
1.642 1.642 1.642 1.642 1.542
67,343 65,485 63,633 61,788 59,949
Attachment 1 -a
Marketing Expense
O&M Expense ($/kW)
O&M Escalation
Property Tax Rate
Yearl3 Year 14
673,923 673,923
673,923 673,923
350,440 377,397
323,483 296,526
100,246 92,226
223,237 204,300
10,424 10,695
26,957 26,957
5,924 5,924
(8,020) (8,020)
(9,190) (9,190)
(2,608) (2,396)
(6,391) (6,497)
17,096 17,473
(17,096) (17,473)
(17,096) (17,473)
7.86% 7.86%
35,394 34,282
1.642 1.642
58,116 56,291
$ 50,000
$ 16
2.60%
0.55%
Year 15
673,923
673,923
404,354
269,569
84,207
185,362
10,973
26,957
5,924
(8,020)
(9,190)
(2,183)
(6,606)
17,855
(17,855)
(17,855)
7.86%
33,174
1.642
54,472
Year 16 Year 17 Year 18
673,923 673,923 673,923
673,923 673,923 673,923
431,311 458,267 485,224
242,612 215,655 188,698
76,187 68,167 60,148
166,425 147,488 128,551
11,258 11,551 11,851
26,957 26,957 26,957
5,924 5,924 5,924
(8,020) (8,020) (8,020)
(9,190) (9,190) (9,190)
(1,971) (1,759) (1,547)
(6,717) (6,832) (6,949)
18,241 18,631 19,026
(18,241) (18,631) (19,026)
(18,241) (18,631) (19,026)
7.86% 7.86% 7.86%
32,071 30,973 29,879
1.642 1.642 1.642
52,661 50,857 49,061
Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25
673,923 673,923 673,923 673,923 673,923 673,923 673,923
673,923 673,923 673,923 673,923 673,923 673,923 673,923
512,181 539,138 566,095 593,052 620,009 646,966 673,923
161,741 134,785 107,828 80,871 53,914 26,957 (0)
52,128 44,108 36,089 28,069 20,049 12,030 4,010
109,614 90,676 71,739 52,802 33,865 14,927 (4,010)
12,159 12,475 12,800 13,133 13,474 13,824 14,184
26,957 26,957 26,957 26,957 26,957 26,957 26,957
5,924 5,924 5,924 5,924 5,924 5,924 5,924
(8,020) (8,020) (8,020) (8,020) (8,020) (8,020) (8,020)
(9,190) (9,190) (9,190) (9,190) (9,190) (9,190) (9,190)
(1,335) (1,122) (910) (698) (486) (273) (61)
(7,070) (7,193) (7,320) (7,450) (7,584) (7,721) (7,861)
19,426 19,831 20,241 20,656 21,076 21,502 21,933
(19,426) (19,831) (20,241) (20,656) (21,076) (21,502) (21,933)
(19,426) (19,831) (20,241) (20,656) (21,076) (21,502) (21,933)
7.86% 7.86% 7.86% 7.86% 7.86% 7.86% 7.86%
28,790 27,705 26,626 25,552 24,483 23,420 22,362
1.642 1.642 1.642 1.642 1.642 1.642 1.642
47,273 45,492 43,720 41,957 40,201 38,455 36,718
Atuichment 1-a
Quantification of the Rate Base Amounts:
NPV of the incremental difference between DSM Alternate Costs and Embedded Cost of Energy
NPV of projected deferral of T&D Investment
Cost of the Smart Inverters
NPV of DSM Alternate Cost Annual Cash Flows -Shaped based on Solar Generation
A I $ 592,468.70 I
NPV of Embedded Energy Annual Cash Flows
B I $ 355,530.29 I
Difference (A -B)
C I $ 236,938.41 I
NPV of T&D Deferral Annual Cash Flows
D I$ 4,622 I
Cost of Smart Inverters
E I$ 81,730 I
Amount to Offset Upfront Payment (C + D + E)
Is 323,290 1
Attachment 1 -b
Production
Demand
Energy
Other
Energy
Total
Energy -Production
Energy -Other
(1)
Class COS Results
per Stipulation
Case No. IPC-E-11-08
$ 212,592,816
$ 310,100,846
$ 1,942,391
$ 870,005,051
2011 GRC
$/kWh
$0.02122
$0.00013
(2)
2011
GRC
$/kWh
$0.02122
$0.00013
Depr Study
$/kWh I iso.00003) I
($0.00000)
(3)
Depreciation Study
per Stipulation
Case No. lPC-E-12-08
$ (472,919)
$ (2,962)
$ (1,326,799)
(4)
Idaho Power Company
Embedded Energy Rate
All Rate Classes
(5)
Boardman
Depr Study Approved
$/kWh Case No. IPC-E-12-09
(6)
Boardman
$/kWh
($0.00003) $ 905,041 I so.00006
($0.00000) L_~o.00000
$ 1,525,501
Summation of Average Embedded Energy Rate
Boardman Langley NPSE Total
$/kWh $/kWh $/kWh $/kWh
$0.00006 I $0.002SO I $0.00415 $0.02789
$0.00000 $0.00000 $0.00000 $0.00013
(7) (8) (9) (10)
Langley Gulch NPSE
per Stipulation Langley as Approved NPSE
Case No. lPC-E-12-14 $/kWh ase No. lPC-E-13-2( $/kWh
$ 36,471,727 $0.00250 $ 60,678,023 $0.0041S
$ $0.00000 $ $0.00000
58,329,606 99,309,367
Total Embedded I
Energy Rate $/kWh
Generation Level kWh Forecast
~ kWh
0.0280213 I 2011 GRC 14,615,108,349
Embedded Energy
Rate ($/kWh)
2015 IRP Electricity
Price Escalation
Annual Generation
0.0280273
1.90%
(kWh) 996,977
Discount Rate 7 .86%
NPV of Embedded Energy Cash Flows $355,530
Year $/kWh Annual Cash Flows
1 0.02803 $ 27,943
2 0.02856 $ 28,473
3 0.02910 $ 29,014
4 0.02966 $ 29,566
5 0.03022 $ 30,128
6 0.03079 $ 30,700
7 0.03138 $ 31,283
8 0.03197 $ 31,878
9 0.03258 $ 32,483
10 0.03320 $ 33,100
11 0.03383 $ 33,729
12 0.03447 $ 34,370
13 0.03Sl3 $ 35,023
14 0.03S80 $ 35,689
15 0.03648 $ 36,367
16 0.03717 $ 37,058
17 0.03788 $ 37,762
18 0.03860 $ 38,479
19 0.03933 $ 39,210
20 0.04008 $ 39,955
21 0.04084 $ 40,715
22 0.04161 $ 41,488
23 0.04240 $ 42,276
24 0.04321 $ 43,080
25 0.04403 $ 43,898
AttKhmentl-c
Idaho Power Company
NPV of DSM Alternate Cost and T&D Deferral
Annual Generation (kWh) 996,977 Summer(Jun. 1 -Aug. 31) Non-summer (Sept. 1 -May 31)
Escalation Rate 2.20% Time Period On-Peak Mid-Peak Off-Peak Mid-Peak Off-Peak Total
Discount Rate 7.86% # of Hours 512 960 736 3,616 2,936 8,760
Annual Cash I Deferred T&D I T&D Deferral -
Year On-Peak Mid-Peak Off-Peak Mid-Peak Off-Peak Solar Shape 14% 19% 1% 56% 10% 100% Flows Rate Cash Flows
2017 $0.060 $0.040 $0.030 $0.035 $0.028 2017 $0.01 $0.01 $0.00 $0.02 $0.00 $0.038882 $ 38,765 $0.0004292 $ 428
2018 $0.065 $0.044 $0.031 $0.039 $0.030 2018 $0.01 $0.01 $0.00 $0.02 $0.00 $0.042537 $ 42,409 $0.0004292 $ 428
2019 $0.Q70 $0.044 $0.032 $0.039 $0.031 2019 $0.01 $0.01 $0.00 $0.02 $0.00 $0.043232 $ 43,102 $0.0004292 $ 428
2020 $0.072 $0.043 $0.036 $0.038 $0.031 2020 $0.01 $0.01 $0.00 $0.02 $0.00 $0.043021 $ 42,891 $0.0004292 $ 428
2021 $0.075 $0.047 $0.039 $0.041 $0.033 2021 $0.01 $0.01 $0.00 $0.02 $0.00 $0.046204 $ 46,064 $0.0004292 $ 428
2022 $0.077 $0.049 $0.041 $0.043 $0.035 2022 $0.01 $0.01 $0.00 $0.02 $0.00 $0.048088 $ 47,943 $0.0004292 $ 428
2023 $0.080 $0.052 $0.046 $0.044 $0.036 2023 $0.01 $0.01 $0.00 $0.02 $0.00 $0.049979 $ 49,828 $0.0004292 $ 428
2024 $0.083 $0.053 $0.046 $0.046 $0.039 2024 $0.01 $0.01 $0.00 $0.03 $0.00 $0.051974 $ 51,816 $0.0004292 $ 428
2025 $0.085 $0.049 $0.041 $0.048 $0.040 2025 $0.01 $0.01 $0.00 $0.03 $0.00 $0.052220 $ 52,062 $0.0004292 $ 428
2026 $0.085 $0.052 $0.043 $0.049 $0.042 2026 $0.01 $0.01 $0.00 $0.03 $0.00 $0.053692 $ 53,529 $0.0004292 $ 428
2027 $0.087 $0.054 $0.045 $0.050 $0.044 2027 $0.01 $0.01 $0.00 $0.03 $0.00 $0.054904 $ 54,738 $0.0004292 $ 428
2028 $0.090 $0.056 $0.047 $0.051 $0.046 2028 $0.01 $0.01 $0.00 $0.03 $0.00 $0.057010 $ 56,838 $0.0004292 $ 428
2029 $0.093 $0.059 $0.050 $0.054 $0.048 2029 $0.01 $0.01 $0.00 $0.03 $0.00 $0.059657 $ 59,476 $0.0004292 $ 428
2030 $0.099 $0.064 $0.054 $0.057 $0.051 2030 $0.01 $0.01 $0.00 $0.03 $0.01 $0.063416 $ 63,225 $0.0004292 $ 428
2031 $0.104 $0.064 $0.056 $0.059 $0.054 2031 $0.01 $0.01 $0.00 $0.03 $0.01 $0.065460 $ 65,262 $0.0004292 $ 428
2032 $0.106 $0.066 $0.059 $0.062 $0.057 2032 $0.01 $0.01 $0.00 $0.03 $0.01 $0.068114 $ 67,908 $0.0004292 $ 428
2033 $0.111 $0.071 $0.063 $0.065 $0.060 2033 $0.02 $0.01 $0.00 $0.04 $0.01 $0.072086 $ 71,868 $0.0004292 $ 428
2034 $0.120 $0.078 $0.068 $0.068 $0.063 2034 $0.02 $0.01 $0.00 $0.04 $0.01 $0.076931 $ 76,698 $0.0004292 $ 428
2035 $0.122 $0.080 $0.069 $0.070 $0.064 2035 $0.02 $0.02 $0.00 $0.04 $0.01 $0.078624 $ 78,386 $0.0004292 $ 428
2036 $0.125 $0.082 $0.071 $0.071 $0.066 2036 $0.02 $0.02 $0.00 $0.04 $0.01 $0.080353 $ 80,110 $0.0004292 $ 428
2037 $0.128 $0.084 $0.072 $0.073 $0.067 2037 $0.02 $0.02 $0.00 $0.04 $0.01 $0.082121 $ 81,873 $0.0004292 $ 428
2038 $0.131 $0.086 $0.074 $0.075 $0.069 2038 $0.02 $0.02 $0.00 $0.04 $0.01 $0.083928 $ 83,674 $0.0004292 $ 428
2039 $0.133 $0.087 $0.076 $0.076 $0.Q70 2039 $0.02 $0.02 $0.00 $0.04 $0.01 $0.085774 $ 85,515 $0.0004292 $ 428
2040 $0.136 $0.089 $0.077 $0.078 $0.072 2040 $0.02 $0.02 $0.00 $0.04 $0.01 $0.087661 $ 87,396 $0.0004292 $ 428
2041 $0.139 $0.091 $0.079 $0.080 $0.073 2041 $0.02 $0.02 $0.00 $0.04 $0.01 $0.089590 $ 89,319 $0.0004292 $ 428
NPV of DSM Alternate Cost! $ 592,469 ! (A) NPV ofT&D Deferral! $ 4,622 !(D)
Attachment 1 -d
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-14
IDAHO POWER COMPANY
ATTACHMENT 2
Idaho Power Company
Community Solar Pilot Program
24-Month Fee Option
] Depreciable # of Subscriptions
CARRYING SUBSCRIPTION SUBSCRIPTION MONTHLY TOTAL FEE TOTAL CARRYING TOTAL ENDING PLANT
CHARGE% LIFE AMOUNT FEE ADMIN FEE AUTHORIZED ADMIN FEES CHARGES FEES BALANCE
7.59%! 24 ! $ 562.00 I $25.31 I $1 .00 I $26.31 I $24.oo I $45.51 I $631 .51 I $ (0.00)!
MONTH SUBSCRIPTION MONTHLY TOTAL FEE CARRYING REMAINING PLANT
NO FEE ADMIN FEE AUTHORIZED CHARGE DEPRECIATION BALANCE
0 $0.00 $562.00
$25.31 $1.00 $26.31 $3.55 $21 .76 $540.24
2 $25.31 $1.00 $26.31 $3.42 $21 .90 $518.35
3 $25.31 $1.00 $26.31 $3.28 $22.03 $496.31
4 $25.31 $1.00 $26.31 $3.14 $22.17 $474.14
5 $25.31 $1.00 $26.31 $3.00 $22.31 $451 .82
6 $25.31 $1.00 $26.31 $2.86 $22.45 $429.37
7 $25.31 $1 .00 $26.31 $2.72 $22.60 $406.77
8 $25.31 $1.00 $26.31 $2.57 $22.74 $384.03
9 $25.31 $1.00 $26.31 $2.43 $22.88 $361 .15
10 $25.31 $1.00 $26.31 $2.28 $23.03 $338.12
11 $25.31 $1.00 $26.31 $2.14 $23.17 $314.95
Year 1 12 $25.31 $1.00 $26.31 $1 .99 $23.32 $291 .63
13 $25.31 $1.00 $26.31 $1 .84 $23.47 $268.16
14 $25.31 $1.00 $26.31 $1 .70 $23.62 $244.54
15 $25.31 $1.00 $26.31 $1 .55 $23.77 $220.77
16 $25.31 $1.00 $26.31 $1 .40 $23.92 $196.86
17 $25.31 $1.00 $26.31 $1 .25 $24.07 $172.79
18 $25.31 $1.00 $26.31 $1 .09 $24.22 $148.57
19 $25.31 $1.00 $26.31 $0.94 $24.37 $124.20
20 $25.31 $1.00 $26.31 $0.79 $24.53 $99.67
21 $25.31 $1.00 $26.31 $0.63 $24.68 $74.99
22 $25.31 $1.00 $26.31 $0.47 $24.84 $50.15
23 $25.31 $1.00 $26.31 $0.32 $25.00 $25.15
Year 2 24 $25.31 $1.00 $26.31 $0.16 $25.15 ($0.00)
$607.51 $24.00 $631 .51 $45.51 $562.00
• The AFUDC Rate is calculated monthly, the rate of 7.59% is for August 2016. The monthly fee will be locked
in at the current AFUDC rate at the time of enrollment.
Attachment 2
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-14
IDAHO POWER COMPANY
ATTACHMENT 3
Plant
Shareholder Contribution
Net Plant
Plant Value for Tax Basis
!Book Life
Tax Life
RATE BASE SUMMARY
Electric Plant in Service
Intangible Plant
Production Plant
Transmission Plant
Distribution Plant
General Plant
Total Electric Plant in Service
Less: Accumulated Depreciation
Less: Amortization of Other Plant
Net Electric Plant in Service
$
$
$
$
Less: Customer Adv for Construction
Less: Accumulated Deferred Income Taxes
Add: Plant Held for Future Use
Add: Working Capital
Add: Conservation -Other Deferred Pros
Add: Subsidiary Rate Base
TOTAL COMBINED RATE BASE
NET INCOME CALCULATION
Total Operating Revenues
Operating Expenses
Operation and Maintenance Expenses
Depreciation Expenses
Amortization of Limited Term Plant
Taxes Other Than Income
Regulatory Debits/Credits
Provision for Deferred Income Taxes
Investment Tax Credit Adjustment
Current Income Taxes -Interest Sync
Current Income Taxes
Total Operating Expenses
Operating Income
Add: IERCO Operating Income
Consolidated Operating Income
REVENUE DEFICIENCY CALCULATION
Proposed Rate of Return
Earnings Deficiency
Net-to-Gross Tax Multiplier
Revenue Deficiency
323,290
12,260
311,031
264,376
2E
Idaho Power Company
Community Solar Program
Revenue Requirement Calculation of the Rate Base Amounts
Composite Tax Rate 39.095% Debt 50.040% Debt Cost
Deferred Tax Rate 35.000% Preferred 0.000% Preferred
Federal Tax Rate 35.000% Common 49.960% Common Equ I
State Tax Rate 6.300% Total 100.000% Ave Cost
Federal Tax Rate, net of State 32.795%
Yearl Year2 Year3 Year4 YearS Year6 Year7
311,031 311,031 311,031 311,031 311,031 311,031 311,031
311,031 311,031 311,031 311,031 311,031 311,031 311,031
12,441 24,882 37,324 49,765 62,206 74,647 87,089
298,590 286,148 273,707 261,266 248,825 236,383 223,942
25,909 57,370 65,512 68,918 70,546 70,842 68,473
272,681 228,779 208,195 192,348 178,279 165,541 155,469
12,441 12,441 12,441 12,441 12,441 12,441 12,441
450 450 450 450 450 450 450
51,818 11,104 5,182 1,629 1,629 (1,036) (3,701)
(4,241) (4,241) (4,241) (4,241)
(3,271) (2,810) (2,449) (2,244) (2,077) (1,927) (1,799)
(58,242) {19,057) (11,504) (6,973) (6,973) (3,574) (176)
3,196 2,128 4,120 1,061 1,228 2,112 2,974
(3,196) (2,128) (4,120) (1,061) (1,228) {2,112) (2,974)
(3,196) (2,128) (4,120) (1,061) (1,228) (2,112) (2,974)
7.86% 7.86% 7.86% 7.86% 7.86% 7.B6% 7.86%
27,652 21,843 21,299 16,808 15,800 15,630 15,594
1.642 1.642 1.642 1.642 1.642 1.642 1.642
45,405 35,866 34,974 27,599 25,943 25,664 25,606
5.728% 30% ITC Earned $ 93,309
0.000% 50% ITC -Reduces Tax Depr basis of plant $ 46,655
10.000% Fed Tax on Basis Reduction $ 16,329
7.863% Net ITC Benefit $ 76,980
3% Idaho ITC! $ I
Years Year9 Year 10 Year 11 Year 12
311,031 311,031 311,031 311,031 311,031
311,031 311,031 311,031 311,031 311,031
99,530 111,971 124,412 136,854 149,295
211,501 199,060 186,619 174,177 161,736
64,772 61,071 57,370 53,668 49,967
146,729 137,989 129,249 120,509 111,769
12,441 12,441 12,441 12,441 12,441
450 450 450 450 450
(3,701) (3,701) (3,701) (3,701) (3,701)
(4,241) (4,241) (4,241) (4,241) (4,241)
{1,693) {1,595) {1,497) (1,399) (1,302)
(176) (176) (176) (176) (176)
3,079 3,177 3,275 3,373 3,471
(3,079) (3,177) (3,275) (3,373) (3,471)
(3,079) (3,177) (3,275) (3,373) {3,471)
7.86% 7.86% 7.86% 7.86% 7.86%
14,960 14,371 13,781 13,192 12,603
1.642 1.642 1.642 1.642 1.642
24,564 23,597 22,629 21,662 20,694
Attachment 3
$
' $
Marketing Expense
O&M Expense ($/kW
O&M Escalation
Property Tax Rate
Year 13 Year 14
311,031 311,031
311,031 311,031
161,736 174,177
149,295 136,854
46,266 42,565
103,029 94,289
12,441 12,441
450 450
(3,701) (3,701)
(4,241) (4,241)
(1,204) (1,106)
(176) (176)
3,569 3,667
(3,569) (3,667)
(3,569) (3,667)
7.86% 7.86%
12,014 11,424
1.642 1.642
19,726 18,759
0.00%
0.55%
Year 15
311,031
311,031
186,619
124,412
38,863
85,549
12,441
450
(3,701)
(4,241)
(1,008)
(176)
3,765
(3,765)
(3,765)
7.86%
10,835
1.642
17,791
Year 16 Year 17 Year 18
311,031 311,031 311,031
311,031 311,031 311,031
199,060 211,501 223,942
111,971 99,530 87,089
35,162 31,461 27,760
76,809 68,069 59,329
12,441 12,441 12,441
450 450 450
(3,701) (3,701) (3,701)
(4,241) (4,241) (4,241)
(910) (812) (714)
(176) (176) (176)
3,863 3,961 4,059
(3,863) (3,961) (4,059)
(3,863) (3,961) (4,059)
7.86% 7.86% 7.86%
10,246 9,656 9,067
1.642 1.642 1.642
16,824 15,856 14,888
Year 19 Year20 Year 21 Year 22 Year 23 Year 24 Year25
311,031 311,031 311,031 311,031 311,031 311,031 311,031
311,031 311,031 311,031 311,031 311,031 311,031 311,031
236,383 248,825 261,266 273,707 286,148 298,590 311,031
74,647 62,206 49,765 37,324 24,882 12,441 (0)
24,058 20,357 16,656 12,954 9,253 5,552 1,851
50,589 41,849 33,109 24,369 15,629 6,889 (1,851)
12,441 12,441 12,441 12,441 12,441 12,441 12,441
450 450 450 450 450 450 450
(3,701) (3,701) (3,701) (3,701) (3,701) (3,701) (3,701)
(4,241) (4,241) (4,241) (4,241) (4,241) (4,241) (4,241)
(616) (518) (420) (322) (224) (126) (28)
(176) (176) (176) (176) (176) (176) (176)
4,157 4,254 4,352 4,450 4,548 4,646 4,744
(4,157) (4,254) (4,352) (4,450) (4,548) {4,646) (4,744)
(4,157) (4,254) (4,352) (4,450) (4,548) {4,646) (4,744)
7.86% 7.86% 7.86% 7.86% 7.86% 7.86% 7.86%
8,478 7,889 7,299 6,710 6,121 5,532 4,942
1.642 1.642 1.642 1.642 1.642 1.642 1.642
13,921 12,953 11,986 11,018 10,050 9,083 8,115
Attachment 3
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-14
IDAHO POWER COMPANY
ATTACHMENT 4
Idaho Power Company
I.P.U.C. No. 29. Tariff No. 101
PROGRAM DESCRIPTION
Original Sheet No. 63-1
SCHEDULE 63
COMMUNITY SOLAR PILOT PROGRAM
(OPTIONAL)
The Community Solar Pilot Program ("Program") is an optional program that will provide a
limited number of Idaho Power's Idaho Customers the opportunity to voluntarily subscribe to the
generation output of a 500 kW single-axis tracking community solar array.
AVAILABILITY
The Program is available to Eligible Customers that hold evidence of a Subscription or an
entitlement to the electric generation output of a portion of the community solar array. Participation in
the Program is available on a first-come, first-served basis to all Eligible Customers who complete a
Participant Agreement. Approximately 1,563 Subscriptions will be available. If Idaho Power does not
receive what it deems to be a sufficient number of Subscriptions for the Program, Idaho Power may
terminate the Program and refund the Subscription Fees as set forth under "Refund of Subscription
Fee" in the Participant Agreement.
DEFINITIONS
Eligible Customers. Residential Service (Schedules 1 and 5), Small General Service (Schedule
7), Large General Service (Schedule 9), Large Power Service (Schedule 19), Agricultural Irrigation
Service (Schedule 24), Micron Special Contract (Schedule 26), Simplot Special Contract (Schedule 29),
and the Department of Energy Special Contract (Schedule 30) Customers. Non-metered and lighting
accounts may not participate in the Program. Customers must be in Good Standing with metered
electric service accounts with service addresses located in Idaho within Idaho Power's service area.
Participants must be 18 years of age or older and have full power and authority to execute the
Participation Agreement. Participant must be the customer of record on the Idaho Power account for
the service agreement to which the Subscriptions apply.
Good Standing. At the time of Subscription a Customer is in "Good Standing" if the Customer
does not have a past-due balance of $100 or more that is 60 days or more past due.
Participant. The Customer specified as the Participant in the Participant Agreement is the
Eligible Customer that has received notification of acceptance into the Program, or a successor
Participant designated in accordance with the Participant Agreement.
Participant Agreement. Eligible Customers will be required to sign the Participant Agreement
prior to participating in the Program. Participants will be subject to the terms and conditions of the
Participant Agreement.
Subscription. A "Subscription" is the Participant's applicable portion of the electricity output
generated by the community solar array developed in connection with the 500 kW project.
IDAHO
Issued per Order No. ___ _
Effective -, 2016 -----
Issued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 63-2
SCHEDULE 63
COMMUNITY SOLAR PILOT PROGRAM
(OPTIONAL)
(Continued)
TERM
The Program term will extend 25 years after the date of first production of solar energy on a
non-test basis (Operation Date).
Service on this rate schedule ("Enrollment") will commence with the first billing cycle following
the later of (i) the approval of the Eligible Customer's Participant Agreement by the Company, and (ii)
the Operation Date.
SUBSCRIPTION FEE
$562.00 per Subscription.
PAYMENT OF SUBSCRIPTION FEE
Customers have the following payment options:
1. A single upfront payment by check.
2. A single upfront payment made by debiUcredit card, mail-in check or money order,
paystation check or money order, or personal on-line bank transfer ("Bill Me"). A Customer who
requests the "Bill Me" option on the Participant Agreement will receive an Idaho Power Company
generated bill, separate from their monthly electric service bill, which must be paid within 30 days. A
convenience fee will be applied to debiUcredit card payments.
3. Monthly fee for 2 years (24 months). Residential Service Customers (Schedules 1 and
5) may choose the monthly fee option and will receive 24 monthly bills, separate from their monthly
electric service bill, which must be paid within 30 days of the monthly invoice date. Payments may be
made by debiUcredit card, mail-in check or money order, paystation check or money order, or personal
on-line bank transfer. A convenience fee will be applied to debiUcredit card payments. The monthly
Subscription Fee of $26.31 will cover the cost of the Subscription Fee, carrying charges, and an
administration charge of $1.00 per month to reflect the costs of administering this monthly option.
Invoicing of the monthly Subscription Fee will begin with Enrollment.
If the monthly Subscription Fee is not paid within 60 days from the monthly invoice date, the
Customer will be considered in default and the entire Subscription will be transferred to Idaho Power.
PARTICIPATION
To participate in the Program, a Customer must sign and return the Participant Agreement and
elect its method of payment for the Subscription Fee.
IDAHO
Issued per Order No. ___ _
Effective -, 2016 -----
Issued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101
PARTICIPATION (Continued)
Original Sheet No. 63-3
SCHEDULE 63
COMMUNITY SOLAR PILOT PROGRAM
(OPTIONAL)
(Continued)
Should a prospective participant have more than one service agreement, the participant must
designate which service agreement and account the Subscription should apply to.
Customers may apply for multiple Subscriptions; however, the estimated total energy output of
the Subscriptions may not exceed 100 percent of the customer's usage for the prior 12-month period
(on a kWh basis) per service agreement.
If 12 months of usage data is not available, a prospective Participant may estimate its annual
usage, using a method that includes, but is not limited to, usage by similarly sized properties or builder
or architect estimates. All estimates are subject to review and approval by Idaho Power at its sole
discretion.
Customers that Idaho Power at its sole discretion determines are ineligible will be notified
promptly, which Idaho Power expects to occur within 10 business days after such Participant
Agreement is deemed ineligible. In the event a Customer is ineligible to participate, the Subscription
Fee payments received by Idaho Power from ineligible Customers will be returned without interest.
For 60 days following the receipt of a Commission order, nonresidential Customers are limited
to 50 Subscriptions each and 30 percent of total capacity in aggregate. After 60 days following the
receipt of a Commission order, all available capacity may be made available to all eligible customer
classes at the Company's sole discretion.
SOLAR ENERGY CREDIT
Participants will receive a credit on their monthly bill for retail electric service. The amount of
the Solar Energy Credit will depend on the type of retail metered electric service of the designated
service agreement. The Solar Energy Credit will commence on the first billing cycle after the Operation
Date, and will appear as a "per kWh" line item on each Participant's bill. The monthly bill credit will be
limited to the Participant's monthly billed kWh. Any excess production will be carried forward on a kWh
basis. Under no circumstances will any excess production that is unused be converted to monetary
compensation or have value beyond the term of the Program, and upon termination of the Program,
any unused excess production will be forfeited.
The monthly Solar Energy Credit will be equal to the product of (a) the Solar Energy Credit rate
as set forth below and (b) the proportional share measured in kWh of the monthly generation from the
array for that month (as determined by the number of Subscriptions and monthly generation). The
month to which the Solar Energy Credit is applicable may not match the billing period for the retail
electric service billing to which the Solar Energy Credit is applied.
IDAHO
Issued per Order No. ___ _
Effective -, 2016 -----
Issued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 63-4
SCHEDULE 63
COMMUNITY SOLAR PILOT PROGRAM
(OPTIONAL)
(Continued)
SOLAR ENERGY CREDIT (Continued)
Solar Energ~ Credit
Schedule Description ¢ per kWh
1 and 5 Residential Service 3.0246
7 Small General Service 3.0209
9S Large General Service 2.9936
9P and 9T Large General Service 2.7352
19 Large Power Service 2.7735
24 Irrigation Service 2.6559
26 Micron Special Contract 2.5167
29 Simplot Special Contract 2.5371
30 DOE Special Contract 2.4915
The Power Cost Adjustment rate set forth in Schedule 55 will be applied to the net of the
Participant's total energy use measured as the Participant's monthly billed kWh less their proportional
share of the monthly generation measured in kWh from the array for that month.
The Solar Energy Credit rate is subject to change as the average embedded energy cost
reflected in retail rates changes or as otherwise approved by Commission order.
CANCELLATION
The Participant is not eligible to receive a refund of any portion of the Subscription Fee upon
cancellation of the Subscription. The Participant may elect to transfer the Subscription within 60 days
of the Participant terminating service with Idaho Power. If no transfer is requested within such 60-day
period, the Subscription and all benefits of the Subscription will revert to Idaho Power. The
Subscription transfer terms are discussed below.
SUBSCRIPTION TRANSFER
A Participant may elect to transfer the remaining life of the Participant's Subscription to a new
service agreement or service location for the same Participant that meets the eligibility requirements.
Such transfers are not subject to additional fees.
Upon termination of a Participant's service, Participants may transfer the remaining life of their
entire Subscription to another Eligible Customer's service agreement, including an eligible non-profit,
for a $25 fee. Participants with more than one Subscription may transfer their Subscriptions in whole
subscription increments to one or more Eligible Customers for a $25 fee per transfer. A single
Subscription cannot be split for multiple transfers.
IDAHO
Issued per Order No. ___ _
Effective -_____ , 2016
Issued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 63-5
SCHEDULE 63
COMMUNITY SOLAR PILOT PROGRAM
(OPTIONAL)
(Continued)
SUBSCRIPTION TRANSFER (Continued)
Participants that have requested to pay for their Subscription over 24 months, and have
remaining monthly fees at the time of termination of Service, may request to transfer the remaining life
of their Subscription to another Eligible Customer's service agreement, for the remaining plant balance
(the remaining balance of which is to be assumed in full by the transferee) and a $25 fee.
Participants must notify Idaho Power in writing of their intent to transfer any Subscription(s).
Transfers will only be effective if the recipient satisfies the terms and conditions applicable to the
Subscription and signs the Participant Agreement and assumes all responsibilities associated
therewith.
ENVIRONMENTAL ATTRIBUTES
Idaho Power will retain ownership of the Renewable Energy Certificates and all other
environmental attributes including but not limited to carbon emission reduction credits. The Renewable
Energy Certificates will be retired by Idaho Power on behalf of Participants.
RULES AND REGULATIONS
Service under this Schedule will be in accordance with the standard Rules and Regulations of
the Company as on file with the Idaho Public Utilities Commission.
IDAHO
Issued per Order No. ___ _
Effective , 2016 ------
Issued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, RegulatoryAffairs
1221 West Idaho Street, Boise, Idaho