20170117notice_of_modified_procedure_order_no_33690.pdf

Office of the Secretary
Service Date
January 17, 2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE RATES FOR
ELECTRIC SERVICE DUE TO REVISED
DEPRECIATION RATES FOR ELECTRIC
PLANT-IN-SERVICE
)
)
)
)
)
)
)
IN THE MATTER OF THE APPLICATION )
OF IDAHO PO\VER COMPANY FOR )
AUTHORITY TO INCREASE RATES FOR )
ELECTRIC SERVICE TO RECOVER COSTS )
ASSOCIATED WITH THE NORTH VALMY )
PLANT )
--·-----------)
CASE NO. IPC-E-16-23
CASE NO. IPC-E-16-24
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 33690
On October 21, 2016, Idaho Power Company filed an Application asking the
Commission to adopt revised depreciation rates for its electric plant-in-service and
co1Tespondingly adjust Idaho jurisdictional base rates. Application (Case No. IPC-E-16-23) at 1.
The proposed adjustment in this Application is an overall rate increase of 0.59%. Effata to
Application (Case No. IPC-E-16-23). The Company concuITently filed an Application
requesting Commission authorization to "(1) accelerate the depreciation schedule for the North
Valmy power plant ("Valmy") to allow the plant to be fully depreciated by December 31, 2025;
(2) establish a balancing account to track the incremental costs and benefits associated with the
accelerated Valmy end-of-life date, and (3) adjust customer rates to recover the associated
incremental annual Ievelized revenue requirement of $28.50 million with an effective date of
June 1, 2017." Application (Case No. IPC-E-16-24) at 1. The result of this Application is an
overall increase of2.51%. Errata to Application (Case No. IPC-E-16-24).
\\'ith the filings, the Company intends to facilitate a single rate change for customers,
and asked the Commission to enter final Orders in both matters by April 1, 2017, to allow it to
incorporate any associated rate impacts in its April 14, 2017, Power Cost Adjustment filing (as
indicated below, the Company and parties reached agreement on an alternate schedule).
The Commission issued Orders providing notice of the Applications, setting a
deadline for interventions, and directing the parties to confer about a schedule for the cases.
Order Nos. 33650, 33652. The Commission granted timely-filed motions to intervene in both
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33690 l
cases from the Idaho lITigation Pumpers Association, Inc.; Micron Teclmology, Inc.; and the
U.S. Department of Energy and the Federal Executive Agencies. Order Nos. 33659, 33660,
33670, 33671, 33673 and 33674. The Commission also granted intervention to Idaho
Conservation League and Sierra Club in the North Valmy case, and to the Industrial Customers
ofldaho Power (ICIP) in the depreciation rates case. Order Nos. 33672 and 33676.
PARTIES' PROPOSED SCHEDULE
The parties to the cases conferred informally and agreed to the following schedule
under Modified Procedure:
February 2, 2017 Parties' meeting to discuss negotiated solutions (specific
time for discussion in each case to be determined by the
parties)
April 20, 2017
May 4, 2017
May18,2017
Deadline for parties' comments
Deadline for parties' cross-answering comments
Deadline for Company reply comments
Staff also proposes to hold a public workshop regarding the North Valmy case for the
Company's customers at a date and time to be determined later.
The Commission finds it reasonable to adopt the parties' proposed schedule and
Staff's proposal to hold a public workshop in the North Valmy case.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY 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 31.01.01.201-204. 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 NOTIFIED 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
later than Thursday, April 20, 2017. IDAPA 31.01.01.202.02. All comments 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 Company at the addresses reflected below:
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33690 2
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Lisa Nordstrom
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
E-mail: ::..:a:;;:,c.o:c;e:;;::;;s:==""·""'-"-'=4~~=!,:-'-'-
Matt Larkin
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
E-mail: =ccccccc,,c,="='===--'-=-c~,ccc
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
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
address listed above.
YOU ARE FURTHER NOTIFIED that parties in this matter may file cross­
answering comments with the Commission by no later than Thursday, May 4, 2017.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments, if
necessary, by no later than Thursday, May 18, 2017.
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
pursua11t 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, ID APA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33690 3
YOU ARE FURTHER NOTIFIED that Commission Staff will hold a public
workshop regarding the North Valmy case (Case No. IPC-E-16-24) for customers of Idaho
Power Company at a date, time and location to be determined. The Commission Secretary will
issue a separate notice of the workshop providing the date, time and location. At the workshop,
Commission Staff will summarize the Company's Application and how the Commission
generally evaluates and decides a case. Staff will not take any position on the merits of the
Application, because Staff will still be evaluating it when the workshop occurs. After the
workshop, Commission Staff will file written comments or testimony to address the merits of the
case. Staffs remarks will take into consideration any concerns that may have been raised at the
workshop.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Parties and persons interested in submitting comments must do so by April 20, 2017. Parties
must submit any cross-answering comments by May 4, 2017. The Company must file a reply, if
any, by May 18, 2017.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33690 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2017.
ATTEST:
Diane M. Hanian
Commission Secretary
O:IPC-E-l 6-23 _IPC-E-16-24_cc_djh
NOTICE OF MODIFIED PROCEDURE
PA
ERIC ANDERSON, COMMISSIONER
ORDER NO. 33690 5