20170512notice_of_settlement_order_no_33763.pdf

Office of the Secretary
Service Date
May 12,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-16-23
AUTHORITY TO INCREASE RATES DUE )
TO REVISED DEPRECIATION RATES )
FOR ELECTRIC PLANT-IN-SERVICE )
______________________________________________________________________________________________
)
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-16-24
AUTHORITY TO INCREASE ITS RATES )
FOR ELECTRIC SERVICE TO RECOVER )NOTICE OF SETTLEMENT
COSTS ASSOCIATED WITH THE NORTH )
VALMY PLANT )NOTICE OF SCHEDULE
)
_____________________________
)ORDER NO.33763
Before the Commission are Motions filed May 3,2017,by Idaho Power Company
and Commission StafT concerning the above-captioned cases.Idaho Power’s Motions request
Commission approval of Settlement Stipulations in the two matters,and Staffs Motion asks the
Commission to vacate the previous comment schedule for the cases,to provide notice of the
settlement stipulations,and to adopt deadlines for comments about the Settlement Stipulations.
The Commission now provides notice of the Settlement Stipulations,vacates the prior comment
schedule,and provides notice of deadlines for comments on the Settlement Stipulations.After
the deadlines for comments have passed,the matter will be fully submitted and the Commission
will consider the Company’s Motion to approve the settlements.
BACKGROUND
On October 21,2016,Idaho Power Company filed an Application asking the
Commission to approve revised depreciation rates for its electric plant-in-service and to
correspondingly adjust Idaho jurisdictional base rates,with a requested effective date of June 1,
2017.Application (Case No.IPC-E-23)at 1.The Company concurrently filed an Application
requesting Commission authorization to accelerate the depreciation schedule for the North
Valmy power plant,establish an associated balancing account,and adjust customer rates,also
with a requested effective date of June 1,2017.See Application (Case No.IPC-E-16-24)at 1.
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ORDER NO.33763
In November 2016.the Commission issued Orders providing notice of the
Applications and setting deadlines for interventions.Order Nos.33650,33652.The
Commission granted Petitions to Intervene in both cases from the Idaho Irrigation Pumpers
Association,Inc.(IIPA);Micron Technology,Inc.;the Idaho Conservation League (ICL)and
Sierra Club;the U.S.Department of Energy and the Federal Executive Agencies (DOE);and the
Industrial Customers of Idaho Power (ICIP).Order Nos.33659,33660,33670,33671,33672,
33710,33673,33674,33676,and 33746.
The parties conferred and agreed to process the Applications via Modified Procedure
with agreed comment deadlines,which the Commission adopted.Order No.33690.The parties
also agreed to meet to discuss potential settlement options.
In the course of settlement discussions,the parties indicated that they wanted more
time to consider potential settlement options and to develop comments if a settlement is not
reached.Consequently,on two occasions the parties agreed to revise the comment deadlines for
both cases.On both occasions Staff moved the Commission to adopt the revised schedule and
the Commission found good cause to do so.Order Nos.33745 and 33759.
On May 3,2017,all parties agreed or did not object to the Settlement Stipulations
that they assert fully resolve the issues in each case.The Company filed the Settlement
Stipulations and Agreed Motions to Approve the Settlement Stipulations.The parties agreed to
vacate the schedule set in Order No.33759,and to request a schedule for comments on the
settlement.
STAFF’S MOTION TO VACATE COMMENT DEADLINES AND
PROVIDE NOTICE OF SETTLEMENT AND DEADLINES FOR COMMENTS
On May 4,2017,Staff submitted a Motion to vacate the comment deadlines in light
of the parties’Settlement Stipulations.Staff indicated that the parties agreed to request that the
Commission enter the following schedule:
May 18,2017 Deadline for comments (if any)from parties
in support of the settlement
May 25,2017 Deadline for public comments on the settlement
Staff noted that these deadlines provided comment periods that are shorter than the standard 21-
day period contemplated in IDAPA 31.01.01.202.However,the Commission first provided
notice of the Company’s Applications and opportunity for comment in these cases on November
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14.2016.Order Nos.33650.33652.Further,Staff noted that key elements of the Settlement
Stipulations were discussed hypothetically at the public informational workshop on March 21,
2017.In addition,only six public comments have been submitted to date in the Valmy case,and
no public comments have been submitted in the revised depreciation case.
Finally,Staff noted that the proposed deadlines,rather than later deadlines,would
allow more time to achieve the Company’s requested effective date for both cases of June 1.
20 17.About the proposed effective date.Staff explained that the Company has two other
proceedings currently before the Commission that impact customer rates —the annual Fixed Cost
Adjustment and Power Cost Adjustment cases.In those matters,the Company also proposed
effective dates of June 1,2017.The Company has aligned the proposed effective dates of these
cases in effort to ensure as few rate changes for customers as possible.
Commission Findings:The Commission has reviewed the request and finds good
cause for the shortened comment periods to which the parties agreed or did not object.The
Commission finds,in light of the various notices in these proceedings,that the proposed
schedule will allow the parties and public adequate time to provide comments on these cases and
the Settlement Stipulations resolving them.Accordingly,the Commission grants Staffs Motion.
The previous schedule is vacated and the parties’schedule for comments on the Settlement
Stipulation is adopted.
NOTICE OF SETTLEMENT STIPULATIONS
YOU ARE HEREBY NOTIFIED that Settlement Stipulations in Case Nos.IPC-E
16-23 and IPC-E-16-24,plus their attachments,have been filed with the Commission and are
available for public inspection during regular business hours at the Commission offices.These
documents are also available on the Commission’s website at wwwpuc.idahoov.Click on the
“File Room”tab at the top of the page,scroll down to “Open Electric Cases,”then click on either
case number as shown on the front of this document.
A.Revised Depreciation Case No.IPC-E-16-23
YOU ARE FURTHER NOTIFIED that the following parties have joined as
signatories to a Settlement Stipulation (IPC-E-16-23)resolving the revised depreciation case:
Idaho Power,Staff,IIPA,Micron,DOE,and ICIP (hereafter “Stipulating Parties”).ICL and
Sierra Club indicate they do not wish to join as signatories to the Settlement Stipulation,but they
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ORDER NO,33763 3
do not oppose it.The settlement was reached following settlement discussions in February and
April 2017.Settlement Stipulation (IPC-E-16-23)at 3.
YOU ARE FURTHER NOTIFIED that the Stipulating Parties agree the Settlement
Stipulation (IPC-E-16-23)represents a “fair,just,and reasonable resolution of all issues between
the Parties ...[andj is in the public interest.”Id.at 2.
YOU ARE FURTHER NOTIFIED that the Stipulating Parties agree to depreciation
rates set forth in Attachment 1 to the Settlement Stipulation (IPC-E-16-23),“which would result
in no associated change in retail rates.”Id.at 4.The Stipulating Parties further agree the rates
set forth in Attachment 1 should be effective June 1,2017,and that they ‘represent a
compromise of the differing depreciation methodologies,theories,and opinions presented in this
case,and do not necessarily reflect an endorsement of the underlying rationale for each
adjustment by any of the Stipulating Parties.”Id.
YOU ARE FURTHER NOTIFIED that the Stipulating Parties in the revised
depreciation case also agree or do not object to terms in the Settlement Stipulation in IPC-E-16-
24 regarding the North Valmy plant,discussed in the next section of this Order.Id.
B.North Valniy Case No.IPC-E-16-24
YOU ARE FURTHER NOTIFIED that the following parties have joined as
signatories to a Settlement Stipulation (IPC-E-l6-24)resolving the North Valmy case:Idaho
Power,Staff,IIPA,Micron,DOE,ICL and Sierra Club,and ICIP (hereafter “Parties”).The
settlement was reached following settlement discussions in February and April 2017.Settlement
Stipulation (IPC-E-16-24)at 3.
YOU ARE FURTHER NOTIFIED that the Parties agree the Settlement Stipulation
(IPC-E-16-24)represents a “fair,just,and reasonable compromise of the dispute(s)between the
Parties,and that this Settlement Stipulation is in the public interest.”Id.at 2.
YOU ARE FURTHER NOTIFIED that the Parties agree “to an Idaho jurisdictional
revenue increase of $13,285,285,to be recovered from all customer classes through a uniform
percentage increase to all base rate components except the service charge effective June 1,
2017.”Id.at 3.If the Settlement Stipulation (IPC-E-16-24)is approved by the Commission,
“the amount all Idaho customer classes pay for electric service will increase by $13.3 million
which equates to an overall increase of 1.17 percent”as set forth in Attachment 1 to Settlement
Stipulation (IPC-E-16-24).Id.at 3-4.
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YOU ARE FURTHER NOTIFIED that,to “accomplish a levelized revenue
requirement collection period beyond the operation life of the [Valmy]plant,the Parties agree to
support the issuance of an accounting order.”See Id.at 4.
YOU ARE FURTHER NOTIFIED that the estimated target shutdown dates for the
two coal burning units at Valmy are the end of 2019 for Unit 1,and end of 2025 for Unit 2,but
the Parties agree to treat the shutdown year of both units as the end of 2028 for ratemaking
purposes.”Id.at 5.Also,the Parties “support authorization of regulatory accounts”to facilitate
the appropriate accounting.See Id.
YOU ARE FURTHER NOTIFIED that the Parties agree Idaho Power will negotiate
with Valmy co-owner NV Energy —using prudent and commercially reasonable efforts —to
accomplish a permanent end to coal burning operations of North Valmy Unit 1 by December 31,
2019,and of North Valmy Unit 2 by December 31,2025.Id.at 6.Alternatively,the Parties
agree that Idaho Power will use prudent and commercially reasonable efforts to “end its
participation in the operation of North Valmy Unit I by December 31,2019,and North Valmy
Unit 2 by December 31,2025.”Id.Idaho Power agrees to provide the Commission and Parties
a status report on such negotiations with NV Energy by December 31,2017.Id.The Parties
agree to file comments responding to such status report by March 31,2018.Id.
YOU ARE FURTHER NOTIFIED that the Parties in the North Valmy case agree or
do not object to the terms in the Settlement Stipulation (IPC-E-16-23)filed in the revised
depreciation case.Id.at 9.
NOTICE OF SCHEDULE
YOU ARE FURTHER NOTIFIED that any party choosing to file comments in
support of the Settlement Stipulations in these cases must do so by May 18,2017.
YOU ARE FURTHER NOTIFIED that comments from any member of the public
are due on May 25,2017.
YOU ARE FURTHER NOTIFIED that these cases will continue to be processed
under Modified Procedure,Rule 201-204 (IDAPA 31 .0l.01.201-.204),as described in Order No.
33644.Any comments must be submitted via the procedure and to the addresses described in
Order No.33690.
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ORDER
IT IS HEREBY ORDERED that any party may file comments in support of the
Settlement Stipulations by May 18,2017.Comments from any member of the public are due on
May 25,2017,after which the matter shall be fully submitted.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 72 ‘
day of May 2017.
PAUL KJRLLAND ,PRESIDENT
KRT INE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
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Diane M.Hanian
Commission Secretary
0:IPC-E-16-231PC-E-1 6-24cljh Settlement
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ORI)ERNO.33763 6