20171214notice_of_settlement_stipulation_order_33948.pdf

Office of the Secretary
Service Date
December 14,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-16-32
OF IDAHO POWER COMPANY FOR A )
DETERMINATION OF HELLS CANYON )NOTICE OF SETTLEMENT
RELICENSING COSTS THROUGH 2015 AS )STIPULATION
PRUDENTLYINCURRED )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.33948
On December 14,2016,Idaho Power Company applied to the Commission to deem
prudent $220,845,830 in Hells Canyon Complex (HCC)relicensing costs.The Company did not
ask to adjust customer rates,but stated it would make such request in a later case.The
Commission issued a Notice of Application on January 4,2017.Order No.33686.The
following Parties intervened:Idaho Irrigation Pumpers Association (IIPA),and Industrial
Customers of Idaho Power (ICIP).See Order Nos.33707,33716.On August 18,2017,the
Commission issued a procedural schedule.Order No.33849.
In October 2017,the Parties met to discuss settlement.Idaho Power,Commission Staff,
and IIPA (hereafter "Signing Parties")then filed a Settlement Stipulation and joint motion to
approve it.The Signing Parties jointly asked the Commission to review the Settlement
Stipulation under Modified Procedure,without waiving the right to a hearing if the Commission
were to reject the Agreement.ICIP agreed to process the Settlement Stipulation under Modified
Procedure as proposed by the Signing Parties.
With this Order,the Commission vacates deadlines set in Order No.33849,and provides
notice of the Settlement Stipulation and notice that the matter will be processed by Modified
Procedure,with deadlines to submit comments about the Settlement Stipulation as set below.
NOTICE OF SETTLEMENT STIPULATION
YOU ARE HEREBY NOTIFIED that the Signing Parties entered a Settlement
Stipulation summarized as follows:
Prudence Determination.The Signing Parties agree to accept expenditures incurred
through December 31,2015 totaling $216,504,145 ($213,606,878 in HCC relicensing
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33948 l
expenditures,and $2,897,267 in Baker County settlement agreement expenditures)as
"reasonably incurred and eligible for inclusion in customer rates at a later date."Settlement at 3.
The Signing Parties agree this represents "a reasonable compromise of the positions in the case
for the purpose of settlement and that the agreed upon amounts should be approved by the
Commission in their entirety without further adjustment."Id at 4.
Accounting Order.In its Application,Idaho Power included expenditures related to a
settlement agreement with Baker County,Oregon,regarding concerns about the economic
impact of HCC operations on the County.Id.The Signing Parties agree Idaho Power's expense
associated with the Baker County settlement agreement (which Idaho Power included in its
Application)"should be classified as a reasonably incurred [operations and maintenance]
expense and should be deferred for amortization at a later time."Id.at 4-5.The Signing Parties
thus support establishing a regulatory asset for $2,897,267 in Baker County settlement agreement
expenditures incurred through December 31,2015,and reviewed in this proceeding.Id at 5.
The Signing Parties further agree that the regulatory asset will also include additional amounts
that will be reviewed for prudence in a future proceeding:$295,338 incurred between January 1,
2016 and September 30,2017;and expendituresincurred October 1,2017 through December 31,
2017.Id.at 5.The Signing Parties agree the regulatory account "will not accrue [Allowance for
Funds Used During Construction (AFUDC)]or a carrying charge of any type."Id
AFUDC Currently Recovered in Rates.The Commission previously authorized the
Company to collect $6,520,122 annually from Idaho Power's Idaho customers for partial
recovery of AFUDC associated with the HCC relicensing project.Id.(citing Order Nos.30722,
32426).The Signing Parties agree Idaho Power will continue to collect (and separately track)
this AFUDC from customers,and "net the AFUDC recovered against the total HCC relicensing
AFUDC included in the Construction Work in Progress balance in future rate proceedings."Id.
at 5-6.
Annual Reporting of HCC Relicensing Expenditures.The Signing Parties agree that,
upon Commission approval of the Settlement Stipulation,Idaho Power "will cease filing a status
report and AFUDC accumulation update in the current format."Id.at 6 (citing Order No.
30722).The Signing Parties agree to "collaborate on a process for filing future annual reports"
to keep the Commission apprised of HCC relicensing efforts and the associated costs.Id
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33948 2
Miscellaneous.The Signing Parties agree to a retention policy for Idaho Power's
information related to HCC relicensing.Also,the Signing Parties agree Idaho Power shall
request the Commission's prudence determination on HCC relicensing expenditures incurred
after December 31,2015,through a date "not to exceed five years from the Commission's
approval of this Settlement Stipulation."Id.at 7.
YOU ARE FURTHER NOTIFIED that the full Settlement Stipulation,Application,and
supporting workpapers,testimony,and exhibits are available for public inspection during regular
business hours at the Commission offices.They also may be viewed on the Commission's
website at www.puc.idaho.gov by clicking on "File Room"and then "Electric Cases"and going
to the case number referenced in the above caption.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the agreement
of the Signing Parties.The Commission will independently review the proposed Settlement
Stipulation consistent with Commission Rules 271-280,IDAPA 31.01.01.271-280,to decide
whether to approve or reject it,or state conditions under which to accept it.
YOU ARE FURTHER NOTIFIED that,in light of the Settlement Stipulation,deadlines
set in Order No.33849 are vacated.
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 31.01.01.201-204.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 the Parties,and any person desiring to state a
position on this Settlement Stipulation,may file a written comment about the Settlement
Stipulation with the Commission no later than January 5,2018.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 Settlement
Stipulation may be mailed to the Commission and Idaho Power at the followingaddresses
reflected below:
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33948 3
Commission Secretary Lisa Nordstrom
Idaho Public Utilities Commission Tim Tatum
PO Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 West Idaho St.(83702)
PO Box 70
Street Address for Express Mail:Boise,ID 83707-0070
E-mail:[e-mail]
472 W.Washington Street [e-mail]
Boise,ID 83702-5918 [e-mail]
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 at www.puc.idaho.cov.Click the "Case Comment or Question Form"
under the "Consumers"tab,and complete the form using the case number on the front of this
document.These comments must also be sent to the Company at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that the Parties may file reply comments no later
than January 31,2018.
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 conducted
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code,and the Commission
may enter any final Order consistent with its authorityunder Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that the deadlines previously set in Order No.33849 are
vacated.
IT IS FURTHER ORDERED that the Settlement Stipulation be processed under
Modified Procedure,Rules 201-204 (IDAPA 31.01.01.201-.204).The Parties and any interested
persons shall have until January 5,2018 to file written comments.The Parties shall have until
January 31,2018 to file reply comments,if any.
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33948 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2017.
PAUL KJE ÁÑDE ,PRESIDENT
KRIS'ÏIÑE RAPEP,CO MISlIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Lega1\LORDERS\IPCE1632_djh_kk Ntc Settlement_MOD.doc
NOTICE OF SETTLEMENT STIPULATION
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ORDER NO.33948 5