20170118notice_of_application_order_no_33694.pdf

Office of the Secretary
Service Date
January 18, 2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO REVISE TARIFF
SCHEDULE91-THEENERGY
EFFICIENCY RIDER
-------------------
)
) CASE NO. IPC-E-16-33
)
) NOTICE OF APPLICATION
)
) NOTICE OF
) INTERVENTION DEADLINE
)
) ORDER NO. 33694
On December 22, 2016, Idaho Power filed an Application requesting that the
Commission approve: (1) a decrease of 0.25% to the collection percentage of the Energy
Efficiency Rider (from 4% to 3.75% of base rate revenue), effective March 1, 2017; and (2) a
$13 million refund of previously collected Rider funds to be included in the 20l7/2018 Power
Cost Adjustment (PCA) mechanism, effective June 1, 2017; and (3) the elimination of the annual
transfer of $4 million of Rider funds through the PCA. The Company asked the Commission to
process the Application by Modified Procedure.
With this Order, the Commission issues notice of the Application, sets out an
intervention schedule, and suspends the Company's requested effective date for a period of 30
days plus 5 months.
BACKGROUND
In 2002, the Commission authorized the creation of Schedule 91 ("the Rider") as a
means to fund demand-side management (DSM) programs. See Order No. 29026. The goal of
this program is to match the level of funding with the level of energy efficiency expenditures
over time. To that end, the Commission has allowed changes to the Rider percentage over the
years-collecting additional funding through the PCA to fund the Rider, or refunding surplus
Rider funds through the PCA. Since 2012, the Company has experienced a mismatch in funding
levels compared to expenditures. In other words, it has been collecting more through the Rider
than it has spent on DSM programs.
In Case No. IPC-E-16-03, the Company's 2015 DSM prudency request, the
Commission directed the Company "to work with Staff and other stakeholders in adjusting the
Rider," and "submit a proposal for revising its Rider percentage to this Commission no later than
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33694 1
Friday, December 30, 2016." See Order No. 33583. After working on a process as described by
the Commission, the Company seeks to make adjustments to the Rider.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Rider collects about $40 million per year.
Application at 3. The Company projected a Rider surplus balance of approximately $9 million at
the end of 2016. Id. The Company further projects that leaving the Rider collection level at 4%
would likely result in further growth in Rider surplus through 2020. Id. at 5.
YOU ARE FURTHER NOTIFIED that following a collaborative effort that included
Commission Staff, Industrial Customers of Idaho Power, and the Idaho Conservation League, the
Company now proposes the following changes:
Id. at 5.
(1) Decrease the collection percentage of the Rider from 4% to 3.75%;
(2) Include a $13 million refund of previously collected Rider funds in the
2017/2018 PCA, effective June 1, 2017; and
(3) Eliminate the annual transfer of $4 million of Rider funds through the
PCA.
YOU ARE FURTHER NOTIFIED that the Company forecasts that 3.75% "will
adequately mitigate the further accumulation of surplus Rider balances." Id. at 6. Additionally,
it projects that 3.75% will adequately fund DSM programs through 2020. Id.
YOU ARE FURTHER NOTIFIED that the Company further agreed to a refund of
$13 million of surplus Rider funds, and requests an effective June 1, 201 7. Id. The Company
provides several reasons it prefers providing customers with the refund on June 1, 2017, rather
than an earlier date for reasons including offsetting possible rate increases, mixed messaging,
and various accounting issues.
YOU ARE FURTHER NOTIFIED that the Company requests that this Application
be processed by Modified Procedure, and that the 0.25% decrease take effect March 1, 2017.
YOU ARE FURTHER NOTIFIED that the Company also requests a June 1, 2017,
effective date for ending the annual $4 million transfer of Rider funds through the PCA
mechanism.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33694 2
YOU ARE FURTHER NOTIFIED that the Application and supporting documents
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices. The Application and supporting documents are also
Click on the "File Room" tab at
the top of the 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, including Idaho
Code §§ 61-501 and -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, IDAPA 31.01.01 .000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of
Procedure 72 and 73, IDAPA 31.01.01.072 and -.073. Persons intending to participate as a
party in this matter must file a Petition to Intervene no later than fourteen days from the
service date of this Order. Persons desiring to present their views without parties' rights of
participation and cross-examination are not required to intervene and may present their
comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, the
Commission Staff will convene an informal prehearing conference for the parties to discuss a
schedule to process this case and other issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as Idaho
Power representatives in this matter:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33694 3
Lisa Nordstrom
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
Email:=="-"'-'====~~=~
Tami White
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: ~==~~===-~c...:..;:...~
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.
COMMISSION FINDINGS
The Company has requested that a proposed change to its collection under the Energy
Efficiency Rider be effective March 1, 2017. After reviewing Staffs suggested schedule, we
find that a March 1, 2017, effective date may not allow enough time for adequate review and
public participation. Therefore, we find it reasonable to suspend the proposed effective date of
March 1, 2017, for a period of thirty (30) days plus five ( 5) months. See Idaho Code § 61-622.
ORDER
IT IS HEREBY ORDERED that the proposed effective date of March 1, 2017, in
Case No. IPC-E-16-33 is suspended for a period of thirty (30) days plus five (5) months, or until
such earlier time as the Commission may issue an Order accepting, rejecting or modifying the
Application in this case.
IT IS FURTHER ORDERED that persons desiring to intervene in this matter shall
file a Petition to Intervene with the Commission no later than fourteen (14) days from the service
date of this Order.
IT IS FURTHER ORDERED that once a Notice of Parties is issued, Staff shall
convene an informal prehearing conference to discuss a schedule to process this case and other
issues as may be raised by the parties.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33694 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2017.
Diane M. Hanian
Commission Secretary
O:IPC-E-16-33 _bk
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33694 5
PER, co MISSIONER