20171129notice_of_application_order_no_33938.pdf

Ofnee of the Secretary
Service Date
November 29,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-17-16
OF IDAHO POWER TO ESTABLISH A )
METHOD OF RECOVERY FOR COSTS )NOTICE OF APPLICATION
ASSOCIATED WITH PARTICIPATION IN )
THE WESTERN ENERGY IMBALANCE )NOTICE OF
MARKET )INTERVENTION DEADLINE
)ORDER NO.33938
On November 14,2017,Idaho Power Company applied to the Commission for an Order
authorizing the Company to establish an interim method of recovery of costs associated with
participation in the western Energy Imbalance Market (EIM)through a temporary rate
component in Tariff Schedule 55,the Power Cost Adjustment.Application at 1.The Company
asked that its Application be processed by Modified Procedure and requested a case schedule
that would allow for an order to be issued on or before March 31,2018.Id.at 6.Staff
recommended that the Commission set a deadline for requests to intervene.With this Order,the
Commission provides notice of the Company's Application,and sets a deadline for petitions to
intervene.
BACKGROUND
In November 2014,the California Independent System Operator (CAISO)and PacifiCorp
formed the western EIM.The western EIM is a five-minute market administered by CAISO.
The market utilizes an automatic model to identify the least-cost energy resources to serve real-
time customer demand.The western EIM "focuses solely on real-time imbalances and allows
EIM entities to retain all balancing responsibilities and transmission provider duties."Id.at 2.
EIM participants bid resources into the market and the operator dispatches those resources based
on the marginal price for energy imbalances factoring in load,available generation,and
transmission congestion.Id.Idaho Power plans to begin participating in the western EIM in
April 2018.Id.EIM participants by that time will include PacifiCorp,the California
Independent System Operation (CAISO),NV Energy,Inc.,Arizona Public Service Company,
Portland General Electric Company,and Powerex Corp.Id
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33938 1
In a previous case,Case No.IPC-E-16-19,the Company sought to defer costs related to
joiningthe EIM in a regulatory asset until they could be amortized into rates after the Company's
EIM participation begins.Order No.33706 at 2.The Commission found that the Company's
EIM participation "would provide an opportunity for benefits greater than costs"and thus the
possibility of a net benefit to customers.Id at 9.The Commission concluded "that the
Company's joining the EIM is reasonable and in the public interest."Id.The Commission
authorized Idaho Power to track the incremental operations and maintenance (O&M)expenses of
joiningthe EIM in a deferral account with a ten-year amortization period.Id at l 1.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that,to participate in the EIM and achieve net power
supply expense savings,Idaho Power anticipates it will incur incremental costs of $13.71
million,a roughly$2 million decrease from its estimate in Case No.IPC-E-16-19.Id at 4.
YOU ARE FURTHER NOTIFIED that the Company "seeks authorization to establish an
interim method of recovery for the incremental costs associated with joiningthe EIM."Id at 3.
Specifically,the Company proposes to include the revenue requirement associated with the
incremental costs of EIM participation as a temporary rate component in Tariff Schedule 55,the
Power Cost Adjustment,until these costs and benefits can be reflected in base rates.Id
YOU ARE FURTHER NOTIFIED that Idaho Power states this will allow it to "more
closely match the timing of benefits and costs of participation"in the EIM,and "allows for
administrative efficiencies and utilizes the same tariff schedule that EIM-related benefits will
ultimatelybe reflected in."Id
YOU ARE FURTHER NOTIFIED that the Company proposes to update the revenue
requirement associated with EIM-related costs as well as Schedule 55 rates annually,with new
rates going into effect June 1 of each year.Id.at 4-5.
YOU ARE FURTHER NOTIFIED that the Application,testimony of Tami White,Senior
Manager of Revenue Requirement with Idaho Power,and three attached exhibits have been filed
with the Commission and are available for public inspection during regular business hours at the
Commission offices.The Application and accompanying documents are also available on the
Commission's Website at www.puc.idaho.gov under "File Room"and then "Electric Cases."
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33938 2
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons who wish to intervene in this matter to
obtain the rights of a party (e.g.to file formal discovery,present evidence,or cross-examine
witnesses at a hearing)must file a Petition to Intervene with the Commission under Commission
Rules of Procedure 72 and 73,IDAPA 31.01.01.072 and .073.Persons who wish to intervene
as a party must file a petition to Intervene no later than 14 days from the service date of
this Order.Such persons shall also provide the Commission Secretary with their electronic mail
address to facilitate further communications in this case.
YOU ARE FURTHER NOTIFIED that after the intervention deadline runs,the
Commission Secretary shall issue a Notice of Parties.The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.After the Notice of Parties is issued,Commission Staff
shall meet with the Company and with any intervening parties who wish to participate in the
meeting to discuss how the parties wish to process the case.
YOU ARE FURTHER NOTIFIED that persons who would like 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 to other parties.
The comment must contain a statement of reasons supporting the comment.Written comments
concerning this Application shall be mailed to the Commission and the Company at the
followingaddresses:
Commission Secretary Julia A.Hilton
Idaho Public Utilities Commission Tami White
PO Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 W.Idaho St.
PO Box 70
Street Address for Express Mail:Boise,ID 83707
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 located at www.puc.idaho.gov.Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the form using the case number as it appears on
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33938 3
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 all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code,and specifically Idaho Code
§§61-501,61-524,and 61-525.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 persons desiring to iñtervene in this matter shall file a
Petition to Intervene no later than 14 days from the service date of this Order.Once the deadline
for intervention has passed,the Commission Secretary shall prepare and issue a Notice of
Parties.
IT IS FURTHER ORDERED that,after the Notice of Parties has issued,Commission
Staff shall confer with the parties regarding a procedural schedule for this matter,and report the
proposed schedule to the Commission.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33938 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of November 2017.
PAUL KJELLANDEl PRESIDENT
KRI.8ÌINERAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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