20180604notice_of_proposed_settlement_order_no_34083.pdf

Office of the Secretary
Service Date
June 4,2018
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 PROPOSED
ASSOCIATED WITH PARTICIPATION IN )SETTLEMENT
THE WESTERN ENERGY IMBALANCE )MARKET )NOTICE OF
)MODIFIED PROCEDURE
)NOTICE OF COMMENT
)DEADLINE
)ORDER NO.34083
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
requested that the Application be processed by Modified Procedure and that a final order be
issued on the request by March 31,2018.Id.at 6.Previously,the Commission set a December
13,2017,intervention deadline.Order 33938.No intervenors appeared.
On February 13,2018,Staff notified the Commission that it had reached a settlement
with the Company.On February 20,2018,the Commission issued Order No.33989 vacating the
schedule.On May 24,2018,the Company filed a settlement stipulation,and requested approval
by June 29,2018.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Stipulation proposes the following:
Idaho Power will not include forecasted EIM participation costs or benefits in the
forecast component of its Schedule 55,as proposed in its Application.Rather,the
Company will add a calculated EIM-related monthly revenue requirement to its monthly
Power Cost Adjustment ("PCA")deferral calculation based on actual EIM participation
costs.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO.34083 1
Actual EIM-related benefits will be reflected in Idaho Power's monthlynet power
supply expenses.
As of April 1,2018,the Company will cease deferring incremental EIM
participation operations and maintenance start-up costs,and will begin deferring the
monthly revenue requirement associated with EIM participation to the PCA deferral
account.
A portion of the deferred tax non-cash reduction approved by the Commission in
Order No.34071 will be used to offset the EIM Regulatory Asset account.The entire
EIM deferral amount will be offset in 2018.
The EIM revenue requirement calculation will include rate base (return on and
return of)and operating costs incurred.
EIM participation costs will continue to be reported as an element of actual power
supply costs on the PCA deferral report until such costs are transferred into base rates in a
future rate proceeding.
COMMISSION SETTLEMENT RULES
YOU ARE FURTHER NOTIFIED that the Commission will review the proposed
settlement consistent with Commission Rules 271-280.
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 to decide whether to approve it,reject it,or state conditions under which to accept it.
The proposed settlement's proponents ultimatelybear the burden to prove that it is just,fair,and
reasonable,in the public interest,or otherwise in accordance with law or regulatory policy.
YOU ARE FURTHER NOTIFIED that the Application,Settlement,and forthcoming
comments are available for public inspection during regular business hours at the Commission
offices.The Application is also available on the Commission's web site at www.puc.idaho.gov.
To access the documents,click on the "File Room"tab at the top of the Commission's webpage,
scroll down to "Open Electric Cases,"and then click on the case number as shown on the front
of this document.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO.34083 2
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 through .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 or party desiring to state a
position on this Application may file a written comment in support or opposition with the
Commission no later than June 19,2018.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 Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
Commission Secretary Julia Hilton
Idaho Public Utilities Commission Idaho Power Company
PO Box 83720 PO Box 70
Boise,ID 83720-0074 Boise,ID 83707
email:[e-mail]
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-5918
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 comment form using the case number as it
appears on the front of this document.
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.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO.34083 3
ORDER
IT IS HEREBY ORDERED that the parties'Application to approve Settlement
Stipulation shall be processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-
.204).
IT IS FURTHER ORDER that all parties interested in submitting written comments
must do so on or before June 19,2018.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2018.
PAUL KJELLANDER,PRESIDENT
KRI ITN1 RAPER,C MISSIONER
ERIÚ ANDER N,OMMISSIONER
ATTE
Diane Hanian
Commission Secretary
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NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO.34083 4