20180411notice_of_application_order_no_34028.pdf

Office of the Secretary
Service Date
April 11,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-18-02
COMPANY'S APPLICATION FOR )AUTHORITY TO IMPLEMENT FIXED )NOTICE OF APPLICATION
COST ADJUSTMENT RATES FOR )ELECTRIC SERVICE FROM JUNE 1,2018 )NOTICE OF
THROUGH MAY 31,2019 )MODIFIED PROCEDURE
)ORDER NO.34028
On March 15,2018,Idaho Power Company applied to implement new Fixed Cost
Adjustment (FCA)rates for electric service from June 1,2018 through May 31,2019,and a
corresponding tariff Schedule 54,Fixed Cost Adjustment.With its Application,Idaho Power
proposes to decrease FCA rates by 3.60 percent from current billed revenue for the affected
customer classes,with the average residential customer's bill decreasing by about $3.60 per month.
Idaho Power asks for an effective date of June 1,2018,and requests that the Commission process
the matter by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that FCA is a rate adjustment mechanism.Using
traditional rate design,an electric utility recovers fixed costs'through each kilowatt-hour (kWh)
sold,and is thus discouraged from reducing sales volume by investing in energy efficiency and
demand-side management.See Application at 2.The FCA separates or "decouples"Idaho
Power's fixed-cost revenues from its volumetric energy sales.Id.at 3.This decoupling enables
the Company to recover its fixed costs to deliver energy -as set in its most recent general rate case
-even when energy sales and revenues have decreased.Order No.33295 at 1;see Application at
3.
YOU ARE FURTHER NOTIFIED that Idaho Power's FCA program was first initiated
in 2007 as a pilotprogram for residential service and small general service customers.Application
at 2.In 2012,the Commission approved the Company's request to make the FCA a permanent
program.Order No.32505.In 2015,the Commission approved a settlement stipulation that
i "Fixed costs"are a utility's costs to provide service that do not vary with energy use,output,or production,and
remain relativelystable between rate cases.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34028 1
changed the FCA calculation methodology by replacing use of weather-normalized data with
actual data,to ensure improved accuracy.Order No.33295 at 5;see Application at 3.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes an FCA of
$14,889,453.64 for the residential class,and $820,771.46 for the small general service class,for a
total of $15,710,225.10.Id at 4.The proposed FCA deferral balance is below the current FCA
deferral balance collected in customers'rates.Id at 4.Thus,Idaho Power proposes an FCA rate
decrease of 3.60 percent from current billed revenue for the affected customer classes.Id.This
equates to new FCA rates of 0.2943 cents per kWh for the residential class and 0.3704 cents per
kWh for the small general service class.Id
YOU ARE FURTHER NOTIFIED that Idaho Power states it will notify its customers
as required by Rule 125 by issuing a press release to media in its service area,and through a
customer notice distributed in customer bills.Id at 5.The notices in customer bills will be
distributed during the current billing cycle,with the last notice being sent on or around April 20,
2018.Id
YOU ARE FURTTIER NOTIFIED that the Application,copies of the proposed tariff
Schedule 54,Direct Testimony of Pawel P.Goralski,and Exhibits 1-6 have been filed with the
Commission and are available for public inspection during regular business hours at the
Commission offices.The Application and attachments are also available on the Commission's
web site at ww iMio.gov.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.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determinedthat the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
pursuant to Rules 20 l 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 any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission by no
later than May 10,2018.The comment must contain a statement of reasons supporting the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34028 2
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application may be mailed to the Commission and
Idaho Power at the addresses reflected below:
Commission Secretary Donovan E.Walker,Attorney
Idaho Public Utilities Commission Pawel P.Goralski,Regulatory Analyst
PO Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 West Idaho Street (83702)
PO Box 70
Street Address for Express Mail:Boise,ID 83707-0070
E-mail:dwal ker a idahonower.com
472 W.Washington Street dockes a idahopower.com
Boise,ID 83702-5918 peoralski a idahopower.com
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
the front of this document.These comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE El RTilER NOTIElED that llaho Power may file reply comments,if
necessary,no later than May 18,2018.
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 held
pursuant to the Commission's jurisdictionunder Title 61 of the Idaho Code,and specifically Idaho
Code §61-503.The Commission may enter any fmal 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34028 3
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure,
Rule 201-204 (IDAPA 31.01.01.201 -.204).Parties and persons shall have until May 10,2018 to
file written comments,and the Company shall have until May 18,2018 to file a reply,if any.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this //
day of April 2018.
PAUL KJELLANDER.PRESIDENT '
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
IPCE1802 notcofapp_ep!
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34028 4