20180412Application.pdf

3Effi*@
An IDACORP Company
LISA D. NORDSTROM
Lead Counsel
I [e-mail]
REC I I VED
iil[8 APR lZ pt{ !: Lg
, r,' i?ii i::, ti,i,!'*l8sroru
April12,2018
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
47 2 W est Wash i ngton Street
Boise, ldaho 83702
Re: Case No. IPC-E-18-06
2018-2019 Power Cost Adjustment - ldaho Power Company's Application
and Testimony
Dear Ms. Hanian
Enclosed for filing in the above matter please find an original and seven (7) copies
of ldaho Power Company's Application.
Also enclosed for filing are an original and eight (8) copies of the Direct Testimony of
Nicole A. Blackwell. One copy of the aforementioned testimony has been designated as
the "Reporter's Copy." ln addition, a disk containing a Word version of Ms. Blackwell's
testimony is enclosed for the Reporter.
Lastly, four (4) copies each of ldaho Power Company's press release, customer
notice, and direct mail postcard are also enclosed.
Very truly yours,
X*a(^*+,*-,*
Lisa D. Nordstrom
LDN:kkt
Enclosures
P.O. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I nord strom @ ida hopowe r. com
C=atrl\/Ent\i_\_,_tYl_lJ
2:if LPn lZ pt{ L: r+B
l'\ ! l;.- ,, I lra
' l . .-trJ, i '- -r'-: llSSiO,\
Attorney for ldaho Power Company
BEFORE THE !DAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT POWER
cosT ADJUSTMENT ('PCA") RATES
FOR ELECTRIC SERVICE FROM JUNE
1 , 2018, THROUGH MAY 31,2019.
CASE NO. IPC-E-18-06
APPL!CATION
ldaho Power Company ("!daho Power" or "Company"), in accordance with ldaho
Code S 61-502 and RP 052, hereby respectfully makes application to the ldaho Public
Utilities Commission ("Commission") for an order approving an update to Schedule 55
based on the quantification of the 2018-2019 PCA to become effective June 1,2018, for
the period June 1,2018, through May 31 ,2019. The Company has included its proposed
rates and charges for electric service in the state of ldaho as Attachment 1 to this
Application. lf approved, the 2018-2019 PCA will result in an overall revenue decrease
of approximately $22.6 million, or a 1.90 percent decrease from current billed revenue.
APPLICATION - 1
)
)
)
)
)
)
)
!n support of this Application, ldaho Power has filed the Direct Testimony of Nicole
A. Blackwell, Regulatory Analyst, which details the calculation of the proposed 2018-2019
PCA rates and explains the factors that impact this year's PCA quantification.
I. BACKGROUND
1. ldaho Power is an ldaho corporation whose principal place of business is
1221West ldaho Street, Boise, ldaho 83702.
2. ldaho Power is a public utility supplying retail electric service to more than
500,000 customers in southern ldaho and eastern Oregon. ldaho Power is subject to the
jurisdiction of this Commission in ldaho and to the jurisdiction of the Public Utility
Commission of Oregon. ldaho Power is also subject to the jurisdiction of the Federal
Energy Regulatory Commission.
3. On March 29, 1993, byOrderNo.24806 issued in Case No. IPC-E-92-25,
the Commission approved the implementation of an annual power cost adjustment
procedure in order to provide consistency and stability to rates. The PCA is a cost
recovery mechanism that passes on both the benefits and costs of supplying energy to
ldaho Power customers. Neither ldaho Power nor its shareholders receive any financial
return from the PCA.
4. On January 9, 2009, by Order No. 30715 issued in Case No. IPC-E-08-19,
the Commission approved certain changes to the PCA mechanism, including a 95
percenU5 percent sharing mechanism between customers and the Company. Order No.
30715 also approved changes to the Load Grov,rth Adjustment Rate ('LGAR"), third-party
transmission expense, the PCA forecast, and power supply expense distribution.
5. On January 13, 2010, the Commission issued Order No. 30978 in Case No.
IPC-E-09-30 approving the settlement stipulation filed in lieu of a general rate case.
APPLICATION - 2
Through this stipulation, a revenue sharing mechanism was established to allow the
Company to accelerate the amortization of Accumulated Deferred lnvestment Tax Credits
(ADITC) if the Company's actual ldaho jurisdictional year-end Return on Equity ("ROE")
fell below 9.5 percent in any fiscal year from 2009 through 2011. This mechanism also
included a provision for revenue sharing if the Company's actual ldaho jurisdictional year-
end ROE exceeded 10.5 percent in any year over the same three-year period. Per the
terms of the stipulation, 50 percent of the ldaho jurisdictional year-end ROE in excess of
10.5 percent was to be shared with customers in the form of a rate reduction.
6. On March 15,2011, the Commission issued Order No. 32206 in Case No.
GNR-E-10-03 adopting a revised LGAR methodology and changing the name of the
methodology to the Load Change Adjustment Rate ("LCAR').
7 . On December 27 , 2011, the Commission issued Order No. 32424 in Case
No. IPC-E-11-22 approving the settlement stipulation filed on December 12,2011,
extending the revenue sharing mechanism through 2014 and modifying portions of the
previous accounting order. More specifically, Order No. 32424 approved modifications
to the sharing portion of the mechanism, which allowed for greater customer benefits.
First, for actual year-end ldaho jurisdictional earnings greater than 10 percent ROE, up
to and including 10.5 percent in any year from 2012 through 2014, the earnings would be
shared equally between ldaho customers and the Company. The customer revenue
sharing benefit will be in the form of a reduction to rates at the same time as the PCA
becomes effective. This modification provides customers an additional25 basis points of
sharing potential. Second, ldaho earnings above a 10.5 percent ROE would also be
shared, with customers receiving 75 percent of the earnings applied as an offset to the
Company's pension balancing account.
APPLICATION - 3
8. On October 9,2014, the Commission issued Order No. 33149 in Case No.
IPC-E-14-14 approving the settlement stipulation filed on September 3, 2014, extending
the revenue sharing mechanism through 2019 and modifying portions of the previous
accounting order. More specifically, Order No. 33149 approved modifications to the
sharing mechanism to reflect adjustments to the various sharing thresholds, as well as
the method by which shared amounts would be provided to customers. First, for actual
year-end ldaho jurisdictional earnings greater than 10 percent ROE, up to and including
10.5 percent in any year from 2015 through 2019, the earnings will be shared between
customers and the Company on a 75 percent and 25 percent basis, respectively. The
customer revenue sharing benefit will be in the form of a reduction to rates at the same
time as the PCA becomes effective. Second, ldaho earnings above a 10.5 percent ROE
will also be shared, with customers receiving 50 percent of the earnings in the form of a
reduction to rates at the same time as the PCA becomes effective, as well as 25 percent
of the earnings applied as an offset to the Company's pension balancing account, with
the Company retaining the remaining 25 percent.
9. On May 28,2015, the Commission issued Order No. 33307 in Case No.
!PC-E-15-15 converting the LCAR to a Sales Based Adjustment ('SBA') rate, as well as
modifying the PCA deferral balance's monthly interest calculation. Per Order No. 33307,
the SBA rate will be calculated in the same manner as the LCAR, with the only
modification being the replacement of the load-based megawatt-hour ("MWh')
denominator with the corresponding sales-based MWh denominator. Second, the Order
requires the Company to calculate monthly interest on the deferral balance by assigning
annual base Net Power Supply Expense ('NPSE') to each month according to expected
APPLICATION - 4
base rate revenue collection as set in the Company's last general rate case, Case No.
IPC-E-11-08.
il. 2018-2019 PCA CALGULATTON
10. The PCA is a rate mechanism that quantifies and tracks annual differences
between actual NPSE and the normalized or "base level" of NPSE recovered in the
Company's base rates for recovery or credit through an annual rate change on June 1.
The PCA is also the rate mechanism used by the Company to provide direct revenue
sharing benefits resulting from the revenue sharing mechanism approved in Order No.
33149.
11. The PCA mechanism utilizes a 12-month test period of April through March
('PCA Year") and is comprised of a forecast component and a true-up component ("True-
Up"). The PCA forecast component is based on the Company's March Operating Plan
and represents the difference between the NPSE forecast from the March Operating Plan
and the base level NPSE recovered in the Company's base rates. The True-Up compares
actual PCA account results to actual NPSE collections for the prior PCA year. The PCA
True-Up contains a second component that tracks the collection of the prior year's True-
Up amount, referred to as the "True-Up of the True-Up."
12. With the exception of Public Utility Regulatory Policies Act of 1978 (PURPA)
expenses and demand response incentive costs, the PCA allows the Company to pass
through to ldaho customers 95 percent of the annual differences in actual NPSE as
compared to the base level NPSE, whether positive or negative.
13. The testimony and exhibits of Ms. Blackwell describe and compute the
standard PCA rate to be effective June 1 ,2018, through May 31 ,2019. The system-level
forecast of NPSE for the 2018-2019 PCA Year is $403,075,273, which is $97,390,404
APPLICATION.5
higher than the currently approved base level NPSE of $305,684,869 and $25,623,641
higher than last year's forecast amount of $377 ,4:51,632. Compared to last year, this
year's PCA forecast reflects a decrease in low-cost hydro generation available to serve
customers. The decrease in hydro generation is expected to be met primarily with
increased market power purchases and natural gas generation. The reduction in hydro
generation is also expected to reduce the Company's projection of off-system sales,
which serve as an offset to NPSE. Forecast coal-fired generation and expense are
expected to decrease as compared to last year's forecast. The 2018-2019 PCA forecast
component to be collected from ldaho customers is $90,309,292.
14. The True-Up deferral balance at the end of March 2018, with interest
applied, was an approximate negative $20 million. This credit to customers was largely
driven by higher-than-forecast hydro generation, which also resulted in higher-than-
forecast surplus energy sales.
15. ln the True-Up of the True-Up, the Company over collected last year's PCA
True-Up balance by $898,592. The 2017-2018 combined PCA.True-Up is a decrease of
approximately $57 million relative to the 2016-2017 combined PCA True-Up.
16. The Company's uniform PCA rate for the 2018-2019 PCA Year is comprised
of (1) the 0.6315 cents per kilowatt-hour ('kwh") adjustment for the 2018-2019 projected
power cost of serving firm loads under the current PCA methodology and 95 percent
sharing, (2) the negative 0.1398 cents per kWh for the 2017-2018 True-Up portion of the
PCA, and (3) the negative 0.0063 cents per kWh for the True-Up of the True-Up. The
sum of these three components results in an approximate 0.4854 cents per kWh charge
for all rate classes.
APPLICATION - 6
III. ADDITIONAL RATE ADJUSTMENTS
17 . The Company's earnings in each year from 201 1 through 2015 resulted in
revenue sharing with ldaho customers totaling $121.2 million, either as a direct rate offset
in the PCA or as an offset to amounts that would have othenarise been collected in rates.
As described in greater detail in the direct testimony and exhibits of Ms. Blackwell, the
Company's 2017 Idaho jurisdictional year-end ROE was 9.94 percent. ln accordance
with the terms of the modified revenue sharing mechanism approved by Order No. 33149,
the Company's ldaho jurisdictional year-end ROE fell below the 10.0 percent ROE
threshold for revenue sharing. Therefore, the 2018-2019 PCA will not include a revenue
sharing component.
18. ldaho Power joined the Western Energy lmbalance Market ("ElM") on
April4, 2018. Participation in the EIM realtime market is expected to result in efficiencies
that translate into NPSE savings for the Company's customers. As of April 4,2018, EIM
benefits that are achieved will accrue directly to ldaho Power customers and will be
tracked through the PCA deferral report. !n Case No. IPC-E-17-16, Idaho Power
requested approvalfor a method of recovery for costs associated with participation in the
ElM. The procedural schedule in this case was suspended on February 20,2018, as a
result of parties reaching settlement in principle. The Company and Commission Staff
are currently working to finalize and execute a settlement stipulation regarding EIM cost
recovery.
19. The Company's 2017-2018 PCA rates included a one-time refund of $13
million of previously collected Energy Efficiency Rider funds for the June 1 ,2017, through
May 31 ,2018, PCA collection period, consistent with Order No. 33736. As of May 31,
APPLICATION - 7
2018, the refund will no longer be applicable and has therefore been eliminated from the
2018-2019 PCA for the June 1 ,2018, through May 31 ,2019, PCA collection period.
IV. PROPOSED 2018.2019 RATE DECREASES
20. The 2018-2019 total PCA amount, as measured from the currently
approved base level NPSE, is $69.4 million. This represents a decrease in total billed
revenue of $22.6 million, a decrease of 1.90 percent, for ldaho customers, effective June
2018 through May 2019.
21. On March 15, 2018, Idaho Power filed its annual Fixed Cost Adjustment
("FCA') in Case No. IPC-E-18-02. The Company's 2018 FCAfiling proposes a $19.3
million decrease in current billed revenue, or a 3.60 percent decrease, for ldaho
Residential and Small General Service customers, effective June 2018 through May
2019.
22. On April 12,2018, ldaho Power filed a Settlement Stipulation and Motion to
Approve Settlement Stipulation in Case No. GNR-U-18-01, the Commission's lnvestigation
into the lmpact of Federal Tax Code Revisions on Utility Costs and Ratemaking. !f the
settlement stipulation is approved as filed, it will result in a direct rate reduction associated
with federal tax reform and ldaho state tax rate changes of approximately $26.5 million,
or a2.22 percent decrease, for ldaho customers, effective June 2018 through May 2019.
The direct rate reduction will be provided to ldaho customers via two rate components on
June 1,2018: $18,678,936 will be provided as a base rate reduction and $7,818,624 will
be provided through the Earnings Sharingl component of Schedule 55 for June 1,2018,
through May 31 ,2019.
1 Pursuant to Order Nos. 30978, 32424, and 33149, ldaho Power credits customer bills through
the Earnings Sharing component of the PCA for any revenues shared pursuant to these orders.
APPLICATION - 8
23. lf both annual adjustment mechanisms, the PCA and FCA, as well as the
rate reduction proposal associated with tax reform are approved as filed, the combined
impact is an overall decrease in current billed revenue of $69.3 million, or 5.81 percent,
for June 2018 through May 2019. The combined impact to current billed revenue by class
is presented in the following table.
FIXED COST ADJUSMENT (FCA)
-3.60/o -3.73 I rurn N/A
POWER COST AD'USMENT TPCA}
-1.29o,/o -0.80%-2.70o/e -3.27o1o -r.91%
FEDERAL TAX REFORM FILING
-2.15% l-2.r0% ta.ae%2.25% | -Z.33"r"
I
, lndudes lightlng schedules; ' lncludrs special rontrccts
24. Attachment 1 to this Application is a copy of ldaho Power's proposed IPUC
No.29, Tariff No. 101, in both clean and legislative formats, which contains the tariff
sheets specifying the proposed Schedule 55 rates for providing retail electric service to
its customers in the state of ldaho for June 1,2018, through May 31 ,2019.
25. Attachment 2 to this Application contains a summary of revenue impact
showing the effect to each customer class and special contract customer of applying the
Company's proposed PCA rates that collect $22.6 million less, from June 2018 through
May 2019, than the PCA rates currently in effect.
R*sideatial Small General
s€rvl(e
Lrge
6eneral
Serrkel
Large
Pouerl lrrigation
COMBINED EFFECT OF ALL THREE FITING
-7.04%-6.63%-4.48%-5.52%-4.25%
COMBINED IMPACT
APPLICATION - 9
N/A
V. MODIFIED PROCEDURE
26. ldaho Power believes that a technical hearing is not necessary to consider
the issues presented herein and respectfully requests that this Application be processed
under Modified Procedure, i.e., by written submissions rather than by hearing. RP 201,
ef seg. lf, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony and support the Application in such
hearing.
VI. COMMUNICATIONS AND SERVICE OF PLEADINGS
27. ln conformance with RP 125, this Application will be brought to the attention
of ldaho Power's customers by means of a press release to media in the Company's
service area and a customer notice distributed in customers' bills, both of which
accompany this filing. To ensure that all customers are notified in a timely manner and
have sufficient time to submit comments, ldaho Power is sending a direct mail postcard
to a subset of customers that receive their bill toward the end of the processing time for
this case. As such, a bill insert and/or the direct mail postcard will be mailed no later than
May 18, 2018.
28. The Company has also prominently displayed its intent to file the PCA on
its website since March 14,2018. Upon filing of this Application, this web graphic will link
directly to the PCA press release and bill insert. ldaho Power will also keep its
Application, testimony, and exhibits open for public inspection at its offices throughout the
state of ldaho. ldaho Power asserts that this notice procedure satisfies the Rules of
Procedure of this Commission; however, the Company will, in the alternative, bring the
Application to the attention of its affected customers through any other means directed by
this Commission.
APPLICATION - 1O
29. Communications and service of pleadings with reference to this Application
should be sent to the following
Lisa D. Nordstrom
ldaho Power Company
1221\Nest ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
I nord strom@ ida hopower. com
dockets@ idahopower. com
VII. REQUEST FOR RELIEF
30. ldaho Power respectfully requests that the Commission issue an order
approving an update to Schedule 55 based on the quantification of the 2018-2019 PCA,
resulting in an overall decrease to current billed revenue of approximately $22.6 million
to become effective June 1,2018, as detailed in Attachment 2.
DATED at Boise, ldaho, this 1 2th day of April 2018
LISA D. NORDST
Attorney for ldaho Power Company
Matthew T. Larkin
Timothy E. Tatum
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
[e-mail]
ttatum@ ida hopower. com
APPLICATION - 11
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-I9-06
IDAHO POWER GOMPANY
ATTACHMENT 1
PROPOSED TARIFF
(clean and legislative formats)
CLEAN FORMAT
ldaho Power Company Twelfth Revised Sheet No. 55-1
Cancels
|.P.U.C. No. 29, Tariff No. 101 Eleventh Revised Sheet No. 55-1
SCHEDULE 55
POWER COST ADJUSTMENT
AP LITY
This schedule is applicable to the electric energy delivered to all ldaho retail Customers served
under the Company's schedules and Special Contracts. These loads are referred to as "firm" load for
purposes of this schedule.
BASE POWER COST
The Base Power Cost of the Company's rates is computed by dividing the sum of the Company's
power cost components by firm kWh sales. The power cost components are segmented into three
categories: Category 1, Category 2 and Category 3. Category 1 power costs include the sum of fuel
expense and purchased power expense (excluding purchases from cogeneration and small power
producers), less the sum of off-system surplus sales revenue and revenue from market-based special
contract pricing. Category 2 power costs include purchased power expense from cogeneration and small
power producers. Category 3 power costs include demand response incentive payments. The Base
Power Cost is 2.0420 cents per kWh, which is comprised of Category 1 power costs of 1.0708 cents per
kWh, Category 2 power costs of 0.8926 cents per kWh and Category 3 power costs of 0.0787 cents per
kwh.
PROJECTED POWER COST
The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the Category
1, Category 2 and Category 3 power cost components for the forecasted time period beginning April 1
each year and ending the following March 31 . The Projected Power Cost is 2.6902 cents per kWh, which
is comprised of Category 1 power costs of 1.4Q47 cents per kWh, Category 2 power costs of 1.2337
cents per kWh and Category 3 power costs of 0.0518 cents per kWh.
TRUE-UP AND TRUE-UP OF THE TRUE-UP
The True-up is based upon the difference between the previous Projected Power Cost and the
power costs actually incurred. The True-up of the True-up is the difference between the previous year's
approved True-Up revenues and actual revenues collected. The total True-up is (0.1461) cents per kWh.
EARNINGS SHARING
Order Nos. 30978, 32424, and 33149 directed the Company to share a portion of its earnings
above a certain threshold with customers through the annual Power Cost Adjustment. The Company's
2017 earnings were below the prescribed threshold resulting in a credit of 0.0000.
Schedule Description
Residential Service
Master Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Small General Service
Large General Service - Secondary
Large General Service - Primary
d per kWh
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
1
3
5
7
9S
9P
IDAHO
lssued per Order No.
Effective - June 1,2018
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company
l.P.U.C. No. 29. Tariff No. 101
Seventh Revised Sheet No. 55-2
Cancels
Sixth Revised Sheet No. 55-2
EARNINGS SHARING (Continued)
9T
15
195
19P
197
24
40
41
42
1
3
5
7
9S
9P
9T
15
19S
19P
197
24
40
41
42
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
Agricultural lrrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
Monthlv Credit
Micron
Simplot
DOE
Description
Residential Service
Mastered Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Small General Service
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
Agricultural I rrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
$0.00
POWER COST ADJUSTMENT
The Power Cost Adjustment is the sum of. 1) 95 percent of the difference between the Projected
Power Costs in Category 1 and the Base Power Costs in Category 1;2) 100 percent of the difference
between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2; 3) 100
percent of the difference between the Projected Power Costs in Category 3 and the Base Power Costs
in Category 3; 4) the True-ups; and 5) Earnings Sharing.
The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules
and Special Contracts are shown below. The monthly Power Cost Adjustment applied to the per unit
charges of the nonmetered schedules is the monthly estimated usage times the cents per kWh rates
shown below.
Schedule
00
00
$0
$0.
26
29
30
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
d per kWh
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
0.4854
IDAHO
lssued per Order No.
Effective - June 1,2018
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Sixth Revised Sheet No. 55-3
Cancels
|.P.U.C. No. 29, Tariff No. 101 Fifth Revised Sheet No. 55-3
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
POWER COST ADJUSTMENT (Continued)
Micron
Simplot
DOE
26
29
30
0.4854
0.4854
0.4854
EXPIRATION
The Power Cost Adjustment included on this schedule will expire May 31 ,2019
IDAHO
lssued per Order No.
Effective - June 1, 2018
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
LEGISLATIVE FORMAT
ldaho Power Company S+ven+Iwelth Revised Sheet No. 55-1
Cancels
l.P.U.C. No. 29. Tariff No. l0lTenthEleventh Revised Sheet No. 55-1
SCHEDULE 55
POWER COST ADJUSTMENT
APPLICABILITY
This schedule is applicable to the electric energy delivered to all ldaho retail Customers served
under the Company's schedules and Special Contracts. These loads are referred to as "firm" load for
purposes of this schedule.
BASE POWER COST
The Base Power Cost of the Company's rates is computed by dividing the sum of the Company's
power cost components by firm kWh sales. The power cost components are segmented into three
categories: Category 1, Category 2 and Category 3. Category 1 power costs include the sum of fuel
expense and purchased power expense (excluding purchases from cogeneration and small power
producers), less the sum of off-system surplus sales revenue and revenue from market-based special
contract pricing. Category 2 power costs include purchased power expense from cogeneration and small
power producers. Category 3 power costs include demand response incentive payments. The Base
Power Cost is z.O83€9gg* cents per kWh, which is comprised of Category 1 power costs of 1.0927708
cents per kWh, Category 2 power costs of 0.91€88926 cents per kWh and Category 3 power costs of
0.08032€Z cents per kWh.
The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the Category
1, Category 2 and Category 3 power cost components for the forecasted time period beginning April 1
each year and ending the following March 31. The Projected Power Cost is 2.57Qe-02 cents per kWh,
which is comprised of Category 1 power costs of 1.?€1€,4947_cents per kWh, Category 2 power costs of1.n#q cents per kWh and Category 3 power costs of 0.052818 cents per kWh.
TRUE-UP AND TRUE-UP OF THE TRUE-UP
The True-up is based upon the difference between the previous Projected Power Cost and the
power costs actually incurred. The True-up of the True-up is the difference between the previous year's
approved True-Up revenues and actual revenues collected. The total True-up is 03585CI-!3Q]-) cents
per kWh.
EARNINGS SHARING
Order Nos. 30978,32424, and 33149 directed the Company to share a portion of its earnings
above a certain threshold with customers through the annual Power Cost Adjustment. The Company's
20162 earnings were below the prescribed threshold resulting in a credit of 0.0000.
Schedule Description
Residential Service
Master Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Small General Service
Large General Service - Secondary
Large General Service - Primary
d per kWh
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
1
3
5
7
9S
9P
IDAHO
lssued per Order No. 3€775
Effective - June 1,20179
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company $*hseyedh Revised Sheet No. 55-2
Cancels
l.P.U.C. No. 29. Tariff No. 101 FifthSixth Revised Sheet No. 55-2
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
EARNINGS SHARING (Continued)
9T
15
195
19P
197
24
40
41
42
26
29
30
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
Agricultural I rrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
Monthlv Credit
Micron
Simplot
DOE
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
$0.00
00
00
$0.
$0.
The fellewing rate sehedules will reeeive a rat+eredit asseeiated with the refund ef EE Riderfunds
i
9S targe General Serviee Seeendary (0,0864)
POWER COST ADJUSTM
The Power Cost Adiustment is the sum of: 1) 95 oercent of the difference between the Proiected
Power Costs in Cate
Oetween tne Prqecte
in Categorv 3; 4) the and 5) Earnings Sharin
IDAHO
lssued per Order No. 3€775
Effective - June 1,20118
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
l0 Unmetered General Serviee (0,1034
ldaho Power Company $*hseyedh Revised Sheet No. 55-2
Cancels
l.P.U.C. No. 29. Tariff No. 101 FifthSixth Revised Sheet No. 55-2
The monthlv Power Cost Adiustment rates aoolied to the Enerov rate of all metered schedules
and SBecial Contracts are shown below- The monthlv Power Cost Adiustment apolied to the oer unit
charqes of the nonmetered schedules is the monthlv estimated usaoe times the cents oer kWh rates
sholun beloul
Schedule Description d oer kWh
1 Residential Service o 62+348s4
Mastered Metered Mobile Home Park 0. 854
5 Residential-Time-of-Dav Pilot Plan 0.62544854
7 Small General Service 0.58984854
9S Laroe General Service - Secondarv 0 64974854
9P Laroe General Service - Primarv 0 66444854
9T Laroe Gene I Service - Transmission 0.651+1854
15 Dusk to Dawn Liqhtino 0.48754854
195 Laroe Power Service - Secondarv 0 6&t&1854
19P Laroe Power Service - Primarv 0.ru4854
197 Laroe Power Service - Transmission 0.67364854
24 Aqricultural I rriqation Service 0.w854
40 Unmetered General Service 0.63294854
42 Traffic Control Liohtins 0.68+4854
IDAHO
lssued per Order No. 33775
Effective - June 1,20119
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Fifthgixth Revised Sheet No. 55-3
Cancels
l.P.U.C. No. 29. Tariff No. 101 Feu*hFifth Revised Sheet No. 55-3
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
e
1 Residential Servi
POWER COST ADJUSTMENT (Continued)
26
29
30
Micron
Simplot
DOE
0.678-24354
0.681€4954
0.67€64954
EXPIRATION
The Power Cost Adjustment included on this schedule will expire May 31, 20189
IDAHO
lssued per Order No. 33775
Effective - June 1,20179
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
GASE NO. IPC-E-I8-06
IDAHO POWER COMPANY
ATTACHMENT 2
REVENUE IMPACT SUMMARY
6o
qoFD(,oGoooLo
oN
,jo
6
=@oN
oEl
ssoo\ot
ots1\OFoo
@N
N_ O-NNotoooo;o@qt
o
sto@@- lo-o€N€o- to-
AN o
onqqNO60
o6oo)O-OJ
o- olNooqa
6
@ooo@-\ooo6@- N-NOoooo {
N
o_
oa
osGo
6otoE6E
6oF
oN
, EEEl 33EI - -Eol ooool E- aE
HlEPsBEU)l)-O-F
so@N@o
f.f.xa@os>@@N=999*
o@6^q\qtsooo;o$o-
ooNoS@r@N- @- --@ooOFoNNO
O6-
60
oo@o\tO$9oNoooosso
--tt 91
oto^\\e3Nrr:
FO@Oo@o6
o$o*O-*- o- o-FOFOoF
OFOONO(Ooooooqsoss- o- v-@O-ONNoFN
rFrO
@ooNNNOO
s
P
o
+@
N
$-ooryo
oNo_s@o-oN
@qo@
N@ryo
o_oo'-:
@
oNoNo6-Noo-
oooNoo
E9>6(E3-3 E siPo! Z =OcOkc.:ooo(n-yotuF.9.9.Eo-", .c,naaZZF.966 EEEHE39.E-EH_9F33EEs?E38p'eo6PPEPte=Eb
E E E E:8 E H 93 Eg€:;:;E6xe=
Fi-PEqEqFE#Fg
-No$o@N@-?:|!
ss sssssssss
OO:!OOOTO-@ooc!aZc?oqc!9-:qqq\
FONOOT-oN
SSeBBeBBggS&p*;s$tHhBbpB
@ro$@Oe\tONFooN9orO6OrO@F@- @- o- o- t_ N_'l @_ O- o- N_@rnOONNrOtsA@NO$OO@OO$No$r@oONNO@r\1;a NN.N.j,joioc;qO O FN6o$ Oo 6No060
N@O@F@O6oNoNN@6@O(OOOOtONOOr(O@roNoOOqd oo@gdo@o*@OO$NoNrNo6Fo NOee-@ 3 @ { N9 0 @o
RRpRbsBggbSBpE;FErHe;EEe
oNON@r@FNOS@NoONON6@otroO_ O_ N_ O- O- O- - @- @- $- F-
NN6ONNNS@roNNN6OO@NONOO\tNOOo$@O@r;o aiNo,joN@o@r+ 9r@eoo qOeNrr0 Q oo
otoo(o@o$N@N@O@NOooorOoNN_ O- N- 6_ @- O- $- O_ O_ O_ O_OONOODNOOTON$NNo$rr-ONF- 61 O- @- o_ 9- o- O- N- N- N-
O$rNo@N$-NNoNOrN(OFN
n O N-
TOOOTNOOOO@0ONON@-ooooN_ N-N_O- -o-$-o_@*rO$@rN$NOF
Fova*-93X?E$
To(r
oct F:.ol 6d!Eto
El gl EsEEl dl lukl =l .9PFl El -'o.61 66:t E=EI EE
=l 6qEI oGll ci=
9l.lol>lottl
cl
BI
-tolo-l
olrlclol>lotil
Ic-olrPEEIE;E9I--1 g&l
-l
=l:tolo-l
-olEE;I;6&l
po :lN >J I
EE96 ur Jlz
=loool
EE PI9 EEI<i3l
ol
Oi60:ldoll
E
_g
ino
Do
@
_o
=
p
-g
in6oF
I
oc:
ooE6
o
oo
ooo
co)ooo-
ofEo
ott--co=8oEt,!ooP
b9ao.c,9io
igEOEE3Eato=in
E
E
fo
o5IoE->N trEt g6
9q^!6
E 5E -=s
i5E$iotr6:B€b IEPE tE!fg6o
olzl