20180514Staff Supplemental Comments.pdf

BRANDON KARPEN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-03s7
IDAHO BAR NO. 7956
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR AUTHORITY
TO IMPLEMENT POWER COST
ADJUSTMENT (PCA) RATES F'OR ELECTRIC
SERVICE FROM JUNE 1,2018, THROUGH
MAY 31,2019.
RECEIVED
2018 t{AY ltr Pl{ 3: 35
lr.),rr'l;l iliiILlC'i il l'f'!i,.'l ilCltii*iISSION
CASE NO. IPC-E.18.06
SUPPLEMENTAL COMMENTS
OF THE COMMISSION STAFF
Street Address for Express Mail:
472 W, WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Brandon Karpen, Deputy Attorney General, submit the following
supplemental comments in Case No. IPC-E-I8-06.
SUPPLEMENTAL COMMENTS
On May 10, 2018, Commission Staff ("Staff') filed comments supporting Idaho Power
Company's Application for authority to implement new Power Cost Adjustment ("PCA") rates
for electric service from June l, 2018, through May 31,2079. The proposed PCA rates result in
a$22.6 million decrease in billed revenues. Subsequent to filing those comments, Staff filed
comments on May 14,2018, in Case No. GNR-U-I8-01 ("Tax Reform Case") supporting the
Idaho Power Settlement Stipulation and Motion to Approve Settlement Stipulation
("Stipulation") regarding the impact of federal tax code revisions on utility costs and ratemaking.
A provision of the [daho Power Stipulation signed by the Parties in Case No. GNR-U-18-01
provides for a portion of the benefits from the Tax Cuts and Jobs Act of 2017 be returned to
customers through the PCA beginning on June 1,2018. Because the Idaho Power Settlement
ISTAFF COMMENTS MAY 14,2018
Stipulation in the Tax Reform Case was filed on the same date as the Company's Application in
this case, neither the Application nor Staff s comments addressed the Tax Reform impacts on the
PCA.
Section l3 of the Idaho Power Stipulation in the Tax Reform Case provides for a
$26,497,560 direct rate reduction on June I ,2018, associated with the benefits of the Tax Cuts
and Jobs Act of 2017. The direct rate reduction will be provided to customers through
$ I 8,678,936 provided as a base rate reduction, and $7 ,818,624 through the Earnings Sharing
component of the PCA.
Staff s Recommendation No. 1 in its Comments filed in this PCA case recommend that
the Commission approve the Company's proposed PCA rates as filed. Approving the proposed
PCA rates as filed would not allow for the approximately $7.8 million to be retumed to
customers through the Earnings Sharing component. Accordingly as recommended in
GNR-U-18-01, Staff recommends that the Commission approve the proposed Idaho Power
Stipulation as filed, and direct the Company to f,rle updated compliance tariffs in IPC-E-18-06 to
account for the additional $7.8 million benefit from the Tax Reform case, and that the
Commission approve the rate reduction in this year's PCA case.
Respectfully submitted this I tttY
day of May 2018
Deputy Attorney General
Technical Staff: Donn English
Umisc/comments/ipce I 8.6bkde supplemental comments
2STAFF COMMENTS MAY 14,20t8
CERTIFICATE OF SERVICB
I HEREBY CERTIFY THAT I HAVE THIS 14TH DAY OF MAY 2018, SERVED
THE FOREGOING SUPPLEMENTAL COMMENTS OF THE COMMISSION STAFF,
IN CASE NO. IPC-E-I8-06, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
LISA D NORDSTROM
REGULATORY DOCKETS
IDAHO POWER COMPANY
PO BOX 70
BOISE rD 83707-0070
E-mail : [e-mail]
dockets@ idahopower. com
MATTHEW T LARKIN
TIMOTHY E TATUM
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-mail : [e-mail]
ttatum@idahopower. com
SECRET
CERTIFICATE OF SERVICE