20190430Staff Report.pdf

EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10446
RECEIVEO
i0l9 iPR 30 Pil 2: rr5
' r, ri? iH,tgu#,} | 8r,o*
Street Address for Express Mail
472W. WASHINGTON
BOISE, IDAHO 83702-5918
Attomey for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
IDAHO POWER COMPANY TO STUDY FIXED
COSTS OF PROVIDING ELECTRIC SERVICE
TO CUSTOMERS
CASE NO. IPC.E-18.16
STAFF REPORT
BACKGROUND
On October 19,2018, Idaho Power Company petitioned the Commission to initiate a
docket to study fixed-cost recovery in basic charges and other rate design options as required by
Order No. 34046 in Case No. IPC-E- 17 -13. Petition at I ; Order No. 34046 at 3l .
In Order No. 34190, the Commission directed Staff to confer with intervening parties
about the procedural and substantive scope of the docket, proposed schedule, and other matters.
Order No. 34190 at2. The Commission further directed Staff to report back to the Commission
by April 30,2019, after which the Commission stated that it would issue additional orders or
notices setting further scope and procedure.
As a result of Order No. 34190, the parties in this matter have met for one pre-hearing
conference and three settlement meetings. Intervening parties (Parties) are Idaho Conservation
League, Avista Corporation, NW Energy Coalition, Idahydro, Idaho Irrigation Pumpers
Association, Inc., Rocky Mountain Power, Vote Solar, City of Boise City, Idaho Sierra Club, and
Idaho Clean Energy Association.
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1STAFF REPORT APRIL 3O,2OI9
STAFF REPORT
The parties have a general understanding of the scope of the study that will be conducted
by the Company. Parties also understand the rate structures and attributes to be studied, as well
as a general framework for the Company's analysis. Definitions of fixed cost are still being
discussed.
The process has been collaborative. In addition to vigorous and constructive discussions
about issues that are critical to the Company's analysis, individual parties have conducted and
presented the results of their own detailed analyses for discussion. Staff appreciates these
parties' willingness to conduct and present their own analysis to the group.
Staff also appreciates the Company's willingness to provide timely information, as well
as thorough explanations of that information. Staff notes that the Company has actively assisted
individual intervenors by helping to model their proposals.
Parties agree that it is appropriate to discuss specific aspects of the Class Cost of Service
(CCOS) model that influence fixed cost collection. Parties also agree that it would be
appropriate to identify and consider specific changes to the CCOS model.
Given the large number of possible rate designs, parties understand that the Company
intends to study a relatively small number of base case designs, and then study how fixed cost
recovery and other attributes are impacted by changes to those base case designs. Base case rate
designs will include the Company's current rate designs, rate designs informed by Cost of
Service, a number of "end points" used to exemplify the behavior of extreme variations to each
design, and a few specific rate designs that are of interest to parties. A list of base case rate
designs currently under discussion is included as Attachment A.
In addition to studying rate design attributes that are directly related to fixed cost
recovery, the Company will study additional attributes that may be considered when adopting or
modifying the Company's rate structure. These additional attributes include billing impacts
across customers with different usage patterns in each class, price signaling impacts to
conservation and peak reduction, and implementation costs. A list of rate design attributes
currently under discussion is included as Attachment B.
Staff anticipates that these issues will continue to be discussed at the Parties' next
meeting on June 18th, 2019. In the interim, the Company has indicated that it will be able to
continue developing models and tools for its analysis.
2STAFF REPORT APRIL 30,2OI9
RESPECTFULLY submitted this TCvr day of Apr il,2}lg
Edward J
Deputy General
Umisc/comments/ipce I 8. I 6ejmm staff report
JSTAFF REPORT APRIL 30,2OI9
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CERTIFICATE OF SERVICB
I HEREBY CERTIFY THAT I HAVE THIS 30th DAY OF APRIL 2019, SERVED
THE FOREGOING STAFF REPORT, IN CASE NO. IPC-E-I8-16, BY MAILING A
COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
LISA D NORDSTROM
IDAHO POWER COMPANY
PO BOX 70
BOrSE rD 83707-0070
E-MAIL: lnordstrom@,idahopower.com
BENJAMIN J OTTO
ID CONSERVATION LEAGUE
7IO N 6TH STREET
BOISE ID 83702
E-MAIL: botto@,idahoconservation.org
DAVID J MEYER ESQ
VP AND CHIEF COI.INSEL
AVISTA CORP
PO BOX3727
SPOKANE W A 99220-3121
E-MAIL: [e-mail]
ELECTRONIC ONLY
Joe Miller
j oe.miller@avi stacorp.com
ERIC L OLSEN
ECHO HAWK & OLSEN PLLC
PO BOX 61 19
POCATELLO ID 83205
E-MAIL: elo@,echohawk.com
TIM TATUM
CONNIE ASCHENBRENNER
IDAHO POWER COMPANY
PO BOX 70
BOrSE rD 83707-0070
E-MAIL: [e-mail]
[e-mail]
ELECTRONIC ONLY
do c kets @,i dahopower. corn
PATRICK D EHRBAR
DIR OF REG AFFAIRS
AVISTA CORP
PO BOX3727
SPoKANE W A 99220-3727
E-MAIL: [e-mail]
F. DIEGO RIVAS
NW ENERGY COALITON
1101 8TH AVE
HELENA MT 5960I
E-MAIL: [e-mail]
ANTHONY YANKEL
I27OO LAKE AVE
UNIT 2505
LAKEWOOD OH 44107
E-MAIL: [e-mail]
CERTIFICATE OF SERVICE
C TOM ARKOOSH
ARKOOSH LAW OFFICES
PO BOX 2900
BOISE ID 83701
E-MAIL: [e-mail]
[e-mail]
YVONNE R HOGLE
ROCKY MOUNTAIN POWER
I4O7 WN TEMPLE STE 320
SALT LAKE CITY UT 841 I6
E-MAIL: [e-mail]
DAVID BENDER
EARTHJUSTICE
3916 NAKOMA RD
MADISON WI 53711
E-MAIL: dbender@eartU ustice.org
ABIGAIL R GERMAINE
BOISE CITY ATTORNEY'S OFFFICE
PO BOX 500
BOrSE rD 83701-0500
E-MAIL : [e-mail]
KELSEY JAE NT-INEZ
IDAHO SIERRA CLUB
920 CLOYER DR
BOISE ID 83703
E-MAIL : kelsey@kelseyj aenunez.com
TED WESTON
ROCKY MOUNTAIN POWER
I4O7 WN TEMPLE STE 330
SALT LAKE CITY UT 84I16
E-MAIL : ted.weston@,pacifi corp.com
BRIANA KOBOR
VOTE SOLAR
358 S 7OO E STE 8206
SALT LAKE CITY UT 84102
E-MAIL: [e-mail]
ELECTRONIC ONLY
AL LL]NA
E-MAIL : aluna@earthj r"rstice.org
NICK THORPE
E-MAIL: [e-mail]
PRESTON N CARTER
GIVENS PURSLEY LLP
601 W BANNOCK STREET
BOISE TD 83702
E-MAIL: [e-mail]
ZACK WATERMAN
MIKE HECKLER
IDAHO SIERRA CLUB
503 W FRANKLIN ST
BOISE TD 83702
E-MAIL: [e-mail]
[e-mail]
CERTIFICATE OF SERVICE