20190122Application Tariff.pdf

RECEIVED
2018 December 3l PM 4:40
IDAHO PUBLIC
UTILITIES COMMISSION
KIffi*.
An IDACORP Company
LISA D. NORDSTROM
Lead Counsel
[e-mail] r-Fc- E- tq-o 2-
December 28,2018
Diane Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, ldaho 83720-007 4
Tariff Advice No. 18-04 .
Annual Compliance Filing to Update the Substation Allowance under
Schedule 19, Large Power Service
Dear Ms. Hanian
ldaho Power Company ("ldaho Power" or "Company") hereby submits its proposed
update to the Substation Allowance amount outlined in Schedule 19, Large Power Service
("Schedule 19"). This is the annual compliance filing to update the Substation Allowance
amount contained within Schedule 19 as required by ldaho Public Utilities Commission Order
Nos. 32893 and 32914. The following tariff sheet identifies the proposed modification:
Fifth Revised Sheet No. 19-6 Cancelling Fourth Revised Sheet No. 19-6
The cost estimation methodology the Company used in this tariff advice is the same
methodology the Company presented in Case Nos. IPC-E-13-09 and IPC-E-14-01. The
updated Substation Allowance reflects updated material costs, labor rates, and the stations
overhead rate. The Substation Allowance amount increased $8,173 to $72,559, or 12.7
percent. The primary driver for the increase of the Substation Allowance is attributed to
increased material costs; most notably, the cost of the 30 MVA transformer and 4-unit
metalclad increased 18 percent and 24 percent, respectively. The overall increase in the
material costs was offset by a decrease in the general overhead rate from 11.48 percent to
9.81 percent.
The Company is providing the workpapers used to calculate the per megawatt
Substation Allowance and the stations overhead rate in hard copy by U.S. mailas confidential
attachments to this tariff advice. Please note that information in the workpapers is
commercially sensitive and if disclosed freely could subject ldaho Power or its customers to
risk of competitive disadvantage or other business injury. The undersigned attorney, in
accordance with RP 67, certifies that the workpapers contain information that is a trade secret
as describedin ldaho Code S 74-101, et seq., and S 48-801, et seq., and as such are exempt
from public inspection, examination, or copying.
P.O. Box 70 (83707)
l22t W. ldaho St.
Boise, lD 83702
Re
Diane Hanian, Secretary
December 28,2018
Page 2
The Company respectfully requests that the proposed updates are approved and
become effective February 1,2019.
lf you have any questions regarding this tariff advice, please contact Regulatory
Analyst Grant Anderson at 388-6498 or [e-mail].
Sincerely,
"(,* !.(^ru+r."-*,
Lisa D. Nordstrom
LDN:kkt
Enclosures
ldaho Power Company Fou*hfjfih Revised Sheet No. 19-6
Cancels
l.P.U.C. No. 29, Tariff No. 101 ThidFourth Revised Sheet No. 19-6
SCHEDULE 19
LARGE POWER SERVICE
(Continued)
SPECIAL ARRANGEMENTS FOR SUBSTATION ALLOWANCES AND/OR TRANSIVIISSION VESTED
INTEREST (Continued)
Definitions (Continued)
Transmission Vested lnterest Portion is that part of the Company's transmission system in
which a Transmission Vested lnterest is held.
Substation Allowance
lf a Schedule 19 Customer's request for service requires the installation of new or upgraded
transformer capacity in Substation Facilities, the following considerations will be included in the
separate agreement between the Customer and the Company:
The Customer will initially pay for the cost of new or upgraded Substation Facilities
required because of the Customer's request. The Customer will be eligible to receive a one-
time Substation Allowance based upon subsequent sustained usage of capacity by the
Customer.
a. Substation Allowance: The maximum possible allowance will be
determined by multiplying the Customer's actual increase in load by $6438622;199 per
MW, but will not exceed the actual cost of the Substation Facilities.
b. Substation Allowance Refunds: The Substation Allowance will be
refunded to the Customer over a five-year period, with annual payments based on the
Customer's Basic Load Capacity at the time of refund. The first refund will be paid one
year following the first month energy is delivered through the new Substation Facilities.
The refunds will occur based on the following adjustment, which will be
added to the Substation Allowance received in the previous year. lf there is no
change in load from the previous year, the Substation Allowance for that year is
equalto the Substation Allowance from the previous year:
((Change in load from the previous year as measured in MW) x (Substation Allowance per MW))
Number of Substation Allowance Refunds remaining in five-year period
The Customer's annual refunds will be made in accordance with the
Substation Allowance amount stated in the separate construction agreement
between the Customer and the Company.
Transmission Vested lnterest
lf a Schedule 19 Customer's request for service requires the installation of new or upgraded
capacity in Transmission Facilities, and those Transmission Facilities are serving the Customer by a
radial feed, the following considerations will be included in the separate agreement between the
Customer and the Company:
IDAHO
lssued - December 29Q,201+9
Effective - February *7L,20199
Advice No.4ffil&Q4
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
I
ldaho Power Company Fifth Revised Sheet No. 19-6
Cancels
LP.U.C. No. 29. Tariff No. 101 Fourth Revised Sheet No. 19-6
SCHEDULE 19
LARGE POWER SERVICE
(Continued)
SPECIAL ARRANGEMENTS FOR SUBSTATION ALLOWANCES AND/OR TRANSMISSION VESTED
INTEREST (Continued)
Definitions (Continued)
Transmission Vested lnterest Portion is that part of the Company's transmission system in
which a Transmission Vested lnterest is held.
Substation Allowance
!f a Schedule 19 Customer's request for service requires the installation of new or upgraded
transformer capacity in Substation Facilities, the following considerations will be included in the
separate agreement between the Customer and the Company:
The Customer will initially pay for the cost of new or upgraded Substation Facilities
required because of the Customer's request. The Customer wil! be eligible to receive a one-
time Substation Allowance based upon subsequent sustained usage of capacity by the
Customer.
a. Substation Allowance: The maximum possible allowance will be
determined by multiplying the Customer's actual increase in load by $72,559 per MW,
but will not exceed the actual cost of the Substation Facilities.
b. Substation Allowance Refunds: The Substation Allowance will be
refunded to the Customer over a five-year period, with annual payments based on the
Customer's Basic Load Capacity at the time of refund. The first refund will be paid one
year following the first month energy is delivered through the new Substation Facilities.
The refunds will occur based on the following adjustment, which will be
added to the Substation Allowance received in the previous year. lf there is no
change in load from the previous year, the Substation Allowance for that year is
equalto the Substation Allowance from the previous year:
((Change in load from the previous year as measured in MW) x (Substation Allowance per MW))
Number of Substation Allowance Refunds remaining in five-year period
The Customer's annual refunds will be made in accordance with the
Substation Allowance amount stated in the separate construction agreement
between the Customer and the Company.
Transmission Vested lnterest
lf a Schedule 19 Customer's request for service requires the installation of new or upgraded
capacity in Transmission Facilities, and those Transmission Facilities are serving the Customer by a
radial feed, the following considerations will be included in the separate agreement between the
Customer and the Company:
IDAHO
lssued - December 28,2018
Effective - February 1,2019
Advice No. 18-04
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221Wesl ldaho Street, Boise, ldaho