20190124notice_of_application_order_no_34236.pdf

Office of the Secretary
Service Date
January 24,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-19-02
OF IDAHO POWER COMPANY TO )
INCREASE THE SUBSTATION )NOTICE OF APPLICATION
ALLOWANCE IN SCHEDULE 19,LARGE )POWER SERVICE )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34236
On or about December 28,2018,Idaho Power Company filed Tariff Advice No.18-
04.The Company's Tariff Advice proposed to update the Substation Allowance amount in
Schedule 19,Large Power Service,by 12.7%.The changes were to take effect February 1,2019.
At the Commission's January 22,2019 meeting,the Commission's Staff questioned
whether the Tariff Advice proposed only "minor changes to existing schedules,"as allowed by
Commission Rule 134.01 (IDAPA 31.01.01.134.01).Staff recommended the Commission allow
further investigation by treating the Company's Tariff Advice as an Application,suspending the
proposed effective date,and processing the case by Modified Procedure.
With this Order,the Commission deems the Tariff Advice to be,and refers to it as,an
Application.See Rule 134.02.The Commission provides notice of the Application,suspends the
Application's proposed effective date,and sets comment and reply deadlines under the
Commission's Rules of Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that under Company Schedule 19,if a customer asks
for service that requires the Company to add or upgrade transformer capacity in Substation
Facilities,the customer must initially pay the associated costs but is eligible for a one-time
Substation Allowance based on the customer's subsequent sustained usage of capacity.
Commission Order Nos.32893 and 32914 require the Company to update the Substation
Allowance each year.
YOU ARE FURTHER NOTIFIED that with this Application,the Company seeks to
update Schedule 19 to set the Substation Allowance as required by Order Nos.32893 and 32914.
The Company explains the maximum possible Substation Allowance currentlyis determined by
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34236 1
multiplyingthe customer's actual increase in load by $65,386 per megawatt (MW),with the
Substation Allowance not to exceed the actual cost of the Substation Facilities.With this
Application,the Company would increase the $/MW multiplierby $8,173 to $72,559,reflecting a
12.7%increase.
YOU ARE FURTHER NOTIFIED that the Company primarily attributes the increased
Substation Allowance to increased material costs,including an 18%increase in the cost of a
30MVA transformer and a 24%increase of a 4-unit metalclad.The Company noted the overall
increase in material costs was offset by a decrease in the general overhead rate from 11.48%to
9.81%.
SUSPENSION
After reviewing the Application,the Commission finds it appropriate to suspend the
proposed effective date to allow the Commission,Staff,and interested persons sufficient time to
investigate the reasonableness of the proposed increases.The Commission thus suspends the
proposed February 1,2019 effective date for the thirty (30)days plus five (5)months,or until the
Commission issues an earlier final order accepting,modifying,or rejecting the proposed schedules.
See Idaho Code §61-622.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission offices.These documents are also
available on the Commission's web site at www.puc.idaho.gov.Click on the "File Room"tab at
the top of the page,then select "Electric Cases"and click on the case number as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code,including Idaho Code
§§61-501,-502,and -503.
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 MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter,and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34236 2
31.01.01.201 through .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 opposition with the Commission by no
later than February 19,2019.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning this Application shall be mailed to the Commission and the
Company at the addresses reflected below:
For the Idaho Public Utilities For Idaho Power Company:
Commission
Lisa Nordstrom
Commission Secretary Grant Anderson
Idaho Public Utilities Commission Idaho Power Company
PO Box 83720 1221 West Idaho Street 83702
Boise,ID 83720-0074 P.O.Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:lnordstrom idahopower.com
Randerson idahopower.com
472 W.Washington Street dockets@ idahopower.com
Boise,ID 83702-5918
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 "Consumers"tab then click
the "Case Comment or Question Form"and complete the comment form using the case number as
it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,by no later than February 26,2019.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34236 3
ORDER
IT IS HEREBY ORDERED that the Company's Application be processed by Modified
Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting written
comments must do so by February 19,2019.The Company may file reply comments by no later
than February 26,2019.
IT IS FURTHER ORDERED that proposed February 1,2019 effective date be
suspended for the thirty (30)days plus five (5)months,or until the Commission issues an earlier
final order accepting,modifying,or rejecting the proposed schedules.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of January,2019.
PAUL K LLAND ,PRESIDENT
KRIS E RAPER,COM IONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\lPC-E-19-02\orders\IPCEl902nte app mod proc_kkdocx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34236 4