20190118Decision Memo.pdf

DECISION MEMORANDUM
TO:COMI\ISSIONER KIELLANDER
COMN{ISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRATARY
COM1VtrSSION STATF
LEGAL
FROM:IGRL KLEIN
DEPUTY ATTORNEY GENERAL
DATE: JANUARY 18,2019 I FC- E- )g-o L
SUBJECT:IDAHO POWER COMPANY',S TARTFF ADVTCE NO. 18-04 (ANNUAL
COMPLIANCE FILING TO UPDATE SI,JBSTATION ALLOWANCE
UNDER SCHEDULE 19, LARGE POWER SERVICE)
On or about December 28, 2018, Idaho Power Company frled Tariff Advice No. l8-
04. The Company's Tariff Advice proposed to update the Substation Allowance amount in
Schedule 19, Large Power Service, with the changes to take effect February l,2Ol9.
The Cornpany explained the Tariff Advice is an annual filing that updates the
Substation Allowance amount in Schedule 19, as required by Commission Order Nos. 32893 and
32914. The Company stated it updated the Substation Allowance using the same method it used
in Case Nos. IPC-E-13-09 and IPC-E-14-01, which increased the Substation Allowance amount
by $8,173, or l2.7Vo to $72,559. The Company primarily attributed this increase to increased
material costs, including an lSVo increase in the cost of a 30MVA transformer and a?4?o 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 ll.4\Voto9.8l%o.
STAFT RECOMMENDATION
Tariff advices are primarily used to introduce new services or practices or "minor
changestoexistingschedules."Rule 134.01 (IDAPA3l.0l.0l.l34,0l).Here,Staffsinitialreview
of the Company's Tariff Advice leads Staff to question whether a minor change is being proposed.
Staff thus recommends the Commission treat the Company's Tariff Advice as an Application and
issue a Notice of Application and Notice of Modified Procedure that (l) suspends the Company's
proposed effective date of February l, 2019 per Idaho Code $ 6l-622, and (2) sets a February 19,
2019 comment deadline and a February 26,2019 reply deadline.
DECISTON MEMORANDUM t
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that ( I ) suspends the Company' s proposed effective date of February I , 20 l9 per Idaho
Code $ 6l-622, and (2) sets a February 19,2019 comment deadline and a February26,2019 reply
dcadline?
#/ /z-
KarlT. Klein
Deputy Attomey General
2DECISION MEMORANDUM