HomeMy WebLinkAbout20230508Final_Order_No_35774.pdfORDER NO. 35774 1
Office of the Secretary
Service Date
May 8, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
FOR ELECTRIC SERVICE TO RECOVER
COSTS ASSOCIATED WITH THE NORTH
VALMY POWER PLANT
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR A
DETERMINATION VALIDATING THE
NORTH VALMY POWER PLANT
BALANCING ACCOUNT TRUE-UP
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CASE NOS. IPC-E-19-08
IPC-E-22-05
ORDER NO. 35774
On March 31, 2023, Idaho Power Company (“Company”) filed a Motion for Extension of
Time (“Motion”) to comply with Order Nos. 34349 in Case No. IPC-E-19-08 and 35494 in IPC-
E-22-05.
Having reviewed the Company’s Motion and the Commission Staff’s (“Staff”)
recommendation, we now issue this Order granting the Motion as described below.
BACKGROUND
On May 31, 2017, the Commission issued Order No. 33770 in Case No. IPC-E-16-23
approving a settlement stipulation adopting revised depreciation accrual rates to become effective
on June 1, 2017
Also on May 31, 2017, the Commission issued Order No. 33771 in Case No. IPC-E-16-24
approving a settlement stipulation allowing the Company to recover $13.3 million annually and
establishing a balancing account to track costs and recovery of a levelized revenue requirement to
accelerate the depreciation of Valmy Unit #1 and Unit #2 by the end of 2028 for ratemaking
purposes and the decommissioning costs associated with a targeted 2019 Unit #1 exit date and a
2025 Unit #2 exit date.
On May 31, 2019, the Commission issued Order No. 34349 in Case No. IPC-E-19-08
approving several items related to the balancing account established in Order No. 33771, and
relevant to this Motion, directed the Company to “file an annual report detailing the amounts
recorded to the Valmy balancing account;” “submit a filing no later than February 28, 2022 to true-
up the balancing account with forecast-to-actuals, with rates to become effective June 1, 2022;”
ORDER NO. 35774 2
and “work with Staff to identify documentation for audit and prudence review.” Order No. 34349
at 4.
On August 9, 2022, the Commission issued Order No. 35494 in Case No. IPC-E-22-05
updating the balancing account established in Order No. 33771 and affirming the Company’s true-
up calculation; however, the Commission did not issue a determination of prudence for actual
investments at that time due to lack of documentation. As a result, the Commission directed the
Company to “file additional documentation to support a prudence determination as part of the
Company’s Valmy Levelized Revenue Requirement Balancing Account 2022 Annual Review
after meeting with Staff to expand the documentation process.” Id. at 6-7.
THE MOTION
The Company requested the Commission:
1. Allow the Company to file its 2022 Annual Review as part of the Company’s 2023
General Rate Case (“GRC”) to satisfy requirements in Order No. 34349; and
2. Approve a time extension to file for a prudence determination of actual Valmy
investments to satisfy requirements in Order No. 35494.1
Although the Commission’s Orders relate specifically to Valmy, the issue of obtaining
proper documentation generally applies to Staff’s inability to gather the necessary information it
needs to review prudence of investments in plants the Company owns in partnership with other
utilities, but does not itself operate. Staff believes a process is closer to finalization for this;
however, Staff would like to ensure that the final process (1) applies to all of the Company’s
partnered plants; (2) provides the same level of transparency, access, and information as if the
plant is Company owned and operated; and (3) is completed by the time that the Company files its
2023 GRC. This will ensure Staff has the ability to efficiently and effectively determine the
prudence of investments during the 2023 GRC for all of the Company’s partnered plants (i.e.
Valmy and Bridger Coal Plants).
1 Since issuing Order No. 35494, the Company has met with Staff on several occasions to determine a documentation
process that will provide the necessary information for Staff to audit and determine the prudence of actual investments
to be included in the Valmy balancing account. Finalization of this process is a necessary step to comply with the two
Orders described above.
ORDER NO. 35774 3
STAFF’S RECOMMENDATION
Staff recommended the Company’s Motion be granted. Additionally, Staff recommended
the Commission stress the importance of finalizing the documentation process such that it (1)
applies to all the Company’s partnered plants; (2) provides the same level of transparency, access,
and information as if the plant is Company owned and operated; and (3) is completed by the time
that the Company files its 2023 GRC.
COMMISSION DECISION AND FINDINGS
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503. After reviewing the record, we find it fair, just, and reasonable to grant the
Company’s Motion allowing it to file its 2022 Annual Review with its 2023 GRC and subsequently
allowing additional time to meet the filing requirements of Order No. 35494.
We strongly encourage the Company to work with Staff to develop a documentation
process that (1) applies to each of the Company’s partnered plants; and (2) provides the same level
of transparency, access, and information as if the plant is Company owned and operated. Staff and
the Company should meet in time to finalize this process by the time that the Company files its
2023 GRC.
ORDER
IT IS HEREBY ORDERED that the Company’s Motion is granted.
IT IS FURTHER ORDERED that the Company should meet with Staff to develop a
documentation process for partnered plants as described above. This should be done in time to
finalize this process by the time that the Company files its 2023 GRC.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
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ORDER NO. 35774 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 8th day of
May 2023.
__________________________________________
ERIC ANDERSON, PRESIDENT
__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER
__________________________________________
EDWARD LODGE, COMMISSIONER
ATTEST:
__________________________________
Jan Noriyuki
Commission Secretary
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