20190322Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: MARCH 20,2019
SUBJECT 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; CASE NO. IPC-E-19-08.
On March 8,2019,ldaho Power Company ("ldaho Power" or "Company") filed an
Application requesting Commission approval of certain matters related to the North Valmy
Generating Station ("Valmy"). The Company requests a June 1,2019 effective date.
THE APPLICATION
The Company requests the Commission: (l) approve the North Valmy Project
Framework Agreement between NV Energy and Idaho Power dated February 22,2019, (2) find
all actual Valmy investments through December 31, 2018 were prudently incurred, (3) allow
investments at Valmy forecasted through December 31, 2025 to be included in the levelized
revenue requirement mechanism established by Order No. 33771, and (4) adjust customer rates
to recover the associated incremental annual levelized revenue requirement of $1.21 million,
which equates to an overall increase of .1 I percent, effective June I ,2019. Application at l-2.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a forty-two day comment period and a seven day reply period.
DECISION MEMORANDUM 1
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a forty-two day comment period and a seven day reply period?
Edward J
Deputy General
I:\Legal\ELECTRICUPC-E- I 9-08\IPCE I 908_dec memo_ej
2DECISION MEMORANDUM