20190329Decision Memo.pdf

DECISION MBMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: MARCH 29,2019
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER FOR
AUTHORITY TO IMPLEMENT FIXED COST ADJUSTMENT ("FCA")
RATES FOR ELECTRIC SERVICE FROM JUNE l,20t9, THROUGH
MAY 31,2020; CASE NO. IPC-E-19-10.
On March 75,2019,Idaho Power Company ("Idaho Power" or "Company") filed an
Application requesting authorization to implement Fixed Cost Adjustment ("FCA") rates for
electric service from June 1,2019 through May 31,2020, and for approval of the Company's
corresponding updated Schedule 54. The Company requests the new rates and the updated
Schedule take effect on June 1,2079 and remain in effect until May 37,2020.
THE APPLICATION
The Commission approved an FCA pilot for the Company in 2007 and approved the
Company's request to convert the FCA to a permanent program for Residential and Small
General Service customers in 201 l. Order Nos. 30267 , 32505. The FCA is designed to remove
the financial disincentive for the Company to invest in demand side management resources and
energy efficiency activities.
The Company states that the currently authorized FCA is $33,522,802.44 for the
Residential class and $1,265,473.45 for the Small General Service class, which totals to
534,788.275.89. Application at 5. The FCA defenal balance is currently $15,606,711. Id. The
Company requests an increase to FCA rates of 0.6598 cents per kWh for the Residential class
and 0.8366 cents per kWh for the Small General Service class, which would result in an annual
increase of 3.64%o from current billed revenue for the affected customer classes. Id. The
Company requests the Commission use its discretion to waive the 3oh cap on FCA rate increases.
1DECISION MEMORANDUM
The Company states that a typical customer in an affected rate class would see an increase of
approximately $3.49 on their monthly bill if the Company's application is approved in full.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a May 7,2019 comment deadline and a May 14,2019 reply
comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a May 7, 2019 comment deadline and a May 14, 2019 reply comment
deadline?
Edward J
Deputy General
t:\LegaI\ELECTRICUPC-E-l 9-l0UPCEl9l 0_dec memo_ej
2DECISION MEMORANDUM