20190415Application.pdf

lmlo
POII'ER,,@
An IDACORP Company
LISA D. NORDSTROM
Lead Counsel
I [e-mail]
April 15,2019
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Case No. IPC-E-19-16
2019-2020 Power Cost Adjustment - Idaho Power Company's Application
and Testimony
Dear Ms. Hanian:
Enclosed for filing in the above matter please find an original and seven (7) copies
of ldaho Power Company's Application.
Also enclosed for filing are an original and eight (8) copies of the Direct Testimony of
Mark A. Annis. One copy of the aforementioned testimony has been designated as the
"Reporter's Copy." In addition, a disk containing a Word version of Mr. Annis's testimony is
enclosed for the Reporter.
Also enclosed are eight (8) copies of a disk containing the Excelfiles of Mr. Annis's
exhibits.
Lastly, four (4) copies each of ldaho Power Company's press release, customer
notice, and direct mail postcard are also enclosed.
Very truly yours,
LDN:csb
Enclosures
1221 W. ldaho 5t. (83702)
P.O. Box 70
Boise, lD 83707
Re
Lisa
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I n o rd strom @ id a hopower. com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORIry TO IMPLEMENT POWER
COST ADJUSTMENT ("PCA") RATES
FOR ELECTRIC SERVICE FROM JUNE
1, 2019, THROUGH MAY 31,2020.
CASE NO. IPC-E-19-16
APPL!CATION
ldaho Power Company ("ldaho Power" or "Company"), in accordance with ldaho
Code S 61-502 and RP 052, hereby respectfully requests the ldaho Public Utilities
Commission ("Commission") approve an update to Schedule 55 based on the
quantification of the 201 9-2020 Power Cost Adjustment ("PCA') to become effective June
1, 2019, for the period June 1, 2019, through May 31 , 2020. !f the proposed rates and
charges for electric service in the state of ldaho included as Attachment 1 to this
Application are approved, the 2019-2020 PCA will result in an overall revenue decrease
of approximately $50.1 million, or a 4.34 percent decrease from current billed revenue.
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APPLICATION - 1
lr-lJ;(;t
ln support of this Application, Idaho Power has filed the Direct Testimony of Mark
A. Annis, Senior Regulatory Analyst, which details the calculation of the proposed 2019-
2020 PCA rates and explains the factors that impact this year's PCA quantification.
!. BACKGROUND
1. ldaho Power is an ldaho corporation whose principal place of business is
1221West ldaho Street, Boise, ldaho 83702.
2. ldaho Power is a public utility supplying retail electric service to nearly
560,000 customers in southern ldaho and eastern Oregon. ldaho Power is subject to the
jurisdiction of this Commission in ldaho and to the jurisdiction of the Public Utility
Commission of Oregon. ldaho Power is also subject to the jurisdiction of the Federa!
Energy Regulatory Commission.
3. On March 29, 1993, by Order No. 24806 issued in Case No. IPC-E-92-25,
the Commission approved the implementation of an annual power cost adjustment
procedure in order to provide consistency and stability to rates. The PCA is a cost
recovery mechanism that passes on both the benefits and costs of supplying energy to
ldaho Power customers.
4. On January 9, 2009, by Order No. 30715 issued in Case No. IPC-E-08-19,
the Commission approved certain changes to the PCA mechanism, including a 95
percenU5 percent sharing mechanism between customers and the Company. Order No.
30715 also approved changes to the Load Growth Adjustment Rate ('LGAR'), third-party
transmission expense, the PCA forecast, and power supply expense distribution.
5. On January 13,2010, the Commission issued Order No. 30978 in Case No.
IPC-E-09-30 approving the settlement stipulation filed in lieu of a genera! rate case.
APPLICATION - 2
Through this stipulation, a revenue sharing mechanism was established to allow the
Company to accelerate the amortization of accumulated deferred investment tax credits
if the Company's actual ldaho jurisdictional year-end Return on Equity ('ROE') fell below
9.5 percent in any fisca! year from 2009 through 2011. This mechanism also included a
provision for revenue sharing if the Company's actual ldaho jurisdictional year-end ROE
exceeded 10.5 percent in any year during the same three-year period. Per the terms of
the stipulation, 50 percent of the ldaho jurisdictional year-end ROE in excess of 10.5
percent was to be shared with customers in the form of a rate reduction.
6. On March 15,2011, the Commission issued Order No. 32206 in Case No.
GNR-E-10-03 adopting a revised LGAR methodology and changing the name of the
methodology to the Load Change Adjustment Rate ('LCAR').
7 . On December 27 ,2011, the Commission issued Order No. 32424 in Case
No. IPC-E-11-22 approving a settlement stipulation filed on December 12,2011,
extending the revenue sharing mechanism through 2014 and modifying portions of the
previous accounting order. More specifically, Order No. 32424 approved modifications
to the sharing portion of the mechanism, which allowed for greater customer benefits.
First, for actual year-end ldaho jurisdictional earnings greater than 10 percent ROE, up
to and including 10.5 percent in any year from 2012 through 2014, the earnings would be
shared equally between ldaho customers and the Company. The customer revenue
sharing benefit would be in the form of a reduction to rates at the same time as the PCA
becomes effective. This modification provided customers an additional25 basis points
of sharing potential. Second, ldaho earnings above a 10.5 percent ROE would also be
APPLICATION - 3
shared, with customers receiving 75 percent of the earnings applied as an offset to the
Company's pension balancing account.
8. On October 9,2014, the Commission issued Order No. 33149 in Case No.
IPC-E-14-14 approving the settlement stipulation filed on September 3, 2014, extending
the revenue sharing mechanism through 2019 and modifying portions of the previous
accounting order. More specifically, Order No. 33149 approved modifications to the
sharing mechanism to reflect adjustments to the various sharing thresholds, as wel! as
the method by which shared amounts would be provided to customers. First, for actual
year-end ldaho jurisdictional earnings greater than 10 percent ROE, up to and including
10.5 percent in any year from 2015 through 2019, the earnings will be shared between
customers and the Company on a 75 percent and 25 percent basis, respectively. The
customer revenue sharing benefit will be in the form of a reduction to rates at the same
time as the PCA becomes effective. Second, ldaho earnings above a 10.5 percent ROE
will also be shared, with customers receiving 50 percent of the earnings in the form of a
reduction to rates at the same time as the PCA becomes effective, as well as 25 percent
of the earnings applied as an offset to the Company's pension balancing account, with
the Company retaining the remaining 25 percent.
9. On May 28,2015, the Commission issued Order No. 33307 in Case No.
IPC-E-15-15 converting the LCAR to a Sales Based Adjustment ("SBA') rate, as well as
modifying the PCA deferral balance's monthly interest calculation. Per Order No. 33307,
the SBA rate is calculated in the same manner as the LCAR, with the only modification
being the replacement of the load-based megawatt-hour ('MWh") denominator with the
corresponding sales-based MWh denominator. Second, the Order required the Company
APPLICATION - 4
to calculate monthly interest on the deferral balance by assigning annua! base Net Power
Supply Expense ("NPSE') to each month according to expected base rate revenue
collection as set in the Company's last general rate case, Case No. IPC-E-11-08.
II. 2019.2020 PCA CALCULATION
10. The PCA is a rate mechanism that quantifies and tracks annual differences
between actual NPSE and the normalized or "base level" of NPSE recovered in the
Company's base rates for recovery or credit through an annua! rate change on June 1.
The PCA is also the rate mechanism used by the Company to provide direct revenue
sharing benefits resulting from the revenue sharing mechanism approved in Order No.
33149.
11. The PCA mechanism utilizes a 12-month test period of Apri! through March
("PCA Year") and consists of a forecast component and a true-up component ("True-Up").
The PCA forecast component is based on the Company's March Operating Plan and
represents the difference between the NPSE forecast in the March Operating Plan and
the base level NPSE recovered in the Company's base rates. The True-Up compares
actual PCA account results to actual NPSE collections for the prior PCA year. The PCA
True-Up contains a second component that tracks the collection of the prior year's True-
Up amount, referred to as the "True-Up of the True-Up."
12. With the exception of Public Utility Regulatory Policies Act of 1978
('PURPA") expenses and demand response incentive costs, the PCA allows the
Company to pass through to ldaho customers 95 percent of the annual differences in
actua! NPSE as compared to the base level NPSE, whether positive or negative.
APPLICATION - 5
13. Forecast. The testimony and exhibits of Mr. Annis describe and compute
the PCA rate to be effective June 1, 2019, through May 31 , 2020. The system-leve!
forecast of NPSE for the 2019-2020 PCA Year is $394,288,927, which is $88,604,058
higher than the currently approved base level NPSE of $305,684,869 and $8,786,346
lower than last year's forecast amount of $403,075,273. This year, due to the impact of
higher electric market prices and expected reductions in hydro generation, the Company
expects to increase coal-fired generation to economically serve load and to make
economic off-system sales. The Company anticipates that market purchases of power
will decrease due to the higher costs. Additionally, PURPA expense is expected to
increase as compared with last year. The 2019-2020 PCA forecast component to be
collected from ldaho customers is $82,706,715.
14. True-Up. ln addition to the NPSE incurred during the April 2018 through
March 2019 period, ldaho Power included its actual cost of Western Energy lmbalance
Market ('EIM') participation for April 2018 through March 2019 in the True-Up as
approved by Commission Order No. 34100. Benefits associated with EIM participation
are embedded in actua! NPSE experienced over that same period.
15. The True-Up deferral balance at the end of March 2019, with interest
applied, was approximately negative $54 million. The Company's calculation includes
the SBA per the terms of the settlement stipulation approved by Order No. 33307 in Case
No. IPC-E-15-15. This credit to customers was largely driven by a combination of higher
than forecast surplus sales and positive results from natural gas hedging activities.
16. True-Up of the True-Up. ln the True-Up of the True-Up, the Company over
collected last year's PCA True-Up balance by approximately $1 0 million. The 2018-2019
APPLICATION - 6
combined PCA True-Up credit balance of $64 million is approximately $43 million larger
than the 2017-2018 combined PCA True-Up credit balance.
17. Combined Uniform PCA Rate. The Com pany's uniform PCA rate for the
2019-2020 PCA Year is comprised of (1) the 0.5836 cents per kilowatt-hour ("kwh')
adjustment for the 2019-2020 projected power cost of serving firm loads under the current
PCA methodology and 95 percent sharing, (2) the negative 0.3806 cents per kWh for the
2018-2019 True-Up portion of the PCA, and (3) the negative 0.0712 cents per kWh for
the True-Up of the True-Up. The sum of these three components results in an
approximate 0.1318 cents per kWh charge for all rate classes.
III. ADDITIONAL RATE ADJUSTMENTS
18. Revenue Sharino. The Company's earnings in each year from 2011
through 2015 resulted in revenue sharing with ldaho customers totaling $121.2 million,
either as a direct rate offset in the PCA or as an offset to amounts that would have
otherwise been collected in rates. The Company's earnings in2016 and 2017 were below
the revenue sharing threshold. As described in greater detail in the direct testimony and
exhibits of Mr. Annis, the Company's 2018ldaho jurisdictional year-end ROE was 10.21
percent. ln accordance with the terms of the modified revenue sharing mechanism
approved by Order No. 33149, the Company's ldaho jurisdictional year-end ROE was
above the 10.0 percent ROE threshold for revenue sharing. Therefore, the 2019-2020
PCA will include a revenue sharing component of $5,024,562.
19. Tax Reform Benefits. On April 12,2018, ldaho Power filed a Settlement
Stipulation and Motion to Approve Settlement Stipulation in Case No. GNR-U-18-01, the
Commission's lnvestigation into the lmpact of Federal Tax Code Revisions on Utility
APPLICATION. T
Costs and Ratemaking. The settlement stipulation resulted in a direct rate reduction
associated with federal tax reform and ldaho state tax rate changes of approximately
$26.5 million, or a 2.22 percent decrease, for ldaho customers, effective June 2018
through May 2019. The direct rate reduction was provided to ldaho customers via two
rate components on June 1,2018: $18,678,936 as a base rate reduction and $7,818,624
through the Earnings Sharingl component of Schedule 55 for June 1,2018, through May
31,2019. Under the terms of the settlement, the $7,818,624 credit applied through the
Earnings Sharing component is to be reduced to a credit of $2,680,957 for the period
June 1,2019, through May 31 , 2020.
IV. CUMULATIVE PROPOSED JUNE 1,2019, RATE GHANGES
20. The 2019-2020 total PCA amount, as measured from the currently
approved base level NPSE, including the revenue sharing and tax settlement provisions,
is $11.0 million. This represents a decrease in total billed revenue of $50.1 million, a
decrease of 4.34 percent, for ldaho customers, effective June 2019 through May 2020.
21. On February 12,2019, in Case No. IPC-E-19-06, ldaho Power filed an
application to revise its Energy Efficiency Rider Tariff Schedule 91 from the current level
of 3.75 percent of base rate revenues to 2.75 percent of base rate revenues, to be
effective June 1,2019. This request represents an overal! 0.90 percent decrease to
customer rates.
22. On March 8, 2019, in Case No. IPC-E-19-08, ldaho Power filed an
application to adjust customer rates to recover incremental revenue associated with its
1 Pursuant to Order Nos. 30978, 32424, and 33149, ldaho Power credits customers' bills through
the Earnings Sharing component of the PCA for any revenues shared pursuant to these orders.
APPLICATION - 8
exit from operations at the North Valmy power plant ("Valmy"), an overall increase of 0.1 1
percent to customer rates to be effective June 1,2019.
23. On March 15,2019, ldaho Power filed its annual Fixed Cost Adjustment
('FCA') in Case No. IPC-E-19-10. The Company's 2018 FCA filing proposes a $19.3
million increase in current billed revenue, or a 3.64 percent increase, for ldaho Residential
and Smafl General Service customers, effective June 2019 through May 2020.
24. Combined Effect of All Four Filinqs. lf the PCA, Energy Efficiency Rider,
Valmy, and FCA cases are all approved as filed, the combined impact is an overall
decrease in current billed revenue of $39.8 million, or 3.45 percent, for June 2019 through
May 2020. The combined impact to current billed revenue by class is presented in the
following table:
JUNE 1,2019, RATE FILINGS
Percentage Change from Current Billed Revenue
Filing
Smal!
Genera!
Service
Large
General
Service 1
Large
Power 2 lrrigationResidential
Energy Efficiency Rider
Valmy
FCA
PCA
Combined lmpact3
(0.e1)%
0.100/o
3.700/o
(2.79)Yo
0.10o/o
(0.e1)%
0.11o/o
N/A
(4.75)o/o
(5.55)%
(0.8e)%
0.11o/o
N/A
(6.Ze)%o
(7.06)Yo
(0.e1)%
0.11o/o
N/A
(4.33)Yo
(5.13)Yo
1 lncludes lighting schedules I ncludes special contracts.Totals may not add up exactly due to rounding
25. Attachment 1 to this Application is ldaho Power's proposed IPUC No. 29,
Tariff No. 101, in both clean and legislative formats, which contains the tariff sheets
specifying the proposed Schedule 55 rates for providing retail electric service to its
customers in the state of Idaho for June 1,2019, through May 31 ,2020.
APPLICATION - 9
(0.e0)%
0.11%
3.64%
(3.49)Yo
(0.65)%
26. Attachment 2 to this Application contains a summary of revenue impact
showing the effect to each customer class and special contract customer of applying the
Company's proposed PCA rates that collect $50.1 million less, from June 2019 through
May 2020, than the PCA rates currently in effect.
V. MODIFIED PROCEDURE
27. ldaho Power believes that a technical hearing is not necessary to consider
the issues presented herein and respectfully requests that this Application be processed
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201,
ef seg. lf, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony and support the Application in such
hearing.
VI. COMMUNICATIONS AND SERVICE OF PLEADINGS
28. ln conformance with RP 125, this Application will be brought to the attention
of ldaho Power's customers by means of a press release to media in the Company's
service area and a customer notice distributed in customers' bills, both of which
accompany this filing. To ensure that all customers are notified in a timely manner and
have sufficient time to submit comments, ldaho Power is sending a direct mail postcard
to a subset of customers that receive their bill toward the end of the processing time for
this case. As such, a bill insert and/or the direct mail postcard will be mailed no later than
May 17,2019.
29. The Company has also prominently displayed its intent to file the PCA on
its website since February 12,2019. Upon filing of this Application, this web graphic will
link directly to the PCA press release and bill insert. ldaho Power will also keep its
APPLICATION - 1O
Application, testimony, and exhibits open for public inspection at its offices throughout the
state of Idaho. ldaho Power asserts that this notice procedure satisfies the Rules of
Procedure of this Commission; however, the Company will, in the alternative, bring the
Application to the attention of its affected customers through any other means directed by
this Commission.
30. Communications and service of pleadings with reference to this Application
should be sent to the following:
Lisa D. Nordstrom
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707lnordstro@
d ockets@ idahopower. com
VII. REQUEST FOR RELIEF
31 . As discussed in greater detail above, ldaho Power respectfully requests that
the Commission issue an order approving an update to Schedule 55 based on the
quantification of the 2019-2020 PCA, resulting in an overall decrease to current billed
revenue of approximately $50.0 million to become effective June 1 ,2019.
DATED at Boise, ldaho, this 15th day of April 2019.
LISA D. N
Attorney for ldaho ower Company
Matthew T. Larkin
Timothy E. Tatum
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
m larkin@ ida hopower. com
ttatum@ idahopower. com
APPLICATION - 11
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-I9-16
IDAHO POWER COMPANY
ATTACHMENT 1
PROPOSED TARIFF
(clean and legislative formats)
CLEAN FORMAT
ldaho Power Company Thirteenth Revised Sheet No. 55-1
Cancels
l.P.U.C. No. 29. Tariff No. 't01 Twelfth Revised Sheet No. 55-1
SCHEDULE 55
POWER COST ADJUSTMENT
APPLICABILITY
This schedule is applicable to the electric energy delivered to all ldaho retail Customers served
under the Company's schedules and Special Contracts. These loads are referred to as "firm" load for
purposes of this schedule.
BASE POWER COST
The Base Power Cost of the Company's rates is computed by dividing the sum of the Company's
power cost components by firm kWh sales. The power cost components are segmented into three
categories: Category 1, Category 2 and Category 3. Category 1 power costs include the sum of fuel
expense and purchased power expense (excluding purchases from cogeneration and small power
producers), less the sum of off-system surplus sales revenue and revenue from market-based special
contract pricing. Category 2 power costs include purchased power expense from cogeneration and small
power producers. Category 3 power costs include demand response incentive payments. The Base
Power Cost is 2.0608 cents per kWh, which is comprised of Category 1 power costs of 1.0806 cents per
kWh, Category 2 power costs of 0.9008 cents per kWh and Category 3 power costs of 0.0794 cents per
kwh.
PROJECTED POWER COST
The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the Category
1, Category 2 and Category 3 power cost components for the forecasted time period beginning April 1
each year and ending the following March 31. The Projected Power Cost is 2.6558 cents per kWh, which
is comprised of Category 1 power costs of 1.3095 cents per kWh, Category 2 power costs of 1.2941
cents per kWh and Category 3 power costs of 0.0522 cents per kWh.
TRUE-UP AND TRUE.UP OF THE TRUE-UP
The True-up is based upon the difference between the previous Projected Power Cost and the
power costs actually incurred. The True-up of the True-up is the difference between the previorJs year's
approved True-Up revenues and actual revenues collected. The total True-up is (0.4518) cents per kWh.
EARNINGS SHARING
Order Nos. 30978,32424, and 33149 directed the Company to share a portion of its earnings
above a certain threshold with customers through the annual Power Cost Adjustment. The Company's
2018 earnings were above the prescribed threshold resulting in a credit of 0.0355 cents per kWh. Order
No. 34071 provides for a direct rate reduction associated with federal and state tax reform. The following
schedules will receive a rate reduction benefit associated with the Company's 2018 earnings and a rate
reduction associated with federal and state tax reform in the form of a cents per kWh rate. The Company's
Special Contract Customers will receive rate reduction benefits associated with the Company's 2018
earnings in the form of a monthly credit for each month of the rate effective period and a cents per kWh
rate reduction associated with federal and state tax reform.
Schedule Description
Residential Service
Master Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small General Service
d per kWh
(0.0673)
(0.0640)
(0.0646)
(0.0673)
(0.0853)
1
3
5
6
7
IDAHO
lssued per Order No
Effective - June 't, ZArc
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Eighth Revised Sheet No. 55-2
Cancels
|.P.U.C. No. 29. Tariff No. 101 Seventh Revised Sheet No. 5$2
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
EARNI NGS SHARI NG (Continued)
8
9S
9P
9T
15
195
19P
197
24
40
4',l
42
1
3
5
6
7
8
9S
9P
9T
15
195
19P
197
Small General Service On-Site Generation
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
Agricultural lrrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
Earninqs sharinq
Monthlv creditMicron $(10,649.00)Simplot $ (3,113.95)DOE $ (3,913.97)
Description
Residential Service
Mastered Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small General Service
Small General Service On-Site Generation
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
(0.0853)
(0.0505)
(0.0440)
(0.04e5)
(0.1432)
(0.0433)
(0.0385)
(0.0362)
(0.0554)
(0.0602)
(0.0e2e)
(0.0426)
26
29
30
Tax Reform
d per kWh
(0.0119)
(0.0114)
(0.0115)
POWER COST ADJUSTMENT
The Power Cost Adjustment is the sum of: 1) 95 percent of the difference between the Projected
Power Costs in Category 1 and the Base Power Costs in Category 1;2) 100 percent of the difference
between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2; 3) 100
percent of the difference between the Projected Power Costs in Category 3 and the Base Power Costs
in Category 3; 4) the True-ups; and 5) Earnings Sharing.
The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules
and Special Contracts are shown below. The rates below do not include the monthly Earnings Sharing
credits for each of the Special Contract customers (Schedules 26,29, and 30). The monthly Power Cost
Adjustment applied to the per unit charges of the nonmetered schedules is the monthly estimated usage
times the cents per kWh rates shown below.
Schedule d per kWh
0.0645
0.0678
0.0672
0.0645
0.0465
0.0465
0.0813
0.0878
0.0823
(0.0114)
0.0885
0.0933
0.09s6
IDAHO
lssued per Order No
Effective - June l, Z,Olg
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Seventh Revised Sheet No. 55-3
Cancels
I.P.U.C. No. 29. Tariff No. 101 Sixth Revised Sheet No. 55-3
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
POWER COST ADJUSTMENT (Continued)
24
40
41
42
Agricultural lrrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
Micron
Simplot
DOE
0.0764
0.0716
0.0389
0.0892
0.1199
0.1204
0.1203
26
29
30
EXPIRATION
The Power Cost Adjustment included on this schedule will expire May 31 ,2020.
IDAHO
lssued per Order No
Effective - June l, ZOlg
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
LEGISLATIVE FORMAT
ldaho Power Company +wennlnirteenth Revised Sheet No. 55-1
Cancels
l.P.U.C. No. 29. Tariff No. lOlEleventhTwelfth Revised Sheet No. 55-1
SCHEDULE 55
POWER COST ADJUSTMENT
APPLICABILITY
This schedule is applicable to the electric energy delivered to all ldaho retail Customers served
under the Company's schedules and Special Contracts. These loads are referred to as "firm" load for
purposes of this schedule.
BASE POWER COST
The Base Power Cost of the Company's rates is computed by dividing the sum of the Company's
power cost components by firm kWh sales. The power cost components are segmented into three
categories: Category 't, Category 2 and Category 3. Category 1 power costs include the sum of fuel
expense and purchased power expense (excluding purchases from cogeneration and small power
producers), less the sum of off-system surplus sales revenue and revenue from market-based special
contract pricing. Category 2 power costs include purchased power expense from cogeneration and small
power producers. Category 3 power costs include demand response incentive payments. The Base
Power Cost is 2.042olQ!f. cents per kWh, which is comprised of Category 1 power costs of 1.0709806
cents per kWh, Category 2 power costs of 0.89269008 cents per kWh and Category 3 power costs of
O.O7e7% cents per kWh.
PROJECTED POWER COST
The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the Category
1, Category 2 and Category 3 power cost components for the forecasted time period beginning April 1
each year and ending the following March 31. The Projected Power Cost is 2.6902558 cents per kWh,
which is comprised of Category 1 power costs of 1.40173095 cents per kWh, Category 2 power costs of
1.2*7941cents per kWh and Category 3 power costs of 0.051€.!2 cents per kWh.
TRUE-UP AND TRUE-UP OF THE TRUE-UP
The True-up is based upon the difference between the previous Projected Power Cost and the
power costs actually incurred. The True-up of the True-up is the difference between the previous year's
approved True-Up revenues and actual revenues collected. The total True.up is (0.140f-+St a; cents per
kwh.
EARNINGS SHARING
Order Nos. 30978,32424, and 33149 directed the Company to share a portion of its earnings
above a certain threshold with customers through the annual Power Cost Adjustment. The Company's
20179 earnings were belawabove the prescribed threshold resulting in a credit of 0.00ee355 ceflgpg
kWh. Order No. 34071 provides for a direct rate reduction associated with federal and state tax reform.
The followino schedules will receive a rate reduction benefit associated with the Companv's 2018
earninqs and a rate reduction associated with federal and state tax reform in the form of a cents per kWh
rate. The Companv's Special Contract Customers will receive rate reduction benefits associated with the
Companvls 2018 earninos in theform of a monthlv creditfor each month of the rate effective period and
a cents oer kWh rate reduction associated with federal and state tax reform.
Schedule Description
Residential Service
Master Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small GeneralService
d per kWh
(0.067e3)
(0.0645q)
(0.064eo
(0.067e3)
(0.08543)
1
3
5
6
7
IDAHO
lssued perOrderNos. W
Effective - June 1,20189
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company +utennlX.tteenlth Revised Sheet No. 55-1
Cancels
I.P.U.C. No. 29. Tariff No. lOlEleventhTwelfth Revised Sheet No. 55-1
IDAHO
lssued per Order f{es. W
Effective - June 1,20189
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company SeventhElghlh Revised Sheet No. 55-2
Cancels
|.P.U.C. No. 29. Tariff No. 101Si*hSeventh Revised Sheet No. 55-2
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
EARN I NGS SHARI NG (Continued)
A Smatt General Seru 3)95 Laroe General Service - Secondarv (0.05085)
9P Laroe General Service - Primarv (0.04420\
_97
15
195
19P
197
24
40
41
42
(0.04eso
(0.145532)
(0.04373)
(0.0388O
(0.03652)
(0.05554)
(0.06074
(0.09462e)
(0.042e0)
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
Agricultural lrrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
Earninqs sharinq Tax Reform
Monthly credit d per kWh
26
29
30
Micron
Simplot
DOE
$(10.649.00)
$ (3.1 13.95)
$ (3.913.97)
(0.03381 'le)
(0.03301!4)
(0.03321 15)
The Power Cost Adjustment is the sum of: 1) 95 percent of the difference between the Projected
Power Costs in Category 1 and the Base Power Costs in Category 1;2) 100 percent of the difference
between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2; 3) 100
percent of the difference between the Projected Power Costs in Category 3 and the Base Power Costs
in Category 3; 4) the True-ups; and 5) Earnings Sharing.
The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules
and Special Contracts are shown below. The rates below do not include the monthlv Earninqs Sharinq
credits for each of the Special Contract customers (Schedules 26, 29, and 30). The monthly Power Cost
Adjustment applied to the per unit charges of the nonmetered schedules is the monthly estimated usage
times the cents per kWh rates shown below.
Schedule Description
Residential Service
Mastered Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small General Service
Small General Service On-Site Generation
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
d per kWh
_0.41750645
_0.42090678
_0.4P0F,0672
_0.41750645
_0.40090465
_0.4o0o046.q
_0.43€q913
_044120878
_0.4355082.3
_-(0.$eequ4)
_0.44170885
_0.44660933
1
3
5
b
7
8
9S
9P
9T
15
195
19P
IDAHO
lssued per Order Nos. 34080' 34046; 34071
Effective - June 1,20189
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Seven+nEtghlh Revised Sheet No. 55-2
Cancels
l.P.U.C. No. 29. Tariff No. 10'lSildhSeventh Revised Sheet No. 55-219T Large Power Service - Transmission _0.aa8909563+
+CrieHltHrel lrrl
IDAHO
lssued per Order lrle5. W
Effective - June 1,20189
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company St dh$Cygnth Revised Sheet No. 55-3
Cancels
l.P.U.C. No. 29. Tariff No. 101 FifthSixth Revised Sheet No. 55-3
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
(Continued)
41 Street Liohti o 3goao38q
42 Traffic Control Liqhtino 0.4&0892
26
29
30
Micron
Simplot
DOE
_0.4+161'19.9
_0A*1204
_0.+*21203
EXPIRATION
The Power Cost Adjustment included on this schedule will expire May 31 ,201€!t.
IDAHO
lssued per Order Nos. 34€80'€4O7t
Effective-June 1,201e9
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
24 Aqricultural 1r 0764+0 Unmetered Gener
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-19-16
IDAHO POWER COMPANY
ATTACHMENT 2
REVENUE IMPACT SUMMARY
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