20200131Notice_of_Application_Order_No_34540.pdf

Office of the Secretary
Service Date
January 31,2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-19-40
COMPANY'S APPLICATION TO UPDATE )THE SUBSTATION ALLOWANCE UNDER )NOTICE OF APPLICATION
SCHEDULE 19-LARGE POWER SERVICE )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34540
On December 27,2019,Idaho Power Company ("Company")applied for approval to
update the substation allowance outlined in Schedule 19-Large Power Service ("Substation
Allowance").Application at 1.The Company's Substation Allowance typically is filed as a tariff
advice.Id.at 2.However,Commission Staff requested the Company file this update as a case.Id.
The Company requests a March 15,2020 effective date and that its Application be reviewed under
Modified Procedure.Id.at 1,4-5.
The Commission now issues this Notice of Application and Notice of Modified Procedure
setting a public comment and Company reply comment deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company seeks to decrease its Substation
Allowance by 29%,from $69,397 per megawatt ("MW")to $49,253 per MW'.Id.at 3;See
Attachment 2.The proposed change results from updated material and labor costs.Application at
3.Material costs increased by about 5%,and labor costs increased by about 16%.Id.at 3-4.
YOU ARE FURTHER NOTIFIED that material costs increased generally because the
Company has been installing larger transformers when upgrading substations.Id.at 3.The
Company changed the default transformer used to estimate costs from the 30 mega volt amp
("MVA")transformer it historicallyhas used to the 44.8 MVA transformer it has typically installed
in recent years.2Id.The 44.8 MVA transformer increased material costs by 20%.Id.This increase
1The maximum possible allowance will be determined by multiplying the customer's actual increase in load by $49,253 per MW
but will not exceed the actual cost of the substation facilities.
2 In Order No.34277,the Commission found it was "reasonable andjust to base estimated transformer costs on other,actual
similar transformer costs...."
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34540 1
was offset somewhat by a 6%reduction to the cost of the 4-unit metalclad and a 9.81%to 9.57%
decrease in the general overhead rate.Id.
YOU ARE FURTHER NOTIFIED that labor cost increases were driven by the
construction labor rate increase by about 2.75%,and because the Company added 80 hours of
System Protection Engineering labor.3
YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission's office.These documents are also available on
the Commission's web site at www.puc.idaho.gov.Click on the "File Room"tab at the top of the
page,then select "Electric Cases"and click on the case number as shown on the front of this
document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho Code §§
61-501 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter,and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application must file a written comment in support or opposition with the Commission within
twenty-one (21)days of the service date of this Order.The written comment must contain a
statement of reasons supporting it.Persons desiring a hearing must specifically request a hearing
in their written comments.Written comments concerning this Application shall be mailed to the
Commission and the Company at the addresses reflected below:
3 System Protection Engineering includes time for project scoping,fault studies,setting and logic development,panel shop
testing,and commission relaying.On average,System Protection Engineering requires between 80 and 120 hours.NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34540 2
For the Idaho Public Utilities For Idaho Power Company:
Commission:
Commission Secretary Lisa Nordstrom
Idaho Public Utilities Commission Connie Aschenbrenner
PO Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 West Idaho Street 83702
P.O.Box 70
Street Address for Express Mail:Boise,ID 83707-0070
11331 W.Chinden Blvd.,E-Mail:[e-mail]
Building 8,Suite 201-A caschenbrenner@ idahopower.com
Boise,ID 83714 [e-mail]
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at .Click the "Consumers"tab then click
the "Case Comment or Question Form"and complete the comment form using the case number as
it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company must file reply comments within
twenty-eight(28)days of the service date of this Order.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing.If written comments are received within the time limit set,the
Commission will consider them and,in its discretion,may set the same for a formal hearing.
ORDER
IT IS HEREBY ORDERED that the Application of the Companybe processed by Modified
Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting written
comments must do so within twenty-one (21)days of the service date of this Order.The Company
must file reply comments within twenty-eight (28)days of the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34540 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of January 2020.
PAUL KJELLA F ,ESIDENT
KRISTÎÑERAPER,COM ISS'IONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-19-40\orders\IPCEl940_NtcApp Mod_dh.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34540 4