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HomeMy WebLinkAbout20200210Notice_of_Application_Order_No_34551.pdfOffice of the Secretary Service Date February 10,2020 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-20-01COMPANY'S APPLICATION TO MODIFY )SCHEDULE 30,SPECIAL CONTRACT )NOTICE OF APPLICATIONWITHUNITEDSTATESDEPARTMENTOF)ENERGY )NOTICE OF )MODIFIED PROCEDURE )ORDER NO.34551 On January 14,2020,Idaho Power Company ("Company"or "Idaho Power")applied to the Commission for an order authorizing the Company to (1)modify Schedule 30-Electric Service Rate for United States Department of Energy Idaho Operations Office-("Schedule 30"), and (2)true-up charges related to the Company's Schedule 30 assets that have been suspended since November 2015.The Company requested an effective date of April 1,2020 and that its Application be processed by Modified Procedure. The Commission now issues this Notice of Application and Notice of Modified Procedure setting public comment and Company reply deadlines. BACKGROUND On August 21,2019 a transfer of title agreement was entered between the Department of Energy ("DOE")and the Company-transferring DOE-owned asset to the Company.See Attachment 1 to the Company's Application.Concurrently with the transfer between the DOE and the Company,the Company transferred partial ownership of the same assets'under a separate transfer of title agreement entered between the Company and PacifiCorp,dated August 22,2019. See Attachment 2 to the Company's Application. The Company supplies electricity to the DOE at Idaho National Laboratory through the Antelope substation's transmission facilities under Schedule 30.Prior to the transfer agreements, the Company,PacifiCorp,and DOE jointly or individually owned the Antelope substation ("Substation")assets and PacifiCorp operated it.PacifiCorp's operation of the Substation,and the assets located therein,flow from a Joint Ownership and Operating Agreement ("JOOA").Before 1 Regarding the assets transferred from Idaho Power to PacifiCorp,and for purposes of the Joint Ownership and OperatingAgreement,the Weighted Average Ownership Percentage is 53.365%for Idaho Power and 46.635%for PacifiCorp.NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34551 1 the DOE to Idaho Power transfer,the Company's point of delivery to the DOE under Schedule 30 was at the DOE-owned assets at the Substation. The DOE "no longer wish[ed]to own,operate [or]maintain"its Substation assets and voluntarily transferred them to the Company at no cost.In turn,the Company transferred partial ownership of the DOE's assets to PacifiCorp,again at no cost.Because of the change in ownership of the assets transferred from DOE to the Company,the Company filed with the Federal Energy Regulatory Commission for an updated JOOA,which was approved on October 21,2019. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that after transferring its assets to the Company,the DOE no longer owns any Substation assets.But the Company continues to incur operating costs because it still serves the DOE.The Company proposes to modify Schedule 30 by adding a monthlyAntelope Asset Charge ("AAC").See Attachment 3 to the Company's Application.The AAC would include two components:1)PacifiCorp Pass-Through Charge,and 2)Company Ownership Costs.The AAC charge would enable the Company to recover its costs to own,operate, and maintain the Substation assets required to serve the DOE.According to the Application, PacifiCorp would continue to operate the Substation under the updated JOOA. YOU ARE FURTHER NOTIFIED that in November 2015,the Company and DOE agreed to suspend payment of pass-through expenses related to Substation assets until regulatory approvals were in place and the new Schedule 30 charge had commenced.If the modifications to Schedule 30 are approved,the Company proposes to collect about $288,000 from the DOE for the suspended pass-through charges the Company incurred on behalf of the DOE from PacifiCorp between November 2015 and December 2019. 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 .Click on the "ELECTRIC"icon, select "Open Cases"and then click on the case number as shown in the caption of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdictionunder Title 61 of the Idaho Code and specifically Idaho Code §§61-502 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 APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34551 2 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 31.01.01.201through .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 by March 10,2020.The written comment must contain a statement of reasons supporting it.Persons desiring a hearingmust specifically request a hearingin their written comments.Written comments concerning this Application shall be mailed to the Commission and the Company at the addresses reflected below: For the Idaho Public Utilities For Idaho Power Company:Commission: Commission Secretary Lisa Nordstrom Idaho Public Utilities Commission TimothyTatum P.O.Box 83720 Matt Larkin Boise,ID 83720-0074 Idaho Power Company 1221 West Idaho Street 83702 Street Address for Express Mail:P.O.Box 70 Boise,ID 83707-0070 11331 W.Chinden Blvd., Building 8,Suite 201-A Boise,ID 83714 These comments must 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 at .Click the "Consumers"tab then click the "Case Comment 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 any reply comments by March 17,2020. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34551 3 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 Company be processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting written comments must do so by March 10,2020.The Company must file any reply comments by March 17,2020. DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /Ó day of February 2020. PAUL IRL R,PRESIDENT KRF$TINE RAPER,C MMISSIONER ERIC ANDERSON,COMMISSIONER Diane M.Hanian Commission Secretary I:\Legal\ELECTRIC\IPC-E-20-Ol\Orders\IPC2001_ntcappmod_dh.docx NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34551 4