20200121Comments.pdf

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noJAYME B. SULLIVAN
BOISE CITY ATTORNEY
ABIGAIL R. CERMAINE (ISB No. 9231)
Deputy City Attomey
BOISE CITY ATTORNEY'S OFFICE
150 N. Capitol Blvd.
P.O. Box 500
Boise, ID 83701-0500
Telephone: [phone]
Facsimile: (208) 384-445 4
Email: [e-mail]
Attorney for Boise City
IN THE MATTER OF THE PETITION OF
IDAHO POWER COMPANY TO STUDY
FIXED COSTS OF PROVIDING ELECTRIC
SERVICE TO CUSTOMERS
BEFORE THE
IDAHO PUBLIC UTILITIES CON{NIISSION
Case No. IPC-E-18-16
CITY OF BOISE CITY'S
COMMENTS IN OPPOSITION
TO IDAHO POWER
COMPANY'S MOTION TO
ACCEPT FIXED COST
REPORT
COMES NOW, the city of Boise City, herein referred to as "Boise City'', by and through
its attomey of record, and pursuant to Rule 203 of the Rules of Procedure of the Idaho Public
Utility Commission (IDAPA 31.01.01.203) and, pursuant to that Notice of Modified Procedure,
Notice of Comment Deadlines, Order No. 34466, frled on October 24, 2019, hereby submits these
comments in opposition to Idaho Power Company's Motion to Accept Fixed Cost Report ("Fixed
Cost Report") and states as follows:
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPANY'S
MOTION TO ACCEPT FIXED COST REPORT- I
I. INTRODUCTION
On May 9, 2018, the Idaho Public Utilities Commission ("Commission") issued Order No.
34046 in Case No. IPC-E-17-13, Idaho Power's Application for Authority to Establish New
Schedules for Residential and Small General Service Customers, which ordered Idaho Power
Company (the "Company'') "to file a study with the Commission exploring fixed-cost recovery in
basic charges and other rate design options prior to its next general rate case." Order No . 34046 al
l.
Pursuant to Order No. 34046, the Company initiated Case No. IPC-E-I8-16, In the Matter
of the Application of Idaho Power Company to Study Fixed Costs of Providing Electric Service to
Customers. Numerous parties intervened in this case, including Boise City. Order No. 34212.
Many of the parties which intervened in this case are also parties to IPC-E-18-15, In the Matter
of the Application of Idaho Power Company to Study the Costs, Benefits, and Compensation of
Net Excess Energy Supplied by Customer On-Site Gencration. Commission Staff, the intervening
parties, and the Company held one pre-hearing conference and five settlement meetings.
Throughout the course of this docket, the parties worked together to outline a general scope
of the study to be conducted, including broadly identitying rate structures and attributes to be
studied. ,See generally, Staff Report, filed on April 30,2019. The parties also worked toward
developing a Iiamework for the analysis ofthese aspects and provided suggestions on a definition
of"fixed cost." 1d. The parties' initial efforts were put before the Commission in a table outlining
Case Rate Designs and Rate Design Attributes as Attachment A and B to Stafls Report..Id.,
Attachment A and B.
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPAI.IY'S
MOTION TO ACCEPT FIXED COST REPORT- 2
On Septanber 30, 2019, the Company filed a Motion to Accept Fixed Cost Report.
Pursuant to the Commission's Notice of Modified Procedure, Notice of Comment Deadlines,
Order No. 34466, parties were permitted to file comments in support of or opposition to the
Company's Fixed Cost Report. Boise City asserts that similarly to the outcome in IPC-E-18-15,
the Company has failed to follow the direction of the Commission to conduct a comprehensive
fixed-cost recovery study and instead has presented the Comrnission with a report outlining its
proposed rate designs.
II. COMMENTS IN OPPOSITION
l. The Company has Failed to Follow Ofder Nq. 34046 by not Conductinq a
Comprehensive Fixed Cost Studv.
The Commission, at the conclusion of Case No. IPC-E-I7-13, ordered "the Company to
undertake a comprehensive customer fixed-cost analysis to determine the proper methodology and
"spread" offixed costs as they relate to the Company's customers." Order No. 34046 at23.The
Company has instead provided a paper which emphasizes certain rate designs over others and
highlights certain customers classes. This was not the direction of the Commission and not what
was contemplated by the parties to this docket. "Although the parties referred to their meetings as
"settlernent conferences" throughout this case, parties also generally understood that the end result
of this docket was to be a study conducted by the company, with input from stakeholders, to be
filed with the Commission for informational purposes" Decision Memorandum, October I 1 , 2019,
footnote l.
This is similar to what occurred in Case No. IPC-E-18-15. As was the case in this docket,
in Case No. IPC-E-18-15, the Commission directed the Company to conduct a study of the cost
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPANY'S
MOTION TO ACCEPT FIXED COST REPORT- 3
and benefits of on-site generation to the Company's system. The parties to that docket ended up
entering into a settlement agreement that was put before the Commission for approval. However,
in Order No. 34509, the Commission rejected the settlement agreement stating the Company had
not complied with the directive of the Commission to conduct a comprehensive study. Similarly,
thc Commission has directed the Company to conduct a study; the Company provided a report
which outlines the Company's rate design preferences. Fixed Cost Report at 36-39.
2. The Company's Fixed Cost Report Focuses on Certain Customer Classes Over
Othcrs, rvhich was not the Order of the Commission.
The Company's Fixed Cost Report places a heavy fbcus on certain customer
classifications, such as rcsidential on-site gencration, over others. This presentation has the
tendency to skcw the potential impacts those customer classes have on the systern. Emphasizing
residential on-site generation in this way is also contrary to the Commissions directive in this
docket. "Nevertheless, we also find it is time for the Company to address fixed-cost apportionment
across its system, and we outline a procedure for doing so below." Order No. 34046 at 17
(emphasis added).
As a premise for IPC-E-17-13, the Company attempted to highlight a cost-shift occurring
between on-site generators and non-self-generators. However, the Commission makcs clear,
There is great diversity within the current R&SGS [Residential and
Small General Service] classes, and again, other potential groups
(such as cabin owners and other low-use customers or EE adopters)
may not be paying their fair share of fixed costs being recovered
through the variable rate.
Order No. 34046 at 17.
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPAI.{Y'S
MOTION TO ACCEPT FIXED COST REPORT- 4
The Commission goes on to say, "However, in a general sense, the arguments have led us
to conclude that the Company should begin quelling ary intra-class subsidization related to fixed
costs." Order No.34046 at l9 (emphasis added). The Company's presentation in the Fixed Cost
Report unfairly emphasizes on-site generation issues and related rate designs.
3. Thc Concerns outlined Boise Ci and Other Pa Considcred in
Boise City acknowledges that the Fixed Cost Report filed by the Company contains useful
information and data that may be helpful in analyzing rate design structure in the future. However,
the Fixed Cost Report is not a comprehensive study. It is a description of rate designs and rate
structure issues llom the perspective of the Company. Therefore, it should be given the proper
weight.
In addition, parties to this docket, including Commission Staff, developed a list ofattributes
that should have been considered by the Company in developing the study. StaffReport, April 30,
2019. These attributes are acknowledged bythe Company as "important to take into consideration
when developing and ultimately implementing new or modified rate designs." Idaho Power
Company's Motion to Accept Fixed Cost Report at 8. However, these attributes seem to have
fallen by the way side in the final report presented by the Company. While Boise City
acknowledges the challenges to incorporating all the attributes into a rate design study, providing
a more comprehensive summary ofhow these attributes were considered in the presented report
would have been beneficial..See /rst ofattributes attached as Appendix Ato the Fixed Cost Reporl.
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPAI.IY'S
MOTION TO ACCEPT FIXED COST REPORT- 5
the Weight the Commission givcs thc Fixed Cost Report.
Boise City is concemed that at the time when the Company files a general rate case or
changes to rate desigr are contonplated, the Company will attempt to utilize this Fixed Cost Report
as a study for the basis of their proposals. This should not be the case. The Commission should
give due consideration to what has been presented by the Company and it should be read in
conjunction with the comments filed by the parties.
DATED this 2t day ofJanuary 2020.
A
City Attorney
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPAI.IY'S
MOTION TO ACCEPT FIXED COST REPORT- 6
CERTIFICATE OF SERVICE
I hereby certify that I have on this al day of January 2020, served the foregoing
documents on all parties ofcounsel as follows:
Lisa Nordstrom
Regulatory Dor:kets
Idaho Power Cornpany
PO Box 70
Boise, ID 83707
lnordstrom(ir iclahopou'er.com
dockets60 idahopo\r'er. corn
Timothy E. Tatum
Connie Aschenbrenner
Idaho Power Company
PO Box 70
Boise, ID 83707
tt aturn (a-: i d alio po wcr. co n r
caschenbrenncr(rr ,idahopolver.com
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPANY'S
MOTION TO ACCEPT FIXED COST REPORT. 7
O U.S. MailE Personal Deliverytr Facsimilctr Electronic Mcanstr Other:
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Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
I l33l W. Chinden Blvd., Building 8
Suite 201-A
Boise, ID 83 714
diane.holt(4puc. (l4ha.ga\.
Edward Jewell
Deputy Attomey General
Idaho Public Utilities Commission
I1331 W. Chinden Blvd., Building 8
Suite 201-A
Boise, ID 83714
Edrvard.Jewell(ripuc.idaho. gov
Benjamin J. Otto
Idaho Conservation League
710 N. 6th Street
Boise, ID 83702
[e-mail]
David J. Meyer, Esq.
Patrick D. Ehrbar
Joe Miller
Avista Corporation
POBox3727
Spokane, WA9922-3727
david.mevcr(Oavist acorp.conl
atrick.ehlh avlst L:()1n
ioe.rliller(irl avistacorp.con.r
F. Diego Rivas
NW Energy Coalition
I 101 8th Ave.
Helena, MT 59601
diccofaanrvcner
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gv.oIg
Idahydro
cio C. Tom Arkoosh
ARKOOSH LAW OFFICES
802 W. Bannock St., Suite LP 103
PO Box 2900
Boise, ID 83701
tom. arkoosh@tarktxrsh. com
erin.cccil(rilarkoosh.com
Idaho Irrigation Pumpers Assn.
c/o Anthony Yankel
12700 Lake Ave., Unit 2505
Lakewood, OH 4410'7
tonvlQyankel.net
Ted Weston
Yvonne R. Hogle
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, UT 84116
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAIIO POWER COMPA}.IY'S
MOTION TO ACCEPT FIXED COST REPORT- 8
Idaho Irrigation Pumpers Assn.
c/o Eric L. Olsen
Echo Hawk & Olsen PLLC
PO Box 6l 19
Pocatello, ID 83205
eIo(rirechohawk.colIl
!ed.rvestonG?paci [i co rp. com
yvonnc.hogle pacificom.corn
Briana Kober
Vote Solar
358 S. 700 E., Suite 8206
Salt Lake Ciry, UT 84102
briana(h,votr:solar.oUI
David Bender
Al Luna
Nick Thorpe
Earthjustice
3916 Nakoma Road
Madison, WI 5371 I
dbender(rD carthi ustice.ors
aluna(i e rtlriustiL'c.orA
nth carlh ustrcc.o
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Idaho Clean Energy Assn.
c/o Preston N. Carter
GIVENS PURSLEY LLP
601 W. Bannock St.
Boise, ID 83702
Drestoncirrtcr(a.tgivenspurslcv.c,otn
Idaho Sierra Club
c/o Kelsey Jae Nunez
Kelsey Jae Nunez LLC
920 N. Cover Dr.
Boise, ID 83703
kel sev(rJ,r k el s cyi a en u n ez. co m
Zack Waterman
Mike Heckler
Idaho Sierra Club
503 W. Franklin St.
Boise, ID 83702
zack.ll'atennan(g) si craclub.org
ln i chael. p. heokler(atLmai l. co m
Peter J. Richardson
Richardson, Adams, PLLC
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPAI.IY'S
MOTION TO ACCEPT FIXED COST REPORT- 9
tr U.S. Mailtr Personal DeliveryO FacsimileE Electronic Meanstr Other:
5 15 N. 27th Street
PO Box 7218
Boise, ID 83702
peter@richardsonadarns. com
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
dreading(Zlnindspring. corr
Russell Schiermeier
29393 Davis Road
Bruneau, ID 83604
b u)4ra:"(a, grn ai l. corn
CITY OF BOISE CITY'S COMMENTS IN
OPPOSITION TO IDAHO POWER COMPANY'S
MOTION TO ACCEPT TIXED COST RIPORT- IO
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Depu City Attomey