20210402Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: DAYN HARDIE
DEPUTY ATTORNEY GENERAL

DATE: MARCH 31, 2021

SUBJECT: IDAHO POWER’S APPLICATION FOR AUTHORITY TO IMPLEMENT
FIXED COST ADJUSTMENT RATES FOR ELECTRIC SERVICE FROM
JUNE 1, 2021, THROUGH MAY 31, 2022; CASE NO. IPC-E-21-03.

On March 15, 2021, Idaho Power Company (“Company”) applied to implement new
Fixed Cost Adjustment (“FCA”) rates for electric service from June 1, 2021 through May 31, 2022,
and a corresponding revised tariff Schedule 54—Fixed Cost Adjustment—to recover the 2020
FCA balance. The Company requests the new rates and the updated Schedule 54 take effect on
June 1, 2021 and remain in effect through May 31, 2022. The Company requests its Application
be processed by Modified Procedure.
THE APPLICATION
The Company states the FCA is designed to remove the financial disincentive for it to
invest in demand-side management resources and energy efficiency activities. Application at 2.
The Company states the 2020 FCA balance is $38,315,499, made up of $36,706,200 for the
Residential class and $1,609,299 for the Small General Service class. Id. at 5. The Company
requests an increase to FCA rates of 0.7008 cents per kilowatt hour (“kWh”) for the Residential
class and 0.8864 cents per kWh for the Small General Service class. Id. This would result in an
annual increase of 0.38% for the affected customer classes. Id. The Company states that a typical
residential customer would see an increase of approximately $0.37 on their monthly bill if the
Application is approved in full. Id. at 1.

DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a May 11, 2021 public comment deadline and a May 19, 2021
Company reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a May 11, 2021 public comment deadline and a May 19, 2021 Company reply
comment deadline?

______________________________
Dayn Hardie
Deputy Attorney General

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