20200410Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL

DATE: APRIL 10, 2020

SUBJECT: IDAHO POWER’S APPLICATION FOR AUTHORITY TO IMPLEMENT
FCA RATES FOR ELECTRIC SERVICE FROM JUNE 1, 2020, THROUGH
MAY 31, 2021; CASE NO. IPC-E-20-14.

On March 13, 2020, Idaho Power Company (“Company”) applied to implement new
Fixed Cost Adjustment (“FCA”) rates for electric service from June 1, 2020, through May 31,
2021, and a corresponding revised tariff Schedule 54, Fixed Cost Adjustment to recover the 2019
FCA balance. Idaho proposes to increase FCA rates by 0.02% this year. The Company requests
the new rates and the updated Schedule 54 take effect on June 1, 2020, and remain in effect until
May 31, 2021. The Company asks that 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 2019 FCA balance is $35,498,856, made up of $34,194,871 for the
Residential class and $1,303,985 for the Small General Service class. Id. at 4. The Company
requests an increase to FCA rates of 0.6622 cents per kilowatt hour (“kWh”) for the Residential
class and 0.8381 cents per kWh for the Small General Service class, which would result in an
annual increase of 0.02% from current billed revenue for the affected customer classes. Id. at 5.
The Company states that a typical residential customer would see an increase of approximately
$0.02 on their monthly bill if the Company's Application is approved in full.

DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a May 13, 2020, comment deadline and a May 20, 2020, reply
comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a May 13, 2020, comment deadline and a May 20, 2020, reply comment
deadline?

______________________________
John R. Hammond Jr.
Deputy Attorney General

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