20200415Application.pdf

RECEIVED
2020 April I5,PM4:i2
IDAHO PUBLIC
UTILITIES COMMISSION
Lisa D. Nordstrom
<tHmr.
An DACOePCompanY
LISA D. NORDSTROM
Lead Counsel
I [e-mail]
Apri! 1 5,2O2O
VIA ELECTRONIC FILING
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, ldaho 83714
Re: Case No. !PC-E-20-21
2020-2021 Power Cost Adjustment - ldaho Power Company's Application
and Testimonies
Dear Ms. Hanian
Attached for electronic filing per Order No. 34602 is ldaho Power Company's
Application. Also attached are the Direct Testimonies of Timothy E. Tatum and Nicole A.
Blackwell including Exhibit Nos. 1-4 (Exhibit Nos. 1 ,2, and 4 to the testimonies are also
attached in Excel format).
Lastly, attached are ldaho Power Company's press release, customer notice, and
direct mai! postcard.
Very truly yours,
X*!.fl^ur,"*,
LDN:kkt
Enclosures
RECEIVED
2020 April 15,PM4:32
IDAHOPUBLIC
UTILITIES COMMISSION
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (837021
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I no rd stro m @ ida hopower.co m
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
!N THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT POWER
cosT ADJUSTMENT ('PCA") RATES
FOR ELECTRIC SERVICE FROM JUNE
1,2020, THROUGH MAY 31 ,2021.
CASE NO. IPC-E-20-21
APPLICAT!ON
Idaho Power Company ("ldaho Powed or "Company"), in accordance with ldaho
Code S 61-502 and RP 052, hereby respectfully requests the ldaho Public Utilities
Commission ('Commission") approve an update to Schedule 55 based on the
quantification of the 2020-2021 PCA to become effective June 1 , 2020, for the period
June 1 , 2020, through May 31 , 2021. lf the proposed rates and charges for electric
service in the state of ldaho included as Attachment 1 to this Application are approved,
the 202O-2021 PCA will result in an overall revenue increase of approximately $58.7
million, or a 5.21 percent increase from current billed revenue.
APPLICATION - 1
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!n support of this Application, ldaho Power has filed the Direct Testimony of
Timothy E. Tatum, Vice President of Regulatory Affairs, and Nicole A. Blackwell,
Regulatory Analyst. Mr. Tatum's testimony details lhe 2020-2021 PCA amount, explains
the factors that impact this year's PCA quantification, and describes ldaho Power's careful
consideration of this request in light of the financial challenges the Company and its
customers are curently facing as a result of the 2019 novel coronavirus (COVID-19)
health crisis. Ms. Blackwell's testimony details the calculation of the proposed 2020-2021
PCA rates, and discusses additional PCA components related to revenue sharing and tiax
reform.
I. BACKGROUND
1. ldaho Power is an ldaho corporation whose principal place of business is
1221West ldaho Street, Boise, ldaho 83702.
2. ldaho Power is a public utility supplying retail electric service to more than
570,000 customers in southern ldaho and eastem Oregon. ldaho Power is subject to the
jurisdiction of this Commission in ldaho and to the jurisdiction of the Public Utility
Commission of Oregon. ldaho Power is also subject to the jurisdiction of the Federal
Energy Regulatory Com mission.
3. On March 29, 1993, by Order No. 24806 issued in Case No. IPC-E-92-25,
the Commission approved the implementation of an annual power cost adjustment
procedure in order to provide consistency and stability to rates. The PCA is a cost
recovery mechanism that passes on both the benefits and costs of supplying energy to
ldaho Power customers. Neither ldaho Power or its shareholders receive any financial
APPLICATION - 2
return on this filing - money collected from the surcharge can be used only to pay power
supply expenses.
4. On January 9, 2009, by Order No. 30715 issued in Case No. IPC-E-08-19,
the Commission approved certain changes to the PCA mechanism, including a 95
percenU5 percent sharing mechanism between customers and the Company. Order No.
30715 also approved changes to the Load Grovtrth Adjustment Rate ('LGAR'), third-party
transmission expense, the PCA forecast, and power supply expense distribution.
5. On January 13,2010, the Commission issued Order No. 30978 in Case No.
IPC-E-09-30 approving the settlement stipulation filed in lieu of a genera! rate case.
Through this stipulation, a revenue sharing mechanism was estiablished to allow the
Company to accelerate the amortization of accumulated deferred investment tax credits
if the Company's actual ldaho jurisdictional year-end Retum on Equity ("ROE") fell below
9.5 percent in any fiscal year from 2009 through 2011. This mechanism also included a
provision for revenue sharing if the Company's actual ldaho jurisdictional year-end ROE
exceeded 10.5 percent in any year during the same three-year period. Per the terms of
the stipulation, 50 percent of the ldaho jurisdictional year-end ROE in excess of 10.5
percent was to be shared with customers in the form of a rate reduction.
6. On March 15,2011, the Commission issued Order No.32206 in Case No.
GNR-E-10-03 adopting a revised LGAR methodology and changing the name of the
methodology to the Load Change Adjustment Rate ('LCAR").
7. On December 27, 2011, the Commission issued Order No. 32424 in Case
No. IPC-E-11-22 approving a seftlement stipulation filed on December 12,2011,
extending the revenue sharing mechanism through 2014 and modifying portions of the
APPLICATION.3
previous accounting order. More specifically, Order No.32424 approved modifications
to the sharing portion of the mechanism, which allowed for greater customer benefits.
First, for actual year-end ldaho jurisdictional eamings greater than a 10 percent ROE, up
to and including 10.5 percent in any yearfrom 2012through 2014, the earnings would be
shared equally between Idaho customers and the Company. The customer revenue
sharing benefit would be in the form of a reduction to rates at the same time as the PCA
becomes effective. This modification provided customers an additional 25 basis points
of sharing potential. Second, Idaho eamings above a 10.5 percent ROE would also be
shared, with customers receiving 75 percent of the eamings applied as an offset to the
Company's pension balancing account.
8. On October 9,2014, the Commission issued Order No. 33149 in Case No.
IPC-E-14-14 approving the settlement stipulation filed on September 3,2014, extending
the revenue sharing mechanism through 2019 and modifying portions of the previous
accounting order. More specifically, Order No. 33149 approved modifications to the
sharing mechanism to reflect adjustments to the various sharing thresholds, as well as
the method by which shared amounts would be provided to customers. First, for actua!
year-end ldaho jurisdictional earnings greater than 10 percent ROE, up to and including
10.5 percent in any year from 2015 through 2019, the earnings will be shared between
customers and the Company on a 75 percent and 25 percent basis, respectively. The
customer revenue sharing benefit wil! be in the form of a reduction to rates at the same
time as the PCA becomes effective. Second, ldaho earnings above a 10.5 percent ROE
will also be shared, with customers receiving 50 percent of the earnings in the form of a
reduction to rates at the same time as the PCA becomes effective, as well as 25 percent
APPLICATION - 4
of the earnings applied as an offset to the Company's pension balancing account, with
the Company retiaining the remaining 25 percent.
9. On May 28,2015, the Commission issued Order No. 33307 in Case No.
!PC-E-15-15 converting the LCAR to a Sales Based Adjustment ('SBA') rate, as well as
modifying the PCA deferral balance's monthly interest calculation. Per Order No. 33307,
the SBA rate is calculated in the same manner as the LCAR, with the only modification
being the replacement of the load-based megawatt-hour ("MWh') denominator with the
corresponding sales-based MWh denominator. Second, the Order required the Company
to calculate monthly interest on the deferral balance by assigning annual base Net Power
Supply Expense ("NPSE') to each month according to expected base rate revenue
collection as set in the Company's last genera! rate case, Case No. !PC-E-11-08.
il. 2020-2021 PCA CALCULATTON
10. The PCA is a rate mechanism that quantifies and tracks annual differences
between actual NPSE and the normalized or "base level" of NPSE recovered in the
Company's base rates for recovery or credit through an annual rate change on June 1.
The PCA is also the rate mechanism used by the Company to provide direct revenue
sharing benefits resulting from the revenue sharing mechanism approved in Order No.
33149.
11. The PCA mechanism utilizes a 12-month test period of April through March
("PCA Yea/') and consists of a forecast component and a true-up component ("True-Up").
The PCA forecast component is based on the Company's March Operating Plan and
represents the difference between the NPSE forecast in the March Operating PIan and
the base level NPSE recovered in the Company's base rates. The True-Up compares
APPLICATION - 5
actual PCA account results to actual NPSE collections for the prior PCA year. The PCA
True-Up contains a second component that tracks the collection of the prior year's True-
Up amount, referred to as the "True-Up of the True-Up."
12. With the exception of Public Utility Regulatory Policies Act of 1978
('PURPA') expenses and demand response incentive costs, the PCA allows the
Company to pass through to ldaho customers 95 percent of the annual differences in
actual NPSE as compared to the base level NPSE, whether positive or negative.
13. Forecast. The testimony of Ms. Blackwell describes and computes the PCA
rate to be effective June 1, 2020, through May 31 , 2021. The system-level forecast of
NPSE for the 2020-2021 PCA Year is $426,904,721, which is $121 ,219,852 higher than
the cunently approved base level NPSE of $305,684,869. The 2020-2021 P0{forecast
component to be collected from ldaho customers is $112,436,598. As described in the
testimony of Mr. Tatum, the system-levelforecast of NPSE for the 2020-2021 PCA Year
is $32,61 5,794 higher than last year's forecast amount of $394,288,927 . This year, due
to a retum to more normal market energy prices and an expected reduction in hydro
generation, surplus sales revenue is expected to decrease. Additionally, the Company
expects to decrease coal-fired generation as it is less economic for Ioad service as wel!
as off-system sales. The Company anticipates that market purchases of power wil!
increase due to the lower market energy prices.
14. True-Uo. !n addition to the NPSE incuned during the April 2019 through
March 2020 penod, ldaho Power included its actual cost of Westem Energy lmbalance
Market ("ElM") participation for April 2019 through March 2020 in the True-Up as
APPLICATION - 6
approved by Commission Order No. 34100. Benefits associated with EIM participation
are embedded in actual NPSE experienced over that same period.
15. The True-Up deferral balance at the end of March 2020, with interest
applied, was approximately negative $31.9 million. The Company's calculation includes
the SBA per the terms of the settlement stipulation approved by Order No. 33307 in Case
No. IPC-E-15-15. This credit to customers was largely driven by a reduction in market
energy prices, which resulted in the displacement of coa!-fired generation with lower-cost
market purchases of power.
16. True-Up of the True-Up. ln the True-Up of the True-Up, the Company over
collected last year's PCA True-Up balance by approximately $10.8 million. The 2019-
2020 combined PCA True-Up credit balance of $42.7 million is approximately $21.4
million less than credit customers are currently receiving through the 2018-2019
combined PCA True-Up.
17. Combined Uniform PCA Rate. The Company's uniform PCA rate for the
2020-2021 PCA Year is comprised of (1) the 0.7833 cents per kilowatt-hour ("kwh')
adjustment for the 2020-2021 projected power cost of serving firm loads under the current
PCA methodology and 95 percent sharing, (2) the negative 0.2220 cents per kWh for the
2019-2020 True-Up portion of the PCA, and (3) the negative 0.0751 cents per kWh for
the True-Up of the True-Up. The sum of these three components results in an
approximate 0.4862 cents per kWh charge for all rate classes.
III. ADDITIONAL RATE ADJUSTMENTS
18. Revenue Sharino. The Company's earnings in each year from 2011
through 2015, as well as 2018, resulted in revenue sharing with ldaho customers totaling
APPLICATION - 7
$126.2 million, either as a direct rate offset in the PCA or as an offset to amounts that
would have otherwise been collected in rates. The Company's earnings in 2016 and2017
were below the revenue sharing threshold. As described in greater detail in the direct
testimony of Ms. Blackwell, the Company's 2019 ldaho jurisdictiona! year-end ROE was
9.8 percent. ln accordance with the terms of the modified revenue sharing mechanism
approved by Order No. 33149, the Company's ldaho jurisdictiona! year-end ROE was
below the 10.0 percent ROE threshold for revenue sharing. Therefore, the 2020-2021
PCA will not include a revenue sharing component.
19. Tax Reform Benefits. On April 12,2018,|daho Power filed a Seftlement
Stipulation and Motion to Approve Settlement Stipulation in Case No. GNR-U-18-01, the
Commission's lnvestigation into the Impact of Federal Tax Code Revisions on Utility
Costs and Ratemaking. The settlement stipulation resulted in a direct rate reduction
associated with federal tax reform and ldaho stiate tax rate changes of approximately
$26.5 million, or a 2.22 percent decrease, for ldaho customers, effective June 2018
through May 2019. The direct rate reduction was provided to ldaho customers via two
rate components on June 1 ,2018: $18,678,936 as a base rate reduction and $7,81 8,624
through the Earnings Sharingl component of Schedule 55 for June 1,2018, through May
31, 2019. Under the terms of the settlement, the $7,818,624 credit applied through the
Earnings Sharing component is to be reduced to a credit of $2,680,957 for the period
June 1 ,2019, through May 31 , 2020. Under the terms of the settlement, the $2,680,957
credit applied through the Eamings Sharing component is to be reduced to $0 beginning
June 1,2020.
1 Pursuant to Order Nos. 30978, 32424, and 33149, ldaho Power credits customers' bills through
the Eamings Sharing component of the PCA for any revenues shared pursuant to these orders.
APPLICATION. S
tv.CUMULATIVE PROPOSED J E 1.2O2O. RATE CHANGES
20. The 2O2O-2O21 tota! PCA amount, as measured from the cunently
approved base level NPSE, including the revenue sharing and tax settlement provisions,
is $69.8 million. This represents an increase in total billed revenue of $58.7 million, an
increase of 5.21 percent, for ldaho customers, effective June 2020 through May 2O21.
While the Company is sensitive to the financial impact this proposed rate increase will
have on its customers during this challenging time, the potential longer-term downside
risks described in Mr. Tatum's testimony outweigh the near-term relief of defening a
portion, or all, of the requested increase. After thoughtfu! and careful consideration, ldaho
Power believes its customers would be best served by implementing the ful! proposed
PCA revenue increase effective June 1 ,2020.
21. On March 15, 2020, ldaho Power filed its annual Fixed Cost Adjustment
("FCA") in Case No. IPC-E-20-14. The Company's 2019 FCA filing proposes a $0.13
million increase in current billed revenue, or a 0.02 percent increase, for ldaho Residential
and Small General Service customers, effective June 2020 through May 2021.
22. Combined Effect of the PCA and FCA Filinos. lf the proposed PCA and
FCA rate changes are approved as filed, the combined impact is an overall increase in
current billed revenue of $58.8 million, or 5.22 percent, for June 2020 through May 2021.
23. Attachment 1 to this Application is ldaho Power's proposed IPUC No. 29,
Tariff No. 101, in both clean and legislative formats, which contains the tariff sheets
specifying the proposed Schedule 55 rates for providing retail electric service to its
customers in the state of ldaho for June 1,2020, through May 31 ,2021.
APPLICATION - 9
24. Attachment 2 to this Application contains a summary of revenue impact
showing the effect to each customer class and specia! contract customer of applying the
Company's proposed PCA rates that collect $58.7 million more, from June 2020 through
May 2021, than the PCA rates currently in effect.
V. MODIFIED PROCEDURE
25. ldaho Power believes that a technical hearing is not necessary to consider
the issues presented herein and respectfully requests that this Application be processed
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201,
ef seg. lf, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony and support the Application in such
hearing.
VI. COMMUNICATIONS AND SERVICE OF PLEADINGS
26. ln conformance with RP 125, this Application will be brought to the attention
of Idaho Power's customers by means of a press release to media in the Company's
service area and a customer notice distributed in customers' bills, both of which
accompany this filing. To ensure that all customers are notified in a timely manner and
have sufficient time to submit comments, ldaho Power is sending a direct mai! postcard
to a subset of customers that receive their bill toward the end of the processing time for
this case. As such, a bill insert and/or the direct mail postcard wi!! be mailed no later than
May 15,2020.
27. The Company has also prominently displayed its intent to file the PCA on
its website since March 13,2020. Upon filing of this Application, this web graphic will link
directly to the PCA press release and bill insert. ldaho Power will also make its
APPLICATION - 1O
Application, testimonies, and exhibits available for public review upon request with safety
accommodations even though its offices throughout southem ldaho are temporarily
closed to the general public during the COVID-19 public health emergency. ldaho Power
asserts that this notice procedure satisfies the Rules of Procedure of this Commission;
however, the Company will, in the alternative, bring the Application to the attention of its
affected customers through any other means directed by this Commission.
28. Communications and service of pleadings with reference to this Application
should be sent to the following
Lisa D. Nordstrom
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
I no rd strom @ id a ho powe r. co m
dockets@ ida hopower.com
Matthew T. Larkin
Timothy E. Tatum
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
m larkin@ida hopower.com
ttatum@ idahopower.com
VII. REQUEST FOR RELIEF
29. As discussed in greater detail above, ldaho Power respectfully requests that
the Commission issue an order approving an update to Schedule 55 based on the
quantification of the 2020-2021 PCA, resulting in an overal! increase to cunent billed
revenue of approximately $58.7 million to become effective June 1 ,2020
DATED at Boise, ldaho, this 15th day of April 2020
X* !.7("1-t,-*,
LISA D. NORDSTROM
Attorney for ldaho Power Company
APPLICATION - 11
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPG-E-20-21
IDAHO POWER COMPANY
ATTACHMENT 1
PROPOSED TARIFF
(clean and legislative formats)
GLEAN FORMAT
ldaho Power Company Fourteenth Revised Sheet No. 55-1
Cancels
|.P.U.C. No. 29. Tariff No. 101 Thirteenth Revised Sheet No. 55-1
SCHEDULE 55
POWER COST ADJUSTMENT
APPLICABILITY
This schedule is applicable to the electric energy delivered to all ldaho retail Customers served
under the Company's schedules and Special Contracts. These loads are referred to as "firm" load for
purposes of this schedule.
BASE POWER COST
The Base Power Cost of the Company's rates is computed by dividing the sum of the Company's
power cost components by firm kWh sales. The power cost components are segmented into three
categories: Category 1, Category 2 and Category 3. Category 1 power costs include the sum of fuel
expense and purchased power expense (excluding purchases from cogeneration and small power
producers), less the sum of off-system surplus sales revenue and revenue from maket-based special
contract pricing. Category 2 power costs include purchased power expense from cogeneration and small
power producers. Category 3 power costs include demand response incentive payments. The Base
Power Cost is 2.0361 cents per kWh, which is comprised of Category 1 power costs of 1.0677 cents per
kWh, Category 2 power costs of 0.8900 cents per kWh and Category 3 power costs of 0.0784 cents per
kwh.
PROJECTED POWER COST
The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the Category
1, Category 2 and Category 3 power cost components for the forecasted time period beginning April 1
each year and ending the following March 31. The Projected Power Cost is 2.8409 cents per kWh, which
is comprised of Category 1 power costs of 1.4991 cents per kWh, Category 2 power costs of 1.2888
cents per kWh and Category 3 power costs of 0.0530 cents per kWh.
TRUE.UP AND TRUE.UP OF THE TRUE-UP
The True-up is based upon the difference between the previous Projected Power Cost and the
power costs actually incuned. The True-up of the True-up is the difference between the previous year's
approved True-Up revenues and actual revenues collected. The total True-up is (0.2971) cents per kWh.
EARNINGS SHARING
Order Nos. 30978, 32424, and 33149 directed the Company to share a portion of its earnings
above a certain threshold with customers through the annual Power Cost Adjustment. The Company's
2019 earnings were below the prescribed threshold resulting in a credit of 0.0000 cents per kWh.
Schedule
1
3
5
6
7
d per kWh
0.0000
0.0000
0.0000
0.0000
0.0000
Description
Residential Service
Master Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small General Service
IDAHO
lssued per Order No.
Effective - June 1,2020
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Ninth Revised Sheet No. 55-2
Cancels
l.P.U.C. No. 29. Tariff No. 101 Eiohth Revised Sheet No. 55-2
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
EARNINGS SHARING (Continued)
26
29
30
8
9S
9P
9T
15
195
19P
197
24
40
41
42
1
3
5
6
7
8
9S
9P
9T
15
195
19P
197
Small General Service On-Site Generation
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
Agricultural I rrigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
Earninqs sharino
Monthlv creditMicron $(10,649.00)Simplot $ (3,113.95)DOE $ (3,913.97)
Description
Residential Service
Mastered Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small GeneralService
Small General Service On-Site Generation
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
Tax Reform
d oer kWh
0.0000
0.0000
0.0000
POWER COST ADJUSTMENT
The Power Cost Adjustment is the sum of: 1) 95 percent of the difference between the Projected
Power Costs in Category 1 and the Base Power Costs in Category 1; 2) 100 percent of the difference
between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2; 3) 100
percent of the difference between the Projected Power Costs in Category 3 and the Base Power Costs
in Category 3; 4) the True-ups; and 5) Earnings Sharing.
The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules
and Special Contracts are shown below. The monthly Power Cost Adjustment applied to the per unit
charges of the nonmetered schedules is the monthly estimated usage times the cents per kWh rates
shown below.
Schedule d per kWh
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
0.4862
o.4862
IDAHO
lssued per Order No.
Effective - June 1, 2O2O
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company Eighth Revised Sheet No. 55-3
Cancels
LP.U.C. No.29. Tariff No. 101 Seventh Revised Sheet No. 55-3
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
POWER COST ADJUSTMENT (Continued)
24
40
41
42
Agricultural I nigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
0.4862
0.4862
0.4862
0.4862
26
29
30
Micron
Simplot
DOE
0.4862
0.4862
0.4862
The Power Cost Adjustment included on this schedule will expire May 31 ,2021
IDAHO
lssued per Order No.
Effective - June 1,2020
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
LEGISLATIVE FORMAT
ldaho Power Company Thitrourteenth Revised Sheet No. 55-1
Cancels
l.P.U.C. No. 29. Tariff No. '101 Thirteenthwelfth Revised Sheet No. 55-1
SCHEDULE 55
POWER COST ADJUSTMENT
APPLICABILITY
This schedule is applicable to the electric energy delivered to all ldaho retail Customers served
under the Company's schedules and Specia! Contracts. These loads are referred to as "firm" load for
purposes of this schedule.
BASE POWER COST
The Base Power Cost of the Company's rates is computed by dividing the sum of the Company's
power cost components by firm kWh sales. The power cost components are segmented into three
categories: Category 1, Category 2 and Category 3. Category 1 power costs include the sum of fuel
expense and purchased power expense (excluding purchases from cogeneration and small power
producers), less the sum of off-system surplus sales revenue and revenue from market-based special
contract pricing. Category 2 power costs include purchased power expense from cogeneration and small
power producers. Category 3 power costs include demand response incentive payments. The Base
Power Cost is 2.0361608 cents per kWh, which is comprised of Category 1 power costs of 1.0677806
cents per kWh, Category 2 power costs of 0.99008 cents per kWh and Category 3 power costs of 0.07894
cents per kWh.
PROJECTED POWER COST
The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the Category
1, Category 2 and Category 3 power cost components for the forecasted time period beginning April 1
each year and ending the following March 31. The Projected Power Cost is 2.84096558 cents per kWh,
which is comprised of Category 1 power costs of 1.49913e95 cents per kWh, Category 2 power costs of
1.2&AA$4|cents per kWh and Category 3 power costs of 0.053022 cents per kWh.
TRUE-UP AND TRUE-UP OF THE TRUE.UP
The True-up is based upon the difference between the previous Projected Power Cost and the
power costs actually incurred. The True-up of the True-up is the difference between the previous year's
approved True-Up revenues and actual revenues collected. The totalTrue-up is (0.2971451€) cents per
kwh.
EARNINGS SHARING
Order Nos. 30978, 32424, and 33149 directed the Company to share a portion of its earnings
above a certain threshold with customers through the annual Power Cost Adjustment. The Company's
20198 earnings were abeve-below the prescribed threshold resulting in a credit of 0.0000355 cents per
kWh. Order Ne, 34071 prevides fer a direet rate reduetien aseeeiated with federal and state tax referm,
The fellewing sehedules will reeeive a rate reduetien benefit asseeiated with the Cempany's 2018
earni
Cempany's 2018 earnings in the ferm ef a menthly eredit fer eaeh menth ef the rate effeetive peried and
d per kWh
(0.0000673)
(0.0000640)
(0.000064€)
(0.0000673)
(0.00008s)
Schedule Descriotion
Residential Service
Master Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small GeneralService
1
3
5
6
7
IDAHO
lssued per Order No.343St
Effective - June 1,202A19
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company EighNinth Revised Sheet No. 55-2
Cancels
|.P.U.C. No. 29. Tariff No. l0l SevenEiohth Revised Sheet No. 55-2
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
EARNINGS SHARING (Continued)
26
29
30
I
9S
9P
9T
15
19S
19P
197
24
40
41
42
1
3
5
6
7I
9S
9P
9T
15
195
19P
197
Small General Service On-Site Generation (0.0000853)
Large General Service - Secondary P.0000505)
Large General Service - Primary P.000044e)
Large General Service - Transmission (0.0000495)
Dusk to Dawn Lighting (O.OOOOgea
Large Power Service - Secondary P.0000+$)
Large Power Service - Primary p.0000385)
Large Power Service - Transmission (O.00003GA
Agricultural lrrigation Service (0.0000554)
Unmetered GeneralService (0.0000604
Street Lighting (0.0000929)
Traffic Control Lighting (0.0000+eO)
Eaminos sharino Tax Reform
Monthlv credit d oer kWhMicron $(10,649.00) (0.0000{JS)Simplot $ (3,113.95) (0.0000r+a)DOE $ (3,913.97) (0.00004{5)
POWER COST ADJUSTMENT
The Power Cost Adjustment is the sum of: 1) 95 percent of the difference between the Projected
Power Costs in Category 1 and the Base Power Costs in Category li 2) 1OO percent of the difference
between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2; 3) 100
percent of the difference between the Projected Power Costs in Category 3 and the Base Power Costs
in Category 3; 4) the True-ups; and 5) Earnings Sharing.
The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules
and Special Contracts are shown below. The rates belew de net inelude the menthly Earnings Sharing
he monthly Power Cost
Adjustment applied to the per unit charges of the nonmetered schedules is the monthly estimated usage
times the cents per kWh rates shown below.
Schedule Descriotion
Residential Service
Mastered Metered Mobile Home Park
Residential - Time-of-Day Pilot Plan
Residential Service On-Site Generation
Small GeneralService
Small General Service On-Site Generation
Large General Service - Secondary
Large General Service - Primary
Large General Service - Transmission
Dusk to Dawn Lighting
Large Power Service - Secondary
Large Power Service - Primary
Large Power Service - Transmission
d per kWh0.064@
0.0ffi48620.0w0.064@
0.04654962
0.046548620.081@[e-mail]
(0.011.1) 48620.ory0.0s3@0.0w,
IDAHO
lssued per Order No.€43$l
Effective - June 1,20204{.
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
ldaho Power Company S€venElghth Revised Sheet No. 55-3
Cancels
|.P.U.C. No.29. Taffi No. 101 SixSeventh Revised Sheet No. 55-3
SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)
POWER COST ADJUSTMENT (Continued)
24
40
41
42
Agricultural Inigation Service
Unmetered General Service
Street Lighting
Traffic Control Lighting
o.W
0.0716/862
0.03894862
0.e89?1862
26
29
30
Micron
Simplot
DOE
0.+1w.
0.1?10448620.{ry
EXPIRATION
The Power Cost Adjustment included on this schedule willexpire May 31 ,202!9.
lDAHO
lssued per Order No.€43$t
Effective - June 1,202-glg
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-2A-21
IDAHO POWER GOMPANY
ATTACHMENT 2
REVENUE IMPACT SUMMARY
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