The URL can be used to link to this page

Home My WebLink About20200415Blackwell Direct.pdf BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN 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 IDAHO POWER COMPANY DIRECT TESTIMONY OF NICOLE A. BLACKWELL RECEIVED 2020 April 15,PM4:32 IDAHO PUBLIC UTILITIES COMMISSION BLACKWELL, DI 1 Idaho Power Company Q. Please state your name, business address, and 1 present position with Idaho Power Company (“Idaho Power” or 2 “Company”). 3 A. My name is Nicole A. Blackwell. My business 4 address is 1221 West Idaho Street, Boise, Idaho 83702. I 5 am employed by Idaho Power as a Regulatory Analyst in the 6 Regulatory Affairs Department. 7 Q. Please describe your educational background. 8 A. In May of 2010, I received Bachelor of Science 9 degrees in Finance and Economics from the University of 10 Idaho. I have also attended “The Basics: Practical 11 Regulatory Training for the Electric Industry,” an electric 12 utility ratemaking course offered through New Mexico State 13 University’s Center for Public Utilities, “Electric Utility 14 Fundamentals & Insights,” an electric utility course 15 offered through the Western Energy Institute, and Edison 16 Electric Institute’s “Electric Rates Advanced Course.” 17 Q. Please describe your work experience with 18 Idaho Power. 19 A. In January 2016, I accepted my current 20 position at Idaho Power as a Regulatory Analyst in the 21 Regulatory Affairs Department. As a Regulatory Analyst, I 22 provide support for the Company’s regulatory activities, 23 including compliance reporting, financial analysis, and the 24 development of revenue forecasts for regulatory filings. 25 BLACKWELL, DI 2 Idaho Power Company Q. How is your testimony organized? 1 A. My testimony provides quantification of the 2 2020-2021 PCA forecast amount, discusses additional PCA 3 components related to revenue sharing and tax reform 4 benefits, and quantifies the 2020-2021 PCA rates to become 5 effective June 1, 2020. 6 I. PCA FORECAST 7 Q. How is the PCA forecast amount determined? 8 A. As described in Mr. Tatum’s testimony, the PCA 9 forecast component represents the difference between the 10 Company’s forecast of net power supply expense (“NPSE”) for 11 the upcoming April – March test year and base level NPSE 12 recovered in the Company’s base rates. 13 Q. What is the Company’s determination of the 14 system-level difference between currently approved base 15 level NPSE1 and the forecast of NPSE for the 2020-2021 PCA 16 Year? 17 A. The system-level forecast of NPSE for the 18 2020-2021 PCA Year is $426,904,721, which is $121,219,852 19 higher than the currently approved base level NPSE of 20 $305,684,869. Table 1 below presents the system-level 21 differences between currently approved base level NPSE and 22 1 In the Matter of the Application of Idaho Power Company for Authority to Establish a New Base Level of Net Power Supply Expense, Case No. IPC-E-13-20, Order No. 33000 (March 21, 2014). BLACKWELL, DI 3 Idaho Power Company the forecast of NPSE for the 2020-2021 PCA Year by Federal 1 Energy Regulatory Commission account. 2 3 Q. What is the basis for the forecast of NPSE for 4 the 2020-2021 PCA Year? 5 A. The forecast of NPSE for the 2020-2021 PCA 6 Year is based on the Company’s March 26, 2020, Operating 7 Plan. 8 Q. How is the NPSE forecast developed for the 9 Company’s Operating Plan? 10 A. The Operating Plan is prepared monthly and 11 represents a forecast of the Company’s monthly NPSE for the 12 following 18-month period; however, for the PCA, the 13 Company includes only the 12 months that correspond to the 14 PCA Year. The Operating Plan is developed by simulating 15 the dispatch of the Company’s generation resources for each 16 month, segmented by heavy load and light load hours. The 17 dispatch considers a current forecast of forward market 18 Table 1 Line No.FERC Account Base NPSE Forecast Difference 95% Sharing Accounts 1 Account 501, Coal 108,503,180$ 102,534,012$ (5,969,168)$ 2 Account 536, Water for Power 2,380,597$ 1,500,000$ (880,597)$ 3 Account 547, Other Fuel 33,367,563$ 42,599,268$ 9,231,705$ 4 Account 555, Purchased Power Non-PURPA 62,606,593$ 89,849,920$ 27,243,327$ 5 Account 565, 3rd Party Transmission 5,455,955$ 5,058,450$ (397,505)$ 6 Account 447, Surplus Sales (51,735,153)$ (16,076,860)$ 35,658,293$ 160,578,735$ 225,464,790$ 64,886,055$ 100% Sharing Accounts 7 Account 555, PURPA 133,853,869$ 193,826,319$ 59,972,450$ 8 Account 555, Demand Response Incentives 11,252,265$ 7,613,612$ (3,638,653)$ 9 Total 305,684,869$ 426,904,721$ 121,219,852$ 2020-2021 PCA FORECAST (Total System) BLACKWELL, DI 4 Idaho Power Company energy prices, available hydro generation, coal and natural 1 gas prices, and any existing hedge transactions. The 2 system load forecast is then analyzed against the resulting 3 monthly heavy load and light load dispatch to determine a 4 monthly load and resource balance. Any identified resource 5 deficiency is assumed to be filled with market energy 6 purchases or natural gas to fuel the Langley Gulch power 7 plant (“Langley Gulch”), based on economics and available 8 generating capacity at Langley Gulch. Economically 9 dispatched generation above the system load forecast 10 represents surplus energy sales. The forecast of monthly 11 NPSE and generation for the 2020-2021 PCA Year, as 12 determined in the Company’s March 26, 2020, Operating Plan, 13 is provided in Exhibit No. 2. 14 Q. How are the forecasted NPSE differences 15 presented in Table 1 used to determine the 2020-2021 PCA 16 forecast component to be collected from Idaho customers? 17 A. The 2020-2021 PCA forecast component to be 18 collected from Idaho customers reflects the Idaho 19 jurisdictional share of the forecasted NPSE differences 20 presented in Table 1, adjusted for the PCA sharing 21 provisions described in Mr. Tatum’s testimony. The Idaho 22 jurisdictional share of the forecast NPSE differences is 23 determined by applying a ratio of forecast firm Idaho 24 25 BLACKWELL, DI 5 Idaho Power Company jurisdictional sales to forecast firm system-level sales to 1 the system-level NPSE differences. 2 Q. What is the Company’s forecast of system-level 3 firm sales and Idaho jurisdictional firm sales for the 4 2020-2021 PCA Year? 5 A. The system-level firm sales forecast is 6 15,039,869 megawatt-hours (“MWh”), with Idaho 7 jurisdictional firm sales of 14,354,874 MWh, or 95.45 8 percent of the system level. 9 Q. What is the Company’s determination of the 10 2020-2021 PCA forecast component to be collected from Idaho 11 customers? 12 A. The 2020-2021 PCA forecast component to be 13 collected from Idaho customers is $112,436,598. Table 2 14 below presents the determination of the 2020-2021 PCA 15 forecast component by individual PCA expense and revenue 16 category. 17 18 Table 2 Line No.FERC Account Difference from Base Difference After Sharing Idaho Allocation 95% Sharing Accounts (From Table 1) 1 Account 501, Coal (5,969,168)$ (5,670,709)$ (5,412,435)$ 2 Account 536, Water for Power (880,597)$ (836,567)$ (798,465)$ 3 Account 547, Other Fuel 9,231,705$ 8,770,120$ 8,370,682$ 4 Account 555, Purchased Power Non-PURPA 27,243,327$ 25,881,160$ 24,702,396$ 5 Account 565, 3rd Party Transmission (397,505)$ (377,630)$ (360,430)$ 6 Account 447, Surplus Sales 35,658,293$ 33,875,379$ 32,332,515$ 64,886,055$ 61,641,753$ 58,834,263$ 100% Sharing Accounts 7 Account 555, PURPA 59,972,450$ 59,972,450$ 57,240,988$ 8 Account 555, Demand Response Incentives (3,638,653)$ (3,638,653)$ (3,638,653)$ 9 Total 121,219,852$ 117,975,550$ 112,436,598$ 2020-2021 PCA FORECAST BLACKWELL, DI 6 Idaho Power Company Mr. Tatum’s testimony explains how the 2020-2021 PCA 1 forecast amount compares to the 2019-2020 PCA forecast 2 amount currently being collected from Idaho customers. 3 II. ADDITIONAL PCA RATE ADJUSTMENTS 4 A. Revenue Sharing. 5 Q. When was the revenue sharing mechanism 6 originally established? 7 A. The revenue sharing mechanism was originally 8 established in Case No. IPC-E-09-30 and approved in Order 9 No. 30978, effective for the years 2009-2011. The revenue 10 sharing mechanism was modified and extended for the years 11 2012-2014 in Order No. 32424 in Case No. IPC-E-11-22, and 12 was again modified and extended for the years 2015-2019 in 13 Order No. 33149 in Case No. IPC-E-14-14. 14 Q. What are the provisions of the current revenue 15 sharing mechanism? 16 A. In Case No. IPC-E-14-14, the Company filed a 17 motion to approve a settlement stipulation (“2014 18 Stipulation”) extending the sharing mechanism, with 19 modifications, through the end of the 2019 fiscal year. 20 The Commission approved the 2014 Stipulation in Order No. 21 33149. 22 Per the terms of the 2014 Stipulation, if the 23 Company’s actual year-end Return on Equity (“ROE”) for the 24 Idaho jurisdiction exceeds 10 percent, all amounts up to 25 BLACKWELL, DI 7 Idaho Power Company and including a 10.5 percent ROE will be shared between 1 customers and the Company on a 75 percent and 25 percent 2 basis, respectively, to be provided as a rate reduction to 3 become effective at the time of the subsequent year’s PCA. 4 If the Company’s Idaho jurisdictional ROE exceeds 10.5 5 percent, all amounts in excess of 10.5 percent will be 6 shared 50 percent with Idaho customers as a rate reduction 7 to become effective with the subsequent year’s PCA, 25 8 percent will be shared with Idaho customers in the form of 9 an offset to amounts in the Company’s pension balancing 10 account, and 25 percent will be apportioned to the Company. 11 With regard to the amortization of Accumulated 12 Deferred Investment Tax Credits (“ADITC”), the 2014 13 Stipulation allows the Company to accelerate the 14 amortization of ADITC to achieve a maximum 9.5 percent 15 Idaho jurisdictional ROE if the Company’s year-end actual 16 results fall below that amount in any single year between 17 2015 and 2019. The extension limits total cumulative 18 accelerated amortization of ADITC to $45 million over the 19 2015-2019 period, with no more than $25 million to be 20 accelerated in a single year. 21 Q. Have you provided an exhibit that summarizes 22 the terms of the current sharing mechanism? 23 A. Yes. Exhibit No. 3 contains a graphical 24 depiction of the current sharing mechanism, detailing the 25 various ROE thresholds and sharing provisions. 26 BLACKWELL, DI 8 Idaho Power Company Q. Did the revenue sharing mechanism result in 1 any action following the 2009-2018 fiscal years? 2 A. Yes. The Company’s earnings in each year from 3 2011 through 2015, as well as 2018, resulted in revenue 4 sharing with customers totaling $126.2 million, either as a 5 direct rate offset in the PCA or as an offset to amounts 6 that would have otherwise been collected in rates. The 7 Company’s earnings in 2016 and 2017 were below the revenue 8 sharing threshold. These amounts are detailed in Table 3 9 below. 10 11 Q. Did the Company’s year-end 2019 financial 12 results warrant any action related to the existing sharing 13 agreement per the terms of the 2014 Stipulation? 14 A. No. The Company’s year-end 2019 financial 15 results yielded an actual Idaho jurisdictional ROE of 9.8 16 percent, falling below the 10 percent ROE threshold for 17 revenue sharing, and thus resulting in no revenue sharing 18 with customers. 19 Q. Did the Company use the same methodology to 20 determine the Idaho jurisdictional 2019 year-end ROE that 21 was used in prior PCA filings? 22 Table 3 Line No.Revenue Sharing Component 2009-2011 2012-2014 2015-2018 1 Available ADITC For Use $45 Million $45 Million $45 Million 2 ROE Threshold 9.5%9.5%10.0% 3 50-50 Sharing Threshold 10.5%10.0%N/A 4 75-25 Sharing Threshold N/A 10.5%10.0% 5 Customer Benefits ($ Millions): 6 Reduction to Rates $27.1 $22.8 $8.2 Total 7 Offset to Pension Balancing Account $20.3 $47.8 $0.0 2009-2018 8 Total $47.4 $70.6 $8.2 $126.2 2009-2018 Revenue Sharing BLACKWELL, DI 9 Idaho Power Company A. Yes. The methodology used to determine the 1 Company’s Idaho jurisdictional 2019 year-end ROE is 2 consistent with the methodology used for the year-end ROE 3 determinations since the inception of the mechanism. 4 Q. Do you have an exhibit demonstrating the 5 application of this methodology? 6 A. Yes. Exhibit No. 4 provides a step-by-step 7 calculation of the Idaho jurisdictional ROE based on year-8 end 2019 financial results utilizing the Commission-9 approved methodology from previous PCA filings. 10 B. Tax Reform Benefits. 11 Q. Are customers currently receiving tax reform 12 benefits through the PCA? 13 A. Yes. Pursuant to the settlement stipulation 14 approved by Order No. 34071 in Case No. GNR-U-18-01 (“Tax 15 Stipulation”), Idaho Power included $2,680,957 in tax 16 savings associated with the federal Tax Cuts and Jobs Act 17 of 2017 (“TCJA”) as a credit to customers through the 18 Earnings Sharing component of the PCA for June 1, 2019, 19 through May 31, 2020. 20 Q. Will customers continue to receive a tax 21 reform benefit through this year’s PCA? 22 A. No. Per the terms of the Tax Stipulation, 23 beginning June 1, 2020, this credit to the PCA will be 24 25 BLACKWELL, DI 10 Idaho Power Company reduced to zero.2 As a result, the impact to billed revenue 1 is an increase of $2,680,957. 2 Q. Why are the tax reform benefits being reduced 3 to zero for this year’s PCA? 4 A. Per the terms of the Tax Stipulation, parties 5 agreed that customers would receive a short-term rate 6 reduction associated with the regulatory lag embedded in 7 the Company’s Open Access Transmission Tariff (“OATT”) 8 formula rate. Because the OATT is calculated on a 9 historical basis, it would take approximately two years for 10 tax savings resulting from the TCJA to be fully reflected 11 in OATT rates. Parties agreed in the Tax Stipulation that 12 tax benefits that would eventually be passed through to 13 OATT customers would be applied to retail rates in the 14 interim. This interim period has ended. Therefore, tax 15 savings resulting from the TCJA will be fully reflected in 16 OATT rates and will be transitioned out of the PCA 17 beginning June 1, 2020. 18 III. PCA RATE DETERMINATION 19 Q. How is the rate for the forecast portion of 20 the PCA for April 2020 through March 2021 determined? 21 A. The rate for the forecast portion of the PCA 22 is equal to the sum of (1) 95 percent of the difference 23 2 In the Matter of the Investigation into the Impact of Federal Tax Code Revisions on Utility Costs and Ratemaking, Case No. GNR-U-18- 01, Order No. 34071, page 3 (May 31, 2018). BLACKWELL, DI 11 Idaho Power Company between the non-Public Utility Regulatory Policies Act of 1 1978 (“PURPA”) expenses quantified in the Operating Plan 2 and those quantified in the Company’s last approved update 3 of NPSE, divided by the Company’s forecast of system firm 4 sales for June 1, 2020, through May 31, 2021 (“System-level 5 Sales Forecast”), and (2) 100 percent of the difference 6 between PURPA-related expenses quantified in the Operating 7 Plan and those quantified in the Company’s last approved 8 update of NPSE, divided by the Company’s System-level Sales 9 Forecast, and (3) 100 percent of the difference between the 10 Idaho jurisdictional demand response incentive payments 11 quantified in the Operating Plan and those quantified in 12 the Company’s last approved update of NPSE, divided by the 13 forecast of Idaho jurisdictional firm sales for June 1, 14 2020, through May 31, 2021. 15 Q. What is the rate for the forecast portion of 16 the PCA for April 2020 through March 2021? 17 A. The rate for non-PURPA expenses is 0.4099 18 cents per kilowatt-hour (“kWh”), which is calculated by 19 multiplying $64,886,055 from Table 1 by 95 percent and then 20 dividing it by the System-level Sales Forecast of 21 15,039,869 MWh (($64,886,055 * 0.95) / 15,039,869) = 22 $4.099/MWh = 0.4099 cents/kWh). The rate for PURPA 23 expenses is 0.3988 cents per kWh, which is calculated by 24 dividing $59,972,450 from Table 1 by the 15,039,869 MWh 25 BLACKWELL, DI 12 Idaho Power Company ($59,972,450 / 15,039,869 MWh = $3.988/MWh = 0.3988 1 cents/kWh). The rate for demand response incentive 2 payments is a negative 0.0253 cents per kWh, which is 3 calculated by dividing the negative $3,638,653 from Table 1 4 by the forecast of Idaho jurisdictional firm sales of 5 14,354,874 MWh (-$3,638,653 / 14,354,874 MWh = -$0.253/MWh 6 = -0.0253 cents/kWh). The forecast portion of the PCA rate 7 is 0.7833 cents per kWh, which is calculated by adding the 8 non-PURPA expense of 0.4099 cents per kWh to the PURPA 9 expense of 0.3988 cents per kWh to the demand response 10 incentive payment of negative 0.0253 cents per kWh (0.4099 11 + 0.3988 + -0.0253 = 0.7833 cents/kWh). 12 Q. How did you compute this year’s True-up rate? 13 A. As discussed in Mr. Tatum’s testimony, this 14 year’s True-up component of the PCA is approximately 15 negative $31.9 million, which, when divided by the 16 Company’s forecast of Idaho jurisdictional sales of 17 14,354,874 MWh, results in a rate of negative 0.2220 cents 18 per kWh (-$31,869,646 / 14,354,874 = -$2.220/MWh = -0.2220 19 cents/kWh). 20 The True-up of the True-up rate is calculated by 21 dividing negative $10,778,801 (also discussed in Mr. 22 Tatum’s testimony) by the forecast of Idaho jurisdictional 23 sales of 14,354,874 MWh, which results in a rate of 24 negative 0.0751 cents per kWh (-$10,778,801 / 14,354,874 = 25 -$0.751/MWh = -0.0751 cents/kWh). 26 BLACKWELL, DI 13 Idaho Power Company Q. What is the resulting PCA rate when you 1 combine all the PCA components described previously? 2 A. The uniform PCA rate comprises (1) the 0.7833 3 cents per kWh for the 2020-2021 projected power cost of 4 serving firm loads under the current PCA methodology and 95 5 percent sharing, (2) the negative 0.2220 cents per kWh for 6 the 2019-2020 True-up portion of the PCA, and (3) the 7 negative 0.0751 cents per kWh for the True-up of the True-8 up. The sum of these three components is a 0.4862 cents 9 per kWh charge for all rate classes. 10 Q. What is the total PCA collection that would 11 result under the 2020-2021 PCA rates proposed by the 12 Company in this case? 13 A. The total PCA collection that would result 14 under the 2020-2021 PCA rates proposed in this case is 15 $69.8 million. If approved, the 2020-2021 PCA rates 16 will result in an increase in total billed revenue of 17 approximately $58.7 million, or 5.21 percent. 18 Q. Does this conclude your testimony? 19 A. Yes, it does. 20 21 22 23 24 25 BLACKWELL, DI 14 Idaho Power Company DECLARATION OF NICOLE A. BLACKWELL 1 I, Nicole A. Blackwell, declare under penalty of 2 perjury under the laws of the state of Idaho: 3 1. My name is Nicole A. Blackwell. I am 4 employed by Idaho Power Company as a Regulatory Analyst in 5 the Regulatory Affairs Department. 6 2. On behalf of Idaho Power, I present this 7 pre-filed direct testimony and Exhibit Nos. 2-4 in this 8 matter. 9 3. To the best of my knowledge, my pre-filed 10 direct testimony and exhibits are true and accurate. 11 I hereby declare that the above statement is true to 12 the best of my knowledge and belief, and that I understand 13 it is made for use as evidence before the Idaho Public 14 Utilities Commission and is subject to penalty for perjury. 15 SIGNED this 15th day of April 2020, at Boise, Idaho. 16 17 Signed: _________________________ 18 19 20 21 22 23 24 25 26 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO.IPC-E-20-21 IDAHO POWER COMPANY BLACKWELL,Dl TESTIMONY EXHIBIT NO.2 Li n e N o . FE R C A c c o u n t Ap r i l Ma y Ju n e Ju l y Au g u s t Se p t e m b e r Oc t o b e r No v e m b e r De c e m b e r Ja n u a r y Fe b r u a r y Ma r c h An n u a l 95 % S h a r i n g A c c o u n t s 1 Hy d r o e l e c t r i c G e n e r a t i o n ( M W h ) 1,0 4 0 , 2 4 1 89 2 , 6 6 5 83 0 , 5 5 0 56 1 , 3 2 6 47 8 , 2 3 3 47 5 , 2 2 9 47 1 , 4 6 0 38 4 , 6 6 8 44 4 , 8 9 0 51 2 , 1 5 7 47 6 , 8 2 7 77 3 , 4 7 2 7, 3 4 1 , 7 1 7 Ac c o u n t 5 3 6 , W a t e r f o r P o w e r 2 T o t a l E x p e n s e - $ - $ - $ 1, 5 0 0 , 0 0 0 $ - $ - $ - $ - $ 0 $ - $ - $ - $ 1, 5 0 0 , 0 0 0 $ Ac c o u n t 5 0 1 , C o a l Bo a r d m a n 3 E n e r g y ( M W h ) - - 9,9 7 9 36 , 0 5 3 36 , 0 5 3 22 , 1 0 6 - - - - - - 10 4 , 1 9 1 4 T o t a l E x p e n s e 13 , 5 5 7 $ 13 , 5 5 7 $ 23 9 , 8 8 1 $ 83 3 , 9 4 5 $ 83 8 , 3 2 8 $ 52 6 , 5 4 1 $ 13 , 5 5 7 $ 13 , 5 5 7 $ 13 , 5 5 7 $ - $ - $ - $ 2, 5 0 6 , 4 8 2 $ Br i d g e r 5 E n e r g y ( M W h ) 14 4 , 1 6 0 14 7 , 9 2 0 20 6 , 4 8 0 27 1 , 9 6 0 31 1 , 1 7 1 17 2 , 4 0 0 18 3 , 9 8 0 19 7 , 8 6 8 37 9 , 7 7 5 31 7 , 4 5 9 18 8 , 3 0 0 17 8 , 5 8 0 2, 7 0 0 , 0 5 1 6 T o t a l E x p e n s e 4,7 3 9 , 8 1 7 $ 4, 8 7 9 , 9 7 9 $ 6,7 2 6 , 1 4 0 $ 8, 8 7 1 , 0 0 7 $ 10 , 2 0 0 , 1 7 4 $ 5,8 0 4 , 1 0 3 $ 6, 2 4 3 , 1 5 7 $ 6, 7 5 3 , 0 1 4 $ 12 , 8 3 7 , 6 2 5 $ 10 , 8 1 0 , 6 2 2 $ 6, 5 0 3 , 3 4 8 $ 6,1 6 9 , 1 7 2 $ 90 , 5 3 8 , 1 5 7 $ Va l m y 7 E n e r g y ( M W h ) - - 49 , 6 8 0 51 , 3 3 6 66 , 8 9 6 - - - - - - - 16 7 , 9 1 2 8 T o t a l E x p e n s e 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 2,1 6 8 , 6 9 1 $ 2, 2 3 2 , 6 6 2 $ 2, 8 3 8 , 0 2 0 $ 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 25 0 , 0 0 0 $ 9, 4 8 9 , 3 7 3 $ Ac c o u n t 5 4 7 , O t h e r F u e l La n g l e y G u l c h 9 E n e r g y ( M W h ) - 10 9 , 6 0 0 11 5 , 3 6 0 19 8 , 8 0 0 19 9 , 2 1 6 19 6 , 7 2 0 - 20 4 , 1 4 5 21 4 , 9 9 2 21 5 , 1 3 6 19 1 , 3 2 8 20 7 , 6 2 5 1, 8 5 2 , 9 2 2 10 T o t a l E x p e n s e 37 9 , 5 9 8 $ 1, 4 7 5 , 3 9 3 $ 1,6 4 7 , 6 4 1 $ 3, 5 1 7 , 2 5 8 $ 3, 6 7 9 , 1 1 2 $ 3,3 7 5 , 9 8 3 $ 39 1 , 4 4 9 $ 3, 9 7 4 , 8 8 7 $ 4, 8 1 6 , 3 9 0 $ 5, 1 5 7 , 9 8 3 $ 3, 8 2 1 , 0 3 0 $ 3,7 0 2 , 0 6 0 $ 35 , 9 3 8 , 7 8 4 $ Da n s k i n 11 E n e r g y ( M W h ) - - - 87 , 5 7 6 17 , 0 4 8 16 , 0 0 0 - - - - - - 12 0 , 6 2 4 12 T o t a l E x p e n s e 18 2 , 1 1 8 $ 18 8 , 3 9 9 $ 18 1 , 7 5 4 $ 2, 6 7 5 , 6 5 6 $ 69 6 , 6 0 6 $ 54 0 , 6 3 3 $ 18 8 , 3 9 9 $ 18 1 , 7 5 4 $ 18 8 , 3 9 9 $ 18 8 , 5 7 5 $ 16 8 , 5 8 9 $ 18 8 , 5 7 5 $ 5, 5 6 9 , 4 5 7 $ Be n n e t t M o u n t a i n 13 E n e r g y ( M W h ) - - - - - - - - - - - - - 14 T o t a l E x p e n s e 89 , 7 0 0 $ 92 , 7 9 4 $ 89 , 5 2 1 $ 92 , 7 9 4 $ 92 , 7 9 4 $ 89 , 5 2 1 $ 92 , 7 9 4 $ 89 , 5 2 1 $ 92 , 7 9 4 $ 92 , 8 8 0 $ 83 , 0 3 6 $ 92 , 8 8 0 $ 1, 0 9 1 , 0 2 6 $ Ac c o u n t 5 5 5 , P u r c h a s e d P o w e r N o n - P U R P A 15 E n e r g y ( M W h ) 39 , 7 9 7 73 , 1 3 4 14 2 , 3 6 2 29 7 , 9 7 3 33 3 , 3 7 1 19 3 , 6 7 4 27 9 , 9 8 2 19 1 , 7 7 0 18 4 , 4 5 6 18 4 , 6 8 0 13 6 , 1 9 4 38 , 0 6 2 2, 0 9 5 , 4 5 4 16 T o t a l E x p e n s e 2,8 3 1 , 6 2 6 $ 2, 6 2 3 , 4 5 6 $ 4,2 9 4 , 3 8 0 $ 10 , 1 0 8 , 4 7 2 $ 13 , 1 9 4 , 9 4 9 $ 8,0 9 7 , 3 2 2 $ 9, 9 4 9 , 1 4 9 $ 9, 1 2 9 , 6 4 1 $ 10 , 5 2 5 , 6 0 9 $ 9, 1 8 2 , 8 9 0 $ 6, 9 4 3 , 4 3 8 $ 2,9 6 8 , 9 8 7 $ 89 , 8 4 9 , 9 2 0 $ Ac c o u n t 5 6 5 , 3 r d P a r t y T r a n s m i s s i o n 17 T o t a l E x p e n s e 34 6 , 2 7 2 $ 28 1 , 1 3 7 $ 58 9 , 8 9 1 $ 80 1 , 7 1 6 $ 76 0 , 4 7 9 $ 46 6 , 9 5 3 $ 49 2 , 5 0 3 $ 27 4 , 5 7 1 $ 25 1 , 3 0 1 $ 26 1 , 8 7 0 $ 25 9 , 5 4 0 $ 27 2 , 2 1 7 $ 5, 0 5 8 , 4 5 0 $ Ac c o u n t 4 4 7 , S u r p l u s S a l e s 18 E n e r g y ( M W h ) 41 8 , 0 8 1 23 5 , 8 5 6 11 8 , 9 6 3 - - 16 , 0 0 0 - - - - 1, 8 2 2 27 1 , 3 5 5 1, 0 6 2 , 0 7 7 19 T o t a l E x p e n s e (5 , 5 9 1 , 4 7 1 ) $ (2 , 6 5 7 , 5 5 3 ) $ (1 , 7 7 7 , 9 2 3 ) $ - $ - $ (4 0 8 , 0 0 0 ) $ - $ - $ - $ - $ (5 6 , 6 0 8 ) $ (5 , 5 8 5 , 3 0 5 ) $ (1 6 , 0 7 6 , 8 6 0 ) $ 10 0 % S h a r i n g A c c o u n t s Ac c o u n t 5 5 5 , P U R P A 20 E n e r g y ( M W h ) 30 1 , 0 1 6 29 4 , 9 4 6 31 3 , 5 4 1 30 0 , 0 0 1 28 2 , 0 5 3 24 1 , 4 9 6 22 6 , 4 1 6 20 0 , 9 7 1 18 5 , 3 3 0 18 8 , 3 6 9 20 4 , 8 8 3 23 7 , 5 3 2 2, 9 7 6 , 5 5 4 21 T o t a l E x p e n s e 14 , 6 1 8 , 5 4 9 $ 13 , 8 8 4 , 1 4 1 $ 19 , 9 1 2 , 9 1 3 $ 22 , 0 2 6 , 3 7 2 $ 21 , 1 1 5 , 6 9 8 $ 15 , 6 4 6 , 1 7 0 $ 14 , 8 1 1 , 9 7 0 $ 16 , 2 7 7 , 8 2 4 $ 15 , 4 2 5 , 5 4 8 $ 13 , 4 9 2 , 1 9 9 $ 14 , 4 5 2 , 6 0 4 $ 12 , 1 6 2 , 3 3 1 $ 19 3 , 8 2 6 , 3 1 9 $ Ac c o u n t 5 5 5 , D e m a n d R e s p o n s e I n c e n t i v e s 22 T o t a l E x p e n s e - $ - $ 28 0 , 5 0 0 $ 2, 9 3 7 , 9 6 0 $ 3, 0 6 8 , 6 7 8 $ 1,2 9 2 , 8 1 4 $ 33 , 6 6 0 $ - $ - $ - $ - $ - $ 7, 6 1 3 , 6 1 2 $ 23 To t a l N e t P o w e r S u p p l y E x p e n s e 17 , 8 5 9 , 7 6 7 $ 21 , 0 3 1 , 3 0 4 $ 34 , 3 5 3 , 3 8 9 $ 55 , 5 9 7 , 8 4 3 $ 56 , 4 8 4 , 8 3 7 $ 35 , 6 8 2 , 0 3 9 $ 32 , 4 6 6 , 6 3 8 $ 36 , 9 4 4 , 7 6 9 $ 44 , 4 0 1 , 2 2 2 $ 39 , 4 3 7 , 0 1 8 $ 32 , 4 2 4 , 9 7 7 $ 20 , 2 2 0 , 9 1 8 $ 42 6 , 9 0 4 , 7 2 1 $ 24 To t a l G e n e r a t i o n ( M W h ) 1,5 2 5 , 2 1 5 1, 5 1 8 , 2 6 4 1,6 6 7 , 9 5 2 1, 8 0 5 , 0 2 5 1, 7 2 4 , 0 4 0 1,3 1 7 , 6 2 4 1, 1 6 1 , 8 3 8 1, 1 7 9 , 4 2 1 1, 4 0 9 , 4 4 2 1, 4 1 7 , 8 0 1 1, 1 9 7 , 5 3 1 1,4 3 5 , 2 7 1 17 , 3 5 9 , 4 2 5 25 To t a l L o a d ( M W h ) 1,1 0 7 , 1 3 4 1, 2 8 2 , 4 0 9 1,5 4 8 , 9 8 9 1, 8 0 5 , 0 2 5 1, 7 2 4 , 0 4 0 1,3 0 1 , 6 2 4 1, 1 6 1 , 8 3 8 1, 1 7 9 , 4 2 1 1, 4 0 9 , 4 4 2 1, 4 1 7 , 8 0 1 1, 1 9 5 , 7 0 9 1,1 6 3 , 9 1 6 16 , 2 9 7 , 3 4 9 A P R I L 1 , 2 0 2 0 - M A R C H 3 1 , 2 0 2 1 ID A H O P O W E R P C A F O R E C A S T Exhibit No. 2 Case No. IPC-E-20-21 N. Blackwell, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO.IPC-E-20-21 IDAHO POWER COMPANY BLACKWELL,Dl TESTIMONY EXHIBIT NO.3 Re v e n u e Sh a r i n g /A D I T C Se t t l e m e n t 20 1 5 -2 0 1 9 (1 ) AD I T C —Ac c u m u l a t e d D e f e r r e d I n v e s t m e n t T a x C r e d i t s Sh a r i n g P e r c e n t a g e Ab i l i t y t o u s e a d d i t i o n a l AD I T C ’ s o f u p t o $ 4 5 m i l l i o n fr o m 2 0 1 6 – 20 1 9 Re t u r n O n Y e a r -En d E q u i t y I n I d a h o J u r i s d i c t i o n Cu s t o m e r B e n e f i t – Ra t e D e c r e a s e Co m p a n y B e n e f i t ( 2 5 % ) Ea r n i n g s De a d b a n d (1 ) As a p p r o v e d b y t h e I d a h o P u b l i c U t i l i t i e s C o m m i s s i o n on O c t o b e r 9 , 2 0 1 4 , O r d e r N o . 3 3 1 4 9 . Cu s t o m e r B e n e f i t – Pe n s i o n O b l i g a t i o n R e d u c t i o n Exhibit No. 3 Case No. IPC-E-20-21 N. Blackwell, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO.IPC-E-20-21 IDAHO POWER COMPANY BLACKWELL,Dl TESTIMONY EXHIBIT NO.4 1 2 3 4 5 6 7 TOTAL TOTAL 8 SYSTEM IDAHO IDAHO %SYSTEM IDAHO IDAHO % 9 * * * SUMMARY OF RESULTS * * * 10 TOTAL COMBINED RATE BASE 3,450,267,867 3,306,302,492 95.8% 11 12 DEVELOPMENT OF NET INCOME 13 OPERATING REVENUES 14 RETAIL SALES REVENUES (Incl 449.1 Rev)876,922,193 837,369,834 Direct Assign 1,130,610,828 1,078,620,003 Direct Assign 15 OTHER OPERATING REVENUES 170,723,811 162,834,273 95.4%208,415,969 198,784,590 95.4% 16 TOTAL OPERATING REVENUES 1,047,646,004 1,000,204,107 1,339,026,797 1,277,404,593 17 18 OPERATING EXPENSES 19 OPERATION & MAINTENANCE EXPENSES 652,997,716 623,072,417 95.4%839,892,687 801,402,445 95.4% 20 DEPRECIATION EXPENSE 119,623,897 114,634,234 95.8%160,712,358 154,008,845 95.8% 21 AMORTIZATION OF LIMITED TERM PLANT 5,165,262 4,952,039 95.9%6,900,068 6,615,232 95.9% 22 TAXES OTHER THAN INCOME 27,064,120 25,216,636 93.2%34,045,010 31,720,989 93.2% 23 REGULATORY DEBITS/CREDITS 984,502 806,515 81.9%1,312,670 1,075,354 81.9% 24 PROVISION FOR DEFERRED INCOME TAXES (5,291,665)(5,074,157)95.9%10,407,226 9,979,448 95.9% 25 INVESTMENT TAX CREDIT ADJUSTMENT 5,813,032 5,571,695 95.8%2,016,034 1,932,335 95.8% 26 FEDERAL INCOME TAXES 20,949,176 20,045,565 95.7%18,660,529 17,855,636 95.7% 27 STATE INCOME TAXES 6,009,129 5,742,878 95.6%(4,663,949)(4,457,300)95.6% 28 TOTAL OPERATING EXPENSES 833,315,168 794,967,822 1,069,282,635 1,020,132,983 29 30 OPERATING INCOME 214,330,836 205,236,285 269,744,162 257,271,609 31 ADD: IERCO OPERATING INCOME 6,116,900 5,833,615 95.4%8,489,145 8,095,997 95.4% 32 33 OPERATING INCOME BEFORE OTHER INCOME AND DEDUCTIONS 220,447,736 211,069,900 278,233,308 265,367,606 95.4% 34 ADD: AFUDC EQUITY 27,112,279 25,980,996 95.8%(L 10) 35 ADD: OTHER INCOME AND DEDUCTIONS 5,791,096 5,523,311 95.4%(L 33) 36 37 INCOME BEFORE INTEREST CHARGES 311,136,682 296,871,913 38 LESS: INTEREST CHARGES 86,699,860 83,082,234 95.8%(L 10) 39 40 NET INCOME 224,436,822 213,789,679 41 42 ACTUAL YEAR-END RESULTS - BEFORE ITC ADJUSTMENT 43 EARNINGS ON COMMON STOCK 224,436,822 213,789,679 44 COMMON EQUITY AT YEAR END 2,275,558,405 2,180,608,786 95.8%(L10) 45 46 RETURN ON YEAR-END COMMON EQUITY 9.86%9.80% 47 48 EARNINGS ON COMMON STOCK @ 9.50 ROE 216,178,048 207,157,835 (L44 * 9.5%) 49 EARNINGS ON COMMON STOCK @ 10 ROE 227,555,840 218,060,879 (L44 * 10%) 50 EARNINGS ON COMMON STOCK @ 10.50 ROE 238,933,633 228,963,922 (L44 * 10.5%) 51 52 53 ACTUAL YEAR-END RESULTS - AFTER ITC ADJUSTMENT: 54 INVESTMENT TAX CREDIT ADJUSTMENT (7,328,005)(L48-L43) / (1-9.5%) 55 ADJUSTED EARNINGS ON COMMON STOCK 206,461,674 56 ADJUSTED COMMON EQUITY AT YEAR-END 2,173,280,780 57 ADJUSTED RETURN ON YEAR-END COMMON EQUITY 9.50% 58 59 IF IDAHO RETURN ON COMMON EQUITY (Line 46) <9.5% 60 ADDITIONAL ITC ADJUSTMENT (Annualized)If L 54 is negative, then 0; if positive, then smaller of L54 or $25,000,000 0 61 62 IF IDAHO RETURN ON COMMON EQUITY (Line 46) >10% 63 IDAHO EARNINGS GREATER THAN 10% ROE BUT LESS THAN 10.5%0 (L43-L49)/(1-10%) 64 65 IF IDAHO RETURN ON COMMON EQUITY (Line 46) >10.5% 66 INCREMENTAL IDAHO EARNINGS GREATER THAN 10.50% ROE 0 (L43-L50)/(1-10.5%) 67 68 Per Order #33149:After Tax Tax Gross Up 69 ROE between 10%-10.5% --CUSTOMER SHARE - 75% (Reduction to rates)0 - 70 ROE between 10%-10.5% --COMPANY SHARE - 25% 0 71 ROE greater than 10.5% (Incremental) -- CUSTOMER SHARE - 50% (Reduction to rates)0 - ROE greater than 10.5% (Incremental) -- CUSTOMER SHARE - 25% (Offset to Pension balance)0 - 72 ROE greater than 10.5% (Incremental) --COMPANY SHARE - 25% 0 73 0 74 September Allocations/Ratios IDAHO POWER COMPANY ADDITIONAL INVESTMENT TAX CREDIT ANALYSIS For the Twelve Months Ended December 31, 2019 Actual September 30, 2019 Actual December 31, 2019 Exhibit No. 4 Case No. IPC-E-20-21 N. Blackwell, IPC Page 1 of 1