20220520Response to ICIP Objection.pdf

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An EACOfP@mpany
LISA D. NORDSTROM
Lead Couneel
[e-mail]
May 20,2022
VIA ELECTRONIC FILING
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 W. Chinden BIvd., Bldg 8,
Suite 201-A (83714)
PO Box 83720
Boise, ldaho 83720-0074
Re Case No. IPC-E-21-17
ln the Matter of ldaho Power Company's Application for Authority to
lncrease lts Rates for Electric Service to Recover Costs Associated with the
Jim Bridger Power Plant
Dear Ms. Noriyuki:
Enclosed for electronic filing please find ldaho Power Company's Response to
lndustrial Customers of ldaho Power's Objection of ldaho Power to the Use of GNR-U-
18-01 Deferrals to Offset Bridger-Related-lncremental Costs and Notice of Breach of
Stipulated Settlement Ag reement in the above-referenced matter.
lf you have any questions about the attached document, please do not hesitate to
contact me.
Very truly yours,
,fr; P.7(^*+,.^,
Lisa D. Nordstrom
LDN:sg
Enclosures
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221\Nest ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I n o rdstrom@ ida h opowe r. com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSlON
!N THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
AUTHORITY TO INCREASE ITS RATES
FOR ELECTRIC SERVICE TO
RECOVER COSTS ASSOCIATED WTH
THE JIM BRIDGER POWER PLANT.
CASE NO. IPC-E-21-17
IDAHO POWER COMPANY
RESPONSE TO ICIP OBJECTION
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ldaho Power Company ('ldaho Powe/' or "Company') respectfully submits the
following Response to the Objection of the lndustrial Customers of Idaho Power ('lClP')
to the Use of GNR-U-18-01 Deferrals to Ofbet Bridger-Related-lncremental Costs and
Notice of Breach of Stipulated Settlement Agreement ("Objection") filed by the lClP on
May 19,2022. ln the paragraphs that follow ldaho Power will respond to lClP's
misrepresentation of the settlement provisions in Case No. GNR-U-18-01 .
ln both the Comments and Reply Comments filed by parties to this proceeding,
concerns were raised about the proposed rate increase, particularly coincident to ldaho
IDAHO POWER COMPANY RESPONSE TO ICIP OBJECTION - 1
Power's proposed rate increase associated with the2022-2023 Power Cost Adjustment.l
The Company was cognizant of those concerns and evaluated potential rate mitigation
alternatives to the proposed 2.12percent overa!! increase to customer rates. In Case No.
GNR-U-18-01, the Commission approved a Settlement Stipulation that provided for the
annual deferral of approximately $7.4 million of non-cash deferred tax benefits stemming
from the federa! Tax Cuts and Jobs Act of 2017 ("TCJA"1.z These deferred non-cash
TCJA benefits have accumulated each year to a regulatory liability that ldaho Power
estimates will be approximately $27.7 million as of June 1 , 2022. The Company's
proposal3 in this case, which is offered in recognition of concerns raised by parties to this
proceeding, is to utilize these deferred TCJA benefits to offset the requested $27.13
million annual Bridger coal-related levelized revenue requirement, thereby mitigating an
immediate increase to customer rates.
ln the Objection, lClP contends ldaho Powe/s proposal in this case violates the
terms of the Settlement Stipulation in Case No. GNR-U-18-01 because the Company
"agreed to consult ("discuss") regarding the appropriate use of the seven-million-dollar
deferralwith the "parties" to the stipulation."+ However, lClP is misrepresenting the terms
of the settlement provisions. In the Settlement Stipulation, ldaho Power agreed that use
of the deferred non-cash TCJA benefits "willbe discussed further in future recovery cases
1 ln the Matter of the Application of ldaho Power Company for Authority to lmplement Power Cost
Adjustment (PCA) Rates for Electric Seruice from June 1, 2022 through May 31, 2023, Case No. IPC-E-
22-11.2 ln the Mafter of the lnvestigation lnto the lmpact of Fedenl Tax Code Revr.sions on Utility Costs and
Ratemaking, Case No. GNR-U-18-01 , Order No. 34071 (May 31, 2018).
3 ldaho Power Company's Response to All-Party Reply Comments at 9-11 (May 18,2022).I Objection of the lndustrial Customers of ldaho Power to the Use of GNR-U-18-01 Deferrals to Offset
Bridger-Related lncremental Costs and Notice of Breach of Stipulated Settlement Agreement al2 (May
19,2022).
IDAHO POWER COMPANY RESPONSE TO ICIP OBJECTION -2
as appropriate."s The terms of the Settlement Stipulation do not require the Company to
consult with parties prior to suggesting how the deferred TCJA benefits would be used
but rather that the application of the benefits would be determined in a future case. This
is a "future recovery case" and the Commission will make findings as to whether use of
the tax credits in this proceeding in appropriate.
ldaho Power believes that now is an opportune time to utilize these deferred TCJA
benefits to offset the annual levelized revenue requirement proposed in this case
associated with the prudently incurred Bridger investments. The Company respectfully
requests the Commission consider its proposed rate mitigation alternative and authorize
the Company to utilize the non-cash deferred TCJA benefits to offset the incremental
annual levelized revenue requirement of $27.13 million associated with its prudent
Bridger investments untilcustomer rates can be adjusted in a future revenue requirement
proceeding.
DATED at Boise, ldaho, this 20th day of May,2022.
X* l.Y^1"t".^,
LISA D. NORDSTROM
Attorney for ldaho Power Company
5 Case No. GNR-U-18-01, Settlement Stipulation and Motion to Approve Settlement Stipulation at 9, fl
14.b.
IDAHO POWER COMPANY RESPONSE TO ICIP OBJECTION - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 20th day of May 20221 served a true and correct
copy of IDAHO POWER COMPANY RESPONSE TO lClP OBJECTION upon the
following named parties by the method indicated below, and addressed to the following:
Gommission Staff
Chris Burdin
Deputy Attorney General
ldaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No.8,
Suite 2O1-A (83714)
PO Box 83720
Boise, lD 83720-0074
Industrial Customer of ldaho Power
Peter J. Richardson
RICHARDSON ADAMS, PLLC
515 North 27h Street (83702)
Boise, ldaho 83707
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 N. 6th Street
Boise, ldaho 83701
City of Boise
Ed Jewell
150 N. Capitol Blvd.
P.O. Box 500
Boise, ldaho 83701-0500
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boisecitvattornev@citvofboise. orq
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IDAHO POWER COMPANY RESPONSE TO ICIP OBJECTION -4
Clean Energy Opportunities for ldaho, Inc.
Kelsey Jae
Law for Conscious Leadership
920 N. Clover Dr.,
Boise, ldaho 83703
Michael Heckler
Courtney Write
Clean Energy Opportunities for ldaho
3778 Plantation River Drive, Suite 102
Boise, lD 83703
Sierra Glub
Rose Monahan
Ana Boyd
2101 Webster Street, Suite 1300
Oakland, CA94612
Micron Technology, lnc.
Austin Rueschhoff
Thorvald A. Nelson
Austin W. Jensen
Holland & Hart LLP
555 17th Street, Suite 3200
Denver, CO 80202
Micron Technology, lnc.
Jim Swier
8000 S. FederalWay
Boise, lD 83707
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mike@cleanenerqvooportu nities.com
cou rtney@cleanenerovopportu n ities. com
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tnelson @holland hart.com
awiensen@hol landhart.com
aclee@holla nd hart.com
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),toc!b &^j.
Stacy Gust, Regulatory Administrative
Assistant
IDAHO POWER COMPANY RESPONSE TO ICIP OBJECTION - 5