20211124Notice_of_Proposed_Settlement_Order_No_35230.pdf

NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35230 1

Office of the Secretary
Service Date
November 24, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On June 3, 2021, Idaho Power Company (“Company”) applied to the Commission for
authorization to implement revised depreciation rates for electric plant-in-service. The Company
requests that the revised rates be effective as of December 1, 2021, and that its Application be
processed by modified procedure.
On June 24, 2021, the Commission issued a Notice of Application and set a deadline
for interested parties to intervene. Order No. 35089. The Industrial Customers of Idaho Power
(“ICIP”) intervened. Order No. 35114.
On August 24, 2021, Staff notified the Commission Secretary that it was entering into
settlement negotiations with the parties in this case and parties in the related Oregon docket
intending to revise depreciation rates and ensure those rates remain consistent among jurisdictions.
On November 10, 2021, a Settlement Stipulation (“Settlement”) and Joint Motion to
Approve Settlement Stipulation were filed in this case. The Company, Staff, and ICIP (collectively
the “Parties,” or individually “Party”) signed the Settlement which included an agreement on
revised depreciation rates. The parties agreed the revised rates should become effective January 1,
2022.
On November 17, 2021, at the Commission’s Decision meeting, Staff recommended
the Commission suspend the Company’s proposed December 1, 2021 effective date and issue a
Notice of Proposed Settlement and Notice of Modified Procedure establishing public comment
and Company reply deadlines.
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
AUTHORITY TO INCREASE ITS RATES
DUE TO REVISED DEPRECIATION RATES
FOR ELECTRIC PLANT-IN-SERVICE
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CASE NO. IPC-E-21-18

NOTICE OF PROPOSED
SETTLEMENT

NOTICE OF MODIFIED
PROCEDURE

NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE

ORDER NO. 35230
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35230 2

The Commission now issues this Order noticing the proposed Settlement, establishing
public and Company reply deadlines, and suspending the proposed effective date until January 1,
2022.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Parties agree that this Settlement Stipulation
is in the public interest and that all its terms and conditions are fair, just, and reasonable.
YOU ARE FURTHER NOTIFIED that the Parties agree that the Commission should
adopt the depreciation rates set forth in Attachment 1 to the Settlement. The Parties agreed the
magnitude of the resulting depreciation expense adjustment does not warrant an associated change
in retail rates.
YOU ARE FURTHER NOTIFIED that the Parties agree that the revised depreciation
rates should be effective January 1, 2022.
YOU ARE FURTHER NOTIFIED that the agreed-upon depreciation rates represent a
compromise of the differing depreciation methods, theories, and opinions presented in this case,
and do not necessarily reflect an endorsement of the underlying rationale for each adjustment by
any of the Parties.
YOU ARE FURTHER NOTIFIED that the Parties used the straight-line method, the
remaining life basis, and the average service life depreciation procedure to calculate the revised
depreciation accrual rates. Attachment 2 to the Settlement shows the depreciation groups where
the Parties’ positions differed from the filed depreciation study and the final position agreed to by
the Parties following settlement discussions.
YOU ARE FURTHER NOTIFIED that under Commission Rule 275, “[p]roponents of
a proposed settlement carry the burden of showing that the settlement is reasonable, in the public
interest, or otherwise in accordance with law or regulatory policy.” IDAPA 31.01.01.275.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the proposed
Settlement reached by the Parties. The Commission will independently review any proposed
settlement to determine whether the settlement is just, fair, and reasonable, and in the public
interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a
settlement, reject a settlement, or state additional conditions under which a settlement will be
accepted. IDAPA 31.01.01.274-.276.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35230 3

YOU ARE FURTHER NOTIFIED that the Parties agree to support the Settlement
before the Commission and will not appeal a Commission order approving the Settlement or an
issue resolved by the Settlement. If this Settlement is challenged by any non-party, then each Party
reserves the right to file testimony, cross-examine witnesses, and put on such case as deemed
appropriate to respond fully to the issues presented, including the right to raise issues embodied in
this Settlement.
YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the
proposed Settlement or imposes any additional material conditions on its approval, each Party
reserves the right to withdraw from the Settlement.
YOU ARE FURTHER NOTIFIED that the Settlement and other documents associated
with this matter are available for public inspection during regular business hours at the
Commission’s office. These documents are also available on the Commission’s web site at
www.puc.idaho.gov. Click on the “ELECTRIC” icon, select “Open Cases,” then click on the case
number as shown on the front of this document.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, IDAPA 31.01.01.201
through .204. The Commission notes that Modified Procedure and written comments have proven
to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application or the Settlement may file a written comment explaining why the person supports or
opposes the Application or Settlement. Persons who would like a hearing must specifically request
a hearing in their written comments. Persons shall have until December 9, 2021 to file written
comments. Comments must be filed through the Commission’s website or by e-
mail unless computer access is unavailable. To comment electronically, please access the
Commission’s home page at www.puc.idaho.gov. Click the “Consumers” tab and then “Case
Comment Form” and complete the form using the case number as it appears on the front of this
document. To file by e-mail, the customer must e-mail the comments to the Commission Secretary
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35230 4

and the Company at the e-mail addresses listed below. If computer access is unavailable, then
comments may be mailed to the Commission and Company at these addresses:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
For Idaho Power Company:

Lisa Nordstrom
Matt Larkin
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
[e-mail]
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
December 16, 2021.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that, given the public interest in having adequate
time to comment on this case, the Commission finds it appropriate to suspend the Company’s
proposed effective date of December 1, 2021, until January 1, 2022, unless the Commission issues
an earlier order accepting, rejecting, or modifying the Settlement. See Idaho Code § 61-622(4).
ORDER
IT IS HEREBY ORDERED that this Application and the Settlement be processed
under Modified Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Interested persons have
until December 9, 2021 to file written comments. The Company has until December 16, 2021 to
file reply comments, if any.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35230 5

IT IS FURTHER ORDERED that Company’s proposed December 1, 2021, effective
date is suspended until January 1, 2022, unless the Commission issues an earlier order accepting,
rejecting, or modifying the Settlement. See Idaho Code § 61-622(4).
IT IS FURTHER ORDERED that parties should continue to comply with Order No.
35058, issued June 3, 2021. All pleadings should be filed with the Commission electronically and
shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 24th day
of November 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-21-18\orders\IPCE2118_ntc mod susp_dh.docx