20220504Final_Order_No_35395.pdf

ORDER NO. 35395 1
Office of the Secretary
Service Date
May 4, 2022

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S ANNUAL COMPLIANCE
FILING TO UPDATE THE LOAD AND GAS
FORECASTS IN THE INCREMENTAL COST
INTEGRATED RESOURCE PLAN AVOIDED
COST MODEL
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CASE NO. IPC-E-21-35

ORDER NO. 35395

On October 15, 2021, Idaho Power Company (“Company”) filed its annual update to
its load forecast, natural gas price forecast, and contracts used as inputs to calculate its incremental
cost Integrated Resource Plan (“IRP”) avoided cost rates. The Company must update these inputs
annually by October 15. See Order Nos. 32697 and 32802.
On November 5, 2021, the Company filed a supplement to its annual filing which
updated the Peak Hours and Premium Peak Hours used to calculate capacity payments for battery
storage resources in the incremental cost IRP avoided cost model.
On November 19, 2021, the Commission issued a Notice of Filing and established
public comment and Company reply deadlines. Order No. 35228.
On November 22, 2021, the Company filed a second supplement correcting an error
that the Company discovered in the natural gas price forecast submitted in its annual filing.
On December 21, 2021, Commission Staff (“Staff”) filed comments to which the
Company filed a reply.
On January 21, 2022, the Commission issued Order No. 35294 therein approving the
Company’s updated load forecast and contracts used as inputs to calculate its incremental cost IRP
avoided cost rates but rejecting the Company’s natural gas price forecast.
On February 11, 2022, the Company filed a Petition for Clarification and/or
Reconsideration (“Petition”) asking the Commission to grant clarification and/or reconsideration
on two specific issues related to Order No. 35294’s direction regarding the natural gas price
forecast.
On March 10, 2022, the Commission issued Order No. 35344 therein clarifying its
directive to the Company to file a 20-year natural gas forecast.

ORDER NO. 35395 2
On April 1, 2022, the Company submitted a compliance filing for the forecast stating
its assumption that “(years 2026 -2014)” in Order No. 35344 was a typographical error that should
have stated a range of “(years 2026-2040).”
On April 4, 2022, the Commission issued Errata to Order No. 35344 clarifying that the
range of the forecast should have been “(years 2026-2041).”
On April 8, 2022, the Company submitted a replacement compliance filing to replace
the compliance filing submitted on April 1, 2022.
At the April 28, 2022, decision meeting, the Commission approved the Company’s
replacement compliance filing.
Now, we issue this Order approving the Company’s replacement compliance filing as
filed on April 8, 2022.
THE REPLACEMENT COMPLIANCE FILING
The Company submitted a natural gas forecast in the replacement compliance filing
pursuant to the method required in Order No. 35344 for years 2022 through 2040. See Order No.
35344. Staff explained that, because the July 2021 vintage Platts forecast only provides values
through year 2040, the Company used linear regression over the last five years of the Platts forecast
(years 2036 through 2040) to produce a forecast value for the year 2041. April 28, 2022, Decision
Memorandum at 1.
Staff believed the natural gas forecast for years 2022 through 2041 submitted by the
Company in its replacement compliance filing complied with the Commission’s directives in
Order No. 35344. Id. at 2. Staff also noted that the replacement compliance filing is consistent
with the natural gas forecasts recently submitted by two other Idaho electric utilities. Id. Staff
believed it reasonable for the Company to obtain the required 20-year forecast by extending the
Platts July 2021 vintage forecast one year using linear regression applied to the last five years of
the Platts forecast. Id.
COMMISSION DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502
and -503. The Commission is empowered to investigate rates, charges, rules, regulations, practices,
and contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code §§

ORDER NO. 35395 3
61-502 and -503. The Commission may enter any final order consistent with its authority under
Title 61.
Under this authority, we have reviewed the record in this case and find that the
replacement compliance filing submitted by the Company on April 8, 2022, is reasonable and
consistent with our directives.
O R D E R
IT IS HEREBY ORDERED that the Company’s replacement compliance filing
submitted on April 8, 2022, is approved as filed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 4th day
of May 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-21-35\orders\IPCE2135_final_compliance filing_rn.docx