20220701Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MICHAEL ELDRED
RILEY NEWTON
DATE:JULY 5,2022
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY FOR AUTHORITY TO ESTABLISH A NEW SCHEDULE TO
SERVE SPECULATIVE HIGH-DENSITY LOAD CUSTOMERS
COMPLIANCE FILING -TARIFF SCHEDULE 20
CASE NO.IPC-E-21-37
BACKGROUND
On November 4,2021,Idaho Power Company ("Company")applied to the Commission
for authorityto establish a new schedule,Schedule 20,to serve speculative high-density
customers-specifically,large-scale cryptocurrency mining operators ("HDL Customers").In
Order No.35428,the Commission approved the Application as filed in Case No.IPC-E-21-37,
authorizing the Company to establish an HDL new customer classification and implementation
of Schedule 20.As a result of Order No.35428,the Company submitted a compliance filing
including new Schedule 20 tariff sheets along with updates to other tariffs referencing the new
Schedule 20.
STAFF ANALYSIS AND RECOMMENDATION
Staff recommends that the Commission approve the new and updated tariff sheets
included in the Company's compliance filing with an effective date of June 15,2022.
The new Schedule 20 tariff sheets in this filing are consistent with the tariff sheets filed in
the Application for Case No.IPC-E-21-37 with two exceptions.First,the rates in this filing
include the 1.5%increase in rates approved in Case No.IPC-E-21-17.Order No.35423 at 14.
DECISION MEMORANDUM -l -JULY 5,2022
This change is necessary because the Schedule 20 rates are based on Schedule 9 and 19 rates and
should be updated whenever Schedule 9 and 19 rates are updated.Staff reviewed the rates and
believes they are consistent with the 1.5%rate increase approved in Case No.IPC-E-21-17.
Second,the marginal energy cost component of the Schedule 20 rates in the compliance
filing reflects the 2022 DSM Avoid Cost Averages from the Second Amended 2019 Integrated
Resource Plan ("IRP")instead of the 2021 Avoided Cost Averages filed in the original
Application.Staff reviewed the change and believes it is necessary in order to comply with
Order No.35428.In that order,the Commission approved the Company's Application as filed,
which proposed that the marginal energy cost component be updated on January 1 of each year
using the latest acknowledged IRP.
The Company also updated tariff sheets that reference the new Schedule 20 and two other
changes to the Schedule Index(Sheet No.iii)to ensure that the index accurately reflects the
content of the Company's tariffs.
COMMISSION DECISION
Does the Commission wish to accept the Company's new Schedule 20 tariff sheets,
updated Schedule sheets referencing the new Schedule 20,and changes to the Schedule Index
with an effective date of June 15,2022?
Michael El red
Udmemos/Decision Memo IPC-E-21-37 Comphance Fding
DECISION MEMORANDUM -2 -JULY 5,2022