HomeMy WebLinkAbout20211124Notice_of_Application_Order_No_35233.pdf
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35233 1
Office of the Secretary
Service Date
November 24, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
MODIFICATION OF THE POWER COST
ADJUSTMENT MECHANISM
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CASE NO. IPC-E-21-38
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 35233
On November 4, 2021, Idaho Power Company (“Company”) applied to the
Commission seeking authorization to simplify its’ power cost adjustment (“PCA”) mechanism by
replacing the “true-up” and “true-up of the true-up” components of the PCA with a balancing
account—combining the two true-up components into one balancing account rate. The Company
requests that its Application be processed by Modified Procedure.
With this Order the Commission issues notice of the Company’s Application and
establishes public comment and Company reply deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Commission approved the implementation
of the PCA on March 29, 1993, to provide consistency and stability to rates. See Order No. 24806,
Case No. IPC-E-92-25. The PCA is a cost recovery mechanism that passes the benefits and costs
of supplying energy to the Company’s customers. The Company and its shareholders do not
receive any financial return on PCA filings and money collected from the surcharge can be used
only to pay power supply expenses.
YOU ARE FURTHER NOTIFIED that the Commission has approved modifications
to the PCA over time to ensure the mechanism achieves its desired purpose of providing
consistency and stability to rates.
YOU ARE FURTHER NOTIFIED that the Company represents that consistent with
the Commission’s instructions in Order No. 35054, Case No. IPC-E-21-10, it held discussions with
the Commission Staff (“Staff”) to review whether the PCA mechanism should be modified before
the Company files next year’s PCA application in April of 2022.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35233 2
YOU ARE FURTHER NOTIFIED that the current PCA mechanism includes three
separately calculated rates: (1) the forecast rate; (2) the “true-up” rate; and (3) the “true-up of the
true-up” rate which is designed to ensure that the Company neither over nor under-recovers its
share of the variance in net power supply expenses (“NPSE”).1
YOU ARE FURTHER NOTIFIED that the Company proposes to replace the “true-up”
and “true-up of the true-up” components of the PCA with a balancing account, as suggested in
Staff Comments in the most recent PCA filing.2 The Company states the two “true-up” rates would
be combined into one “balancing account” rate.
YOU ARE FURTHER NOTIFIED that the Company represents that this proposed
change does not affect the overall cost recovery under the PCA, except that the current mechanism
with the true-up components excludes interest from the carrying charges cumulative prior month
balance of the balancing account and the balancing account modification will include interest from
the carrying charges cumulative prior month balance.
YOU ARE FURTHER NOTIFIED that the Company’s proposed changes also
necessitate modifying its rate Schedule 55 Power Cost Adjustment.
YOU ARE FURTHER NOTIFIED that the Company requests a March 31, 2022,
effective date for the proposed modification to the PCA.
YOU ARE FURTHER NOTIFIED that the Company’s Filing is available for public
inspection during regular business hours at the Commission’s office. These documents are also
available on the Commission’s website 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.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
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 that it will proceed under Modified
1 See Order No. 35054, p.1-2.
2 Staff Comments at 11, Case No. IPC-E-21-10.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35233 3
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 may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons must file written comments by December 22, 2021. Comments must be
filed through the Commission’s website or by e-mail unless computer access is unavailable. To
comment by e-mail, 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 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
secretary@puc.idaho.gov
Street Address for Express Mail:
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
For Idaho Power Company:
Lisa D. Nordstrom
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise, ID 837807
lnordstrom@idahopower.com
dockets@idahopower.com
Matt Larkin
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
mlarkin@idahopower.com
mannis@idahopower.com
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
December 29, 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35233 4
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.
O R D E R
IT IS HEREBY ORDERED that this case be processed by Modified Procedure, Rules
201-204 (IDAPA 31.01.01.201 - .204). Persons must file any written comments by December 22,
2021. The Company must file any reply comments by December 29, 2021.
IT IS FURTHER ORDERED that the 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
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