HomeMy WebLinkAbout20220315Goralski Direct.pdf
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION FOR ) CASE NO. IPC-E-22-07
AUTHORITY TO IMPLEMENT FIXED COST )
ADJUSTMENT (“FCA”) RATES FOR )
ELECTRIC SERVICE FROM June 1, )
2022 THROUGH MAY 31, 2023. )
)
IDAHO POWER COMPANY
DIRECT TESTIMONY
OF
PAWEL P. GORALSKI
GORALSKI, DI 2
Idaho Power Company
Q. Please state your name and business address. 1
A. My name is Pawel (“Paul”) P. Goralski. My 2
business address is 1221 West Idaho Street, Boise, Idaho 3
83702. 4
Q. By whom are you employed and in what capacity? 5
A. I am employed by Idaho Power Company (“Idaho 6
Power” or “Company”) as a Regulatory Consultant in the 7
Regulatory Affairs Department. 8
Q. Please describe your educational background. 9
A. In May of 2007, I received a Bachelor of 10
Business Administration degree in Finance from Boise State 11
University in Boise, Idaho. I have also attended “The 12
Basics: Practical Regulatory Training for the Electric 13
Industry,” an electric utility ratemaking course offered 14
through the New Mexico State University’s Center for Public 15
Utilities, “Electric Utility Fundamentals and Insights,” an 16
electric utility course offered by Western Energy 17
Institute, and “Electric Rates Advanced Course,” an 18
electric utility ratemaking course offered through Edison 19
Electric Institute. 20
Q. Please describe your work experience with 21
Idaho Power. 22
A. In 2017, I was hired as a Regulatory Analyst 23
in the Company’s Regulatory Affairs Department, and in 2020 24
I was promoted to my current position of Regulatory 25
GORALSKI, DI 3
Idaho Power Company
Consultant. My primary responsibilities include supporting 1
the Company’s class cost-of-service activities, developing 2
pricing for special contract customers and other large load 3
pricing analysis, supporting the Company’s annual Fixed 4
Cost Adjustment (“FCA”) calculation and serving as the 5
Company witness. I have also been its witness for the 6
Company’s annual Demand-Side Management (“DSM”) prudency 7
filings. 8
Q. What is the purpose of your testimony? 9
A. The purpose of my testimony is to describe the 10
Company’s request to implement its annual FCA rates in 11
conformance with Idaho Public Utilities Commission 12
(“Commission”) Order No. 32505 (Case No. IPC-E-11-19), 13
which approved the FCA as a permanent rate mechanism for 14
the Residential and Small General Service customers. The 15
Company is seeking authority to collect the 2021 FCA 16
deferral balance of $35,203,248 through its proposed 2022-17
2023 FCA rates. If approved, the 2022 – 2023 FCA rates will 18
result in a decrease to annual billed revenue for the 19
Residential and Small General Service classes of 20
$4,890,772, or 0.81 percent, effective June 1, 2022. 21
Q. How is your testimony organized? 22
A. My testimony will discuss four areas related 23
to the FCA mechanism and Schedule 54, Fixed Cost 24
Adjustment. First, I will discuss the need for the FCA 25
GORALSKI, DI 4
Idaho Power Company
itself. Second, I will inform the Commission as to how 1
Idaho Power met the Commission’s directive in Order No. 2
35056 to initiate a case to review the FCA mechanism and 3
describe the resulting modification approved for the FCA 4
mechanism to begin prospectively with the 2022 FCA deferral 5
calculation. Third, I will provide an overview of the FCA 6
mechanics and how each component is determined, including 7
determination of the 2021 FCA deferral amount. Lastly, I 8
will discuss the calculation of the proposed FCA rates to 9
become effective June 1, 2022, through May 31, 2023. 10
I. BENEFIT OF FIXED COST ADJUSTMENT MECHANISM 11
Q. Why is the FCA mechanism necessary? 12
A. The existing two-part rate design for 13
Residential and Small General Service customers collects a 14
significant portion of the classes’ fixed costs through the 15
volumetric energy rate. The FCA is a true-up mechanism that 16
“decouples,” or separates, billed energy sales from revenue 17
in order to remove the financial disincentive that exists 18
when the Company invests in DSM resources and activities. 19
Under the FCA, rates for Residential Service (Schedules 1, 20
3, 4, 5, and 6) and Small General Service (Schedule 7 and 21
8) customers are adjusted annually to recover or refund the 22
difference between the level of fixed cost recovery 23
authorized by the Commission in the Company’s most recent 24
general rate case and the level of fixed cost recovery that 25
GORALSKI, DI 5
Idaho Power Company
the Company received based upon the actual billed energy 1
sales during the previous calendar year. 2
Q. What level of incremental annual energy 3
efficiency savings was achieved in 2021? 4
A. Idaho Power achieved 143,971 megawatt-hours 5
(“MWh”) of savings system-wide, meeting the energy 6
efficiency target set in the Company’s 2021 Integrated 7
Resource Plan. The energy savings claimed are enough energy 8
to power approximately 12,600 average homes a year in Idaho 9
Power’s service area. These energy savings are more 10
particularly described in the 2021 DSM Annual Report filed 11
in Case No. IPC-E-22-08. 12
Q. Do claimed incremental DSM savings encompass 13
the entirety of energy savings customers experience from 14
Idaho Power’s DSM efforts? 15
A. No. First, it is important to recognize that 16
savings claimed in any given year continue to reoccur in 17
subsequent years through the life of the DSM measure. Thus, 18
the full impact of the Company’s DSM efforts is better 19
represented by the cumulative impact of historical claimed 20
savings whose measure life extends through 2021. A measure 21
installed in 2015 with eight-year measure life continues to 22
provide energy savings in 2021, though those savings are 23
not included in the 2021 claimed savings reported in the 24
Company’s 2021 DSM Annual Report. 25
GORALSKI, DI 6
Idaho Power Company
Second, the Company promotes significant customer 1
educational, outreach and awareness activities, promotion 2
of codes and standards, and marketing efforts that are not 3
quantified or claimed as part of Idaho Power’s annual DSM 4
savings, but are likely to result in energy savings 5
experienced by the customer and accruing to Idaho Power’s 6
electric system over time. 7
Q. Has the FCA mechanism been effective at 8
removing the financial disincentive that would otherwise be 9
associated with Idaho Power pursuing all cost-effective 10
energy efficiency? 11
A. Yes. The FCA has been and continues to be an 12
effective mechanism that has positioned the Company to 13
continue to support energy efficiency resources while 14
maintaining a reasonable opportunity to recover its fixed 15
cost of serving residential and small commercial customers. 16
II. COMMISSION-APPROVED FCA MODIFICATION 17
Q. Did the Company comply with the Commission 18
directive in Order No. 35056 to initiate a case to review 19
the FCA mechanism and propose any modification determined 20
appropriate ahead of this FCA filing? 21
A. Yes. In November 2021, after working with 22
Commission Staff over the summer and fall of 2021 to 23
address concerns with the FCA mechanism, the Company filed 24
Case No. IPC-E-21-39 to request modification of the FCA. 25
GORALSKI, DI 7
Idaho Power Company
The Commission approved the Company’s Application December 1
28, 2021 to modify the FCA, on a prospective basis, 2
effective January 1, 2022 in Order No. 35273. 3
Q. Please describe the FCA modification. 4
A. Beginning with the 2022 FCA deferral, 5
customers added to Idaho Power’s system starting January 1, 6
2022 will be considered “new” and will have separate, and 7
reduced fixed cost tracking, while the 2021 FCA customer 8
count will constitute the level of “existing” customers 9
whose fixed costs are tracked with existing FCA components. 10
Q. What is the difference in fixed cost tracking 11
between “new” and “existing” customers, and what is the 12
basis for those costs? 13
A. For both “new” and “existing” customers, the 14
basis for fixed cost tracking is the same, the Company’s 15
most recent general rate case. “Existing” customer Fixed 16
Cost per Customer rate (“FCC”) and Fixed Cost per Energy 17
rate (“FCE”) remain unchanged and represent fixed costs 18
associated with the Company’s generation, transmission, and 19
distribution related system components. For “new” 20
customers, only the distribution-related system cost 21
components will be tracked under the FCA. Table 1 lists the 22
FCA cost components for “new” and “existing” customers that 23
will be used for fixed cost tracking starting with the 2022 24
FCA deferral. 25
GORALSKI, DI 8
Idaho Power Company
Table 1. FCA Rates – Existing and New Customers 1
Residential Small General Service
FCC (Existing Customer) $650.63 $360.57
FCC-Dist. (New Customer) $317.72 $256.29
FCE (Existing Customer) $0.051602 $0.068633
FCE-Dist. (New Customer) $0.025199 $0.048783
2
Q. Does the FCA modification impact the 2021 FCA 3
deferral calculation? 4
A. No. While Idaho Power has modified the monthly 5
accrual of the 2022 FCA deferral balance to bifurcate cost 6
tracking between “new” and “existing” customers. The 2022 7
FCA deferral balance will not be proposed to be collected 8
through FCA rates until March 2023. 9
III. FCA DETERMINATION FOR CALENDAR YEAR 2021 10
Q. Please describe the FCA mechanism components 11
and calculation. 12
A. For both the Residential and Small General 13
Service classes, the FCA mechanism is the same. The formula 14
used to determine the FCA amount is: 15
FCA = (CUST X FCC) – (ACTUAL X FCE) 16
Where: 17
FCA = Fixed Cost Adjustment; 18
CUST = Average Number of Customers, by class; 19
FCC = Fixed Cost per Customer rate, by class; 20
ACTUAL = Actual Billed kilowatt-hours (“kWh”) 21
Energy Sales, by class; and 22
GORALSKI, DI 9
Idaho Power Company
FCE = Fixed Cost per Energy rate, by class. 1
The FCA amount is the difference between the Company’s 2
level of “authorized fixed cost recovery” (CUST X FCC) and 3
the level of “actual fixed cost recovery” (ACTUAL X FCE). 4
Q. Can the FCA deferral balance be either 5
positive or negative? 6
A. Yes. A positive FCA indicates the Company's 7
authorized level of fixed cost recovery is greater than the 8
level of fixed costs recovered through the energy rate, 9
which occurs when energy use per customer has decreased 10
from when the FCA components were established. In a similar 11
fashion, a negative FCA indicates the Company's authorized 12
fixed cost recovery amount is less than the fixed costs 13
determined to have been recovered through the energy rate 14
and results in a refund to customers. 15
Q. Did the FCC and FCE rates used to determine 16
the 2021 FCA deferral balance change from prior years? 17
A. No. All customers included in the 2021 FCA 18
calculation use FCC and FCE rates established in the 19
Company’s most recent general rate case, Case No. IPC-E-11-20
08, and can be found in the Company’s tariff under Schedule 21
54, Fixed Cost Adjustment. 22
Q. How is the authorized level of fixed cost 23
recovery derived? 24
GORALSKI, DI 10
Idaho Power Company
A. The authorized level of fixed cost recovery is 1
the product of the FCC and the average number of customers, 2
by class. The Company uses a prorated customer count based 3
on the number of active utility service agreements at the 4
end of each month. This approach applies the same 5
methodology that was used to determine customer counts in 6
the Company’s most recent general rate case. The annual 7
average customer count is derived by calculating the 8
average of the 12 monthly prorated customer counts. 9
Q. How is the actual level of fixed cost recovery 10
determined? 11
A. In compliance with Order No. 33295, the actual 12
level of fixed cost recovery is the product of the FCE and 13
the actual billed energy sales for the calendar year, 14
measured in kWh. 15
Q. Does the Company compute a monthly FCA 16
deferral balance? 17
A. Yes. Since 2009, the Company has reported the 18
estimated monthly FCA deferral balance in the monthly FCA 19
Report provided to the Commission. Exhibit No. 1 is a copy 20
of the monthly FCA Report for calendar year 2021 with year-21
end information. 22
Although the FCA is an annual mechanism that is 23
ultimately calculated and determined using customer counts 24
and billed energy sales data for the entire calendar year, 25
GORALSKI, DI 11
Idaho Power Company
a monthly FCA deferral balance is estimated and recorded in 1
the Company’s accounting records to maintain compliance 2
with Generally Accepted Accounting Principles. This 3
estimated monthly FCA deferral balance is provided to the 4
Commission in the monthly FCA Report. 5
Q. Is it possible for the reported monthly FCA 6
deferral balance estimate to differ from the annual amount? 7
A. Yes. Because the monthly FCA deferral balance 8
is computed using monthly customer counts while the annual 9
FCA deferral balance is computed using the average customer 10
count for the year, the sum of the monthly calculations may 11
differ from the annual calculation. 12
Q. How is the reported monthly estimate adjusted 13
to align with the authorized annual amount? 14
A. At year-end, once the annual FCA amount is 15
determined, an adjustment is made to the sum of the 16
previously recorded 12 monthly estimates to align with the 17
annual FCA deferral balance. Because the annual customer 18
count is the average of the 12 monthly customer counts, it 19
is not available until year-end. 20
Q. What adjustment was made to the 2021 monthly 21
estimates to translate to the Company’s single year-end 22
2021 FCA deferral balance? 23
A. To align with the annual FCA amount to be 24
recorded in the Company’s 2021 financial records, an upward 25
GORALSKI, DI 12
Idaho Power Company
adjustment of $191,247 was made for the Residential 1
customer classes, reflected on line 6, column O of Exhibit 2
No. 1. An upward adjustment of $3,152 was made for the 3
Small General Service customer classes, reflected on line 4
20, column O of Exhibit No. 1. The total upward adjustment 5
for both customer classes is $194,399. 6
Q. What is the total amount of the FCA, not 7
including interest? 8
A. As shown in Exhibit No. 2, the total amount of 9
the FCA for the Residential and Small General Service 10
customer classes, not including interest, is $34,896,287. 11
The calculation of the FCA uses the average annual customer 12
count and the annual billed sales amount, which are 13
included in Exhibit No. 3. The calculated FCA deferral 14
balance for the Residential customer classes, not including 15
interest, is $33,515,543. An amount of $33,515,544 is found 16
in Exhibit No. 1, line 6, column P. The $1 difference 17
between Exhibit No. 1 and Exhibit No. 2 is due to rounding. 18
The calculated FCA deferral balance for the Small 19
General Service customer classes, not including interest, 20
is $1,380,744. An amount of $1,380,745 is found in Exhibit 21
No. 1, line 20, column P, with the difference between 22
Exhibit No. 1 and Exhibit No. 2 also due to rounding. 23
GORALSKI, DI 13
Idaho Power Company
Q. What is the total amount of the 2021 FCA, 1
including interest, the Company is requesting to implement 2
in rates on June 1, 2022? 3
A. The total amount of the 2021 FCA the Company 4
is requesting to begin recovering in rates on June 1, 2022, 5
is $35,203,247.66, reflected on line 32, column W, of 6
Exhibit No. 4. The FCA for the Residential classes is 7
$33,810,563.43 reflected on line 15, column W, of Exhibit 8
No. 4. The FCA for the Small General Service classes is 9
$1,392,684.23 reflected on line 29, column W, of Exhibit 10
No. 4. Exhibit No. 4 and Exhibit No. 1 both contain the 11
same information as the FCA Report sent to the Commission 12
each month; however, Exhibit No. 4 calculates interest from 13
January 2021 through May 2022 while Exhibit No. 1 shows 14
that information only for the 2021 calendar year. 15
Q. What is the significance of these numbers with 16
respect to the Company’s recovery of its fixed costs? 17
A. Because the Residential and Small General 18
Service FCAs are positive numbers, the average use per 19
customer based on actual billed sales for the year were 20
lower than the level established in the Company’s most 21
recent general rate case for both Residential and Small 22
General Service customer classes. In accordance with the 23
approved mechanism, the Residential and Small General 24
Service classes will receive a rate adjustment to allow for 25
GORALSKI, DI 14
Idaho Power Company
recovery of the fixed costs that were not recovered through 1
actual billed energy charges during the year. 2
IV. CALCULATION OF THE 2022-2023 FCA RATE 3
Q. Please describe the calculation of the FCA 4
rates the Company is proposing to go into effect on June 1, 5
2022. 6
A. The FCA rates the Company proposes to go into 7
effect on June 1, 2022, were calculated by taking the FCA 8
deferral balances for each of the customer classes 9
described above and dividing by the respective class energy 10
sales forecast for the June 1, 2022, through May 31, 2023, 11
time frame. The forecasted June 1 through May 31 time frame 12
is the same period that has been used historically and is 13
also used for the Power Cost Adjustment mechanism. 14
Q. What has the Company determined the forecast 15
energy sales to be for both the Residential and Small 16
General Service classes? 17
A. The Company’s forecasted energy sales are 18
5,547,052,024 kWh for the Residential classes and 19
137,586,160 kWh for the Small General Service classes. The 20
forecasted energy sales are found in Exhibit No. 5. 21
Q. What are the corresponding FCA rates for the 22
Residential and Small General Service classes based on a 23
combined and equal FCA rate change, as defined in the 24
approved mechanism? 25
GORALSKI, DI 15
Idaho Power Company
A. To recover the authorized level of fixed 1
costs, the FCA rate for the Residential classes would be 2
0.6153 cents per kWh and the corresponding rate for the 3
Small General Service classes would be 0.7788 cents per 4
kWh. The calculation of these rates is also found in 5
Exhibit No. 5. 6
On page 9 of Order No. 32505, the Commission ordered 7
that the FCA deferral balance will continue to be recovered 8
or refunded equally between the Residential and Small 9
General Service customer classes. Because the Residential 10
and Small General Service classes reduced their energy 11
consumption per customer such that the Company under-12
collected its authorized level of fixed costs as 13
established in Case No. IPC-E-11-08, each class requires a 14
rate surcharge. 15
Q. What is the difference between the FCA 16
deferral balance currently in amortization and the proposed 17
FCA deferral balance to be collected through the FCA rate? 18
A. In this filing, the Company is proposing to 19
collect rates based on an FCA deferral balance of 20
$35,203,247.66 which is $3,112,251 less than the current 21
FCA deferral balance of $38,315,499. The current deferral 22
balance was approved in Order No. 35056, issued in Case No. 23
IPC-E-21-03, with rates based on that balance effective for 24
the period June 1, 2021, through May 31, 2022. 25
GORALSKI, DI 16
Idaho Power Company
Q. Considering the current FCA rates in effect, 1
what is the percentage change in billed revenue as measured 2
from total billed amounts currently recovered from 3
Residential and Small General Service classes? 4
A. Because annual sales for June 2022 through May 5
31, 2023 are forecast to be higher than the same period in 6
the prior year, the 2022 – 2023 FCA rates represent an 7
annual decrease of $4,890,772, or 0.81 percent, from 8
current billed revenue for the affected customer classes. 9
The percentage change in billed revenue is found in Exhibit 10
No. 6. This proposed decrease results in an approximate 11
$0.81 decrease to the monthly bill of a typical residential 12
customer using 950 kWh per month. 13
Q. How will the Company incorporate the FCA 14
surcharges for the Residential and Small General Service 15
classes on customers’ bills? 16
A. The Company proposes to continue including the 17
FCA with the Fixed Cost Adjustment line item on Residential 18
and Small General Service customers’ bills. 19
V. CONCLUSION 20
Q. Please summarize the Company’s request in this 21
filing. 22
A. Idaho Power requests the Commission authorize 23
the Company to implement Fixed Cost Adjustment rates for 24
electric service from June 1, 2022, through May 31, 2023 in 25
GORALSKI, DI 17
Idaho Power Company
the amount of 0.6153 cents per kWh for the Residential 1
classes, and 0.7788 cents per kWh for the Small General 2
Service classes. If approved, the 2022 – 2023 FCA rates 3
will result in a decrease to annual billed revenue for the 4
Residential and Small General Service classes of 5
$4,890,772, or 0.81 percent, effective June 1, 2022. 6
Q. Does this complete your testimony? 7
A. Yes, it does. 8
9
10
GORALSKI, DI 18
Idaho Power Company
DECLARATION OF PAWEL P. GORALSKI 1
I, Pawel P. Goralski, declare under penalty of 2
perjury under the laws of the state of Idaho: 3
1. My name is Pawel P. Goralski. I am employed 4
by Idaho Power Company as a Regulatory Consultant in the 5
Regulatory Affairs Department and am competent to be a 6
witness in this proceeding. 7
2. On behalf of Idaho Power, I present this 8
pre-filed direct testimony and exhibits in this matter. 9
3. To the best of my knowledge, my pre-filed 10
direct testimony and exhibits are true and accurate. 11
I hereby declare that the above statement is true to 12
the best of my knowledge and belief, and that I understand 13
it is made for use as evidence before the Idaho Public 14
Utilities Commission and is subject to penalty for perjury. 15
SIGNED this 15th day of March 2022, at Boise, Idaho. 16
17
Signed: _________________________ 18
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-22-07
IDAHO POWER COMPANY
GORALSKI, DI
TESTIMONY
EXHIBIT NO. 1
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A B C D E F G H I J K L M N O P Q
Fixed Cost Adjustment Monthly Report January February March April May June July August September October November December Adjustment Current Year Total
for the year ended December 31, 2021
Residential FCA:
Beginning Balance $0.00 6,133,738.00 11,232,989.00 14,666,211.00 18,228,826.00 20,292,126.00 21,528,799.00 15,119,770.00 14,252,279.00 17,579,561.00 21,337,296.00 26,215,663.00 33,324,297.00
Amount Deferred $6,133,738.00 5,099,251.00 3,433,222.00 3,562,615.00 2,063,300.00 1,236,673.00 (6,409,029.00) (867,491.00) 3,327,282.00 3,757,735.00 4,878,367.00 7,108,634.00 191,247.00 33,515,544.00
Ending Balance $ 6,133,738.00 11,232,989.00 14,666,211.00 18,228,826.00 20,292,126.00 21,528,799.00 15,119,770.00 14,252,279.00 17,579,561.00 21,337,296.00 26,215,663.00 33,324,297.00 33,515,544.00 33,515,544.00
Interest:
Accrual thru Prior Month $- -5,109.40 14,466.48 26,683.43 41,868.04 58,771.38 76,704.87 89,299.64 101,171.79 115,815.56 133,589.53 -
Monthly Interest Rate (Annual 1%)0.0833%0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833%
Monthly Interest Inc/(Exp)$- 5,109.40 9,357.08 12,216.95 15,184.61 16,903.34 17,933.49 12,594.77 11,872.15 14,643.77 17,773.97 21,837.65 - 155,427.18
Interest Accrued to date $- 5,109.40 14,466.48 26,683.43 41,868.04 58,771.38 76,704.87 89,299.64 101,171.79 115,815.56 133,589.53 155,427.18 - 155,427.18
Total Residential FCA:6,133,738.00 11,238,098.40 14,680,677.48 18,255,509.43 20,333,994.04 21,587,570.38 15,196,474.87 14,341,578.64 17,680,732.79 21,453,111.56 26,349,252.53 33,479,724.18 33,515,544.00 33,670,971.18
Small General Service FCA:
Beginning Balance $- 175,035.00 296,435.00 428,000.00 564,987.00 641,867.00 762,117.00 720,591.00 754,547.00 884,220.00 1,037,999.00 1,163,298.00 1,377,593.00
Amount Deferred $175,035.00 121,400.00 131,565.00 136,987.00 76,880.00 120,250.00 (41,526.00) 33,956.00 129,673.00 153,779.00 125,299.00 214,295.00 3,152.00 1,380,745.00
Ending Balance $175,035.00 296,435.00 428,000.00 564,987.00 641,867.00 762,117.00 720,591.00 754,547.00 884,220.00 1,037,999.00 1,163,298.00 1,377,593.00 1,380,745.00 1,380,745.00
Interest:
Accrual thru Prior Month $- -145.80 392.73 749.25 1,219.88 1,754.56 2,389.40 2,989.65 3,618.19 4,354.75 5,219.40 -
Monthly Interest Rate (Annual 1%)0.0833%0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833%
Monthly Interest Inc/(Exp)$- 145.80 246.93 356.52 470.63 534.68 634.84 600.25 628.54 736.56 864.65 969.03 - 6,188.43
Interest Accrued to date $- 145.80 392.73 749.25 1,219.88 1,754.56 2,389.40 2,989.65 3,618.19 4,354.75 5,219.40 6,188.43 - 6,188.43
Total Small General Service FCA:175,035.00 296,580.80 428,392.73 565,736.25 643,086.88 763,871.56 722,980.40 757,536.65 887,838.19 1,042,353.75 1,168,517.40 1,383,781.43 1,380,745.00 1,386,933.43
Total Fixed Cost Adjustmen $ 6,308,773.00 11,534,679.20 15,109,070.21 18,821,245.68 20,977,080.92 22,351,441.94 15,919,455.27 15,099,115.29 18,568,570.98 22,495,465.31 27,517,769.93 34,863,505.61 34,896,289.00 35,057,904.61
Entries:
599 X00001 999 182302 (254302) 6,308,773.00 5,225,906.20 3,574,391.01 3,712,175.47 2,155,835.24 1,374,361.02 (6,431,986.67) (820,339.98) 3,469,455.69 3,926,894.33 5,022,304.62 7,345,735.68 194,399.00 35,057,904.61
599 X00001 999 440301 (6,133,738.00) (5,099,251.00) (3,433,222.00) (3,562,615.00) (2,063,300.00) (1,236,673.00) 6,409,029.00 867,491.00 (3,327,282.00) (3,757,735.00) (4,878,367.00) (7,108,634.00) (191,247.00) (33,515,544.00)
599 X00001 999 442301 (175,035.00) (121,400.00) (131,565.00) (136,987.00) (76,880.00) (120,250.00) 41,526.00 (33,956.00) (129,673.00) (153,779.00) (125,299.00) (214,295.00) (3,152.00) (1,380,745.00)
599 X00001 999 419000 (431013)- (5,255.20) (9,604.01) (12,573.47) (15,655.24) (17,438.02) (18,568.33) (13,195.02) (12,500.69) (15,380.33) (18,638.62) (22,806.68) - (161,615.61)
Exhibit No. 1 Case No. IPC-E-22-07 P. Goralski, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-22-07
IDAHO POWER COMPANY
GORALSKI, DI
TESTIMONY
EXHIBIT NO. 2
2021 Annual Fixed Cost Adjustment Deferral Calculation
Residential
Customer Count 485,210.88
FCC $650.63
Authorized Recovery Amount $315,692,755
Billed Sales in kWh 5,468,338,664
FCE $0.051602
Actual Recovery Amount $282,177,212
Residential FCA $33,515,543
Small General Service
Customer Count 29,604.99
FCC $360.57
Authorized Recovery Amount $10,674,670
Billed Sales in kWh 135,414,834
FCE $0.068633
Actual Recovery Amount $9,293,926
Small General Service FCA $1,380,744
Total FCA $34,896,287
Exhibit No. 2 Case No. IPC-E-22-07 P. Goralski, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-22-07
IDAHO POWER COMPANY
GORALSKI, DI
TESTIMONY
EXHIBIT NO. 3
Month Customer Count Billed Sales
January 478,886.28 578,743,798
February 479,236.60 533,093,821
March 481,003.94 480,789,323
April 482,475.78 405,792,734
May 483,534.73 350,569,992
June 485,063.11 368,821,759
July 485,678.52 585,499,843
August 486,930.96 564,912,396
September 488,110.15 424,225,167
October 489,282.87 335,158,387
November 490,455.16 365,647,242
December 491,872.45 475,084,202
485,210.88 5,468,338,664
Month Customer Count Billed Sales
January 29,445.29 13,378,619
February 29,246.06 12,837,192
March 29,571.51 11,430,810
April 29,343.86 10,318,092
May 29,427.29 9,487,757
June 29,937.95 9,723,192
July 29,602.78 13,403,632
August 29,740.36 13,112,969
September 29,646.26 11,168,025
October 29,719.11 9,468,355
November 29,746.35 9,733,983
December 29,833.02 11,352,208
29,604.99 135,414,834
2021 Monthly Customer Count and Billed Sales
Annual Average
Customer Count
Total Annual
Billed Sales
Annual Average
Customer Count
Total Annual
Billed Sales
Residential Customer Classes
Small General Service Customer Classes
Exhibit No. 3 Case No. IPC-E-22-07 P. Goralski, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-22-07
IDAHO POWER COMPANY
GORALSKI, DI
TESTIMONY
EXHIBIT NO. 4
1
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A B C D E F G H I J K L M N O P
Fixed Cost Adjustment Monthly Report January February March April May June July August September October November December Adjustment Current Year Total
for the year ended December 31, 2021
Residential FCA:
Beginning Balance $0.00 6,133,738.00 11,232,989.00 14,666,211.00 18,228,826.00 20,292,126.00 21,528,799.00 15,119,770.00 14,252,279.00 17,579,561.00 21,337,296.00 26,215,663.00 33,324,297.00
Amount Deferred $6,133,738.00 5,099,251.00 3,433,222.00 3,562,615.00 2,063,300.00 1,236,673.00 (6,409,029.00) (867,491.00) 3,327,282.00 3,757,735.00 4,878,367.00 7,108,634.00 191,247.00 33,515,544.00
Ending Balance $ 6,133,738.00 11,232,989.00 14,666,211.00 18,228,826.00 20,292,126.00 21,528,799.00 15,119,770.00 14,252,279.00 17,579,561.00 21,337,296.00 26,215,663.00 33,324,297.00 33,515,544.00 33,515,544.00
Interest:
Accrual thru Prior Month $- -5,109.40 14,466.48 26,683.43 41,868.04 58,771.38 76,704.87 89,299.64 101,171.79 115,815.56 133,589.53 -
Monthly Interest Rate (Annual 1%)0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833%
Monthly Interest Inc/(Exp)$- 5,109.40 9,357.08 12,216.95 15,184.61 16,903.34 17,933.49 12,594.77 11,872.15 14,643.77 17,773.97 21,837.65 - 155,427.18
Interest Accrued to date $- 5,109.40 14,466.48 26,683.43 41,868.04 58,771.38 76,704.87 89,299.64 101,171.79 115,815.56 133,589.53 155,427.18 - 155,427.18
Total Residential FCA:6,133,738.00 11,238,098.40 14,680,677.48 18,255,509.43 20,333,994.04 21,587,570.38 15,196,474.87 14,341,578.64 17,680,732.79 21,453,111.56 26,349,252.53 33,479,724.18 33,515,544.00 33,670,971.18
Small General Service FCA:
Beginning Balance $- 175,035.00 296,435.00 428,000.00 564,987.00 641,867.00 762,117.00 720,591.00 754,547.00 884,220.00 1,037,999.00 1,163,298.00 1,377,593.00
Amount Deferred $175,035.00 121,400.00 131,565.00 136,987.00 76,880.00 120,250.00 (41,526.00) 33,956.00 129,673.00 153,779.00 125,299.00 214,295.00 3,152.00 1,380,745.00
Ending Balance $175,035.00 296,435.00 428,000.00 564,987.00 641,867.00 762,117.00 720,591.00 754,547.00 884,220.00 1,037,999.00 1,163,298.00 1,377,593.00 1,380,745.00 1,380,745.00
Interest:
Accrual thru Prior Month $- -145.80 392.73 749.25 1,219.88 1,754.56 2,389.40 2,989.65 3,618.19 4,354.75 5,219.40 -
Monthly Interest Rate (Annual 1%)0.0833%0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833% 0.0833%
Monthly Interest Inc/(Exp)$- 145.80 246.93 356.52 470.63 534.68 634.84 600.25 628.54 736.56 864.65 969.03 - 6,188.43
Interest Accrued to date $- 145.80 392.73 749.25 1,219.88 1,754.56 2,389.40 2,989.65 3,618.19 4,354.75 5,219.40 6,188.43 - 6,188.43
Total Small General Service FCA:175,035.00 296,580.80 428,392.73 565,736.25 643,086.88 763,871.56 722,980.40 757,536.65 887,838.19 1,042,353.75 1,168,517.40 1,383,781.43 1,380,745.00 1,386,933.43
Total Fixed Cost Adjustmen $ 6,308,773.00 11,534,679.20 15,109,070.21 18,821,245.68 20,977,080.92 22,351,441.94 15,919,455.27 15,099,115.29 18,568,570.98 22,495,465.31 27,517,769.93 34,863,505.61 34,896,289.00 35,057,904.61
Entries:
599 X00001 999 182302 (254302) 6,308,773.00 5,225,906.20 3,574,391.01 3,712,175.47 2,155,835.24 1,374,361.02 (6,431,986.67) (820,339.98) 3,469,455.69 3,926,894.33 5,022,304.62 7,345,735.68 194,399.00 35,057,904.61
599 X00001 999 440301 (6,133,738.00) (5,099,251.00) (3,433,222.00) (3,562,615.00) (2,063,300.00) (1,236,673.00) 6,409,029.00 867,491.00 (3,327,282.00) (3,757,735.00) (4,878,367.00) (7,108,634.00) (191,247.00) (33,515,544.00)
599 X00001 999 442301 (175,035.00) (121,400.00) (131,565.00) (136,987.00) (76,880.00) (120,250.00) 41,526.00 (33,956.00) (129,673.00) (153,779.00) (125,299.00) (214,295.00) (3,152.00) (1,380,745.00)
599 X00001 999 419000 (431013)- (5,255.20) (9,604.01) (12,573.47) (15,655.24) (17,438.02) (18,568.33) (13,195.02) (12,500.69) (15,380.33) (18,638.62) (22,806.68) - (161,615.61)
Exhibit No. 4 Case No. IPC-E-22-07 P. Goralski, IPC
Page 1 of 2
1
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A B
Fixed Cost Adjustment Monthly Report
for the year ended December 31, 2021
Residential FCA:
Beginning Balance $
Amount Deferred $
Ending Balance $
Interest:
Accrual thru Prior Month $
Monthly Interest Rate (Annual 1%)
Monthly Interest Inc/(Exp)$
Interest Accrued to date $
Total Residential FCA:
Small General Service FCA:
Beginning Balance $
Amount Deferred $
Ending Balance $
Interest:
Accrual thru Prior Month $
Monthly Interest Rate (Annual 1%)
Monthly Interest Inc/(Exp)$
Interest Accrued to date $
Total Small General Service FCA:
Total Fixed Cost Adjustmen $
Entries:
599 X00001 999 182302 (254302)
599 X00001 999 440301
599 X00001 999 442301
599 X00001 999 419000 (431013)
Q R S T U V W
January February March April May Grand Total
33,515,544.00 33,515,544.00 33,515,544.00 33,515,544.00 33,515,544.00
-----33,515,544.00
33,515,544.00 33,515,544.00 33,515,544.00 33,515,544.00 33,515,544.00
155,427.18 183,345.63 211,264.08 239,182.53 267,100.98
0.0833% 0.0833% 0.0833% 0.0833% 0.0833%
27,918.45 27,918.45 27,918.45 27,918.45 27,918.45 295,019.43
183,345.63 211,264.08 239,182.53 267,100.98 295,019.43
27,918.45 27,918.45 27,918.45 27,918.45 27,918.45 33,810,563.43
1,380,745.00 1,380,745.00 1,380,745.00 1,380,745.00 1,380,745.00
-----1,380,745.00
1,380,745.00 1,380,745.00 1,380,745.00 1,380,745.00 1,380,745.00
6,188.43 7,338.59 8,488.75 9,638.91 10,789.07
0.0833% 0.0833% 0.0833% 0.0833% 0.0833%
1,150.16 1,150.16 1,150.16 1,150.16 1,150.16 11,939.23
7,338.59 8,488.75 9,638.91 10,789.07 11,939.23
1,150.16 1,150.16 1,150.16 1,150.16 1,150.16 1,392,684.23
29,068.61 29,068.61 29,068.61 29,068.61 29,068.61 35,203,247.66
29,068.61 29,068.61 29,068.61 29,068.61 29,068.61
-----
-----
(29,068.61) (29,068.61) (29,068.61) (29,068.61) (29,068.61)
Exhibit No. 4 Case No. IPC-E-22-07 P. Goralski, IPC
Page 2 of 2
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-22-07
IDAHO POWER COMPANY
GORALSKI, DI
TESTIMONY
EXHIBIT NO. 5
FCA Rate Determination
Target Normalized Base FCA Dollars Percent Diff
Combined Option ‐ Different Rates FCA Dollars Energy Revenue Collected Over/Under from Base Rate
Residential $33,810,563.43 5,547,052,024 $502,539,982 $34,131,665.09 $321,101.66 6.79%0.006153
Small General Service $1,392,684.23 137,586,160 $15,777,522 $1,071,582.57 ($321,101.66)6.79%0.007788
Combined $35,203,247.66 5,684,638,184 $518,317,504 $35,203,247.66 $0.00 6.79%
Existing FCA Balance per Order No. 35056 $38,315,499
Proposed 2021 FCA Deferral Balance $35,203,248
FCA Annual Increase (Decrease)($3,112,251)
Forecasted Base Rate Revenue $518,317,504
‐0.60%Annual FCA Difference Percentage of Base Rate Revenue
#
Exhibit No. 5 Case No. IPC-E-22-07 P. Goralski, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-22-07
IDAHO POWER COMPANY
GORALSKI, DI
TESTIMONY
EXHIBIT NO. 6
Total Percent
Rate Average Normalized Current Adjustments Proposed Change
Line Sch. Number of Energy Billed Mills to Billed Total Billed Mills Billed to Billed
No Tariff Description No.Customers (kWh) Revenue Per kWh Revenue Revenue Per kWh Revenue
Uniform Tariff Rates:
1 Residential Service 1 490,293 5,458,972,074 $573,825,900 105.12 ($4,667,421) $569,158,479 104.26 (0.81)%
2 Master Metered Mobile Home Park 3 21 4,521,955 $454,030 100.41 ($3,866) $450,164 99.55 (0.85)%
3 Residential Service Energy Watch 4 0 0 $0 0.00 $0 $0 0.00 0.00%
4 Residential Service Time-of-Day 5 988 17,662,331 $1,788,337 101.25 ($15,101) $1,773,236 100.40 (0.84)%
5 Residential Service On-Site Generation 6 12,024 65,895,664 $7,342,186 111.42 ($56,341) $7,285,846 110.57 (0.77)%
503,326 5,547,052,024 $583,410,453 105.17 ($4,742,729) $578,667,724 104.32 (0.81)%
6 Small General Service 7 30,348 137,395,735 $18,011,465 131.09 ($147,838) $17,863,627 130.02 (0.82)%
7 Small General Service On-Site Generation 8 80 190,425 $27,285 143.29 ($205) $27,080 142.21 (0.75)%
30,428 137,586,160 $18,038,750 131.11 ($148,043) $17,890,707 130.03 (0.82)%
8 Total Residential and Small General Service 533,75 5,684,638,18 $601,449,204 105.80 ($4,890,772) $596,558,431 104.94 (0.81)%
(1) June 01, 2022 ‐ May 31, 2023 Forecasted Test Year (Spring 2022 Forecast
Summary of Revenue Impact
Current Billed Revenue to Proposed Billed Revenue
Idaho Power Company
Calculation of Revenue Impact
State of Idaho
Fixed Cost Adjustment
Filed March 15, 2022
#
Exhibit No. 6 Case No. IPC-E-22-07 P. Goralski, IPC
Page 1 of 1