20220404Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: RILEY NEWTON
DEPUTY ATTORNEY GENERAL

DATE: APRIL 5, 2022

SUBJECT: IDAHO POWER’S APPLICATION FOR AUTHORITY TO IMPLEMENT
FIXED COST ADJUSTMENT RATES FOR ELECTRIC SERVICE FROM
JUNE 1, 2022, THROUGH MAY 31, 2023; CASE NO. IPC-E-22-07.

On March 15, 2022, Idaho Power Company (“Company”) applied to implement new
Fixed Cost Adjustment (“FCA”) rates for electric service from June 1, 2022, through May 31,
2023, and a corresponding revised tariff Schedule 54, Fixed Cost Adjustment. The Company
requests the new rates and the updated Schedule 54 take effect on June 1, 2022 and remain in effect
through May 31, 2023. The Company requests its Application be processed by Modified
Procedure.
THE APPLICATION
The Company indicates the FCA is designed to remove the financial disincentive for it
to invest in demand-side management resources and energy efficiency activities. Application at 2.
The Company states the 2021 FCA balance is $35,203,248, made up of $33,810,563 for the
Residential class and $1,392,684 for the Small General Service class. Id. at 5. The Company
requests a decrease to FCA rates of 0.6153 cents per kilowatt hour (“kWh”) for the Residential
class and 0.7788 cents per kWh for the Small General Service class. Id. This would result in an
annual decrease of 0.81% for the affected customer classes. Id. The Company states that a typical
residential customer would see a decrease of approximately 0.81 cents on its monthly bill if the
Application is approved as filed. Id. at 1.

DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a May 3, 2022, public comment deadline and a May 10, 2022,
Company reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a May 3, 2022, public comment deadline and a May 10, 2022, Company reply
comment deadline?

______________________________
Riley Newton
Deputy Attorney General

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