20220503Notice_of__Application_Order_No_35392.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 1
Office of the Secretary
Service Date
May 3, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
AUTHORITY TO IMPLEMENT POWER
COST ADJUSTMENT (PCA) RATES FOR
ELECTRIC SERVICE FROM JUNE 1, 2022
THROUGH MAY 31, 2023
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CASE NO. IPC-E-22-11

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35392

On April 15, 2022, Idaho Power Company (“Company”) applied for Commission
authorization to implement its Power Cost Adjustment (“PCA”) rates effective June 1, 2022,
through May 31, 2023. The Company requests its Application be processed by Modified Procedure
with an effective date of June 1, 2022. If approved, the Company’s PCA would increase rates for
all customer classes via an overall revenue increase of approximately $103.4 million, or 8.27
percent. Residential rates would increase 6.55 percent if approved as filed. Application at 1; see
also Attachment 2 to the Application.
The Commission now provides this Notice of Application and establishes comment
deadlines for interested persons and the Company’s reply.
THE PCA MECHANISM
The PCA mechanism permits the Company to increase or decrease its PCA rates to
reflect the Company’s annual “power supply costs.” Due to its diverse generation portfolio, the
Company’s actual cost of providing electricity (its power supply cost) varies from year to year
depending on changes in such things as the river streamflow, the amount of purchased power, fuel
costs, the market price of power, and other factors. The annual PCA surcharge or credit is
combined with the Company’s “base rates” to produce a customer’s overall energy rate. The
Company states that neither it nor its shareholders receive any financial return from the PCA –
money collected from the surcharge can be used only to pay power supply expenses. Application
at 2.
The PCA quantifies and tracks annual differences between actual Net Power Supply
Expenses (“NPSE”) and the normalized or “base level” of NPSE recovered in the Company’s base
rates, resulting in a credit or surcharge that is updated annually on, June 1. The PCA mechanism

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 2
uses a 12-month test period of April through March (“PCA Year”) and includes a forecast
component and a Balancing Adjustment (formerly referred to as the “true-up” and the “true-up of
the true-up”). The forecast component represents the difference between the Company’s NPSE
forecast from the March Operating Plan and base level NPSE recovered in the Company’s base
rates. The Balancing Adjustment includes a backward-looking tracking of differences between the
prior PCA Year’s forecast and actual NPSE incurred by the Company, and also tracks the
collection of the prior year’s Balancing Adjustment.
In Order No. 35290, the commission approved a modification to the PCA filing to
replace the “true-up” and “true-up of the true-up” with a single balancing account. The two “true-
up” rates previously included in PCA filings are now combined into one “Balancing Adjustment”
rate. The Balancing Adjustment modification solely impacts the presentment of the PCA but has
no material impact on the rates charged to customers.
Except for Public Utility Regulatory Policies Act of 1978 (“PURPA”) expenses and
demand response incentive payments, the PCA allows the Company to pass through to customers
95 percent of the annual differences in actual NPSE as compared with base level NPSE, whether
positive or negative. With respect to PURPA expenses and demand response incentive payments
and actual annual expenses deviate from base level NPSE, the Company is allowed to pass 100
percent of the difference for recovery or credit through the PCA. The PCA is also the rate
mechanism used by the Company to provide customer benefits resulting from the revenue sharing
mechanism, approved by the Commission in Order No. 34071.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that this year’s PCA Application requests to increase
revenue through Schedule 55 by $103.4 million for the 2022-2023 PCA year. Application at 1.
YOU ARE FURTHER NOTIFIED that the Company system-level forecast for NPSE
is approximately $56.5 million higher in the 2022-2023 PCA year than 2021-2022 PCA year. The
forecast is primarily driven by the expected reduction in hydro generation and increases in natural
gas prices and market energy prices. Id. at 6. The Company also forecasts an increase in coal
generation to serve its load and an increase in surplus sales. Id.
YOU ARE FURTHER NOTIFIED that the Balancing Adjustment at the end of March
2022, including interest, was approximately $38.7 million and was primarily driven by a decrease

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 3
in actual hydro generation and higher than forecast market purchases, but offset partially by surplus
sales.1 Id.
YOU ARE FURTHER NOTIFIED that under Order No. 34071, the Commission
requires the Company to share revenue with its customers if its Idaho jurisdictional year-end return
on equity (“ROE”) is 10.0 percent or greater. The Company asserts its Idaho jurisdictional year-
end ROE in 2021 was 10.02 percent requiring the Company to include $568,771 as the revenue
sharing component of the 2022-2023 PCA. Id. at 7.
YOU ARE FURTHER NOTIFIED that the Company’s uniform PCA rate for the 2022-
2023 PCA Year is comprised of (1) the 1.1926 cents per kilowatt-hour (“kWh”) adjustment for the
2022-2023 forecasted power cost of serving firm loads under the current PCA methodology and 5
percent sharing and (2) 0.2579 cents per kWh for the 2021- 2022 Balancing Adjustment. Id. at 6-
7. Together these two components result in an approximate 1.4505 cents per kWh charge for all
rate classes. Id. at 7.
YOU ARE FURTHER NOTIFIED that on March 15, 2022, the Company filed its
annual FCA in Case No. IPC-E-22-07. Id. The Company’s 2022 FCA filing proposes a $4.9
million decrease in current billed revenue, or a 0.81 percent decrease, for Idaho Residential and
Small General Service customers, effective June 1, 2022 through May 31, 2023. Id.
YOU ARE FURTHER NOTIFIED that on June 3, 2021 the Company applied to
increase rates to accelerate the depreciation schedule of coal-related investments at Bridger and
establish a balancing account to track the incremental costs and benefits associated with the
Company ending operations there. Id. at 8. If approved, the request for cost-recovery from Bridger
would increase total billed revenue by $27.1 million—an average of 2.17 percent for affected
customers. Id.
YOU ARE FURTHER NOTIFIED that if the PCA, FCA, and Bridger cost-recovery
applications are approved as filed, the combined impact is an overall increase in current billed
revenue of $125.6 million, or 10.05 percent. The impact by revenue class is:

1 The PCA Balancing Account for the 2022-2023 PCA year is approximately $38.7 million, which is about $57.0
million higher the 2021-2022 PCA year.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 4
Proposed 2022-2023 Revenue Impact by Class:
Percentage Increase from Current Billed Rates by Proposed Change

Power Cost Adjustment

Residential
Small
General
Service
Large
General
Service

Large Power

Irrigation
6.55% 5.24% 9.28% 11.66% 8.46%

Fixed Cost Adjustment

Residential
Small
General
Service
Large
General
Service

Large Power

Irrigation
(0.81)% (0.82)% N/A N/A N/A

Bridger Cost-Recovery

Residential
Small
General
Service
Large
General
Service

Large Power

Irrigation
2.08% 1.99% 2.24% 2.23% 2.30%

Total Combined Impact

Residential
Small
General
Service
Large
General
Service

Large Power

Irrigation
7.82% 6.41% 11.43% 14.33% 10.75%

See Application, Attachment 2; Case No IPC-E-22-07, Application, Attachment 1; and Case No.
IPC-E-21-17, Supplemental Attachment 1.
YOU ARE FURTHER NOTIFIED that the Company has proposed to implement the
PCA, FCA, and Bridger cost-recovery rates on June 1, 2022.
YOU ARE FURTHER NOTIFIED that the Application and Attachments are 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,” and 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.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 5
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 it will review the case through written
submissions under the Commission’s Rules of Modified Procedure Rules 201-204 of the Idaho
Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201-204. 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 they support or oppose the Application.
Persons who would like a hearing must specifically request a hearing in their written comments.
Persons shall have until May 16, 2022, to file written comments. Comments must be filed
through the Commission’s website or by e-mail unless computer access is unavailable. To
comment electronically, please access the Commission’s website at www.puc.idaho.gov. Click the
“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 PUC:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714

For Idaho Power Company:

Lisa Nordstrom
Matthew Larkin
Timothy Tatum
Jessie Brady
Idaho Power Company
P.O. Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]
[e-mail]
[e-mail]
[e-mail]

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 6
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
May 19, 2022.
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
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 the Company’s Application be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by May 16, 2022. The Company must file any reply comments by May 19,
2022.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued
April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and
will be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should continue to be accomplished electronically when possible. However,
voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash
drive.
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35392 7

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3rd day
of May 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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