20220519Objection.pdf

Attorneys for the Industrial Customers of Idaho Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMTSSION
Peter J. Richardson ISB # 3195
RICHARDSON ADAMS, PLLC
515 N.27th Sfieet
Boise, Idaho 83702
Telephone : [phone]
Fax: [phone]
[e-mail]
TN THE MATTER OF IDAHO POWER
COMPANY'S APPLTCATION FOR
AUTHORITY TO INCREASE ITS RATES
FOR ELECTRIC SERVICE TO RECOVER
COSTS ASSOCTATED WITH THE JIM
BRIDGER PLANT
) cAsE NO. TPC-E-21-17
)
) OBJECTION OF THE INDUSTRIAL
) cusToMERs oF IDAHO POWER TO
) THE USE OF GNR-U-18-01
) DEFERRALS TO OFFSET BRIDGER-
) RELATED-INCREMENTALCOSTS
) AND NOTICE OF BREACH OF
STIPULATED SETTLEMENT
AGREEMENT
At the very last minute, Idaho Power Company ("Idaho Power" or the "Company") has
made a proposal to offset ("mitigate") the incremental annual levelized revenue requirement to
allow it to recover the proposed accelerated depreciation costs associated with its coal related
Jim Bridger Plant investments. According to the Reply Comments in this docket (IPC-E-21-17),
that were filed by the Company yesterday:
ln Case No. GNR-U-18-01, the Commission approved a Settlement Stipulation that
provided for the annual deferral of approximately $7.4 million of non-cash benefits stemming
from the federal Tax Cuts and Jobs Act of 2017 ("TCJA"). These non-cash benefits were
envisioned to accrue to offset other non-cash costs that customers would otherwise have to pay
through rates. ... The Company believes that now is an opportune time to utilize these deferred
OBJECTTON AND NOTICE OF BREACH OF SETTLEMENT AGREEMENT OF THE TCIP
TN CASE NO. IPC-E-21.17 - PAGE I
TCJA benefits to offset the annual incremental levelized revenue requirement proposed in this
case
Idaho Power made this proposal in its Reply Comments at the very last minute and without
consultation of any of the parties to this or the GNR-U-I8-01 proceeding. Doing so without
prior consultation violates the terms of the Stipulation and Settlement Agreement agreed to by
Idaho Power, the Commission Staff(*Staff') and the Industrial Customers of ldatro ("[ClP")
Power in Docket No. GNR-U-I8-01. According to the GNR-U-I8-01 Settlement Stipulation
that was signed by the Company, the ICIP and Commission Staff and which was approved by the
Commission:
Beginning June I ,2019, and each year thereafter, until the Company's next general rate
case proceeding or until otherwise modified by the Commission, and non-cash customer
benefits associated with the Tax Reform are reflected in customer rates, the entire
$7,417,848 will accumulate in a regulatory liability account annually to serve as an offset
to non-specific current or future deferrals deemed prudent and approved for recovery
from customers by the Commission. Parties agree that deferred Tax Reform benefits
used to offset future regulatory deferrals should be applied in a manner consistent with
applicable federal and state income tax law. The oarties also aeree this will bc discussed
further in future recovery cases as appropriate.l
By executing the Settlement Stipulation in GNR-U-18-01, Idaho Power agreed to consult
("discuss") regarding the appropriate use of the seven-million-dollar deferral with the "parties"
to the stipulation; to wit, the ICIP and Staff. Idaho Power has not "discussed" or consulted with
the ICIP (nor the Staffso far as the ICIP is aware) regarding the application of the tax deferral to
offset accelerated Bridger depreciation costs.
Had Idaho Power "discussed" (as it is required to do by the Stipulation) its proposed use
of the defened tax benefits with the ICIP, it would have learned of the ICIP's objection to its use
I Emphasis provided.
OBJECTION AND NOTICE OF BREACH OF SETTLEMENT AGREEMENT OF THE ICIP
TN CASE NO. IPC-E-21-17 _ PAGE 2
to offset investments that have been legitimately questioned as to their prudence for ratemaking
purposes and the recov€ry of which the ICIP has lodged it objcction
WHEREFORE, tho ICIP respectfully requests the Commission dcny the Company's
request to rpcover accelerated depreciation expenses associatcd with the Jim Bridgor Plant and
also deiry the Company's proposed use of the GNR-U-18-01 deferr€d tax benefits as a rate
rEcovery mitigation mechanism.
Datod dty ofMay 2O22.
J.rsB # 3l9s
RICHARDSON ADAI\{S, PLLC
OBJECTION AT.ID NOTICE OF BREACH OF SETTLEMENT AGREEMENT OF THE ICIP
IN CASE NO. IPC-8.21.17 - PAGE 3
I HEREBY CERTIFY that on the lfttr day of May 2022,a true and correct copy of the within
and foregoing OBJECTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER TO
THE USE OF GNR-U.I8{I DEFERRALS TO OFFSET BRIDGER-RELATED.
INCREMENTAL COSTS AND NOTICE OF BREACH OF STIPULATED SETTLEMENT
AGREEMENT of the Industrial Customers of Idaho Power in Case No. IPC-E-21-17 was
served, pursuant to Commission Order No. 34602, by electronic copy only, to:
Jan Noriyuki
Commission Secrctary
Idaho Public Utilities Commission
Jan.noriyuki@ouc. idaho. gov
Lisa Nordstrom, Senior Counsel
Idaho Power Company
lnordstnom@ idahopower. com
[e-mail]
Matt Larkin, Revenue Requirement Senior Manager
Idaho Power Company
mlarki nt@ idahopower.com
City of Boise
Ed Jewell
ej ewel l@cityofboise. org
boi [e-mail]
Sierra Club
Rose Monalun
Ana Boyd
rose. monahan@sierracl ub.org
ana.boyd@sierracl ub.org
Chris Burdin
Deputy Attorney General
Idaho Public Utilities Commission
[e-mail]. gov
Benjamin J. Otto
Idaho Conservation League
botto. idahoconservation. org
Clean Energy Opportunities for Idaho
mi ke@cleanenergfopportuniti es. com
[e-mail]
[e-mail]
Micron Tcchnology, Inc.
[e-mail]
daruesc hho ff@ hol landhart.com
tnelson@hol landhart.com
awj ensen@ hol landhart.com
[e-mail]
sl earganoamari @hol landhart.com
ISB # 3195
OBJECTION AND NOTTCE OF BREACH OF SETTLEMENT AGREEMENT OF THE ICIP
TN CASE NO. IPC.E.2I-17 _ PAGE 4