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HomeMy WebLinkAbout20230814Public Workshop.pdfWorkshop Participation Online: To open chat in WebEx, please select the icon. Type questions and comments in the chat box; Please use the “Everyone” option when using chat to ensure your message will be seen. To speak, click on the hand in the lower right corner. On The Phone: *3 is the command to raise and lower your hand; When your line has been un-muted, you will hear an announcement indicating that. This PowerPoint is available on the commission’s homepage at puc.idaho.gov. 1 2 3 Introduction Purpose of Public Workshop Informational Session To Learn About The Case •Present Idaho Power’s Application •Explain IPUC Staff’s Role In The Case •Provide Customers An Opportunity To Meet IPUC Staff Members •Ask Questions and Learn How To Submit Written Public Comments This Public Workshop is not part of the official case record. 4 •Established In 1913. Idaho Code Sections 61, 62, and 63 •The Commission Regulates Idaho’s Investor-Owned Utilities, Ensuring Adequate Service and Reasonable Rates •The Commission Is Made Up Of Three Commissioners Appointed By The Governor and Confirmed By The Senate. The Commissioners Make The Decisions In Each Case. •Commission Staff Is Made Up of Auditors, Consumer Compliance Investigators, Engineers, Technical Analysts, and Admin •Commission Staff Is Conducting This Workshop, Is One Of The Parties In The Rate Case, and Will Provide Testimony To The Commissioners What is the Idaho Public Utilities Commission? 5 State Law Requires That The Commission Consider The Evidence That Is On The Record •Idaho Power Company’s Application •Testimony From Commission Staff and Other Parties To The Case •Customers’ Written Comments or Oral Testimony at Public Customer Hearings Allow Utility Companies to: •Recover Prudently Incurred Expenses Necessary To Provide Service To Customers •Earn A Reasonable Rate Of Return On Investments The Company Makes In Order To Provide Service To Customers 6 State Law Requires That Utility Companies 7 Serve Every Customer In Their Assigned Territory •Customers Do Not Have A Choice Of A Different Utility Company •Customers Cannot Be Unjustly Denied Service Meet The Statutory Public Interest Standard, Ensuring Customers Have: •Adequate, Safe, and Reliable Service •Fair and Reasonable Rates Approved By The Commission Progression Of The Case Application Idaho Power Filed An Application To The IPUC With Information Regarding The Proposed Increase Staff Role Staff Analyzes This Information To Determine Accuracy and Prudency Of Expenditures Staff Recommends Adjustments To These Amounts Final Order The Commissioners Review All Evidence and Have Authority To Issue A Final Order* *All Commission Decisions Must Withstand Idaho Supreme Court Appeals From Either Utility Or Customer Groups 8 9 10 Event Date Location Case Filed March 31, 2023 Virtual Public Workshop August 14, 2023 6 p.m. Virtual Public Workshop August 15, 2023 12 p.m. Staff Testimony October 18, 2023 Written Public Comments File Now (Deadline TBD) Company Rebuttal Testimony November 8, 2023 Public Customer Hearing TBD TBD Technical Hearing Nov. 28 through Dec. 1 9 a.m. to 5 p.m. Boise IPUC Close of Case Final Order Proposed Effective Date Final Order Application Requested Rate Effective Date •January 1, 2024 Proposed Annual Revenue Increase •$111.3 Million (+8.61%) Overall 11 Factors Contributing To The Increase Customer Growth Since 2011 Rate Case ~117,000 New Customer or a 23% Increase Plant Capital Investment Since 2011 ~ $1.7 Billion In Net Plant Investment 12 Application Factors Contributing To The Increase Wildfire Mitigation Since 2011 ~$18.5 Million Increase In Vegetation Management ~$7 Million Increase in Wildfire Insurance Costs Inflationary Pressure On Operations and Maintenance Expenses 13 Application Other Factors Contributing To The Increase Higher Net Power Supply Expense Regulatory and Environmental Obligations Continued Investment In Aging Infrastructure and Generation Facilities 14 Application 15 What is Revenue Requirement? Revenue Needed Each Year To: Recover Prudently Incurred Expenses Necessary To Provide Service Cost Effective Earn A Return On Capital Investments Infrastructure Needed To Provide Service To Customers 16 Revenue Requirement Components Defined Operating Expenses •Wages, Office supplies, Rent, Etc. Which Contribute To Providing Service To Customers Taxes •State And Federal Taxes Related To Providing Service To Customers Plant •Infrastructure Investments Used To Provide Service To Customers Depreciation •Recovery Of Plant Used To Provide Service To Customers Rate of Return •The Average Cost Of Debt (Interest) and Authorized Return On Equity (Investors) 17 Ultimately Idaho Power Needs To Be Able To Recover Prudently Incurred Expenditures Operating Expenses Taxes Plant Additions Depreciation Offer A Sufficient Rate Of Return To Attract Investors Investors In The Stock Market Supply Necessary Funds To Idaho Power Which Are Used To Provide Utility Service Most Investors Will Only Invest In A Company If They Expect A Reasonable Return On Their Investment 18 19 Rate Structure Overview 20 Revenue Requirement For Residential Customers Is Recovered Through Two Types Of Charges: Service Charge •Fixed Amount On Each Monthly Bill ($/month) •Charge Is Before Using Any Electricity Energy Charge •Amount Based On Amount Of Consumption ($/kWh*) * This Measurement Is Tracked By A Meter To Determine Amount Of Electricity Used By Individual Customers. Proposed Price Modernization Plan 21 •Increase Service Charge To $35 Over 3 Years For Schedules 1, 3, 5, and 6 •Eliminate Inclining Block Tiered Rates For Schedules 1 and 6 •Update Time Periods For On- and Off-peak Periods For Schedule 5 Proposed Price Modernization Plan 22 Charge Type Current 2024 2025 2026 Sch. 1, 3, 5, and 6 Service Charge $5 $15 $25 $35 Sch. 1 and 6 Summer Energy Charge: First 800 kWh (Per/kWh) 8.6518 ¢10.2985 ¢9.5182 ¢8.7379 ¢ Sch. 1 and 6 Summer Energy Charge: 801- 2000 kWh (Per/kWh) 10.4033 ¢11.7937 ¢10.2658 ¢8.7379 ¢ Sch. 1 and 6 Summer Energy Charge: Over 2000 kWh (Per/kWh) 12.3585 ¢13.9291 ¢11.5634 ¢8.7379 ¢ Proposed Price Modernization Plan 23 Charge Type Current 2024 2025 2026 Sch. 1 and 6 Non-Summer Energy Charge: First 800 kWh (Per/kWh) 8.0390 ¢9.3050 ¢8.3859 ¢7.4669 ¢ Sch. 1 and 6 Non-Summer Energy Charge: 801-2000 kWh (Per/kWh) 8.8627 ¢10.0034 ¢8.7351 ¢7.4669 ¢ Sch. 1 and 6 Non-Summer Energy Charge: Over 2000 kWh (Per/kWh) 9.8154 ¢10.0701 ¢9.0306 ¢7.4669 ¢ Proposed Price Modernization Plan 24 Schedule 5 Summer Season •Current On-Peak Hours: 1 pm to 9 pm Mon-Fri •Propose On-Peak Hours: 7 pm to 11 pm Mon-Sat, No Holidays •Current Off-Peak Hours: 9 pm to 1 pm Mon-Fri, All Weekends and Holidays •Propose Off-Peak Hours: 11 pm to 7 pm Mon-Sat, All Sunday and Holidays Schedule 5 Non-summer Season •Current On-Peak Hours: 7 am to 9 pm Mon-Fri •Propose On-Peak Hours: 7 am to 9 am and 6 pm-9 pm Mon-Sat, No Holidays •Current Off-Peak hours: 9 pm to 7 am Mon-Fri, All Weekends and Holidays •Propose Off-Peak hours: 9 am to 6 pm and 9 pm to 7 am Mon- Sat, All Sunday and Holidays Proposed Total Bill Impact 25 * Total Charges Are Dependent On Actual kWh Used And May Be Higher Or Lower Than Indicated On This Chart. Rate Class Current Charge Proposed 2024 Charge Proposed 2025 Charge Proposed 2026 Charge Residential Schedule 1 (550 kWh avg.) $56.61 $68.00 $73.20 $78.40 Residential Schedule 1 (950 kWh avg.) $95.73 $107.99 $108.97 $109.96 Residential Schedule 1 (1800 kWh avg.) $184.47 $198.09 $187.56 $177.03 26 Consumer Assistance •Utility Compliance Investigators assist customers to resolve issues and/or disputes with the Company. •Investigators monitor compliance with laws, commission rules, and the Company’s tariff. •In a rate case, investigators review issues from previous cases, review previous complaints, review submitted comments from customers, and investigate consumer issues raised in the case. 27 CUSTOMER COMMENTS Customer written comments are due prior to the Commission closing the record on the case. (Reference Case Number IPC-E-23-11) •Internet Website Address – puc.idaho.gov •Select - Case Comment Form (once comments are submitted, they become part of public record) •Email – Address: secretary@puc.idaho.gov •Mail – IPUC, PO Box 83720, Boise, ID 83720-0074 •Public Customer Hearing – TBD COMMENTS ONLY (QUESTIONS WILL NOT BE ADDRESSED)28 Idaho Public Utilities Homepage 29 Comments Form Page 30 PUC Home Page 31 Electric Page 32 Open Electric Cases Page 33 Case Summary Page 34 •Customers can subscribe to the Commission’s RSS feed to receive updates about all cases via email. •Continue submitting your comments. •Public Customer Hearing, date is TBD. •The Commission will issue a final order which will close the case. Where do we go from here? 35 36 37 Workshop Participation Online: To open chat in WebEx, please select the icon. Type questions and comments in the chat box; Please use the “Everyone” option when using chat to ensure your message will be seen. To speak, click on the hand in the lower right corner. On the phone: *3 is the command to raise and lower your hand; When your line has been un-muted, you will hear an announcement indicating that. This PowerPoint is available on the commission’s homepage at puc.idaho.gov. 38