HomeMy WebLinkAbout20230814Public Workshop.pdfWorkshop Participation
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This PowerPoint is available on the commission’s homepage at
puc.idaho.gov.
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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.
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•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?
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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
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State Law Requires That Utility Companies
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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
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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
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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
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Application
Factors Contributing To The Increase
Wildfire Mitigation Since 2011
~$18.5 Million Increase In Vegetation Management
~$7 Million Increase in Wildfire Insurance Costs
Inflationary Pressure On Operations and
Maintenance Expenses
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Application
Other Factors Contributing To The Increase
Higher Net Power Supply Expense
Regulatory and Environmental Obligations
Continued Investment In Aging
Infrastructure and Generation Facilities
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Application
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What is Revenue Requirement?
Revenue Needed Each Year To:
Recover Prudently Incurred Expenses
Necessary To Provide Service
Cost Effective
Earn A Return On Capital Investments
Infrastructure Needed To Provide Service To
Customers
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Revenue Requirement Components Defined
Operating Expenses
•Wages, Office supplies, Rent, Etc. Which Contribute To
Providing Service To Customers
Taxes
•State And Federal Taxes Related To Providing Service To
Customers
Plant
•Infrastructure Investments Used To Provide Service To
Customers
Depreciation
•Recovery Of Plant Used To Provide Service To Customers
Rate of Return
•The Average Cost Of Debt (Interest) and Authorized Return
On Equity (Investors)
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Ultimately Idaho Power Needs To Be Able To
Recover Prudently Incurred Expenditures
Operating Expenses
Taxes
Plant Additions
Depreciation
Offer A Sufficient Rate Of Return To Attract Investors
Investors In The Stock Market Supply Necessary Funds To
Idaho Power Which Are Used To Provide Utility Service
Most Investors Will Only Invest In A Company If They
Expect A Reasonable Return On Their Investment
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Rate Structure Overview
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Revenue Requirement For Residential Customers Is
Recovered Through Two Types Of Charges:
Service Charge
•Fixed Amount On Each Monthly Bill ($/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
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•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
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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
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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
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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
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* 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
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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.
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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
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Comments Form Page
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PUC Home Page
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Electric Page
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Open Electric Cases Page
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Case Summary Page
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•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?
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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.
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