20230118Notice_of_Application_Order_No_35666.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35666 1

Office of the Secretary
Service Date
January 18, 2023

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On December 28, 2022, Idaho Power Company (“Company”) applied to the Commission
for an order: (1) establishing a compensation rate for service interruptions under Schedule 20 or,
in the alternative, (2) deferring implementation of a compensation structure for service
interruptions under Schedule 20. Application at 1-2. The Company requested that the Application
be processed under Modified Procedure.
With this Order, we issue a Notice of Application and a Notice of Intervention Deadline.
BACKGROUND
On November 4, 2021, the Company applied to the Commission for authority to establish
a new electric service schedule (Schedule 20) to serve speculative high-density load customers—
specifically, large-scale cryptocurrency mining operators.1 Schedule 20 incorporated the features
of the Company’s existing Schedule 9 (Large General Service) and Schedule 19 (Large Power
Service) rate design but made three modifications: (1) implementation of mandatory,
uncompensated fully interruptible service during the summer peak season for up to 225 hours a
year; (2) a reallocation of the portion of cost-of-service derived summer generation capacity costs
currently collected in an on-peak demand charge; and (3) energy priced at marginal cost.2
The Commission initially approved the implementation of Schedule 20, as filed. Order No.
35428 at 7. GeoBitmine LLC filed a Petition for Reconsideration of Order No. 35428. In its final
order on reconsideration, the Commission affirmed all three provisions of Schedule 20, with one
exception. Order No. 35550 at 16. Specifically, the Commission found that the record was

1 ln the Matter of Idaho Power Company’s Application for Authority to Establish New Schedule To Serve Speculative
High-Density Load Customers, Case No. IPC-E-21-37, Application at 1-2 (Nov. 4, 2021).
2 Id. at 14.
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
AUTHORITY TO ESTABLISH
COMPENSATION FOR THE MANDATORY
INTERRUPTION REQUIREMENT OF
SCHEDULE 20 – SPECULATIVE HIGH-
DENSITY LOAD
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CASE NO. IPC-E-22-30

NOTICE OF APPLICATION

NOTICE OF INTERVENTION
DEADLINE

ORDER NO. 35666
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35666 2

“insufficient to support the uncompensated mandatory interruptability requirement.” Id. at 22.
Although the Commission believed that mandatory interruptible service during the summer peaks
season under Schedule 20 was reasonable, the Commission did not believe the record supported
implementation of an “uncompensated mandatory interruptible service provision.” Id. (emphasis
in the original). Accordingly, the Commission directed the Company “to apply to the Commission
for a determination of a fair, just, and reasonable amount of compensation, if any, for
interruptability under Schedule 20” by December 31, 2022. Id. at 23.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company explains that its Schedule 20 includes
a requirement for mandatory, uncompensated interruption at the Company’s discretion annually
between the hours of 1:00 p.m. to 11:00 p.m., Monday through Friday, excluding Holidays, from
June 15 through September 15, with a maximum of 10 hours per interruption event and not to
exceed 225 hours a year. Application at 4.
YOU ARE HEREBY NOTIFIED that the Company’s Application seeks a Commission
order prior to the start of the June 15 – September 15 interruption period: (1) establishing a
compensation rate “of $0.0734 per kilowatt (“kW”) per hour of interruption for Large General
Service Rates,” under Schedule 20, “and $0.0835 per kW per hour of interruption for Large Power
Service Rates” under Schedule 20 “or, alternatively, (2) defer[ring] implementation of any
compensation structure for the mandatory interruption requirement of Schedule 20 until evaluation
of cost assignment responsibility for Schedule 20 is completed at a general rate case.” Application
at 1-2.
YOU ARE FURTHER NOTIFIED that the Company states that its “primary
recommendation” proposes compensating, under Schedule 20, Large General Service customers
at a rate of $0.0734 per kW per hour of mandatory interruption and Large Power Service customers
at a rate of $0.0835 per kW per hour of mandatory interruption. Id. at 5, 9-10. These rates, the
Company explains, “were derived by dividing the annual peak load functionalized per kW cost by
the total potential hours of interruption”—for Large General Service customers ($16.51 divided
by 225 hours) and for Large Power Service customers ($18.79 divided by 225 hours). Id. at 9-10.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35666 3

YOU ARE FURTHER NOTIFIED that the Company’s alternative recommendation
proposes forgoing compensation to Schedule 20 customers until there is an evaluation of cost
assignment responsibility at a general rate case.
YOU ARE FURTHER NOTIFIED that the Company explains that there are currently no
customers taking service under Schedule 20. However, the Company notes that potential
customers under Schedule 20 likely operate with high load factors, often greater than 90%, which
results in a “higher coincidence” to the Company’s system peak. These characteristics—energy
use and coincidence to system peak—the Company claims, distinguish Schedule 20 customers
from Schedule 9 and 19 customers. The Company explains that energy use and coincidence to
system peak are two factors largely comprising class cost assignment. The Company expresses
concern that, until it has Schedule 20 customers from which it can collect data and is able to
evaluate cost assignment responsibility at a general rate case, there is a potential that customers
would over-compensate Schedule 20 customers for mandatory interruption.
YOU ARE FURTHER NOTIFIED that the Application, and attached workpapers and
Schedule 20 are available for public inspection during regular business hours at the Commission’s
office. These documents are also available on the Commission’s homepage 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.
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 INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties’ rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission’s Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073.
Persons who wish to intervene as a party must file a Petition to Intervene no later than 21
days after the date of service of this Order. Persons desiring to present their views without
parties’ rights of participation are not required to intervene and may present their comments
without prior notification to the Commission or the parties.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35666 4

YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission
Staff will informally confer with the parties to discuss a schedule to process this case and other
issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following people have been designated as the
Company’s representatives in this matter:
Megan Goicoechea-Allen
Lisa D. Nordstrom
Idaho Power Company
P.O. Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]
[e-mail]
Connie G. Aschenbrenner
Paul Goralski
Idaho Power Company
P.O. Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]

O R D E R
IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a
Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline
has passed, the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that, after the Notice of Parties has issued, Commission Staff
shall confer with the parties regarding a procedural schedule for processing this case.
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.

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35666 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 18th day of
January 2023.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-22-30 Comp Sch 20\orders\IPCE2230_Ntc App_Int_rn.docx