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HomeMy WebLinkAbout20230406Notice_of_Application_Order_No_35729.pdfNOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35729 1 Office of the Secretary Service Date April 6, 2023 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER’S APPLICATION FOR AUTHORITY TO IMPLEMENT FIXED COST ADJUSTMENT RATES FOR ELECTRIC SERVICE FROM JUNE 1, 2023, THROUGH MAY 31, 2024 ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-09 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35729 On March 15, 2023, Idaho Power Company (“Company”) applied to implement new Fixed Cost Adjustment (“FCA”) rates for electric service from June 1, 2023, through May 31, 2024, and a corresponding revised tariff Schedule 54 (“Application”). The Company proposed “a $9,976,903, or 1.56 percent, decrease for Residential and Small General Service customers. If the Company’s proposal is approved as filed, a typical residential customer using 950 kilowatt-hours (“kWh”) per month will see an approximate $1.66 decrease to their monthly bill.” Application at 1-2. The Company requested its Application be processed through modified procedure with an effective date of June 1, 2023. The Commission now issues this Notice of Application and Notice of Modified Procedure establishing a public comment and Company reply deadlines. BACKGROUND The FCA is a rate adjustment mechanism designed to break the link between the energy a utility sells and the revenue it collects to recover fixed costs1 of providing service, thus decoupling the utility’s revenues from its customers’ energy usage. This decoupling removes a utility’s incentive to increase sales to increase revenue and profits and encourages energy conservation. It applies to Residential and Small General Service customers. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company seeks recovery of the 2022 FCA balance and approval of proposed rates. “The proposed FCA is $24,076,901.44 for the Residential class and $988,173.81 for the Small General Service class, for a total amount of $25,065,075.31.” 1 “Fixed costs” are a utility’s costs to provide service, such as infrastructure and customer service, which do not vary with energy use, output, or production, and remain relatively stable between rate cases. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35729 2 Id. at 6. The Company stated, “the proposed FCA deferral balance is less than the current FCA deferral balance collected in customers’ rates.” Id. YOU ARE FURTHER NOTIFIED that the Company requested to decrease the FCA rate for Residential customers to 0.4402 cents per kWh and decrease the FCA rate for Small General Service customers to 0.5541 cents per kWh. If approved, the proposed FCA rates would decrease current billed revenue from affected customer classes by 1.56 percent. YOU ARE FURTHER NOTIFIED that the Company requested the proposed rates take effect on June 1, 2023, and remain in effect until May 31, 2024. YOU ARE FURTHER NOTIFIED that the Company will notify customers about its Application through a press release to relevant media outlets in the Company’s service area and a customer notice distributed in customers’ bills. The Company states it will distribute the customer notice during the “current billing cycle, with the last notice being sent on or about April 25, 2023.” Id. at 7. YOU ARE FURTHER NOTIFIED that the Application, proposed tariff, and testimony have been filed with the Commission and are available for public inspection during regular business hours at the Commission office. The Application and testimonies are also available on the Commission’s website at www.puc.idaho.gov. Click on the “ELECTRIC” icon, select “Open Cases,” and then 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 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 will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201 through .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 the person supports or opposes the NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35729 3 Application. Persons who would like a hearing must specifically request a hearing in their written comments. Persons shall have until May 3, 2023, to file written comments. Comments must be filed through the Commission website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission’s home page 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 e-mail addresses listed below. In addition to submitting the comments to the Commission Secretary, the customer must also e-mail 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 Commission: Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 secretary@puc.idaho.gov Street Address for Express Mail: 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 For the Company: Megan Goicoechea Allen Lisa D. Nordstrom Connie Aschenbrenner Pawel P. Goralski 1221 W. Idaho Street (83702) P.O. Box 70 Boise, ID 83707 mgoicoecheaallen@idahopower.com lnordstrom@idahopower.com caschenbrenner@idahopower.com pgoralski@idahopower.com dockets@idahopower.com YOU ARE FURTHER NOTIFIED that Idaho Power must file any reply comments by May 10, 2023. 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 this case be processed by Modified Procedure. Persons wishing to file written comments must do so by May 3, 2023. The Company must file any reply comments by May 10, 2023. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35729 4 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. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 6th day of April 2023. __________________________________________ ERIC ANDERSON, PRESIDENT __________________________________________ JOHN R. HAMMOND JR., COMMISSIONER __________________________________________ EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\IPC-E-23-09 FCA\orders\IPCE2309_Ntc_App_Mod_md.docx